Franklin Street Properties Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Franklin Street Properties Corp. filed its Q1 2024 10-Q, detailing financial performance and key debt instruments.</b>

AI Summary

FRANKLIN STREET PROPERTIES CORP /MA/ (FSP) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Franklin Street Properties Corp. filed a 10-Q for the period ending March 31, 2024. The filing includes data related to asset management and rental real estate for Q1 2024 and Q1 2023. Key financial instruments mentioned include "8.00% Series Senior Notes Due April 1, 2026" and "BofaTermLoan". The company's address is 401 Edgewater Place, Suite 200, Wakefield, MA 01880. The filing references various equity accounts such as Additional Paid-In Capital and Common Stock for multiple periods.

Why It Matters

For investors and stakeholders tracking FRANKLIN STREET PROPERTIES CORP /MA/, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial snapshot of Franklin Street Properties Corp., including details on its real estate assets and liabilities. The disclosure of specific debt instruments like the "8.00% Series Senior Notes Due April 1, 2026" and the "BofaTermLoan" is crucial for understanding the company's leverage and upcoming debt obligations.

Risk Assessment

Risk Level: medium — FRANKLIN STREET PROPERTIES CORP /MA/ shows moderate risk based on this filing. The company's financial health and future prospects are subject to market conditions in the real estate sector, as indicated by the filing's focus on rental real estate and various financial instruments.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to assess the company's current financial position and future outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-04-30 — Filing Date (Filed as of Date)
• Q1 2024 — Fiscal Quarter (Reporting period)
• 8.00% — Interest Rate (Series Senior Notes Due April 1, 2026)

Key Players & Entities

• FRANKLIN STREET PROPERTIES CORP /MA/ (company) — Filer
• 2024-03-31 (date) — Conformed Period of Report
• 2024-04-30 (date) — Filed as of Date
• 0001031316 (company) — Central Index Key
• 6798 (industry) — Standard Industrial Classification
• MA (location) — State of Incorporation
• 401 EDGEWATER PLACE (address) — Business Address
• 7815571300 (phone) — Business Phone

FAQ

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q was officially filed with the SEC.
• 2026-04-01: Senior Notes Maturity Date — Indicates a significant debt maturity for the company.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive overview of the company's financial performance during the quarter.)

Asset Management

The professional management of an investment portfolio. (Relevant to understanding how Franklin Street Properties manages its investments.)

Rental Real Estate

Properties owned and operated by a company for the purpose of generating rental income. (Core business segment for Franklin Street Properties.)

Filing Documents

• fsp-20240331x10q.htm (10-Q) — 1502KB
• fsp-20240331xex31d1.htm (EX-31.1) — 16KB
• fsp-20240331xex31d2.htm (EX-31.2) — 14KB
• fsp-20240331xex32d1.htm (EX-32.1) — 6KB
• fsp-20240331xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-006276.txt (&nbsp;) — 5778KB
• fsp-20240331.xsd (EX-101.SCH) — 43KB
• fsp-20240331_cal.xml (EX-101.CAL) — 46KB
• fsp-20240331_def.xml (EX-101.DEF) — 172KB
• fsp-20240331_lab.xml (EX-101.LAB) — 379KB
• fsp-20240331_pre.xml (EX-101.PRE) — 270KB
• fsp-20240331x10q_htm.xml (XML) — 812KB

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8-20 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 41 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Franklin Street Properties Corp. Consolidated Balance Sheets (Unaudited) March 31, December 31, (in thousands, except share and par value amounts) 2024 2023 Assets: Real estate assets: Land (amounts related to variable interest entities ("VIEs") of $ 6,416 and $ 6,416 at March 31, 2024 and December 31, 2023, respectively) $ 110,298 $ 110,298 Buildings and improvements (amounts related to VIEs of $ 13,279 and $ 13,279 at March 31, 2024 and December 31, 2023, respectively) 1,137,496 1,133,971 Fixtures and equipment 13,002 12,904 1,260,796 1,257,173 Less accumulated depreciation (amounts related to VIEs of $ 426 and $ 341 at March 31, 2024 and December 31, 2023, respectively) 376,063 366,349 Real estate assets, net (amounts related to VIEs of $ 19,269 and $ 19,354 at March 31, 2024 and December 31, 2023, respectively) 884,733 890,824 Acquired real estate leases, less accumulated amortization of $ 19,840 and $ 20,413 , respectively (amounts related to VIEs of $ 67 and $ 305 , less accumulated amortization of $ 22 and $ 222 at March 31, 2024 and December 31, 2023, respectively) 5,971 6,694 Assets held for sale 38,947 73,318 Cash, cash equivalents and restricted cash (amounts related to VIEs of $ 2,080 and $ 2,167 at March 31, 2024 and December 31, 2023, respectively) 37,779 127,880 Tenant rent receivables 2,200 2,191 Straight-line rent receivable 40,357 40,397 Prepaid expenses and other assets 4,140 4,239 Office computers and furniture, net of accumulated depreciation of $ 1,036 and $ 1,020 , respectively 106 123 Deferred leasing commissions, net of accumulated amortization of $ 16,914 and $ 16,008 , respectively 24,730 23,664 Total assets $ 1,038,963 $ 1,169,330 Liabilities and Stockholders' Equity: Liabilities: Bank note payable $ — $ 90,000 Term loans payable, less unamortized financing costs of $ 4,202 and $ 293 , respectively 149,16

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards Organization Franklin Street Properties Corp. ("FSP Corp." or the "Company") holds, directly and indirectly, 100 % of the interest in FSP Investments LLC, FSP Property Management LLC , FSP Holdings LLC and FSP Protective TRS Corp . FSP Property Management LLC provides asset management and property management services. The Company also has a non-controlling common stock interest in the corporation that is the sole member of FSP Monument Circle LLC, which corporation was organized to operate as a real estate investment trust ("Monument Circle" or the "Sponsored REIT"). As of March 31, 2024, the Company owned and operated a portfolio of real estate consisting of 16 operating properties, and the Sponsored REIT, which was consolidated effective January 1, 2023. The Company may pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, for geographic, property specific reasons or for other general corporate purposes.

Properties

Properties The following table summarizes the Company's number of owned and consolidated properties and rentable square feet of real estate. As of March 31, 2024 2023 Owned and Consolidated Properties: Number of properties (1) 17 21 Rentable square feet 5,478,176 6,263,226 (1) Includes one property that was classified as an asset held for sale as of March 31, 2024. Basis of Presentation The unaudited consolidated financial statements of the Company include all of the accounts of the Company and its majority-owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated. These financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission. The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements for these interim periods have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other period. Financial Instruments As disclosed in Note 4, the Company's derivatives were recorded at fair value using Level 2 inputs prior to their termination on February 8, 2023. The Company estimates that the carrying values of cas

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View this 10-Q filing on SEC EDGAR