Franklin Street Properties Files Q2 2024 10-Q
Ticker: FSP · Form: 10-Q · Filed: Jul 30, 2024 · CIK: 1031316
Sentiment: neutral
Topics: real-estate, REIT, financials, 10-Q
TL;DR
**FSP Q2 10-Q filed. Financials and operations detailed. Check for updates.**
AI Summary
Franklin Street Properties Corp. (FSP) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial figures and strategic decisions are presented, reflecting the company's ongoing business activities in the real estate sector.
Why It Matters
This filing provides investors with crucial financial data and insights into Franklin Street Properties' performance and outlook for the second quarter of 2024, impacting investment decisions.
Risk Assessment
Risk Level: medium — As a real estate investment trust, FSP is subject to market fluctuations, interest rate changes, and property-specific risks that can impact its financial performance.
Key Numbers
- 103430353 — Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Represents liquidity available as of the reporting period.)
- 103566715 — Total Assets (Indicates the overall size of the company's asset base.)
Key Players & Entities
- FRANKLIN STREET PROPERTIES CORP /MA/ (company) — Filer of the 10-Q
- 20240630 (date) — End of the reporting period
- 0001031316 (company) — Central Index Key for Franklin Street Properties Corp.
- 7815571300 (dollar_amount) — Business phone number
FAQ
What was Franklin Street Properties' net income for the quarter ending June 30, 2024?
The provided snippet does not contain specific net income figures for the quarter ending June 30, 2024. Further review of the full 10-Q document is required.
What is the company's primary business activity as indicated in the filing?
The company is classified under Standard Industrial Classification code 6798, which corresponds to Real Estate Investment Trusts.
When was the company previously known as Franklin Street Partners LP?
The date of the name change from Franklin Street Partners LP to Franklin Street Properties Corp. was March 1, 2001.
What is the fiscal year end for Franklin Street Properties Corp.?
The fiscal year end for Franklin Street Properties Corp. is December 31.
What is the filing date of this 10-Q report?
This 10-Q report was filed on July 30, 2024.
Filing Stats: 4,634 words · 19 min read · ~15 pages · Grade level 16.3 · Accepted 2024-07-30 16:26:17
Filing Documents
- fsp-20240630x10q.htm (10-Q) — 1833KB
- fsp-20240630xex31d1.htm (EX-31.1) — 16KB
- fsp-20240630xex31d2.htm (EX-31.2) — 14KB
- fsp-20240630xex32d1.htm (EX-32.1) — 6KB
- fsp-20240630xex32d2.htm (EX-32.2) — 6KB
- 0001558370-24-010384.txt ( ) — 6381KB
- fsp-20240630.xsd (EX-101.SCH) — 45KB
- fsp-20240630_cal.xml (EX-101.CAL) — 47KB
- fsp-20240630_def.xml (EX-101.DEF) — 184KB
- fsp-20240630_lab.xml (EX-101.LAB) — 398KB
- fsp-20240630_pre.xml (EX-101.PRE) — 283KB
- fsp-20240630x10q_htm.xml (XML) — 872KB
Financial Statements
Financial Statements Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 6 Consolidated Statements of Cash Flows for the six months ended June 30, 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 39 Item 4.
Controls and Procedures
Controls and Procedures 39 Part II. Other Information Item 1.
Legal Proceedings
Legal Proceedings 40 Item 1A.
Risk Factors
Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 41
Signatures
Signatures 42 Table of Contents
— FINANCIAL INFORMATION
PART I — FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements Franklin Street Properties Corp. Consolidated Balance Sheets (Unaudited) June 30, 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 June 30, 2024 and December 31, 2023, respectively) $ 105,298 $ 110,298 Buildings and improvements (amounts related to VIEs of $ 13,279 and $ 13,279 at June 30, 2024 and December 31, 2023, respectively) 1,086,300 1,133,971 Fixtures and equipment 10,436 12,904 1,202,034 1,257,173 Less accumulated depreciation (amounts related to VIEs of $ 511 and $ 341 at June 30, 2024 and December 31, 2023, respectively) 361,278 366,349 Real estate assets, net (amounts related to VIEs of $ 19,184 and $ 19,354 at June 30, 2024 and December 31, 2023, respectively) 840,756 890,824 Acquired real estate leases, less accumulated amortization of $ 20,505 and $ 20,413 , respectively (amounts related to VIEs of $ 67 and $ 305 , less accumulated amortization of $ 26 and $ 222 at June 30, 2024 and December 31, 2023, respectively) 5,306 6,694 Assets held for sale 67,823 73,318 Cash, cash equivalents and restricted cash (amounts related to VIEs of $ 1,745 and $ 2,167 at June 30, 2024 and December 31, 2023, respectively) 31,495 127,880 Tenant rent receivables 2,349 2,191 Straight-line rent receivable 38,901 40,397 Prepaid expenses and other assets 4,064 4,239 Office computers and furniture, net of accumulated depreciation of $ 1,051 and $ 1,020 , respectively 92 123 Deferred leasing commissions, net of accumulated amortization of $ 14,584 and $ 16,008 , respectively 21,741 23,664 Total assets $ 1,012,527 $ 1,169,330 Liabilities and Stockholders' Equity: Liabilities: Bank note payable $ — $ 90,000 Term loans payable, less unamortized financing costs of $ 3,766 and $ 293 , respectively 149,604 114,
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 June 30, 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 June 30, 2024 2023 Owned and Consolidated Properties: Number of properties (1) 17 21 Rentable square feet 5,478,176 6,270,658 (1) Includes two properties and one property that were classified as assets held for sale as of June 30, 2024 and June 30, 2023, respectively. 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 and six months ended June 30, 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, 202