Franklin Street Properties Q3 2024 Update

TL;DR

FSP filed its Q3 2024 10-Q, check financials.

AI Summary

Franklin Street Properties Corp. (FSP) filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial figures and disclosures relevant to investors are presented, reflecting the company's ongoing business activities in real estate investment trusts.

Why It Matters

This filing provides investors with a crucial update on Franklin Street Properties' financial health and operational status for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, FSP is subject to market fluctuations and economic conditions that can impact its portfolio value and rental income.

Key Numbers

• 103,430,353 — Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (As of the reporting period.)
• 103,566,715 — Total Assets (As of the reporting period.)

Key Players & Entities

• FRANKLIN STREET PROPERTIES CORP /MA/ (company) — Filer
• 0001031316 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241029 (date) — Filing Date

FAQ

Filing Documents

• fsp-20240930x10q.htm (10-Q) — 1961KB
• fsp-20240930xex31d1.htm (EX-31.1) — 16KB
• fsp-20240930xex31d2.htm (EX-31.2) — 14KB
• fsp-20240930xex32d1.htm (EX-32.1) — 6KB
• fsp-20240930xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-013847.txt ( ) — 6652KB
• fsp-20240930.xsd (EX-101.SCH) — 47KB
• fsp-20240930_cal.xml (EX-101.CAL) — 50KB
• fsp-20240930_def.xml (EX-101.DEF) — 185KB
• fsp-20240930_lab.xml (EX-101.LAB) — 413KB
• fsp-20240930_pre.xml (EX-101.PRE) — 286KB
• fsp-20240930x10q_htm.xml (XML) — 932KB

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows for the nine months ended September 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 40 Item 4.

Controls and Procedures

Controls and Procedures 40 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42

Signatures

Signatures 43 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Franklin Street Properties Corp. Consolidated Balance Sheets (Unaudited) September 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 September 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 September 30, 2024 and December 31, 2023, respectively) 1,090,551 1,133,971 Fixtures and equipment 10,776 12,904 1,206,625 1,257,173 Less accumulated depreciation (amounts related to VIEs of $ 597 and $ 341 at September 30, 2024 and December 31, 2023, respectively) 369,276 366,349 Real estate assets, net (amounts related to VIEs of $ 19,098 and $ 19,354 at September 30, 2024 and December 31, 2023, respectively) 837,349 890,824 Acquired real estate leases, less accumulated amortization of $ 16,465 and $ 20,413 , respectively (amounts related to VIEs of $ 67 and $ 305 , less accumulated amortization of $ 30 and $ 222 at September 30, 2024 and December 31, 2023, respectively) 4,695 6,694 Assets held for sale 32,926 73,318 Cash, cash equivalents and restricted cash (amounts related to VIEs of $ 1,608 and $ 2,167 at September 30, 2024 and December 31, 2023, respectively) 42,375 127,880 Tenant rent receivables 1,349 2,191 Straight-line rent receivable 38,432 40,397 Prepaid expenses and other assets 3,243 4,239 Office computers and furniture, net of accumulated depreciation of $ 1,063 and $ 1,020 , respectively 80 123 Deferred leasing commissions, net of accumulated amortization of $ 14,724 and $ 16,008 , respectively 21,064 23,664 Total assets $ 981,513 $ 1,169,330 Liabilities and Stockholders' Equity: Liabilities: Bank note payable $ — $ 90,000 Term loans payable, less unamortized financing costs of $ 2,956 and $ 2

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 September 30, 2024, the Company owned and operated a portfolio of real estate consisting of 15 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 September 30, 2024 2023 Owned and Consolidated Properties: Number of properties (1) 16 20 Rentable square feet 5,180,158 6,206,460 (1) Includes one property and three properties that were classified as assets held for sale as of September 30, 2024 and September 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 nine months ended September 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 termina

View Full Filing

View this 10-Q filing on SEC EDGAR