Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of approximately $2.7 million or $0.03 per share for Q3 2024, alongside a GAAP net loss of about $15.6 million or $0.15 per share [7] - Total liabilities were reduced by about $140 million, from approximately $456 million as of December 31, 2023, to approximately $316 million [9] Business Line Data and Key Metrics Changes - The directly owned portfolio was approximately 70.4% leased at the end of Q3 2024, down from 72.3% at the end of Q2 2024 and 74% at the end of 2023 [10][11] - Economic occupancy was approximately 68.7% at the end of Q3 2024, a decrease from 74% at the end of 2023, primarily due to property dispositions [11] - FSP finalized approximately 364,000 square feet of total leasing during the first three quarters of 2024, including about 92,000 square feet in Q3 [12] Market Data and Key Metrics Changes - The company is currently tracking approximately 700,000 square feet of prospective new tenants, with about 400,000 square feet of prospects having identified FSP assets on their short lists [13] - Scheduled lease expirations for the remainder of 2024 total approximately 77,000 square feet, representing about 1.5% of FSP's directly owned portfolio [14] Company Strategy and Development Direction - The company continues to focus on property dispositions to pay down debt and unlock value, with total gross property sales for the year-to-date reaching $100 million [18] - The market for office dispositions remains challenging, with a 54% decline in office sales volume over the past 12 months compared to historical averages [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving office dynamics and a stronger return-to-office trend among employers, which may positively impact future quarters [38] - The company remains committed to maximizing disposition values for shareholders while navigating a constrained investment sales environment [25] Other Important Information - The company has been actively working with city and state officials regarding potential opportunities for the Monument Circle property, although no new developments were reported this quarter [32] Q&A Session Summary Question: Background on the Pershing Park Plaza disposition - Management indicated that the decision was based on maximizing value given market conditions, and they remain bullish on the Sunbelt markets despite exiting Atlanta [29] Question: Update on Monument Circle - Management continues to explore opportunities for the property, including potential leases and dispositions, with interest from multiple developers [32] Question: Insights on tenant lease renewals - There has been an uptick in early renewal discussions with tenants, and the average cost for renewals and new deals has slightly increased, with current costs around $6 per square foot per year [36]

Financial Performance - Total revenues for Q3 2024 were $29.68 million, a decrease of 19.5% compared to $36.90 million in Q3 2023[8] - Net loss for Q3 2024 was $15.62 million, compared to a net loss of $45.67 million in Q3 2023, representing a 65.7% improvement[10] - Rental revenue for the nine months ended September 30, 2024, was $91.71 million, down 17.3% from $110.93 million for the same period in 2023[8] - Total expenses for Q3 2024 were $37.86 million, a decrease of 11.5% from $42.79 million in Q3 2023[8] - Comprehensive loss for Q3 2024 was $15.62 million, compared to $46.73 million in Q3 2023[10] - For the nine months ended September 30, 2024, the net loss was $44,197 thousand, compared to a net loss of $51,685 thousand for the same period in 2023, representing a 14.4% improvement[15] - The company reported net cash provided by investing activities of $43,835 thousand for the nine months ended September 30, 2024, significantly up from $14,086 thousand in 2023, reflecting a 211.5% increase[15] - The company reported total revenues of $29.7 million for the three months ended September 30, 2024, a decrease of $7.2 million compared to the same period in 2023[122] - Total expenses decreased by $4.9 million to $37.9 million for the three months ended September 30, 2024, compared to the same period in 2023[122] - The net loss for the three months ended September 30, 2024 was $15.6 million, a significant improvement from a net loss of $45.7 million for the same period in 2023[134] Revenue and Rental Income - Rental revenues decreased to $29.66 million in Q3 2024 from $36.90 million in Q3 2023, representing a decline of 19.5%[8] - For the nine months ended September 30, 2024, the Company recognized income from leases of $92,937,000, a decrease from $111,316,000 for the same period in 2023[83] - Rental revenue decreased by approximately $19.2 million due to the sale of six properties and lease expirations, with leased space at 67.7% as of September 30, 2024, down from 72.4% in 2023[136] Expenses and Losses - Real estate operating expenses for Q3 2024 were $11.57 million, down 9.5% from $12.80 million in Q3 2023[8] - Loss on sale of properties and impairment of assets held for sale for the nine months ended September 30, 2024, was $20.46 million, compared to $32.09 million for the same period in 2023[8] - The company reported a loss on sale of properties and impairment of assets held for sale of $7.25 million in Q3 2024, compared to $39.67 million in Q3 2023[8] - The company recorded a provision for the Revised Texas Franchise Tax of $162,000 for the nine months ended September 30, 2024, down from $212,000 in 2023[78] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $6,736 thousand, down from $11,545 thousand in 2023, indicating a decrease of 41.5%[15] - The total cash, cash equivalents, and restricted cash at the end of the period was $42,375 thousand, a substantial increase from $13,043 thousand at the end of the same period in 2023, marking a 225.5% rise[24] - Cash and cash equivalents decreased from $127.9 million at December 31, 2023, to $42.4 million at September 30, 2024, a reduction of $85.5 million[159] - Cash provided by investing activities amounted to $43.8 million, mainly from asset sales totaling $62.9 million, offset by $19.1 million in real estate and equipment purchases[161] Debt and Financing - The Company has a term loan borrowing of approximately $78.8 million under the BMO Term Loan, maturing on April 1, 2026[42] - The interest rate on the BMO Term Loan was 8.00% per annum as of September 30, 2024, with a weighted average variable interest rate of 8.44% for the nine months ended September 30, 2024[45] - The BofA Term Loan has an aggregate principal amount of approximately $61.7 million, also maturing on April 1, 2026[49] - The Company has senior notes with an aggregate principal amount of approximately $137.1 million, consisting of Series A Notes of approximately $79.5 million and Series B Notes of approximately $57.6 million[57] - The interest rates on the Series A and Series B Notes increased from 4.49% and 4.76% per annum to 8.00% per annum following the NPA First Amendment on February 21, 2024[182] - The BofA Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.25x, reduced from 1.50x[55] - The company has utilized various funding sources, including refinancing existing debt and public offerings, to meet cash needs beyond the next twelve months[164] Property and Asset Management - As of September 30, 2024, the company owned and operated 16 properties, down from 20 properties as of September 30, 2023, indicating a 20% reduction in the number of properties[18] - The owned properties were approximately 70.4% leased as of September 30, 2024, a decrease from 74.0% leased as of December 31, 2023[106] - The company’s leased space in owned and consolidated properties was 67.7% as of September 30, 2024, down from 72.4% as of September 30, 2023[125] - The company is focused on acquiring and developing quality properties in good locations to mitigate market downturn impacts and capitalize on upturns[96] Stockholder Information - The Company declared and paid dividends of $0.01 per share for each quarter in 2024, totaling approximately $3.1 million for the first three quarters[68] - The Company declared a cash distribution of $0.01 per share of common stock, payable on November 7, 2024, to stockholders of record on October 18, 2024[91] - As of September 30, 2024, the Company had a total of 1,365,886 shares available for grant, with a compensation cost of $1,991,238 recognized during the period[71] Market and Economic Conditions - The long-term impact of the COVID-19 pandemic continues to present material uncertainty and risk regarding the performance of the company's properties and financial results[103] - The company expects to renew or sign new leases at current market rates, which could be above or below expiring rates[109] - Approximately 50.6% of the total debt constituted unhedged variable rate debt as of September 30, 2024, which could be adversely affected by increasing interest rates[105]

Financial Performance - Rental revenue for Q3 2024 was $29.662 million, a decrease of 4% from $30.818 million in Q2 2024 [6]. - Net income for Q3 2024 was a loss of $15.622 million, compared to a loss of $21.023 million in Q2 2024 [6]. - Adjusted EBITDA for Q3 2024 was $9.657 million, down from $10.783 million in Q2 2024 [6]. - Funds from Operations (FFO) for Q3 2024 was $2.665 million, a decline from $3.721 million in Q2 2024 [6]. - Total revenue for the three months ended September 30, 2024, was $29,682,000, a decrease of 18.5% compared to $36,903,000 for the same period in 2023 [7]. - Net loss for the three months ended September 30, 2024, was $(7,552,000), compared to a net loss of $(15,622,000) for the same period in 2023, representing a 51.7% improvement [7]. - Total expenses for the three months ended September 30, 2024, were $39,585,000, a 4.5% increase from $37,857,000 in the same period last year [7]. - Net loss for the nine months ended September 30, 2024, was $44,197,000, an improvement from a loss of $51,685,000 in the same period last year [11]. - Funds From Operations (FFO) for the nine months ended September 30, 2024, was $10,264,000, a decrease from $29,574,000 for the same period in 2023 [13]. - The company reported a net loss of $15,622,000 for the three months ended September 30, 2024, compared to a net loss of $45,671,000 for the same period in 2023 [13]. Assets and Liabilities - The total assets of the company as of September 30, 2024, were $981.513 million, down from $1.012 billion in Q2 2024 [6]. - Total liabilities decreased to $335,099,000 as of March 31, 2024, from $330,450,000 in June 30, 2024 [10]. - The company reported a loss on the sale of properties and impairment of assets held for sale of $20,459,000 for the nine months ended September 30, 2024 [11]. - The company reported cash and cash equivalents of $42,375,000 as of September 30, 2024 [32]. - The company has a total outstanding debt of $277,688 thousand as of September 30, 2024, with an average interest rate of 8.00% [16]. Property and Leasing - The percentage of owned properties leased was 70.4% as of September 30, 2024, a decrease from 72.3% in Q2 2024 [6]. - The total number of owned properties decreased to 15 as of September 30, 2024, from 16 in the previous quarter [18]. - The total square footage of owned properties is reported at 4,966,398 square feet, down from 5,264,416 square feet in the previous quarter [18]. - The company has a total of 1,469,414 square feet of owned property that is currently vacant [24]. - New leasing activity for the nine months ended September 30, 2024, was 122,000 square feet, down from 206,000 square feet in the same period last year, while renewals and expansions totaled 242,000 square feet compared to 365,000 square feet [23]. Dividends and Shareholder Information - The company declared a dividend of $0.01 per share for Q3 2024, consistent with previous quarters [6]. - Total dividends declared for the quarter amount to $1.034 million, with a common dividend declared per share of $0.01 [17]. - Declared dividend as a percentage of net income per share is reported at (14)% for the quarter [17]. Non-GAAP Measures - The Company evaluates performance based on Funds From Operations (FFO), which is defined as net income excluding certain gains and losses, with adjustments for depreciation and amortization [33]. - Adjusted Funds From Operations (AFFO) is calculated by excluding non-cash losses on debt extinguishment and including distributions from non-consolidated REITs, among other adjustments [36]. - Net Operating Income (NOI) is defined as net income plus general and administrative expenses, excluding non-property specific income and expenses, providing insight into property performance [35]. - EBITDA is defined as net income plus interest, taxes, depreciation, and amortization, with Adjusted EBITDA excluding certain gains and losses [34]. - The Company emphasizes that FFO, EBITDA, and AFFO should not be considered alternatives to net income or cash flows from operating activities as defined by GAAP [33][34][36]. Market Capitalization and Debt - Total market capitalization as of September 30, 2024, is $537.79 million, a decrease from $586.35 million in the previous quarter [17]. - The company reported a net debt of $265,221 thousand as of September 30, 2024, down from $386,890 thousand a year earlier [14]. - The company has a maximum loan amount of $24,000,000 secured by the property, with the maturity date extended to September 30, 2025 [30]. Operational Insights - The company incurred total capital expenditures of $16,947,000 for the nine months ended September 30, 2024, with tenant improvements accounting for $9,621,000 [26]. - The average GAAP rents on leasing increased by 10.9% year-over-year, up from 7.2% in the previous year [23]. - The company recorded a significant decrease in Adjusted Funds From Operations (AFFO) to $(1,778,000) for the nine months ended September 30, 2024, compared to $1,810,000 for the same period in 2023 [13].

Franklin Street Properties (NYSE: FSP ) is a REIT focused on office properties in the U.S. that is currently trading much lower than its book value. After a strong downward trend since the beginning of this year, the stock has somewhat Analyst's Disclosure: I/we have a beneficial long position in the shares of FSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha) ...

FREMONT, Calif., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Cytek Biosciences, Inc. (Nasdaq: CTKB) is set to elevate its presence at this year's premier clinical industry events across the globe. Continuing its commitment to advancing cell analysis, Cytek will spotlight its Full Spectrum Profiling™ (FSP™) technology at the European Society for Clinical Cell Analysis (ESCCA) 2024 Conference in September and the 39th International Clinical Cytometry (ICCS) Meeting & Course in October. "We aim to bring our Full Spectr ...

LUNAMARINA/iStock via Getty Images Franklin Street Properties (NYSE:FSP) is a REIT focused on office properties in the U.S. that is currently trading much lower than its book value. After recent lows, the company's share price has recovered slightly. The last time we covered the company, we analyzed the Q4 report and subsequent company news and reiterated our buy rating based on those results. Since our last article, the company's stock price has declined by around 9%. The decline in stock price, combined w ...

Franklin Street Properties Corporation (NYSE:FSP) Q2 2024 Earnings Conference Call July 31, 2024 11:00 AM ET Company Participants Scott Carter - EVP, General Counsel & Secretary John Demeritt - EVP, CFO & Treasurer George Carter - Chairman & CEO John Donahue - EVP Jeff Carter - President & Chief Investment Officer Conference Call Participants Steven Dumanski - Janney Operator Thank you for standing by. My name is Danica, and I will be your conference operator today. At this time, I would like to welcome eve ...

The Company is subject to a business tax known as the Revised Texas Franchise Tax. Some of the Company's leases allow reimbursement by tenants for these amounts because the Revised Texas Franchise Tax replaces a portion of the property tax for school districts. Because the tax base on the Revised Texas Franchise Tax is derived from an income based measure, it is considered an income tax. The Company recorded a provision for the Revised Texas Franchise Tax of $106,000 and $142,000 for the six months ended Ju ...

Revenue and Income - Rental revenue for Q2 2024 was $30.818 million, a decrease of 4.3% from $31.225 million in Q1 2024 and a decrease of 10.7% from $34.519 million in Q2 2023[7] - Total revenue for Q2 2024 was $30.830 million, down from $31.225 million in Q1 2024 and $34.771 million in Q2 2023, reflecting a year-over-year decline of 11.3%[7] - Net income (loss) for Q2 2024 was $(21.023) million, compared to $(7.552) million in Q1 2024 and $13.112 million in Q2 2023[7] - Funds from Operations (FFO) for Q2 2024 was $3.721 million, down from $4.193 million in Q1 2024 and $7.509 million in Q2 2023[7] - Adjusted Funds from Operations (AFFO) for Q2 2024 was $518,000, compared to $(659,000) in Q1 2024 and $1.777 million in Q2 2023[7] - Net income for the three months ended June 30, 2024, was $(21,023) million, compared to a net income of $2,406 million for the same period in the previous year[14] - Total revenue for the three months ended June 30, 2024, was $30,830 million, a decrease of 18.4% compared to $37,767 million for the same period in 2023[28] - Net loss for the six months ended June 30, 2024, was $(28,575) million, compared to a net loss of $(6,014) million for the same period in 2023[31] Debt and Liabilities - The company reported a Debt to Total Market Capitalization ratio of 65.7% as of June 30, 2024, an increase from 56.3% in Q1 2024[7] - The total market capitalization as of June 30, 2024, was $461.457 million, with total debt outstanding at $303 million[7] - Total liabilities decreased from $444,387 million on March 31, 2023, to $335,099 million on June 30, 2024, a decrease of about 24.6%[9] - Net Debt as of June 30, 2024, was $271,505 million, down from $393,303 million as of September 30, 2023[14] - Total debt as of June 30, 2024, stands at $303,000 million, with an average interest rate of 8.23%[66] Assets and Equity - Total assets decreased from $1,213,682 million on March 31, 2023, to $1,038,963 million on June 30, 2024, representing a decline of approximately 14.4%[9] - Stockholders' equity decreased from $769,295 million on March 31, 2023, to $703,864 million on June 30, 2024, reflecting a decline of approximately 8.5%[9] - Cash and cash equivalents increased significantly from $13,110 million on March 31, 2023, to $37,779 million on June 30, 2024, marking a growth of approximately 187.5%[9] - Cash, cash equivalents, and restricted cash totaled $31,495 million as of June 30, 2024[14] Property and Leasing - The percentage of owned properties leased was 72.3% as of June 30, 2024, a slight decrease from 73.3% in Q1 2024[7] - The company owned 17 consolidated properties with a total of 5.5 million square feet as of June 30, 2024[5] - Total owned properties decreased from 20 to 16, with a total square footage of 5,264,416, reflecting a leased percentage of 72.3%[68] - The company reported a total of 264 leases expiring in 2024, covering 3,816,779 square feet, with an annualized rent of $117.45 million[52] - New leasing activity for the six months ended June 30, 2024, was 92,000 square feet, down from 176,000 square feet in the same period last year[76] - Renewals and expansions totaled 180,000 square feet, compared to 269,000 square feet for the same period last year[76] Performance Metrics - The interest coverage ratio for the three months ended June 30, 2024, was 1.52, compared to 2.21 for the same period last year[14] - The net debt-to-adjusted EBITDA ratio was 6.3 for the three months ended June 30, 2024[14] - Same store property NOI decreased by 0.5% from $13,499 million on March 31, 2024, to $13,417 million on June 30, 2024[12] - Comparative same store NOI increased by 3.7% from $13,014 million on March 31, 2024, to $13,200 million on June 30, 2024[12] - The company evaluates performance based on FFO, which is considered the most accurate measure of activity and basis for distributions to equity holders[61] Capital Expenditures and Investments - Property improvements and equipment expenditures for the six months ended June 30, 2024, were $(13,247) million, down from $(18,369) million in the same period last year[31] - Capital expenditures for the six months ended June 30, 2024, were $0, compared to $1.5 million for the year ended December 31, 2023[81] - The company reported a gain on the sale of properties of $34,326 million for the six months ended June 30, 2024, compared to $28,098 million in the prior year[31] - The company experienced a significant gain on the sale of properties, with notable sales including 999 Peachtree, which generated gross proceeds of $223.9 million and a gain of $86.766 million[82] Dividends and Shareholder Returns - Total dividends declared for the quarter remained stable at $1,034, with a common dividend declared per share of $0.01[39] - Declared dividend as a percentage of net income per share was -14% for the quarter ending March 31, 2024, compared to -5% for the previous quarter[39] Miscellaneous - The company has extended the maturity date of its BMO Term Loan from October 1, 2024, to April 1, 2026[38] - The company has a gross potential available under the BofA Revolver of $150 million, with an outstanding balance of $75 million[39] - The company has extended the maturity date of a mortgage loan to September 30, 2024, which is secured by property[58] - The company defines Adjusted Funds From Operations (AFFO) as FFO excluding non-cash losses on extinguishment of debt and other adjustments, providing a clearer picture of financial performance[92]

Franklin Street Properties Corp (NYSE:FSP) Q1 2024 Results Conference Call May 1, 2024 11:00 AM ET Company Participants Scott Carter - Executive VP, General Counsel & Secretary John Demeritt - Executive VP, CFO & Treasurer George Carter - Chairman & CEO John Donahue - Executive Vice President Jeffrey Carter - President & Chief Investment Officer Conference Call Participants Steve Dumanski - Janney Operator Good day, and welcome to the Franklin Street Properties Corp. First Quarter 2024 Results Conference Ca ...