Property Sales and Gains - The company sold an office property in Elk Grove, Illinois for a gross sales price of $29.1 million, resulting in a gain of approximately $8.4 million[19]. - On October 26, 2023, the company sold an office property in Plano, Texas for a gross sales price of $48 million, achieving a gain of $10.6 million[19]. - The company reported a loss of approximately $18.9 million from the sale of an office property in Miami, Florida, which sold for $68.0 million[19]. - The company sold two office properties in Broomfield, Colorado in 2022 for aggregate gross sales proceeds of $102.5 million, achieving a gain of $24.1 million[19]. Financial Condition and Debt - As of December 31, 2023, the company had $90 million outstanding under the BofA Term Loan, with a variable interest rate based on SOFR and a 5.00% floor on SOFR[64]. - As of December 31, 2023, the company had $115 million outstanding under the BMO Term Loan, also with a variable interest rate based on SOFR and a 5.00% floor on SOFR[65]. - The company has one remaining secured loan to a Sponsored REIT, which is anticipated to be repaid through cash flow from property operations or sale of the underlying property[58]. - The company may face reduced cash available for distribution to stockholders if it is required to keep balances outstanding on existing debt or seek new debt[58]. - The company’s financial condition could be adversely affected if it is unable to refinance the BofA Term Loan, the BMO Term Loan, the Series A Notes, or the Series B Notes upon their respective maturities[59]. - Failure to comply with covenants in the documents evidencing the BofA Term Loan, the BMO Term Loan, the Series A Notes, or the Series B Notes could adversely affect the company’s financial condition[60]. - A default under the loan documents could result in difficulty financing growth and a reduction in cash available for distribution to stockholders[63]. - An increase in interest rates would raise interest costs on variable rate debt, impacting the company’s ability to refinance existing debt[64]. - The company currently holds a corporate credit rating below investment grade from Moody's, which could limit access to funding sources and increase costs of obtaining funding[67]. Impact of COVID-19 and Economic Risks - The long-term impact of the COVID-19 pandemic continues to present material uncertainty regarding the performance of the company's properties[15]. - The long-term impact of the COVID-19 pandemic continues to create uncertainty, potentially affecting tenant rent payments and demand for commercial real estate[70]. - As of December 31, 2023, approximately 19% of tenants operate in the energy services industry, and 13% in information technology, indicating a concentration risk that could impact rental payments during economic downturns[82]. - The geographic distribution of properties shows 41% in the South and 37% in the West, with significant concentrations in Denver (37%), Houston (20.6%), and Dallas (17.6%), exposing the company to regional economic risks[83]. - The company may face significant delays in reletting vacant space, which could result in reduced distributions to stockholders, as up to 20% of rental revenue could expire each year[81]. - The company has experienced tenant defaults, including a write-off charge of $3.1 million due to a tenant's bankruptcy, which could negatively impact cash available for distribution[77]. - Rising interest rates could decrease the amount third parties are willing to pay for the company's assets, limiting portfolio adjustments in response to economic changes[66]. - The company faces risks from climate change, which could increase operational costs and impact demand for office space[86]. Legal and Compliance Risks - Security breaches could compromise sensitive data, leading to significant financial exposure and potential regulatory penalties[87]. - The company faces risks related to compliance with the Americans With Disabilities Act, which may require significant capital expenditures[91]. - The company has been managing its legal affairs and compliance with financial covenants to mitigate risks associated with its debt obligations[60]. Corporate Governance and Management - The company aims to increase shareholder value by pursuing the sale of select properties and leasing vacant spaces[18]. - The company’s executive team has extensive experience in finance and investment management, contributing to its strategic objectives and business plan execution[49]. - The company adopted a variable quarterly dividend policy in 2022, allowing the Board of Directors to determine dividends based on various factors, including annual taxable income estimates[95]. - The company has a change in control plan that may discourage acquisition proposals, potentially inhibiting changes in control[100]. Derivatives and Interest Rate Management - The interest rate on the BofA Revolver was 8.47% per annum as of December 31, 2023, with $90 million drawn on it[284]. - If market rates on the BMO Term Loan increased by 10%, future earnings and cash flows would decrease by approximately $1.0 million[287]. - The company terminated all outstanding interest rate swaps applicable to the BMO Term Loan in February 2023, receiving approximately $4.3 million[287]. - The company requires derivatives contracts to be with counterparties that have investment grade ratings[289]. - The company does not anticipate any counterparty failing to meet its obligations, but there are risks associated with hedging strategies[289]. - The total contractual variable rate borrowings as of December 31, 2023, amount to $405,000[292]. - The BofA Revolver has a total of $90,000 due in 2024[292]. - The BMO Term Loan Tranche B has a total of $115,000 due in 2024[292]. - The Series A Notes have a total of $116,000 due in 2024[292]. - The Series B Notes have a total of $84,000 due in 2027[292]. - The effective portion of the derivatives' fair value is recorded in other comprehensive income[290]. - The notional value of the 2019 BMO Interest Rate Swap is $165,000 with a strike rate of 2.39%[288]. - The fair value of the 2019 BMO Interest Rate Swap as of December 31, 2022, was $4,358[288].

Financial Performance - Rental revenue for Q4 2023 was $34.519 million, a decrease of 6.0% from $36.903 million in Q3 2023[11] - Total revenue for Q4 2023 was $34.771 million, down from $36.903 million in the previous quarter, reflecting a decline of 5.8%[11] - The company reported a net income of $3.575 million for Q4 2023, a significant recovery from a net loss of $45.671 million in Q3 2023[11] - Adjusted EBITDA for Q4 2023 was $13.112 million, slightly down from $13.718 million in Q3 2023[11] - Funds from Operations (FFO) for Q4 2023 were $6.938 million, compared to $7.509 million in Q3 2023, a decrease of 7.6%[11] - Total revenue for the year ended December 31, 2023, was $145.707 million, a decrease from $165.615 million in the previous year, representing a decline of approximately 12%[15] - Net income for the year ended December 31, 2023, was a loss of $48,110,000, compared to a net income of $1,094,000 in 2022[19] - Net income for the three months ended March 31, 2023, was $2.406 million, compared to a net loss of $8.420 million for the same period in the previous year[15] - Net income for the three months ended March 31, 2023, was $2,406,000, compared to a net loss of $48,110,000 for the year ended December 31, 2022[31] Market Capitalization and Debt - The company’s total market capitalization increased to $669.782 million as of December 31, 2023, up from $586.346 million in the previous quarter[11] - The debt to total market capitalization ratio improved to 60.5% in Q4 2023, down from 67.4% in Q3 2023[11] - The company reported a net debt of $386.890 million as of March 31, 2023, down from $504.017 million in the previous year, indicating improved financial health[28] - The company’s debt as of December 31, 2023, stands at $405,000,000[79] - Total debt outstanding as of December 31, 2023, was $405,000,000, with an average interest rate of 6.56%[34] Property and Leasing Activity - As of December 31, 2023, the company owned a portfolio of 18 properties totaling 5.8 million square feet[9] - The percentage of owned properties leased was 74.0% as of December 31, 2023, a slight decrease from 74.8% in the previous quarter[11] - New leasing activity for the year ended December 31, 2023, was 228,000 square feet, while renewals and expansions totaled 478,000 square feet, resulting in a total leasing activity of 706,000 square feet[56] - The average GAAP rent on leasing for the year was $29.71, reflecting a 7.4% increase over the previous year's average[56] - The largest tenant, CITGO Petroleum Corporation, occupies 248,399 square feet, contributing $7,064,468 in annualized rent, which is 5.6% of the total[52] - The company has 1,846,680 square feet leased to its 20 largest tenants, representing 32.0% of total leased square feet[52] - The company has 1,444,903 square feet of owned property vacant as of December 31, 2023[62] Cash and Expenses - Cash and cash equivalents increased to $127.880 million as of September 30, 2023, up from $10.983 million as of December 31, 2022[17] - The company incurred total expenses of $171.009 million for the year ended December 31, 2023, compared to $187.941 million in the previous year, indicating a reduction of approximately 9%[15] - The company reported a tax expense of $279,000 for the year ended December 31, 2023, compared to $204,000 in the previous year[15] - The company reported total capital expenditures of $35,291,000 for the year ended December 31, 2023, compared to $59,379,000 for the year ended December 31, 2022, indicating a decrease of approximately 40.5%[67] Non-GAAP Measures - The Company evaluates performance based on Funds From Operations (FFO), which is defined as net income or loss excluding certain gains and losses, plus depreciation and amortization[81] - FFO should not be considered an alternative to net income or loss or as an indicator of the Company's financial performance[82] - The Company also evaluates performance based on Adjusted Funds From Operations (AFFO), which includes FFO adjusted for non-cash items and recurring capital expenditures[91] - AFFO should be examined in connection with net income or loss and cash flows from operating, investing, and financing activities[93] - The Company provides property performance based on Net Operating Income (NOI), which is defined as net income or loss plus certain expenses and excluding non-property specific income and expenses[88] - NOI may not be comparable to NOI reported by other REITs due to different definitions[88] - EBITDA is defined as net income or loss plus interest expense, income tax expense, and depreciation and amortization expense[86] - Adjusted EBITDA excludes certain gains and losses and is presented as a supplemental disclosure regarding liquidity[86] - The Company believes that net income or loss is the most directly comparable financial measure to EBITDA and Adjusted EBITDA[86] - The Company emphasizes that all non-GAAP measures should not be considered as substitutes for measures prepared in accordance with GAAP[82]

Franklin Street Properties Corporation (NYSE:FSP) Q3 2023 Earnings Conference Call November 8, 2023 11:00 AM ET Company Participants Scott Carter - EVP, General Counsel & Secretary John Demeritt - EVP, CFO & Treasurer George Carter - CEO & Chairman John Donahue - EVP & President, FSP Property Management LLC Jeff Carter - President & Chief Investment Officer Conference Call Participants Steven Dumanski - Janney Montgomery Scott Operator Good morning and welcome to the Franklin Street Properties Corp. Third Q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32470 Franklin Street Properties Corp. (Exact name of registrant as specified in its charter) (State or ...

Franklin Street Properties Corp. (NYSE:FSP) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET Company Participants Scott Carter - General Counsel John Demeritt - Chief Financial Officer George Carter - Chief Executive Officer John Donahue - President, FSP Property Management Jeff Carter - President and Chief Investment Officer Conference Call Participants Steven Dumanski - Janney Montgomery Scott Craig Kucera - B. Riley Securities Operator Good morning, and welcome to the Franklin Street Propertie ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices)(Zip Code) (781) 557-1300 (Registrant's telephone number, including area code) For the transition period from to Commission File Nu ...

Franklin Street Properties Corporation (NYSE:FSP) Q1 2023 Earnings Conference Call May 3, 2023 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 & CIO Conference Call Participants Craig Kucera - B. Riley Securities Operator Good morning. Thank you for attending the Franklin Street Properties Corp. First Quarter 2023 Results Call. My name is Elissa, and I will be your ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32470 Franklin Street Properties Corp. (Exact name of registrant as specified in its charter) (State or othe ...

Franklin Street Properties Corporation (NYSE:FSP) Q4 2022 Earnings Conference Call February 15, 2023 11:00 AM ET Company Participants Scott Carter - EVP, General Counsel & Secretary John Demeritt - EVP, CFO & Treasurer George Carter - Chairman & CEO John Donahue - EVP Jeffrey Carter - President & CIO Conference Call Participants Rob Stevenson - Janney Montgomery Scott Craig Kucera - B. Riley Securities Operator Good morning. Thank you for attending today's Franklin Street Properties Corporation Fourth Quart ...

Property Sales and Dispositions - The company sold two office properties in Broomfield, Colorado for total gross sales proceeds of $102.5 million, achieving a gain of $24.1 million in 2022[21]. - In 2021, the company sold 10 office properties across four states for total gross sales proceeds of $602.7 million, resulting in a net gain of $113.1 million[21]. - The company aims to increase shareholder value by pursuing the sale of select properties and leasing vacant spaces[20]. - The company plans to use proceeds from property dispositions primarily for debt repayment[22]. - The company may not be able to dispose of properties at acceptable prices or within anticipated timeframes, affecting its financial flexibility[78]. Financial Condition and Debt Management - The company has no mortgage debt on its owned properties as of February 10, 2023[29]. - The company is committed to ensuring liquidity and meeting debt obligations to avoid defaults and maintain operational stability[64]. - As of February 10, 2023, the company had $48 million and $105 million in borrowings under the BofA Revolver, with a maximum borrowing limit of $150 million, which will reduce to $125 million on October 1, 2023, and to $100 million on April 1, 2024[70]. - The BMO Term Loan had outstanding amounts of $165 million and $125 million as of December 31, 2022, and February 10, 2023, respectively, with a required repayment of an additional $25 million by April 1, 2024[71]. - The company anticipates challenges in refinancing existing debts, including the BofA Revolver and BMO Term Loan, which could adversely affect cash flow and financial condition[66]. Operational Challenges and Market Conditions - The company has experienced significant disruptions due to the COVID-19 pandemic, impacting financial condition and operational results[58]. - The ongoing pandemic may lead to increased rent delinquencies and defaults, affecting occupancy rates and rental income[61]. - A tenant leasing approximately 130,000 square feet filed for Chapter 11 bankruptcy, resulting in a write-off charge of $3.1 million[62]. - The financial impact of the pandemic on the company's real estate holdings remains uncertain, influenced by external factors beyond control[63]. - The management team is actively monitoring market conditions to navigate potential adverse effects on business operations[60]. Employee and Workforce Information - The company had 28 employees as of February 10, 2023, with women representing 46.4% of the workforce[32]. Real Estate Portfolio and Risks - As of December 31, 2022, the company owned 21 office properties located in eight different states[19]. - The company believes its common stock price does not reflect the value of its underlying real estate assets[20]. - The company is focused on acquiring properties in prime locations with substantial infrastructure[29]. - Approximately 20% of the company's rental revenue from commercial properties is expected to expire each year, which may lead to challenges in re-leasing at favorable terms[84]. - As of December 31, 2022, the company had a tenant concentration of 17% in the energy services industry, which poses risks during economic downturns affecting these sectors[85]. - The company's properties are geographically concentrated, with 44.8% in the South and significant holdings in Denver, Dallas, and Houston, making it vulnerable to economic conditions in these areas[86]. - The company faces competition from national, regional, and local real estate operators, which could negatively impact occupancy rates and rental revenues[87]. - A tenant default in December 2020 resulted in a write-off charge of $3.1 million, highlighting the risks associated with tenant bankruptcies[81]. Financial Instruments and Interest Rate Risks - The company terminated interest rate swaps related to the BMO Term Loan, receiving approximately $4.3 million from these terminations[71]. - The company does not believe that the interest rate risk on the BofA Revolver is material as of December 31, 2022[277]. - The effective portion of the derivatives' fair value is recorded in other comprehensive income in the consolidated statements[281]. - The company requires derivatives contracts to be with counterparties that have investment grade ratings to mitigate counterparty credit risk[280]. - The company anticipates no significant loss of basis in the contracts due to unanticipated changes in interest rates[280]. Insurance and Compliance Risks - The company carries comprehensive insurance, but certain losses may be uninsurable, risking capital investment and anticipated profits[92]. - Compliance with environmental regulations may require substantial capital expenditures, affecting cash available for distribution to stockholders[96]. - The company faces risks related to climate change, which could increase operating costs significantly, including energy and insurance, potentially impacting profitability[88]. - Security breaches pose a risk to the company, with potential financial exposure and liability claims if sensitive data is compromised[90]. - The company has significant investments in markets vulnerable to terrorism, which could lead to decreased demand for office space and increased vacancies[91]. Shareholder Considerations - The company adopted a variable quarterly dividend policy in 2022, which may lead to fluctuations in dividend levels based on financial performance[98]. - As of December 31, 2022, the company owned 21 properties, which may decline in value, adversely affecting stockholder investments[101]. - Future equity issuances could dilute existing stockholders' interests, impacting the company's ability to finance acquisitions and operations[102]. - The market price of the company's common stock may fluctuate due to changes in economic conditions and perceptions of REITs[103]. - Provisions in the company's organizational documents may inhibit changes in control, potentially affecting stockholder opportunities for premium realization[107].