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Franklin Street Properties (FSP) - 2022 Q4 - Annual Report
2023-02-13 16:00
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].
Franklin Street Properties (FSP) - 2022 Q3 - Quarterly Report
2022-10-31 16:00
[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial position and performance reflect impacts from property dispositions, with decreased assets and liabilities, and varied net income results across quarterly and nine-month periods [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased to $1.26 billion and $489.5 million respectively, driven by property sales and subsequent debt repayment Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Real estate assets, net | $1,118,983 | $1,190,970 | | Total assets | $1,262,070 | $1,364,173 | | Term loans payable, net | $164,692 | $274,286 | | Total liabilities | $489,509 | $580,970 | | Total stockholders' equity | $772,561 | $783,203 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Property sales led to lower Q3 revenue but a higher net income due to gains, while nine-month revenue and net income both declined year-over-year Quarterly Operating Results (in thousands, except per share) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Total Revenues | $40,836 | $50,802 | | Total Expenses | $46,810 | $55,112 | | Gain on sale of properties, net | $24,077 | $8,632 | | Net Income | $17,246 | $4,456 | | Net Income per Share | $0.17 | $0.04 | Nine-Month Operating Results (in thousands, except per share) | Metric | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Total Revenues | $124,404 | $165,986 | | Total Expenses | $142,401 | $180,943 | | Gain on sale of properties, net | $24,077 | $29,258 | | Net Income | $3,978 | $14,145 | | Net Income per Share | $0.04 | $0.13 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations decreased, while investing activities provided cash from property sales, and financing activities used cash for debt and dividend payments Cash Flow Summary (in thousands) | Activity | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,354 | $26,961 | | Net cash provided by investing activities | $63,972 | $264,349 | | Net cash used in financing activities | ($105,360) | ($285,729) | | **Net (decrease) increase in cash** | **($32,034)** | **$5,581** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail a smaller property portfolio, significant debt restructuring, a new credit loss provision, and a reduced quarterly dividend - As of September 30, 2022, the company owned **22 operating properties**, down from 26 properties as of September 30, 2021, due to its disposition strategy[24](index=24&type=chunk)[26](index=26&type=chunk) - The company recorded a **$1.9 million provision for credit losses** during the first nine months of 2022 related to a $24 million loan to a Sponsored REIT, FSP Monument Circle LLC, due to deterioration in the real estate market[39](index=39&type=chunk)[45](index=45&type=chunk) - On September 6, 2022, the company prepaid the remaining **$110 million balance of the BofA Term Loan**; as of September 30, 2022, **$65.0 million was drawn on the new BofA Revolver**[56](index=56&type=chunk)[69](index=69&type=chunk) - On August 31, 2022, the company sold two office properties in Colorado for **$102.5 million**, realizing a net gain of approximately **$24.1 million**[105](index=105&type=chunk) - The quarterly dividend was reduced from **$0.09 per share in Q2 2022 to $0.01 per share in Q3 2022**; a subsequent dividend of $0.01 per share was declared on October 7, 2022[85](index=85&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management focuses on a strategy of selective asset sales and debt repayment amid challenges from rising interest rates and declining office occupancy - The company's current strategy is to invest in office properties in the U.S. sunbelt and mountain west regions and to **sell select properties** where valuation potential has been reached[109](index=109&type=chunk)[112](index=112&type=chunk) - Anticipated property dispositions in 2022 are expected to generate gross proceeds between **$102.5 million and $200 million**, which will be used for debt repayment, stock repurchases, and dividends[112](index=112&type=chunk)[131](index=131&type=chunk) - The company adopted a **variable quarterly dividend policy** in July 2022, replacing its previous regular quarterly dividend policy[117](index=117&type=chunk) - The portfolio's leased percentage decreased from 78.4% at year-end 2021 to **75.9%** as of September 30, 2022[124](index=124&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Property dispositions drove a year-over-year decline in rental revenue, though Q3 net income was boosted by a significant gain on sale Comparison of Three Months Ended September 30 (in thousands) | Account | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Rental Revenue | $40,366 | $50,326 | $(9,960) | | Total Expenses | $46,810 | $55,112 | $(8,302) | | Gain on sale of properties, net | $24,077 | $8,632 | $15,445 | | Net Income | $17,246 | $4,456 | $12,790 | Comparison of Nine Months Ended September 30 (in thousands) | Account | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Rental Revenue | $122,994 | $164,671 | $(41,677) | | Total Expenses | $142,401 | $180,943 | $(38,542) | | Impairment and loan loss reserve | $(1,857) | $— | $(1,857) | | Net Income | $3,978 | $14,145 | $(10,167) | [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) Funds From Operations (FFO) and Same Store Net Operating Income (NOI) both declined, reflecting lower operating income from a smaller property portfolio Funds From Operations (FFO) (in thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | **Three Months Ended Sep 30** | | | | Net Income | $17,246 | $4,456 | | FFO | $9,041 | $14,797 | | **Nine Months Ended Sep 30** | | | | Net Income | $3,978 | $14,145 | | FFO | $30,880 | $47,524 | - Comparative Same Store NOI decreased by **11.6%** for the nine months ended September 30, 2022, compared to the same period in 2021, falling from $57.0 million to $50.4 million[167](index=167&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) Cash reserves decreased significantly, but management believes liquidity is sufficient for the next year, supported by a new revolving credit facility - Cash, cash equivalents, and restricted cash decreased from **$40.7 million** at year-end 2021 to **$8.7 million** at September 30, 2022[173](index=173&type=chunk) - The company has a **$165 million BMO Term Loan** maturing in January 2024 and **$200 million in Senior Notes** maturing in 2024 and 2027[183](index=183&type=chunk)[203](index=203&type=chunk) - In January 2022, the company entered into a new BofA Revolver with a capacity of **$237.5 million**, of which **$65.0 million was outstanding** as of September 30, 2022[189](index=189&type=chunk) - The company's stock repurchase program, authorized for up to **$50 million**, had **no activity** during the second and third quarters of 2022[89](index=89&type=chunk)[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The primary market risk stems from interest rate changes on its floating-rate debt, though this is partially mitigated by an interest rate swap - The company is exposed to interest rate risk on **$65.0 million of floating-rate debt** under the BofA Revolver[216](index=216&type=chunk)[217](index=217&type=chunk) - The BMO Term Loan's variable rate is hedged by an interest rate swap, fixing the effective interest rate at **4.04% per annum** as of September 30, 2022[218](index=218&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the third quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2022[226](index=226&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended September 30, 2022[227](index=227&type=chunk) [Part II. Other Information](index=70&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no current legal proceedings that are expected to have a material adverse effect on its financial condition or operations - The company is **not currently involved in any legal proceedings** that are expected to have a material adverse effect on its business[230](index=230&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) The company highlights significant risks from rising interest rates and adverse economic conditions, which could increase debt costs and reduce office demand - **Rising interest rates** pose a significant risk, as they increase interest costs on unhedged variable rate debt (BofA Revolver) and could adversely affect cash flow and the ability to refinance[233](index=233&type=chunk)[235](index=235&type=chunk) - **Uncertain economic conditions** in the U.S., including recessionary concerns, inflation, and the ongoing effects of the COVID-19 pandemic, are negatively impacting the demand for office space and could materially harm the company's earnings[236](index=236&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the company's $50 million stock repurchase authorization during the third quarter of 2022 - **No shares of common stock were repurchased** during the third quarter of 2022[237](index=237&type=chunk) [Defaults Upon Senior Securities](index=72&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None reported [Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) None reported [Other Information](index=72&type=section&id=Item%205.%20Other%20Information) None reported [Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO and iXBRL data files
Franklin Street Properties (FSP) - 2022 Q2 - Quarterly Report
2022-08-01 16:00
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, 2022. 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 other ...
Franklin Street Properties (FSP) - 2022 Q1 - Quarterly Report
2022-05-02 16:00
Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022. 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. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) (State or othe ...
Franklin Street Properties (FSP) - 2021 Q4 - Annual Report
2022-02-14 16:00
Property Dispositions and Sales - The company anticipates property dispositions in 2022 will generate estimated gross proceeds between $250 million and $350 million[26]. - In 2021, the company sold 10 office properties for aggregate gross sale proceeds of $602.7 million, resulting in a net gain of $113.1 million[27]. - The company plans to use proceeds from property sales for debt repayment, stock repurchases, and special dividends to meet REIT requirements[28]. - The company anticipates that Sponsored REIT Loans will be repaid at maturity, but defaults could require additional draws or cash usage, reducing cash available for distribution[70]. Financial Performance and Challenges - The COVID-19 pandemic has caused significant disruptions, adversely impacting financial condition and results of operations, with potential tenant rent payment issues[62]. - The company has experienced increased operational costs and reduced rental receipts due to the pandemic, impacting overall profitability[66]. - The company has been unable to predict the full extent of the COVID-19 pandemic's impact on future financial performance, which remains uncertain[68]. - Ongoing economic impacts from the pandemic could lead to increased rent delinquencies and defaults, affecting occupancy and rental rates[67]. - The company may face challenges in refinancing existing debts, including the BofA Revolver and various term loans, which could adversely affect financial condition[71]. Competition and Market Conditions - The company continues to face competition in its real estate markets, impacting rental revenues and occupancy levels[30]. - The company faces competition from national, regional, and local real estate operators, which could adversely affect cash flow and rental revenues[98]. - The company has a significant concentration of properties in energy-influenced markets, which may be adversely affected by reduced demand for oil[65]. - Approximately 18% of the company's tenants operate in the energy services industry, indicating a concentration risk[94]. Debt and Interest Rate Management - As of December 31, 2021, the company had $35 million drawn and outstanding under the BofA Revolver, with a borrowing limit of $237.5 million[76]. - The BofA Term Loan had $110 million drawn and outstanding as of December 31, 2021, with an accordion feature allowing for up to $500 million in additional borrowing capacity[76]. - The BMO Term Loan had $165 million drawn and outstanding as of December 31, 2021, with the potential to increase by an additional $100 million[77]. - The company faces risks from potential increases in interest rates, which could adversely affect cash flow and refinancing capabilities[79]. - The company has fixed the base LIBOR rate on the BMO Term Loan at 2.39% per annum until January 31, 2024, through interest rate swap agreements[78]. Regulatory Compliance and Risks - The company is committed to compliance with various governmental regulations, which may require substantial capital expenditures[31]. - The company must comply with the Americans With Disabilities Act and fire and safety regulations, which may require significant capital expenditures[106]. - The company is subject to risks associated with climate change, which could increase operating costs and impact property demand[99]. - The company’s ability to qualify as a REIT is complex and could be jeopardized by various factors, leading to adverse tax consequences[117]. Operational and Workforce Insights - The company had 32 employees as of February 4, 2022, with women representing 46.9% of the workforce[38]. - The management team is focused on maintaining financial strength and operational efficiency amid ongoing challenges[58]. - The inability to operate effectively in affected areas could lead to delays in construction and increased operational challenges[65]. Stockholder Value and Market Perception - The company believes its common stock price does not reflect the value of its underlying real estate assets[26]. - The company’s common stock price may fluctuate based on market conditions and financial performance, affecting stockholder value[114]. - The company has provisions in its organizational documents that may inhibit changes in control, potentially affecting stockholder interests[119]. - The company may experience fluctuations in dividends due to changes in real estate occupancy levels and rental rates[111]. Risk Management and Financial Instruments - The company carries comprehensive liability and property insurance, but certain losses may be uninsurable, risking capital investment and anticipated profits[104]. - The Company requires derivatives contracts to be with counterparties that have investment grade ratings to mitigate counterparty credit risk[295]. - The effective portion of the derivatives' fair value is recorded in other comprehensive income in the consolidated statements[296]. - The Company has hedged variable cash flows related to interest on its loans using derivative instruments[295].
Franklin Street Properties (FSP) - 2021 Q3 - Quarterly Report
2021-11-07 16:00
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, 2021. 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) Maryland 0 ...
Franklin Street Properties (FSP) - 2021 Q2 - Quarterly Report
2021-08-02 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (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, 2021. OR (Registrant's telephone number, including area code) N/A For the transition period from to Commission File Number: 001-32470 Franklin Street Properties Corp. (Exact name o ...
Franklin Street Properties (FSP) - 2021 Q1 - Quarterly Report
2021-05-03 16:00
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, 2021. 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 (FSP) - 2020 Q4 - Annual Report
2021-02-15 16:00
Property Holdings and Dispositions - The company owns 34 office properties across 10 states as of December 31, 2020, consisting of 32 operating properties and 2 redevelopment properties[25] - An office property in Durham, North Carolina was sold for approximately $89.7 million, resulting in a gain of approximately $41.9 million on December 23, 2020[26] - The company anticipates property dispositions in 2021 to generate estimated gross proceeds between $350 million and $450 million, primarily for debt repayment[27] - The company has adopted a strategy to dispose of certain properties where valuation objectives have been met, enhancing financial flexibility[27] - The company is focused on acquiring properties in excellent locations with substantial infrastructure to avoid speculative investments[29] Financial Performance and Strategy - The company aims to create shareholder value through increased revenue from rental, dividends, interest, and fees, as well as net gains from property sales[24] - As of February 5, 2021, none of the company's owned properties were subject to mortgage debt, providing financial flexibility[36] Workforce and Diversity - The company had 37 employees as of February 5, 2021, with women representing 48.6% of the workforce, and 50.0% of management roles held by women[38] Debt and Interest Rates - Total debt amounts to $923.5 million, with significant repayments scheduled for 2023 and 2025[288] - The BAML Revolver has a total of $3.5 million due in 2023[288] - The JPM Term Loan remains at $100 million with no repayments due until 2024[288] - The BAML Term Loan has a repayment of $400 million scheduled for 2023[288] - BMO Term Loan Tranche A has a total of $55 million due in 2021[288] - BMO Term Loan Tranche B has a repayment of $165 million due in 2025[288] - Series A Notes total $116 million, with repayments due in 2025[288] - Series B Notes total $84 million, with repayments due thereafter[288] - The company has no immediate repayment obligations for the BAML Revolver and JPM Term Loan until 2024[288] - Overall, the company has structured its debt with staggered repayment schedules to manage cash flow effectively[288] Interest Rate Risk Management - As of December 31, 2020, a 10% increase in market rates on outstanding borrowings would decrease future earnings and cash flows by approximately $5,000 and $153,000 annually for the BAML Revolver and JPM Term Loan, respectively[281] - The interest rate on the BAML Revolver was LIBOR plus 120 basis points, or 1.34% per annum, as of December 31, 2020[281] - The interest rates on the BMO Term Loan, BAML Term Loan, and JPM Term Loan were fixed through interest rate swap agreements, with rates of 2.47%, 3.64%, and 3.69% per annum, respectively[282] - The fair value of the 2017 Interest Rate Swap was $(2,947) thousand, while the 2019 JPM Interest Rate Swap was $(2,102) thousand as of December 31, 2020[283] - The notional value of the 2019 BMO Interest Rate Swap was $220,000 thousand, with a strike rate of 2.39% and expiration in January 2024[283] - The BAML Revolver matures on January 12, 2022, while the JPM Term Loan matures on November 30, 2021[287] - The company has the right to extend the maturity date of the BAML Revolver and JPM Term Loan with two additional six-month extensions[287] - The company has mitigated interest rate risk on the BAML Term Loan through the 2017 Interest Rate Swap until September 27, 2021[282] - The company requires derivatives contracts to be with counterparties that have investment grade ratings to manage counterparty credit risk[285] - The effective portion of the derivatives' fair value is recorded to other comprehensive income in the consolidated statements of other comprehensive income (loss)[286] Regulatory Compliance and Competition - The company is committed to compliance with various governmental regulations, including the Americans With Disabilities Act (ADA) and fire safety regulations, which may require substantial capital expenditures[33][34] - The company may face competition from larger firms with more resources, which could impact rental revenues and occupancy levels[31]
Franklin Street Properties (FSP) - 2020 Q3 - Quarterly Report
2020-11-03 21:45
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, 2020. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to or organization) 401 Edgewater Place, Suite 200 Wakefield, MA 01880 (Address of principal executive offices)(Zip Code) (781) 557-130 ...