Franklin Street Properties (FSP) - 2023 Q4 - Annual Results

Financial Performance - Rental revenue for Q4 2023 was $34.519 million, a decrease of 6.0$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$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]