Franklin Street Properties (FSP) - 2024 Q2 - Quarterly Results

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]