WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (“FSP”, “our” or “we”) (NYSE American: FSP) announced today that its Board of Directors declared a regular quarterly dividend of $0.09 per share of common stock for the period January 1, 2018 through March 31, 2018, payable on May 10, 2018 to stockholders of record as of April 20, 2018.
George J. Carter, Chairman and Chief Executive Officer of FSP, commented as follows:
"The declared quarterly dividend of $0.09 per share of common stock represents a $0.10 reduction from the $0.19 per share of common stock quarterly dividend that FSP has paid since August 2008. As indicated in our fourth quarter 2017 earnings press release, the transition of FSP’s property portfolio from a suburban to a primarily urban orientation has generally resulted in higher leasing costs per square foot but longer lease terms and higher rental rates. We anticipate that we will have the opportunity to do significant leasing in the property portfolio during 2018 and 2019 with the objective of achieving 92% to 94% stabilized occupancy. While some of the leasing to be done is rollover space from existing tenant lease expirations, a large amount is associated with value-add opportunities that exist in currently vacant space in many of our recently acquired urban-infill properties.
"The currently declared dividend of $0.09 per share of common stock has been set at a level that our Board of Directors believes will better enable us to fund anticipated capital expenditures and leasing costs from internal cash flow and that will more closely align our percentage of AFFO (adjusted funds from operations) payout with other office REITs (real estate investment trusts).
"We believe that this action, together with the strength of our balance sheet, which includes over $500 million in available liquidity under our revolving line of credit, allows us to add value to our property portfolio through competitive lease deals and targeted capital improvements, while also enabling us to grow property NOI (net operating income) over time.”
This press release, along with other news about FSP, is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on investing in institutional-quality office properties in the U.S. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our five core markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements, such as expectations for dividend levels in future periods, our ability to lease space in the future, expectations for property NOI and AFFO levels in future periods, expectations for growth and leasing activities in future periods, and expectations for future leasing costs, capital expenditure amounts and rental rates, that are based on current judgments and current knowledge of management and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, changes in interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, delays in construction schedules, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2017, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.