Franklin Street Properties (NYSE: FSP) reported Q3 EPS of $0.02, versus $0.09 reported last year. Revenue for the quarter came in at $68.54 million versus the consensus estimate of $64.8 million.

• Net income was $2.4 million or $0.02 per basic and diluted share for the third quarter ended September 30, 2019. Funds From Operations (FFO) was $24.9 million or $0.23 per basic and diluted share for the third quarter ended September 30, 2019.
• Adjusted Funds From Operations (AFFO) was $0.10 per basic and diluted share for the third quarter ended September 30, 2019.
• We are raising our full year FFO guidance for 2019, which is now estimated to be in the range of $0.87 to $0.89 per basic and diluted share, from our previously estimated range of $0.84 to $0.88 per basic and diluted share. Lease termination fee income was approximately $4.2 million for the nine months ended September 30, 2019, compared to approximately $4.4 million for the same period in 2018. Our full year FFO guidance for 2019 includes estimated lease termination fee income of approximately $8.4 million, compared to approximately $6.1 million during the year ended 2018.

George J. Carter, Chairman and Chief Executive Officer, commented as follows:

“Leasing activity during the third quarter of 2019 continued at a strong pace within our property portfolio of 32 operating and three redevelopment properties. We believe that we are adding value to our portfolio as we continue to work through a large, approximately three-year lease roll bulge, that began in 2018 and continues through 2020. Much of our recent leasing activity has been focused on renewing or backfilling existing tenant lease rollover space, but net new absorption is beginning to take place as well. We also continue to see generally rising rents and longer lease terms at our properties as we work through this period. Prospective new tenant activity at our three redevelopment properties located in Miami, Minneapolis and Charlotte continued to be solid during the quarter and we expect to make more progress with these assets during the remainder of 2019 and into 2020. With over $600 million of available liquidity as of September 30, 2019, we are confident that we have the financial resources needed for flexibility on our balance sheet and to maximize our leasing and redevelopment value-add opportunities.”

Net Income and FFO Guidance

We are raising our full year net income guidance for 2019, which is estimated to be in the range of approximately $0.03 to $0.05 per basic and diluted share, and are introducing net income guidance for the fourth quarter of 2019, which is estimated to be in the range of approximately $0.00 to $0.02 per basic and diluted share. We are raising our full year FFO guidance for 2019, which is estimated to be in the range of approximately $0.87 to $0.89 per basic and diluted share, and are introducing FFO guidance for the fourth quarter of 2019, which is estimated to be in the range of approximately $0.21 to $0.23 per basic and diluted share. This guidance (a) excludes the impact of future acquisitions, developments, dispositions, debt financings or repayments or other capital market transactions; (b) reflects estimates from our ongoing portfolio of properties, other real estate investments and general and administrative expenses; and (c) reflects our current expectations of economic conditions. We will update guidance quarterly in our earnings releases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

For earnings history and earnings-related data on Franklin Street Properties (FSP) click here.