Franklin Street Properties (NYSE: FSP) reported Q4 EPS of $0.03, $0.02 better than the analyst estimate of $0.01. Revenue for the quarter came in at $69 million versus the consensus estimate of $68.01 million.

Highlights

• Net Income was $3.6 million and $6.5 million, or $0.03 and $0.06 per basic and diluted share, for the fourth quarter and year ended December 31, 2019, respectively. FFO was $26.8 million and $97.5 million, or $0.25 and $0.91 per basic and diluted share, for the fourth quarter and year ended December 31, 2019, respectively.
• Adjusted Funds From Operations (AFFO) was $0.01 and $0.19 per basic and diluted share for the fourth quarter and year ended December 31, 2019, respectively.
• During 2019, we reduced total debt outstanding by $25 million to $970 million and have $600 million available on our line of credit at December 31, 2019.

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

“Leasing activity for full-year 2019 continued its strong pace of the previous year and as we begin 2020, prospective new tenant interest at our 32 operating and 3 redevelopment properties has never been stronger. Our goal is for 2020, the third year of a large lease roll period in our portfolio that began in 2018, to conclude by ushering in a solid long-term change in earnings trajectory that realizes the inherent value-add characteristics of our properties and their locations. Over the past two years, much of our leasing activity has been focused on renewing or backfilling existing tenant lease rollover space. In 2020, we will seek to achieve meaningful net new tenant absorption, with the objective of potentially increasing occupancies and rental rates for many years to come. The longer term value-add proposition that was such an integral part of the strategy of recasting our property portfolio over the last ten years is, we believe, finally at an inflection point. While 2020 will be the final year of our very large three-year leasing effort, it will also have its challenges as well as opportunities. We are well equipped to handle and take advantage of both, with over $600 million of available liquidity as of December 31, 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.”

GUIDANCE:

Franklin Street Properties sees FY2020 EPS of ($0.03)-$0.03, versus the consensus of $0.05.

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