George J. Carter, President, Chairman and CEO of Franklin Street Properties Corp. (FSP), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - June 18, 2013 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Acquisition and Financing Costs - Pricing Power Outlook - Residential and Commercial REITs - Inexpensive Access to Capital - Apartment, Lodging, Self-Storage and Office REITs

Companies include: Franklin Street Properties Cor (FSP) and many more.

In the following excerpt from the REITs Report, the President, Chairman and CEO of Franklin Street Properties Corp. (FSP) discusses company strategy and the outlook for this vital industry:

TWST: From your most recent quarterly earnings announcement, what were the key takeaways?

Mr. Carter: Our most recent quarter continued to see our leased percentage increase from 94% of the portfolio in the fourth quarter to about 94.4% leased at the end of the first quarter. That is a fairly high percentage for office portfolios like ours in the marketplace, and we actually believe that the possibility, going forward between now and year end, of that leased percentage getting higher is excellent.

Another metric that I thought was a highlight was our same-store rent growth. We had about 5% same-store rent growth in 2012, and in the first quarter of the year we had continued same-store rent growth of about 1%, and we have done some leasing that will come online in the second half of this year that we believe will continue our growth in same-store rents. And lastly, our year-over-year funds from operation growth grew over $1 million dollars; that was exciting, and we anticipate continued FFO growth for the balance of this year as well.

TWST: Describe your balance sheet, how much leverage you have, and your ongoing access to capital. I believe you had a recent stock offering.

Mr. Carter: We have a conservative balance sheet and really a very simple one. Our long-term vision for the company is about a two-thirds equity to one-third debt ratio. Those ratios move around during the course of any period of time relative to acquisitions we may make or equity offerings we may do. Right now we have a $900 million financing package from a wonderful group of banks. About $400 million of that $900 million is termed out in a five-year term loan - this is as of the end of the first quarter - and, again as of the end of the first quarter, about $222 million is on a revolver.

We have, at the end of the first quarter, liquidity of over $250 million and a debt-to-equity ratio on average about one-third debt and two-thirds equity. If you look at us you will see, again at the end of the first quarter, an equity market capitalization of about $1.2 billion and a total market cap including debt of about $1.8 billion. We have an accordion feature on our financing package of an additional $250 million. We just completed an equity offering, really our first major public equity offering that was broadly marketed. We are using financing and our equity to acquire...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

View Comments (0)