Franklin Street Properties Corp's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Franklin Street Properties Corp (FSP) recently announced a dividend of $0.01 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-25. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Franklin Street Properties Corp's dividend performance and assess its sustainability.
What Does Franklin Street Properties Corp Do?
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Franklin Street Properties Corp is a real estate investment trust. The company is focused on commercial real estate investments in office markets. The company's operations include rental income from real estate leasing, interest income from secured loans made on office properties, property dispositions, and fee income from asset/property management and development. Franklin Street Properties Corp operates in markets such as Atlanta, Dallas, Denver, Houston, and Minneapolis, and owns a portfolio of approximately 32 properties.
A Glimpse at Franklin Street Properties Corp's Dividend History
Franklin Street Properties Corp has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Franklin Street Properties Corp's Dividend Yield and Growth
As of today, Franklin Street Properties Corp currently has a 12-month trailing dividend yield of 1.64% and a 12-month forward dividend yield of 1.64%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Franklin Street Properties Corp's annual dividend growth rate was -17.80%. Extended to a five-year horizon, this rate decreased to -19.10% per year. And over the past decade, Franklin Street Properties Corp's annual dividends per share growth rate stands at -11.90%.
Based on Franklin Street Properties Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Franklin Street Properties Corp stock as of today is approximately 0.57%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Franklin Street Properties Corp's dividend payout ratio is 0.00.
Franklin Street Properties Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Franklin Street Properties Corp's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Franklin Street Properties Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Franklin Street Properties Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Franklin Street Properties Corp's revenue has increased by approximately -13.90% per year on average, a rate that underperforms approximately 89.8% of global competitors.
Concluding Thoughts on Franklin Street Properties Corp's Dividend Profile
In conclusion, while Franklin Street Properties Corp's dividend payments remain consistent, the negative dividend growth rate and low yield on cost raise questions about long-term dividend sustainability. The payout ratio is currently at 0.00, indicating potential room for dividend sustainability or growth. However, the company's profitability and growth metrics present a mixed outlook. Investors should weigh these factors alongside their investment strategy and consider the company's ability to navigate future market challenges. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
