FRANKLIN STREET PROPERTIES CORP /MA/ - FORM 8-K - EX-99.2

Attached files

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EX-99.1 - EX-99.1 - FRANKLIN STREET PROPERTIES CORP /MA/	ex-99d1.htm
8-K - 8-K - FRANKLIN STREET PROPERTIES CORP /MA/	fsp-20200211x8k11a4b4e.htm

Exhibit 99.2

Fourth Quarter 2019
Table of Contents


	Page		Page

Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry	18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term	19-20
Financial Highlights	4	Leasing Activity	21
Income Statements	5	Lease Expirations by Square Feet	22
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot	23
Cash Flow Statements	7	Redevelopment Activity	24
Property Net Operating Income (NOI)	8	Capital Expenditures	25

Reconciliation		Transaction Activity	26
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate	27
Property NOI	11
		Net Asset Value Components	28
Debt Summary	12
		Appendix: Definitions of Non-GAAP Measures
Capital Analysis	13	FFO	29
		EBITDA and NOI	30
Owned and Managed Portfolio Overview	14-17	AFFO	31


All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include general economic conditions, uncertainties relating to fiscal policy, changes in government regulations, regulatory uncertainty, geopolitical events, local real estate conditions, the performance of properties that FSP has acquired or may acquire, the timely lease-up of properties and other risks, which are detailed from time to time in FSP’s reports filed with the Securities and Exchange Commission. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

		Dominion Tower, Denver, CO

December 31, 2019| Page 2


	Company Information

Overview		Snapshot (as of December 31, 2019)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. 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. FSP’s real estate operations include property acquisitions and dispositions, short-term financing, leasing, development and asset management.		Corporate Headquarters	Wakefield, MA
		Fiscal Year-End	31-Dec
		Total Properties	35 (1)
		Total Square Feet	9.9 Million (1)
		Trading Symbol	FSP
		Exchange	NYSE American
		Common Shares Outstanding	107,269,201
		Quarterly Dividend	$0.09
Our Business		Dividend Yield	4.2%
As of December 31, 2019, the Company owned and operated a portfolio of real estate consisting of 32 operating properties, three redevelopment properties and two managed Sponsored REITs. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons.		Total Market Capitalization	$1.9 Billion (2)
		Insider Holdings	4.06%


Management Team

George J. Carter	Jeffrey B. Carter
Chief Executive Officer and	President and Chief Investment
Chairman of the Board	Officer

John G. Demeritt	Scott H. Carter
Executive Vice President, Chief	Executive Vice President, General
Financial Officer and Treasurer	Counsel and Secretary

John F. Donahue	Eriel Anchondo
Executive Vice President	Executive Vice President and Chief Operating Officer	999 Peachtree, Atlanta, GA

Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com (1) Includes both operating and redevelopment properties. (2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

December 31, 2019| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	31-Dec-19		30-Sep-19		30-Jun-19		31-Mar-19		31-Dec-18
Income Items:
Rental revenue	$	68,575	$	68,108	$	65,485	$	63,359	$	65,304
Total revenue		68,997		68,539		66,813		64,716		66,578
Net income (loss)		3,648		2,399		1,633		(1,205)		1,371
Adjusted EBITDA*		35,632		33,996		33,113		31,267		33,875
FFO*		26,755		24,908		23,769		22,110		24,546
AFFO*		544		10,364		2,916		6,717		10,840

Per Share Data:
EPS	$	0.03	$	0.02	$	0.02	$	(0.01)	$	0.01
FFO*	$	0.25	$	0.23	$	0.22	$	0.21	$	0.23
AFFO*	$	0.01	$	0.10	$	0.03	$	0.06	$	0.10
Weighted Average Shares (diluted)		107,240		107,231		107,231		107,231		107,231
Closing share price	$	8.56	$	8.46	$	7.38	$	7.19	$	6.23
Dividend declared	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09

Balance Sheet Items:
Real estate, net	$	1,637,210	$	1,626,510	$	1,627,681	$	1,624,833	$	1,625,773
Other assets, net		205,444		216,640		215,661		266,412		272,329
Total assets, net		1,842,654		1,843,150		1,843,342		1,891,245		1,898,102
Total liabilities, net		1,056,258		1,053,497		1,042,834		1,071,258		1,060,468
Shareholders' equity		786,396		789,653		800,508		819,987		837,634

Market Capitalization and Debt:
Total Market Capitalization (a)	$	1,888,224	$	1,877,176	$	1,761,366	$	1,780,992	$	1,663,050
Total debt outstanding (excluding unamortized financing costs)	$	970,000	$	970,000	$	970,000	$	1,010,000	$	995,000
Debt to Total Market Capitalization		51.4%		51.7%		55.1%		56.7%		59.8%
Net Debt to Adjusted EBITDA*		6.7		7.0		7.2		8.0		7.3

Operating Properties Leasing Statistics (b):
Operating properties assets		32		32		32		32		32
Operating properties total SF		9,504,634		9,503,964		9,498,858		9,495,118		9,486,650
Operating properties % leased		87.6%		89.7%		88.1%		88.5%		89.0%

(a)

Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.

(b)

For periods in 2019 and 2018, excludes redevelopment properties.

*See pages 9 & 10 for reconciliations of Net income or loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Definitions of these Non-GAAP Measures beginning on page 29.

December 31, 2019| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)


									For the										For the
	For the Three Months Ended								Year Ended		For the Three Months Ended								Year Ended
	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18

Revenue:
Rental	$	63,359	$	65,485	$	68,108	$	68,575	$	265,527	$	65,628	$	65,409	$	67,436	$	65,304	$	263,777
Related party revenue:
Management fees and interest income from loans		1,352		1,322		426		417		3,517		1,256		1,276		1,261		1,268		5,061
Other		5		6		5		5		21		9		9		8		6		32
Total revenue		64,716		66,813		68,539		68,997		269,065		66,893		66,694		68,705		66,578		268,870

Expenses:
Real estate operating expenses		17,726		17,116		18,041		19,428		72,311		17,151		16,954		17,946		18,652		70,703
Real estate taxes and insurance		12,102		12,801		12,505		10,463		47,871		11,177		12,292		11,651		10,737		45,857
Depreciation and amortization		23,245		22,109		22,559		22,996		90,909		24,035		23,591		23,277		23,327		94,230
General and administrative		3,509		3,702		3,886		3,376		14,473		3,432		3,082		3,394		3,162		13,070
Interest		9,368		9,371		9,036		8,982		36,757		9,486		9,753		9,935		9,200		38,374
Total expenses		65,950		65,099		66,027		65,245		262,321		65,281		65,672		66,203		65,078		262,234

Income (loss) before taxes on income and equity in income (loss) of non-consolidated REITs		(1,234)		1,714		2,512		3,752		6,744		1,612		1,022		2,502		1,500		6,636
Taxes on income		(29)		81		113		104		269		82		75		74		129		360
Equity in income (loss) of non-consolidated REITs		—		—		—		—		—		(105)		(282)		7,180		—		6,793

Net income (loss)	$	(1,205)	$	1,633	$	2,399	$	3,648	$	6,475	$	1,425	$	665	$	9,608	$	1,371	$	13,069

Weighted average number of shares outstanding, basic and diluted		107,231		107,231		107,231		107,240		107,233		107,231		107,231		107,231		107,231		107,231

Net income (loss) per share, basic and diluted	$	(0.01)	$	0.02	$	0.02	$	0.03	$	0.06	$	0.01	$	0.01	$	0.09	$	0.01	$	0.12

December 31, 2019| Page 5

$ in thousands, except per share amounts)

Condensed Consolidated Balance Sheets

(in thousands)


	March 31,		June 30,		September 30,		December 31,		March 31,		June 30,		September 30,		December 31,
	2019		2019		2019		2019		2018		2018		2018		2018
Assets:
Real estate assets:
Land	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578
Buildings and improvements		1,872,082		1,886,294		1,900,131		1,924,664		1,821,035		1,833,470		1,848,362		1,857,935
Fixtures and equipment		9,153		10,607		11,099		11,665		5,909		7,565		7,842		8,839
		2,072,813		2,088,479		2,102,808		2,127,907		2,018,522		2,032,613		2,047,782		2,058,352
Less accumulated depreciation		447,980		460,798		476,298		490,697		390,581		405,115		419,746		432,579
Real estate assets, net		1,624,833		1,627,681		1,626,510		1,637,210		1,627,941		1,627,498		1,628,036		1,625,773

Acquired real estate leases, net		53,948		49,475		45,066		40,704		78,729		71,861		65,687		59,595
Investment in non-consolidated REITs		—		—		—		—		69,703		69,067		—		—
Cash, cash equivalents and restricted cash		8,832		13,100		20,159		9,790		14,355		10,448		10,434		11,177
Tenant rent receivables, net		4,489		6,366		4,410		3,851		3,411		4,039		3,206		3,938
Straight-line rent receivable, net		55,836		61,438		64,111		66,881		53,430		53,294		53,056		54,006
Prepaid expenses and other assets		10,469		8,052		8,868		7,246		8,355		7,444		9,259		10,400
Related party mortgage loan receivable		72,795		21,530		21,265		21,000		71,455		71,190		70,925		70,660
Other assets: derivative asset		10,469		4,645		2,844		3,022		18,740		21,196		22,265		14,765
Office computers and furniture, net of accumulated depreciation		166		154		136		183		261		236		216		197
Deferred leasing commissions, net		49,408		50,901		49,781		52,767		39,815		43,254		45,475		47,591
Total assets	$	1,891,245	$	1,843,342	$	1,843,150	$	1,842,654	$	1,986,195	$	1,979,527	$	1,908,559	$	1,898,102

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	40,000	$	—	$	—	$	—	$	98,000	$	98,000	$	17,000	$	25,000
Term loan payable, net of unamortized financing costs		764,642		765,005		765,369		765,733		765,259		765,618		763,914		764,278
Series A & Series B Senior Notes		198,892		198,933		198,974		199,015		198,727		198,768		198,809		198,850
Accounts payable and accrued expenses		52,248		54,282		61,657		66,658		53,327		52,651		62,699		59,183
Accrued compensation		1,073		2,191		3,769		3,400		1,112		1,778		2,844		3,043
Tenant security deposits		6,352		9,118		9,008		9,346		5,588		5,576		5,619		6,319
Lease liability		2,141		2,059		1,976		1,890		—		—		—		—
Other liabilities: derivative liabilities		2,496		8,132		9,934		7,704		—		—		—		—
Acquired unfavorable real estate leases, net		3,414		3,114		2,810		2,512		5,264		4,749		4,261		3,795
Total liabilities		1,071,258		1,042,834		1,053,497		1,056,258		1,127,277		1,127,140		1,055,146		1,060,468

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		-		—		—		—		-		—		—		—
Common stock		11		11		11		11		11		11		11		11
Additional paid-in capital		1,356,457		1,356,457		1,356,457		1,356,794		1,356,457		1,356,457		1,356,457		1,356,457
Accumulated other comprehensive income (loss)		7,973		(3,487)		(7,090)		(4,682)		18,740		21,196		22,265		14,765
Accumulated distributions in excess of accumulated earnings		(544,454)		(552,473)		(559,725)		(565,727)		(516,290)		(525,277)		(525,320)		(533,599)
Total stockholders’ equity		819,987		800,508		789,653		786,396		858,918		852,387		853,413		837,634
Total liabilities and stockholders’ equity	$	1,891,245	$	1,843,342	$	1,843,150	$	1,842,654	$	1,986,195	$	1,979,527	$	1,908,559	$	1,898,102

December 31, 2019| Page 6

Condensed Consolidated Statements of Cash Flows

(in thousands)


	Twelve Months Ended December 31,
	2019		2018		2017
Cash flows from operating activities:
Net income (loss)	$	6,475	$	13,069	$	(15,944)
Adjustments to reconcile net income or loss to net cash provided by operating activities:
Depreciation and amortization expense		93,787		97,171		103,743
Amortization of above and below market leases		(402)		(556)		(1,031)
Shares ussued as compensation		337		—		—
Hedge ineffectiveness		—		—		1,878
Loss on sale of properties and properties held for sale		—		—		18,481
Equity in (income) loss from non-consolidated REITs		—		(6,793)		3,604
Increase (decrease) in allowance for doubtful accounts and write-off of accounts receivable		(71)		(50)		150
Changes in operating assets and liabilities:
Tenant rent receivables		158		(765)		(160)
Straight-line rents		(8,876)		381		(1,767)
Lease acquisition costs		(3,999)		(1,193)		(2,052)
Prepaid expenses and other assets		2,313		(1,940)		(403)
Accounts payable and accrued expenses		3,910		(4,077)		3,870
Accrued compensation		357		(598)		(143)
Tenant security deposits		3,027		936		28
Payment of deferred leasing commissions		(15,101)		(15,383)		(14,309)
Net cash provided by operating activities		81,915		80,202		95,945

Cash flows from investing activities:
Property improvements, fixtures and equipment		(70,746)		(51,057)		(54,306)
Investments in non-consolidated REITs		—		74,931		—
Distributions in excess of earnings from non-consolidated REITs		—		710		1,396
Investment in related party mortgage loan receivable		(2,400)		—		—
Repayment of related party mortgage loan receivable		52,060		1,060		10,060
Proceeds received from liquidating trust		1,470		—		—
Proceeds received on sales of real estate assets		—		—		37,756
Net cash provided by (used in) investing activities		(19,616)		25,644		(5,094)

Cash flows from financing activities:
Distributions to stockholders		(38,603)		(49,326)		(81,496)
Borrowings under bank note payable		45,000		38,000		75,000
Repayments of bank note payable		(70,000)		(91,000)		(277,000)
Borrowing from Series A & Series B Senior Notes		—		—		200,000
Deferred Financing Costs		(83)		(2,162)		(6,902)
Net cash used in financing activities		(63,686)		(104,488)		(90,398)
Net increase (decrease) in cash, cash equivalents and restricted cash		(1,387)		1,358		453
Cash, cash equivalents and restricted cash, beginning of period		11,177		9,819		9,366
Cash, cash equivalents and restricted cash, end of period	$	9,790	$	11,177	$	9,819

December 31, 2019| Page 7

Property Net Operating Income (NOI)* with

Same Store Comparison (in thousands)


	Rentable									Year										Year
	Square Feet	Three Months Ended								Ended		Three Months Ended								Ended		Inc		%
(in thousands)	or RSF	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18		(Dec)		Change
Region
East	944	$	3,185	$	3,301	$	3,001	$	3,174	$	12,661	$	3,802	$	3,990	$	3,868	$	3,044	$	14,704	$	(2,043)	(13.9)	%
MidWest	1,554		5,163		5,174		5,297		5,243		20,877		6,257		4,955		5,104		5,028		21,344		(467)	(2.2)	%
South	4,387		14,272		15,196		17,456		17,589		64,513		14,449		14,246		14,903		13,916		57,514		6,999	12.2	%
West	2,620		10,559		11,240		11,134		11,974		44,907		10,958		11,061		11,324		10,849		44,192		715	1.6	%
Property NOI* from Operating Properties	9,505		33,179		34,911		36,888		37,980		142,958		35,466		34,252		35,199		32,837		137,754		5,204	3.8	%
Dispositions and Redevelopment Properties	405		(205)		(215)		(21)		(47)		(488)		1,250		1,072		1,914		2,298		6,534		(7,022)	(5.1)	%
Property NOI*	9,910	$	32,974	$	34,696	$	36,867	$	37,933	$	142,470	$	36,716	$	35,324	$	37,113	$	35,135	$	144,288	$	(1,818)	(1.3)	%

Same Store		$	33,179	$	34,911	$	36,888	$	37,980	$	142,958	$	35,466	$	34,252	$	35,199	$	32,837	$	137,754	$	5,204	3.8	%

Less Nonrecurring
Items in NOI* (a)			35		706		3,434		4,402		8,577		761		1,141		2,504		1,695		6,101		2,476	(1.7)	%

Comparative
Same Store		$	33,144	$	34,205	$	33,454	$	33,578	$	134,381	$	34,705	$	33,111	$	32,695	$	31,142	$	131,653	$	2,728	2.1	%

(a)

Nonrecurring items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability.

*See the Appendix for Definition of Non-GAAP Measures beginning on page 29.

December 31, 2019| Page 8

FFO* & AFFO* Reconciliation

(in thousands, except per share amounts)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18

Net income (loss)	$	(1,205)	$	1,633	$	2,399	$	3,648	$	6,475	$	1,425	$	665	$	9,608	$	1,371	$	13,069

GAAP (income) loss from non-consolidated REITs		—		—		—		—		—		105		282		(7,180)		—		(6,793)
FFO from non-consolidated REITs		—		—		—		—		—		884		978		649		—		2,511
Depreciation & amortization		23,133		22,028		22,448		22,898		90,507		23,950		23,468		23,081		23,175		93,674
NAREIT FFO*		21,928		23,661		24,847		26,546		96,982		26,364		25,393		26,158		24,546		102,461
Lease Acquisition costs		182		108		61		209		560		—		—		—		—		—
Funds From Operations (FFO)*	$	22,110	$	23,769	$	24,908	$	26,755	$	97,542	$	26,364	$	25,393	$	26,158	$	24,546	$	102,461


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	22,110	$	23,769	$	24,908	$	26,755	$	97,542	$	26,364	$	25,393	$	26,158	$	24,546	$	102,461
Reverse FFO from non-consolidated REITs		—		—		—		—		—		(884)		(978)		(649)		—		(2,511)
Distributions from non-consolidated REITs		—		—		—		—		—		355		355		—		—		710
Amortization of deferred financing costs		717		720		720		721		2,878		711		713		799		717		2,940
Shares issued as compensation		—		—		—		337		337		—		—		—		—		—
Straight-line rent		(1,140)		(3,689)		(2,120)		(1,927)		(8,876)		40		259		522		(440)		381
Tenant improvements		(8,318)		(10,169)		(7,890)		(15,874)		(42,251)		(6,777)		(8,212)		(7,084)		(6,895)		(28,968)
Leasing commissions		(4,239)		(3,666)		(1,286)		(3,164)		(12,355)		(1,021)		(5,314)		(4,394)		(3,746)		(14,475)
Non-investment capex		(2,413)		(4,049)		(3,968)		(6,304)		(16,734)		(1,858)		(2,558)		(2,328)		(3,342)		(10,086)
Adjusted Funds From Operations (AFFO)*	$	6,717	$	2,916	$	10,364	$	544	$	20,541	$	16,930	$	9,658	$	13,024	$	10,840	$	50,452

Per Share Data:
EPS	$	(0.01)	$	0.02	$	0.02	$	0.03	$	0.06	$	0.01	$	0.01	$	0.09	$	0.01	$	0.12
FFO*		0.21		0.22		0.23		0.25		0.91		0.25		0.24		0.24		0.23		0.96
AFFO*		0.06		0.03		0.10		0.01		0.19		0.16		0.09		0.12		0.10		0.47

Weighted Average Shares (basic and diluted)		107,231		107,231		107,231		107,240		107,233		107,231		107,231		107,231		107,231		107,231

*See the Appendix for Definitions of these Non-GAAP Measures beginning on page 29.

December 31, 2019| Page 9

EBITDA* & Adjusted EBITDA* Reconciliation

(in thousands, except ratio amounts)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18

Net income (loss)	$	(1,205)	$	1,633	$	2,399	$	3,648	$	6,475	$	1,425	$	665	$	9,608	$	1,371	$	13,069
Interest expense		9,368		9,371		9,036		8,982		36,757		9,486		9,753		9,935		9,200		38,374
Depreciation and amortization		23,133		22,028		22,448		22,898		90,507		23,950		23,468		23,081		23,175		93,674
Income taxes		(29)		81		113		104		269		82		75		74		129		360
EBITDA*	$	31,267		33,113		33,996		35,632		134,008	$	34,943	$	33,961	$	42,698	$	33,875	$	145,477
(Gain) loss on sale of properties and provisions for loss on properties held for sale or equity investments		—		—		—		—		—		—		309		(7,062)		—		(6,753)
Adjusted EBITDA*	$	31,267	$	33,113	$	33,996	$	35,632	$	134,008	$	34,943	$	34,270	$	35,636	$	33,875	$	138,724

Interest expense	$	9,368	$	9,371	$	9,036	$	8,982	$	36,757	$	9,486	$	9,753	$	9,935	$	9,200	$	38,374
Scheduled principal payments		—		—		—		—		—		—		—		—		—		—
Interest and scheduled principal payments	$	9,368	$	9,371	$	9,036	$	8,982	$	36,757	$	9,486	$	9,753	$	9,935	$	9,200	$	38,374

Interest coverage ratio		3.34		3.53		3.76		3.97		3.65		3.68		3.51		3.59		3.68		3.62

Debt service coverage ratio		3.34		3.53		3.76		3.97		3.65		3.68		3.51		3.59		3.68		3.62

Debt excluding unamortized financing costs	$	1,010,000	$	970,000	$	970,000	$	970,000			$	1,068,000	$	1,068,000	$	987,000	$	995,000
Cash, cash equivalents and restricted cash		8,832		13,100		20,159		9,790				14,355		10,448		10,434		11,177
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	1,001,168	$	956,900	$	949,841	$	960,210			$	1,053,645	$	1,057,552	$	976,566	$	983,823

Adjusted EBITDA*	$	31,267	$	33,113	$	33,996	$	35,632			$	34,943	$	34,270	$	35,636	$	33,875
Annualized	$	125,068	$	132,452	$	135,984	$	142,528			$	139,772	$	137,080	$	142,544	$	135,500

Net Debt-to-Adjusted EBITDA*		8.0		7.2		7.0		6.7				7.5		7.7		6.9		7.3

*See the Appendix for Definitions of these Non-GAAP Measures beginning on page 29. Amounts in the EBITDA and Adjusted EBITDA reconciliation do not reflect our proportionate share of interest expense, depreciation, amortization, income taxes, gains or losses on sales and debt from our investments in non-consolidated REITs, which are accounted for under the equity method.

December 31, 2019| Page 10

Reconciliation of Net Income (Loss) to Property NOI*

(in thousands)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Net income (loss)	$	(1,205)	$	1,633	$	2,399	$	3,648	$	6,475	$	1,425	$	665	$	9,608	$	1,371	$	13,069
Add (deduct):
Management fee income		(677)		(645)		(634)		(570)		(2,526)		(746)		(746)		(712)		(640)		(2,844)
Depreciation and amortization		23,245		22,109		22,559		22,996		90,909		24,035		23,591		23,277		23,327		94,230
Amortization of above/below market leases		(112)		(81)		(112)		(97)		(402)		(85)		(123)		(196)		(152)		(556)
General and administrative		3,509		3,703		3,886		3,375		14,473		3,432		3,082		3,394		3,162		13,070
Interest expense		9,368		9,371		9,036		8,982		36,757		9,486		9,753		9,935		9,200		38,374
Interest income		(1,294)		(1,259)		(395)		(390)		(3,338)		(1,120)		(1,141)		(1,157)		(1,192)		(4,610)
Equity in (income) loss of non-consolidated REITs		—		—		—		—		—		105		282		(7,180)		—		(6,793)
Non-property specific items, net		140		(135)		128		(11)		122		184		(39)		144		59		348
Property NOI*	$	32,974	$	34,696	$	36,867	$	37,933	$	142,470	$	36,716	$	35,324	$	37,113	$	35,135	$	144,288

*See the Appendix for Definition of Non-GAAP Measures beginning on page 29.

December 31, 2019| Page 11

Debt Summary

(in thousands)


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		31-Dec-19		Components			31-Dec-19	Fee

BAML Revolver	12-Jan-22	$	600,000	$	—	L	+	1.20%	2.96%	0.25%
JPM Term Loan (b)	30-Nov-21		150,000		150,000	L	+	1.25%	3.48%
BAML Term Loan	12-Jan-23		400,000		400,000	1.12%	+	1.35%	2.47%
BMO Term Loan Tranche A	30-Nov-21		55,000		55,000	2.32%	+	1.25%	3.57%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.32%	+	1.25%	3.57%
Series A Senior Notes	20-Dec-24		116,000		116,000				3.99%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.26%

		$	1,570,000	$	970,000				3.21%

On August 2, 2018, we entered into an Amended and Restated Credit Agreement with respect to the JPM Term Loan, which extended the maturity of the JPM Term Loan to November 30, 2021 and reduced the number of basis points over the LIBOR-based rate used to determine the interest rate. On March 7, 2019, we entered into interest rate swap transactions for a $100 million portion of the $150 million JPM Term Loan that fixed the LIBOR-based rate at 2.44% from March 29, 2019 and until the loan matures on November 30, 2021. Accordingly, the interest rate on the $100 million portion was 3.69% and the interest rate on the remaining $50 million portion was 3.06% at December 31, 2019. The weighted average rate at December 31, 2019 was 3.48% on the JPM Term Loan.

On September 27, 2018, we entered into a Second Amended and Restated Credit Agreement with respect to the BMO Term Loan, which consists of a $55 million tranche A term loan and a $165 million tranche B term loan. The tranche A term loan matures on November 30, 2021 and the tranche B term loan matures on January 31, 2024. The number of basis points over LIBOR used to determine the interest rate was reduced.

The BAML Revolver is subject to a 25 basis point facility fee based on our credit rating and, when applied to our availability of $600 million at December 31, 2019, would be $1.5 million annually.

On October 24, 2017, we entered into a note purchase agreement relating to a private placement of $200 million in aggregate principal amount of unsecured senior notes, consisting of $116 million in aggregate principal amount of 3.99% Series A Senior Notes with a 7-year maturity and $84 million in aggregate principal amount of 4.26% Series B Senior Notes with a 10-year maturity. On December 20, 2017, we drew the proceeds from the private placement and reduced the outstanding balance on our revolving line of credit.

We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute. We estimate the annualized rate for this amortization to interest expense will be approximately $2.9 million.

Additional information on these transactions can be found in Current Reports on Form 8-K that the Company filed with the U.S. Securities and Exchange Commission on October 24, 2017, August 2, 2018 and September 27, 2018.

(a)

Interest rate excludes amortization of deferred financing costs and facility fees, which is discussed in the notes above.

(b)

The interest rate is calculated as $100 million at the fixed rate of 3.69% and the remaining $50 million at the floating rate plus 1.25%, or 3.06% as of December 31, 2019.

December 31, 2019| Page 12

Capital Analysis

(in thousands, except per share amounts)


	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18
Market Data:
Shares Outstanding		107,231		107,231		107,231		107,269		107,231		107,231		107,231		107,231
Closing market price per share	$	7.19	$	7.38	$	8.46	$	8.56	$	8.41	$	8.56	$	7.99	$	6.23
Market capitalization	$	770,992	$	791,366	$	907,176	$	918,224	$	901,814	$	917,899	$	856,777	$	668,050
Total debt outstanding excluding unamortized financing costs		1,010,000		970,000		970,000		970,000		1,068,000		1,068,000		987,000		995,000
Total Market Capitalization	$	1,780,992	$	1,761,366	$	1,877,176	$	1,888,224	$	1,969,814	$	1,985,899	$	1,843,777	$	1,663,050

Dividend Data:
Total dividends declared for the quarter	$	9,651	$	9,651	$	9,651	$	9,650	$	9,651	$	9,651	$	9,651	$	9,650
Common dividend declared per share	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Declared dividend as a % of Net income (loss) per share		-801%		591%		402%		265%		677%		1449%		100%		704%
Declared dividend as a % of AFFO* per share		144%		331%		93%		1774%		57%		100%		74%		89%

Liquidity:
Cash, cash equivalents and restricted cash	$	8,832	$	13,100	$	20,159	$	9,790	$	14,355	$	10,448	$	10,434	$	11,177
Revolver:
Gross potential available under the BAML Revolver		600,000		600,000		600,000		600,000		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(40,000)		—		—		—		(98,000)		(98,000)		(17,000)		(25,000)
Total Liquidity	$	568,832	$	613,100	$	620,159	$	609,790	$	516,355	$	512,448	$	593,434	$	586,177

*See page 9 for a reconciliation of Net Income (Loss) to AFFO and the Appendix for Definitions of Non-GAAP Measures beginning on page 29.

December 31, 2019| Page 13


	Owned Portfolio Overview


	As of the Quarter Ended
	31-Dec-19	30-Sep-19	30-Jun-19	31-Mar-19	31-Dec-18
Operating Properties:
Number of properties	32	32	32	32	32
Square feet	9,504,634	9,503,964	9,498,858	9,495,118	9,486,650
Leased percentage	87.6%	89.7%	88.1%	88.5%	89.0%

Redevelopment Properties (a):
Number of properties	3	3	3	3	3
Square feet	405,215	405,215	404,652	404,652	404,652
Leased percentage	50.3%	50.3%	11.9%	11.9%	27.2%

Managed Properties - Single Asset REITs (SARs):
Number of properties	2	2	2	3	3
Square feet	348,545	348,545	348,545	674,342	674,342

Total Operating, Redevelopment and Managed Properties:
Number of properties	37	37	37	38	38
Square feet	10,258,394	10,257,724	10,252,055	10,574,112	10,565,644

(a)

We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

December 31, 2019| Page 14


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

Operating Properties:

East Region								Midwest Region

Washington, D.C.								Chicago
Meadow Point	Chantilly	VA	138,537	100.0%	100.0%	$	25.87	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	32.89
Stonecroft	Chantilly	VA	111,469	100.0%	100.0%	$	28.22	909 Davis Street	Evanston	IL	195,098	93.3%	90.8%	$	36.77
Loudoun Tech Center	Dulles	VA	136,658	98.9%	97.9%	$	18.77
								Indianapolis
Richmond								River Crossing	Indianapolis	IN	205,729	98.5%	95.2%	$	23.92
Innsbrook	Glen Allen	VA	298,183	57.2%	57.3%	$	19.20
								St. Louis
Raleigh-Durham								Timberlake	Chesterfield	MO	234,496	95.7%	97.1%	$	28.13
Emperor Boulevard	Durham	NC	259,531	100.0%	100.0%	$	33.81	Timberlake East	Chesterfield	MO	117,036	100.0%	100.0%	$	27.18

								Minneapolis
								121 South 8th Street	Minneapolis	MN	297,209	90.1%	83.1%	$	23.52
								Plaza Seven	Minneapolis	MN	326,757	88.6%	87.6%	$	33.72

East Region Total			944,378	86.3%	86.2%	$	26.16	Midwest Region Total			1,553,420	94.0%	91.9%	$	29.46

(a)

Weighted Occupied Percentage for the year ended December 31, 2019.

(b)

Weighted Average GAAP Rent per Occupied Square Foot.

December 31, 2019| Page 15


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

South Region								West Region

Dallas-Fort Worth								Denver
Legacy Tennyson Center	Plano	TX	207,049	100.0%	90.4%	$	27.88	380 Interlocken	Broomfield	CO	240,359	87.2%	89.1%	$	32.56
One Legacy Circle	Plano	TX	214,110	69.4%	91.9%	$	34.79	1999 Broadway	Denver	CO	677,378	90.0%	75.7%	$	32.86
Addison Circle	Addison	TX	289,302	80.5%	74.9%	$	31.13	Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$	25.44
Collins Crossing	Richardson	TX	300,887	88.4%	96.5%	$	26.14	390 Interlocken	Broomfield	CO	241,512	98.2%	98.2%	$	32.84
Liberty Plaza	Addison	TX	216,834	72.4%	71.6%	$	23.03	1001 17th Street	Denver	CO	655,420	98.5%	96.9%	$	36.17
								600 17th Street	Denver	CO	609,112	89.5%	85.7%	$	32.82
Houston								West Region Total			2,620,017	93.2%	88.4%	$	33.10
Park Ten	Houston	TX	157,460	79.0%	90.7%	$	28.52
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	30.56	Total Operating Properties			9,504,634	87.6%	86.0%	$	29.92
Park Ten Phase II	Houston	TX	156,746	84.4%	59.5%	$	27.05
Westchase I & II	Houston	TX	629,025	62.3%	76.1%	$	31.30
								Redevelopment Properties (c)
Atlanta								Forest Park	Charlotte	NC	62,212	0.0%	0.0%	$	—
One Overton Park	Atlanta	GA	387,267	85.3%	79.5%	$	22.80	Blue Lagoon Drive	Miami	FL	213,182	73.1%	0.0%	$	—
One Ravinia	Atlanta	GA	386,602	86.8%	87.0%	$	24.96	801 Marquette Ave	Minneapolis	MN	129,821	37.0%	28.2%	$	20.49
Two Ravinia	Atlanta	GA	411,047	71.0%	70.2%	$	27.05	Total Redevelopment Properties			405,215	50.3%	9.0%	$	20.49
Pershing Plaza	Atlanta	GA	160,145	98.9%	97.4%	$	36.61
999 Peachtree	Atlanta	GA	621,946	94.2%	82.7%	$	31.89	Total Owned Portfolio			9,909,849	86.1%	82.8%	$	29.88
South Region Total			4,386,819	82.3%	82.3%	$	28.92

(a)

Weighted Occupied Percentage for the year ended December 31, 2019.

(b)

Weighted Average GAAP Rent per Occupied Square Foot.

(c)

We define Redevelopment Properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

December 31, 2019| Page 16


	Managed Portfolio Overview

MSA / Property Name

City

State

Square Feet

MSA / Property Name

City

State

Square Feet

Southeast Region

Midwest Region

Atlanta

Indianapolis

Satellite Place

Duluth

134,785

Monument Circle

Indianapolis

213,760

Southeast Region Total

134,785

Midwest Region Total

213,760

Total Managed

348,545

Total Operating & Managed

10,258,394

December 31, 2019| Page 17

Tenants by Industry

(By Square Feet)

December 31, 2019| Page 18


	20 Largest Tenants with Annualized Rent and Remaining Term


			Remaining	Aggregate				% of Aggregate
	Tenant	Number of	Lease Term	Leased	% of Total	Annualized		Leased
	Name	Leases	in Months	Square Feet	Square Feet	Rent (a)		Annualized Rent

1	IQVIA Holdings Inc.	1	77	259,531	2.6%	$	8,728,422	3.7%
2	US Government (b)	4	4, 5, 9, 13, 125	259,141	2.6%		7,358,455	3.1%
3	CITGO Petroleum Corporation	1	26	248,399	2.5%		8,219,523	3.4%
4	Newfield Exploration Company	1	26	234,495	2.4%		10,077,683	4.2%
5	Centene Management Company, LLC	3	42, 42, 42	216,879	2.2%		6,065,624	2.5%
6	Eversheds Sutherland (US) LLP	1	76	179,868	1.8%		5,517,035	2.3%
7	EOG Resources, Inc.	1	84	169,167	1.7%		5,831,187	2.4%
8	The Vail Corporation	1	123	164,636	1.7%		4,169,134	1.7%
9	Lennar Homes, LLC (c)	1	192	155,808	1.6%		—	0.0%
10	T-Mobile South, LLC dba T-Mobile	1	68	151,792	1.5%		3,958,735	1.7%
11	Citicorp Credit Services, Inc.	1	92	146,260	1.5%		4,839,743	2.0%
12	Jones Day (d)	1	17	140,342	1.4%		4,952,119	2.1%
13	Argo Data Resource Corporation (e)	1	44, 128	140,246	1.4%		4,026,463	1.7%
14	Worldventures Holdings, LLC (f)	2	121, 127	129,998	1.3%		2,193,938	0.9%
15	Kaiser Foundation Health Plan	1	53	120,979	1.2%		3,694,191	1.5%
16	Giesecke & Devrient America	1	60	112,110	1.1%		2,097,578	0.9%
17	Northrop Grumman Systems Corp. (g)	1	—	111,469	1.1%		3,404,263	1.4%
18	Randstad General Partner (US) (h)	1	18, 53	109,638	1.1%		2,768,363	1.2%
19	ADS Alliance Data Systems, Inc. (i)	1	78	107,698	1.1%		4,096,884	1.7%
20	VMWare, Inc.	1	77	95,754	1.0%		3,239,358	1.4%

			Total	3,254,210	32.8%	$	95,238,698	39.8%

Footnotes on next page

December 31, 2019| Page 19


	20 Largest Tenants with Annualized Rent and Remaining Term

Footnotes:

(a) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at December 31, 2019 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)Includes 97,228 square feet, which expire in 2020, and 36,913 square feet, which expire in 2021. The remaining 125,000 square feet expire in 2030.

(c)Lease and rent commence on November 1, 2020.

(d) In January 2020, the tenant exercised an option to extend until May 31, 2021.

(e) Includes 26,046 square feet, which expire in 2020, and 28,550 square feet, which expire in 2023. The remaining 85,650 square feet expire in 2030.

(f) Rent commencing on 105,000 square feet on February 1, 2020.

(g) The lease matured on December 31, 2019.

(h) Includes 98,695 square feet, which expire in 2021, and 10,943 square feet, which expire in 2024.

(i) Includes 40,024 square feet expiring in 2020 of which 12,487 square feet was re-leased by a new tenant commencing in March 2020 and 67,274 square feet expring in 2026.

December 31, 2019| Page 20

Leasing Activity

(Owned Portfolio)


	Year		Year		Year
	Ended		Ended		Ended
Leasing Activity (a)		31-Dec-19		31-Dec-18		31-Dec-17
(in Square Feet - SF)
New leasing		534,000		397,000		460,000
Renewals and expansions		883,000		1,284,000		1,011,000
		1,417,000		1,681,000		1,471,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	31.78	$	31.02	$	30.43
Weighted average lease term		8.3 Years		7.2 Years		6.8 Years

Increase or decrease over average GAAP rents in prior year (b)		10.9%		7.3%		12.3%

Average free rent		3 Months		4 Months		4 Months
Tenant Improvements	$	34.44	$	29.13	$	22.22
Leasing Costs	$	13.51	$	8.99	$	9.92

(a) Leasing activity includes leasing at redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b) The increase or decrease percentage is calculated by comparing average GAAP rents at properties that had leasing activity in the current year to average GAAP rents at the same properties in the prior year.

December 31, 2019| Page 21

Lease Expirations by Square Feet (a)

(Owned Portfolio)

(a)

Lease expirations include leases in redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

December 31, 2019| Page 22

Lease Expirations with Annualized Rent per Square Foot

(Owned Portfolio)


			Rentable				Annualized		Percentage
	Number of		Square				Rent		of Total
Year of	Leases		Footage		Annualized		Per Square		Annualized
Lease	Expiring		Subject to		Rent Under		Foot Under		Rent Under
Expiration	Within the		Expiring		Expiring		Expiring		Expiring	Cumulative
December 31,	Year (a)		Leases		Leases (b)		Leases		Leases	Total

2020	67	(c)	761,756		$	24,132,385	$	31.68	10.1%	10.1%
2021	64		799,020			24,258,531		30.36	10.1%	20.2%
2022	79		1,182,547			39,110,866		33.07	16.3%	36.5%
2023	61		650,569			19,426,005		29.86	8.1%	44.6%
2024	64		875,989			25,077,473		28.63	10.5%	55.1%
2025	51		831,131			19,859,472		23.89	8.3%	63.4%
2026	21		877,629			28,510,343		32.49	11.9%	75.3%
2027	17		625,830			17,030,830		27.21	7.1%	82.4%
2028	11		338,107			9,092,017		26.89	3.8%	86.2%
2029	9		339,437			10,477,445		30.87	4.4%	90.6%
2030 and thereafter	70		1,251,672	(d)		22,381,152		17.88	9.4%	100.0%
Leased total	514		8,533,687		$	239,356,519	$	28.05	100.0%
Vacancies as of 12/31/19			1,174,774
Redevelopment properties (e)			201,388
Total Portfolio Square Footage			9,909,849

(a)

The number of leases approximates the number of tenants. Tenants with lease maturities in different years are included in annual totals for each lease. Tenants may have multiple leases in the same year. Includes annualized rent from redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b)

Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at December 31, 2019 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(c)

Includes 4 leases that are month-to-month.

(d)

Includes 106,709 square feet that are non-revenue producing building amenities.

(e)

Redevelopment properties include properties being developed, redeveloped, or where redevelopment is complete, but are in lease-up and that are not stabilized.

December 31, 2019| Page 23


	Redevelopment Activity

(in 000's except square feet)

Estimated

Incurred

Percent

Estimated

Leased

Occupied

Rentable

Anticipated

Through

Leased

Completion

Stabilization

Property Name

City

State

Square Feet

Investment (1)

31-Dec-19

Date

Redevelopment Activity

Redevelopment in Process

Forest Park

Charlotte

62,212

4,418

754

0.0%

30-Jun-20

30-Sep-20

31-Dec-20

Blue Lagoon Drive (2)

Miami

213,182

38,896

8,748

73.1%

31-Dec-20

30-Sep-20

31-Mar-21

Total Office in Process

275,394

43,314

9,502

Redevelopment Complete But Not Stabilized

801 Marquette Ave (3)

Minneapolis

129,821

28,810

22,956

37.0%

30-Jun-17

30-Sep-20

31-Dec-20

Total

405,215

72,124

32,458

(1)

Anticipated Investment includes capitalized redevelopment costs, capitalized interest and lease-up costs.

(2)

Leased square feet was 155,808 as of December 31, 2019.

(3)

Leased square feet was 48,019 as of December 31, 2019.

December 31, 2019| Page 24


	Capital Expenditures


(in thousands)									Year
	For the Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Sep-19		31-Dec-19		31-Dec-19

Tenant improvements	$	8,318	$	10,169	$	7,890	$	15,874	$	42,251
Deferred leasing costs		4,239		3,666		1,286		3,164		12,355
Non-investment capex		2,413		4,049		3,968		6,304		16,734
Total Capital Expenditures	$	14,970	$	17,884	$	13,144	$	25,342	$	71,340


	For the Three Months Ended								Year Ended
	31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18

Tenant improvements	$	6,777	$	8,212	$	7,084	$	6,895	$	28,968
Deferred leasing costs		1,021		5,314		4,394		3,746		14,475
Non-investment capex		1,858		2,558		2,328		3,342		10,086
Total Capital Expenditures	$	9,656	$	16,084	$	13,806	$	13,983	$	53,529

First generation leasing and investment capital was $18.1 million for year ended December 31, 2019 and $15.1 million for the year ended December 31, 2018.

December 31, 2019| Page 25

Transaction Activity

(in thousands except for Square Feet)

Recent Acquisitions:

City

State

Square Feet

Date Acquired

Purchase Price

2016

Plaza Seven

Minneapolis

325,796

6/6/16

82,000

Pershing Plaza

Atlanta

160,145

8/10/16

45,450

600 17th Street

Denver

613,527

12/1/16

154,260

2015

Two Ravinia

Atlanta

442,130

4/8/15

78,000


Recent Dispositions:					Gross Sale		Gain (loss)
	City	State	Square Feet	Date Sold	Proceeds		on Sale
2017
Hillview	Milpitas	CA	36,288	1/6/17	$	6,342	$	2,289
East Baltimore	Baltimore	MD	325,445	10/20/17		32,547		(20,770)

2016
Lakeside I	Maryland Heights	MO	127,778	4/5/16	$	20,189	$	4,154
Federal Way	Federal Way	WA	117,010	12/16/16		7,500		(7,092)

2015
Willow Bend	Plano	TX	117,050	2/23/15	$	20,750	$	1,462
Eden Bluff	Eden Prairie	MN	153,028	3/31/15		28,000		9,000
Park Seneca	Charlotte	NC	109,699	5/13/15		8,150		949
Montague	San Jose	CA	145,561	12/9/15		30,250		12,251

December 31, 2019| Page 26

Loan Portfolio of Secured Real Estate

(in thousands)

(dollars in thousands, except footnotes)

Maximum

Amount

Interest

Maturity

Amount

Outstanding

Rate at


(in thousands except per share data)
	As of		Assets:			Other information:
	31-Dec-19		Loans outstanding on secured RE	$	21,000	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	In 2020 (in 000's)		378
Shares outstanding		107,269.2	Straight-line rent receivable		66,881
Closing price	$	8.56	Asset held for sale		—	Straight-line rental revenue current quarter	$	1,927
Market capitalization	$	918,224	Cash, cash equivalents and restricted cash		9,790
Debt		970,000	Tenant rent receivables		3,851	Management fee income current quarter	$	27
Total Market Capitalization	$	1,888,224	Prepaid expenses		2,822	Interest income from secured loans		390
			Office computers and furniture		183	Management fees and interest income from loans	$	417
			Other assets:
	3 Months		Deferred financing costs, net		7,872
	Ended		Other assets: Derivative Market Value		3,022
NOI Components	31-Dec-19		Other assets - Right-to-Use Asset		1,804
				$	117,225
Same Store NOI (1)	$	37,980
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		37,980	Debt (excluding contra for unamortized financing costs)	$	970,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		70,058	(1) See pages 11 & 29 for definitions and reconciliations.
Stabilized portfolio	$	37,980	Tenant security deposits		9,346
			Other liabilities: lease liability		1,890	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		7,704
Financial Statement Reconciliation:				$	1,058,998	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	68,575
Rental operating expenses		(19,428)				(4) HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI.
Real estate taxes and insurance		(10,463)
NOI from dispositions & redevelopment properties		47				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(104)
Management & other fees (5)		(647)
Property NOI (1)	$	37,980

FRANKLIN STREET PROPERTIES CORP /MA/ - FORM 8-K - EX-99.2 - February 11, 2020

Attached files

FRANKLIN STREET PROPERTIES CORP /MA/ Reports