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Franklin Street Properties (FSP)
:FSP
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Franklin Street Properties
(NYSE MKT:FSP)
51Neutral
Franklin Street Properties (FSP) vs. S&P 500 (SPY)
Market Cap
$159.49M
Dividend Yield2.6%
Average Volume (3M)385.45K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-19.86%
EPS Growth-9.50%
CountryUS
Employees28
SectorReal Estate
Sector Strength76
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.51
Shares Outstanding103,566,710
10 Day Avg. Volume432,078
30 Day Avg. Volume385,455
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.62
Price to Cash Flow (P/CF)21.60
P/FCF Ratio21.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Franklin Street Properties Business Overview & Revenue Model
Company DescriptionFranklin Street Properties (FSP) is a real estate investment trust (REIT) focused on the ownership, operation, and management of office properties. The company primarily invests in urban infill and central business district office properties in the United States, targeting areas with strong economic fundamentals and growth potential. FSP aims to provide investors with a stable income stream through its portfolio of high-quality office buildings.
How the Company Makes MoneyFranklin Street Properties makes money primarily through the acquisition, ownership, and management of office properties. The company's revenue model is centered on generating rental income from its portfolio of office buildings. By leasing office space to a variety of tenants, FSP secures consistent rental revenues. Additionally, FSP may engage in property sales, where strategic dispositions of certain assets can provide capital appreciation and additional income. The company's earnings are also influenced by its ability to maintain high occupancy rates and manage operational efficiencies within its properties. FSP may leverage strategic partnerships or joint ventures to enhance its property portfolio and optimize returns on investment.
Franklin Street Properties Financial Statement Overview
Summary
Franklin Street Properties is experiencing significant challenges with profitability and revenue growth, as seen in the income statement. The balance sheet shows a focus on reducing debt, while cash flow stability offers some hope. Overall, the company faces hurdles in achieving financial stability and growth.Income Statement
The income statement shows a declining trend in revenue with a significant decrease from previous years. Gross profit margins have deteriorated, and net profit margins are negative, indicating struggles with profitability. The EBIT and EBITDA margins are also negative for the most recent period, reflecting operational inefficiencies and challenges in maintaining profitability.48
Neutral
Balance Sheet
The balance sheet reveals a relatively stable stockholders' equity, although total debt levels have decreased, suggesting a focus on deleveraging. However, the equity ratio indicates a moderate reliance on equity financing, and the return on equity is negative due to net losses, highlighting profitability issues.55
Neutral
Cash Flow
Cash flow analysis shows a positive trend in operating cash flow, although free cash flow remains volatile and has improved slightly in the latest period. The company has managed to maintain operating cash flow even in times of net income losses, indicating some level of operational resilience.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 120.11M | 145.71M | 165.62M | 209.36M | 245.85M | Gross Profit |
| 97.40M | 67.78M | 78.17M | 107.42M | 130.52M | EBIT |
| 75.07M | -984.00K | 482.00K | 12.97M | 26.96M | EBITDA |
| 21.64M | 57.93M | 66.06M | 93.98M | 118.23M | Net Income Common Stockholders |
| -52.72M | -48.11M | 1.09M | 92.72M | 32.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.12M | 125.53M | 6.63M | 40.75M | 2.65M | Total Assets |
| 946.93M | 1.17B | 1.24B | 1.36B | 1.79B | Total Debt |
| 247.63M | 404.71M | 413.01M | 474.79M | 921.54M | Net Debt |
| 206.51M | 279.18M | 406.38M | 434.04M | 918.89M | Total Liabilities |
| 291.07M | 456.52M | 472.93M | 580.97M | 1.03B | Stockholders Equity |
| 655.86M | 712.80M | 768.74M | 783.20M | 768.09M |
| Cash Flow | Free Cash Flow | |||
| 8.99M | -13.77M | -39.68M | -28.47M | -9.47M | Operating Cash Flow |
| 8.99M | 17.87M | 15.23M | 36.36M | 68.45M | Investing Cash Flow |
| 70.28M | 113.64M | 74.04M | 505.47M | 11.04M | Financing Cash Flow |
| -164.47M | -10.25M | -123.39M | -505.24M | -85.13M |
Franklin Street Properties Technical Analysis
Negative
1.59
Price Trends
1.77
Negative
1.80
Negative
1.74
Negative
Market Momentum
-0.07
Negative
44.41
Neutral
69.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSP, the sentiment is Negative. The current price of 1.59 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.77, and below the 200-day MA of 1.74, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 69.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSP.
Franklin Street Properties Risk Analysis
Franklin Street Properties disclosed 32 risk factors in its most recent earnings report. Franklin Street Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Street Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $2.72B | 11.51 | 0.06% | 8679.44% | 5.30% | -16.91% | |
55 Neutral | $675.13M | ― | -16.61% | 15.42% | -1.77% | 1.20% | |
55 Neutral | $201.39M | ― | -2.35% | 8.02% | -4.45% | -147.11% | |
52 Neutral | $829.80M | ― | -4.78% | 7.50% | -5.58% | -63.09% | |
51 Neutral | $159.49M | ― | -7.70% | 2.60% | -19.86% | -9.50% | |
50 Neutral | $96.05M | ― | -12.49% | 18.71% | -15.46% | -81.31% | |
46 Neutral | $23.16M | ― | -11.33% | 12.06% | -5.92% | -54.08% |
* Real Estate Sector Average
Performance Comparison
FSP
Franklin Street Properties
1.59
-0.36
-18.46%
PDM
Piedmont Office
6.77
0.45
7.12%
BDN
Brandywine Realty
3.97
0.08
2.06%
OPI
Office Properties Income
0.35
-1.49
-80.98%
CIO
City Office REIT
4.90
0.68
16.11%
ONL
Orion Office REIT
1.75
-1.21
-40.88%
Franklin Street Properties Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -12.64% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements in terms of increased leasing activity, successful property sales, and significant debt reduction, the company faced challenges with decreased occupancy, net losses, and difficult market conditions. Emerging signs of market stabilization and improved leasing conditions provide a cautiously optimistic outlook.Highlights
Increased Leasing Activity
FSP leased approximately 252,000 square feet of office space in Q4 2024, with a total of 616,000 square feet leased throughout the year, indicating strong leasing momentum.
Successful Property Dispositions
Completed the sale of three properties for total gross proceeds of approximately $100 million in 2024, including the $34 million sale of Pershing Park Plaza in Atlanta.
Debt Reduction
Since late 2020, FSP has reduced corporate indebtedness by approximately 75% through property sales, enhancing financial flexibility.
Positive Market Trends
Noted emerging signs of stabilization in the office market, with improved leasing conditions and a general increase in office property activity.
Lowlights
Decreased Occupancy
Leased occupancy decreased to 70.3% at the end of Q4 2024 from 74.0% at the end of 2023, largely due to property dispositions and lease expirations.
GAAP Net Loss
Reported a GAAP net loss of $8.5 million for Q4 2024 and a net loss of $52.7 million for the full year.
Challenging Market Conditions
The office sales environment was dominated by distressed pricing with liquidity constraints, high vacancies, and soft tenant demand.
Company Guidance
During the Franklin Street Properties Corporation's fourth quarter and full year 2024 earnings call, the company reported funds from operations (FFO) of $0.03 per share for the fourth quarter and $0.13 per share for the full year. The GAAP net loss was approximately $8.5 million, or $0.08 per share for the fourth quarter, and $52.7 million, or $0.51 per share for the full year. The company leased approximately 252,000 square feet of office space in the fourth quarter and had a total of 616,000 square feet in leasing for the year. The directly owned portfolio was 70.3% leased at the end of the fourth quarter, down from 74.0% at the end of 2023. FSP completed $100 million in gross property sales during 2024, including the sale of Pershing Park Plaza for $34 million. Total indebtedness was approximately $250.3 million, which is about $52 per square foot of their remaining property portfolio. The call highlighted an increase in office activity and a potential for positive net absorption in 2025, despite the challenging market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.