Franklin Street Properties Reports FFO $0.22 Vs. $0.21 (FSP)

Franklin Street Properties FSP announced today Funds From Operations (FFO) of $17.5 million and $66.9 million or $0.22 and $0.84 per share for the fourth quarter and year ended December 31, 2010, respectively. $0.22 is versus the $0.21 Street estimate. The Company also announced Net Income of $5.8 million and $22.1 million and Earnings Per Share (EPS) of $0.07 and $0.28 for the fourth quarter and year ended December 31, 2010, respectively, and provided an update on other activities. The Company evaluates its performance based on Net Income, EPS, FFO, Gains on Sales (GOS) and FFO+GOS, and believes each is an important measure. A reconciliation of Net Income to FFO and FFO+GOS, which are non-GAAP financial measures, is provided on page 4 of this press release. Comparing results for the fourth quarter of 2010 to the same period in 2009, Net Income and EPS decreased by $2.4 million or $0.03 per share; and FFO decreased by $1.6 million or $0.02 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $1.8 million and was partially offset by an increase in investment banking FFO of $0.2 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio and increased administrative expenses during the fourth quarter of 2010 compared to the fourth quarter of 2009. There was no GOS during the fourth quarter of 2010 compared to $424,000 in the fourth quarter of 2009, which resulted from a gain recognized on a small piece of land as a result of a land taking. Comparing results for the year ended December 31, 2010 to 2009, Net Income and EPS decreased by $5.8 million or $0.10 per share; and FFO decreased by $4.4 million or $0.14 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $5.8 million and was partially offset by an increase in investment banking FFO of $1.4 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio and increased administrative expenses during the year ended December 31, 2010 compared to the year ended December 31, 2009. The increase in investment banking FFO resulted primarily from increased revenues from syndication and transaction fees and a decrease in commission and administrative expenses, which were partially offset by an increase to income taxes, for the year ended December 31, 2010 compared to the year ended December 31, 2009. There was no GOS during the year ended December 31, 2010 compared to the $424,000 in the year ended December 31, 2009, which resulted from a gain recognized on a small piece of land as a result of a land taking. George J. Carter, President and CEO, commented as follows: "For the fourth quarter of 2010, FSP's profits as represented by FFO + GOS totaled approximately $17.5 million or $0.22 per share, an increase of $0.02 per share compared to the third quarter of 2010. Dividend distributions declared for the fourth quarter of 2010, which are payable on February 18, 2011, will be approximately $15.4 million or $0.19 per share."