Franklin Street Properties Corp. Announces $50 Million Share Repurchase Program

Rhea-AI Summary

Franklin Street Properties Corp. (FSP) has authorized a share buyback program of up to $50 million. Purchases will occur in the open market or through other permissible means, determined by market conditions and legal requirements. CEO George J. Carter stated that part of the proceeds from previously announced asset sales, expected to yield between $350 million and $450 million, might be allocated for this buyback. The goal is to enhance shareholder value by addressing the discrepancy between the stock price and the intrinsic value of assets.

Positive

• Authorization of a $50 million share buyback program to enhance shareholder value.
• Potential use of asset sale proceeds (anticipated $350-$450 million) for debt reduction and share repurchases.
• Confidence in the undervaluation of stock relative to underlying asset value.

Negative

• None.

Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE American: FSP), a real estate investment trust (REIT), announced today that the Company’s Board of Directors authorized the repurchase of up to $50 million of its outstanding common shares.

Any purchases made pursuant to the program will be made from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time.

George J. Carter, Chairman and Chief Executive Officer of FSP, commented as follows:

“We previously announced 2021 disposition guidance in the range of $350 million to $450 million in aggregate gross proceeds. We continue to intend to use those proceeds primarily for debt reduction. However, we believe that our stock price may at times not be fully reflective of the value of our underlying assets. As a result, we may use a portion of proceeds from those asset sales for share repurchases as market conditions warrant.”

This press release, along with other news about FSP, is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

About Franklin Street Properties Corp.

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. To learn more about FSP please visit our website at www.fspreit.com.

Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210623005836/en/

FAQ

What is the total amount authorized for Franklin Street Properties Corp.'s stock buyback program?

The total amount authorized for the stock buyback program is up to $50 million.

What could the proceeds from asset sales be used for by Franklin Street Properties Corp.?

The proceeds from asset sales may be used primarily for debt reduction and share repurchases.

What does Franklin Street Properties Corp. aim to address with the share buyback program?

The share buyback program aims to address the discrepancy between the stock price and the value of underlying assets.