Franklin Street Properties Corp. Announces the Completion of the Sale of One Overton Park, One Ravinia Drive and Two Ravinia Drive for Aggregate Gross Proceeds of $219.5 Million

Rhea-AI Summary

Franklin Street Properties Corp. (FSP) announced the successful sale of three properties for total gross proceeds of $219.5 million. This transaction is expected to generate a gain of approximately $23 million in Q2 2021. The sale contributes significantly to FSP's target of $350 million to $450 million in asset disposals for the year, with proceeds primarily aimed at debt reduction. CEO George J. Carter expressed satisfaction with the completion of this strategic divestment, aligning with the company's focus on long-term growth and value-oriented investments.

Positive

• Achievement of property sales totaling $219.5 million.
• Expected gain of approximately $23 million in Q2 2021.
• Proceeds support debt reduction strategy.

Negative

• None.

Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE American: FSP), a real estate investment trust (REIT), announced today the completion of the sale of One Overton Park, One Ravinia Drive and Two Ravinia Drive (together, the “Properties”) for aggregate gross proceeds of $219.5 million.

The Company expects to record an aggregate gain of approximately $23 million in the second quarter of 2021 in connection with the sale of the Properties.

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

“We are pleased to announce the completion of the sale of the Properties. The proceeds from this sale represent a significant portion of our previously announced 2021 disposition guidance in the range of $350 million to $450 million in aggregate gross proceeds. As previously announced, the proceeds are intended to be used primarily for debt reduction.”

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/20210527005920/en/

FAQ

What properties did Franklin Street Properties Corp. sell?

Franklin Street Properties Corp. sold One Overton Park, One Ravinia Drive, and Two Ravinia Drive.

What were the gross proceeds from the sale of the properties?

The sale generated gross proceeds of $219.5 million.

How much gain is FSP expecting from the sale in Q2 2021?

FSP expects to record a gain of approximately $23 million in Q2 2021.

How does this sale impact FSP's debt management?

The proceeds from the sale will primarily be used for debt reduction.

What is FSP's disposition guidance for 2021?

FSP's disposition guidance for 2021 is in the range of $350 million to $450 million.