Franklin Street Properties Corp. Provides Update on Impact of COVID-19 Pandemic & Announces Impact of Nationwide Protests on ...
June 02 2020 - 4:30PM
Business Wire
Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or
“our”) (NYSE American:FSP), a real estate investment trust (REIT),
today provided an update on the impact of the COVID-19 pandemic and
announced the impact of the ongoing nationwide protests on its
directly-owned properties.
COVID-19 Pandemic Update
FSP remains committed to the health and safety of its employees,
tenants, vendors and visitors and will continue to implement
recommended guidelines for social distancing and safety protocols
at our properties and corporate headquarters.
- All of our properties have remained open for business and are
located in jurisdictions that continue to lift their respective
COVID-19 pandemic restrictions.
- We collected approximately 95% of rental receipts due in May
2020. Due to the high level of uncertainty related to the COVID-19
pandemic, we are unable to predict the level of rental receipts in
future months.
- During the past approximately ten weeks, we have received rent
relief requests from some of our tenants. The majority of these
requests for relief have been in the form of potential rent
deferrals for varying lengths of time. To date, we have been in
discussions with tenants regarding potential rent deferrals
representing approximately 1% to 2% of annualized rents. We will
continue to review each request for rent relief on a case by case
basis. Where prudent, we may grant deferrals and, in some
instances, seek extended lease terms. We are unable to predict the
outcomes of these ongoing negotiations, the amount of the rent
relief packages, if any, and ultimate recovery of any deferred
amounts.
Nationwide Protests
The Company further reported that, to date, none of its
directly-owned properties have sustained significant property
damage as a result of the ongoing nationwide protests.
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, including without limitation, adverse changes in
general economic or local market conditions, including as a result
of the COVID-19 pandemic and other potential infectious disease
outbreaks and terrorist attacks or other acts of violence, which
may negatively affect the markets in which we and our tenants
operate, adverse changes in energy prices, which if sustained,
could negatively impact occupancy and rental rates in the markets
in which we own properties, including energy-influenced markets
such as Dallas, Denver and Houston, changes in interest rates as a
result of economic market conditions or a downgrade in our credit
rating, disruptions in the debt markets, economic conditions in the
markets in which we own properties, risks of a lessening of demand
for the types of real estate owned by us, uncertainties relating to
fiscal policy, changes in government regulations and regulatory
uncertainty, changes in energy prices, geopolitical events, and
expenditures that cannot be anticipated such as utility rate and
usage increases, delays in construction schedules, unanticipated
increases in construction costs, unanticipated repairs, additional
staffing, insurance increases and real estate tax valuation
reassessments. 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,
2019, as the same may be updated from time to time in subsequent
filings with the United States Securities and Exchange Commission,
including without limitation, the “Risk Factors” set forth in Part
II, Item 1A of our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020. Although we believe the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, acquisitions,
dispositions, performance or achievements. We will not update any
of the forward-looking statements after the date of this press
release to conform them to actual results or to changes in our
expectations that occur after such date, other than as required by
law.
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For Franklin Street Properties Corp. Georgia Touma,
877-686-9496
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