Franklin Street Properties Corp. Appoints Bruce J. Schanzer to Board of Directors and Enters into Cooperation Agreement with Converium Capital Inc. and Erez Asset Management LLC
November 27 2024 - 4:29PM
Business Wire
Franklin Street Properties Corp. (the “Company” or “FSP”) (NYSE
American: FSP), a real estate investment trust (REIT), announced
today that Bruce J. Schanzer will join the Company’s Board of
Directors (the “Board”), effective November 27, 2024. In addition,
effective November 27, 2024, the Board will appoint Mr. Schanzer to
serve as a member of the Audit Committee. With the addition of Mr.
Schanzer to the Board, effective November 27, 2024, the Board will
be comprised of eight directors, seven of whom are independent.
George J. Carter, Chairman and Chief Executive Officer,
commented, “We welcome Bruce to the Board and appreciate the
collaborative engagement we have had with Converium Capital and
Erez Asset Management, both of which are significant FSP
shareholders. Bruce has a long REIT and investment banking
pedigree. This appointment is another step in refreshing our Board
to ensure that we have diverse perspectives and skills to guide
FSP’s future success for the benefit of all stakeholders.”
“We appreciate our constructive engagement with the FSP Board
and its management team,” said Michael Rapps, Managing Partner,
Converium Capital. “With the addition of Bruce, we believe that the
Board is well positioned to help FSP maximize value for all
stakeholders.”
In connection with these changes to the Board, the Company has
entered into a Cooperation Agreement with Converium Capital and
Erez Asset Management, pursuant to which Converium Capital and Erez
Asset Management will vote their shares in favor of all of the
Board’s director nominees at the 2025 Annual Meeting of
Stockholders. Under the Cooperation Agreement, Converium Capital
and Erez Asset Management have agreed to customary standstill,
voting and other provisions. The full agreement among FSP,
Converium Capital and Erez Asset Management will be filed on Form
8-K with the U.S. Securities and Exchange Commission (the
“SEC”).
About Bruce J. Schanzer
Mr. Schanzer is Chairman and Chief Investment Officer of Erez
Asset Management, a fund manager focused on investment
opportunities in small market cap REITs. Prior to forming Erez
Asset Management in August 2022, Mr. Schanzer was President, Chief
Executive Officer and a director of Cedar Realty Trust (NYSE: CDR),
a real estate investment trust focused on the ownership, operation
and redevelopment of shopping centers in the Washington, D.C. to
Boston corridor, from June 2011 to August 2022. Before joining
Cedar in 2011, he was a managing director in the real estate
investment banking group at Goldman Sachs & Co and prior
thereto a vice president at Merrill Lynch. Before working on Wall
Street, Bruce worked as a real estate attorney in New York. He
received an M.B.A. in finance and accounting from the University of
Chicago (now known as the Booth School of Business); a J.D. from
Benjamin N. Cardozo School of Law, where he served as a member of
the Law Review; and a B.A. from Yeshiva College, where he is
currently a member of the board of trustees of Sym Schools of
Business. He is also presently a member of the board of trustees of
SAR Academy in Riverdale, NY and the board of advisors of New York
Medical College. Mr. Schanzer previously served as a member of the
board of governors of the National Association of Real Estate
Investment Trusts.
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, such as those
relating to the potential or intended benefits of FSP’s board
structure and related contributions by its directors and FSP’s
future success, 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 long-term effects
of the COVID-19 pandemic, wars, terrorist attacks or other acts of
violence, which may negatively affect the markets in which we and
our tenants operate, inflation rates, interest rates, 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, 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 government
regulations and regulatory uncertainty, uncertainty about
governmental fiscal policy, geopolitical events and expenditures
that cannot be anticipated, such as utility rate and usage
increases, delays in construction schedules, unanticipated
increases in construction costs, increases in the level of general
and administrative costs as a percentage of revenues as revenues
decrease as a result of property dispositions, 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, 2023, which 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, 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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