Franklin Street Properties (FSP) Misses Q1 EPS by 1c

Franklin Street Properties (NYSE: FSP) reported Q1 EPS of ($0.01), $0.01 worse than the analyst estimate of $0.00.

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

"Leasing activity during the first quarter of 2020 continued the strong pace of the previous two years, with new tenant leasing in 2020 at our 32 operating and 3 redevelopment properties finishing the best first quarter results in FSP history. Prior to the emergence of the COVID-19 pandemic, we believe that the Company was positioned well for new tenant absorption, increasing occupancy levels and higher rental rates during 2020, allowing us to potentially start realizing the longer term value-add portfolio proposition that was such an integral part of the strategy of recasting our portfolio. However, despite our positive first quarter results, in March 2020 the full weight of the COVID-19 pandemic and consequent U.S. economic shutdown became more apparent. While leasing activity at our properties continues, we believe that a significant ‘pause’ button has been pushed relative to new tenant leasing prospects, making the actual amount of any new tenant leasing going forward uncertain. As of April 28, 2020, we had collected approximately 98% of April rents. However, at this time, we are not able to predict whether and to what extent our level of rental receipts may change in future months. Consequently, we are withdrawing our previous income and Funds From Operations (FFO) guidance and will not be providing additional guidance until such time as we have a better understanding of the duration of the COVID-19 pandemic and its impact on our business and the businesses of our tenants. We believe the bulk of our tenants will be financially able to weather the COVID-19 pandemic and that the inherent value of our property portfolio, our own financial resources and balance sheet flexibility, will see us through this difficult time, and then allow us to resume the strong new tenant leasing and absorption that was underway during the first quarter.”

For earnings history and earnings-related data on Franklin Street Properties (FSP) click here.

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