Franklin Street Properties Corp. (“FSP”, “we”, “our” or the “Company”) (NYSE MKT: FSP), a real estate investment trust (REIT) based in Wakefield, Massachusetts, is focused on investing in institutional-quality office properties in major U.S. markets. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our top five markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP’s primary real estate operations include property acquisitions and dispositions, leasing, development and asset management. FSP began operations in 1997 and became a publicly-traded company in June 2005.
FSP had been primarily an investor in suburban office buildings with select investments in CBD properties. Over time, FSP’s strategy has evolved to its current focus on urban infill and select CBD office properties within five core markets – Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP has also been a cyclical investor in San Diego, Silicon Valley, Greater Boston, Raleigh-Durham, and Greater Washington, DC, and will continue to monitor these markets, as well as other markets, for opportunistic investments.
As of January 6, 2017, the Company owned and operated a portfolio of real estate consisting of 35 properties and asset-managed 7 Sponsored REITs. FSP actively plans to continue to make new property investments within our core markets. Additionally, the Company may also pursue, on a selective basis, the sale of certain of its properties in order to take advantage of value creation and strong location-based demand cycles, or for geographic or property specific reasons. FSP management believes that harvesting appreciation gains in its properties represents a meaningful contribution to the total return earned by its investors.
FSP’s investment strategy is to make direct investments in real estate assets. Institutional-quality urban infill and CBD office properties within our core markets of Atlanta, Dallas, Denver, and Houston will be our primary target for investment. FSP will also monitor San Diego, Silicon Valley, Greater Boston, Raleigh-Durham, and Greater Washington, DC, as well as other markets, for opportunistic investments. The Company believes that real estate, in general, and office properties, specifically, are a cyclical asset class. Accordingly, FSP endeavors to minimize the risk of investing in that cyclical asset class by maintaining a low to moderate level of corporate debt and historically has not had secured debt at the property level. FSP believes that matching a flexible moderate leverage ratio with its office investments will allow it to take advantage of disposition opportunities during peaks in the cycles and protect its investments from foreclosure or refinancing risk during the lows of the cycles. In addition to maintaining modest leverage, FSP believes that it can lower investment risk while enhancing current income and long-term appreciation potential through the geographic diversification offered by its five core markets that exhibit strong economic growth drivers.