AMEX:FSP

Stock Analysis Report

Franklin Street Properties

Executive Summary

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Franklin Street Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

AMEX:FSP

0.2%

US REITs

-1.0%

US Market


1 Year Return

-7.4%

AMEX:FSP

8.2%

US REITs

-0.4%

US Market

FSP underperformed the REITs industry which returned 7.6% over the past year.

FSP underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

FSPIndustryMarket
7 Day0.8%0.2%-1.0%
30 Day3.2%2.0%-3.3%
90 Day2.1%2.9%0.4%
1 Year-2.8%-7.4%13.0%8.2%1.8%-0.4%
3 Year-25.5%-37.3%25.0%8.7%39.4%30.4%
5 Year-13.0%-35.7%58.7%25.0%54.2%37.1%

Price Volatility Vs. Market

How volatile is Franklin Street Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Franklin Street Properties undervalued based on future cash flows and its price relative to the stock market?

73.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Franklin Street Properties's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Franklin Street Properties's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Franklin Street Properties is overvalued based on earnings compared to the US REITs industry average.

Franklin Street Properties is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Franklin Street Properties is poor value based on expected growth next year.


Price Based on Value of Assets

Franklin Street Properties is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Franklin Street Properties expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Franklin Street Properties's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Franklin Street Properties's earnings are expected to grow significantly at over 20% yearly.

Franklin Street Properties's revenue growth is positive but not above the United States of America market average.

Franklin Street Properties's earnings growth is expected to exceed the United States of America market average.

Franklin Street Properties's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Franklin Street Properties will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Franklin Street Properties performed over the past 5 years?

-30.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Franklin Street Properties's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Franklin Street Properties has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Franklin Street Properties has become profitable in the last year making it difficult to compare the US REITs industry average.


Return on Equity

Franklin Street Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Franklin Street Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Franklin Street Properties has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Franklin Street Properties's financial position?


Financial Position Analysis

Franklin Street Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Franklin Street Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Franklin Street Properties's level of debt (121.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (91.1% vs 121.4% today).

Debt is not well covered by operating cash flow (7.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Franklin Street Properties's current dividend yield, its reliability and sustainability?

4.59%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Franklin Street Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Franklin Street Properties's dividend is above the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (274x coverage).


Next Steps

Management

What is the CEO of Franklin Street Properties's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

George Carter (70yo)

17.6yrs

Tenure

US$306,000

Compensation

Mr. George John Carter has been the Chief Executive Officer and Chairman of the Board of Franklin Street Properties Corp. ("Corporation") since 2002 and serves as its Principal Executive Officer. He had se ...


CEO Compensation Analysis

George's remuneration is lower than average for companies of similar size in United States of America.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

49.5yo

Average Age

The tenure for the Franklin Street Properties management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

68yo

Average Age

The tenure for the Franklin Street Properties board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$20,85714 Dec 18
John Demeritt
EntityIndividual
Role
Executive VP
Shares3,000
Max PriceUS$6.96

Ownership Breakdown


Management Team

  • Eriel Anchondo (41yo)

    Executive VP & COO

    • Tenure: 4.6yrs
  • George Carter (70yo)

    Chairman & CEO

    • Tenure: 17.6yrs
    • Compensation: $306.00k
  • John Donahue (52yo)

    Executive VP & President of FSP Property Management LLC

    • Tenure: 3.3yrs
    • Compensation: $587.08k
  • Toby Daley

    Senior Vice President

    • Tenure: 3.3yrs
  • John Demeritt (59yo)

    Executive VP

    • Tenure: 14.4yrs
    • Compensation: $652.78k
  • Jeffrey Carter (47yo)

    President & Chief Investment Officer

    • Tenure: 3.3yrs
    • Compensation: $646.21k
  • Georgia Touma

    Assistant VP & Director of Investor Relations

  • Scott Carter (47yo)

    Executive VP

    • Tenure: 11.5yrs
    • Compensation: $608.64k
  • Julie Driscoll

    Assistant VP & HR Manager

  • William Friend

    Senior Vice President

    • Tenure: 3.3yrs

Board Members

  • Kate O’Neil (55yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: $75.00k
  • Georgia Murray (68yo)

    Lead Independent Director

    • Tenure: 5.5yrs
    • Compensation: $75.00k
  • Dennis McGillicuddy (77yo)

    Director

    • Tenure: 17.3yrs
    • Compensation: $75.00k
  • George Carter (70yo)

    Chairman & CEO

    • Tenure: 17.8yrs
    • Compensation: $306.00k
  • Ken Hoxsie (68yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: $75.00k
  • John Burke (57yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: $85.00k
  • Brian Hansen (47yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: $75.00k

Company Information

Franklin Street Properties Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Street Properties Corp.
  • Ticker: FSP
  • Exchange: AMEX
  • Founded: 1997
  • Industry: office reits
  • Sector: real estate
  • Market Cap: US$841.765m
  • Shares outstanding: 107.23m
  • Website: Click here

Number of Employees


Location

  • Franklin Street Properties Corp.
  • 401 Edgewater Place
  • Suite 200
  • Wakefield
  • Massachusetts
  • 1880
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSPAMEX (NYSE MKT LLC)YesCommon StockUSUSDJun 2005
WVHDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2005

Biography

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 oppo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:51
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.