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

1.1%

FSP

-0.4%

US REITs

1.0%

US Market


1 Year Return

21.0%

FSP

20.9%

US REITs

6.7%

US Market

Return vs Industry: FSP matched the US REITs industry which returned 20.9% over the past year.

Return vs Market: FSP exceeded the US Market which returned 6.7% over the past year.


Share holder returns

FSPIndustryMarket
7 Day1.1%-0.4%1.0%
30 Day6.1%2.0%-1.8%
90 Day13.8%4.0%-1.8%
1 Year27.1%21.0%26.3%20.9%9.1%6.7%
3 Year-14.1%-27.6%34.5%17.3%46.0%36.6%
5 Year-0.7%-26.5%64.8%29.9%66.9%48.6%

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?

81.22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: FSP ($8.64) is trading above our estimate of fair value ($7.62)

Significantly Undervalued: FSP is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: FSP is poor value based on its PE Ratio (81.2x) compared to the REITs industry average (34.8x).

PE vs Market: FSP is poor value based on its PE Ratio (81.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FSP is poor value based on its PEG Ratio (2.2x)


Price Based on Value of Assets

PB vs Industry: FSP is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (2x).


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

Earnings vs Savings Rate: FSP's forecast earnings growth (37.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FSP's earnings (37.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FSP's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FSP's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if FSP's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: FSP's earnings have declined by -30.2% per year over the past 5 years.

Accelerating Growth: FSP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FSP has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (17%).


Return on Equity

High ROE: FSP's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: FSP's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: FSP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Franklin Street Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FSP has a high level of physical assets or inventory.

Debt Coverage by Assets: FSP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: FSP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FSP has a sufficient allowance for bad loans.

Low Risk Liabilities: FSP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FSP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FSP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FSP has an appropriate level of bad loans.


Next Steps

Dividend

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

4.17%

Expected Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years4.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: FSP's dividend (4.17%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: FSP's dividend (4.17%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: FSP's dividend payments have been volatile in the past 10 years.

Growing Dividend: FSP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), FSP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FSP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


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?

4.1yrs

Average management tenure


CEO

George Carter (70yo)

17.8yrs

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

Compensation vs. Market: George's total compensation ($USD306.00K) is about average for companies of similar size in the US market ($USD2.71M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: FSP's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

68yo

Average Age

Experienced Board: FSP's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • George Carter (70yo)

    Chairman & CEO

    • Tenure: 17.8yrs
    • Compensation: US$306.00k
  • John Demeritt (59yo)

    Executive VP

    • Tenure: 14.6yrs
    • Compensation: US$652.78k
  • Scott Carter (47yo)

    Executive VP

    • Tenure: 11.7yrs
    • Compensation: US$608.64k
  • Jeffrey Carter (47yo)

    President & Chief Investment Officer

    • Tenure: 3.4yrs
    • Compensation: US$646.21k
  • Toby Daley

    Senior Vice President

    • Tenure: 3.4yrs
  • William Friend

    Senior Vice President

    • Tenure: 3.4yrs
  • Eriel Anchondo (41yo)

    Executive VP & COO

    • Tenure: 4.8yrs
  • Georgia Touma

    Assistant VP & Director of Investor Relations

    • Tenure: 0yrs
  • Julie Driscoll

    Assistant VP & HR Manager

    • Tenure: 0yrs
  • John Donahue (52yo)

    Executive VP & President of FSP Property Management LLC

    • Tenure: 3.4yrs
    • Compensation: US$587.08k

Board Members

  • Kate O’Neil (55yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$75.00k
  • Georgia Murray (68yo)

    Lead Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$75.00k
  • Dennis McGillicuddy (77yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: US$75.00k
  • George Carter (70yo)

    Chairman & CEO

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

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$75.00k
  • John Burke (57yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$85.00k
  • Brian Hansen (47yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$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$926.477m
  • Shares outstanding: 107.23m
  • Website: https://www.fspreit.com

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 Analysis2019/10/14 01:45
End of Day Share Price2019/10/11 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.

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