Franklin Street Properties Corp. (NYSEMKT:FSP)

CAPS Rating: No stars

The Company operates in two business segments: real estate operations, including real estate leasing, interim acquisition financing and asset/property management, and Investment banking/investment services.

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Member Avatar MaherDaddy (< 20) Submitted: 2/17/2009 8:03:01 AM : Outperform Start Price: $7.95 FSP Score: -109.47

Undervalued REIT...good time to buy with a consistent dividend and most of real estate in Boston area which has not been hit as hard in the real estate market.

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Member Avatar evidente26 (< 20) Submitted: 12/2/2008 11:42:07 PM : Outperform Start Price: $7.52 FSP Score: -92.49

No outstanding mtg hence very little debt.

Strong Balance Sheet.

Dividend is very safe.

Trading below TBV.

Occupancy ratio is at or slighty better than indus avg.

Great and unique bus. model.

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Member Avatar FlawedGenius (70.21) Submitted: 10/22/2008 3:07:48 PM : Outperform Start Price: $7.19 FSP Score: -65.69

Low risk, Opportunistic

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Member Avatar rremont (54.37) Submitted: 3/28/2008 1:44:32 PM : Outperform Start Price: $9.72 FSP Score: -37.03

FSP has been using a conservative approach to leverage. Now with the real estate market crumbling, they are in a great place to leverage their assets to pick up new properties at a discounted price.

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Member Avatar rhg1298 (< 20) Submitted: 1/29/2008 7:28:28 PM : Outperform Start Price: $9.19 FSP Score: -26.61

This REIT is unique and the stock price does not give it ample credit. FSP enjoys zero long term debt. I know that most American's do not feel comfortable with the concept of turning down credit, but there is a tremendous amount of comfort knowing that FSP's earnings could drop by 50% and you would still receive a 4.5% yield on your investment at todays prices. No debt, means no pressure and likely sound long term decisions.

Insiders have been buying overwhelmingly. They know, what I know. FSP owns AAA office towers, with high quality tenants (e.g. IRS and Burger King corporate), in markets that never had the exacerbated run up in value that NY and Chicago suffered. So, there is upside in the building value (underlying asset) and you get a 9% dividend while you wait. This is a great investment if you demand cash flow, and a great investment as a hedge against inflation, since the cost of constructing these office towers will almost certainly escalate over time. History tends to repeat itself.

The proof is in the recent disposition of assets by FSP. The buildings in the portfolio are worth more than the book value. Some of its profits were generated by these sales. In addition, some of FSP's profits were generated by its investment services. FSP uses private money to purchase individual buildings. A building is purchased using temporary financing secured by the REIT; and private investors pay off the temporary financing within a few months. FSP charges a fee for this activity. Eventually, the privately owned building is absorbed into the REIT to give some diversification and liquidity to the private investors. The private investors are very loyal to FSP and believe in the methodology (I know - I am one of them). I also own the publicly traded FSP stock.

The variability in the investment services income and asset sales makes the earnings fluctuate. If you strip those earnings out, the underlying core cash flow stream from leasing remains strong and commands a much higher multiple than the stock trades at now.

A fair price for FSP (AAA balance sheet) with predictable core earnings is $25 or above, based on current treasury rates.

Remember, FSP has no debt and loads of cash available to them from previous private investors. If there is a downturn in commercial real estate, FSP is best positioned to pick up the pieces, adding even more value to stockholders.

robert godwin

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Member Avatar jostrick14 (< 20) Submitted: 1/28/2008 1:05:32 PM : Outperform Start Price: $9.53 FSP Score: -32.57

In the credit pinch, and subprime loan crisis, this small reit has no debt on any of it's properties. Most of it's properties are class A office buildings, a few are class A apartments.Examples are the Wirehauser office park in Tacoma and the Motorola office building in North Chicago.Average ocupancy, 85%

with net, net, net leases.

Top notch management teem of a 6 man board, all founders of the company, and only 36 total employees including the board.

It has never missed it's @$1.24 dividend since its inception. It is listed on the Amex exhange.

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Member Avatar bullman1121 (< 20) Submitted: 11/10/2007 10:17:15 AM : Outperform Start Price: $9.44 FSP Score: -20.26



Franklin Street Properties Corp. ("FSP"), is an investment firm focused on achieving current income and long-term growth through investments in commercial properties. Since its origination in 1997, FSP has experienced growth by applying an uncompromising discipline to its real estate investing. These disciplines have been learned over many years of property investment.

FSP operates in two business segments:

REAL ESTATE OPERATIONS: FSP owns an unleveraged portfolio of real estate assets, consisting primarily of suburban office buildings as well as select investments in Central Business District (CBD) properties. The Company's real estate operations include property acquisitions and dispositions, interim acquisition financing, leasing and property/asset management.

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Member Avatar Suladan (< 20) Submitted: 7/19/2007 1:17:45 PM : Outperform Start Price: $9.95 FSP Score: -17.99

This stock has been heavily shorted over the last quarter due to what I think is a real misunderstanding of it's business model and earnings reports. There have been several recent property sales at a profit, investment banking operations have been busy and should be very profitable, and it's about time for the dividend to be raised, perhaps in the next few days. Good news plus a short squeeze could have a major impact soon. This stock should trade in the $22 to $25 range.

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Member Avatar pc123567 (41.87) Submitted: 6/22/2007 8:10:48 PM : Outperform Start Price: $10.24 FSP Score: -26.11

Franklin Street Properties is currently unkown on Wall Street. Only 30% of the float is owned by institutions and mutual funds. The stock has not appreciated to the degree of other reits. Much less risky than other reits with no debt.

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Member Avatar TuxedoTales (< 20) Submitted: 9/14/2006 5:24:02 PM : Underperform Start Price: $11.84 FSP Score: +64.54

Franklin Street Properties is unlike your typical REIT. The company is the only unleverage REIT on the main exchanges. It carries no permanent mortgage debt, and thus has little exposure to rising interest rates.

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