Funds from operations (FFO) at Wakefield’s Franklin Street Properties Corp., an investment firm specializing in real estate, dropped to $16.1 million in the third quarter.
The $1.5 million decrease from the same period last year was primarily attributable to a decrease in real estate FFO of $1.7 million and was partially offset by an increase in investment banking FFO of $0.2 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio during the third quarter of 2010 compared to the third quarter of 2009.
The company also reported net income of $4.8 million, a $2.2 million decrease from the third quarter 2009.
Net income during the first nine months of 2010 decreased by $3.3 million and FFO decreased by $2.9 million, compared to the same period last year. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $4.1 million and was partially offset by an increase in investment banking FFO of $1.2 million.
"For 2010, FSP’s profit results have been under pressure primarily from increasing vacancy in the property portfolio created by large amounts of tenant lease expirations within a generally weak office market," said George J. Carter, president and CEO. "Adding to this situation has been continuing lower levels of investment banking underwritings. The company has anticipated and planned for the levels of business activity and financial results we are experiencing this year. The transactional nature, success and timing of our re-leasing efforts of existing vacancy and lease-roll in the portfolio will interplay with the timing of new property acquisitions and capital closings of private placement offerings through our investment bank to affect future FFO levels."
The company’s directly-owned real estate portfolio of 33 properties was approximately 82 percent leased as of Sept. 30, and approximately 84 percent leased as of Dec. 31, 2009, according to a statement.
The board of directors declared a regular quarterly dividend for the three months ended Sept. 30 of 19-cents per share of common stock payable on Nov. 19 to stockholders of record on Oct. 29.
