Franklin Street lowers dividend to 9c per share
Franklin Street Properties announced after the close on Friday that its board of directors declared a regular quarterly dividend of 9c per share of common stock for the period January 1, 2018 through March 31, 2018, payable on May 10 to stockholders of record as of April 20. Chairman and CEO George Carter said, "The declared quarterly dividend of $0.09 per share of common stock represents a $0.10 reduction from the $0.19 per share of common stock quarterly dividend that FSP has paid since August 2008. As indicated in our fourth quarter 2017 earnings press release, the transition of FSP's property portfolio from a suburban to a primarily urban orientation has generally resulted in higher leasing costs per square foot but longer lease terms and higher rental rates. We anticipate that we will have the opportunity to do significant leasing in the property portfolio during 2018 and 2019 with the objective of achieving 92% to 94% stabilized occupancy. While some of the leasing to be done is rollover space from existing tenant lease expirations, a large amount is associated with value-add opportunities that exist in currently vacant space in many of our recently acquired urban-infill properties. The currently declared dividend of $0.09 per share of common stock has been set at a level that our Board of Directors believes will better enable us to fund anticipated capital expenditures and leasing costs from internal cash flow and that will more closely align our percentage of AFFO, or adjusted funds from operations, payout with other office REITs."