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In this article, I will feature one REIT that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

Franklin Street Properties Corporation (NYSEMKT:FSP) operates as a real estate investment trust. Its portfolio of real estate assets consists of institutional-quality office buildings & includes select investments in central business district properties.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Franklin Street Properties' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Georgia MurrayDirectorFeb 284,00031,400 shares+14.6%
Jeffrey CarterCIOFeb 262,90012,675 shares+29.7%
John DemerittCFOFeb 211,00025,000 shares+4.2%

There have been 7,900 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Franklin Street Properties' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
February 20147,9000
January 201400
December 201300
November 201300
October 201300
September 201310,0000
August 20134,3500
July 201300
June 201300
May 201313,2500
April 201300
March 20135,0000
February 201300
January 201300

There have been 40,500 shares purchased, and there have been zero shares sold by insiders since January 2013.

Financials

Franklin Street Properties reported the full-year 2013 financial results on February 18 with the following highlights:

Revenue$213.6 million
Funds from operations$100.8 million
Net income$19.8 million
Cash$19.6 million
Debt$926.5 million

Outlook

Franklin Street Properties' full year FFO guidance for 2014 is in the range of $1.08 to $1.12 per diluted share.

Competition

Franklin Street Properties' peer group consists of Brandywine Realty Trust (NYSE:BDN), CommonWealth REIT (CWH), Corporate Office Properties Trust (NYSE:OFC), Government Properties Income Trust (NYSE:GOV), Highwoods Properties (NYSE:HIW), Hudson Pacific Properties (NYSE:HPP), Kilroy Realty Corporation (NYSE:KRC), MPG Office Trust (NYSE:MPG), and Parkway Properties (NYSE:PKY).

Here is a table comparing Franklin Street Properties against the peer average.

FSPPeer average
Price/FFO11.7015.40
Dividend yield6.07%3.56%

Franklin Street Properties has a higher dividend yield, and a lower price/FFO ratio than the peer average.

Here is a table of these nine peer group companies' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
BDN026,667
CWH1,0000
OFC030,000
GOV00
HIW00
HPP00
KRC04,166
MPG00
PKY00

Only Franklin Street Properties has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Franklin Street Properties, and there have not been any insiders selling Franklin Street Properties during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Franklin Street Properties has an insider ownership of 10.16%.

The insiders purchased their shares at prices ranging from $12.10 to $12.51. I believe Franklin Street Properties could be a good pick below $12.50 based on the intensive insider buying.

Source: Franklin Street Properties: 3 Different Insiders Have Purchased Shares During The Last 30 Days