Franklin Street Properties: Poor Dividends And Wall Of Debt

Pacifica Yield
12.61K Followers

Summary

  • FSP trading at an 8.8x multiple to its annualized third-quarter FFO is comparatively expensive against its 1.7% dividend yield and 74.8% lease rate.
  • The office REIT is currently trading significantly below its $6.88 book value per share.
  • 2024 is set to see $311 million of debt mature which will mean more asset sales if FSP is unable to refinance.

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Office REITs are in a battle for their lives, and their investors are faced with a conundrum in picking the winners in an increasingly Darwinistic space. The headwinds are clear; a Fed funds rate at a more than two-decade high and rising office

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