Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 001-32470 | ||
Entity Registrant Name | FRANKLIN STREET PROPERTIES CORP. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 04-3578653 | ||
Entity Address, Address Line One | 401 Edgewater Place, Suite 200 | ||
Entity Address, City or Town | Wakefield | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01880 | ||
City Area Code | 781 | ||
Local Phone Number | 557-1300 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 140,333,921 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | FSP | ||
Security Exchange Name | NYSEAMER | ||
Entity Common Stock, Shares Outstanding | 103,430,353 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001031316 | ||
Amendment Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Real estate assets: | ||
Land (amounts related to variable interest entities ("VIEs") of $6,416 and $0 at December 31, 2023 and December 31, 2022, respectively) | $ 110,298 | $ 126,645 |
Buildings and improvements (amounts related to VIEs of $13,279 and $0 at December 31, 2023 and December 31, 2022, respectively) | 1,133,971 | 1,388,869 |
Fixtures and equipment | 12,904 | 11,151 |
Total real estate assets, gross | 1,257,173 | 1,526,665 |
Less accumulated depreciation (amounts related to VIEs of $341 and $0 at December 31, 2023 and December 31, 2022, respectively) | 366,349 | 423,417 |
Real estate assets, net (amounts related to VIEs of $19,354 and $0 at December 31, 2023 and December 31, 2022, respectively) | 890,824 | 1,103,248 |
Acquired real estate leases, less accumulated amortization of $20,413 and $20,243, respectively (amounts related to VIEs of $305 and $0, less accumulated amortization of $222 and $0 at December 31, 2023 and December 31, 2022, respectively) | 6,694 | 10,186 |
Asset held for sale | 73,318 | |
Cash, cash equivalents and restricted cash (amounts related to VIEs of $2,167 and $0 at December 31, 2023 and December 31, 2022, respectively) | 127,880 | 6,632 |
Tenant rent receivables | 2,191 | 2,201 |
Straight-line rent receivable | 40,397 | 52,739 |
Prepaid expenses and other assets | 4,239 | 6,676 |
Other assets: derivative asset | 4,358 | |
Related party mortgage loan receivable, less allowance for credit loss of $0 and $4,237, respectively | 19,763 | |
Office computers and furniture, net of accumulated depreciation of $1,020 and $1,115, respectively | 123 | 154 |
Deferred leasing commissions, net of accumulated amortization of $16,008 and $19,043, respectively | 23,664 | 35,709 |
Total assets | 1,169,330 | 1,241,666 |
Liabilities: | ||
Bank note payable | 90,000 | 48,000 |
Term loans payable, less unamortized financing costs of $293 and $250, respectively | 114,707 | 164,750 |
Series A & Series B Senior Notes, less unamortized financing costs of $329 and $494, respectively | 199,670 | 199,506 |
Accounts payable and accrued expenses (amounts related to VIEs of $590 and $0 at December 31, 2023 and December 31, 2022, respectively) | 41,879 | 50,366 |
Accrued compensation | 3,644 | 3,644 |
Tenant security deposits | 6,204 | 5,710 |
Lease liability | 334 | 759 |
Acquired unfavorable real estate leases, less accumulated amortization of $396 and $574, respectively | 87 | 195 |
Total liabilities | 456,525 | 472,930 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding | ||
Common stock, $.0001 par value, 180,000,000 shares authorized, 103,430,353 and 103,235,914 shares issued and outstanding, respectively | 10 | 10 |
Additional paid-in capital | 1,335,091 | 1,334,776 |
Accumulated other comprehensive income | 355 | 4,358 |
Distributions in excess of accumulated earnings | (622,651) | (570,408) |
Total stockholders' equity | 712,805 | 768,736 |
Total liabilities and stockholders' equity | $ 1,169,330 | $ 1,241,666 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Land amounts related to variable interest entities ("VIEs") | $ 110,298 | $ 126,645 |
Buildings and improvements amounts related to variable interest entities ("VIEs") | 1,133,971 | 1,388,869 |
Less accumulated depreciation amounts related to variable interest entities ("VIEs") | (366,349) | (423,417) |
Real estate assets | 890,824 | 1,103,248 |
Acquired real estate leases | 6,694 | 10,186 |
Acquired real estate leases, accumulated amortization | 20,413 | 20,243 |
Cash, cash equivalents and restricted cash (amounts related to variable interest entities ("VIEs") | 127,880 | 6,632 |
Allowance on related parties loans and leases receivable | 0 | 4,237 |
Office computers and furniture, accumulated depreciation | 1,020 | 1,115 |
Deferred leasing commissions, accumulated amortization | 16,008 | 19,043 |
Term loan payable, unamortized financing costs | 293 | 250 |
Series A & Series B Senior notes, unamortized financing costs | 329 | 494 |
Accounts payable and accrued expenses amounts related to variable interest entities ("VIEs") | 41,879 | 50,366 |
Acquired unfavorable real estate leases, accumulated amortization | $ 396 | $ 574 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 103,430,353 | 103,235,914 |
Common stock, shares outstanding (in shares) | 103,430,353 | 103,235,914 |
Variable interest entities ("VIEs") | ||
Land amounts related to variable interest entities ("VIEs") | $ 6,416 | $ 0 |
Buildings and improvements amounts related to variable interest entities ("VIEs") | 13,279 | 0 |
Less accumulated depreciation amounts related to variable interest entities ("VIEs") | (341) | 0 |
Real estate assets | 19,354 | 0 |
Acquired real estate leases | 305 | 0 |
Acquired real estate leases, accumulated amortization | 222 | 0 |
Cash, cash equivalents and restricted cash (amounts related to variable interest entities ("VIEs") | 2,167 | 0 |
Accounts payable and accrued expenses amounts related to variable interest entities ("VIEs") | $ 590 | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Rental | $ 145,446 | $ 163,739 | $ 207,581 |
Total revenues | 145,707 | 165,615 | 209,358 |
Expenses: | |||
Real estate operating expenses | 50,732 | 52,820 | 60,881 |
Real estate taxes and insurance | 27,200 | 34,620 | 41,061 |
Depreciation and amortization | 54,738 | 63,808 | 78,544 |
General and administrative | 14,021 | 13,885 | 15,898 |
Interest | 24,318 | 22,808 | 32,273 |
Total expenses | 171,009 | 187,941 | 228,657 |
Loss on extinguishment of debt | (106) | (78) | (901) |
Gain on consolidation of Sponsored REIT | 394 | ||
Impairment and loan loss reserve | (4,237) | ||
Gain (loss) on sale of properties and impairment of assets held for sale, net | (23,384) | 27,939 | 113,134 |
Interest income | 567 | ||
New | (47,831) | 1,298 | 92,934 |
Tax expense | 279 | 204 | 638 |
Equity in income of non-consolidated REITs | 421 | ||
Net income (loss) | $ (48,110) | $ 1,094 | $ 92,717 |
Weighted average number of shares outstanding, basic | 103,357,000 | 103,338,000 | 106,667,000 |
Weighted average number of shares outstanding, diluted | 103,357,000 | 103,338,000 | 106,667,000 |
Net income (loss) per share, basic | $ (0.47) | $ 0.01 | $ 0.87 |
Net income (loss) per share, diluted | $ (0.47) | $ 0.01 | $ 0.87 |
Rental | |||
Revenues: | |||
Rental | $ 145,446 | $ 163,739 | $ 207,581 |
Related party revenue: Management fees and interest income from loans | |||
Revenues: | |||
Revenue | 1,855 | 1,700 | |
Related party revenue: Other | |||
Revenues: | |||
Revenue | $ 261 | $ 21 | $ 77 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net income (loss) | $ (48,110) | $ 1,094 | $ 92,717 |
Other comprehensive income (loss): | |||
Unrealized gain on derivative financial instruments | 177 | 9,597 | 12,072 |
Reclassification from accumulated other comprehensive income into interest expense | (4,180) | ||
Total other comprehensive income (loss) | (4,003) | 9,597 | 12,072 |
Comprehensive income (loss) | $ (52,113) | $ 10,691 | $ 104,789 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Distributions in excess of accumulated earnings | Total |
Balance at Dec. 31, 2020 | $ 11 | $ 1,357,131 | $ (17,311) | $ (571,740) | $ 768,091 |
Balance (in shares) at Dec. 31, 2020 | 107,328,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | 12,072 | 92,717 | 104,789 | ||
Repurchased shares | $ (1) | (18,243) | $ (18,244) | ||
Repurchased shares (in shares) | (3,396,000) | (3,396,243) | |||
Equity-based compensation | 338 | $ 338 | |||
Equity-based compensation (in shares) | 67,000 | ||||
Distributions | (71,771) | (71,771) | |||
Balance at Dec. 31, 2021 | $ 10 | 1,339,226 | (5,239) | (550,794) | 783,203 |
Balance (in shares) at Dec. 31, 2021 | 103,999,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | 9,597 | 1,094 | 10,691 | ||
Repurchased shares | (4,843) | $ (4,843) | |||
Repurchased shares (in shares) | (847,000) | (846,739) | |||
Equity-based compensation | 393 | $ 393 | |||
Equity-based compensation (in shares) | 84,000 | ||||
Distributions | (20,708) | (20,708) | |||
Balance at Dec. 31, 2022 | $ 10 | 1,334,776 | 4,358 | (570,408) | 768,736 |
Balance (in shares) at Dec. 31, 2022 | 103,236,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | (4,003) | (48,110) | (52,113) | ||
Equity-based compensation | 315 | 315 | |||
Equity-based compensation (in shares) | 194,000 | ||||
Distributions | (4,133) | (4,133) | |||
Balance at Dec. 31, 2023 | $ 10 | $ 1,335,091 | $ 355 | $ (622,651) | $ 712,805 |
Balance (in shares) at Dec. 31, 2023 | 103,430,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (48,110) | $ 1,094 | $ 92,717 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 57,240 | 65,697 | 81,041 |
Amortization of above and below market leases | (44) | (118) | (34) |
Shares issued as compensation | 315 | 394 | 338 |
Amortization of other comprehensive income into interest expense | (3,851) | ||
Loss on extinguishment of debt | 106 | 78 | 901 |
Gain on consolidation of Sponsored REIT | (394) | ||
Impairment and loan loss reserve | 4,237 | ||
(Gain) loss on sale of properties and impairment of assets held for sale, net | 23,384 | (27,939) | (113,134) |
Equity in income of non-consolidated REITs | (421) | ||
Distributions from non-consolidated REITs | 421 | ||
Changes in operating assets and liabilities: | |||
Tenant rent receivables | 10 | (247) | 5,702 |
Straight-line rents | 625 | (5,895) | (3,930) |
Lease acquisition costs | (2,007) | (4,494) | (2,353) |
Prepaid expenses and other assets | 382 | (1,805) | 82 |
Accounts payable and accrued expenses | (2,709) | (5,983) | (11,096) |
Accrued compensation | (1,060) | 786 | |
Tenant security deposits | 494 | (509) | (2,458) |
Payment of deferred leasing commissions | (7,575) | (8,216) | (12,200) |
Net cash provided by operating activities | 17,866 | 15,234 | 36,362 |
Cash flows from investing activities: | |||
Property improvements, fixtures and equipment | (31,637) | (54,910) | (64,833) |
Consolidation of Sponsored REIT | 3,048 | (3,000) | |
Proceeds received from sales of properties | 142,225 | 128,949 | 573,307 |
Net cash provided by investing activities | 113,636 | 74,039 | 505,474 |
Cash flows from financing activities: | |||
Distributions to stockholders | (4,133) | (53,988) | (38,491) |
Proceeds received from termination of interest rate swap | 4,206 | ||
Stock repurchases | (4,843) | (18,244) | |
Borrowings under bank note payable | 77,000 | 90,000 | 91,500 |
Repayments of bank note payable | (35,000) | (42,000) | (95,000) |
Repayment of term loan payable | (50,000) | (110,000) | (445,000) |
Deferred financing costs | (2,327) | (2,561) | |
Net cash used in financing activities | (10,254) | (123,392) | (505,235) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 121,248 | (34,119) | 36,601 |
Cash, cash equivalents and restricted cash, beginning of year | 6,632 | 40,751 | 4,150 |
Cash, cash equivalents and restricted cash, end of period | 127,880 | 6,632 | 40,751 |
Cash paid for: | |||
Interest | 25,740 | 21,085 | 30,141 |
Taxes on income | 339 | 667 | 454 |
Non-cash investing and financing activities: | |||
Accrued dividend | 33,280 | ||
Accrued costs for purchase of real estate assets | 7,566 | $ 9,962 | $ 4,715 |
Investment in related party mortgage loan receivable converted to real estate assets and acquired real estate leases in conjunction with variable interest entity consolidation | $ 20,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization | |
Organization | 1. Organization Franklin Street Properties Corp. (“FSP Corp.” or the “Company”) holds, directly and indirectly, 100% of the interest in FSP Investments LLC, FSP Property Management LLC FSP Holdings LLC FSP Protective TRS Corp . FSP Property Management LLC provides asset management and property management services. The Company also has a non-controlling common stock interest in the corporation that is the sole member of FSP Monument Circle LLC, which corporation was organized to operate as a real estate investment trust (“Monument Circle” or the “Sponsored REIT”). As of December 31, 2023, the Company owned and operated a portfolio of real estate consisting of 17 operating properties, and the Sponsored REIT, which was consolidated effective January 1, 2023. The Company may pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, for geographic, property specific reasons or for other general corporate purposes. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for credit losses, purchase price allocations, impairment considerations and the valuation of derivatives. Variable Interest Entities (VIEs) The Company determines whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which the Company holds a, direct or indirect, variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. The Company makes judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. The Company analyzes any investments in VIEs to determine if the Company is the primary beneficiary. In evaluating whether the Company is the primary beneficiary, the Company evaluates its direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, the Company considers the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and considers that conclusion upon a reconsideration event. As of January 1, 2023, the Company’s relationship with the Sponsored REIT was considered a VIE and the Company became the primary beneficiary. Upon this reconsideration event, the entity is included within the Company’s consolidated financial statements and all intercompany accounts and transactions have been eliminated in consolidation. A gain on consolidation of approximately million held by Monument Circle was included in the Company’s cash and cash equivalents upon consolidation and is reflected as “Consolidation of Sponsored REIT” in the consolidated statement of cash flows. The cash and cash equivalents held by Monument Circle are unable to be utilized for the Company’s operational purposes. The creditors of Monument Circle’s trade payables do not have any recourse against the Company. The consolidation value of Monument Circle was allocated to real estate investments and leases, including lease origination costs. Lease origination costs represent the value associated with acquiring an in-place lease (i.e. the market cost to execute a similar lease, including leasing commission, legal, vacancy, and other related costs). The value assigned to building approximates the replacement cost; the value assigned to land approximates its appraised value; and the value assigned to leases approximate their fair value. Other assets and liabilities are recorded at their historical costs, which approximates fair value. The Company assessed the fair value of the acquired real estate leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 in the fair value hierarchy. The following table summarizes the estimated fair value of the assets acquired at the date of consolidation, January 1, 2023: (in thousands) Real estate assets $ 19,695 Value of acquired real estate leases 305 Total $ 20,000 The following is quantitative information about significant unobservable inputs in the Company’s Level 3 measurement of the assets acquired in the consolidation of Monument Circle and were measured at fair value on a nonrecurring basis at January 1, 2023: Fair Value (1) at Significant Range Weighted Description January 1, 2023 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Monument Circle Consolidation $ 20,000 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 9.50 % 9.50 % 9.50 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument. Prior to January 1, 2023, the Company’s relationship with the Sponsored REIT was considered a VIE in which the Company was not the primary beneficiary. The Company’s maximum exposure to losses associated with this VIE was limited to the principal amount outstanding under the loan from the Company to the Sponsored REIT secured by a mortgage on real estate owned by the Sponsored REIT (the “Sponsored REIT Loan”) net of the allowance for credit loss, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately million at December 31, 2022. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and were approximately million at December 31, 2022. The relationships and investments related to the Sponsored REIT are summarized in Note 3 Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. These indicators may include lower or declining tenant occupancy, weak or declining tenant profitability, cash flows or liquidity, the Company’s decision to dispose of an asset before the end of its estimated useful life or legislative, economic, or market changes that permanently reduce the value of the Company’s investment. If indicators of impairment are present, the Company evaluates the carrying value of the property by comparing it to its expected future undiscounted cash flow. A property’s value is impaired only if management’s estimate of future undiscounted cash flows to be generated by the property over its estimated holding period is less than the carrying value of the property. If there are different potential outcomes for a property, the Company will take a probability weighted approach to estimating future cash flows. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements, estimated holding periods and outcome probabilities that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. The Company did not recognize any impairment losses on any assets classified as held and used for the years ended December 31, 2023, 2022 and 2021. Acquired Real Estate Leases and Amortization Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from . Amortization of these combined components was approximately 31, 2023, 2022 and 2021, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 2,489 2025 1,718 2026 1,644 2027 389 2028 300 2029 and thereafter 154 Acquired Unfavorable Real Estate Leases and Amortization Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from . Amortization expense was approximately Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 42 2025 10 2026 8 2027 8 2028 6 2029 and thereafter 13 Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year . Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale (that do not represent a strategic shift that has, or will have, a major effect on financial results) in its consolidated statements of income through the date of sale. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents (1) $ 125,530 $ 3,739 Restricted cash 2,350 2,893 Total cash, cash equivalents and restricted cash $ 127,880 $ 6,632 (1) Includes $2,167 at December 31, 2023, pertaining to Monument Circle, which the Company is unable to utilize for its own operational purposes. Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid based on the terms of the closing agreement for the sale. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year . The Company recognizes the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income. Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives, related party mortgage loan receivable and accounts receivable. The Company maintains its cash balances principally in banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of provided by the Federal Deposit Insurance Corporation. The derivatives that the Company has are from interest rate swap agreements that are discussed in Note 5. The related party mortgage loan receivable is held with Sponsored REIT. The Company performs regular evaluations on the extent and impact of any credit deterioration that could affect the performance and value of the secured property, as well as the financial and operating capability of the borrower. The Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was 31, 2023, 2022 and 2021, respectively. Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately The estimated annual amortization for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 4,466 2025 3,914 2026 3,285 2027 2,883 2028 2,426 2029 and thereafter 6,690 Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases $ 103,716 $ 107,990 $ 148,705 Reimbursable expenses 42,311 49,736 54,825 Straight-line rent adjustment (626) 5,895 4,017 Amortization of favorable and unfavorable leases 45 118 34 $ 145,446 $ 163,739 $ 207,581 Related Party and Other Revenue - Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. Income Taxes Taxes on income for the years ended December 31, 2023, 2022 and 2021 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary, and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were December 31, 2023, 2022 and 2021. The denominator used for calculating basic and diluted net income per share was 103,357,000, 103,338,000 and 106,667,000 for the years ended December 31, 2023 2022 2021 Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recognized in other comprehensive income (“OCI”) and reclassified into the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs (See Notes 2, 3, 5 and 10) were considered and applied to the Company’s derivative instruments, Sponsored REIT Loan, Sponsored REIT purchase price allocation, and assets held for sale. Level 2 inputs were used to value the interest rate swaps and Level 3 inputs were used to value the Sponsored REIT Loan, assets acquired in the consolidation of the Sponsored REIT and the valuation of certain assets held for sale. Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. Recent Accounting Standards In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). ASU 2023-06 adds interim and annual disclosure requirements to GAAP at the request of the Securities and Exchange Commission. The guidance in ASU 2023-06 is required to be applied prospectively and the GAAP requirements will be effective when the removal of the related SEC disclosure requirements is effective. If the SEC does not act to remove its related requirement by June 30, 2027, any related FASB amendments will be removed from the Accounting Standards Codification and will not be effective. The Company does not anticipate that the adoption of ASU 2023-06 will have a material impact on the consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expense and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The guidance in ASU 2023-07 is applied retrospectively to all periods presented in the financial statements and is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2023-07 will have a material impact on the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures and disclosures about income taxes paid. The guidance in ASU 2023-09 should be applied prospectively but may be applied retrospectively for each period presented. ASU 2023-09 is effective for public entities for fiscal years beginning after December 15, 2024. The Company does not anticipate that the adoption of ASU 2023-09 will have a material impact on the consolidated financial statements |
Related Party Transactions and
Related Party Transactions and Investments in Non-Consolidated Entities | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Related Party Transactions and Investments in Non-Consolidated Entities | 3. Related Party Transactions and Investments in Non-Consolidated Entities Investment in Sponsored REITs The Company held a common stock interest in 1, 1 and 2 sponsored REITs at December 31, 2023, 2022 and 2021, respectively. The Company held a non-controlling preferred stock investment in Equity in income (loss) of investments in non-consolidated REITs were derived from the Company’s share of income or loss in the operations of those entities and includes gain or loss on liquidation. The Company exercised influence over, but did not control these entities, and investments were accounted for using the equity method. Equity in income of investment in non-consolidated REITs: The following table includes equity in income of investments in non-consolidated REITs: Year Ended December 31, (in thousands) 2021 Equity in income of East Wacker $ 421 Total $ 421 Equity in income of East Wacker was derived from the Company’s preferred stock investment in the entity. In December 2007, the Company purchased of the outstanding preferred shares, of East Wacker. On September 24, 2018, the property owned by East Wacker was sold at a gain. On October 6, 2021, the Company received a liquidating distribution of REITs on the consolidated statements of income. The following table includes distributions received from non-consolidated REITs: Year Ended December 31, (in thousands) 2021 Distributions from East Wacker $ 421 $ 421 Non-consolidated REITs At December 31, 2022, the Company held a non-controlling common stock interest in one Sponsored REIT. Management fees and interest income from loans: Asset management fees range from 1% to 5% of collected rents, and the applicable contracts are cancelable with 30 day notice. Prior to the consolidation of Monument Circle on January 1, 2023, the Company held the Sponsored REIT Loan, which was reported in the balance sheet as a related party mortgage loan receivable. The Company reviewed the need for an allowance under the current expected credit loss model for the Sponsored REIT Loan at each reporting period. The measurement of expected credit losses was based upon historical experiences, current conditions, and reasonable and supportable forecasts that affected the collectability of the reported amount. The Company had elected to apply the practical expedient for financial assets secured by collateral in instances where the borrower was experiencing financial difficulty and repayment of the Sponsored REIT Loan was expected to be provided substantially through operation or sale of the collateral. The Company used the fair value of the collateral at the reporting date and an adjustment to the allowance for expected credit losses was recorded when the amortized cost basis of the financial asset exceeded the fair value of the collateral, less costs to sell. The Company regularly evaluated the extent and impact of any credit deterioration that could affect performance and the value of the secured property, as well as the financial and operating capability of the borrower. A property’s operating results and existing cash balances were considered and used to assess whether cash flows from operations were sufficient to cover the current and future operating and debt service requirements. The Company also evaluated the borrower’s competency in managing and operating the secured property and considered the overall economic environment, real estate sector and geographic sub-market in which the secured property was located. The Company applied normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. The Company recognized interest income and fees from the Sponsored REIT Loan of approximately $0.0 million, $1.8 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. On October 29, 2021, the Company agreed to amend and restate the Sponsored REIT Loan to extend the maturity date from December 6, 2022 to June 30, 2023 and to advance an additional $3.0 million tranche of indebtedness to FSP Monument Circle LLC with the same June 30, 2023 maturity date, effectively increasing the aggregate principal amount of the Sponsored REIT Loan from $21 million to $24 million. In addition, the Company agreed to defer all principal and interest payments due under the Sponsored REIT Loan until the maturity date. As part of its consideration for agreeing to amend and restate the Sponsored REIT Loan, the Company obtained from the stockholders of the parent of Monument Circle the right to vote their shares in favor of any sale of the property owned by Monument Circle any time on or after January 1, 2023. The amended and restated Sponsored REIT Loan qualified as a troubled debt restructuring. There were commitments to lend additional funds to the Sponsored REIT. On June 26, 2023, the Sponsored REIT Loan maturity was extended to September 30, 2023. On September 26, 2023, the Sponsored REIT Loan maturity was extended to September 30, 2024. As of December 31, 2021 and 2020, the Company did not have an allowance for credit losses recorded on the consolidated balance sheet. The Company recorded a year ended December 31, 2022. The change in the allowance for credit losses during the year ended December 31, 2022 is primarily due to the deterioration within the current real estate market, changes to key assumptions applied within the Company’s financial model to reflect these market changes, such as the exit capitalization and discount rates, and due to an increase in the accrued interest receivable balance. The Company recorded a million decrease in its provision for credit losses during the year ended December 31, 2023. The change in the allowance for credit losses during the year ended December 31, 2023 is due to the consolidation of Monument Circle. The following table presents a roll-forward of the Company’s allowance for credit losses. For the Year Ended December 31, (In thousands) 2023 2022 2021 Beginning allowance for credit losses $ (4,237) $ — $ — Additional increases to the allowance for credit losses — (4,237) — Reductions to the allowance for credit losses 4,237 — Ending allowance for credit losses $ — $ (4,237) $ — The following is quantitative information about significant unobservable inputs in our Level 3 measurement of the collateral of the Sponsored REIT Loan measured at fair value on a nonrecurring basis at December 31, 2022: Fair Value (1) at Significant Range Weighted Description December 31, 2022 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Sponsored REIT Loan $ 19,763 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 9.50 % 9.50 % 9.50 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument. |
Bank Note Payable, Term Loans P
Bank Note Payable, Term Loans Payable and Senior Notes | 12 Months Ended |
Dec. 31, 2023 | |
Bank Note Payable, Term Note Payable and Private Placements | |
Bank Note Payable, Term Note Payable and Private Placements | 4. Bank Note Payable, Term Note Payable and Private Placements JPM Term Loan On August 2, 2018, the Company entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender (“JPMorgan”), and the other lending institutions party thereto (the “JPM Credit Agreement”), which provides a single unsecured bridge loan in the aggregate principal amount of $150 million (the “JPM Term Loan”). On December 24, 2020 the Company repaid a million remained fully advanced and outstanding under the JPM Term Loan. On June 4, 2021, the Company repaid the remaining Although the interest rate on the JPM Term Loan was variable under the JPM Credit Agreement, the Company fixed the LIBOR-based rate on a portion of the JPM Term Loan by entering into interest rate swap transactions. On March 7, 2019, the Company entered into ISDA Master Agreements with various financial institutions to hedge a $100 million portion of the future LIBOR-based rate risk under the JPM Credit Agreement. Effective March 29, 2019, the Company fixed the LIBOR-based rate at million portion of the JPM Term Loan until November 30, 2021. On June 4, 2021, the Company paid approximately million to terminate the interest rate swap, which was scheduled to mature on November 30, 2021. BMO Term Loan On February 10, 2023, the Company entered into a First Amendment to the Second Amended and Restated Credit Agreement with the lending institutions party thereto and Bank of Montreal, as administrative agent (the “BMO First Amendment”). The BMO First Amendment amended the Second Amended and Restated Credit Agreement, dated September 27, 2018, among the Company and the lending institutions party thereto (as amended by the BMO First Amendment, the “BMO Credit Agreement”) to, among other things, extend the maturity date from January 31, 2024 to October 1, 2024 and change the interest rate from a number of basis points over LIBOR depending on the Company’s credit rating to million (the “BMO Term Loan”). Subsequent to December 31, 2023, on February 21, 2024, the BMO Credit Agreement was further amended. See Note 11 in these Consolidated Financial Statements for additional disclosure regarding the amendment. Unless otherwise indicated, all of the information in this description of the BMO Term Loan is as of December 31, 2023 and does not reflect the terms of the amendment that we entered into on February 21, 2024. In connection with the BMO First Amendment, the Company repaid a million principal amount remained outstanding. On August 10, 2023, the Company repaid an additional million principal amount remained outstanding under the BMO Term Loan as of December 31, 2023. On or before April 1, 2024, the Company is required to repay an additional million of the BMO Term Loan. The remaining balance of the BMO Term Loan matures on October 1, 2024. Effective February 10, 2023 upon entering into the BMO First Amendment, the BMO Term Loan bears interest at either (i) 300 basis points over one three basis points over the base rate. Prior to February 10, 2023, the BMO Term Loan bore interest at either (i) a number of basis points over LIBOR depending on the Company’s credit rating ( basis points over the base rate at December 31, 2022). As of December 31, 2023, the interest rate on the BMO Term Loan was 8.47% per annum. The weighted average variable interest rate on all amounts outstanding under the BMO Term Loan from February 8, 2023, which is when the Company terminated its outstanding interest rate swaps applicable to the BMO Term Loan as described below, through December 31, 2023 was approximately per annum. Although the interest rate on the BMO Term Loan is variable under the BMO Credit Agreement, the Company fixed the base LIBOR interest rate that previously applied to the BMO Term Loan by entering into interest rate swap transactions. On February 20, 2019, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BMO Term Loan at 2.39% per annum for the period beginning on August 26, 2020 and ending January 31, 2024. Accordingly, based upon the Company’s credit rating, as of both December 31, 2022 and February 8, 2023, the effective interest rate on the BMO Term Loan was per annum. On February 8, 2023, the Company terminated all outstanding interest rate swaps applicable to the BMO Term Loan and, on February 10, 2023, the Company received an aggregate of approximately million related to interest receivable. The BMO Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments and repurchases and redemptions of the Company’s common stock; going concern qualifications to the Company’s financial statements; and the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. In addition, the BMO Credit Agreement also restricts the Company’s ability to make quarterly dividend distributions that exceed per share of the Company’s common stock; provided, however, that notwithstanding such restriction, the Company is permitted to make dividend distributions based on the Company’s good faith estimate of projected or estimated taxable income or otherwise as necessary to retain the Company’s status as a real estate investment trust, to meet the distribution requirements of Section 857 of the Internal Revenue Code or to eliminate any income or excise taxes to which the Company would otherwise be subject. The BMO Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a maximum secured recourse leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BMO Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BMO Credit Agreement). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BMO Credit Agreement immediately due and payable, terminate the lenders’ commitments to make loans under the BMO Credit Agreement, and enforce any and all rights of the lenders or administrative agent under the BMO Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the BMO Term Loan financial covenants as of December 31, 2023. BofA Revolver On February 10, 2023, the Company entered into a First Amendment to Credit Agreement with Bank of America, N.A., as administrative agent, a letter of credit issuer and a lender (“BofA”), and the other lending institutions party thereto (the “BofA First Amendment”), for a revolving line of credit for borrowings, at the Company’s election, of up to $150 million (the “BofA Revolver”). The BofA First Amendment amended the Credit Agreement, dated January 10, 2022, among the Company and the lending institutions party thereto (as amended by the BofA First Amendment, the “BofA Credit Agreement”) to, among other things, extend the maturity date from January 12, 2024 to October 1, 2024, reduce availability for borrowings, at the Company’s election, from up to basis points over SOFR. Subsequent to December 31, 2023, on February 21, 2024, the BofA Credit Agreement was further amended. See Note 11 in these Consolidated Financial Statements for additional disclosure regarding the amendment. Unless otherwise indicated, all of the information in this description of the BofA Revolver is as of December 31, 2023 and does not reflect the terms of the amendment that we entered into on February 21, 2024. Borrowings made under the BofA Revolver may be revolving loans or letters of credit, the combined sum of which may not exceed million. As of December 31, 2023 there were borrowings of million that the Company borrowed on February 10, 2023 to repay a portion of the BMO Term Loan. Borrowings made pursuant to the BofA Revolver may be borrowed, repaid and reborrowed from time to time until the maturity date on October 1, 2024. Effective February 10, 2023 upon entering into the BofA First Amendment, the BofA Revolver bears interest at 300 basis points over either (i) the daily simple SOFR, plus an adjustment of 0.11448%, or (ii) one three , respectively. In addition, under certain circumstances, such as if SOFR was not able to be determined, the BofA Revolver will instead bear interest at basis points over the base rate. Prior to February 10, 2023, borrowings under the BofA Revolver bore interest at a margin over either (i) the daily simple SOFR, plus an adjustment of one three per annum and, if applicable, letter of credit fees. Prior to February 10, 2023, the Company was also obligated to pay an annual facility fee and, if applicable, letter of credit fees in amounts that were also based on the Company’s leverage ratio. The previous facility fee was assessed against the aggregate amount of lender commitments regardless of usage ( As of December 31, 2023, the interest rate on the BofA Revolver was 8.47% per annum. The weighted average variable interest rate on all amounts outstanding under the BofA Revolver through December 31, 2023 was approximately per annum. The BofA Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, use of proceeds, the amount of cash and cash equivalents that the Company can have on its balance sheet after giving effect to an advance under the BofA Revolver, repurchases and redemptions of the Company’s common stock, going concern qualifications to the Company’s financial statements, and the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BofA Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a maximum secured recourse leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio and a minimum unsecured interest coverage ratio. The BofA Credit Agreement also restricts the Company’s ability to make quarterly dividend distributions that exceed per share of the Company’s common stock; provided, however, that notwithstanding such restriction, the Company is permitted to make dividend distributions based on the Company’s good faith estimate of projected or estimated taxable income or otherwise as necessary to retain the Company’s status as a real estate investment trust, to meet the distribution requirements of Section 857 of the Internal Revenue Code or to eliminate any income or excise taxes to which the Company would otherwise be subject. The Company was in compliance with the BofA Revolver financial covenants as of December 31, 2023. The BofA Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with the provisions of the BofA Credit Agreement, certain cross defaults and a change in control of the Company (as defined in the BofA Credit Agreement). In the event of a default by the Company, BofA, in its capacity as administrative agent, may, and at the request of the requisite number of lenders shall, declare all obligations under the BofA Credit Agreement immediately due and payable and enforce any and all rights of the lenders or BofA under the BofA Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, all outstanding obligations of the Company will become immediately due and payable. The Company may use the net proceeds of the BofA Revolver for permitted investments, working capital and other general business purposes, including for building improvements, tenant improvements and leasing commissions, in each case to the extent permitted under the BofA Credit Agreement. Former BofA Credit Facility On July 21, 2016, the Company entered into a First Amendment (the “BofA First Amendment”), and on October 18, 2017, the Company entered into a Second Amendment (the “BofA Second Amendment”), to the Second Amended and Restated Credit Agreement dated October 29, 2014 among the Company, the lending institutions party thereto and BofA, as administrative agent, L/C Issuer and Swing Line Lender (as amended by the BofA First Amendment and the BofA Second Amendment, the “Former BofA Credit Facility”) that continued an existing unsecured revolving line of credit (the “Former BofA Revolver”) and an existing term loan (the “Former BofA Term Loan”). Effective simultaneously with the closing of the BofA Credit Facility on January 10, 2022, the Company delivered a notice to BofA terminating the aggregate lender commitments under the Former BofA Revolver in their entirety. For purposes of the Former BofA Credit Facility, base rate meant, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2022, the Company’s credit rating from Moody’s Investors Service was Ba1. As of December 31, 2021, and during 2022, there were no borrowings under the Former BofA Revolver. The weighted average interest rate on all amounts outstanding on the Former BofA Revolver during the year ended December 31, 2021 was approximately per annum. Former BofA Term Loan Highlights ● The Former BofA Term Loan was repaid in its entirety on September 6, 2022. ● The original principal amount of the Former BofA Term Loan was $400 million. On September 30, 2021, the Company repaid a $90 million portion and on October 25, 2021, the Company repaid a $200 million portion of the Former BofA Term Loan and incurred a loss on extinguishment of debt of $0.7 million related to unamortized deferred financing costs. On September 6, 2022, the Company prepaid the remaining $110 million balance of the Former BofA Term Loan in full and incurred a loss on extinguishment of debt of $0.1 million related to unamortized deferred financing costs. As of December 31, 2022, there was no balance outstanding under the Former BofA Term Loan. The Former BofA Term Loan bore interest at either (i) a margin over LIBOR depending on the Company’s credit rating (1.75% over LIBOR at the date of repayment on September 6, 2022) or (ii) a margin over the base rate depending on the Company’s credit rating (0.75% over the base rate at the date of repayment on September 6, 2022). The interest rate on the Former BofA Term Loan was variable through the date of repayment on September 6, 2022. Previously the Company had fixed the base LIBOR interest rate on the Former BofA Term Loan by entering into interest rate swap transactions. On July 22, 2016, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the Former BofA Term Loan at per annum for the period beginning on September 27, 2017 and ended on September 27, 2021. The weighted average variable interest rate on all amounts outstanding under the Former BofA Term Loan through the date of repayment on September 6, 2022, was approximately per annum. Based upon the Company’s credit rating, as of December 31, 2021, the interest rate on the Former BofA Term Loan was per annum. The weighted average variable interest rate on all amounts outstanding under the Former BofA Term Loan after the expiration of the interest rate swaps, on September 27, 2021, during the period from September 28 through December 31, 2021, was approximately per annum. Senior Notes On October 24, 2017, the Company entered into a note purchase agreement (the “Note Purchase Agreement”) with the various purchasers named therein (the “Purchasers”) in connection with a private placement of senior unsecured notes. Under the Note Purchase Agreement, the Company agreed to sell to the Purchasers an aggregate principal amount of $200 million of senior unsecured notes consisting of (i) Series A Senior Notes due December 20, 2024 in an aggregate principal amount of $116 million (the “Series A Notes”) and (ii) Series B Senior Notes due December 20, 2027 in an aggregate principal amount of $84 million (the “Series B Notes,” and, together with the Series A Notes, the “Senior Notes”). On December 20, 2017, the Senior Notes were funded and the proceeds were used to reduce the outstanding balance of the Former BofA Revolver. Subsequent to December 31, 2023, on February 21, 2024, the Note Purchase Agreement was further amended. See Note 11 in these Consolidated Financial Statements for additional disclosure regarding the amendment. Unless otherwise indicated, all of the information in this description of the Senior Notes is as of December 31, 2023 and does not reflect the terms of the amendment that we entered into on February 21, 2024. The Senior Notes bear interest depending on the Company’s credit rating. As of December 31, 2023, the Series A Notes bore interest at 4.49% per annum and the Series B Notes bear interest at 4.76% per annum. The Note Purchase Agreement contains customary financial covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, and a maximum unencumbered leverage ratio. The Note Purchase Agreement also contains restrictive covenants that, among other things, restrict the ability of the Company and its subsidiaries to enter into transactions with affiliates, merge, consolidate, create liens, make certain restricted payments, enter into certain agreements or prepay certain indebtedness. Such financial and restrictive covenants are substantially similar to the corresponding covenants contained in the BofA Credit Agreement and the BMO Credit Agreement. The Senior Notes financial covenants require, among other things, the maintenance of a fixed charge coverage ratio of at least 1.50; a maximum leverage ratio and an unsecured leverage ratio of no more than 60% (65% if there were a significant acquisition for a short period of time). In addition, the Note Purchase Agreement provides that the Note Purchase Agreement will automatically incorporate additional financial and other specified covenants (such as limitations on investments and distributions) that are effective from time to time under the existing credit agreements, other material indebtedness or certain other private placements of debt of the Company and its subsidiaries. The Note Purchase Agreement contains customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of covenants and bankruptcy events. In the case of an event of default, the Purchasers may, among other remedies, accelerate the payment of all obligations. The Company was in compliance with the Senior Notes financial covenants as of December 31, 2023. |
Financial Instruments_ Derivati
Financial Instruments: Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments: Derivatives and Hedging | |
Financial Instruments: Derivatives and Hedging | 5. Financial Instruments: Derivatives and Hedging On July 22, 2016, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning on September 27, 2017 and ended on September 27, 2021 on the Former BofA Term Loan (the “2017 Interest Rate Swap”). On March 7, 2019, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning on March 29, 2019 and ended on November 30, 2021 on a million portion of the JPM Term Loan (the “2019 JPM Interest Rate Swap”). On February 20, 2019, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning August 26, 2020 and ending January 31, 2024 on the BMO Term Loan (the “2019 BMO Interest Rate Swap”). The variable rates that were fixed under the 2019 BMO Interest Rate Swap is described in Note 4. On February 8, 2023, the Company terminated the 2019 BMO Interest Rate Swap applicable to the BMO Term Loan and, on February 10, 2023, the Company received an aggregate of approximately million related to interest receivable. The variable rates that were fixed under the 2017 Interest Rate Swap, the 2019 JPM Interest Rate Swap and the 2019 BMO Interest Rate Swap (collectively referred to as the “Interest Rate Swaps”) are described in Note 4. As of December 31, 2023, there were On June 4, 2021, the Company paid approximately $1.2 million to terminate the 2019 JPM Interest Rate Swap that was scheduled to mature on November 30, 2021 and approximately $0.6 million to terminate a portion of the 2019 BMO Interest Rate Swap that was scheduled to mature on November 30, 2021. As a result of the terminations, approximately million of the balance held in accumulated other comprehensive income (loss) was reclassified into earnings. The JPM Term Loan and a portion of the BMO Term Loan related to these interest rate swaps was also repaid on June 4, 2021, which is described in Note 4. The Interest Rate Swaps qualified as cash flow hedges and have been recognized on the consolidated balance sheets at fair value. If a derivative qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings, which may increase or decrease reported net income and stockholders’ equity prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. The following table summarizes the notional and fair value of the Company’s derivative financial instrument at December 31, 2022. The notional value is an indication of the extent of the Company’s involvement in this instrument at that time, but does not represent exposure to credit, interest rate or market risks. Notional Strike Effective Expiration Fair Value (1) at (in thousands) Value Rate Date Date December 31, 2023 December 31, 2022 2019 BMO Interest Rate Swap $ 165,000 2.39 % Aug-20 Jan-24 $ — $ 4,358 (1) Classified within Level 2 of the fair value hierarchy. The 2019 BMO Interest Rate Swap was reported as an asset with a fair value of approximately $4.4 million at December 31, 2022. The balance is included in other assets: derivative asset in the consolidated balance sheet at December 31, 2022. The gain/(loss) on the Company’s Interest Rate Swaps that was recorded in OCI and the accompanying consolidated statements of income as a component of interest expense for the years ended December 31, 2023, 2022 and 2021, respectively, was as follows: (in thousands) Year Ended December 31, Interest Rate Swaps in Cash Flow Hedging Relationships: 2023 2022 2021 Amounts of gain recognized in OCI $ 177 $ 8,451 $ 3,786 Amounts of previously recorded gain (loss) reclassified from OCI into Interest Expense $ 4,180 $ (1,146) $ (8,286) Total amount of Interest Expense presented in the consolidated statements of operations $ 24,318 $ 22,808 $ 32,273 Over time, the unrealized gains and losses held in accumulated other comprehensive income will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that approximately The Company hedged the exposure to variability in anticipated future interest payments on existing debt. The BMO Term Loan, Former BofA Term Loan and JPM Term Loan hedging transactions used derivative instruments that involved certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates would cause a significant loss of basis in either or both of the contracts. The Company required its derivatives contracts to be with counterparties that have investment grade ratings. As a result, the Company did not anticipate that any counterparty would fail to meet its obligations. However, there was no assurance that the Company would be able to adequately protect against the foregoing risks or that it would ultimately realize an economic benefit that exceeded the related amounts incurred in connection with engaging in such hedging strategies. The fair value of the Company’s derivative instruments are determined using the net discounted cash flows of the expected cash flows of the derivative based on the market based interest rate curve and are adjusted to reflect credit or nonperformance risk. The risk is estimated by the Company using credit spreads and risk premiums that are observable in the market. These financial instruments were classified within Level 2 of the fair value hierarchy and were classified as an asset or liability on the consolidated balance sheets. The Company’s derivatives are recorded at fair value in other assets: derivative asset and other liabilities: derivative liability in the consolidated balance sheets and the effective portion of the derivatives’ fair value is recorded to other comprehensive income in the consolidated statements of other comprehensive income (loss). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | 6. Stockholders’ Equity Equity-Based Compensation On May 20, 2002, the stockholders of the Company approved the 2002 Stock Incentive Plan (the “Plan”). The Plan is an equity-based incentive compensation plan, and provides for the grants of up to a maximum of 2,000,000 shares of the Company’s common stock (“Awards”). All of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted Awards. Awards under the Plan are made at the discretion of the Company’s Board of Directors, and have no vesting requirements. Upon granting an Award, the Company will recognize compensation cost equal to the fair value of the Company’s common stock, as determined by the Company’s Board of Directors, on the date of the grant. On May 18, 2023, May 17,2022 and May 20, 2021, the Company granted shares under the Plan to non-employee directors at a compensation cost related to such grants indicated in the table below, which was recognized during the years ended December 31, 2023, 2022 and 2021, respectively, and is included in general and administrative expenses in the consolidated statements of income. Such shares were fully vested on the date of issuance. Shares Available Compensation for Grant Cost Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 1,012,500 Shares granted 2022 (84,133) 393,750 Balance December 31, 2022 1,696,687 $ 1,406,250 Shares granted 2023 (194,439) 314,991 Balance December 31, 2023 1,502,248 $ 1,721,241 Repurchase of Common Stock On June 23, 2021, the Board of Directors of the Company authorized the repurchase of up to $50 million of the Company’s common stock from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. The repurchase authorization may be suspended or discontinued at any time. The Company repurchased 3,396,243 shares of common stock during the third and fourth quarter of 2021 at an aggregate cost of approximately $18.2 million and at an average cost of approximately $5.37 per share, inclusive of brokerage commissions. The Company repurchased 846,739 shares of common stock during the first quarter of 2022 at an aggregate cost of approximately $4.8 million and at an average cost of approximately $5.72 per share, inclusive of brokerage commissions. The Company did not repurchase any shares of common stock during the remainder of 2022 or in 2023. On February 10, 2023, the Company announced it had discontinued the previous repurchase authorization made on June 23, 2021. The excess of the purchase price over the par value of the shares repurchased is applied to reduce additional paid-in capital. A summary of the repurchase of common stock by the Company is shown in the following table: (Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 $ 37,019 Repurchase of shares 846,739 4,843 Balance, December 31, 2022 5,260,480 $ 41,862 |
Federal Income Tax Reporting
Federal Income Tax Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Federal Income Tax Reporting | |
Federal Income Tax Reporting | 7. Federal Income Tax Reporting General The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, the Company generally is entitled to a tax deduction for distributions paid to its shareholders, thereby effectively subjecting the distributed net income of the Company to taxation at the shareholder level only. The Company must comply with a variety of restrictions to maintain its status as a REIT. These restrictions include the type of income it can earn, the type of assets it can hold, the number of shareholders it can have and the concentration of their ownership, and the amount of the Company’s taxable income that must be distributed annually. One such restriction is that the Company generally cannot own more than 10% of the voting power or value of the securities of any one issuer unless the issuer is itself a REIT or a taxable REIT subsidiary (“TRS”). In the case of TRSs, the Company’s ownership of securities in all TRSs generally cannot exceed real estate assets, cannot exceed 25% of the value of all of the Company’s assets. FSP Investments LLC and FSP Protective TRS Corp. are the Company’s taxable REIT subsidiaries operating as taxable corporations under the Code. The TRSs have gross amounts of net operating losses (“NOLs”) available to those taxable corporations of million as of December 31, 2023 and 2022, respectively. The NOLs created prior to 2018 will expire between 2030 and 2047 and the NOLs generated after 2017 will not expire. A valuation allowance is provided for the full amount of the NOLs as the realization of any tax benefits from such NOLs is not assured. Income taxes are recorded based on the future tax effects of the difference between the tax and financial reporting bases of the Company’s assets and liabilities. In estimating future tax consequences, potential future events are considered except for potential changes in income tax law or in rates. The Company adopted an accounting pronouncement related to uncertainty in income taxes effective January 1, 2007, which did not result in recording a liability, nor was any accrued interest and penalties recognized with the adoption. Accrued interest and penalties will be recorded as income tax expense if the Company records a liability in the future. The Company’s effective tax rate was not affected by the adoption. The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The statute of limitations for the Company’s income tax returns is generally The Company is subject to a business tax known as the Revised Texas Franchise Tax. Some of the Company’s leases allow reimbursement by tenants for these amounts because the Revised Texas Franchise Tax replaces a portion of the property tax for school districts. Because the tax base on the Revised Texas Franchise Tax is derived from an income based measure, it is considered an income tax. The Company recorded a provision for the Revised Texas Franchise Tax of million for the years ended December 31, 2023, 2022 and 2021, respectively. Net operating losses Section 382 of the Code restricts a corporation’s ability to use net operating losses (“NOLs”) to offset future taxable income following certain “ownership changes.” Such ownership changes occurred with past mergers and accordingly a portion of the NOLs incurred by the Company’s prior sponsored REITs available for use by the Company in any particular future taxable year will be limited. To the extent that the Company does not utilize the full amount of the annual NOLs limit, the unused amount may be carried forward to offset taxable income in future years. NOLs expire 20 years after the year in which they arise, and the last of the Company’s NOLs will expire in 2027. Approximately million of NOLs expired in 2021. The Company used approximately million of valuation allowances were reversed in 2021. A valuation allowance is provided for the full amount of the gross NOLs available as the realization of any tax benefits remaining from such NOLs is not assured. The gross amount of NOLs available to the Company was approximately million as of December 31, 2023 and 2022, respectively, with full valuation allowances. Income Tax Expense The income tax expense reflected in the consolidated statements of income relates primarily to state income taxes as a result of some states that limit the use of net operating losses, which are in Other Taxes, and to a lesser extent, the Revised Texas Franchise Tax. FSP Protective TRS Corp. provides taxable services to tenants at some of the Company’s properties. For the Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Revised Texas Franchise Tax $ 279 $ 239 $ 234 Other Taxes — (35) 404 Tax expense $ 279 $ 204 $ 638 Taxes on income are a current tax expense. No deferred income taxes were provided as there were no material temporary differences between the financial reporting basis and the tax basis of the TRSs. At December 31, 2023, the Company’s net tax basis of its real estate assets is more than the amount set forth in the Company’s consolidated balance sheets by $144.4 million and at December 31, 2022, the Company’s net tax basis of its real estate assets is more than the amount set forth in the Company’s consolidated balance sheets by $156.7 million. Tax Components The following summarizes the tax components of the Company’s common distributions paid per share for the years ended December 31, 2023, 2022 and 2021: 2023 2022 2021 Per Share % Per Share % Per Share % Ordinary income $ — — % $ — — % $ — — % Capital gain — — % 0.14 70 % 0.68 100 % Return of capital 0.04 100 % 0.06 30 % — — % Total $ 0.04 100 % $ 0.20 100 % $ 0.68 100 % |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 8. Leases Leases as a Lessee: The Company entered into a noncancelable contract with a third party to obtain office space that commenced on September 1, 2010. The contract was amended on October 25, 2016 to extend the contract through September 30, 2024. As of December 31, 2023, the Company’s right-of-use asset was $0.3 million, which is included in prepaid and other assets on the consolidated balance sheet as of December 31, 2023. A discount rate equal to the Company’s incremental borrowing rate was applied to the future monthly contractual lease payments remaining as of December 31, 2023 to compute the lease liability. The incremental borrowing rate is the rate equal to the closest borrowing under the BofA Revolver at the time of the Company’s adoption of ASU 2016-02. Lease Costs For the Year Ended December 31, (in thousands) 2023 2022 2021 Operating lease cost $ 419 $ 419 $ 419 $ 419 $ 419 $ 419 Other information Cash paid for amounts included in the measurement of lease liabilities $ 447 $ 438 $ 429 Weighted average remaining lease terms in years - operating leases 0.75 1.75 2.75 Weighted average discount rate - operating leases 3.86% 3.86% 3.86% Maturity analysis for liabilities Total Undiscounted (in thousands) Cash Flows Discount rate at commencement 3.86% 2024 $ 340 $ 340 Present value lease liability $ 334 Difference between undiscounted cash flows and discounted cash flows $ 6 Leases as a Lessor: The Company is a lessor of commercial real estate with operations that include the leasing of office and industrial properties. Many of the leases with customers contain options to extend leases at a fair market rate and may also include options to terminate leases. The Company considers several inputs when evaluating the amount it expects to derive from its leased assets at the end of the lease terms, such as the remaining useful life, expected market conditions, fair value of lease payments, expected fair values of underlying assets, and expected deployment of the underlying assets. The Company’s strategy to address its risk for the residual value in its commercial real estate is to re-lease the commercial space. The Company has elected to apply the practical expedient to not separate non-lease components from the related lease component of real estate leases. This combined component is primarily comprised of fixed lease payments, early termination fees, common area maintenance cost reimbursements, and parking lease payments. The Company applies ASC 842, Leases, to the combined lease and non-lease components. For the years ended December 31, 2023, 2022 and 2021, the Company recognized the following amounts of income relating to lease payments: Income relating to lease payments: For the Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases (1) $ 146,027 $ 157,719 $ 203,530 $ 146,027 $ 157,719 $ 203,530 Undiscounted Cash Flows Year ending (in thousands) December 31, 2024 86,936 2025 78,662 2026 70,489 2027 60,660 2028 54,527 2029 and thereafter 162,594 $ 513,868 (1) Includes amounts recognized from variable lease payments of $42,311, $49,730 and $54,825 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Plan | |
Retirement Plan | 9. Retirement Plan In 2006, the Company established a 401(k) plan to cover eligible employees, which permitted deferral of up to $17,000 per year (indexed for inflation) into the 401(k) plan, subject to certain limitations imposed by the Internal Revenue Code. An employee’s elective deferrals are immediately vested upon contribution to the 401(k) plan. The Company matches employee contributions to the 401(k) plan dollar for dollar up to 3% of each employee’s annual compensation up to $200,000. In addition, we may elect to make an annual discretionary profit-sharing contribution. The Company’s total contribution under the 401(k) plan amounted to $0.1 million, $0.1 million and $0.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Dispositions of Property
Dispositions of Property | 12 Months Ended |
Dec. 31, 2023 | |
Dispositions of Property | |
Dispositions of properties | 10. Dispositions of Property In 2021, the Company determined that further debt reduction would provide greater financial flexibility and potentially increase shareholder value. Accordingly, the Company adopted a strategy to dispose of certain properties where it believes valuation potential has been reached. In 2023, the Company sold one office property located in Elk Grove, Illinois on March 10, 2023, for a sales price of $29.1 million, at a gain of approximately $8.4 million. The Company used the proceeds of the disposition principally to repay a portion of outstanding indebtedness. The Company sold square feet of land at the Company’s Addison, Texas property to the Town of Addison as part of a road revitalization project. During the three months ended September 30, 2023, the Company reclassified $96.4 million of its office properties in Miami, Florida and Atlanta, Georgia as assets held for sale as of September 30, 2023. The Company recorded these properties at the fair value less cost to sell, which was less than the carrying value and resulted in an impairment of million in the three months ended September 30, 2023. The reclassification was a non-cash investing activity on the statement of cash flows. The Company estimated the fair value of these properties, less estimated costs to sell, using the offers to purchase the properties made by third parties (Level 3 inputs, as there is no active market). During the three months ended September 30, 2023, the Company entered into an agreement to sell a property in Plano, Texas for a gross sales price of approximately $48.0 million at an expected gain of $10.6 million. The Company reclassified million of this office property as an asset held for sale as of September 30, 2023. The reclassification was a non-cash investing activity on the statement of cash flows. On October 26, 2023, the Company completed the sale of the property located in Plano, Texas for a sales price of million. On December 6, 2023, the Company sold another of the assets held for sale, an office property located in Miami, Florida for a sales price of million. The asset held for sale located in Atlanta, Georgia, was expected to sell for a sales price of $40.0 million at a loss of approximately $20.5 million, which was recorded as an impairment as of September 30, 2023, however on November 15, 2023, the Company received notice from the buyer indicating that the buyer was terminating the transaction and directing the deposit and interest be disbursed to the Company. At December 31, 2023, the office property remained classified on the consolidated balance sheet as an asset held for sale in the amount of million of deferred leasing commissions, net of accumulated amortization. The Company expects the property will be sold within the next twelve months. During the three months ended September 30, 2023, the Company entered into a purchase and sale agreement, which was subsequently amended, to sell a property located in Richardson, Texas for a sales price of $35.0 million. During the three months ended December 31, 2023, the Company recorded this property at the fair value less cost to sell, which was less than the carrying value and resulted in an impairment of million. The Company reclassified In 2022, the Company sold two office properties located in Broomfield, Colorado on August 31, 2022 for an aggregate sales price of $102.5 million, at a gain of approximately $24.1 million. The Company sold an office property located in Evanston, Illinois on December 28, 2022 for a sales price of million. The Company used the proceeds of the dispositions principally to repay outstanding indebtedness. In 2021, the Company sold three office properties located in Atlanta, Georgia on May 27, 2021 for an aggregate sales price of approximately $219.5 million, at a net gain of approximately $22.8 million. The Company also sold an office property in Dulles, Virginia on June 29, 2021 for a sales price of approximately million. The Company sold an office property located in Indianapolis, Indiana on August 31, 2021 for a sales price of approximately million. The Company sold million. The Company sold an office property in Atlanta, Georgia on October 22, 2021, for a sales price of approximately million. The Company sold million. The Company concluded the dispositions did not represent a strategic shift and reports the results of operations of its properties in its consolidated statements of operations, which includes rental income, rental operating expenses, real estate taxes and insurance and depreciation and amortization. The operating results for the properties that the Company disposed of or classified as assets held for sale are summarized below: Year ended December 31, (in thousands) 2023 2022 2021 Rental revenue $ 27,157 $ 43,025 $ 84,179 Rental operating expenses (8,449) (13,256) (23,547) Real estate taxes and insurance (4,103) (10,228) (17,150) Depreciation and amortization (7,206) (14,656) (27,025) Income from dispositions and assets held for sale $ 7,399 $ 4,885 $ 16,457 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 11. Subsequent Events On January 12, 2024, the Board of Directors of the Company declared a cash distribution of $0.01 per share of common stock payable on February 15, 2024 to stockholders of record on January 26, 2024. On January 26, 2024, the Company sold a property located in Richardson, Texas for $35 million at a loss of approximately $2.1 million, which was recorded as an impairment as of December 31, 2023. On February 21, 2024, the Company amended the BofA Revolver (now known as the “BofA Term Loan”) by entering into a Second Amendment to Credit Agreement with the lending institutions party thereto (the “BofA Second Amendment”). The BofA Second Amendment amended the Credit Agreement dated January 10, 2022 (the “Original BofA Credit Agreement”), as amended by the First Amendment to Credit Agreement dated February 10, 2023 (the “BofA First Amendment”), to, among other things: (1) extend the maturity date from October 1, 2024 to April 1, 2026; (2) convert borrowings from being either revolving loans or letters of credit to a term loan; (3) change the interest rate from x. On February 21, 2024, as part of the BofA Second Amendment, the Company repaid an approximately On February 21, 2024, the Company amended the BMO Term Loan by entering into a Second Amendment to Second Amended and Restated Credit Agreement with Bank of Montreal and the other lending institutions party thereto (the “BMO Second Amendment”). The BMO Second Amendment amended the Second Amended and Restated Credit Agreement dated September 27, 2018 (the “Original BMO Credit Agreement”), as amended by the First Amendment to Second Amended and Restated Credit Agreement dated February 10, 2023 (the “BMO First Amendment”), to, among other things: (1) extend the maturity date from October 1, 2024 to April 1, 2026; (2) change the interest rate from either provide that, if, as of March 31, 2025, the aggregate principal amount outstanding under the BMO Term Loan, the BofA Term Loan and the Senior Notes exceeds $200 million, the spread over SOFR or the base rate, as applicable, will permanently increase by 100 basis points from 300 basis points to 400 basis points in the case of SOFR, and from 200 basis points to 300 basis points in the case of the base rate; (4) require mandatory prepayments of the BMO Term Loan, the BofA Term Loan and the Senior Notes with net cash proceeds from the disposition of property, assets and equity issuances as follows: (a) 25.55556% to the BMO Term Loan; (b) 20.00000% to the BofA Term Loan; (c) 44.44444% to the Senior Notes; and (d) the remaining 10% to be retained by the Company; (5) require that, within 90 days of the February 21, 2024 effective date of the BMO Second Amendment, certain of the Company’s subsidiaries guarantee the BMO Term Loan; (6) require that, within 90 days of the February 21, 2024 effective date of the BMO Second Amendment, the Company pledge its equity interests in certain of the Company’s subsidiaries as collateral for the BMO Term Loan; (7) reduce the Company’s minimum fixed charge coverage ratio from 1.50x to 1.25x; and (8) reduce the Company’s minimum unsecured interest coverage ratio from 1.75x to 1.25 x. On February 21, 2024, as part of the BMO Second Amendment, the Company repaid an approximately million remains outstanding. On February 21, 2024, the Company amended the Senior Notes by entering into a First Amendment to Note Purchase Agreement (the “NPA First Amendment”) with the purchasers party thereto. The NPA First Amendment amended the Note Purchase Agreement dated October 24, 2017 (the “Original Note Purchase Agreement”) to, among other things: (1) extend the maturity date of the Series A Notes from December 20, 2024 to April 1, 2026; (2) shorten the maturity date of the Series B Notes from December 20, 2027 to April 1, 2026; (3) increase the interest rate applicable to the Series A Notes from of the February 21, 2024 effective date of the NPA First Amendment, the Company pledge its equity interests in certain of the Company’s subsidiaries as collateral for the Senior Notes; and (9) conform all financial covenants and negative covenants in the Note Purchase Agreement with the BofA Credit Agreement and the BMO Credit Agreement. On February 21, 2024, as part of the NPA First Amendment, the Company repaid an approximately million of the Series A Notes remains outstanding. In addition, on February 21, 2024, as part of the NPA First Amendment, the Company repaid an approximately |
Schedule II Valuation and quali
Schedule II Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2023 | |
Schedule II Valuation and qualifying accounts: | |
Schedule II Valuation and qualifying accounts: | Schedule II Franklin Street Properties Corp. Valuation and qualifying accounts: Additions (Decreases) Balance at charged to Balance (in thousands) beginning costs and at end Classification of year expenses Deductions of year Allowance for doubtful accounts 2021 $ 505 157 (129) 533 2022 533 (38) (478) 17 2023 17 (9) — 8 Allowance for credit losses 2021 $ — — — — 2022 — 4,237 — 4,237 2023 4,237 (4,237) — — |
SCHEDULE III REAL ESTATE AND AC
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III FRANKLIN STREET PROPERTIES CORP. REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2023 Initial Cost Historical Cost Costs Capitalized Buildings Total Costs, (in thousands) Buildings (Disposals) Improvements Net of Depreciable Date of Encumbrances Improvements Subsequent to and Accumulated Accumulated Life Year Acquisition Description (1) Land and Equipment Acquisition Land Equipment Total (2) Depreciation Depreciation Years Built (3) (in thousands) Commercial Properties: Park Ten, Houston, TX — 1,061 21,303 8,100 565 29,899 30,464 15,649 14,815 5 - 39 1999 2002 Addison, Addison, TX — 4,325 48,040 13,860 4,325 61,900 66,225 30,173 36,052 5 - 39 1999 2002 Greenwood, Englewood, CO — 3,100 30,201 11,584 3,100 41,785 44,885 20,108 24,777 5 - 39 2000 2005 Innsbrook, Glenn Allen, VA — 5,000 40,216 14,199 5,000 54,415 59,415 21,809 37,606 5 - 39 1999 2003 Eldridge Green, Houston, TX — 3,900 43,791 12,400 3,900 56,191 60,091 23,906 36,185 5 - 39 1999 2004 Liberty Plaza, Addison, TX — 4,374 21,146 11,991 4,279 33,232 37,511 15,314 22,197 5 - 39 1985 2006 Park Ten II, Houston, TX — 1,300 31,712 7,258 1,300 38,970 40,270 16,870 23,400 5 - 39 2006 2006 121 South Eight Street, Minneapolis, MN — 4,444 15,214 30,378 4,444 45,592 50,036 16,769 33,267 5 - 39 1974 2010 801 Marquette Ave South, Minneapolis, MN — 4,184 — 28,280 4,184 28,280 32,464 7,216 25,248 5 - 39 1923 2010 Legacy Tennyson Center, Plano, TX — 3,067 22,064 6,166 3,067 28,230 31,297 9,713 21,584 5 - 39 2008 2011 Westchase I & II, Houston, TX — 8,491 121,508 24,026 8,491 145,534 154,025 42,809 111,216 5 - 39 2008 2012 1999 Broadway, Denver CO — 16,334 137,726 43,291 16,334 181,017 197,351 52,482 144,869 5 - 39 1986 2013 1001 17th Street, Denver, CO — 17,413 165,058 37,227 17,413 202,285 219,698 53,627 166,071 5 - 39 2006 2013 Plaza Seven, Minneapolis, MN — 6,604 54,240 14,025 6,604 68,265 74,869 16,243 58,626 5 - 39 1987 2016 600 17th Street, Denver, CO — 20,876 99,941 18,060 20,876 118,001 138,877 23,320 115,557 5 - 39 1982 2016 Monument Circle, Indianapolis, IN 6,416 13,279 — 6,416 13,279 19,695 341 19,354 5 - 39 1992 2023 Balance — Real Estate — $ 110,889 $ 865,439 $ 280,845 $ 110,298 $ 1,146,875 $ 1,257,173 $ 366,349 $ 890,824 (1) There are no encumbrances on the above properties. (2) The aggregate cost for Federal Income Tax purposes is $1,401,985 . (3) Original date of acquisition by Sponsored Entity. The following table summarizes the changes in the Company’s real estate investments and accumulated depreciation: December 31, (in thousands) 2023 2022 2021 Real estate investments, at cost: Balance, beginning of year $ 1,526,665 $ 1,615,457 $ 2,140,733 Acquisitions 19,695 — — Improvements 29,194 60,132 60,910 Assets held for sale (118,644) — — Dispositions (199,737) (148,924) (586,186) Balance, end of year - Real Estate $ 1,257,173 $ 1,526,665 $ 1,615,457 Accumulated depreciation: Balance, beginning of year $ 423,417 $ 424,487 $ 538,717 Depreciation 45,558 52,208 60,080 Assets held for sale (35,399) — — Dispositions (67,227) (53,278) (174,310) Balance, end of year - Accumulated Depreciation $ 366,349 $ 423,417 $ 424,487 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Estimates and Assumptions | Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for credit losses, purchase price allocations, impairment considerations and the valuation of derivatives. |
Variable Interest Entities | Variable Interest Entities (VIEs) The Company determines whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which the Company holds a, direct or indirect, variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. The Company makes judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. The Company analyzes any investments in VIEs to determine if the Company is the primary beneficiary. In evaluating whether the Company is the primary beneficiary, the Company evaluates its direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, the Company considers the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and considers that conclusion upon a reconsideration event. As of January 1, 2023, the Company’s relationship with the Sponsored REIT was considered a VIE and the Company became the primary beneficiary. Upon this reconsideration event, the entity is included within the Company’s consolidated financial statements and all intercompany accounts and transactions have been eliminated in consolidation. A gain on consolidation of approximately million held by Monument Circle was included in the Company’s cash and cash equivalents upon consolidation and is reflected as “Consolidation of Sponsored REIT” in the consolidated statement of cash flows. The cash and cash equivalents held by Monument Circle are unable to be utilized for the Company’s operational purposes. The creditors of Monument Circle’s trade payables do not have any recourse against the Company. The consolidation value of Monument Circle was allocated to real estate investments and leases, including lease origination costs. Lease origination costs represent the value associated with acquiring an in-place lease (i.e. the market cost to execute a similar lease, including leasing commission, legal, vacancy, and other related costs). The value assigned to building approximates the replacement cost; the value assigned to land approximates its appraised value; and the value assigned to leases approximate their fair value. Other assets and liabilities are recorded at their historical costs, which approximates fair value. The Company assessed the fair value of the acquired real estate leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 in the fair value hierarchy. The following table summarizes the estimated fair value of the assets acquired at the date of consolidation, January 1, 2023: (in thousands) Real estate assets $ 19,695 Value of acquired real estate leases 305 Total $ 20,000 The following is quantitative information about significant unobservable inputs in the Company’s Level 3 measurement of the assets acquired in the consolidation of Monument Circle and were measured at fair value on a nonrecurring basis at January 1, 2023: Fair Value (1) at Significant Range Weighted Description January 1, 2023 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Monument Circle Consolidation $ 20,000 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 9.50 % 9.50 % 9.50 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument. Prior to January 1, 2023, the Company’s relationship with the Sponsored REIT was considered a VIE in which the Company was not the primary beneficiary. The Company’s maximum exposure to losses associated with this VIE was limited to the principal amount outstanding under the loan from the Company to the Sponsored REIT secured by a mortgage on real estate owned by the Sponsored REIT (the “Sponsored REIT Loan”) net of the allowance for credit loss, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately million at December 31, 2022. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and were approximately million at December 31, 2022. The relationships and investments related to the Sponsored REIT are summarized in Note 3 |
Real Estate and Depreciation | Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. These indicators may include lower or declining tenant occupancy, weak or declining tenant profitability, cash flows or liquidity, the Company’s decision to dispose of an asset before the end of its estimated useful life or legislative, economic, or market changes that permanently reduce the value of the Company’s investment. If indicators of impairment are present, the Company evaluates the carrying value of the property by comparing it to its expected future undiscounted cash flow. A property’s value is impaired only if management’s estimate of future undiscounted cash flows to be generated by the property over its estimated holding period is less than the carrying value of the property. If there are different potential outcomes for a property, the Company will take a probability weighted approach to estimating future cash flows. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements, estimated holding periods and outcome probabilities that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. The Company did not recognize any impairment losses on any assets classified as held and used for the years ended December 31, 2023, 2022 and 2021. |
Acquired Real Estate Leases and Amortization | Acquired Real Estate Leases and Amortization Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from . Amortization of these combined components was approximately 31, 2023, 2022 and 2021, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 2,489 2025 1,718 2026 1,644 2027 389 2028 300 2029 and thereafter 154 |
Acquired Unfavorable Real Estate Leases and Amortization | Acquired Unfavorable Real Estate Leases and Amortization Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from . Amortization expense was approximately Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 42 2025 10 2026 8 2027 8 2028 6 2029 and thereafter 13 |
Assets held for sale | Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year . Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale (that do not represent a strategic shift that has, or will have, a major effect on financial results) in its consolidated statements of income through the date of sale. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents (1) $ 125,530 $ 3,739 Restricted cash 2,350 2,893 Total cash, cash equivalents and restricted cash $ 127,880 $ 6,632 (1) Includes $2,167 at December 31, 2023, pertaining to Monument Circle, which the Company is unable to utilize for its own operational purposes. |
Restricted Cash | Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid based on the terms of the closing agreement for the sale. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. |
Tenant Rent Receivables | Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year . The Company recognizes the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income. |
Related Party Mortgage Loan Receivable | Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives, related party mortgage loan receivable and accounts receivable. The Company maintains its cash balances principally in banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of provided by the Federal Deposit Insurance Corporation. The derivatives that the Company has are from interest rate swap agreements that are discussed in Note 5. The related party mortgage loan receivable is held with Sponsored REIT. The Company performs regular evaluations on the extent and impact of any credit deterioration that could affect the performance and value of the secured property, as well as the financial and operating capability of the borrower. The Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than |
Financial Instruments | Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. |
Straight-line Rent Receivable | Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was 31, 2023, 2022 and 2021, respectively. |
Deferred Leasing Commissions | Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately The estimated annual amortization for the five years and thereafter following December 31, 2023 is as follows: (in thousands) December 31, 2024 $ 4,466 2025 3,914 2026 3,285 2027 2,883 2028 2,426 2029 and thereafter 6,690 |
Common Share Repurchases | Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. |
Revenue Recognition | Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases $ 103,716 $ 107,990 $ 148,705 Reimbursable expenses 42,311 49,736 54,825 Straight-line rent adjustment (626) 5,895 4,017 Amortization of favorable and unfavorable leases 45 118 34 $ 145,446 $ 163,739 $ 207,581 |
Rental Revenue | Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases $ 103,716 $ 107,990 $ 148,705 Reimbursable expenses 42,311 49,736 54,825 Straight-line rent adjustment (626) 5,895 4,017 Amortization of favorable and unfavorable leases 45 118 34 $ 145,446 $ 163,739 $ 207,581 |
Related Party and Other Revenue | Related Party and Other Revenue - |
Segment Reporting | Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. |
Income Taxes | Income Taxes Taxes on income for the years ended December 31, 2023, 2022 and 2021 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary, and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were December 31, 2023, 2022 and 2021. The denominator used for calculating basic and diluted net income per share was 103,357,000, 103,338,000 and 106,667,000 for the years ended December 31, 2023 2022 2021 |
Derivative Instruments | Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recognized in other comprehensive income (“OCI”) and reclassified into the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs (See Notes 2, 3, 5 and 10) were considered and applied to the Company’s derivative instruments, Sponsored REIT Loan, Sponsored REIT purchase price allocation, and assets held for sale. Level 2 inputs were used to value the interest rate swaps and Level 3 inputs were used to value the Sponsored REIT Loan, assets acquired in the consolidation of the Sponsored REIT and the valuation of certain assets held for sale. |
Subsequent Events | Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. |
Recent Accounting Standards | Recent Accounting Standards In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). ASU 2023-06 adds interim and annual disclosure requirements to GAAP at the request of the Securities and Exchange Commission. The guidance in ASU 2023-06 is required to be applied prospectively and the GAAP requirements will be effective when the removal of the related SEC disclosure requirements is effective. If the SEC does not act to remove its related requirement by June 30, 2027, any related FASB amendments will be removed from the Accounting Standards Codification and will not be effective. The Company does not anticipate that the adoption of ASU 2023-06 will have a material impact on the consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expense and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The guidance in ASU 2023-07 is applied retrospectively to all periods presented in the financial statements and is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2023-07 will have a material impact on the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures and disclosures about income taxes paid. The guidance in ASU 2023-09 should be applied prospectively but may be applied retrospectively for each period presented. ASU 2023-09 is effective for public entities for fiscal years beginning after December 15, 2024. The Company does not anticipate that the adoption of ASU 2023-09 will have a material impact on the consolidated financial statements |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Significant Accounting Policies | ||
Fair value of assets acquired at consolidation of VIE | (in thousands) Real estate assets $ 19,695 Value of acquired real estate leases 305 Total $ 20,000 | |
Quantitative information about significant unobservable inputs of Level 3 measurement | Fair Value (1) at Significant Range Weighted Description December 31, 2022 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Sponsored REIT Loan $ 19,763 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 9.50 % 9.50 % 9.50 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument. | |
Schedule of estimated useful lives of real estate assets | Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 | |
Schedule of estimated annual amortization expense for succeeding five years for acquired in-place lease and above-market leases | (in thousands) December 31, 2024 $ 2,489 2025 1,718 2026 1,644 2027 389 2028 300 2029 and thereafter 154 | |
Schedule of estimated annual amortization for unfavorable leases | (in thousands) December 31, 2024 $ 42 2025 10 2026 8 2027 8 2028 6 2029 and thereafter 13 | |
Schedule of Cash and cash equivalents | December 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents (1) $ 125,530 $ 3,739 Restricted cash 2,350 2,893 Total cash, cash equivalents and restricted cash $ 127,880 $ 6,632 (1) Includes $2,167 at December 31, 2023, pertaining to Monument Circle, which the Company is unable to utilize for its own operational purposes. | |
Schedule of estimated annual amortization for deferred leasing commissions | (in thousands) December 31, 2024 $ 4,466 2025 3,914 2026 3,285 2027 2,883 2028 2,426 2029 and thereafter 6,690 | |
Summary of rental revenue | Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases $ 103,716 $ 107,990 $ 148,705 Reimbursable expenses 42,311 49,736 54,825 Straight-line rent adjustment (626) 5,895 4,017 Amortization of favorable and unfavorable leases 45 118 34 $ 145,446 $ 163,739 $ 207,581 |
Related Party Transactions an_2
Related Party Transactions and Investments in Non-Consolidated Entities (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions and Investments in Non-Consolidated Entities | ||
Schedule of equity in losses of investments in non-consolidated REITs | Year Ended December 31, (in thousands) 2021 Equity in income of East Wacker $ 421 Total $ 421 | |
Schedule of distributions received from non-consolidated REITs | Year Ended December 31, (in thousands) 2021 Distributions from East Wacker $ 421 $ 421 | |
Allowance for credit losses rollforward | For the Year Ended December 31, (In thousands) 2023 2022 2021 Beginning allowance for credit losses $ (4,237) $ — $ — Additional increases to the allowance for credit losses — (4,237) — Reductions to the allowance for credit losses 4,237 — Ending allowance for credit losses $ — $ (4,237) $ — | |
Quantitative information about significant unobservable inputs of Level 3 measurement | Fair Value (1) at Significant Range Weighted Description December 31, 2022 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Sponsored REIT Loan $ 19,763 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 9.50 % 9.50 % 9.50 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument. |
Financial Instruments_ Deriva_2
Financial Instruments: Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments: Derivatives and Hedging | |
Schedule of notional and fair value of derivative financial instruments | Notional Strike Effective Expiration Fair Value (1) at (in thousands) Value Rate Date Date December 31, 2023 December 31, 2022 2019 BMO Interest Rate Swap $ 165,000 2.39 % Aug-20 Jan-24 $ — $ 4,358 (1) Classified within Level 2 of the fair value hierarchy. |
Summary of Interest Rate Swaps that was recorded in OCI | (in thousands) Year Ended December 31, Interest Rate Swaps in Cash Flow Hedging Relationships: 2023 2022 2021 Amounts of gain recognized in OCI $ 177 $ 8,451 $ 3,786 Amounts of previously recorded gain (loss) reclassified from OCI into Interest Expense $ 4,180 $ (1,146) $ (8,286) Total amount of Interest Expense presented in the consolidated statements of operations $ 24,318 $ 22,808 $ 32,273 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Schedule of Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity | Shares Available Compensation for Grant Cost Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 1,012,500 Shares granted 2022 (84,133) 393,750 Balance December 31, 2022 1,696,687 $ 1,406,250 Shares granted 2023 (194,439) 314,991 Balance December 31, 2023 1,502,248 $ 1,721,241 |
Schedule of repurchase of common stock | (Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 $ 37,019 Repurchase of shares 846,739 4,843 Balance, December 31, 2022 5,260,480 $ 41,862 |
Federal Income Tax Reporting (T
Federal Income Tax Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Income Tax Reporting | |
Schedule of income tax expense reflected in the condensed consolidated statements of income | For the Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Revised Texas Franchise Tax $ 279 $ 239 $ 234 Other Taxes — (35) 404 Tax expense $ 279 $ 204 $ 638 |
Summary of tax components of Company's common distribution paid per share | 2023 2022 2021 Per Share % Per Share % Per Share % Ordinary income $ — — % $ — — % $ — — % Capital gain — — % 0.14 70 % 0.68 100 % Return of capital 0.04 100 % 0.06 30 % — — % Total $ 0.04 100 % $ 0.20 100 % $ 0.68 100 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Summary of lease costs and maturity analysis for liabilities | Lease Costs For the Year Ended December 31, (in thousands) 2023 2022 2021 Operating lease cost $ 419 $ 419 $ 419 $ 419 $ 419 $ 419 Other information Cash paid for amounts included in the measurement of lease liabilities $ 447 $ 438 $ 429 Weighted average remaining lease terms in years - operating leases 0.75 1.75 2.75 Weighted average discount rate - operating leases 3.86% 3.86% 3.86% Maturity analysis for liabilities Total Undiscounted (in thousands) Cash Flows Discount rate at commencement 3.86% 2024 $ 340 $ 340 Present value lease liability $ 334 Difference between undiscounted cash flows and discounted cash flows $ 6 |
Summary of income relating to lease payments and undiscounted cash flows | Income relating to lease payments: For the Year Ended December 31, (in thousands) 2023 2022 2021 Income from leases (1) $ 146,027 $ 157,719 $ 203,530 $ 146,027 $ 157,719 $ 203,530 Undiscounted Cash Flows Year ending (in thousands) December 31, 2024 86,936 2025 78,662 2026 70,489 2027 60,660 2028 54,527 2029 and thereafter 162,594 $ 513,868 (1) Includes amounts recognized from variable lease payments of $42,311, $49,730 and $54,825 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Dispositions of Property (Table
Dispositions of Property (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dispositions of Property | |
Summary of operating results for discontinued operations | Year ended December 31, (in thousands) 2023 2022 2021 Rental revenue $ 27,157 $ 43,025 $ 84,179 Rental operating expenses (8,449) (13,256) (23,547) Real estate taxes and insurance (4,103) (10,228) (17,150) Depreciation and amortization (7,206) (14,656) (27,025) Income from dispositions and assets held for sale $ 7,399 $ 4,885 $ 16,457 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2023 property | |
Properties | |
Number of properties | 17 |
FSP Investments LLC | |
Organization | |
Ownership interest (as a percent) | 100% |
FSP Property Management LLC | |
Organization | |
Ownership interest (as a percent) | 100% |
FSP Holdings LLC | |
Organization | |
Ownership interest (as a percent) | 100% |
FSP Protective TRS Corp. | |
Organization | |
Ownership interest (as a percent) | 100% |
Significant Accounting Polici_4
Significant Accounting Policies - Variable Interest Entities (Details) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Variable interest entity | |||||||
Gain on consolidation of Sponsored REIT | $ 394,000 | ||||||
Cash, cash equivalents and restricted cash | 127,880,000 | $ 6,632,000 | $ 40,751,000 | $ 4,150,000 | |||
VIE at Consolidation | |||||||
Real estate assets | 890,824,000 | 1,103,248,000 | |||||
Acquired real estate leases | 6,694,000 | 10,186,000 | |||||
Related party mortgage loan receivable | 19,763,000 | ||||||
FSP Monument Circle LLC | |||||||
Variable interest entity | |||||||
Cash, cash equivalents and restricted cash | 2,167,000 | ||||||
Level 3 | |||||||
VIE at Consolidation | |||||||
Related party mortgage loan receivable | $ 19,763,000 | ||||||
Level 3 | Exit Cap Rate | Maximum | |||||||
VIE at Consolidation | |||||||
Measurement input | 7.50 | ||||||
Level 3 | Exit Cap Rate | Minimum | |||||||
VIE at Consolidation | |||||||
Measurement input | 7.50 | ||||||
Level 3 | Exit Cap Rate | Weighted Average | |||||||
VIE at Consolidation | |||||||
Measurement input | 7.50 | ||||||
Level 3 | Discount Rate | Maximum | |||||||
VIE at Consolidation | |||||||
Measurement input | 9.50 | ||||||
Level 3 | Discount Rate | Minimum | |||||||
VIE at Consolidation | |||||||
Measurement input | 9.50 | ||||||
Level 3 | Discount Rate | Weighted Average | |||||||
VIE at Consolidation | |||||||
Measurement input | 9.50 | ||||||
Variable interest entities ("VIEs") | |||||||
Variable interest entity | |||||||
Gain on consolidation of Sponsored REIT | $ 400,000 | ||||||
Cash, cash equivalents and restricted cash | 2,167,000 | $ 0 | |||||
VIE at Consolidation | |||||||
Real estate assets | 19,354,000 | $ 19,695,000 | 0 | ||||
Acquired real estate leases | 305,000 | 305,000 | 0 | ||||
Total | $ 20,000,000 | ||||||
Variable interest entities ("VIEs") | FSP Monument Circle LLC | |||||||
Variable interest entity | |||||||
Cash, cash equivalents and restricted cash | $ 3,000,000 | ||||||
Variable interest entities ("VIEs") | Level 3 | |||||||
VIE at Consolidation | |||||||
Related party mortgage loan receivable | $ (20,000,000) | ||||||
Variable interest entities ("VIEs") | Level 3 | Exit Cap Rate | Maximum | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0750) | ||||||
Variable interest entities ("VIEs") | Level 3 | Exit Cap Rate | Minimum | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0750) | ||||||
Variable interest entities ("VIEs") | Level 3 | Exit Cap Rate | Weighted Average | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0750) | ||||||
Variable interest entities ("VIEs") | Level 3 | Discount Rate | Maximum | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0950) | ||||||
Variable interest entities ("VIEs") | Level 3 | Discount Rate | Minimum | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0950) | ||||||
Variable interest entities ("VIEs") | Level 3 | Discount Rate | Weighted Average | |||||||
VIE at Consolidation | |||||||
Measurement input | (0.0950) | ||||||
VIE, Not Primary Beneficiary | |||||||
Variable interest entity | |||||||
Maximum exposure to losses associated with VIE | 22,100,000 | ||||||
VIE, Not Primary Beneficiary | Prepaid expenses and other assets | |||||||
Variable interest entity | |||||||
Accrued interest and exit fee receivables | $ 2,300,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives (Details) | Dec. 31, 2023 |
Commercial buildings | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Building improvements | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 15 years |
Building improvements | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Fixtures and equipment | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 3 years |
Fixtures and equipment | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 7 years |
Significant Accounting Polici_6
Significant Accounting Policies - Acquired Real Estate Leases and Amortization (Details) - Acquired in-place and above market real estate leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired real estate leases and amortization | |||
Amortization expense | $ 3,200 | $ 4,500 | $ 8,200 |
Estimated annual amortization for succeeding five years | |||
2023 | 2,489 | ||
2024 | 1,718 | ||
2025 | 1,644 | ||
2026 | 389 | ||
2027 | 300 | ||
2028 and thereafter | $ 154 | ||
Minimum | |||
Acquired real estate leases and amortization | |||
Term of lease | 12 months | ||
Maximum | |||
Acquired real estate leases and amortization | |||
Term of lease | 154 months |
Significant Accounting Polici_7
Significant Accounting Policies - Acquired Unfavorable Real Estate Leases and Amortization (Details) - Acquired unfavorable real estate leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired Unfavorable Real Estate Leases and Amortization | |||
Amortization | $ 100 | $ 200 | $ 500 |
Estimated annual amortization for succeeding five years | |||
2024 | 42 | ||
2025 | 10 | ||
2026 | 8 | ||
2027 | 8 | ||
2028 | 6 | ||
2029 and thereafter | $ 13 | ||
Minimum | |||
Acquired Unfavorable Real Estate Leases and Amortization | |||
Term of lease | 12 months | ||
Maximum | |||
Acquired Unfavorable Real Estate Leases and Amortization | |||
Term of lease | 151 months |
Significant Accounting Polici_8
Significant Accounting Policies - Cash, Cash Equivalents and Restricted cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations | ||||
Time period within which sale or disposition of properties held for sale is probable | 1 year | |||
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 125,530 | $ 3,739 | ||
Restricted Cash | 2,350 | 2,893 | ||
Total cash, cash equivalents and restricted cash | $ 127,880 | $ 6,632 | $ 40,751 | $ 4,150 |
Restricted Cash, Statement of Financial Position [Extensible Enumeration] | Total cash, cash equivalents and restricted cash | |||
FSP Monument Circle LLC | ||||
Cash, Cash Equivalents and Restricted Cash | ||||
Total cash, cash equivalents and restricted cash | $ 2,167 |
Significant Accounting Polici_9
Significant Accounting Policies - Rent Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tenant Rent Receivables and Straight-line Rent Receivable | |||
Period within which tenant rent receivables are expected to be collected | 1 year | ||
Straight-line rent receivable | $ 40.4 | $ 52.7 | $ 49 |
Significant Accounting Polic_10
Significant Accounting Policies - Concentration of Credit Risks (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) item entity | |
Concentration of Credit Risks | |
Number of banks in which the entity maintains cash balances | 2 |
Number of interest rate swap agreements | 3 |
Number of Sponsored REITs with which the related party mortgage loan receivable is held | entity | 1 |
Cash balances with financial institutions | Credit concentration risk | Minimum | |
Concentration of Credit Risks | |
Insurance limit provided by Federal Deposit Insurance Corporation | $ | $ 250,000 |
Annualized rental revenues | Single tenant rental revenues | Major tenants | |
Concentration of Credit Risks | |
Percentage of annualized rental revenues required for qualification as major tenant | 10% |
Significant Accounting Polic_11
Significant Accounting Policies - Deferred Leasing Commissions and Revenue Recognition (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Deferred Leasing Commissions | |||
Amortization expense of deferred leasing commissions | $ 5,900 | $ 7,100 | $ 10,700 |
Estimated annual amortization of deferred leasing commissions for the succeeding five years | |||
2024 | 4,466 | ||
2025 | 3,914 | ||
2026 | 3,285 | ||
2027 | 2,883 | ||
2028 | 2,426 | ||
2028 and thereafter | 6,690 | ||
Summary of rental revenue | |||
Income from leases | 103,716 | 107,990 | 148,705 |
Reimbursable expenses | 42,311 | 49,736 | 54,825 |
Straight line rent adjustments | (626) | 5,895 | 4,017 |
Amortization of favorable and unfavorable leases | 45 | 118 | 34 |
Total | $ 145,446 | $ 163,739 | $ 207,581 |
Segment Reporting | |||
Number of reporting segments | item | 1 | ||
Net Income Per Share | |||
Potential dilutive shares outstanding | shares | 0 | 0 | 0 |
Denominator used for calculating basic net income per share (in shares) | shares | 103,357,000 | 103,338,000 | 106,667,000 |
Denominator used for calculating diluted net income per share (in shares) | shares | 103,357,000 | 103,338,000 | 106,667,000 |
Derivative instruments | |||
Fair value hedges outstanding | $ 0 | ||
Rental | |||
Summary of rental revenue | |||
Total | $ 145,446 | $ 163,739 | $ 207,581 |
Related Party Transactions an_3
Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs (Details) - entity | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions and Investments in Non-Consolidated Entities | |||
Number of REITs in which the entity holds non-controlling common stock interest | 1 | 1 | 2 |
Number of REITs in which the entity holds non-controlling preferred stock interest | 2 |
Related Party Transactions an_4
Related Party Transactions and Investments in Non-Consolidated Entities - Equity in losses of investment in non-consolidated REITs (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 06, 2021 | Dec. 31, 2007 | Dec. 31, 2021 | |
Sponsored REITs | |||
Equity in income (loss) | $ 421 | ||
Distributions received from non-consolidated REITs | |||
Distributions from non-consolidated REITs | 421 | ||
East Wacker | |||
Sponsored REITs | |||
Equity in income (loss) | $ 400 | 421 | |
Preferred shares purchased | 965.75 | ||
Percentage of outstanding preferred shares purchased | 43.70% | ||
Distributions received from non-consolidated REITs | |||
Distributions from non-consolidated REITs | $ 421 |
Related Party Transactions an_5
Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sponsored REITs | |||
Asset management fees, low end of range (as a percent) | 1% | ||
Asset management fees, high end of range (as a percent) | 5% | ||
Notice period for cancellation of applicable contracts | 30 days | ||
Type of revenue | Asset management fees | Asset management fees | Asset management fees |
Asset management fees | |||
Sponsored REITs | |||
Revenue | $ 0 | $ 28,000 | $ 61,000 |
Related Party Transactions an_6
Related Party Transactions and Investments in Non-Consolidated Entities - Sponsored REIT Loans outstanding (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 29, 2021 USD ($) | Oct. 28, 2021 USD ($) | |
Sponsored REITs | |||||
Amount Drawn | $ 24 | $ 21 | |||
Related party mortgage loan receivable | 24 | $ 21 | |||
Number of additional commitments to lend | item | 0 | ||||
Sponsored REITs | |||||
Sponsored REITs | |||||
Interest income and fees from the Sponsored REIT Loans | $ 0 | $ 1.8 | $ 1.6 | ||
FSP Monument Circle LLC | |||||
Sponsored REITs | |||||
Additional loan amount | $ 3 |
Related Party Transactions an_7
Related Party Transactions and Investments in Non-Consolidated Entities - Summarized financial information for Sponsored REITs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheet Data (unaudited): | ||||
Real Estate Investment Property, Net | $ 890,824 | $ 1,103,248 | ||
Total liabilities | (456,525) | (472,930) | ||
Total stockholders' equity | 712,805 | 768,736 | $ 783,203 | $ 768,091 |
Operating Data (unaudited): | ||||
Depreciation and amortization | (57,240) | (65,697) | (81,041) | |
Interest expense | (24,318) | (22,808) | (32,273) | |
Net income (loss) | (48,110) | 1,094 | 92,717 | |
Related party revenue: Other | ||||
Operating Data (unaudited): | ||||
Other revenues | $ 261 | $ 21 | $ 77 |
Related Party Transactions an_8
Related Party Transactions and Investments in Non-Consolidated Entities - Allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance for credit losses | $ (4,237) | |
Additional increases to the allowance for credit losses | $ (4,237) | |
Reductions to the allowance for credit losses | 4,237 | |
Ending allowance for credit losses | (4,237) | $ (4,237) |
Additional increases or decreases to the allowance for credit losses | $ 4,200 |
Related Party Transactions an_9
Related Party Transactions and Investments in Non-Consolidated Entities - Level 3 Significant unobservable inputs (Details) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Related party mortgage loan receivable | $ 19,763 | |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Related party mortgage loan receivable | $ 19,763 | |
Level 3 | Maximum | Exit Cap Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 7.50 | |
Level 3 | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 9.50 | |
Level 3 | Minimum | Exit Cap Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 7.50 | |
Level 3 | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 9.50 | |
Level 3 | Weighted Average | Exit Cap Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 7.50 | |
Level 3 | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 9.50 | |
Level 3 | Sponsored REIT Loan | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-Sale, Valuation Technique [Extensible Enumeration] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Bank Note Payable, Term Loans_2
Bank Note Payable, Term Loans Payable and Senior Notes (Details) | 12 Months Ended | ||||||||||||||||||||||
Apr. 01, 2024 USD ($) | Aug. 10, 2023 USD ($) | Feb. 10, 2023 USD ($) $ / shares | Feb. 09, 2023 USD ($) | Sep. 06, 2022 USD ($) | Oct. 25, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 04, 2021 USD ($) | Dec. 24, 2020 USD ($) | Oct. 24, 2017 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Oct. 01, 2023 USD ($) | Feb. 08, 2023 | Nov. 30, 2021 USD ($) | Sep. 27, 2021 | May 27, 2021 property | Dec. 23, 2020 USD ($) | Mar. 29, 2019 USD ($) | Mar. 07, 2019 USD ($) | Sep. 27, 2018 USD ($) | Aug. 02, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of unsecured debt | $ 50,000,000 | $ 110,000,000 | $ 445,000,000 | ||||||||||||||||||||
Loss on extinguishment of debt | $ 700,000 | (106,000) | (78,000) | $ (901,000) | |||||||||||||||||||
Unsecured term loan | 114,707,000 | $ 164,750,000 | |||||||||||||||||||||
Received an aggregate amount | $ 4,206,000 | ||||||||||||||||||||||
Distributions common stock (in dollars per share) | $ / shares | $ 0.04 | $ 0.20 | $ 0.68 | ||||||||||||||||||||
Borrowings outstanding | $ 90,000,000 | $ 48,000,000 | |||||||||||||||||||||
Office Properties in Atlanta, Georgia | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Number of properties sold | property | 3 | ||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed charge coverage ratio | 1.50 | ||||||||||||||||||||||
Series A Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Principal amount of loan | $ 116,000,000 | ||||||||||||||||||||||
Interest rate (as a percent) | 4.49% | ||||||||||||||||||||||
Series B Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Principal amount of loan | $ 84,000,000 | ||||||||||||||||||||||
Interest rate (as a percent) | 4.76% | ||||||||||||||||||||||
Maximum | Senior Notes | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Unsecured leverage ratio | 60% | ||||||||||||||||||||||
Unsecured leverage ratio for significant acquisition | 65% | ||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate during period (as a percent) | 8.47% | ||||||||||||||||||||||
Weighted average interest rate (as a percent) | 1.33% | ||||||||||||||||||||||
Weighted average variable interest rate (as a percent) | 8.05% | ||||||||||||||||||||||
Borrowing capacity | $ 150,000,000 | $ 237,500,000 | $ 125,000,000 | ||||||||||||||||||||
Borrowings outstanding | $ 40,000,000 | $ 90,000,000 | $ 0 | $ 0 | |||||||||||||||||||
Facility fee at period end (as a percent) | 0.35% | ||||||||||||||||||||||
Facility fee (as a percent) | 0.35% | ||||||||||||||||||||||
Revolving Credit Facility | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Cash dividend declared per share (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||||
Revolving Credit Facility | ScenarioForecastMember | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Borrowing capacity | $ 100,000,000 | ||||||||||||||||||||||
Revolving Credit Facility | SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 3% | ||||||||||||||||||||||
Unsecured leverage ratio | 1.75% | ||||||||||||||||||||||
Revolving Credit Facility | One Month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.11448% | 0.11448% | |||||||||||||||||||||
Term of SOFR | 1 month | 1 month | |||||||||||||||||||||
Revolving Credit Facility | Three month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.26161% | 0.26161% | |||||||||||||||||||||
Term of SOFR | 3 months | 3 months | |||||||||||||||||||||
Revolving Credit Facility | Six month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.42826% | 0.42826% | |||||||||||||||||||||
Term of SOFR | 6 months | 6 months | |||||||||||||||||||||
Revolving Credit Facility | Bank's base rate | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 2% | ||||||||||||||||||||||
Unsecured leverage ratio | 0.75% | ||||||||||||||||||||||
BofA Line Of Credit | Federal Funds Rate | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||||||||||||
BofA Line Of Credit | One month LIBOR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 1% | ||||||||||||||||||||||
Unsecured Debt [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Principal amount of loan | $ 400,000,000 | ||||||||||||||||||||||
Repayments of unsecured debt | 110,000,000 | $ 200,000,000 | $ 90,000,000 | ||||||||||||||||||||
Loss on extinguishment of debt | $ 100,000 | ||||||||||||||||||||||
Unsecured term loan | $ 0 | ||||||||||||||||||||||
Weighted average interest rate (as a percent) | 1.85% | ||||||||||||||||||||||
Effective interest rate (as a percent) | 2.65% | 1.84% | |||||||||||||||||||||
Unsecured Debt [Member] | LIBOR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate at period end (as a percent) | 1.75% | ||||||||||||||||||||||
Fixed rate (as a percent) | 1.12% | ||||||||||||||||||||||
Unsecured Debt [Member] | Bank's base rate | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.75% | ||||||||||||||||||||||
JPM Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Principal amount of loan | $ 150,000,000 | ||||||||||||||||||||||
Repayments of unsecured debt | $ 100,000,000 | $ 50,000,000 | |||||||||||||||||||||
Loss on extinguishment of debt | (100,000) | ||||||||||||||||||||||
Unsecured term loan | $ 100,000,000 | ||||||||||||||||||||||
Portion of future LIBOR-based rate risk | $ 100,000,000 | ||||||||||||||||||||||
JPM Term Loan | Hedged portion | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Payment to terminate interest rate swap | $ 1,200,000 | ||||||||||||||||||||||
Portion of future LIBOR-based rate risk | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||||||
JPM Term Loan | LIBOR | Hedged portion | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed rate (as a percent) | 2.44% | ||||||||||||||||||||||
BMO Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Principal amount of loan | $ 220,000,000 | ||||||||||||||||||||||
Repayments of unsecured debt | $ 10,000,000 | ||||||||||||||||||||||
Unsecured term loan | $ 125,000,000 | $ 115,000,000 | |||||||||||||||||||||
Interest rate during period (as a percent) | 8.47% | ||||||||||||||||||||||
Weighted average interest rate (as a percent) | 8.11% | ||||||||||||||||||||||
Effective interest rate (as a percent) | 4.04% | ||||||||||||||||||||||
BMO Term Loan | Maximum | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Cash dividend declared per share (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||||
BMO Term Loan | ScenarioForecastMember | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayment of principal | $ 15,000,000 | ||||||||||||||||||||||
BMO Term Loan | BMO Interest Rate Swap | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Received an aggregate amount | $ 4,300,000 | ||||||||||||||||||||||
Interest receivable portion of proceeds from termination of interest rate swap | $ 100,000 | ||||||||||||||||||||||
BMO Term Loan | SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 3% | ||||||||||||||||||||||
BMO Term Loan | One Month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.11448% | ||||||||||||||||||||||
Term of SOFR | 1 month | ||||||||||||||||||||||
BMO Term Loan | Three month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.26161% | ||||||||||||||||||||||
Term of SOFR | 3 months | ||||||||||||||||||||||
BMO Term Loan | Six month SOFR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 0.42826% | ||||||||||||||||||||||
Term of SOFR | 6 months | ||||||||||||||||||||||
BMO Term Loan | LIBOR | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate at period end (as a percent) | 1.65% | ||||||||||||||||||||||
BMO Term Loan | LIBOR | Hedged portion | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Fixed rate (as a percent) | 2.39% | ||||||||||||||||||||||
BMO Term Loan | Bank's base rate | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Basis spread on variable rate (as a percent) | 2% | ||||||||||||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.65% | ||||||||||||||||||||||
Tranche A Term Loan | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayment of principal | $ 40,000,000 |
Financial Instruments_ Deriva_3
Financial Instruments: Derivatives and Hedging (Details) $ in Thousands | 12 Months Ended | ||||
Feb. 10, 2023 USD ($) | Jun. 04, 2021 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | |
Financial Instruments: Derivatives and Hedging | |||||
Received an aggregate amount | $ 4,206 | ||||
Derivative, Number of Instruments Held | item | 3 | ||||
Interest reclassified from accumulated other comprehensive income into interest expense | $ 1,900 | ||||
Amount estimated to be reclassified into earnings within next 12 months | $ 400 | ||||
JPM Term Loan | |||||
Financial Instruments: Derivatives and Hedging | |||||
Hedged amount of portion of the future rate risk | $ 100,000 | ||||
Interest Rate Swap | |||||
Financial Instruments: Derivatives and Hedging | |||||
Derivative, Number of Instruments Held | item | 0 | ||||
2019 JPM Interest Rate Swap | |||||
Financial Instruments: Derivatives and Hedging | |||||
Payment to terminate interest rate swap | $ 1,200 | ||||
2019 BMO Interest Rate Swap | |||||
Financial Instruments: Derivatives and Hedging | |||||
Fair value of hedged asset | $ 4,400 | ||||
Payment to terminate interest rate swap | $ 600 | ||||
2019 BMO Interest Rate Swap | Cash flow hedges | |||||
Financial Instruments: Derivatives and Hedging | |||||
Notional Value | $ 165,000 | ||||
Strike Rate (as a percent) | 2.39% | ||||
2019 BMO Interest Rate Swap | Cash flow hedges | Level 2 | |||||
Financial Instruments: Derivatives and Hedging | |||||
Fair Value | $ 4,358 | ||||
BMO Interest Rate Swap | BMO Term Loan | |||||
Financial Instruments: Derivatives and Hedging | |||||
Received an aggregate amount | $ 4,300 | ||||
Interest receivable portion of proceeds from termination of interest rate swap | $ 100 |
Financial Instruments_ Deriva_4
Financial Instruments: Derivatives and Hedging - Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | $ 24,318 | $ 22,808 | $ 32,273 |
Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | 24,318 | 22,808 | 32,273 |
Interest Rate Swap | Amounts of previously recorded loss reclassified from OCI into Interest Expense | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | 4,180 | (1,146) | (8,286) |
Interest Rate Swap | Amounts of gain recognized in OCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | $ 177 | $ 8,451 | $ 3,786 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Stockholders' Equity | |||
Common Stock, Shares, Outstanding | 103,430,353 | 103,235,914 | |
2002 Stock Incentive Plan | |||
Equity-Based Compensation | |||
Maximum number of shares provided for grant under equity-based incentive compensation plan | 2,000,000 | ||
Number of vesting requirements | item | 0 | ||
Number of shares available for grant under the plan, Beginning | 1,696,687 | 1,780,820 | 1,847,384 |
Shares Granted | (194,439) | (84,133) | (66,564) |
Number of shares available for grant under the plan, Ending | 1,502,248 | 1,696,687 | 1,780,820 |
Compensation Cost, Beginning | $ | $ 1,406,250 | $ 1,012,500 | $ 675,000 |
Compensation cost | $ | 314,991 | 393,750 | 337,500 |
Compensation Cost, Ending | $ | $ 1,721,241 | $ 1,406,250 | $ 1,012,500 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 23, 2021 | |
Stockholders' Equity | |||||
Shares authorized to be repurchased | $ 50,000 | ||||
Average cost per share of repurchased shares (in dollars per share) | $ 5.72 | $ 5.37 | |||
Total number of shares repurchased, beginning (in shares) | 4,413,741 | 4,413,741 | 1,017,498 | ||
Shares repurchased (in shares) | 846,739 | 3,396,243 | 846,739 | 3,396,243 | |
Total number of shares repurchased, ending (in shares) | 4,413,741 | 5,260,480 | 4,413,741 | ||
Amount of stock repurchased, beginning | $ 37,019 | $ 37,019 | $ 18,775 | ||
Repurchase of shares | $ 4,800 | $ 18,200 | 4,843 | 18,244 | |
Amount of stock repurchased, ending | $ 37,019 | $ 41,862 | $ 37,019 |
Federal Income Tax Reporting (D
Federal Income Tax Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | |
Federal Income Tax Reporting | ||||
Maximum ownership as a percentage of the voting power or value of the securities of each issuer other than REIT or "TRS" | 10% | |||
Maximum ownership of securities in all TRS (as a percent) | 20% | 25% | ||
Maximum ownership of securities in all TRS when considered together with other non-real estate assets (as a percent) | 25% | |||
Gross amount of NOL of TRS | $ 4,900 | $ 4,900 | ||
Period of statute of limitations applicable to the entity's income tax returns | 3 years | |||
Net operating losses | ||||
NOLs expiration period | 20 years | |||
NOLs expired in the period | $ 700 | $ 100 | ||
NOLs expected to be used in the next fiscal period | 11,100 | |||
Reversal of valuation allowance | 11,100 | |||
Gross amount of NOLs available to company | 29,700 | 1,700 | ||
Income Tax Expense | ||||
Revised Texas Franchise Tax | 279 | 239 | 234 | |
Other Taxes | (35) | 404 | ||
Tax expense | 279 | 204 | $ 638 | |
Deferred income taxes | 0 | |||
Real estate assets net tax basis more (less) than book basis | $ 144,400 | $ 156,700 |
Federal Income Tax Reporting -
Federal Income Tax Reporting - Tax Components of Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax components of the Company's common distributions paid per share | |||
Capital gain (in dollars per share) | $ 0.14 | $ 0.68 | |
Return of capital (in dollars per share) | $ 0.04 | 0.06 | |
Total (in dollars per share) | $ 0.04 | $ 0.20 | $ 0.68 |
Capital gain (as a percent) | 70% | 100% | |
Return of capital (as a percent) | 100% | 30% | |
Total (as a percent) | 100% | 100% | 100% |
Leases - Lease Costs and Maturi
Leases - Lease Costs and Maturity Analysis for Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Right-of-use asset | $ 300 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaid Expense and Other Assets | ||
Lease Costs | |||
Operating lease cost | $ 419 | $ 419 | $ 419 |
Lease cost | 419 | 419 | 419 |
Cash paid for amounts included in the measurement of lease liabilities | $ 447 | $ 438 | $ 429 |
Weighted average remaining lease terms in years - operating leases | 9 months | 1 year 9 months | 2 years 9 months |
Weighted average discount rate - operating leases | 3.86% | 3.86% | 3.86% |
Maturity analysis for liabilities | |||
Discount rate at commencement | 3.86% | ||
2024 | $ 340 | ||
Total undiscounted cash flows | 340 | ||
Present value lease liability | 334 | $ 759 | |
Difference between undiscounted cash flows and discounted cash flows | $ 6 |
Leases - Income Relating to Lea
Leases - Income Relating to Lease Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income relating to lease payments: | |||
Income from leases | $ 146,027 | $ 157,719 | $ 203,530 |
Undiscounted Cash Flows | |||
2024 | 86,936 | ||
2025 | 78,662 | ||
2026 | 70,489 | ||
2027 | 60,660 | ||
2028 | 54,527 | ||
2029 and thereafter | 162,594 | ||
Income relating to lease payments | 513,868 | ||
Variable lease payments | $ 42,311 | $ 49,730 | $ 54,825 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Plan | |||
Maximum employee compensation to be deferred per year | $ 17,000 | ||
Maximum employer matching contribution as a percentage of annual compensation | 3% | ||
Maximum employee salary that the employer will match | $ 200,000 | ||
Company's total contribution under 401 (k) plan | $ 100,000 | $ 100,000 | $ 100,000 |
Dispositions of Property (Detai
Dispositions of Property (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 26, 2024 USD ($) | Dec. 06, 2023 USD ($) | Oct. 26, 2023 USD ($) | Aug. 09, 2023 USD ($) property | Mar. 10, 2023 USD ($) property | Dec. 28, 2022 USD ($) | Aug. 31, 2022 USD ($) property | Nov. 16, 2021 USD ($) property | Oct. 22, 2021 USD ($) | Sep. 23, 2021 USD ($) property | Aug. 31, 2021 USD ($) | Jun. 29, 2021 USD ($) | May 27, 2021 USD ($) property | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) ft² | Sep. 30, 2023 USD ($) ft² | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Dispositions of Property | |||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group | $ 73,318,000 | $ 73,318,000 | |||||||||||||||||
Real estate assets | 890,824,000 | 890,824,000 | $ 1,103,248,000 | ||||||||||||||||
Straight-line rent receivable | 40,397,000 | 40,397,000 | 52,739,000 | ||||||||||||||||
Deferred leasing commissions | 23,664,000 | 23,664,000 | 35,709,000 | ||||||||||||||||
Operating results for discontinued operations: | |||||||||||||||||||
Rental revenue | 27,157,000 | 43,025,000 | $ 84,179,000 | ||||||||||||||||
Rental operating expenses | (8,449,000) | (13,256,000) | (23,547,000) | ||||||||||||||||
Real estate taxes and insurance | (4,103,000) | (10,228,000) | (17,150,000) | ||||||||||||||||
Depreciation and amortization | (7,206,000) | (14,656,000) | (27,025,000) | ||||||||||||||||
Income from dispositions and assets held for sale | 7,399,000 | $ 4,885,000 | $ 16,457,000 | ||||||||||||||||
Office properties in Broomfield, Colorado | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 2 | ||||||||||||||||||
Gain (loss) on sale of property | $ 24,100,000 | ||||||||||||||||||
Sale price | $ 102,500,000 | ||||||||||||||||||
Property in Atlanta, Georgia | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 3 | ||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group | 39,000,000 | $ 40,000,000 | $ 40,000,000 | 39,000,000 | |||||||||||||||
Gain (loss) on sale of property | $ 86,800,000 | $ 22,800,000 | |||||||||||||||||
Sale price | $ 223,900,000 | $ 219,500,000 | |||||||||||||||||
Real estate assets | 52,200,000 | 52,200,000 | |||||||||||||||||
Straight-line rent receivable | 4,400,000 | 4,400,000 | |||||||||||||||||
Deferred leasing commissions | 2,900,000 | 2,900,000 | |||||||||||||||||
Impairment charge | 20,500,000 | ||||||||||||||||||
Office Property in Dulles, Virginia | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ (2,100,000) | ||||||||||||||||||
Sale price | $ 17,300,000 | ||||||||||||||||||
Office property in Indianapolis, Indiana | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ (1,700,000) | ||||||||||||||||||
Sale price | $ 35,000,000 | ||||||||||||||||||
Office Property in Evanston, Illinois | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ 3,900,000 | ||||||||||||||||||
Sale price | $ 27,800,000 | ||||||||||||||||||
Office properties in Chesterfield, MO | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 2 | ||||||||||||||||||
Gain (loss) on sale of property | $ 10,300,000 | ||||||||||||||||||
Sale price | $ 67,000,000 | ||||||||||||||||||
Office property in Chantilly, VA | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 2 | ||||||||||||||||||
Gain (loss) on sale of property | $ (2,900,000) | ||||||||||||||||||
Sale price | $ 40,000,000 | ||||||||||||||||||
Property in Plano, Texas | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group | 36,200,000 | $ 36,200,000 | |||||||||||||||||
Gain (loss) on sale of property | $ 10,600,000 | 10,600,000 | |||||||||||||||||
Sale price | $ 48,000,000 | 48,000,000 | |||||||||||||||||
Office Property in Charlotte, North Carolina | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 1 | ||||||||||||||||||
Gain (loss) on sale of property | $ (800,000) | ||||||||||||||||||
Sale price | $ 9,200,000 | ||||||||||||||||||
Office Property in Elk Grove Village, Illinois | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Number of properties sold | property | 1 | ||||||||||||||||||
Gain (loss) on sale of property | $ 8,400,000 | ||||||||||||||||||
Sale price | $ 29,100,000 | ||||||||||||||||||
Property in Addison, Texas | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ 53,000 | ||||||||||||||||||
Area of property (in square feet) | ft² | 7,826 | 7,826 | |||||||||||||||||
Property in Miami, Florida | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ (18,900,000) | ||||||||||||||||||
Sale price | $ 68,000,000 | ||||||||||||||||||
Properties in Miami, Florida and Atlanta, Georgia | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group | $ 96,400,000 | $ 96,400,000 | |||||||||||||||||
Impairment charge | 39,700,000 | ||||||||||||||||||
Properties In Richardson, Texas | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Assets Held-for-sale, Not Part of Disposal Group | 34,400,000 | 34,400,000 | |||||||||||||||||
Sale price | $ 35,000,000 | ||||||||||||||||||
Real estate assets | 31,100,000 | 31,100,000 | |||||||||||||||||
Straight-line rent receivable | 3,400,000 | 3,400,000 | |||||||||||||||||
Deferred leasing commissions | 2,000,000 | $ 2,000,000 | |||||||||||||||||
Impairment charge | $ 2,100,000 | ||||||||||||||||||
Properties In Richardson, Texas | Subsequent event | |||||||||||||||||||
Dispositions of Property | |||||||||||||||||||
Gain (loss) on sale of property | $ (2,100,000) | ||||||||||||||||||
Sale price | $ 35,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2025 USD ($) | Feb. 21, 2024 USD ($) | Jan. 31, 2024 | Jan. 26, 2024 USD ($) | Jan. 12, 2024 $ / shares | Dec. 06, 2023 USD ($) | Oct. 26, 2023 USD ($) | Aug. 09, 2023 USD ($) property | Feb. 10, 2023 $ / shares | Feb. 28, 2025 | Sep. 30, 2023 USD ($) | Sep. 27, 2018 USD ($) | |
BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Principal amount of loan | $ 220 | |||||||||||
Maximum | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Cash dividend declared per share (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
SOFR | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 3% | |||||||||||
Base rate | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 2% | |||||||||||
Subsequent event | ||||||||||||
Subsequent Events | ||||||||||||
Cash dividend declared per share (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Subsequent event | BofA Term Loan | ||||||||||||
Subsequent Events | ||||||||||||
Portion to be retained | 10% | |||||||||||
Mandatory prepayments of term loan | 20% | |||||||||||
Threshold period to provide guarantee | 90 days | |||||||||||
Threshold period to pledge equity interests | 90 days | |||||||||||
Repayment of loan | $ 22.7 | |||||||||||
Outstanding amount | $ 67.3 | |||||||||||
Subsequent event | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Portion to be retained | 10% | |||||||||||
Mandatory prepayments of term loan | 25.55556% | |||||||||||
Threshold period to provide guarantee | 90 days | |||||||||||
Threshold period to pledge equity interests | 90 days | |||||||||||
Repayment of loan | $ 29 | |||||||||||
Outstanding amount | $ 86 | |||||||||||
Subsequent event | Senior notes | ||||||||||||
Subsequent Events | ||||||||||||
Interest rate (as a percent) | 8% | |||||||||||
Portion to be retained | 10% | |||||||||||
Mandatory prepayments of term loan | 44.44444% | |||||||||||
Threshold period to pledge equity interests | 90 days | |||||||||||
Subsequent event | Senior A Notes | ||||||||||||
Subsequent Events | ||||||||||||
Interest rate (as a percent) | 8% | 4.49% | ||||||||||
Repayment of senior notes | $ 29.2 | |||||||||||
Outstanding amount | $ 86.8 | |||||||||||
Subsequent event | Senior B Notes | ||||||||||||
Subsequent Events | ||||||||||||
Interest rate (as a percent) | 8% | 4.76% | ||||||||||
Repayment of senior notes | $ 21.2 | |||||||||||
Outstanding amount | $ 62.8 | |||||||||||
Subsequent event | Minimum | BofA Term Loan | ||||||||||||
Subsequent Events | ||||||||||||
Fixed charge coverage ratio | 1.25 | 1.50 | ||||||||||
Subsequent event | Minimum | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Fixed charge coverage ratio | 1.25 | 1.50 | ||||||||||
Unsecured interest charge coverage ratio | 1.25 | 1.75 | ||||||||||
Subsequent event | If aggregate principal amount exceeds $200 million | Senior notes | ||||||||||||
Subsequent Events | ||||||||||||
Interest rate (as a percent) | 9% | |||||||||||
Increase in interest rate | 1% | |||||||||||
Subsequent event | If aggregate principal amount exceeds $200 million | BMO Term Loan, the BofA Term Loan and the Senior Notes | ||||||||||||
Subsequent Events | ||||||||||||
Principal amount of loan | $ 200 | $ 200 | ||||||||||
Subsequent event | SOFR | BofA Term Loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 4% | |||||||||||
Percentage points of floor rate | 5% | |||||||||||
Subsequent event | SOFR | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 3% | 3% | 3% | |||||||||
Percentage points of floor rate | 5% | |||||||||||
Subsequent event | SOFR | Maximum | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 4% | |||||||||||
Subsequent event | SOFR | If aggregate principal amount exceeds $200 million | BofA Term Loan | ||||||||||||
Subsequent Events | ||||||||||||
Increase in basis spread | 1% | |||||||||||
Subsequent event | SOFR | If aggregate principal amount exceeds $200 million | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Increase in basis spread | 1% | |||||||||||
Subsequent event | Base rate | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 3% | 2% | 2% | |||||||||
Percentage points of floor rate | 6% | |||||||||||
Subsequent event | Base rate | Minimum | BMO Term loan | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 2% | |||||||||||
Property in Plano, Texas | ||||||||||||
Subsequent Events | ||||||||||||
Sale price | $ 48 | $ 48 | ||||||||||
Gain (loss) on sale of property | $ 10.6 | 10.6 | ||||||||||
Office property in Charlotte, North Carolina | ||||||||||||
Subsequent Events | ||||||||||||
Number of properties sold | property | 1 | |||||||||||
Sale price | $ 9.2 | |||||||||||
Gain (loss) on sale of property | $ (0.8) | |||||||||||
Property in Miami, Florida | ||||||||||||
Subsequent Events | ||||||||||||
Sale price | $ 68 | |||||||||||
Gain (loss) on sale of property | $ (18.9) | |||||||||||
Properties In Richardson, Texas | ||||||||||||
Subsequent Events | ||||||||||||
Sale price | $ 35 | |||||||||||
Properties In Richardson, Texas | Subsequent event | ||||||||||||
Subsequent Events | ||||||||||||
Sale price | $ 35 | |||||||||||
Gain (loss) on sale of property | $ (2.1) | |||||||||||
BofA Revolver | Maximum | ||||||||||||
Subsequent Events | ||||||||||||
Cash dividend declared per share (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
BofA Revolver | SOFR | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 3% | |||||||||||
BofA Revolver | Base rate | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 2% | |||||||||||
BofA Revolver | Subsequent event | SOFR | ||||||||||||
Subsequent Events | ||||||||||||
Basis spread on variable rate (as a percent) | 3% | 3% |
Schedule II Valuation and qua_2
Schedule II Valuation and qualifying accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts - Tenant rent receivables | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | $ 17,000 | $ 533,000 | $ 505,000 |
Additions (Decreases) charged to costs and expenses | (9,000) | (38,000) | 157,000 |
Deductions | (478,000) | (129,000) | |
Balance at end of year | 8,000 | 17,000 | $ 533,000 |
Allowance for doubtful accounts - Allowance for credit losses | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | 4,237,000 | ||
Additions (Decreases) charged to costs and expenses | $ (4,237,000) | 4,237,000 | |
Balance at end of year | $ 4,237,000 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 0 | |||
Accumulated Depreciation | 366,349,000 | $ 423,417,000 | $ 424,487,000 | $ 538,717,000 |
Aggregate cost for Federal Income Tax purposes | 1,401,985 | |||
Real Estate Excluding Assets Held For Sale | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 110,889,000 | |||
Initial cost of Buildings Improvements and Equipment | 865,439,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 280,845,000 | |||
Historical Cost of Land | 110,298,000 | |||
Historical Cost of Buildings Improvements and Equipment | 1,146,875,000 | |||
Total | 1,257,173,000 | |||
Accumulated Depreciation | 366,349,000 | |||
Total Costs, Net of Accumulated Depreciation | 890,824,000 | |||
Park Ten, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 1,061,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,303,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 8,100,000 | |||
Historical Cost of Land | 565,000 | |||
Historical Cost of Buildings Improvements and Equipment | 29,899,000 | |||
Total | 30,464,000 | |||
Accumulated Depreciation | 15,649,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 14,815,000 | |||
Park Ten, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Addison, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,325,000 | |||
Initial cost of Buildings Improvements and Equipment | 48,040,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 13,860,000 | |||
Historical Cost of Land | 4,325,000 | |||
Historical Cost of Buildings Improvements and Equipment | 61,900,000 | |||
Total | 66,225,000 | |||
Accumulated Depreciation | 30,173,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 36,052,000 | |||
Addison, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Addison, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Greenwood, Englewood, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,100,000 | |||
Initial cost of Buildings Improvements and Equipment | 30,201,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 11,584,000 | |||
Historical Cost of Land | 3,100,000 | |||
Historical Cost of Buildings Improvements and Equipment | 41,785,000 | |||
Total | 44,885,000 | |||
Accumulated Depreciation | 20,108,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 24,777,000 | |||
Greenwood, Englewood, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Greenwood, Englewood, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Innsbrook, Glenn Allen, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 5,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 40,216,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 14,199,000 | |||
Historical Cost of Land | 5,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 54,415,000 | |||
Total | 59,415,000 | |||
Accumulated Depreciation | 21,809,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 37,606,000 | |||
Innsbrook, Glenn Allen, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Innsbrook, Glenn Allen, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Eldridge Green, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,900,000 | |||
Initial cost of Buildings Improvements and Equipment | 43,791,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 12,400,000 | |||
Historical Cost of Land | 3,900,000 | |||
Historical Cost of Buildings Improvements and Equipment | 56,191,000 | |||
Total | 60,091,000 | |||
Accumulated Depreciation | 23,906,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 36,185,000 | |||
Eldridge Green, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Eldridge Green, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Liberty Plaza, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,374,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,146,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 11,991,000 | |||
Historical Cost of Land | 4,279,000 | |||
Historical Cost of Buildings Improvements and Equipment | 33,232,000 | |||
Total | 37,511,000 | |||
Accumulated Depreciation | 15,314,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 22,197,000 | |||
Liberty Plaza, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Liberty Plaza, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Park Ten II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 1,300,000 | |||
Initial cost of Buildings Improvements and Equipment | 31,712,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,258,000 | |||
Historical Cost of Land | 1,300,000 | |||
Historical Cost of Buildings Improvements and Equipment | 38,970,000 | |||
Total | 40,270,000 | |||
Accumulated Depreciation | 16,870,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 23,400,000 | |||
Park Ten II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
121 South Eight Street, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,444,000 | |||
Initial cost of Buildings Improvements and Equipment | 15,214,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 30,378,000 | |||
Historical Cost of Land | 4,444,000 | |||
Historical Cost of Buildings Improvements and Equipment | 45,592,000 | |||
Total | 50,036,000 | |||
Accumulated Depreciation | 16,769,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 33,267,000 | |||
121 South Eight Street, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
121 South Eight Street, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
801 Marquette Avenue South, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,184,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 28,280,000 | |||
Historical Cost of Land | 4,184,000 | |||
Historical Cost of Buildings Improvements and Equipment | 28,280,000 | |||
Total | 32,464,000 | |||
Accumulated Depreciation | 7,216,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 25,248,000 | |||
801 Marquette Avenue South, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
801 Marquette Avenue South, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Legacy Tennyson Center, Plano, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,067,000 | |||
Initial cost of Buildings Improvements and Equipment | 22,064,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 6,166,000 | |||
Historical Cost of Land | 3,067,000 | |||
Historical Cost of Buildings Improvements and Equipment | 28,230,000 | |||
Total | 31,297,000 | |||
Accumulated Depreciation | 9,713,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 21,584,000 | |||
Legacy Tennyson Center, Plano, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Legacy Tennyson Center, Plano, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Westchase I & II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 8,491,000 | |||
Initial cost of Buildings Improvements and Equipment | 121,508,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 24,026,000 | |||
Historical Cost of Land | 8,491,000 | |||
Historical Cost of Buildings Improvements and Equipment | 145,534,000 | |||
Total | 154,025,000 | |||
Accumulated Depreciation | 42,809,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 111,216,000 | |||
Westchase I & II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Westchase I & II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1999 Broadway, Denver CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 16,334,000 | |||
Initial cost of Buildings Improvements and Equipment | 137,726,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 43,291,000 | |||
Historical Cost of Land | 16,334,000 | |||
Historical Cost of Buildings Improvements and Equipment | 181,017,000 | |||
Total | 197,351,000 | |||
Accumulated Depreciation | 52,482,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 144,869,000 | |||
1999 Broadway, Denver CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1999 Broadway, Denver CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1001 17th Street, Denver, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 17,413,000 | |||
Initial cost of Buildings Improvements and Equipment | 165,058,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 37,227,000 | |||
Historical Cost of Land | 17,413,000 | |||
Historical Cost of Buildings Improvements and Equipment | 202,285,000 | |||
Total | 219,698,000 | |||
Accumulated Depreciation | 53,627,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 166,071,000 | |||
1001 17th Street, Denver, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1001 17th Street, Denver, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Plaza Seven, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,604,000 | |||
Initial cost of Buildings Improvements and Equipment | 54,240,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 14,025,000 | |||
Historical Cost of Land | 6,604,000 | |||
Historical Cost of Buildings Improvements and Equipment | 68,265,000 | |||
Total | 74,869,000 | |||
Accumulated Depreciation | 16,243,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 58,626,000 | |||
Plaza Seven, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Plaza Seven, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
600 17th Street, Denver, Co | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 20,876,000 | |||
Initial cost of Buildings Improvements and Equipment | 99,941,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 18,060,000 | |||
Historical Cost of Land | 20,876,000 | |||
Historical Cost of Buildings Improvements and Equipment | 118,001,000 | |||
Total | 138,877,000 | |||
Accumulated Depreciation | 23,320,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 115,557,000 | |||
600 17th Street, Denver, Co | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
600 17th Street, Denver, Co | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Monument Circle, Indianapolis, IN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,416,000 | |||
Initial cost of Buildings Improvements and Equipment | 13,279,000 | |||
Historical Cost of Land | 6,416,000 | |||
Historical Cost of Buildings Improvements and Equipment | 13,279,000 | |||
Total | 19,695,000 | |||
Accumulated Depreciation | 341,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 19,354,000 | |||
Monument Circle, Indianapolis, IN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Monument Circle, Indianapolis, IN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION - Changes in real estate investments and accumulated depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real estate investments, at cost: | |||
Balance, beginning of year | $ 1,526,665 | $ 1,615,457 | $ 2,140,733 |
Acquisitions | 19,695 | ||
Improvements | 29,194 | 60,132 | 60,910 |
Assets held for sale | (118,644) | ||
Dispositions | (199,737) | (148,924) | (586,186) |
Balance, end of year | 1,257,173 | 1,526,665 | 1,615,457 |
Accumulated depreciation: | |||
Balance, beginning of year | 423,417 | 424,487 | 538,717 |
Depreciation | 45,558 | 52,208 | 60,080 |
Assets held for sale | (35,399) | ||
Dispositions | (67,227) | (53,278) | (174,310) |
Balance, end of year | $ 366,349 | $ 423,417 | $ 424,487 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |