Franklin Street Properties Corp. Announces Stock Repurchase Program
Friday October 28, 1:40 pm ET
WAKEFIELD, Mass.--(BUSINESS WIRE)--Oct. 28, 2005--Franklin Street Properties Corp. (AMEX:FSP - News) today announced that its Board of Directors has authorized the repurchase of up to $35 million of the company's common stock from time to time on the open market or in privately negotiated transactions.
George J. Carter, President and CEO, said the following: "FSP has recently sold several properties in its portfolio. The sale proceeds have been reinvested in new acquisitions. There continue to be properties in our portfolio which we believe could have potential as sale candidates for a variety of reasons, some "property specific" and some "market driven." However, we generally consider property sales viable only if there is a potentially better property, or other investment, in which to reinvest the sale proceeds. Without any permanent mortgage debt, and with significant cash already on the balance sheet, property sales generate cash that is not currently needed for reserves or for mortgage debt pay down. Consequently, identifiable, targeted and controlled reinvestment vehicles for these sale proceeds are important. Current high market pricing and competition for potentially acceptable property acquisitions continue to present challenges, but new opportunities are beginning to appear more plentiful than in the past two years. Upgrading FSP's portfolio is an ongoing objective. In addition to new real estate acquisitions in which to reinvest proceeds from portfolio property sales, the company, because of its public listing on the AMEX on June 2, 2005, now has the option to more easily reinvest its cash into its own stock. The adoption of the stock repurchase program will allow the company the option of investment of its cash in its stock in addition to investment in new acquisition properties, when the relative financial opportunity is favorable."
The timing and amount of any shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
The repurchase program will be funded using the company's working capital. Franklin Street Properties Corp. had approximately 60,525,608 shares of common stock outstanding as of October 27, 2005.
(I like to post the whole PR for future reference because yahoo links stop working after a few months)
This is good news and makes me feel better about being underwater on this thing. (Along with the insiders) |
