Franklin Street Properties Corp.

Hello, good morning everyone and welcome to the Franklin Street Properties Corp fourth quarter and fall year 2021 results. My name is Gemma and I'll be the operator for today. If you'd like to ask a question, please press star followed by one in your telephone keypad. And if you change your mind, please press star followed by two. These will be taken during the Q&A session today. I'd now like to hand the call over to Scott Carter, General Counsel. Please go ahead, Scott. Thank you.

Good morning and welcome to the Franklin Street Properties fourth quarter 2021 earnings call. Joining me this morning are George Carter, our Chief Executive Officer, John DeMeritt, our Chief Financial Officer, Jeff Carter, our President and Chief Investment Officer, John Donahue, President of FSP Property Management, and Will Friend, Executive Vice President of FSP Property Management. Please note that various remarks that we may make about future expectations, plans, and prospects for the company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our annual report on Form 10-K for the year ended December 31, 2021, which is on file with the SEC. In addition, these forward-looking statements represent the company's expectations only as of today, February 16, 2022. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so. Any forward-looking statement should not be relied upon as representing the company's estimates or views as of any date subsequent to today. At times during this call, we may refer to funds from operations or FFO, reconciliations of FFO, and other non-GAAP financial measures to GAAP net income are contained in yesterday's press release, which is available in the investor relations section of our website at www.fspreit.com. Now I'll turn the call over to John DeMeritt. John? Thank you, Scott, and good morning, everyone.

I'm going to give a very brief overview of our fourth quarter and year-end results. And afterward, I'll pass the call to George for his comments. As a reminder, our comments today will refer to our earnings release, supplemental package, and 10-K, which, as Scott mentioned, can be found on our website. We reported net income of about 78.6 million or 75 cents per share for the fourth quarter of 2021 and 92.7 million or 87 cents per share for the full year 2021. We reported funds from operations or FFO of about 11 million or 10 cents per share for the fourth quarter of 21 and 58.5 million or 55 cents per share for the full year of 2021. During Q4, we completed the sale of three properties at a net gain of about $83.9 million and used the proceeds from those sales to repay $200 million of our 2023 term loan maturity and $15 million to repay a drawn balance on our revolver. Looking back, we had approximately $1 billion in debt at the end of September of 2020. We sold the property at the end of December in 2020, and 10 properties were sold during 2021. We used asset sale proceeds primarily to repay about 53% of our debt. At December 31st, 21, we had $475 million of debt outstanding. We ended 2020 with a net debt to EBITDA ratio of 8.7 times, which has since dropped very significantly to 6.2 times at the end of 21, primarily as a result of our debt repayment strategy. Our debt service coverage ratio is over three times for the fourth quarter as well. We believe that in 2021, we have meaningfully lowered our leverage and strengthened our balance sheet. Shortly after year end, we entered into a new revolver with availability of $237.5 million and terminated our existing revolver. We appreciate our bank group and believe this new revolver will serve us and our liquidity needs as we look ahead. As a reminder, all of our debt remains unsecured. With that, I'll turn the call over to George.