Franklin Street Properties Corp.

Good morning. Thank you for attending today's Franklin Street Properties Corporation fourth quarter and full year 2022 results conference call. My name is Megan and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to Scott Carter, General Counsel. Scott, please go ahead.

Good morning and welcome to the Franklin Street Properties fourth quarter 2022 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, and John Donahue, President of FSP Property Management. Also joining me this morning are Toby Daly and Will Friend, both Executive Vice Presidents 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 factors section of our annual report on Form 10-K for the year ended December 31, 2022, which is on file with the SEC. In addition, these forward-looking statements represent the company's expectations only as of today, February 15, 2023. 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 brief overview of the fourth quarter and year-end results of our company. 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 in 10-K, which, as Scott mentioned, can be found on our website. We reported funds from operation or FFO of about $10.5 million or $0.10 per share for the fourth quarter and $41.3 million or $0.40 per share for the full year of 22. We reported gap net income, I'm sorry, gap net loss of about $2.9 million or $0.03 a share for the fourth quarter and gap net income of about $1.1 million or $0.01 per share for the full year of 22. On December 28, 2022, we sold an office property located in Evanston, Illinois, for a sale price of $27.8 million that resulted in a gain of $3.9 million. We used the proceeds from this sale to repay a portion of our revolver balance. We finished 22 at a net debt-to-EBITDA ratio of 6.3 times. At December 31, 2022, we had $413 million of debt outstanding and our debt service coverage ratio was 2.84 times. These calculations are disclosed in the supplemental filing. We remain focused on showing the value of our assets to our shareholders from select dispositions and repayment of bank debt. Since our disposition program began in late 2020, we have repaid about $617 million in bank-related debt, which is about 60% of our total debt. Our strategy has been and continues to be to make dispositions and repayment of bank debt. With this in mind, we're pleased to report that we have right-sized and extended the maturities of our revolver and term loan through October 1st, 2024. We very much appreciate the support and got 100% participation from our longstanding bank group for both facilities. We think the extensions align well with our current footprint and continued efforts to reduce or eliminate bank debt. We believe that these extensions are well-suited to our plans and for our shareholders not to bear the expense of potentially unneeded capacity or term. With that, I'll turn the call over to George. George?