Franklin Street Properties Corp.

To your question, please press star and number one again. I'd now like to hand over the call to Scott Carter, General Counsel. You may now begin the conference.

Good morning. Welcome to the Franklin Street Properties fourth quarter and full year 2023 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 factor section of our annual report on Form 10-K for the year ended December 31, 2023, which is on file with the SEC. In addition, these forward-looking statements represent the company's expectations only as of today, February 27, 2024. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so. Any forward-looking statements 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 will turn the call over to John DeMeritt. John?

Thank you, Scott, and good morning, everyone. I'm going to give a brief overview of our fourth quarter and full year results. Afterward, I'll pass the call to George for his thoughts. As a reminder, our comments today will refer to our earnings release supplemental package in 10K, which, as Scott mentioned, can be found on our website or filed last night. We reported our funds from operations or FFO of about $6.9 million or $0.07 per share for the fourth quarter and about $30 million or $0.29 per share for the full year of 2023. We reported gap net income of about 3.6 million or 3 cents per share for the fourth quarter and a gap net loss of about 48.1 million or 47 cents per share for the full year of 2023. Our strategy has been and continues to be to make dispositions and to use the proceeds primarily to repay our lenders. We are pleased to report that we have extended the maturities of our debt through April 1st, 2026. This will enable us to have more time to continue dispositions and debt repayments. We very much appreciate the support and got 100% participation on these extensions from our long-standing lender groups. We think the extensions align well with our current footprint and continued effort to reduce or eliminate debt. Immediately following the closing of the extensions, we had $303 million of total debt that remains outstanding and about $39.2 million in cash and cash equivalents, after having made $102 million worth of debt repayments and paying for related transaction closing costs, including accrued interest. We started the debt repayment program in the fourth quarter of 2020 when we had about $1 billion in unsecured debt and have since repaid about $700 million of that debt in about the last three years. We finished 23 at a net debt to EBITDA ratio of 5.3 times, and our debt service coverage ratio for the fourth quarter was 2.1 times. These calculations are disclosed in our supplemental filing.