Franklin Street Properties Corp. (AMEX:FSP) Q4 2022 Earnings Call Transcript

And that’s really why we’ve suspended share repurchase.

Operator: Our next question comes from the line of Craig Kucera with B. Riley Securities. Your line is now open.

Craig Kucera: Your G&A has dropped quite a bit over the past couple of quarters. And I’m curious to hear, have there been any staffing reductions and should we expect G&A to be more in the $3 million range per quarter for the foreseeable future?

John Demeritt: I’ll take that one. Craig, this is John Demeritt. The drop that we had in ’22 compared to ’21 was primarily from personnel cost changes. We didn’t have any staff reductions. We had some people leave over the last year or so. But that’s been primarily what it was, some of that’s bonus compensation that was reduced. So that’s the reason for the decrease in G&A. I can’t really quote what G&A is going to be like…

Craig Kucera: G&A is going to be what? I’m sorry, I missed that.

John Demeritt: I said I can’t really quote what G&A is going to be in the future, but I mean, it should be a little lower in ’23 than it was ’22.

Craig Kucera: Okay, great. And just a housekeeping item. Did you guys — as far as lease termination fees this quarter, was that somewhere in the $800,000 range. .

John Demeritt: Yes, it was. For the full year ’22, it was $2.8 million and it was $0.5 million for ’21. We had four or five good-sized tenants that we had some termination fee income from this year.

Operator: There are currently no additional questions waiting at this time. So I’ll pass the conference back over to George Carter for closing remarks.

George Carter: Thank you, everyone, for tuning into the call. We’re looking forward to 2023. Certainly, ’22 was interesting coming out of COVID and then facing the capital market changes. Again, as Jeff said, it’s too early to predict 2023 in terms of dispositions, particularly. But we do have properties in the disposition queue and there is activity on them. And maybe as exciting as anything is just this steady back to work and steady now activity in our energy markets, of which we have some concentration, as you know. So we’re excited about 2023 looking forward to it. Look forward to talking to you all next quarter.

Operator: That concludes the Franklin Street Properties Corporation Fourth Quarter and Full Year 2022 Results Conference Call. Thank you for your participation. I hope you have a wonderful day.