PDM - Franklin Street Properties: Upcoming Dispositions Will Reveal Strong Value Proposition

• Sunbelt and Mountain West office portfolio are well-positioned for in-migration and job growth.
• FSP's upcoming property sales will reveal the company is undervalued given the cap rates at which properties are transacting at on the private markets.
• Trading at large discount to NAV compared to peer office companies.
• Abnormally high spending on capex and leasing commissions could potentially normalize over the next several years, reducing their very high P/AFFO multiple.
• Poor operating history, uncertainty in office property prices, and no guarantee that capex and leasing commissions will decrease to the amount spent by other office companies.

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