Franklin Street Properties Corp's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Franklin Street Properties Corp (FSP) recently announced a dividend of $0.01 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-25. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Franklin Street Properties Corp's dividend performance and assess its sustainability.
What Does Franklin Street Properties Corp Do?
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Franklin Street Properties Corp is a real estate investment trust. The company is focused on commercial real estate investments in office markets. The company's operations include rental income from real estate leasing, interest income from secured loans made on office properties, property dispositions, and fee income from asset/property management and development. Franklin Street Properties Corp operates in markets such as Atlanta, Dallas, Denver, Houston, and Minneapolis, and owns a portfolio of approximately 32 properties.
A Glimpse at Franklin Street Properties Corp's Dividend History
Franklin Street Properties Corp has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Franklin Street Properties Corp's Dividend Yield and Growth
As of today, Franklin Street Properties Corp currently has a 12-month trailing dividend yield of 1.64% and a 12-month forward dividend yield of 1.64%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Franklin Street Properties Corp's annual dividend growth rate was -17.80%. Extended to a five-year horizon, this rate decreased to -19.10% per year. And over the past decade, Franklin Street Properties Corp's annual dividends per share growth rate stands at -11.90%.
Based on Franklin Street Properties Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Franklin Street Properties Corp stock as of today is approximately 0.57%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Franklin Street Properties Corp's dividend payout ratio is 0.00.