Franklin Street Properties Corp (FSP) has reported an 88.78 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.73 million, or $0.02 a share in the quarter, compared with $15.41 million, or $0.15 a share for the same period last year.     

Revenue from real estate activities during the quarter increased 7.74 percent or $4.74 million to $65.99 million.

Cost of revenue rose 14.66 percent or $3.69 million during the quarter to $28.83 million. Gross margin for the quarter contracted 264 basis points over the previous year period to 56.31 percent.

Total expenses were $64.40 million for the quarter, up 12.40 percent or $7.10 million from year-ago period. Operating margin for the quarter contracted 405 basis points over the previous year period to 2.41 percent.

Operating income for the quarter was $1.59 million, compared with $3.96 million in the previous year period.

Income from operating leases during the quarter rose 8.31 percent or $4.96 million to $64.61 million.

Income from management fees during the quarter dropped 13.84 percent or $0.22 million to $1.36 million.

George J. Carter, chairman and chief executive officer, commented as follows: "As 2017 begins, FSP expects to see Funds From Operations (FFO) growth for the full year, resulting in between $1.04 and $1.09 per fully diluted share. We expect growth to be led by contributions from increased leasing activity at our properties, full year contribution from our 2016 acquisitions and anticipated successful results from our redevelopment of 801 Marquette in downtown Minneapolis. Over the past several years, the portfolio transition efforts at FSP have resulted in positioning a significant portion of our portfolio into more urban and infill locations. Over 75% of our portfolio is now located within our five core markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. We are optimistic about our prospects for long-term growth and look forward with anticipation to 2017 and beyond."

The company has spent $244.97 million cash to meet investing activities during the year as against cash outgo of $38.10 million in the last year.

Cash flow from financing activities was $141.77 million for the year as against cash outgo of $54.14 million in the last year period.

Cash and cash equivalents stood at $9.34 million as on Dec. 31, 2016, down 48.60 percent or $8.83 million from $18.16 million on Dec. 31, 2015.

Investments stood at $12.91 million as on Dec. 31, 2016, up 1,040.19 percent or $11.78 million from year-ago.

Total assets grew 8.81 percent or $169.12 million to $2,088.13 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,126.09 million as on Dec. 31, 2016, up 14.51 percent or $142.73 million from year-ago.

Return on assets moved down 72 basis points to 0.08 percent in the quarter. At the same time, return on equity moved down 147 basis points to 0.18 percent in the quarter.