0001104659-26-025284
SEC filingFranklin Street Properties Corp. (FSP) reported a net loss of $45.0 million for fiscal year 2025, driven by total revenues of $107.2 million against total expenses of $140.0 million. The company generated $3.8 million in net cash from operating activities, but experienced a net decrease in cash of $12.1 million due to $10.3 million used in investing activities and $5.6 million used in financing activities. Key factors impacting the loss included a $12.9 million loss on sale of properties and impairment of assets held for sale, and $24.7 million in interest expense. The company's balance sheet shows total assets of $892.9 million, with real estate assets net of $793.7 million, total liabilities of $285.9 million, and stockholders' equity of $607.0 million. As a REIT focused on commercial office properties, FSP owned 14 properties as of December 31, 2025.
Franklin Street Properties Corp. (FSP) reported challenging financial results for fiscal year 2025, ending December 31, 2025. The company generated total revenues of $107.2 million, consisting primarily of $107.2 million in rental income with an additional $261,000 from other sources. However, total expenses reached $140.0 million, leading to a loss before taxes of $44.8 million. After accounting for a $189,000 tax expense, the company recorded a net loss of $45.0 million. The weighted average number of shares outstanding was 103.6 million for both basic and diluted calculations, resulting in net loss per share of $0.00 for both measures. The company's performance was significantly impacted by a $12.9 million loss on sale of properties and impairment of assets held for sale, as well as $24.7 million in interest expense.
The company's revenue stream is concentrated in rental income from its commercial real estate portfolio. For fiscal year 2025, rental revenue accounted for $107.2 million of the total $107.2 million in revenues, with only $261,000 coming from other sources. The document indicates the company operates in only one segment: real estate operations. As a REIT focused on commercial real estate investments primarily in office markets, FSP's current strategy targets infill and central business district office properties in the United States sunbelt and mountain west regions as well as select opportunistic markets. The company owned and operated 14 properties as of December 31, 2025, from which it derives rental revenue.
The company's financial results show significant challenges with profitability. With total revenues of $107.2 million and total expenses of $140.0 million, the company operated at a substantial deficit. Major expense categories included real estate operating expenses of $42.0 million, real estate taxes and insurance of $18.2 million, depreciation and amortization of $42.6 million, general and administrative expenses of $12.4 million, and interest expense of $24.7 million. The company also recorded several non-operating items including a $394,000 gain on consolidation of Sponsored REIT, $986,000 in interest income, and a $12,000 loss on extinguishment of debt. The net loss of $45.0 million represents a significant negative return on the company's asset base.
The company generated $3.8 million in net cash from operating activities despite reporting a $45.0 million net loss, primarily due to $45.3 million in depreciation and amortization expense adjustments. Investing activities used $10.3 million in cash, including $16.4 million for property improvements and $3.0 million for consolidation of Sponsored REIT, partially offset by $6.1 million in proceeds from property sales. Financing activities used $5.6 million in cash, including $4.1 million in distributions to stockholders and $5.7 million in deferred financing costs, partially offset by $77.0 million in borrowings under Bank note payable. The balance sheet shows total assets of $892.9 million, with real estate assets net of accumulated depreciation totaling $793.7 million. Total liabilities stand at $285.9 million, including $125.6 million in term loans payable and $122.7 million in Series A & Series B Senior Notes. Stockholders' equity totals $607.0 million.
The filing contains forward-looking statements cautioning investors about risks and uncertainties that could affect future operations. Management identifies several risk factors including adverse changes in general economic or local market conditions, impacts of the long-term effects of the COVID-19 pandemic, wars, terrorist attacks or other acts of violence, changes in tariffs and trade restrictions, inflation rates, interest rates, disruptions in debt markets, and economic conditions in markets where the company owns properties. The company also notes risks related to lessening demand for office real estate, adverse changes in energy prices affecting markets like Dallas, Denver and Houston, changes in government regulations, uncertainty about governmental fiscal policy, and unanticipated expenditures. The company's strategy remains focused on infill and central business district office properties in sunbelt and mountain west regions, believing these areas have macro-economic drivers with potential to increase occupancies and rents.