FSP · Franklin Street Properties Corp.

Franklin Street Properties Corp. announced Q1 2026 results showing a GAAP net loss of $9.5 million, or $0.09 per diluted share, a significant improvement from the $21.4 million loss in Q1 2025, primarily due to the absence of a $13.3 million loss on property sales and impairments recorded last year. Rental revenue dipped slightly to $26.2 million from $27.1 million year-over-year, driven by lower occupancy, while expenses decreased modestly with general and administrative costs down $815,000 due to reduced personnel expenses. Interest expense rose to $6.8 million from $5.7 million, reflecting higher debt levels post-refinancing. Non-GAAP FFO came in at $1.2 million or $0.01 per share, lower than prior year amid softer leasing net activity. Portfolio occupancy slipped to 68.4% from 68.9% at year-end 2025 and 69.2% a year ago, as lease expirations outpaced new leases, though the company leased 145,000 square feet—mostly renewals—at rents 6.4% above prior averages and longer terms of 6.2 years. CEO George J. Carter emphasized an expanded strategic review with BofA Securities and JLL as co-advisors to pursue transactions like sales, M&A, or portfolio deals, bolstered by recent debt refinancing for flexibility. Notable progress includes a confidentiality agreement and PSA negotiations for Greenwood Plaza with a potential owner-user buyer, subject to due diligence. Dividend suspension since March preserves $4.1 million annually for leasing, with quarterly reassessment planned. Management highlighted leasing momentum, cost efficiencies, and early market stabilization signs in office assets, positioning for value maximization amid uneven capital markets.