Franklin Street Properties Reports $9.1 Million Q3 Loss, FFO of $1.4 Million

Franklin Street Properties reported a third-quarter 2026 net loss of $9.1 million, compared with a net loss of $8.3 million in the year-earlier quarter. Revenue was $24.9 million, and funds from operations (FFO) totaled $1.4 million. The company continued its strategic review and reported that its portfolio was 66.2% leased at quarter-end.

Financial Highlights

• Third-quarter revenue was $24.9 million, compared with $27.3 million in the same quarter of 2025. Revenue for the first nine months was $77.5 million, versus $81.1 million a year earlier.
• GAAP net loss was $9.1 million, or $0.09 per basic and diluted share, for the quarter. For the first nine months, net loss was $35.2 million, or $0.34 per share.
• FFO was $1.4 million, or $0.01 per share, for the quarter; nine-month FFO was $4.2 million, or $0.04 per share.
• Adjusted funds from operations (AFFO) was a loss of $878,000, or $0.01 per share, for the quarter, and a loss of $1.1 million, or $0.01 per share, for the first nine months.
• General and administrative expenses were $7.2 million for the first nine months, down $2.6 million from the comparable 2025 period, primarily due to lower personnel costs.

Business Highlights

• The company’s 13 directly owned properties totaled approximately 4.6 million square feet and were 66.2% leased at September 30, down from 68.9% at December 31, 2025, as lease expirations exceeded new executed leases.
• During the first nine months, the company leased approximately 226,000 square feet, including approximately 163,000 square feet through renewals and expansions. The average lease term was 6.8 years.
• Franklin Street Properties sold Greenwood Plaza in Englewood, Colorado, on July 8 for approximately $19.4 million. It used approximately $8.5 million of net proceeds to repay debt, including interest and fees.
• The company continued its expanded strategic review with BofA Securities and JLL Securities, evaluating potential company, portfolio, subportfolio and individual-asset transactions. It identified asset and subportfolio sale opportunities to pursue in the fourth quarter, subject to acceptable terms and buyer diligence and financing.
• The board suspended quarterly dividends in March 2026 and plans to reassess the policy quarterly. The company said the suspension is intended in part to redirect capital toward leasing efforts.

Original SEC Filing: FRANKLIN STREET PROPERTIES CORP /MA/ [ FSP ] - 8-K - Oct. 27, 2026