Core Viewpoint - Franklin Street Properties Corp. has conducted its Fourth Quarter and Full Year 2025 earnings call, indicating a focus on financial performance and future expectations [2]. Group 1: Earnings Call Overview - The earnings call was led by Scott Carter, Executive VP, General Counsel & Secretary, alongside CEO George Carter [2]. - The company emphasizes that remarks made during the call may include forward-looking statements, which are subject to various risks and uncertainties [3][4]. Group 2: Forward-Looking Statements - The company clarifies that forward-looking statements reflect expectations as of March 10, 2026, and there is no obligation to update these statements in the future [4]. - It is noted that actual results may differ materially from those indicated by forward-looking statements due to important factors discussed in the Risk Factors section of the annual report [3].

Financial Data and Key Metrics Changes - The company has not conducted traditional quarterly earnings calls recently due to an ongoing review of potential strategic alternatives [4] - The refinancing of the credit facility was completed, closing a $320 million secured credit facility, which replaced approximately $249 million of outstanding indebtedness [7][8] - The decision to suspend quarterly dividends is expected to preserve approximately $4.1 million in cash annually, which can be redeployed into leasing efforts [9] Business Line Data and Key Metrics Changes - General and administrative expenses were reduced by approximately $1.5 million, or about 10%, declining from $13.9 million in 2024 to $12.4 million in 2025 [10] Market Data and Key Metrics Changes - National office transaction volume has declined significantly from an average of $140-$150 billion per year to approximately $80-$90 billion annually, indicating reduced market liquidity [11] - The buyer pool has become smaller and more selective, with many traditional institutional investors remaining on the sidelines [12] - The current buyer universe consists primarily of opportunistic capital and private equity funds targeting higher IRR thresholds [13] Company Strategy and Development Direction - The board is evaluating various strategic alternatives, including portfolio-level transactions, individual asset sales, and refinancing alternatives, to maximize shareholder value [5][6] - The company remains focused on improving leasing performance and occupancy, maintaining financial flexibility, and continuing the review of strategic alternatives [17] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the significant shift in capital market conditions for the office sector due to rising interest rates and reduced institutional capital allocation [10] - The company is committed to evaluating opportunities that may enhance shareholder value while considering the realities of the current capital markets environment [16][17] Other Important Information - The refinancing of the credit facility simplifies the capital structure by replacing a large syndicate of lenders with a single institutional lender experienced in real estate [8] - The company is open to pursuing transactions where market conditions allow values that reflect the quality and long-term economics of its assets [17] Q&A Session Summary - The company did not take questions during this call, as it was focused on providing updates regarding its strategic review process and financial status [5]

Financial Data and Key Metrics Changes - The company has not conducted traditional quarterly earnings calls recently due to an ongoing review of potential strategic alternatives [4] - The refinancing of the credit facility was completed, closing a $320 million secured credit facility, which replaced approximately $249 million of outstanding indebtedness [7][8] - The decision to suspend quarterly dividends is expected to preserve approximately $4.1 million in cash annually, which can be redeployed into leasing efforts [9] Business Line Data and Key Metrics Changes - General and administrative expenses (G&A) were reduced by approximately $1.5 million, or about 10%, declining from $13.9 million in 2024 to $12.4 million in 2025 [10] Market Data and Key Metrics Changes - National office transaction volume has declined from an average of $140-$150 billion per year to approximately $80-$90 billion annually, indicating a substantial reduction in overall market liquidity [11] - The buyer pool has become smaller and more selective, with many traditional institutional investors remaining on the sidelines [12] Company Strategy and Development Direction - The company is focused on three priorities: improving leasing performance and occupancy, maintaining financial flexibility and operational discipline, and continuing the review of strategic alternatives to enhance shareholder value [17] - The board is evaluating various strategic alternatives, including portfolio-level transactions, individual asset sales, and refinancing alternatives [5][6] Management's Comments on Operating Environment and Future Outlook - Management noted that the office sector has experienced significant shifts in capital market conditions due to rising interest rates and reduced institutional capital allocation [10] - The company remains committed to evaluating opportunities that may enhance shareholder value while considering current market conditions [16][17] Other Important Information - The company is actively engaged in a strategic review process that began in May 2025, with no assurances regarding the outcome or timing of this process [6] - The current transactional capital markets environment for office real estate is characterized by reduced transaction liquidity and increased return expectations on office investments [12][13] Q&A Session Summary - The call did not include a Q&A session as management opted for brief remarks and did not take questions [5]

Financial Data and Key Metrics Changes - The company has not conducted traditional quarterly earnings calls recently due to an ongoing review of potential strategic alternatives [4] - The refinancing of the credit facility was completed, amounting to $320 million, which replaced approximately $249 million of outstanding indebtedness [6][7] - The decision to suspend quarterly dividends is expected to preserve approximately $4.1 million in cash annually [8] Business Line Data and Key Metrics Changes - General and administrative expenses (G&A) were reduced by approximately $1.5 million, or about 10%, declining from $13.9 million in 2024 to $12.4 million in 2025 [9] Market Data and Key Metrics Changes - National office transaction volume has declined to approximately $80-$90 billion annually, down from pre-pandemic levels of $140-$150 billion [10] - The buyer pool has become smaller and more selective, with many traditional institutional investors reassessing their allocations to the office sector [11][12] - Transaction activity in markets such as Denver, Dallas, Houston, and Minneapolis remains well below historical levels, although there are signs of gradual stabilization in leasing markets [14] Company Strategy and Development Direction - The company is focused on three priorities: improving leasing performance and occupancy, maintaining financial flexibility and operational discipline, and continuing the review of strategic alternatives [15] - The board is evaluating various strategic alternatives, including portfolio-level transactions, individual asset sales, and refinancing options, to maximize shareholder value [5][6] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the significant shift in capital market conditions for the office sector due to rising interest rates and reduced institutional capital allocation [9][10] - The company remains committed to evaluating opportunities that may enhance shareholder value while considering the realities of the current capital markets environment [15] Other Important Information - The company has engaged BofA Securities as a financial advisor to assist in the strategic review process [5] - The board's objective is to conduct the strategic review in a disciplined manner, with no assurances regarding the outcome or timing of the process [6] Summary of Q&A Session - The company did not take questions during this earnings call, focusing instead on providing updates regarding its strategic review and financial position [5]

Franklin Street Properties Corp. Supplemental Operating & Financial Data 401 Edgewater Place ~Wakefield, MA 01880 781.557.1300.~ www.fspreit.com Fourth Quarter 2025 Table of Contents | ` | Pa | Pa | ge | ge | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | - ...

Property Sales and Losses - The company sold an office property in Indianapolis for a gross sale price of $6 million, incurring a loss of $12.9 million[26]. - The company sold an office property in Richardson, Texas for $35 million, resulting in a loss of approximately $2.1 million[26]. - The company sold an office property in Atlanta for $34 million, incurring a loss of $27.2 million[26]. - The company sold an office property in Miami for $68 million, resulting in a loss of approximately $18.9 million[26]. Debt and Financing - The company closed a $320 million secured credit facility to repay approximately $249 million of outstanding indebtedness[30]. - As of December 31, 2025, the interest rate on the BofA Term Loan was 9.00% per annum, with $55.3 million outstanding[236]. - If market rates on the BofA Term Loan increased by 10%, future earnings and cash flows would decrease by approximately $0.5 million[236]. - The interest rate on the BMO Term Loan was also 9.00% per annum as of December 31, 2025, with $70.68 million outstanding[237]. - A 10% increase in market rates on the BMO Term Loan would decrease future earnings and cash flows by approximately $0.6 million[237]. - The company entered into a Credit Agreement on February 26, 2026, providing for Initial Term Loans in an aggregate principal amount of $275 million[238]. - The total contractual variable rate borrowings under the BofA and BMO Term Loans amounted to $125.995 million as of December 31, 2025[239]. - The BofA Term Loan is scheduled to mature on April 1, 2026, with a total payment due of $55.315 million[239]. - The BMO Term Loan Tranche B is also set to mature on April 1, 2026, with a total payment due of $70.68 million[239]. - The company does not believe that the interest rate risk on either the BofA or BMO Term Loans was material as of December 31, 2025[236][237]. - The company has been actively managing its debt exposure through refinancing efforts[238]. Business Operations and Strategy - The company believes the intrinsic value of its real estate portfolio exceeds its current public market valuation[31]. - The company is exploring strategic alternatives to maximize shareholder value, including asset sales and refinancing[29][34]. - The company continues to derive revenue from owned properties and property management services[25]. - The company faces competition in its markets, which may affect rental revenues and occupancy levels[35]. Workforce - The company had 28 employees as of March 5, 2026, with women representing 46.4% of the workforce[41].

Financial Performance - Rental revenue for Q4 2025 was $26.04 million, a decrease of 4.6% from $27.3 million in Q3 2025[15] - The company reported a net loss of $7.32 million for Q4 2025, compared to a net loss of $8.33 million in Q3 2025, indicating a 12% improvement[15] - Adjusted EBITDA for Q4 2025 was $9.68 million, up 12.8% from $8.58 million in Q3 2025[15] - Funds from Operations (FFO) increased to $3.44 million in Q4 2025, compared to $2.32 million in Q3 2025, representing a 48.1% increase[15] - Net loss for the year ended December 31, 2025, was $44,960 thousand, an improvement from a net loss of $52,723 thousand in 2024[23] - Funds From Operations (FFO) for the year ended December 31, 2025, totaled $11,007,000, compared to $13,286,000 in the previous year, indicating a decline[29] - The company reported a net loss of $44,960,000 for the year ended December 31, 2025, compared to a net loss of $52,723,000 in the previous year[29] - Adjusted EBITDA for the year ended December 31, 2025, was $35,470,000, down from $40,542,000 in the previous year[31] - The interest coverage ratio for the year ended December 31, 2025, was 1.43, compared to 1.53 in the previous year[31] Market Capitalization and Debt - The company’s total market capitalization as of December 31, 2025, was $0.347 billion, down from $0.415 billion in Q3 2025[15] - The debt to total market capitalization ratio increased to 71.6% in Q4 2025 from 60.0% in Q3 2025[15] - Total debt outstanding as of December 31, 2025, was $248,917 thousand, with an interest rate of 9.00% across all debt instruments[38] - Total Market Capitalization as of December 31, 2025, is $347.423 million, with a market capitalization of $98.506 million and total debt of $248.917 million[70] Assets and Liabilities - Total assets decreased to $892.88 million in Q4 2025 from $901.03 million in Q3 2025[15] - Total liabilities increased to $285,695 thousand as of September 30, 2025, from $278,543 thousand in the previous quarter[21] - Total stockholders' equity decreased to $615,337 thousand as of September 30, 2025, from $624,700 thousand in the previous quarter[21] - Cash, cash equivalents, and restricted cash decreased to $30,571 thousand at the end of the period, down from $42,683 thousand at the beginning of the period[23] - The company’s total assets include straight-line rent receivable of $38.744 million and tenant rent receivables of $471,000[70] - The company’s liabilities include accounts payable and accrued expenses totaling $31.118 million and tenant security deposits of $6.198 million[70] Property and Occupancy - As of December 31, 2025, Franklin Street Properties Corp. owned a portfolio of 14 properties totaling 4.8 million square feet[13] - The occupancy rate for owned properties was 68.9% as of December 31, 2025, slightly down from 69.1% in Q3 2025[15] - The leased percentage of total owned properties as of December 31, 2025, was 68.9%, down from 70.3% a year earlier[44] - The total rentable square feet (RSF) in the Midwest region increased to 5,923,000, reflecting a 3.0% increase from 5,753,000 in the previous year[25] - The South region reported a decrease in RSF to 17,608,000, down 2.9% from 18,139,000 year-over-year[25] - The West region experienced a significant decline in RSF, dropping to 22,498,000, a decrease of 6.8% from 24,135,000[25] - The total portfolio square footage is 4,807,663, with 1,496,641 square feet currently vacant[62] - The total leased square footage as of December 31, 2025, is 1,593,511 square feet, representing 33.1% of the total portfolio[53] Cash Flow and Expenditures - Net cash provided by operating activities was $3,753 thousand for the year ended December 31, 2025, compared to $8,987 thousand in 2024[23] - Net cash used in financing activities was $5,559 thousand for the year ended December 31, 2025, compared to a net cash used of $164,468 thousand in 2024[23] - Capital expenditures for the year ended December 31, 2025, totaled $18,422,000, with tenant improvements accounting for $10,281,000[65] Leasing Activity - New leasing activity for the year ended December 31, 2025, was 93,000 square feet, while renewals and expansions totaled 320,000 square feet, resulting in a combined total of 413,000 square feet[56] - Lease expirations for 2026 include 34 leases totaling 365,916 square feet, with an annualized rent of $12,569,114[61] - The cumulative percentage of lease expirations by 2036 and thereafter is 100%[62] - The company has 230 leases in total, with an annualized rent of $104,730,612 across all leased properties[62] Dividends - The company declared a dividend of $0.01 per share for Q4 2025, consistent with the previous quarter[15] - Total dividends declared for the quarter ended March 31, 2025, were $1,036 thousand, maintaining a consistent dividend of $0.01 per share[41]

Core Insights - Franklin Street Properties Corp. reported its financial results for the fourth quarter and full year 2025, highlighting a focus on improving leasing and occupancy despite challenges in the office sector [1][2][3] Financial Performance - Funds From Operations (FFO) for Q4 2025 was $3.4 million, or $0.03 per share, while for the full year it was $11.0 million, or $0.11 per share [1][2] - The GAAP net loss for Q4 2025 was $7.3 million, or $0.07 per share, and for the full year it was $45.0 million, or $0.43 per share [1][2] Leasing Highlights - The weighted average GAAP base rent per square foot for leases signed in 2025 was $32.42, a 5.7% increase from 2024 [1][2] - The overall leased percentage of the portfolio decreased to 68.9% as of December 31, 2025, down from 70.3% in 2024, attributed to lease expirations exceeding new leases [1][2] - Approximately 413,000 square feet of space was leased in 2025, with 320,000 square feet coming from renewals and expansions of existing tenants [1][2] Strategic Review - The Board of Directors is actively reviewing strategic alternatives to maximize shareholder value, including portfolio-level transactions and asset dispositions [1][2] - The company believes that the intrinsic value of its real estate portfolio exceeds its current market valuation, but market conditions have not been favorable for transactions that reflect this value [1][2] Dividend Suspension - The Board has decided to suspend quarterly dividend payments to conserve approximately $4.1 million in cash annually, redirecting funds towards leasing efforts [1][2] Real Estate Portfolio - The company’s real estate portfolio consists of 14 properties totaling approximately 4.8 million square feet, primarily located in the Sunbelt and Mountain West regions [1][2] - The average lease term for leases signed in 2025 was 5.7 years, compared to 6.3 years in 2024 [1][2] Cash Flow and Expenses - Total revenue for 2025 was $107.2 million, down from $120.1 million in 2024, while total expenses were $140.0 million, down from $152.8 million [2] - Cash flows from operating activities for 2025 were $3.8 million, a decrease from $9.0 million in 2024 [2]

Franklin Street Properties Corp. to Announce Fourth Quarter and Full Year 2025 ResultsMar 6, 2026 1:21 PM Eastern Standard Time# Franklin Street Properties Corp. to Announce Fourth Quarter and Full Year 2025 ResultsShare---WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (the "Company†or "FSP†) (NYSE American: FSP), a real estate investment trust (REIT), announced today that it expects to release its results for the fourth quarter and full year 2025 after the market closes on Monday, Ma ...

WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (the "Company†, "FSP†, "our†or "we†) (NYSE American: FSP) announced today that it has closed a $320 million secured credit facility (the "Facility†) with an affiliate of TPG Credit (the "Lender†). The Company repaid in full all of its outstanding $248.9 million aggregate principal amount of indebtedness in an initial drawdown of $258.5 million under the Facility, net of original issue discount of $16.5 million (the "Initial Te. ...