Franklin Street Properties Corp. Announces Third Quarter 2025 Results

Core Viewpoint - Franklin Street Properties Corp. (FSP) is focusing on improving leasing and occupancy in its portfolio despite challenges in the national office sector, with signs of stabilization and increased tenant activity observed [2][4]. Financial Highlights - For the third quarter ended September 30, 2025, FSP reported a GAAP net loss of $8.3 million, translating to $0.08 per basic and diluted share. For the nine months, the net loss was $37.6 million, or $0.36 per share [5]. - Funds From Operations (FFO) for the third quarter was $2.3 million, or $0.02 per share, and for the nine months, it was $7.6 million, or $0.07 per share [5]. - The company leased approximately 274,000 square feet during the nine months, with 219,000 square feet from renewals and expansions of existing tenants [5]. - The leased percentage of the directly-owned real estate portfolio decreased to 68.9% as of September 30, 2025, down from 70.3% at the end of 2024 [5]. - The weighted average GAAP base rent per square foot increased by 6.0% to $31.81 compared to the previous year [5]. Leasing Highlights - The national office vacancy rates have slightly declined for the first time since early 2019, indicating a potential recovery in the market [2]. - There is an increased demand for larger lease transactions, with more prospective tenants looking to expand their office space [2]. Strategic Review - The Board of Directors is conducting a strategic review with BofA Securities to explore alternatives for maximizing shareholder value, including potential sales and refinancing options [4][3]. - No specific outcomes or timelines for the strategic review have been disclosed, and further comments will be withheld until completion [4]. Dividend Information - A quarterly cash dividend of $0.01 per share was declared for the three months ended September 30, 2025, to be paid on November 6, 2025 [6]. Real Estate Update - The company focuses on infill and central business district office properties primarily in the U.S. Sunbelt and Mountain West regions, aiming for long-term growth and appreciation [12].