Frankline Street Properties | 8-K: FY2026 Q2 Revenue: USD 26.36 M

Revenue: As of FY2026 Q2, the actual value is USD 26.36 M.

EPS: As of FY2026 Q2, the actual value is USD -0.16.

EBIT: As of FY2026 Q2, the actual value is USD -8.568 M.

Net Loss

Franklin Street Properties Corp. reported a GAAP net loss of - $16.6 million for the three months ended June 30, 2026, and - $26.1 million for the six months ended June 30, 2026 . This compares to a net loss of - $7.876 million for the three months ended June 30, 2025, and - $29.311 million for the six months ended June 30, 2025 . The net loss per basic and diluted share was - $0.16 and - $0.25 for the respective periods in 2026 .

Segment Revenue

Total rental revenue for Franklin Street Properties Corp. was $26,355 thousand for the three months ended June 30, 2026, compared to $26,715 thousand for the same period in 2025 . For the six months ended June 30, 2026, total rental revenue was $52,580 thousand, down from $53,822 thousand in the prior year period .

Operating Costs

• Real estate operating expenses: $10,006 thousand for Q2 2026 (vs. $10,701 thousand in Q2 2025) and $20,296 thousand for H1 2026 (vs. $20,796 thousand in H1 2025) .
• Real estate taxes and insurance: $4,550 thousand for Q2 2026 (vs. $4,191 thousand in Q2 2025) and $8,793 thousand for H1 2026 (vs. $9,560 thousand in H1 2025) .
• Depreciation and amortization: $10,432 thousand for Q2 2026 (vs. $10,626 thousand in Q2 2025) and $21,012 thousand for H1 2026 (vs. $21,450 thousand in H1 2025) .
• General and administrative expenses: $2,401 thousand for Q2 2026 (vs. $3,281 thousand in Q2 2025) and $5,070 thousand for H1 2026 (vs. $6,765 thousand in H1 2025) . General and administrative expenses for the six months ended June 30, 2026, were $1.7 million lower compared to the prior year period due to lower personnel costs .
• Interest expense: $7,987 thousand for Q2 2026 (vs. $6,339 thousand in Q2 2025) and $14,799 thousand for H1 2026 (vs. $12,030 thousand in H1 2025) .

Cash Flow

• Net Cash Used in Operating Activities: - $2,117 thousand for the six months ended June 30, 2026, a significant improvement from - $8,359 thousand for the same period in 2025 .
• Net Cash Used in Investing Activities: - $5,834 thousand for the six months ended June 30, 2026, compared to - $1,221 thousand for the same period in 2025 .
• Net Cash Used in Financing Activities: - $161 thousand for the six months ended June 30, 2026, compared to - $2,585 thousand for the same period in 2025 .
• Cash, Cash Equivalents, and Restricted Cash: $22,459 thousand as of June 30, 2026, down from $30,571 thousand at the beginning of the year .

Unique Metrics

• Funds From Operations (FFO): $1.6 million ($0.02 per share) for Q2 2026 and $2.7 million ($0.03 per share) for H1 2026 . This compares to $2.516 million ($0.02 per share) for Q2 2025 and $5.243 million ($0.05 per share) for H1 2025 .
• Adjusted Funds From Operations (AFFO): $1.393 million ($0.01 per share) for Q2 2026 and - $0.209 million (- $0.00 per share) for H1 2026 . This is an improvement from - $0.514 million (- $0.00 per share) for Q2 2025 and - $1.207 million (- $0.01 per share) for H1 2025 .
• Adjusted EBITDA: $9,554 thousand for Q2 2026 and $18,740 thousand for H1 2026, an increase from $8,790 thousand for Q2 2025 .
• Property Net Operating Income (NOI): $11,552 thousand for Q2 2026 and $23,003 thousand for H1 2026, a slight increase from $11,559 thousand for Q2 2025 and $22,902 thousand for H1 2025 .
• Same Store NOI: $23,013 thousand for H1 2026, a decrease of -0.8% compared to $23,203 thousand for H1 2025 .
• Other Income/Losses: Loss on extinguishment of debt was $0 thousand for Q2 2026 (vs. - $3 thousand in Q2 2025) and - $1,267 thousand for H1 2026 (vs. - $5 thousand in H1 2025) . Gain (loss) on sale of properties and impairment of assets held for sale, net, was - $7,691 thousand for Q2 2026 (vs. $384 thousand in Q2 2025) and - $7,691 thousand for H1 2026 (vs. - $12,900 thousand in H1 2025) . Interest income was $157 thousand for Q2 2026 (vs. $248 thousand in Q2 2025) and $320 thousand for H1 2026 (vs. $507 thousand in H1 2025) .
• Property Portfolio: Consists of 14 properties totaling approximately 4.8 million square feet, with approximately 67.4% leased as of June 30, 2026 . This is a decrease from approximately 68.9% leased as of December 31, 2025 .
• Leasing Activity (H1 2026): Leased approximately 170,000 square feet, including 50,000 SF in new leasing and 120,000 SF in renewals and expansions . The weighted average GAAP base rent was $34.34 per square foot, 7.4% higher than average rents in prior year properties, with an average lease term of 6.3 years .
• Recurring Capital Expenditures (H1 2026): Totaled $8,076 thousand, comprising $5,224 thousand for tenant improvements, $1,634 thousand for deferred leasing costs, and $1,218 thousand for non-investment capex .
• Property Sales: Subsequent to quarter end, Greenwood Plaza was sold for approximately $19.4 million gross, with approximately $8.5 million used for debt repayment and $8.9 million retained in cash . The sale resulted in a loss of - $7,645 thousand .
• Dividend Policy: The Board of Directors suspended quarterly dividends on March 9, 2026, to preserve approximately $4.1 million annually for reinvestment in leasing efforts .
• Balance Sheet (as of June 30, 2026): Total Assets, Net were $864,854 thousand; Total Liabilities, Net were $284,866 thousand; Stockholders’ Equity was $579,988 thousand . Total Debt Outstanding was $275,000 thousand, with a Debt to Total Market Capitalization of 83.6% and Net Debt to Adjusted EBITDA Ratio of 6.6 .

Outlook / Guidance

Franklin Street Properties Corp. is continuing an expanded strategic review process with financial advisors to maximize shareholder value through potential corporate and portfolio-level transactions, individual asset dispositions, and other initiatives . The company’s recent debt refinancing provides increased flexibility for pursuing strategic initiatives as market conditions evolve . Management remains focused on improving occupancy, extending lease duration, prudently managing operating expenses, and allocating capital to generate long-term shareholder value .