Franklin Street Properties Corp. Announces Third Quarter 2025 Results | FSP Stock News

10/28/2025 - 04:26 PM WAKEFIELD, Mass.--(BUSINESS WIRE)--Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American: FSP), a real estate investment trust (REIT), announced its results for the third quarter ended September 30, 2025.George J. Carter, Chairman and Chief Executive Officer, commented as follows:“FSP continues to maintain its focus on trying to improve leasing and occupancy across our portfolio. Nationally, the overall office sector continues to face headwinds from capital markets volatility and evolving workplace dynamics, but we have recently seen some encouraging signs of stabilization and “return-to-office” trends in many cities across the United States. While overall leasing volume within the FSP portfolio during the first nine months of 2025 has been modest, we have seen more signs of improved tenant activity in our markets. National office vacancy rates have finally declined slightly for the first time since early 2019. Importantly, we are also seeing and competing for a greater number of larger potential lease transactions at our properties. More prospective tenants are in the market seeking to expand their office space footprints. The increased demand from these prospective tenants is pushing up against a reduced supply of office space from a lack of new development and inventory removal.While leasing and property operations are ongoing, our Board of Directors continues to work with our financial advisor, BofA Securities, on our ongoing strategic review process. The process has been robust and comprehensive, with a wide range of strategic alternatives considered to explore ways to maximize shareholder value.”Financial HighlightsGAAP net loss was $8.3 million and $37.6 million, or $0.08 and $0.36 per basic and diluted share for the three and nine months ended September 30, 2025, respectively.Funds From Operations (FFO) was $2.3 million and $7.6 million, or $0.02 and $0.07 per basic and diluted share, for the three and nine months ended September 30, 2025, respectively.Leasing HighlightsDuring the nine months ended September 30, 2025, we leased approximately 274,000 square feet of space of which approximately 219,000 were from renewals and expansions of existing tenants.Our directly-owned real estate portfolio of 14 properties, totaling approximately 4.8 million square feet, was approximately 68.9% leased as of September 30, 2025, compared to approximately 70.3% leased as of December 31, 2024. The decrease in the leased percentage is due to lease expirations during the nine months ended September 30, 2025.The weighted average GAAP base rent per square foot achieved on leasing activity during the nine months ended September 30, 2025, was $31.81, or 6.0% higher than average rents in the respective properties for the year ended December 31, 2024. The average lease term on leases signed during the nine months ended September 30, 2025, was 5.7 years compared to 6.3 years during the year ended December 31, 2024. Overall, the portfolio weighted average rent per occupied square foot was $31.13 as of September 30, 2025, compared to $31.77 as of December 31, 2024.We believe that our continuing portfolio of real estate is well located within their respective markets, primarily in the Sunbelt and Mountain West geographic regions, and consists of high-quality assets with long-term upside leasing potential.Strategic ReviewGeorge J. Carter, Chairman and Chief Executive Officer, commented as follows with respect to the Company’s review of strategic alternatives:“Our Board of Directors continues to work with our financial advisor, BofA Securities, in connection with a review of strategic alternatives in order to explore ways to maximize shareholder value. As previously announced, this review includes a range of potential strategic alternatives, including a sale of the Company, a sale of assets, and refinancing of existing indebtedness, among others. No assurances can be given regarding the outcome or timetable for completion of the strategic review process. We do not intend to make any further public comment regarding the process until it has been completed.”DividendOn October 3, 2025, we announced that our Board of Directors declared a quarterly cash dividend for the three months ended September 30, 2025, of $0.01 per share of common stock that will be paid on November 6, 2025, to stockholders of record on October 17, 2025.Consolidation of Sponsored REITAs of January 1, 2023, we consolidated the operations of our Monument Circle sponsored REIT into our financial statements and on June 6, 2025, the property held by Monument Circle was sold. Additional information about the consolidation of Monument Circle can be found in Note 1, “Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards”, Note 8, “Disposition of Properties and Assets Held for Sale” in the Notes to Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025.Non-GAAP Financial InformationA reconciliation of Net loss to FFO, Adjusted Funds From Operations (AFFO) and Sequential Same Store NOI and our definitions of FFO, AFFO and Sequential Same Store NOI can be found on Supplementary Schedules H and I.2025 Net Income (Loss), FFO and Disposition GuidanceAt this time, due primarily to economic conditions and uncertainty surrounding the timing and amount of proceeds received from property dispositions, we are continuing suspension of Net Income (Loss), FFO and property disposition guidance.Real Estate UpdateSupplementary schedules provide property information for the Company’s owned and consolidated properties as of September 30, 2025. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com.Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.About Franklin Street Properties Corp.Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP is focused on long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.No Quarterly Earnings CallThe Company will not be holding an earnings call this quarter.Forward-Looking StatementsStatements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements, such as those relating to our review of strategic alternatives, expectations for future potential leasing activity, the payment of dividends and the repayment of debt in future periods, value creation/enhancement in future periods and expectations for growth and leasing activities in future periods that are based on current judgments and current knowledge of management and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, adverse changes in general economic or local market conditions, including as a result of the long-term effects of the COVID-19 pandemic, wars, terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, impacts of changes in tariffs that the United States and other countries have announced or implemented, as well as any additional new tariffs, trade restrictions or export regulations that may be implemented or reversed in the future, inflation rates, interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated, such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, increases in the level of general and administrative costs as a percentage of revenues as revenues decrease as a result of property dispositions, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in Part II Item 1A of our Quarterly Report on Form 10-Q for the three months ended September 30, 2025, which may be further updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.Franklin Street Properties Corp.Earnings ReleaseSupplementary InformationTable of ContentsFranklin Street Properties Corp. Financial ResultsA-CReal Estate Portfolio Summary InformationDPortfolio and Other Supplementary InformationEPercentage of Leased SpaceFLargest 20 Tenants – FSP Owned PortfolioGReconciliation and Definitions of Funds From Operations (FFO) and AdjustedFunds From Operations (AFFO)HReconciliation and Definition of Sequential Same Store results to Property NetOperating Income (NOI) and Net LossIFranklin Street Properties Corp. Financial ResultsSupplementary Schedule ACondensed Consolidated Statements of Operations(Unaudited)For theFor theThree Months EndedNine Months EndedSeptember 30,September 30,(in thousands, except per share amounts)2025202420252024Revenue:Rental$27,300$29,662$81,122$91,705Other—20—32Total revenue27,30029,68281,12291,737Expenses:Real estate operating expenses10,67111,57431,46733,620Real estate taxes and insurance5,2625,51214,82217,175Depreciation and amortization10,55010,91132,00034,018General and administrative3,0343,2759,79911,069Interest6,3486,58518,37820,513Total expenses35,86537,857106,466116,395Loss on extinguishment of debt(7)(477)(12)(614)Loss on sale of properties and impairment of assets held for sale, net—(7,254)(12,900)(20,459)Interest income2493407561,696Loss before taxes(8,323)(15,566)(37,500)(44,035)Tax expense356137162Net loss$(8,326)$(15,622)$(37,637)$(44,197)Weighted average number of shares outstanding, basic and diluted103,690103,567103,623103,492Loss per share, basic and diluted:Net loss per share, basic and diluted$(0.08)$(0.15)$(0.36)$(0.43)Franklin Street Properties Corp. Financial ResultsSupplementary Schedule BCondensed Consolidated Balance Sheets(Unaudited)September 30,December 31,(in thousands, except share and par value amounts)20252024Assets:Real estate assets:Land$98,883$105,298Buildings and improvements1,088,9811,096,265Fixtures and equipment11,35511,0531,199,2191,212,616Less accumulated depreciation399,597377,708Real estate assets, net799,622834,908Acquired real estate leases, less accumulated amortization of $14,238 and $13,613, respectively2,8994,205Cash, cash equivalents and restricted cash31,57542,683Tenant rent receivables1,3801,283Straight-line rent receivable38,85737,727Prepaid expenses and other assets3,8893,114Office computers and furniture, net of accumulated depreciation of $1,094 and $1,073, respectively4870Deferred leasing commissions, net of accumulated amortization of $14,749 and $14,195, respectively22,76222,941Total assets$901,032$946,931Liabilities and Stockholders’ Equity:Liabilities:Term loans payable, less unamortized financing costs of $881 and $2,220, respectively$125,114$124,491Series A & Series B Senior Notes, less unamortized financing costs of $473 and $1,191, respectively122,449122,430Accounts payable and accrued expenses28,78534,067Accrued compensation2,6353,097Tenant security deposits6,2586,237Lease liability417707Acquired unfavorable real estate leases, less accumulated amortization of $54 and $89, respectively3745Total liabilities285,695291,074Commitments and contingenciesStockholders’ Equity:Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding——Common stock, $.0001 par value, 180,000,000 shares authorized, 103,690,340 and 103,566,715 shares issued and outstanding, respectively1010Additional paid-in capital1,335,5861,335,361Accumulated distributions in excess of accumulated earnings(720,259)(679,514)Total stockholders’ equity615,337655,857Total liabilities and stockholders’ equity$901,032$946,931Franklin Street Properties Corp. Financial ResultsSupplementary Schedule CCondensed Consolidated Statements of Cash Flows(Unaudited)For theNine Months EndedSeptember 30,(in thousands)20252024Cash flows from operating activities:Net loss$(37,637)$(44,197)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization expense34,04536,284Amortization of above and below market leases—(17)Amortization of other comprehensive income into interest expense—(355)Shares issued as compensation225270Loss on extinguishment of debt12614Loss on sale of properties and impairment of assets held for sale, net12,90020,459Changes in operating assets and liabilities:Tenant rent receivables(97)842Straight-line rents(41)1,249Lease acquisition costs(1,096)(660)Prepaid expenses and other assets(498)314Accounts payable and accrued expenses(4,274)(4,364)Accrued compensation(462)(451)Tenant security deposits21(84)Payment of deferred leasing commissions(3,176)(3,168)Net cash provided by (used in) operating activities(78)6,736Cash flows from investing activities:Property improvements, fixtures and equipment(12,608)(19,074)Proceeds received from sales of properties6,10062,909Net cash provided by (used in) investing activities(6,508)43,835Cash flows from financing activities:Distributions to stockholders(3,108)(3,104)Repayments of Bank note payable—(22,667)Repayments of Term loans payable(716)(41,775)Repayments of Series A&B Senior Notes(698)(62,870)Deferred financing costs—(5,660)Net cash used in financing activities(4,522)(136,076)Net decrease in cash, cash equivalents and restricted cash(11,108)(85,505)Cash, cash equivalents and restricted cash, beginning of year42,683127,880Cash, cash equivalents and restricted cash, end of period$31,575$42,375Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule DReal Estate Portfolio Summary Information(Unaudited & Approximated)Commercial portfolio lease expirations (1)Total% ofYearSquare FeetPortfolio202577,2721.6%2026552,47211.5%2027327,8326.8%2028242,0465.0%2029522,24810.9%Thereafter (2)3,085,79364.2%4,807,663100.0%____________________(1)Percentages are determined based upon total square footage.(2)Includes 1,496,842 square feet of vacancies at our owned properties as of September 30, 2025.(dollars & square feet in 000's)As of September 30, 2025% ofSquare% ofStatePropertiesInvestmentPortfolioFeetPortfolioColorado4$431,33653.9%2,14244.5%Texas7257,26532.2%1,90839.7%Minnesota3111,02113.9%75815.8%Total14$799,622100.0%4,808100.0%Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule EPortfolio and Other Supplementary Information(Unaudited & Approximated)Recurring Capital ExpendituresFor the Nine(in thousands)For the Three Months EndedMonths Ended31-Mar-2530-Jun-2530-Sep-2530-Sep-25Tenant improvements$2,374$1,415$4,469$8,258Deferred leasing costs5451,7029293,176Non-investment capex1,2587507532,761$4,177$3,867$6,151$14,195(in thousands)For the Three Months EndedYear Ended31-Mar-2430-Jun-2430-Sep-2431-Dec-2431-Dec-24Tenant improvements$2,619$2,558$4,444$4,173$13,794Deferred leasing costs2,2375114212,9746,143Non-investment capex1,0191,4801,6582,5686,725$5,875$4,549$6,523$9,715$26,662Square foot & leased percentagesSeptember 30,December 31,20252024Owned Properties:Number of properties1414Square feet4,807,6634,806,253Leased percentage68.9%70.3%Consolidated Property - Single Asset REIT (SAR):Number of properties—1Square feet—213,760Leased percentage—4.1%Total Owned and Consolidated Properties:Number of properties1415Square feet4,807,6635,020,013Leased percentage68.9%67.5%Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule FPercentage of Leased Space(Unaudited & Estimated)Property NameLocationSquare Feet% Leased (1)as of30-Jun-25SecondQuarterAverage %Leased (2)% Leased (1)as of30-Sep-25ThirdQuarterAverage %Leased (2)1PARK TENHouston, TX157,60994.0%89.0%86.8%91.6%2PARK TEN PHASE IIHouston, TX156,74675.5%75.5%76.3%75.7%3GREENWOOD PLAZAEnglewood, CO196,23665.0%65.0%65.0%65.0%4ADDISONAddison, TX289,33367.7%68.2%67.7%67.7%5LIBERTY PLAZAAddison, TX217,84168.9%68.9%65.4%66.5%6ELDRIDGE GREENHouston, TX248,399100.0%100.0%100.0%100.0%7121 SOUTH EIGHTH STMinneapolis, MN297,74478.5%78.5%78.5%77.9%8801 MARQUETTE AVEMinneapolis, MN129,69191.8%91.8%91.8%91.8%9LEGACY TENNYSON CTRPlano, TX209,56260.9%57.6%60.9%60.9%10WESTCHASE I & IIHouston, TX629,02565.1%65.1%66.2%65.7%111999 BROADWAYDenver, CO682,63950.4%50.1%50.2%50.4%121001 17TH STREETDenver, CO650,60775.1%75.1%75.1%75.1%13PLAZA SEVENMinneapolis, MN330,09651.0%52.2%51.0%51.0%14600 17TH STREETDenver, CO612,13572.5%72.5%72.5%72.5%OWNED PORTFOLIO4,807,66369.1%68.9%68.9%69.0%____________________(1)% Leased as of month's end includes all leases that expire on the last day of the quarter.(2)Average quarterly percentage is the average of the end of the month leased percentage for each of the three months during the quarter.Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule GLargest 20 Tenants – FSP Owned Portfolio(Unaudited & Estimated)The following table includes the largest 20 tenants in FSP’s owned portfolio based on total square feet:As of September 30, 2025% ofTenantSq FtPortfolio1CITGO Petroleum Corporation248,3995.2%2EOG Resources, Inc.169,1673.5%3US Government168,5733.5%4Kaiser Foundation Health Plan, Inc.120,9792.5%5Deluxe Corporation98,9222.1%6Ping Identity Corp.89,8561.9%7Olin Corporation81,4801.7%8Permian Resources Operating, LLC67,8561.4%9Hall and Evans LLC65,8781.4%10Cyxtera Management, Inc.61,8261.3%11Precision Drilling (US) Corporation59,5691.2%12PwC US Group54,3341.1%13Coresite, LLC49,5181.0%14Schwegman, Lundberg & Woessner, P.A.46,2691.0%15Ark-La-Tex Financial Services, LLC.41,0110.8%16Invenergy, LLC.35,0880.7%17Chevron U.S.A., Inc.35,0880.7%18Moss, Luse & Womble, LLC34,0710.7%19QB Energy Operating, LLC.34,0630.7%20International Business Machines Corporation31,5640.7%Total1,593,51133.1%Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule HReconciliation and Definitions of Funds From Operations (“FFO”) andAdjusted Funds From Operations (“AFFO”)A reconciliation of Net loss to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I. Management believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurements of performance. The Company has included the National Association of Real Estate Investment Trusts (NAREIT) FFO definition as of May 17, 2016 in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. The Company’s computation of FFO and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently.Reconciliation of Net loss to FFO and AFFO:Three Months EndedNine Months EndedSeptember 30,September 30,(In thousands, except per share amounts)2025202420252024Net loss$(8,326)$(15,622)$(37,637)$(44,197)Loss on sale of properties and impairment of asset held for sale, net—7,25412,90020,459Depreciation & amortization10,55010,90732,00034,002NAREIT FFO2,2242,5397,26310,264Lease Acquisition costs99126303315Funds From Operations (FFO)$2,323$2,665$7,566$10,579Funds From Operations (FFO)$2,323$2,665$7,566$10,579Loss on extinguishment of debt747712614Amortization of deferred financing costs6777672,0452,265Shares issued as compensation——225270Straight-line rent(37)785(41)1,249Tenant improvements(4,469)(4,444)(8,258)(9,621)Leasing commissions(929)(421)(3,176)(3,169)Non-investment capex(753)(1,658)(2,761)(4,157)Adjusted Funds From Operations (AFFO)$(3,181)$(1,829)$(4,388)$(1,970)Per Share DataEPS$(0.08)$(0.15)$(0.36)$(0.43)FFO$0.02$0.03$0.07$0.10AFFO$(0.03)$(0.02)$(0.04)$(0.02)Weighted average shares (basic and diluted)103,690103,567103,623103,492Funds From Operations (“FFO”)The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO as of May 17, 2016 in the table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do.We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.Adjusted Funds From Operations (“AFFO”)The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5) plus the amortization of deferred financing costs, (6) plus the value of shares issued as compensation and (7) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions.We exclude development/redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property. We also exclude first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned for at acquisition.AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.Franklin Street Properties Corp. Earnings ReleaseSupplementary Schedule IReconciliation and Definition of Sequential Same Store results to property Net Operating Income (NOI) and Net IncomeNet Operating Income (“NOI”)The Company provides property performance based on Net Operating Income, which we refer to as NOI. Management believes that investors are interested in this information. NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus general and administrative expenses, depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REITs, interest income, management fee income, hedge ineffectiveness, gains or losses on extinguishment of debt, gains or losses on the sale of assets and excludes non-property specific income and expenses. The information presented includes footnotes and the data is shown by region with properties owned in the periods presented, which we call Sequential Same Store. The comparative Sequential Same Store results include properties held for all periods presented. We exclude properties that have been placed in service, but that do not have operating activity for all periods presented, dispositions and significant nonrecurring income such as bankruptcy settlements and lease termination fees. NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company’s liquidity or its ability to make distributions. The calculations of NOI and Sequential Same Store are shown in the following table:RentableSquare FeetThree Months EndedThree Months EndedInc%(in thousands)or RSF30-Sep-2530-Jun-25(Dec)ChangeRegionMidWest7581,4891,758(269)(15.3)%South1,9084,1444,393(249)(5.7)%West2,1425,4505,516(66)(1.2)%Property NOI* from Owned Properties4,80811,08311,667(584)(5.0)%Disposition and Acquisition Properties (a)-9(108)1171.0%NOI*4,808$11,092$11,559$(467)(4.0)%Sequential Same Store$11,083$11,667$(584)(5.0)%Less NonrecurringItems in NOI* (b)5252—(0.0)%ComparativeSequential Same Store$11,031$11,615$(584)(5.0)%Reconciliation toThree Months EndedThree Months EndedNet loss30-Sep-2530-Jun-25Net loss$(8,326)$(7,876)Add (deduct):Loss on extinguishment of debt73(Gain) loss on sale of properties and impairment of assets held for sale, net—(384)Management fee income(345)(334)Depreciation and amortization10,55010,626Amortization of above/below market leases——General and administrative3,0343,281Interest expense6,3486,339Interest income(249)(248)Non-property specific items, net73152NOI*$11,092$11,559(a)We define Disposition and Acquisition Properties as properties that were sold acquired or consolidated and do not have operating activity for all periods presented.(b)Nonrecurring Items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability.*Excludes NOI from investments in and interest income from secured loans to non-consolidated REITs.View source version on businesswire.com: https://www.businesswire.com/news/home/20251028965065/en/Georgia Touma (877) 686-9496Source: Franklin Street Properties Corp.