Revenue: As of FY2026 Q1, the actual value is USD 26.23 M.

EPS: As of FY2026 Q1, the actual value is USD -0.09.

EBIT: As of FY2026 Q1, the actual value is USD 5.092 M.

Franklin Street Properties Corp. operates in a single reportable segment: real estate operations.

Revenue

Total revenues for the three months ended March 31, 2026, decreased by $0.9 million to $26.2 million, compared to $27.1 million for the same period in 2025. This decline was primarily due to a $0.9 million decrease in rental revenue, resulting from the sale of one property in 2025 and other lease expirations, partially offset by rental income from leases commencing after March 31, 2025.

Expenses

Total expenses decreased by $0.9 million to $34.6 million for the three months ended March 31, 2026, from $35.5 million in the prior year period. Real estate operating expenses and real estate taxes and insurance decreased by approximately $1.0 million, mainly due to property disposition. Depreciation and amortization decreased by approximately $0.2 million, also attributable to property disposition. General and administrative expenses decreased by $0.8 million due to lower personnel costs. These decreases were partially offset by an increase in interest expense of approximately $1.1 million, primarily due to a higher principal amount of debt outstanding.

Net Loss

Net loss for the three months ended March 31, 2026, was - $9.5 million, compared to a net loss of - $21.4 million for the three months ended March 31, 2025.

Other Financial Items

Loss on extinguishment of debt was - $1.3 million for the three months ended March 31, 2026, compared to - $2,000 for the same period in 2025. There was no loss on sale of properties and impairment of assets held for sale in the three months ended March 31, 2026, compared to a - $13.3 million loss in the prior year period. Interest income was $0.2 million for the three months ended March 31, 2026, down from $0.3 million in the comparable 2025 period. Tax expense was $54,000 for the three months ended March 31, 2026, compared to $52,000 for the same period in 2025, primarily related to the Revised Texas Franchise Tax.

Funds From Operations (FFO)

NAREIT FFO was $1.1 million for the three months ended March 31, 2026, compared to $2.7 million for the same period in 2025. Total Funds From Operations were $1.2 million for the three months ended March 31, 2026, compared to $2.7 million for the same period in 2025.

Net Operating Income (NOI)

Property NOI from owned properties for the three months ended March 31, 2026, was $11.5 million, a slight decrease from $11.5 million for the same period in 2025. Segment NOI was $11.7 million for the three months ended March 31, 2026, compared to $11.6 million for the three months ended March 31, 2025.NOI by region for the three months ended March 31, 2026, was $1.4 million for MidWest, $4.7 million for South, and $5.4 million for West. Compared to the same period in 2025, MidWest NOI increased by $16,000 (1.2%), South NOI increased by $361,000 (8.3%), and West NOI decreased by - $452,000 (-7.7%).

Cash Flow

Net cash used in operating activities for the three months ended March 31, 2026, was - $5.2 million. Net cash used in investing activities was - $2.7 million. Net cash provided by financing activities was $1.0 million. Cash, cash equivalents, and restricted cash at the end of the period were $23.8 million as of March 31, 2026, a decrease from $30.6 million at December 31, 2025.

Operational Metrics

As of March 31, 2026, Franklin Street Properties Corp. owned and operated a portfolio of 14 properties with 4.8 million rentable square feet. The total owned portfolio was approximately 68.4% leased as of March 31, 2026, a decrease from 68.9% leased as of December 31, 2025. Approximately 1.5 million square feet of vacancy existed in owned properties as of March 31, 2026. During the three months ended March 31, 2026, approximately 145,000 square feet of office space were leased, with a weighted average term of 6.2 years. Tenant improvements for these leases averaged $33.55 per square foot, lease commissions were $11.53 per square foot, and rent concessions averaged approximately five months of free rent. Average GAAP base rents under these new leases were $35.16 per square foot, representing a 6.4% increase over average rents in the respective properties. Leases for approximately 4.5% and 10.1% of the square footage are scheduled to expire during 2026 and 2027, respectively.

Future Outlook and Strategy

Franklin Street Properties Corp.’s strategy focuses on infill and central business district office properties in the U.S. Sunbelt and Mountain West regions, as well as select opportunistic markets, aiming for long-term growth and appreciation. The company’s Board of Directors initiated a review of strategic alternatives in May 2025, which was expanded in April 2026 to include BofA Securities, Inc. and Jones Lang LaSalle Securities, LLC as co-financial advisors, to maximize shareholder value through various transactions. The company prioritizes leasing and occupancy improvement, driving efficiencies by managing general and administrative expenses, and is negotiating a Purchase and Sale Agreement for its Greenwood Plaza property. In March 2026, the Board of Directors suspended quarterly cash dividends to redeploy capital into leasing efforts, subject to Credit Agreement restrictions, while observing early signs of stabilization in the capital markets for office assets.