Franklin Street Properties Corp. (NYSE: FSP), a real estate investment trust (REIT) focused on infill and central business district office properties in the U.S. Sunbelt and Mountain West, reported its results for the second quarter ended June 30, 2026. The company posted Funds From Operations (FFO) of $0.02 per share for the quarter, matching the prior year period, even as a GAAP net loss of $16.6 million — or $0.16 per basic and diluted share — weighed on headline results. The widened net loss compared to $7.9 million in the prior year quarter was primarily driven by a $7.691 million loss on the impairment of an asset held for sale.

Financial Performance Overview

The following table summarizes key financial metrics for the three and six months ended June 30, 2026 and 2025:

Rental revenue for the quarter declined modestly to $26.355 million from $26.715 million in the prior year quarter, a decrease of approximately 1.35%. General and administrative expenses for the six months ended June 30, 2026 were $1.7 million lower compared to the six months ended June 30, 2025, driven by lower personnel costs.

Strategic Review and Asset Disposition

During the quarter, the company formally launched an expanded strategic review process with BofA Securities and JLL Real Estate Investment Banking serving as co-financial advisors. The review encompasses potential corporate transactions, portfolio-level transactions, individual asset dispositions, and other initiatives intended to maximize shareholder value.

Subsequent to quarter-end, on July 8, 2026, the company sold its Greenwood Plaza property located in Englewood, Colorado to University of Colorado Health. Key details of the transaction are as follows:

The company noted that a Form 8-K was filed on July 13, 2026 announcing the sale and presenting pro forma financial information.

Leasing and Portfolio Update

During the six months ended June 30, 2026, the company leased approximately 170,000 square feet, of which approximately 120,000 square feet were from renewals and expansions of existing tenants. The directly-owned real estate portfolio comprised 14 properties totaling approximately 4.8 million square feet as of June 30, 2026.

The following table highlights key leasing metrics:

The decline in the leased percentage from 68.9% to 67.4% was attributed to lease expirations exceeding new executed leases during the six months ended June 30, 2026.

Balance Sheet and Dividend

As of June 30, 2026, total assets stood at $864.854 million, compared to $892.884 million as of December 31, 2025. Total liabilities were $284.866 million, with total stockholders' equity of $579.988 million.

The company's recent refinancing resulted in Initial Term Loans of $253.136 million (net of unamortized financing costs and OID of $21.864 million) as of June 30, 2026, replacing the prior term loan and senior note structure.

On March 9, 2026, the Board of Directors determined to suspend the payment of quarterly dividends, in part to redeploy capital into leasing efforts. The company estimates the dividend suspension will preserve approximately $4.1 million in cash on an annualized basis. The Board will reassess dividend reinstatement on a quarterly basis.

CEO Commentary

George J. Carter, Chairman and Chief Executive Officer, commented: "As we continue to move through 2026, our focus remains squarely on maximizing shareholder value through our expanded evaluation of strategic alternatives, proactive asset management, and efforts to improve leasing and occupancy. Our recent refinancing of our outstanding debt has provided the Company with increased flexibility, allowing us to avoid making forced or rushed decisions and instead pursue strategic initiatives in a disciplined and thoughtful manner."

Carter added that the office investment market continues to exhibit incremental signs of stabilization nationally, with improved leasing activity, dramatically reduced new office construction, and a modest recovery in investment sales activity.

Franklin Street Properties Corp. (FSP) announced it will release its financial results for the second quarter of 2026 after the market closes on Tuesday, July 28, 2026. The real estate investment trust (REIT) stated that it will not conduct a conference call or webcast to discuss the quarterly performance this time. Investors can access the results and other relevant information through the Investor Relations section of the company's website at www.fspreit.com . The company also encourages interested parties to sign up for email alerts to receive news automatically.

About Franklin Street Properties Corp.

Franklin Street Properties Corp. is a Maryland corporation focused on acquiring and managing infill and central business district (CBD) office properties. The company targets assets located in the U.S. Sunbelt and Mountain West regions, along with select opportunistic markets. FSP operates with the intention of qualifying as a real estate investment trust (REIT) for federal income tax purposes, seeking value-oriented investments aimed at long-term growth and appreciation.