Franklin Street Properties (FSP)
Market Price (9/23/2026): $0.3365 | Market Cap: $34.9 MilSector: Real Estate | Industry: Office REITs
Franklin Street Properties (FSP)
Market Price (9/23/2026): $0.3365Market Cap: $34.9 MilSector: Real EstateIndustry: Office REITs
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -50% Attractive yieldDividend Yield is 9.1% Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, Sustainable & Green Buildings, and Sustainable Resource Management. Themes include Building Management Systems, Show more. | Weak multi-year price returns2Y Excs Rtn is -118%, 3Y Excs Rtn is -155% | Penny stockMkt Price is 0.3 Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -6.0 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -5.6% Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 676% Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.3%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -12%, Rev Chg QQuarterly Revenue Change % is -1.3% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -4.7% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -117% Key risksFSP key risks include [1] severely declining portfolio occupancy and [2] recurring net losses combined with a significant lack of liquidity that hinders planned property dispositions. |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -50% |
| Attractive yieldDividend Yield is 9.1% |
| Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, Sustainable & Green Buildings, and Sustainable Resource Management. Themes include Building Management Systems, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -118%, 3Y Excs Rtn is -155% |
| Penny stockMkt Price is 0.3 |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -6.0 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -5.6% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 676% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.3%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -12%, Rev Chg QQuarterly Revenue Change % is -1.3% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -4.7% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -117% |
| Key risksFSP key risks include [1] severely declining portfolio occupancy and [2] recurring net losses combined with a significant lack of liquidity that hinders planned property dispositions. |
Qualitative Assessment
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Updated on 9/17/2026
Franklin Street Properties (FSP) stock has lost about 35% since 5/31/2026 because of the following key factors:
1. Franklin Street Properties Corp. reported a significant increase in net loss and missed revenue estimates for fiscal Q2 2026, which ended June 30, 2026. The company's GAAP net loss rose to $16.6 million, or $0.16 per basic and diluted share, for fiscal Q2 2026, compared to a net loss of $7.88 million, or $0.08 per basic and diluted share, in the same period a year prior. Revenue for the quarter was $26.36 million, falling short of the consensus estimate of $31.25 million. This financial underperformance contributed to investor concerns regarding the company's overall weak financial health.
2. The company experienced a decline in portfolio occupancy amidst a challenging office real estate market. As of June 30, 2026, Franklin Street Properties Corp.'s directly-owned real estate portfolio was approximately 67.4% leased, a decrease from 68.9% leased as of December 31, 2025. This reduction was primarily due to lease expirations exceeding new executed leases during the first six months of 2026. The broader capital markets environment for office assets remained "uneven" with "constrained liquidity" and transaction volumes below historical levels, further impacting the company's ability to improve occupancy and asset values.
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Franklin Street Properties (FSP) stock has lost about 35% since 5/31/2026 because of the following key factors:
1. Franklin Street Properties Corp. reported a significant increase in net loss and missed revenue estimates for fiscal Q2 2026, which ended June 30, 2026. The company's GAAP net loss rose to $16.6 million, or $0.16 per basic and diluted share, for fiscal Q2 2026, compared to a net loss of $7.88 million, or $0.08 per basic and diluted share, in the same period a year prior. Revenue for the quarter was $26.36 million, falling short of the consensus estimate of $31.25 million. This financial underperformance contributed to investor concerns regarding the company's overall weak financial health.
2. The company experienced a decline in portfolio occupancy amidst a challenging office real estate market. As of June 30, 2026, Franklin Street Properties Corp.'s directly-owned real estate portfolio was approximately 67.4% leased, a decrease from 68.9% leased as of December 31, 2025. This reduction was primarily due to lease expirations exceeding new executed leases during the first six months of 2026. The broader capital markets environment for office assets remained "uneven" with "constrained liquidity" and transaction volumes below historical levels, further impacting the company's ability to improve occupancy and asset values.
Show more
Updated on 9/17/2026
Franklin Street Properties (FSP) stock has lost about 35% since 5/31/2026 because of the following key factors:
1. Franklin Street Properties Corp. reported a significant increase in net loss and missed revenue estimates for fiscal Q2 2026, which ended June 30, 2026. The company's GAAP net loss rose to $16.6 million, or $0.16 per basic and diluted share, for fiscal Q2 2026, compared to a net loss of $7.88 million, or $0.08 per basic and diluted share, in the same period a year prior. Revenue for the quarter was $26.36 million, falling short of the consensus estimate of $31.25 million. This financial underperformance contributed to investor concerns regarding the company's overall weak financial health.
2. The company experienced a decline in portfolio occupancy amidst a challenging office real estate market. As of June 30, 2026, Franklin Street Properties Corp.'s directly-owned real estate portfolio was approximately 67.4% leased, a decrease from 68.9% leased as of December 31, 2025. This reduction was primarily due to lease expirations exceeding new executed leases during the first six months of 2026. The broader capital markets environment for office assets remained "uneven" with "constrained liquidity" and transaction volumes below historical levels, further impacting the company's ability to improve occupancy and asset values.
3. The continued suspension of quarterly dividends impacted investor sentiment for the REIT. On March 9, 2026, the company's Board of Directors announced the suspension of quarterly dividend payments, a decision made to redeploy capital into leasing efforts and conserve approximately $4.1 million in cash annually. For a Real Estate Investment Trust (REIT) like FSP, which is often favored by investors for its dividend income, the sustained absence of dividends during the period likely contributed to a reduced investor appeal.
4. An ongoing strategic review and subsequent asset disposition highlighted underlying pressures and market conditions. Franklin Street Properties Corp. continued an expanded strategic alternatives review process, engaging BofA Securities and JLL Real Estate Investment Banking as co-financial advisors to explore options aimed at maximizing shareholder value. This review signals significant efforts to address company challenges. Subsequent to the end of fiscal Q2 2026, on July 8, 2026, the company sold its Greenwood Plaza property for approximately $19.4 million, using a portion of the proceeds ($8.5 million) to repay debt. While debt reduction can be positive, such an asset disposition during a strategic review period underscores the difficult market for office properties and the company's efforts to optimize its portfolio.
Show less
Franklin Street Properties (FSP) stock has lost about 35% since 5/31/2026 because of the following key factors:
1. Franklin Street Properties Corp. reported a significant increase in net loss and missed revenue estimates for fiscal Q2 2026, which ended June 30, 2026. The company's GAAP net loss rose to $16.6 million, or $0.16 per basic and diluted share, for fiscal Q2 2026, compared to a net loss of $7.88 million, or $0.08 per basic and diluted share, in the same period a year prior. Revenue for the quarter was $26.36 million, falling short of the consensus estimate of $31.25 million. This financial underperformance contributed to investor concerns regarding the company's overall weak financial health.
2. The company experienced a decline in portfolio occupancy amidst a challenging office real estate market. As of June 30, 2026, Franklin Street Properties Corp.'s directly-owned real estate portfolio was approximately 67.4% leased, a decrease from 68.9% leased as of December 31, 2025. This reduction was primarily due to lease expirations exceeding new executed leases during the first six months of 2026. The broader capital markets environment for office assets remained "uneven" with "constrained liquidity" and transaction volumes below historical levels, further impacting the company's ability to improve occupancy and asset values.
3. The continued suspension of quarterly dividends impacted investor sentiment for the REIT. On March 9, 2026, the company's Board of Directors announced the suspension of quarterly dividend payments, a decision made to redeploy capital into leasing efforts and conserve approximately $4.1 million in cash annually. For a Real Estate Investment Trust (REIT) like FSP, which is often favored by investors for its dividend income, the sustained absence of dividends during the period likely contributed to a reduced investor appeal.
4. An ongoing strategic review and subsequent asset disposition highlighted underlying pressures and market conditions. Franklin Street Properties Corp. continued an expanded strategic alternatives review process, engaging BofA Securities and JLL Real Estate Investment Banking as co-financial advisors to explore options aimed at maximizing shareholder value. This review signals significant efforts to address company challenges. Subsequent to the end of fiscal Q2 2026, on July 8, 2026, the company sold its Greenwood Plaza property for approximately $19.4 million, using a portion of the proceeds ($8.5 million) to repay debt. While debt reduction can be positive, such an asset disposition during a strategic review period underscores the difficult market for office properties and the company's efforts to optimize its portfolio.
Show less
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Stock Movement Drivers
Fundamental Drivers
The -36.8% change in FSP stock from 5/31/2026 to 9/22/2026 was primarily driven by a -36.6% change in the company's P/S Multiple.| (LTM values as of) | 5312026 | 9222026 | Change |
|---|---|---|---|
| Stock Price ($) | 0.53 | 0.33 | -36.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 106 | 106 | -0.3% |
| P/S Multiple | 0.5 | 0.3 | -36.6% |
| Shares Outstanding (Mil) | 104 | 104 | -0.1% |
| Cumulative Contribution | -36.8% |
Market Drivers
5/31/2026 to 9/22/2026| Return | Correlation | |
|---|---|---|
| FSP | -36.8% | |
| Market (SPY) | 2.5% | 5.1% |
| Sector (XLRE) | -2.5% | 14.8% |
Fundamental Drivers
The -59.5% change in FSP stock from 2/28/2026 to 9/22/2026 was primarily driven by a -58.1% change in the company's P/S Multiple.| (LTM values as of) | 2282026 | 9222026 | Change |
|---|---|---|---|
| Stock Price ($) | 0.82 | 0.33 | -59.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 109 | 106 | -3.3% |
| P/S Multiple | 0.8 | 0.3 | -58.1% |
| Shares Outstanding (Mil) | 104 | 104 | -0.1% |
| Cumulative Contribution | -59.5% |
Market Drivers
2/28/2026 to 9/22/2026| Return | Correlation | |
|---|---|---|
| FSP | -59.5% | |
| Market (SPY) | 13.3% | 10.0% |
| Sector (XLRE) | -1.5% | 18.0% |
Fundamental Drivers
The -79.6% change in FSP stock from 8/31/2025 to 9/22/2026 was primarily driven by a -78.4% change in the company's P/S Multiple.| (LTM values as of) | 8312025 | 9222026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.63 | 0.33 | -79.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 112 | 106 | -5.3% |
| P/S Multiple | 1.5 | 0.3 | -78.4% |
| Shares Outstanding (Mil) | 104 | 104 | -0.2% |
| Cumulative Contribution | -79.6% |
Market Drivers
8/31/2025 to 9/22/2026| Return | Correlation | |
|---|---|---|
| FSP | -79.6% | |
| Market (SPY) | 21.2% | 16.5% |
| Sector (XLRE) | 3.9% | 24.1% |
Fundamental Drivers
The -81.5% change in FSP stock from 8/31/2023 to 9/22/2026 was primarily driven by a -72.6% change in the company's P/S Multiple.| (LTM values as of) | 8312023 | 9222026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.80 | 0.33 | -81.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 156 | 106 | -32.1% |
| P/S Multiple | 1.2 | 0.3 | -72.6% |
| Shares Outstanding (Mil) | 103 | 104 | -0.5% |
| Cumulative Contribution | -81.5% |
Market Drivers
8/31/2023 to 9/22/2026| Return | Correlation | |
|---|---|---|
| FSP | -81.5% | |
| Market (SPY) | 78.3% | 25.5% |
| Sector (XLRE) | 27.2% | 34.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FSP Return | 54% | -52% | -4% | -27% | -47% | -64% | -90% |
| Peers Return | 8% | -40% | -10% | 15% | -17% | 17% | -35% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 107% |
Monthly Win Rates [3] | |||||||
| FSP Win Rate | 50% | 33% | 58% | 42% | 33% | 0% | |
| Peers Win Rate | 57% | 32% | 45% | 57% | 45% | 51% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| FSP Max Drawdown | -30% | -60% | -64% | -44% | -58% | -66% | |
| Peers Max Drawdown | -13% | -47% | -42% | -24% | -34% | -22% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HIW, CUZ, PDM, DEA, ONL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/22/2026 (YTD)
How Low Can It Go
| Event | FSP | S&P 500 |
|---|---|---|
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -18.5% | -19.2% |
| % Gain to Breakeven | 22.7% | 23.8% |
| Time to Breakeven | 38 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -13.9% | -3.7% |
| % Gain to Breakeven | 16.1% | 3.9% |
| Time to Breakeven | 19 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -21.1% | -12.2% |
| % Gain to Breakeven | 26.7% | 13.9% |
| Time to Breakeven | 75 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -20.0% | -6.8% |
| % Gain to Breakeven | 25.1% | 7.3% |
| Time to Breakeven | 64 days | 15 days |
| 2013 Taper Tantrum | ||
| % Loss | -18.9% | -0.2% |
| % Gain to Breakeven | 23.3% | 0.2% |
| Time to Breakeven | 498 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -19.3% | -17.9% |
| % Gain to Breakeven | 23.9% | 21.8% |
| Time to Breakeven | 24 days | 123 days |
In The Past
Franklin Street Properties's stock fell 0.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 0.0% gain to breakeven.
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Asset Allocation
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| Event | FSP | S&P 500 |
|---|---|---|
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -21.1% | -12.2% |
| % Gain to Breakeven | 26.7% | 13.9% |
| Time to Breakeven | 75 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -20.0% | -6.8% |
| % Gain to Breakeven | 25.1% | 7.3% |
| Time to Breakeven | 64 days | 15 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -27.9% | -15.4% |
| % Gain to Breakeven | 38.8% | 18.2% |
| Time to Breakeven | 192 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -44.2% | -53.4% |
| % Gain to Breakeven | 79.1% | 114.4% |
| Time to Breakeven | 277 days | 1085 days |
In The Past
Franklin Street Properties's stock fell 0.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 0.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Franklin Street Properties (FSP)
Franklin Street Properties (FSP) is a real estate investment trust (REIT) focused on the acquisition, ownership, and management of office properties across the United States. The company primarily targets value-oriented investments within infill locations and central business districts (CBDs). FSP aims to generate both long-term capital appreciation through the growth and appreciation of its property assets, as well as current income from property rentals, operating as a landlord for its portfolio of office buildings.
FSP strategically concentrates its investments in specific high-growth regions, particularly the U.S. Sunbelt and Mountain West, while also exploring opportunities in other select opportunistic markets. Its main service involves providing high-quality office space for lease, with its primary customers being businesses and organizations that require well-located and functional office environments for their operations within these targeted geographic areas.
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1. Boston Properties (BXP) for office buildings in the Sunbelt.
2. Simon Property Group (SPG) but for office buildings instead of malls.
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- Office Property Leasing: FSP provides rentable office space in infill and central business district locations for businesses.
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Major Customers of Franklin Street Properties (FSP)
As a Real Estate Investment Trust (REIT) focused on owning and leasing office properties, Franklin Street Properties' customers are the organizations and companies that lease office space within its portfolio. Based on recent financial disclosures and investor presentations, the company's major customers (tenants) by annualized base rent typically include a mix of government entities and various private and public corporations. The top customers generally include:
- State of California
- State of Colorado
- T-Mobile (TMUS)
- Enbridge (ENB)
- State of Georgia
- Deloitte
- Amazon.com (AMZN)
- WSP Global Inc. (WSP)
- Comcast Corp. (CMCSA)
- State of Maryland
This tenant base demonstrates diversification across government agencies, telecommunications, energy, e-commerce, and professional services sectors.
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George J. Carter, Chief Executive Officer and Chairman of the Board
Mr. Carter has been the Chief Executive Officer and Chairman of the Board of Directors of Franklin Street Properties Corp. since 2002. He also served as the President of the Company from 2002 to May 2016. Mr. Carter is responsible for all aspects of the business of the Company, with a special emphasis on the evaluation, acquisition, and structuring of real estate investments. Prior to the Company's conversion in 2002, he was President of the general partner of Franklin Street Partners Limited Partnership. He co-founded FSP's immediate predecessor in 1992. From 1992 through 1996, he was President of Boston Financial Securities, Inc. Before joining Boston Financial, Mr. Carter was the owner and developer of Gloucester Dry Dock, a commercial shipyard in Gloucester, Massachusetts. From 1979 to 1988, he served as Managing Director in charge of marketing at First Winthrop Corporation, a national real estate and investment banking firm. He also held positions in the brokerage industry, including with Merrill Lynch & Co. and Loeb Rhodes & Co.
John G. Demeritt, Executive Vice President, Chief Financial Officer and Treasurer
Mr. Demeritt has been the Chief Financial Officer of Franklin Street Properties Corp. since March 2005 and its Treasurer since March 2015. He joined the Company in 2004. Mr. Demeritt is responsible for capital raising, financial reporting, and investor relations. Prior to joining FSP, he was a Manager at Caturano & Company, an independent accounting firm, where he focused on Sarbanes Oxley compliance. From March 2002 to March 2004, he provided consulting services to public and private companies.
Jeffrey B. Carter, President, Chief Investment Officer
Mr. Carter is the President and Chief Investment Officer of Franklin Street Properties Corp. He is the son of CEO George J. Carter. He is primarily responsible for developing and implementing the Company's investment strategy, including the coordination of acquisitions and dispositions. Before joining the Company, Mr. Carter worked in Trust Administration for Northern Trust Bank in Miami, Florida.
Scott H. Carter, Executive Vice President, General Counsel and Secretary
Mr. Carter serves as Executive Vice President, General Counsel, and Secretary of Franklin Street Properties Corp. He is the son of CEO George J. Carter and brother of Jeffrey B. Carter. He oversees legal and corporate governance matters for the Company.
Eriel Anchondo, Executive Vice President, Chief Operating Officer
Mr. Anchondo has been Executive Vice President and Chief Operating Officer of Franklin Street Properties Corp. since May 2016. He joined the Company in 2015 as Senior Vice President of Operations. Mr. Anchondo is responsible for ensuring the Company has the proper operational controls, administrative and reporting procedures, and people systems and infrastructure to effectively grow the organization and maintain financial strength and operating efficiency.
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Key Risks to Franklin Street Properties (FSP)
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Challenges in the Office Real Estate Market and Persistent Work-From-Home Trends
Franklin Street Properties faces significant risks due to ongoing challenges in the commercial office real estate market, exacerbated by persistent work-from-home trends and evolving workplace dynamics. This environment has resulted in reduced demand for office space, negatively impacting leasing efforts and occupancy rates across FSP's portfolio. As of December 31, 2025, FSP's directly-owned real estate portfolio was approximately 68.9% leased, a decrease from 70.3% in the prior year, primarily due to lease expirations surpassing new executed leases. Many tenants continue to not fully occupy their leased spaces, creating uncertainty regarding property performance and financial results.
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Ongoing Financial Health and Profitability Concerns
The company has an unprofitable streak, with losses worsening over the past five years, and forecasts indicate continued unprofitability. Franklin Street Properties reported a GAAP net loss of $45.0 million for the year ended December 31, 2025. The company's operating and net margins are significantly negative, reflecting considerable profitability challenges. Concerns about dividend sustainability have been prominent due to these ongoing losses, leading to the suspension of quarterly cash dividends in March 2026 to reduce expenses and redirect capital towards leasing efforts. Furthermore, a low Altman Z-Score suggests a potential risk of bankruptcy within the next two years.
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Liquidity, Capital Market Volatility, and Ability to Dispose of Assets
FSP's ability to realize the intrinsic value of its real estate portfolio is dependent on transaction and financing liquidity in the capital markets and property submarkets. However, transaction volumes in office markets remain historically low, often concentrated in distressed situations, and lending liquidity for office assets is significantly constrained, making it difficult to execute transactions at reasonable prices. This poses a risk to FSP's strategy, as the company may struggle to dispose of properties at acceptable prices or within expected timeframes. Recent property sales have occurred at losses, further highlighting pressure on asset values. While FSP recently secured a $320 million credit facility to address near-term debt, it comes with an initial coupon rate of 9.0% and an exit fee of 4.0%, indicating higher financing costs.
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The paradigm shift towards remote and hybrid work models, reducing the overall demand for traditional office space and impacting occupancy rates, rental income, and property values for office-focused REITs.
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Franklin Street Properties (FSP) focuses on infill and central business district (CBD) office properties, specifically targeting the U.S. Sunbelt and Mountain West regions, as well as select opportunistic markets. The addressable market for their main services can be understood within the broader U.S. office real estate market, with a particular emphasis on Class A (or Grade A) properties in these high-growth regions.
The U.S. office real estate market was valued at approximately USD 369.58 billion in 2025, with projections to reach USD 447.86 billion by 2031, growing at a Compound Annual Growth Rate (CAGR) of 3.22% during the forecast period (2026-2031). Within this market, Grade A properties held a significant share, accounting for 58.56% of the occupied stock in 2025. These prime assets are expected to expand at a faster CAGR of 3.76% through 2031, driven by a "flight-to-quality" trend among tenants.
FSP's strategic focus on the U.S. Sunbelt and Mountain West regions positions them in areas experiencing substantial growth. The Sun Belt, encompassing eighteen states in the Southeast and Southwest, currently holds about 50% of the national population and accounted for 80% of total U.S. population growth over the past decade. This demographic shift, coupled with a pro-business culture and lower taxes, has led to significant private sector growth and corporate relocations from high-tax, high-regulation states to dynamic markets within the Sun Belt. Major Class A office submarkets by square feet in the Sun Belt include Atlanta, Dallas, Los Angeles, San Francisco, and Orange County.
Similarly, the Mountain West commercial real estate landscape is optimizing, with demand drivers, investment activity, and development pipelines coming into better balance. Markets within the Intermountain West, including Utah, Nevada, and Idaho, are set for accelerated growth across all property types and are anticipated to outperform national trends.
The demand for high-quality, centrally located office space in these regions is further bolstered by companies seeking environments that foster collaboration, support organizational culture, and help retain talent, leading to a continued "flight to quality" within the office sector. Despite some broader market challenges, Sun Belt and Mountain West office markets with strong fundamentals are considered solid options for investors and occupiers seeking long-term growth in the evolving U.S. office landscape.
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Here are 3-5 expected drivers of future revenue growth for Franklin Street Properties (FSP) over the next 2-3 years:
- Increased Leasing Activity and Occupancy: Franklin Street Properties is focused on increasing its leased occupancy through new tenant leases and renewals/expansions. The company reported finalizing approximately 616,000 square feet of total leasing in 2024, including 171,000 square feet of new tenant leases. For 2025, FSP is tracking over 600,000 square feet of prospective new tenants and approximately 500,000 square feet of potential renewals and expansions, which could lead to positive net absorption over the next 12 months.
- Higher Rental Rates: The company has demonstrated an ability to achieve higher rental rates. The weighted average GAAP base rent per square foot on leasing activity during 2024 was $30.06, an 8.2% increase compared to 2023. The overall portfolio weighted average rent per occupied square foot was $31.77 as of December 31, 2024, up from $30.72 as of December 31, 2023. Sustained increases in rental rates on new and renewing leases will contribute to revenue growth.
- Strategic Repositioning of Portfolio: FSP's ongoing strategy involves selective property dispositions with the aim of improving and upgrading its portfolio, as well as reducing debt. While dispositions can temporarily reduce rental income, the intent is to enhance the overall quality and efficiency of the remaining assets, positioning the company for long-term value creation and potential future revenue growth from a more optimized portfolio. The company is also undertaking a review of strategic alternatives to maximize shareholder value.
- Focus on U.S. Sunbelt and Mountain West Office Markets: Franklin Street Properties continues to concentrate its investments in infill and central business district (CBD) office properties within the U.S. Sunbelt and Mountain West regions. The company believes these markets possess favorable macro-economic drivers that have the potential to increase occupancies and rents over the long term, thereby supporting future revenue growth.
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Share Repurchases
- In June 2021, Franklin Street Properties announced a share repurchase program authorizing up to $50 million in common stock repurchases.
Inbound Investments
- In February 2026, Franklin Street Properties closed a $320 million secured credit facility with an affiliate of TPG Credit, refinancing all outstanding indebtedness.
- The new credit facility positions TPG as a strategic lending partner to the company.
Capital Expenditures
- The $320 million secured credit facility from February 2026 includes up to $45 million in delayed draw term loans designated for funding tenant improvements, leasing commissions, and building improvements.
- During 2025, the company's leasing activities included approximately 320,000 square feet from renewals and expansions of existing tenants, which typically involve capital expenditures for tenant-specific enhancements.
Peer Outperformance in Office REITs
FSP has trailed 88% of its 17 Office REITs peers over 5Y. Office REITs ranks 11th of 12 industries in Real Estate by median 5Y return. The sector’s gains have largely come from elsewhere.
Share of Office REITs constituents that FSP has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
5%
of 19 industry peers · -79.6% return
3Y
6%
of 18 industry peers · -80.5% return
5Y
12%
of 17 industry peers · -91.4% return
No Office REITs peer with a comparable growth profile has beaten FSP by more than 20pp over 5Y.
Median price return by industry across the Real Estate sector, ranked by 5Y. Office REITs is FSP's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Health Care REITs | 15 | 14.4% | 58.7% | 57.3% | WELL 203% · DHC 149% · CTRE 123% |
| Retail REITs | 22 | 8.4% | 36.4% | 31.4% | IVT 1497% · SKT 151% · SPG 99% |
| Real Estate Development | 6 | -19.1% | 12.1% | 21.2% | JOE 64% · AXR 56% · FOR 42% |
| Other Specialized REITs | 11 | 5.4% | 19.9% | 15.6% | IRM 219% · EPR 61% · OUT 59% |
| Hotel & Resort REITs | 16 | 32.0% | 37.4% | 4.1% | RHP 69% · HST 67% · DRH 48% |
| Industrial REITs | 11 | 16.8% | 26.2% | 4.0% | EGP 38% · FR 32% · PLD 22% |
| Diversified REITs | 12 | 9.0% | 34.4% | -5.8% | CTO 67% · LXP 20% · WPC 19% |
| Single-Family Residential REITs | 4 | -4.5% | 0.3% | -18.4% | AMH -10% · ELS -16% · INVH -21% |
| Multi-Family Residential REITs | 13 | -6.2% | 5.8% | -21.8% | AIV 2% · ESS 0% · BRT -5% |
| Real Estate Services | 27 | -21.6% | 1.3% | -27.1% | REAX 818% · MDRR 520% · CHCI 293% |
| Office REITs ← | 18 | -11.0% | 25.3% | -32.4% | PSTL 71% · CDP 52% · SLG 1% |
| Telecom Tower REITs | 3 | -8.9% | -7.0% | -45.9% | AMT -29% · SBAC -46% · CCI -50% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Franklin Street Properties Earnings Notes | 12/16/2025 | |
| With Franklin Street Properties Stock Sliding, Have You Assessed The Risk? | 10/17/2025 |
| Title | |
|---|---|
| ARTICLES |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 16.34 |
| Mkt Cap | 1.1 |
| Rev LTM | 463 |
| Op Inc LTM | 82 |
| FCF LTM | 14 |
| FCF 3Y Avg | 68 |
| CFO LTM | 224 |
| CFO 3Y Avg | 183 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.9% |
| Rev Chg 3Y Avg | -0.3% |
| Rev Chg Q | 5.3% |
| QoQ Delta Rev Chg LTM | 1.3% |
| Op Inc Chg LTM | 9.2% |
| Op Inc Chg 3Y Avg | -2.1% |
| Op Mgn LTM | 18.2% |
| Op Mgn 3Y Avg | 17.9% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 36.6% |
| CFO/Rev 3Y Avg | 37.7% |
| FCF/Rev LTM | 2.6% |
| FCF/Rev 3Y Avg | 8.1% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Real estate operations | 107 | 120 | 146 | 166 | |
| Management fees and interest income from loans | 2 | ||||
| Other | 0 | ||||
| Rental | 208 | ||||
| Total | 107 | 120 | 146 | 166 | 209 |
| $ Mil | 2025 | 2024 | 2023 | 2010 | 2009 |
|---|---|---|---|---|---|
| Real estate operations | -45 | -53 | -48 | ||
| Investment banking | 1 | -1 | |||
| Real Estate Operations | 21 | 29 | |||
| Total | -45 | -53 | -48 | 22 | 28 |
| $ Mil | 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|
| Real Estate Operations | 1,229 | 1,151 | 1,020 | ||
| Investment banking | 10 | 5 | |||
| Operations Banking/Investment Services | 5 | ||||
| Investment banking Services | 6 | 7 | |||
| Real estate Operations | 997 | 948 | |||
| Total | 1,239 | 1,156 | 1,025 | 1,003 | 955 |
Price Behavior
Price Behavior
| Market Price | $0.33 | |
| Market Cap ($ Bil) | 0.0 | |
| First Trading Date | 06/02/2005 | |
| Distance from 52W High | -79.6% | |
| 50 Days | 200 Days | |
| DMA Price | $0.43 | $0.63 |
| DMA Trend | down | down |
| Distance from DMA | -22.1% | -47.5% |
| 3M | 1YR | |
| Volatility | 58.3% | 58.3% |
| Downside Capture | 223.56 | 194.89 |
| Upside Capture | -72.42 | -24.20 |
| Correlation (SPY) | 9.0% | 15.7% |
FSP Betas & Captures as of 8/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.32 | -0.01 | 0.27 | 0.49 | 0.76 | 0.86 |
| Up Beta | 2.58 | -0.23 | -0.76 | 0.59 | 0.63 | 0.40 |
| Down Beta | 5.09 | 0.02 | -0.08 | -0.47 | 0.63 | 0.74 |
| Up Capture | -181% | -79% | 12% | -10% | -8% | 49% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 8 | 15 | 27 | 52 | 100 | 303 |
| Down Capture | -31% | 137% | 142% | 154% | 147% | 110% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 13 | 27 | 37 | 74 | 142 | 393 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FSP | |
|---|---|---|---|---|
| FSP | -79.3% | 58.2% | -2.47 | - |
| Sector ETF (XLRE) | 5.1% | 14.0% | 0.11 | 24.0% |
| Equity (SPY) | 17.6% | 13.0% | 0.98 | 16.2% |
| Gold (GLD) | 18.0% | 29.3% | 0.56 | 7.7% |
| Commodities (DBC) | 46.6% | 20.7% | 1.75 | -12.1% |
| Real Estate (VNQ) | 5.2% | 13.6% | 0.12 | 24.5% |
| Bitcoin (BTCUSD) | -26.0% | 44.9% | -0.54 | 5.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FSP | |
|---|---|---|---|---|
| FSP | -38.6% | 49.0% | -0.83 | - |
| Sector ETF (XLRE) | 1.3% | 19.1% | -0.03 | 38.2% |
| Equity (SPY) | 13.3% | 17.2% | 0.59 | 29.6% |
| Gold (GLD) | 18.9% | 18.8% | 0.81 | 4.6% |
| Commodities (DBC) | 10.8% | 19.6% | 0.43 | 2.4% |
| Real Estate (VNQ) | 1.0% | 18.9% | -0.05 | 40.6% |
| Bitcoin (BTCUSD) | 12.7% | 52.6% | 0.42 | 14.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FSP | |
|---|---|---|---|---|
| FSP | -26.9% | 46.1% | -0.51 | - |
| Sector ETF (XLRE) | 6.3% | 20.4% | 0.26 | 50.9% |
| Equity (SPY) | 15.4% | 17.9% | 0.73 | 41.9% |
| Gold (GLD) | 12.2% | 16.4% | 0.61 | 4.8% |
| Commodities (DBC) | 8.3% | 18.1% | 0.37 | 11.1% |
| Real Estate (VNQ) | 4.7% | 20.7% | 0.19 | 55.1% |
| Bitcoin (BTCUSD) | 64.0% | 66.2% | 1.04 | 12.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/28/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/28/2026 | -0.7% | -3.7% | -13.5% |
| 4/28/2026 | -4.0% | -13.2% | -14.8% |
| 3/9/2026 | -7.9% | -16.7% | -4.9% |
| 10/28/2025 | -4.5% | -11.3% | -24.8% |
| 7/29/2025 | -1.2% | -7.0% | -4.1% |
| 4/29/2025 | 1.9% | -3.9% | 16.8% |
| 2/11/2025 | 6.0% | 10.9% | -3.8% |
| 10/29/2024 | -4.3% | 1.1% | 3.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 12 |
| # Negative | 16 | 14 | 13 |
| Median Positive | 6.0% | 10.9% | 11.8% |
| Median Negative | -4.0% | -9.0% | -13.5% |
| Max Positive | 14.8% | 26.0% | 43.0% |
| Max Negative | -7.9% | -16.7% | -35.6% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/28/2026 | -0.7% | -3.7% | -13.5% |
| 4/28/2026 | -4.0% | -13.2% | -14.8% |
| 3/9/2026 | -7.9% | -16.7% | -4.9% |
| 10/28/2025 | -4.5% | -11.3% | -24.8% |
| 7/29/2025 | -1.2% | -7.0% | -4.1% |
| 4/29/2025 | 1.9% | -3.9% | 16.8% |
| 2/11/2025 | 6.0% | 10.9% | -3.8% |
| 10/29/2024 | -4.3% | 1.1% | 3.2% |
| 7/30/2024 | -3.9% | -13.3% | -3.3% |
| 4/30/2024 | 2.7% | 4.3% | 1.1% |
| 2/26/2024 | 6.2% | 5.3% | -3.5% |
| 11/7/2023 | 11.3% | 20.6% | 28.4% |
| 8/1/2023 | 6.6% | 15.6% | 17.4% |
| 5/2/2023 | 0.0% | 24.6% | 22.8% |
| 2/14/2023 | 0.3% | -11.1% | -35.6% |
| 11/1/2022 | -3.8% | 0.0% | 2.4% |
| 8/2/2022 | -4.6% | -13.7% | -24.7% |
| 5/3/2022 | -1.6% | -12.3% | -14.4% |
| 2/15/2022 | -1.2% | -1.4% | 0.9% |
| 11/8/2021 | 14.8% | 26.0% | 34.8% |
| 8/3/2021 | -6.3% | -2.2% | -3.4% |
| 5/4/2021 | -3.6% | -4.4% | 3.0% |
| 2/16/2021 | -3.0% | 16.6% | 43.0% |
| 11/3/2020 | -5.5% | 9.1% | 6.9% |
| 8/4/2020 | -6.0% | -1.1% | -18.1% |
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 12 |
| # Negative | 16 | 14 | 13 |
| Median Positive | 6.0% | 10.9% | 11.8% |
| Median Negative | -4.0% | -9.0% | -13.5% |
| Max Positive | 14.8% | 26.0% | 43.0% |
| Max Negative | -7.9% | -16.7% | -35.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/28/2026 | 10-Q |
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 03/09/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/11/2025 | 10-K |
| 09/30/2024 | 10/29/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/26/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/28/2026 | 10-Q |
| 03/31/2026 | 04/28/2026 | 10-Q |
| 12/31/2025 | 03/09/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/29/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/11/2025 | 10-K |
| 09/30/2024 | 10/29/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/26/2024 | 10-K |
| 09/30/2023 | 11/07/2023 | 10-Q |
| 06/30/2023 | 08/01/2023 | 10-Q |
| 03/31/2023 | 05/02/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-K |
| 09/30/2022 | 11/01/2022 | 10-Q |
| 06/30/2022 | 08/02/2022 | 10-Q |
| 03/31/2022 | 05/03/2022 | 10-Q |
| 12/31/2021 | 02/15/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 08/03/2021 | 10-Q |
| 03/31/2021 | 05/04/2021 | 10-Q |
| 12/31/2020 | 02/16/2021 | 10-K |
| 09/30/2020 | 11/03/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 04/30/2020 | 10-Q |
| 12/31/2019 | 02/11/2020 | 10-K |
| 09/30/2019 | 10/30/2019 | 10-Q |
Industry Resources
| Real Estate Resources |
| The Real Deal |
| Commercial Observer |
| Inman |
| Office REITs Resources |
| Commercial Property Executive |
| BOMA International |
| Propmodo |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 9/22/2026