Franklin Street Properties Bolsters Board with Industry Veteran and Enters Strategic Alliance

Franklin Street Properties Corp. (FSP) has made a strategic move to enhance its corporate governance by appointing Bruce J. Schanzer to its Board of Directors. In addition, the company has entered into a Cooperation Agreement with two significant shareholders, Converium Capital Inc. and Erez Asset Management LLC, further strengthening its board alignment and shareholder relations.

Bruce J. Schanzer, a seasoned real estate executive with extensive experience in REITs and investment banking, brings valuable expertise to FSP's board. His tenure as CEO and President of Cedar Realty Trust, a shopping center-focused REIT, and his background in investment banking at Goldman Sachs & Co and Merrill Lynch, coupled with his legal experience, make him an ideal addition to the FSP board. Mr. Schanzer's appointment to the Audit Committee further highlights his financial acumen and commitment to sound corporate governance.

The Cooperation Agreement between FSP, Converium Capital, and Erez Asset Management ensures a collaborative and aligned approach to governance. By voting their shares in favor of all of the Board's director nominees at the 2025 Annual Meeting of Stockholders, these significant shareholders demonstrate their support for the board's strategic direction. The standstill provisions in the agreement prevent any single shareholder from exercising undue influence, ensuring a balanced and collective governance approach. This agreement fosters active engagement between FSP's management and key investors, leading to improved communication, shared goals, and enhanced decision-making.

The addition of Bruce J. Schanzer to the board and the Cooperation Agreement align with FSP's ongoing efforts to refresh its board and enhance its diversity of perspectives and skills. With seven of eight directors now independent, FSP strengthens its governance and signals its commitment to a balanced and capable board. This move demonstrates FSP's dedication to maximizing value for all stakeholders, including shareholders Converium Capital and Erez Asset Management, who have agreed to support the board's nominees.

The strategic alignment between FSP, Converium Capital, and Erez Asset Management suggests a shared vision for the company's future. Both firms are significant shareholders, indicating a collaborative approach to maximizing shareholder value. As a fund manager focused on small market cap REITs, Erez Asset Management can offer valuable insights into potential acquisitions and divestments within FSP's portfolio. Converium Capital, with its broader investment focus, may provide diverse perspectives on market trends and risk management. Together, these synergies could help FSP optimize its real estate portfolio, maximize returns, and enhance shareholder value.

The addition of Mr. Schanzer to the board and the Cooperation Agreement could significantly influence the dynamics of the 2025 Annual Meeting of Stockholders. Mr. Schanzer's extensive REIT and investment banking pedigree brings valuable expertise to the board, potentially enhancing FSP's strategic decision-making and value generation. The Cooperation Agreement, which ensures the support of two significant shareholders, strengthens FSP's board alignment and could facilitate a smoother nomination process at the upcoming annual meeting. This agreement may also signal a more collaborative and engaged investor dynamic, potentially benefiting FSP's long-term success.

In conclusion, Franklin Street Properties Corp.'s appointment of Bruce J. Schanzer to its Board of Directors and the Cooperation Agreement with Converium Capital Inc. and Erez Asset Management LLC demonstrate the company's commitment to enhancing its corporate governance and aligning shareholder interests. By bringing valuable expertise and fostering collaboration, these moves position FSP to navigate market challenges and capitalize on opportunities, ultimately benefiting all stakeholders.