Franklin Street Properties Corp. Reports Q2 2025 Net Loss of $7.9 Million and Declares $0.01 Dividend Per Share

Franklin Street Properties Corp. reported a Q2 2025 GAAP net loss of $7.9 million, or $0.08 per share, and FFO of $2.5 million, or $0.02 per share. The company leased approximately 187,000 square feet in the first half of 2025 and declared a quarterly dividend of $0.01 per share. FSP's directly-owned portfolio was 69.1% leased as of June 30, 2025, and the company continues to explore strategic alternatives to maximize shareholder value.

Franklin Street Properties Corp. (FSP) released its financial results for the second quarter of 2025, revealing a GAAP net loss of $7.9 million, or $0.08 per share. The company also reported funds from operations (FFO) of $2.5 million, or $0.02 per share. The quarter saw the company lease approximately 187,000 square feet in the first half of 2025, with a directly-owned portfolio leased at 69.1% as of June 30, 2025. Additionally, the company declared a quarterly dividend of $0.01 per share and continues to explore strategic alternatives to maximize shareholder value.

The financial results reflect ongoing operational challenges, including lower portfolio occupancy and cash flow pressures. The company's revenue for the quarter was $26.7 million, driven by shrinking occupancy and reduced rental rates. The portfolio-wide average rent per occupied square foot dropped from $31.77 at year-end 2024 to $30.98 at June 30, 2025. The decrease in the average leased percentage was largely due to lease expirations outpacing new occupancies.

Franklin Street Properties' strategy focuses on increasing leasing in existing properties and pursuing selective property sales to reduce debt. The company's portfolio is concentrated in Texas, Colorado, and Minnesota, with nearly 44.5% of the portfolio's space in Colorado, 39.7% in Texas, and the remainder in Minnesota. The company continues to face challenges in the Minneapolis market but notes relatively firmer tenant demand in Texas, particularly Houston.

Management did not provide financial guidance for the next quarter or for fiscal 2025, citing uncertainty surrounding the timing and amounts of proceeds from potential property sales and broader economic conditions affecting leasing demand. The company's ongoing strategic review includes options such as further property sales, selling the company, or refinancing, but no timeline has been provided for a decision.

Investors tracking Franklin Street Properties should focus on occupancy rates, new leasing activity, and progress on asset sales, as these have direct financial implications. Questions remain about the company's ability to stabilize cash flow, reduce debt further, and support any meaningful dividend.

References:
[1] https://www.mitrade.com/insights/news/live-news/article-8-999583-20250731
[2] https://www.nasdaq.com/articles/franklin-fsp-q2-revenue-down-13