Franklin Street Properties (FSP) investor relations material

Executive summary

• Focuses on infill and CBD office properties in the U.S. Sunbelt and Mountain West, with 14 owned properties totaling 4.8 million square feet as of June 30, 2026.

• Strategic review of alternatives is ongoing, with expanded financial advisory support to maximize shareholder value.

• Sold Greenwood Plaza (CO) in July 2026 for $19.4 million, using $8.5 million of proceeds to repay debt.

• Suspended quarterly cash dividends in March 2026 to redeploy $4.1 million in annualized cash savings into leasing and value enhancement.

• Focus remains on improving leasing, occupancy, and prudent expense management, with G&A expenses reduced by $1.7 million year-over-year for the six months ended June 30, 2026.

Financial highlights

• Total revenue for Q2 2026 was $26.4 million, down from $27.3 million in Q2 2025; six-month revenue was $52.6 million, down from $53.8 million year-over-year.

• Net loss for Q2 2026 was $16.6 million, compared to $7.9 million in Q2 2025; six-month net loss was $26.1 million, improved from $29.3 million year-over-year.

• Adjusted EBITDA for Q2 2026 was $9.6 million, up from $8.8 million in Q2 2025.

• FFO for Q2 2026 was $1.6 million ($0.02/share), compared to $2.5 million ($0.02/share) in Q2 2025; six-month FFO was $2.7 million ($0.03/share).

• AFFO for Q2 2026 was $1.4 million ($0.01/share), down from $2.3 million ($0.02/share) in Q2 2025; six-month AFFO was negative $0.2 million.

Outlook and guidance

• Forward-looking statements highlight risks from economic conditions, interest rates, inflation, and market demand, especially in energy-influenced markets.

• Leasing and occupancy improvement remain priorities, with early signs of market stabilization and declining new construction.

• Ongoing review of strategic alternatives, including asset sales and refinancing, continues amid challenging office market conditions.