Franklin Street Properties (FSP) investor relations material

Executive summary

• Strategic review continued with BofA Securities and JLL Securities; Q4 asset and subportfolio sale opportunities were being pursued, subject to pricing, buyer diligence and financing.

• At September 30, the portfolio comprised 13 properties and 4.6M sq. ft.; occupancy was 66.2%, down from 68.9% at December 31, 2025.

Financial highlights

• Q3 revenue was $24.934M and GAAP net loss was $9.103M, or $0.09/share, versus revenue of $27.3M and a net loss of $8.326M, or $0.08/share, in Q3 2025.

• 9M revenue was $77.514M and net loss was $35.235M, or $0.34/share, versus $37.637M, or $0.36/share, in 9M 2025.

• Q3 FFO was $1.435M, or $0.01/share, and AFFO was negative $0.878M, or negative $0.01/share; 9M FFO was $4.152M, or $0.04/share, and AFFO was negative $1.087M, or negative $0.01/share.

• 9M expenses declined $3.3M to $103.2M, with lower property costs, taxes and G&A partly offset by a $4.2M increase in interest expense.

• 9M capital expenditures totaled $14.155M, including $9.339M for tenant improvements and $2.453M for non-investment capex.

Outlook and guidance

• Strategic review priorities included potential asset, subportfolio, portfolio or corporate transactions; Q4 sale prospects depended on acceptable pricing, buyer diligence and financing.

• Operating priorities included improving occupancy, extending lease duration, controlling expenses and directing capital toward leasing and asset management; larger prospective leasing opportunities increased across markets.

• Management expected leasing and occupancy could face limits or delays through at least Q4 2026 amid economic, geopolitical and pandemic-related uncertainty.