Franklin Street Properties (FSP) Q4 2024 earnings summary

Executive summary

• Reported FFO of $2.7 million ($0.03/share) for Q4 2024 and $13.3 million ($0.13/share) for full year 2024, with a GAAP net loss of $8.5 million for Q4 and $52.7 million for the year.

• Portfolio consisted of 14 owned properties totaling 4.8–5.0 million sq ft, 70.3% leased at year-end, down from 74.0% a year earlier due to dispositions and expirations.

• Management remains focused on long-term growth, appreciation, and current income, with selective property sales to optimize the portfolio.

• Completed sale of last Atlanta property for $34 million, using $27.4 million of proceeds to repay debt.

• Leasing momentum improved in Q4, with 252,000 sq ft leased and Houston and Minneapolis leading performance.

Financial highlights

• Full-year 2024 revenue was $120.1 million, down from $145.7 million in 2023.

• Sold three properties in 2024 for total gross proceeds of $100 million; aggregate gross proceeds from property sales since late 2020 total $1.1 billion at $211 per sq ft average.

• Adjusted EBITDA for full year 2024 was $40.5 million, down from $54.3 million in 2023.

• AFFO for full year 2024 was $(4.5) million, compared to $(1.8) million in 2023.

• Dividend declared per share was $0.01 for Q4 2024, unchanged from prior quarters.

Outlook and guidance

• Early 2025 shows increased office property activity, more employees returning, and greater capital interest.

• Leasing pipeline is strong, with over 600,000 sq ft of prospective new tenants and 500,000 sq ft of potential renewals/expansions.

• Scheduled 2025 lease expirations are modest at 322,000 sq ft (6.7% of portfolio), supporting potential for positive net absorption.

• Net income, FFO, and disposition guidance remain suspended due to economic uncertainty and unpredictability of disposition proceeds.