Franklin Street Properties (FSP) AI Stock Analysis

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Franklin Street Properties

(NYSE MKT:FSP)

Rating:47Neutral

Price Target:

$1.50

▼(-10.71% Downside)

Franklin Street Properties' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and persistent losses. Technical analysis shows mixed signals with slight short-term bullish momentum, but valuation concerns due to a negative P/E ratio and low dividend yield further weigh down the score.

Franklin Street Properties (FSP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$174.20M

Dividend Yield2.38%

Average Volume (3M)296.09K

Price to Earnings (P/E)―

Beta (1Y)1.06

Revenue Growth-18.12%

EPS Growth24.44%

CountryUS

Employees28

SectorReal Estate

Sector Strength53

IndustryREIT - Office

Share Statistics

EPS (TTM)-0.08

Shares Outstanding103,690,340

10 Day Avg. Volume295,913

30 Day Avg. Volume296,092

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.23

Enterprise Value/Revenue3.47

Enterprise Value/Gross Profit6.67

Enterprise Value/Ebitda13.71

Forecast

1Y Price Target

$1.50

Price Target Upside-10.71% Downside

Rating ConsensusHold

Number of Analyst Covering0

Franklin Street Properties Business Overview & Revenue Model

Company DescriptionFranklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

How the Company Makes MoneyFranklin Street Properties generates revenue primarily through rental income from its portfolio of commercial properties. The company leases space to tenants, which provides a steady stream of cash flow. Additionally, FSP may engage in property sales or refinancing, contributing to its earnings through capital gains and interest income. The REIT structure allows FSP to benefit from favorable tax treatment, as it must distribute a significant portion of its taxable income to shareholders in the form of dividends. Key revenue streams also include property management fees and potentially development fees from new projects. Partnerships with local and national real estate firms may further enhance FSP's ability to acquire and manage properties effectively, contributing to its overall financial performance.

Franklin Street Properties Earnings Call Summary

Earnings Call Date:Jul 11, 2025

(Q1-2025)

% Change Since: |

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Neutral

While Franklin Street Properties Corp. has made significant strides in reducing corporate debt and shows promise with a growing leasing pipeline and strong demand in Texas markets, the company faces challenges with a reported net loss and decreased leasing activity. The leasing decisions have been impacted by market volatility and macroeconomic factors, making the overall sentiment mixed.

Q1-2025 Updates

Positive Updates

Debt Reduction Success

Since initiating the disposition strategy in late 2020, Franklin Street Properties Corp. has completed approximately $1.1 billion in property sales, contributing to a nearly 75% reduction in corporate indebtedness.

Increased National Office Transaction Volumes

National office transaction volumes rose by 22% in 2024 from the lows of 2023 and accelerated in Q1 2025, finishing 31% higher year-over-year.

Growing Leasing Pipeline

FSP is tracking approximately 800,000 square feet of prospective new tenants, including 300,000 square feet of prospects that have identified FSP assets on their shortlists.

Strong Demand in Texas Markets

Consistent strong demand was observed in Texas, particularly in the Houston energy corridor, with Dallas also showing a pickup in tenant market activity.

Negative Updates

Net Loss Reported

A GAAP net loss of approximately $21.4 million or $0.21 per share was reported for the first quarter of 2025.

Decreased Leasing Activity

FSP's directly owned portfolio saw a decrease in lease occupancy, with a drop to 69.2% from 70.3% in the previous quarter, attributed to lease expirations and departures in Dallas and Denver.

Challenges in Corporate Leasing Decisions

Corporate leasing decisions regarding relocations stalled due to market volatility and macroeconomic circumstances, impacting the execution of new leases.

Company Guidance

During the Franklin Street Properties Corp. first quarter 2025 earnings call, several key metrics and strategic directions were discussed. The company reported funds from operations (FFO) of approximately $2.7 million or $0.03 per share, alongside a GAAP net loss of around $21.4 million or $0.21 per share. Leasing activity showed a decline, with the directly owned portfolio being 69.2% leased, down from 70.3% at the end of the previous quarter, and economic occupancy at 67.7%, a decrease from 68.6%. Despite a challenging quarter, 60,000 square feet of leasing was finalized, consisting solely of renewals and expansions. The company is also tracking a pipeline of approximately 800,000 square feet of prospective new tenants and 400,000 square feet of potential renewals. Additionally, Franklin Street Properties is marketing about 1 million square feet for potential disposition, having completed $1.1 billion in property sales since 2020, which significantly reduced corporate indebtedness by nearly 75%. The company remains cautious of macroeconomic uncertainties affecting leasing and investment decisions but is optimistic about potential improvements in the coming quarters.

Franklin Street Properties Financial Statement Overview

Summary

Franklin Street Properties is facing significant financial challenges, with declining revenues and profitability. The balance sheet shows a moderately high but decreasing debt-to-equity ratio, indicating some reduction in leverage. However, negative free cash flow and sustained losses are concerning, impacting overall financial health.

Income Statement

Neutral

Franklin Street Properties has experienced a revenue decline over the past years, with a TTM revenue of $115.99M compared to $165.62M in 2022. The company has faced negative net income and EBIT margins, indicating operational challenges. EBITDA margins have been more stable, showing some operational efficiency, but overall profitability has been a concern.

Balance Sheet

Neutral

The company's debt-to-equity ratio is moderately high, but it has been decreasing, indicating some reduction in leverage. The equity ratio has remained relatively stable, suggesting a balanced asset financing structure. However, the negative trend in stockholder equity is a point of concern, reflecting accumulated losses.

Cash Flow

Neutral

Cash flows have been under pressure, with negative free cash flow in recent periods. The operating cash flow to net income ratio is positive, indicating some level of cash generation despite net losses. However, free cash flow remains negative due to high capital expenditures, which poses a risk to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.88M	120.11M	145.71M	165.62M	209.36M	245.85M
Gross Profit	58.17M	52.35M	67.78M	78.17M	107.42M	130.52M
EBITDA	28.29M	21.64M	57.93M	63.14M	83.28M	79.50M
Net Income	-53.46M	-52.72M	-48.11M	1.09M	92.72M	32.62M
Balance Sheet
Total Assets	903.24M	946.93M	1.17B	1.24B	1.36B	1.79B
Cash, Cash Equivalents and Short-Term Investments	30.52M	41.12M	125.53M	3.74M	34.31M	2.65M
Total Debt	248.29M	247.63M	404.71M	413.01M	474.79M	921.54M
Total Liabilities	278.54M	291.07M	456.52M	472.93M	580.97M	1.03B
Stockholders Equity	624.70M	655.86M	712.80M	768.74M	783.20M	768.09M
Cash Flow
Free Cash Flow	-8.06M	-16.23M	-13.77M	-39.68M	-28.47M	-9.47M
Operating Cash Flow	8.36M	8.99M	17.87M	15.23M	36.36M	68.45M
Investing Cash Flow	47.98M	70.28M	113.64M	74.04M	505.47M	11.04M
Financing Cash Flow	-57.33M	-164.47M	-10.25M	-123.39M	-505.24M	-85.13M

Franklin Street Properties Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.68

Price Trends

50DMA

1.66

Positive

100DMA

1.66

Positive

200DMA

1.74

Negative

Market Momentum

MACD

<0.01

Negative

RSI

54.66

Neutral

STOCH

46.97

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSP, the sentiment is Positive. The current price of 1.68 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.66, and below the 200-day MA of 1.74, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSP.

Franklin Street Properties Risk Analysis

Franklin Street Properties disclosed 34 risk factors in its most recent earnings report. Franklin Street Properties reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Franklin Street Properties Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIO	65 Neutral	$280.53M	―	-17.53%	5.76%	-3.69%	-777.30%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
PDM	57 Neutral	$1.07B	―	-4.27%	5.83%	-6.74%	17.44%
BDN	57 Neutral	$750.87M	―	-29.94%	13.73%	-3.05%	-94.96%
ONL	54 Neutral	$166.13M	―	-10.03%	8.14%	-15.14%	16.61%
FSP	47 Neutral	$174.20M	―	-8.18%	2.38%	-18.12%	24.44%
OPI	44 Neutral	$16.24M	―	-24.55%	18.23%	-11.93%	-1877.17%

* Real Estate Sector Average

Performance Comparison

FSP

Franklin Street Properties

1.68

0.08

5.00%

PDM

Piedmont Office

8.78

-0.38

-4.15%

BDN

Brandywine Realty

4.37

-0.08

-1.80%

OPI

Office Properties Income

0.22

-1.78

-89.00%

CIO

City Office REIT

6.94

1.60

29.96%

ONL

Orion Office REIT

3.01

-0.79

-20.79%

Franklin Street Properties Corporate Events

Shareholder Meetings

Franklin Street Properties Holds 2025 Annual Meeting

Positive

May 15, 2025

On May 15, 2025, Franklin Street Properties Corp. held its 2025 Annual Meeting of Stockholders to elect six directors, ratify the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approve the company’s executive compensation by a non-binding vote. All proposals were approved, with the directors elected for a one-year term expiring at the 2026 Annual Meeting, and the ratification and executive compensation receiving significant support, indicating continued confidence in the company’s leadership and financial oversight.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025