Franklin Street Properties (FSP) AI Stock Analysis

• Market Cap: $62.22M
• Dividend Yield: 4.71%
• Average Volume (3M): 671.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -14.68%
• EPS Growth: -13.53%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.07
• Shares Outstanding: 103,690,340
• 10 Day Avg. Volume: 456,985
• 30 Day Avg. Volume: 671,362
• PEG Ratio: 0.14
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -7.74
• Enterprise Value/Market Cap: 4.50
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 12.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.32
• Revenue Forecast (FY): $125.11M

• Rating: 45 Neutral
• Price Target: $0.70 ▼(-25.32% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held down primarily by deteriorating financial performance (multi-year revenue decline, sustained net losses, and compressed operating cash flow) and bearish technical trends (price below key moving averages with negative MACD). A high dividend yield and improved refinancing flexibility provide partial support, but are outweighed by weak operating fundamentals and the high-cost, asset-secured nature of the new facility.

Positive Factors

Improved Balance Sheet

Eliminating debt materially lowers financial risk and interest burden, creating durable flexibility. A clean balance sheet and sizable equity buffer improve ability to withstand cash flow volatility, pursue opportunistic asset sales or acquisitions, and negotiate better financing over the next several years.

Refinancing Provides Liquidity

The new facility removes near-term maturity pressure and provides committed liquidity to fund tenant and building improvements and ongoing strategic review. That extended runway supports executing property-level initiatives and pursuing strategic alternatives without forced asset disposals.

REIT Rental Income Model

A core REIT model centered on contractual lease income and tenant recoveries yields recurring cash flow potential when occupancy and lease terms stabilize. This structural income base supports long-term dividend capacity and value extraction through disciplined asset management.

Negative Factors

Multi-year Revenue Decline

Sustained top-line contraction signals secular pressure on the office portfolio and reduced scale economics. Continued revenue erosion weakens tenant diversification and bargaining power, impairs margin recovery, and limits the firm's ability to rebuild earnings without structural portfolio repositioning.

Weak Cash Generation

Sharply reduced operating cash flow and intermittent negative free cash flow constrain capital spending and maintenance, forcing reliance on external financing for improvements or strategic moves. Persistent weak cash generation undermines long-term operational resilience and shareholder returns.

Costly, Asset-Secured Financing

A high-rate, asset-secured facility raises recurring interest costs and embeds covenant constraints, reducing operational flexibility. Over time, this increases sensitivity to cash flow shortfalls and limits strategic options like dividends, acquisitions, or asset sales without lender consent.

Franklin Street Properties Business Overview & Revenue Model

Company Description

Franklin 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 Money

FSP primarily makes money by generating rental revenue from tenants occupying space in its properties. Its key revenue stream is lease income (base rent) paid under office leases, which may also include contractual rent escalations over time. In addition to base rent, FSP can earn property-level income through tenant reimbursements and recoveries (where lease terms require tenants to pay or reimburse certain operating expenses such as common area maintenance, utilities, insurance, and property taxes), though the specific mix and magnitude of these items is not available here and varies by property and lease structure. The company may also generate revenue and cash flow from ancillary property income (e.g., parking or other building-related fees) when applicable, but specific details are not available here. Beyond recurring rental operations, FSP can realize gains (or losses) through the sale of properties and potential reinvestment of proceeds; however, the timing and size of such transactions depend on market conditions and portfolio strategy. As a REIT, FSP’s earnings capacity is influenced by occupancy levels, rental rates, tenant credit quality, lease expirations/renewals, operating costs, property valuations, and financing costs (interest expense) associated with debt used to fund acquisitions and operations. Information about any significant partnerships or specific named counterparties contributing materially to earnings is not available here.

Franklin Street Properties Financial Statement Overview

Summary

Operating fundamentals are weak: revenue has declined sharply over multiple years and net income has been negative for four straight years, with a large 2025 loss. Cash generation is thin with operating cash flow down to $3.8M in 2025 and historically negative/volatile free cash flow. The key offset is a much cleaner balance sheet (debt reduced to $0 by 2025) that lowers financial risk, though returns have been negative recently.

Income Statement

Revenue has been in a multi-year decline (from $245.8M in 2020 to $107.2M in 2025), signaling continued top-line pressure for the portfolio. Profitability is weak: net income has been negative for four straight years (2022–2025), with 2025 posting a large loss (-$45.0M) despite very high reported gross margin. EBITDA remains positive, but the business is not translating that into bottom-line earnings, and the overall trajectory shows deterioration from the strong profitability seen in 2020–2021.

Balance Sheet

Leverage has improved materially over time, highlighted by total debt falling from $938.8M (2020) to $0 (2025), which significantly reduces financial risk and interest burden. Equity remains substantial ($607.0M in 2025), providing balance sheet support, though asset levels have also shrunk (total assets down to $892.9M in 2025 from $1.79B in 2020). The key weakness is returns: shareholder returns are negative in recent years (2023–2025), reflecting losses and/or asset value pressure despite the cleaner capital structure.

Cash Flow

Cash generation has weakened notably: operating cash flow fell from $68.4M (2020) to $3.8M (2025), limiting financial flexibility. Free cash flow has been negative in most years (2020–2024) and, while positive in 2025 ($3.8M), it is much lower than historical levels and follows sharp volatility. Overall, cash flow stability is a concern, and recent operating cash flow is thin relative to the company’s ongoing needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	107.16M	120.11M	145.71M	165.62M	209.36M
Gross Profit	88.95M	52.35M	67.78M	78.17M	107.42M
EBITDA	22.56M	21.64M	33.68M	89.69M	206.21M
Net Income	-44.96M	-52.72M	-48.11M	1.09M	92.72M
Balance Sheet
Total Assets	892.88M	946.93M	1.17B	1.24B	1.36B
Cash, Cash Equivalents and Short-Term Investments	30.57M	41.12M	125.53M	3.74M	34.31M
Total Debt	248.59M	247.63M	404.71M	413.01M	480.03M
Total Liabilities	285.91M	291.07M	456.52M	472.93M	580.97M
Stockholders Equity	606.98M	655.86M	712.80M	768.74M	783.20M
Cash Flow
Free Cash Flow	-12.66M	-16.23M	-13.77M	-39.68M	-28.47M
Operating Cash Flow	3.75M	8.99M	17.87M	15.23M	36.36M
Investing Cash Flow	-10.31M	70.28M	113.64M	74.04M	505.47M
Financing Cash Flow	-5.56M	-164.47M	-10.25M	-123.39M	-505.24M

Franklin Street Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSP, the sentiment is Negative. The current price of 0.94 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.80, and below the 200-day MA of 1.27, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 30.79 is Neutral, neither overbought nor oversold. The STOCH value of 7.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSP.

Franklin Street Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ONL	54 Neutral	$130.37M	―	-20.16%	7.34%	-11.41%	-56.73%
PDM	51 Neutral	$830.25M	-6.00	-4.45%	6.09%	-1.23%	9.10%
BDN	51 Neutral	$505.26M	-2.82	-20.40%	17.55%	-5.52%	40.27%
FSP	45 Neutral	$62.22M	-2.18	-7.25%	4.71%	-14.68%	-13.53%

Franklin Street Properties Corporate Events

Franklin Street Properties Secures New $320 Million Credit Facility

On February 26, 2026, Franklin Street Properties Corp. entered into a new secured credit agreement providing a $320 million credit facility, comprising $275 million of initial term loans and up to $45 million of delayed draw term loans maturing in 2029. The facility is secured by first-priority liens on substantially all company assets, carries a 9.0% initial interest rate, includes an exit fee on repayment, and imposes financial covenants such as minimum tangible net worth and liquidity thresholds.

The company used $258.5 million of initial borrowings, net of original issue discount, to refinance and retire approximately $249 million of existing indebtedness under prior bank credit lines and a note purchase agreement on February 26, 2026. Management said the refinancing removes near‑term debt maturity pressure, avoids forced asset sales, and funds tenant and building improvements, thereby providing flexibility to execute property‑level initiatives and continue a broad review of strategic alternatives aimed at maximizing shareholder value in a challenging office market.

The most recent analyst rating on (FSP) stock is a Hold with a $0.81 price target. To see the full list of analyst forecasts on Franklin Street Properties stock, see the FSP Stock Forecast page.