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Franklin Street Properties (FSP)
:FSP
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Franklin Street Properties
(NYSE MKT:FSP)
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Rating:49Neutral
Price Target:
$1.50
▼(-6.25% Downside)
The overall stock score is primarily influenced by significant financial challenges, including declining revenues and persistent losses. Technical analysis shows neutral indicators, while valuation concerns arise from a negative P/E ratio despite a modest dividend yield.
Franklin Street Properties (FSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$167.98M
Dividend Yield2.5%
Average Volume (3M)333.06K
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. Volume460,802
30 Day Avg. Volume333,061
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 Cap2.31
Enterprise Value/Revenue3.47
Enterprise Value/Gross Profit6.67
Enterprise Value/Ebitda13.71
Forecast
1Y Price Target
$1.50Price Target Upside-6.25% Downside
Rating ConsensusHold
Number of Analyst Covering1
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
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.45
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.40
Negative
| 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
Negative
1.60
Price Trends
1.65
Negative
1.68
Negative
1.72
Negative
Market Momentum
>-0.01
Positive
40.32
Neutral
6.06
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 1.6 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.65, and below the 200-day MA of 1.72, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | 280.53M | -2.19 | -19.58% | 5.76% | -3.69% | -777.30% | |
57 Neutral | 1.11B | -15.86 | -4.42% | 5.72% | -6.74% | 17.44% | |
56 Neutral | 159.93M | -2.00 | -13.48% | 8.70% | -15.14% | 16.61% | |
50 Neutral | 782.22M | -2.35 | -37.10% | 13.57% | -3.05% | -94.96% | |
49 Neutral | $167.98M | ― | -8.18% | 2.50% | -18.12% | 24.44% | |
48 Neutral | 26.34M | -0.09 | -27.60% | 9.01% | -11.93% | -1877.17% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
FSP
Franklin Street Properties
1.63
-0.03
-1.81%
PDM
Piedmont Office
8.77
-0.87
-9.02%
BDN
Brandywine Realty
4.36
-0.35
-7.43%
OPI
Office Properties Income
0.41
-1.64
-80.00%
CIO
City Office REIT
6.95
1.47
26.82%
ONL
Orion Office REIT
2.76
-1.02
-26.98%
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.