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Franklin Street Properties (FSP) AI Stock Analysis

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FSP

Franklin Street Properties

(NYSE MKT:FSP)

Select Model
Rating:48Neutral
Price Target:$0.43â–²(1.91% Upside)
Action:reiterated
Date:10/29/26

The score is driven primarily by mixed financial performance: a significantly de-risked balance sheet (zero debt) and positive TTM operating/free cash flow are constructive, but sustained revenue declines and deep losses/negative ROE weigh heavily. Technicals remain bearish with the stock trading below key moving averages, while valuation is partially supported by a high dividend yield but limited by negative earnings (negative P/E).

Positive Factors
Debt-Free Balance SheetA debt-free balance sheet materially reduces refinancing and interest-burden risk, giving FSP greater flexibility to manage office assets, withstand operating pressure, and allocate cash toward property needs or other priorities over the coming quarters.
Negative Factors
Sustained Revenue DeclineA multi-period revenue decline signals continuing pressure on FSP’s leasing and property-income base. Lower top-line revenue can weaken operating leverage, reduce resources available for asset investment, and make it harder for the portfolio to regain sustainable profitability over the next several quarters.

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

-80%-60%-40%-20%0%20%FSP-59.63%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$42.72M
Dividend Yield
9.54%
Average Volume (3M)
837.50K
Price to Earnings (P/E)
-1.0
Beta (1Y)
0.66
Revenue Growth
-5.12%
EPS Growth
7.99%
Country
US
Employees
28
Sector
Real Estate
Sector Strength
65
Industry
REIT - Office

Franklin Street Properties Business Overview & Revenue Model

Company Description

Franklin Street Properties Corp. (FSP), a company based in Wakefield, Massachusetts, specializes in acquiring and developing office real estate. Its investment focus centers on properties within central business districts (CBDs) and other dense urban...

How the Company Makes Money

FSP makes money primarily by generating rental and related property income from tenants leasing space in its office properties. Key revenue streams typically include (1) base rent payments under lease contracts, (2) reimbursements from tenants for ce...

Franklin Street Properties Earnings Call Summary

Earnings Call Date:Apr 29, 2025(Q1-2025)|% Change Since:-72.31%|Next Earnings Date:Feb 16, 2027
Earnings Call SentimentNeutral

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.

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.

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.

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

Financials are mixed: the balance sheet is materially de-risked with total debt at zero (strong flexibility), and operating/free cash flow are positive in TTM. Offsetting this, revenue is in a sustained downtrend and profitability is the primary weakness with deeply negative TTM net income and negative ROE, raising concerns about earnings power despite improved leverage.

Income Statement

28Negative

Balance Sheet

62Positive

Cash Flow

46Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue103.55M107.16M120.11M145.71M165.62M209.36M
Gross Profit47.77M46.91M52.35M67.78M78.17M107.42M
EBITDA31.71M25.28M21.66M33.68M89.69M206.21M
Net Income-42.56M-44.96M-52.72M-48.11M1.09M92.72M
Balance Sheet
Total Assets853.45M892.88M946.93M1.17B1.24B1.36B
Cash, Cash Equivalents and Short-Term Investments34.85M30.57M41.12M125.53M3.74M34.31M
Total Debt247.33M248.56M247.63M404.71M413.01M480.03M
Total Liabilities282.57M285.91M291.07M456.52M472.93M580.97M
Stockholders Equity570.88M606.98M655.86M712.80M768.74M783.20M
Cash Flow
Free Cash Flow-5.01M-12.66M-16.23M-13.77M-39.68M-28.47M
Operating Cash Flow8.55M3.75M8.99M17.87M15.23M36.36M
Investing Cash Flow4.44M-10.31M70.28M113.64M74.04M505.47M
Financing Cash Flow-9.72M-5.56M-164.47M-10.25M-123.39M-505.24M

Franklin Street Properties Technical Analysis

Technical Analysis SentimentNeutral
Last Price0.42

Price Trends

50DMA0.37Positive
100DMA0.43Negative
200DMA0.54Negative

Market Momentum

MACD0.01Positive
RSI51.79Neutral
STOCH61.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSP, the sentiment is Neutral. The current price of 0.42 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.37, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 61.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSP.

Franklin Street Properties Risk Analysis

Franklin Street Properties disclosed 28 risk factors in its most recent earnings report. Franklin Street Properties reported the most risks in the "Production" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Franklin Street Properties Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

FSP against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
PDMPDM69Neutral$1.23B-14.10-5.98%―2.85%-25.01%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
BDNBDN56Neutral$528.74M-3.89-19.42%10.29%3.52%25.03%
ONLONL54Neutral$154.59M-5.18-4.51%3.04%-6.38%79.30%
FSPFSP48Neutral$42.72M-1.03-7.23%9.54%-5.12%7.99%
OPIOPI47Neutral$362.23M-0.90-158.70%0.12%-2.26%-779.40%

* Real Estate Sector Average

Performance Comparison

-60%-40%-20%0%20%FSPPDMBDNOPIONLDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
FSP and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
FSPFranklin Street Properties0.42-0.67-61.45%
PDMPiedmont Office Realty Trust10.011.7921.78%
BDNBrandywine Realty Trust3.110.010.29%
OPIOffice Properties Income Trust15.38-18.46-54.56%
ONLOrion Office Reit, Inc.2.630.2912.44%
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: Oct 29, 2026