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Franklin Street Properties (FSP) AI Stock Analysis
Franklin Street Properties
(NYSE MKT:FSP)
FSP scores near the low end of the range. The dominant issue is financial performance: revenue has contracted sharply as assets are sold, and the company has posted sizable net losses for four consecutive years with only minimal cash generation. The genuine positive is a dramatically de-levered balance sheet — debt has been essentially eliminated — along with improving margins and a return to positive free cash flow, which lowers financial risk even as it shrinks the earnings base. Technicals reinforce caution, with the shares trading well below all key moving averages in a sustained downtrend. Valuation offers little support: earnings are negative, making the P/E uninformative, and the very high dividend yield is questionable given weak cash coverage. The investment case rests on whether office leasing demand recovers enough to stabilize revenue before the portfolio contracts further.
Franklin Street Properties (FSP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $41.73M
- Dividend Yield
- 9.32%
- Average Volume (3M)
- 833.69K
- Price to Earnings (P/E)
- -1.1
- Beta (1Y)
- 0.69
- 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
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
Negative Updates
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
Weak overall, driven by a very poor income statement (score 19): revenue has roughly halved since 2021 to $103.6M TTM and continues to decline, with four straight years of large net losses (-$42.6M TTM, about -41% net margin). Cash flow is thin (score 34) — operating cash flow of just $8.6M, though free cash flow turned positive at $4.7M after four negative years. The balance sheet is the bright spot (score 56): debt has been cut from roughly $480M in 2021 to effectively zero, materially reducing refinancing risk, but this came via asset sales that shrank total assets to $853M and eroded equity to $571M, with return on equity still negative at about -7%.
Income Statement
19Very NegativeBalance Sheet
56NeutralCash Flow
34Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.55M | 107.16M | 120.11M | 145.71M | 165.62M | 209.36M |
| Gross Profit | 47.77M | 46.91M | 52.35M | 67.78M | 78.17M | 107.42M |
| EBITDA | 31.71M | 25.28M | 21.66M | 33.68M | 89.69M | 206.21M |
| Net Income | -42.56M | -44.96M | -52.72M | -48.11M | 1.09M | 92.72M |
Balance Sheet | ||||||
| Total Assets | 853.45M | 892.88M | 946.93M | 1.17B | 1.24B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 34.85M | 30.57M | 41.12M | 125.53M | 3.74M | 34.31M |
| Total Debt | 247.33M | 248.56M | 247.63M | 404.71M | 413.01M | 480.03M |
| Total Liabilities | 282.57M | 285.91M | 291.07M | 456.52M | 472.93M | 580.97M |
| Stockholders Equity | 570.88M | 606.98M | 655.86M | 712.80M | 768.74M | 783.20M |
Cash Flow | ||||||
| Free Cash Flow | 824.00K | -12.66M | -16.23M | -13.77M | -39.68M | -28.47M |
| Operating Cash Flow | 8.55M | 3.75M | 8.99M | 17.87M | 15.23M | 36.36M |
| Investing Cash Flow | 4.44M | -10.31M | 70.28M | 113.64M | 74.04M | 505.47M |
| Financing Cash Flow | -9.72M | -5.56M | -164.47M | -10.25M | -123.39M | -505.24M |
Franklin Street Properties Technical Analysis
Price Trends
Market Momentum
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 0.43 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.37, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 49.63 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 28 risk factors in its most recent earnings report. Franklin Street Properties reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksFranklin Street Properties Peers Comparison
Overall Rating
PDM69Neutral
BDN56Neutral
OPI50Neutral
ONL45Neutral- FSP38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PDM | 69Neutral | $1.19B | -13.76 | -5.98% | ― | 2.85% | -25.01% |
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| BDN | 56Neutral | $508.27M | -3.81 | -19.42% | 10.49% | 3.52% | 25.03% |
| OPI | 50Neutral | $295.93M | -3.74 | -34.83% | 0.15% | -5.75% | -712.58% |
| ONL | 45Neutral | $135.20M | -1.45 | -14.88% | 3.28% | -6.53% | -20.91% |
| FSP | 38Underperform | $41.73M | -1.05 | -7.23% | 9.32% | -5.12% | 7.99% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FSP | Franklin Street Properties | 0.43 | -0.74 | -63.24% | |
| PDM | Piedmont Office Realty Trust | 9.77 | 1.70 | 21.07% | |
| BDN | Brandywine Realty Trust | 3.05 | 0.10 | 3.42% | |
| OPI | Office Properties Income Trust | 12.91 | -20.93 | -61.86% | |
| ONL | Orion Office Reit, Inc. | 2.44 | 0.10 | 4.32% |
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