Franklin Street Properties Corp.

For the first quarter of 2025, FSP reported FFO of about $2.7 million, or $0.03 per share. GAAP net loss was about $21.4 million, or $0.21 per share. The directly owned portfolio was approximately 69.2% leased at quarter-end, down from 70.3% at the end of the fourth quarter, and economic occupancy was about 67.7% versus 68.6% at year-end 2024. Full-year guidance was not quantified; management said lease execution should remain choppy quarter to quarter in 2025, but they still expect full-year progress, positive net absorption, and that leasing could improve in Q2 and by Q3. The company also said it is currently marketing several properties totaling approximately 1 million square feet for potential disposition, with proceeds intended primarily for debt reduction.

George Carter said the company stayed focused on two priorities: leasing up the existing portfolio and pursuing property dispositions. He emphasized that FSP is monitoring macro uncertainty, including tariff-related volatility, and remains flexible, open-minded, and willing to consider a broad range of operational and strategic alternatives to unlock portfolio value. His tone was cautious but confident, with repeated references to working toward the best path for shareholders.

John Demeritt kept the financial review brief, highlighting that FFO was about $2.7 million, or $0.03 per share, and GAAP net loss was about $21.4 million, or $0.21 per share. He pointed investors to the earnings release, supplemental package, and 10-Q for details. On capital allocation, management reiterated that net proceeds from any property dispositions would be used primarily to repay debt, consistent with the balance-sheet focus from prior periods.

Analysts pressed on why first-quarter leasing was entirely renewals, and John Donahue said several new-lease efforts stalled about a month ago, though the company has seen some post-quarter progress and expects better news in Q2 and by Q3. A second question focused on geographic strength; George Carter said Houston, especially the energy corridor, is the strongest area, Dallas is improving with larger users, and Denver and Minneapolis are better than 6 to 12 months ago but still less robust than Texas suburbs.