Franklin Street Properties Corp. (FSP)
Franklin Street Properties Corp. (FSP) is a REIT focused on value-oriented investments in U.S. Sunbelt and Mountain West office properties. The company aims for long-term growth, appreciation, and current income, operating as a REIT for federal income tax purposes.
Company Overview
Franklin Street Properties Corp. (FSP) offers investors exposure to strategically located office properties in high-growth U.S. markets, focusing on value-add opportunities and long-term appreciation, while operating as a REIT and distributing a dividend, currently yielding 5.00%.
Investment Thesis
An investment in Franklin Street Properties Corp. (FSP) presents an opportunity to capitalize on the potential upside in strategically located office properties within high-growth U.S. markets. While the company's negative P/E ratio of -1.80 and negative profit margin of -42.2% reflect current challenges, the 5.00% dividend yield offers an attractive income stream. Key to FSP's success will be its ability to execute its value-oriented investment strategy, focusing on properties with strong fundamentals and potential for improvement. Upcoming catalysts include successful lease-up of vacant space and strategic capital investments to enhance property values. The company's commitment to operating as a REIT ensures a consistent distribution of income to shareholders. Successful execution of these strategies could drive improved financial performance and enhanced shareholder value.
Key Highlights
- Market capitalization of $0.08 billion indicates a smaller-cap REIT with potential for growth.
- Negative P/E ratio of -1.80 reflects current earnings challenges but also potential for turnaround.
- Gross margin of 52.0% demonstrates the potential profitability of FSP's core operations.
- Dividend yield of 5.00% provides an attractive income component for investors.
- Beta of 0.92 suggests the stock is slightly less volatile than the overall market.
Competitors
Strengths
- Strategic focus on high-growth Sunbelt and Mountain West markets.
- Value-oriented investment strategy targeting undervalued assets.
- REIT status provides tax advantages and dividend payouts.
- Experienced management team with expertise in real estate investment and management.
Weaknesses
- Negative P/E ratio and profit margin reflect current earnings challenges.
- Smaller market capitalization compared to larger REITs.
- Dependence on economic conditions and demand for office space.
- High sensitivity to interest rate fluctuations.
Catalysts
- Upcoming: Successful lease-up of vacant space in existing properties.
- Ongoing: Strategic capital investments to enhance property values.
- Ongoing: Continued focus on operational efficiencies to improve profitability.
- Ongoing: Potential acquisitions of undervalued office assets in target markets.
Risks
- Potential: Economic downturn and reduced demand for office space.
- Potential: Rising interest rates increasing borrowing costs.
- Ongoing: Increased competition from other REITs and property owners.
- Potential: Changes in tax laws affecting REITs.
- Ongoing: Dependence on tenant creditworthiness and lease renewals.
Growth Opportunities
- Strategic Acquisitions: FSP can pursue strategic acquisitions of undervalued office properties in its target markets. By identifying and acquiring properties with strong fundamentals and potential for improvement, FSP can enhance its portfolio and drive long-term growth. The market for distressed office assets may present attractive opportunities for FSP to expand its footprint and increase its asset base. Timeline: Ongoing.
- Lease-Up of Vacant Space: A significant growth opportunity lies in leasing up vacant space within FSP's existing portfolio. By attracting new tenants and increasing occupancy rates, FSP can generate higher rental income and improve the overall performance of its properties. This requires proactive marketing efforts, competitive lease terms, and a focus on tenant satisfaction. Timeline: Ongoing.
- Capital Improvements and Renovations: Investing in capital improvements and renovations can enhance the value and appeal of FSP's properties. Upgrading building systems, modernizing common areas, and creating attractive amenities can attract higher-quality tenants and command higher rental rates. This strategy can also improve tenant retention and reduce vacancy rates. Timeline: Ongoing.
- Expansion in Target Markets: FSP can expand its presence in its target markets by developing new properties or acquiring existing ones. By focusing on high-growth areas within the Sunbelt and Mountain West regions, FSP can capitalize on increasing demand for office space and generate long-term growth. This requires careful market analysis and a disciplined investment approach. Timeline: Ongoing.
- Operational Efficiencies: Implementing operational efficiencies can improve FSP's profitability and cash flow. By streamlining processes, reducing operating expenses, and leveraging technology, FSP can enhance its financial performance and create value for shareholders. This includes optimizing property management practices and reducing administrative costs. Timeline: Ongoing.
Opportunities
- Strategic acquisitions of distressed office assets.
- Lease-up of vacant space in existing portfolio.
- Capital improvements and renovations to enhance property values.
- Expansion in target markets with strong growth potential.
Threats
- Economic downturn and reduced demand for office space.
- Rising interest rates increasing borrowing costs.
- Increased competition from other REITs and property owners.
- Changes in tax laws affecting REITs.
Competitive Advantages
- Geographic Focus: Specialization in Sunbelt and Mountain West markets provides local market knowledge.
- Value-Oriented Strategy: Focus on undervalued assets with potential for improvement.
- REIT Status: Tax advantages and consistent dividend payouts attract income-seeking investors.
About
Franklin Street Properties Corp. (FSP), headquartered in Wakefield, Massachusetts, specializes in the acquisition, ownership, and management of office properties located primarily in the U.S. Sunbelt and Mountain West regions, with selective investments in opportunistic markets. Founded with a vision to capitalize on undervalued assets, FSP targets infill and central business district (CBD) properties with the potential for long-term growth and appreciation. The company operates as a Maryland corporation and adheres to the requirements of a real estate investment trust (REIT) for federal income tax purposes. FSP's portfolio strategy emphasizes value-oriented investments, seeking to generate both current income and capital appreciation for its shareholders. The company's investment approach involves identifying properties with strong fundamentals and potential for improvement through active management and strategic capital investments. FSP's focus on specific geographic regions allows it to leverage local market knowledge and build strong relationships with tenants and brokers. The company's commitment to maintaining REIT status ensures that it distributes a significant portion of its taxable income to shareholders in the form of dividends. As of 2026, FSP continues to refine its portfolio, seeking opportunities to enhance its asset base and deliver value to its investors.
What They Do
- Acquires office properties in the U.S. Sunbelt and Mountain West regions.
- Focuses on infill and central business district (CBD) office properties.
- Seeks value-oriented investments with long-term growth potential.
- Manages and operates its portfolio of office properties.
- Aims to generate both current income and capital appreciation for shareholders.
- Operates as a real estate investment trust (REIT) for federal income tax purposes.
- Distributes a significant portion of its taxable income to shareholders in the form of dividends.
Business Model
- Acquires office properties with growth potential.
- Generates revenue through rental income from tenants.
- Manages properties to maximize occupancy and rental rates.
- Distributes a portion of taxable income as dividends to shareholders to maintain REIT status.
Industry Context
Franklin Street Properties Corp. operates within the REIT - Office sector, which is influenced by broader economic trends, interest rates, and demand for office space. The competitive landscape includes other office REITs such as Armada Hoffler Properties (AEI), which also focus on strategic property investments. Market trends include a shift towards flexible workspaces and increased demand in Sunbelt and Mountain West regions. FSP's focus on value-oriented investments positions it to capitalize on opportunities in these growing markets. The REIT sector is sensitive to interest rate changes, which can impact borrowing costs and property valuations.
Key Customers
- Businesses and organizations seeking office space.
- Tenants in various industries, including technology, finance, and professional services.
- Shareholders seeking income and capital appreciation from real estate investments.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $27M | -$8M | $-0.08 |
| Q2 2025 | $27M | -$8M | $-0.08 |
| Q1 2025 | $27M | -$21M | $-0.21 |
| Q4 2024 | $28M | -$9M | $-0.08 |
Source: Company filings
Chart & Info
Price Chart
Franklin Street Properties Corp. (FSP) stock price: $0.76 (+0.00, +0.00%)
Why Bull
- •Recent insider buying signals confidence in the company's future performance, suggesting insiders believe the stock is undervalued.
- •Community sentiment has shifted positively, with discussions highlighting the potential for recovery in the commercial real estate sector.
- •Market perception is improving as investors become more optimistic about the post-pandemic recovery, particularly in office spaces.
- •The company's strategic focus on high-demand markets positions it well for growth as economic conditions stabilize.
Why Bear
- •Concerns remain about the overall health of the commercial real estate market, with many investors wary of potential vacancies and declining rents.
- •Social sentiment includes skepticism regarding the company's ability to adapt to changing work environments, particularly with remote work trends.
- •Recent bearish commentary from analysts indicates lingering doubts about the sustainability of the company's revenue streams in the current market.
- •Insider selling activity earlier in the year raised red flags for some investors, leading to caution in the community regarding future performance.
Latest News
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Franklin Street Properties Corp. Provides Additional Update on Review of Strategic Alternatives
Yahoo! Finance: FSP News · Feb 5, 2026
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Franklin Street Properties Corp. Provides Additional Update on Review of Strategic Alternatives
Business Wire · Feb 5, 2026
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Earnings Scheduled For October 28, 2025
benzinga · Oct 28, 2025
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Earnings Scheduled For July 29, 2025
benzinga · Jul 29, 2025
Technical Analysis
Rationale
AI-generated technical analysis for FSP including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for FSP.
Make a Prediction
Set your price target for Franklin Street Properties Corp. (FSP), choose a timeframe, and track your prediction accuracy.
Current price: $0.76
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FSP.
Price Targets
Wall Street price target analysis for FSP.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 8/100
Gross margin at 42.2% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates FSP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Franklin Street Properties Corp. Provides Additional Update on Review of Strategic Alternatives
Franklin Street Properties Corp. Provides Additional Update on Review of Strategic Alternatives
Earnings Scheduled For October 28, 2025
Earnings Scheduled For July 29, 2025
Frequently Asked Questions
What does Franklin Street Properties Corp. do?
Franklin Street Properties Corp. (FSP) is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing office properties primarily in the U.S. Sunbelt and Mountain West regions. The company targets infill and central business district (CBD) properties with the goal of generating both current income and long-term capital appreciation. FSP operates as a REIT, which requires it to distribute a significant portion of its taxable income to shareholders in the form of dividends. The company's strategy involves identifying undervalued assets with potential for improvement through active management and strategic capital investments.
Is FSP stock a good buy?
FSP stock presents a mixed investment profile. While the company's negative P/E ratio of -1.80 and negative profit margin of -42.2% raise concerns, the 5.00% dividend yield offers an attractive income stream. The potential for growth lies in FSP's ability to execute its value-oriented investment strategy and capitalize on opportunities in high-growth markets. Investors should carefully consider the risks associated with the office REIT sector, including economic conditions and interest rate fluctuations, before making an investment decision. Further, the relatively small market cap of $0.08B may indicate a higher risk profile.
What are the main risks for FSP?
Franklin Street Properties Corp. (FSP) faces several key risks. Economic downturns and reduced demand for office space could negatively impact occupancy rates and rental income. Rising interest rates could increase borrowing costs and reduce property values. Increased competition from other REITs and property owners could put pressure on rental rates and occupancy. Changes in tax laws affecting REITs could reduce the company's profitability. Additionally, FSP is dependent on the creditworthiness of its tenants and their ability to renew leases, which could be impacted by economic conditions.
Is FSP a good stock to buy?
Whether FSP is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the FSP MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is FSP data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for FSP?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Franklin Street Properties Corp..
Who are FSP's main competitors?
Franklin Street Properties Corp.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how FSP compares.
What do analysts say about FSP?
Analyst ratings and price targets for FSP are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is FSP's market cap?
Market capitalization reflects the total market value of FSP's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has FSP stock performed recently?
Check the Chart & Info tab for FSP's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in FSP?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for FSP-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling FSP?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for FSP.
Is FSP a good stock for beginners?
Franklin Street Properties Corp. (FSP) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is FSP for first-time investors?
Every stock carries risk, including Franklin Street Properties Corp. (FSP). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like FSP.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recently available information.
- Investment decisions should be based on individual risk tolerance and financial circumstances.
- This analysis is for informational purposes only and does not constitute investment advice.