Franklin Street Properties Corp. Common Stock (FSP)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business, not the quote. Franklin Street Properties is a small office REIT with 28 employees focused on Sunbelt and Mountain West infill/CBD assets. The filed numbers are ugly: fiscal 2023 revenue was $145.7M, fiscal 2024 $120.1M, and fiscal 2025 $107.2M, a clear downward trend. Net losses were $48.1M, $52.7M, and $45.0M respectively, though the fiscal 2025 loss narrowed modestly. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $26.2M and net income was -$9.5M, better than fiscal Q1 2025's -$21.4M but still unprofitable. Because this is a REIT, depreciation distorts EPS and P/E; I do not use the Graham Number or margin of safety. The right measures are FFO/AFFO, which are not in my data. So I lean on dividend yield, leverage, revenue trend and price-to-book. At the 2026-10-13 close of $0.40, market cap is $41.5M; FairStock's P/B is 0.07, P/E -1.00, EV/EBITDA 8.50, and dividend yield 5.56%. That yield looks fragile because trailing free cash flow is -$4.9M, a -11.9% FCF yield. Debt/equity of 0.44 is not extreme, but Altman Z -1.03 and ROE -6.94% signal distress. The moat is thin: office real estate is capital-intensive, competitive, and currently out of favor. Peter Lynch's computed label is TURNAROUND, loss in latest year after earlier profits, but turnarounds need improving cash flow and a durable asset base. Here, the discount to book is enormous, yet so is the uncertainty. I would want FFO/AFFO, leasing trends, asset sale prices and dividend coverage before calling this cheap rather than value-trapped.

In plain English: Franklin Street Properties owns office buildings, mostly in Sunbelt and Mountain West cities. The business looks weak: revenue has been shrinking and it has been losing money, including a large loss in the latest quarter. The stock price is very low compared with the value of its stated assets, but that discount appears to reflect serious doubts about its cash flow and office real estate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer