FSP reports $16.6M Q2 loss, suspends dividend, expands strategic review with BofA/JLL

The company disclosed its second quarter 2026 financial results through a press release and supplemental operating and financial data now available on its website. The 8-K itself does not contain specific financial metrics; investors must refer to the attached exhibits for revenue, earnings, occupancy, and other operational details.

FSP reported a Q2 2026 net loss of $16.6 million ($0.16 per share) and a six-month loss of $26.1 million ($0.25 per share). FFO was positive at $1.6 million for Q2 and $2.7 million for the six months. General and administrative expenses decreased by $1.7 million for the six months compared to the prior year due to lower personnel costs.

The company expanded its strategic review process during Q2 2026, engaging BofA Securities and JLL Real Estate Investment Banking as co-financial advisors. The review encompasses potential corporate transactions, portfolio-level transactions, individual asset sales, and other value-maximization initiatives. This signals the company is actively exploring a broad range of strategic alternatives to enhance shareholder value.

On July 8, 2026, FSP sold its Greenwood Plaza property in Englewood, Colorado to University of Colorado Health for approximately $19.4 million. The company used approximately $8.5 million of the net proceeds to repay debt, including interest and fees, retaining approximately $8.9 million in cash from the sale. This disposition reflects progress on the company's strategic objectives and provides additional liquidity.

The Board of Directors suspended quarterly dividend payments on March 9, 2026, to redeploy capital into leasing efforts aimed at enhancing portfolio value. The suspension is expected to preserve approximately $4.1 million in cash annually. The Board will reassess the dividend policy quarterly and announce any changes.

FSP leased approximately 170,000 square feet during the first half of 2026, with about 120,000 square feet from renewals and expansions. However, the portfolio occupancy declined to 67.4% as of June 30, 2026, from 68.9% at year-end 2025, as lease expirations exceeded new leases. The weighted average GAAP base rent per square foot on new leases was $34.34, 7.4% higher than average 2025 rents, with an average lease term of 6.3 years.

FSP entered into a new credit agreement providing $275 million in initial term loans plus up to $45 million in delayed draw term loans. The company used the initial proceeds to refinance and retire all prior outstanding debt including the BMO Term Loan, BofA Term Loan, and Senior Notes. The delayed draw facility can fund tenant improvements, leasing commissions, building improvements, and other approved uses.

For Q2 2026, FSP reported rental revenue of $26.4 million, a net loss of $16.6 million, Adjusted EBITDA of $9.6 million, FFO of $1.6 million, and AFFO of $1.4 million. The net loss included a $7.7 million loss on sale of properties and impairment of assets held for sale.

FSP sold its Greenwood Plaza property in Englewood, Colorado on July 8, 2026 for gross proceeds of $19.4 million, recognizing a loss of $7.6 million on the sale. The property comprised 196,236 square feet.

As of June 30, 2026, FSP's owned portfolio totaled 4.8 million square feet across 14 properties with a leased percentage of 67.4%, down from 68.4% in the prior quarter and 69.1% a year earlier. Note: these figures were previously disclosed in the company's Apr 28, 2026 8-K.

FSP declared no dividend for Q2 2026, compared to $0.01 per share in each of the prior four quarters. This represents a suspension of the quarterly dividend.