Franklin Street Properties Corp. Provides Ongoing Update on Strategic Alternatives Review
Overview of Strategic Review Process
Franklin Street Properties Corp. (NYSE American: FSP) (“FSP” or the “Company”) today announced an additional update regarding its previously disclosed review of strategic alternatives. This review, which was initiated by the Company’s Board of Directors, remains active and ongoing as part of FSP’s continued efforts to enhance long-term shareholder value.
The strategic review process was first announced on May 14, 2025, when the Board formally began evaluating a range of potential options designed to strengthen the Company’s financial position and maximize value for shareholders. Since that initial announcement, Franklin Street Properties has continued to carefully assess both internal and external opportunities while engaging with advisors and relevant stakeholders.
Background and Previous Updates
As part of its commitment to transparency, FSP has provided periodic updates on the status of the strategic review. Most recently, on November 21, 2025, the Company issued an initial update confirming that the review process was progressing and that several strategic paths were under consideration.
This latest announcement serves as an additional update, reaffirming that the Board’s review remains ongoing and that no final decisions have yet been made. The Company continues to explore multiple alternatives simultaneously, ensuring that all viable options are thoroughly evaluated before any course of action is finalized.
Strategic Alternatives Under Consideration
The current review encompasses a broad range of potential strategic alternatives. These options include, but are not limited to, a possible sale of the Company, selective or full asset sales, and the refinancing of existing indebtedness. The Board is carefully evaluating each alternative with a focus on its potential impact on shareholder value, long-term stability, and overall corporate strategy.
The Company has emphasized that these alternatives are being assessed in parallel, allowing flexibility as market conditions evolve. FSP has not committed to pursuing any specific transaction at this time and may ultimately determine that continuing its current strategy, with or without modifications, is in the best interests of shareholders.
Focus on Refinancing Discussions
As previously disclosed in the Company’s November 21, 2025 press release, Franklin Street Properties remains actively engaged in discussions with a potential lender regarding the refinancing of all of its existing indebtedness. These negotiations are intended to address upcoming debt maturities and potentially improve the Company’s capital structure.
The proposed refinancing, if completed, would occur before the maturity date of the Company’s current indebtedness. Management views this effort as a critical component of the broader strategic review, as securing favorable financing terms could enhance liquidity, reduce financial risk, and provide additional flexibility moving forward.
Role of Financial Advisor
In connection with the strategic alternatives review, Franklin Street Properties has retained BofA Securities as its financial advisor. BofA Securities is assisting the Company in evaluating strategic options, engaging with potential counterparties, and navigating the complexities of capital markets transactions.
The involvement of an experienced financial advisor underscores the Board’s commitment to conducting a thorough, disciplined, and shareholder-focused review process. The Company continues to work closely with its advisor to assess market interest and identify opportunities that align with FSP’s strategic objectives.
Statement from Chairman and Chief Executive Officer
George J. Carter, Chairman and Chief Executive Officer of Franklin Street Properties Corp., commented on the update:
The process we announced in May 2025 to review strategic alternatives to maximize shareholder value remains ongoing. As previously disclosed in our November 21, 2025, press release, we are actively negotiating with a potential lender to refinance all of our existing indebtedness ahead of its maturity. We believe this remains an important step as we evaluate our options, and we will continue to update the market as developments occur and when it is appropriate to do so.
Mr. Carter emphasized that management and the Board remain focused on acting in the best interests of shareholders while maintaining operational stability during the review process.
No Assurance of Outcome or Timing
While the Company continues to actively pursue strategic alternatives, Franklin Street Properties cautioned that no assurances can be provided regarding the outcome, structure, or timing of any potential transaction. The strategic review and proposed refinancing discussions may result in a transaction, multiple transactions, or no transaction at all.
Additionally, there can be no guarantee that any refinancing arrangement will be completed on acceptable terms, or within a specific timeframe. The Board retains full discretion to modify, suspend, or conclude the strategic review process at any time.
Commitment to Investor Communication
Franklin Street Properties remains committed to keeping investors informed as the strategic review progresses. The Company intends to provide updates when material developments occur and when disclosure is deemed appropriate under applicable regulations.
This press release, along with other news and updates related to Franklin Street Properties Corp., is available on the Company’s website at www.fspreit.com. The Company routinely posts information that may be important to investors in the Investor Relations section of its website.
Access to Investor Resources
Investors are encouraged to regularly review the Investor Relations section of the Company’s website for the latest information, filings, and announcements. Those who wish to receive updates automatically can sign up for the Company’s E-mail Alerts to be notified as soon as new information is posted.
Franklin Street Properties values open communication with its investor community and remains focused on delivering long-term value through disciplined strategy, prudent financial management, and transparent reporting.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
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