Earnings release
Page 1
PRESS RELEASE Franklin Street Properties Corp. 401 Edgewater Place Suite 200 Wakefield, Massachusetts 01880 (781) 557-1300 www.fspreit.com Contact: Georgia Touma (877) 686-9496 For Immediate Release Franklin Street Properties Corp. Announces Third Quarter 2026 Results Wakefield, MA— October 27, 2026—Fra nklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American: FSP), a real estate investment trust (REIT), announced its results for the third quarter ended September 30, 2026. George J. Carter, Chairman and Chief Executive Officer, commented as follows: “As we continue to move through 2026, our focus remai ns squarely on trying to maximize shareholder value through our expanded evaluation of strategic alternatives, proactive asset management, expense management, and efforts to improve leasing and occupancy. During the quarter, we endeavored to make progr ess on several important strategic initiatives, while maintaining financial and strategic flexibility. Importantly, our recent refinancing of our outstan ding debt has provided the Company with increased flexibility, allowing us to pursue strategic initiatives in a disciplined and thoughtful manner. This position allows us to act more opportunistically as market conditions evolve and as opportunities emerge. On July 8, 2026, we sold our Greenwood Plaza property located in Englewood, Colorado to University of Colorado Health for a gross selling price of approximately $19.4 million. In addition, on July 8, 2026, we used approximately $8.5 million of the net proceeds from the disposition for the repayment of debt, including interest and fees. We believe that this di sposition reflects disciplined execution, targeted owner-user marketing, and continued progress on our broader strategic objectives. During the third quarter and into October, the Compa ny continued its expanded strategic review process with BofA Securities and JLL Securities serving as our co -advisors. The process has included extensive market outreach, multiple rounds of price discovery and evalua tion of potential Company, portfolio, subportfolio and individual asset transactions. However, office invest ment demand and liquidity re main uneven nationally and are challenged in several of our markets. Based on the recommendations of our co-advisors and the results of the process to date, the Company has identified a number of individual asset and subportfolio sale opportunities that it intends to actively pursue in the fourth quarter. The Company w ill continue working with its co -advisors and prospective purchasers regarding these potential opportunities and any other potential transactions th at may arise. Completion of any such sales or transactions will depend on reaching acceptable final pricing terms and counterparties completing due diligence processes and finalizing financing arrangements. Operationally, we remain focused on improving occupa ncy, extending lease duration, prudently managing operating expenses, and allocating capital where we believe it can generate the greatest long-term value for our shareholders. Notably, we were successful in reducing general and administrative expenses for the nine months ended September 30, 2026 by $2.6 million compared to the nine months ended September 30, 2025 primarily as a result of lower personnel costs. We also continue to prioritize leasing and asset management initiatives across the portfolio. These efforts remain important because changes in occupancy, lease duration, capital requirements and tenant quality can materially affect the value and marketability of individual assets.”
Page 2
-2- Financial Highlights GAAP net loss was $9.1 million and $35.2 million, or $0.09 and $0.34 per basic and diluted share for the three and nine months ended September 30, 2026, respectively. Funds From Operations (FFO) was $1.4 million an d $4.2 million, or $0.01 and $0.04 per basic and diluted share, for the three and nine months ended September 30, 2026, respectively. General and administrative expenses for the nine months ended September 30, 2026, were $2.6 million lower compared to the nine months ended September 30, 2025 as a result of lower personnel costs. On July 8, 2026, we sold our property Greenwood Plaza property located in Englewood, Colorado for a gross selling price of approximately $19.4 million and used proceeds to repay debt of approximately $8.5 million, including interest and fees. We retained cash from the sale of approximately $8.9 million. Leasing Highlights During the nine months ended September 30, 2026, we leased approximately 226,000 square feet of space of which approximately 163,000 were from renewals and expansions of existing tenants. Our directly-owned real estate portfolio of 13 properties, totaling approximately 4.6 million square feet, was approximately 66.2% leased as of September 30, 2026, compared to approximately 68.9% leased as of December 31, 2025. The decrease in the leased percentage is due to lease expirations exceeding new executed leases during the nine months ended September 30, 2026. The weighted average GAAP base rent per square foot achieved on leasing activity during the nine months ended September 30, 2026, was $33.57, or 11.5% higher than average rents in the respective properties for the year ended December 31, 2025. The average lease term on leases signed during the nine months ended September 30, 2026, was 6.8 years compared to 5.7 years during the year ended December 31, 2025. Overall, the portfolio weighted average rent per occupied square foot was $30.42 as of September 30, 2026, compared to $30.86 as of December 31, 2025. We believe that our continuing portfolio of real est ate is well located within their respective markets, primarily in the southwest and mountain west geogr aphic regions, and consists of high-quality assets with long-term upside leasing potential. Dividend On March 9, 2026, the Company announced that the Board of Directors had determined to suspend the payment of quarterly dividends. The Board did so in part to redeploy that capital into leasing efforts intended to enhance the value of our portfolio. The Company estimates that suspension of the dividend will preserve approximately $4.1 million in cash on an annualized basis. The Board and the Company will reassess, on a quarterly basis, when and if quarterly dividend payments can be reinstated and will announce any change to the dividend policy. Consolidation of Sponsored REIT As of January 1, 2023, we consolidated the operati ons of our Monument Circle sponsored REIT into our financial statements and on June 6, 2025, the property held by Monument Circle was sold and Monument Circle and the corporation that had been its sole member were dissolved on December 9, 2025. Additional information about the consolidation of Monument Circle can be found in Note 2, “Significant Accounting Policies - Variable Interest Entities (VIEs)”, Note 3, “Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans” and Note 10, “Disposition of Properties and Assets Held for Sale”, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for year ended December 31, 2025.
Page 3
-3- Non-GAAP Financial Information A reconciliation of Net loss to FFO, Adjusted Funds From Operations (AFFO) and Sequential Same Store NOI and our definitions of FFO, AFFO and Sequential Same Store NOI can be found on Supplementary Schedules H and I. Real Estate Update Supplementary schedules provide property information for the Company’s owned and consolidated properties as of September 30, 2026. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com. Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to cons ult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts. 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. Southw est and Mountain West, as well as select opportunistic markets. FSP is focused on long-term growth and appr eciation. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investme nt trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
Page 4
-4- Forward-Looking Statements Statements made in this press release that state FSP’ s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements, such as those relating to our review of strategic alternatives, expec tations for future potential leasing activity, expectations for property dispositions, which we may be unable to e ffect at acceptable terms and conditions, and if we are able to engage in such transactions, the timing thereo f, value creation/enhancem ent in future periods and expectations for growth and leasing activities in futu re periods, which are based on current judgments and current knowledge of management and are subject to cert ain risks, trends and uncertainties that could cause actual results to differ materially from those indicate d in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, adverse changes in general economic or local market conditions, including as a result of the long-term effects of the COVID-19 pandemic, wars, terrorist attacks or other acts of viol ence, which may negatively a ffect the markets in which we and our tenants operate, impacts of changes in tar iffs that the United States and other countries have announced or implemented, as well as any additional new tariffs, trade restri ctions or export regulations that may be implemented or reversed in th e future, inflation rates, interest rate s, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy pri ces, which if sustained, could negatively impact occupancy and rental rates in the ma rkets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated, such as utility rate and usage increases, increases in the level of general and administrative costs as a percentage of revenues as revenues decrease as a result of property dispositions, unanticipated repairs, additional staffing, insurance increases and real estate ta x valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, which may be further updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.
Page 5
-5- Franklin Street Properties Corp. Earnings Release Supplementary Information Table of Contents Franklin Street Properties Corp. Financial Results A-C Real Estate Portfolio Summary Information D Portfolio and Other Supplementary Information E Percentage of Leased Space F Largest 20 Tenants – FSP Owned Portfolio G Reconciliation and Definitions of Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) H Reconciliation and Definition of Sequential Same Store results to Property Net Operating Income (NOI) and Net Loss I
Page 6
-6- Franklin Street Properties Corp. Financial Results Supplementary Schedule A Condensed Consolidated Statements of Operations (Unaudited) For the For the Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2026 2025 2026 2025 Revenue: Rental $ 24,934 $ 27,300 $ 77,514 $ 81,122 Total revenue 24,934 27,300 77,514 81,122 Expenses: Real estate operating expenses 10,600 10,671 30,896 31,467 Real estate taxes and insurance 2,133 5,262 10,926 14,822 Depreciation and amortization 10,500 10,550 31,512 32,000 General and administrative 2,160 3,034 7,230 9,799 Interest 7,819 6,348 22,618 18,378 Total expenses 33,212 35,865 103,182 106,466 Loss on extinguishment of debt (1,015) (7) (2,282) (12) Gain (loss) on sale of properties and impairment of assets held for sale, net 3 — (7,688) (12,900) Interest income 244 249 564 756 Loss before taxes (9,046) (8,323) (35,074) (37,500) Tax expense 57 3 161 137 Net loss $ (9,103) $ (8,326) $ (35,235) $ (37,637) Weighted average number of shares outstanding, basic and diluted 104,012 103,690 103,839 103,623 Loss per share, basic and diluted: Net loss per share, basic and diluted $ (0.09) $ (0.08) $ (0.34) $ (0.36)
Page 7
-7- Franklin Street Properties Corp. Financial Results Supplementary Schedule B Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, (in thousands, except share and par value amounts) 2026 2025 Assets: Real estate assets: Land $ 95,783 $ 98,883 Buildings and improvements 1,056,178 1,091,728 Fixtures and equipment 11,255 11,572 1,163,216 1,202,183 Less accumulated depreciation 408,937 408,461 Real estate assets, net 754,279 793,722 Acquired real estate leases, less accumulated amortization of $15,648 and $14,648, respectively 1,263 2,490 Cash, cash equivalents and restricted cash 34,851 30,571 Tenant rent receivables 1,493 471 Straight-line rent receivable 36,330 38,744 Prepaid expenses and other assets 4,096 4,080 Office computers and furniture, net of accumulated depreciation of $1,003 and $1,047, respectively 119 136 Deferred leasing commissions, net of accumulated amortization of $14,260 and $14,571, respectively 21,023 22,670 Total assets $ 853,454 $ 892,884 Liabilities and Stockholders’ Equity: Liabilities: Initial Term Loans, less unamortized financing costs and OID of $19,554 $ 247,298 $ — Term loans payable, less unamortized financing costs of $441 — 125,555 Series A & Series B Senior Notes, less unamortized financing costs of $236 — 122,686 Accounts payable and accrued expenses 28,097 28,724 Accrued compensation 247 2,394 Tenant security deposits 6,056 6,198 Lease liability 842 316 Acquired unfavorable real estate leases, less accumulated amortization of $61 and $56, respectively 29 34 Total liabilities 282,569 285,907 Commitments and contingencies Stockholders’ Equity: Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding — — Common stock, $.0001 par value, 180,000,000 shares authorized, 104,011,708 and 103,690,340 shares issued and outstanding, respectively 10 10 Additional paid-in capital 1,335,766 1,335,586 Accumulated distributions in excess of accumulated earnings (764,891) (728,619) Total stockholders’ equity 570,885 606,977 Total liabilities and stockholders’ equity $ 853,454 $ 892,884
Page 8
-8- Franklin Street Properties Corp. Financial Results Supplementary Schedule C Condensed Consolidated Statements of Cash Flows (Unaudited) For the Nine Months Ended September 30, (in thousands) 2026 2025 Cash flows from operating activities: Net loss $ (35,235) $ (37,637) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 35,930 34,045 Amortization of above and below market leases (1) — Shares issued as compensation 180 225 Loss on extinguishment of debt 2,282 12 Loss on sale of properties and impairment of assets held for sale, net 7,688 12,900 Changes in operating assets and liabilities: Tenant rent receivables (1,022) (97) Straight-line rents 2,036 (41) Lease acquisition costs (275) (1,096) Prepaid expenses and other assets 501 (498) Accounts payable and accrued expenses (2,621) (4,274) Accrued compensation (2,147) (462) Tenant security deposits (142) 21 Payment of deferred leasing commissions (2,453) (3,176) Net cash provided by (used in) operating activities 4,721 (78) Cash flows from investing activities: Property improvements, fixtures and equipment (9,755) (12,608) Proceeds received from sales of properties 17,993 6,100 Net cash provided by (used in) investing activities 8,238 (6,508) Cash flows from financing activities: Distributions to stockholders (1,037) (3,108) Cost of extinguished debt (1,388) — Proceeds received from Initial Term Loans 258,500 — Repayments of Initial Term Loans (8,148) — Repayments of Term loans payable (125,995) (716) Repayments of Series A&B Senior Notes (122,922) (698) Deferred financing costs (7,689) — Net cash used in financing activities (8,679) (4,522) Net increase (decrease) in cash, cash equivalents and restricted cash 4,280 (11,108) Cash, cash equivalents and restricted cash, beginning of year 30,571 42,683 Cash, cash equivalents and restricted cash, end of period $ 34,851 $ 31,575
Page 9
-9- Franklin Street Properties Corp. Earnings Release Supplementary Schedule D Real Estate Portfolio Summary Information (Unaudited & Approximated) Commercial portfolio lease expirations (1) Total % of Year Square Feet Portfolio 2026 63,114 1.4% 2027 547,333 11.9% 2028 217,436 4.7% 2029 384,322 8.3% 2030 274,286 5.9% Thereafter (2) 3,126,760 67.8% 4,613,251 100.0% (1) Percentages are determined based upon total square footage. (2) Includes 1,558,389 square feet of vacancies at our owned properties as of September 30, 2026. (dollars & square feet in 000's) As of September 30, 2026 % of Square % of State Properties Investment Portfolio Feet Portfolio Colorado 3 $ 394,938 52.4% 1,947 42.2% Texas 7 252,218 33.4% 1,908 41.4% Minnesota 3 107,123 14.2% 758 16.4% Total 13 $ 754,279 100.0% 4,613 100.0%
Page 10
-10- Franklin Street Properties Corp. Earnings Release Supplementary Schedule E Portfolio and Other Supplementary Information (Unaudited & Approximated) Recurring Capital Expenditures For the Nine (in thousands) For the Three Months Ended Months Ended 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 Tenant improvements $ 3,386 $ 1,838 $ 4,115 $ 9,339 Deferred leasing costs 1,386 248 819 2,453 Non-investment capex 489 729 1,145 2,363 $ 5,261 $ 2,815 $ 6,079 $ 14,155 (in thousands) For the Three Months Ended Year Ended 31-Ma r-25 30-Jun-25 30-Sep-25 31-Dec-25 31-Dec-25 Tenant improvements $ 2,374 $ 1,415 $ 4,469 $ 2,023 $ 10,281 Deferred leasing costs 545 1,702 929 1,050 4,226 Non-investment capex 1,258 750 753 1,154 3,915 $ 4,177 $ 3,867 $ 6,151 $ 4,227 $ 18,422 Square foot & leased percentages September 30, Decembe r 31, 2026 2025 Owned Properties: Number of properties 13 14 Square feet 4,613,251 4,807,663 Leased percentage 66.2% 68.9%
Page 11
-11- Franklin Street Properties Corp. Earnings Release Supplementary Schedule F Percentage of Leased Space (Unaudited & Estimated) Second Third % Leased (1) Quarter % Leased (1) Quarter as of Avera ge % as of Avera ge % Property Name Location S quare Feet 30-Jun-26 Leased (2) 30-Se p-26 Leased (2) Jan-00 Jan-00 1 PARK TEN Houston, TX 157,609 86.8% 86.8% 86.8% 86.8% 2 PARK TEN PHASE II Houston, TX 156,746 78.3% 77.6% 78.3% 78.3% GREENWOOD PLAZA (3) Englewood, CO — 65.0% 65.0% (3) (3) 3 ADDISON Addison, TX 289,333 64.3% 64.3% 61.8% 61.8% 4 LIBERTY PLAZA Addison, TX 217,841 64.3% 66.0% 64.3% 64.3% 5 ELDRIDGE GREEN Houston, TX 248,399 100.0% 100.0% 100.0% 100.0% 6 121 SOUTH EIGHTH ST Minneapolis, MN 297,744 75.5% 74.8% 77.4% 76.1% 7 801 MARQUETTE AVE Minnea polis, MN 129,691 91.8% 91.8% 91.8% 91.8% 8 LEGACY TENNYSON CTR Plano, TX 209,562 60.9% 60.9% 60.9% 60.9% 9 WESTCHASE I & II Houston, TX 629,025 67.0% 67.2% 65.5% 66.3% 10 1999 BROADWAY Denver, CO 682,639 47.5% 48.6% 47.1% 47.1% 11 1001 17TH STREET Denver, CO 652,423 74.5% 76.4% 73.1% 73.1% 12 PLAZA SEVEN Minneapolis, MN 330,096 45.3% 46.5% 43.0% 44.6% 13 600 17TH STREET Denver, CO 612,143 69.7% 69.7% 65.0% 65.8% OWNED PORTFOLIO 4,613,251 67.4% 67.9% 66.2% 66.5% (1) % Leased as of month's end includes all leases that expire on the last day of the quarter. (2) Average quarterly percentage is the average of the end of the month leased percentage for each of the three months during the quarter. (3) This property was sold on July 8, 2026.
Page 12
-12- Franklin Street Properties Corp. Earnings Release Supplementary Schedule G Largest 20 Tenants – FSP Owned Portfolio (Unaudited & Estimated) The following table includes the largest 20 tenants in FSP’s owned portfolio based on total square feet: As of September 30, 2026 % of Tenan t Sq F t Portfolio 1 CITGO Petroleum Corporation 248,399 5.4% 2 EOG Resources, Inc. 169,167 3.7% 3 US Government 168,573 3.6% 4 Deluxe Corporation 98,922 2.1% 5 Olin Corporation 81,480 1.8% 6 Permian Resources Operating, LLC 67,856 1.5% 7 Hall and Evans LLC 65,878 1.4% 8 Cyxtera Management, Inc. 61,826 1.3% 9 Precision Drilling (US) Corporation 59,569 1.3% 10 Ping Identity Corp. 54,964 1.2% 11 PwC US Group 54,334 1.2% 12 Coresite, LLC 49,518 1.1% 13 Schwegman, Lundberg & Woessner, P.A. 46,269 1.0% 14 Ark-La-Tex Financial Services, LLC. 41,011 0.9% 15 Invenergy, LLC. 35,088 0.8% 16 Chevron U.S.A., Inc. 35,088 0.8% 17 Moss, Luse & Womble, LLC 34,071 0.7% 18 QB Energy Operating, LLC. 34,063 0.7% 19 WDT Acquisition Corporation 30,913 0.7% 20 CarOffer, LC 30,913 0.6% Total 1,467,902 31.8%
Page 13
-13- Franklin Street Properties Corp. Earnings Release Supplementary Schedule H Reconciliation and Definitions of Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) A reconciliation of Net loss to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I. Mana gement believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurement s of performance. The Company has included the National Association of Real Estate Investment Trus ts (NAREIT) FFO definition as of May 17, 2016 in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. The Company’s computation of FFO and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently. Reconciliation of Net loss to FFO and AFFO: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2026 2025 2026 2025 Net loss $ (9,103) $ (8,326) $ (35,235) $ (37,637) Loss (gain) on sale of properties and impairment of asset held for sale, ne t (3) — 7,688 12,900 Amortization of favorable leases — — (1) — Depreciation & amortization 10,500 10,550 31,512 32,000 NAREIT FFO 1,394 2,224 3,964 7,263 Lease Acquisition costs 41 99 188 303 Funds From Operations (FFO) $ 1,435 $ 2,323 $ 4,152 $ 7,566 Funds From Operations (FFO) $ 1,435 $ 2,323 $ 4,152 $ 7,566 Loss on extinguishment of debt 1,015 7 2,282 12 Amortization of deferred financing costs and OID 1,666 677 4,418 2,045 Shares issued as compensation — — 180 225 Straight-line rent 1,085 (37) 2,036 (41) Tenant improvements (4,115) (4,469) (9,339) (8,258) Leasing commissions (819) (929) (2,453) (3,176) Non-investment capex (1,145) (753) (2,363) (2,761) Adjusted Funds From Operations (AFFO) $ (878) $ (3,181) $ (1,087) $ (4,388) Per Share Data EPS $ (0.09) $ (0.08) $ (0.34) $ (0.36) FFO $ 0.01 $ 0.02 $ 0.04 $ 0.07 AFFO $ (0.01) $ (0.03) $ (0.01) $ (0.04) Weighted average shares (basic and diluted) 104,012 103,690 103,839 103,623
Page 14
-14- Funds From Operations (“FFO”) The Company evaluates performance based on Funds Fr om Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs. FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance wi th GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different ma nner. We have included the NAREIT FFO as of May 17, 2016 in the table and note that other REITs may not define FFO in a ccordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do. We believe that in order to facilitate a clear understa nding of the results of the Company, FFO should be examined in connection with net income or loss a nd cash flows from operating, investing a nd financing activities in the consolidated financial statements. Adjusted Funds From Operations (“AFFO”) The Company also evaluates performan ce based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and incl uding distributions received, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5 ) plus the amortization of deferred financing costs and original issue discounts, (6) plus the value of shar es issued as compensation and (7) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. S econd generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions. We exclude development/redevelopment activities, capita l expenditures planned at acquisition and costs to reposition a property. We also exclude first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned for at acquisition. AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance wi th GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.
Page 15
-15- Franklin Street Properties Corp. Earnings Release Supplementary Schedule I Reconciliation and Definition of Sequential Same Store results to property Net Operating Income (NOI) and Net Income Net Operating Income (“NOI”) The Company provides property performance based on Ne t Operating Income, which we refer to as NOI. Management believes that investors are interested in this information. NOI is a non-GAAP financial measure that the Company defines as net income or loss (the mo st directly comparable GAAP financial measure) plus general and administrative expenses, depreciation and am ortization, including amortization of acquired above and below market lease intangibles and impairment charg es, interest expense, less equity in earnings of nonconsolidated REITs, interest income, management fee income, hedge ineffec tiveness, gains or losses on extinguishment of debt, gains or losses on the sale of assets and excludes non-property specific income and expenses. The information presented includes footnotes and the data is shown by region with properties owned in the periods presented, which we call Sequential Same Store. The comparative Sequential Same Store results include properties held for all periods presented. We ex clude properties that have been placed in service, but that do not have operating activity fo r all periods presented, dispositions and significant nonrecurring income such as bankruptcy settlements and lease termination f ees. NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that defi ne NOI differently. NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company’s liquidity or its ability to make distributions . The calculations of NOI and Sequential Same Store are shown in the following table: Rentable Square Feet Three Months Ended Three Months Ended Inc % (in thousands) or RSF 30-Sep-26 30-Jun-26 (Dec) Change Region MidWest 758 $ 1,228 $ 1,466 $ (238) (16.2)% South 1,908 4,155 4,479 (324) (7.2)% West 1,947 6,508 4,966 1,542 31.1 % Property NOI* from Owned Properties 4,613 11,891 10,911 980 9.0 % Disposition and Acquisition Properties (a) - 57 641 (584) (5.6)% NOI* 4,613 $ 11,948 $ 11,552 $ 396 3.4 % Sequential Same Store $ 11,891 $ 10,911 $ 980 9.0 % Less Nonrecurring Items in NOI* (b) 860 347 513 (4.6)% Comparative Sequential Same Store $ 11,031 $ 10,564 $ 467 4.4 %
Page 16
-16- Reconciliation to Three Months Ended Three Months Ended Net loss 30-Sep-26 30-Jun-26 Net loss $ (9,103) $ (16,605) Add (deduct): Loss on extinguishment of debt 1,015 — (Gain) loss on sale of properties and impairment of assets held for sale, ne t (3) 7,691 Management fee income (341) (311) Depreciation and amortization 10,500 10,432 Amortization of above/below market leases — (1) General and administrative 2,160 2,401 Interest expense 7,819 7,987 Interest income (244) (157) Non-property specific items, net 145 115 NOI* $ 11,948 $ 11,552 (a) We define Disposition and Acquisition Properties as properties that were sold acquired or consolidated and do not have operating activity for all periods presented. (b) Nonrecurring Items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability. *Excludes NOI from investments in and interest income from secured loans to non-consolidated REITs.
Page 17
Franklin Street Properties Corp. Supplemental Operating & Financial Data 401 Edgewater Place ~Wakefield, MA 01880 781.557.1300.~ www.fspreit.com
Page 18
Third Quarter 2026 Table of Contents September 30, 2026| Page 2 ` Page Page Company Information 3 Tenant Analysis and Leasing Activity Tenants b y Industry 16 Key Financial Data 20 Largest Tenants with Annualized Rent and Remaining Term 17-18 Financial Highlights 4 Leasin g Activity 19 Income Statements 5 Lease Expirations by Square Feet 20 Balance Sheets 6 Lease Ex pirations with Annualized Rent per Square Foot 21 Cash Flow Statements 7 Capital Expenditures 22 Property Net Operating Income (NOI) 8 Reconciliation Disposition Activity 23 FFO & AFFO 9 EBITDA 10 Net Asset Value Components 24 Property NOI 11 Appendix: Non-GAAP Financial Measures Definitions Debt Summary 12 FFO 25 EBITDA and NOI 26 Capital Analysis 13 AFFO 27 Owned and Consolidated Portfolio Overview 14-15 All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the ex pectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include adverse change s in general economic o r local market conditions, including as a result of the long-term effects of the COVID-19 pandemic, wars, terrorist attacks or other acts of violence, which may negatively affect the mark ets in which we and our tenants operate, impacts of changes in tariffs that the United States and other countries have announced or implemented, as well as any additional new tariffs, trade restrictions or export regulations that may be implemente d or reversed in the future, in flation rates, interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening o f demand for the types of real estate owned by us, adverse chan ges in energy prices, which if sustained, could negativel y impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, expectations for future potential property dispositions, expectations for future potential leasing activity, changes in government regulations and regu latory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated, such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, increases in the level of general and administrative costs as a percentage of revenues as reve nues decrease as a result of property dispositions, additional staffing, insurance increases and real estate tax valuation reasse ssments. FSP assumes no obligation to update o r supplement forward-looking statements that become untrue because of subsequent events. Libert y Plaza, Addison, TX
Page 19
Company Information September 30, 2026| Page 3 Overview Snapshot (as of September 30, 2026) Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Southwest and Mountain West, as well as select opportunistic markets. FSP is focused on long-term growth and appreciation. FSP is a Maryland corporation that operates in a manne r intended to qualify as a real estate investment trust (R EIT) for federal income tax purposes. FSP’s real estate operations include property acquisitions and dispositions , short-term financing, leasing, development and asse t management. Cor porate Headquarters Wakefield, MA Fiscal Yea r-End 31-Dec Owned Pro perties 13 Total S quare Feet 4.6 Million Tradin g Symbol FSP Exchange NYSE American Common Shares Outstandin g 104,011,708 Our Business Total Market Ca pitalization $0.3 Billion (1) As of September 30, 2026, the Company owned a portfolio of real estate consisting of 13 owned properties. The Company may pursue the sale of its properties in order to take advantage of the value creation and demand for its properties, for geographic, property specific reasons or for other general corporate purposes. Insider Holdin gs 5.49% Management Team George J. Carter Jeffre y B. Carter Chief Executive Officer and President and Chief Investment Chairman of the Board Office r John G. Demeritt Scott H. Carte r Executive Vice President, Chief Executive Vice President, General Financial Officer and Treasurer Counsel and Secretary John F. Donahue Eriel Anchondo Executive Vice President Executive Vice President and Chief Operating Officer 1001 17th Street, Denver, CO Inquiries Inquiries should be directed to: Georgia Touma 877.686.9496 or InvestorRelations@fspreit.com (1) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.
Page 20
Summary of Financial Highlights September 30, 2026| Page 4 (in thousands except per share amounts, SF & number of properties) 30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 Income Items: Rental revenue $ 24,934 $ 26,355 $ 26,225 $ 26,040 $ 27,300 Total revenue 24,934 26,355 26,225 26,040 27,300 Net loss (9,103) (16,605) (9,527) (7,323) (8,326) Adjusted EBITDA* 10,285 9,554 9,186 9,680 8,582 FFO* 1,435 1,566 1,151 3,441 2,323 AFFO* (878) 1,393 (1,602) 79 (3,181) Per Share Data: Loss per share $ (0.09) $ (0.16) $ (0.09) $ (0.07) $ (0.08) FFO* $ 0.01 $ 0.02 $ 0.01 $ 0.03 $ 0.02 AFFO* $ (0.01) $ 0.01 $ (0.02) $ 0.00 $ (0.03) Weighted Average Shares (diluted) 104,012 103,810 103,690 103,690 103,690 Closing share price $ 0.38 $ 0.52 $ 0.66 $ 0.95 $ 1.60 Dividend declared $ — $ — $ 0.01 $ 0.01 $ 0.01 Balance Sheet Items: Real estate, net $ 754,279 $ 758,039 $ 788,571 $ 793,722 $ 799,622 Other assets, net 99,175 106,815 93,215 99,162 101,410 Total assets, net 853,454 864,854 881,786 892,884 901,032 Total liabilities, net 282,569 284,866 285,373 285,907 285,695 Stockholders' equity 570,885 579,988 596,413 606,977 615,337 Market Capitalization and Debt: Total Market Capitalization (a) $ 306,376 $ 329,086 $ 343,436 $ 347,423 $ 414,822 Total debt outstanding (excluding unamortized financing costs) $ 266,852 $ 275,000 $ 275,000 $ 248,917 $ 248,917 Debt to Total Market Capitalization 87.1% 83.6% 80.1% 71.6% 60.0% Net Debt to Adjusted EBITDA ratio* 5.6 6.6 6.8 5.6 6.3 Owned Properties Leasing Statistics: Owned properties assets 13 14 14 14 14 Owned properties total SF 4,613,251 4,809,487 4,809,487 4,807,663 4,807,663 Owned properties % leased 66.2% 67.4% 68.4% 68.9% 68.9% (a) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date. * See pages 9 & 10 for reconciliations of net loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 25.
Page 21
Condensed Consolidated Income Statements ($ in thousands, except per share amounts) September 30, 2026| Page 5 F o r t h e N i n e F o r t h e For the Three Months Ended Months Ended For the Three Months Ended Year Ended 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 31-Ma r-25 30-Jun-25 30-Sep-25 31-Dec-25 31-Dec-25 Revenue: Rental $ 26,225 $ 26,355 $ 24,934 $ 77,514 $ 27,107 $ 26,715 $ 27,300 $ 26,040 $ 107,1 62 Total revenue 26,225 26,355 24,934 77,514 27,107 26,715 27,300 26,040 107,162 Expenses: Real estate operating expenses 10,290 10,006 10,600 30,896 10,095 10,701 10,671 10,573 42,040 Real estate taxes and insurance 4,243 4,550 2,133 10,926 5,369 4,191 5,262 3,389 18,211 Depreciation and amortization 10,580 10,432 10,500 31,512 10,824 10,626 10,550 10,609 42,609 General and administrative 2,669 2,401 2,160 7,230 3,484 3,281 3,034 2,628 12,427 Interest 6,812 7,987 7,819 22,618 5,691 6,339 6,348 6,340 24,718 Total expenses 34,594 35,376 33,212 103,182 35,463 35,138 35,865 33,539 140,005 Loss on extinguishment of debt (1,267) — (1,015) (2,282) (2) (3) (7) — (12) Gain (loss) on sale of properties and impairment of assets held for sale, net — (7,691) 3 (7,688) (13,284) 384 — (2) (12,902) Interest income 163 157 244 564 259 248 249 230 986 Loss before taxes (9,473) (16,555) (9,046) (35,074) (21,383) (7,794) (8,323) (7,271) (44,771) Tax expense 54 50 57 161 52 82 3 52 189 Net loss $ (9,527) $ (16,605) $ (9,103) $ (35,235) $ (21,435) $ (7,876) $ (8,326) $ (7,323) $ (44,960) Weighted average number of shares outstanding, basic and diluted 103,690 103,810 104,012 103,839 103,567 103,610 103,690 103,690 103,640 Net loss per share, basic and diluted $ (0.09) $ (0.16) $ (0.09) $ (0.34) $ (0.21) $ (0.08) $ (0.08) $ (0.07) $ (0.43)
Page 22
Condensed Consolidated Balance Sheets (in thousands) September 30, 2026| Page 6 March 31, June 30, September 30, March 31, June 30, September 30, December 31, 2026 2026 2026 2025 2025 2025 2025 Assets: Real estate assets: Land $ 98,882 $ 95,782 $ 95,783 $ 98,882 $ 98,883 $ 98,883 $ 98,883 Buildings and improvements 1,094,771 1,053,670 1,056,178 1,083,971 1,085,048 1,088,981 1,091,728 Fixtures and equipment 11,562 11,220 11,255 11,289 11,399 11,355 11,572 1,205,215 1,160,672 1,163,216 1,194,142 1,195,330 1,199,219 1,202,183 Less accumulated depreciation 416,644 402,633 408,937 383,815 391,918 399,597 408,461 Real estate assets, net 788,571 758,039 754,279 810,327 803,412 799,622 793,722 Acquired real estate leases, net 2,080 1,670 1,263 3,737 3,309 2,899 2,490 Assets held for sale — 17,987 — 5,685 — — — Cash, cash equivalents and restricted cash 23,753 22,459 34,851 31,559 30,518 31,575 30,571 Tenant rent receivables, net 1,345 1,436 1,493 1,462 1,568 1,380 471 Straight-line rent receivable, net 38,670 37,411 36,330 37,724 37,839 38,857 38,744 Prepaid expenses and other assets 4,322 4,445 4,096 3,429 3,583 3,889 4,080 Office computers and furniture, net of accumulated depreciation 124 132 119 62 55 48 136 Deferred leasing commissions, net 22,921 21,275 21,023 22,381 22,959 22,762 22,670 Total assets $ 881,786 $ 864,854 $ 853,454 $ 916,366 $ 903,243 $ 901,032 $ 892,884 Liabilities and Stockholders’ Equity: Liabilities: Initial Term Loan payable, net of unamortized financing costs and OID $ 251,527 $ 253,136 $ 247,298 $ — $ — $ — $ — Term loan payable, net of unamortized financing costs — — — 124,861 125,124 125,114 125,555 Series A & Series B Senior Notes — — — 122,595 122,656 122,449 122,686 Accounts payable and accrued expenses 26,391 24,220 28,097 27,510 22,010 28,785 28,724 Accrued compensation 234 349 247 1,205 1,911 2,635 2,394 Tenant security deposits 6,186 6,207 6,056 6,156 6,289 6,258 6,198 Lease liability 1,002 923 842 612 515 417 316 Acquired unfavorable real estate leases, net 33 31 29 41 38 37 34 Total liabilities 285,373 284,866 282,569 282,980 278,543 285,695 285,907 Commitments and contingencies Stockholders’ Equity: Preferred stock — — — — — — — Common stock 10 10 10 10 10 10 10 Additional paid-in capital 1,335,586 1,335,766 1,335,766 1,335,361 1,335,586 1,335,586 1,335,586 Accumulated distributions in excess of accumulated earnings (739,183) (755,788) (764,891) (701,985) (710,896) (720,259) (728,619) Total stockholders’ equity 596,413 579,988 570,885 633,386 624,700 615,337 606,977 Total liabilities and stockholders’ equity $ 881,786 $ 864,854 $ 853,454 $ 916,366 $ 903,243 $ 901,032 $ 892,884
Page 23
Condensed Consolidated Statements of Cash Flows (in thousands) September 30, 2026| Page 7 Nine Months Ended September 30, 2026 2025 Cash flows from operating activities: Net loss $ (35,235) $ (37,637) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization expense 35,930 34,045 Amortization of above and below market leases (1) — Shares issued as compensation 180 225 Loss on extinguishment of debt 2,282 12 Loss on sale of properties and impairment of assets held for sale, net 7,688 12,900 Changes in operating assets and liabilities: Tenant rent receivables (1,022) (97) Straight-line rents 2,036 (41) Lease acquisition costs (275) (1,096) Prepaid expenses and other assets 501 (498) Accounts payable and accrued expenses (2,621) (4,274) Accrued compensation (2,147) (462) Tenant security deposits (142) 21 Payment of deferred leasing commissions (2,453) (3,176) Net cash provided by (used in) operating activities 4,721 (78) Cash flows from investing activities: Property improvements, fixtures and equipment (9,755) (12,608) Proceeds received from sales of properties 17,993 6,100 Net cash provided by (used in) investing activities 8,238 (6,508) Cash flows from financing activities: Distributions to stockholders (1,037) (3,108) Cost of extinguished debt (1,388) — Proceeds received from Initial Term Loan 258,500 — Repayments of Initial Term Loans (8,148) — Repayments of term loans payable (125,995) (716) Repayments of Series A&B Senior Notes (122,922) (698) Deferred financing costs (7,689) — Net cash used in financing activities (8,679) (4,522) Net increase (decrease) in cash, cash equivalents and restricted cash 4,280 (11,108) Cash, cash equivalents and restricted cash, beginning of period 30,571 42,683 Cash, cash equivalents and restricted cash, end of period $ 34,851 $ 31,575
Page 24
Property Net Operating Income (NOI)* with Same Store Comparison (in thousands) September 30, 2026| Page 8 Rentable S quare Feet Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended % (in thousands) or RSF 31-Mar-26 30-Jun-26 30-Sep-26 30-Sep-26 31-Mar-25 30-Jun-25 30-Sep-25 30-Sep-25 Inc (Dec) Change Region MidWest 758 $ 1,373 $ 1,466 $ 1,228 $ 4,067 $ 1,356 $ 1,758 $ 1,489 $ 4,603 $ (536) (11.6)% South 1,908 4,692 4,479 4,155 13,326 4,331 4,393 4,144 12,868 458 3.6 % West 1,947 4,911 4,966 6,508 16,385 5,389 5,045 5,003 15,437 948 6.1 % Property NOI* from Owned Properties 4,613 10,976 10,911 11,891 33,778 11,076 11,196 10,636 32,908 870 2.6 % Disposition and Acquisition Properties (a) - 475 641 57 1,173 267 363 456 1,086 87 0.2 % Property NOI* 4,613 $ 11,451 $ 11,552 $ 11,948 $ 34,951 $ 11,343 $ 11,559 $ 11,092 $ 33,994 $ 957 2.8 % Same Store $ 10,976 $ 10,911 $ 11,891 $ 33,778 $ 11,076 $ 11,196 $ 10,636 $ 32,908 $ 870 2.6 % Less Nonrecurring Items in NOI* (b) 52 347 860 1,259 55 52 52 159 1,100 (3.3)% Comparative Same Store $ 10,924 $ 10,564 $ 11,031 $ 32,519 $ 11,021 $ 11,144 $ 10,584 $ 32,749 $ (230) (0.7)% (a) We define Disposition and Acquisition Properties as properties that were sold or acquired or consolidated and do not have operating activity for all periods presented. (b) Nonrecurring items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability. * See Appendix for Non-GAAP Financial M easures Definitions beginning on page 25.
Page 25
FFO* & AFFO* Reconciliation (in thousands, except per share amounts) September 30, 2026| Page 9 Nine Months Year Three Months Ended Ended Three Months Ended Ended 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 31-Ma r-25 30-Jun-25 30-Sep-25 31-Dec-25 31-Dec-25 Net loss $ (9,527) $ (16,605) $ (9,103) $ (35,235) $ (21,435) $ (7,876) $ (8,326) $ (7,323) $ (44,960) Loss (gain) on sale of properties and impairment of assets held for sale, net — 7,691 (3) 7,688 13,284 (384) — 2 12,902 Amortization of favorable leases — (1) — (1) — — — — — Depreciation & amortization 10,580 10,432 10,500 31,512 10,824 10,626 10,550 10,609 42,609 NAREIT FFO* 1,053 1,517 1,394 3,964 2,673 2,366 2,224 3,288 10,551 Lease Acquisition costs 98 49 41 188 54 150 99 153 456 Funds From Operations (FFO)* $ 1,151 $ 1,566 $ 1,435 $ 4,152 $ 2,727 $ 2,516 $ 2,323 $ 3,441 $ 11,007 Adjusted Funds From Operations (AFFO)* Funds From Operations (FFO)* $ 1,151 $ 1,566 $ 1,435 $ 4,152 $ 2,727 $ 2,516 $ 2,323 $ 3,441 $ 11,007 Loss on extinguishment of debt 1,267 — 1,015 2,282 2 3 7 — 12 Amortization of deferred financing costs and OID 1,020 1,732 1,666 4,418 685 683 677 677 2,722 Shares issued as compensation — 180 — 180 — 225 — — 225 Straight-line rent 221 730 1,085 2,036 70 (74) (37) 188 147 Tenant improvements (3,386) (1,838) (4,115) (9,339) (2,374) (1,415) (4,469) (2,023) (10,281) Leasing commissions (1,386) (248) (819) (2,453) (545) (1,702) (929) (1,050) (4,226) Non-investment capex (489) (729) (1,145) (2,363) (1,258) (750) (753) (1,154) (3,915) Adjusted Funds From Operations (AFFO)* $ (1,602) $ 1,393 $ (878) $ (1,087) $ (693) $ (514) $ (3,181) $ 79 $ (4,309) Per Share Data: Loss per share $ (0.09) $ (0.16) $ (0.09) $ (0.34) $ (0.21) $ (0.08) $ (0.08) $ (0.07) $ (0.43) FFO* 0.01 0.02 0.01 0.04 0.03 0.02 0.02 0.03 0.11 AFFO* (0.02) 0.01 (0.01) (0.01) (0.01) (0.00) (0.03) 0.00 (0.04) Weighted Average Shares (basic and diluted) 103,690 103,810 104,012 103,839 103,567 103,610 103,690 103,690 103,640 * See Appendix for Non-GAAP Financial Measu res Definitions beginning on page 25.
Page 26
EBITDA* & Adjusted EBITDA* Reconciliation (in thousands, except ratio amounts) September 30, 2026| Page 10 Nine Months Year Three Months Ended Ended Three Months Ended Ended 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 31-Mar-25 30-Jun-25 30-Sep-25 31-Dec-25 31-Dec-25 Net loss $ (9,527) $ (16,605) $ (9,103) $ (35,235) $ (21,435) $ (7,876) $ (8,326) $ (7,323) $ (44,960) Interest expense 6,812 7,987 7,819 22,618 5,691 6,339 6,348 6,340 24,718 Amortization of favorable leases — (1) (1) — — — — — Depreciation and amortization 10,580 10,432 10,500 31,512 10,824 10,626 10,550 10,609 42,609 Income taxes 54 50 57 161 52 82 3 52 189 EBITDA* $ 7,919 $ 1,863 9,273 $ 19,055 $ (4,868) $ 9,171 $ 8,575 $ 9,678 $ 22,556 Loss on extinguishment of debt 1,267 — 1,015 2,282 2 3 7 — 12 Loss (gain) on sale of properties and impairment of assets held for sale, net — 7,691 (3) 7,688 13,284 (384) — 2 12,902 Adjusted EBITDA* $ 9,186 $ 9,554 $ 10,285 $ 29,025 $ 8,418 $ 8,790 $ 8,582 $ 9,680 $ 35,470 Interest expense $ 6,812 $ 7,987 $ 7,819 $ 22,618 $ 5,691 $ 6,339 $ 6,348 $ 6,340 $ 24,718 Scheduled principal payments — — — — — — — — — Interest and scheduled principal payments $ 6,812 $ 7,987 $ 7,819 $ 22,618 $ 5,691 $ 6,339 $ 6,348 $ 6,340 $ 24,718 Interest coverage ratio 1.35 1.20 1.32 1.28 1.48 1.39 1.35 1.53 1.43 Debt service coverage ratio 1.35 1.20 1.32 1.28 1.48 1.39 1.35 1.53 1.43 Debt excluding unamortized financing costs $ 275,000 $ 275,000 $ 266,852 $ 250,179 $ 249,818 $ 248,917 $ 248,917 Cash, cash equivalents and restricted cash 23,753 22,459 34,851 31,559 30,518 31,575 30,571 Net Debt (Debt less Cash, cash equivalents and restricted cash) $ 251,247 $ 252,541 $ 232,001 $ 218,620 $ 219,300 $ 217,342 $ 218,346 Adjusted EBITDA* $ 9,186 $ 9,554 $ 10,285 $ 8,418 $ 8,790 $ 8,582 $ 9,680 Annualized $ 36,744 $ 38,216 $ 41,140 $ 33,672 $ 35,160 $ 34,328 $ 38,720 Net Debt-to-Adjusted EBITDA ratio* 6.8 6.6 5.6 6.5 6.2 6.3 5.6 * See Appendix for Non-GAAP Financial Measures Definitions beginning on page 25.
Page 27
Reconciliation of Net Income (Loss) to Property NOI* (in thousands) September 30, 2026| Page 11 Nine Months Nine Months Three Months Ende d Ende d Three Months Ende d Ende d 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 31-Ma r-25 30-Jun-25 30-Sep-25 30-Sep-25 Net loss $ (9,527) $ (16,605) $ (9,103) $ (35,235) $ (21,435) $ (7,876) $ (8,326) $ (37,637) A d d ( d e d u c t ) : Loss on extinguishment of debt 1,267 — 1,015 2,282 2 3 7 12 Loss (gain) on sale of properties and impairment of assets held for sale, net — 7,691 (3) 7,688 13,284 (384) — 12,900 Management fee income (375) (311) (341) (1,027) (380) (334) (345) (1,059) Depreciation and amortization 10,580 10,432 10,500 31,512 10,824 10,626 10,550 32,000 Amortization of above/below market leases — (1) — (1) — — — — General and administrative 2,669 2,401 2,160 7,230 3,484 3,281 3,034 9,799 Interest expense 6,812 7,987 7,819 22,618 5,691 6,339 6,348 18,378 Interest income (163) (157) (244) (564) (259) (248) (249) (756) Non-property specific items, net 188 115 145 448 132 152 73 357 Property NOI* $ 11,451 $ 11,552 $ 11,948 $ 34,951 $ 11,343 $ 11,559 $ 11,092 $ 33,994 * See Appendix for Non-GAAP Financial M easures Definitions beginning on page 25.
Page 28
Debt Summary (in thousands) September 30, 2026| Page 12 Outstanding Interest Balance at: Rate at 30-Sep-26 30-Sep-26 Initial Term Loans $ 266,852 9.00% Delayed Draw Term Loans — 9.00% $ 266,852 9.00% The table above is a summary of our debt as of September 30, 2026. On February 26, 2026, we entered into a Credit Agreement with Alter Domus (US) LLC, as administrative agent, and an affiliate of TPG Credit. The Credit Agreement provides for a secured credit facility for aggregate principal commitments of up to $320 million, consisting of (i) initial term loans in an aggregate principal amount of $275 million, and (ii) delayed draw term loans available upon the approval of the lenders after the closing date in an aggregate principal amount of up to $45 million. The delayed draw term loans may be used, subject to certain conditions, to fund tenant improvements, leasing commissions, building improvements and other u ses approved by the lenders. We used the proceeds of the initial term loans on the closing date to refinance and retire all outstanding indebtedness under the BMO Term Loan, BofA Term Loan and the Senior Notes (as such terms are defined in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026). On July 8, 2026, we sold a property in Greenwood, Colorado and repaid approximately $8.1 million principal amount of our Initial Term Loan. Additional information on our current and prior debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated in our Quarterly Reports on Form 10-Q.
Page 29
Capital Analysis (in thousands, except per share amounts) September 30, 2026| Page 13 31-Ma r-26 30-Jun-26 30-Sep-26 31-Ma r-25 30-Jun-25 30-Sep-25 31-Dec-25 Market Data: Shares Outstanding 103,690 104,012 104,012 103,567 103,690 103,690 103,690 Closing market price per share $ 0.66 $ 0.52 $ 0.38 $ 1.78 $ 1.64 $ 1.60 $ 0.95 Market capitalization $ 68,436 $ 54,086 $ 39,524 $ 184,349 $ 170,052 $ 165,905 $ 98,506 Total debt outstanding excluding unamortized financing costs 275,000 275,000 266,852 250,179 249,818 248,917 248,917 Total Market Capitalization $ 343,436 $ 329,086 $ 306,376 $ 434,528 $ 419,870 $ 414,822 $ 347,423 D i v i d e n d D a t a : Total dividends declared for the quarter $ 1,037 $ — $ — $ 1,036 $ 1,035 $ 1,037 $ 1,037 Common dividend declared per share $ 0.01 $ — $ — $ 0.01 $ 0.01 $ 0.01 $ 0.01 Declared dividend as a % of Net income (loss) per share (11)% — — (5)% (13)% (12)% (14)% Declared dividend as a % of AFFO* per share (65)% — — (149)% (202)% (33)% 1313% * See page 9 for a reconciliation of net loss to AFFO and the A ppendix for Non-GAAP Financial Measures Definitions beginning on page 25.
Page 30
Owned & Consolidated Portfolio Overview September 30, 2026| Page 14 As of the Quarter Ended 30-Sep-26 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 Total Owned Properties: Number of properties (a) 13 14 14 14 14 Square feet 4,613,251 4,809,487 4,809,487 4,807,663 4,807,663 Leased percentage 66.2% 67.4% 68.4% 68.9% 68.9% (a) Includes property classified as an asset held for sale as of June 30, 2026, which was sold on July 8, 2026.
Page 31
Owned Portfolio Overview September 30, 2026| Page 15 Percent Wtd Occupied GAAP Percent Wtd Occupied GAAP MSA / Property Name City State Square Fe et Leased Percentage (a) Rent (b) MSA / Property Name City State Square Fe et Leased Percentage (a) Rent (b) South Region Midwest Region Dallas-Fort Worth Minneapolis Legacy Tennyson Center Plano TX 209,562 60.9% 60.9% $ 32.54 121 South 8th Street Minneapolis MN 297,744 77.4% 73.8% $ 24.58 Addison Circle Addison TX 289,333 61.8% 63.5% 36.14 801 Marquette Ave Minneapolis MN 129,691 91.8% 91.8% 27.16 Liberty Plaza Addison TX 217,841 64.3% 65.2% 26.30 Plaza Seven Minneapolis MN 330,096 43.0% 46.6% 32.05 Midwest Region Total 757,531 64.9% 65.0% $ 27.53 Houston West Region Park Ten Houston TX 157,609 86.8% 85.5% 27.60 Denver Eldridge Green Houston TX 248,399 100.0% 100.0% 28.10 1999 Broadway Denve r CO 682,639 47.1% 47.9% $ 33.56 Park Ten Phase II Houston TX 156,746 78.3% 76.3% 29.43 1001 17th Street Denver CO 652,423 73.1% 71.8% 32.52 Westchase I & II Houston TX 629,025 65.5% 61.3% 25.99 600 17th Street Denve r CO 612,143 65.0% 66.8% 33.98 West Region Total 1,947,205 61.4% 61.8% $ 33.30 South Region Total 1,908,515 71.6% 70.3% $ 28.90 Total Owned Properties 4,613,251 66.2% 65.9% $ 30.42 (a) Weighted Occupied Percentage for the nine months ended September 30, 2026. (b) Weighted Average GAAP Rent per Occupied Square Foot.
Page 32
Tenants by Industry (Owned Properties by Square Feet) September 30, 2026| Page 16
Page 33
20 Largest Tenants with Annualized Rent and Remaining Term (Owned Properties) September 30, 2026| Page 17 Remaining Aggregate % of Aggregate Tenant Number o f Lease Term Leased % of Total Annualized Leased Name Leases in Months Square Feet Square Feet Rent (a) Annualized Rent 1 CITGO Petroleum Corporation 1 78 248,399 5.4% $ 8,100,291 8.1% 2 EOG Resources, Inc. 1 3 169, 167 3.7% 6,580,596 6.5% 3 US Government 2 51, 52 168,573 3.6% 6,654,754 6.6% 4 Deluxe Corporation 1 130 98,922 2.1% 3,023,120 3.0% 5 Olin Corporation 1 106 81,480 1.8% 2,560,102 2.6% 6 Permian Resources Operating, LLC 1 61 67,856 1.5% 3,110,738 3.1% 7 Hall and Evans LLC 1 5 65,878 1.4% 2,889,950 2.9% 8 Cyxtera Management, Inc. 1 40 61,826 1.3% 2,497,152 2.5% 9 Precision Drilling (US) Corporation 1 20 59,569 1.3% 2,158,781 2.1% 10 Ping Identity Corp. 1 57 54,964 1.2% 1,902,304 1.9% 11 PwC US Group 1 28 54,334 1.2% 1,807,692 1.8% 12 Coresite, LLC 1 110 49,518 1.1% 1,874,256 1.9% 13 Schwegman, Lundberg & Woessner, P.A. 1 16 46,269 1.0% 1,414,005 1.4% 14 Ark-La-Tex Financial Services, LLC. 1 6 41,011 0.9% 1,566,049 1.6% 15 Invenergy, LLC. (b) 1 111 35,088 0.8% 1,134,527 1.1% 16 Chevron U.S.A., Inc. 1 11 35,088 0.8% 1,546,328 1.5% 17 Moss, Luse & Womble, LLC 1 119 34,071 0.7% 1,199,640 1.2% 18 QB Energy Operating, LLC. 1 77 34,063 0.7% 1,506,266 1.5% 19 WDT Acquisition Corporation 1 115 30,913 0.7% 1,150,273 1.1% 20 CarOffer, LC 1 40 30,913 0.6% 1,172,221 1.2% Total 1,467,902 31.8% $ 53,849,045 53.6% Footnotes on next page
Page 34
20 Largest Tenants with Annualized Rent and Remaining Term (Owned Properties) September 30, 2026| Page 18 Footnotes: (a) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at September 30, 2026 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges. (b) Includes 3,146 square feet commencing on January 1, 2027; and 3,929 square feet commencing on January 1, 2028.
Page 35
Leasing Activity (Owned Properties) September 30, 2026| Page 19 Yea r Yea r Nine Months Ended Ended Ended Leasing Activity 30-Sep-26 30-Sep-25 31-Dec-25 31-Dec-24 (in Square Feet - SF) New leasing 63,000 55,000 93,000 171,000 Renewals and expansions 163,000 219,000 320,000 445,000 226,000 274,000 413,000 616,000 Other information per SF (Activity on a year-to-date basis) GAAP Rents on leasing $ 33.57 31.81 $ 32.42 $ 30.06 Weighted average lease term 6.8 Years 5.7 Years 5.7 Years 6.3 Years Increase over average GAAP rents in prior year (a) 11.5% 6.0% 5.7% 8.2% Average free rent 5 Months 4 Months 4 Months 4 Months Tenant Improvements $ 32.10 24.83 $ 23.02 $ 26.06 Leasing Costs $ 10.90 9.98 $ 9.24 $ 9.72 (a) The increase or decrease percentage is calculated by comparing average GAAP rents at properties that had leasing activity in the current year to average GAAP rents at the same properties in the prior year.
Page 36
Lease Expirations by Square Feet (Owned Properties as of September 30, 2026) September 30, 2026| Page 20
Page 37
Lease Expirations with Annualized Rent per Square Foot (SF) (Owned Properties as of September 30, 2026) September 30, 2026| Page 21 Rentable Annualized Percentage Numbe r of Square Ren t of Total Year of Leases Footage Annualized Pe r Square Annualized Lease Expiring Subjec t to Ren t Under Foo t Under Ren t Under Expiration Within the Expiring Expiring Expiring Expiring Cumulative September 30, Yea r (a) Leases Leases (b) Leases Leases Total 2026 10 (c) 63,114 $ 1,764,582 $ 27.96 1.8% 1.8% 2027 33 547,333 20,722,910 37.86 20.6% 22.4% 2028 24 217,436 7,299,593 33.57 7.3% 29.7% 2029 41 384,322 11,723,372 30.50 11.7% 41.4% 2030 21 274,286 9,081,197 33.11 9.0% 50.4% 2031 24 448,002 16,641,737 37.15 16.6% 67.0% 2032 9 80,741 1,742,628 21.58 1.7% 68.7% 2033 13 401,497 13,410,120 33.40 13.3% 82.0% 2034 9 101,344 2,543,046 25.09 2.5% 84.5% 2035 8 176,208 5,824,467 33.05 5.8% 90.3% 2036 and thereafter 24 360,579 (d) 9,773,562 27.11 9.7% 100.0% Leased total 216 3,054,862 $ 100,527,214 $ 32.91 100.0% Owned property vacant SF 1,558,389 Total Portfolio Square Footage 4,613,251 (a) The number of leases approximates the number of tenants. Tenants with lease maturities in different years are included in annual totals for each lease. Tenants may have multiple leases in the same year. (b) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at September 30, 2026 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges. (c) Includes 4 leases that are month-to-month. (d) Includes 53,068 square feet that are non-revenue producing building amenities.
Page 38
Capital Expenditures (Owned and Consolidated Properties) September 30, 2026| Page 22 (in thousands) Nine Months For the Three Months Ended Ended 31-Ma r-26 30-Jun-26 30-Sep-26 30-Sep-26 Tenant improvements $ 3,386 $ 1,838 $ 4,115 $ 9,339 Deferred leasing costs 1,386 248 819 2,453 Non-investment capex 489 729 1,145 2,363 Total Capital Expenditures $ 5,261 $ 2,815 $ 6,079 $ 14,155 For the Three Months Ended Year Ended 31-Ma r-25 30-Jun-25 30-Sep-25 31-Dec-25 31-Dec-25 Tenant improvements $ 2,374 $ 1,415 $ 4,469 $ 2,023 $ 10,281 Deferred leasing costs 545 1,702 929 1,050 4,226 Non-investment capex 1,258 750 753 1,154 3,915 Total Capital Expenditures $ 4,177 $ 3,867 $ 6,151 $ 4,227 $ 18,422 First generation leasing and investment capital expenditures was $0 for the nine months ended September 30, 2026 and the year ended December 31, 2025.
Page 39
Disposition Activity (in thousands except for Square Feet) September 30, 2026| Page 23 Recent Dispositions: Gross Sale Gain (loss) City State Square Feet Date Sold Proceeds on Sale 2026 Greenwood Plaza En glewood CO 196,236 7/8/26 $ 19,356 $ (7,642) 2025 Monument Circle Indianapolis IN 213,760 6/6/25 $ 6,000 $ (12,960) 2024 Collins Crossing Richardson TX 300,887 1/26/24 $ 35,000 $ (2,145) Innsbrook Glenn Allen VA 298,183 7/8/2024 31,000 (13,247) Pershing Park Atlanta GA 160,145 10/23/24 34,000 (27,511) 2023 Northwest Point Elk Grove IL 177,095 3/10/23 $ 29,125 $ 8,391 Forest Park Charlotte NC 64,198 8/9/23 9,200 (844) Liberty Plaza (a) Addison TX n/a 8/23/23 157 53 One Legacy Circle Plano TX 214,110 10/26/23 48,000 10,558 Blue Lagoon Drive Miami FL 213,182 12/6/23 68,000 (18,872) 2022 380 Interlocken Broomfiel d CO 240,359 8/31/22 $ 42,000 $ 5,665 390 Interlocken Broomfield CO 241,512 8/31/22 60,500 18,412 909 Davis Evanston IL 195,098 12/28/22 27,750 3,359 2021 One Ravinia Atlanta GA 386,602 5/27/21 $ 74,879 $ 29,075 Two Ravinia Atlanta GA 411,047 5/27/21 71,771 29 One Overton Park Atlanta GA 387,267 5/27/21 72,850 (6,336) Loudoun Tech Center Dulles VA 136,658 6/29/21 17,250 (2,148) River Crossing Indianapolis IN 205,729 8/31/21 35,050 (1,734) Timberlake Chesterfiel d MO 234,496 9/23/21 44,667 6,184 Timberlake East Chesterfield MO 117,036 9/23/21 22,333 4,111 999 Peachtree Atlanta GA 62 1,946 10/22/21 223,900 86,766 Meadow Point Chantilly VA 138,537 11/16/21 25,500 1,878 Stonecroft Chantill y VA 111,469 11/16/21 14,500 (4,768) (a) Conveyance of approximately 7,826 square feet of land as part of a road revitalization project.
Page 40
Net Asset Value Components September 30, 2026| Page 24 (in thousands except per share data) As of 30-Sep-26 Assets: Other information: Total Market Capitalization Values Straight-line rent receivable $ 36,330 Leased SF to be FFO producing Shares outstanding 104,012 Assets held for sale — during 2026-2028 (in 000's) 40 Closing price $ 0.38 Cash, cash equivalents and restricted cash 34,851 Market capitalization $ 39,524 Tenant rent receivables 1,493 Straigh t-line rental revenue current quarter $ (1,085) Debt 266,852 Prepaid expenses 3,279 Total Market Capitalization $ 306,376 Office computers and furniture 119 Other assets: Deferred financing costs and OID, ne t 19,554 3 Months Other assets - Right-to-Use Asset 817 Ended $ 96,443 NOI Components 30-Sep-26 Same Store NOI (1) $ 11,891 Acquisitions (1) (2) — Liabilities: Property NOI (1) 11,891 Debt (excluding contra for unamortized financing costs and OID) $ 266,852 Footnotes to the components Full quarter adjustment (3) — Accounts payable & accrued expenses 28,344 (1) See pages 11 & 30 for definitions and reconciliations. Stabilized portfolio $ 11,891 Tenant security deposits 6,056 Other liabilities: lease liability & acquired unfavorable lease liability 871 (2) Includes NOI from acquisitions not in Same Store. $ 302,123 Financial Statement Reconciliation: (3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary. Rental Revenue $ 24,934 Rental operating expenses (10,600) (4) HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI. Real estate taxes and insurance (2,133) NOI from dispositions & acquisition properties (57) (5) Management & other fees are eliminated in consolidation but included in Property NOI. Taxes (4) (57) Management & other fees (5) (196) Property NOI (1) $ 11,891
Page 41
Appendix: Non-GAAP Financial Measure Definitions September 30, 2026| Page 25 Definition of Funds From Operations (“FFO”) The Company evaluates performance based on Fu nds From Operations, which we refer to as FFO, as management believes that FFO rep resents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss ( computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffec tiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market le ase intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated RE ITs, and after adjustments to exclude equity in income or lo sses from, and, to include the proportionate share of FFO from, non-consolidated REITs. FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Com pany’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies and the National Association of Real Es tate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO definition as of May 17, 2016 in the table on page 9 and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do. We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.
Page 42
Appendix: Non-GAAP Financial Measure Definitions September 30, 2026| Page 26 Definition of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA EBITDA is defined as net income or loss plus interest expense, income tax expense and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA excluding hedge ineffectiveness, gains or losses on extinguishment of debt, gains and losses on sales of properties or shares of equity investments or provisions for losses on assets held for sale or equity investments. EBITDA and Adjusted EBITDA are not intended to represent cash flow for the period, are not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and are not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA and Adjusted EBITDA are presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA or Adjusted EBITDA the same way, this presentation may not be comparable to similarly titled measures of other companies. The Company be lieves that net income or loss is the fi nancial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA and Adjusted EBITDA. Definition of Property Net Operating Income (Property NOI) The Company provides property performance based on Net Operating Income, which we refer to as NOI. Management believes that inv estors are interested in this information. NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus general and administrative expenses, depreciation a nd amortization, including amortization of acquired above and below market lease int angibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REIT s, interest income, management fee income, hedge ineffectiveness, gains or losses on extinguishment of debt, gains or losses on the sale of assets and excludes non-pr operty specific income and expenses. The information present ed includes footnotes and the data is shown by region with properties owned in the periods presented, wh ich we call Same Store. The comparative Same Store results in clude properties held for all periods presented. We also exclude properties that have been acquired, consolidated or placed in service, but that do not have operati ng activity for all periods presented, dispositions and significant nonrecurring income such as bankr uptcy settlements and lease termination fees. NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.
Page 43
Appendix: Non-GAAP Financial Measure Definitions September 30, 2026| Page 27 Definition of Adjusted Funds From Operations (AFFO) The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and including distributions recei ved, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5) plus the amor tization of deferred financing costs and original issue discounts, (6) plus the value of shares issued as compensation and (7) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions. We exclude development/redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property. We also exclude first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned for at acquisition. AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.
Page 44
September 30, 2026| Page 28 Investor Relations Contact Georgia Touma ~ 877.686.9496 InvestorRelations@fspreit.com Franklin Street Properties Corp. Supplemental Operating & Financial Data 401 Edgewater Place ~Wakefield, MA 01880 781.557.1300 ~ www.fspreit.com