FSP · 10-Q · 2026Q1 · Full report

Liquidity and Cash Position

FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 86 · Surprise 84

Cash and cash equivalents were $23.8 million as of March 31, 2026, down from $30.6 million at December 31, 2025, a decrease of $6.8 million driven by $5.1 million used in operating activities and $2.7 million used in investing activities during Q1 2026. On February 26, 2026 the Company closed a $320 million secured credit facility with an affiliate of TPG Credit and used borrowings thereunder to repay approximately $249 million of outstanding indebtedness. The Credit Agreement includes up to $45 million of delayed draw term loans to fund tenant improvements, leasing commissions and building improvements and has an initial stated maturity of February 26, 2029 (with a one-year extension option). The Company expects to fund operations and capital needs from continuing real estate operations, use of the Delayed Draw Term Loans and proceeds from property dispositions, and states it believes it has adequate funds to cover unusual expenses and capital improvements in addition to normal operating expenses.

Key facts

• Cash provided by financing activities for the three months ended March 31, 2026 was $1.0 million, primarily attributable to funding from the Term Loan of $258.5 million less distributions to stockholders of $1.0 million, costs of extinguishment of debt of $1.0 million, repayment of $249.0 million of refinanced debt and deferred financing costs of $6.5 million.
• Cash and cash equivalents were $23.8 million as of March 31, 2026 and $30.6 million as of December 31, 2025, a decrease of $6.8 million.
• The $6.8 million decrease in cash and cash equivalents from December 31, 2025 to March 31, 2026 is attributable to $5.1 million used in operating activities, $2.7 million used in investing activities, and $1.0 million provided by financing activities.
• Cash used in operating activities for the three months ended March 31, 2026 was $5.1 million, primarily attributable to net loss of $9.5 million plus $13.1 million of non-cash expenses, less decreases and increases in working capital accounts described in the MD&A.
• Cash used in investing activities for the three months ended March 31, 2026 was $2.7 million, primarily attributable to purchases of other real estate assets and office equipment investments.
• The Company anticipates generating funds from continuing real estate operations, use of the Delayed Draw Term Loans and proceeds from property dispositions to fund future growth.
• Interest income earned on invested disposition proceeds was $0.2 million for the three months ended March 31, 2026 and $0.3 million for the three months ended March 31, 2025.
• The Company stated that it believes it has adequate funds to cover unusual expenses and capital improvements, in addition to normal operating expenses, as of the report date.

Impact estimates