FSP · 10-Q · 2026Q1 · Full report
Interest Expense Increase
FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 59 · Surprise 48
Interest expense increased by approximately $1.1 million, to $6.812 million for the three months ended March 31, 2026 versus $5.691 million in the prior-year period. Management states the increase was primarily due to a higher principal amount of debt outstanding during Q1 2026 compared to Q1 2025. Prior facilities had interest rate step-ups to 9.00% effective April 1, 2025 for the BMO, BofA and Senior Notes, and the Company refinanced near-term maturities with the TPG facility on February 26, 2026. The higher interest expense is therefore a function of both higher average principal outstanding during the period and legacy higher contracted rates prior to refinancing.
Key facts
- Interest expense was $6,812 thousand for the three months ended March 31, 2026 compared to $5,691 thousand for the three months ended March 31, 2025, an increase of $1,121 thousand.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -4.1% | Interest expense was $6,812 thousand for the three months ended March 31, 2026 compared to $5,691 thousand for the three months ended… |