FSP · 10-Q · 2026Q1 · Full report
Operating Expense Trends
FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 37 · Surprise 32
Total expenses decreased $0.9 million to $34.6 million for Q1 2026 versus Q1 2025. The decline was driven by approximately $1.0 million lower real estate operating expenses and taxes (primarily due to the 2025 property disposition), $0.2 million lower depreciation and amortization, and $0.8 million lower general and administrative costs primarily from reduced personnel costs. These decreases were partially offset by an approximate $1.1 million increase in interest expense attributable to a higher principal amount of debt outstanding in Q1 2026. The expense mix shift reflects dispositions, personnel reductions, and higher financing costs following the February 2026 refinancing.
Key facts
- General and administrative expenses were $2,669 thousand for the three months ended March 31, 2026 compared to $3,484 thousand for the three months ended March 31, 2025, a decrease of $815 thousand primarily attributable to lower personnel costs.
- Real estate taxes and insurance were $4,243 thousand for the three months ended March 31, 2026 compared to $5,369 thousand for the three months ended March 31, 2025, a decrease of $1,126 thousand.
- Real estate operating expenses were $10,290 thousand for the three months ended March 31, 2026 compared to $10,095 thousand for the three months ended March 31, 2025.
- Depreciation and amortization expense was $10,580 thousand for the three months ended March 31, 2026 compared to $10,824 thousand for the three months ended March 31, 2025, a decrease of $244 thousand.
- Rent concessions for leases executed during the three months ended March 31, 2026 averaged approximately five months of free rent.
- Average tenant improvements for leases executed during the three months ended March 31, 2026 were $33.55 per square foot.
- Monument Circle had approximately $76,000 of rental income and $293,000 of operating expenses for the three months ended March 31, 2025.
- Average lease commissions for leases executed during the three months ended March 31, 2026 were $11.53 per square foot.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +0.9% | Depreciation and amortization expense was $10,580 thousand for the three months ended March 31, 2026 compared to $10,824 thousand for the… |
| operating_income | negative | realized | -0.7% | Real estate operating expenses were $10,290 thousand for the three months ended March 31, 2026 compared to $10,095 thousand for the three… |