FRANKLIN STREET PROPERTIES CORP /MA/ Segments Disclosure
11. Segment Information
The Company is a REIT focused on real estate investments primarily in the office market and currently operates in one segment: real estate operations. Each of the Company’s properties qualify as an operating segment but are aggregated together because they exhibit similar economic characteristics and operating similarities.
The chief operating decision maker (CODM) of the Company is the Company’s Chief Executive Officer. The CODM measures the performance and profit or loss for the Company’s reportable segment using a measure referred to as Segment Net Operating Income (Segment NOI). The CODM utilizes Segment NOI when considering the deployment of the Company’s capital resources on a property-by-property basis. The significant expense categories which the Company’s CODM examines when measuring the segment’s performance include real estate operating expenses and real estate taxes and insurance. Asset information by segment is not reported because the Company does not use this measure to assess performance. The total assets of the Company’s reportable segment can be found on the Company’s consolidated balance sheets.
Segment NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus selling, general and administrative expenses, depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REITs, interest income, hedge ineffectiveness, gains or losses on the sale of assets and excludes income taxes. Segment NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. Segment 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 Segment NOI are shown in the following table:
Segment Net Operating Income (NOI)
Year Ended | Year Ended | Year Ended | |||||||
(in thousands) |
| December 31, 2025 |
| December 31, 2024 | December 31, 2023 | ||||
Total consolidated revenues | $ | 107,162 | $ | 120,112 | $ | 145,707 | |||
Reconciling items: | |||||||||
Amortization of above/below market leases | — | (17) | (44) | ||||||
Less: | |||||||||
Real estate operating expenses | 42,040 | 45,043 | 50,732 | ||||||
Real estate taxes and insurance | 18,211 | 22,716 | 27,200 | ||||||
Segment NOI | $ | 46,911 |
| $ | 52,336 | $ | 67,731 | ||
Year Ended | Year Ended | Year Ended | |||||||
Reconciliation to Net loss | December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||
Net loss |
| $ | (44,960) |
| $ | (52,723) | (48,110) | ||
Add (deduct): | |||||||||
Loss on extinguishment of debt | 12 | 1,042 | 106 | ||||||
Gain on consolidation of Sponsored REIT |
| — |
| — | (394) | ||||
(Gain) loss on sale of properties and impairment of assets held for sale, net |
| 12,902 |
| 20,826 | 23,384 | ||||
Depreciation and amortization |
| 42,609 |
| 44,774 | 54,738 | ||||
Amortization of above/below market leases |
| — |
| (17) | (44) | ||||
General and administrative |
| 12,427 |
| 13,884 | 14,021 | ||||
Interest expense |
| 24,718 |
| 26,424 | 24,318 | ||||
Interest income |
| (986) |
| (2,090) | (567) | ||||
Tax expense | 189 |
| 216 | 279 | |||||
Segment NOI |
| $ | 46,911 |
| $ | 52,336 | $ | 67,731 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.