10 Worst Performing REITs in 2024

4. Franklin Street Properties Corp. (NYSE:FSP)

Year-to-Date Decline: 34.75% 

Number of Hedge Fund Holders: 12

Franklin Street Properties Corp. (NYSE:FSP) is a real estate investment trust that focuses on infill and central business district office properties in the US Sunbelt and Mountain West. The company’s real estate operations comprise property acquisitions and dispositions, short-term financing, leasing, development, and asset management. FSP owned a portfolio of real estate comprising 16 owned properties and one consolidated sponsored REIT, as of June 30. The firm believes in the potential of the Sunbelt and Mountain West regions to have long-term macroeconomic drivers likely to increase occupancies and rents.

During Q2, Franklin Street Properties Corp. (NYSE:FSP) leased a total of approximately 75,000 square feet of office space within its approximately 5.3 million square foot directly owned property portfolio. In July, the firm sold its last property in the Commonwealth of Virginia. GAAP net loss for the quarter was $21.0 million while Funds From Operations (FFO) was $3.7 million.

Commenting on the stock performance as Q2 closed, the Chairman and Chief Executive Officer, George J. Carter, reiterated:

“As the third quarter of 2024 begins, we continue to believe that the current price of our common stock does not accurately reflect the value of our underlying real estate assets. We will seek to increase shareholder value by continuing to (1) pursue the sale of select properties when we believe that short to intermediate-term valuation potential has been reached and (2) strive to increase occupancy through leasing of vacant space. We intend to use proceeds from property dispositions primarily for debt reductions”

Based on a year-to-date decline of 34.75% in the stock price, Franklin Street Properties Corp. (NYSE:FSP) ranks on our list of the worst performing real estate investment trusts in 2024.