FSP is a suburban office REIT holding 14 properties totaling approximately 4.8 million rentable square feet across Minneapolis, Houston, Dallas, and Denver. As of March 31, 2026, reported stockholders' equity stands at $596 million against total assets of $882 million and total liabilities of $285 million. Under a liquidation lens, that reported equity figure is largely illusory: the dominant asset is real estate carried at $1.21 billion gross ($789 million net after $417 million accumulated depreciation), and the portfolio's actual liquidation value is far below book. Portfolio-wide occupancy is 66.5% as of the filing date, with several properties severely distressed — 1999 Broadway Denver at 48.6%, Plaza Seven Minneapolis at 48.9%, Addison Circle at 64.3%. The 2025 Monument Circle (Indianapolis) disposition for $6 million against carrying value that required a $13.3 million impairment charge illustrates how far sub-market office assets can clear relative to GAAP book. Applying a conservative 50-60% recovery haircut to the $789 million net real estate book yields liquidation recoverable value of roughly $395-$473 million on the asset side before transaction costs and wind-down expenses. On the liability side, the primary obligation is a new $258.5 million secured term loan with TPG Credit (Silver Oak Capital LLC) closed February 26, 2026, maturing February 2029 with one-year extension option; this replaced $70.7 million BMO Term Loan, $55.3 million BofA Term Loan, and $122.9 million Senior Notes — all of which were at 9% per annum and had April 1, 2026 maturity. The refinancing averted an immediate maturity wall but introduced $16.1 million of unamortized debt discount and $7.4 million of unamortized deferred financing costs, both zeroed at liquidation. Total debt face value carried as SecuredDebt is $251.5 million (net of discount). Remaining liabilities include $26.4 million accounts payable and accrued liabilities, $6.2 million security deposits, and $1.0 million operating lease liability. Applying liabilities at face against the midpoint real estate recovery (~$434 million) plus cash ($24 million) and other nominal assets suggests residual equity recovery in the range of $150-$220 million against $596 million GAAP equity — a liquidation recovery of roughly 25-37 cents on GAAP book equity. The $38.7 million deferred rent receivable (straight-line rents) receives zero recovery in liquidation. Deferred leasing costs of $22.9 million net and finite-lived intangibles of $2.1 million also recover nothing. Cash burn from operations was $5.2 million in Q1 2026 against ending cash of $23.8 million, down from $30.6 million at year-end 2025. The $45 million Delayed Draw Term Loan remains undrawn and is available for leasing-related capital, subject to lender approval. Filing discusses the $13.3 million Monument Circle impairment in MD&A but the impairment occurred in Q1 2025; no equivalent impairment is recorded in Q1 2026. The TPG Credit facility terms (interest rate, covenants) are discussed in MD&A but the interest rate is not separately tagged in XBRL.
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