FRANKLIN STREET PROPERTIES CORP /MA/ 10-Q

Item 3.  Quantitative and Qualitative Disclosures About Market Risk ​ Market Rate Risk ​ We are exposed to changes in interest rates primarily from our floating rate borrowing arrangements. As of June 30, 2025, if market rates on our outstanding borrowings under the BofA Term Loan, subject to a floating rate increased by 10% at maturity, or approximately 90 basis points, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.5 million. The interest rate on the BofA Term Loan as of June 30, 2025, was SOFR plus an adjustment of 0.11448% plus 400 basis points, or 9.00% per annum. There was $55.5 million outstanding on the BofA Term Loan as of June 30, 2025. We do not believe that the interest rate risk on the BofA Term Loan is material as of June 30, 2025. ​ As of June 30, 2025, if market rates on our outstanding borrowings under the BMO Term Loan subject to a floating rate increased by 10% at maturity, or approximately 90 basis points over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.6 million. The interest rate on the BMO Term Loan as of June 30, 2025 was SOFR plus an adjustment of 0.11448% plus 400 basis points, or 9.00% per annum. We do not believe that the interest rate risk on the BMO Term Loan is material as of June 30, 2025. ​ The following table presents, as of June 30, 2025, our contractual variable rate borrowings under our BofA Term Loan, which matures on April 1, 2026, and under our BMO Term Loan Tranche B, which matures on April 1, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment due by period ​ ​ (in thousands) ​ Total 2024 2025 ​ 2026 2027 2028 Thereafter BofA Term Loan ​ $ 55,515 ​ $ — ​ $ — ​ $ 55,515 ​ $ — ​ $ — ​ $ — ​ BMO Term Loan Tranche B ​ ​ 70,936 ​ ​ — ​ ​ — ​ ​ 70,936 ​ ​ — ​ ​ — ​ ​ — ​ Total ​ $ 126,451 ​ $ — ​ $ — ​ $ 126,451 ​ $ — ​ $ — ​ $ — ​ ​ ​ 40 Table of Contents