Franklin Street Properties (FSP) 10-Q1 Nov 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Oct. 27, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	001-32470
Entity Registrant Name	Franklin Street Properties Corp.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	04-3578653
Entity Address, Address Line One	401 Edgewater Place, Suite 200
Entity Address, City or Town	Wakefield
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01880
City Area Code	781
Local Phone Number	557-1300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	FSP
Security Exchange Name	NYSEAMER
Entity Common Stock, Shares Outstanding		103,235,914
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001031316
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real estate assets:
Land	$ 131,556	$ 146,844
Buildings and improvements	1,397,303	1,457,209
Fixtures and equipment	10,656	11,404
Total real estate assets, gross	1,539,515	1,615,457
Less accumulated depreciation	420,532	424,487
Real estate assets, net	1,118,983	1,190,970
Acquired real estate leases, less accumulated amortization of $19,535 and $40,423, respectively	11,177	14,934
Cash, cash equivalents and restricted cash	8,717	40,751
Tenant rent receivables	1,309	1,954
Straight-line rent receivable	50,885	49,024
Prepaid expenses and other assets	6,961	4,031
Related party mortgage loan receivable less allowance for credit loss of $1,857 and $0, respectively	22,143	24,000
Other assets: derivative asset	4,266
Office computers and furniture, net of accumulated depreciation of $1,099 and $1,198, respectively	170	198
Deferred leasing commissions, net of accumulated amortization of $20,826 and $21,099, respectively	37,459	38,311
Total assets	1,262,070	1,364,173
Liabilities:
Bank note payable	65,000
Term loans payable, less unamortized financing costs of $308 and $714, respectively	164,692	274,286
Series A & Series B Senior Notes, less unamortized financing costs of $535 and $658, respectively	199,465	199,342
Accounts payable and accrued expenses	50,371	89,493
Accrued compensation	3,159	4,704
Tenant security deposits	5,726	6,219
Lease liability	862	1,159
Other liabilities: derivative liabilities		5,239
Acquired unfavorable real estate leases, less accumulated amortization of $536 and $2,285, respectively	234	528
Total liabilities	489,509	580,970
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding
Common stock, $.0001 par value, 180,000,000 shares authorized, 103,235,914 and 103,998,520 shares issued and outstanding, respectively	10	10
Additional paid-in capital	1,334,776	1,339,226
Accumulated other comprehensive income (loss)	4,266	(5,239)
Distributions in excess of accumulated earnings	(566,491)	(550,794)
Total stockholders' equity	772,561	783,203
Total liabilities and stockholders' equity	$ 1,262,070	$ 1,364,173

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Consolidated Balance Sheets
Acquired real estate leases, accumulated amortization	$ 19,535	$ 40,423
Allowance on related parties loans and leases receivable	1,857	0
Tenant rent receivables, allowance for doubtful accounts	1,857	0
Office computers and furniture, accumulated depreciation	1,099	1,198
Deferred leasing commissions, accumulated amortization	20,826	21,099
Term loan payable, unamortized financing costs	308	714
Series A & Series B Senior notes, unamortized financing costs	535	658
Acquired unfavorable real estate leases, accumulated amortization	$ 536	$ 2,285
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	180,000,000	180,000,000
Common stock, shares issued (in shares)	103,235,914	103,998,520
Common stock, shares outstanding (in shares)	103,235,914	103,998,520

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Total revenues	$ 40,836	$ 50,802	$ 124,404	$ 165,986
Expenses:
Real estate operating expenses	13,369	14,373	38,547	45,664
Real estate taxes and insurance	8,951	10,200	26,713	34,461
Depreciation and amortization	15,148	18,862	49,004	62,379
General and administrative	3,232	3,749	10,997	11,857
Interest	6,110	7,928	17,140	26,582
Total expenses	46,810	55,112	142,401	180,943
Loss on extinguishment of debt	(78)	(236)	(78)	(403)
Impairment and loan loss reserve	(717)		(1,857)
Gain on sale of properties, net	24,077	8,632	24,077	29,258
Income (loss) before taxes and equity in income of non-consolidated REIT	17,308	4,086	4,145	13,898
Tax expense	62	51	167	174
Equity in income of non-consolidated REITs		421		421
Net income	$ 17,246	$ 4,456	$ 3,978	$ 14,145
Weighted average number of shares outstanding, basic	103,236	106,905	103,372	107,196
Weighted average number of shares outstanding, diluted	103,236	106,905	103,372	107,196
Net income per share, basic	$ 0.17	$ 0.04	$ 0.04	$ 0.13
Net income per share, diluted	$ 0.17	$ 0.04	$ 0.04	$ 0.13
Rental
Revenues:
Rental	$ 40,366	$ 50,326	$ 122,994	$ 164,671
Related party revenue: Management fees and interest income from loans
Revenues:
Revenue	466	419	1,393	1,246
Related party revenue: Other
Revenues:
Revenue	$ 4	$ 57	$ 17	$ 69

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 17,246	$ 4,456	$ 3,978	$ 14,145
Other comprehensive income:
Unrealized gain (loss) on derivative financial instruments	2,315	1,842	9,504	9,728
Total other comprehensive income	2,315	1,842	9,504	9,728
Comprehensive income	$ 19,561	$ 6,298	$ 13,482	$ 23,873

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive income (loss)	Distributions in excess of accumulated earnings	Total
Balance at Dec. 31, 2020	$ 11	$ 1,357,131	$ (17,311)	$ (571,740)	$ 768,091
Balance (in shares) at Dec. 31, 2020	107,328,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			3,613	(6,460)	(2,847)
Distributions				(9,660)	(9,660)
Balance at Mar. 31, 2021	$ 11	1,357,131	(13,698)	(587,860)	755,584
Balance (in shares) at Mar. 31, 2021	107,328,000
Balance at Dec. 31, 2020	$ 11	1,357,131	(17,311)	(571,740)	768,091
Balance (in shares) at Dec. 31, 2020	107,328,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)					23,873
Balance at Sep. 30, 2021	$ 11	1,349,225	(7,583)	(586,580)	755,073
Balance (in shares) at Sep. 30, 2021	105,633,000
Balance at Dec. 31, 2020	$ 11	1,357,131	(17,311)	(571,740)	768,091
Balance (in shares) at Dec. 31, 2020	107,328,000
Increase (Decrease) in Stockholders' Equity
Repurchased shares					$ (18,244)
Repurchased shares (in shares)					(3,396,243)
Balance at Dec. 31, 2021	$ 10	1,339,226	(5,239)	(550,794)	$ 783,203
Balance (in shares) at Dec. 31, 2021	103,999,000
Balance at Mar. 31, 2021	$ 11	1,357,131	(13,698)	(587,860)	755,584
Balance (in shares) at Mar. 31, 2021	107,328,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			4,273	16,149	20,422
Equity-based compensation		338			338
Equity-based compensation (in shares)	67,000
Distributions				(9,659)	(9,659)
Balance at Jun. 30, 2021	$ 11	1,357,469	(9,425)	(581,370)	766,685
Balance (in shares) at Jun. 30, 2021	107,395,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			1,842	4,456	6,298
Repurchased shares		(8,244)			(8,244)
Repurchased shares (in shares)	(1,762,000)
Distributions				(9,666)	(9,666)
Balance at Sep. 30, 2021	$ 11	1,349,225	(7,583)	(586,580)	755,073
Balance (in shares) at Sep. 30, 2021	105,633,000
Balance at Jun. 30, 2021	$ 11	1,357,469	(9,425)	(581,370)	766,685
Balance (in shares) at Jun. 30, 2021	107,395,000
Increase (Decrease) in Stockholders' Equity
Repurchased shares					$ (18,200)
Repurchased shares (in shares)					(3,396,243)
Balance at Dec. 31, 2021	$ 10	1,339,226	(5,239)	(550,794)	$ 783,203
Balance (in shares) at Dec. 31, 2021	103,999,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			5,044	(4,158)	886
Repurchased shares		(4,843)			$ (4,843)
Repurchased shares (in shares)	(847,000)				(846,739)
Distributions				(9,360)	$ (9,360)
Balance at Mar. 31, 2022	$ 10	1,334,383	(195)	(564,312)	769,886
Balance (in shares) at Mar. 31, 2022	103,152,000
Balance at Dec. 31, 2021	$ 10	1,339,226	(5,239)	(550,794)	783,203
Balance (in shares) at Dec. 31, 2021	103,999,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)					13,482
Repurchased shares					$ (4,843)
Repurchased shares (in shares)					(846,739)
Balance at Sep. 30, 2022	$ 10	1,334,776	4,266	(566,491)	$ 772,561
Balance (in shares) at Sep. 30, 2022	103,236,000
Balance at Mar. 31, 2022	$ 10	1,334,383	(195)	(564,312)	769,886
Balance (in shares) at Mar. 31, 2022	103,152,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			2,146	(9,110)	(6,964)
Equity-based compensation		393			393
Equity-based compensation (in shares)	84,000
Distributions				(9,283)	(9,283)
Balance at Jun. 30, 2022	$ 10	1,334,776	1,951	(582,705)	754,032
Balance (in shares) at Jun. 30, 2022	103,236,000
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)			2,315	17,246	19,561
Distributions				(1,032)	(1,032)
Balance at Sep. 30, 2022	$ 10	$ 1,334,776	$ 4,266	$ (566,491)	$ 772,561
Balance (in shares) at Sep. 30, 2022	103,236,000

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Consolidated Statements of Stockholders' Equity
Distributions common stock (in dollars per share)	$ 0.01	$ 0.09	$ 0.09	$ 0.09	$ 0.09	$ 0.09

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 3,978	$ 14,145
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	50,472	64,390
Amortization of above and below market leases	(88)	(38)
Shares issued as compensation	394	338
Loss on extinguishment of debt	78	403
Impairment and loan loss reserve	1,857
Gain on sale of properties, net	(24,077)	(29,258)
Equity in income of non-consolidated REITs		(421)
Distributions from non-consolidated REITs		421
Changes in operating assets and liabilities:
Tenant rent receivables	645	4,975
Straight-line rents	(4,064)	(3,103)
Lease acquisition costs	(2,659)	(1,666)
Prepaid expenses and other assets	(1,670)	(1,035)
Accounts payable and accrued expenses	(6,388)	(8,389)
Accrued compensation	(1,545)	(436)
Tenant security deposits	(493)	(2,508)
Payment of deferred leasing commissions	(7,086)	(10,857)
Net cash provided by operating activities	9,354	26,961
Cash flows from investing activities:
Property improvements, fixtures and equipment	(38,035)	(55,008)
Proceeds received from sales of properties	102,007	319,357
Net cash provided by investing activities	63,972	264,349
Cash flows from financing activities:
Distributions to stockholders	(52,956)	(28,985)
Stock repurchases	(4,843)	(8,244)
Borrowings under bank note payable	80,000	76,500
Repayments of bank note payable	(15,000)	(80,000)
Repayment of term loan payable	(110,000)	(245,000)
Deferred financing costs	(2,561)
Net cash used in financing activities	(105,360)	(285,729)
Net increase (decrease) in cash, cash equivalents and restricted cash	(32,034)	5,581
Cash, cash equivalents and restricted cash, beginning of year	40,751	4,150
Cash, cash equivalents and restricted cash, end of period	8,717	9,731
Cash paid for:
Interest	13,692	22,995
Taxes	664	417
Non-cash investing and financing activities:
Accrued costs for purchases of real estate assets	$ 7,466	$ 5,108

Organization, Properties, Basis

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards	9 Months Ended
	Sep. 30, 2022
Organization
Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards	1. Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards Organization Franklin Street Properties Corp. (“FSP Corp.” or the “Company”) holds, directly and indirectly, 100% of the interest in FSP Investments LLC, FSP Property Management LLC FSP Holdings LLC FSP Protective TRS Corp . FSP Property Management LLC provides asset management and property management services. The Company also has a non-controlling common stock interest in one corporation organized to operate as a real estate investment trust (the “Sponsored REIT”). As of September 30, 2022, the Company owned and operated a portfolio of real estate consisting of 22 operating properties, one managed Sponsored REIT and held one promissory note secured by a mortgage on real estate owned by the Sponsored REIT. From time-to-time, the Company may acquire real estate or make additional secured loans. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, for geographic, property specific reasons or for other general corporate purposes. Properties The following table summarizes the Company’s number of operating properties, which we also refer to as our owned properties and rentable square feet of real estate. As of September 30, 2022 2021 Operating Properties: Number of properties 22 26 Rentable square feet 6,433,954 7,671,275 Basis of Presentation The unaudited consolidated financial statements of the Company include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission. The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements for these interim periods have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other period. Financial Instruments As disclosed in Note 4, the Company’s derivatives are recorded at fair value using Level 2 inputs. The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates or at rates that are at market for similar investments. Cash, Cash Equ ivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. September 30, September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 6,367 $ 5,053 Restricted cash 2,350 4,678 Total cash, cash equivalents and restricted cash $ 8,717 $ 9,731 Restricted cash Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of September 30, 2022, our relationship with FSP Monument Circle LLC was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to the outstanding Sponsored REIT Loan (as defined in Note 2) net of the allowance for credit loss, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately $24.0 million and $24.5 million at September 30, 2022 and December 31, 2021, respectively. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and are approximately $1.8 million and $0.5 million at September 30, 2022 and December 31, 2021, respectively. The relationships and investments related to the entity in which we have a variable interest are summarized in Note 2. Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company is currently assessing the potential impact that the adoption of ASU 2020-04 may have on its consolidated financial statements.

Related Party Transactions and

Related Party Transactions and Investments in Non-Consolidated Entities	9 Months Ended
	Sep. 30, 2022
Related Party Transactions and Investments in Non-Consolidated Entities
Related Party Transactions and Investments in Non-Consolidated Entities	2. Related Party Transactions and Investments in Non-Consolidated Entities Investment in Sponsored REITs: At September 30, 2022 and December 31, 2021, the Company held a non-controlling common stock interest in one and two Sponsored REITs, respectively, in which the Company no longer shares in economic benefit or risk. Management fees and interest income from loans: Asset management fees range from 1% to 5% of collected rents and the applicable contracts are cancellable with 30 days notice. Asset management fee From time to time the Company may make secured loans (“Sponsored REIT Loans”) to the Sponsored REIT in the form of mortgage loans or revolving lines of credit to fund construction costs, capital expenditures, leasing costs and for other purposes. The Company reviews the need for an allowance under the current expected credit loss model (“CECL”) for Sponsored REIT Loans each reporting period. The measurement of expected credit losses is based upon historical experiences, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company has elected to apply the practical expedient for financial assets secured by collateral in instances where the borrower is experiencing financial difficulty and repayment of the Sponsored REIT Loan is expected to be provided substantially through operation or sale of the collateral. The Company uses the fair value of the collateral at the reporting date and an adjustment to the allowance for expected credit losses is recorded when the amortized cost basis of the financial asset exceeds the fair value of the collateral, less costs to sell. The Company regularly evaluates the extent and impact of any credit deterioration that could affect performance and the value of the secured property, as well as the financial and operating capability of the borrower. A property’s fair value, operating results and existing cash balances are considered and used to assess whether cash flows from operations are sufficient to cover the current and future operating and debt service requirements. The Company also evaluates the borrower’s competency in managing and operating the secured property and considers the overall economic environment, real estate sector and geographic sub-market in which the secured property is located. The Company applies normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. The Company anticipates the sole Sponsored REIT Loan outstanding will be repaid through operation or sale of the property. The outstanding Sponsored REIT Loan is secured by a mortgage on the underlying property and the balances within the borrower’s cash accounts. The Sponsored REIT Loan matures on June 30, 2023. The following is a summary of the sole Sponsored REIT Loan outstanding as of September 30, 2022: Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Outstanding Rate at Sponsored REIT Location Date of Loan 30-Sep-22 30-Sep-22 Mortgage loan secured by property FSP Monument Circle LLC (1) Indianapolis, IN 30-Jun-23 $ 24,000 $ 24,000 7.51 % $ 24,000 $ 24,000 (1) The interest rate is a fixed rate and this mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower. The Company recognized interest income and fees from the Sponsored REIT Loan of approximately $1,367,000 and $1,196,000 for the nine months ended September 30, 2022 and 2021, respectively. On October 29, 2021, the Company agreed to amend and restate its existing Sponsored REIT Loan to FSP Monument Circle LLC to extend the maturity date from December 6, 2022 to June 30, 2023 and to advance an additional $3.0 million tranche of indebtedness to FSP Monument Circle LLC with the same June 30, 2023 maturity date, effectively increasing the aggregate principal amount of the Sponsored REIT Loan from $21 million to $24 million. In addition, the Company agreed to defer all principal and interest payments due under the Sponsored REIT Loan until the maturity date on June 30, 2023. As part of its consideration for agreeing to amend and restate the Sponsored REIT Loan, the Company obtained from the stockholders of the parent of FSP Monument Circle LLC the right to vote their shares in favor of any sale of the property owned by FSP Monument Circle LLC any time on or after January 1, 2023. There were no commitments to lend additional funds to the Sponsored REIT and the loan is collateralized by the mortgage held on the Sponsored REIT’s property and by cash accounts, as of September 30, 2022. As of December 31, 2021, we did not have an allowance for credit losses recorded on our consolidated balance sheets. We recorded a $1.9 million increase in our provision for credit losses during the nine months ended September 30, 2022. The change in the allowance for credit losses during the nine months ended September 30, 2022 is primarily due to the deterioration within the current real estate market, changes to key assumptions applied within our financial model to reflect these market changes, such as the exit cap and the discount rate, and due to an increase in the accrued interest receivable balance. The following table presents a roll-forward of our allowance for credit losses. For the Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Beginning allowance for credit losses $ — $ — Additional increases to the allowance for credit losses 1,857 — Ending allowance for credit losses $ 1,857 $ — The following is quantitative information about significant unobservable inputs in our Level 3 measurement of the Sponsored REIT Loan measured at fair value on a nonrecurring basis: Fair Value (1) at Significant Range Weighted Description September 30, 2022 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Sponsored REIT Loan $ 22,143 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 8.75 % 8.75 % 8.75 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument.

Bank Note Payable, Term Loans P

Bank Note Payable, Term Loans Payable and Senior Notes	9 Months Ended
Bank Note Payable, Term Loans Payable and Senior Notes	Sep. 30, 2022
Bank Note Payable, Term Note Payable and Private Placements
Bank Note Payable, Term Note Payable and Senior Notes	3. Bank Note Payable, Term Loans Payable and Senior Notes JPM Term Loan On August 2, 2018, the Company entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender (“JPMorgan”), and the other lending institutions party thereto (the “JPM Credit Agreement”), which provided a single unsecured bridge loan in the aggregate principal amount of $150 million (the “JPM Term Loan”). On December 24, 2020, the Company repaid a million remained fully advanced and outstanding under the JPM Term Loan. On June 4, 2021, the Company repaid the remaining outstanding on the loan, which had been scheduled to mature on November 30, 2021, and incurred a loss on extinguishment of debt of $0.1 million related to unamortized deferred financing costs. Although the interest rate on the JPM Term Loan was variable under the JPM Credit Agreement, the Company fixed the LIBOR-based rate on a portion of the JPM Term Loan by entering into interest rate swap transactions. On March 7, 2019, the Company entered into ISDA Master Agreements with various financial institutions to hedge a $100 million portion of the future LIBOR-based rate risk under the JPM Credit Agreement. Effective March 29, 2019, the Company fixed the LIBOR-based rate at million portion of the JPM Term Loan until November 30, 2021. On June 4, 2021, the Company paid approximately million to terminate the interest rate swap, which was scheduled to mature on November 30, 2021. BMO Term Loan On September 27, 2018, the Company entered into a Second Amended and Restated Credit Agreement with the lending institutions party thereto and Bank of Montreal (“BMO”), as administrative agent (the “BMO Credit Agreement”). The BMO Credit Agreement provides for a single, unsecured term loan borrowing in the initial amount of $220 million (the “BMO Term Loan”), of which $165 million remains fully advanced and outstanding. The BMO Term Loan initially consisted of a $55 million tranche A term loan and a $165 million tranche B term loan. On June 4, 2021, the Company repaid the tranche A term loan that was scheduled to mature on November 30, 2021, and incurred a loss on extinguishment of debt of million related to unamortized deferred financing costs. million tranche B term loan matures on January 31, 2024. The BMO Credit Agreement also includes an accordion feature that allows up to million of additional loans, subject to receipt of lender commitments and satisfaction of certain customary conditions. The BMO Term Loan was previously evidenced by an Amended and Restated Credit Agreement, dated October 29, 2014, among the Company, BMO, as administrative agent and lender, and the other lending institutions party thereto, as amended by a First Amendment, dated July 21, 2016, and a Second Amendment, dated October 18, 2017. The BMO Term Loan bears interest at either (i) a number of basis points over LIBOR depending on the Company’s credit rating (165 basis points over LIBOR at September 30, 2022) or (ii) a number of basis points over the base rate depending on the Company’s credit rating (65 basis points over the base rate at September 30, 2022). Although the interest rate on the BMO Term Loan is variable under the BMO Credit Agreement, the Company fixed the base LIBOR interest rate by entering into interest rate swap transactions. On August 26, 2013, the Company entered into an ISDA Master Agreement with BMO that fixed the base LIBOR interest rate on the BMO Term Loan at 2.32% per annum, which matured on August 26, 2020. On February 20, 2019, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BMO Term Loan at per annum for the period beginning on August 26, 2020 and ending January 31, 2024. Accordingly, based upon the Company’s credit rating, as of September 30, 2022, the effective interest rate on the BMO Term Loan was per annum. On June 4, 2021, the Company paid approximately million to terminate the portion of the interest rate swap on the tranche A term loan, which was scheduled to mature on November 30, 2021. The BMO Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BMO Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BMO Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BMO Credit Agreement). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BMO Credit Agreement immediately due and payable, terminate the lenders’ commitments to make loans under the BMO Credit Agreement, and enforce any and all rights of the lenders or the administrative agent under the BMO Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the BMO Term Loan financial covenants as of September 30, 2022. BofA Revolver On January 10, 2022, the Company entered into a Credit Agreement (the “BofA Credit Agreement”) with Bank of America, N.A., as administrative agent, a letter of credit issuer and a lender (“BofA”), and the other lending institutions party thereto, for a new revolving line of credit for borrowings, at the Company’s election, of up to $217.5 million (the “BofA Revolver”). On February 10, 2022, the Company increased its BofA Revolver availability by $20.0 million to $237.5 million as part of the accordion feature that is available to increase borrowing capacity. Borrowings made under the BofA Revolver may be revolving loans or letters of credit, the combined sum of which may not exceed million drawn and outstanding under the BofA Revolver. Borrowings made pursuant to the BofA Revolver may be borrowed, repaid and reborrowed from time to time until the maturity date on January 12, 2024. The Company has the right to request an extension of the maturity date, subject to acceptance by the lenders and satisfaction of certain other customary conditions. The BofA Revolver includes an accordion feature that allows the Company to request an increase in borrowing capacity to an amount not exceeding million in the aggregate, subject to receipt of lender commitments and satisfaction of certain customary conditions. Borrowings under the BofA Revolver bear interest at a margin over either (i) the daily simple Secured Overnight Financing Rate (“SOFR”), plus an adjustment of 0.11448%, or (ii) one three Based upon the Company’s credit rating, as of September 30, 2022, the interest rate on the BofA Revolver was 5.11% per annum. The weighted average variable interest rate on all amounts outstanding under the BofA Revolver through September 30, 2022 was approximately per annum. The BofA Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BofA Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio and a minimum unsecured interest coverage ratio. The BofA Credit Agreement also restricts the Company’s ability to make dividend distributions that exceed of the Company’s good faith estimate of projected funds from operations for the applicable fiscal year; provided, however, that notwithstanding such restriction, the Company is permitted to make dividend distributions based on the Company’s good faith estimate of projected or estimated taxable income or otherwise as necessary to retain the Company’s status as a real estate investment trust, to meet the distribution requirements of Section 857 of the Internal Revenue Code or to eliminate any income or excise taxes to which the Company would otherwise be subject. The Company was in compliance with the BofA Revolver financial covenants as of September 30, 2022. The BofA Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with the provisions of the BofA Credit Agreement, certain cross defaults and a change in control of the Company (as defined in the BofA Credit Agreement). In the event of a default by the Company, BofA, in its capacity as administrative agent, may, and at the request of the requisite number of lenders shall, declare all obligations under the BofA Credit Agreement immediately due and payable and enforce any and all rights of the lenders or BofA under the BofA Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, all outstanding obligations of the Company will become immediately due and payable. The Company may use the net proceeds of the BofA Revolver to finance the acquisition of real properties and for other permitted investments; to finance investments associated with Sponsored REITs, to refinance or retire indebtedness and for working capital and other general business purposes, in each case to the extent permitted under the BofA Credit Agreement. BofA Credit Facility On July 21, 2016, the Company entered into a First Amendment (the “BofA First Amendment”), and on October 18, 2017, the Company entered into a Second Amendment (the “BofA Second Amendment”), to the Second Amended and Restated Credit Agreement dated October 29, 2014 among the Company, the lending institutions party thereto and BofA, as administrative agent, L/C Issuer and Swing Line Lender (as amended by the BofA First Amendment and the BofA Second Amendment, the “BofA Credit Facility”) that continued an existing unsecured revolving line of credit (the “Former BofA Revolver”) and an existing term loan (the “BofA Term Loan”). Effective simultaneously with the closing of the BofA Revolver on January 10, 2022, the Company delivered a notice to BofA terminating the aggregate lender commitments under the Former BofA Revolver in their entirety. There were no amounts drawn on the Former BofA Revolver as of December 31, 2021 and January 10, 2022. BofA Term Loan Highlights ● The original principal amount of the BofA Term Loan was $400 million. On September 30, 2021, the Company repaid a $90 million portion and on October 25, 2021, the Company repaid a $200 million portion of the BofA Term Loan and incurred a loss on extinguishment of debt of $0.7 million related to unamortized deferred financing costs. On September 6, 2022, the Company prepaid the remaining $110 million balance of the BofA Term Loan in full and incurred a loss on extinguishment of debt of $0.1 million related to unamortized deferred financing costs. As of September 30, 2022, there was no balance outstanding under the BofA Term Loan. ● If the Company had not prepaid the BofA Term Loan on September 6, 2022, the BofA Term Loan would have matured by its own terms on January 12, 2023. The BofA Term Loan bore interest at either (i) a margin over LIBOR depending on the Company’s credit rating (1.75% over LIBOR at the date of repayment on September 6, 2022) or (ii) a margin over the base rate depending on the Company’s credit rating (0.75% over the base rate at the date of repayment on September 6, 2022). The interest rate on the BofA Term Loan was variable through the date of prepayment on September 6, 2022. Previously the Company had fixed the base LIBOR interest rate on the BofA Term Loan by entering into interest rate swap transactions. On July 22, 2016, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BofA Term Loan at per annum for the period beginning on September 27, 2017 and ended on September 27, 2021. The weighted average variable interest rate on all amounts outstanding under the BofA Term Loan through the date of repayment on September 6, 2022, was approximately per annum. Senior Notes On October 24, 2017, the Company entered into a note purchase agreement (the “Note Purchase Agreement”) with the various purchasers named therein (the “Purchasers”) in connection with a private placement of senior unsecured notes. Under the Note Purchase Agreement, the Company agreed to sell to the Purchasers an aggregate principal amount of $200 million of senior unsecured notes consisting of (i) Series A Senior Notes due December 20, 2024 in an aggregate principal amount of $116 million (the “Series A Notes”) and (ii) Series B Senior Notes due December 20, 2027 in an aggregate principal amount of $84 million (the “Series B Notes” and, together with the Series A Notes, the “Senior Notes”). On December 20, 2017, the Senior Notes were funded and the proceeds were used to reduce the outstanding balance of the Former BofA Revolver. The Senior Notes bear interest depending on the Company’s credit rating. As of September 30, 2022, the Series A Notes bear interest at per annum. The Note Purchase Agreement contains customary financial covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, and a maximum unencumbered leverage ratio. The Note Purchase Agreement also contains restrictive covenants that, among other things, restrict the ability of the Company and its subsidiaries to enter into transactions with affiliates, merge, consolidate, create liens, make certain restricted payments, enter into certain agreements or prepay certain indebtedness. Such financial and restrictive covenants are substantially similar to the corresponding covenants contained in the BofA Credit Facility, the BMO Credit Agreement and the JPM Credit Agreement. The Senior Notes financial covenants require, among other things, the maintenance of a fixed charge coverage ratio of at least 1.50; a maximum leverage ratio and an unsecured leverage ratio of no more than 60% (65% if there were a significant acquisition for a short period of time). In addition, the Note Purchase Agreement provides that the Note Purchase Agreement will automatically incorporate additional financial and other specified covenants (such as limitations on investments and distributions) that are effective from time to time under the existing credit agreements, other material indebtedness or certain other private placements of debt of the Company and its subsidiaries. The Note Purchase Agreement contains customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of covenants and bankruptcy events. In the case of an event of default, the Purchasers may, among other remedies, accelerate the payment of all obligations. The Company was in compliance with the Senior Notes financial covenants as of September 30, 2022.

Financial Instruments_ Derivati

Financial Instruments: Derivatives and Hedging	9 Months Ended
Financial Instruments: Derivatives and Hedging	Sep. 30, 2022
Financial Instruments: Derivatives and Hedging
Financial Instruments: Derivatives and Hedging	4. Financial Instruments: Derivatives and Hedging On July 22, 2016, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning on September 27, 2017 and ended on September 27, 2021 on the BofA Term Loan (the “2017 Interest Rate Swap”). On March 7, 2019, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning on March 29, 2019 and ending on November 30, 2021 on a million portion of the JPM Term Loan (the “2019 JPM Interest Rate Swap”). On February 20, 2019, the Company entered into interest rate swap transactions that fixed the interest rate for the period beginning August 26, 2020 and ending January 31, 2024 on the BMO Term Loan (the “2019 BMO Interest Rate Swap”). The variable rates that were fixed under the 2017 Interest Rate Swap, the 2019 JPM Interest Rate Swap and the 2019 BMO Interest Rate Swap (collectively referred to as the “Interest Rate Swaps”) are described in Note 3. On June 4, 2021, the Company paid approximately $1.2 million to terminate the 2019 JPM Interest Rate Swap that was scheduled to mature on November 30, 2021 and approximately $0.6 million to terminate a portion of the 2019 BMO Interest Rate Swap that was scheduled to mature on November 30, 2021. As a result of the terminations, approximately million of the balance held in accumulated other comprehensive income (loss) was reclassified into earnings. The JPM Term Loan and a portion of the BMO Term Loan related to these interest rate swaps was also repaid on June 4, 2021, which is described in Note 3. The Interest Rate Swaps qualify as cash flow hedges and have been recognized on the consolidated balance sheets at fair value. If a derivative qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings, which may increase or decrease reported net income and stockholders’ equity prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. The following table summarizes the notional and fair value of the Company’s derivative financial instrument at September 30, 2022 and December 31, 2021. The notional value is an indication of the extent of the Company’s involvement in this instrument at that time, but does not represent exposure to credit, interest rate or market risks. Notional Strike Effective Expiration Fair Value (2) at (in thousands) Value Rate Date Date September 30, 2022 December 31, 2021 2019 BMO Interest Rate Swap (1) $ 165,000 2.39 % Aug-20 Jan-24 $ 4,266 $ (5,239) (1) The Notional Value decreased to $165 million on June 4, 2021. (2) Classified within Level 2 of the fair value hierarchy. The 2019 BMO Interest Rate Swap was reported as an asset with a fair value of approximately $4.3 million and a liability of approximately $5.2 million at September 30, 2022 and December 31, 2021, respectively. The balance is included in other assets: derivative asset and other liabilities: derivative liabilities in the consolidated balance sheet at September 30, 2022 and December 31, 2021, respectively. The gain/(loss) on the Company’s Interest Rate Swaps that was recorded in other comprehensive income (loss) (OCI) and the accompanying consolidated statements of operations as a component of interest expense for the nine months ended September 30, 2022 and 2021, respectively, was as follows: (in thousands) Nine Months Ended September 30, Interest Rate Swaps in Cash Flow Hedging Relationships: 2022 2021 Amounts of gain recognized in OCI $ 7,835 $ 2,410 Amounts of previously recorded loss reclassified from OCI into Interest Expense $ (1,669) $ (7,318) Total amount of Interest Expense presented in the consolidated statements of operations $ 17,140 $ 26,582 Over time, the unrealized gains and losses held in accumulated other comprehensive income will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that approximately The Company is hedging the exposure to variability in anticipated future interest payments on existing debt. The BMO Term Loan hedging transaction uses derivative instruments that involve certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in the contract. The Company requires its derivatives contracts to be with counterparties that have investment grade ratings. As a result, the Company does not anticipate that any counterparty will fail to meet its obligations. However, there can be no assurance that the Company will be able to adequately protect against the foregoing risks or that it will ultimately realize an economic benefit that exceeds the related amounts incurred in connection with engaging in such hedging strategies. The fair value of the Company’s derivative instruments are determined using the net discounted cash flows of the expected cash flows of the derivative based on the market based interest rate curve and are adjusted to reflect credit or nonperformance risk. The risk is estimated by the Company using credit spreads and risk premiums that are observable in the market. These financial instruments were classified within Level 2 of the fair value hierarchy and were classified as an asset or liability on the consolidated balance sheets. The Company’s derivatives are recorded at fair value in other assets: derivative asset and other liabilities: derivative liability in the consolidated balance sheets and the effective portion of the derivatives’ fair value is recorded to other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).

Net Income Per Share

Net Income Per Share	9 Months Ended
Net Income Per Share	Sep. 30, 2022
Net Income Per Share
Net Income Per Share	5. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of Company shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were potential dilutive shares outstanding at each of September 30, 2022 and 2021.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2022
Stockholders' Equity
Stockholders' Equity	6. Stockholders’ Equity As of September 30, 2022, the Company had 103,235,914 shares of common stock outstanding. The Company declared and paid dividends as follows (in thousands, except per share amounts): Dividends Per Total Quarter Paid Share Dividends Special dividend declared in December 2021 and paid January 2022 $ 0.32 $ 33,280 First quarter of 2022 $ 0.09 $ 9,360 Second quarter of 2022 $ 0.09 $ 9,284 Third quarter of 2022 $ 0.01 $ 1,032 First quarter of 2021 $ 0.09 $ 9,660 Second quarter of 2021 $ 0.09 $ 9,659 Third quarter of 2021 $ 0.09 $ 9,666 Equity-Based Compensation On May 20, 2002, the stockholders of the Company approved the 2002 Stock Incentive Plan (the “Plan”). The Plan is an equity-based incentive compensation plan, and provides for the grants of up to a maximum of 2,000,000 shares of the Company’s common stock (“Awards”). All of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted Awards. Awards under the Plan are made at the discretion of the Company’s Board of Directors, and have no vesting requirements. Upon granting an Award, the Company will recognize compensation cost equal to the fair value of the Company’s common stock, as determined by the Company’s Board of Directors, on the date of the grant. On May 20, 2021 and May 17, 2022, the Company granted shares under the Plan to non-employee directors with the compensation cost related to such grants indicated in the table below, which was recognized during the year ended December 31, 2021 and the nine months ended September 30, 2022, respectively, and is included in general and administrative expenses for such periods. Such shares were fully vested on the date of issuance. Shares Available Compensation for Grant Cost Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 1,012,500 Shares granted 2022 (84,133) 393,750 Balance September 30, 2022 1,696,687 $ 1,406,250 Repurchase of Common Stock On June 23, 2021, the Board of Directors of the Company authorized the repurchase of up to $50 million of the Company’s common stock from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. The repurchase authorization may be suspended or discontinued at any time. The Company subsequently repurchased 3,396,243 shares of common stock during the third and fourth quarters of 2021 at an aggregate cost of approximately $18.2 million at an average cost of approximately $5.37 per share, inclusive of brokerage commissions. The Company subsequently repurchased 846,739 shares of common stock during the first quarter of 2022 at an aggregate cost of approximately $4.8 million at an average cost of approximately $5.72 per share, inclusive of brokerage commissions. The Company did not repurchase any shares of common stock during the second and third quarters of 2022. The excess of the purchase price over the par value of the shares repurchased is applied to reduce additional paid-in capital. A summary of the repurchase of common stock by the Company is shown in the following table: (Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 37,019 Repurchase of shares 846,739 4,843 Balance, September 30, 2022 5,260,480 $ 41,862

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
Federal Income Tax Reporting
Income Taxes	7. Income Taxes General The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, the Company generally is entitled to a tax deduction for distributions paid to its shareholders, thereby effectively subjecting the distributed net income of the Company to taxation at the shareholder level only. The Company must comply with a variety of restrictions to maintain its status as a REIT. These restrictions include the type of income it can earn, the type of assets it can hold, the number of shareholders it can have and the concentration of their ownership, and the amount of the Company’s taxable income that must be distributed annually. One such restriction is that the Company generally cannot own more than 10% of the voting power or value of the securities of any one issuer unless the issuer is itself a REIT or a taxable REIT subsidiary (“TRS”). In the case of TRSs, the Company’s ownership of securities in all TRSs generally cannot exceed of the value of all of the Company’s assets. FSP Investments LLC and FSP Protective TRS Corp. are the Company’s taxable REIT subsidiaries operating as taxable corporations under the Code. The TRSs have gross amounts of net operating losses (“NOLs”) available to those taxable corporations of million as of each of December 31, 2021 and 2020, respectively. The NOLs created prior to 2018 will expire between 2030 and 2047 and the NOLs generated after 2017 will not expire. A valuation allowance is provided for the full amount of the NOLs as the realization of any tax benefits from such NOLs is not assured. Income taxes are recorded based on the future tax effects of the difference between the tax and financial reporting bases of the Company’s assets and liabilities. In estimating future tax consequences, potential future events are considered except for potential changes in income tax law or in rates. The Company adopted an accounting pronouncement related to uncertainty in income taxes effective January 1, 2007, which did not result in recording a liability, nor was any accrued interest and penalties recognized with the adoption. Accrued interest and penalties will be recorded as income tax expense, if the Company records a liability in the future. The Company’s effective tax rate was not affected by the adoption. The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The statute of limitations for the Company’s income tax returns is generally three years and as such, the Company’s returns that remain subject to examination would be primarily from 2018 and thereafter. Net operating losses Section 382 of the Code restricts a corporation’s ability to use NOLs to offset future taxable income following certain “ownership changes.” Such ownership changes occurred with past mergers and accordingly a portion of the NOLs incurred by the Sponsored REITs available for use by the Company in any particular future taxable year will be limited. To the extent that the Company does not utilize the full amount of the annual NOLs limit, the unused amount may be carried forward to offset taxable income in future years. NOLs generated prior to December 31, 2018 will expire 20 years after the year in which they arise, and the last of the Company’s NOLs will expire in 2027. A valuation allowance is provided for the full amount of the NOLs as the realization of any tax benefits from such NOLs is not assured. The gross amount of NOLs available to the Company was million as of September 30, 2022 and December 31, 2021, respectively. Income Tax Expense The Company is subject to a business tax known as the Revised Texas Franchise Tax. Some of the Company’s leases allow reimbursement by tenants for these amounts because the Revised Texas Franchise Tax replaces a portion of the property tax for school districts. Because the tax base on the Revised Texas Franchise Tax is derived from an income based measure, it is considered an income tax. The Company recorded a provision for the Revised Texas Franchise Tax of The income tax expense reflected in the consolidated statements of operations relates primarily to a franchise tax on the Company’s Texas properties. For the Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Revised Texas Franchise Tax $ 167 $ 174 Other Taxes — — Tax expense $ 167 $ 174 Taxes on income are a current tax expense.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2022
Leases
Leases	8. Leases Leases as a Lessor: The Company is a lessor of commercial real estate with operations that include the leasing of office and industrial properties. Many of the leases with customers contain options to extend leases at a fair market rate and may also include options to terminate leases. The Company considers several inputs when evaluating the amount it expects to derive from its leased assets at the end of the lease terms, such as the remaining useful life, expected market conditions, fair value of lease payments, expected fair values of underlying assets, and expected deployment of the underlying assets. The Company’s strategy to address its risk for the residual value in its commercial real estate is to re-lease the commercial space. The Company has elected to apply the practical expedient to not separate non-lease components from the related lease component of real estate leases. This combined component is primarily comprised of fixed lease payments, early termination fees, common area maintenance cost reimbursements, and parking lease payments. The Company applies ASC 842-Leases to the combined lease and non-lease components. For the nine months ended September 30, 2022 and 2021, the Company recognized the following amounts of income relating to lease payments: Income relating to lease payments: Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 Income from leases (1) $ 118,843 $ 161,443 $ 118,843 $ 161,443 (1) Amounts recognized from variable lease payments were $37,050 and $42,298 for the nine months ended September 30, 2022 and 2021, respectively.

Disposition of Properties

Disposition of Properties	9 Months Ended
Disposition of Properties	Sep. 30, 2022
Dispositions of property
Dispositions of properties	9. Disposition of Properties In furtherance of the Company’s strategy adopted in 2021 to dispose of certain properties where it believed its valuation objective has been met, the Company sold two office properties located in Broomfield, Colorado on August 31, 2022 for an aggregate sales price of $102.5 million, at a net gain of approximately $24.1 million. In 2021, the Company sold million. The Company sold an office property in Dulles, Virginia on June 29, 2021 at a loss of million. The Company sold an office property located in Indianapolis, Indiana on August 31, 2021 with a sales price of approximately million. The Company sold million. The Company used the proceeds of the dispositions principally to repay outstanding indebtedness. The Company reports the results of operations of its properties in its consolidated statements of operations, which includes rental income, rental operating expenses, real estate taxes and insurance and depreciation and amortization. The operating results for the properties that the Company disposed of during the three and nine months ended September 30, 2022 and 2021, respectively, are summarized below: For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2022 2021 2022 2021 Rental revenue $ 2,078 $ 5,959 $ 8,581 $ 30,598 Rental operating expenses (580) (1,558) (2,460) (8,779) Real estate taxes and insurance (569) (742) (2,145) (5,440) Depreciation and amortization (783) (1,951) (3,139) (9,595) Income from dispositions $ 146 $ 1,708 $ 837 $ 6,784

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2022
Subsequent Events
Subsequent Events	10. Subsequent Events On October 7, 2022, the Board of Directors of the Company declared a cash distribution of $0.01 per share of common stock payable on November 10, 2022 to stockholders of record on October 21, 2022.

Organization, Properties, Bas_2

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2022
Organization
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements of the Company include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission. The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements for these interim periods have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other period.
Financial Instruments	Financial Instruments As disclosed in Note 4, the Company’s derivatives are recorded at fair value using Level 2 inputs. The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates or at rates that are at market for similar investments.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equ ivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. September 30, September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 6,367 $ 5,053 Restricted cash 2,350 4,678 Total cash, cash equivalents and restricted cash $ 8,717 $ 9,731 Restricted cash
Variable Interest Entities	Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of September 30, 2022, our relationship with FSP Monument Circle LLC was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to the outstanding Sponsored REIT Loan (as defined in Note 2) net of the allowance for credit loss, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately $24.0 million and $24.5 million at September 30, 2022 and December 31, 2021, respectively. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and are approximately $1.8 million and $0.5 million at September 30, 2022 and December 31, 2021, respectively. The relationships and investments related to the entity in which we have a variable interest are summarized in Note 2.
Recent Accounting Standards	Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company is currently assessing the potential impact that the adoption of ASU 2020-04 may have on its consolidated financial statements.

Organization, Properties, Bas_3

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards (Tables)	9 Months Ended
	Sep. 30, 2022
Organization
Summary of the entity's investment in real estate assets, including number of properties and rentable square feet of real estate	As of September 30, 2022 2021 Operating Properties: Number of properties 22 26 Rentable square feet 6,433,954 7,671,275
Reconciliation of cash, cash equivalents, and restricted cash	September 30, September 30, (in thousands) 2022 2021 Cash and cash equivalents $ 6,367 $ 5,053 Restricted cash 2,350 4,678 Total cash, cash equivalents and restricted cash $ 8,717 $ 9,731

Related Party Transactions an_2

Related Party Transactions and Investments in Non-Consolidated Entities (Tables)	9 Months Ended
	Sep. 30, 2022
Related Party Transactions and Investments in Non-Consolidated Entities
Summary of the Sponsored REIT Loans outstanding	Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Outstanding Rate at Sponsored REIT Location Date of Loan 30-Sep-22 30-Sep-22 Mortgage loan secured by property FSP Monument Circle LLC (1) Indianapolis, IN 30-Jun-23 $ 24,000 $ 24,000 7.51 % $ 24,000 $ 24,000 (1) The interest rate is a fixed rate and this mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower.
Allowance for credit losses rollforward	For the Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Beginning allowance for credit losses $ — $ — Additional increases to the allowance for credit losses 1,857 — Ending allowance for credit losses $ 1,857 $ —
Quantitative information about significant unobservable inputs of Level 3 measurement	Fair Value (1) at Significant Range Weighted Description September 30, 2022 Valuation Technique Unobservable Input Min Max Average (2) (in thousands) Sponsored REIT Loan $ 22,143 Discounted Cash Flows Exit Cap Rate 7.50 % 7.50 % 7.50 % Discount Rate 8.75 % 8.75 % 8.75 % (1) Classified within Level 3 of the fair value hierarchy. (2) Unobservable inputs were weighted based on the fair value of the related instrument.

Financial Instruments_ Deriva_2

Financial Instruments: Derivatives and Hedging (Tables)	9 Months Ended
Financial Instruments: Derivatives and Hedging (Tables)	Sep. 30, 2022
Financial Instruments: Derivatives and Hedging
Schedule of notional and fair value of derivative financial instruments	Notional Strike Effective Expiration Fair Value (2) at (in thousands) Value Rate Date Date September 30, 2022 December 31, 2021 2019 BMO Interest Rate Swap (1) $ 165,000 2.39 % Aug-20 Jan-24 $ 4,266 $ (5,239) (1) The Notional Value decreased to $165 million on June 4, 2021. (2) Classified within Level 2 of the fair value hierarchy.
Summary of Interest Rate Swaps that was recorded in OCI	(in thousands) Nine Months Ended September 30, Interest Rate Swaps in Cash Flow Hedging Relationships: 2022 2021 Amounts of gain recognized in OCI $ 7,835 $ 2,410 Amounts of previously recorded loss reclassified from OCI into Interest Expense $ (1,669) $ (7,318) Total amount of Interest Expense presented in the consolidated statements of operations $ 17,140 $ 26,582

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
Stockholders' Equity (Tables)	Sep. 30, 2022
Stockholders' Equity
Schedule of dividends declared and paid	Dividends Per Total Quarter Paid Share Dividends Special dividend declared in December 2021 and paid January 2022 $ 0.32 $ 33,280 First quarter of 2022 $ 0.09 $ 9,360 Second quarter of 2022 $ 0.09 $ 9,284 Third quarter of 2022 $ 0.01 $ 1,032 First quarter of 2021 $ 0.09 $ 9,660 Second quarter of 2021 $ 0.09 $ 9,659 Third quarter of 2021 $ 0.09 $ 9,666
Schedule of Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity	Shares Available Compensation for Grant Cost Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 1,012,500 Shares granted 2022 (84,133) 393,750 Balance September 30, 2022 1,696,687 $ 1,406,250
Schedule of repurchase of common stock	(Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 37,019 Repurchase of shares 846,739 4,843 Balance, September 30, 2022 5,260,480 $ 41,862

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2022
Federal Income Tax Reporting
Schedule of income tax expense reflected in the condensed consolidated statements of income	For the Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Revised Texas Franchise Tax $ 167 $ 174 Other Taxes — — Tax expense $ 167 $ 174

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2022
Leases
Summary of income relating to lease payments and undiscounted cash flows	Income relating to lease payments: Nine Months Ended (in thousands) September 30, 2022 September 30, 2021 Income from leases (1) $ 118,843 $ 161,443 $ 118,843 $ 161,443 (1) Amounts recognized from variable lease payments were $37,050 and $42,298 for the nine months ended September 30, 2022 and 2021, respectively.

Disposition of properties (Tabl

Disposition of properties (Tables)	9 Months Ended
Disposition of properties (Tables)	Sep. 30, 2022
Dispositions of property
Summary of operating results for discontinued operations	For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2022 2021 2022 2021 Rental revenue $ 2,078 $ 5,959 $ 8,581 $ 30,598 Rental operating expenses (580) (1,558) (2,460) (8,779) Real estate taxes and insurance (569) (742) (2,145) (5,440) Depreciation and amortization (783) (1,951) (3,139) (9,595) Income from dispositions $ 146 $ 1,708 $ 837 $ 6,784

Organization, Properties, Bas_4

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards (Details)	9 Months Ended
	Sep. 30, 2022 ft² property entity	Dec. 31, 2021 entity	Sep. 30, 2021 ft² property
Organization
Number of REITs in which the entity holds non-controlling common stock interest \| entity	1	2
Number of Sponsored REITs	1
Number of promissory notes secured by mortgages on real estate owned by Sponsored REITs	1
Properties
Number of properties	22		26
Rentable square feet \| ft²	6,433,954		7,671,275
FSP Investments LLC
Organization
Ownership interest (as a percent)	100%
FSP Property Management LLC
Organization
Ownership interest (as a percent)	100%
FSP Holdings LLC
Organization
Ownership interest (as a percent)	100%
FSP Protective TRS Corp.
Organization
Ownership interest (as a percent)	100%

Organization, Properties, Bas_5

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents	$ 6,367		$ 5,053
Restricted Cash	2,350		4,678
Total cash, cash equivalents and restricted cash	$ 8,717	$ 40,751	$ 9,731	$ 4,150
Restricted Cash, Statement of Financial Position [Extensible Enumeration]	Total cash, cash equivalents and restricted cash

Organization, Properties, Bas_6

Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards - Variable Interest Entities (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Variable interest entity
Maximum exposure to losses associated with VIE	$ 24	$ 24.5
Prepaid expenses and other assets
Variable interest entity
Accrued interest and exit fee receivables	$ 1.8	$ 0.5

Related Party Transactions an_3

Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs (Details) - entity	Sep. 30, 2022	Dec. 31, 2021
Related Party Transactions and Investments in Non-Consolidated Entities
Number of REITs in which the entity holds non-controlling common stock interest	1	2

Related Party Transactions an_4

Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans (Details) - USD ($)	9 Months Ended		21 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022
Sponsored REITs
Asset management fees, low end of range (as a percent)	1%
Asset management fees, high end of range (as a percent)	5%
Notice period for cancellation of applicable contracts	30 days
Type of revenue			Asset management fees
Asset management fees
Sponsored REITs
Revenue	$ 26,000	$ 50,000

Related Party Transactions an_5

Related Party Transactions and Investments in Non-Consolidated Entities - Sponsored REIT Loans outstanding (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Oct. 29, 2021	Oct. 28, 2021
Sponsored REITs
Maximum amount of loan	$ 24,000,000
Amount Drawn	24,000,000		$ 24,000,000	$ 21,000,000
Related party mortgage loan receivable	24,000,000		24,000,000	$ 21,000,000
Sponsored REITs
Sponsored REITs
Interest income and fees from the Sponsored REIT Loans	1,367,000	$ 1,196,000
FSP Monument Circle LLC
Sponsored REITs
Additional loan amount			$ 3,000,000
Mortgage loan \| FSP Monument Circle LLC
Sponsored REITs
Maximum amount of loan	24,000,000
Amount Drawn	$ 24,000,000
Interest rate (as a percent)	7.51%
Origination fee	$ 164,000
Exit fee	38,000
Related party mortgage loan receivable	$ 24,000,000

Related Party Transactions an_6

Related Party Transactions and Investments in Non-Consolidated Entities - Allowance for credit losses (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning allowance for credit losses	$ 0
Additional increases or decreases to the allowance for credit losses	1,857
Ending allowance for credit losses	$ 1,857

Related Party Transactions an_7

Related Party Transactions and Investments in Non-Consolidated Entities - Level 3 Significant unobservable inputs (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Related party mortgage loan receivable	$ 22,143	$ 24,000
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Related party mortgage loan receivable	$ 22,143
Level 3 \| Maximum \| Exit Cap Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.50
Level 3 \| Maximum \| Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	8.75
Level 3 \| Minimum \| Exit Cap Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.50
Level 3 \| Minimum \| Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	8.75
Level 3 \| Weighted Average \| Exit Cap Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.50
Level 3 \| Weighted Average \| Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	8.75
Level 3 \| Sponsored REIT Loan
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt Securities, Available-for-Sale, Valuation Technique [Extensible Enumeration]	us-gaap:ValuationTechniqueDiscountedCashFlowMember

Bank Note Payable, Term Loans_2

Bank Note Payable, Term Loans Payable and Senior Notes (Details) - USD ($)						3 Months Ended		9 Months Ended
	Sep. 06, 2022	Oct. 25, 2021	Sep. 29, 2021	Jun. 04, 2021	Dec. 24, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Feb. 10, 2022	Jan. 10, 2022	Dec. 31, 2021	Dec. 23, 2020	Aug. 02, 2018	Oct. 18, 2017
Debt Instrument [Line Items]
Repayments of unsecured debt								$ 110,000,000	$ 245,000,000
Loss on extinguishment of debt						$ (78,000)	$ (236,000)	(78,000)	$ (403,000)
Unsecured term loan						164,692,000		164,692,000				$ 274,286,000
Borrowings outstanding						65,000,000		65,000,000
Senior Notes
Debt Instrument [Line Items]
Principal amount of loan						200,000,000		$ 200,000,000
Fixed charge coverage ratio								1.50
Series A Notes
Debt Instrument [Line Items]
Principal amount of loan						$ 116,000,000		$ 116,000,000
Interest rate (as a percent)						4.49%		4.49%
Series B Notes
Debt Instrument [Line Items]
Principal amount of loan						$ 84,000,000		$ 84,000,000
Interest rate (as a percent)						4.76%		4.76%
Maximum \| Senior Notes
Debt Instrument [Line Items]
Unsecured leverage ratio								60%
Unsecured leverage ratio for significant acquisition								65%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate during period (as a percent)								5.11%
Weighted average variable interest rate (as a percent)								1.84%
Borrowing capacity										$ 237,500,000	$ 217,500,000
Increase to maximum borrowing capacity by exercising an accordion feature										$ 20,000,000
Borrowings outstanding						$ 65,000,000		$ 65,000,000
Maximum allowable borrowing capacity upon exercising an accordion feature						$ 750,000,000		$ 750,000,000
Facility fee at period end (as a percent)						0.35%		0.35%
Percentage of funds from operations which dividend distributions cannot exceed per the BofA Credit Agreement								95%
Revolving Credit Facility [Member] \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)								0.11448%
Unsecured leverage ratio								1.95%
Revolving Credit Facility [Member] \| One Month SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)								0.11448%
Term of SOFR								1 month
Revolving Credit Facility [Member] \| Three month SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)								0.26161%
Term of SOFR								3 months
Revolving Credit Facility [Member] \| Six month SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)								0.42826%
Term of SOFR								6 months
Revolving Credit Facility [Member] \| Bank's base rate
Debt Instrument [Line Items]
Unsecured leverage ratio								0.95%
Unsecured Debt [Member]
Debt Instrument [Line Items]
Principal amount of loan															$ 400,000,000
Repayments of unsecured debt	$ 110,000,000	$ 200,000,000	$ 90,000,000
Loss on extinguishment of debt	100,000	$ 700,000
Unsecured term loan	$ 0
Weighted average interest rate (as a percent)						2.65%		2.65%
Unsecured Debt [Member] \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate at period end (as a percent)						1.75%		1.75%
Fixed rate (as a percent)						1.12%		1.12%
Unsecured Debt [Member] \| Bank's base rate
Debt Instrument [Line Items]
Basis spread on variable rate at period end (as a percent)						0.75%		0.75%
JPM Term Loan
Debt Instrument [Line Items]
Principal amount of loan														$ 150,000,000
Repayments of unsecured debt				$ 100,000,000	$ 50,000,000
Loss on extinguishment of debt				100,000
Unsecured term loan													$ 100,000,000
Portion of future LIBOR-based rate risk						$ 100,000,000		$ 100,000,000
JPM Term Loan \| Hedged portion
Debt Instrument [Line Items]
Payment to terminate interest rate swap				1,200,000
Portion of future LIBOR-based rate risk						$ 100,000,000		$ 100,000,000
JPM Term Loan \| LIBOR \| Hedged portion
Debt Instrument [Line Items]
Fixed rate (as a percent)						2.44%		2.44%
BMO Term Loan
Debt Instrument [Line Items]
Principal amount of loan						$ 220,000,000		$ 220,000,000
Effective interest rate (as a percent)						4.04%		4.04%
Maximum allowable borrowing capacity upon exercising an accordion feature						$ 100,000,000		$ 100,000,000
BMO Term Loan \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate at period end (as a percent)						1.65%		1.65%
Fixed rate (as a percent)						2.32%		2.32%
BMO Term Loan \| LIBOR \| Hedged portion
Debt Instrument [Line Items]
Fixed rate (as a percent)						2.39%		2.39%
BMO Term Loan \| Bank's base rate
Debt Instrument [Line Items]
Basis spread on variable rate at period end (as a percent)						0.65%		0.65%
Tranche A Term Loan
Debt Instrument [Line Items]
Principal amount of loan						$ 55,000,000		$ 55,000,000
Loss on extinguishment of debt				100,000
Payment to terminate interest rate swap				$ 600,000
Tranche B Term Loan
Debt Instrument [Line Items]
Principal amount of loan						$ 165,000,000		$ 165,000,000

Financial Instruments_ Deriva_3

Financial Instruments: Derivatives and Hedging (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 04, 2021	Sep. 30, 2022	Dec. 31, 2021
Financial Instruments: Derivatives and Hedging
Interest reclassified from accumulated other comprehensive income into interest expense		$ 1,900
Amount estimated to be reclassified into earnings within next 12 months		3,200
JPM Term Loan
Financial Instruments: Derivatives and Hedging
Hedged amount of portion of the future rate risk		100,000
2019 JPM Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Payment to terminate interest rate swap	$ 1,200
2019 BMO Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Fair value of hedged asset		4,300	$ 4,300
Hedged amount of portion of the future rate risk		5,200	5,200
Payment to terminate interest rate swap	600
2019 BMO Interest Rate Swap \| Cash flow hedges
Financial Instruments: Derivatives and Hedging
Notional Value	$ 165,000	$ 165,000
Strike Rate (as a percent)		2.39%
2019 BMO Interest Rate Swap \| Cash flow hedges \| Level 2
Financial Instruments: Derivatives and Hedging
Fair Value		$ 4,266	$ (5,239)

Financial Instruments_ Deriva_4

Financial Instruments: Derivatives and Hedging - Interest Rate Swaps (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount of Interest Expense presented in the consolidated statements of operations	$ 6,110	$ 7,928	$ 17,140	$ 26,582
Interest Rate Swap
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount of Interest Expense presented in the consolidated statements of operations			17,140	26,582
Interest Rate Swap \| Amounts of previously recorded loss reclassified from OCI into Interest Expense
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount of Interest Expense presented in the consolidated statements of operations			(1,669)	(7,318)
Interest Rate Swap \| Amounts of gain recognized in OCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amount of Interest Expense presented in the consolidated statements of operations			$ 7,835	$ 2,410

Net Income Per Share (Details)

Net Income Per Share (Details) - shares	9 Months Ended
Net Income Per Share (Details) - shares	Sep. 30, 2022	Sep. 30, 2021
Net Income Per Share
Potential dilutive shares outstanding	0	0

Stockholders' Equity (Details)

Stockholders' Equity (Details)	1 Months Ended	3 Months Ended						9 Months Ended	12 Months Ended
Stockholders' Equity (Details)	Dec. 31, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares	Mar. 31, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares	Jun. 30, 2021 USD ($) $ / shares	Mar. 31, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) item shares	Dec. 31, 2021 USD ($) shares
Stockholders' Equity
Common Stock, Shares, Outstanding	103,998,520	103,235,914						103,235,914	103,998,520
Dividends declared and paid
Cash dividend declared per share (in dollars per share) \| $ / shares	$ 0.32	$ 0.01	$ 0.09	$ 0.09	$ 0.09	$ 0.09	$ 0.09
Total Dividends \| $	$ 33,280,000	$ 1,032,000	$ 9,284,000	$ 9,360,000	$ 9,666,000	$ 9,659,000	$ 9,660,000
2002 Stock Incentive Plan
Equity-Based Compensation
Maximum number of shares provided for grant under equity-based incentive compensation plan		2,000,000						2,000,000
Number of vesting requirements \| item								0
Number of shares available for grant under the plan, Beginning				1,780,820			1,847,384	1,780,820	1,847,384
Shares Granted								(84,133)	(66,564)
Number of shares available for grant under the plan, Ending	1,780,820	1,696,687						1,696,687	1,780,820
Compensation Cost, Beginning \| $				$ 1,012,500			$ 675,000	$ 1,012,500	$ 675,000
Compensation cost \| $								393,750	337,500
Compensation Cost, Ending \| $	$ 1,012,500	$ 1,406,250						$ 1,406,250	$ 1,012,500

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2022	Sep. 30, 2021	Dec. 31, 2021	Sep. 30, 2022	Dec. 31, 2021	Jun. 23, 2021
Stockholders' Equity
Shares authorized to be repurchased						$ 50,000
Average cost per share of repurchased shares (in dollars per share)			$ 5.37	$ 5.72
Total number of shares repurchased, beginning (in shares)	4,413,741			4,413,741	1,017,498
Shares repurchased (in shares)	846,739		3,396,243	846,739	3,396,243
Total number of shares repurchased, ending (in shares)			4,413,741	5,260,480	4,413,741
Amount of stock repurchased, beginning	$ 37,019			$ 37,019	$ 18,775
Aggregate cost of shares repurchased	$ 4,843	$ 8,244	$ 18,200	4,843	18,244
Amount of stock repurchased, ending			$ 37,019	$ 41,862	$ 37,019

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2017	Dec. 31, 2021	Dec. 31, 2020
Federal Income Tax Reporting
Maximum ownership as a percentage of the voting power or value of the securities of each issuer other than REIT or "TRS"			10%
Maximum ownership of securities in all TRS (as a percent)			20%		25%
Maximum ownership of securities in all TRS when considered together with other non-real estate assets (as a percent)			25%
Gross amount of NOL of TRS						$ 4,800,000	$ 4,600,000
Net operating losses
Gross amount of NOLs available to company	$ 1,700,000		$ 1,700,000			$ 1,100,000
Income Tax Expense
Revised Texas Franchise Tax			167,000	$ 174,000
Tax expense	$ 62,000	$ 51,000	167,000	$ 174,000
Deferred income taxes			$ 0

Leases - Income Relating to Lea

Leases - Income Relating to Lease Payments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income relating to lease payments:
Income from leases	$ 118,843	$ 161,443
Undiscounted Cash Flows
Variable lease payments	$ 37,050	$ 42,298

Disposition of Properties (Deta

Disposition of Properties (Details) $ in Thousands						3 Months Ended		9 Months Ended
Disposition of Properties (Details) $ in Thousands	Aug. 31, 2022 USD ($) property	Sep. 23, 2021 USD ($) property	Aug. 31, 2021 USD ($)	Jun. 29, 2021 USD ($)	May 27, 2021 USD ($) property	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Dispositions of properties
Gain (loss) on sale of property						$ 24,077	$ 8,632	$ 24,077	$ 29,258
Operating results for discontinued operations:
Rental revenue						2,078	5,959	8,581	30,598
Rental operating expenses						(580)	(1,558)	(2,460)	(8,779)
Real estate taxes and insurance						(569)	(742)	(2,145)	(5,440)
Depreciation and amortization						(783)	(1,951)	(3,139)	(9,595)
Net income (loss) from discontinued operations						$ 146	$ 1,708	$ 837	$ 6,784
Office properties in Broomfield, Colorado
Dispositions of properties
Number of properties sold \| property	2
Gain (loss) on sale of property	$ 24,100
Sale price	$ 102,500
Office Properties in Atlanta, Georgia
Dispositions of properties
Number of properties sold \| property					3
Gain (loss) on sale of property					$ 22,700
Sale price					$ 219,500
Office Property in Dulles, Virginia
Dispositions of properties
Gain (loss) on sale of property				$ 2,100
Office property in Indianapolis, Indiana
Dispositions of properties
Gain (loss) on sale of property			$ (1,700)
Sale price			$ 35,000
Office properties in Chesterfield, MO
Dispositions of properties
Number of properties sold \| property		2
Gain (loss) on sale of property		$ 10,300
Sale price		$ 67,000

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions

1 Months Ended

3 Months Ended

Oct. 07, 2022 $ / shares

Dec. 31, 2021 $ / shares

Sep. 30, 2022 $ / shares

Jun. 30, 2022 $ / shares

Mar. 31, 2022 $ / shares

Sep. 30, 2021 $ / shares

Jun. 30, 2021 $ / shares

Mar. 31, 2021 $ / shares

Aug. 31, 2022 property

Feb. 10, 2022 USD ($)

Jan. 10, 2022 USD ($)

Sep. 23, 2021 property

May 27, 2021 property

Subsequent Events

Cash dividend declared per share (in dollars per share) | $ / shares

$ 0.32

$ 0.01

$ 0.09

Subsequent event

Subsequent Events

Cash dividend declared per share (in dollars per share) | $ / shares

$ 0.01

Office properties in Broomfield, Colorado

Subsequent Events

Number of properties sold

Office Properties in Atlanta, Georgia

Subsequent Events

Number of properties sold

Office properties in Chesterfield, MO

Subsequent Events

Number of properties sold

BofA Revolver

Subsequent Events

Borrowing capacity | $

$ 237.5

$ 217.5

Increase to maximum borrowing capacity by exercising an accordion feature | $

$ 20