ex99-1.htm

Exhibit 99.1

Supplemental Operating and Financial Data

For the Quarter Ending September 30, 2008

Third Quarter 2008

Franklin Street Properties Corp.

401 Edgewater Place

Suite 200

Wakefield, MA 01880

781-557-1300

www.franklinstreetproperties.com

Franklin Street Properties Corp. Third Quarter 2008

Table of Contents

Third Quarter 2008

Company Overview	pg 3

Key Financial Data
Financial Highlights	pg 6
Management’s Key Operating Measures	pg 7
EPS, FFO, GOS and FFO+GOS	pg 8
Income Statements	pg 9
Balance Sheet	pg 10
Cash Flow Statements	pg 11
Segment Information	pg 12
Cash and GAAP NOI	pg 13
Capital Analysis	pg 14
Capital Expenditures	pg 14

Portfolio Overview
Property by Form of FSP Participation	pg 15
Regional Analysis, Map	pg 16
Owned Property List	pg 17

Tenant Analysis
Twenty Largest Tenants, Industry Profile	pg 18
Lease Expirations by Square Feet	pg 19

Transactional Drivers
Acquisition and Disposition Detail	pg 20
Investment Banking Performance	pg 21

FFO and FFO+GOS Reconciliations and Definitions	pg 22

NOI Reconciliation	pg 23

All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal security laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include general economic conditions, local real estate conditions, the performance of properties that FSP has acquired or may acquire, the timely lease-up of properties and other risks, detailed from time to time in FSP’s SEC reports. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Franklin Street Properties Corp. Third Quarter 2008

Company Overview

Overview

Franklin Street Properties Corp. (“FSP”) (NYSE Alternext US: FSP) is an investment firm focused on achieving current income and long-term growth through investments in commercial properties. FSP’s portfolio of real estate assets consists primarily of suburban office buildings and includes select investments in central business district (CBD) properties. FSP’s real estate operations include property acquisitions and dispositions, interim acquisition and short-term financing, leasing, development and asset management. FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and registered broker/dealer.

Our Business

FSP operates in two business segments and has two principal sources of revenue; real estate operations and investment banking/investment services. Real estate operations include rental income from real estate leasing, interest income from loans made for interim acquisition or other purposes, and fee income from asset management. Investment banking/investment services generate brokerage commissions, loan origination fees, development services and other fees related to the organization of single-purpose entities that own real estate and the private placement of equity in those entities.

Strategy

FSP’s investment strategy is to make selective acquisitions based on market and/or property specific criteria, actively manage the property to maximize its value and dispose of the property when the ideal time or situation arises. Proceeds from property sales are redeployed into other specific real estate assets, used for other corporate purposes and/or paid out to stockholders as special dividends. Unlike many real estate investment companies, which have utilized significant leverage in an attempt to enhance their real estate portfolio’s returns, FSP has used very moderate leverage to date. FSP’s historical growth has been achieved without the use of permanent mortgage debt on any of our properties. This model has significantly reduced FSP’s risk profile by reducing foreclosure, financing and refinancing risk. The Company has recently adjusted its strategy and plans to employ modest leverage to accelerate its growth and capitalize on current market conditions and opportunities. In addition, FSP believes that it can lower investment risk while enhancing current income and long-term appreciation potential by owning properties in diversified geographic locations that have sound long-term economic growth potential.

Snapshot

(as of September 30, 2008)

Corporate Headquarters	Wakefield, MA
Fiscal Year-End	December 31
Total Properties	27
Total Square Feet	5.2 million
Common Shares Outstanding	70.5 million
Quarterly Dividend	$0.19
Dividend Yield	5.8%
Total Market Capitalization	$916.2 million
Insider Holdings	16%

Franklin Street Properties Corp. Third Quarter 2008

Company Overview

Structure of the Company

FSP has elected to be taxed as a Real Estate Investment Trust (REIT) under the Internal Revenue Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income to our shareholders. Management intends to continue to adhere to these requirements and to maintain our REIT status. As a REIT we are entitled to a tax deduction for some or all of the dividends we pay to shareholders. Accordingly, we generally will not be subject to federal income taxes as long as we distribute an amount equal to or in excess of our taxable income to shareholders.

Dividend Philosophy

FSP has been able to offer shareholders high-quality, risk-adjusted returns. The ongoing and recurring rental revenue stream provides stability to our regular quarterly dividend. In addition, the possibility exists for the payment of annual special dividends resulting from the sale of properties in the portfolio and FSP’s investment banking business.

Board of Directors and Management

George J. Carter	Georgia Murray
President, Chief Executive Officer	Director
Chairman of the Board	Chair, Compensation Committee
	Member, Audit Committee
Barbara J. Fournier
Executive Vice President, Chief Operating Officer,	Barry Silverstein
Treasurer, Secretary and Director	Director
	Member, Audit Committee
Janet Notopoulos	Member, Compensation Committee
Executive Vice President and Director
	John G. Demeritt
John N. Burke	Executive Vice President and
Director	Chief Financial Officer
Chair, Audit Committee
Member, Compensation Committee	Scott H. Carter
	Executive Vice President, General Counsel
Dennis J. McGillicuddy	and Assistant Secretary
Director
Member, Audit Committee
Member, Compensation Committee

Franklin Street Properties Corp. Third Quarter 2008

Company Overview

Corporate Headquarters	Trading Symbol	Inquires
401 Edgewater Place, Suite 200	Stock Exchange Listing:	Inquires should be directed to
Wakefield, MA 01880	NYSE Alternext US	Donna Brownell, VP Investor Relations
(t) 781-557-1300	Symbol: FSP	781-557-1308 or
(f) 781-246-2807		dbrownell@franklinstreetproperties.com
www.franklinstreetproperties.com

Common Stock Data (NYSE Alternext US: FSP)

		For the Three Months Ended
	9/30/08		6/30/08		3/31/08		12/31/07		9/30/07
High Price		14.80		16.09		15.38		18.52		18.18
Low Price		11.25		12.50		11.50		14.45		14.74
Closing Price, at the end of the quarter		13.00		12.64		14.32		14.80		17.25
Dividends paid per share – quarterly		0.19		0.31		0.31		0.31		0.31
Closing dividend yield – annualized		5.8%		9.8%		8.7%		8.4%		7.2%
Common shares outstanding (millions)		70.48		70.48		70.48		70.48		70.48

Timing

Quarterly results are expected to be announced according to the following schedule:

First Quarter:	Late April		Third Quarter:	Early November
Second Quarter:	Early August		Fourth Quarter:	Late February

Franklin Street Properties Corp. Third Quarter 2008

Financial Highlights

(in thousands, except per share data)

	Twelve Months Ended					Three Months Ended

	12/31/07			12/31/06		9/30/08			6/30/08		3/31/08			12/31/07			9/30/07
Income Items:
Revenue:
Rental	$	100,961		$	83,147	$	27,927		$	27,700	$	26,656		$	25,851		$	27,109
Related party revenue		25,914			24,038		984			6,818		934			6,202			2,788
Other		118			60		13			19		20			34			37
Total revenue		126,993			107,245		28,924			34,537		27,610			32,087			29,934

Total expenses		92,153			68,709		22,658			24,538		21,695			23,185			23,321

Income before interest income, equity in earnings (losses) in non-consolidated REITs and taxes		34,840			38,536		6,266			9,999		5,915			8,902			6,613
Interest income		2,377			2,998		177			176		303			514			650
Equity in earnings (losses) in non-consolidated REITs		(464	)		845		679			694		793			147			147

Income before taxes		36,753			42,379		7,122			10,869		7,011			9,563			7,410
Income tax expense (benefit)		647			839		(297	)		335		(375	)		359			( 206	)

Income from continuing operations		36,106			41,540		7,419			10,534		7,386			9,204			7,616
Income from discontinued operations		1,190			7,951		-			-		-			(70	)		( 72	)
Gain on sale of assets		23,789			61,438		-			-		-			257			1,942

Net income	$	61,085		$	110,929	$	7,419		$	10,534	$	7,386		$	9,391		$	9,486

FFO+GOS*:
FFO	$	75,049		$	81,278	$	17,084		$	20,283	$	15,637		$	18,572		$	16,922
GOS		23,789			61,438		-			-		-			257			1,942
FFO+GOS	$	98,838		$	142,716	$	17,084		$	20,283	$	15,637		$	18,829		$	18,864

Per Share Data:
EPS	$	0.86		$	1.65	$	0.11		$	0.15	$	0.10		$	0.13		$	0.13
FFO		1.06			1.21		0.24			0.29		0.22			0.27			0.24
GOS		0.34			0.91		-			-		-			-			0.03
FFO+GOS		1.40			2.13		0.24			0.29		0.22			0.27			0.27

Weighted Average Shares (diluted)		70,651			67,159		70,481			70,481		70,481			70,481			70,596

Balance Sheet Items:
Real estate, net	$	790,319		$	739,886	$	812,438		$	815,710	$	787,398		$	790,319		$	803,780
Other assets, net		213,147			215,431		184,622			186,647		196,664			213,147			230,813
Total assets, net		1,003,466			955,317		997,060			1,002,357		984,062			1,003,466			1,034,593
Total liabilities, net		112,848			33,355		138,192			137,517		107,907			112,848			131,517
Shareholders' equity		890,618			921,962		858,868			864,840		876,155			890,618			903,076

* See page 22 for a reconciliation of Net Income to FFO and FFO+GOS and definitions of FFO and FFO+GOS

Franklin Street Properties Corp. Third Quarter 2008

Management’s Key Operating Measures

* See page 22 for a reconciliation of Net Income to FFO and FFO+GOS (Total Profits) and definitions of FFO and FFO+GOS (Total Profits)

Franklin Street Properties Corp. Third Quarter 2008

EPS, FFO, GOS and FFO+GOS*

*See page 22 for a reconciliation of Net Income to FFO and FFO+GOS and definitions of FFO and FFO+GOS

Franklin Street Properties Corp. Third Quarter 2008

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)

	Twelve Months Ended					Three Months Ended
	12/31/07			12/31/06		9/30/08			6/30/08		3/31/08			12/31/07			9/30/07

Revenue:
Rental	$	100,961		$	83,147	$	27,927		$	27,700	$	26,656		$	25,851		$	27,109
Related party revenue:
Syndication fees		8,986			10,693		304			3,257		205			1,896			687
Transaction fees		9,898			11,262		300			3,138		168			2,452			604
Management fees and interest income from loans		7,030			2,083		380			423		561			1,854			1,497
Other		118			60		13			19		20			34			37
Total revenue		126,993			107,245		28,924			34,537		27,610			32,087			29,934

Expenses:
Real estate operating expenses		26,171			19,045		7,159			7,116		6,698			7,145			7,151
Real estate taxes and insurance		16,761			12,282		4,590			4,505		4,279			4,046			4,398
Depreciation and amortization		29,334			20,893		7,666			7,591		7,359			7,624			7,756
Selling, general and administrative		7,466			8,518		1,927			2,621		2,009			-			1,787
Commissions		4,737			5,522		208			1,654		158			1,017			406
Interest		7,684			2,449		1,108			1,051		1,192			1,563			1,823
Total expenses		92,153			68,709		22,658			24,538		21,695			23,185			23,321

Income before interest income, equity in earnings (losses) of non-consolidated REITs and taxes		34,840			38,536		6,266			9,999		5,915			8,902			6,613
Interest income		2,377			2,998		177			176		303			514			650
Equity in earnings (losses) of non-consolidated REITs		(464	)		845		679			694		793			147			147

		36,753			42,379		7,122			10,869		7,011			9,563			7,410
Income tax expense (benefit)		647			839		(297	)		335		(375	)		359			(206	)

Income from continuing operations		36,106			41,540		7,419			10,534		7,386			9,204			7,616
Income from discontinued operations		1,190			7,951		-			-		-			(70	)		(72	)
Gain on sale of assets		23,789			61,438		-			-		-			257			1,942

Net income	$	61,085		$	110,929	$	7,419		$	10,534	$	7,386		$	9,391		$	9,486

Weighted average number of shares outstanding, basic and diluted		70,651			67,159		70,481			70,481		70,481			70,481			70,596

Earnings per share, basic and diluted, attributable to:
Continuing operations	$	0.51		$	0.62	$	0.11		$	0.15	$	0.10		$	0.13		$	0.11
Discontinued operations		0.01			0.12		-			-		-						-
Gains on sales of assets		0.34			0.91		-			-		-			-			0.02
Net income per share, basic and diluted	$	0.86		$	1.65	$	0.11		$	0.15	$	0.10		$	0.13		$	0.13

Franklin Street Properties Corp. Third Quarter 2008

Condensed Consolidated Balance Sheet

(in thousands)

	September 30,			June 30,			March 31,			December 31,
	2008			2008			2008			2007
Assets:
Real estate assets:
Land	$	100,440		$	100,440		$	99,140		$	99,140
Buildings and improvements		780,276			778,107			745,488			743,027
Fixtures and equipment		301			219			219			212
		881,017			878,766			844,847			842,379
Less accumulated depreciation		68,579			63,056			57,449			52,060
Real estate assets, net		812,438			815,710			787,398			790,319

Acquired real estate leases, net		28,024			30,905			30,826			33,695
Investment in non-consolidated REITs		83,896			84,609			86,235			85,663
Assets held for syndication, net		13,335			14,039			24,593			26,310
Cash and cash equivalents		34,527			34,386			32,227			46,988
Restricted cash		336			336			336			336
Tenant rent receivables, net		1,174			989			1,694			1,472
Straight-line rent receivable, net		8,255			7,894			7,638			7,387
Prepaid expenses		2,922			1,061			1,654			1,395
Other assets		1,475			1,588			1,540			406
Office computers and furniture, net		313			331			340			309
Deferred leasing commissions, net		10,365			10,509			9,581			9,186
Total assets	$	997,060		$	1,002,357		$	984,062		$	1,003,466

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	105,118		$	109,995		$	84,750		$	84,750
Accounts payable and accrued expenses		24,945			18,984			16,633			20,255
Accrued compensation		1,652			1,845			415			1,564
Tenant security deposits		1,823			1,810			1,923			1,874
Acquired unfavorable real estate leases, net		4,654			4,883			4,186			4,405
Total liabilities		138,192			137,517			107,907			112,848

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		-			-			-			-
Common stock		7			7			7			7
Additional paid-in capital		889,019			889,019			889,019			889,019
Earnings (distributions) in excess of accumulated earnings/distributions		(30,158	)		(24,186	)		(12,871	)		1,592
Total stockholders’ equity		858,868			864,840			876,155			890,618
Total liabilities and stockholders’ equity	$	997,060		$	1,002,357		$	984,062		$	1,003,466

Franklin Street Properties Corp. Third Quarter 2008

Condensed Consolidated Statement of Cash Flows

(in thousands)

	Nine Months ended September 30						Twelve Months ended December 31

	2008			2007			2007			2006

Cash flows from operating activities:
Net income	$	25,340		$	51,694		$	61,085		$	110,929
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on assets sold		-			(23,532	)		(23,789	)		(61,438	)
Depreciation and amortization expense		22,649			22,818			30,563			24,951
Amortization of above market lease		3,376			3,706			4,948			7,138
Equity in earnings (losses) from non-consolidated REITs		(2,167	)		619			472			(1,043	)
Distributions from non-consolidated REITs		3,838			1,199			1,806			783
Increase in bad debt reserve		79			-			(3	)		83
Shares issued as compensation		-			-			-			-
Changes in operating assets and liabilities:
Restricted cash		-			425			425			(300	)
Tenant rent receivables, net		219			1,053			971			(1,076	)
Straight-line rents, net		(854	)		(2,924	)		(3,359	)		(1,334	)
Prepaid expenses and other assets, net		(1,474	)		(717	)		374			(327	)
Accounts payable and accrued expenses		3,862			572			1,884			1,174
Accrued compensation		88			(1,273	)		(1,079	)		752
Tenant security deposits		(51	)		179			130			451
Payment of deferred leasing commissions		2,434			(2,905	)		(4,314	)		(5,880	)

Net cash provided by operating activities		52,471			50,914			70,114			74,863

Cash flows from investing activities:
Cash acquired through issuance of common stock in merger transaction		-			-			-			13,849
Purchase of real estate assets, office computers and furniture, capitalized merger costs		(37,214	)		(75,887	)		(77,894	)		(159,351	)
Purchase of acquired favorable and unfavorable leases		(2,067	)		(3,726	)		(3,726	)		(6,801	)
Investment in non-consolidated REITs		(10	)		(18	)		(82,831	)		(4,137	)
Investment in loan receivable		(1,125	)		-			-			-
Redemption of certificate of deposit		-			5,143			5,143			(5,143	)
Merger costs paid		-			-			-			(838	)
Changes in deposits on real estate assets		-			-			-			(4,300	)
Investment in assets held for syndication, net		12,235			(112,618	)		(22,093	)		-
Proceeds received on sales of real estate assets		-			85,673			93,102			173,183

Net cash used in investing activities		(28,181	)		101,433			(85,299	)		6,462

Cash flows from financing activities:
Distributions to stockholders		(57,089	)		(65,813	)		(87,662	)		(80,948	)
Purchase of treasury shares		-			(4,767	)		(4,767	)		-
Offering costs		-			-			-			(119	)
Borrowings (repayments) under bank note payable, net		20,368			104,550			84,750			-
Deferred financing costs		(30	)		(7	)		(121	)		-

Net cash (used in) provided by financing activities		(36,751	)		33,963			(7,800	)		(81,067	)

Net increase (decrease) in cash and cash equivalents		(12,461	)		(16,556	)		(22,985	)		258

Cash and cash equivalents, beginning of period		46,988			69,973			69,973			69,715

Cash and cash equivalents, end of period	$	34,527		$	53,417		$	46,988		$	69,973

Franklin Street Properties Corp. Third Quarter 2008

Segment Information*

($ in thousands except per share amounts)

	Three Months Ended September 30, 2008									Three Months Ended September 30, 2007									Nine Months Ended September 30, 2008									Nine Months Ended September 30, 2007
	Real Estate			Investment Banking			Total			Real Estate			Investment Banking			Total			Real Estate			Investment Banking			Total			Real Estate			Investment Banking		Total
Revenue:
Rental Income	$	27,927		$	-		$	27,927		$	27,109		$	-		$	27,109		$	82,283		$	-		$	82,283		$	75,109		$	-	$	75,109
Syndication Fees		-			304			304			-			687			687			-			3,766			3,766			-			7,090		7,090
Transaction Fees		-			300			300			-			604			604			-			3,606			3,606			-			7,446		7,446
Management Fees & Interest Income		380			-			380			1,497			-			1,497			1,364			-			1,364			5,176			-		5,176
Other Income		13			-			13			2			35			37			52			-			52			49			35		84
Total Revenue		28,320			604			28,924			28,608			1,326			29,934			83,699			7,372			91,071			80,334			14,571		94,906

Expenses
Rental Operating Expenses		7,159			-			7,159			7,151			-			7,151			20,973			-			20,973			19,026			-		19,026
Real Estate Taxes and Insurance		4,590			-			4,590			4,398			-			4,398			13,374			-			13,374			12,490			-		12,490
Depreciaton and Amortization		7,628			37			7,665			7,726			30			7,756			22,510			106			22,616			21,619			91		21,710
Selling, general and administrative		945			982			1,927			800			987			1,787			3,375			3,183			6,558			2,598			3,077		5,675
Commissions and Broker Expenses		(1	)		209			208			-			406			406			-			2,020			2,020			-			3,720		3,720
Interest & Commitment Fees		1,108			-			1,108			1,823			-			1,823			3,351			-			3,351			6,121			-		6,121
Total Expenses		21,429			1,228			22,657			21,898			1,423			23,321			63,583			5,309			68,892			61,854			6,888		68,742

Income before Equity, Interest and Taxes		6,890			(624	)		6,266			6,710			(98	)		6,612			20,115			2,064			22,179			18,481			7,683		26,164
Interest Income		167			10			177			634			16			650			629			28			657			1,818			45		1,863
Equity Income SAR's		680			-			680			147			-			147			2,167			-			2,167			(611	)		-		(611	)
Income before Taxes		7,737			(614	)		7,123			7,491			(81	)		7,409			22,911			2,092			25,003			19,689			7,728		27,417
Income Taxes		64			(361	)		(297	)		55			(261	)		(207	)		182			(519	)		(337	)		162			352		514
Income from continuing operations		7,673			(253	)		7,420			7,436			180			7,616			22,729			2,611			25,340			19,527			7,376		26,903
Income from discontinued operations		-			-			-			(72	)		-			(72	)		-			-			-			1,259			-		1,259
Gain on sale of assets		-			-			-			1,942			-			1,942			-			-			-			23,532			-		23,532
Net Income	$	7,673		$	(253	)	$	7,420		$	9,306		$	180		$	9,486		$	22,729		$	2,611		$	25,340		$	44,318		$	7,376	$	51,694


Funds from Operations (FFO)*
Net income	$	7,673		$	(253	)	$	7,420		$	9,306		$	180		$	9,486		$	22,729		$	2,611		$	25,340		$	44,318		$	7,376	$	51,694
Gain on sale of assets, net		-			-			-			(1,942	)		-			(1,942	)		-			-			-			(23,532	)		-		(23,532	)
Equity in income of SARs		(680	)		-			(680	)		(106	)		-			(106	)		(2,167	)		-			(2,167	)		619			-		619
Cash received from SARs		1,561			-			1,561			476			-			476			3,838			-			3,838			1,199			-		1,199
Depreciation and amortization		8,747			37			8,784			8,977			30			9,007			25,888			106			25,994			26,405			91		26,496
Funds From Operations (FFO)*		17,301			(216	)		17,085			16,712			210			16,922			50,288			2,717			53,005			49,009			7,467		56,476

EPS	$	0.11		$	(0.00	)	$	0.11		$	0.13		$	0.00		$	0.13		$	0.32		$	0.04		$	0.36		$	0.63		$	0.10	$	0.73
FFO per Share*	$	0.25		$	(0.00	)	$	0.24		$	0.24		$	0.00		$	0.24		$	0.71		$	0.04		$	0.75		$	0.69		$	0.11	$	0.80

Weighted Average Shares								70,481									70,596									70,481								70,709

*See page 22 for a reconciliation of Net Income to FFO and FFO+GOS and definitions of FFO and FFO+GOS

Franklin Street Properties Corp. Third Quarter 2008

Cash and GAAP NOI*

(in thousands)

Property NOI Cash

			Three Months Ended						Nine Months Ended		Three Months Ended												Twelve Months Ended

Region	Division	S.F.	3/31/08		6/30/08		9/30/08		9/30/08		3/31/07			6/30/07			9/30/07			12/31/07			2007 Total

Eastern	Mideast	1,028	$	3,321	$	3,230	$	3,059	$	9,610	$	2,000		$	2,324		$	3,191		$	3,047		$	10,562

Midwest	East North Central	597		1,536		1,443		1,400		4,379		1,446			1,355			1,405			1,617			5,823
	West North Central	349		1,132		1,228		1,381		3,741		1,077			1,083			1,115			1,125			4,400
		946		2,668		2,671		2,781		8,120		2,523			2,438			2,520			2,742			10,223

South	Southeast	600		2,403		2,507		2,370		7,280		2,365			2,399			2,428			2,406			9,598
	Southwest	1,489		4,574		4,850		4,954		14,378		4,343			3,881			3,842			4,465			16,531
		2,089		6,977		7,357		7,324		21,658		6,708			6,280			6,270			6,871			26,129

West	Mountain	792		2,996		2,969		3,019		8,984		2,173			2,356			2,770			2,389			9,688
	Pacific	299		322		359		313		994		(72	)		(64	)		(56	)		(38	)		(230	)
		1,091		3,318		3,328		3,332		9,978		2,101			2,292			2,714			2,351			9,458

Total		5,154	$	16,284	$	16,586	$	16,496	$	49,366	$	13,332		$	13,334		$	14,695		$	15,011		$	56,372

Property NOI GAAP

			Three Months Ended						Nine Months Ended		Three Months Ended												Twelve Months Ended

Region	Division	S.F.	3/31/08		6/30/08		9/30/08		9/30/08		3/31/07			6/30/07			9/30/07			12/31/07			2007 Total

Eastern	Mideast	1,028	$	3,339	$	3,289	$	3,131	$	9,759	$	2,089		$	2,334		$	3,289		$	3,139		$	10,851

Midwest	East North Central	597		1,619		1,479		1,496		4,594		1,562			1,501			1,520			1,725			6,308
	West North Central	349		1,043		1,157		1,279		3,479		952			981			1,157			1,148			4,238
		946		2,662		2,636		2,775		8,073		2,514			2,482			2,677			2,873			10,546

South	Southeast	600		2,342		2,410		2,263		7,015		2,622			2,637			2,621			2,284			10,164
	Southwest	1,489		4,708		4,933		5,095		14,736		4,797			4,096			4,008			4,574			17,475
		2,089		7,050		7,343		7,358		21,751		7,419			6,733			6,629			6,858			27,639

West	Mountain	792		3,139		3,190		3,231		9,560		2,549			2,613			2,952			2,542			10,656
	Pacific	299		345		385		347		1,077		(68	)		(47	)		(14	)		(22	)		(151	)
		1,091		3,484		3,755		3,578		10,637		2,481			2,566			2,938			2,520			10,504

Total		5,154	$	16,535	$	16,843	$	16,842	$	50,220	$	14,503		$	14,115		$	15,533		$	15,390		$	59,541

*See page 23 for a reconciliation of Net Income to NOI.

Franklin Street Properties Corp. Third Quarter 2008

Capital Analysis and Capital Expenditures

(in thousands, except per share amounts)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2008			2008			2008			2007			2007
Market Data:
Shares Outstanding		70,481			70,481			70,481			70,481			70,481
Closing market price per share	$	13.00		$	12.64		$	14.32		$	14.80		$	17.25
Market capitalization	$	916,249		$	890,876		$	1,009,284		$	1,043,114		$	1,215,792

Dividend Data:
Total dividends paid	$	13,391		$	21,849		$	21,849		$	21,849		$	21,938
Common dividend per share	$	0.19		$	0.31		$	0.31		$	0.31		$	0.31
Quarterly dividend as a % of FFO*		78.4	%		107.7	%		139.7	%		117.6	%		129.7	%

Liquidity:
Cash and cash equivalents	$	34,527		$	34,386		$	32,227		$	46,988		$	53,417
Revolving credit facilities:
Gross potential available under current credit facilities		250,000			250,000			250,000			250,000			150,000
Less:
Outstanding balance		(105,118	)		(109,955	)		(84,750	)		(84,750	)		(104,550	)
Total Liquidity	$	179,409		$	174,431		$	197,477		$	212,238		$	98,867

Owned Property Capital Expenditures

Tenant Improvement Costs and Leasing Commissions

	Twelve Months Ended				Three Months Ended
	12/31/07		12/31/06		9/30/08		6/30/08		3/31/08		12/31/07
Tenant improvements	$	6,596	$	13,471	$	1,667	$	560	$	2,337	$	998
Deferred leasing costs		4,314		5,881		305		1,313		817		1,409
Building improvements		4,504		1,308		740		372		197		908
Increase to investments in building		-		1,220		-		-		-		-
Total	$	15,414	$	21,880	$	2,712	$	2,245	$	3,351	$	3,315

Franklin Street Properties Corp. Third Quarter 2008

Portfolio Overview

	9/30/08	6/30/08	3/31/08	12/31/07	9/30/07
Owned portfolio of commercial real estate:
Number of properties	27	27	26	26	27
Square feet	5,153,737	5,153,396	4,997,128	4,998,280	5,066,813
Leased percentage	93%	93%	93%	93%	91%

Investments in non-consolidated commercial real estate:
Number of properties	2	2	3	3	3
Square feet	1,461,224	1,459,420	1,615,395	1,614,380	1,614,267
Leased percentage	79%	78%	80%	92%	90%

Single Asset REITs (SARs) managed:
Number of properties	10	10	9	9	9
Square feet	2,683,105	2,682,931	2,682,770	2,682,770	2,341,274
Leased percentage	92%	93%	93%	92%	89%

Total owned, investments and managed properties:
Number of properties	39	39	38	38	39
Square feet	9,298,066	9,295,747	9,295,293	9,295,430	9,022,354
Leased percentage	90%	91%	91%	93%	90%

Franklin Street Properties Corp. Third Quarter 2008

Portfolio Overview

(as of September 30, 2008)

Owned:
Name	City	State	Region	S.F.
Park Seneca	Charlotte	NC	East	109,550
Forest Park	Charlotte	NC	East	62,212
Meadow Point	Chantilly	VA	East	134,850
Innsbrook	Glen Allen	VA	East	297,789
East Baltimore	Baltimore	MD	East	325,298
Bollman Place (1)	Savage	MD	East	98,745
Southfield Centre	Southfield	MI	MidWest	214,697
Northwest Point	Elk Grove Village	IL	MidWest	176,848
River Crossing	Indianapolis	IN	MidWest	205,059
Timberlake	Chesterfield	MO	MidWest	232,766
Timberlake East	Chesterfield	MO	MidWest	116,312
Blue Lagoon Drive	Miami	FL	South	212,619
One Overton Place	Atlanta	GA	South	387,267
Willow Bend Office Center	Plano	TX	South	116,622
Park Ten LP	Houston	TX	South	155,715
Addison Circle	Addison	TX	South	293,787
Collins Crossing	Richardson	TX	South	298,766
Eldridge Green	Houston	TX	South	248,399
Park Ten Phase II	Houston	TX	South	156,746
Liberty Plaza	Addison	TX	South	218,934
Centennial Technology Center	Colorado Springs	CO	West	110,730
380 Interlocken	Broomfield	CO	West	240,184
Greenwood Plaza	Englewood	CO	West	199,077
390 Interlocken	Broomfield	CO	West	241,516
Hillview Center	Milpitas	CA	West	36,288
Federal Way	Federal Way	WA	West	117,010
Montague Business Center	San Jose	CA	West	145,951

Total				5,153,737

Managed:
Name	City	State	Region	S.F.
1441 Main Street	Columbia	SC	East	267,549
303 East Wacker Drive	Chicago	IL	MidWest	842,717
505 Waterford	Plymouth	MN	MidWest	256,348
50 South Tenth Street	Minneapolis	MN	MidWest	498,768
Grand Boulevard	Kansas City	MO	MidWest	532,371
Satellite Place	Duluth	GA	South	132,866
5601 Executive Drive	Irving	TX	South	152,121
Galleria North	Dallas	TX	South	379,518
Energy Tower I	Houston	TX	South	325,796
Phoenix Tower	Houston	TX	South	618,507
Highland Place I	Centennial	CO	West	137,768

Total (2)				4,144,329

(1) Industrial property, all others are office properties

(2) Excludes property under construction in Broomfield, Co of approximately 285,000 square feet

Properties by Division/Region
($ in thousands)
				NBV (1)	% Leased
	# of Properties	Square Feet	% of Portfolio	9/30/2008	9/30/2008

East Region Total	6	1,028,444	20.0	$140,263	97.56
East North Central Division	3	596,604	11.6	84,624	95.02
West North Central	2	349,078	6.8	56,832	100.00
Midwest Region Total	5	945,682	18.4	141,456	97.00
Southeast	2	599,886	11.6	127,443	94.69
Southwest	7	1,488,969	28.9	235,445	91.22
South Region Total	9	2,088,855	40.5	362,888	92.21
Mountain	4	791,507	15.4	131,340	95.64
Pacific	3	299,249	5.8	36,490	57.24
West Region Total	7	1,090,756	21.2	167,830	85.10

Grand Total	27	5,153,737	100	812,438	92.63

(1) NBV is for real estate assets, excluding intangibles

Franklin Street Properties Corp. Third Quarter 2008

Owned Portfolio Property List

(in thousands)						NBV (1)	% Leased
Region	Division	Name	City	State	S.F.	9/30/08	9/30/08

West	Pacific	Hillview Center	Milpitas	CA	36	$ 4,336	100.0%
West	Pacific	Montague Business Center	San Jose	CA	146	17,081	81.1%
West	Mountain	Centennial Technology Center	Colorado Springs	CO	111	12,510	94.3%
West	Mountain	380 Interlocken	Broomfield	CO	240	43,673	88.3%
West	Mountain	Greenwood Plaza	Englewood	CO	199	30,526	100.0%
West	Mountain	390 Interlocken	Broomfield	CO	242	44,631	100.0%
South	Southeast	Blue Lagoon Drive	Miami	FL	213	49,572	100.0%
South	Southeast	One Overton Place	Atlanta	GA	387	77,872	91.8%
MidWest	East North Central	Northwest Point	Elk Grove Village	IL	177	31,728	100.0%
MidWest	East North Central	River Crossing	Indianapolis	IN	205	37,622	98.2%
East	Mideast	East Baltimore	Baltimore	MD	325	58,027	96.1%
East	Mideast	Bollman Place	Savage	MD	99	5,172	100.0%
MidWest	East North Central	Southfield Centre	Southfield	MI	215	15,274	87.9%
MidWest	West North Central	Timberlake	Chesterfield	MO	233	37,617	100.0%
MidWest	West North Central	Timberlake East	Chesterfield	MO	116	19,215	100.0%
East	Mideast	Park Seneca	Charlotte	NC	110	7,956	88.8%
East	Mideast	Forest Park	Charlotte	NC	62	6,477	100.0%
South	Southwest	Willow Bend Office Center	Plano	TX	117	18,206	61.2%
South	Southwest	Park Ten LP	Houston	TX	156	19,444	91.6%
South	Southwest	Addison Circle	Addison	TX	294	49,267	89.5%
South	Southwest	Collins Crossing	Richardson	TX	299	44,348	100.0%
South	Southwest	Eldridge Green	Houston	TX	248	45,032	100.0%
South	Southwest	Park Ten Phase II	Houston	TX	157	32,698	97.8%
South	Southwest	Liberty Plaza	Addison	TX	219	26,450	82.5%
East	Mideast	Meadow Point	Chantilly	VA	135	18,959	100.0%
East	Mideast	Innsbrook	Glen Allen	VA	298	43,672	100.0%
West	Pacific	Federal Way	Federal Way	WA	117	15,073	14.2%
					5,154	$ 812,438	92.60%
(1) NBV is for real estate assets, excluding intangibles

Franklin Street Properties Corp. Third Quarter 2008

Twenty Largest Tenants

(as of September 30, 2008)

	Tenant Name	Type of Industry	Square Feet	% of Total Sq. Feet

1	Capital One Services, Inc.*	Financial Services/Credit card/Finance	297,789	6.0%
2	Citgo Petroleum Corporation	Oil and Gas	248,399	5.0%
3	Tektronix Texas, LLC	Systems Technology	241,372	4.8%
4	Burger King Corporation	Restaurant/Food	212,619	4.3%
5	New Era of Networks, Inc. (Sybase)	Technology	199,077	4.0%
6	Citigroup Credit Services, Inc.**	Banking/Credit Card/Finance	176,848	3.5%
7	RGA Reinsurance Company	Reinsurance	171,120	3.4%
8	International Business Machines Corp.	Computer Consulting	138,033	2.8%
9	Murphy Exploration & Production Company	Crude Oil and Natural Gas Exploration	133,786	2.7%
10	CACI Technologies, Inc.	Defense Consulting	132,896	2.7%
11	Maines Paper and Food Service, Inc.	Food Distribution	98,745	2.0%
12	Jones Lang Lasalle	Real Estate Services	92,827	1.9%
13	AMDOCS, Inc.	Telephone Technology	91,928	1.8%
14	Ober Kaler Grimes	Law Firm	90,811	1.8%
15	County of Santa Clara	Executive Legislature and General Government	90,467	1.8%
16	Vail Corp, dba Vail Resorts	Ski Area Operator	83,620	1.7%
17	Corporate Holdings, LLC	Real Estate Holding Company	81,818	1.6%
18	Technip-Coflexip USA Holdings, Inc.	Oil Engineering/Construction Services	79,496	1.6%
19	Noble Royalties, Inc.	Oil Royalty Traders	78,344	1.6%
20	Cooley Godward LLP	Law Firm	72,850	1.5%
		Total Square Footage	2,812,845	56.3%

* Capital One sublet all of its space to LandAmerica Financial Group until 2009, and LandAmerica has a direct lease thereafter until 2016. LandAmerica provides title insurance and other financial products.

** The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.

Franklin Street Properties Corp. Third Quarter 2008

Commercial Portfolio Lease Expirations by Square Feet

(as of September 30, 2008)

Year	Total Square Feet	% of Square Feet Commercial

2008	91,653	1.8%
2009	555,808	10.8%
2010	770,393	15.0%
2011	372,518	7.2%
2012	748,427	14.5%
2013	346,513	6.7%
2014	476,093	9.2%
2015	146,487	2.8%
2016	744,255	14.4%
2017	160,794	3.1%
2018	276,844	5.5%
2019	83,620	1.6%
Vacant 9/30/08	380,332	7.4%

Total Commercial	5,153,737	100.0%

Franklin Street Properties Corp. Third Quarter 2008

Acquisition and Disposition Detail

($ in thousands)

Acquisitions:
	State/Region	Property Type	Square Feet	Date Acquired	Purchase Price
2008
Park Ten Phase II	TX/South	Office	156,746	5/15/08	$35,079

2007
East Baltimore	MD/East	Office	325,298	6/13/07	63,592

2006
Liberty Plaza	TX/South	Office	218,934	2/24/06	26,472
Innsbrook	VA/East	Office	297,789	5/1/05	48,240
380 Interlocken	CO/West	Office	240,184	5/1/06	47,587
Blue Lagoon Drive	FL/South	Office	212,619	5/1/06	56,051
Eldridge Green	TX/South	Office	248,399	5/1/06	53,435
Willow Bend Office Center	TX/South	Office	116,622	5/1/06	19,713
One Overton Place	GA/South	Office	387,267	6/27/06	85,284
390 Interlocken	CO/West	Office	241,516	12/21/06	46,459

2005
Greenwood Plaza	CO/West	Office	199,077	2/24/05	44,116
Addison Circle	TX/South	Office	293,787	5/1/05	56,295
Royal Ridge	GA	Office	161,366	5/1/05	27,391
Collins Crossing	TX/South	Office	298,766	5/1/05	53,667
Montague Business Center	CA/West	Office	145,951	5/1/05	20,147
River Crossing	IN/Midwest	Office	205,059	7/6/05	42,016

Dispositions:
				Date	Net Sales	Gain (Loss)
2007	State/Region	Property Type	Square Feet	Acquired	Proceeds	on Sale
Piedmont Center	SC/East	Office	144,029	1/31/07	$5,830	($4,849)
Royal Ridge	GA/South	Office	161,366	6/21/07	32,535	6,601
Goldentop Technology Center	CA/West	Office	141,405	6/27/07	36,199	14,741
Lyberty Way	MA/East	Office	104,711	7/16/07	10,861	1,942
Austin N.W. (Canyon Hills)	TX/South	Office	68,533	12/20/07	10,429	257

2006
Merrywood Apartments	TX/South	Apt	231,363	5/24/06	18,204	2,373
Santa Clara	CA/West	Office	40,280	5/31/06	8,188	1,557
Fair Lakes	VA/East	Office	210,613	5/31/06	61,412	24,240
One Technology Drive	MA/East	Industrial	188,000	8/10/06	15,995	6,366
Plaza Ridge	VA/East	Office	158,016	11/16/06	58,022	27,941
North Andover Office Park	MA/East	Office	92,913	11/21/06	11,362	3,810

2005
Blue Ravine	CA/West	Office	47,058	7/13/05	4,764	(1,124)
Silverside Plantation	LA/South	Apt	223,812	9/19/05	22,280	7,265
Gateway Crossing	MD/East	Office	188,819	9/20/05	25,949	6,807
Essex Lane Associates	TX/South	Apt	118,798	10/5/05	13,752	5,112
Gael Apartments	TX/South	Apt	187,338	10/5/05	22,715	5,151
Telecom Business Center	CA/West	Office	101,726	12/8/05	22,570	6,943

Franklin Street Properties Corp. Third Quarter 2008

Investment Banking Performance

Franklin Street Properties Corp. Third Quarter 2008

FFO and FFO+GOS Reconciliations and Definitions

(in thousands except per share amounts)

	Twelve Months Ended						Three Months Ended
	12/31/07			12/31/06			9/30/08			6/30/08			3/31/08			12/31/07			9/30/07


Net Income	$	61,085		$	110,929		$	7,419		$	10,534		$	7,386		$	9,391		$	9,486
(Gain) Loss on sale of properties		(23,789	)		(61,438	)		-			-			-			(257	)		(1,942	)
GAAP (income) loss from non-consolidated REITs		472			(1,043	)		(680	)		(694	)		(793	)		(148	)		(105	)
Distributions from non-consolidated REITs		1,806			783			1,561			1,731			546			607			476
Depreciation of real estate & intangible amortization		35,475			32,047			8,784			8,712			8,498			8,979			9,007
Funds from Operations (FFO)		75,049			81,278			17,084			20,283			15,637			18,572			16,922
Plus gains on sales of properties (GOS)		23,789			61,438			-			-			-			257			1,942
FFO+GOS (Total Profits)	$	98,838		$	142,716		$	17,084		$	20,283		$	15,637		$	18,829		$	18,864

Per Share Data:
EPS	$	0.86		$	1.65		$	0.11		$	0.15		$	0.10		$	0.13		$	0.13
FFO		1.06			1.21			0.24			0.29			0.22			0.27			0.24
GOS		0.34			0.91			-			-			-			-			0.03
FFO+GOS		1.40			2.13			0.24			0.29			0.22			0.27			0.27

Weighted Average Shares (basic and diluted)		70,651			67,159			70,481			70,481			70,481			70,481			70,596

Definition of Funds From Operations (“FFO”), and FFO plus Gains on Sales (“FFO+GOS”)

The Company evaluates the performance of its reportable segments based on several measures including, Funds From Operations (“FFO”) and FFO plus Gains on Sales (“FFO+GOS or Total Profits*”) as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs. The Company defines FFO+GOS as FFO as defined above, plus gains (or losses) from sales of properties and provisions for assets held for sale, if applicable.

FFO and FFO+GOS should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company’s financial performance, nor as alternatives to cash flows from operating activities (determined in accordance with GAAP), nor as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define these terms in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO and FFO+GOS should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.

Franklin Street Properties Corp. Third Quarter 2008

Reconciliation of Net Income to NOI

(in thousands)

										Nine Months															2007
	31-Mar-08			30-Jun-08			30-Sep-08			30-Sep-08			31-Mar-07			30-Jun-07			30-Sep-07			31-Dec-07			Total
Property NOI Reconciliation
Net Income	$	7,386		$	10,535		$	7,420		$	25,340		$	9,732		$	32,476		$	9,486		$	9,391		$	61,085
Add (deduct):		-			-			-
Investment banking segment net income		488			(3,352	)		253			(2,611	)		(3,184	)		(4,012	)		(180	)		(2,063	)		(9,439	)
Management fees (before elimination)		(545	)		(533	)		(549	)		(1,627	)		(610	)		(490	)		(438	)		(586	)		(2,124	)
Depreciation and Amortization		7,326			7,556			7,628			22,510			7,147			6,747			7,726			7,581			29,200
Amortization of favorable leases		1,139			1,120			1,118			3,378			1,271			1,173			1,137			1,242			4,823
Selling, general and administrative		895			1,534			945			3,375			857			941			800			841			3,440
Interest expense		1,192			1,051			1,108			3,351			2,676			1,622			1,823			1,563			7,684
Interest income		(612	)		(360	)		(314	)		(1,287	)		(2,234	)		(2,152	)		(1,971	)		(2,118	)		(8,476	)
Equity in earnings of nonconsolidated REITs		(793	)		(694	)		(680	)		(2,167	)		616			142			(147	)		(147	)		464
Income from discontinued operations		-			-			-			-			(669	)		(662	)		72			70			(1,190	)
Gain on sale of assets		-			-			-			-			-			(21,590	)		(1,942	)		(257	)		(23,789	)
Non-property specific income and expenses, net		59			(14	)		(87	)		(42	)		(1,099	)		(77	)		(833	)		(127	)		(2,136	)
GAAP Property NOI		16,535			16,843			16,842			50,220			14,503			14,115			15,533			15,390			59,541
Straight-line rent		(250	)		(257	)		(346	)		(853	)		(1,171	)		(781	)		(838	)		(379	)		(3,169	)
Cash Property NOI	$	16,285		$	16,586		$	16,496		$	49,367		$	13,332		$	13,334		$	14,695		$	15,011		$	56,372

Franklin Street Properties Corp. Third Quarter 2008