EX-99.1 2 ex99-1.htm
Exhibit 99.1
Supplemental Operating and Financial Data
March 31, 2009
First Quarter 2009
Franklin Street Properties Corp.
401 Edgewater Place
Suite 200
Wakefield, MA 01880
781-557-1300
www.franklinstreetproperties.com

Table of Contents

| Page
Company Overview | 3
Key Financial Data |
Financial Highlights | 6
Management’s Key Operating Measures | 7
Income Statements | 8
EPS, FFO, GOS and FFO+GOS | 9
Balance Sheets | 10
Cash Flow Statements | 11
Segment Information | 12
Property Net Operating Income (NOI): Cash and GAAP Basis | 13
Capital Analysis | 14
Portfolio Overview |
Property by Form of FSP Participation | 15
Regional Analysis, Map | 16
Owned Property List | 17
Capital Expenditures | 18
Tenant Analysis |
Twenty Largest Tenants, Industry Profile | 19
Lease Expirations by Square Feet | 20
Transactional Drivers |
Capital Recycling: Acquisitions and Dispositions | 21
Investment Banking Performance | 22
FFO and FFO+GOS Reconciliations | 23
FFO and FFO+GOS Definitions | 24
NOI Reconciliation | 25

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 securities 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. March 31, 2009
2

Company Overview
Overview
Franklin Street Properties Corp. (“FSP”) (NYSE Amex: 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 shareholders 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’s strategy is to employ modest leverage to accelerate its growth and capitalize on market conditions and opportunities as they arise. 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 March 31, 2009) |
Corporate Headquarters | Wakefield, MA
Fiscal Year-End | 31-Dec
Total Properties | 29
Total Square Feet | 5.4 Million
Common Shares Outstanding | 70,480,705
Quarterly Dividend | $0.19
Dividend Yield | 6.20%
Total Market Capitalization | $867 Million
Insider Holdings | 16%

Franklin Street Properties Corp. March 31, 2009
3

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 the income from FSP’s investment banking business.

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

Franklin Street Properties Corp. March 31, 2009
4

Company Overview

Corporate Headquarters |  | Trading Symbol |  | Inquiries
401 Edgewater Place, Suite 200 |  | NYSE Amex |  | Inquires should be directed to:
(t) 781-557-1300 |  | Symbol: FSP |  | John Demeritt, Chief Financial Officer
(f) 781-246-2807 |  |  |  | 877-686-9496 or InvestorRelations@
www.franklinstreetproperties.com |  |  |  | franklinstreetproperties.com

Common Stock Data (NYSE Amex: FSP) |  |  |  |  |
| For the Three Months Ended
| 31-Mar-09 | 31-Mar-08 | 30-Jun-08 | 30-Sep-08 | 31-Dec-08
High Price | 14.88 | 15.38 | 16.09 | 14.80 | 15.00
Low Price | 9.57 | 11.50 | 12.50 | 11.25 | 8.13
Closing Price, at the end of the quarter | 12.30 | 14.32 | 12.64 | 13.00 | 14.75
Dividends paid per share – quarterly | 0.19 | 0.31 | 0.31 | 0.19 | 0.19
Closing dividend yield – annualized | 6.2% | 8.7% | 9.8% | 5.8% | 5.2%
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. March 31, 2009
5

Financial Highlights
(in thousands, except per share data)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year |
|  | For the Three Months Ended |  |  | Ended |
|  | 31-Mar-09 |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 31-Dec-08 |
Income Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | 29,818 |  |  | $ | 26,656 |  |  | $ | 27,700 |  |  | $ | 27,927 |  |  | $ | 28,915 |  |  | $ | 111,198 |
Related party revenue |  |  | 583 |  |  |  | 934 |  |  |  | 6,818 |  |  |  | 984 |  |  |  | 410 |  |  |  | 9,146 |
Other |  |  | 18 |  |  |  | 20 |  |  |  | 19 |  |  |  | 13 |  |  |  | 20 |  |  |  | 72 |
Total revenue |  |  | 30,419 |  |  |  | 27,610 |  |  |  | 34,537 |  |  |  | 28,924 |  |  |  | 29,345 |  |  |  | 120,416 |
Total expenses |  |  | 23,738 |  |  |  | 21,695 |  |  |  | 24,538 |  |  |  | 22,658 |  |  |  | 23,548 |  |  |  | 92,439 |
Income before interest income, equity in earnings (losses) in non-consolidated REITs and taxes |  |  | 6,681 |  |  |  | 5,915 |  |  |  | 9,999 |  |  |  | 6,266 |  |  |  | 5,797 |  |  |  | 27,977 |
Interest income |  |  | 36 |  |  |  | 303 |  |  |  | 176 |  |  |  | 177 |  |  |  | 89 |  |  |  | 745 |
Equity in earnings in non-consolidated REITs |  |  | 792 |  |  |  | 793 |  |  |  | 694 |  |  |  | 680 |  |  |  | 580 |  |  |  | 2,747 |
Income before taxes |  |  | 7,509 |  |  |  | 7,011 |  |  |  | 10,869 |  |  |  | 7,123 |  |  |  | 6,466 |  |  |  | 31,469 |
Income tax expense (benefit) |  |  | (299 | ) |  |  | (375 | ) |  |  | 335 |  |  |  | (297 | ) |  |  | (153 | ) |  |  | (490 | )
Income from continuing operations |  |  | 7,808 |  |  |  | 7,386 |  |  |  | 10,534 |  |  |  | 7,420 |  |  |  | 6,619 |  |  |  | 31,959 |
Income from discontinued operations |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Gain on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net income |  | $ | 7,808 |  |  | $ | 7,386 |  |  | $ | 10,534 |  |  | $ | 7,420 |  |  | $ | 6,619 |  |  | $ | 31,959 |

FFO+GOS*: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFO |  | $ | 17,338 |  |  | $ | 15,637 |  |  | $ | 20,283 |  |  | $ | 17,085 |  |  | $ | 16,199 |  |  | $ | 69,204 |
GOS |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
FFO+GOS |  | $ | 17,338 |  |  | $ | 15,637 |  |  | $ | 20,283 |  |  | $ | 17,085 |  |  | $ | 16,199 |  |  | $ | 69,204 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.11 |  |  | $ | 0.10 |  |  | $ | 0.15 |  |  | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.45 |
FFO |  |  | 0.25 |  |  |  | 0.22 |  |  |  | 0.29 |  |  |  | 0.24 |  |  |  | 0.23 |  |  |  | 0.98 |
GOS |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
FFO+GOS |  |  | 0.03 |  |  |  | 0.22 |  |  |  | 0.29 |  |  |  | 0.24 |  |  |  | 0.23 |  |  |  | 0.98 |
Weighted Aveage Shares (diluted) |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |
Balance Sheet Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate, net |  | $ | 839,826 |  |  | $ | 787,398 |  |  | $ | 815,710 |  |  | $ | 812,438 |  |  | $ | 844,058 |  |  | $ | 844,058 |
Other assets, net |  |  | 178,682 |  |  |  | 196,664 |  |  |  | 186,647 |  |  |  | 184,622 |  |  |  | 181,375 |  |  |  | 181,375 |
Total assets, net |  |  | 1,018,508 |  |  |  | 984,062 |  |  |  | 1,002,357 |  |  |  | 997,060 |  |  |  | 1,025,433 |  |  |  | 1,025,433 |
Total liabilities, net |  |  | 175,075 |  |  |  | 107,907 |  |  |  | 137,517 |  |  |  | 138,192 |  |  |  | 176,346 |  |  |  | 176,346 |
Shareholders' equity |  |  | 843,433 |  |  |  | 876,155 |  |  |  | 864,840 |  |  |  | 858,868 |  |  |  | 848,997 |  |  |  | 848,997 |

* See page 23 for a reconciliation of Net Income to FFO and FFO+GOS and page 24 for definitions of FFO and FFO+GOS
Franklin Street Properties Corp. March 31, 2009
6

Management’s Key Operating Measures
* See page 23 for a reconciliation of Net Income to FFO and FFO+GOS (Total Profits) and page 24 for definitions of FFO and FFO+GOS
Franklin Street Properties Corp. March 31, 2009
7

Condensed Consolidated Income Statements
($ in thousands, except per share amounts)

|  | For the Three Months Ended |  |  | Year Ended |
|  | 31-Mar-09 |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 31-Dec-08 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | 29,818 |  |  | $ | 26,656 |  |  | $ | 27,700 |  |  | $ | 27,927 |  |  | $ | 28,915 |  |  | $ | 111,198 |
Related party revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Syndication fees |  |  | 10 |  |  |  | 205 |  |  |  | 3,257 |  |  |  | 304 |  |  |  | - |  |  |  | 3,766 |
Transaction fees |  |  | 28 |  |  |  | 168 |  |  |  | 3,138 |  |  |  | 300 |  |  |  | 35 |  |  |  | 3,641 |
Management fees and interest income from loans |  |  | 545 |  |  |  | 561 |  |  |  | 423 |  |  |  | 380 |  |  |  | 375 |  |  |  | 1,739 |
Other |  |  | 18 |  |  |  | 20 |  |  |  | 19 |  |  |  | 13 |  |  |  | 20 |  |  |  | 72 |
Total revenue |  |  | 30,419 |  |  |  | 27,610 |  |  |  | 34,537 |  |  |  | 28,924 |  |  |  | 29,345 |  |  |  | 120,416 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 7,280 |  |  |  | 6,698 |  |  |  | 7,116 |  |  |  | 7,159 |  |  |  | 8,026 |  |  |  | 28,999 |
Real estate taxes and insurance |  |  | 4,829 |  |  |  | 4,279 |  |  |  | 4,505 |  |  |  | 4,590 |  |  |  | 4,366 |  |  |  | 17,740 |
Depreciation and amortization |  |  | 7,914 |  |  |  | 7,359 |  |  |  | 7,591 |  |  |  | 7,666 |  |  |  | 7,744 |  |  |  | 30,360 |
Selling, general and administrative |  |  | 2,008 |  |  |  | 2,009 |  |  |  | 2,621 |  |  |  | 1,927 |  |  |  | 1,711 |  |  |  | 8,268 |
Commissions |  |  | 130 |  |  |  | 158 |  |  |  | 1,654 |  |  |  | 208 |  |  |  | 131 |  |  |  | 2,151 |
Interest |  |  | 1,577 |  |  |  | 1,192 |  |  |  | 1,051 |  |  |  | 1,108 |  |  |  | 1,570 |  |  |  | 4,921 |
Total expenses |  |  | 23,738 |  |  |  | 21,695 |  |  |  | 24,538 |  |  |  | 22,658 |  |  |  | 23,548 |  |  |  | 92,439 |
Income before interest income, equity in earnings (losses) of non-consolidated REITs and taxes |  |  | 6,681 |  |  |  | 5,915 |  |  |  | 9,999 |  |  |  | 6,266 |  |  |  | 5,797 |  |  |  | 27,977 |
Interest income |  |  | 36 |  |  |  | 303 |  |  |  | 176 |  |  |  | 177 |  |  |  | 89 |  |  |  | 745 |
Equity in earnings (losses) of non-consolidated REITs |  |  | 792 |  |  |  | 793 |  |  |  | 694 |  |  |  | 680 |  |  |  | 580 |  |  |  | 2,747 |
|  |  | 7,509 |  |  |  | 7,011 |  |  |  | 10,869 |  |  |  | 7,123 |  |  |  | 6,466 |  |  |  | 31,469 |
Income tax expense (benefit) |  |  | (299 | ) |  |  | (375 | ) |  |  | 335 |  |  |  | (297 | ) |  |  | (153 | ) |  |  | (490 | )
Income from continuing operations |  |  | 7,808 |  |  |  | 7,386 |  |  |  | 10,534 |  |  |  | 7,420 |  |  |  | 6,619 |  |  |  | 31,959 |
Income from discontinued operations |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Gain on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net income |  | $ | 7,808 |  |  | $ | 7,386 |  |  | $ | 10,534 |  |  | $ | 7,420 |  |  | $ | 6,619 |  |  | $ | 31,959 |
Weighted average number of shares outstanding, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
basic and diluted |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |
Earnings per share, basic and diluted, attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.11 |  |  | $ | 0.10 |  |  | $ | 0.15 |  |  | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.45 |
Discontinued operations |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Gains on sales of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net income per share, basic and diluted |  | $ | 0.11 |  |  | $ | 0.10 |  |  | $ | 0.15 |  |  | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.45 |

Franklin Street Properties Corp. March 31, 2009
8

EPS, FFO, GOS and FFO+GOS*
*See page 23 for a reconciliation of Net Income to FFO and FFO+GOS and page 24 for definitions of FFO and FFO+GOS
Franklin Street Properties Corp. March 31, 2009
9

Condensed Consolidated Balance Sheets
(in thousands)

|  | March 31, |  |  | March 31, |  |  | June 30, |  |  | September 30, |  |  | December 31, |
|  | 2009 |  |  | 2008 |  |  | 2008 |  |  | 2008 |  |  | 2008 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  | $ | 107,153 |  |  | $ | 99,140 |  |  | $ | 100,440 |  |  | $ | 100,440 |  |  | $ | 107,153 |
Buildings and improvements |  |  | 812,470 |  |  |  | 745,488 |  |  |  | 778,107 |  |  |  | 780,276 |  |  |  | 810,732 |
Fixtures and equipment |  |  | 299 |  |  |  | 219 |  |  |  | 219 |  |  |  | 301 |  |  |  | 299 |
|  |  | 919,922 |  |  |  | 844,847 |  |  |  | 878,766 |  |  |  | 881,017 |  |  |  | 918,184 |
Less accumulated depreciation |  |  | 80,096 |  |  |  | 57,449 |  |  |  | 63,056 |  |  |  | 68,579 |  |  |  | 74,126 |
Real estate assets, net |  |  | 839,826 |  |  |  | 787,398 |  |  |  | 815,710 |  |  |  | 812,438 |  |  |  | 844,058 |
Acquired real estate leases, net |  |  | 26,042 |  |  |  | 30,826 |  |  |  | 30,905 |  |  |  | 28,024 |  |  |  | 28,518 |
Investment in non-consolidated REITs |  |  | 82,388 |  |  |  | 86,235 |  |  |  | 84,609 |  |  |  | 83,896 |  |  |  | 83,046 |
Assets held for syndication, net |  |  | 13,004 |  |  |  | 24,593 |  |  |  | 14,039 |  |  |  | 13,335 |  |  |  | 13,254 |
Cash and cash equivalents |  |  | 27,650 |  |  |  | 32,227 |  |  |  | 34,386 |  |  |  | 34,527 |  |  |  | 29,244 |
Restricted cash |  |  | 336 |  |  |  | 336 |  |  |  | 336 |  |  |  | 336 |  |  |  | 336 |
Tenant rent receivables, net |  |  | 1,084 |  |  |  | 1,694 |  |  |  | 989 |  |  |  | 1,174 |  |  |  | 1,329 |
Straight-line rent receivable, net |  |  | 9,190 |  |  |  | 7,638 |  |  |  | 7,894 |  |  |  | 8,255 |  |  |  | 8,816 |
Prepaid expenses |  |  | 2,253 |  |  |  | 1,654 |  |  |  | 1,061 |  |  |  | 2,922 |  |  |  | 2,206 |
Related party mortgage loan receivable |  |  | 4,725 |  |  |  | 1,000 |  |  |  | 1,000 |  |  |  | 1,125 |  |  |  | 1,125 |
Other assets |  |  | 1,517 |  |  |  | 880 |  |  |  | 919 |  |  |  | 663 |  |  |  | 2,687 |
Deferred leasing commissions, net |  |  | 10,493 |  |  |  | 9,581 |  |  |  | 10,509 |  |  |  | 10,365 |  |  |  | 10,814 |
Total assets |  | $ | 1,018,508 |  |  | $ | 984,062 |  |  | $ | 1,002,357 |  |  | $ | 997,060 |  |  | $ | 1,025,433 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bank note payable |  | $ | 72,468 |  |  | $ | 84,750 |  |  | $ | 109,995 |  |  | $ | 105,118 |  |  | $ | 67,468 |
Term loan payable |  |  | 75,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 75,000 |
Accounts payable and accrued expenses |  |  | 17,687 |  |  |  | 16,633 |  |  |  | 18,984 |  |  |  | 24,945 |  |  |  | 22,297 |
Accrued compensation |  |  | 250 |  |  |  | 415 |  |  |  | 1,845 |  |  |  | 1,652 |  |  |  | 1,654 |
Tenant security deposits |  |  | 1,795 |  |  |  | 1,923 |  |  |  | 1,810 |  |  |  | 1,823 |  |  |  | 1,874 |
Other liabilities: derivative termination value |  |  | 3,080 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,099 |
Acquired unfavorable real estate leases, net |  |  | 4,795 |  |  |  | 4,186 |  |  |  | 4,883 |  |  |  | 4,654 |  |  |  | 5,044 |
Total liabilities |  |  | 175,075 |  |  |  | 107,907 |  |  |  | 137,517 |  |  |  | 138,192 |  |  |  | 176,436 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Common stock |  |  | 7 |  |  |  | 7 |  |  |  | 7 |  |  |  | 7 |  |  |  | 7 |
Additional paid-in capital |  |  | 889,019 |  |  |  | 889,019 |  |  |  | 889,019 |  |  |  | 889,019 |  |  |  | 889,019 |
Accumulated other comprehensive loss |  |  | (3,080 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,099 | )
Accumulated distributions in excess of accumulated earnings |  |  | (42,513 | ) |  |  | (12,871 | ) |  |  | (24,186 | ) |  |  | (30,158 | ) |  |  | (36,930 | )
Total stockholders’ equity |  |  | 843,433 |  |  |  | 876,155 |  |  |  | 864,840 |  |  |  | 858,868 |  |  |  | 848,997 |
Total liabilities and stockholders’ equity |  | $ | 1,018,508 |  |  | $ | 984,062 |  |  | $ | 1,002,357 |  |  | $ | 997,060 |  |  | $ | 1,025,433 |

Franklin Street Properties Corp. March 31, 2009
10

Condensed Consolidated Statements of Cash Flows
(in thousands)

|  | Three Months ended March 31 |  |  | Twelve Months ended December 31 |
|  | 2009 |  |  | 2008 |  |  | 2008 |  |  | 2007 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 7,808 |  |  | $ | 7,386 |  |  | $ | 31,959 |  |  | $ | 61,085 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on assets sold |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (23,789 | )
Depreciation and amortization expense |  |  | 7,981 |  |  |  | 7,371 |  |  |  | 30,444 |  |  |  | 30,563 |
Amortization of above market lease |  |  | 793 |  |  |  | 1,139 |  |  |  | 4,283 |  |  |  | 4,948 |
Equity in earnings (losses) from non-consolidated REITs |  |  | (792 | ) |  |  | (793 | ) |  |  | (2,747 | ) |  |  | 472 |
Distributions from non-consolidated REITs |  |  | 1,615 |  |  |  | 546 |  |  |  | 5,348 |  |  |  | 1,806 |
Increase in bad debt reserve |  |  | 86 |  |  |  | 79 |  |  |  | 79 |  |  |  | (3 | )
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 425 |
Tenant rent receivables, net |  |  | 159 |  |  |  | (301 | ) |  |  | 64 |  |  |  | 971 |
Straight-line rents, net |  |  | (374 | ) |  |  | (251 | ) |  |  | (1,406 | ) |  |  | (3,359 | )
Prepaid expenses and other assets, net |  |  | (171 | ) |  |  | (376 | ) |  |  | (901 | ) |  |  | 374 |
Accounts payable and accrued expenses |  |  | (3,154 | ) |  |  | (4,379 | ) |  |  | 448 |  |  |  | 1,884 |
Accrued compensation |  |  | (1,404 | ) |  |  | (1,148 | ) |  |  | 90 |  |  |  | (1,079 | )
Tenant security deposits |  |  | (79 | ) |  |  | 49 |  |  |  | - |  |  |  | 130 |
Payment of deferred leasing commissions |  |  | (162 | ) |  |  | (818 | ) |  |  | (3,353 | ) |  |  | (4,314 | )
Net cash provided by operating activities |  |  | 12,306 |  |  |  | 8,504 |  |  |  | 64,308 |  |  |  | 70,114 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of real estate assets, office computers and furniture, capitalized merger costs |  |  | (3,295 | ) |  |  | (1,777 | ) |  |  | (73,888 | ) |  |  | (77,894 | )
Purchase of acquired favorable and unfavorable leases |  |  | - |  |  |  | - |  |  |  | (4,508 | ) |  |  | (3,726 | )
Investment in non-consolidated REITs |  |  | - |  |  |  | - |  |  |  | (10 | ) |  |  | (82,831 | )
Investment in related party mortgage loan receivable |  |  | (3,600 | ) |  |  | (1,000 | ) |  |  | (1,125 | ) |  |  | - |
Redemption of certificate of deposit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,143 |
Changes in deposits on real estate assets |  |  | 1,300 |  |  |  | - |  |  |  | (1,300 | ) |  |  | - |
Investment in assets held for syndication, net |  |  | 86 |  |  |  | 1,391 |  |  |  | 12,236 |  |  |  | (22,093 | )
Proceeds received on sales of real estate assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 96,102 |
Net cash used in investing activities |  |  | (5,509 | ) |  |  | (1,386 | ) |  |  | (68,595 | ) |  |  | (85,299 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Distributions to stockholders |  |  | (13,391 | ) |  |  | (21,849 | ) |  |  | (70,481 | ) |  |  | (87,662 | )
Purchase of treasury shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,767 | )
Borrowings (repayments) under bank note payable, net |  |  | 5,000 |  |  |  | - |  |  |  | (17,282 | ) |  |  | 84,750 |
Borrowings under term note payable |  |  | - |  |  |  | - |  |  |  | 75,000 |  |  |  | - |
Deferred financing costs |  |  | - |  |  |  | (30 | ) |  |  | (694 | ) |  |  | (121 | )
Net cash (used in) provided by financing activities |  |  | (8,391 | ) |  |  | (21,879 | ) |  |  | (13,457 | ) |  |  | (7,800 | )
Net increase (decrease) in cash and cash equivalents |  |  | (1,594 | ) |  |  | (14,761 | ) |  |  | (17,744 | ) |  |  | (22,985 | )
Cash and cash equivalents, beginning of period |  |  | 29,244 |  |  |  | 46,988 |  |  |  | 46,988 |  |  |  | 69,973 |
Cash and cash equivalents, end of period |  | $ | 27,650 |  |  | $ | 32,227 |  |  | $ | 29,244 |  |  | $ | 46,988 |

Franklin Street Properties Corp. March 31, 2009
11

Segment Information*
($ in thousands except per share amounts)

Three Months Ended
March 31, 2009
Three Months Ended
March 31, 2008
Year Ended
December 31, 2008
Year Ended
December 31, 2007
Real
Investment
Real
Investment
Real
Investment
Real
Investment
Estate
Banking
Total
Estate
Banking
Total
Estate
Banking
Total
Estate
Banking
Total
Revenue:
Rental Income
$ 29,818 $ - $ 29,818 $ 26,656 $ - $ 26,656 $ 111,198 $ - $ 111,198 $ 100,961 $ - $ 100,961
Syndication Fees
- 10 10 - 205 205 - 3,766 3,766 - 8,986 8,986
Transaction Fees
- 28 28 - 168 168 - 3,641 3,641 - 9,898 9,898
Management Fees & Interest Income
545 - 545 561 - 561 1,739 - 1,739 7,026 4 7,030
Other Income
18 - 18 20 - 20 72 - 72 83 35 118
Total Revenue
30,381 38 30,419 27,237 373 27,610 113,009 7,407 120,416 108,070 18,923 126,993
Expenses
Rental Operating Expenses
7,280 - 7,280 6,698 - 6,698 28,999 - 28,999 26,171 - 26,171
Real Estate Taxes and Insurance
4,829 - 4,829 4,279 - 4,279 17,740 - 17,740 16,535 - 16,535
Depreciaton and Amortization
7,887 27 7,914 7,325 34 7,359 30,222 138 30,360 29,200 134 29,334
Selling, general and administrative
983 1,025 2,008 896 1,113 2,009 4,229 4,039 8,268 3,440 4,026 7,466
Commissions and Broker Expenses
- 130 130 - 158 158 100 2,051 2,151 - 4,737 4,737
Interest & Commitment Fees
1,577 - 1,577 1,192 - 1,192 4,921 - 4,921 7,684 - 7,684
Total Expenses
22,556 1,182 23,738 20,390 1,305 21,695 86,211 6,228 92,439 83,030 8,897 91,927
Income before Equity, Interest and Taxes
7,825 (1,144 ) 6,681 6,847 (932 ) 5,915 26,798 1,179 27,977 25,040 10,026 35,066
Interest Income
34 2 36 292 11 303 709 36 745 2,317 60 2,377
Equity Income SARs
792 - 792 793 - 793 2,747 - 2,747 (464 ) - (464 )
Income before Taxes
8,651 (1,142 ) 7,509 7,932 (921 ) 7,011 30,254 1,215 31,469 26,893 10,086 36,979
Income Taxes
65 (364 ) (299 ) 58 (433 ) (375 ) 246 (736 ) (490 ) 226 647 873
Income from continuing operations
8,586 (778 ) 7,808 7,874 (488 ) 7,386 30,008 1,951 31,959 26,667 9,439 36,106
Income from discontinued operations
- - - - - - - - - 1,190 - 1,190
Gain on sale of assets
- - - - - - - - - 23,789 - 23,789
Net Income
$ 8,586 $ (778 ) $ 7,808 $ 7,874 $ (488 ) $ 7,386 $ 30,008 $ 1,951 $ 31,959 $ 51,646 $ 9,439 $ 61,085
Funds From Operations (FFO)*
Net income
$ 8,586 $ (778 ) $ 7,808 $ 7,874 $ (488 ) $ 7,386 $ 30,008 $ 1,951 $ 31,959 $ 51,646 $ 9,439 $ 61,085
Gain on sale of assets, net
- - - - - - - - - (23,789 ) - (23,789 )
Equity in income of SARs
(792 ) - (792 ) (793 ) - (793 ) (2,747 ) - (2,747 ) 472 - 472
Cash received from SARs
1,615 - 1,615 546 - 546 5,348 - 5,348 1,806 - 1,806
Depreciation and amortization
8,680 27 8,707 8,464 34 8,498 34,505 138 34,643 35,340 134 35,474
Funds From Operations (FFO)*
18,089 (751 ) 17,338 16,091 (454 ) 15,637 67,114 2,089 69,203 65,475 9,573 75,048
EPS
$ 0.12 $ (0.01 ) $ 0.11 $ 0.11 $ (0.01 ) $ 0.10 $ 0.43 $ 0.03 $ 0.45 $ 0.73 $ 0.13 $ 0.86
FFO per Share*
$ 0.26 $ (0.01 ) $ 0.25 $ 0.23 $ (0.01 ) $ 0.22 $ 0.95 $ 0.03 $ 0.98 $ 0.93 $ 0.14 $ 1.06
Weighted Average Shares
70,481 70,481 70,481 70,651
*See page 23 for a reconciliation of Net Income to FFO and FFO+GOS and page 24 for definitions of FFO and FFO+GOS
Franklin Street Properties Corp. March 31, 2009
12

Property Net Operating Income (NOI): Cash and GAAP Basis
(in thousands)

Property NOI Cash* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Three Months Ended |  |  | Year to date 2009 |  |  | Three Months Ended |  |  | Year Ended |
|  |  | 31-Mar-09 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Region | Division |  | Sq Feet |  |  | 31-Mar-09 |  |  | 2009 Total |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 2008 Total |
Eastern | Mideast |  |  | 1,164 |  |  | $ | 3,740 |  |  | $ | 3,740 |  |  | $ | 3,321 |  |  | $ | 3,230 |  |  | $ | 3,059 |  |  | $ | 3,470 |  |  | $ | 13,080 |
Midwest | East North Central |  |  | 597 |  |  |  | 1,524 |  |  |  | 1,524 |  |  |  | 1,537 |  |  |  | 1,443 |  |  |  | 1,400 |  |  |  | 1,393 |  |  |  | 5,773 |
| West North Central |  |  | 477 |  |  |  | 1,689 |  |  |  | 1,689 |  |  |  | 1,132 |  |  |  | 1,228 |  |  |  | 1,381 |  |  |  | 1,312 |  |  |  | 5,053 |
|  |  |  | 1,074 |  |  |  | 3,213 |  |  |  | 3,213 |  |  |  | 2,669 |  |  |  | 2,671 |  |  |  | 2,781 |  |  |  | 2,705 |  |  |  | 10,826 |
South | Southeast |  |  | 600 |  |  |  | 2,220 |  |  |  | 2,220 |  |  |  | 2,403 |  |  |  | 2,507 |  |  |  | 2,370 |  |  |  | 2,149 |  |  |  | 9,429 |
| Southwest |  |  | 1,489 |  |  |  | 5,203 |  |  |  | 5,203 |  |  |  | 4,574 |  |  |  | 4,850 |  |  |  | 4,954 |  |  |  | 4,944 |  |  |  | 19,322 |
|  |  |  | 2,089 |  |  |  | 7,423 |  |  |  | 7,423 |  |  |  | 6,977 |  |  |  | 7,357 |  |  |  | 7,324 |  |  |  | 7,093 |  |  |  | 28,751 |
West | Mountain |  |  | 792 |  |  |  | 3,194 |  |  |  | 3,194 |  |  |  | 2,996 |  |  |  | 2,969 |  |  |  | 3,020 |  |  |  | 2,994 |  |  |  | 11,979 |
| Pacific |  |  | 299 |  |  |  | 375 |  |  |  | 375 |  |  |  | 322 |  |  |  | 359 |  |  |  | 313 |  |  |  | 237 |  |  |  | 1,231 |
|  |  |  | 1,091 |  |  |  | 3,569 |  |  |  | 3,569 |  |  |  | 3,318 |  |  |  | 3,328 |  |  |  | 3,333 |  |  |  | 3,231 |  |  |  | 13,210 |
Total |  |  |  | 5,418 |  |  | $ | 17,945 |  |  | $ | 17,945 |  |  | $ | 16,285 |  |  | $ | 16,586 |  |  | $ | 16,497 |  |  | $ | 16,499 |  |  | $ | 65,867 |

Property NOI GAAP* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Three Months Ended |  |  | Year to date 2009 |  |  | Three Months Ended |  |  | Year Ended |
|  |  | 31-Mar-09 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Region | Division |  | Sq Feet |  |  | 31-Mar-09 |  |  | 2009 Total |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 2008 Total |
Eastern | Mideast |  |  | 1,164 |  |  | $ | 3,749 |  |  | $ | 3,749 |  |  | $ | 3,339 |  |  | $ | 3,289 |  |  | $ | 3,131 |  |  | $ | 3,554 |  |  | $ | 13,313 |
Midwest | East North Central |  |  | 597 |  |  |  | 1,570 |  |  |  | 1,570 |  |  |  | 1,619 |  |  |  | 1,479 |  |  |  | 1,496 |  |  |  | 1,561 |  |  |  | 6,155 |
| West North Central |  |  | 477 |  |  |  | 1,606 |  |  |  | 1,606 |  |  |  | 1,043 |  |  |  | 1,157 |  |  |  | 1,279 |  |  |  | 1,215 |  |  |  | 4,694 |
|  |  |  | 1,074 |  |  |  | 3,176 |  |  |  | 3,176 |  |  |  | 2,662 |  |  |  | 2,636 |  |  |  | 2,775 |  |  |  | 2,776 |  |  |  | 10,849 |
South | Southeast |  |  | 600 |  |  |  | 2,391 |  |  |  | 2,391 |  |  |  | 2,342 |  |  |  | 2,410 |  |  |  | 2,263 |  |  |  | 2,336 |  |  |  | 9,351 |
| Southwest |  |  | 1,489 |  |  |  | 5,265 |  |  |  | 5,265 |  |  |  | 4,708 |  |  |  | 4,933 |  |  |  | 5,095 |  |  |  | 5,043 |  |  |  | 19,779 |
|  |  |  | 2,089 |  |  |  | 7,656 |  |  |  | 7,656 |  |  |  | 7,050 |  |  |  | 7,343 |  |  |  | 7,358 |  |  |  | 7,379 |  |  |  | 29,130 |
West | Mountain |  |  | 792 |  |  |  | 3,334 |  |  |  | 3,334 |  |  |  | 3,139 |  |  |  | 3,190 |  |  |  | 3,231 |  |  |  | 3,068 |  |  |  | 12,628 |
| Pacific |  |  | 299 |  |  |  | 404 |  |  |  | 404 |  |  |  | 345 |  |  |  | 385 |  |  |  | 347 |  |  |  | 276 |  |  |  | 1,353 |
|  |  |  | 1,091 |  |  |  | 3,738 |  |  |  | 3,738 |  |  |  | 3,484 |  |  |  | 3,575 |  |  |  | 3,578 |  |  |  | 3,344 |  |  |  | 13,981 |
Total |  |  |  | 5,418 |  |  | $ | 18,319 |  |  | $ | 18,319 |  |  | $ | 16,535 |  |  | $ | 16,843 |  |  | $ | 16,842 |  |  | $ | 17,053 |  |  | $ | 67,273 |

*See page 25 for a reconciliation of Net Income to Property NOI cash and Property NOI GAAP.
Franklin Street Properties Corp. March 31, 2009
13

Capital Analysis
(in thousands, except per share amounts)

|  | 31-Mar-09 |  |  | 31-Dec-08 |  |  | 30-Sep-08 |  |  | 30-Jun-08 |  |  | 31-Mar-08 |
Market Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shares Outstanding |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |
Closing market price per share |  | $ | 12.30 |  |  | $ | 14.75 |  |  | $ | 13.00 |  |  | $ | 12.64 |  |  | $ | 14.32 |
Market capitalization |  | $ | 866,913 |  |  | $ | 1,039,590 |  |  | $ | 916,249 |  |  | $ | 890,876 |  |  | $ | 1,009,284 |
Dividend Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total dividends paid |  | $ | 13,391 |  |  | $ | 13,391 |  |  | $ | 13,391 |  |  | $ | 21,849 |  |  | $ | 21,849 |
Common dividend per share |  | $ | 0.19 |  |  | $ | 0.19 |  |  | $ | 0.19 |  |  | $ | 0.31 |  |  | $ | 0.31 |
Quarterly dividend as a % of FFO* |  |  | 76 | % |  |  | 83 | % |  |  | 78 | % |  |  | 108 | % |  |  | 140 | %
Liquidity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 27,650 |  |  | $ | 29,244 |  |  | $ | 34,527 |  |  | $ | 34,386 |  |  | $ | 32,227 |
Revolving credit facilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross potential available under current credit facilities |  |  | 250,000 |  |  |  | 250,000 |  |  |  | 250,000 |  |  |  | 250,000 |  |  |  | 250,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding balance |  |  | (72,468 | ) |  |  | (67,468 | ) |  |  | (105,118 | ) |  |  | (109,955 | ) |  |  | (84,750 | )
Total Liquidity |  | $ | 205,182 |  |  | $ | 211,776 |  |  | $ | 179,409 |  |  | $ | 174,431 |  |  | $ | 197,477 |

*See page 23 for a Reconciliation of Net Income to FFO and FFO+GOS and page 24 for definitions of FFO and FFO+GOS
Franklin Street Properties Corp. March 31, 2009
14

Portfolio Overview

Property by Form of FSP Participation |  |  |  |  |
| 31-Mar-09 | 31-Dec-08 | 30-Sep-08 | 30-Jun-08 | 31-Mar-08
Owned portfolio of commercial real estate: |  |  |  |  |
Number of properties | 29 | 29 | 27 | 27 | 26
Square feet | 5,417,515 | 5,417,515 | 5,153,737 | 5,153,396 | 4,997,128
Leased percentage | 93% | 93% | 93% | 93% | 93%
Investments in non-consolidated commercial real estate: |  |  |  |  |
Number of properties | 2 | 2 | 2 | 2 | 3
Square feet | 1,461,224 | 1,461,224 | 1,461,224 | 1,459,420 | 1,615,395
Leased percentage | 79% | 80% | 79% | 78% | 80%
Single Asset REITs (SARs) managed: |  |  |  |  |
Number of properties | 10 | 10 | 10 | 10 | 9
Square feet * | 2,684,561 | 2,684,561 | 2,683,105 | 2,682,931 | 2,682,770
Leased percentage* | 88% | 92% | 92% | 93% | 93%
Total owned, investments and managed properties: |  |  |  |  |
Number of properties | 41 | 41 | 39 | 39 | 38
Square feet * | 9,563,300 | 9,563,300 | 9,298,066 | 9,295,747 | 9,295,293
Leased percentage* | 90% | 91% | 90% | 91% | 91%
*Excludes a property to be constructed with approximately 285,000 square feet |  |  |  |  |

Franklin Street Properties Corp. March 31, 2009
15

Regional Analysis, Map
(as of March 31, 2009)

Owned: |  |  |  |
Name | City | State | Region | Square Feet
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 | 325,410
Loudoun Tech Center | Dulles | VA | East | 135,888
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
Lakeside Crossing | Maryland Heights | MO | MidWest | 127,778
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 |  |  |  | 5,417,515
Managed: |  |  |  |
Name | City | State | Region | Square Feet
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 | 532,453
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 | 139,142
Total (2) |  |  |  | 4,145,785
(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 (a) |  | % Leased
| # of Properties |  | Square Feet |  | % of Portfolio |  | 31-Mar-09 |  | 31-Mar-09
East Region Total | 7 |  | 1,164,444 |  | 21.5 |  | $ 156,875 |  | 97.48%
East North Central Division | 3 |  | 596,604 |  | 11.0 |  | 83,340 |  | 95.18%
West North Central | 3 |  | 476,856 |  | 8.8 |  | 73,779 |  | 100.00%
Midwest Region Total | 6 |  | 1,073,460 |  | 19.8 |  | 157,119 |  | 97.32%
Southeast | 2 |  | 599,886 |  | 11.1 |  | 126,251 |  | 93.39%
Southwest | 7 |  | 1,488,969 |  | 27.5 |  | 232,918 |  | 91.68%
South Region Total | 9 |  | 2,088,855 |  | 38.6 |  | 359,169 |  | 92.17%
Mountain | 4 |  | 791,507 |  | 14.6 |  | 130,460 |  | 97.42%
Pacific | 3 |  | 299,249 |  | 5.5 |  | 36,203 |  | 57.24%
West Region Total | 7 |  | 1,090,756 |  | 20.1 |  | 166,663 |  | 86.40%
Grand Total | 29 |  | 5,417,515 |  | 100 |  | $ 839,826 |  | 93.17%
(a) NBV is for real estate assets, excluding intangibles |  |  |  |  |  |  |

Franklin Street Properties Corp. March 31, 2009
16

Owned Property List

(in thousands) |  |  |  |  | NBV (1) | % Leased
Region | Division | Name | City | State | S.F. | 31-Mar-09 | 31-Mar-09
West | Pacific | Hillview Center | Milpitas | CA | 36 | $ 4,300 | 100.0%
West | Pacific | Montague Business Center | San Jose | CA | 146 | 16,963 | 81.1%
West | Mountain | 380 Interlocken | Broomfield | CO | 240 | 44,017 | 97.0%
West | Mountain | 390 Interlocken | Broomfield | CO | 242 | 44,037 | 97.2%
West | Mountain | Centennial Technology Center | Colorado Springs | CO | 111 | 12,268 | 94.3%
West | Mountain | Greenwood Plaza | Englewood | CO | 199 | 30,139 | 100.0%
South | Southeast | Blue Lagoon Drive | Miami | FL | 213 | 48,980 | 100.0%
South | Southeast | One Overton Place | Atlanta | GA | 387 | 77,271 | 89.8%
MidWest | East North Central | Northwest Point | Elk Grove Village | IL | 177 | 31,076 | 100.0%
MidWest | East North Central | River Crossing | Indianapolis | IN | 205 | 37,186 | 98.2%
East | Mideast | East Baltimore | Baltimore | MD | 325 | 57,547 | 95.6%
East | Mideast | Bollman Place | Savage | MD | 99 | 5,114 | 100.0%
MidWest | East North Central | Southfield Centre | Southfield | MI | 215 | 15,078 | 88.4%
MidWest | West North Central | Timberlake | Chesterfield | MO | 233 | 36,934 | 100.0%
MidWest | West North Central | Timberlake East | Chesterfield | MO | 116 | 18,889 | 100.0%
MidWest | West North Central | Lakeside Crossing | Maryland Heights | MO | 128 | 17,956 | 100.0%
East | Mideast | Park Seneca | Charlotte | NC | 110 | 7,845 | 86.4%
East | Mideast | Forest Park | Charlotte | NC | 62 | 6,543 | 100.0%
South | Southwest | Addison Circle | Addison | TX | 294 | 48,658 | 89.5%
South | Southwest | Liberty Plaza | Addison | TX | 219 | 26,118 | 82.7%
South | Southwest | Park Ten LP | Houston | TX | 156 | 19,549 | 95.9%
South | Southwest | Eldridge Green | Houston | TX | 248 | 44,469 | 100.0%
South | Southwest | Park Ten Phase II | Houston | TX | 157 | 32,330 | 97.8%
South | Southwest | Willow Bend Office Center | Plano | TX | 117 | 18,049 | 61.2%
South | Southwest | Collins Crossing | Richardson | TX | 299 | 43,744 | 100.0%
East | Mideast | Meadow Point | Chantilly | VA | 135 | 18,716 | 100.0%
East | Mideast | Loudoun Tech Center | Dulles | VA | 136 | 18,013 | 100.0%
East | Mideast | Innsbrook | Glen Allen | VA | 298 | 43,097 | 100.0%
West | Pacific | Federal Way | Federal Way | WA | 117 | 14,939 | 14.2%
|  |  |  |  | 5,418 | $ 839,826 | 93.2%
(1) NBV is for real estate assets, excluding intangibles |  |  |  |  |

Franklin Street Properties Corp. March 31, 2009
17

Owned Property Capital Expenditures
(in thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year |
|  | For the Three Months Ended |  |  | Ended |
|  | 31-Mar-09 |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 31-Dec-08 |
Tenant improvements |  | $ | 1,374 |  |  | $ | 2,337 |  |  | $ | 560 |  |  | $ | 1,667 |  |  | $ | 823 |  |  | $ | 5,387 |
Deferred leasing costs |  |  | 162 |  |  |  | 817 |  |  |  | 1,313 |  |  |  | 305 |  |  |  | 919 |  |  |  | 3,354 |
Building improvements |  |  | 465 |  |  |  | 197 |  |  |  | 372 |  |  |  | 740 |  |  |  | 419 |  |  |  | 1,728 |
Increase to investments in building |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 2,001 |  |  | $ | 3,351 |  |  | $ | 2,245 |  |  | $ | 2,712 |  |  | $ | 2,161 |  |  | $ | 10,469 |

18

Tenant Analysis
(as of March 31, 2009)

|  | Tenant Name |  | Type of Industry |  | Square Feet |  | % of Total Sq. Feet
1 |  | Capital One Services, Inc.* |  | Financial Services/Credit Card/Finance |  | 297,789 |  | 5.5%
2 |  | Citgo Petroleum Corporation |  | Oil & Gas |  | 248,399 |  | 4.6%
3 |  | Tektronix Texas, LLC |  | Systems Technology |  | 241,372 |  | 4.4%
4 |  | Burger King Corporation |  | Restaurant/Food |  | 212,619 |  | 3.9%
5 |  | New Era of Networks, Inc. (Sybase) |  | Technology |  | 199,077 |  | 3.7%
6 |  | Citgroup Credit Services, Inc.** |  | Banking/Credit Card/Finance |  | 176,848 |  | 3.3%
7 |  | RGA Reinsurance Company |  | Reinsurance |  | 171,120 |  | 3.2%
8 |  | International Business Machines Corp. |  | Computer Consulting |  | 138,033 |  | 2.5%
9 |  | Giesecke & Devrient America |  | Computer Consulting/Currency Automation |  | 135,888 |  | 2.5%
10 |  | Murphy Exploration & Production Company |  | Crude oil and natural gas exploration |  | 133,786 |  | 2.5%
11 |  | CACI Technologies, Inc. |  | Defense Consulting |  | 132,896 |  | 2.4%
12 |  | Monsanto |  | Chemicals & Allied Products MFRS |  | 127,778 |  | 2.4%
13 |  | Maines Paper and Food Service, Inc. |  | Food Distribution |  | 98,745 |  | 1.8%
14 |  | Jones Lang Lasalle |  | Real Estate Services |  | 92,827 |  | 1.7%
15 |  | AMDOCS, Inc. |  | Telephone Technology |  | 91,928 |  | 1.7%
16 |  | Ober Kaler Grimes |  | Law Firm |  | 90,811 |  | 1.7%
17 |  | County of Santa Clara |  | Executive Legislative & General Government |  | 90,467 |  | 1.7%
18 |  | Technip-Coflexip USA Holdings, Inc |  | Oil Engineering/Construction Svcs |  | 86,059 |  | 1.6%
19 |  | Vail Corp, dba Vail Resorts |  | Ski Area Operator |  | 83,620 |  | 1.5%
20 |  | Corporate Holdings, LLC |  | Real Estate Holding Company |  | 81,818 |  | 1.5%
|  |  |  | Total Square Footage |  | 2,931,880 |  | 54.1%

* Capital One sublets all of the space to LandAmerica Financial Group, Inc. LandAmerica Financial Group, Inc. entered into a direct lease with us which commences at the expiration of the Capital One lease on October 31, 2009. On November 26, 2008, LandAmerica Financial Group, Inc. filed a voluntary motion for relief under Chapter 11 of the Bankruptcy Code. As of April 24, 2009, no motion to assume or reject the direct lease had been filed by LandAmerica Financial Group, Inc., although we expect such a motion on or before June 24, 2009.
** The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.
Franklin Street Properties Corp. March 31, 2009
19

Lease Expirations by Square Feet
(as of March 31, 2009)

Year |  |  | Total Square Feet |  | % of Square Feet Commercial
2009 |  |  | 593,626 |  | 11.0%
2010 |  |  | 752,760 |  | 13.9%
2011 |  |  | 376,047 |  | 6.9%
2012 |  |  | 759,077 |  | 14.0%
2013 |  |  | 342,809 |  | 6.3%
2014 |  |  | 482,804 |  | 8.9%
2015 |  |  | 411,877 |  | 7.6%
2016 * |  |  | 785,638 |  | 14.5%
2017 |  |  | 160,794 |  | 3.0%
2018 |  |  | 276,844 |  | 5.1%
2019 |  |  | 88,719 |  | 1.6%
2020 |  |  | 16,142 |  | 0.3%
Vacant |  |  | 370,378 |  | 6.9%
Total |  |  | 5,417,515 |  | 100.0%

*Includes the LandAmerica Financial Group, Inc. lease scheduled to expire in 2016
Franklin Street Properties Corp. March 31, 2009
20

Capital Recycling
($ 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 |  |
Lakeside Crossing |  | MO/Midwest |  | Office |  | 127,778 |  | 12/11/08 |  | 20,003 |  |
Loudoun Tech Center |  | VA/East |  | Office |  | 135,888 |  | 12/23/08 |  | 18,628 |  |
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 |  | 5/1/06 |  | 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/South |  | 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: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Net Sales |  | Gain (Loss)
2007 |  | State/Region |  | Property Type |  | Square Feet |  | Date Sold |  | 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. March 31, 2009
21

Investment Banking Performance
Franklin Street Properties Corp. March 31, 2009
22

FFO and FFO+GOS Reconciliations
(in thousands except per share amounts)

|  | For the three months ended: |  |  | For the Year Ended |
|  | 31-Mar-09 |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | 2008 |  |  | 2007 |  |  | 2006 |
Net income |  | $ | 7,808 |  |  | $ | 7,386 |  |  | $ | 10,534 |  |  | $ | 7,420 |  |  | $ | 6,619 |  |  | $ | 31,959 |  |  | $ | 61,085 |  |  | $ | 110,929 |
(Gain) Loss on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (23,789 | ) |  |  | (61,438 | )
GAAP income from non-consolidated REITs |  |  | (792 | ) |  |  | (793 | ) |  |  | (694 | ) |  |  | (680 | ) |  |  | (580 | ) |  |  | (2,747 | ) |  |  | 472 |  |  |  | (1,043 | )
Distributions from non-consolidated REITs |  |  | 1,615 |  |  |  | 546 |  |  |  | 1,731 |  |  |  | 1,561 |  |  |  | 1,510 |  |  |  | 5,348 |  |  |  | 1,806 |  |  |  | 783 |
Depreciation & amortization |  |  | 8,707 |  |  |  | 8,498 |  |  |  | 8,712 |  |  |  | 8,783 |  |  |  | 8,650 |  |  |  | 34,643 |  |  |  | 35,475 |  |  |  | 32,047 |
Funds From Operations (FFO) |  |  | 17,338 |  |  |  | 15,637 |  |  |  | 20,283 |  |  |  | 17,084 |  |  |  | 16,199 |  |  |  | 69,203 |  |  |  | 75,049 |  |  |  | 81,278 |
Plus gains on sales of assets (GOS) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 23,789 |  |  |  | 61,438 |
FFO+GOS (Total Profits) |  | $ | 17,338 |  |  | $ | 15,637 |  |  | $ | 20,283 |  |  | $ | 17,084 |  |  | $ | 16,199 |  |  | $ | 69,203 |  |  | $ | 98,838 |  |  | $ | 142,716 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.11 |  |  | $ | 0.10 |  |  | $ | 0.15 |  |  | $ | 0.11 |  |  | $ | 0.09 |  |  | $ | 0.45 |  |  | $ | 0.86 |  |  | $ | 1.65 |
FFO |  |  | 0.25 |  |  |  | 0.22 |  |  |  | 0.29 |  |  |  | 0.24 |  |  |  | 0.23 |  |  |  | 0.98 |  |  |  | 1.06 |  |  |  | 1.22 |
GOS |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.34 |  |  |  | 0.91 |
FFO+GOS |  |  | 0.25 |  |  |  | 0.22 |  |  |  | 0.29 |  |  |  | 0.24 |  |  |  | 0.23 |  |  |  | 0.98 |  |  |  | 1.40 |  |  |  | 2.13 |
Weighted Average Shares (basic and diluted) |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 70,651 |  |  |  | 67,159 |

Franklin Street Properties Corp. March 31, 2009
23

FFO and FFO+GOS Definitions
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, and acquisition costs of newly acquired properties that are not capitalized, 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.
24

Reconciliation of Net Income to Property NOI: Cash and GAAP Basis
(in thousands)

|  | Three months ended: |  |  | 2008 |
|  | 31-Mar-09 |  |  | 31-Mar-08 |  |  | 30-Jun-08 |  |  | 30-Sep-08 |  |  | 31-Dec-08 |  |  | Total |
Net Income |  | $ | 7,808 |  |  | $ | 7,386 |  |  | $ | 10,535 |  |  | $ | 7,419 |  |  | $ | 6,619 |  |  | $ | 31,959 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment banking segment net loss (income) |  |  | 778 |  |  |  | 488 |  |  |  | (3,352 | ) |  |  | 253 |  |  |  | 660 |  |  |  | (1,951 | )
Management fees (before elimination) |  |  | (425 | ) |  |  | (545 | ) |  |  | (533 | ) |  |  | (549 | ) |  |  | (545 | ) |  |  | (2,172 | )
Depreciation and Amortization |  |  | 7,887 |  |  |  | 7,326 |  |  |  | 7,556 |  |  |  | 7,628 |  |  |  | 7,712 |  |  |  | 30,222 |
Amortization of favorable leases |  |  | 793 |  |  |  | 1,139 |  |  |  | 1,120 |  |  |  | 1,118 |  |  |  | 906 |  |  |  | 4,283 |
Selling, general and administrative |  |  | 983 |  |  |  | 895 |  |  |  | 1,534 |  |  |  | 945 |  |  |  | 854 |  |  |  | 4,228 |
Interest expense |  |  | 1,577 |  |  |  | 1,192 |  |  |  | 1,051 |  |  |  | 1,108 |  |  |  | 1,570 |  |  |  | 4,921 |
Interest income |  |  | (347 | ) |  |  | (612 | ) |  |  | (360 | ) |  |  | (314 | ) |  |  | (234 | ) |  |  | (1,520 | )
Equity in earnings of nonconsolidated REITs |  |  | (792 | ) |  |  | (793 | ) |  |  | (694 | ) |  |  | (680 | ) |  |  | (580 | ) |  |  | (2,747 | )
Non-property specific income and expenses, net |  |  | 57 |  |  |  | 59 |  |  |  | (14 | ) |  |  | (86 | ) |  |  | 91 |  |  |  | 50 |
GAAP Property NOI |  |  | 18,319 |  |  |  | 16,535 |  |  |  | 16,843 |  |  |  | 16,842 |  |  |  | 17,053 |  |  |  | 67,273 |
Straight-line rent |  |  | (374 | ) |  |  | (250 | ) |  |  | (257 | ) |  |  | (345 | ) |  |  | (554 | ) |  |  | (1,406 | )
Cash Property NOI |  | $ | 17,945 |  |  | $ | 16,285 |  |  | $ | 16,586 |  |  | $ | 16,497 |  |  | $ | 16,499 |  |  | $ | 65,867 |

Franklin Street Properties Corp. March 31, 2009
25