ex99-1.htm

	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.

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.

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

															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

	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

	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

	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

	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

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

	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

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

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

(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

	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.

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

	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

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.

	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

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%

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

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%

											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