ex99-2.htm

	Page		Page

Company Overview	3-6	Tenant Analysis
		20 Largest tenants with annualized rent and remaining term	21
Key Financial Data		20 Largest Tenants, Industry Profile	22
Financial Highlights	6	Lease Expirations by Square Feet	23
Management’s Key Operating Measures	7	Lease Expirations with annualized rent per square foot	24
Income Statements	8
EPS, FFO, GOS and FFO+GOS	9	Transactional Drivers
Balance Sheets	10	Capital Recycling: Acquisitions and Dispositions	25
Cash Flow Statements	11	Investment Banking Performance	26
Segment Information	12-13
Property Net Operating Income (NOI): Cash and GAAP Basis	14	FFO and FFO+GOS Reconciliations	27
Capital Analysis	15	FFO and FFO+GOS Definitions	28
		FAD Reconciliation and Definition	29
Portfolio Overview		EBITDA Reconciliation and Definition	30
Property by Form of FSP Participation	16	NOI Reconciliation	31
Regional Analysis, Map	17
Owned Property List	18
Properties with annualized rent per square foot	19
Capital Expenditures	20

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. 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 December 31, 2009)
Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
Total Properties	32
Total Square Feet	5.9 Million
Common Shares Outstanding	79,680,705
Quarterly Dividend	$0.19
Dividend Yield	5.20%
Total Market Capitalization	$1,164 Million
Insider Holdings	13.0%

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

												For the Year														For the Year
	For the Three Months Ended											Ended			For the Three Months Ended											Ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08
Income Items:
Revenue:
Rental	$	29,818		$	29,254		$	31,702		$	31,300	$	122,074		$	26,656		$	27,700	$	27,927		$	28,915		$	111,198
Related party revenue		583			860			371			4,434		6,248			934			6,818		984			410			9,146
Other		18			18			19			6		61			20			19		13			20			72
Total revenue		30,419			30,132			32,092			35,740		128,383			27,610			34,537		28,924			29,345			120,416

Total expenses		23,738			25,821			25,912			28,134		103,605			21,695			24,538		22,658			23,548			92,439

Income before interest income, equity in earnings in non-consolidated REITs and taxes		6,681			4,311			6,180			7,606		24,778			5,915			9,999		6,266			5,797			27,977
Interest income		36			36			16			9		97			303			176		177			89			745
Equity in earnings in non-consolidated REITs		792			443			475			284		1,994			793			694		679			580			2,746

Income before taxes		7,509			4,790			6,671			7,899		26,869			7,011			10,869		7,122			6,466			31,468
Income tax expense (benefit)		(299	)		(75	)		(270	)		65		(579	)		(375	)		335		(297	)		(153	)		(490	)

Income from continuing operations		7,808			4,865			6,941			7,834		27,448			7,386			10,534		7,419			6,619			31,958
Income from discontinued operations		-			-			-			-		-			-			-		-			-			-
Gain on sale of assets		-			-			-			424		424			-			-		-			-			-

Net income	$	7,808		$	4,865		$	6,941		$	8,258	$	27,872		$	7,386		$	10,534	$	7,419		$	6,619		$	31,958

FFO+GOS*:
FFO	$	17,338	$	17,409	$	17,537	$	19,075	$	71,359	$	15,637	$	20,283	$	17,085	$	16,199	$	69,204
GOS		-		-		-		424		424		-		-		-		-		-
FFO+GOS	$	17,338	$	17,409	$	17,537	$	19,499	$	71,783	$	15,637	$	20,283	$	17,085	$	16,199	$	69,204

Per Share Data:
EPS	$	0.11	$	0.07	$	0.10	$	0.10	$	0.38	$	0.10	$	0.15	$	0.11	$	0.09	$	0.45
FFO		0.25		0.25		0.25		0.24		0.98		0.22		0.29		0.24		0.23		0.98
GOS		-		-		-		-		-		-		-		-		-		-
FFO+GOS		0.25		0.25		0.25		0.24		0.98		0.22		0.29		0.24		0.23		0.98

Weighted Aveage Shares (diluted)		70,481		70,481		71,281		79,681		73,001		70,481		70,481		70,481		70,481		70,481

Balance Sheet Items:
Real estate, net	$	839,826	$	869,557	$	926,555	$	921,833	$	921,833	$	787,398	$	815,710	$	812,438	$	844,058	$	844,058
Other assets, net		178,682		195,939		219,220		233,933		233,933		196,664		186,647		184,622		181,375		181,375
Total assets, net		1,018,508		1,065,496		1,145,775		1,155,766		1,155,766		984,062		1,002,357		997,060		1,025,433		1,025,433
Total liabilities, net		175,075		229,903		201,796		218,492		218,492		107,907		137,517		138,192		176,346		176,346
Shareholders' equity		843,433		835,593		943,979		937,274		937,274		876,155		864,840		858,868		848,997		848,997

* See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

												For the														For the
	For the Three Months Ended											Year Ended			For the Three Months Ended											Year Ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08

Revenue:
Rental	$	29,818		$	29,254		$	31,702		$	31,300	$	122,074		$	26,656		$	27,700	$	27,927		$	28,915		$	111,198
Related party revenue:
Syndication fees		10			29			-			2,389		2,428			205			3,257		304			-			3,766
Transaction fees		28			514			1			1,537		2,080			168			3,138		300			35			3,641
Management fees and interest income from loans		545			317			370			508		1,740			561			423		380			375			1,739
Other		18			18			19			6		61			20			19		13			20			72
Total revenue		30,419			30,132			32,092			35,740		128,383			27,610			34,537		28,924			29,345			120,416

Expenses:
Real estate operating expenses		7,280			7,144			7,752			8,646		30,822			6,698			7,116		7,159			8,026			28,999
Real estate taxes and insurance		4,829			4,686			5,364			4,349		19,228			4,279			4,505		4,590			4,366			17,740
Depreciation and amortization		7,914			10,225			8,801			9,353		36,293			7,359			7,591		7,666			7,744			30,360
Selling, general and administrative		2,008			2,127			2,243			2,513		8,891			2,009			2,621		1,927			1,711			8,268
Commissions		130			40			8			1,623		1,801			158			1,654		208			131			2,151
Interest		1,577			1,599			1,744			1,650		6,570			1,192			1,051		1,108			1,570			4,921
Total expenses		23,738			25,821			25,912			28,134		103,605			21,695			24,538		22,658			23,548			92,439

Income before interest income, equity in earnings of non-consolidated REITs and taxes		6,681			4,311			6,180			7,606		24,778			5,915			9,999		6,266			5,797			27,977
Interest income		36			36			16			9		97			303			176		177			89			745
Equity in earnings of non-consolidated REITs		792			443			475			284		1,994			793			695		679			580			2,747

		7,509			4,790			6,671			7,899		26,869			7,011			10,870		7,122			6,466			31,469
Income tax expense (benefit)		(299	)		(75	)		(270	)		65		(579	)		(375	)		335		(297	)		(153	)		(490	)

Income from continuing operations		7,808			4,865			6,941			7,834		27,448			7,386			10,535		7,419			6,619			31,959
Gain on sale of assets		-			-			-			424		424			-			-		-			-			-

Net income	$	7,808		$	4,865		$	6,941		$	8,258	$	27,872		$	7,386		$	10,535	$	7,419		$	6,619		$	31,959

Weighted average number of shares outstanding, basic and diluted		70,481			70,481			71,281			79,681		73,001			70,481			70,481		70,481			70,481			70,481

Earnings per share, basic and diluted, attributable to:
Continuing operations	$	0.11		$	0.07		$	0.10		$	0.10	$	0.38		$	0.10		$	0.15	$	0.11		$	0.09		$	0.45
Gains on sales of assets		-			-			-			-		-			-			-		-			-			-
Net income per share, basic and diluted	$	0.11		$	0.07		$	0.10		$	0.10	$	0.38		$	0.10		$	0.15	$	0.11		$	0.09		$	0.45

	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,			December 31,
	2009			2009			2009			2009			2008			2008			2008			2008
Assets:
Real estate assets:
Land	$	107,153		$	114,677		$	126,695		$	126,447		$	99,140		$	100,440		$	100,440		$	107,153
Buildings and improvements		812,470			840,605			891,918			894,012			745,488			778,107			780,276			810,732
Fixtures and equipment		299			310			310			328			219			219			301			299
		919,922			955,592			1,018,923			1,020,787			844,847			878,766			881,017			918,184
Less accumulated depreciation		80,096			86,035			92,368			98,954			57,449			63,056			68,579			74,126
Real estate assets, net		839,826			869,557			926,555			921,833			787,398			815,710			812,438			844,058

Acquired real estate leases, net		26,042			38,996			48,003			44,757			30,826			30,905			28,024			28,518
Investment in non-consolidated REITs		82,388			94,579			93,936			92,910			86,235			84,609			83,896			83,046
Assets held for syndication, net		13,004			-			-			4,827			24,593			14,039			13,335			13,254
Cash and cash equivalents		27,650			24,542			26,385			27,404			32,227			34,386			34,527			29,244
Restricted cash		336			335			331			334			336			336			336			336
Tenant rent receivables, net		1,084			720			1,400			1,782			1,694			989			1,174			1,329
Straight-line rent receivable, net		9,190			9,219			9,724			10,754			7,638			7,894			8,255			8,816
Prepaid expenses		2,253			2,267			3,430			2,594			1,654			1,061			2,922			2,206
Related party mortgage loan receivable		4,725			12,115			23,264			36,535			1,000			1,000			1,125			1,125
Other assets		1,517			2,271			1,860			1,228			880			919			663			2,687
Deferred leasing commissions, net		10,493			10,895			10,887			10,808			9,581			10,509			10,365			10,814
Total assets	$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766		$	984,062		$	1,002,357		$	997,060		$	1,025,433

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	72,468		$	124,038		$	91,008		$	109,008		$	84,750		$	109,995		$	105,118		$	67,468
Term loan payable		75,000			75,000			75,000			75,000			-			-			-			75,000
Accounts payable and accrued expenses		17,687			21,252			25,351			23,787			16,633			18,984			24,945			22,297
Accrued compensation		250			500			750			1,416			415			1,845			1,652			1,654
Tenant security deposits		1,795			1,765			1,757			1,808			1,923			1,810			1,823			1,874
Other liabilities: derivative termination value		3,080			2,394			2,269			2,076			-			-			-			3,099
Acquired unfavorable real estate leases, net		4,795			4,954			5,661			5,397			4,186			4,883			4,654			5,044
Total liabilities		175,075			229,903			201,796			218,492			107,907			137,517			138,192			176,436

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		-			-			-			-			-			-			-			-
Common stock		7			7			8			8			7			7			7			7
Additional paid-in capital		889,019			889,019			1,003,729			1,003,713			889,019			889,019			889,019			889,019
Accumulated other comprehensive loss		(3,080	)		(2,394	)		(2,269	)		(2,076	)		-			-			-			(3,099	)
Accumulated distributions in excess of accumulated earnings		(42,513	)		(51,039	)		(57,489	)		(64,371	)		(12,871	)		(24,186	)		(30,158	)		(36,930	)
Total stockholders’ equity		843,433			835,593			943,979			937,274			876,155			864,840			858,868			848,997
Total liabilities and stockholders’ equity	$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766		$	984,062		$	1,002,357		$	997,060		$	1,025,433

	Twelve Months ended December 31
	2009			2008			2007

Cash flows from operating activities:
Net income	$	27,872		$	31,959		$	61,085
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on assets sold		(424	)		-			(23,789	)
Depreciation and amortization expense		36,561			30,444			30,563
Amortization of above market lease		3,359			4,283			4,948
Equity in earnings (losses) from non-consolidated REITs		(2,012	)		(2,747	)		472
Distributions from non-consolidated REITs		5,628			5,348			1,806
Increase in bad debt reserve		111			79			(3	)
Changes in operating assets and liabilities:
Restricted cash		2			-			425
Tenant rent receivables, net		(564	)		64			971
Straight-line rents, net		(1,879	)		(1,406	)		(3,359	)
Prepaid expenses and other assets, net		907			(901	)		374
Accounts payable and accrued expenses		2,760			448			1,884
Accrued compensation		(238	)		90			(1,079	)
Tenant security deposits		(66	)		-			130
Payment of deferred leasing commissions		(2,659	)		(3,353	)		(4,314	)

Net cash provided by operating activities		69,358			64,308			70,114

Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases		(132,323	)		(78,396	)		(81,620	)
Investment in non-consolidated REITs		(13,218	)		(10	)		(82,831	)
Investment in related party mortgage loan receivable		(35,410	)		(1,125	)		-
Redemption of certificate of deposit		-			-			5,143
Changes in deposits on real estate assets		-			(1,300	)		-
Investment in assets held for syndication, net		8,159			12,236			(22,093	)
Proceeds received on sales of real estate assets		672			-			96,102

Net cash used in investing activities		(172,120	)		(68,595	)		(85,299	)

Cash flows from financing activities:
Distributions to stockholders		(55,313	)		(70,481	)		(87,662	)
Proceeds from equity offering, net		114,695			-			-
Purchase of treasury shares		-			-			(4,767	)
Borrowings (repayments) under bank note payable, net		41,540			(17,282	)		84,750
Borrowings under term note payable		-			75,000			-
Deferred financing costs		-			(694	)		(121	)

Net cash (used in) provided by financing activities		100,922			(13,457	)		(7,800	)

Net decreases in cash and cash equivalents		(1,840	)		(17,744	)		(22,985	)

Cash and cash equivalents, beginning of period		29,244			46,988			69,973

Cash and cash equivalents, end of period	$	27,404		$	29,244		$	46,988

	Three Months Ended December 31, 2009								Year Ended December 31, 2009									Three Months Ended December 31, 2008									Year Ended December 31, 2008
	Real			Investment					Real			Investment						Real			Investment						Real			Investment
	Estate			Banking		Total			Estate			Banking			Total			Estate			Banking			Total			Estate			Banking			Total
Revenue:
Rental Income	$	31,300		$	-	$	31,300		$	122,074		$	-		$	122,074		$	28,915		$	-		$	28,915		$	111,198		$	-		$	111,198
Syndication Fees		-			2,389		2,389			-			2,428			2,428			-			-			-			-			3,766			3,766
Transaction Fees		-			1,537		1,537			-			2,080			2,080			-			35			35			-			3,641			3,641
Management Fees & Interest Income		508			-		508			1,740			-			1,740			375			-			375			1,739			-			1,739
Other Income		6			-		6			61			-			61			20			-			20			72			-			72

Total Revenue		31,814			3,926		35,740			123,875			4,508			128,383			29,310			35			29,345			113,009			7,407			120,416

Expenses
Rental Operating Expenses		8,646			-		8,646			30,822			-			30,822			8,026			-			8,026			28,999			-			28,999
Real Estate Taxes and Insurance		4,349			-		4,349			19,228			-			19,228			4,365			-			4,365			17,740			-			17,740
Depreciaton and Amortization		9,315			38		9,353			36,170			123			36,293			7,712			32			7,744			30,222			138			30,360
Selling, general and administrative		1,359			1,154		2,513			4,828			4,063			8,891			854			857			1,711			4,228			4,040			8,268
Commissions and Broker Expenses		-			1,623		1,623			-			1,801			1,801			100			31			131			100			2,051			2,151
Interest & Commitment Fees		1,650			-		1,650			6,570			-			6,570			1,570			-			1,570			4,921			-			4,921
Total Expenses		25,319			2,815		28,134			97,618			5,987			103,605			22,627			920			23,547			86,210			6,229			92,439

Income before Equity, Interest and Taxes		6,495			1,111		7,606			26,257			(1,479	)		24,778			6,683			(885	)		5,798			26,799			1,178			27,977
Interest Income		8			1		9			93			4			97			80			8			88			709			36			745
Equity Income SARs		284			-		284			1,994			-			1,994			580			-			580			2,747			-			2,747
Income before Taxes		6,787			1,112		7,899			28,344			(1,475	)		26,869			7,343			(877	)		6,466			30,255			1,214			31,469
Income Taxes		56			9		65			249			(828	)		(579	)		65			(218	)		(153	)		247			(737	)		(490	)
Income from continuing operations		6,731			1,103		7,834			28,095			(647	)		27,448			7,278			(659	)		6,619			30,008			1,951			31,959
Income from discontinued operations		-			-		-			-			-			-			-			-			-			-			-			-
Gain on sale of assets		424			-		424			424			-			424			-			-			-			-			-			-
Net Income (loss)	$	7,155		$	1,103	$	8,258		$	28,519		$	(647	)	$	27,872		$	7,278		$	(659	)	$	6,619		$	30,008		$	1,951		$	31,959


Funds From Operations (FFO)*
Net Income	$	7,155		$	1,103	$	8,258		$	28,519		$	(647	)	$	27,872		$	7,278		$	(659	)	$	6,619		$	30,008		$	1,951		$	31,959
Gain on sale of assets, net		(424	)		-		(424	)		(424	)		-			(424	)		-			-			-			-			-			-
Equity in income of SARs		(301	)		-		(301	)		(2,012	)		-			(2,012	)		(580	)		-			(580	)		(2,747	)		-			(2,747	)
Cash received from SARs		1,371			-		1,371			5,628			-			5,628			1,511			-			1,511			5,348			-			5,348
Acquisition costs		4			-		4			643			-			643						-			-						-			-
Depreciation and amortization		10,128			39		10,167			39,529			123			39,652			8,617			32			8,649			34,505			138			34,643
Funds From Operations (FFO)*		17,933			1,142		19,075			71,883			(524	)		71,359			16,826			(627	)		16,199			67,114			2,089			69,203

EPS	$	0.09		$	0.01	$	0.10		$	0.39		$	(0.01	)	$	0.38		$	0.10		$	(0.01	)	$	0.09		$	0.43		$	0.03		$	0.45
FFO per Share*	$	0.23		$	0.01	$	0.24		$	0.98		$	(0.01	)	$	0.98		$	0.24		$	(0.01	)	$	0.23		$	0.95		$	0.03		$	0.98

Weighted Average Shares							79,681									73,001									70,481									70,481

	Year Ended December 31, 2009									Year Ended December 31, 2008									Year Ended December 31, 2007
				Investment									Investment									Investment
	Real Estate			Banking			Total			Real Estate			Banking			Total			Real Estate			Banking		Total
Revenue:
Rental Income	$	122,074		$	-		$	122,074		$	111,198		$	-		$	111,198		$	100,961		$	-	$	100,961
Syndication Fees		-			2,428			2,428			-			3,766			3,766			-			8,986		8,986
Transaction Fees		-			2,080			2,080			-			3,641			3,641			-			9,898		9,898
Management Fees & Interest Income		1,740			-			1,740			1,739			-			1,739			7,026			4		7,030
Other Income		61			-			61			72			-			72			83			35		118

Total Revenue		123,875			4,508			128,383			113,009			7,407			120,416			108,070			18,923		126,993

Expenses
Rental Operating Expenses		30,822			-			30,822			28,999			-			28,999			26,171			-		26,171
Real Estate Taxes and Insurance		19,228			-			19,228			17,740			-			17,740			16,535			-		16,535
Depreciaton and Amortization		36,170			123			36,293			30,222			138			30,360			29,200			134		29,334
Selling, general and administrative		4,828			4,063			8,891			4,229			4,039			8,268			3,440			4,026		7,466
Commissions and Broker Expenses		-			1,801			1,801			100			2,051			2,151			-			4,737		4,737
Interest & Commitment Fees		6,570			-			6,570			4,921			-			4,921			7,684			-		7,684
Total Expenses		97,618			5,987			103,605			86,211			6,228			92,439			83,030			8,897		91,927

Income before Equity, Interest and Taxes		26,257			(1,479	)		24,778			26,798			1,179			27,977			25,040			10,026		35,066
Interest Income		93			4			97			709			36			745			2,317			60		2,377
Equity Income SARs		1,994			-			1,994			2,747			-			2,747			(464	)		-		(464	)
Income before Taxes		28,344			(1,475	)		26,869			30,254			1,215			31,469			26,893			10,086		36,979
Income Taxes		249			(828	)		(579	)		246			(736	)		(490	)		226			647		873
Income from continuing operations		28,095			(647	)		27,448			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		424			-			424			-			-			-			23,789			-		23,789
Net Income	$	28,519		$	(647	)	$	27,872		$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085


Funds From Operations (FFO)*
Net Income	$	28,519		$	(647	)	$	27,872		$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085
Gain on sale of assets, net		(424	)		-			(424	)		-			-			-			(23,789	)		-		(23,789	)
Equity in income of SARs		(2,012	)		-			(2,012	)		(2,747	)		-			(2,747	)		472			-		472
Cash received from SARs		5,628			-			5,628			5,348			-			5,348			1,806			-		1,806
		643			-			643			-			-			-			-			-		-
Depreciation and amortization		39,529			123			39,652			34,505			138			34,643			35,340			135		35,475
Funds From Operations (FFO)*		71,883			(524	)		71,359			67,114			2,089			69,203			65,475			9,574		75,049

EPS	$	0.39		$	(0.01	)	$	0.38		$	0.43		$	0.03		$	0.45		$	0.73		$	0.13	$	0.86
FFO per Share*	$	0.98		$	(0.01	)	$	0.98		$	0.95		$	0.03		$	0.98		$	0.93		$	0.14	$	1.06

Weighted Average Shares								73,001									70,481								70,651

Property NOI Cash*

				Three Months Ended								Year Ended		Three Months Ended								Year Ended
		31-Dec-09
Region	Division	Sq Feet		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total		31-Mar-08		30-Jun-08		30-Sep-08		31-Dec-08		2008 Total

Eastern	Mideast		1,535	$	3,740	$	3,803	$	4,401	$	4,839	$	16,783	$	3,321	$	3,230	$	3,059	$	3,470	$	13,080

Midwest	East North Central		597		1,524		1,578		1,108		1,129		5,339		1,537		1,443		1,400		1,393		5,773
	West North Central		630		1,689		1,758		2,653		1,867		7,967		1,132		1,228		1,381		1,312		5,053
			1,227		3,213		3,336		3,761		2,996		13,306		2,669		2,671		2,781		2,705		10,826

South	Southeast		600		2,220		2,213		2,353		2,138		8,924		2,403		2,507		2,370		2,149		9,429
	Southwest		1,489		5,203		4,953		4,718		4,370		19,244		4,574		4,850		4,954		4,944		19,322
			2,089		7,423		7,166		7,071		6,508		28,168		6,977		7,357		7,324		7,093		28,751

West	Mountain		792		3,194		3,519		3,003		3,126		12,842		2,996		2,969		3,020		2,994		11,979
	Pacific		299		375		311		460		364		1,510		322		359		313		237		1,231
			1,091		3,569		3,830		3,463		3,490		14,352		3,318		3,328		3,333		3,231		13,210

Total			5,942	$	17,945	$	18,135	$	18,696	$	17,833	$	72,609	$	16,285	$	16,586	$	16,497	$	16,499	$	65,867

Property NOI GAAP*

				Three Months Ended								Year Ended		Three Months Ended								Year Ended
		31-Dec-09
Region	Division	Sq Feet		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total		31-Mar-08		30-Jun-08		30-Sep-08		31-Dec-08		2008 Total

Eastern	Mideast		1,535	$	3,749	$	3,726	$	4,483	$	5,232	$	17,190	$	3,339	$	3,289	$	3,131	$	3,554	$	13,313

Midwest	East North Central		597		1,570		1,592		1,161		1,191		5,514		1,619		1,479		1,496		1,561		6,155
	West North Central		630		1,606		1,667		2,626		2,016		7,915		1,043		1,157		1,279		1,215		4,694
			1,227		3,176		3,259		3,787		3,207		13,429		2,662		2,636		2,775		2,776		10,849

South	Southeast		600		2,391		2,343		2,477		2,245		9,456		2,342		2,410		2,263		2,336		9,351
	Southwest		1,489		5,265		4,828		4,820		4,643		19,556		4,708		4,933		5,095		5,042		19,778
			2,089		7,656		7,171		7,297		6,888		29,012		7,050		7,343		7,358		7,378		29,129

West	Mountain		792		3,334		3,548		3,019		3,114		13,015		3,139		3,190		3,231		3,068		12,628
	Pacific		299		404		339		515		425		1,683		345		385		347		276		1,353
			1,091		3,738		3,887		3,534		3,539		14,698		3,484		3,575		3,578		3,344		13,981

Total			5,942	$	18,319	$	18,043	$	19,101	$	18,866	$	74,329	$	16,535	$	16,843	$	16,842	$	17,052	$	67,272

*See page 31 for a reconciliation of Net Income to Property NOI cash and Property NOI GAAP.

	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08
Market Data:
Shares Outstanding		70,481			70,481			79,681			79,681			70,481			70,481			70,481			70,481
Closing market price per share	$	12.30		$	13.25		$	13.10		$	14.61		$	14.32		$	12.64		$	13.00		$	14.75
Market capitalization	$	866,913		$	933,869		$	1,043,817		$	1,164,135		$	1,009,284		$	890,876		$	916,249		$	1,039,590

Dividend Data:
Total dividends paid	$	13,391		$	13,391		$	13,391		$	15,313		$	21,849		$	21,849		$	13,391		$	13,391
Common dividend per share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.31		$	0.31		$	0.19		$	0.19
Quarterly dividend as a % of FFO*		76	%		76	%		76	%		79	%		140	%		108	%		78	%		83	%

Liquidity:
Cash and cash equivalents	$	27,650		$	24,542		$	26,385		$	27,404		$	32,227		$	34,386		$	34,527		$	29,244
Revolving credit facilities:
Gross potential available under current credit facilities		250,000			250,000			250,000			250,000			250,000			250,000			250,000			250,000
Less:
Outstanding balance		(72,468	)		(124,038	)		(91,008	)		(109,008	)		(84,750	)		(109,955	)		(105,118	)		(67,468	)
Total Liquidity	$	205,182		$	150,504		$	185,377		$	168,396		$	197,477		$	174,431		$	179,409		$	211,776

Property by Form of FSP Participation

	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09	31-Dec-08	30-Sep-08
Owned portfolio of commercial real estate:
Number of properties	32	32	31	29	29	27
Square feet	5,942,414	5,934,624	5,682,011	5,417,515	5,417,515	5,153,737
Leased percentage	84%	90%	92%	93%	93%	93%

Investments in non-consolidated commercial real estate:
Number of properties	3	3	3	2	2	2
Square feet	1,995,041	1,995,041	1,994,686	1,461,224	1,461,224	1,461,224
Leased percentage	78%	78%	78%	79%	80%	79%

Single Asset REITs (SARs) managed:
Number of properties	11	9	9	10	10	10
Square feet *	2,406,370	2,155,201	2,154,079	2,684,561	2,684,561	2,683,105
Leased percentage*	91%	90%	87%	88%	92%	92%

Total owned, investments and managed properties:
Number of properties	46	44	43	41	41	39
Square feet *	10,343,825	10,084,866	9,830,776	9,563,300	9,563,300	9,298,066
Leased percentage*	85%	88%	88%	90%	91%	90%


*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	136,683
Stonecroft	Chantilly	VA	East	111,469
Fairview	Falls Church	VA	East	252,613
Innsbrook	Glen Allen	VA	East	303,745
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
Eden Bluff	Eden Prairie	MN	MidWest	153,028
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	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				5,942,414

Managed:
Name	City	State	Region	Square Feet
1441 Main Street	Columbia	SC	East	267,956
303 East Wacker Drive	Chicago	IL	MidWest	844,081
505 Waterford	Plymouth	MN	MidWest	256,348
50 South Tenth Street	Minneapolis	MN	MidWest	498,768
Grand Boulevard	Kansas City	MO	MidWest	532,453
Lakeside Crossing II	Maryland Heights	MO	MidWest	116,000
Centre Pointe V	West Chester	OH	MidWest	135,936
Satellite Place	Duluth	GA	South	134,785
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)				4,401,411

(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-Dec-09	31-Dec-09

East Region Total	9	1,536,315	25.9	$ 236,305	77.83%
East North Central Division	3	596,604	10.0	81,646	82.21%
West North Central	4	629,884	10.6	87,181	99.62%
Midwest Region Total	7	1,226,488	20.6	168,827	91.15%
Southeast	2	599,886	10.1	123,695	93.74%
Southwest	7	1,488,969	25.1	228,838	80.04%
South Region Total	9	2,088,855	35.2	352,533	83.98%
Mountain	4	791,507	13.3	127,985	92.57%
Pacific	3	299,249	5.0	36,183	71.12%
West Region Total	7	1,090,756	18.3	164,168	86.68%

Grand Total	32	5,942,414	100.0	$ 921,833	84.36%

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

		(in thousands)				NBV (1)	% Leased
Region	Division	Name	City	State	S.F.	31-Dec-09	31-Dec-09

West	Pacific	Hillview Center	Milpitas	CA	36	$ 4,246	100.0%
West	Pacific	Montague Business Center	San Jose	CA	146	17,190	100.0%
West	Mountain	380 Interlocken	Broomfield	CO	240	43,266	87.0%
West	Mountain	390 Interlocken	Broomfield	CO	242	43,249	98.5%
West	Mountain	Centennial Technology Center	Colorado Springs	CO	111	11,913	78.5%
West	Mountain	Greenwood Plaza	Englewood	CO	199	29,558	100.0%
South	Southeast	Blue Lagoon Drive	Miami	FL	213	48,102	100.0%
South	Southeast	One Overton Place	Atlanta	GA	387	75,593	90.3%
MidWest	East North Central	Northwest Point	Elk Grove Village	IL	177	30,098	100.0%
MidWest	East North Central	River Crossing	Indianapolis	IN	205	36,679	94.7%
East	Mideast	East Baltimore	Baltimore	MD	325	56,589	94.8%
East	Mideast	Bollman Place	Savage	MD	99	5,027	100.0%
MidWest	East North Central	Southfield Centre	Southfield	MI	215	14,868	55.6%
MidWest	West North Central	Eden Bluff - Eden Prairie	Eden Prairie	MN	153	14,597	100.0%
MidWest	West North Central	Timberlake	Chesterfield	MO	233	36,364	99.0%
MidWest	West North Central	Timberlake East	Chesterfield	MO	116	18,575	99.9%
MidWest	West North Central	Lakeside Crossing	Maryland Heights	MO	128	17,645	100.0%
East	Mideast	Park Seneca	Charlotte	NC	110	7,687	86.3%
East	Mideast	Forest Park	Charlotte	NC	62	6,410	100.0%
South	Southwest	Addison Circle	Addison	TX	294	48,241	61.3%
South	Southwest	Liberty Plaza	Addison	TX	219	25,371	71.5%
South	Southwest	Park Ten	Houston	TX	156	18,946	62.1%
South	Southwest	Eldridge Green	Houston	TX	248	43,623	100.0%
South	Southwest	Park Ten Phase II	Houston	TX	157	31,720	97.8%
South	Southwest	Willow Bend Office Center	Plano	TX	117	18,097	49.8%
South	Southwest	Collins Crossing	Richardson	TX	299	42,839	100.0%
East	Mideast	Meadow Point	Chantilly	VA	137	19,095	50.3%
East	Mideast	Stonecroft	Chantilly	VA	111	19,873	100.0%
East	Mideast	Loudoun Tech Center	Dulles	VA	136	17,758	100.0%
East	Mideast	Fairview	Falls Church	VA	253	61,615	100.0%
East	Mideast	Innsbrook	Glen Allen	VA	304	42,252	20.8%
West	Pacific	Federal Way	Federal Way	WA	117	14,747	26.1%
					5,942	$ 921,833	84.4%

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

			Year			Percentage	Annualized	Average
			Built	Net		Leased as of	Rent as of	Annualized
			or	Rentable	Leased	December 31,	December 31,	Rent per Leased
Property Name	City	State	Renovated	Square Feet	Sq. Ft.	2009 (a)	2009 (b)	Square Feet (c)

Park Seneca	Charlotte	NC	1969	109,550	94,575	86.33%	1,422,561	$ 15.04
Forest Park	Charlotte	NC	1999	62,212	62,212	100.00%	855,162	13.75
Meadow Point	Chantilly	VA	1999	136,683	68,725	50.28%	186,732	2.72 (b)
Innsbrook	Glen Allen	VA	1999	303,745	63,118	20.78%	840,930	13.32
East Baltimore	Baltimore	MD	1989	325,410	308,401	94.77%	8,190,610	26.56
Loudoun Tech Center	Dulles	VA	1999	135,888	135,888	100.00%	1,685,767	12.41
Bollman Place	Savage	MD	1984	98,745	98,745	100.00%	611,232	6.19
Stonecroft	Chantilly	VA	2008	111,469	111,469	100.00%	4,095,160	36.74
Fairview Park	Falls Church	VA	2001	252,613	252,613	100.00%	6,523,980	25.83
East total				1,536,315	1,195,746	77.83%	24,412,134	20.42
Southfield Centre	Southfield	MI	1977	214,697	119,396	55.61%	1,441,108	12.07
Northwest Point	Elk Grove Village	IL	1999	176,848	176,848	100.00%	3,205,146	18.12
River Crossing	Indianapolis	IN	1998	205,059	194,246	94.73%	4,721,703	24.31
Timberlake	Chesterfield	MO	1999	232,766	230,347	98.96%	4,690,866	20.36
Timberlake East	Chesterfield	MO	2000	116,312	116,197	99.90%	2,559,445	22.03
Lakeside Crossing	Sl. Louis	MO	2008	127,778	127,778	100.00%	2,883,950	22.57
Eden Bluff	Eden Praire	MN	2006	153,028	153,028	100.00%	3,884,765	25.39
Midwest total				1,226,488	1,117,840	91.14%	23,386,983	20.92
Blue Lagoon Drive	Miami	FL	2002	212,619	212,619	100.00%	4,597,571	21.62
One Overton Place	Atlanta	GA	2002	387,267	349,728	90.31%	9,211,587	26.34
Willow Bend Office Center	Plano	TX	1999	116,622	58,071	49.79%	1,003,904	17.29
Park Ten	Houston	TX	1999	155,715	96,696	62.10%	2,547,543	26.35
Addison Circle	Addison	TX	1999	293,787	180,006	61.27%	4,156,760	23.09
Collins Crossing	Richardson	TX	1999	298,766	298,766	100.00%	7,711,008	25.81
Eldridge Green	Houston	TX	1999	248,399	248,399	100.00%	6,655,927	26.80
Park Ten Phase II	Houston	TX	2006	156,746	153,326	97.82%	3,989,925	26.02
Liberty Plaza	Addison	TX	1985	218,934	156,559	71.51%	3,396,852	21.70
South Total				2,088,855	1,754,170	83.98%	43,271,077	24.67
Centennial Technology Center	Colorado Springs	CO	1999	110,730	86,910	78.49%	1,316,959	15.15
380 Interlocken	Broomfield	CO	2000	240,184	208,844	86.95%	7,362,819	35.26
Greenwood Plaza	Englewood	CO	2000	199,077	199,077	100.00%	8,097,285	40.67
390 Interlocken	Broomfield	CO	2002	241,516	237,837	98.48%	6,089,039	25.60
Hillview Center	Milpitas	CA	1984	36,288	36,288	100.00%	527,681	14.54
Federal Way	Federal Way	WA	1982	117,010	30,592	26.14%	355,957	11.64
Montague Business Center	San Jose	CA	1982	145,951	145,951	100.00%	2,010,109	13.77
West Total				1,090,756	945,499	86.68%	25,759,849	27.24

Grand Total				5,942,414	5,013,255	84.36%	$ 116,830,043	$ 23.30

(a)	Based on all leases in effect, including month-to-month tenants, divided by the Property's net rentable square footage.

(b)	Represents gross rental charges for the month of December 2009 (including month-to-month leases) multiplied by 12, which can result in unusual per square foot amounts calculated when there are free rent periods (usually with new leases).

(c)	Represents the annualized rent as of December 2009 divided by leased square feet.

Franklin Street Properties Corp. December 31, 2009

Owned Property Capital Expenditures

(in thousands)

									Year
	For the Three Months Ended								Ended
	31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		31-Dec-09
Tenant improvements	$	1,373	$	912	$	931	$	1,528	$	4,744
Deferred leasing costs		162		1,395		645		457		2,659
Building improvements		466		116		265		619		1,466
Total	$	2,001	$	2,423	$	1,841	$	2,604	$	8,869


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

Franklin Street Properties Corp. December 31, 2009

20 Largest tenants with annualized rent and remaining term

As of December 31, 2009
			Remaining	Aggregate	% of Aggregate	Annualized	% of
	Tenant	Number of	Lease Term	Leased	Leased	Rent (a)	Aggregate
	Name	Leases	in Months	Square Feet	Square Feet	(in 000's)	Annualized Rent
1	Noblis, Inc. (e)	1	85	252,613	4.25%	$ 6,524	5.59%
2	CITGO Petroleum Corporation (b)	1	146	248,399	4.18%	6,656	5.70%
3	Tektronix Texas, LLC	1	6	241,372	4.06%	6,385	5.47%
4	Burger King Corporation	1	105	212,619	3.58%	4,598	3.94%
5	New Era of Networks Inc	1	4	199,077	3.35%	8,097	6.93%
6	RGA Reinsurance Company	1	60	185,501	3.12%	3,604	3.09%
7	Citicorp Credit Services, Inc. (c)	1	84	176,848	2.98%	3,158	2.70%
8	C.H. Robinson Worldwide, Inc. (d)	1	138	153,028	2.58%	3,885	3.33%
9	Geisecke & Devrient America, Inc.	1	62	135,888	2.29%	1,686	1.44%
10	Murphy Exploration & Production Company	1	88	133,786	2.25%	3,514	3.01%
11	Monsanto Company	1	61	127,778	2.15%	2,884	2.47%
12	Northrop Grumman Systems Corporation (d)	1	100	111,469	1.88%	4,095	3.51%
13	Maines Paper & Food Service, Inc.	1	47	98,745	1.66%	611	0.52%
14	Amdocs, Inc.	1	17	91,928	1.55%	2,062	1.77%
15	County of Santa Clara	1	96	90,467	1.52%	1,268	1.09%
16	Ober, Kaler, Grimes & Shriver	1	15	89,885	1.51%	2,490	2.13%
17	Vail Holdings, Inc.	1	111	83,620	1.41%	2,082	1.78%
18	International Business Machines Corp.	1	31	83,209	1.40%	978	0.84%
19	Corporate Holdings, LLC	1	51	81,818	1.38%	2,151	1.84%
20	Noble Royalties, Inc.	1	59	78,344	1.32%	2,039	1.75%
				2,876,394	48.40%	$ 68,766	58.88%

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at December 31, 2009 mulitplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	On January 20, 2010, the Company signed a new lease at a Houston, Texas property, for approximately 248,000 square feet of space with one of its current tenants, CITGO Petroleum Corporation, effectively extending the lease expiration from February 29, 2012 to February 28, 2022.

(c)	The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.

(d)	Acquired in June 2009.

(e)	Acquired in September 2009.

Franklin Street Properties Corp. December 31, 2009

Lease Expirations with annualized rent per square foot

			Rentable		Annualized	Percentage
	Number of		Square		Rent	of Total Final
Year of	Leases		Footage	Annualized	Per Square	Annualized
Lease	Expiring		Subject to	Rent Under	Foot Under	Rent Under
Expiration	Within the		Expiring	Expiring	Expiring	Expiring	Cumulative
December 31,	Year		Leases	Leases (a)	Leases	Leases	Total
2010	96	(b)	797,637	22,824,562	28.62	19.54%	19.54%
2011	34		402,779	9,352,006	23.22	8.00%	27.54%
2012	39	(c)	433,197	9,201,711	21.24	7.88%	35.42%
2013	27		354,393	6,472,017	18.26	5.54%	40.96%
2014	22		585,420	12,447,673	21.26	10.65%	51.61%
2015	16		467,676	8,778,595	18.77	7.51%	59.13%
2016	7		487,849	11,500,538	23.57	9.84%	68.97%
2017	5		523,658	12,370,759	23.62	10.59%	79.56%
2018	5		394,913	10,620,629	26.89	9.09%	88.65%
2019	2		88,719	2,302,286	25.95	1.97%	90.62%
2020 and thereafter	4	(c)	477,014	10,959,267	22.97	9.38%	100.00%
	257		5,013,255	116,830,043	23.30	100.00%
Vacancies as of 12/31/09			929,159
Total Portfolio Square Footage			5,942,414

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at December 31, 2009 mulitplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	30 Leases are Month-to-Month

(c)	On January 20, 2010, the Company signed a new lease at a Houston, Texas property, for approximately 248,000 square feet of space with one of its current tenants, CITGO Petroleum Corporation, effectively extending the lease expiration from February 29, 2012 to February 28, 2022.

Acquisitions:

State/Region

Property Type

Square Feet

Date Acquired

Purchase Price

2009

Stonecroft-Chantilly

VA/East

Office

111,469

6/26/09

$ 29,000

Eden Bluff - Eden Prairie

MN/Midwest

Office

153,028

6/30/09

22,784

Fairview

VA/East

Office

252,613

9/30/09

73,000

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			30-Jun-09			30-Sep-09			31-Dec-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08			2009			2008			2007

Net income	$	7,808		$	4,865		$	6,941		$	8,258		$	7,386		$	10,534		$	7,419		$	6,619		$	27,872		$	31,958		$	61,085
(Gain) Loss on sale of assets		-			-			-			(424	)		-			-			-			-			(424	)		-			(23,789	)
GAAP income from non-consolidated REITs		(792	)		(443	)		(475	)		(301	)		(793	)		(694	)		(679	)		(580	)		(2,011	)		(2,746	)		472
Distributions from non-consolidated REITs		1,615			1,523			1,119			1,371			546			1,731			1,561			1,510			5,628			5,348			1,806
Acquisition costs		-			248			391			4			-			-			-			-			643			-			-
Depreciation & amortization		8,707			11,216			9,561			10,167			8,498			8,712			8,784			8,650			39,651			34,644			35,475
Funds From Operations (FFO)		17,338			17,409			17,537			19,075			15,637			20,283			17,085			16,199			71,359			69,204			75,049
Plus gains on sales of assets (GOS)		-			-			-			424			-			-			-			-			424			-			23,789
FFO+GOS (Total Profits)	$	17,338		$	17,409		$	17,537		$	19,499		$	15,637		$	20,283		$	17,085		$	16,199		$	71,783		$	69,204		$	98,838

Per Share Data:
EPS	$	0.11		$	0.07		$	0.10		$	0.10		$	0.10		$	0.15		$	0.11		$	0.09		$	0.38		$	0.45		$	0.86
FFO		0.25			0.25			0.25			0.24			0.22			0.29			0.24			0.23			0.98			0.98			1.06
GOS		-			-			-			-			-			-			-			-			-			-			0.34
FFO+GOS		0.25			0.25			0.25			0.24			0.22			0.29			0.24			0.23			0.98			0.98			1.40

Weighted Average Shares (basic and diluted)		70,481			70,481			71,281			79,681			70,481			70,481			70,481			70,481			73,001			70,481			70,651

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.

Franklin Street Properties Corp. December 31, 2009

Funds Available for Distribution (FAD) Reconciliation and Definition

(in thousands, except per share amounts)

	For the three months ended:
	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08

Net income	$	7,808		$	4,865		$	6,941		$	8,258		$	7,386		$	10,534		$	7,419		$	6,619
(Gain) Loss on sale of assets		-			-			-			(424	)		-			-			-			-
GAAP income from non-consolidated REITs		(792	)		(443	)		(475	)		(301	)		(793	)		(694	)		(679	)		(580	)
Distributions from non-consolidated REITs		1,615			1,522			1,119			1,371			546			1,731			1,561			1,510
Acquisition costs		-			248			391			4			-			-			-			-
Depreciation & amortization		8,707			11,217			9,561			10,167			8,498			8,712			8,784			8,650
Funds From Operations (FFO)		17,338			17,409			17,537			19,075			15,637			20,283			17,085			16,199
Plus gains on sales of assets (GOS)		-			-			-			424			-			-			-			-
FFO+GOS (Total Profits)	$	17,338		$	17,409		$	17,537		$	19,499		$	15,637		$	20,283		$	17,085		$	16,199

Funds Available for Distribution:
Funds From Operations (FFO)		17,338			17,409			17,537			19,075			15,637			20,283			17,085			16,199
Straight-line rent		(374	)		(69	)		(405	)		(1,030	)		(251	)		(256	)		(347	)		(552	)
Capital expenditures		(466	)		(115	)		(265	)		(619	)		(197	)		(373	)		(740	)		(419	)
Funds Available for Distribution (FAD)	$	16,498		$	17,225		$	16,867		$	17,426		$	15,189		$	19,654		$	15,998		$	15,228

Per Share Data:
EPS	$	0.11		$	0.07		$	0.10		$	0.10		$	0.10		$	0.15		$	0.11		$	0.09
FFO		0.25			0.25			0.25			0.24			0.22			0.29			0.24			0.23
GOS		-			-			-			0			-			-			-			-
FFO+GOS		0.25			0.25			0.25			0.24			0.22			0.29			0.24			0.23
FAD		0.23			0.24			0.24			0.22			0.22			0.28			0.23			0.22

Weighted Average Shares (basic and diluted)		70,481			70,481			71,281			79,681			70,481			70,481			70,481			70,481

The Company defines FAD as the sum of (1) FFO, (2) less the effect of straight-line rent, (3) less recurring capital expenditures that are generally for maintenance of properties and are not recovered through rental income from tenants, and (4) plus non-cash compensation expenses, if any. FAD should not be considered as an alternative to net income (determined in accordance with GAAP), as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FAD should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.

Franklin Street Properties Corp. December 31, 2009

	For the three months ended:											Year Ended			For the three months ended:											Year Ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08

Net income	$	7,808		$	4,865		$	6,941		$	8,258	$	27,872		$	7,386		$	10,535	$	7,419		$	6,619		$	31,959
Interest expense		1,577			1,599			1,744			1,650		6,570			1,192			1,051		1,108			1,570			4,921
Depreciation and amortization		8,707			11,216			9,561			10,167		39,651			8,498			8,712		8,784			8,650			34,644
Income taxes		(299	)		(75	)		(270	)		65		(579	)		(375	)		335		(297	)		(153	)		(490	)
EBITDA		17,793			17,605			17,976			20,140		73,514			16,701			20,633		17,014			16,686			71,034

Interest expense	$	1,577		$	1,599		$	1,744		$	1,650	$	6,570		$	1,192		$	1,051	$	1,108		$	1,570		$	4,921
Scheduled principal payments (1)		-			-			-			-		-			-			-		-			-			-
Interest and scheduled principal payments	$	1,577		$	1,599		$	1,744		$	1,650	$	6,570		$	1,192		$	1,051	$	1,108		$	1,570		$	4,921

Interest coverage ratio		11.28			11.01			10.31			12.21		11.19			14.01			19.63		15.36			10.63			14.43

Debt service coverage ratio		11.28			11.01			10.31			12.21		11.19			14.01			19.63		15.36			10.63			14.43

(1)	Scheduled principal payments include required principal payments on our unsecured term debt, which are scheduled to commence in November 2011 using a 30 year amortization schedule.

EBITDA, a non-GAAP financial measure, is defined as net income, plus interest expense, income tax expense and depreciation and amortization expense. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, this presentation of EBITDA may not be comparable to similarly titled measures of other companies. The Company believes that net income is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA.

Reconciliation of Net Income to Property NOI: Cash and GAAP Basis

(in thousands)

	Three months ended:												2009			Three months ended:												2008
	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			Total			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08			Total

Net Income	$	7,808		$	4,865		$	6,941		$	8,258		$	27,872		$	7,386		$	10,535		$	7,419		$	6,619		$	31,959
Add (deduct):
Investment banking segment net loss (income)		778			346			625			(1,103	)		646			488			(3,352	)		253			660			(1,951	)
Gain on sale of assets		-			-			-			(424	)		(424	)		-			-			-			-			-
Management fees (before elimination)		(425	)		(398	)		(402	)		(408	)		(1,633	)		(545	)		(533	)		(549	)		(545	)		(2,172	)
Depreciation and Amortization		7,887			10,200			8,768			9,314			36,169			7,326			7,556			7,628			7,712			30,222
Amortization of favorable leases		793			992			759			815			3,359			1,139			1,120			1,118			906			4,283
Selling, general and administrative		983			1,163			1,324			1,359			4,829			895			1,534			945			854			4,228
Interest expense		1,577			1,599			1,744			1,650			6,570			1,192			1,051			1,108			1,570			4,921
Interest income		(347	)		(136	)		(170	)		(278	)		(931	)		(612	)		(360	)		(314	)		(234	)		(1,520	)
Equity in earnings of nonconsolidated REITs		(792	)		(443	)		(475	)		(283	)		(1,993	)		(793	)		(694	)		(680	)		(580	)		(2,747	)
Non-property specific income and expenses, net		57			(145	)		(13	)		(34	)		(135	)		59			(14	)		(86	)		91			50
GAAP Property NOI		18,319			18,043			19,101			18,866			74,329			16,535			16,843			16,842			17,053			67,273
Straight-line rent		(374	)		92			(405	)		(1,033	)		(1,720	)		(250	)		(257	)		(345	)		(554	)		(1,406	)
Cash Property NOI	$	17,945		$	18,135		$	18,696		$	17,833		$	72,609		$	16,285		$	16,586		$	16,497		$	16,499		$	65,867

Franklin Street Properties Corp. December 31, 2009

Corporate Headquarters	Trading Symbol	Inquiries
401 Edgewater Place, Suite 200	NYSE Amex	Inquires should be directed to:
Wakefield, MA 01880	Symbol: FSP	John Demeritt, CFO
(t) 781-557-1300		877-686-9496 or InvestorRelations@franklinstreetproperties.com
(f) 781-246-2807
www.franklinstreetproperties.com

Common Stock Data (NYSE Amex: FSP)
	For the Three Months Ended
	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09	31-Dec-08	30-Sep-08	30-Jun-08	31-Mar-08
High Price	15.36	15.20	14.84	14.88	15.00	14.80	16.19	15.78
Low Price	10.35	12.00	11.43	9.57	8.13	11.05	12.33	11.40
Closing Price, at the end of the quarter	14.61	13.10	13.25	12.30	14.75	13.00	12.64	14.32
Dividends paid per share – quarterly	0.19	0.19	0.19	0.19	0.19	0.19	0.31	0.31
Closing dividend yield – annualized	5.2%	5.8%	5.7%	6.2%	5.2%	5.8%	9.8%	8.7%
Common shares outstanding (millions)	79.68	79.68	70.48	70.48	70.48	70.48	70.48	70.48

First Quarter:	30-Apr-10		Third Quarter:	5-Nov-10
Second Quarter:	6-Aug-10		Fourth Quarter:	25-Feb-11

	% of
Industry	Porfolio
Computer Consulting Services	30%
Energy	16%
Food	15%
General Consulting	9%
Insurance	7%
Banks and Credit Services	6%
Transportation/Logistics	5%
Government	3%
Legal Services	3%
Resorts	3%
Real Estate Holding Companies	3%
	100.0%

Year	Total Square Feet	% of Square Feet Commercial

2010	797,637	13.4%
2011	402,779	6.8%
2012	433,197	7.3%
2013	354,393	6.0%
2014	585,420	9.8%
2015	467,676	7.9%
2016	487,849	8.2%
2017	523,658	8.8%
2018	394,913	6.6%
2019	88,719	1.5%
2020	75,587	1.3%
2021	153,028	2.6%
2022	248,399	4.2%
Vacant	929,159	15.6%

Total	5,942,414	100.0%