ex99-2.htm

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Company Overview	3-5	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 and Definition	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 September 30, 2010)
Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
Total Properties	33
Total Square Feet	6.4 Million
Common Shares Outstanding	79,837,405
Quarterly Dividend	$0.19
Dividend Yield	6.12%
Total Market Capitalization	$992 Million
Insider Holdings	13.0%

Company Overview

Structure of the Company

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

Dividend Philosophy

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

Board of Directors and Management

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

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@
(f) 781-246-2807		franklinstreetproperties.com
www.franklinstreetproperties.com

Common Stock Data (NYSE Amex: FSP)
	For the Three Months Ended
	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09
High Price	12.86	15.70	15.01	15.36	15.20	14.84	14.88
Low Price	10.99	11.04	11.64	10.35	12.00	11.43	9.57
Closing Price, at the end of the quarter	12.42	11.81	14.43	14.61	13.10	13.25	12.30
Dividends paid per share – quarterly	0.19	0.19	0.19	0.19	0.19	0.19	0.19
Closing dividend yield – annualized	6.12%	6.44%	5.27%	5.20%	5.80%	5.74%	6.18%
Common shares outstanding (millions)	79.84	79.68	79.68	79.68	79.68	70.48	70.48

Timing

Quarterly results are expected to be announced during the week ending on these dates:

First Quarter:	6-May-11	Third Quarter:	4-Nov-11
Second Quarter:	5-Aug-11	Fourth Quarter:	25-Feb-11

																				For the Year
	For the Three Months Ended																			Ended
	31-Mar-10			30-Jun-10		30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09
Income Items:
Revenue:
Rental	$	30,799		$	29,261	$	31,368		$	29,818		$	29,254		$	31,702		$	31,300	$	122,074
Related party revenue		800			1,852		896			583			860			371			4,434		6,248
Other		9			6		20			18			18			19			6		61
Total revenue		31,608			31,119		32,284			30,419			30,132			32,092			35,740		128,383

Total expenses		26,375			25,550		27,972			23,738			25,821			25,912			28,134		103,605

Income before interest income, equity in earnings in non-consolidated REITs and taxes		5,233			5,569		4,312			6,681			4,311			6,180			7,606		24,778
Interest income		8			9		4			36			36			16			9		97
Equity in earnings in non-consolidated REITs		253			380		404			792			443			475			284		1,994

Income before taxes		5,494			5,958		4,720			7,509			4,790			6,671			7,899		26,869
Income tax expense (benefit)		(68	)		4		(37	)		(299	)		(75	)		(270	)		65		(579	)

Income from continuing operations		5,562			5,954		4,757			7,808			4,865			6,941			7,834		27,448
Income from discontinued operations		-			-					-			-			-			-		-
Gain on sale of assets		-			-					-			-			-			424		424

Net income	$	5,562		$	5,954	$	4,757		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872

FFO+GOS*:
FFO	$	16,650		$	16,702	$	16,052		$	17,338		$	17,409		$	17,537		$	19,075	$	71,359
GOS		-			-		-			-			-			-			424		424
FFO+GOS	$	16,650		$	16,702	$	16,052		$	17,338		$	17,409		$	17,537		$	19,499	$	71,783

Per Share Data:
EPS	$	0.07		$	0.07	$	0.06		$	0.11		$	0.07		$	0.10		$	0.10	$	0.38
FFO		0.21			0.21		0.20			0.25			0.25			0.25			0.24		0.98
GOS		-			-		-			-			-			-			-		-
FFO+GOS		0.21			0.21		0.20			0.25			0.25			0.25			0.24		0.98

Weighted Aveage Shares (diluted)		79,681			79,681		79,751			70,481			70,481			71,281			79,681		73,001

Balance Sheet Items:
Real estate, net	$	916,955		$	935,530	$	932,689		$	839,826		$	869,557		$	926,555		$	921,833	$	921,833
Other assets, net		235,359			251,371		256,508			178,682			195,939			219,220			233,933		233,933
Total assets, net		1,152,314			1,186,901		1,189,197			1,018,508			1,065,496			1,145,775			1,155,766		1,155,766
Total liabilities, net		224,537			268,049		278,910			175,075			229,903			201,796			218,492		218,492
Shareholders' equity		927,777			918,852		910,287			843,433			835,593			943,979			937,274		937,274

* 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 Three Months Ended																			Year Ended
	31-Mar-10			30-Jun-10		30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09

Revenue:
Rental	$	30,799		$	29,261	$	31,368		$	29,818		$	29,254		$	31,702		$	31,300	$	122,074
Related party revenue:
Syndication fees		122			540		20			10			29			-			2,389		2,428
Transaction fees		146			753		246			28			514			1			1,537		2,080
Management fees and interest income from loans		532			559		630			545			317			370			508		1,740
Other		9			6		20			18			18			19			6		61
Total revenue		31,608			31,119		32,284			30,419			30,132			32,092			35,740		128,383

Expenses:
Real estate operating expenses		7,973			7,358		8,737			7,280			7,144			7,752			8,646		30,822
Real estate taxes and insurance		5,246			4,318		4,839			4,829			4,686			5,364			4,349		19,228
Depreciation and amortization		9,219			9,243		10,414			7,914			10,225			8,801			9,353		36,293
Selling, general and administrative		2,171			2,559		2,074			2,008			2,127			2,243			2,513		8,891
Commissions		114			336		16			130			40			8			1,623		1,801
Interest		1,652			1,736		1,892			1,577			1,599			1,744			1,650		6,570
Total expenses		26,375			25,550		27,972			23,738			25,821			25,912			28,134		103,605

Income before interest income, equity in earnings of
non-consolidated REITs and taxes		5,233			5,569		4,312			6,681			4,311			6,180			7,606		24,778
Interest income		8			9		4			36			36			16			9		97
Equity in earnings of non-consolidated REITs		253			380		404			792			443			475			284		1,994

		5,494			5,958		4,720			7,509			4,790			6,671			7,899		26,869
Income tax expense (benefit)		(68	)		4		(37	)		(299	)		(75	)		(270	)		65		(579	)

Income from continuing operations		5,562			5,954		4,757			7,808			4,865			6,941			7,834		27,448
Gain on sale of assets		-			-		-			-			-			-			424		424

Net income	$	5,562		$	5,954	$	4,757		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872

Weighted average number of shares outstanding,
basic and diluted		79,681			79,681		79,751			70,481			70,481			71,281			79,681		73,001

Earnings per share, basic and diluted, attributable to:
Continuing operations	$	0.07		$	0.07	$	0.06		$	0.11		$	0.07		$	0.10		$	0.10	$	0.38
Gains on sales of assets		-			-		-			-			-			-			-		-
Net income per share, basic and diluted	$	0.07		$	0.07	$	0.06		$	0.11		$	0.07		$	0.10		$	0.10	$	0.38

	March 31,			June 30,			September 30,			March 31,			June 30,			September 30,			December 31,
	2010			2010			2010			2009			2009			2009			2009
Assets:
Real estate assets:
Land	$	126,447		$	135,075		$	135,075		$	107,153		$	114,677		$	126,695		$	126,447
Buildings and improvements		895,671			912,153			915,977			812,470			840,605			891,918			894,012
Fixtures and equipment		354			458			458			299			310			310			328
		1,022,472			1,047,686			1,051,510			919,922			955,592			1,018,923			1,020,787
Less accumulated depreciation		105,517			112,156			118,821			80,096			86,035			92,368			98,954
Real estate assets, net		916,955			935,530			932,689			839,826			869,557			926,555			921,833

Acquired real estate leases, net		41,783			56,431			53,344			26,042			38,996			48,003			44,757
Investment in non-consolidated REITs		91,787			90,782			89,995			82,388			94,579			93,936			92,910
Assets held for syndication, net		2,791			-			-			13,004			-			-			4,827
Cash and cash equivalents		22,815			21,487			20,554			27,650			24,542			26,385			27,404
Restricted cash		50			59			55			336			335			331			334
Tenant rent receivables, net		1,385			900			2,123			1,084			720			1,400			1,782
Straight-line rent receivable, net		14,215			14,955			16,157			9,190			9,219			9,724			10,754
Prepaid expenses		2,236			2,280			2,511			2,253			2,267			3,430			2,594
Related party mortgage loan receivable		41,325			46,270			53,756			4,725			12,115			23,264			36,535
Other assets		1,220			1,620			1,387			1,517			2,271			1,860			1,228
Deferred leasing commissions, net		15,752			16,587			16,626			10,493			10,895			10,887			10,808
Total assets	$	1,152,314		$	1,186,901		$	1,189,197		$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	119,968			162,968			167,968		$	72,468		$	124,038		$	91,008		$	109,008
Term loan payable		75,000			75,000			75,000			75,000			75,000			75,000			75,000
Accounts payable and accrued expenses		20,467			18,766			25,064			17,687			21,252			25,351			23,787
Accrued compensation		274			1,040			1,334			250			500			750			1,416
Tenant security deposits		1,696			2,004			1,922			1,795			1,765			1,757			1,808
Other liabilities: derivative termination value		1,995			1,735			1,416			3,080			2,394			2,269			2,076
Acquired unfavorable real estate leases, net		5,137			6,536			6,206			4,795			4,954			5,661			5,397
Total liabilities		224,537			268,049			278,910			175,075			229,903			201,796			218,492

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		-			-			-			-			-			-			-
Common stock		8			8			8			7			7			8			8
Additional paid-in capital		1,003,712			1,003,712			1,005,211			889,019			889,019			1,003,729			1,003,713
Accumulated other comprehensive loss		(1,995	)		(1,735	)		(1,416	)		(3,080	)		(2,394	)		(2,269	)		(2,076	)
Accumulated distributions in excess of accumulated earnings		(73,948	)		(83,133	)		(93,516	)		(42,513	)		(51,039	)		(57,489	)		(64,371	)
Total stockholders’ equity		927,777			918,852			910,287			843,433			835,593			943,979			937,274
Total liabilities and stockholders’ equity	$	1,152,314		$	1,186,901		$	1,189,197		$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766

	Nine Months ended September 30,						Twelve Months ended December 31
	2010			2009			2009			2008

Cash flows from operating activities:
Net income	$	16,273		$	19,614		$	27,872		$	31,959
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on assets sold		-			-			(424	)		-
Depreciation and amortization expense		29,078			27,141			36,561			30,444
Amortization of above market lease		1,243			2,544			3,359			4,283
Equity in earnings (losses) from non-consolidated REITs		(1,037	)		(1,710	)		(2,012	)		(2,747	)
Distributions from non-consolidated REITs		3,923			4,257			5,628			5,348
Increase in bad debt reserve		920			111			111			79
Changes in operating assets and liabilities:
Restricted cash		279			5			2			-
Tenant rent receivables		(1,261	)		(182	)		(564	)		64
Straight-line rents		(2,961	)		(849	)		(1,879	)		(1,406	)
Prepaid expenses and other assets		(126	)		(472	)		907			(901	)
Accounts payable and accrued expenses		615			4,294			2,760			448
Accrued compensation		(82	)		(904	)		(238	)		90
Tenant security deposits		114			(117	)		(66	)		-
Payment of deferred leasing commissions		(7,894	)		(2,202	)		(2,659	)		(3,353	)

Net cash provided by operating activities		39,084			51,530			69,358			64,308

Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases		(48,659	)		(130,819	)		(132,323	)		(78,396	)
Investment in non-consolidated REITs		(2	)		(13,200	)		(13,218	)		(10	)
Investment in related party mortgage loan receivable		(17,221	)		(22,139	)		(35,410	)		(1,125	)
Changes in deposits on real estate assets		-			-			-			(1,300	)
Investment in assets held for syndication, net		4,858			13,017			8,159			12,236
Proceeds received on sales of real estate assets		-			-			672			-

Net cash used in investing activities		(61,024	)		(153,141	)		(172,120	)		(68,595	)

Cash flows from financing activities:
Distributions to stockholders		(45,418	)		(40,173	)		(55,313	)		(70,481	)
Proceeds from equity offering, net		1,548			115,385			114,695			-
Borrowings under bank note payable, net		58,960			23,540			41,540			(17,282	)
Borrowings under term note payable		-			-			-			75,000
Deferred financing costs		-			-			-			(694	)

Net cash (used in) provided by financing activities		15,090			98,752			100,922			(13,457	)

Net decreases in cash and cash equivalents		(6,850	)		(2,859	)		(1,840	)		(17,744	)

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

Cash and cash equivalents, end of period	$	20,554		$	26,385		$	27,404		$	29,244

	Three Months Ended September 30, 2010									Nine Months Ended September 30, 2010									Three Months Ended September 30, 2009									Nine Months Ended September 30, 2009
	Real			Investment						Real			Investment						Real			Investment						Real			Investment
	Estate			Banking			Total			Estate			Banking			Total			Estate			Banking			Total			Estate			Banking			Total
Revenue:
Rental Income	$	31,368		$	-		$	31,368		$	91,428		$	-		$	91,428		$	31,702		$	-		$	31,702		$	90,774		$	-		$	90,774
Syndication Fees		-			20			20			-			682			682			-			-			-			-			39			39
Transaction Fees		-			246			246			-			1,145			1,145			-			1			1			-			543			543
Management Fees & Interest Income		630			-			630			1,721			-			1,721			370			-			370			1,232			-			1,232
Other Income		20			-			20			35			-			35			19			-			19			55			-			55

Total Revenue		32,018			266			32,284			93,184			1,827			95,011			32,091			1			32,092			92,061			582			92,643

Expenses
Rental Operating Expenses		8,737			-			8,737			24,068			-			24,068			7,752			-			7,752			22,176			-			22,176
Real Estate Taxes and Insurance		4,839			-			4,839			14,403			-			14,403			5,364			-			5,364			14,879			-			14,879
Depreciaton and Amortization		10,348			66			10,414			28,738			138			28,876			8,768			33			8,801			26,855			85			26,940
Selling, general and administrative		1,404			670			2,074			4,700			2,104			6,804			1,324			919			2,243			3,470			2,908			6,378
Commissions and Broker Expenses		-			16			16			-			466			466			-			8			8			-			178			178
Interest & Commitment Fees		1,892			-			1,892			5,280			-			5,280			1,744			-			1,744			4,920			-			4,920
Total Expenses		27,220			752			27,972			77,189			2,708			79,897			24,952			960			25,912			72,300			3,171			75,471

Income before Equity, Interest and Taxes		4,798			(486	)		4,312			15,995			(881	)		15,114			7,139			(959	)		6,180			19,761			(2,589	)		17,172
Interest Income		4			-			4			20			1			21			16			-			16			85			3			88
Equity Income SARs		404			-			404			1,037			-			1,037			475			-			475			1,710			-			1,710
Income before Taxes		5,206			(486	)		4,720			17,052			(880	)		16,172			7,630			(959	)		6,671			21,556			(2,586	)		18,970
Income Taxes		48			(85	)		(37	)		162			(263	)		(101	)		64			(334	)		(270	)		192			(836	)		(644	)
Net Income (loss)	$	5,158		$	(401	)	$	4,757		$	16,890		$	(617	)	$	16,273		$	7,566		$	(625	)	$	6,941		$	21,364		$	(1,750	)	$	19,614


Funds From Operations (FFO)*
Net Income	$	5,158		$	(401	)	$	4,757		$	16,890		$	(617	)	$	16,273		$	7,566		$	(625	)	$	6,941		$	21,364		$	(1,750	)	$	19,614
Gain on sale of assets, net		-			-			-			-			-			-			-			-			-			-			-			-
Equity in income of SARs		(404	)		-			(404	)		(1,037	)		-			(1,037	)		(475	)		-			(475	)		(1,710	)		-			(1,710	)
Cash received from SARs		1,192			-			1,192			3,923			-			3,923			1,119			-			1,119			4,257			-			4,257
Acquisition costs		(4	)		-			(4	)		125			-			125			391			-			391			639			-			639
Depreciation and amortization		10,445			66			10,511			29,982			138			30,112			9,528			33			9,561			29,399			85			29,484
Funds From Operations (FFO)*		16,387			(335	)		16,052			49,883			(479	)		49,404			18,129			(592	)		17,537			53,949			(1,665	)		52,284

EPS	$	0.06		$	0.00		$	0.06		$	0.21		$	(0.01	)	$	0.20		$	0.11		$	(0.01	)	$	0.10		$	0.30		$	(0.02	)	$	0.28
FFO per Share*	$	0.20		$	(0.00	)	$	0.20		$	0.63		$	(0.01	)	$	0.62		$	0.26		$	(0.01	)	$	0.25		$	0.76		$	(0.02	)	$	0.74

Weighted Average Shares								79,751									79,704									71,281									70,750

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

	Year Ended December 31, 2009									Year Ended December 31, 2008									Year Ended December 31, 2007
	Real			Investment						Real			Investment						Real			Investment
	Estate			Banking			Total			Estate			Banking			Total			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
Acquisition costs		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 to date		Three Months Ended								Year Ended
		30-Sep-10
Region	Division	Sq Feet		31-Mar-10		30-Jun-10		30-Sep-10		2010 Total		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total

Eastern	Mideast		1,538	$	4,031	$	4,390	$	5,551	$	13,972	$	3,740	$	3,803	$	4,401	$	4,839	$	16,783

Midwest	East North Central		597		1,103		1,574		1,184		3,861		1,524		1,578		1,108		1,129		5,339
	West North Central		1,104		2,034		2,000		2,991		7,025		1,689		1,758		2,653		1,867		7,967
			1,701		3,137		3,574		4,175		10,866		3,213		3,336		3,761		2,996		13,306

South	Southeast		600		2,307		2,251		2,285		6,843		2,220		2,213		2,353		2,138		8,924
	Southwest		1,489		4,234		4,238		3,597		12,069		5,203		4,953		4,718		4,370		19,244
			2,089		6,541		6,489		5,882		18,912		7,423		7,166		7,071		6,508		28,168

West	Mountain		790		3,254		2,212		810		6,276		3,194		3,519		3,003		3,126		12,842
	Pacific		299		443		491		498		1,432		375		311		460		364		1,510
			1,089		3,697		2,702		1,308		7,708		3,569		3,830		3,463		3,490		14,352

Total			6,417	$	17,406	$	17,156	$	16,916	$	51,478	$	17,945	$	18,135	$	18,696	$	17,833	$	72,609

Property NOI GAAP*
				Three Months Ended						Year to date		Three Months Ended								Year Ended
		30-Sep-10
Region	Division	Sq Feet		31-Mar-10		30-Jun-10		30-Sep-10		2010 Total		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total

Eastern	Mideast		1,538	$	4,666	$	5,002	$	5,992	$	15,660	$	3,749	$	3,726	$	4,483	$	5,232	$	17,190

Midwest	East North Central		597		1,110		1,602		1,210		3,922		1,570		1,592		1,161		1,191		5,514
	West North Central		1,104		2,164		2,106		3,136		7,406		1,606		1,667		2,626		2,016		7,915
			1,701		3,274		3,708		4,346		11,328		3,176		3,259		3,787		3,207		13,429

South	Southeast		600		2,356		2,355		2,359		7,070		2,391		2,343		2,477		2,245		9,456
	Southwest		1,489		4,404		4,395		3,797		12,596		5,265		4,828		4,820		4,643		19,556
			2,089		6,760		6,750		6,156		19,666		7,656		7,171		7,297		6,888		29,012

West	Mountain		790		3,229		2,502		1,100		6,831		3,334		3,548		3,019		3,114		13,015
	Pacific		299		497		533		524		1,554		404		339		515		425		1,683
			1,089		3,726		3,035		1,624		8,385		3,738		3,887		3,534		3,539		14,698

Total			6,417	$	18,426	$	18,495	$	18,118	$	55,039	$	18,319	$	18,043	$	19,101	$	18,866	$	74,329

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

	31-Mar-10			30-Jun-10			30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09
Market Data:
Shares Outstanding		79,681			79,681			79,837			70,481			70,481			79,681			79,681
Closing market price per share	$	14.43		$	11.81		$	12.42		$	12.30		$	13.25		$	13.10		$	14.61
Market capitalization	$	1,149,793		$	941,029		$	991,581		$	866,913		$	933,869		$	1,043,817		$	1,164,135

Dividend Data:
Total dividends paid	$	15,139		$	15,140		$	15,139		$	13,391		$	13,391		$	13,391		$	15,140
Common dividend per share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.19		$	0.19		$	0.19
Quarterly dividend as a % of FFO*		91	%		91	%		91	%		76	%		76	%		76	%		79	%

Liquidity:
Cash and cash equivalents	$	22,815		$	21,487		$	20,554		$	27,650		$	24,542		$	26,385		$	27,404
Revolving credit facilities:
Gross potential available under current credit facilities		250,000			250,000			250,000			250,000			250,000			250,000			250,000
Less:
Outstanding balance		(119,968	)		(162,968	)		(167,968	)		(72,468	)		(124,038	)		(91,008	)		(109,008	)
Total Liquidity	$	152,847		$	108,519		$	102,586		$	205,182		$	150,504		$	185,377		$	168,396

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

	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09
Owned portfolio of commercial real estate:
Number of properties	33	33	32	32	32	31	29
Square feet	6,417,299	6,418,835	5,942,299	5,942,414	5,934,624	5,682,011	5,417,515
Leased percentage	82%	85%	85%	84%	90%	92%	93%

Investments in non-consolidated commercial real estate:
Number of properties	3	3	3	3	3	3	2
Square feet	1,998,519	1,998,519	1,995,041	1,995,041	1,995,041	1,994,686	1,461,224
Leased percentage	76%	77%	78%	78%	78%	78%	79%

Single Asset REITs (SARs) managed:
Number of properties	11	11	11	11	9	9	10
Square feet *	2,702,287	2,406,370	2,406,370	2,406,370	2,155,201	2,154,079	2,684,561
Leased percentage*	73%	76%	76%	91%	90%	87%	88%

Total owned, investments and managed properties:
Number of properties	47	47	46	46	44	43	41
Square feet *	11,118,105	10,823,724	10,343,710	10,343,825	10,084,866	9,830,776	9,563,300
Leased percentage*	79%	82%	82%	85%	88%	88%	90%

*Prior to September 30, 2010, excludes a property that completed construction on July 9, 2010 with approximately 295,891 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	138,537
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	325,445
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	116,197
Lakeside Crossing	Maryland Heights	MO	MidWest	127,778
Eden Bluff	Eden Prairie	MN	MidWest	153,028
121 South 8th Street	Minneapolis	MN	MidWest	474,661
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	197,527
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				6,417,299

Managed:
Name	City	State	Region	Square Feet
1441 Main Street	Columbia	SC	East	267,982
303 East Wacker Drive	Chicago	IL	MidWest	847,559
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
385 Interlocken	Broomfield	CO	West	295,891
Total				4,700,806

(1) Industrial property, all others are office properties

				NBV (a)	% Leased
	# of Properties	Square Feet	% of Portfolio	30-Sep-10	30-Sep-10

East Region Total	9	1,538,204	24.0	$ 235,637	84.0%
East North Central Division	3	596,604	9.3	79,801	84.3%
West North Central	5	1,104,430	17.2	109,263	96.4%
Midwest Region Total	8	1,701,034	26.5	189,064	92.1%
Southeast	2	599,886	9.3	121,564	95.1%
Southwest	7	1,488,969	23.2	224,670	72.3%
South Region Total	9	2,088,855	32.5	346,233	78.9%
Mountain	4	789,957	12.3	126,156	72.0%
Pacific	3	299,249	4.7	35,598	72.0%
West Region Total	7	1,089,206	17.0	161,755	72.0%

Grand Total	33	6,417,299	100.0	$ 932,689	82.4%

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

		(in thousands)				NBV (1)	% Leased
Region	Division	Name	City	State	S.F.	30-Sep-10	30-Sep-10

West	Pacific	Hillview Center	Milpitas	CA	36	4,192	100.0%
West	Pacific	Montague	San Jose	CA	146	16,969	100.0%
West	Mountain	380 Interlocken	Broomfield	CO	240	42,423	85.1%
West	Mountain	390 Interlocken	Broomfield	CO	241	43,110	98.3%
West	Mountain	Centennial Technology Center	Colorado Springs	CO	111	11,588	66.9%
West	Mountain	Greenwood Plaza	Englewood	CO	197	29,036	26.6%
South	Southeast	Blue Lagoon Drive	Miami	FL	213	47,282	100.0%
South	Southeast	One Overton Place	Atlanta	GA	387	74,282	92.4%
MidWest	East North Central	Northwest Point	Elk Grove Village	IL	177	29,120	100.0%
MidWest	East North Central	River Crossing	Indianapolis	IN	205	36,004	97.5%
East	Mideast	East Baltimore	Baltimore	MD	325	55,811	94.8%
East	Mideast	Bollman Place	Savage	MD	99	4,939	100.0%
MidWest	East North Central	Southfield Centre	Southfield	MI	215	14,678	58.6%
MidWest	West North Central	Eden Bluff - Eden Prairie	Eden Prairie	MN	153	14,418	100.0%
MidWest	West North Central	121 South 8th Street	Minneapolis	MN	474	23,868	92.1%
MidWest	West North Central	Timberlake	Chesterfield	MO	233	35,554	99.0%
MidWest	West North Central	Timberlake East	Chesterfield	MO	116	18,090	100.0%
MidWest	West North Central	Lakeside Crossing	Maryland Heights	MO	128	17,333	100.0%
East	Mideast	Park Seneca	Charlotte	NC	110	7,601	84.0%
East	Mideast	Forest Park	Charlotte	NC	62	6,277	100.0%
South	Southwest	Addison Circle	Addison	TX	294	48,507	95.8%
South	Southwest	Liberty Plaza	Addison	TX	219	24,645	76.9%
South	Southwest	Park Ten	Houston	TX	156	18,554	48.2%
South	Southwest	Eldridge Green	Houston	TX	248	42,778	100.0%
South	Southwest	Park Ten Phase II	Houston	TX	157	31,104	97.8%
South	Southwest	Willow Bend Office Center	Plano	TX	117	17,718	55.5%
South	Southwest	Collins Crossing	Richardson	TX	299	41,362	28.8%
East	Mideast	Meadow Point	Chantilly	VA	138	21,939	97.9%
East	Mideast	Stonecroft	Chantilly	VA	111	19,527	100.0%
East	Mideast	Loudoun Tech Center	Dulles	VA	136	17,502	100.0%
East	Mideast	Fairview	Falls Church	VA	253	60,650	100.0%
East	Mideast	Innsbrook	Glen Allen	VA	304	41,390	31.3%
West	Pacific	Federal Way	Federal Way	WA	117	14,437	28.3%
					6,417	$ 932,689	82.4%
		(1) NBV is for real estate assets, excluding intangibles

							Percentage	Annualized	Average
				Year Built			Leased as of	Rent as of	Annualized
				or	Net Rentable	Leased	September 30,	September 30,	Rent per Leased
Property Name	City	State	Type	Renovated	Square Feet	Sq. Ft.	2010 (a)	2010 (b)	Square Feet (c)

Park Seneca	Charlotte	NC	Office	1969	109,550	92,055	84.0%	1,500,021	$ 16.29
Forest Park	Charlotte	NC	Office	1999	62,212	62,212	100.0%	987,940	15.88
Meadow Point	Chantilly	VA	Office	1999	138,537	135,664	97.9%	1,714,475	12.64
Innsbrook	Glen Allen	VA	Office	1999	303,745	95,102	31.3%	1,581,537	16.63
East Baltimore	Baltimore	MD	Office	1989	325,445	308,445	94.8%	8,124,122	26.34
Loudoun Tech Center	Dulles	VA	Office	1999	135,888	135,888	100.0%	1,736,340	12.78
Bollman Place	Savage	MD	Industrial	1984	98,745	98,745	100.0%	611,232	6.19
Stonecroft	Chantilly	VA	Office	2008	111,469	111,469	100.0%	4,043,600	36.28
Fairview Park	Falls Church	VA	Office	2001	252,613	252,613	100.0%	6,644,676	26.30
East total					1,538,204	1,292,193	84.0%	26,943,942	20.85
Southfield Centre	Southfield	MI	Office	1977	214,697	125,835	58.6%	1,369,677	10.88
Northwest Point	Elk Grove Village	IL	Office	1999	176,848	176,848	100.0%	3,334,487	18.86
River Crossing	Indianapolis	IN	Office	1998	205,059	199,966	97.5%	4,897,049	24.49
Timberlake	Chesterfield	MO	Office	1999	232,766	230,347	99.0%	4,743,489	20.59
Timberlake East	Chesterfield	MO	Office	2000	116,197	116,197	100.0%	2,713,159	23.35
Lakeside Crossing	Sl. Louis	MO	Office	2008	127,778	127,778	100.0%	3,011,727	23.57
Eden Bluff	Eden Praire	MN	Office	2006	153,028	153,028	100.0%	3,977,266	25.99
121 South 8th Street	Minneapolis	MN	Office	1974	474,661	437,065	92.1%	6,343,385	14.51
Midwest total					1,701,034	1,567,064	92.1%	30,390,239	19.39
Blue Lagoon Drive	Miami	FL	Office	2002	212,619	212,619	100.0%	4,505,691	21.19
One Overton Place	Atlanta	GA	Office	2002	387,267	357,812	92.4%	9,149,122	25.57
Willow Bend Office Center	Plano	TX	Office	1999	116,622	64,731	55.5%	1,313,090	20.29
Park Ten	Houston	TX	Office	1999	155,715	74,997	48.2%	2,142,670	28.57
Addison Circle	Addison	TX	Office	1999	293,787	281,503	95.8%	6,660,764	23.66
Collins Crossing	Richardson	TX	Office	1999	298,766	85,944	28.8%	2,045,294	23.80
Eldridge Green	Houston	TX	Office	1999	248,399	248,399	100.0%	7,075,482	28.48
Park Ten Phase II	Houston	TX	Office	2006	156,746	153,326	97.8%	4,003,874	26.11
Liberty Plaza	Addison	TX	Office	1985	218,934	168,253	76.9%	3,246,295	19.29
South Total					2,088,855	1,647,584	78.9%	40,142,283	24.36
Centennial Technology Center	Colorado Springs	CO	Office	1999	110,730	74,030	66.9%	1,249,704	16.88
380 Interlocken	Broomfield	CO	Office	2000	240,184	204,347	85.1%	6,305,123	30.85
Greenwood Plaza	Englewood	CO	Office	2000	197,527	52,499	26.6%	582,546	11.10
390 Interlocken	Broomfield	CO	Office	2002	241,516	237,518	98.3%	5,036,748	21.21
Hillview Center	Milpitas	CA	Office	1984	36,288	36,288	100.0%	544,262	15.00
Federal Way	Federal Way	WA	Office	1982	117,010	33,165	28.3%	641,394	19.34
Montague Business Center	San Jose	CA	Office	1982	145,951	145,951	100.0%	2,184,672	14.97
West Total					1,089,206	783,798	72.0%	16,544,448	21.11

Grand Total					6,417,299	5,290,639	82.4%	$ 114,020,913	$ 21.55

(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 September 2010 (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 September 2010 divided by leased square feet.

September 30, 2010

Owned Property Capital Expenditures

(in thousands)

															Year
	For the Three Months Ended														Ended
	31-Mar-10		30-Jun-10		30-Sep-10		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		31-Dec-09
Tenant improvements	$	1,305	$	935	$	3,634	$	1,373	$	912	$	931	$	1,528	$	4,744
Deferred leasing costs		5,566		1,519		807		162		1,395		645		457		2,659
Building improvements		380		498		671		466		116		265		619		1,466
Total	$	7,251	$	2,952	$	5,112	$	2,001	$	2,423	$	1,841	$	2,604	$	8,869

September 30, 2010

20 Largest Tenants with Annualized Rent
and Remaining Term

			Remaining	Aggregate	% of Aggregate	Annualized	% of
	Tenant	Number of	Lease Term	Leased	Leased	Rent (a)	Total
	Name	Leases	in Months	Square Feet	Square Feet	(in 000's)	Revenue

1	TCF National Bank (b)	2	63	266,495	4.15%	2,628	2.30%
2	Noblis, Inc.	1	76	252,613	3.94%	6,645	5.83%
3	CITGO Petroleum Corporation (c)	1	137	248,399	3.87%	7,075	6.21%
4	Burger King Corporation	1	96	212,619	3.31%	4,506	3.95%
5	RGA Reinsurance Company	1	51	185,501	2.89%	3,707	3.25%
6	Citicorp Credit Services, Inc	1	75	176,848	2.76%	3,334	2.92%
7	C.H. Robinson Worldwide, Inc.	2	129	153,028	2.38%	3,977	3.49%
8	Geisecke & Devrient America, Inc.	1	53	135,888	2.12%	1,736	1.52%
9	Murphy Exploration & Production Company	1	79	133,786	2.08%	3,515	3.08%
10	Monsanto Company	1	52	127,778	1.99%	3,012	2.64%
11	Vail Holdings, Inc. (d)	1	150	121,913	1.90%	1,718	1.51%
12	Northrop Grumman Information Technology, Inc.	1	91	111,469	1.74%	4,044	3.55%
13	Maines Paper & Food Service, Inc.	1	38	98,745	1.54%	611	0.54%
14	Federal National Mortgage Association (e)	1	35	92,358	1.44%	1,755	1.54%
15	Amdocs, Inc.	1	8	91,928	1.43%	2,139	1.88%
16	County of Santa Clara	1	87	90,467	1.41%	1,347	1.18%
17	Ober, Kaler, Grimes & Shriver	1	6	88,736	1.38%	2,470	2.17%
18	ARGO Data Resource Corporation	1	71	83,944	1.31%	2,029	1.78%
19	International Business Machines Corp.	1	22	83,209	1.30%	999	0.88%
20	Corporate Holdings, LLC	1	42	81,818	1.27%	2,201	1.93%

				$ 2,837,542	44.22%	$ 59,448	52.14%

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at June 30, 2010 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	Property was acquired on June 29, 2010.

(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 tenants, CITGO Petroleum Corporation, effectively extending the lease expiration from February 29, 2012 to February 28, 2022.

(d)	On March 22, 2010, the Company signed a lease for an additional approximate 38,000 square feet of space with one of its tenants, Vail Holdings, Inc. through March 2019. The remaining space of approximately 84,000 square feet is leased through March 2023.

(e)	On June 7, 2010, Federal National Mortgage Association commenced a lease for approximately 92,000 square feet of space at an Addison, Texas property. The lease expires September 6, 2013.

September 30, 2010

Tenant Analysis – 20 Largest Tenants, Industry Profile

(as a % of square feet at September 30, 2010)

September 30, 2010

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	56	(b)	233,584	4,677,021	20.02	4.10%	4.10%
2011	56		491,606	10,984,737	22.34	9.63%	13.74%
2012	57		484,504	10,548,280	21.77	9.25%	22.99%
2013	50		537,136	9,811,896	18.27	8.61%	31.59%
2014	31		590,850	13,424,878	22.72	11.77%	43.37%
2015	30		813,431	12,620,569	15.52	11.07%	54.44%
2016	13		516,154	12,030,233	23.31	10.55%	64.99%
2017	6		523,658	12,774,531	24.39	11.20%	76.19%
2018	6		400,633	10,507,293	26.23	9.22%	85.40%
2019	2		43,392	1,029,009	23.71	0.90%	86.31%
2020 and thereafter	10		655,691	15,612,464	23.81	13.69%	100.00%
	317		5,290,639	114,020,913	21.55	100.00%
Vacancies as of 9/30/10			1,126,660
Total Portfolio Square Footage			6,417,299

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at September 30, 2010 mulitplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	35 Leases are Month to Month

Acquisitions:

State/Region

Property

Type

Square

Feet

Date

Acquired

Purchase

Price

2010

121 South 8th Street

MN/Midwest

Office

474,661

6/29/10

$ 39,405

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:

Property

Square

Net Sales

Gain (Loss)

2007

State/Region

Type

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-10			30-Jun-10			30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			2009			2008			2007

Net income	$	5,562		$	5,954		$	4,757		$	7,808		$	4,865		$	6,941		$	8,258		$	27,872		$	31,958		$	61,085
(Gain) Loss on sale of assets		-			-			-			-			-			-			(424	)		(424	)		-			(23,789	)
GAAP income from non-consolidated REITs		(253	)		(380	)		(404	)		(792	)		(443	)		(475	)		(301	)		(2,011	)		(2,746	)		472
Distributions from non-consolidated REITs		1,407			1,324			1,192			1,615			1,523			1,119			1,371			5,628			5,348			1,806
Acquisition costs		-			129			(4	)		-			248			391			4			643			-			-
Depreciation & amortization		9,934			9,675			10,511			8,707			11,216			9,561			10,167			39,651			34,644			35,475
Funds From Operations (FFO)		16,650			16,702			16,052			17,338			17,409			17,537			19,075			71,359			69,204			75,049
Plus gains on sales of assets (GOS)		-			-			-			-			-			-			424			424			-			23,789
FFO+GOS (Total Profits)	$	16,650		$	16,702		$	16,052		$	17,338		$	17,409		$	17,537		$	19,499		$	71,783		$	69,204		$	98,838

Per Share Data:
EPS	$	0.07		$	0.07		$	0.06		$	0.11		$	0.07		$	0.10		$	0.10		$	0.38		$	0.45		$	0.86
FFO		0.21			0.21			0.20			0.25			0.25			0.25			0.24			0.98			0.98			1.06
GOS		-			-			-			-			-			-			-			-			-			0.34
FFO+GOS		0.21			0.21			0.20			0.25			0.25			0.25			0.24			0.98			0.98			1.40

Weighted Average Shares (basic and diluted)		79,681			79,681			79,751			70,481			70,481			71,281			79,681			73,001			70,481			70,651

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.

September 30, 2010

Funds Available for Distribution (FAD)
Reconciliation and Definition

(in thousands, except per share amounts)

	For the three months ended:
	31-Mar-10			30-Jun-10			30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09

Net income	$	5,562		$	5,954		$	4,757		$	7,808		$	4,865		$	6,941		$	8,258
(Gain) Loss on sale of assets		-			-			-			-			-			-			(424	)
GAAP income from non-consolidated REITs		(253	)		(380	)		(404	)		(792	)		(443	)		(475	)		(301	)
Distributions from non-consolidated REITs		1,407			1,324			1,192			1,615			1,522			1,119			1,371
Acquisition costs		-			129			(4	)		-			248			391			4
Depreciation & amortization		9,934			9,675			10,511			8,707			11,217			9,561			10,167
Funds From Operations (FFO)		16,650			16,702			16,052			17,338			17,409			17,537			19,075
Plus gains on sales of assets (GOS)		-			-			-			-			-			-			424
FFO+GOS (Total Profits)	$	16,650		$	16,702		$	16,052		$	17,338		$	17,409		$	17,537		$	19,499

Funds Available for Distribution:
Funds From Operations (FFO)		16,650			16,702			16,052			17,338			17,409			17,537			19,075
Straight-line rent		(1,018	)		(740	)		(1,203	)		(374	)		(69	)		(405	)		(1,030	)
Capital expenditures		(380	)		(498	)		(671	)		(466	)		(115	)		(265	)		(619	)
Funds Available for Distribution (FAD)	$	15,252		$	15,464		$	14,178		$	16,498		$	17,225		$	16,867		$	17,426

Per Share Data:
EPS	$	0.07		$	0.07		$	0.06		$	0.11		$	0.07		$	0.10		$	0.10
FFO		0.21			0.21			0.20			0.25			0.25			0.25			0.24
GOS		-			-			-			-			-			-			0
FFO+GOS		0.21			0.21			0.20			0.25			0.25			0.25			0.24
FAD		0.19			0.19			0.18			0.23			0.24			0.24			0.22

Weighted Average Shares (basic and diluted)		79,681			79,681			79,751			70,481			70,481			71,281			79,681

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.

September 30, 2010

EBITDA Reconciliation and Definition

(in thousands, except ratio amounts)

									Nine Months
	For the three months ended:								Ended						For the three months ended:								Year Ended
	31-Mar-10			30-Jun-10		30-Sep-10			30-Sep-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09

Net income	$	5,562		$	5,954	$	4,757		$	16,273		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872
Interest expense		1,652			1,736		1,892			5,280			1,577			1,599			1,744			1,650		6,570
Depreciation and amortization		9,934			9,675		10,511			30,120			8,707			11,216			9,561			10,167		39,651
Income taxes		(68	)		4		(37	)		(101	)		(299	)		(75	)		(270	)		65		(579	)
EBITDA		17,080			17,369		17,123			51,572			17,793			17,605			17,976			20,140		73,514

Interest expense	$	1,652		$	1,736	$	1,892		$	5,280		$	1,577		$	1,599		$	1,744		$	1,650	$	6,570
Scheduled principal payments (1)		-			-		-			-			-			-			-			-		-
Interest and scheduled principal payments	$	1,652		$	1,736	$	1,892		$	5,280		$	1,577		$	1,599		$	1,744		$	1,650	$	6,570

Interest coverage ratio		10.34			10.01		9.05			9.77			11.28			11.01			10.31			12.21		11.19

Debt service coverage ratio		10.34			10.01		9.05			9.77			11.28			11.01			10.31			12.21		11.19

(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 & GAAP Basis and Definition

(in thousands)

	Three months ended:									Nine Month			Three months ended:												2009
	31-Mar-10			30-Jun-10			30-Sep-10			Total			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			Total

Net Income	$	5,562		$	5,954		$	4,757		$	16,273		$	7,808		$	4,865		$	6,941		$	8,258		$	27,872
Add (deduct):
Investment banking segment net loss (income)		479			(263	)		401			617			778			346			625			(1,103	)		646
Gain on sale of assets		-			-			-			-			-			-			-			(424	)		(424	)
Management fees (before elimination)		(484	)		(359	)		(362	)		(1,205	)		(425	)		(398	)		(402	)		(408	)		(1,633	)
Depreciation and Amortization		9,184			9,205			10,348			28,737			7,887			10,200			8,768			9,314			36,169
Amortization of favorable leases		716			432			96			1,244			793			992			759			815			3,359
Selling, general and administrative		1,447			1,854			1,400			4,701			983			1,163			1,324			1,359			4,829
Interest expense		1,652			1,736			1,892			5,280			1,577			1,599			1,744			1,650			6,570
Interest income		(338	)		(374	)		(431	)		(1,143	)		(347	)		(136	)		(170	)		(278	)		(931	)
Equity in earnings of nonconsolidated REITs		(253	)		(380	)		(404	)		(1,037	)		(792	)		(443	)		(475	)		(283	)		(1,993	)
Non-property specific income and expenses, net		461			690			421			1,572			57			(145	)		(13	)		(34	)		(135	)
GAAP Property NOI		18,426			18,495			18,118			55,039			18,319			18,043			19,101			18,866			74,329
Straight-line rent		(1,020	)		(1,339	)		(1,202	)		(3,561	)		(374	)		92			(405	)		(1,033	)		(1,720	)
Cash Property NOI	$	17,406		$	17,156		$	16,916		$	51,478		$	17,945		$	18,135		$	18,696		$	17,833		$	72,609

GAAP Property NOI is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus selling, general and administrative expenses, depreciation and amortization, interest expense, less equity in earnings of nonconsolidated REITs, interest income, management fee income, gains or losses on the sale of assets and excludes non-property specific income and expenses. The Company also presents this on a cash basis (Cash Property NOI), which is GAAP Property NOI after eliminating the effects of straight-line rent. GAAP Property NOI and Cash Property NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

September 30, 2010

Year	Total Square Feet	% of Square Feet Commercial

2010	233,584	3.6%
2011	491,606	7.7%
2012	484,504	7.6%
2013	537,136	8.4%
2014	590,850	9.2%
2015	813,431	12.7%
2016	516,154	8.0%
2017	523,658	8.2%
2018	400,633	6.2%
2019	43,392	0.7%
2020	92,253	1.4%
2021	231,419	3.6%
2022	248,399	3.9%
2023	83,620	1.3%
Vacant	1,126,660	17.5%

Total	6,417,299	100.0%