EX-99 2 ex99-1.htm

Exhibit 99.1

PRESS RELEASE | Franklin Street Properties Corp.
401 Edgewater Place · Suite 200 · Wakefield, Massachusetts 01880 · (781) 557-1300 · www.franklinstreetproperties.com
Contact: John Demeritt (877) 686-9496 | FOR IMMEDIATE RELEASE

FRANKLIN STREET PROPERTIES CORP. ANNOUNCES

FIRST QUARTER 2011 RESULTS

Wakefield, MA—May 3, 2011—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE Amex: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $16.3 million or $0.20 per share for the first quarter ended March 31, 2011. The Company also announced Net Income of $24.8 million and Earnings Per Share (EPS) of $0.30 for the first quarter and provided an update on other activities.

The Company evaluates its performance based on Net Income, EPS, FFO, Gains on Sales (GOS) and FFO+GOS, and believes each is an important measure. A reconciliation of Net Income to FFO and FFO+GOS, which are non-GAAP financial measures, is provided on page 4 of this press release.

(in 000's except per share data) | Three Months Ended March 31,
| 2011 |  | 2010 |  |  | Increase (Decrease)
Net Income | $ | 24,767 |  |  | $ | 5,562 |  |  |  | $ | 19,205 |
FFO | $ | 16,250 |  |  | $ | 16,651 |  |  |  | $ | (401 | )
GOS |  | 19,592 |  |  |  | — |  |  |  |  | 19,592 |
FFO+GOS | $ | 35,842 |  |  | $ | 16,651 |  |  |  | $ | 19,191 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.30 |  |  | $ | 0.07 |  |  |  | $ | 0.23 |
FFO | $ | 0.20 |  |  | $ | 0.21 |  |  |  | $ | (0.01 | )
GOS | $ | 0.24 |  |  | $ | — |  |  |  | $ | 0.24 |
FFO+GOS | $ | 0.44 |  |  | $ | 0.21 |  |  |  | $ | 0.23 |
Weighted ave shares (diluted) |  | 81,437 |  |  |  | 79,681 |  |  |  |  | 1,757 |

Comparing results for the first quarter of 2011 to 2010, Net Income and EPS increased $19.2 million or $0.23 per share, FFO decreased $0.4 million or $0.01 per share and FFO+GOS increased $19.2 million or $0.23 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $1.0 million and was partially offset by an increase in investment banking FFO of $0.6 million. The decrease in real estate FFO was primarily from the sale of a property in Falls Church, Virginia in January 2011 and was partially offset by three new acquisitions made in March 2011 and the benefits of increased occupancy in the real estate portfolio at March 31, 2011 compared to March 31, 2010. The increase from investment banking resulted from greater sales of securities by our investment bank, which were $7.5 million for the first quarter of 2011 as compared to $2.1 million in the first quarter of 2010. Revenue from our investment bank is primarily based on the value of securities sales. The sale of a property in Falls Church, Virginia contributed $19.6 million or $0.24 per share of GOS for the first quarter of 2011. There was no GOS during the first quarter of 2010.

George J. Carter, President and CEO, commented as follows:

“For the first quarter of 2011, FSP's profits as represented by FFO + GOS totaled approximately $35.8 million or $0.44 per share, an increase of $0.22 per share compared to the fourth quarter of 2010. Dividend distributions declared for the first quarter of 2011, which are payable on May 20, 2011, will be approximately $15.5 million or $0.19 per share.

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FSP's profit results for the first quarter of 2011 had a little bit of "noise" in them when compared to most of our past quarterly earnings periods. Contributing factors included: (1) the sale of our Falls Church, Virginia property, Fairview Park, for a gain, but the consequential loss of its rental stream for most of the quarter; (2) a significant number of newly-signed tenant leases that increased our property portfolio’s leased percentage in the fourth quarter of 2010 and the first quarter of 2011 have not yet “commenced” (although the economic benefit of those new leases should begin to produce a meaningful contribution to rental revenues in Q2); and (3) additional property acquisitions to our portfolio that occurred in the first quarter of 2011 were “back-ended” in the quarter, and consequently, did not contribute a full quarter of rental revenue. Upcoming quarters should see our rental revenues align themselves more typically with the total size and leased percentage of our property portfolio.

Our directly-owned real estate portfolio of 35 properties, totaling approximately 6,845,176 square feet, was approximately 88.4% leased as of March 31, 2011, up from approximately 85.6% leased as of December 31, 2010. Several of our properties experienced significant lease-roll in 2010. As a result, we have experienced lower levels of rental income from these properties. Most of the rental/leasing markets where our properties are located have finally stabilized, albeit at lower levels than before the recent downturn. It is our objective to move overall occupancy levels in the property portfolio back to the ninety-plus percentage range. We believe we will continue to make meaningful progress toward that goal throughout the balance of 2011.

There were four new property acquisitions completed in the first quarter of 2011 for a total purchase price of approximately $216.8 million. Total square footage acquired was approximately 1,086,039 square feet. All of the acquisitions were suburban office properties. Three of the properties totaling approximately 676,241 square feet at a purchase cost of approximately $166.6 million were acquired directly into the FSP portfolio. With the disposition of our Fairview Park property, these acquisitions bring our total directly-owned property portfolio to 35 properties totaling approximately 6,845,176 square feet as of the end of the first quarter. The fourth asset that was acquired is being held for syndication through our Investment Banking Group. Additional property acquisitions during the balance of 2011 are a major objective of FSP, and we would anticipate additional property acquisitions during the course of the year as we utilize our expanded credit facility and its structural flexibility to facilitate our growth.

During the first quarter of 2011, our Investment Banking Group raised $4.75 million to fully subscribe a $30 million private placement syndication that began in the fourth quarter of 2010. In March of this year, the Investment Banking Group began a new $62 million private placement offering and completed $2.75 million of that transaction by the end of the quarter. Total equity raised between the two offerings for the first quarter of 2011 was $7.5 million. The Investment Banking business operated at a small profit for the quarter. Currently, equity-raising activity continues on our $62 million offering, and we continue to see general investor confidence and interest in commercial real estate investing slowly improving. However, capital-raising efforts in this business segment over any specific period of time are likely to remain unpredictable.

On January 21, 2011, FSP sold its Fairview Park office property located in Falls Church, Virginia for approximately $90 million. The sale produced a gain of approximately $19.6 million or $0.24 per share. The transaction occurred via an unsolicited offer from a buyer who was very familiar with the asset and its submarket. Our agreement to sell Fairview Park was motivated by very property-specific considerations. However, we have continued to witness generally improving pricing and liquidity for quality properties in certain markets and may now consider proactively pursuing the possible selective sale of certain other properties, something we have not done for the last three years. We have always had a total-return strategy for our primarily suburban office assets, attempting to take advantage of the traditionally significant cyclical characteristic of the asset class and the markets where the properties are located. All invested capital for both initial acquisition, ongoing leasing and asset management is allocated based upon this strategy. The last three years presented few attractive opportunities on the sell-side of the ledger but have offered a number of solid acquisition choices. However, we are becoming more optimistic that the market cycle may be beginning to turn into a more broadly-based positive environment for property dispositions. Since gain on sale (GOS) is an important part of our total-return strategy, we may start to become more active relative to future property dispositions.

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We believe FSP continues to be in an excellent environment to position itself for meaningful future growth in profits and dividends. Our company will continue to use its capabilities, conservative financial structure, and expanded credit facility to take advantage of competitive tenant leasing requirements, attractive real estate acquisition and disposition opportunities and opportunistic investment banking situations that are presenting themselves as a result of the current cyclical softness in the economy and commercial property market. Since the fourth quarter of 2007 we have viewed 2010 as likely our most challenging year in dealing with a broad, financially-precipitated, cyclical, economic downturn. As we begin the second quarter of 2011, we are optimistic that FSP has managed its major challenges, while taking advantage of positioning opportunities that traditionally only present themselves during severe economic downturns. We are very much looking forward to our future growth potential.”

Dividend Announcement

On April 15, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended March 31, 2011 of $0.19 per share of common stock payable on May 20, 2011 to stockholders of record on April 29, 2011.

Real Estate Update

Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 35 properties and for three non-consolidated REITs that we had interests in as of March 31, 2011. The Company will also be filing a supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.franklinstreetproperties.com.

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A reconciliation of Net Income to FFO and FFO+GOS is shown below and definitions of FFO and FFO+GOS are provided on Supplementary Schedule H. We believe FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently. We also believe that FFO+GOS is an important measure as it considers investment performance.

Reconciliation of Net Income to FFO and FFO+GOS: |  |
|  | Three Months Ended
|  | March 31,
(In thousands, except per share amounts) |  | 2011 |  | 2010
Net Income |  | $ | 24,767 |  |  | $ | 5,562 |
Less gain on sale of property |  |  | (19,592 | ) |  |  | — |
GAAP (income) loss from non-consolidated REITs |  |  | (1,773 | ) |  |  | (253 | )
Distributions from non-consolidated REITs |  |  | 1,767 |  |  |  | 1,407 |
Acquisitions costs |  |  | 269 |  |  |  | — |
Depreciation of real estate & intangible amortization |  |  | 10,812 |  |  |  | 9,935 |
Funds From Operations (FFO) |  |  | 16,250 |  |  |  | 16,651 |
Plus gains on sales of assets (GOS) |  |  | 19,592 |  |  |  | — |
FFO+GOS |  | $ | 35,842 |  |  | $ | 16,651 |
Per Share Data |  |  |  |  |  |  |  |
EPS |  | $ | 0.30 |  |  | $ | 0.07 |
FFO |  | $ | 0.20 |  |  | $ | 0.21 |
GOS |  | $ | 0.24 |  |  | $ | — |
FFO+GOS |  | $ | 0.44 |  |  | $ | 0.21 |
Weighted average shares (basic and diluted) |  |  | 81,437 |  |  |  | 79,681 |

Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.franklinstreetproperties.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

A conference call is scheduled for May 4, 2011 at 10:00 a.m. (ET) to discuss the first quarter 2011 results. To access the call, please dial 1-800-573-4754, passcode 51051421. Internationally, the call may be accessed by dialing 1-617-224-4325, passcode 51051421. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company’s website (www.franklinstreetproperties.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP’s property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP, please visit our website at www.franklinstreetproperties.com.

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Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2010), risks of a lessening of demand for the types of real estate owned by us, changes in government regulations, and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.

Franklin Street Properties Corp.

Earnings Release

Supplementary information

Table of Contents

Franklin Street Properties Corp. Financial Results | A-C
Real Estate Portfolio Summary Information | D
Portfolio and Other Supplementary Information | E
Quarterly Information | F
Percentage of Leased Space | G
Largest 20 Tenants – FSP Owned Portfolio | H
Definition of Funds From Operations (FFO) and FFO+GOS | I

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Income Statements

(Unaudited)

|  | For the Three Months Ended March 31,
(in thousands, except per share amounts) |  | 2011 |  | 2010
Revenue: |  |  |  |  |  |  |  |
Rental |  | $ | 31,270 |  |  | $ | 28,757 |
Related party revenue: |  |  |  |  |  |  |  |
Syndication fees |  |  | 517 |  |  |  | 121 |
Transaction fees |  |  | 691 |  |  |  | 146 |
Management fees and interest income from loans |  |  | 808 |  |  |  | 533 |
Other |  |  | 7 |  |  |  | 9 |
Total revenue |  |  | 33,293 |  |  |  | 29,566 |
Expenses: |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 8,732 |  |  |  | 7,955 |
Real estate taxes and insurance |  |  | 4,783 |  |  |  | 4,996 |
Depreciation and amortization |  |  | 10,819 |  |  |  | 8,496 |
Selling, general and administrative |  |  | 2,368 |  |  |  | 2,171 |
Commissions |  |  | 287 |  |  |  | 114 |
Interest |  |  | 2,409 |  |  |  | 1,652 |
Total expenses |  |  | 29,398 |  |  |  | 25,384 |
Income before interest income, equity in earnings of |  |  |  |  |  |  |  |
non-consolidated REITs and taxes |  |  | 3,895 |  |  |  | 4,182 |
Interest income |  |  | 12 |  |  |  | 8 |
Equity in earnings of non-consolidated REITs |  |  | 968 |  |  |  | 253 |
Income before taxes on income |  |  | 4,875 |  |  |  | 4,443 |
Taxes on income |  |  | 50 |  |  |  | (68 | )
Income from continuing operations |  |  | 4,825 |  |  |  | 4,511 |
Discontinued operations: |  |  |  |  |  |  |  |
Income from discontinued operations |  |  | 350 |  |  |  | 1,051 |
Gain on sale of property less applicable income tax |  |  | 19,592 |  |  |  | — |
Total discontinued operations |  |  | 19,942 |  |  |  | 1,051 |
Net income |  | $ | 24,767 |  |  | $ | 5,562 |
Weighted average number of shares outstanding, |  |  |  |  |  |  |  |
basic and diluted |  |  | 81,437 |  |  |  | 79,681 |
Earnings per share, basic and diluted, attributable to: |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.06 |  |  | $ | 0.06 |
Discontinued operations |  |  | 0.24 |  |  |  | 0.01 |
Net income per share, basic and diluted |  | $ | 0.30 |  |  | $ | 0.07 |

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

|  | March 31, |  | December 31,
(in thousands, except share and par value amounts) |  | 2011 |  | 2010
Assets: |  |  |  |  |  |  |  |
Real estate assets, net |  | $ | 984,441 |  |  | $ | 867,608 |
Acquired real estate leases, less accumulated amortization |  |  |  |  |  |  |  |
of $19,813 and $19,294, respectively |  |  | 85,290 |  |  |  | 40,578 |
Investment in non-consolidated REITs |  |  | 88,652 |  |  |  | 89,327 |
Assets held for syndication, net |  |  | 47,630 |  |  |  | 2,976 |
Assets held for sale |  |  | — |  |  |  | 69,790 |
Cash and cash equivalents |  |  | 49,488 |  |  |  | 68,213 |
Restricted cash |  |  | 440 |  |  |  | 420 |
Tenant rent receivables, less allowance for doubtful accounts |  |  |  |  |  |  |  |
of $1,225 and $1,600, respectively |  |  | 1,688 |  |  |  | 1,922 |
Straight-line rent receivable, less allowance for doubtful accounts |  |  |  |  |  |  |  |
of $135 and $700, respectively |  |  | 20,992 |  |  |  | 18,752 |
Prepaid expenses |  |  | 1,400 |  |  |  | 1,654 |
Related party mortgage loan receivable |  |  | 60,116 |  |  |  | 57,684 |
Other assets |  |  | 5,838 |  |  |  | 853 |
Office computers and furniture, net of accumulated depreciation |  |  |  |  |  |  |  |
of $538 and $493, respectively |  |  | 501 |  |  |  | 503 |
Deferred leasing commissions, net of accumulated amortization |  |  |  |  |  |  |  |
of $7,613 and $7,175, respectively |  |  | 20,426 |  |  |  | 18,455 |
Total assets |  | $ | 1,366,902 |  |  | $ | 1,238,735 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |
Bank note payable |  | $ | 404,000 |  |  | $ | 209,968 |
Term loan payable |  |  | — |  |  |  | 74,850 |
Accounts payable and accrued expenses |  |  | 20,562 |  |  |  | 22,435 |
Accrued compensation |  |  | 603 |  |  |  | 1,803 |
Tenant security deposits |  |  | 2,533 |  |  |  | 1,930 |
Other liabilities: derivative termination value |  |  | 828 |  |  |  | 1,077 |
Acquired unfavorable real estate leases, less accumulated amortization |  |  |  |  |  |  |  |
of $2,770 and $2,744, respectively |  |  | 7,275 |  |  |  | 5,114 |
Total liabilities |  |  | 435,801 |  |  |  | 317,177 |
Commitments and contingencies |  |  |  |  |  |  |  |
Stockholders’ Equity: |  |  |  |  |  |  |  |
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding |  |  | — |  |  |  | — |
Common stock, $.0001 par value, 180,000,000 shares authorized, 81,437,405 and 81,437,405 shares issued and outstanding, respectively |  |  | 8 |  |  |  | 8 |
Additional paid-in capital |  |  | 1,025,491 |  |  |  | 1,025,491 |
Accumulated other comprehensive loss |  |  | (828 | ) |  |  | (1,077 | )
Accumulated distributions in excess of accumulated earnings |  |  | (93,570 | ) |  |  | (102,864 | )
Total stockholders’ equity |  |  | 931,101 |  |  |  | 921,558 |
Total liabilities and stockholders’ equity |  | $ | 1,366,902 |  |  | $ | 1,238,735 |

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

|  | For the Three Months Ended March 31,
(in thousands) |  | 2011 |  | 2010
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 24,767 |  |  | $ | 5,562 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 11,109 |  |  |  | 9,284 |
Amortization of above market lease |  |  | (6 | ) |  |  | 716 |
Gain on sale of real estate assets |  |  | (19,592 | ) |  |  | — |
Equity in earnings of non-consolidated REITs |  |  | (1,066 | ) |  |  | (253 | )
Distributions from non-consolidated REITs |  |  | 1,767 |  |  |  | 1,407 |
Increase (decrease) in bad debt reserve |  |  | (375 | ) |  |  | 380 |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Restricted cash |  |  | (20 | ) |  |  | 284 |
Tenant rent receivables, net |  |  | 609 |  |  |  | 17 |
Straight-line rents, net |  |  | (2,303 | ) |  |  | (1,020 | )
Prepaid expenses and other assets, net |  |  | 88 |  |  |  | 265 |
Accounts payable and accrued expenses |  |  | (1,212 | ) |  |  | (3,917 | )
Accrued compensation |  |  | (1,200 | ) |  |  | (1,142 | )
Tenant security deposits |  |  | 603 |  |  |  | (112 | )
Payment of deferred leasing commissions |  |  | (2,819 | ) |  |  | (5,566 | )
Net cash provided by operating activities |  |  | 10,350 |  |  |  | 5,905 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Purchase of real estate assets, office computers and furniture |  |  | (124,307 | ) |  |  | (3,529 | )
Acquired real estate leases |  |  | (45,032 | ) |  |  | — |
Investments in non-consolidated REITs |  |  | (9 | ) |  |  | — |
Investment in related party mortgage loan receivable |  |  | (2,432 | ) |  |  | (4,790 | )
Changes in deposits on real estate assets |  |  | 200 |  |  |  | — |
Investment in assets held for syndication, net |  |  | (45,186 | ) |  |  | 2,005 |
Proceeds received on sales of real estate assets |  |  | 89,382 |  |  |  | — |
Net cash used in investing activities |  |  | (127,384 | ) |  |  | (6,314 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |
Distributions to stockholders |  |  | (15,473 | ) |  |  | (15,139 | )
Proceeds from equity offering, net |  |  | (90 | ) |  |  | (1 | )
Borrowings under bank note payable |  |  | 404,000 |  |  |  | 10,960 |
Repayment of bank note payable |  |  | (209,968 | ) |  |  | — |
Repayment of term loan payable |  |  | (74,850 | ) |  |  | — |
Deferred financing costs |  |  | (4,328 | ) |  |  | — |
Swap termination payment |  |  | (982 | ) |  |  | — |
Net cash provided by (used in) financing activities |  |  | 98,309 |  |  |  | (4,180 | )
Net decrease in cash and cash equivalents |  |  | (18,725 | ) |  |  | (4,589 | )
Cash and cash equivalents, beginning of period |  |  | 68,213 |  |  |  | 27,404 |
Cash and cash equivalents, end of period |  | $ | 49,488 |  |  | $ | 22,815 |

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)

Commercial portfolio lease expirations (1)
As of March 31, 2011
| Total | % of
Year | Square Feet | Portfolio
2011 | 459,617 | 6.7%
2012 | 301,049 | 4.4%
2013 | 553,847 | 8.1%
2014 | 467,768 | 6.8%
2015 | 781,852 | 11.4%
Thereafter (2) | 4,281,043 | 62.6%
| 6,845,176 | 100.0%

(1) Percentages are determined based upon square footage of expiring commercial leases.

(2) Includes 796,706 square feet of current vacancies.

(dollars & square feet in 000's) | As of March 31, 2011
| # of |  | % of |  | Square | % of
State | Properties | Investment | Portfolio |  | Feet | Portfolio
Texas | 9 | $ 286,272 | 29.1% |  | 1,906 | 27.8%
Colorado | 4 | 125,798 | 12.8% |  | 789 | 11.5%
Virginia | 4 | 100,674 | 10.2% |  | 695 | 10.1%
Minnesota | 2 | 38,073 | 3.9% |  | 627 | 9.2%
Missouri | 3 | 69,695 | 7.1% |  | 477 | 7.0%
Maryland | 2 | 60,189 | 6.1% |  | 424 | 6.2%
Georgia | 1 | 73,294 | 7.4% |  | 387 | 5.7%
Michigan | 1 | 14,549 | 1.5% |  | 215 | 3.1%
Florida | 1 | 46,690 | 4.7% |  | 213 | 3.1%
Indiana | 1 | 35,486 | 3.6% |  | 205 | 3.0%
Illinois | 1 | 28,468 | 2.9% |  | 177 | 2.6%
California | 2 | 20,957 | 2.1% |  | 182 | 2.7%
North Carolina | 3 | 69,983 | 7.1% |  | 431 | 6.3%
Washington | 1 | 14,312 | 1.5% |  | 117 | 1.7%
| 35 | $ 984,441 | 100.0% |  | 6,845 | 100.0%

Property by type: |  |  |  |  |  |
(dollars & square feet | As of March 31, 2011
in 000's) | # of |  | % of |  | Square | % of
Type | Properties | Investment | Portfolio |  | Feet | Portfolio
Office | 34 | $ 979,560 | 99.5% |  | 6,746 | 98.6%
Industrial | 1 | 4,881 | 0.5% |  | 99 | 1.4%
| 35 | $ 984,441 | 100.0% |  | 6,845 | 100.0%

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Capital Expenditures |  |  |  |
Owned Portfolio |  | Three Months Ended
(in thousands) |  | 31-Mar-11 |  | 31-Mar-10
Tenant improvements |  | $ | 2,506 |  |  | $ | 1,305 |
Deferred leasing costs |  |  | 2,819 |  |  |  | 5,566 |
Building improvements |  |  | 449 |  |  |  | 380 |
|  | $ | 5,774 |  |  | $ | 7,251 |

Square foot & leased percentages | March 31, |  | December 31, |
|  | 2011 |  | 2010 |
Owned portfolio of commercial real estate |  |  |  |
| Number of properties | 35 |  | 33 | (1)
| Square feet | 6,845,176 |  | 6,422,357 |
| Leased percentage | 88% |  | 86% |
Investments in non-consolidated REITs |  |  |  |
| Number of properties | 3 |  | 3 |
| Square feet | 1,995,932 |  | 1,995,913 |
| Leased percentage | 85% |  | 77% |
Single Asset REITs (SARs) managed |  |  |  |
| Number of properties | 13 |  | 12 |
| Square feet | 3,325,694 |  | 2,915,896 |
| Leased percentage | 79% |  | 75% |
Total owned, investments & managed properties |  |  |  |
| Number of properties | 51 |  | 48 |
| Square feet | 12,166,802 |  | 11,334,166 |
| Leased percentage | 85% |  | 81% |
(1) Includes asset held for sale at 12/31/2010 |  |  |  |

The following table shows property information for our investments in non-consolidated REITs:

SARs we invest in: |  |  |  |  |
|  |  | Square | % Leased | % Interest
Single Asset REIT name | City | State | Feet | 31-Mar-11 | Held
FSP 303 East Wacker Drive Corp. | Chicago | IL | 844,953 | 92.3% | 43.7%
FSP Grand Boulevard Corp. | Kansas City | MO | 532,472 | 89.3% | 27.0%
FSP Phoenix Tower Corp. | Houston | TX | 618,507 | 70.6% | 4.6%
|  |  | 1,995,932 | 84.8% |

-11-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F: Quarterly Information

(Unaudited)

(in 000's) |  |  |  |  |  |  |  |
|  | Q1 |  | Q2 |  | Q3 |  | Q4
Revenue: |  | 2010 |  | 2010 |  | 2010 |  | 2010
Rental |  | $ | 28,757 |  |  | $ | 27,219 |  |  | $ | 29,391 |  |  | $ | 29,953 |
Related party revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Syndication fees |  |  | 121 |  |  |  | 541 |  |  |  | 20 |  |  |  | 1,862 |
Transaction fees |  |  | 146 |  |  |  | 753 |  |  |  | 246 |  |  |  | 1,582 |
Management fees and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
interest income from loans |  |  | 533 |  |  |  | 558 |  |  |  | 630 |  |  |  | 718 |
Other |  |  | 9 |  |  |  | 6 |  |  |  | 20 |  |  |  | 54 |
Total revenue |  |  | 29,566 |  |  |  | 29,077 |  |  |  | 30,307 |  |  |  | 34,169 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 7,955 |  |  |  | 7,335 |  |  |  | 8,715 |  |  |  | 9,604 |
Real estate taxes and insurance |  |  | 4,996 |  |  |  | 4,061 |  |  |  | 4,659 |  |  |  | 4,454 |
Depreciation and amortization |  |  | 8,496 |  |  |  | 8,521 |  |  |  | 9,691 |  |  |  | 9,764 |
Selling, general and administrative |  |  | 2,171 |  |  |  | 2,559 |  |  |  | 2,074 |  |  |  | 2,482 |
Commissions |  |  | 114 |  |  |  | 336 |  |  |  | 16 |  |  |  | 1,011 |
Interest |  |  | 1,652 |  |  |  | 1,735 |  |  |  | 1,892 |  |  |  | 2,004 |
Total expenses |  |  | 25,384 |  |  |  | 24,547 |  |  |  | 27,047 |  |  |  | 29,319 |
Income before interest income, equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
in earnings in non-consolidated REITs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
and taxes |  |  | 4,182 |  |  |  | 4,530 |  |  |  | 3,260 |  |  |  | 4,850 |
Interest income |  |  | 8 |  |  |  | 9 |  |  |  | 4 |  |  |  | 4 |
Equity in earnings in non-consolidated REITs |  |  | 253 |  |  |  | 380 |  |  |  | 404 |  |  |  | 229 |
Income before taxes on income |  |  | 4,443 |  |  |  | 4,919 |  |  |  | 3,668 |  |  |  | 5,083 |
Taxes on income |  |  | (68 | ) |  |  | 5 |  |  |  | (37 | ) |  |  | 317 |
Income from continuing operations |  |  | 4,511 |  |  |  | 4,914 |  |  |  | 3,705 |  |  |  | 4,766 |
Income from discontinued operations |  |  | 1,051 |  |  |  | 1,040 |  |  |  | 1,052 |  |  |  | 1,054 |
Income before gain on sale of properties |  |  | 5,562 |  |  |  | 5,954 |  |  |  | 4,757 |  |  |  | 5,820 |
Gain on sale of assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net income |  | $ | 5,562 |  |  | $ | 5,954 |  |  | $ | 4,757 |  |  | $ | 5,820 |
FFO and FFO+GOS calculations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 5,562 |  |  | $ | 5,954 |  |  | $ | 4,757 |  |  | $ | 5,820 |
(Gain) Loss on sale of assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
GAAP income from non-consolidated REITs |  |  | (253 | ) |  |  | (380 | ) |  |  | (404 | ) |  |  | (153 | )
Distributions from non-consolidated REITs |  |  | 1,407 |  |  |  | 1,324 |  |  |  | 1,192 |  |  |  | 1,247 |
Acquisition costs of new properties |  |  | — |  |  |  | 129 |  |  |  | (4 | ) |  |  | — |
Depreciation of real estate and intangible amortization |  |  | 9,934 |  |  |  | 9,675 |  |  |  | 10,510 |  |  |  | 10,605 |
Funds From Operations (FFO) |  |  | 16,650 |  |  |  | 16,702 |  |  |  | 16,051 |  |  |  | 17,519 |
Plus gains on sales of assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
FFO+GOS |  | $ | 16,650 |  |  | $ | 16,702 |  |  | $ | 16,051 |  |  | $ | 17,519 |

-12-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Percentage of Leased Space

(Unaudited & Estimated)

| Property Name | Location | Square Feet |  | % Leased as of 12/31/10 (1) |  | Fourth Quarter Average % Leased (2) |  | % Leased as of 3/31/11 (1) |  | First Quarter Average % Leased (2)
1 | PARK SENECA | Charlotte, NC | 109,550 |  | 81.0% |  | 82.9% |  | 78.5% |  | 78.5%
2 | HILLVIEW CENTER | Milpitas, CA | 36,288 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
3 | SOUTHFIELD | Southfield, MI | 214,697 |  | 58.6% |  | 58.6% |  | 61.1% |  | 61.0%
4 | BOLLMAN PLACE | Savage, MD | 98,745 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
5 | FOREST PARK | Charlotte, NC | 62,212 |  | 100.0% |  | 100.0% |  | 77.5% |  | 77.5%
6 | CENTENNIAL | Colorado Springs, CO | 110,730 |  | 66.9% |  | 66.9% |  | 66.9% |  | 66.9%
7 | MEADOW POINT | Chantilly, VA | 138,537 |  | 97.9% |  | 97.9% |  | 100.0% |  | 98.6%
8 | TIMBERLAKE | Chesterfield, MO | 232,766 |  | 99.0% |  | 99.0% |  | 97.7% |  | 97.7%
9 | FEDERAL WAY | Federal Way, WA | 117,010 |  | 33.6% |  | 31.8% |  | 42.0% |  | 38.5%
10 | NORTHWEST POINT | Elk Grove Village, IL | 176,848 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
11 | TIMBERLAKE EAST | Chesterfield, MO | 116,197 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
12 | PARK TEN | Houston, TX | 155,715 |  | 48.2% |  | 48.2% |  | 98.8% |  | 95.4%
13 | MONTAGUE | San Jose, CA | 145,951 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
14 | ADDISON | Addison, TX | 293,787 |  | 95.8% |  | 95.8% |  | 95.8% |  | 95.8%
15 | COLLINS CROSSING | Richardson, TX | 298,766 |  | 79.1% |  | 58.3% |  | 79.1% |  | 79.1%
16 | GREENWOOD PLAZA | Englewood, CO | 197,527 |  | 26.6% |  | 26.6% |  | 60.1% |  | 60.1%
17 | RIVER CROSSING | Indianapolis, IN | 205,059 |  | 97.5% |  | 97.7% |  | 93.8% |  | 93.8%
18 | LIBERTY PLAZA | Addison, TX | 218,934 |  | 73.7% |  | 73.7% |  | 75.6% |  | 74.3%
19 | INNSBROOK | Glen Allen, VA | 308,771 |  | 61.4% |  | 41.9% |  | 60.8% |  | 61.0%
20 | 380 INTERLOCKEN | Broomfield, CO | 240,184 |  | 85.1% |  | 85.1% |  | 85.1% |  | 85.1%
21 | BLUE LAGOON | Miami, FLA | 212,619 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
22 | ELDRIDGE GREEN | Houston, TX | 248,399 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
23 | WILLOW BEND | Plano, TX | 116,622 |  | 55.5% |  | 55.5% |  | 67.0% |  | 63.2%
24 | ONE OVERTON PARK | Atlanta, GA | 387,267 |  | 92.4% |  | 92.4% |  | 92.4% |  | 92.4%
25 | 390 INTERLOCKEN | Broomfield, CO | 241,516 |  | 98.3% |  | 98.3% |  | 95.9% |  | 95.9%
26 | EAST BALTIMORE | Baltimore, MD | 325,445 |  | 84.5% |  | 91.4% |  | 84.5% |  | 84.3%
27 | PARK TEN PHASE II | Houston, TX | 156,746 |  | 97.8% |  | 97.8% |  | 100.0% |  | 99.1%
28 | LAKESIDE CROSSING I | Maryland Heights, MO | 127,778 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
29 | LOUDOUN TECH | Dulles, VA | 135,888 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
30 | 4807 STONECROFT | Chantilly, VA | 111,469 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
31 | EDEN BLUFF | Eden Prairie, MN | 153,028 |  | 100.0% |  | 100.0% |  | 100.0% |  | 100.0%
32 | 121 S. EIGHTH STREET | Minneapolis, MN | 473,884 |  | 92.1% |  | 92.1% |  | 92.2% |  | 92.2%
33 | EMPEROR BOULEVARD | Durham, NC | 259,531 |  | n/a |  | n/a |  | 100.0% |  | 100.0%
34 | LEGACY TENNYSON | Plano, TX | 202,600 |  | n/a |  | n/a |  | 100.0% |  | 100.0%
35 | ONE LEGACY CIRCLE | Plano, TX | 214,110 |  | n/a |  | n/a |  | 89.7% |  | 89.7%
| TOTAL WEIGHTED AVERAGE | 6,845,176 |  | 85.6% |  | 84.1% |  | 88.4% |  | 87.4%

(1) % Lease as of month’s end includes all leases that expire on the last day of the quarter. A major lease (approximately 88,736 square feet) with Ober Kaler at East Baltimore expired on 3/31/11, and the space became vacant 4/1/11.
(2) Average quarterly percentage is the average of the end of the month leased percentage for each of the 3 months during the quarter.
(3) Fourth Quarter Totals included 3150 Fairview Park Drive (252,613 sf) located in Virginia, which was sold in January.

-13-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Largest 20 Tenants – FSP Owned Portfolio

(Unaudited & Estimated)

The following table includes the largest 20 tenants in FSP’s owned portfolio based on leased square feet:

| As of March 31, 2011 |  |  |
|  |  |  | % of
| Tenant | Sq Ft | SIC Code | Portfolio
1 | TCF National Bank | 266,495 | 60 | 3.9%
2 | Quintiles Transnational Corp. | 259,531 | 87 | 3.8%
3 | CITGO Petroleum Corporation | 248,399 | 29 | 3.6%
4 | Burger King Corporation | 212,619 | 58 | 3.1%
5 | Denbury Onshore LLC | 202,600 | 13 | 3.0%
6 | RGA Reinsurance Company | 185,501 | 63 | 2.7%
7 | Citicorp Credit Services, Inc. | 176,848 | 61 | 2.6%
8 | C.H. Robinson Worldwide, Inc. | 153,028 | 47 | 2.2%
9 | SunTrust Bank | 145,204 | 60 | 2.1%
10 | Murphy Exploration & Production Company | 144,677 | 13 | 2.1%
11 | Giesecke & Devrient America, Inc.. | 135,888 | 73 | 2.0%
12 | Monsanto Company | 127,778 | 28 | 1.9%
13 | Vail Holdings, Inc. | 121,913 | 79 | 1.8%
14 | Northrop Grumman Information Technology, Inc. | 111,469 | 73 | 1.6%
15 | Maines Paper & Food Service, Inc | 98,745 | 51 | 1.5%
16 | Federal National Mortgage Association | 92,358 | 61 | 1.3%
17 | Amdocs, Inc. | 91,928 | 73 | 1.3%
18 | County of Santa Clara | 90,467 | 91 | 1.3%
19 | Ober Kaler Grimes & Shriver | 88,736 | 81 | 1.3%
20 | International Business Machines Corp. | 87,587 | 73 | 1.3%
|  | 3,041,771 |  | 44.4%

-14-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

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”) 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.