EX-99.1 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 2012 RESULTS

Wakefield, MA—May 1, 2012—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 $19.6 million or $0.24 per share for the first quarter ended March 31, 2012. The Company also announced Net Income of $5.7 million and Earnings Per Share (EPS) of $0.07 for the first quarter and provided an update on other activities.

The Company evaluates its performance based on Net Income, EPS and FFO and believes each is an important measure. A reconciliation of Net Income to FFO, which is a non-GAAP financial measures, is provided on page 3 of this press release.

(in thousands except per share data) |  | Three Months Ended March 31 |
|  | 2012 |  |  | 2011 |  |  |  | Increase (Decrease) |
Net Income |  | $ | 5,738 |  |  | $ | 24,767 |  |  |  | $ | (19,029 | )
FFO |  | $ | 19,571 |  |  | $ | 16,250 |  |  |  | $ | 3,321 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.07 |  |  | $ | 0.30 |  |  |  | $ | (0.23 | )
FFO |  | $ | 0.24 |  |  | $ | 0.20 |  |  |  | $ | 0.04 |
Weighted ave shares (diluted) |  |  | 82,937 |  |  |  | 81,437 |  |  |  |  | 1,500 |

Comparing results for the first quarter of 2012 to 2011, Net Income and EPS decreased $19.0 million or $0.23 per share and FFO increased $2.9 million or $0.04 per share. The decrease in Net Income and EPS was primarily from the gain on sale of a property in Falls Church, Virginia in January 2011, which contributed $19.6 million or $0.24 per share to the first quarter of 2011. We did not sell any properties during the first quarter of 2012. The increase in FFO was primarily from the benefits of five property acquisitions made in 2011 (including three acquisitions made in March 2011), all of which we had for the full first quarter of 2012. We also had the benefit of interest income from a real estate loan investment as of March 31, 2012 that was made initially in December 2011 and was increased during the first quarter of 2012 to $106.2 million outstanding and had the benefit of increased occupancy in the real estate portfolio at March 31, 2012, which was 89.0% compared to 88.4% at March 31, 2011.

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

“For the first quarter of 2012, FSP's profits as represented by FFO totaled approximately $19.6 million or $0.24 per share, an increase of approximately $1.1 million or $0.02 per share compared to the fourth quarter of 2011. Dividend distributions declared for the first quarter of 2012, which are payable on May 17, 2012, will be approximately $15.8 million or $0.19 per share.

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Our directly-owned real estate portfolio of 36 properties totaling 7,052,068 square feet was approximately 89.0% leased as of March 31, 2012, up from approximately 88.7% leased as of December 31, 2011. Our property portfolio is primarily suburban office assets. Most of the rental/leasing markets where our properties are located remained stable during the first quarter, with some markets showing moderate improvement in occupancy and rental rate levels. Within this environment, we continue to make steady leasing progress. Our property portfolio has relatively modest lease expirations over the next three years and we have as our objective to move overall occupancy levels to the 90+% range during 2012.

There was one additional real estate investment completed in the first quarter of 2012 for a total capital contribution of approximately $30 million. The investment was made as an additional funding amount to our original $76.2 million two-year bridge loan on a central business district office/retail property in Minneapolis, Minnesota. The total loan provided to this property by FSP now totals $106.2 million and is secured by a first mortgage. The property is owned by FSP 50 South Tenth Street Corp., a single-asset REIT affiliate of FSP. The property is a 12-story Class A multi-tenant office/retail property, built in 2001, containing approximately 498,768 rentable square feet of which approximately 90% is office space. The additional funding amount was used primarily to help secure a lease with Target Corporation for effectively 100% of the property’s office space for 18 years through March 2030. As of March 31, 2012, the property was approximately 99% leased, and is located between and connected by a sky bridge directly to the Target Corporation and U.S. Bancorp corporate headquarters buildings in downtown Minneapolis. FSP has four office properties in the greater Minneapolis area, either owned directly or through affiliates, totaling approximately 1.4 million square feet. Now that the 50 South Tenth Street property is stabilized by a long term lease with a credit tenant, FSP 50 South Tenth Street Corp. is exploring the opportunities available for a possible sale of the property and/or third party permanent financing which, among other things, if consummated could repay or replace FSP’s existing bridge loan. Additional real estate investments during 2012 are a major objective of FSP.

There were no property sales in the first quarter of 2012, although we continuously review and evaluate our directly-owned portfolio of 36 properties for potentially advantageous disposition opportunities. In addition, certain properties owned by some of our single-asset REIT affiliates, and in which FSP may have a financial interest, could become possible candidates for sale as they stabilize their occupancies and the markets in which they are located become more attractive to potential acquirers. FSP Phoenix Tower Corp., a single-asset REIT affiliate of FSP, owns a 34-story multi-tenant, Class A office building containing approximately 629,054 square feet located in Houston, Texas that is currently being offered for sale. FSP has both an equity and first mortgage debt investment in FSP Phoenix Tower Corp.

We are very much looking forward to the balance of 2012 and beyond.”

Dividend Announcement

On April 13, 2012, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended March 31, 2012 of $0.19 per share of common stock payable on May 17, 2012 to stockholders of record on April 27, 2012.

Real Estate Update

Supplementary Schedules D and E provide property information for our continuing real estate portfolio of 36 properties and for three non-consolidated REITs that we had preferred stock interests in as of March 31, 2012. 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 is shown below and a definition of FFO is provided on Supplementary Schedule I. 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.

Reconciliation of Net Income to FFO: |  |  |  |  |
| Three Months Ended |
| March 31, |
(In thousands, except per share amounts) | 2012 |  |  | 2011 |
Net Income | $ | 5,738 |  |  | $ | 24,767 |
Less gain on sale of property |  | - |  |  |  | (19,592 | )
GAAP (income) loss from non-consolidated REITs |  | (391 | ) |  |  | (1,773 | )
Distributions from non-consolidated REITs |  | 929 |  |  |  | 1,767 |
Acquisitions costs |  | - |  |  |  | 269 |
Depreciation of real estate & intangible amortization |  | 13,295 |  |  |  | 10,812 |
Funds From Operations (FFO) | $ | 19,571 |  |  | $ | 16,250 |
Per Share Data |  |  |  |  |  |  |
EPS | $ | 0.07 |  |  | $ | 0.30 |
FFO | $ | 0.24 |  |  | $ | 0.20 |
Weighted average shares (basic and diluted) |  | 82,937 |  |  |  | 81,437 |

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 2, 2012 at 10:00 a.m. (ET) to discuss the first quarter 2012 results. To access the call, please dial 1-877-317-6789. Internationally, the call may be accessed by dialing 1-412-317-6789. 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. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. 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, risks of a lessening of demand for the types of real estate owned by us, changes in government regulations and regulatory uncertainty, geopolitical events 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, 2011, 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) |  | 2012 |  |  | 2011 |
Revenue: |  |  |  |  |  |  |  |
Rental |  | $ | 36,668 |  |  | $ | 31,099 |
Related party revenue: |  |  |  |  |  |  |  |
Management fees and interest income from loans |  |  | 2,616 |  |  |  | 808 |
Other |  |  | 34 |  |  |  | 7 |
Total revenue |  |  | 39,318 |  |  |  | 31,914 |
Expenses: |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 9,077 |  |  |  | 8,732 |
Real estate taxes and insurance |  |  | 5,813 |  |  |  | 4,759 |
Depreciation and amortization |  |  | 13,256 |  |  |  | 10,745 |
Selling, general and administrative |  |  | 2,077 |  |  |  | 1,644 |
Interest |  |  | 3,677 |  |  |  | 2,408 |
Total expenses |  |  | 33,900 |  |  |  | 28,288 |
Income before interest income, equity in earnings of |  |  |  |  |  |  |  |
non-consolidated REITs and taxes |  |  | 5,418 |  |  |  | 3,626 |
Interest income |  |  | 8 |  |  |  | 11 |
Equity in earnings of non-consolidated REITs |  |  | 391 |  |  |  | 968 |
Income before taxes on income |  |  | 5,817 |  |  |  | 4,605 |
Taxes on income |  |  | 79 |  |  |  | 50 |
Income from continuing operations |  |  | 5,738 |  |  |  | 4,555 |
Discontinued operations: |  |  |  |  |  |  |  |
Income from discontinued operations, net of income tax |  |  | - |  |  |  | 620 |
Gain on sale of property less applicable income tax |  |  | - |  |  |  | 19,592 |
Total discontinued operations |  |  | - |  |  |  | 20,212 |
Net income |  | $ | 5,738 |  |  | $ | 24,767 |
Weighted average number of shares outstanding, |  |  |  |  |  |  |  |
basic and diluted |  |  | 82,937 |  |  |  | 81,437 |
Earnings per share, basic and diluted, attributable to: |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.07 |  |  | $ | 0.05 |
Discontinued operations |  |  | - |  |  |  | 0.25 |
Net income per share, basic and diluted |  | $ | 0.07 |  |  | $ | 0.30 |

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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) |  | 2012 |  |  | 2011 |
Assets: |  |  |  |  |  |  |  |
Real estate assets, net |  | $ | 1,001,863 |  |  | $ | 1,006,221 |
Acquired real estate leases, less accumulated amortization |  |  |  |  |  |  |  |
of $29,303 and $31,189, respectively |  |  | 87,073 |  |  |  | 91,613 |
Investment in non-consolidated REITs |  |  | 87,061 |  |  |  | 87,598 |
Cash and cash equivalents |  |  | 29,283 |  |  |  | 23,813 |
Restricted cash |  |  | 511 |  |  |  | 493 |
Tenant rent receivables, less allowance for doubtful accounts |  |  |  |  |  |  |  |
of $1,300 and $1,235, respectively |  |  | 1,090 |  |  |  | 1,460 |
Straight-line rent receivable, less allowance for doubtful accounts |  |  |  |  |  |  |  |
of $135 and $135, respectively |  |  | 31,932 |  |  |  | 28,545 |
Prepaid expenses |  |  | 1,164 |  |  |  | 1,223 |
Related party mortgage loan receivable |  |  | 172,286 |  |  |  | 140,516 |
Other assets |  |  | 3,528 |  |  |  | 4,070 |
Office computers and furniture, net of accumulated depreciation |  |  |  |  |  |  |  |
of $470 and $428, respectively |  |  | 478 |  |  |  | 468 |
Deferred leasing commissions, net of accumulated amortization |  |  |  |  |  |  |  |
of $10,174 and $9,220, respectively |  |  | 22,259 |  |  |  | 22,641 |
Total assets |  | $ | 1,438,528 |  |  | $ | 1,408,661 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |
Bank note payable |  | $ | 494,000 |  |  | $ | 449,000 |
Accounts payable and accrued expenses |  |  | 23,311 |  |  |  | 26,446 |
Accrued compensation |  |  | 446 |  |  |  | 2,222 |
Tenant security deposits |  |  | 2,181 |  |  |  | 2,008 |
Acquired unfavorable real estate leases, less accumulated amortization |  |  |  |  |  |  |  |
of $4,069 and $3,759, respectively |  |  | 7,243 |  |  |  | 7,618 |
Total liabilities |  |  | 527,181 |  |  |  | 487,294 |
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, 82,937,405 and 82,937,405 shares issued and outstanding, respectively |  |  | 8 |  |  |  | 8 |
Additional paid-in capital |  |  | 1,042,876 |  |  |  | 1,042,876 |
Accumulated distributions in excess of accumulated earnings |  |  | (131,537 | ) |  |  | (121,517 | )
Total stockholders’ equity |  |  | 911,347 |  |  |  | 921,367 |
Total liabilities and stockholders’ equity |  | $ | 1,438,528 |  |  | $ | 1,408,661 |

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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) |  | 2012 |  |  | 2011 |
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 5,738 |  |  | $ | 24,767 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 13,763 |  |  |  | 11,109 |
Amortization of above market lease |  |  | 40 |  |  |  | (6 | )
Gain on sale of real estate assets |  |  | - |  |  |  | (19,592 | )
Equity in earnings of non-consolidated REITs |  |  | (391 | ) |  |  | (1,066 | )
Distributions from non-consolidated REITs |  |  | 487 |  |  |  | 1,283 |
Increase (decrease) in bad debt reserve |  |  | 65 |  |  |  | (375 | )
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Restricted cash |  |  | (18 | ) |  |  | (20 | )
Tenant rent receivables, net |  |  | 305 |  |  |  | 609 |
Straight-line rents, net |  |  | (1,517 | ) |  |  | (2,303 | )
Prepaid expenses and other assets, net |  |  | 93 |  |  |  | 88 |
Accounts payable and accrued expenses |  |  | (3,388 | ) |  |  | (1,212 | )
Accrued compensation |  |  | (1,776 | ) |  |  | (1,200 | )
Tenant security deposits |  |  | 173 |  |  |  | 603 |
Payment of deferred leasing commissions |  |  | (641 | ) |  |  | (2,819 | )
Net cash provided by operating activities |  |  | 12,933 |  |  |  | 9,866 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Purchase of real estate assets, office computers and furniture |  |  | (5,376 | ) |  |  | (124,307 | )
Acquired real estate leases |  |  | - |  |  |  | (45,032 | )
Investments in non-consolidated REITs |  |  | (1 | ) |  |  | (9 | )
Distributions in excess of earnings from non-consolidated REITs |  |  | 442 |  |  |  | 484 |
Investment in related party mortgage loan receivable |  |  | (31,770 | ) |  |  | (2,432 | )
Changes in deposits on real estate assets |  |  | - |  |  |  | 200 |
Investment in assets held for syndication, net |  |  | - |  |  |  | (45,186 | )
Proceeds received on sales of real estate assets |  |  | - |  |  |  | 89,382 |
Net cash used in investing activities |  |  | (36,705 | ) |  |  | (126,900 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |
Distributions to stockholders |  |  | (15,758 | ) |  |  | (15,473 | )
Proceeds from equity offering, net |  |  | - |  |  |  | (90 | )
Borrowings under bank note payable |  |  | 45,000 |  |  |  | 404,000 |
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 financing activities |  |  | 29,242 |  |  |  | 98,309 |
Net decrease in cash and cash equivalents |  |  | 5,470 |  |  |  | (18,725 | )
Cash and cash equivalents, beginning of period |  |  | 23,813 |  |  |  | 68,213 |
Cash and cash equivalents, end of period |  | $ | 29,283 |  |  | $ | 49,488 |

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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, 2012
|  | Total |  |  | % of |
Year |  | Square Feet |  |  | Portfolio |
2012 |  |  | 221,088 |  |  |  | 3.1% |
2013 |  |  | 474,097 |  |  |  | 6.7% |
2014 |  |  | 428,487 |  |  |  | 6.1% |
2015 |  |  | 802,138 |  |  |  | 11.4% |
2016 |  |  | 923,880 |  |  |  | 13.1% |
Thereafter (2) |  |  | 4,202,378 |  |  |  | 59.6% |
|  |  | 7,052,068 |  |  |  | 100.0% |

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

(2) Includes 774,565 square feet of current vacancies.

(dollars & square feet in thousands) |  | As of March 31, 2012 |
|  | # of |  |  |  |  |  | % of |  |  | Square |  |  | % of |
State |  | Properties |  |  | Investment |  |  | Portfolio |  |  | Feet |  |  | Portfolio |
Texas |  |  | 10 |  |  | $ | 292,871 |  |  |  | 29.2% |  |  |  | 2,028 |  |  |  | 28.8% |
Colorado |  |  | 4 |  |  |  | 125,152 |  |  |  | 12.5% |  |  |  | 789 |  |  |  | 11.2% |
Virginia |  |  | 4 |  |  |  | 102,008 |  |  |  | 10.2% |  |  |  | 685 |  |  |  | 9.7% |
Minnesota |  |  | 2 |  |  |  | 38,067 |  |  |  | 3.8% |  |  |  | 626 |  |  |  | 8.9% |
Missouri |  |  | 3 |  |  |  | 67,510 |  |  |  | 6.7% |  |  |  | 477 |  |  |  | 6.8% |
North Carolina |  |  | 3 |  |  |  | 68,290 |  |  |  | 6.8% |  |  |  | 431 |  |  |  | 6.1% |
Georgia |  |  | 1 |  |  |  | 71,307 |  |  |  | 7.1% |  |  |  | 387 |  |  |  | 5.5% |
Illinois |  |  | 2 |  |  |  | 50,593 |  |  |  | 5.1% |  |  |  | 372 |  |  |  | 5.2% |
Maryland |  |  | 1 |  |  |  | 54,135 |  |  |  | 5.4% |  |  |  | 325 |  |  |  | 4.6% |
Michigan |  |  | 1 |  |  |  | 14,859 |  |  |  | 1.5% |  |  |  | 215 |  |  |  | 3.0% |
Florida |  |  | 1 |  |  |  | 46,581 |  |  |  | 4.7% |  |  |  | 213 |  |  |  | 3.0% |
Indiana |  |  | 1 |  |  |  | 34,403 |  |  |  | 3.4% |  |  |  | 205 |  |  |  | 2.9% |
California |  |  | 2 |  |  |  | 21,843 |  |  |  | 2.2% |  |  |  | 182 |  |  |  | 2.6% |
Washington |  |  | 1 |  |  |  | 14,244 |  |  |  | 1.4% |  |  |  | 117 |  |  |  | 1.7% |
|  |  | 36 |  |  | $ | 1,001,863 |  |  |  | 100.0% |  |  |  | 7,052 |  |  |  | 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-12 |  |  | 31-Mar-11 |
Tenant improvements |  | $ | 3,014 |  |  | $ | 2,506 |
Deferred leasing costs |  |  | 2,196 |  |  |  | 2,819 |
Building improvements |  |  | 746 |  |  |  | 449 |
|  | $ | 5,956 |  |  | $ | 5,774 |

Square foot & leased percentages | March 31, |  | December 31,
|  | 2012 |  | 2011
Owned portfolio of commercial real estate |  |  |
| Number of properties | 36 |  | 36
| Square feet | 7,052,068 |  | 7,052,068
| Leased percentage | 89% |  | 89%
Investments in non-consolidated REITs |  |  |
| Number of properties | 3 |  | 3
| Square feet | 2,004,953 |  | 2,001,542
| Leased percentage | 90% |  | 87%
Single Asset REITs (SARs) managed |  |  |
| Number of properties | 13 |  | 13
| Square feet | 3,322,570 |  | 3,322,639
| Leased percentage | 84% |  | 80%
Total owned, investments & managed properties |  |  |
| Number of properties | 52 |  | 52
| Square feet | 12,379,591 |  | 12,376,249
| Leased percentage | 88% |  | 86%

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

|  |  | Square | % Leased | % Interest
Single Asset REIT name | City | State | Feet | 31-Mar-12 | Held
FSP 303 East Wacker Drive Corp. | Chicago | IL | 844,953 | 93.8% | 43.7%
FSP Grand Boulevard Corp. | Kansas City | MO | 536,056 | 82.2% | 27.0%
FSP Phoenix Tower Corp. | Houston | TX | 623,944 | 90.8% | 4.6%
|  |  | 2,004,953 | 89.8% |

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F: Quarterly Information

(Unaudited)

(in thousands) |  |  |  |  |  |  |  |  |  |  |  |
|  | Q1 |  |  | Q2 |  |  | Q3 |  |  | Q4 |
Revenue: |  | 2011 |  |  | 2011 |  |  | 2011 |  |  | 2011 |
Rental |  | $ | 31,099 |  |  | $ | 33,606 |  |  | $ | 33,672 |  |  | $ | 37,014 |
Related party revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management fees and interest income from loans |  |  | 808 |  |  |  | 1,150 |  |  |  | 1,037 |  |  |  | 1,051 |
Other |  |  | 6 |  |  |  | 7 |  |  |  | 7 |  |  |  | 29 |
Total revenues |  |  | 31,913 |  |  |  | 34,763 |  |  |  | 34,716 |  |  |  | 38,094 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 8,730 |  |  |  | 8,765 |  |  |  | 9,328 |  |  |  | 9,862 |
Real estate taxes and insurance |  |  | 4,759 |  |  |  | 5,228 |  |  |  | 5,020 |  |  |  | 5,426 |
Depreciation and amortization |  |  | 10,745 |  |  |  | 12,029 |  |  |  | 12,351 |  |  |  | 13,124 |
Selling, general and administrative |  |  | 1,645 |  |  |  | 1,602 |  |  |  | 1,654 |  |  |  | 2,012 |
Interest |  |  | 2,408 |  |  |  | 3,578 |  |  |  | 3,419 |  |  |  | 3,261 |
Total expenses |  |  | 28,287 |  |  |  | 31,202 |  |  |  | 31,772 |  |  |  | 33,685 |
Income before interest income, equity in earnings of non-consolidated REITs and taxes on income |  |  | 3,626 |  |  |  | 3,561 |  |  |  | 2,944 |  |  |  | 4,409 |
Interest income |  |  | 11 |  |  |  | 5 |  |  |  | 3 |  |  |  | 3 |
Equity in earnings of non-consolidated REITs |  |  | 968 |  |  |  | 1,166 |  |  |  | 573 |  |  |  | 978 |
Income before taxes on income |  |  | 4,605 |  |  |  | 4,732 |  |  |  | 3,520 |  |  |  | 5,390 |
Taxes on income |  |  | 50 |  |  |  | 68 |  |  |  | 67 |  |  |  | 82 |
Income from continuing operations |  |  | 4,555 |  |  |  | 4,664 |  |  |  | 3,453 |  |  |  | 5,308 |
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from discontinued operations, net of tax |  |  | 619 |  |  |  | 3,371 |  |  |  | (139 | ) |  |  | (246 | )
Gain on sale of properties, less applicable income tax |  |  | 19,593 |  |  |  | 2,346 |  |  |  | - |  |  |  | - |
Total discontinued operations |  |  | 20,212 |  |  |  | 5,717 |  |  |  | (139 | ) |  |  | (246 | )
Net income |  | $ | 24,767 |  |  | $ | 10,381 |  |  | $ | 3,314 |  |  | $ | 5,062 |
FFO and FFO+GOS calculations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 24,767 |  |  | $ | 10,381 |  |  | $ | 3,314 |  |  | $ | 5,062 |
(Gain) Loss on sale of assets |  |  | (19,593 | ) |  |  | (2,346 | ) |  |  | - |  |  |  | - |
GAAP income from non-consolidated REITs |  |  | (1,773 | ) |  |  | (1,166 | ) |  |  | (573 | ) |  |  | (978 | )
Distributions from non-consolidated REITs |  |  | 1,767 |  |  |  | 1,215 |  |  |  | 1,104 |  |  |  | 970 |
Acquisition costs |  |  | 269 |  |  |  | 9 |  |  |  | 185 |  |  |  | 157 |
Depreciation of real estate & intangible amortization |  |  | 10,812 |  |  |  | 12,047 |  |  |  | 12,332 |  |  |  | 13,248 |
Funds From Operations (FFO) |  |  | 16,249 |  |  |  | 20,140 |  |  |  | 16,362 |  |  |  | 18,459 |
Plus gains on sales of assets |  |  | 19,593 |  |  |  | 2,346 |  |  |  | - |  |  |  | - |
FFO+GOS |  | $ | 35,842 |  |  | $ | 22,486 |  |  | $ | 16,362 |  |  | $ | 18,459 |

-11-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Percentage of Leased Space

(Unaudited & Estimated)

|  |  |  |  | Fourth |  | First
|  |  |  | % Leased (1) | Quarter | % Leased (1) | Quarter
|  |  |  | as of | Average % | as of | Average %
| Property Name | Location | Square Feet | 31-Dec-11 | Leased (2) | 31-Mar-12 | Leased (2)
1 | PARK SENECA | Charlotte, NC | 109,550 | 80.6% | 80.6% | 80.5% | 79.9%
2 | HILLVIEW CENTER | Milpitas, CA | 36,288 | 100.0% | 100.0% | 100.0% | 100.0%
3 | SOUTHFIELD | Southfield, MI | 214,697 | 39.2% | 39.2% | 39.2% | 39.2%
4 | FOREST PARK | Charlotte, NC | 62,212 | 100.0% | 100.0% | 100.0% | 100.0%
5 | CENTENNIAL | Colorado Springs, CO | 110,405 | 85.4% | 73.0% | 85.4% | 85.4%
6 | MEADOW POINT | Chantilly, VA | 138,537 | 100.0% | 100.0% | 100.0% | 100.0%
7 | TIMBERLAKE | Chesterfield, MO | 232,766 | 97.7% | 97.7% | 97.7% | 97.7%
8 | FEDERAL WAY | Federal Way, WA | 117,010 | 47.0% | 44.3% | 47.0% | 47.0%
9 | NORTHWEST POINT | Elk Grove Village, IL | 176,848 | 100.0% | 100.0% | 100.0% | 100.0%
10 | TIMBERLAKE EAST | Chesterfield, MO | 116,197 | 85.9% | 85.9% | 85.9% | 85.9%
11 | PARK TEN | Houston, TX | 155,715 | 81.2% | 81.2% | 81.2% | 81.2%
12 | MONTAGUE | San Jose, CA | 145,951 | 100.0% | 100.0% | 100.0% | 100.0%
13 | ADDISON | Addison, TX | 293,787 | 95.8% | 95.8% | 95.8% | 95.8%
14 | COLLINS CROSSING | Richardson, TX | 298,766 | 88.4% | 88.4% | 87.8% | 87.8%
15 | GREENWOOD PLAZA | Englewood, CO | 197,527 | 48.9% | 48.4% | 48.9% | 48.9%
16 | RIVER CROSSING | Indianapolis, IN | 205,059 | 93.5% | 93.5% | 93.9% | 93.1%
17 | LIBERTY PLAZA | Addison, TX | 218,934 | 77.9% | 74.8% | 76.4% | 77.4%
18 | INNSBROOK | Glen Allen, VA | 298,456 | 98.3% | 90.7% | 98.3% | 98.3%
19 | 380 INTERLOCKEN | Broomfield, CO | 240,184 | 85.1% | 85.1% | 89.5% | 86.5%
20 | BLUE LAGOON | Miami, FL | 212,619 | 100.0% | 100.0% | 100.0% | 100.0%
21 | ELDRIDGE GREEN | Houston, TX | 248,399 | 100.0% | 100.0% | 100.0% | 100.0%
22 | WILLOW BEND | Plano, TX | 116,622 | 83.1% | 83.1% | 77.4% | 77.4%
23 | ONE OVERTON PARK | Atlanta, GA | 387,267 | 89.3% | 90.0% | 91.7% | 90.9%
24 | 390 INTERLOCKEN | Broomfield, CO | 241,516 | 93.4% | 94.3% | 96.4% | 94.6%
25 | EAST BALTIMORE | Baltimore, MD | 325,445 | 55.7% | 55.7% | 56.2% | 55.9%
26 | PARK TEN PHASE II | Houston, TX | 156,746 | 100.0% | 100.0% | 100.0% | 100.0%
27 | LAKESIDE CROSSING I | Maryland Heights, MO | 127,778 | 100.0% | 100.0% | 100.0% | 100.0%
28 | LOUDOUN TECH | Dulles, VA | 135,888 | 100.0% | 100.0% | 100.0% | 100.0%
29 | 4807 STONECROFT | Chantilly, VA | 111,469 | 100.0% | 100.0% | 100.0% | 100.0%
30 | EDEN BLUFF | Eden Prairie, MN | 153,028 | 100.0% | 100.0% | 100.0% | 100.0%
31 | 121 SOUTH EIGHTH ST | Minneapolis, MN | 472,616 | 93.6% | 93.6% | 93.8% | 93.8%
32 | EMPEROR BOULEVARD | Durham, NC | 259,531 | 100.0% | 100.0% | 100.0% | 100.0%
33 | LEGACY TENNYSON CTR | Plano, TX | 202,600 | 100.0% | 100.0% | 100.0% | 100.0%
34 | ONE LEGACY | Plano, TX | 214,110 | 100.0% | 100.0% | 100.0% | 100.0%
35 | 909 DAVIS | Evanston, IL | 195,245 | 94.8% | 94.8% | 94.8% | 94.8%
36 | 1410 EAST RENNER | Richardson, TX | 122,300 | 100.0% | 100.0% | 100.0% | 100.0%
| TOTAL WEIGHTED AVERAGE | 7,052,068 | 88.7% | 88.1% | 89.0% | 88.8%
(1) % Leased as of month's end includes all leases that expire on the last day of the quarter. |  |  |
(2) Average quarterly percentage is the average of the end of the month leased percentage for each of the 3 months during the quarter.

-12-

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, 2012 |  |  |
|  |  |  | % of
| Tenant | Sq Ft | SIC Code | Portfolio
1 | TCF National Bank | 267,470 | 60 | 3.8%
2 | Quintiles Transnational Corp | 259,531 | 87 | 3.7%
3 | CITGO Petroleum Corporation | 248,399 | 29 | 3.5%
4 | Burger King Corporation | 212,619 | 58 | 3.0%
5 | Denbury Onshore LLC | 202,600 | 13 | 2.9%
6 | RGA Reinsurance Company | 185,501 | 63 | 2.6%
7 | SunTrust Bank | 182,888 | 60 | 2.6%
8 | Citicorp Credit Services, Inc | 176,848 | 61 | 2.5%
9 | C.H. Robinson Worldwide, Inc | 153,028 | 47 | 2.2%
10 | Houghton Mifflin Harcourt Publishing Company | 150,050 | 27 | 2.1%
11 | Murphy Exploration & Production Company | 144,677 | 13 | 2.1%
12 | Giesecke & Devrient America, Inc. | 135,888 | 73 | 1.9%
13 | Monsanto Company | 127,778 | 28 | 1.8%
14 | AT&T Services, Inc. | 122,300 | 48 | 1.7%
15 | Vail Holdings, Inc. | 122,232 | 79 | 1.7%
16 | Northrop Grumman Systems Corporation | 111,469 | 73 | 1.6%
17 | Argo Data Resource Corporation | 109,990 | 73 | 1.6%
18 | Alliance Data Systems | 96,749 | 73 | 1.4%
19 | Federal National Mortgage Association | 92,358 | 61 | 1.3%
20 | Amdocs, Inc | 91,928 | 73 | 1.3%
| Total | 3,194,303 |  | 45.3%

-13-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

Definition of Funds From Operations (“FFO”),

The Company evaluates the performance based on several measures, including Funds From Operations, or FFO, because management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income (determined in accordance with GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, 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.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP), nor 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 and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.