SOURCE: Franklin Street Properties Corp.

April 29, 2008 16:00 ET

Franklin Street Properties Corp. Announces First Quarter 2008 Results

WAKEFIELD, MA--(Marketwire - April 29, 2008) - Franklin Street Properties Corp. (the "Company" or "FSP") (AMEX: FSP), an investment firm specializing in real estate, announced today Net Income of $7.4 million and Earnings Per Share (EPS) of $0.10 for the three months ended March 31, 2008. The Company also announced Funds From Operations (FFO) of $15.6 million or $0.22 per share 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,
                                            -------------------------------
                                                                 Increase
                                              2008      2007    (Decrease)
                                            --------- --------- ----------

Net Income                                  $   7,384 $   9,732 $   (2,348)
                                            ========= ========= ==========

FFO                                         $  15,637 $  19,586 $   (3,949)
GOS                                                 -         -          -
                                            --------- --------- ----------
FFO+GOS                                     $  15,637 $  19,586 $   (3,949)
                                            ========= ========= ==========
Per Share Data:
EPS                                         $    0.10 $    0.14 $    (0.04)
FFO                                         $    0.22 $    0.28 $    (0.06)
GOS                                         $       - $       - $        -
FFO+GOS                                     $    0.22 $    0.28 $    (0.06)

Weighted ave shares (diluted)                  70,481    70,766       (285)
                                            --------- --------- ----------

Comparing results for the first quarter of 2008 to 2007, Net Income and EPS decreased $2.3 million or $0.04 per share and FFO decreased $3.9 million or $0.06 per share. There was no GOS in the first quarter of 2008 or 2007, and FFO+GOS decreased $3.9 million or $0.06 per share.

The following significant factors affected Net Income, EPS and FFO for the three months ended March 31, 2008 compared to results for the same period in 2007. Net income for the first quarter of 2008 decreased $2.3 million compared to the first quarter of 2007. The decrease was principally a result of: (1) a $3.6 million decrease from investment banking related income as a result of a lower level of securities sold, (2) a decrease in interest income of $0.4 million from lower average cash balances and rates of interest earned on invested cash, and (3) an increase to depreciation and amortization of approximately $0.2 million from property acquisitions. These decreases were partially offset by (4) a $1.9 million increase in rental income net of operating expenses primarily from property acquisitions and the benefit of increases in leasing made over the last twelve months. FFO decreased $3.9 million principally as a result of these factors excluding non-cash items and including distributions received from equity investments for the three months ended March 31, 2008 compared to the same period in 2007.

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

"For the first quarter of 2008, FSP's profits as represented by FFO+GOS totaled approximately $15.6 million or $0.22 per share. Dividend distributions paid during the first quarter of 2008 totaled approximately $21.8 million or $0.31 per share.

Significant portions of our real estate investment business are transactional. Beginning in the third quarter of 2007, those transactional businesses were materially impacted by the external financial, mortgage/debt and investment market problems that arose from the 'credit crunch.' FSP has certain properties in its portfolio that we may have contemplated selling but have not put up for sale because of market conditions. Consequently, the first quarter of 2008 produced no GOS profit contribution. Changes in mortgage loan availability and changes in the cost of those loans continue to restrict many potential sales of commercial office buildings around the country. Rather than sell in this negative environment, FSP has decided to postpone the sale of some properties until a more attractive environment establishes itself, particularly within the mortgage/debt markets. A time frame for improvement in these markets is hard to predict, especially with the uncertainty of how significant an impact the current financial market turmoil will have on broader U.S. economic activity. We are constantly evaluating property disposition opportunities, as well as potential new property acquisition opportunities that may present themselves at attractive prices.

Additionally, as a result of the turmoil in the mortgage/debt markets, the investor market for our real estate private placement business has suffered and negatively affected our Investment Banking equity-raising efforts. In fact, our real estate investment banking business had one of its slowest quarters in FSP history, with only $2.7 million of equity capital raised, which did not cover expenses and actually reduced first quarter profits by approximately $0.01 per share. Uncertainty surrounding the potential impact on commercial real estate emanating from the mortgage/debt crisis has caused a 'wait-and-see' attitude to prevail among many of our established investor clients. However, business in this area has recently increased over the first quarter. It would appear that certain potential investors have begun to gain some confidence from the actions taken by the Federal Reserve and the Treasury in March relative to the ongoing functioning and predictability of the U.S. financial markets. This, in turn, may contribute to improved real estate equity-investment activity at our Investment Bank.

While profits continued to suffer in the first quarter of 2008 from our transactional businesses being negatively impacted by the broader capital market credit crunch, our unleveraged real estate portfolio of 26 properties maintained its overall 93% occupancy and provided steady income. It is meaningful to know that our second largest property investment ever, which was an approximately $83 million equity investment made at the end of 2007 in a Chicago CBD office building located at 303 East Wacker Drive, was made via a preferred stock purchase in one of our sponsored single-asset REITs. The entity which owns the Chicago property has declared a dividend representing operations for the first quarter, but the dividend is not paid to shareholders until the second quarter. Consequently, there is a time delay in our being able to realize the cash return from that investment, and that investment contributed zero towards FSP's profits for the first quarter. However, recognized contribution from this investment will be reflected in FSP's profits each quarter going forward. Taken as a whole, FSP's investment/business model appears well positioned to continue to weather this broader debt market dislocation. We have the financial capability to maintain our real estate assets and operational businesses to the highest standards, with the objective of ultimately realizing their full longer-term potential values.

As the capital markets and U.S. economy work through the current real estate mortgage/debt crunch, we will continue to remain conservative, disciplined and patient, while watching for value investment opportunities. Our balance sheet provides significant borrowing power for property acquisitions. We view the current capital market environment as a potential period of opportunity to acquire quality core office properties at excellent values. In many cases, investment competition for such properties has thinned out significantly because of the credit crunch. As previously announced, in a change from past practice, FSP will consider using its balance sheet strength to help finance property-secured borrowings to fund new acquisitions and, thus, begin to create a moderately-leveraged larger real estate portfolio.

While no additional properties were acquired for FSP's portfolio in the first quarter of 2008, on March 20, 2008, the Company announced that it had entered into an agreement and plan of merger to acquire FSP Park Ten Development Corp. by merger for cash consideration of approximately $35.4 million. FSP Park Ten Development Corp. is one of our sponsored single-asset REITs and is the owner of a 155,000 square foot office building in Houston, Texas, which was spec-developed by FSP. The property, which was completed in late 2006, is now approximately 98% leased and is adjacent to a look-alike sister building currently owned by FSP. Consummation of the acquisition requires the approval of FSP Park Ten Development Corp.'s stockholders. On April 28, 2008, FSP Park Ten Development Corp. informed us that the requisite number of holders of its preferred stock had voted to approve the acquisition. The acquisition is expected to close on or about May 15, 2008."

Dividend Announcement

On April 18, 2008, the Board of Directors of the Company declared a cash distribution of $0.31 per share of common stock payable on May 20, 2008 to stockholders of record on April 30, 2008.

Real Estate Update

Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 26 properties and for three non-consolidated REITs that we have interests in as of March 31, 2008.

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 and is generally calculated in a similar manner to our calculation. We also believe that FFO+GOS is an important measure as it considers investment performance.

                                                        Three Months Ended
                                                             March 31,
                                                       --------------------
(In thousands, except per share amounts)                 2008       2007
                                                       ---------  ---------

Net income                                             $   7,386  $   9,732
     (Gain) Loss on sale of properties                         -          -
     GAAP (income) loss from non-consolidated REITs         (793)       583
     Distributions from non-consolidated REITs               546        281
     Depreciation of real estate & intangible
      amortization                                         8,498      8,990
                                                       ---------  ---------
Funds From Operations (FFO)                               15,637     19,586
     Plus gains on sales of properties                         -          -
                                                       ---------  ---------
FFO+GOS                                                $  15,637  $  19,586
                                                       =========  =========

Per Share Data
EPS                                                    $    0.10  $    0.14
FFO                                                    $    0.22  $    0.28
GOS                                                    $       -  $       -
FFO+GOS                                                $    0.22  $    0.28

Weighted average shares (basic and diluted)               70,481     70,766
                                                       =========  =========

Today's news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.franklinstreetproperties.com.

A conference call is scheduled for April 30, 2008 at 9:30 a.m. (ET) to discuss the first quarter 2008 results. The toll free number is 1-888-396-2356, passcode 48135673. Internationally, the call may be accessed by dialing 1-617-847-8709, passcode 48135673. 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. FSP owns an unleveraged portfolio of real estate. 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.

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 changes in 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, 2007), 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, 2007, 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 for 2007                             F
Largest 20 Tenants – FSP Owned Portfolio                   G
Definition of Funds From Operations (FFO) and  FFO+GOS     H



          Franklin Street Properties Corp. Financial Results
                      Supplementary Schedule A
                    Consolidated Income Statement
                            (Unaudited)


                                                            For the
                                                       Three Months Ended
                                                            March 31,
                                                      --------------------
(in thousands, except per share amounts)                2008       2007
                                                      =========  =========

Revenue:
  Rental                                              $  26,656  $  25,104
Related party revenue:
  Syndication fees                                          205      2,956
  Transaction fees                                          168      3,081
  Management fees and interest income from loans            561      1,817
Other                                                        20         38
                                                      ---------  ---------
     Total revenue                                       27,610     32,996
                                                      ---------  ---------

Expenses:
  Real estate operating expenses                          6,699      6,207
  Real estate taxes and insurance                         4,279      4,168
  Depreciation and amortization                           7,359      7,177
  Selling, general and administrative                     2,009      1,888
  Commissions                                               158      1,559
  Interest                                                1,192      2,676
                                                      ---------  ---------

     Total expenses                                      21,696     23,675
                                                      ---------  ---------

Income before interest income, equity in earnings
 (losses) of non-consolidated REITs and taxes on
 income                                                   5,914      9,321
Interest income                                             303        653
Equity in earnings (losses) of non-consolidated REITs       793       (616)
                                                      ---------  ---------

Income before taxes                                       7,010      9,358
Income tax (benefit) expense                               (376)       295
                                                      ---------  ---------

  Income from continuing operations                       7,386      9,063
  Income from discontinued operations                         -        669
                                                      ---------  ---------

Net income                                            $   7,386  $   9,732
                                                      =========  =========

Weighted average number of shares outstanding,
 basic and diluted                                       70,481     70,766
                                                      =========  =========

Earnings per share, basic and diluted, attributable
 to:
  Continuing operations                               $    0.10  $    0.13
  Discontinued operations                                     -       0.01
                                                      ---------  ---------
Net income per share, basic and diluted               $    0.10  $    0.14
                                                      =========  =========




            Franklin Street Properties Corp. Financial Results
                       Supplementary Schedule B
                  Condensed Consolidated Balance Sheet
                              (Unaudited)


(in thousands, except share and par value
 amounts)                                          March 31,   December 31,
                                                  ===========  ============
                                                      2008         2007
                                                  -----------  ------------
Assets:
Real estate assets, net                               787,398       790,319
Acquired real estate leases, less accumulated
 amortization of $25,801 and $23,401, respectively     30,826        33,695
Investment in non-consolidated REITs                   86,235        85,663
Assets held for syndication, net                       24,593        26,310
Cash and cash equivalents                              32,227        46,988
Restricted cash                                           336           336
Tenant rent receivables, less allowance for
 doubtful accounts of $509 and $430, respectively       1,694         1,472
Straight-line rent receivable, less allowance for
 doubtful accounts of $261 and $261, respectively       7,638         7,387
Prepaid expenses                                        1,654         1,395
Other assets                                            1,540           406
Office computers and furniture, net of
 accumulated depreciation of $1,002 and $968,
 respectively                                             340           309
Deferred leasing commissions, net of accumulated
 amortization of $2,290, and $1,975, respectively       9,581         9,186
                                                  -----------  ------------
    Total assets                                  $   984,062  $  1,003,466
                                                  ===========  ============

Liabilities and Stockholders’ Equity:
Liabilities:
  Bank note payable                               $    84,750  $     84,750
  Accounts payable and accrued expenses                16,633        20,255
  Accrued compensation                                    415         1,564
  Tenant security deposits                              1,923         1,874
  Acquired unfavorable real estate leases, less
   accumulated amortization of $1,424, and
   $1,226, respectively                                 4,186         4,405
                                                  -----------  ------------
    Total liabilities                                 107,907       112,848
                                                  -----------  ------------

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 70,480,705 and 70,480,705
  shares issued and outstanding, respectively               7             7
 Additional paid-in capital                           889,019       889,019
 Earnings (distributions) in excess of
  accumulated earnings/distributions                  (12,871)        1,592
                                                  -----------  ------------
     Total stockholders’ equity                       876,155       890,618
                                                  -----------  ------------
     Total liabilities and stockholders’ equity   $   984,062  $  1,003,466
                                                  ===========  ============



            Franklin Street Properties Corp. Financial Results
                       Supplementary Schedule C
                 Consolidated Statement of Cash Flows
                             (Unaudited)


                                                            For the
                                                       Three Months Ended
                                                            March 31,
                                                      --------------------
(in thousands)                                          2008       2007
                                                      =========  =========
Cash flows from operating activities:
   Net income                                         $   7,386  $   9,732
   Adjustments to reconcile net income to net cash
    provided by operating activities:
      Depreciation and amortization expense               7,371      7,666
      Amortization of above market lease                  1,139      1,334
      Equity in earnings (losses) from
       non-consolidated REITs                              (793)       583
      Distributions from non-consolidated REITs             546        281
      Increase in bad debt reserve                           79          -
   Changes in operating assets and liabilities:
      Restricted cash                                         -         79
      Tenant rent receivables, net                         (301)       503
      Straight-line rents, net                             (251)    (1,273)
      Prepaid expenses and other assets, net               (376)       755
      Accounts payable and accrued expenses              (4,379)    (1,856)
      Accrued compensation                               (1,148)    (1,388)
      Tenant security deposits                               49        (90)
   Payment of deferred leasing commissions                 (818)      (661)
                                                      ---------  ---------

        Net cash provided by operating activities         8,504     15,665
                                                      ---------  ---------

Cash flows from investing activities:
      Purchase of real estate assets, office
       computers and furniture, capitalized merger
       costs                                             (1,777)    (9,327)
      Investment in non-consolidated REITs                    -         (9)
      Other assets                                       (1,000)         -
      Redemption of (investment in) certificate of
       deposit                                                -        (37)
      Investment in assets held for syndication, net      1,391   (121,431)
      Proceeds received on sales of real estate
       assets                                                 -      5,830
                                                      ---------  ---------

      Net cash used for investing activities             (1,386)  (124,974)
                                                      ---------  ---------

Cash flows from financing activities:
      Distributions to stockholders                     (21,849)   (21,938)
      Repayments under bank note payable                      -    130,000
      Deferred financing costs                              (30)         -
                                                      ---------  ---------

      Net cash provided by financing activities         (21,879)   108,062
                                                      ---------  ---------

Net decrease in cash and cash equivalents               (14,761)    (1,247)

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

Cash and cash equivalents, end of period              $  32,227  $  68,726
                                                      =========  =========



         Franklin Street Properties Corp. Earnings Release
                    Supplementary Schedule D
            Real Estate Portfolio Summary Information
                    (Unaudited & Approximated)

      Commercial portfolio lease expirations (1)

                                        Total      % of
      Year                           Square Feet Portfolio
                                     ----------- ----------
      2008                               252,410        5.1%
      2009                               592,398       11.9%
      2010                               780,402       15.6%
      2011                               348,646        7.0%
      2012                               713,753       14.3%
      2013                               330,189        6.6%
      Thereafter                       1,979,330       39.5% (2)
                                      ---------- ----------
                                       4,997,128      100.0%
                                     =========== ==========

  (1) Percentages are determined based upon square footage of expiring
      commercial leases and if applicable, exclude assets held for sale.
  (2) Includes 368,000 square feet of current vacancies.



(In Thousands)                        As of March 31, 2008
                       ---------------------------------------------------
                         # of                  % of      Square    % of
State                  Properties Investment Portfolio    Feet   Portfolio
                       ---------- ---------- ---------  -------- ---------

Texas                           6 $  203,600      25.9%    1,332      26.7%
Colorado                        4    132,872      16.9%      791      15.8%
Georgia                         1     78,562      10.0%      387       7.7%
Maryland                        2     63,916       8.1%      424       8.5%
Virginia                        2     63,449       8.0%      433       8.7%
Missouri                        2     57,589       7.3%      349       7.0%
Florida                         1     50,163       6.4%      213       4.3%
California                      2     21,532       2.7%      182       3.6%
Indiana                         1     38,086       4.8%      205       4.1%
Illinois                        1     32,380       4.1%      177       3.6%
Michigan                        1     15,359       2.0%      215       4.3%
North Carolina                  2     14,605       1.9%      172       3.4%
Washington                      1     15,285       1.9%      117       2.3%
                       ---------- ---------- ---------  -------- ---------
Total                          26 $  787,398     100.0%    4,997     100.0%
                       ========== ========== =========  ======== =========




Property by type:
(dollars & square feet                 As of March 31, 2008
 in 000's)             ----------------------------------------------------
                         # of                  % of      Square    % of
Type                   Properties Investment Portfolio    Feet   Portfolio
                       ---------- ---------- ---------  -------- ---------
Office                         25    782,167      99.3%    4,898      98.0%
Industrial                      1      5,231       0.7%       99       2.0%
                       ---------- ---------- ---------  -------- ---------
Total                          26 $  787,398     100.0%    4,997     100.0%
                       ========== ========== =========  ======== =========


          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-08  31-Mar-07
                               ---------- ----------

     Tenant improvements       $    2,337 $    2,304
     Deferred leasing costs           817        661
     Building improvements            197        551
                               ---------- ----------
                               $    3,351 $    3,516
                               ========== ==========


Square foot & leased percentages                   March 31,   December 31,
                                                  -----------  -----------
                                                      2008         2007
                                                  -----------  -----------

Owned portfolio of commercial real estate
         Number of properties                              26           26
         Square feet                                4,997,128    4,998,280
         Leased percentage                                 93%          93%

Investments in non-consolidated commercial real
 estate
         Number of properties                               3            3
         Square feet                                1,615,395    1,614,380
         Leased percentage                                 80%          92%

Single Asset REITs (SARs) managed
         Number of properties                               9            9
         Square feet                                2,682,770    2,682,770
         Leased percentage                                 93%          92%

Total owned, investments & managed properties
         Number of properties                              38           38
         Square feet                                9,295,293    9,295,430
         Leased percentage                                 91%          93%


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

                                                     % Leased   % Interest
Single Asset REIT Name        City   State   S.F.    31-Mar-08     Held
                            -------- ----- --------- ---------  ----------
FSP 303 East Wacker Drive
 Corp.                       Chicago    IL   840,142      90.1%       43.7%
FSP Phoenix Tower Corp.      Houston    TX   618,507      62.9%        4.6%
FSP Park Ten Development
 Corp.                       Houston    TX   156,746      97.8%        3.1%
                                           --------- ---------
                                           1,615,395      80.4%
                                           --------- ---------





              Franklin Street Properties Corp. Earnings Release
         Supplementary Schedule F: Quarterly information for 2007
                                 (Unaudited)

(in thousands)
                                       Q1        Q2        Q3        Q4
Revenue:                              2007      2007      2007      2007
                                    --------  --------  --------  --------
Rental                              $ 25,104  $ 22,896  $ 27,110  $ 25,851
Related party revenue:
  Syndication fees                     2,956     3,448       686     1,896
  Transaction fees                     3,081     3,761       604     2,452
  Management fees and
  interest income from loans           1,817     1,862     1,497     1,854
Other                                     38         9        37        34
                                    --------  --------  --------  --------
    Total revenue                     32,996    31,976    29,934    32,087
                                    --------  --------  --------  --------

Expenses:
  Real estate operating expenses       6,207     5,668     7,151     7,145
  Real estate taxes and insurance      4,168     3,924     4,398     4,045
  Depreciation and amortization        7,177     6,777     7,756     7,624
  Selling, general and
   administrative                      1,888     2,000     1,787     1,791
  Commissions                          1,559     1,754       406     1,017
  Interest                             2,676     1,622     1,823     1,563
                                    --------  --------  --------  --------
    Total expenses                    23,675    21,745    23,321    23,185
                                    --------  --------  --------  --------

  Income before interest income,
   equity in earnings (losses) of
   non-consolidated REITs              9,321    10,231     6,613     8,902
  Interest income                        653       560       649       514
  Equity in earnings (losses) of
   non-consolidated REITs               (616)     (142)      147       147
                                    --------  --------  --------  --------

  Income before taxes                  9,358    10,649     7,409     9,563
  Income tax (benefit) expense           295       425      (206)      359
                                    --------  --------  --------  --------

  Income from continuing operations    9,063    10,224     7,615     9,204
  Income from discontinued
   operations                            669       662       (71)      (70)
                                    --------  --------  --------  --------

  Income before gain on sale of
   properties                          9,732    10,886     7,544     9,134
  Gain on sale of properties               -    21,590     1,942       257
                                    --------  --------  --------  --------
  Net income                        $  9,732  $ 32,476  $  9,486  $  9,391
                                    ========  ========  ========  ========


FFO and  FFO+GOS calculations:

Net income                          $  9,732  $ 32,476  $  9,486  $  9,391
                                    --------  --------  --------  --------
  (Gain) Loss on sale of properties        -   (21,590)   (1,942)     (257)
  GAAP income (losses) from
   non-consolidated REITs                583       142      (106)     (147)
  Distributions from
   non-consolidated REITs                281       442       476       607
  Depreciation & amortization          8,990     8,499     9,008     8,978
                                    --------  --------  --------  --------
Funds From Operations (FFO)           19,586    19,969    16,922    18,572
  Plus gains on sales of properties        -    21,590     1,942       257
                                    --------  --------  --------  --------
FFO+GOS                             $ 19,586  $ 41,559  $ 18,864  $ 18,829
                                    ========  ========  ========  ========



            Franklin Street Properties Corp. Earnings Release
                         Supplementary Schedule G
                 Largest 20 Tenants - FSP Owned Portfolio
                          (Unaudited & Estimated)


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

                                                                   % of
     Tenant                                    Sq Ft   SIC Code  Portfolio
                                             --------- --------- ---------
1 Capital One Services, Inc.* (1)              297,789        61       6.0%
2 Citgo Petroleum Corporation                  248,399        29       5.0%
3 Tektronix Texas, LLC                         241,372        38       4.8%
4 Burger King Corporation                      212,619        58       4.3%
5 New Era of Networks, Inc. (Sybase)           199,077        42       4.0%
6 Citgroup Credit Services, Inc.               176,848        61       3.5%
7 RGA Reinsurance Company                      171,120        63       3.4%
8 International Business Machines Corp.        138,033        73       2.8%
9 CACI Technologies, Inc.                      132,896        73       2.7%
10 Maines Paper and Food Service, Inc.          98,745        42       2.0%
11 The Staubach Company                         92,827        87       1.9%
12 AMDOCS, Inc.                                 91,928        73       1.8%
13 Ober Kaler Grimes                            90,811        81       1.8%
14 County of Santa Clara                        90,467        91       1.8%
15 Vail Corp, dba Vail Resorts                  83,620        79       1.7%
16 Corporate Holdings, LLC                      81,818        67       1.6%
17 Technip-Coflexip USA Holdings, Inc           79,496        73       1.6%
18 Noble Royalties, Inc.                        78,344        67       1.6%
19 Cooley Godward LLP                           72,850        81       1.5%
20 CSA Credit Solutions                         61,572        73       1.2%
                                             ---------           ---------
     Total                                   2,740,631                54.8%
                                             ---------           ---------

(1) Capital One subleases all of its space to LandAmerica Financial Group.



             Franklin Street Properties Corp. Earnings Release
                         Supplementary Schedule H
               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), excluding gains (or losses) from sales of property, 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.

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