SOURCE: Franklin Street Properties Corp.

February 19, 2008 16:00 ET

Franklin Street Properties Corp. Announces Fourth Quarter and Full Year 2007 Results

WAKEFIELD, MA--(Marketwire - February 19, 2008) - Franklin Street Properties Corp. (the "Company" or "FSP") (AMEX: FSP), an investment firm specializing in real estate, announced today Net Income of $61.1 million and Earnings Per Share (EPS) of $0.86 for the year ended December 31, 2007. The Company also announced Funds From Operations (FFO) of $75.0 million or $1.06 per share, Gains On Sales (GOS) of properties of $23.8 million or $0.34 per share, FFO plus Gains on Sales (FFO+GOS) of $98.8 million, or $1.40 per share, and provided an update on other activities.

The Company evaluates its performance based on Net Income, EPS, FFO, 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 in this press release.


                Three Months Ended December 31,  Year Ended December 31,
(in 000's except ---------------------------  ----------------------------
 per share data)                   Increase                      Increase
                   2007     2006  (Decrease)    2007     2006   (Decrease)
                 -------- -------- ---------  -------- --------- ---------

Net Income       $  9,391 $ 39,482 $ (30,091) $ 61,085 $ 110,929 $ (49,844)
                 ======== ======== =========  ======== ========= =========

FFO              $ 18,572 $ 21,117 $  (2,545) $ 75,049 $  81,278 $  (6,229)
GOS                   257   26,969   (26,712)   23,789    61,438   (37,649)
                 -------- -------- ---------  -------- --------- ---------
FFO+GOS          $ 18,829 $ 48,086 $ (29,257) $ 98,838 $ 142,716 $ (43,878)
                 ======== ======== =========  ======== ========= =========
Per Share Data:
EPS              $   0.13 $   0.56 $   (0.43) $   0.86 $    1.65 $   (0.79)
FFO              $   0.26 $   0.30 $   (0.04) $   1.06 $    1.21 $   (0.15)
GOS              $      - $   0.38 $   (0.38) $   0.34 $    0.91 $   (0.57)
FFO+GOS          $   0.27 $   0.68 $   (0.41) $   1.40 $    2.13 $   (0.73)

Weighted ave
 shares (diluted)  70,481   70,766      (285)   70,651    67,159     3,492
                 -------- -------- ---------  -------- --------- ---------

Comparing results for the fourth quarter of 2007 to 2006, Net Income and EPS decreased $30.1 million or $0.43 per share, FFO decreased $2.5 million or $0.04 per share, GOS decreased $26.7 million or $0.38 per share and FFO+GOS decreased $29.3 million or $0.41 per share. Comparing results for the year ended December 31, 2007 to 2006, Net Income and EPS decreased $49.8 million or $0.79 per share, FFO decreased $6.2 million or $0.15 per share, GOS decreased $37.6 million or $0.57 per share and FFO+GOS decreased $43.9 million or $0.73 per share.

The following significant factors affected Net Income, EPS, FFO, GOS and FFO+GOS for the three months and year ended December 31, 2007 compared to results for the same periods in 2006:

For the fourth quarter of 2007, Net Income decreased $30.1 million compared to the fourth quarter of 2006. The decrease was principally a result of: (1) a decrease of $26.7 million from lower gains on sales of properties, (2) a $3.3 million decrease from investment banking related income as a result of a lower level of securities sold, (3) an increase to depreciation and amortization of approximately $1.6 million from property acquisitions, (4) a $0.7 million decrease in termination fee income received from early termination of leases and (5) a decrease in interest income of $0.4 million from lower average cash balances. These decreases were partially offset by (6) a $1.7 million increase in rental income net of operating expenses primarily from property acquisitions and (7) reduced general and administrative expenses of $0.9 million primarily from reductions in discretionary compensation. FFO decreased $2.5 million principally as a result of these factors excluding non-cash items and including distributions received from equity investments, and GOS decreased $26.7 million from lower gains on sales of assets for the three months ended December 31, 2007 compared to the same period in 2006.

For year ended December 31, 2007 Net Income decreased $49.8 million compared to the same period in 2006. The decrease was principally a result of: (1) a decrease of $37.6 million from lower gains on sales of properties, (2) an increase to depreciation and amortization of approximately $8.4 million from property acquisitions, (3) a $7.2 million decrease in termination fee income received from early termination of leases, (4) a $2.1 million decrease from investment banking related income as a result of a lower level of securities sold and (5) a decrease in interest income of $0.6 million from lower average cash balances. These decreases were partially offset by (6) a $5.1 million increase in rental income net of operating expenses primarily from property acquisitions and (7) reduced general and administrative expenses of $1.1 million primarily from reductions in discretionary compensation. FFO decreased $6.2 million principally as a result of these factors excluding non-cash items and including distributions received from equity investments, and GOS decreased $37.6 million from lower gains on sales of assets for the year ended December 31, 2007 compared to the same period in 2006.

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

"For the fourth quarter of 2007, FSP's profits as represented by FFO+GOS totaled approximately $18.8 million or $0.27 per share. For the full year 2007, FSP's profits as represented by FFO+GOS totaled approximately $98.8 million or $1.40 per share. Dividend distributions paid for the full year 2007 totaled approximately $87.7 million or $1.24 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 turmoil that arose from what is being called the 'credit crunch.' Specifically, properties FSP may have contemplated selling have not been put up for sale because of market conditions. 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 big 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 as a result of the restrictive capital/mortgage debt environment.

"In addition to the turmoil in the mortgage/debt markets, which limited our property sales during the second half of 2007, the investor market for our real estate private placement business also suffered and negatively affected our Investment Banking equity raising efforts. Continued investor uncertainty surrounding the potential impact on commercial real estate emanating from the mortgage/debt crisis is causing a 'wait-and-see' attitude to prevail among many of our established investor clients. Fourth quarter 2007 business in this area picked up over third quarter results, but still totaled only about 60% of our historical activity.

"While profits continued to suffer in the fourth quarter of 2007 from our transactional business being negatively impacted by the broader capital market credit crunch, our unleveraged real estate portfolio continued to increase its overall occupancy and provided steady income. Taken as a whole, FSP's investment/business model appears well positioned 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 that we might be able to take advantage of. Our balance sheet provides FSP with 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. In a change from past practice, FSP will now 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.

"Rental Income for the fourth quarter and full year 2007 was about as expected for FSP's 26 continuing properties. During 2007 leased square footage in our portfolio rose about 4% to 93% from 89% at the beginning of the year primarily as a result of new leasing during the year. Most of our office markets continue to show positive trends of absorption, occupancy and rent growth, but at generally reduced levels of growth compared to the first half of 2007. Our geographically diverse property portfolio is generally tracking the national published statistics for their respective locations, and we finished 2007 having increased overall occupancy in the portfolio during a meaningful lease roll and property-repositioning year. For 2008, a relatively smaller percentage of square footage is due to expire versus 2007. In 2008, approximately 305,911 square feet of our total portfolio or about 6% of our total rentable square footage is scheduled to expire.

"Property Sales totaling approximately 68,533 square feet from one property located in Austin, Texas took place in the fourth quarter for a small gain. For the full year 2007, FSP sold five properties totaling approximately 620,044 square feet for gains totaling approximately $23.8 million. Total proceeds from those property sales of about $96.1 million were primarily re-deployed to purchase a 325,978 square foot office tower in downtown Baltimore, Maryland, an approximately 43.7% interest in an 839,127 square foot office tower in downtown Chicago, Illinois sponsored by our Investment Banking group and approximately $4.8 million of our common stock as part of our stock repurchase plan. As we look ahead to 2008, property sales could be fewer in number than over the last three years as constriction of available mortgage debt impacts potential buyers' appetites for commercial real estate.

"Investment Banking activity for the fourth quarter of 2007 totaled approximately $28.3 million, an increase of $18.3 million over the $10 million completed in the third quarter. However, Investment Banking activity in the second half of 2007 slowed markedly compared to the first half of 2007 as a result of the broader capital markets uncertainty that has been precipitated by the credit crunch. For the full year 2007, Investment Banking activity totaled $147.5 million, representing a 13% decrease from 2006's level. As we begin 2008, Investment Banking is actively engaged in one private placement preferred stock offering totaling $65 million, representing the equity interest in a single office property located in Kansas City, Missouri. The current volatility and uncertainty in the broader capital/investment markets make visibility of our Investment Banking business very uncertain for 2008."

Dividend Announcement

On January 18, 2008, the Board of Directors of the Company declared a cash distribution of $0.31 per share of common stock payable on February 20, 2008 to stockholders of record on January 31, 2008.

Real Estate Update

On December 20, 2007, the Company sold a property located in Austin, Texas at a gain of approximately $257,000. On December 27, 2007, the Company invested $82.8 million representing a 43.7% interest to complete the syndication of FSP 303 East Wacker Drive Corp., which owns an 839,127 square foot CBD office tower in Chicago, Illinois. 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 December 31, 2007.

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      Year Ended
                                      December 31,         December 31,
(In thousands, except              ------------------  -------------------
 per share amounts)                  2007      2006      2007      2006
                                   --------  --------  --------  ---------

Net income                         $  9,391  $ 39,482  $ 61,085  $ 110,929
     (Gain) Loss on sale of
      properties                       (257)  (26,969)  (23,789)   (61,438)
     GAAP income from
      non-consolidated REITs           (147)     (131)      472     (1,043)
     Distributions from
      non-consolidated REITs            607        59     1,806        783
     Depreciation of real estate &
      intangible amortization         8,978     8,676    35,475     32,047
                                   --------  --------  --------  ---------
Funds From Operations (FFO)          18,572    21,117    75,049     81,278
     Plus gains on sales of
      properties                        257    26,969    23,789     61,438
                                   --------  --------  --------  ---------
FFO+GOS                            $ 18,829  $ 48,086  $ 98,838  $ 142,716
                                   ========  ========  ========  =========

Per Share Data
EPS                                $   0.13  $   0.56  $   0.86  $    1.65
FFO                                $   0.26  $   0.30  $   1.06  $    1.21
GOS                                $      -  $   0.38  $   0.34  $    0.91
FFO+GOS                            $   0.27  $   0.68  $   1.40  $    2.13

Weighted average shares (basic and
 diluted)                            70,481    70,766    70,651     67,159
                                   ========  ========  ========  =========

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 February 20, 2008 at 9:30 a.m. (ET) to discuss 2007 results. The toll free number is 1-888-713-4209, passcode 85429857. Internationally, the call may be accessed by dialing 1-617-213-4863, passcode 85429857. The call will also be available via a live webcast, which can be accessed at least 10 minutes before the start time through the Webcasts & Presentations section of our Investor Relations section at www.franklinstreetproperties.com. A replay of the conference call will be available on the Company's website one hour after the call.

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, 2006), 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, 2006, 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               For the
                                 Three Months Ended        Year Ended
                                    December 31,          December 31,
(in thousands, except           --------------------  --------------------
 per share amounts)                2007       2006       2007       2006
                                ---------  ---------- ---------  ----------
Revenue:
     Rental                     $  25,851  $   22,367 $ 100,961  $   83,147
Related party revenue:
     Syndication fees               1,896       4,405     8,986      10,693
     Transaction fees               2,452       4,714     9,898      11,262
     Management fees and
      interest income from
      loans                         1,854       1,005     7,030       2,083
Other                                  34          36       118          60
                                ---------  ---------- ---------  ----------
             Total revenue         32,087      32,527   126,993     107,245
                                ---------  ---------- ---------  ----------

Expenses:
     Real estate operating
      expenses                      7,145       5,983    26,171      19,045
     Real estate taxes and
      insurance                     4,109       3,493    16,761      12,282
     Depreciation and
      amortization                  7,624       6,006    29,334      20,893
     Selling, general and
      administrative                1,791       2,733     7,466       8,518
     Commissions                    1,017       2,233     4,737       5,522
     Interest                       1,563       1,189     7,684       2,449
                                ---------  ---------- ---------  ----------

       Total expenses              23,249      21,637    92,153      68,709
                                ---------  ---------- ---------  ----------

Income before interest income,
 equity in earnings (deficit)
 of non-consolidated REITs
 and taxes on income                8,838      10,890    34,840      38,536
Interest income                       514         918     2,377       2,998
Equity in earnings (deficit) of
 non-consolidated REITs               147         128      (464)        845
                                ---------  ---------- ---------  ----------

Income before taxes on income       9,499      11,936    36,753      42,379
Income tax expense                    295         566       647         839
                                ---------  ---------- ---------  ----------

  Income from continuing
   operations                       9,204      11,370    36,106      41,540
  Income (loss) from
   discontinued operations            (70)      1,143     1,190       7,951
  Gain on sale of properties          257      26,969    23,789      61,438
                                ---------  ---------- ---------  ----------

Net income                      $   9,391  $   39,482 $  61,085  $  110,929
                                =========  ========== =========  ==========

Weighted average number of
 shares outstanding,
 basic and diluted                 70,481      70,766    70,651      67,159
                                =========  ========== =========  ==========

Earnings per share, basic and
 diluted, attributable to:
  Continuing operations         $    0.13  $     0.16 $    0.51  $     0.62
  Discontinued operations               -        0.03      0.01        0.12
  Gains on sales of properties          -        0.38      0.34        0.91
                                ---------  ---------- ---------  ----------
Net income per share, basic and
 diluted                        $    0.13  $     0.57 $    0.86  $     1.65
                                =========  ========== =========  ==========



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


(in thousands, except share and par value amounts)       December 31,
                                                    -----------------------
                                                       2007        2006
                                                    ----------- -----------
Assets:
Real estate assets, net                             $   790,319 $   739,886
Acquired real estate leases, less accumulated
 amortization of $23,401 and $20,345, respectively       33,695      40,577
Investment in non-consolidated REITs                     85,663       5,064
Assets held for syndication, net                         26,310           -
Assets held for sale                                          -      72,621
Cash and cash equivalents                                46,988      69,973
Certificate of deposit                                        -       5,143
Restricted cash                                             336         761
Tenant rent receivables, less allowance for
 doubtful accounts of $430 and $433, respectively         1,472       2,440
Straight-line rent receivable, less allowance for
 doubtful accounts of $261 and $163, respectively         7,387       4,295
Prepaid expenses                                          1,395         972
Deposits on real estate assets                                -       5,010
Other assets                                                406       1,118
Office computers and furniture, net of accumulated
 depreciation of $968 and $851, respectively                309         375
Deferred leasing commissions, net of accumulated
 amortization of $1,975, and $1,085, respectively         9,186       7,082
                                                    ----------- -----------
    Total assets                                    $ 1,003,466 $   955,317
                                                    =========== ===========

Liabilities and Stockholders' Equity:
Liabilities:
  Bank note payable                                 $    84,750 $         -
  Accounts payable and accrued expenses                  20,255      25,275
  Accrued compensation                                    1,564       2,643
  Tenant security deposits                                1,874       1,744
  Acquired unfavorable real estate leases, less
   accumulated amortization of $1,226, and
   $534, respectively                                     4,405       3,693
                                                    ----------- -----------
             Total liabilities                          112,848      33,355
                                                    ----------- -----------

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 70,766,305 shares
   issued and outstanding, respectively                       7           7
  Additional paid-in capital                            889,019     893,786
  Earnings (distributions) in excess of accumulated
   earnings/distributions                                 1,592      28,169
                                                    ----------- -----------
     Total stockholders' equity                         890,618     921,962
                                                    ----------- -----------
     Total liabilities and stockholders' equity     $ 1,003,466 $   955,317
                                                    =========== ===========



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


                                                      For the Year Ended
                                                         December 31,
                                                    ----------------------
(in thousands)                                         2007        2006
                                                    ==========  ==========
Cash flows from operating activities:
  Net income                                        $   61,085  $  110,929
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation and amortization expense              30,563      24,951
     Amortization of above market lease                  4,948       7,138
     Gain on sale of real estate assets                (23,789)    (61,438)
     Equity in earnings (deficit) of
      non-consolidated REITs                               472      (1,043)
     Distributions from non-consolidated REITs           1,806         783
     Increase in bad debt reserve                           (3)         83
  Changes in operating assets and liabilities:
     Restricted cash                                       425        (300)
     Tenant rent receivables, net                          971      (1,076)
     Straight-line rents, net                           (3,359)     (1,334)
     Prepaid expenses and other assets, net                374        (327)
     Accounts payable, accrued expenses & other
      items                                              1,884       1,174
     Accrued compensation                               (1,079)        752
     Tenant security deposits                              130         451
  Payment of deferred leasing commissions               (4,314)     (5,880)
                                                    ----------  ----------
         Net cash provided by operating activities      70,114      74,863
                                                    ----------  ----------
Cash flows from investing activities:
  Cash from issuance of common stock in the merger
   transaction                                               -      13,849
  Purchase of real estate assets and office
   computers and furniture, capitalized merger
   costs                                               (77,894)   (159,351)
  Acquired real estate leases                           (3,726)     (6,801)
  Investment in non-consolidated REITs                 (82,831)     (4,137)
  Redemption of (investment in) certificate of
   deposit                                               5,143      (5,143)
  Merger costs paid                                          -        (838)
  Changes in deposits on real estate assets                  -      (4,300)
  Investment in assets held for syndication            (22,093)          -
  Proceeds received on sales of real estate assets      96,102     173,183
                                                    ----------  ----------
         Net cash provided by (used in) investing
          activities                                   (85,299)      6,462
                                                    ----------  ----------
Cash flows from financing activities:
    Distributions to stockholders                      (87,662)    (80,948)
    Purchase of treasury shares                         (4,767)          -
    Offering Costs                                           -        (119)
    Borrowings under bank note payable                  84,750           -
    Deferred financing costs                              (121)          -
                                                    ----------  ----------
         Net cash used in financing activities          (7,800)    (81,067)
                                                    ----------  ----------
Net increase (decrease) in cash and cash
 equivalents                                           (22,985)        258
Cash and cash equivalents, beginning of year            69,973      69,715
                                                    ----------  ----------
Cash and cash equivalents, end of year              $   46,988  $   69,973
                                                    ==========  ==========


         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                                         305,911         6.1%
2009                                         632,537        12.7%
2010                                         777,450        15.6%
2011                                         346,500         6.9%
2012                                         621,540        12.4%
2013                                         377,833         7.6%
Thereafter                                 1,936,509        38.7%(2)
                                         -----------   ---------
                                           4,998,280       100.0%
                                         ===========   =========


(1) Percentages are determined based upon square footage of expiring
    commercial leases and if applicable, exclude assets held for sale.
(2) Includes 329,000 square feet of current vacancies.



(In Thousands)                       As of December 31, 2007
                       ----------------------------------------------------
                         # of                  % of      Square    % of
State                  Properties Investment Portfolio    Feet   Portfolio
                       ---------- ---------- ---------   ------- ---------

Texas                           6 $  204,734      26.0%    1,332      26.7%
Colorado                        4    131,779      16.7%      791      15.8%
Georgia                         1     79,094      10.0%      387       7.7%
Maryland                        2     64,300       8.1%      425       8.6%
Virginia                        2     63,857       8.1%      433       8.7%
Missouri                        2     58,007       7.3%      349       7.0%
Florida                         1     50,459       6.4%      213       4.3%
California                      2     21,461       2.7%      182       3.6%
Indiana                         1     38,326       4.8%      205       4.1%
Illinois                        1     32,641       4.1%      177       3.5%
Michigan                        1     15,577       2.0%      215       4.3%
North Carolina                  2     14,695       1.9%      172       3.4%
Washington                      1     15,389       1.9%      117       2.3%
                       ---------- ---------- ---------   ------- ---------
Total                          26 $  790,319     100.0%    4,998     100.0%
                       ========== ========== =========   ======= =========



Property by type:
(dollars & square feet               As of December 31, 2007
 in 000's)             ----------------------------------------------------
                         # of                  % of      Square    % of
Type                   Properties Investment Portfolio    Feet   Portfolio
                       ---------- ---------- ---------   ------- ---------
Office                         25 $  785,060      99.3%    4,899      98.0%
Industrial                      1      5,259       0.7%       99       2.0%
                       ---------- ---------- ---------   ------- ---------
Total                          26 $  790,319     100.0%    4,998     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      Twelve Months Ended
                            ----------------------- -----------------------
(in thousands)               31-Dec-07   31-Dec-06   31-Dec-07   31-Dec-06
                            ----------- ----------- ----------- -----------

Tenant improvements         $       998 $     9,275 $     6,596 $    13,471
Deferred leasing costs            1,409       1,459       4,314       5,881
Building improvements               908       1,013       4,504       1,308
Increase to investments in
 buildings                            -           -           -       1,220
                            ----------- ----------- ----------- -----------
                            $     3,315 $    11,747 $    15,414 $    21,880
                            =========== =========== =========== ===========



Square foot & leased percentages                     As of December 31,
                                                  ------------------------
                                                      2007         2006
                                                  -----------  -----------

Owned portfolio of commercial real estate
  Number of properties                                     26           29
  Square feet                                       4,998,280    5,148,490
  Leased percentage                                        93%          89%

Investments in non-consolidated commercial real
 estate
  Number of properties                                      3            2
  Square feet                                       1,614,380      775,253
  Leased percentage                                        92%          76%

Single Asset REITs (SARs) managed
  Number of properties                                      9            8
  Square feet                                       2,682,770    2,150,734
  Leased percentage                                        92%          96%

Total owned, investments & managed properties
  Number of properties                                     38           39
  Square feet                                       9,295,430    8,074,477
  Leased percentage                                        93%          89%



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

                                                                      %
                                                       % Leased   Interest
Single Asset REIT Name         City   State   S.F.     31-Dec-07    Held
                              ------- ----- ---------- ---------  --------
FSP 303 East Wacker Drive
 Corp.                        Chicago    IL    839,127      86.6%     43.7%
FSP Phoenix Tower Corp.       Houston    TX    618,507      97.8%      4.6%
FSP Park Ten Development
 Corp.                        Houston    TX    156,746      97.8%      3.1%
                                            ---------- ---------
                                             1,614,380      92.0%
                                            ---------- ---------




         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    4,223     3,976     4,453     4,109
    Depreciation and amortization      7,177     6,777     7,756     7,624
    Selling, general and
     administrative                    1,888     2,000     1,787     1,791
    Commissions                        1,560     1,754       406     1,017
    Interest                           2,676     1,622     1,823     1,563
                                    --------  --------  --------  --------
      Total expenses                  23,731    21,797    23,376    23,249
                                    --------  --------  --------  --------

    Income before interest income,
     equity in earnings
     (deficit) of non-consolidated
     REITs                             9,265    10,179     6,558     8,838
    Interest income                      654       560       649       514
    Equity in earnings (deficit) of
     non-consolidated REITs             (616)     (142)      147       147
                                    --------  --------  --------  --------

    Income before taxes on income      9,303    10,597     7,354     9,499
    Taxes on income                      240       373      (261)      295
                                    --------  --------  --------  --------

    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 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 Citigroup 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 County of Santa Clara                        90,467        91       1.8%
14 Ober Kaler Grimes                            88,000        81       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                                     2,737,820                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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