SOURCE: Franklin Street Properties Corp.

February 23, 2011 16:01 ET

Franklin Street Properties Corp. Announces Fourth Quarter and Full Year 2010 Results

WAKEFIELD, MA--(Marketwire - February 23, 2011) - Franklin Street Properties Corp. (the "Company", "FSP", "we" or "our") (NYSE Amex: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $17.5 million and $66.9 million or $0.22 and $0.84 per share for the fourth quarter and year ended December 31, 2010, respectively. The Company also announced Net Income of $5.8 million and $22.1 million and Earnings Per Share (EPS) of $0.07 and $0.28 for the fourth quarter and year ended December 31, 2010, respectively, 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.

                          Three Months Ended           Year Ended
                            December 31,               December 31,
                      -------------------------- --------------------------
(in 000's except per                   Increase                   Increase
 share data)            2010     2009  (Decrease)  2010     2009 (Decrease)
                      -------- -------- -------  -------- -------- -------

Net Income            $  5,820 $  8,257 $(2,437) $ 22,093 $ 27,872 $(5,779)
                      ======== ======== =======  ======== ======== =======

FFO                   $ 17,519 $ 19,075 $(1,556) $ 66,922 $ 71,359 $(4,437)
GOS                          -      424    (424)        -      424    (424)
                      -------- -------- -------  -------- -------- -------
FFO+GOS               $ 17,519 $ 19,499 $(1,980) $ 66,922 $ 71,783 $(4,861)
                      ======== ======== =======  ======== ======== =======
Per Share Data:
EPS                   $   0.07 $   0.10 $ (0.03) $   0.28 $   0.38 $ (0.10)
FFO                   $   0.22 $   0.24 $ (0.02) $   0.84 $   0.98 $ (0.14)
GOS                   $      - $      - $     -  $      - $      - $     -
FFO+GOS               $   0.22 $   0.24 $ (0.02) $   0.84 $   0.98 $ (0.14)

                      -------- -------- -------  -------- -------- -------
Weighted average
 shares (diluted)       80,187   79,681     507    79,826   73,001   6,825
                      -------- -------- -------  -------- -------- -------

Comparing results for the fourth quarter of 2010 to the same period in 2009, Net Income and EPS decreased by $2.4 million or $0.03 per share; and FFO decreased by $1.6 million or $0.02 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $1.8 million and was partially offset by an increase in investment banking FFO of $0.2 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio and increased administrative expenses during the fourth quarter of 2010 compared to the fourth quarter of 2009. There was no GOS during the fourth quarter of 2010 compared to $424,000 in the fourth quarter of 2009, which resulted from a gain recognized on a small piece of land as a result of a land taking.

Comparing results for the year ended December 31, 2010 to 2009, Net Income and EPS decreased by $5.8 million or $0.10 per share; and FFO decreased by $4.4 million or $0.14 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $5.8 million and was partially offset by an increase in investment banking FFO of $1.4 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio and increased administrative expenses during the year ended December 31, 2010 compared to the year ended December 31, 2009. The increase in investment banking FFO resulted primarily from increased revenues from syndication and transaction fees and a decrease in commission and administrative expenses, which were partially offset by an increase to income taxes, for the year ended December 31, 2010 compared to the year ended December 31, 2009. There was no GOS during the year ended December 31, 2010 compared to the $424,000 in the year ended December 31, 2009, which resulted from a gain recognized on a small piece of land as a result of a land taking.

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

"For the fourth quarter of 2010, FSP's profits as represented by FFO + GOS totaled approximately $17.5 million or $0.22 per share, an increase of $0.02 per share compared to the third quarter of 2010. Dividend distributions declared for the fourth quarter of 2010, which are payable on February 18, 2011, will be approximately $15.4 million or $0.19 per share.

"For 2010, FSP's profit results were under pressure primarily from increasing vacancy in the property portfolio created by large amounts of tenant lease expirations within a generally weak office market. Adding to this situation were continuing low levels of investment banking underwritings. The Company anticipated and planned for the levels of business activity and financial results it experienced in 2010. Looking forward to full-year 2011, we believe profit results will primarily be affected by the success and timing of our leasing efforts of existing vacancy and lease-roll in the portfolio, additional property portfolio acquisitions and capital closings of private placement offerings through our investment bank.

"Our directly-owned real estate portfolio of 33 properties was approximately 85.6% leased as of December 31, 2010 up from approximately 82.4% leased as of September 30, 2010. Several of our properties experienced significant lease-roll in 2010. As a result, we have experienced lower levels of rental income from these properties. However, assuming some level of continuing stability in the broader U.S. economic and employment picture, we believe that the third quarter of 2010 was likely to mark the bottom of FSP's portfolio occupancy levels in this cycle. While the first quarter of 2011 will see significant increased vacancy in our East Baltimore property, other large leases are being executed at properties such as Greenwood Plaza in Englewood, Colorado, Timberlake in Chesterfield, Missouri and Park Ten in Houston, Texas. We are optimistic that overall property portfolio occupancy will climb during full-year 2011.

"There were no new property acquisitions completed in the fourth quarter of 2010. The Company continues to work on additional property acquisitions for both direct purchase into the FSP portfolio and syndication through our Investment Banking Group. Efforts in this area have been productive as we start 2011 and we anticipate significant additional property acquisitions during the course of the year as we utilize our expanded credit facility and its structural flexibility to help grow FSP.

"During the fourth quarter of 2010, our Investment Banking Group began a new $30-million private placement syndication. Approximately $25 million of that offering was completed in the fourth quarter. The Investment Banking business operated at a profit for the quarter of about $1.4 million, or $0.02 per share. Currently we are working on completing that private placement as well as actively pursuing the possibility of a larger new underwriting/syndication opportunity. While we continue to see general investor confidence and interest in commercial real estate investing slowly improving, capital raising efforts over any specific period of time are likely to remain unpredictable.

"FSP did not have any of its properties listed for sale during the fourth quarter of 2010. Generally speaking, we continue to find the property sales environment challenged relative to both liquidity and pricing. However, we continue to witness improving pricing and liquidity in certain markets, extending a trend that began in the second half of 2009. An illustration of this dynamic is the sale of our Fairview Park property located in Falls Church, Virginia in January 2011 via an 'unsolicited' offer from a buyer who was very focused in their desire to invest capital in the property's specific submarket. Nationwide, the number of completed commercial real estate transactions still remains low by historical standards. We believe that both improving office property fundamentals as well as plentiful and attractive financing availability will likely be required to more meaningfully improve the market place for property dispositions. Since gain on sale (GOS) is an important part of our total return strategy, we intend to be active in property dispositions once the real estate cycle more fully establishes a pattern of improvement.

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

Asset Sale & Financing Update

On January 21, 2011, the Company completed the sale of an office property in Falls Church, Virginia and received proceeds of approximately $90 million.

On February 22, 2011, the Company closed a new credit facility with a group of banks (the "New Revolver"). The total availability under the New Revolver is $500 million. The New Revolver includes an accordion feature that allows for up to $100 million of additional borrowing capacity subject to receipt of lender commitments and satisfaction of certain customary conditions. As part of the closing, our $250 million line of credit and $75 million term loan (and interest rate swap) were repaid from the proceeds of the New Revolver and terminated. The New Revolver has an initial term that matures February 22, 2014 and also has a one-year extension option. The New Revolver is more fully described in our Annual Report on Form 10-K for the year ended December 31, 2010.

Dividend Announcement

On January 14, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended December 31, 2010 of $0.19 per share of common stock payable on February 18, 2011 to stockholders of record on January 28, 2011.

Real Estate Update

Supplementary Schedules D & E provide property information for our real estate portfolio of 33 properties held at December 31, 2010 and for three non-consolidated REITs that we have interests in as of December 31, 2010. 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.

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.

Reconciliation of Net Income to FFO
 and FFO+GOS:                       Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
(In thousands, except per share
 amounts)                             2010      2009      2010      2009
                                    --------  --------  --------  --------

Net income                          $  5,820  $  8,257  $ 22,093  $ 27,872
  (Gain) Loss on sale of properties        -      (424)        -      (424)
  GAAP income from non-consolidated
   REITs                                (153)     (301)   (1,190)   (2,012)
  Distributions from non-consolidated
   REITs                               1,247     1,371     5,170     5,628
  Acquisition costs of new properties      -         4       125       643
  Depreciation of real estate &
   intangible amortization            10,605    10,168    40,724    39,652
                                    --------  --------  --------  --------
Funds From Operations (FFO)           17,519    19,075    66,922    71,359
  Plus gains on sales of properties        -       424         -       424
                                    --------  --------  --------  --------
FFO+GOS                             $ 17,519  $ 19,499  $ 66,922  $ 71,783
                                    ========  ========  ========  ========

Per Share Data
EPS                                 $   0.07  $   0.10  $   0.28  $   0.38
FFO                                 $   0.22  $   0.24  $   0.84  $   0.98
GOS                                 $      -  $      -  $      -  $      -
FFO+GOS                             $   0.22  $   0.24  $   0.84  $   0.98

Weighted average shares (basic and
 diluted)                             80,187    79,681    79,826    73,001
                                    ========  ========  ========  ========

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 February 24, 2011 at 10:00 a.m. (ET) to discuss the fourth quarter and full year 2010 results. To access the call, please dial 1-800-561-2693, passcode 55957004. Internationally, the call may be accessed by dialing 1-617-614-3523, passcode 55957004. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.franklinstreetproperties.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.

About Franklin Street Properties Corp.

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

Forward-Looking Statements

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

                 Franklin Street Properties Corp.
                         Earnings Release
                    Supplementary information
                         Table of Contents


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


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

                                      For the             For the
                                  Three Months Ended     Year Ended
                                     December 31,        December 31,
                                --------------------- ---------------------
(in thousands, except per share
 amounts)                         2010       2009       2010       2009
                                ---------- ---------- ---------- ---------
Revenue:
  Rental                        $   29,953 $   29,260 $  115,320 $ 120,013
Related party revenue:
  Syndication fees                   1,862      2,389      2,544     2,428
  Transaction fees                   1,582      1,537      2,727     2,080
  Management fees and interest
   income from loans                   718        508      2,439     1,740
Other                                   54          6         89        61
                                ---------- ---------- ---------- ---------
    Total revenue                   34,169     33,700    123,119   126,322
                                ---------- ---------- ---------- ---------

Expenses:
  Real estate operating expenses     9,604      8,634     33,609    30,810
  Real estate taxes and insurance    4,454      4,102     18,170    18,981
  Depreciation and amortization      9,764      8,630     36,472    35,570
  Selling, general and
   administrative                    2,482      2,510      9,286     8,514
  Commissions                        1,011      1,622      1,477     1,801
  Interest                           2,004      1,650      7,283     6,570
                                ---------- ---------- ---------- ---------

    Total expenses                  29,319     27,148    106,297   102,246
                                ---------- ---------- ---------- ---------

Income before interest income,
 equity in earnings of
 non-consolidated REITs and
 taxes                               4,850      6,552     16,822    24,076
Interest income                          4          8         25        96
Equity in earnings of
 non-consolidated REITs                229        283      1,266     1,994
                                ---------- ---------- ---------- ---------

Income before taxes on income        5,083      6,843     18,113    26,166
Income tax expense (benefit)           317         64        217      (579)
                                ---------- ---------- ---------- ---------

  Income from continuing
   operations                        4,766      6,779     17,896    26,745
                                ---------- ---------- ---------- ---------
  Discontinued operations:
  Income from discontinued
   operations                        1,054      1,055      4,197       703
  Gain on sale of land in
   2009, less applicable
   income tax                            -        424          -       424
                                ---------- ---------- ---------- ---------
  Total discontinued
   operations                        1,054      1,479      4,197     1,127
                                ---------- ---------- ---------- ---------

Net income                      $    5,820 $    8,258 $   22,093 $  27,872
                                ========== ========== ========== =========




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

                                                        December 31,
                                                  ------------------------
(in thousands, except share and par value
 amounts)                                             2010         2009
                                                  -----------  -----------
Assets:
Real estate assets, net                           $   867,608  $   860,218
Acquired real estate leases, less accumulated
 amortization of $19,294 and $34,191, respectively     40,578       33,395
Investment in non-consolidated REITs                   89,327       92,910
Assets held for syndication, net                        2,976        4,827
Asset held for sale                                    69,790       72,182
Cash and cash equivalents                              68,213       27,404
Restricted cash                                           420          334
Tenant rent receivables, less allowance for
 doubtful accounts of $1,600 and $620, respectively     1,922        1,782
Straight-line rent receivable, less allowance for
 doubtful accounts of $700 and $100, respectively      18,752       10,633
Prepaid expenses                                        1,654        2,594
Related party mortgage loan receivable                 57,684       36,535
Other assets                                              853          844
Office computers and furniture, net of
 accumulated depreciation of $493 and $1,233,
 respectively                                             503          384
Deferred leasing commissions, net of accumulated
 amortization of $7,173, and $4,995, respectively      18,455       10,808
                                                  -----------  -----------
      Total assets                                $ 1,238,735  $ 1,154,850
                                                  ===========  ===========

Liabilities and Stockholders' Equity:
Liabilities:
  Bank note payable                               $   209,968  $   109,008
  Term loan payable                                    74,850       75,000
  Accounts payable and accrued expenses                22,435       23,787
  Accrued compensation                                  1,803        1,416
  Tenant security deposits                              1,930        1,808
  Other liabilities: derivative termination value       1,077        2,076
  Acquired unfavorable real estate leases, less
   accumulated amortization of $2,744 and $2,460,
   respectively                                         5,114        4,481
                                                  -----------  -----------
      Total liabilities                               317,177      217,576
                                                  -----------  -----------

Commitments and contingencies

Stockholders' Equity:
  Preferred stock, $.0001 par value, 20,000,000
   shares authorized, none issued or outstanding            -            -
  Common stock, $.0001 par value, 180,000,000
   shares authorized, 81,437,405 and 79,680,705
   shares issued and outstanding, respectively              8            8
  Additional paid-in capital                        1,025,491    1,003,713
  Accumulated other comprehensive loss                 (1,077)      (2,076)
  Accumulated distributions in excess of
   accumulated earnings                              (102,864)     (64,371)
                                                  -----------  -----------
     Total stockholders' equity                       921,558      937,274
                                                  -----------  -----------
     Total liabilities and stockholders' equity   $ 1,238,735  $ 1,154,850
                                                  ===========  ===========




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

                                                   For the Year Ended
                                                        December 31,
                                                  ------------------------
(in thousands)                                        2010         2009
                                                  -----------  -----------
Cash flows from operating activities:
   Net income                                     $    22,093  $    27,872
   Adjustments to reconcile net income to net
    cash provided by operating activities:
     Depreciation and amortization expense             39,627       36,561
     Amortization of above market lease                 1,362        3,359
     Gain on sale of real estate assets                     -         (424)
     Equity in earnings (losses) of
      non-consolidated REITs                           (1,183)      (2,012)
     Distributions from non-consolidated REITs          5,170        5,628
     Increase (decrease) in bad debt reserve              980          111
   Changes in operating assets and liabilities:
     Restricted cash                                      (86)           2
     Tenant rent receivables                           (1,120)        (564)
     Straight-line rents                               (4,249)      (1,879)
     Prepaid expenses and other assets                    865          907
     Accounts payable, accrued expenses and other
      items                                              (351)       2,760
     Accrued compensation                                 387         (238)
     Tenant security deposits                             122          (66)
   Payment of deferred leasing commissions            (10,515)      (2,659)
                                                  -----------  -----------
        Net cash provided by operating activities      53,102       69,358
                                                  -----------  -----------
Cash flows from investing activities:
   Purchase of real estate assets and office
    computers and furniture, capitalized merger
    costs                                             (38,781)    (104,544)
   Acquired real estate leases                        (15,563)     (27,779)
   Investment in non-consolidated REITs                   (11)     (13,218)
   Investment in related party mortgage loan
    receivable                                        (21,149)     (35,410)
   Changes in deposits on real estate assets             (200)           -
   Investment in assets held for syndication            1,319        8,159
   Proceeds received on sales of real estate
    assets                                                  -          672
                                                  -----------  -----------
        Net cash used in investing activities         (74,385)    (172,120)
                                                  -----------  -----------
Cash flows from financing activities:
     Distributions to stockholders                    (60,586)     (55,313)
     Proceeds from equity offering                     22,701      119,600
     Offering costs                                      (833)      (4,905)
     Borrowings under bank note payable               100,960       41,540
     Borrowings (principal repayment) under term
      loan payable                                       (150)           -
                                                  -----------  -----------
        Net cash provided by financing activities      62,092      100,922
                                                  -----------  -----------
Net increase (decrease) in cash and cash
 equivalents                                           40,809       (1,840)
Cash and cash equivalents, beginning of year           27,404       29,244
                                                  -----------  -----------
Cash and cash equivalents, end of year            $    68,213  $    27,404
                                                  ===========  ===========





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

               Commercial portfolio lease expirations (1)
                       As of December 31, 2010
                                            Total         % of
Year                                     Square Feet   Portfolio
                                         ------------ -----------
2011 (2)                                      655,783        10.2%
2012                                          399,528         6.2%
2013                                          543,235         8.4%
2014                                          595,886         9.3%
2015                                          813,023        12.7%
Thereafter (3)                              3,414,902        53.2%
                                         ------------ -----------
                                            6,422,357       100.0%
                                         ============ ===========

(1) Percentages are determined based upon square footage of expiring
    commercial leases and includes one asset held for sale.
(2) Includes 1.3% of month-to-month leases and 0.5% that expired
    January 1, 2011.
(3) Includes 924,120 square feet of current vacancies.



(dollars & square feet
  in 000's)                        As of December 31, 2010
                -----------------------------------------------------------
                   # of                    % of       Square       % of
State           Properties  Investment  Portfolio      Feet     Portfolio
                ----------- ----------- ----------  ----------- ----------

Texas                     7 $   221,569       23.9%       1,489       23.2%
Virginia                  5     161,679       17.4%         947       14.8%
Colorado                  4     126,201       13.6%         789       12.3%
Minnesota                 2      38,237        4.1%         628        9.8%
Missouri                  3      70,336        7.6%         477        7.4%
Maryland                  2      60,598        6.4%         424        6.6%
Georgia                   1      73,867        8.0%         387        6.0%
Michigan                  1      14,658        1.6%         215        3.3%
Florida                   1      46,986        5.1%         213        3.3%
Indiana                   1      35,761        3.9%         205        3.2%
Illinois                  1      28,794        3.1%         177        2.8%
California                2      21,058        2.3%         182        2.8%
North Carolina            2      13,780        1.5%         172        2.7%
Washington                1      14,412        1.5%         117        1.8%
                ----------- ----------- ----------  ----------- ----------
                         33 $   927,936      100.0%       6,422      100.0%
                =========== =========== ==========  =========== ==========




Property by type:
(dollars &
 square feet
 in 000's)                       As of December 31, 2010
                -----------------------------------------------------------
                   # of                    % of       Square       % of
Type            Properties  Investment  Portfolio      Feet     Portfolio
                ----------- ----------- ----------  ----------- ----------
Office                   32 $   923,026       99.5%       6,323       98.5%
Industrial                1       4,910        0.5%          99        1.5%
                ----------- ----------- ----------  ----------- ----------
                         33 $   927,936      100.0%       6,422      100.0%
                =========== =========== ==========  =========== ==========





              Franklin Street Properties Corp. Earnings Release
                         Supplementary Schedule E
               Portfolio and Other Supplementary Information
                        (Unaudited & Approximated)

         Capital Expenditures
         Owned Portfolio                                 Year Ended
        (in thousands)                          ---------------------------
                                                  31-Dec-10     31-Dec-09
                                                ------------- -------------

         Tenant improvements                    $       7,000 $       4,744
         Deferred leasing costs                        10,515         2,659
         Building improvements                          2,602         1,466
                                                ------------- -------------
                                                $      20,117 $       8,869
                                                ============= =============



Square foot & leased percentages                December 31,  December 31,
                                                ------------  ------------
                                                    2010          2009
                                                ------------  ------------

Owned portfolio of commercial real estate
         Number of properties (1)                         33            32
         Square feet                               6,422,357     5,942,414
         Leased percentage                                86%           84%

Investments in non-consolidated REITs
         Number of properties                              3             3
         Square feet                               1,995,913     1,995,041
         Leased percentage                                77%           78%

Single Asset REITs (SARs) managed
         Number of properties                             12            11
         Square feet (2)                           2,915,896     2,406,370
         Leased percentage                                75%           91%

Total owned, investments & managed properties
         Number of properties                             48            46
         Square feet (2)                          11,334,166    10,343,825
         Leased percentage                                81%           85%

(1) Includes asset held for sale
(2) December 31, 2009 excludes a managed property that completed
    construction on July 9, 2010 with approximately 295,891 square feet.

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

                                          Square     % Leased   % Interest
Non-consolidated REIT    City     State    Feet     31-Dec-10      Held
                      ----------- ----- ----------- ----------  ----------
FSP 303 East Wacker
 Drive Corp.              Chicago    IL     844,953      74.54%       43.7%
FSP Grand Boulevard
 Corp.                Kansas City    MO     532,453      89.50%       27.0%
FSP Phoenix Tower
 Corp.                    Houston    TX     618,507      68.31%        4.6%
                                        ----------- ----------
                                          1,995,913      76.60%
                                        ----------- ----------






             Franklin Street Properties Corp. Earnings Release
              Supplementary Schedule F: Quarterly Information
                                (Unaudited)

(in 000's)
                                       Q1        Q2        Q3        Q4
Revenue:                              2010      2010      2010      2010
                                    --------  --------  --------  --------
  Rental                            $ 28,757  $ 27,219  $ 29,391  $ 29,953
  Related party revenue:
    Syndication fees                     121       541        20     1,862
    Transaction fees                     146       753       246     1,582
    Management fees and
     interest income from loans          533       558       630       718
  Other                                    9         6        20        54
                                    --------  --------  --------  --------
      Total revenue                   29,566    29,077    30,307    34,169
                                    --------  --------  --------  --------

Expenses:
    Real estate operating expenses     7,955     7,335     8,715     9,604
    Real estate taxes and insurance    4,996     4,061     4,659     4,454
    Depreciation and amortization      8,496     8,521     9,691     9,764
    Selling, general and
     administrative                    2,171     2,559     2,074     2,482
    Commissions                          114       336        16     1,011
    Interest                           1,652     1,735     1,892     2,004
                                    --------  --------  --------  --------
      Total expenses                  25,384    24,547    27,047    29,319
                                    --------  --------  --------  --------

    Income before interest income,
     equity in earnings in
     non-consolidated REITs            4,182     4,530     3,260     4,850
    Interest income                        8         9         4         4
    Equity in earnings in
     non-consolidated REITs              253       380       404       229
                                    --------  --------  --------  --------

    Income before taxes on income      4,443     4,919     3,668     5,083
    Taxes on income                      (68)        5       (37)      317
                                    --------  --------  --------  --------

    Income from continuing
     operations                        4,511     4,914     3,705     4,766
    Income from discontinued
     operations                        1,051     1,040     1,052     1,054
                                    --------  --------  --------  --------

    Income before gain on sale of
     properties                        5,562     5,954     4,757     5,820
    Gain on sale of assets                 -         -         -         -
                                    --------  --------  --------  --------
    Net income                      $  5,562  $  5,954  $  4,757  $  5,820
                                    --------  --------  --------  --------

FFO and  FFO+GOS calculations:

Net income                          $  5,562  $  5,954  $  4,757  $  5,820
                                    --------  --------  --------  --------
    (Gain) Loss on sale of assets          -         -         -         -
    GAAP income from
     non-consolidated REITs             (253)     (380)     (404)     (153)
    Distributions from
     non-consolidated REITs            1,407     1,324     1,192     1,247
    Acquisition costs of new
     properties                            -       129        (4)        -
    Depreciation of real estate and
     intangible amortization           9,934     9,675    10,510    10,605
                                    --------  --------  --------  --------
Funds From Operations (FFO)           16,650    16,702    16,051    17,519
    Plus gains on sales of assets          -         -         -         -
                                    --------  --------  --------  --------
FFO+GOS                             $ 16,650  $ 16,702  $ 16,051  $ 17,519
                                    ========  ========  ========  ========





           Franklin Street Properties Corp. Earnings Release
                       Supplementary Schedule G
                      Percentage of Leased Space
                        (Unaudited & Estimated)

                                                                    Third
                                                        % Leased  Quarter
                                                          as of   Average
                                               Square   9/30/10   % Leased
     Property Name              Location        Feet      (1)       (2)
   --------------------     -----------------  --------- --------  --------

1  PARK SENECA              Charlotte, NC       109,550     84.0%     84.3%
2  HILLVIEW CENTER          Milpitas, CA         36,288    100.0%    100.0%
3  SOUTHFIELD               Southfield, MI      214,697     58.6%     57.6%
4  BOLLMAN PLACE            Savage, MD           98,745    100.0%    100.0%
5  FOREST PARK              Charlotte, NC        62,212    100.0%    100.0%
6  CENTENNIAL               Colorado Springs,
                            CO                  110,730     66.9%     66.9%
7  MEADOW POINT             Chantilly, VA       138,537     97.9%     96.1%
8  TIMBERLAKE               Chesterfield, MO    232,766     99.0%     99.0%
9  FEDERAL WAY              Federal Way, WA     117,010     28.3%     28.3%
10 NORTHWEST POINT          Elk Grove Village,
                            IL                  176,848    100.0%    100.0%
11 TIMBERLAKE EAST          Chesterfield, MO    116,197    100.0%    100.0%
12 PARK TEN                 Houston, TX         155,715     48.2%     48.2%
13 MONTAGUE                 San Jose, CA        145,951    100.0%    100.0%
14 ADDISON                  Addison, TX         293,787     95.8%     93.7%
15 COLLINS CROSSING         Richardson, TX      298,766     28.8%     28.8%
16 GREENWOOD PLAZA          Englewood, CO       197,527     26.6%     23.6%
17 RIVER CROSSING           Indianapolis, IN    205,059     97.5%     97.5%
18 LIBERTY PLAZA            Addison, TX         218,934     76.9%     77.6%
19 INNSBROOK                Glen Allen, VA      308,803     31.3%     31.3%
20 380 INTERLOCKEN          Broomfield, CO      240,184     85.1%     85.1%
21 BLUE LAGOON              Miami, FLA          212,619    100.0%    100.0%
22 ELDRIDGE GREEN           Houston, TX         248,399    100.0%    100.0%
23 WILLOW BEND              Plano, TX           116,622     55.5%     53.6%
24 ONE OVERTON PARK         Atlanta, GA         387,267     92.4%     92.5%
25 390 INTERLOCKEN          Broomfield, CO      241,516     98.3%     98.3%
26 EAST BALTIMORE           Baltimore, MD       325,445     94.8%     95.1%
27 PARK TEN PHASE II        Houston, TX         156,746     97.8%     97.8%
28 LAKESIDE CROSSING I      Maryland Heights,
                            MO                  127,778    100.0%    100.0%
29 LOUDOUN TECH             Dulles, VA          135,888    100.0%    100.0%
30 4807 STONECROFT          Chantilly, VA       111,469    100.0%    100.0%
31 EDEN BLUFF               Eden Prairie, MN    153,028    100.0%    100.0%
32 3150 FAIRVIEW PARK DRIVE Falls Church, VA    252,613    100.0%    100.0%
33 121 SOUTH EIGHTH STREET  Minneapolis, MN     474,661     92.1%     91.3%
                                              --------- --------  --------
   TOTAL WEIGHTED AVERAGE                     6,422,357     82.4%     82.1%
                                              --------- --------  --------



                                                        Fourth
                                                        Quarter
                                              % Leased  Average
                                                as of       %
                                              12/31/10   Leased
     Property Name              Location         (1)       (2)
   --------------------     ----------------- --------  --------

1  PARK SENECA              Charlotte, NC         81.0%     82.9%
2  HILLVIEW CENTER          Milpitas, CA         100.0%    100.0%
3  SOUTHFIELD               Southfield, MI        58.6%     58.6%
4  BOLLMAN PLACE            Savage, MD           100.0%    100.0%
5  FOREST PARK              Charlotte, NC        100.0%    100.0%
6  CENTENNIAL               Colorado Springs,
                            CO                    66.9%     66.9%
7  MEADOW POINT             Chantilly, VA         97.9%     97.9%
8  TIMBERLAKE               Chesterfield, MO      99.0%     99.0%
9  FEDERAL WAY              Federal Way, WA       33.6%     31.8%
10 NORTHWEST POINT Elk      Grove Village, IL    100.0%    100.0%
11 TIMBERLAKE EAST          Chesterfield, MO     100.0%    100.0%
12 PARK TEN                 Houston, TX           48.2%     48.2%
13 MONTAGUE                 San Jose, CA         100.0%    100.0%
14 ADDISON                  Addison, TX           95.8%     95.8%
15 COLLINS CROSSING         Richardson, TX        79.1%     58.3%
16 GREENWOOD PLAZA          Englewood, CO         26.6%     26.6%
17 RIVER CROSSING           Indianapolis, IN      97.5%     97.7%
18 LIBERTY PLAZA            Addison, TX           73.7%     73.7%
19 INNSBROOK Glen           Allen, VA             61.4%     41.9%
20 380 INTERLOCKEN          Broomfield, CO        85.1%     85.1%
21 BLUE LAGOON              Miami, FLA           100.0%    100.0%
22 ELDRIDGE GREEN           Houston, TX          100.0%    100.0%
23 WILLOW BEND              Plano, TX             55.5%     55.5%
24 ONE OVERTON PARK         Atlanta, GA           92.4%     92.4%
25 390 INTERLOCKEN          Broomfield, CO        98.3%     98.3%
26 EAST BALTIMORE           Baltimore, MD         84.5%     91.4%
27 PARK TEN PHASE II        Houston, TX           97.8%     97.8%
28 LAKESIDE CROSSING I      Maryland Heights,
                            MO                   100.0%    100.0%
29 LOUDOUN TECH             Dulles, VA           100.0%    100.0%
30 4807 STONECROFT          Chantilly, VA        100.0%    100.0%
31 EDEN BLUFF               Eden Prairie, MN     100.0%    100.0%
32 3150 FAIRVIEW PARK DRIVE Falls Church, VA     100.0%    100.0%
33 121 SOUTH EIGHTH STREET  Minneapolis, MN       92.1%     92.1%
                                              --------  --------
   TOTAL WEIGHTED AVERAGE                         85.6%     84.1%
                                              --------  --------

(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.





          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 December 31, 2010

                                                             SIC    % of
   Tenant                                            Sq Ft   Code Portfolio
   -------------------------------------           --------- ---- --------
1  TCF National Bank                           (1)   266,495   60      4.2%
2  Noblis, Inc.                                (2)   252,613   54      3.9%
3  CITGO Petroleum Corporation                 (3)   248,399   29      3.9%
4  Burger King Corporation                           212,619   58      3.3%
5  RGA Reinsurance Company                           185,501   63      2.9%
6  Citicorp Credit Services, Inc               (4)   176,848   61      2.8%
7  C.H. Robinson Worldwide, Inc.                     153,028   47      2.4%
8  SunTrust Bank                               (5)   145,204   60      2.3%
9  Geisecke & Devrient America, Inc.                 135,888   73      2.1%
10 Murphy Exploration & Production
   Company                                           133,786   13      2.1%
11 Monsanto Company                                  127,778   28      2.0%
12 Vail Holding, Inc.                          (6)   121,913   79      1.9%
13 Northrop Grumman Information
   Technology, Inc.                                  111,469   73      1.7%
14 Maines Paper & Food Service, Inc.                  98,745   51      1.5%
15 Federal National Mortgage Association       (7)    92,358   61      1.4%
16 Amdocs, Inc.                                       91,928   73      1.4%
17 County of Santa Clara                              90,467   91      1.4%
18 Ober Kaler Grimes & Shriver                        88,736   81      1.4%
19 VCE Company, LLC                            (8)    85,650   73      1.3%
20 ARGO Data Resource Corporation                     83,944   73      1.3%
                                                   ---------      --------
     Total                                         2,903,369          45.2%
                                                   ---------      --------

(1) Property was acquired on June 29, 2010.
(2) Property was sold January 21, 2011.
(3) On January 20, 2010, the Company signed a new lease at a Houston, Texas
    property, for approximately 248,000 square feet of space with one of
    its tenants, CITGO Petroleum Corporation, effectively extending the
    lease expiration from February 29, 2012 to February 28, 2022.
(4) The lease with Citicorp Credit Services, Inc. is guaranteed by
    Citigroup.
(5) On December 22, 2010, the Company signed a lease for approximately
    90,000 square feet at a Glen Allen, Virginia property.  The lease
    expires on September 30, 2021.  The tenant also leases approximately
    55,000 square feet at a Baltimore, Maryland property.  The lease in
    Baltimore expires on October 31, 2016.
(6) On March 22, 2010, the Company signed a lease for approximate 38,000
    square feet of space with one of its tenants, Vail Holdings, Inc.
    through March 2019.  The remaining space of approximately 84,000
    square feet is leased through March 2023.
(7) On June 7, 2010, Federal National Mortgage Association commenced a
    lease for approximately 92,000 square feet of space at an Addison,
    Texas property.  The lease expires September 6, 2013.
(8) On December 20, 2010, the Company signed a lease for approximately
    86,000 square feet of space at a Richardson, Texas property.
    The lease expires on September 30, 2019 and is guaranteed by EMC
    Corporation.






           Franklin Street Properties Corp. Earnings Release
                       Supplementary Schedule I
              Definition of Funds From Operations ("FFO"),
                 and FFO plus Gains on Sales ("FFO+GOS")

The Company evaluates the performance of its reportable segments based on several measures including Funds From Operations ("FFO") and FFO plus Gains on Sales ("FFO+GOS") as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs. The Company defines FFO+GOS as FFO as defined above, plus gains (or losses) from sales of properties and provisions for assets held for sale, if applicable.

FFO and FFO+GOS should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company's financial performance, nor as alternatives to cash flows from operating activities (determined in accordance with GAAP), nor as measures of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs. Other real estate companies may define these terms in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO and FFO+GOS should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.

Contact Information

  • Contact:
    John Demeritt
    (877) 686-9496