SOURCE: Franklin Street Properties Corp.

February 20, 2007 08:11 ET

Franklin Street Properties Corp. Announces Record 2006 Earnings

WAKEFIELD, MA -- (MARKET WIRE) -- February 20, 2007 -- Franklin Street Properties Corp. (the "Company" or "FSP") (AMEX: FSP) announced today record Net Income and Earnings Per Share (EPS) for the year ended December 31, 2006. The Company also announced increased Adjusted Funds From Operations (AFFO) over 2005, record AFFO plus Gains on Sales (AFFO+GOS) and provided an update on other activities.

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

(in 000's
 except per           Three Months Ended
 share data)             December  31,          Year Ended December 31,
                ----------------------------- -----------------------------
                  2006      2005    Increase    2006      2005    Increase
                --------- --------- --------- --------- --------- ---------
Net Income      $  39,482 $  28,424 $  11,058 $ 110,929 $  75,116 $  35,813
                ========= ========= ========= ========= ========= =========

AFFO            $  20,320 $  16,934 $   3,386 $  79,987 $  64,970 $  15,017
GOS                26,969    17,232     9,737    61,438    30,493    30,945
                --------- --------- --------- --------- --------- ---------
AFFO+GOS        $  47,289 $  34,166 $  13,123 $ 141,425 $  95,463 $  45,962
                ========= ========= ========= ========= ========= =========

Per Share Data:
EPS             $    0.56 $    0.47 $    0.09 $    1.65 $    1.32 $    0.33
AFFO            $    0.29 $    0.28 $    0.01 $    1.19 $    1.14 $    0.05
AFFO+GOS        $    0.67 $    0.57 $    0.10 $    2.11 $    1.68 $    0.43

Weighted ave
 shares
 (diluted)         70,766    60,259    10,507    67,159    56,847    10,312
                --------- --------- --------- --------- --------- ---------
George J. Carter, President and CEO, commented as follows:

"FSP is a real estate investment company that has three major components to its profitability.

1. Rental income from properties
2. Gains or losses on sales of properties
3. Fee income from real estate investment banking activities
Because property sales and investment banking are transactional sources of business, their contribution from quarter-to-quarter can be quite variable. Consequently, FSP management believes that a much more meaningful view of financial performance and potential future performance can be ascertained from annual financial results. Our 2006 financial performance metrics, which we believe to be most important when evaluating FSP, follow below."
(in 000's except per Share amounts, which are fully diluted)


                                 Year ended
                               December 31,
                            ----------------------
                                                      FSP Closing Share
                               2006        2005             Prices:
                            ----------  ----------- ----------------------
Increase in Shareholders'
 Equity per share           $     1.97  $      0.92   12/31/06  $     21.05
Dividend paid per share           1.24         1.24   12/31/05  $     20.95
                            ==========  ===========
Total                       $     3.21  $      2.16   12/31/04          N/A
                            ==========  ===========
Total as a percentage of
 12/31/05 closing price           15.3%         N/A
                            ==========  ===========

                                                    % Increase  Multiple on
                                                       Over        21.05
2006 results                 31-Dec-06    31-Dec-05 Prior Year  Share Price
                            ----------  ----------- ----------  -----------
Per share amounts:
EPS (net income)            $     1.65  $      1.32       25.0%        12.8
AFFO                        $     1.19  $      1.14        4.4%        17.7
GOS (Gain on sales of
 assets)                    $     0.91  $      0.54       68.5%        23.1
AFFO + GOS                  $     2.11  $      1.68       25.6%        10.0
AFFO plus appreciation
 realized on assets sold    $     1.87  $      1.42       31.7%        11.3

Shareholders' Equity per
 share                      $    13.03  $     11.06       17.8%         1.6
                            ==========  =========== ==========  ===========

Cash and certificate of
 deposit                    $   75,116  $    69,715        7.7%
                            ==========  =========== ==========

Permanent Debt              $     0.00  $      0.00        0.0%
                            ==========  =========== ==========
"As we begin 2007, I continue to be confident that FSP's financial position is strong, competitive and flexible within the broader capital and real estate markets, and anticipate continued growth and performance from our three major business components."

Discussion of results:

The following significant factors affected Net Income, EPS, AFFO and AFFO+GOS for the three months and year ended December 31, 2006 compared to results for the same periods in 2005:

--  Gains on sale of properties including a provision for loss on an asset
    held for sale during the three months and year ended December 31, 2006 was
    $27.0 million and $61.4 million, respectively.  Net gains on the sale of
    properties during the three months and year ended December 31, 2005 was
    $17.2 million and $30.5 million, respectively.
--  Increased net operating income from the real estate portfolio
    included:
    o    The benefits of four properties acquired by merger in April 2005 and
    five properties acquired by merger in April 2006, which were accretive to
    our per share calculations.
    o    The benefits of two suburban office properties acquired directly in
    2005 and three suburban office properties acquired directly in 2006.
    o    Lease termination payments received of $0.8 million and $7.5 million
    during the three months and year ended December 31, 2006, respectively,
    compared to $0.2 million and $1.0 million for the three months and year
    ended December 31, 2005.  Except for a lease which expired at December 31,
    2006, a substantial amount of the space at the related properties was re-
    leased.
--  Greater investment banking results compared to the same periods in
    2005.  Gross proceeds on the sale of securities, which our revenue and
    expenses in investment banking are directly related to, was $170.2 million
    for the year ended December 31, 2006 compared to $138.8 million for 2005.
    This was an increase of $36.5 million and $31.4 million for the three
    months and year ended December 31, 2006, respectively, compared to the same
    periods in 2005.
    
--  Interest income increased $0.4 million and $1.4 million in the three
    months and year ended December 31, 2006, respectively, compared to the same
    periods in 2005 as a result of higher bank balances during the periods and
    rising interest rates.
--  General and administrative costs increased $0.9 million and $1.1
    million for the three months and year ended December 31, 2006, compared to
    the same periods in 2005.  The increase was primarily from compensation and
    other costs relating to merger, acquisition and disposition activity and
    monitoring and managing a larger portfolio of properties.
--  A net increase of 10.5 million and 10.3 million weighted average
    shares for the three months and year ended December 31, 2006, respectively,
    compared to 2005 due to the merger completed on April 30, 2006.
    
A reconciliation of Net Income to AFFO, AFFO+GOS and AFFO plus appreciation realized on assets sold is shown below, and definitions of AFFO, AFFO+GOS and AFFO plus appreciation realized on assets sold are provided on Supplemental Schedule F. We believe AFFO is used broadly throughout the REIT industry as a measurement of performance and is generally calculated in a similar manner to our calculation. We also believe that AFFO+GOS and AFFO plus appreciation realized on assets sold are important measures as they consider investment performance.
                                 Three Months Ended        Year Ended
                                    December 31,          December 31,
                                --------------------  --------------------
(In thousands except per share
 amounts)                         2006       2005       2006       2005
                                ---------  ---------  ---------  ---------


Net income                      $  39,482  $  28,424  $ 110,929  $  75,116
 Net gains on sales of assets
  and provision on one asset
  held for sale                   (26,969)   (17,232)   (61,438)   (30,493)
 GAAP income from
  non-consolidated REITs             (131)      (121)    (1,043)    (1,418)
 Distributions from
  non-consolidated REITs               59        130        783      1,217
 Depreciation of real estate &
  intangible amortization           8,684      6,258     32,090     22,240
 Straight-line rent                  (805)      (525)    (1,334)    (1,692)
                                ---------  ---------  ---------  ---------
Adjusted Funds From Operations
 (AFFO)                            20,320     16,934     79,987     64,970
 Plus gains on sales of assets
  and provision on one asset
  held for sale                    26,969     17,232     61,438     30,493
                                ---------  ---------  ---------  ---------
AFFO+GOS                           47,289     34,166    141,425     95,463
 Adjustment for appreciation
  realized on assets sold          (8,330)    (7,277)   (15,605)   (14,502)
                                ---------  ---------  ---------  ---------
AFFO plus appreciation realized
 on assets sold                 $  38,959  $  26,889  $ 125,820  $  80,961
                                =========  =========  =========  =========

Per Share Data
EPS                             $    0.56  $    0.47  $    1.65  $    1.32
AFFO                            $    0.29  $    0.28  $    1.19  $    1.14
AFFO+GOS                        $    0.67  $    0.57  $    2.11  $    1.68
AFFO plus appreciation realized
 on assets sold                 $    0.55  $    0.45  $    1.87  $    1.42

Weighted average shares (basic
 and diluted)                      70,766     60,259     67,159     56,847
                                =========  =========  =========  =========
Dividend announcement

On January 19, 2007, the Board of Directors of the Company declared a cash distribution of $0.31 per share of common stock payable on February 20, 2007 to stockholders of record on January 31, 2007.

Real Estate and Investment Banking Update

During the fourth quarter we acquired a suburban office property in Broomfield, Colorado with a total of approximately 241,000 square feet of rentable space. The purchase was financed with proceeds from property sales. We sold two suburban office properties located in Herndon, Virginia and North Andover, Massachusetts with a total of 251,000 square feet. In December 2006, we reached an agreement to sell a suburban office property in Greenville, South Carolina with a total of 144,000 square feet of rentable space. The property was sold on January 31, 2007 at a loss of approximately $4.9 million, which was provided for in 2006. Supplementary Schedule D presents our continuing real estate portfolio of 29 properties as of December 31, 2006. In January 2007 we commenced a new syndication as part of our real estate investment banking activities with an opportunity to place up to $221 million.

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 21, 2007 at 9:30 a.m. (ET) to discuss the fourth quarter and year end 2006 results. The toll free number is 1-800-510-9661, passcode 43336594. Internationally, the call may be accessed by dialing 1-617-614-3452, passcode 43336594. 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. is an investment firm specializing in real estate based in Wakefield, Massachusetts, which 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. FSP's subsidiary, FSP Investments LLC (member, NASD 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 are 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 Quarterly Report on Form 10-Q for the three and nine months ended September 30, 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 Item 1A of our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2006 and subsequent filings with the 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
                                  Earnings Release
                             Supplementary information
                                 Table of contents

Franklin Street Properties Financial Results                           A-C
Real estate portfolio summary information                                D
Other supplementary information                                          E
Definition of Adjusted Funds From Operations (AFFO),
AFFO+GOS and AFFO plus appreciation realized on assets sold              F


Franklin Street Properties 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)                             2006      2005      2006      2005
                                    ========= ========= ========= =========

Revenue:
 Rental                             $  24,233 $  17,271 $  90,270 $  57,693
Related party revenue:
 Syndication fees                       4,405     2,291    10,693     9,268
 Transaction fees                       4,714     2,524    11,262     9,412
 Management fees and interest
  income from loans                     1,005       205     2,083     1,807
Other                                      36         -        60         -
                                    --------- --------- --------- ---------
  Total revenue                        34,393    22,291   114,368    78,180
                                    --------- --------- --------- ---------

Expenses:
 Real estate operating expenses         6,505     4,180    20,845    12,330
 Real estate taxes and insurance        3,701     2,670    13,220     8,568
 Depreciation and amortization          6,487     3,998    22,819    12,503
 Selling, general and administrative    2,734     1,851     8,518     7,448
 Commissions                            2,233     1,357     5,522     5,005
 Interest                               1,189       173     2,449     2,997
                                    --------- --------- --------- ---------

  Total expenses                       22,849    14,229    73,373    48,851
                                    --------- --------- --------- ---------

Income before interest income,
 equity in earnings of
non-consolidated REITs and taxes on
 income                                11,544     8,062    40,995    29,329
Interest income                           918       541     2,998     1,588
Equity in earnings of
 non-consolidated REITs                   128       102       845     1,397
                                    --------- --------- --------- ---------

Income before taxes on income          12,590     8,705    44,838    32,314
Income tax expense                        567       125       839       422
                                    --------- --------- --------- ---------

Income from continuing operations      12,023     8,580    43,999    31,892
Income from discontinued operations       490     2,612     5,492    12,731
Gains on asset sales including
 provision for loss on asset held
 for sale                              26,969    17,233    61,438    30,493
                                    --------- --------- --------- ---------

Net income                          $  39,482 $  28,425 $ 110,929 $  75,116
                                    ========= ========= ========= =========
Weighted average number of shares
 outstanding, basic and diluted        70,766    60,259    67,159    56,847
                                    ========= ========= ========= =========
Earnings per share, basic and
 diluted, attributable to:
Continuing operations               $    0.17 $    0.14 $    0.66 $    0.56
Discontinued operations                  0.01      0.04      0.08      0.22
Gains on asset sales including
 provision for loss on asset held
 for sale.                               0.38      0.29      0.91      0.54
                                    --------- --------- --------- ---------
Net income per share, basic and
 diluted                            $    0.56 $    0.47 $    1.65 $    1.32
                                    ========= ========= ========= =========


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

(in thousands, except share and par value amounts)        December 31,
                                                      --------------------
                                                        2006       2005
                                                      ---------  ---------
Assets:
Real estate investments, net                          $ 803,490  $ 444,936
Acquired real estate leases, less accumulated
 amortization of $21,548 and $9,227, respectively        43,167     28,289
Investment in non-consolidated REITs                      5,064      5,006
Assets held for sale                                      5,830    119,479
Cash & cash equivalents                                  69,973     69,715
Certificate of deposit maturing April 11, 2007            5,143         --
Restricted cash                                             761        461
Tenant rent receivables, less allowance for doubtful
 accounts of $433 and $350, respectively                  2,440      1,447
Straight-line rent receivable, less allowance for
 doubtful accounts of $163 and $163, respectively         4,720      3,497
Prepaid expenses                                            972        805
Deposits on real estate assets                            5,010        710
Other assets                                              1,118        489
Office computers and furniture, net of accumulated
 depreciation of $851 and $729, respectively                375        311
Deferred leasing commissions, net of accumulated
 amortization of $1,323, and $704, respectively           7,254      2,028
                                                      ---------  ---------
Total assets                                          $ 955,317  $ 677,173
                                                      =========  =========

Liabilities and Stockholders' Equity:
Liabilities:
Accounts payable and accrued expenses                 $  25,275  $  11,583
Accrued compensation                                      2,643      1,891
Tenant security deposits                                  1,744      1,293
Acquired unfavorable real estate leases, less
 accumulated amortization of $534, and $134,
 respectively                                             3,693        823
                                                      ---------  ---------
Total liabilities                                        33,355     15,590
                                                      ---------  ---------

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, 70,766,305 and 59,794,608 shares issued
 and outstanding, respectively                                7          6
Additional paid-in capital                              907,794    677,397
Treasury stock, 731,898 and 731,898 shares at cost,
 respectively                                           (14,008)   (14,008)
Earnings (distributions) in excess of accumulated
 earnings/distributions                                  28,169     (1,812)
                                                      ---------  ---------

Total stockholders' equity                              921,962    661,583
                                                      ---------  ---------

Total liabilities and stockholders' equity            $ 955,317  $ 677,173
                                                      =========  =========


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


(in thousands)                                            December 31,
                                                      --------------------
                                                        2006       2005
                                                      ---------  ---------
Cash flows from operating activities:
 Net income                                           $ 110,929  $  75,116
 Adjustments to reconcile net income to net
  cash provided by  operating activities:
  Gains on assets sold, net                             (61,438)   (30,493)
  Depreciation and amortization expense                  24,951     17,937
  Amortization of above market lease                      7,138      4,310
  Equity in earnings from non-consolidated REITs         (1,043)    (1,418)
  Distributions from non-consolidated REITs                 783      1,217
  Increase to bad debt reserve                               83          -
  Shares issued as compensation                               -         31
 Changes in operating assets and liabilities:
  Restricted cash                                          (300)       572
  Tenant rent receivables, net                           (1,076)      (678)
  Straight-line rents, net                               (1,334)    (1,692)
  Prepaid expenses and other assets, net                   (327)       586
  Accounts payable and accrued expenses                   1,174       (200)
  Accrued compensation                                      752      1,186
  Tenant security deposits                                  451        260
 Payment of deferred leasing commissions                 (5,880)    (1,560)
                                                      ---------  ---------
   Net cash provided by operating activities             74,863     65,174
                                                      ---------  ---------

Cash flows from investing activities:
   Cash acquired through issuance of common stock
    in merger transaction                                13,849     10,621
   Purchase of real estate assets, office computers
    and furniture, capitalized merger costs            (159,351)   (75,988)
   Merger costs paid                                       (838)      (402)
   Purchase of acquired favorable and unfavorable
    leases, net                                          (6,801)   (12,513)
   Investment in certificate of deposit                  (5,143)         -
   Investment in non-consolidated REITs                  (4,137)       (18)
   Investment in assets held for syndication, net             -     59,532
   Changes in deposits on real estate assets             (4,300)      (710)
   Proceeds received on sale of real estate assets      173,183    112,030
                                                      ---------  ---------
   Net cash provided by investing activities              6,462     92,552
                                                      ---------  ---------

Cash flows from financing activities:
   Distributions to stockholders                        (80,948)   (67,208)
   Offering costs                                          (119)         -
   Purchase of treasury shares                                -    (14,008)
   Deferred financing costs                                   -       (108)
   Borrowings (repayments) under bank note payable,
    net                                                       -    (59,439)
                                                      ---------  ---------
   Net cash used for financing activities               (81,067)  (140,763)
                                                      ---------  ---------

Net decrease in cash and cash equivalents                   258     16,963
Cash and cash equivalents, beginning of period           69,715     52,752
                                                      ---------  ---------
Cash and cash equivalents, end of period              $  69,973  $  69,715
                                                      =========  =========


               Franklin Street Properties Earnings Release
                       Supplementary Schedule D
                    Real Estate Portfolio Summary
                            (Unaudited)
                         December 31, 2006
                                                       As of December 31,
                                                      --------------------
                                                        2006       2005
                                                      ---------  ---------

Commercial real estate*
  Number of properties                                       29         26
  Square feet                                         5,148,490  3,978,264
  Leased percentage                                          89%        92%

Residential real estate
  Number of properties                                        -          1
  Number of apartments                                        -        228
  Square feet                                                 -    231,363
  Leased percentage                                           -         97%

Combined portfolio*
  Number of properties                                       29         26
  Square feet                                         5,148,490  4,209,627
  Leased percentage                                          89%        92%

* Excluding asset held for sale

(Investment & square feet
 in 000's)                            As of December 31, 2006
                         -------------------------------------------------
                         # of                   % of      Square    % of
                       Properties  Investment Portfolio    Feet
Portfolio
State                  ----------  ---------- --------- ---------- --------
-
Texas                          7   $ 218,322     27.2%     1,401     27.2%
Colorado                       4     132,132     16.4%       791     15.4%
Georgia                        2     104,185     13.0%       548     10.6%
Virginia                       2      65,533      8.1%       433      8.4%
Missouri                       2      58,694      7.3%       349      6.8%
Florida                        1      51,641      6.4%       212      4.1%
California                     3      40,617      5.1%       324      6.3%
Indiana                        1      39,305      4.9%       205      4.0%
Illinois                       1      33,972      4.2%       177      3.5%
Michigan                       1      15,152      1.9%       215      4.2%
North Carolina                 2      15,015      1.9%       172      3.3%
Washington                     1      14,518      1.8%       117      2.3%
Massachusetts                  1       9,033      1.1%       105      2.0%
Maryland                       1       5,371      0.7%        99      1.9%
                       ----------  ---------- --------- ---------- --------
-
Total                         29   $ 803,490    100.0%     5,148    100.0%
                       ==========  ========== ========= ==========
=========

* Excluding asset held
 for sale

              Franklin Street Properties Earnings Release
                       Supplementary Schedule E
                             (Unaudited)
                          December 31, 2006

Property by type:                 As of December 31, 2006
(dollars & square  -------------------------------------------------------
  feet in 000's)     # of                    % of       Square    % of
Type               Properties  Investment*  Portfolio     Feet   Portfolio
                   ----------  -----------  ---------    ------  ---------
Office                 28      $   798,119    99.3%       5,049     98.1%
Industrial              1            5,371     0.7%          99      1.9%
                   ----------  -----------  ---------    ------  ---------
Total                  29      $   803,490   100.0%       5,148    100.0%
                   ==========  ===========  =========    ======  =========

* Excluding asset held for sale


      Commercial portfolio lease expirations (1)

                         Total          % of
      Year            Square Feet     Portfolio
      ----            -----------     ---------
      2007                526,269         10.2%
      2008                496,639          9.6%
      2009                632,936         12.3%
      2010                729,969         14.2%
      2011                250,264          4.9%
      2012                634,050         12.3%
      Thereafter        1,878,363         36.5%(2)
                      -----------     --------
                        5,148,490        100.0%
                      ===========     ========

      (1) Percentages are determined based upon square footage of expiring
          commercial leases and exclude assets held for sale.
      (2) Includes 589,000 square feet of current vacancies.


                                        Year ending December 31,
(in thousands)                            2006            2005
                                          ----            ----
Tenant improvements                     $ 13,471        $  1,745
Deferred leasing costs                     5,881           1,560
Building maintenance expenditures          1,308           1,015
Increase to investment in buildings        1,220               -
                                        --------        --------
                                        $ 21,880        $  4,320
                                        ========        ========


                  Franklin Street Properties Earnings Release
                          Supplementary Schedule F
           Definition of Adjusted Funds From Operations ("AFFO"),
                  AFFO plus Gain on Sales ("AFFO+GOS") and
                AFFO plus appreciation realized on assets sold
The Company evaluates the performance of its reportable segments based on several measures including, Adjusted Funds From Operations ("AFFO"), AFFO plus Gain on Sales ("AFFO+GOS") and AFFO plus appreciation realized on assets sold as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders. The Company defines AFFO as: Net Income as computed in accordance with accounting principles generally accepted in the United States of America ("GAAP"); excluding gains or losses on the sale of real estate and non-cash income from Sponsored REITs; plus certain non-cash items included in the computation of Net Income (depreciation and amortization and straight-line rent adjustments); plus distributions received from Sponsored REITs; plus the net proceeds from the sale of land; Depreciation and amortization, gain or loss on the sale of real estate and straight-line rents are an adjustment to AFFO, as these are non-cash items included in Net Income. The Company defines AFFO+GOS as AFFO as defined above, plus gains and losses on sales of properties and provisions for assets held for sale. The Company defines AFFO plus appreciation realized on assets sold as AFFO+GOS as defined above excluding depreciation and amortization taken on properties which have been sold or are held for sale.

AFFO, AFFO+GOS and AFFO plus appreciation realized on assets sold should not be considered as alternatives to Net Income (determined in accordance with GAAP), as indicators of the Company's financial performance, as alternatives to cash flows from operating activities (determined in accordance with GAAP), or as measures of the Company's liquidity, or 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, AFFO, AFFO+GOS and AFFO plus appreciation realized on assets sold should be examined in connection with Net Income and cash flows from operating, investing and financing activities in the consolidated financial statements.

www.franklinstreetproperties.com

Contact Information

  • Contact:
    Donna Brownell
    877-686-9496