ex99-1.htm

Wakefield, MA—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.

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

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

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.

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.”

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.

	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

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.

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.

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.

	For the Three Months Ended December 31,					For the Year Ended 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

(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

	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 for) 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 for 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

(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	%

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	%

(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

						% of
	Tenant	Sq Ft		SIC Code		Portfolio
1	Capital One Services, Inc. (1)		297,789		61		6.0	%
2	Citgo Petroleum Corporation		248,399		29		5.0	%
3	Tektronix Texas, LLC		241,372		38		4.8	%
4	Burger King Corporation		212,619		58		4.3	%
5	New Era of Networks, Inc. (Sybase)		199,077		42		4.0	%
6	Citgroup Credit Services, Inc.		176,848		61		3.5	%
7	RGA Reinsurance Company		171,120		63		3.4	%
8	International Business Machines Corp.		138,033		73		2.8	%
9	CACI Technologies, Inc.		132,896		73		2.7	%
10	Maines Paper and Food Service, Inc.		98,745		42		2.0	%
11	The Staubach Company		92,827		87		1.9	%
12	AMDOCS, Inc.		91,928		73		1.8	%
13	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	%

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.


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

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	%

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

					% 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	%

Property by type:
(dollars & square feet in 000's)	As of December 31, 2007
	# 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	%