8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 3, 2009

Franklin Street Properties Corp.

(Exact name of registrant as specified in its charter)

Maryland	001-32470	04-3578653
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

401 Edgewater Place, Suite 200, Wakefield, Massachusetts	01880-6210
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (781) 557-1300

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act  (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act  (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On November 3, 2009, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three months and nine months ended September 30, 2009.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  The press release references certain supplemental operating and financial data that is now available on the Registrant’s website.  A copy of the supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.

The information in this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(d)           Exhibits

See Exhibit Index attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FRANKLIN STREET PROPERTIES CORP.
Date:  November 3, 2009	By:	/s/ George J. Carter
		George J. Carter President and Chief Executive Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release issued by Franklin Street Properties Corp. on November 3, 2009.
99.2	Supplemental Operating and Financial Data for the three and nine months ended September 30, 2009.

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EX-99.1

Exhibit 99.1

PRESS RELEASE	Franklin Street Properties Corp.
401 Edgewater Place · Suite 200 · Wakefield, Massachusetts  01880-6210 · (781) 557-1300 ·  www.franklinstreetproperties.com
Contact: John Demeritt   877-686-9496	FOR IMMEDIATE RELEASE

FRANKLIN STREET PROPERTIES CORP. ANNOUNCES

THIRD QUARTER 2009 RESULTS

Wakefield, MA—November 3, 2009—Franklin Street Properties Corp. (the “Company” or “FSP”) (NYSE Amex:  FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $17.5 million or $0.25 per share for the third quarter ended September 30, 2009, which was sequentially flat compared to the second quarter of 2009. The Company also announced Net Income of $6.9 million and Earnings Per Share (EPS) of $0.10 for the third quarter ended September 30, 2009.

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 September 30,							Nine Months Ended September 30,
(in 000's except per share data)	2009		2008		Increase (Decrease)			2009		2008		Increase (Decrease)
Net Income	$	6,941	$	7,419	$	(478	)	$	19,614	$	25,340	$	(5,726	)
FFO	$	17,537	$	17,085	$	452		$	52,284	$	53,005	$	(721	)
GOS		-		-		-			-		-		-
FFO+GOS	$	17,537	$	17,085	$	452		$	52,284	$	53,005	$	(721	)
Per Share Data:
EPS	$	0.10	$	0.11	$	(0.01	)	$	0.28	$	0.36	$	(0.08	)
FFO	$	0.25	$	0.24	$	0.01		$	0.74	$	0.75	$	(0.01	)
GOS	$	-	$	-	$	-		$	-	$	-	$	-
FFO+GOS	$	0.25	$	0.24	$	0.01		$	0.74	$	0.75	$	(0.01	)
Weighted average
shares (diluted)		71,281		70,481		800			70,750		70,481		269

Comparing results for the third quarter of 2009 to 2008, Net Income and EPS decreased $0.5 million or $0.01 per share; and FFO and FFO+GOS each increased $0.5 million or $0.01 per share. The increase in FFO was primarily from an increase in real estate FFO of $0.8 million and a decrease in investment banking FFO of $0.4 million. The decrease from investment banking was caused by lower sales of securities by our investment bank, which were $4.8 million in the third quarter of 2008 as compared to no sales of securities by our investment bank for the third quarter of 2009. Revenue from our investment bank is primarily based on the value of securities sales. The increase in real estate FFO was primarily from contributions from two acquisitions made in December 2008 and two in June 2009. There was no GOS in either the third quarter of 2009 or 2008.

Comparing results for the first nine months of 2009 to 2008, Net Income and EPS decreased $5.7 million or $0.08 per share; and FFO and FFO+GOS each decreased $0.7 million or $0.01 per share. The decrease in FFO was primarily from a decrease in investment banking FFO of $4.4 million and was partially offset by an increase in real estate FFO of $3.7 million. The decrease from investment banking was caused by lower sales of securities by our investment bank, which decreased $56.8 million to $550,000 for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008. Revenue from our investment bank is primarily based on the value of securities sales. The increase in real estate FFO was primarily from contributions from two acquisitions made in December 2008 and two in June 2009. There was no GOS in either the first nine months of 2009 or 2008.

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

“For the third quarter of 2009, FSP’s profits as represented by FFO + GOS totaled approximately $17.5 million or $0.25 per share, sequentially flat compared to the second quarter of 2009. Dividend distributions declared for the third quarter of 2009, which are payable on November 20, 2009, will be approximately $15.1 million or $0.19 per share.

Significant portions of our real estate investment business, specifically property sales and investment banking, are transactional. Similar to both the first and second quarters of 2009, neither of these business segments made a positive contribution to third quarter results. Substantially all profits for the quarter were produced by our ongoing/recurring real estate operations.

Although FSP has certain properties in its portfolio that we would contemplate selling, it is unlikely that near-term market conditions will favor further dispositions. Improvement in both liquidity and pricing is needed to help revitalize the property sales environment, and likely will be linked to a meaningful resumption of an active and stable mortgage-lending market for commercial real estate. However, when we believe that the right part of the real estate cycle has returned, you can expect to see FSP again complete property dispositions, thereby closing the loop on our total return strategy.

During the third quarter of 2009, our investment banking group completed no investor capital closings and consequently operated at a loss for the quarter which totaled approximately $0.6 million, or about $.01 per share. Significantly, during the last two weeks of the third quarter, our investment banking group began its first new private placement real estate offering of 2009. Opportunistic property acquisition prospects for this business segment are now beginning to become more visible. In addition, a growing interest from our established investor clients to move some portion of their capital from the sidelines to specific property investment situations is occurring. Early analysis of this new private placement real estate offering would suggest a moderate recommencement of this transactional business segment. The potential for meaningful profit contribution in 2010 and beyond from our investment banking group looks promising but remains subject to broader capital market economic activity.

While profits continued to suffer in the third quarter of 2009 from our transactional businesses, our real estate portfolio of 32 properties maintained an overall 90% occupancy and provided steady rental income. FFO for the third quarter of 2009 was $0.25 per share, all of which came from ongoing real estate operations net of the cost of maintaining our investment banking capability.

On September 30, 2009, FSP purchased an office property located in Falls Church, Virginia for a price of $73,000,000. The property was our third direct portfolio acquisition this year. In total the three properties acquired to date in 2009 have added approximately 517,109 square feet for a total investment of approximately $124,600,000. Property acquisition efforts are active, and we would expect to acquire additional property in 2009.

2

It is FSP’s objective to grow our property portfolio and rental income business during this period of liquidity-constrained capital markets. In addition to using our balance sheet strength to help finance and fund new acquisitions, raising equity by issuing additional shares of our common stock for sale to the broader public markets will also be considered as a part of our capital funding/property acquisition/growth strategy. The timing and execution of such capital events will be subject to, among other things, the size and amount of our specific property acquisition opportunities and the acceptance of our shares by the public capital markets. An initial execution of this component of our growth funding plan was completed on September 23, 2009 with our first-ever underwritten public offering of 9.2 million shares of our common stock at a price to the public of $13 per share. The offering resulted in net proceeds to the Company of approximately $114.7 million net of underwriter’s discounts and offering costs. A portion of those proceeds was used to complete the Falls Church, Virginia, property acquisition on September 30. We continue to be very optimistic about FSP’s position in the current commercial real estate investment market and the opportunities that are presenting themselves to acquire commercial properties at better pricing and value metrics than we have seen in the last several years.”

Dividend Announcement

On October 16, 2009, the Board of Directors of the Company declared a cash distribution of $0.19 per share of common stock payable on November 20, 2009 to stockholders of record on October 30, 2009.

Real Estate Update

On September 30, 2009 we acquired an office property in Falls Church, Virginia for approximately $73 million. Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 32 properties and for three non-consolidated REITs that we have interests in as of September 30, 2009. 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.

3

A reconciliation of Net Income to FFO and FFO+GOS is shown below and definitions of FFO and FFO+GOS are provided on Supplementary Schedule H. We believe FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance and is generally calculated in a similar manner to our calculation. We also believe that FFO+GOS is an important measure as it considers investment performance.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2009			2008			2009			2008
Net income	$	6,941		$	7,419		$	19,614		$	25,340
(Gain) Loss on sale of properties		-			-			-			-
GAAP (income) loss from non-consolidated REITs		(475	)		(679	)		(1,710	)		(2,167	)
Distributions from non-consolidated REITs		1,119			1,561			4,257			3,838
Acquisition costs of new properties		391			-			639			-
Depreciation of real estate & intangible amortization		9,561			8,784			29,484			25,994
Funds From Operations (FFO)		17,537			17,085			52,284			53,005
Plus gains on sales of properties		-			-			-			-
FFO+GOS	$	17,537		$	17,085		$	52,284		$	53,005
Per Share Data
EPS	$	0.10		$	0.11		$	0.28		$	0.36
FFO	$	0.25		$	0.24		$	0.74		$	0.75
GOS	$	-		$	-		$	-		$	-
FFO+GOS	$	0.25		$	0.24		$	0.74		$	0.75
Weighted average shares (basic and diluted)		71,281			70,481			70,750			70,481

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 November 4, 2009 at 10:00 a.m. (ET) to discuss the third quarter 2009 results. The toll free number is 1-866-700-7101, passcode 33138194. Internationally, the call may be accessed by dialing 1-617-213-8837, passcode 33138194. 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.

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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, 2008), 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, 2008, 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
Largest 20 Tenants – FSP Owned Portfolio	G
Definition of Funds From Operations (FFO) and  FFO+GOS	H

5

Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Income Statements

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands, except per share amounts)	2009			2008			2009			2008
Revenue:
Rental	$	31,702		$	27,927		$	90,774		$	82,283
Related party revenue:
Syndication fees		-			304			39			3,766
Transaction fees		1			300			543			3,606
Management fees and interest income from loans		370			380			1,232			1,364
Other		19			13			55			52
Total revenue		32,092			28,924			92,643			91,071
Expenses:
Real estate operating expenses		7,752			7,159			22,176			20,973
Real estate taxes and insurance		5,364			4,590			14,879			13,375
Depreciation and amortization		8,801			7,666			26,940			22,616
Selling, general and administrative		2,243			1,927			6,378			6,557
Commissions		8			208			178			2,020
Interest		1,744			1,108			4,920			3,351
Total expenses		25,912			22,658			75,471			68,892
Income before interest income, equity in earnings of
non-consolidated REITs and taxes		6,180			6,266			17,172			22,179
Interest income		16			177			88			657
Equity in earnings of non-consolidated REITs		475			679			1,710			2,167
Income before taxes		6,671			7,122			18,970			25,003
Income tax benefit		(270	)		(297	)		(644	)		(337	)
Net income	$	6,941		$	7,419		$	19,614		$	25,340
Weighted average number of shares outstanding,
basic and diluted		71,281			70,481			70,750			70,481
Net income per share, basic and diluted	$	0.10		$	0.11		$	0.28		$	0.36

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and par value amounts)	September 30,			December 31,
	2009			2008
Assets:
Real estate assets, net	$	926,555		$	844,058
Acquired real estate leases, less accumulated amortization
of $35,106 and $29,200, respectively		48,003			28,518
Investment in non-consolidated REITs		93,936			83,046
Assets held for syndication, net		-			13,254
Cash and cash equivalents		26,385			29,244
Restricted cash		331			336
Tenant rent receivables, less allowance for doubtful accounts
of $620 and $509, respectively		1,400			1,329
Straight-line rent receivable, less allowance for doubtful accounts
of $100 and $261, respectively		9,724			8,816
Prepaid expenses		3,430			2,206
Related party mortgage loan receivable		23,264			1,125
Other assets		1,452			2,406
Office computers and furniture, net of accumulated depreciation
of $1,194 and $1,108, respectively		408			281
Deferred leasing commissions, net of accumulated amortization
of $4,820, and $3,416, respectively		10,887			10,814
Total assets	$	1,145,775		$	1,025,433
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	91,008		$	67,468
Term loan payable		75,000			75,000
Accounts payable and accrued expenses		25,351			22,297
Accrued compensation		750			1,654
Tenant security deposits		1,757			1,874
Other liabilities: derivative termination value		2,269			3,099
Acquired unfavorable real estate leases, less accumulated amortization
of $2,440, and $1,779, respectively		5,661			5,044
Total liabilities		201,796			176,436
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,     79,680,705 and 70,480,705 shares issued and outstanding, respectively		8			7
Additional paid-in capital		1,003,729			889,019
Accumulated other comprehensive loss		(2,269	)		(3,099	)
Accumulated distributions in excess of accumulated earnings		(57,489	)		(36,930	)
Total stockholders’ equity		943,979			848,997
Total liabilities and stockholders’ equity	$	1,145,775		$	1,025,433

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the Nine Months Ended September 30,
(in thousands)	2009			2008
Cash flows from operating activities:
Net income	$	19,614		$	25,340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		27,141			22,649
Amortization of above market lease		2,544			3,376
Equity in earnings of non-consolidated REITs		(1,710	)		(2,167	)
Distributions from non-consolidated REITs		4,257			3,838
Increase in bad debt reserve		111			79
Changes in operating assets and liabilities:
Restricted cash		5			-
Tenant rent receivables, net		(182	)		219
Straight-line rents, net		(849	)		(854	)
Prepaid expenses and other assets, net		(472	)		(1,474	)
Accounts payable, accrued expenses		4,294			3,863
Accrued compensation		(904	)		88
Tenant security deposits		(117	)		(51	)
Payment of deferred leasing commissions		(2,202	)		(2,434	)
Net cash provided by operating activities		51,530			52,472
Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases		(130,819	)		(39,282	)
Investment in non-consolidated REITs		(13,200	)		(10	)
Investment in related party mortgage loan receivable		(22,139	)		(1,125	)
Investment in assets held for syndication		13,017			12,235
Net cash used in investing activities		(153,141	)		(28,182	)
Cash flows from financing activities:
Distributions to stockholders		(40,173	)		(57,089	)
Equity offering		115,385			-
Borrowings under bank note payable		23,540			20,368
Deferred financing costs		-			(30	)
Net cash provided by (used in) financing activities		98,752			(36,751	)
Net decrease in cash and cash equivalents		(2,859	)		(12,461	)
Cash and cash equivalents, beginning of period		29,244			46,988
Cash and cash equivalents, end of period	$	26,385		$	34,527

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)

Commercial portfolio lease expirations (1)
	Total	% of
Year	Square Feet	Portfolio
2009	488,456	8.2%
2010	761,351	12.8%
2011	384,237	6.5%
2012	647,178	10.9%
2013	349,015	5.9%
2014	584,389	9.8%
Thereafter (2)	2,719,998	45.9%
	5,934,624	100.0%

(1) Percentages are determined based upon square footage of expiring commercial leases.

(2) Includes 468,000 square feet of current vacancies.

(In Thousands)	As of September 30, 2009
	# of		% of	Square	% of
State	Properties	Investment	Portfolio	Feet	Portfolio
Texas	7	$  229,853	24.8%	1,489	25.1%
Virginia	5	161,198	17.4%	933	15.7%
Colorado	4	128,819	13.9%	792	13.3%
Georgia	1	76,152	8.2%	387	6.5%
Missouri	3	73,009	7.9%	477	8.0%
Maryland	2	61,888	6.7%	424	7.1%
Florida	1	48,389	5.2%	213	3.6%
Indiana	1	36,725	4.0%	205	3.5%
Illinois	1	30,424	3.3%	177	3.0%
California	2	21,520	2.3%	182	3.1%
Michigan	1	14,884	1.6%	215	3.6%
Washington	1	14,864	1.6%	117	2.0%
Minnesota	1	14,657	1.6%	153	2.6%
North Carolina	2	14,172	1.5%	172	2.9%
	32	$  926,555	100.0%	5,935	100.0%

Property by type:
(dollars & square feet	As of September 30, 2009
in 000's)	# of		% of	Square	% of
Type	Properties	Investment	Portfolio	Feet	Portfolio
Office	31	$  921,499	99.5%	5,836	98.3%
Industrial	1	5,056	0.5%	99	1.7%
	32	$  926,555	100.0%	5,935	100.0%

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Capital Expenditures
Owned Portfolio	Nine Months Ended
(in thousands)	30-Sep-09		30-Sep-08
Tenant improvements	$	3,217	$	4,564
Deferred leasing costs		2,202		2,434
Building improvements		846		1,310
	$	6,265	$	8,308

Square foot & leased percentages		September 30,	December 31,
		2009	2008
Owned portfolio of commercial real estate
	Number of properties	32	29
	Square feet	5,934,624	5,417,515
	Leased percentage	90%	93%
Investments in non-consolidated commercial real estate
	Number of properties	3	2
	Square feet	1,995,041	1,461,224
	Leased percentage	78%	80%
Single Asset REITs (SARs) managed
	Number of properties	9	10
	Square feet*	2,155,201	2,684,561
	Leased percentage*	90%	92%
Total owned, investments & managed properties
	Number of properties*	44	41
	Square feet*	10,084,866	9,563,300
	Leased percentage*	88%	93%
*Excludes a property to be constructed with approximately 285,000 square feet.

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

			Square	% Leased
Single Asset REIT name	City	State	Feet	30-Sep-09
FSP 303 East Wacker Drive Corp.	Chicago	IL	844,081	75.28%
FSP Grand Boulevard Corp.	Kansas City	MO	532,453	88.64%
FSP Phoenix Tower Corp.	Houston	TX	618,507	73.95%
			1,995,041	78.43%

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F: Prior 4 Quarter Information

(Unaudited)

(in 000's)
		Q2			Q1			Q4			Q3
Revenue:		2009			2009			2008			2008
Rental	$	29,254		$	29,818		$	28,915		$	27,927
Related party revenue:
Syndication fees		29			10			-			304
Transaction fees		514			28			35			300
Management fees and
interest income from loans		317			545			375			380
Other		18			18			20			13
Total revenue		30,132			30,419			29,345			28,924
Expenses:
Real estate operating expenses		7,144			7,280			8,026			7,159
Real estate taxes and insurance		4,686			4,829			4,366			4,590
Depreciation and amortization		10,225			7,914			7,744			7,666
Selling, general and administrative		2,127			2,008			1,711			1,927
Commissions		40			130			131			208
Interest		1,599			1,577			1,570			1,108
Total expenses		25,821			23,738			23,548			22,658
Income before interest income, equity
in earnings in non-consolidated REITs		4,311			6,681			5,797			6,266
Interest income		36			36			89			177
Equity in earnings in non-consolidated REITs		443			792			580			679
Income before taxes on income		4,790			7,509			6,466			7,123
Taxes on income		(75	)		(299	)		(153	)		(297	)
Income from continuing operations		4,865			7,808			6,619			7,419
Income from discontinued operations		-			-			-			-
Income before gain on sale of properties		4,865			7,808			6,619			7,419
Gain on sale of assets		-			-			-			-
Net income	$	4,865		$	7,808		$	6,619		$	7,419
FFO and  FFO+GOS calculations:
Net income	$	4,865		$	7,808		$	6,619		$	7,419
(Gain) Loss on sale of assets		-			-			-			-
GAAP income from non-consolidated REITs		(443	)		(792	)		(580	)		(679	)
Distributions from non-consolidated REITs		1,523			1,615			1,510			1,561
Acquisition costs		248			-			-			-
Depreciation & amortization		11,216			8,707			8,650			8,784
Funds From Operations (FFO)		17,409			17,338			16,199			17,085
Plus gains on sales of assets		-			-			-			-
FFO+GOS	$	17,409		$	17,338		$	16,199		$	17,085

11

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Largest 20 Tenants – FSP Owned Portfolio

As of September 30, 2009

(Unaudited & Estimated)

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

				% of
	Tenant	Sq Ft	SIC Code	Portfolio
1	Capital One Services, Inc. (1)	297,789	61	5.0%
2	Noblis, Inc.	252,613	54	4.2%
3	Citgo Petroleum Corporation	248,399	29	4.2%
4	Tektronix Texas, LLC	241,372	73	4.0%
5	Burger King Corporation	212,619	58	3.6%
6	New Era of Networks, Inc. (Sybase)	199,077	73	3.4%
7	RGA Reinsurance Company	185,501	63	3.1%
8	Citigroup Credit Services, Inc (2)	176,848	61	3.0%
9	CH Robinson Worldwide, Inc.	153,028	47	2.6%
10	Geisecke & Devrient	135,888	73	2.3%
11	Murphy Exploration & Production Company	133,786	13	2.2%
12	CACI Technologies, Inc.	132,896	73	2.2%
13	Monsanto Company	127,778	28	2.2%
14	Northrop Grumman Information Technology, Inc.	111,469	73	1.9%
15	Maines Paper & Food Service, Inc.	98,745	51	1.7%
16	Amdocs, Inc.	91,928	73	1.6%
17	County of Santa Clara	90,467	81	1.5%
18	Ober Kaler Grimes & Shriver	88,736	91	1.5%
19	Technip-Coflexip USA Holdings, Inc	86,059	13	1.4%
20	Vail Holding Corp d/b/a Vail Resorts	83,620	79	1.4%
	Total	3,148,618		53.0%

(1) The lease with Capital One Services, Inc. expired on October 31, 2009.

(2) The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.

12

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Definition of Funds From Operations (“FFO”),

and FFO plus Gains on Sales (“FFO+GOS”)

The Company evaluates the performance of its reportable segments based on several measures including, Funds From Operations (“FFO”) and FFO plus Gains on Sales (“FFO+GOS”) as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders.  The Company defines FFO as net income (computed in accordance with generally accepted accounting principles, 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 condensed consolidated financial statements.

13

EX-99.2

Exhibit 99.2

Supplemental Operating and Financial Data

September 30, 2009

 

Third Quarter 2009

Franklin Street Properties Corp.

401 Edgewater Place

Suite 200

Wakefield, MA 01880

781-557-1300

www.franklinstreetproperties.com

Table of Contents

	Page
Company Overview	3-6
Key Financial Data
Financial Highlights	6
Management’s Key Operating Measures	7
Income Statements	8
EPS, FFO, GOS and FFO+GOS	9
Balance Sheets	10
Cash Flow Statements	11
Segment Information	12-13
Property Net Operating Income (NOI): Cash and GAAP Basis	14
Capital Analysis	15
Portfolio Overview
Property by Form of FSP Participation	16
Regional Analysis, Map	17
Owned Property List	18
Properties with annualized rent per square foot	19
Capital Expenditures	20
Tenant Analysis
20 Largest tenants with annualized rent and remaining term	21
20 Largest Tenants, Industry Profile	22
Lease Expirations by Square Feet	23
Lease Expirations with annualized rent per square foot	24
Transactional Drivers
Capital Recycling: Acquisitions and Dispositions	25
Investment Banking Performance	26
FFO and FFO+GOS Reconciliations	27
FFO and FFO+GOS Definitions	28
FAD Reconciliation and Definition	29
EBITDA Reconciliation and Definition	30
NOI Reconciliation	31

All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include general economic conditions, local real estate conditions, the performance of properties that FSP has acquired or may acquire, the timely lease-up of properties and other risks, detailed from time to time in FSP’s SEC reports. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Franklin Street Properties Corp.  September 30, 2009

2

Company Overview

Overview

Franklin Street Properties Corp. (FSP) (NYSE Amex: FSP) is an investment firm focused on achieving current income and long-term growth through investments in commercial properties. FSP’s portfolio of real estate assets consists primarily of suburban office buildings and includes select investments in central business district (CBD) properties. FSP’s real estate operations include property acquisitions and dispositions, interim acquisition and short-term financing, leasing, development and asset management. FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and registered broker/dealer.

Our Business

FSP operates in two business segments and has two principal sources of revenue; real estate operations and investment banking/investment services. Real estate operations include rental income from real estate leasing, interest income from loans made for interim acquisition or other purposes, and fee income from asset management. Investment banking/investment services generate brokerage commissions, loan origination fees, development services and other fees related to the organization of single-purpose entities that own real estate and the private placement of equity in those entities.

Strategy

FSP’s investment strategy is to make selective acquisitions based on market and/or property specific criteria, actively manage the property to maximize its value and dispose of the property when the ideal time or situation arises. Proceeds from property sales are redeployed into other specific real estate assets, used for other corporate purposes and/or paid out to shareholders as special dividends. Unlike many real estate investment companies, which have utilized significant leverage in an attempt to enhance their real estate portfolio’s returns, FSP has used very moderate leverage. FSP’s historical growth has been achieved without the use of permanent mortgage debt on any of our properties. This model has significantly reduced FSP’s risk profile by reducing foreclosure, financing and refinancing risk. The Company’s strategy is to employ modest leverage to accelerate its growth and capitalize on market conditions and opportunities as they arise. In addition, FSP believes that it can lower investment risk while enhancing current income and long-term appreciation potential by owning properties in diversified geographic locations that have sound long-term economic growth potential.

Snapshot
(as of September 30, 2009)
Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
Total Properties	32
Total Square Feet	5.9 Million
Common Shares Outstanding	79,680,705
Quarterly Dividend	$0.19
Dividend Yield	5.80%
Total Market Capitalization	$1,044 Million
Insider Holdings	13.0%

Franklin Street Properties Corp.  September 30, 2009

3

Company Overview

Structure of the Company

FSP has elected to be taxed as a Real Estate Investment Trust (REIT) under the Internal Revenue Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income to our shareholders. Management intends to continue to adhere to these requirements and to maintain our REIT status. As a REIT we are entitled to a tax deduction for some or all of the dividends we pay to shareholders. Accordingly, we generally will not be subject to federal income taxes as long as we distribute an amount equal to or in excess of our taxable income to shareholders.

Dividend Philosophy

FSP has been able to offer shareholders high-quality, risk-adjusted returns. The ongoing and recurring rental revenue stream provides stability to our regular quarterly dividend. In addition, the possibility exists for the payment of annual special dividends resulting from the sale of properties in the portfolio and the income from FSP’s investment banking business.

Board of Directors and Management
George J. Carter	Dennis J. McGillicuddy	Scott H. Carter
President, Chief Executive Officer	Director	Executive Vice President, General
Chairman of the Board	Member, Audit Committee	Counsel and Assistant Secretary
	Member, Compensation Committee
Barbara J. Fournier		John G. Demeritt
Executive Vice President,  Chief Operating Officer,	Georgia Murray	Executive Vice President and
Treasurer, Secretary and Director	Director	Chief Financial Officer
	Chair, Compensation Committee
Janet Notopoulos	Member, Audit Committee	William W. Gribbell
Executive Vice President and Director		Executive Vice President
	Barry Silverstein
John N. Burke	Director	R. Scott MacPhee
Director	Member, Audit Committee	Executive Vice President
Chair, Audit Committee	Member, Compensation Committee
Member, Compensation Committee

Franklin Street Properties Corp.  September 30, 2009

4

Company Overview

Corporate Headquarters	Trading Symbol	Inquiries
401 Edgewater Place, Suite 200	NYSE Amex	Inquires should be directed to:
Wakefield, MA 01880	Symbol: FSP	John Demeritt, CFO
(t) 781-557-1300		877-686-9496 or InvestorRelations@
(f) 781-246-2807		franklinstreetproperties.com
www.franklinstreetproperties.com

Common Stock Data (NYSE Amex: FSP)
	For the Three Months Ended
	31-Mar-09	30-Jun-09	30-Sep-09	31-Mar-08	30-Jun-08	30-Sep-08	31-Dec-08
High Price	14.88	14.84	15.20	15.78	16.19	14.80	15.00
Low Price	9.57	11.43	12.00	11.40	12.33	11.05	8.13
Closing Price, at the end of the quarter	12.30	13.25	13.10	14.32	12.64	13.00	14.75
Dividends paid per share – quarterly	0.19	0.19	0.19	0.31	0.31	0.19	0.19
Closing dividend yield – annualized	6.2%	5.7%	5.8%	8.7%	9.8%	5.8%	5.2%
Common shares outstanding (millions)	70.48	70.48	79.68	70.48	70.48	70.48	70.48

Timing

Quarterly results are expected to be announced according to the following schedule:

First Quarter:	Late April	Third Quarter:	Early November
Second Quarter:	Early August	Fourth Quarter:	Late February

Franklin Street Properties Corp.  September 30, 2009

5

Financial Highlights

(in thousands, except per share data)

																					For the Year
	For the Three Months Ended																				Ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08
Income Items:
Revenue:
Rental	$	29,818		$	29,254		$	31,702		$	26,656		$	27,700	$	27,927		$	28,915		$	111,198
Related party revenue		583			860			371			934			6,818		984			410			9,146
Other		18			18			19			20			19		13			20			72
Total revenue		30,419			30,132			32,092			27,610			34,537		28,924			29,345			120,416
Total expenses		23,738			25,821			25,912			21,695			24,538		22,658			23,548			92,439
Income before interest income, equity in earnings (losses) in non-consolidated REITs and taxes		6,681			4,311			6,180			5,915			9,999		6,266			5,797			27,977
Interest income		36			36			16			303			176		177			89			745
Equity in earnings in non-consolidated REITs		792			443			475			793			694		679			580			2,746
Income before taxes		7,509			4,790			6,671			7,011			10,869		7,122			6,466			31,468
Income tax expense (benefit)		(299	)		(75	)		(270	)		(375	)		335		(297	)		(153	)		(490	)
Income from continuing operations		7,808			4,865			6,941			7,386			10,534		7,419			6,619			31,958
Income from discontinued operations		-			-			-			-			-		-			-			-
Gain on sale of assets		-			-			-			-			-		-			-			-
Net income	$	7,808		$	4,865		$	6,941		$	7,386		$	10,534	$	7,419		$	6,619		$	31,958

FFO+GOS*:
FFO	$	17,338	$	17,409	$	17,537	$	15,637	$	20,283	$	17,085	$	16,199	$	69,204
GOS		-		-		-		-		-		-		-		-
FFO+GOS	$	17,338	$	17,409	$	17,537	$	15,637	$	20,283	$	17,085	$	16,199	$	69,204
Per Share Data:
EPS	$	0.11	$	0.07	$	0.10	$	0.10	$	0.15	$	0.11	$	0.09	$	0.45
FFO		0.25		0.25		0.25		0.22		0.29		0.24		0.23		0.98
GOS		-		-		-		-		-		-		-		-
FFO+GOS		0.25		0.25		0.25		0.22		0.29		0.24		0.23		0.98
Weighted Average Shares (diluted)		70,481		70,481		71,281		70,481		70,481		70,481		70,481		70,481
Balance Sheet Items:
Real estate, net	$	839,826	$	869,557	$	926,555	$	787,398	$	815,710	$	812,438	$	844,058	$	844,058
Other assets, net		178,682		195,939		219,220		196,664		186,647		184,622		181,375		181,375
Total assets, net		1,018,508		1,065,496		1,145,775		984,062		1,002,357		997,060		1,025,433		1,025,433
Total liabilities, net		175,075		229,903		201,796		107,907		137,517		138,192		176,346		176,346
Shareholders' equity		843,433		835,593		943,979		876,155		864,840		858,868		848,997		848,997

* See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

6

Management’s Key Operating Measures

* See page 27 for a reconciliation of Net Income to FFO and FFO+GOS (Total Profits) and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

7

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)

																					For the
	For the Three Months Ended																				Year Ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08
Revenue:
Rental	$	29,818		$	29,254		$	31,702		$	26,656		$	27,700	$	27,927		$	28,915		$	111,198
Related party revenue:
Syndication fees		10			29			-			205			3,257		304			-			3,766
Transaction fees		28			514			1			168			3,138		300			35			3,641
Management fees and interest income from loans		545			317			370			561			423		380			375			1,739
Other		18			18			19			20			19		13			20			72
Total revenue		30,419			30,132			32,092			27,610			34,537		28,924			29,345			120,416
Expenses:
Real estate operating expenses		7,280			7,144			7,752			6,698			7,116		7,159			8,026			28,999
Real estate taxes and insurance		4,829			4,686			5,364			4,279			4,505		4,590			4,366			17,740
Depreciation and amortization		7,914			10,225			8,801			7,359			7,591		7,666			7,744			30,360
Selling, general and administrative		2,008			2,127			2,243			2,009			2,621		1,927			1,711			8,268
Commissions		130			40			8			158			1,654		208			131			2,151
Interest		1,577			1,599			1,744			1,192			1,051		1,108			1,570			4,921
Total expenses		23,738			25,821			25,912			21,695			24,538		22,658			23,548			92,439
Income before interest income, equity in earnings (losses) of non-consolidated REITs and taxes		6,681			4,311			6,180			5,915			9,999		6,266			5,797			27,977
Interest income		36			36			16			303			176		177			89			745
Equity in earnings (losses) of non-consolidated REITs		792			443			475			793			694		679			580			2,746
		7,509			4,790			6,671			7,011			10,869		7,122			6,466			31,468
Income tax expense (benefit)		(299	)		(75	)		(270	)		(375	)		335		(297	)		(153	)		(490	)
Net income	$	7,808		$	4,865		$	6,941		$	7,386		$	10,534	$	7,419		$	6,619		$	31,958
Weighted average number of shares outstanding, basic and diluted		70,481			70,481			71,281			70,481			70,481		70,481			70,481			70,481
Net income per share, basic and diluted	$	0.11		$	0.07		$	0.10		$	0.10		$	0.15	$	0.11		$	0.09		$	0.45

Franklin Street Properties Corp.  September 30, 2009

8

EPS, FFO, GOS and FFO+GOS*

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

9

Condensed Consolidated Balance Sheets

(in thousands)

	March 31,			June 30,			September 30,			March 31,			June 30,			September 30,			December 31,
	2009			2009			2009			2008			2008			2008			2008
Assets:
Real estate assets:
Land	$	107,153		$	114,677		$	126,695		$	99,140		$	100,440		$	100,440		$	107,153
Buildings and improvements		812,470			840,605			891,918			745,488			778,107			780,276			810,732
Fixtures and equipment		299			310			310			219			219			301			299
		919,922			955,592			1,018,923			844,847			878,766			881,017			918,184
Less accumulated depreciation		80,096			86,035			92,368			57,449			63,056			68,579			74,126
Real estate assets, net		839,826			869,557			926,555			787,398			815,710			812,438			844,058
Acquired real estate leases, net		26,042			38,996			48,003			30,826			30,905			28,024			28,518
Investment in non-consolidated REITs		82,388			94,579			93,936			86,235			84,609			83,896			83,046
Assets held for syndication, net		13,004			-			-			24,593			14,039			13,335			13,254
Cash and cash equivalents		27,650			24,542			26,385			32,227			34,386			34,527			29,244
Restricted cash		336			335			331			336			336			336			336
Tenant rent receivables, net		1,084			720			1,400			1,694			989			1,174			1,329
Straight-line rent receivable, net		9,190			9,219			9,724			7,638			7,894			8,255			8,816
Prepaid expenses		2,253			2,267			3,430			1,654			1,061			2,922			2,206
Related party mortgage loan receivable		4,725			12,115			23,264			1,000			1,000			1,125			1,125
Other assets		1,517			2,271			1,860			880			919			663			2,687
Deferred leasing commissions, net		10,493			10,895			10,887			9,581			10,509			10,365			10,814
Total assets	$	1,018,508		$	1,065,496		$	1,145,775		$	984,062		$	1,002,357		$	997,060		$	1,025,433
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	72,468		$	124,038		$	91,008		$	84,750		$	109,995		$	105,118		$	67,468
Term loan payable		75,000			75,000			75,000			-			-			-			75,000
Accounts payable and accrued expenses		17,687			21,252			25,351			16,633			18,984			24,945			22,297
Accrued compensation		250			500			750			415			1,845			1,652			1,654
Tenant security deposits		1,795			1,765			1,757			1,923			1,810			1,823			1,874
Other liabilities: derivative termination value		3,080			2,394			2,269			-			-			-			3,099
Acquired unfavorable real estate leases, net		4,795			4,954			5,661			4,186			4,883			4,654			5,044
Total liabilities		175,075			229,903			201,796			107,907			137,517			138,192			176,436
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		-			-			-			-			-			-			-
Common stock		7			7			8			7			7			7			7
Additional paid-in capital		889,019			889,019			1,003,729			889,019			889,019			889,019			889,019
Accumulated other comprehensive loss		(3,080	)		(2,394	)		(2,269	)		-			-			-			(3,099	)
Accumulated distributions in excess of accumulated earnings		(42,513	)		(51,039	)		(57,489	)		(12,871	)		(24,186	)		(30,158	)		(36,930	)
Total stockholders’ equity		843,433			835,593			943,979			876,155			864,840			858,868			848,997
Total liabilities and stockholders’ equity	$	1,018,508		$	1,065,496		$	1,145,775		$	984,062		$	1,002,357		$	997,060		$	1,025,433

Franklin Street Properties Corp.  September 30, 2009

10

Condensed Consolidated Statements of Cash Flows

(in thousands)

	Nine Months ended September 30						Twelve Months ended December 31
	2009			2008			2008			2007
Cash flows from operating activities:
Net income	$	19,614		$	25,340		$	31,959		$	61,085
Adjustments to reconcile net income to net cash         provided by  operating activities:
Gains on assets sold		-			-			-			(23,789	)
Depreciation and amortization expense		27,141			22,649			30,444			30,563
Amortization of above market lease		2,544			3,376			4,283			4,948
Equity in earnings (losses) from non-consolidated REITs		(1,710	)		(2,167	)		(2,747	)		472
Distributions from non-consolidated REITs		4,257			3,838			5,348			1,806
Increase in bad debt reserve		111			79			79			(3	)
Changes in operating assets and liabilities:
Restricted cash		5			-			-			425
Tenant rent receivables, net		(182	)		219			64			971
Straight-line rents, net		(849	)		(854	)		(1,406	)		(3,359	)
Prepaid expenses and other assets, net		(472	)		(1,474	)		(901	)		374
Accounts payable and accrued expenses		4,294			3,863			448			1,884
Accrued compensation		(904	)		88			90			(1,079	)
Tenant security deposits		(117	)		(51	)		-			130
Payment of deferred leasing commissions		(2,202	)		(2,434	)		(3,353	)		(4,314	)
Net cash provided by operating activities		51,530			52,472			64,308			70,114
Cash flows from investing activities:
Purchase of real estate assets, office computers and           furniture, capitalized merger costs and acquired real estate leases		(130,819	)		(39,282	)		(78,396	)		(81,620	)
Investment in non-consolidated REITs		(13,200	)		(10	)		(10	)		(82,831	)
Investment in related party mortgage loan receivable		(22,139	)		(1,125	)		(1,125	)		-
Redemption of certificate of deposit		-			-			-			5,143
Changes in deposits on real estate assets		-			-			(1,300	)		-
Investment in assets held for syndication, net		13,017			12,235			12,236			(22,093	)
Proceeds received on sales of real estate assets		-			-			-			96,102
Net cash used in investing activities		(153,141	)		(28,182	)		(68,595	)		(85,299	)
Cash flows from financing activities:
Distributions to stockholders		(40,173	)		(57,089	)		(70,481	)		(87,662	)
Proceeds from equity offering, net		115,385			-			-			-
Purchase of treasury shares		-			-			-			(4,767	)
Borrowings (repayments) under bank note payable, net		23,540			20,368			(17,282	)		84,750
Borrowings under term note payable		-			-			75,000			-
Deferred financing costs		-			(30	)		(694	)		(121	)
Net cash (used in) provided by financing activities		98,752			(36,751	)		(13,457	)		(7,800	)
Net increase (decrease) in cash and cash equivalents		(2,859	)		(12,461	)		(17,744	)		(22,985	)
Cash and cash equivalents, beginning of period		29,244			46,988			46,988			69,973
Cash and cash equivalents, end of period	$	26,385		$	34,527		$	29,244		$	46,988

Franklin Street Properties Corp.  September 30, 2009

11

Segment Information*

($ in thousands except per share amounts)

	Three Months Ended September 30, 2009									Nine Months Ended September 30, 2009									Three Months Ended September 30, 2008									Nine Months Ended September 30, 2008
	Real			Investment						Real			Investment						Real			Investment						Real			Investment
	Estate			Banking			Total			Estate			Banking			Total			Estate			Banking			Total			Estate			Banking			Total
Revenue:
Rental Income	$	31,702		$	-		$	31,702		$	90,774		$	-		$	90,774		$	27,927		$	-		$	27,927		$	82,283		$	-		$	82,283
Syndication Fees		-			-			-			-			39			39			-			304			304			-			3,766			3,766
Transaction Fees		-			1			1			-			543			543			-			300			300			-			3,606			3,606
Management Fees & Interest Income		370			-			370			1,232			-			1,232			380			-			380			1,364			-			1,364
Other Income		19			-			19			55			-			55			13			-			13			52			-			52
Total Revenue		32,091			1			32,092			92,061			582			92,643			28,320			604			28,924			83,699			7,372			91,071
Expenses
Rental Operating Expenses		7,752			-			7,752			22,176			-			22,176			7,159			-			7,159			20,973			-			20,973
Real Estate Taxes and Insurance		5,364			-			5,364			14,879			-			14,879			4,590			-			4,590			13,375			-			13,375
Depreciation and Amortization		8,768			33			8,801			26,855			85			26,940			7,629			37			7,666			22,510			106			22,616
Selling, general  and administrative		1,324			919			2,243			3,469			2,909			6,378			945			982			1,927			3,375			3,182			6,557
Commissions and  Broker Expenses		-			8			8			-			178			178			(1	)		209			208			-			2,020			2,020
Interest & Commitment Fees		1,744			-			1,744			4,920			-			4,920			1,108			-			1,108			3,351			-			3,351
Total Expenses		24,952			960			25,912			72,299			3,172			75,471			21,430			1,228			22,658			63,584			5,308			68,892
Income before Equity, Interest and Taxes		7,139			(959	)		6,180			19,762			(2,590	)		17,172			6,890			(624	)		6,266			20,115			2,064			22,179
Interest Income		16			-			16			84			4			88			167			10			177			629			28			657
Equity Income SARs		475			-			475			1,710			-			1,710			679			-			679			2,167			-			2,167
Income before Taxes		7,630			(959	)		6,671			21,556			(2,586	)		18,970			7,736			(614	)		7,122			22,911			2,092			25,003
Income Taxes		64			(334	)		(270	)		192			(836	)		(644	)		64			(361	)		(297	)		182			(519	)		(337	)
Income from continuing operations		7,566			(625	)		6,941			21,364			(1,750	)		19,614			7,672			(253	)		7,419			22,729			2,611			25,340
Income from discontinued operations		-			-			-			-			-			-			-			-			-			-			-			-
Gain on sale of assets		-			-			-			-			-			-			-			-			-			-			-			-
Net Income	$	7,566		$	(625	)	$	6,941		$	21,364		$	(1,750	)	$	19,614		$	7,672		$	(253	)	$	7,419		$	22,729		$	2,611		$	25,340
Funds From Operations (FFO)*
Net Income	$	7,566		$	(625	)	$	6,941		$	21,364		$	(1,750	)	$	19,614		$	7,672		$	(253	)	$	7,419		$	22,729		$	2,611		$	25,340
Gain on sale of assets, net		-			-			-			-			-			-			-			-			-			-			-			-
Equity in income of SARs		(475	)		-			(475	)		(1,710	)		-			(1,710	)		(679	)		-			(679	)		(2,167	)		-			(2,167	)
Cash received from SARs		1,119			-			1,119			4,257			-			4,257			1,561			-			1,561			3,838			-			3,838
Acquisition costs		391			-			391			639			-			639						-			-						-			-
Depreciation and amortization		9,528			33			9,561			29,399			85			29,484			8,747			37			8,784			25,888			106			25,994
Funds From Operations (FFO)*		18,129			(592	)		17,537			53,949			(1,665	)		52,284			17,301			(216	)		17,085			50,288			2,717			53,005
EPS	$	0.11		$	(0.01	)	$	0.10		$	0.30		$	(0.02	)	$	0.28		$	0.11		$	(0.00	)	$	0.11		$	0.32		$	0.04		$	0.36
FFO per Share*	$	0.25		$	(0.01	)	$	0.25		$	0.76		$	(0.02	)	$	0.74		$	0.25		$	(0.00	)	$	0.24		$	0.71		$	0.04		$	0.75
Weighted Average Shares								71,281									70,750									70,481									70,481

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

12

Segment Information*

($ in thousands except per share amounts)

	Year Ended December 31, 2008									Year Ended December 31, 2007								Year Ended December 31, 2006
	Real			Investment						Real			Investment					Real			Investment
	Estate			Banking			Total			Estate			Banking		Total			Estate			Banking		Total
Revenue:
Rental Income	$	111,198		$	-		$	111,198		$	100,961		$	-	$	100,961		$	83,147		$	-	$	83,147
Syndication Fees		-			3,766			3,766			-			8,986		8,986			-			10,693		10,693
Transaction Fees		-			3,641			3,641			-			9,898		9,898			-			11,262		11,262
Management Fees & Interest Income		1,739			-			1,739			7,026			4		7,030			2,083			-		2,083
Other Income		72			-			72			83			35		118			30			30		60
Total Revenue		113,009			7,407			120,416			108,070			18,923		126,993			85,260			21,985		107,245
Expenses
Rental Operating Expenses		28,999			-			28,999			26,171			-		26,171			19,045			-		19,045
Real Estate Taxes and Insurance		17,740			-			17,740			16,535			-		16,535			12,282			-		12,282
Depreciation and Amortization		30,222			138			30,360			29,200			134		29,334			20,772			121		20,893
Selling, general  and administrative		4,229			4,039			8,268			3,440			4,026		7,466			4,047			4,471		8,518
Commissions and  Broker Expenses		100			2,051			2,151			-			4,737		4,737			-			5,522		5,522
Interest & Commitment Fees		4,921			-			4,921			7,684			-		7,684			2,449			-		2,449
Total Expenses		86,211			6,228			92,439			83,030			8,897		91,927			58,595			10,114		68,709
Income before Equity, Interest and Taxes		26,798			1,179			27,977			25,040			10,026		35,066			26,665			11,871		38,536
Interest Income		709			36			745			2,317			60		2,377			2,949			49		2,998
Equity Income SARs		2,747			-			2,747			(464	)		-		(464	)		845			-		845
Income before Taxes		30,254			1,215			31,469			26,893			10,086		36,979			30,459			11,920		42,379
Income Taxes		246			(736	)		(490	)		226			647		873			-			839		839
Income from continuing operations		30,008			1,951			31,959			26,667			9,439		36,106			30,459			11,081		41,540
Income from discontinued operations		-			-			-			1,190			-		1,190			7,951			-		7,951
Gain on sale of assets		-			-			-			23,789			-		23,789			61,438			-		61,438
Net Income	$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085		$	99,848		$	11,081	$	110,929
Funds From Operations (FFO)*
Net Income	$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085		$	99,848		$	11,081	$	110,929
Gain on sale of assets, net		-			-			-			(23,789	)		-		(23,789	)		(61,438	)		-		(61,438	)
Equity in income of SARs		(2,747	)		-			(2,747	)		472			-		472			(1,043	)		-		(1,043	)
Cash received from SARs		5,348			-			5,348			1,806			-		1,806			783			-		783
Depreciation and amortization		34,505			138			34,643			35,340			134		35,474			31,926			121		32,047
Funds From Operations (FFO)*		67,114			2,089			69,203			65,475			9,573		75,048			70,076			11,202		81,278
EPS	$	0.43		$	0.03		$	0.45		$	0.73		$	0.13	$	0.86		$	1.49		$	0.16	$	1.65
FFO per Share*	$	0.95		$	0.03		$	0.98		$	0.93		$	0.14	$	1.06		$	1.04		$	0.17	$	1.21
Weighted Average Shares								70,481								70,651								67,159

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

13

Property Net Operating Income (NOI): Cash and GAAP Basis

(in thousands)

Property NOI Cash*

			Three Months Ended						Three Months Ended								Year Ended
		30-Sep-09
Region	Division	Sq Feet	31-Mar-09		30-Jun-09		30-Sep-09		31-Mar-08		30-Jun-08		30-Sep-08		31-Dec-08		2008 Total
Eastern	Mideast	1,528	$	3,740	$	3,803	$	4,401	$	3,321	$	3,230	$	3,059	$	3,470	$	13,080
Midwest	East North Central	597		1,524		1,578		1,108		1,537		1,443		1,400		1,393		5,773
	West North Central	630		1,689		1,758		2,653		1,132		1,228		1,381		1,312		5,053
		1,227		3,213		3,336		3,761		2,669		2,671		2,781		2,705		10,826
South	Southeast	600		2,220		2,213		2,353		2,403		2,507		2,370		2,149		9,429
	Southwest	1,489		5,203		4,953		4,718		4,574		4,850		4,954		4,944		19,322
		2,089		7,423		7,166		7,071		6,977		7,357		7,324		7,093		28,751
West	Mountain	792		3,194		3,519		3,003		2,996		2,969		3,020		2,994		11,979
	Pacific	299		375		311		460		322		359		313		237		1,231
		1,091		3,569		3,830		3,463		3,318		3,328		3,333		3,231		13,210
Total		5,935	$	17,945	$	18,135	$	18,696	$	16,285	$	16,586	$	16,497	$	16,499	$	65,867

Property NOI GAAP*

			Three Months Ended						Three Months Ended								Year Ended
		30-Sep-09
Region	Division	Sq Feet	31-Mar-09		30-Jun-09		30-Sep-09		31-Mar-08		30-Jun-08		30-Sep-08		31-Dec-08		2008 Total
Eastern	Mideast	1,528	$	3,749	$	3,726	$	4,483	$	3,339	$	3,289	$	3,131	$	3,554	$	13,313
Midwest	East North Central	597		1,570		1,592		1,161		1,619		1,479		1,496		1,561		6,155
	West North Central	630		1,606		1,667		2,626		1,043		1,157		1,279		1,215		4,694
		1,227		3,176		3,259		3,787		2,662		2,636		2,775		2,776		10,849
South	Southeast	600		2,391		2,343		2,477		2,342		2,410		2,263		2,336		9,351
	Southwest	1,489		5,265		4,828		4,820		4,708		4,933		5,095		5,043		19,779
		2,089		7,656		7,171		7,297		7,050		7,343		7,358		7,379		29,130
West	Mountain	792		3,334		3,548		3,019		3,139		3,190		3,231		3,068		12,628
	Pacific	299		404		339		515		345		385		347		276		1,353
		1,091		3,738		3,887		3,534		3,484		3,575		3,578		3,344		13,981
Total		5,935	$	18,319	$	18,043	$	19,101	$	16,535	$	16,843	$	16,842	$	17,053	$	67,273

*See page 31 for a reconciliation of Net Income to Property NOI cash and Property NOI GAAP.

Franklin Street Properties Corp.  September 30, 2009

14

Capital Analysis

(in thousands, except per share amounts)

	31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-08			30-Sep-08			30-Jun-08			31-Mar-08
Market Data:
Shares Outstanding		70,481			70,481			79,681			70,481			70,481			70,481			70,481
Closing market price per share	$	12.30		$	13.25		$	13.10		$	14.75		$	13.00		$	12.64		$	14.32
Market capitalization	$	866,913		$	933,869		$	1,043,817		$	1,039,590		$	916,249		$	890,876		$	1,009,284
Dividend Data:
Total dividends paid	$	13,391		$	13,391		$	13,391		$	13,391		$	13,391		$	21,849		$	21,849
Common dividend per share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.19		$	0.31		$	0.31
Quarterly dividend as a % of FFO*		76	%		76	%		76	%		83	%		78	%		108	%		140	%
Liquidity:
Cash and cash equivalents	$	27,650		$	24,542		$	26,385		$	29,244		$	34,527		$	34,386		$	32,227
Revolving credit facilities:
Gross potential available under current credit facilities		250,000			250,000			250,000			250,000			250,000			250,000			250,000
Less:
Outstanding balance		(72,468	)		(124,038	)		(91,008	)		(67,468	)		(105,118	)		(109,955	)		(84,750	)
Total Liquidity	$	205,182		$	150,504		$	185,377		$	211,776		$	179,409		$	174,431		$	197,477

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS

Franklin Street Properties Corp.  September 30, 2009

15

Portfolio Overview

 

Property by Form of FSP Participation
	30-Sep-09	30-Jun-09	31-Mar-09	31-Dec-08	30-Sep-08	30-Jun-08
Owned portfolio of commercial real estate:
Number of properties	32	31	29	29	27	27
Square feet	5,934,624	5,682,011	5,417,515	5,417,515	5,153,737	5,153,396
Leased percentage	92%	92%	93%	93%	93%	93%
Investments in non-consolidated commercial real estate:
Number of properties	3	3	2	2	2	2
Square feet	1,995,041	1,994,686	1,461,224	1,461,224	1,461,224	1,459,420
Leased percentage	78%	78%	79%	80%	79%	78%
Single Asset REITs (SARs) managed:
Number of properties	9	9	10	10	10	10
Square feet *	2,155,201	2,154,079	2,684,561	2,684,561	2,683,105	2,682,931
Leased percentage*	90%	87%	88%	92%	92%	93%
Total owned, investments and managed properties:
Number of properties	44	43	41	41	39	39
Square feet *	10,084,866	9,830,776	9,563,300	9,563,300	9,298,066	9,295,747
Leased percentage*	88%	88%	90%	91%	90%	91%

*Excludes a property to be constructed with approximately 285,000 square feet

Franklin Street Properties Corp.  September 30, 2009

16

Regional Analysis and Map

(as of September 30, 2009)

Owned:
Name	City	State	Region	Square Feet
Park Seneca	Charlotte	NC	East	109,550
Forest Park	Charlotte	NC	East	62,212
Meadow Point	Chantilly	VA	East	134,849
Stonecroft	Chantilly	VA	East	111,469
Fairview	Falls Church	VA	East	252,613
Innsbrook	Glen Allen	VA	East	297,789
East Baltimore	Baltimore	MD	East	325,410
Loudoun Tech Center	Dulles	VA	East	135,888
Bollman Place (1)	Savage	MD	East	98,745
Southfield Centre	Southfield	MI	MidWest	214,697
Northwest Point	Elk Grove Village	IL	MidWest	176,848
River Crossing	Indianapolis	IN	MidWest	205,059
Timberlake	Chesterfield	MO	MidWest	232,766
Timberlake East	Chesterfield	MO	MidWest	116,312
Lakeside Crossing	Maryland Heights	MO	MidWest	127,778
Eden Bluff	Eden Prairie	MN	MidWest	153,028
Blue Lagoon Drive	Miami	FL	South	212,619
One Overton Place	Atlanta	GA	South	387,267
Willow Bend Office Center	Plano	TX	South	116,622
Park Ten	Houston	TX	South	155,715
Addison Circle	Addison	TX	South	293,787
Collins Crossing	Richardson	TX	South	298,766
Eldridge Green	Houston	TX	South	248,399
Park Ten Phase II	Houston	TX	South	156,746
Liberty Plaza	Addison	TX	South	218,934
Centennial Technology Center	Colorado Springs	CO	West	110,730
380 Interlocken	Broomfield	CO	West	240,184
Greenwood Plaza	Englewood	CO	West	199,077
390 Interlocken	Broomfield	CO	West	241,516
Hillview Center	Milpitas	CA	West	36,288
Federal Way	Federal Way	WA	West	117,010
Montague Business Center	San Jose	CA	West	145,951
Total				5,934,624
Managed:
Name	City	State	Region	Square Feet
1441 Main Street	Columbia	SC	East	268,723
303 East Wacker Drive	Chicago	IL	MidWest	844,081
505 Waterford	Plymouth	MN	MidWest	256,348
50 South Tenth Street	Minneapolis	MN	MidWest	498,768
Grand Boulevard	Kansas City	MO	MidWest	532,453
Satellite Place	Duluth	GA	South	134,785
5601 Executive Drive	Irving	TX	South	152,121
Galleria North	Dallas	TX	South	379,518
Energy Tower I	Houston	TX	South	325,796
Phoenix Tower	Houston	TX	South	618,507
Highland Place I	Centennial	CO	West	139,142
Total (2)				4,150,242

(1)  Industrial property, all others are office properties

(2)  Excludes property under construction in Broomfield, Co of approximately 285,000 square feet

Properties by Division/Region
($ in thousands)
				NBV (a)	% Leased
	# of Properties	Square Feet	% of Portfolio	30-Sep-09	30-Sep-09
East Region Total	9	1,528,525	25.8	$   237,258	97.75%
East North Central Division	3	596,604	10.1	82,033	81.69%
West North Central	4	629,884	10.6	87,666	100.00%
Midwest Region Total	7	1,226,488	20.7	169,699	91.09%
Southeast	2	599,886	10.1	124,541	93.63%
Southwest	7	1,488,969	25.1	229,853	84.15%
South Region Total	9	2,088,855	35.2	354,394	86.88%
Mountain	4	791,507	13.3	128,820	93.01%
Pacific	3	299,249	5.0	36,384	67.11%
West Region Total	7	1,090,756	18.3	165,204	85.91%
Grand Total	32	5,934,624	100	$   926,555	90.37%

(a) NBV is for real estate assets, excluding intangibles

Franklin Street Properties Corp.  September 30, 2009

17

Owned Property List

		(in thousands)				NBV (1)	% Leased
Region	Division	Name	City	State	S.F.	30-Sep-09	30-Sep-09
West	Pacific	Hillview Center	Milpitas	CA	36	$4,264	100.0%
West	Pacific	Montague Business Center	San Jose	CA	146	17,257	100.0%
West	Mountain	380 Interlocken	Broomfield	CO	240	43,607	89.8%
West	Mountain	390 Interlocken	Broomfield	CO	242	43,436	97.1%
West	Mountain	Centennial Technology Center	Colorado Springs	CO	111	12,025	78.5%
West	Mountain	Greenwood Plaza	Englewood	CO	199	29,751	100.0%
South	Southeast	Blue Lagoon Drive	Miami	FL	213	48,389	100.0%
South	Southeast	One Overton Place	Atlanta	GA	387	76,152	90.1%
MidWest	East North Central	Northwest Point	Elk Grove Village	IL	177	30,424	100.0%
MidWest	East North Central	River Crossing	Indianapolis	IN	205	36,725	94.7%
East	Mideast	East Baltimore	Baltimore	MD	325	56,832	94.4%
East	Mideast	Bollman Place	Savage	MD	99	5,056	100.0%
MidWest	East North Central	Southfield Centre	Southfield	MI	215	14,884	54.2%
MidWest	West North Central	Eden Bluff - Eden Prairie	Eden Prairie	MN	153	14,657	100.0%
MidWest	West North Central	Timberlake	Chesterfield	MO	233	36,732	100.0%
MidWest	West North Central	Timberlake East	Chesterfield	MO	116	18,529	100.0%
MidWest	West North Central	Lakeside Crossing	Maryland Heights	MO	128	17,748	100.0%
East	Mideast	Park Seneca	Charlotte	NC	110	7,718	85.2%
East	Mideast	Forest Park	Charlotte	NC	62	6,454	100.0%
South	Southwest	Addison Circle	Addison	TX	294	48,035	61.3%
South	Southwest	Liberty Plaza	Addison	TX	219	25,612	72.5%
South	Southwest	Park Ten	Houston	TX	156	19,041	100.0%
South	Southwest	Eldridge Green	Houston	TX	248	43,905	100.0%
South	Southwest	Park Ten Phase II	Houston	TX	157	31,926	97.8%
South	Southwest	Willow Bend Office Center	Plano	TX	117	18,194	49.8%
South	Southwest	Collins Crossing	Richardson	TX	299	43,141	100.0%
East	Mideast	Meadow Point	Chantilly	VA	135	18,661	100.0%
East	Mideast	Stonecroft	Chantilly	VA	111	19,989	100.0%
East	Mideast	Loudoun Tech Center	Dulles	VA	136	17,843	100.0%
East	Mideast	Fairview	Falls Church	VA	253	62,184	100.0%
East	Mideast	Innsbrook	Glen Allen	VA	298	42,521	100.0%
West	Pacific	Federal Way	Federal Way	WA	117	14,864	15.9%
					5,935	$ 926,555	90.4%

(1) NBV is for real estate assets, excluding intangibles

Franklin Street Properties Corp.  September 30, 2009

18

Properties with annualized rent per square foot

Franklin Street Properties
NCREIF Break-out
						Percentage	Annualized	Average
			Year Built			Leased as of	Rent as of	Annualized
			or	Net Rentable	Leased	September 30,	September 30,	Rent per Leased
Property Name	City	State	Renovated	Square Feet	Sq. Ft. (a)	2009 (a)	2009 (b)	Square Feet (c)
Park Seneca	Charlotte	NC	1969	109,550	93,343	85.21%	1,459,173	$   15.63
Forest Park	Charlotte	NC	1999	62,212	62,212	100.00%	855,162	13.75
Meadow Point	Chantilly	VA	1999	134,849	134,849	100.00%	4,445,105	32.96
Innsbrook	Glen Allen	VA	1999	297,789	297,789	100.00%	5,392,616	18.11
East Baltimore	Baltimore	MD	1989	325,410	307,252	94.42%	7,881,502	25.65
Loudoun Tech Center	Dulles	VA	1999	135,888	135,888	100.00%	1,685,767	12.41
Bollman Place	Savage	MD	1984	98,745	98,745	100.00%	599,382	6.07
Stonecroft	Chantilly	VA	2008	111,469	111,469	100.00%	4,095,160	36.74
Fairview Park	Falls Church	VA	2001	252,613	252,613	100.00%	6,523,980	25.83
East total				1,528,525	1,494,160	97.75%	32,937,846	22.04
Southfield Centre	Southfield	MI	1977	214,697	116,271	54.16%	1,398,879	12.03
Northwest Point	Elk Grove Village	IL	1999	176,848	176,848	100.00%	3,157,639	17.86
River Crossing	Indianapolis	IN	1998	205,059	194,246	94.73%	4,703,684	24.22
Timberlake	Chesterfield	MO	1999	232,766	232,766	100.00%	4,770,640	20.50
Timberlake East	Chesterfield	MO	2000	116,312	116,197	99.90%	2,383,278	20.51
Lakeside Crossing	Sl. Louis	MO	2008	127,778	127,778	100.00%	2,883,950	22.57
Eden Bluff	Eden Praire	MN	2006	153,028	153,028	100.00%	3,884,765	25.39
Midwest total				1,226,488	1,117,134	91.08%	23,182,834	20.75
Blue Lagoon Drive	Miami	FL	2002	212,619	212,619	100.00%	4,597,571	21.62
One Overton Place	Atlanta	GA	2002	387,267	349,086	90.14%	9,105,473	26.08
Willow Bend Office Center	Plano	TX	1999	116,622	58,071	49.79%	1,162,345	20.02
Park Ten	Houston	TX	1999	155,715	155,715	100.00%	4,064,581	26.10
Addison Circle	Addison	TX	1999	293,787	180,006	61.27%	4,047,441	22.49
Collins Crossing	Richardson	TX	1999	298,766	298,766	100.00%	7,710,417	25.81
Eldridge Green	Houston	TX	1999	248,399	248,399	100.00%	6,655,927	26.80
Park Ten Phase II	Houston	TX	2006	156,746	153,326	97.82%	3,989,325	26.02
Liberty Plaza	Addison	TX	1985	218,934	158,742	72.51%	3,409,766	21.48
South Total				2,088,855	1,814,730	86.88%	44,742,845	24.66
Centennial Technology Center	Colorado Springs	CO	1999	110,730	86,910	78.49%	1,309,929	15.07
380 Interlocken	Broomfield	CO	2000	240,184	215,736	89.82%	5,889,752	27.30
Greenwood Plaza	Englewood	CO	2000	199,077	199,077	100.00%	8,097,285	40.67
390 Interlocken	Broomfield	CO	2002	241,516	234,481	97.09%	6,047,229	25.79
Hillview Center	Milpitas	CA	1984	36,288	36,288	100.00%	527,681	14.54
Federal Way	Federal Way	WA	1982	117,010	18,592	15.89%	318,603	17.14
Montague Business Center	San Jose	CA	1982	145,951	145,951	100.00%	2,010,109	13.77
West Total				1,090,756	937,035	85.91%	24,200,589	25.83
Grand Total				5,934,624	5,363,059	90.37%	$  125,064,114	$     23.32

(a) Based on all leases in effect, including month-to-month tenants, divided by the Property's net rentable square footage.

(b) Represents gross rental charges for the month of September 2009 (including month-to-month leases) multiplied by 12.

(c) Represents the annualized rent as of September 2009 divided by leased square feet.

Franklin Street Properties Corp.  September 30, 2009

19

Owned Property Capital Expenditures

(in thousands)

															Year
	For the Three Months Ended														Ended
	31-Mar-09		30-Jun-09		30-Sep-09		31-Mar-08		30-Jun-08		30-Sep-08		31-Dec-08		31-Dec-08
Tenant improvements	$	1,374	$	912	$	931	$	2,337	$	560	$	1,667	$	823	$	5,387
Deferred leasing costs		162		1,395		645		817		1,313		305		919		3,354
Building improvements		465		116		265		197		372		740		419		1,728
Increase to investments in building		-		-		-		-		-		-		-		-
Total	$	2,001	$	2,423	$	1,841	$	3,351	$	2,245	$	2,712	$	2,161	$	10,469

Franklin Street Properties Corp.  September 30, 2009

20

20 Largest tenants with annualized rent and remaining term

As of September 30, 2009

			Remaining	Aggregate	% of Aggregate	Annualized	% of
	Tenant	Number of	Lease Term	Leased	Leased	Rent (a)	Aggregate
	Name	Leases	in Months	Square Feet	Square Feet	(in 000's)	Annualized Rent
1	Capital One Services, Inc. (b)	1	1	297,789	5.02%	$  5,393	4.31%
2	Noblis, Inc. (e)	1	88	252,613	4.26%	6,524	5.22%
3	Citgo Petroleum Corporation	1	29	248,399	4.19%	6,656	5.32%
4	Tektronix Texas, LLC	1	9	241,372	4.07%	6,385	5.11%
5	Burger King Corporation	1	108	212,619	3.58%	4,598	3.68%
6	New Era of Networks, Inc. (Sybase)	1	7	199,077	3.35%	8,097	6.47%
7	Citigroup Credit Services, Inc. (c)	1	87	176,848	2.98%	3,158	2.52%
8	RGA Reinsurance Company	2	63	185,501	3.13%	3,428	2.74%
9	CH Robinson Worldwide, Inc. (d)	1	141	153,028	2.58%	3,885	3.11%
10	Geisecke & Devrient	1	65	135,888	2.29%	1,686	1.35%
11	Murphy Exploration & Production Company	1	91	133,786	2.25%	3,514	2.81%
12	CACI Technologies, Inc.	1	2	132,896	2.24%	4,426	3.54%
13	Monsanto	1	64	127,778	2.15%	2,884	2.31%
14	Northrop Grumman Information Technology, Inc. (d)	1	103	111,469	1.88%	4,095	3.27%
15	Maines Paper & Food Service, Inc.	1	50	98,745	1.66%	599	0.48%
16	Amdocs, Inc.	1	20	91,928	1.55%	2,062	1.65%
17	County of Santa Clara	1	39	90,467	1.52%	1,268	1.01%
18	Ober Kaler Grimes & Shriver	1	18	88,736	1.50%	2,471	1.98%
19	Technip-Coflexip USA Holdings, Inc	1	1	86,059	1.45%	2,207	1.76%
20	Vail Corp d/b/a Vail Resorts	1	114	83,620	1.41%	2,041	1.63%
				3,148,618	53.06%	$  75,375	60.27%

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at September 30, 2009 mulitplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.
(b)	Capital One Services, Inc. (“CapOne”) sublets all of the space to LandAmerica Financial Group, Inc. (“LandAm”).  Both the direct lease with CapOne and the sublease with LandAm expired on October 31, 2009.
(c)	The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.
(d)	Acquired in June 2009.
(e)	Acquired in September 2009.

Franklin Street Properties Corp.  September 30, 2009

21

Tenant Analysis

(as of September 30, 2009)

	% of
Industry	Portfolio
Computer Consulting Services	29.0%
Financial Services	15.0%
Energy	14.9%
Food	14.0%
R&D and Sciences	8.0%
Insurance	5.9%
Transportation/Logistics	4.9%
Legal Services	2.9%
Government	2.8%
Resorts	2.6%
	100.0%

Franklin Street Properties Corp.  September 30, 2009

22

Lease Expirations by Square Feet

(as of September 30, 2009)

Year	Total Square Feet	% of Square Feet Commercial
2009	488,456	8.2%
2010	761,351	12.8%
2011	384,237	6.5%
2012	647,178	10.9%
2013	349,015	5.9%
2014	584,389	9.8%
2015	437,909	7.4%
2016	487,849	8.2%
2017	513,987	8.7%
2018	394,913	6.7%
2019	88,719	1.5%
2020	72,028	1.2%
2021	153,028	2.6%
Vacant	571,565	9.6%
Total	5,934,624	100.0%

Franklin Street Properties Corp.  September 30, 2009

23

Lease Expirations with annualized rent per square foot

Franklin Street Properties

Year End Expiration Report

as of September 30, 2009

		Rentable		Annualized	Percentage
	Number of	Square		Rent	of Total Final
Year of	Leases	Footage	Annualized	Per Square	Annualized
Lease	Expiring	Subject to	Rent Under	Foot Under	Rent Under
Expiration	Within the	Expiring	Expiring	Expiring	Expiring	Cumulative
December 31,	Year	Leases	Leases (a)	Leases	Leases	Total
2009	39*	488,456	10,152,585	20.79	8.12%	8.12%
2010	66	761,351	22,442,618	29.48	17.94%	26.06%
2011	32	384,237	9,135,720	23.78	7.30%	33.37%
2012	48	647,178	15,241,386	23.55	12.19%	45.55%
2013	26	349,015	6,336,747	18.16	5.07%	50.62%
2014	21	584,389	12,186,460	20.85	9.74%	60.37%
2015	14	437,909	8,002,342	18.27	6.40%	66.76%
2016	7	487,849	10,973,288	22.49	8.77%	75.54%
2017	5	513,987	12,073,960	23.49	9.65%	85.19%
2018	5	394,913	10,313,905	26.12	8.25%	93.44%
2019 and thereafter	5	313,775	8,205,103	26.15	6.56%	100.00%
	268	5,363,059	125,064,114	23.32	100.00%
Vacancies as of 9/30/09		571,565
Total Portfolio Square Footage		5,934,624

* 30 Leases are Month to Month

(a) Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at September 30, 2009 multiplied by 12.  Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

Franklin Street Properties Corp.  September 30, 2009

24

Capital Recycling

($ in thousands)

Acquisitions:
	State/Region	Property Type	Square Feet	Date Acquired	Purchase Price
2009
Stonecroft-Chantilly	VA/East	Office	111,469	6/26/09	$   29,000
Eden Bluff - Eden Prairie	MN/Midwest	Office	153,028	6/30/09	22,784
Fairview	VA/East	Office	252,613	9/30/09	73,000
2008
Park Ten Phase II	TX/South	Office	156,746	5/15/08	35,079
Lakeside Crossing	MO/Midwest	Office	127,778	12/11/08	20,003
Loudoun Tech Center	VA/East	Office	135,888	12/23/08	18,628
2007
East Baltimore	MD/East	Office	325,298	6/13/07	63,592
2006
Liberty Plaza	TX/South	Office	218,934	2/24/06	26,472
Innsbrook	VA/East	Office	297,789	5/1/06	48,240
380 Interlocken	CO/West	Office	240,184	5/1/06	47,587
Blue Lagoon Drive	FL/South	Office	212,619	5/1/06	56,051
Eldridge Green	TX/South	Office	248,399	5/1/06	53,435
Willow Bend Office Center	TX/South	Office	116,622	5/1/06	19,713
One Overton Place	GA/South	Office	387,267	6/27/06	85,284
390 Interlocken	CO/West	Office	241,516	12/21/06	46,459
2005
Greenwood Plaza	CO/West	Office	199,077	2/24/05	44,116
Addison Circle	TX/South	Office	293,787	5/1/05	56,295
Royal Ridge	GA/South	Office	161,366	5/1/05	27,391
Collins Crossing	TX/South	Office	298,766	5/1/05	53,667
Montague Business Center	CA/West	Office	145,951	5/1/05	20,147
River Crossing	IN/Midwest	Office	205,059	7/6/05	42,016
Dispositions:
					Net Sales	Gain (Loss)
2007	State/Region	Property Type	Square Feet	Date Sold	Proceeds	on Sale
Piedmont Center	SC/East	Office	144,029	1/31/07	$    5,830	$   (4,849)
Royal Ridge	GA/South	Office	161,366	6/21/07	32,535	6,601
Goldentop Technology Center	CA/West	Office	141,405	6/27/07	36,199	14,741
Lyberty Way	MA/East	Office	104,711	7/16/07	10,861	1,942
Austin N.W. (Canyon Hills)	TX/South	Office	68,533	12/20/07	10,429	257
2006
Merrywood Apartments	TX/South	Apt	231,363	5/24/06	18,204	2,373
Santa Clara	CA/West	Office	40,280	5/31/06	8,188	1,557
Fair Lakes	VA/East	Office	210,613	5/31/06	61,412	24,240
One Technology Drive	MA/East	Industrial	188,000	8/10/06	15,995	6,366
Plaza Ridge	VA/East	Office	158,016	11/16/06	58,022	27,941
North Andover Office Park	MA/East	Office	92,913	11/21/06	11,362	3,810
2005
Blue Ravine	CA/West	Office	47,058	7/13/05	4,764	(1,124)
Silverside Plantation	LA/South	Apt	223,812	9/19/05	22,280	7,265
Gateway Crossing	MD/East	Office	188,819	9/20/05	25,949	6,807
Essex Lane Associates	TX/South	Apt	118,798	10/5/05	13,752	5,112
Gael Apartments	TX/South	Apt	187,338	10/5/05	22,715	5,151
Telecom Business Center	CA/West	Office	101,726	12/8/05	22,570	6,943

Franklin Street Properties Corp.  September 30, 2009

25

Investment Banking Performance

Franklin Street Properties Corp.  September 30, 2009

26

FFO and FFO+GOS Reconciliations

(in thousands, except per share amounts)

	For the three months ended:																					For the year ended
	31-Mar-09			30-Jun-09			30-Sep-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08			2008			2007			2006
Net income	$	7,808		$	4,865		$	6,941		$	7,386		$	10,534		$	7,420		$	6,619		$	31,959		$	61,085		$	110,929
(Gain) Loss on sale of assets		-			-			-			-			-			-			-			-			(23,789	)		(61,438	)
GAAP income from non-consolidated REITs		(792	)		(443	)		(475	)		(793	)		(694	)		(680	)		(580	)		(2,747	)		472			(1,043	)
Distributions from non-consolidated REITs		1,615			1,523			1,119			546			1,731			1,561			1,510			5,348			1,806			783
Acquisition costs		-			248			391			-			-			-			-			-			-			-
Depreciation & amortization		8,707			11,216			9,561			8,498			8,712			8,783			8,650			34,643			35,475			32,047
Funds From Operations (FFO)		17,338			17,409			17,537			15,637			20,283			17,084			16,199			69,203			75,049			81,278
Plus gains on sales of assets (GOS)		-			-			-			-			-			-			-			-			23,789			61,438
FFO+GOS (Total Profits)	$	17,338		$	17,409		$	17,537		$	15,637		$	20,283		$	17,084		$	16,199		$	69,203		$	98,838		$	142,716
Per Share Data:
EPS	$	0.11		$	0.07		$	0.10		$	0.10		$	0.15		$	0.11		$	0.09		$	0.45		$	0.86		$	1.65
FFO		0.25			0.25			0.25			0.22			0.29			0.24			0.23			0.98			1.06			1.22
GOS		-			-			-			-			-			-			-			-			0.34			0.91
FFO+GOS		0.25			0.25			0.25			0.22			0.29			0.24			0.23			0.98			1.40			2.13
Weighted Average Shares (basic and diluted)		70,481			70,481			71,281			70,481			70,481			70,481			70,481			70,481			70,651			67,159

Franklin Street Properties Corp.  September 30, 2009

27

FFO and FFO+GOS  Definitions

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” or “Total Profits”) 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.

Franklin Street Properties Corp.  September 30, 2009

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Funds Available for Distribution (FAD) Reconciliation and Definition

(in thousands, except per share amounts)

	For the three months ended:
	31-Mar-09			30-Jun-09			30-Sep-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08
Net income	$	7,808		$	4,865		$	6,941		$	7,386		$	10,534		$	7,419		$	6,619
(Gain) Loss on sale of assets		-			-			-			-			-			-			-
GAAP income from non-consolidated REITs		(792	)		(443	)		(475	)		(793	)		(694	)		(679	)		(580	)
Distributions from non-consolidated REITs		1,615			1,522			1,119			546			1,731			1,561			1,510
Acquisition costs		-			248			391			-			-			-			-
Depreciation & amortization		8,707			11,217			9,561			8,498			8,712			8,784			8,650
Funds From Operations (FFO)		17,338			17,409			17,537			15,637			20,283			17,085			16,199
Plus gains on sales of assets (GOS)		-			-			-			-			-			-			-
FFO+GOS (Total Profits)	$	17,338		$	17,409		$	17,537		$	15,637		$	20,283		$	17,085		$	16,199
Funds Available for Distribution:
Funds From Operations (FFO)		17,338			17,409			17,537			15,637			20,283			17,085			16,199
Straight-line rent		(374	)		(69	)		(405	)		(251	)		(256	)		(347	)		(552	)
Capital expenditures		(466	)		(115	)		(265	)		(197	)		(373	)		(740	)		(419	)
Funds Available for Distribution (FAD)	$	16,498		$	17,225		$	16,867		$	15,189		$	19,654		$	15,998		$	15,228
Per Share Data:
EPS	$	0.11		$	0.07		$	0.10		$	0.10		$	0.15		$	0.11		$	0.09
FFO		0.25			0.25			0.25			0.22			0.29			0.24			0.23
GOS		-			-			-			-			-			-			-
FFO+GOS		0.25			0.25			0.25			0.22			0.29			0.24			0.23
FAD		0.23			0.24			0.24			0.22			0.28			0.23			0.22
Weighted Average Shares (basic and diluted)		70,481			70,481			71,281			70,481			70,481			70,481			70,481

The Company defines FAD as the sum of (1) FFO, (2) less the effect of straight-line rent, (3) less recurring capital expenditures that are generally for maintenance of properties and are not recovered through rental income from tenants, and (4) plus non-cash compensation expenses, if any.  FAD should not be considered as an alternative to net income (determined in accordance with GAAP), as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.  Other real estate companies may define this term in a different manner.  We believe that in order to facilitate a clear understanding of the results of the Company, FAD 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.  September 30, 2009

29

EBITDA Reconciliation and Definition

(in thousands, except ratio amounts)

										Year to														Year
	For the three months ended:									Date			For the three months ended:											Ended
	31-Mar-09			30-Jun-09			30-Sep-09			30-Sep-09			31-Mar-08			30-Jun-08		30-Sep-08			31-Dec-08			31-Dec-08
Net income	$	7,808		$	4,865		$	6,941		$	19,614		$	7,386		$	10,534	$	7,419		$	6,619		$	31,959
Interest expense		1,577			1,599			1,744			4,920			1,192			1,051		1,108			1,570			4,921
Depreciation and amortization		8,707			11,216			9,561			29,484			8,498			8,712		8,784			8,650			34,643
Income taxes		(299	)		(75	)		(270	)		(644	)		(375	)		335		(297	)		(153	)		(490	)
EBITDA		17,793			17,605			17,976			53,374			16,701			20,632		17,014			16,686			71,033
Interest expense	$	1,577		$	1,599		$	1,744		$	4,920		$	1,192		$	1,051	$	1,108		$	1,570		$	4,921
Scheduled principal payments (1)		-			-			-			-			-			-		-			-			-
Interest and scheduled principal payments	$	1,577		$	1,599		$	1,744		$	4,920		$	1,192		$	1,051	$	1,108		$	1,570		$	4,921
Interest coverage ratio		11.28			11.01			10.31			10.85			14.01			19.63		15.36			10.63			14.43
Debt service coverage ratio		11.28			11.01			10.31			10.85			14.01			19.63		15.36			10.63			14.43

(1) Scheduled principal payments include required principal payments on our unsecured term debt, which are scheduled to commence in November 2011 using a 30 year amortization schedule.

EBITDA, a non-GAAP financial measure, is defined as net income, plus interest expense, income tax expense and depreciation and amortization expense. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, this presentation of EBITDA may not be comparable to similarly titled measures of other companies. The Company believes that net income is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA.

Franklin Street Properties Corp.  September 30, 2009

30

 

Reconciliation of Net Income to Property NOI: Cash and GAAP Basis

(in thousands)

	Three months ended:																					2008
	31-Mar-09			30-Jun-09			30-Sep-09			31-Mar-08			30-Jun-08			30-Sep-08			31-Dec-08			Total
Net Income	$	7,808		$	4,865		$	6,941		$	7,386		$	10,535		$	7,419		$	6,619		$	31,959
Add (deduct):
Investment banking segment net loss (income)		778			346			625			488			(3,352	)		253			660			(1,951	)
Management fees (before elimination)		(425	)		(398	)		(402	)		(545	)		(533	)		(549	)		(545	)		(2,172	)
Depreciation and Amortization		7,887			10,200			8,768			7,326			7,556			7,628			7,712			30,222
Amortization of favorable leases		793			992			759			1,139			1,120			1,118			906			4,283
Selling, general and administrative		983			1,163			1,324			895			1,534			945			854			4,228
Interest expense		1,577			1,599			1,744			1,192			1,051			1,108			1,570			4,921
Interest income		(347	)		(136	)		(170	)		(612	)		(360	)		(314	)		(234	)		(1,520	)
Equity in earnings of nonconsolidated REITs		(792	)		(443	)		(475	)		(793	)		(694	)		(680	)		(580	)		(2,747	)
Non-property specific income and expenses, net		57			(145	)		(13	)		59			(14	)		(86	)		91			50
GAAP Property NOI		18,319			18,043			19,101			16,535			16,843			16,842			17,053			67,273
Straight-line rent		(374	)		92			(405	)		(250	)		(257	)		(345	)		(554	)		(1,406	)
Cash Property NOI	$	17,945		$	18,135		$	18,696		$	16,285		$	16,586		$	16,497		$	16,499		$	65,867

Franklin Street Properties Corp.  September 30, 2009

31