ex99-2.htm

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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.

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%

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

																					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

																					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

	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

	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

	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

	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

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.

	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

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%

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

		(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
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.

Franklin Street Properties Corp. September 30, 2009

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 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

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.

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

	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

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

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

										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.

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

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

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

	% 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%

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%