ex99-2.htm

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

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 March 31, 2010)
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	5.27%
Total Market Capitalization	$1,150 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-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09
Income Items:
Revenue:
Rental	$	30,799		$	29,818		$	29,254		$	31,702		$	31,300	$	122,074
Related party revenue		800			583			860			371			4,434		6,248
Other		9			18			18			19			6		61
Total revenue		31,608			30,419			30,132			32,092			35,740		128,383

Total expenses		26,375			23,738			25,821			25,912			28,134		103,605

Income before interest income, equity in earnings in non-consolidated REITs and taxes		5,233			6,681			4,311			6,180			7,606		24,778
Interest income		8			36			36			16			9		97
Equity in earnings in non-consolidated REITs		253			792			443			475			284		1,994

Income before taxes		5,494			7,509			4,790			6,671			7,899		26,869
Income tax expense (benefit)		(68	)		(299	)		(75	)		(270	)		65		(579	)

Income from continuing operations		5,562			7,808			4,865			6,941			7,834		27,448
Income from discontinued operations		-			-			-			-			-		-
Gain on sale of assets		-			-			-			-			424		424

Net income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872

FFO+GOS*:
FFO	$	16,650	$	17,338	$	17,409	$	17,537	$	19,075	$	71,359
GOS		-		-		-		-		424		424
FFO+GOS	$	16,650	$	17,338	$	17,409	$	17,537	$	19,499	$	71,783

Per Share Data:
EPS	$	0.07	$	0.11	$	0.07	$	0.10	$	0.10	$	0.38
FFO		0.21		0.25		0.25		0.25		0.24		0.98
GOS		-		-		-		-		-		-
FFO+GOS		0.21		0.25		0.25		0.25		0.24		0.98

Weighted Aveage Shares (diluted)		79,681		70,481		70,481		71,281		79,681		73,001

Balance Sheet Items:
Real estate, net	$	916,955	$	839,826	$	869,557	$	926,555	$	921,833	$	921,833
Other assets, net		235,359		178,682		195,939		219,220		233,933		233,933
Total assets, net		1,152,314		1,018,508		1,065,496		1,145,775		1,155,766		1,155,766
Total liabilities, net		224,537		175,075		229,903		201,796		218,492		218,492
Shareholders' equity		927,777		843,433		835,593		943,979		937,274		937,274

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

															For the
							For the Three Months Ended								Year Ended
	31-Mar-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09

Revenue:
Rental	$	30,799		$	29,818		$	29,254		$	31,702		$	31,300	$	122,074
Related party revenue:
Syndication fees		122			10			29			-			2,389		2,428
Transaction fees		146			28			514			1			1,537		2,080
Management fees and interest income from loans		532			545			317			370			508		1,740
Other		9			18			18			19			6		61
Total revenue		31,608			30,419			30,132			32,092			35,740		128,383

Expenses:
Real estate operating expenses		7,973			7,280			7,144			7,752			8,646		30,822
Real estate taxes and insurance		5,246			4,829			4,686			5,364			4,349		19,228
Depreciation and amortization		9,219			7,914			10,225			8,801			9,353		36,293
Selling, general and administrative		2,171			2,008			2,127			2,243			2,513		8,891
Commissions		114			130			40			8			1,623		1,801
Interest		1,652			1,577			1,599			1,744			1,650		6,570
Total expenses		26,375			23,738			25,821			25,912			28,134		103,605

Income before interest income, equity in earnings of
non-consolidated REITs and taxes		5,233			6,681			4,311			6,180			7,606		24,778
Interest income		8			36			36			16			9		97
Equity in earnings of non-consolidated REITs		253			792			443			475			284		1,994

		5,494			7,509			4,790			6,671			7,899		26,869
Income tax expense (benefit)		(68	)		(299	)		(75	)		(270	)		65		(579	)

Income from continuing operations		5,562			7,808			4,865			6,941			7,834		27,448
Gain on sale of assets		-			-			-			-			424		424

Net income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872

Weighted average number of shares outstanding,
basic and diluted		79,681			70,481			70,481			71,281			79,681		73,001

Earnings per share, basic and diluted, attributable to:
Continuing operations	$	0.07		$	0.11		$	0.07		$	0.10		$	0.10	$	0.38
Gains on sales of assets		-			-			-			-			-		-
Net income per share, basic and diluted	$	0.07		$	0.11		$	0.07		$	0.10		$	0.10	$	0.38

	March 31,			March 31,			June 30,			September 30,			December 31,
	2010			2009			2009			2009			2009
Assets:
Real estate assets:
Land	$	126,447		$	107,153		$	114,677		$	126,695		$	126,447
Buildings and improvements		895,671			812,470			840,605			891,918			894,012
Fixtures and equipment		354			299			310			310			328
		1,022,472			919,922			955,592			1,018,923			1,020,787
Less accumulated depreciation		105,517			80,096			86,035			92,368			98,954
Real estate assets, net		916,955			839,826			869,557			926,555			921,833

Acquired real estate leases, net		41,783			26,042			38,996			48,003			44,757
Investment in non-consolidated REITs		91,787			82,388			94,579			93,936			92,910
Assets held for syndication, net		2,791			13,004			-			-			4,827
Cash and cash equivalents		22,815			27,650			24,542			26,385			27,404
Restricted cash		50			336			335			331			334
Tenant rent receivables, net		1,385			1,084			720			1,400			1,782
Straight-line rent receivable, net		14,215			9,190			9,219			9,724			10,754
Prepaid expenses		2,236			2,253			2,267			3,430			2,594
Related party mortgage loan receivable		41,325			4,725			12,115			23,264			36,535
Other assets		1,220			1,517			2,271			1,860			1,228
Deferred leasing commissions, net		15,752			10,493			10,895			10,887			10,808
Total assets	$	1,152,314		$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	119,968		$	72,468		$	124,038		$	91,008		$	109,008
Term loan payable		75,000			75,000			75,000			75,000			75,000
Accounts payable and accrued expenses		20,467			17,687			21,252			25,351			23,787
Accrued compensation		274			250			500			750			1,416
Tenant security deposits		1,696			1,795			1,765			1,757			1,808
Other liabilities: derivative termination value		1,995			3,080			2,394			2,269			2,076
Acquired unfavorable real estate leases, net		5,137			4,795			4,954			5,661			5,397
Total liabilities		224,537			175,075			229,903			201,796			218,492

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		-			-			-			-			-
Common stock		8			7			7			8			8
Additional paid-in capital		1,003,712			889,019			889,019			1,003,729			1,003,713
Accumulated other comprehensive loss		(1,995	)		(3,080	)		(2,394	)		(2,269	)		(2,076	)
Accumulated distributions in excess of accumulated earnings		(73,948	)		(42,513	)		(51,039	)		(57,489	)		(64,371	)
Total stockholders’ equity		927,777			843,433			835,593			943,979			937,274
Total liabilities and stockholders’ equity	$	1,152,314		$	1,018,508		$	1,065,496		$	1,145,775		$	1,155,766

	Three Months ended March 31						Twelve Months ended December 31
	2010			2009			2009			2008

Cash flows from operating activities:
Net income	$	5,562		$	7,808		$	27,872		$	31,959
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on assets sold		-			-			(424	)		-
Depreciation and amortization expense		9,284			7,981			36,561			30,444
Amortization of above market lease		716			793			3,359			4,283
Equity in earnings (losses) from non-consolidated REITs		(253	)		(792	)		(2,012	)		(2,747	)
Distributions from non-consolidated REITs		1,407			1,615			5,628			5,348
Increase in bad debt reserve		380			86			111			79
Changes in operating assets and liabilities:
Restricted cash		284			-			2			-
Tenant rent receivables		17			159			(564	)		64
Straight-line rents		(1,020	)		(374	)		(1,879	)		(1,406	)
Prepaid expenses and other assets		265			(171	)		907			(901	)
Accounts payable and accrued expenses		(3,917	)		(3,154	)		2,760			448
Accrued compensation		(1,142	)		(1,404	)		(238	)		90
Tenant security deposits		(112	)		(79	)		(66	)		-
Payment of deferred leasing commissions		(5,566	)		(162	)		(2,659	)		(3,353	)

Net cash provided by operating activities		5,905			12,306			69,358			64,308

Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases		(3,529	)		(3,295	)		(132,323	)		(78,396	)
Investment in non-consolidated REITs		-			-			(13,218	)		(10	)
Investment in related party mortgage loan receivable		(4,790	)		(3,600	)		(35,410	)		(1,125	)
Redemption of certificate of deposit		-			-			-			-
Changes in deposits on real estate assets		-			1,300			-			(1,300	)
Investment in assets held for syndication, net		2,005			86			8,159			12,236
Proceeds received on sales of real estate assets		-			-			672			-

Net cash used in investing activities		(6,314	)		(5,509	)		(172,120	)		(68,595	)

Cash flows from financing activities:
Distributions to stockholders		(15,139	)		(13,391	)		(55,313	)		(70,481	)
Proceeds from equity offering, net		(1	)		-			114,695			-
Purchase of treasury shares		-			-			-			-
Borrowings (repayments) under bank note payable, net		10,960			5,000			41,540			(17,282	)
Borrowings under term note payable		-			-			-			75,000
Deferred financing costs		-			-			-			(694	)

Net cash (used in) provided by financing activities		(4,180	)		(8,391	)		100,922			(13,457	)

Net decreases in cash and cash equivalents		(4,589	)		(1,594	)		(1,840	)		(17,744	)

Cash and cash equivalents, beginning of period		27,404			29,244			29,244			46,988

Cash and cash equivalents, end of period	$	22,815		$	27,650		$	27,404		$	29,244

	Three Months Ended March 31, 2010									Three Months Ended March 31, 2009
	Real			Investment						Real			Investment
	Estate			Banking			Total			Estate			Banking			Total
Revenue:
Rental Income	$	30,799		$	-		$	30,799		$	29,818		$	-		$	29,818
Syndication Fees		-			121			121			-			10			10
Transaction Fees		-			146			146			-			28			28
Management Fees & Interest Income		533			-			533			545			-			545
Other Income		9			-			9			18			-			18

Total Revenue		31,341			267			31,608			30,381			38			30,419

Expenses
Rental Operating Expenses		7,973			-			7,973			7,280			-			7,280
Real Estate Taxes and Insurance		5,246			-			5,246			4,829			-			4,829
Depreciaton and Amortization		9,186			33			9,219			7,887			27			7,914
Selling, general and administrative		1,447			724			2,171			983			1,025			2,008
Commissions and Broker Expenses		-			114			114			-			130			130
Interest & Commitment Fees		1,652			-			1,652			1,577			-			1,577
Total Expenses		25,504			871			26,375			22,556			1,182			23,738

Income before Equity, Interest and Taxes		5,837			(604	)		5,233			7,825			(1,144	)		6,681
Interest Income		8			-			8			34			2			36
Equity Income SARs		253			-			253			792			-			792
Income before Taxes		6,098			(604	)		5,494			8,651			(1,142	)		7,509
Income Taxes		57			(125	)		(68	)		65			(364	)		(299	)
Income from continuing operations		6,041			(479	)		5,562			8,586			(778	)		7,808
Income from discontinued operations		-			-			-			-			-			-
Gain on sale of assets		-			-			-			-			-			-
Net Income (loss)	$	6,041		$	(479	)	$	5,562		$	8,586		$	(778	)	$	7,808

Funds From Operations (FFO)*
Net Income	$	6,041		$	(479	)	$	5,562		$	8,586		$	(778	)	$	7,808
Gain on sale of assets, net		-			-			-			-			-			-
Equity in income of SARs		(253	)		-			(253	)		(792	)		-			(792	)
Cash received from SARs		1,407			-			1,407			1,615			-			1,615
Acquisition costs		-			-			-			-			-			-
Depreciation and amortization		9,901			33			9,934			8,680			27			8,707
Funds From Operations (FFO)*		17,096			(446	)		16,650			18,089			(751	)		17,338

EPS	$	0.08		$	(0.01	)	$	0.07		$	0.12		$	(0.01	)	$	0.11
FFO per Share*	$	0.21		$	-		$	0.21		$	0.26		$	(0.01	)	$	0.25

Weighted Average Shares								79,681									70,481

	Year Ended December 31, 2009									Year Ended December 31, 2008									Year Ended December 31, 2007
	Real			Investment						Real			Investment						Real			Investment
	Estate			Banking			Total			Estate			Banking			Total			Estate			Banking		Total
Revenue:
Rental Income	$	122,074		$	-		$	122,074		$	111,198		$	-		$	111,198		$	100,961		$	-	$	100,961
Syndication Fees		-			2,428			2,428			-			3,766			3,766			-			8,986		8,986
Transaction Fees		-			2,080			2,080			-			3,641			3,641			-			9,898		9,898
Management Fees & Interest Income		1,740			-			1,740			1,739			-			1,739			7,026			4		7,030
Other Income		61			-			61			72			-			72			83			35		118

Total Revenue		123,875			4,508			128,383			113,009			7,407			120,416			108,070			18,923		126,993

Expenses
Rental Operating Expenses		30,822			-			30,822			28,999			-			28,999			26,171			-		26,171
Real Estate Taxes and Insurance		19,228			-			19,228			17,740			-			17,740			16,535			-		16,535
Depreciation and Amortization		36,170			123			36,293			30,222			138			30,360			29,200			134		29,334
Selling, general and administrative		4,828			4,063			8,891			4,229			4,039			8,268			3,440			4,026		7,466
Commissions and Broker Expenses		-			1,801			1,801			100			2,051			2,151			-			4,737		4,737
Interest & Commitment Fees		6,570			-			6,570			4,921			-			4,921			7,684			-		7,684
Total Expenses		97,618			5,987			103,605			86,211			6,228			92,439			83,030			8,897		91,927

Income before Equity, Interest and Taxes		26,257			(1,479	)		24,778			26,798			1,179			27,977			25,040			10,026		35,066
Interest Income		93			4			97			709			36			745			2,317			60		2,377
Equity Income SARs		1,994			-			1,994			2,747			-			2,747			(464	)		-		(464	)
Income before Taxes		28,344			(1,475	)		26,869			30,254			1,215			31,469			26,893			10,086		36,979
Income Taxes		249			(828	)		(579	)		246			(736	)		(490	)		226			647		873
Income from continuing operations		28,095			(647	)		27,448			30,008			1,951			31,959			26,667			9,439		36,106
Income from discontinued operations		-			-			-			-			-			-			1,190			-		1,190
Gain on sale of assets		424			-			424			-			-			-			23,789			-		23,789
Net Income	$	28,519		$	(647	)	$	27,872		$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085


Funds From Operations (FFO)*
Net Income	$	28,519		$	(647	)	$	27,872		$	30,008		$	1,951		$	31,959		$	51,646		$	9,439	$	61,085
Gain on sale of assets, net		(424	)		-			(424	)		-			-			-			(23,789	)		-		(23,789	)
Equity in income of SARs		(2,012	)		-			(2,012	)		(2,747	)		-			(2,747	)		472			-		472
Cash received from SARs		5,628			-			5,628			5,348			-			5,348			1,806			-		1,806
Acquisition costs		643			-			643			-			-			-			-			-		-
Depreciation and amortization		39,529			123			39,652			34,505			138			34,643			35,340			135		35,475
Funds From Operations (FFO)*		71,883			(524	)		71,359			67,114			2,089			69,203			65,475			9,574		75,049

EPS	$	0.39		$	(0.01	)	$	0.38		$	0.43		$	0.03		$	0.45		$	0.73		$	0.13	$	0.86
FFO per Share*	$	0.98		$	-		$	0.98		$	0.95		$	0.03		$	0.98		$	0.93		$	0.14	$	1.06

Weighted Average Shares								73,001									70,481								70,651

Property NOI Cash*			Three Months		Year to date
			Ended		2010		Three Months Ended								Year Ended
		31-Mar-10
Region	Division	Sq Feet	31-Mar-10		2010 Total		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total

Eastern	Mideast	1,535	$	4,031	$	4,031	$	3,740	$	3,803	$	4,401	$	4,839	$	16,783

Midwest	East North Central	597		1,103		1,103		1,524		1,578		1,108		1,129		5,339
	West North Central	630		2,034		2,034		1,689		1,758		2,653		1,867		7,967
		1,227		3,137		3,137		3,213		3,336		3,761		2,996		13,306

South	Southeast	600		2,307		2,307		2,220		2,213		2,353		2,138		8,924
	Southwest	1,489		4,234		4,234		5,203		4,953		4,718		4,370		19,244
		2,089		6,541		6,541		7,423		7,166		7,071		6,508		28,168

West	Mountain	792		3,254		3,254		3,194		3,519		3,003		3,126		12,842
	Pacific	299		443		443		375		311		460		364		1,510
		1,091		3,697		3,697		3,569		3,830		3,463		3,490		14,352

Total		5,942	$	17,406	$	17,406	$	17,945	$	18,135	$	18,696	$	17,833	$	72,609


Property NOI GAAP*			Three Months		Year to date
			Ended			2010	Three Months Ended								Year Ended
		31-Mar-10
Region	Division	Sq Feet	31-Mar-10		2010 Total		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		2009 Total

Eastern	Mideast	1,535	$	4,666	$	4,666	$	3,749	$	3,726	$	4,483	$	5,232	$	17,190

Midwest	East North Central	597		1,110		1,110		1,570		1,592		1,161		1,191		5,514
	West North Central	630		2,164		2,164		1,606		1,667		2,626		2,016		7,915
		1,227		3,274		3,274		3,176		3,259		3,787		3,207		13,429

South	Southeast	600		2,356		2,356		2,391		2,343		2,477		2,245		9,456
	Southwest	1,489		4,404		4,404		5,265		4,828		4,820		4,643		19,556
		2,089		6,760		6,760		7,656		7,171		7,297		6,888		29,012

West	Mountain	792		3,229		3,229		3,334		3,548		3,019		3,114		13,015
	Pacific	299		497		497		404		339		515		425		1,683
		1,091		3,726		3,726		3,738		3,887		3,534		3,539		14,698

Total		5,942	$	18,426	$	18,426	$	18,319	$	18,043	$	19,101	$	18,866	$	74,329

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

	31-Mar-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09
Market Data:
Shares Outstanding		79,681			70,481			70,481			79,681			79,681
Closing market price per share	$	14.43		$	12.30		$	13.25		$	13.10		$	14.61
Market capitalization	$	1,149,793		$	866,913		$	933,869		$	1,043,817		$	1,164,135

Dividend Data:
Total dividends paid	$	15,139		$	13,391		$	13,391		$	13,391		$	15,140
Common dividend per share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.19
Quarterly dividend as a % of FFO*		91	%		76	%		76	%		76	%		79	%

Liquidity:
Cash and cash equivalents	$	22,815		$	27,650		$	24,542		$	26,385		$	27,404
Revolving credit facilities:
Gross potential available under current credit facilities		250,000			250,000			250,000			250,000			250,000
Less:
Outstanding balance		(119,968	)		(72,468	)		(124,038	)		(91,008	)		(109,008	)
Total Liquidity	$	152,847		$	205,182		$	150,504		$	185,377		$	168,396

	31-Mar-10	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09
Owned portfolio of commercial real estate:
Number of properties	32	32	32	31	29
Square feet	5,942,299	5,942,414	5,934,624	5,682,011	5,417,515
Leased percentage	85%	84%	90%	92%	93%

Investments in non-consolidated commercial real estate:
Number of properties	3	3	3	3	2
Square feet	1,995,041	1,995,041	1,995,041	1,994,686	1,461,224
Leased percentage	78%	78%	78%	78%	79%

Single Asset REITs (SARs) managed:
Number of properties	11	11	9	9	10
Square feet *	2,406,370	2,406,370	2,155,201	2,154,079	2,684,561
Leased percentage*	76%	91%	90%	87%	88%

Total owned, investments and managed properties:
Number of properties	46	46	44	43	41
Square feet *	10,343,710	10,343,825	10,084,866	9,830,776	9,563,300
Leased percentage*	82%	85%	88%	88%	90%

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	136,683
Stonecroft	Chantilly	VA	East	111,469
Fairview	Falls Church	VA	East	252,613
Innsbrook	Glen Allen	VA	East	303,745
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	116,197
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				5,942,299

Managed:
Name	City	State	Region	Square Feet
1441 Main Street	Columbia	SC	East	267,956
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
Lakeside Crossing II	Maryland Heights	MO	MidWest	116,000
Centre Pointe V	West Chester	OH	MidWest	135,936
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)				4,401,411

(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	31-Mar-10	31-Mar-10

East Region Total	9	1,536,315	25.9	$ 236,341	80.54%
East North Central Division	3	596,604	10.0	80,947	82.24%
West North Central	4	629,769	10.6	86,286	99.62%
Midwest Region Total	7	1,226,373	20.6	167,233	91.16%
Southeast	2	599,886	10.1	122,915	93.74%
Southwest	7	1,488,969	25.1	227,269	81.39%
South Region Total	9	2,088,855	35.2	350,184	84.93%
Mountain	4	791,507	13.3	127,199	92.57%
Pacific	3	299,249	5.0	35,998	71.12%
West Region Total	7	1,090,756	18.3	163,197	86.68%

Grand Total	32	5,942,299	100.0	$ 916,955	85.40%

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

						NBV (1)	% Leased
Region	Division	Name	City	State	S.F.	31-Mar-10	31-Mar-10

West	Pacific	Hillview Center	Milpitas	CA	36	4,228	100.0%
West	Pacific	Montague Business Center	San Jose	CA	146	17,109	100.0%
West	Mountain	380 Interlocken	Broomfield	CO	240	42,972	87.0%
West	Mountain	390 Interlocken	Broomfield	CO	242	43,034	98.5%
West	Mountain	Centennial Technology Center	Colorado Springs	CO	111	11,804	78.5%
West	Mountain	Greenwood Plaza	Englewood	CO	199	29,390	100.0%
South	Southeast	Blue Lagoon Drive	Miami	FL	213	47,881	100.0%
South	Southeast	One Overton Place	Atlanta	GA	387	75,034	90.3%
MidWest	East North Central	Northwest Point	Elk Grove Village	IL	177	29,772	100.0%
MidWest	East North Central	River Crossing	Indianapolis	IN	205	36,405	94.7%
East	Mideast	East Baltimore	Baltimore	MD	325	56,226	94.4%
East	Mideast	Bollman Place	Savage	MD	99	4,998	100.0%
MidWest	East North Central	Southfield Centre	Southfield	MI	215	14,771	55.7%
MidWest	West North Central	Eden Bluff - Eden Prairie	Eden Prairie	MN	153	14,537	100.0%
MidWest	West North Central	Timberlake	Chesterfield	MO	233	36,018	99.0%
MidWest	West North Central	Timberlake East	Chesterfield	MO	116	18,189	100.0%
MidWest	West North Central	Lakeside Crossing	Maryland Heights	MO	128	17,541	100.0%
East	Mideast	Park Seneca	Charlotte	NC	110	7,638	85.1%
East	Mideast	Forest Park	Charlotte	NC	62	6,366	100.0%
South	Southwest	Addison Circle	Addison	TX	294	47,907	61.3%
South	Southwest	Liberty Plaza	Addison	TX	219	25,207	77.8%
South	Southwest	Park Ten	Houston	TX	156	18,772	66.0%
South	Southwest	Eldridge Green	Houston	TX	248	43,342	100.0%
South	Southwest	Park Ten Phase II	Houston	TX	157	31,515	97.8%
South	Southwest	Willow Bend Office Center	Plano	TX	117	17,990	49.8%
South	Southwest	Collins Crossing	Richardson	TX	299	42,537	100.0%
East	Mideast	Meadow Point	Chantilly	VA	137	20,423	51.5%
East	Mideast	Stonecroft	Chantilly	VA	111	19,758	100.0%
East	Mideast	Loudoun Tech Center	Dulles	VA	136	17,673	100.0%
East	Mideast	Fairview	Falls Church	VA	253	61,293	100.0%
East	Mideast	Innsbrook	Glen Allen	VA	304	41,966	34.7%
West	Pacific	Federal Way	Federal Way	WA	117	14,661	26.1%
					5,942	$ 916,955	85.4%

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

													Average
			Year Built					Percentage Leased			Annualized Rent as of		Annualized
			or	Net Rentable		Leased		as of March 31,			as of March 31,		Rent per Leased
Property Name	City	State	Renovated	Square Feet		Sq. Ft. (a)		2010 (a)			2010 (b)		Square Feet (c)

Park Seneca	Charlotte	NC	1969		109,550		93,272		85.14	%		1,412,601	$	15.14
Forest Park	Charlotte	NC	1999		62,212		62,212		100.00	%		987,940		15.88
Meadow Point	Chantilly	VA	1999		136,683		70,357		51.47	%		186,732		2.65
Innsbrook	Glen Allen	VA	1999		303,745		105,497		34.73	%		1,022,846		9.70
East Baltimore	Baltimore	MD	1989		325,410		307,252		94.42	%		8,218,852		26.75
Loudoun Tech Center	Dulles	VA	1999		135,888		135,888		100.00	%		1,736,340		12.78
Bollman Place	Savage	MD	1984		98,745		98,745		100.00	%		611,232		6.19
Stonecroft	Chantilly	VA	2008		111,469		111,469		100.00	%		3,981,177		35.72
Fairview Park	Falls Church	VA	2001		252,613		252,613		100.00	%		6,644,676		26.30
East total					1,536,315		1,237,305		80.54	%		24,802,396		20.05
Southfield Centre	Southfield	MI	1977		214,697		119,566		55.69	%		1,310,319		10.96
Northwest Point	Elk Grove Village	IL	1999		176,848		176,848		100.00	%		3,334,487		18.86
River Crossing	Indianapolis	IN	1998		205,059		194,246		94.73	%		4,888,569		25.17
Timberlake	Chesterfield	MO	1999		232,766		230,347		98.96	%		4,685,165		20.34
Timberlake East	Chesterfield	MO	2000		116,197		116,197		100.00	%		2,692,054		23.17
Lakeside Crossing	Sl. Louis	MO	2008		127,778		127,778		100.00	%		2,947,839		23.07
Eden Bluff	Eden Praire	MN	2006		153,028		153,028		100.00	%		3,977,266		25.99
Midwest total					1,226,373		1,118,010		91.16	%		23,835,698		21.32
Blue Lagoon Drive	Miami	FL	2002		212,619		212,619		100.00	%		4,505,691		21.19
One Overton Place	Atlanta	GA	2002		387,267		349,728		90.31	%		8,998,529		25.73
Willow Bend Office Center	Plano	TX	1999		116,622		58,071		49.79	%		1,228,912		21.16
Park Ten	Houston	TX	1999		155,715		102,821		66.03	%		2,680,348		26.07
Addison Circle	Addison	TX	1999		293,787		180,006		61.27	%		4,335,336		24.08
Collins Crossing	Richardson	TX	1999		298,766		298,766		100.00	%		7,603,669		25.45
Eldridge Green	Houston	TX	1999		248,399		248,399		100.00	%		7,075,482		28.48
Park Ten Phase II	Houston	TX	2006		156,746		153,326		97.82	%		3,992,631		26.04
Liberty Plaza	Addison	TX	1985		218,934		170,424		77.84	%		3,370,903		19.78
South Total					2,088,855		1,774,160		84.93	%		43,791,500		24.68
Centennial Technology Center	Colorado Springs	CO	1999		110,730		86,910		78.49	%		1,382,703		15.91
380 Interlocken	Broomfield	CO	2000		240,184		208,844		86.95	%		6,511,207		31.18
Greenwood Plaza	Englewood	CO	2000		199,077		199,077		100.00	%		7,868,486		39.52
390 Interlocken	Broomfield	CO	2002		241,516		237,837		98.48	%		6,217,339		26.14
Hillview Center	Milpitas	CA	1984		36,288		36,288		100.00	%		532,421		14.67
Federal Way	Federal Way	WA	1982		117,010		30,592		26.14	%		550,275		17.99
Montague Business Center	San Jose	CA	1982		145,951		145,951		100.00	%		2,118,489		14.52
West Total					1,090,756		945,499		86.68	%		25,180,921		26.63

Grand Total					5,942,299		5,074,974		85.40	%	$	117,610,515	$	23.17

(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 March 2010 (including month-to-month leases) multiplied by 12.

Owned Property Capital Expenditures

(in thousands)

											Year
					For the Three Months Ended						Ended
	31-Mar-10		31-Mar-09		30-Jun-09		30-Sep-09		31-Dec-09		31-Dec-09
Tenant improvements	$	1,305	$	1,373	$	912	$	931	$	1,528	$	4,744
Deferred leasing costs		5,566		162		1,395		645		457		2,659
Building improvements		380		466		116		265		619		1,466
Total	$	7,251	$	2,001	$	2,423	$	1,841	$	2,604	$	8,869

20 Largest Tenants with Annualized Rent and Remaining Term

As of March 31, 2010
			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	Noblis, Inc.	1	82	252,613	4.25%	6,645	5.65%
2	CITGO Petroleum Corporation	1	143	248,399	4.18%	7,075	6.02%
3	Tektronix Texas, LLC	1	3	241,372	4.06%	6,277	5.34%
4	Burger King Corporation	1	102	212,619	3.58%	4,506	3.83%
5	New Era of Networks, Inc.	1	1	199,077	3.35%	7,868	6.69%
6	Citicorp Credit Services, Inc (b)	1	81	176,848	2.98%	3,334	2.84%
7	RGA Reinsurance Company	1	57	185,501	3.12%	3,645	3.10%
8	C.H. Robinson Worldwide, Inc.	1	135	153,028	2.58%	3,977	3.38%
9	Geisecke & Devrient America, Inc.	1	59	135,888	2.29%	1,736	1.48%
10	Murphy Exploration & Production Company	1	85	133,786	2.25%	3,515	2.99%
11	Monsanto Company	1	58	127,778	2.15%	2,948	2.51%
12	Vail Holdings, Inc. (c)	1	156	121,913	2.05%	3,209	2.73%
13	Northrop Grumman Information Technology, Inc.	1	97	111,469	1.88%	3,981	3.39%
14	Maines Paper & Food Service, Inc.	1	44	98,745	1.66%	611	0.52%
15	Amdocs, Inc.	1	14	91,928	1.55%	2,139	1.82%
16	County of Santa Clara	1	93	90,467	1.52%	1,347	1.15%
17	Ober, Kaler, Grimes & Shriver	1	12	89,885	1.51%	2,470	2.10%
18	International Business Machines Corp.	1	28	83,209	1.40%	978	0.83%
19	Corporate Holdings, LLC	1	48	81,818	1.38%	2,161	1.84%
20	Noble Royalties, Inc.	1	56	78,344	1.32%	2,045	1.74%
				2,914,687	49.05%	$ 70,468	59.92%

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at March 31, 2010 multiplied by 12.Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

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

(c)	On March 22, 2010, the Company signed a lease for an additional 38,000 square feet of space with one of its tenants, Vail Holdings, Inc.

Lease Expirations

with Annualized Rent per Square Foot

			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
2010	80	(b)	732,934	20,738,900	28.30	17.63%	17.63%
2011	38		460,349	10,163,857	22.08	8.64%	26.28%
2012	43		439,496	9,335,526	21.24	7.94%	34.21%
2013	31		361,867	6,154,653	17.01	5.23%	39.45%
2014	22		585,420	12,812,624	21.89	10.89%	50.34%
2015	18		482,830	9,487,251	19.65	8.07%	58.41%
2016	8		489,481	11,418,722	23.33	9.71%	68.12%
2017	6		523,658	12,302,877	23.49	10.46%	78.58%
2018	5		394,913	10,342,340	26.19	8.79%	87.37%
2019	2		43,392	1,224,355	28.22	1.04%	88.41%
2020 and thereafter	5		560,634	13,629,410	24.31	11.59%	100.00%
	258		5,074,974	117,610,515	23.17	100.00%
Vacancies as of 3/31/10			867,325
Total Portfolio Square Footage			5,942,299

(a)	Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at March 31, 2010 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	31 Leases are Month to Month

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-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			2009			2008			2007

Net income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258		$	27,872		$	31,958		$	61,085
(Gain) Loss on sale of assets		-			-			-			-			(424	)		(424	)		-			(23,789	)
GAAP income from non-consolidated REITs		(253	)		(792	)		(443	)		(475	)		(301	)		(2,011	)		(2,746	)		472
Distributions from non-consolidated REITs		1,407			1,615			1,523			1,119			1,371			5,628			5,348			1,806
Acquisition costs		-			-			248			391			4			643			-			-
Depreciation & amortization		9,934			8,707			11,216			9,561			10,167			39,651			34,644			35,475
Funds From Operations (FFO)		16,650			17,338			17,409			17,537			19,075			71,359			69,204			75,049
Plus gains on sales of assets (GOS)		-			-			-			-			424			424			-			23,789
FFO+GOS (Total Profits)	$	16,650		$	17,338		$	17,409		$	17,537		$	19,499		$	71,783		$	69,204		$	98,838

Per Share Data:
EPS	$	0.07		$	0.11		$	0.07		$	0.10		$	0.10		$	0.38		$	0.45		$	0.86
FFO		0.21			0.25			0.25			0.25			0.24			0.98			0.98			1.06
GOS		-			-			-			-			-			-			-			0.34
FFO+GOS		0.21			0.25			0.25			0.25			0.24			0.98			0.98			1.40

Weighted Average Shares (basic and diluted)		79,681			70,481			70,481			71,281			79,681			73,001			70,481			70,651

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.

Funds Available for Distribution (FAD)
Reconciliation and Definition

(in thousands, except per share amounts)

	For the three months ended:
	31-Mar-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09

Net income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258
(Gain) Loss on sale of assets		-			-			-			-			(424	)
GAAP income from non-consolidated REITs		(253	)		(792	)		(443	)		(475	)		(301	)
Distributions from non-consolidated REITs		1,407			1,615			1,522			1,119			1,371
Acquisition costs		-			-			248			391			4
Depreciation & amortization		9,934			8,707			11,217			9,561			10,167
Funds From Operations (FFO)		16,650			17,338			17,409			17,537			19,075
Plus gains on sales of assets (GOS)		-			-			-			-			424
FFO+GOS (Total Profits)	$	16,650		$	17,338		$	17,409		$	17,537		$	19,499

Funds Available for Distribution:
Funds From Operations (FFO)		16,650			17,338			17,409			17,537			19,075
Straight-line rent		(1,619	)		(374	)		(69	)		(405	)		(1,030	)
Capital expenditures		(380	)		(466	)		(115	)		(265	)		(619	)
Funds Available for Distribution (FAD)	$	14,651		$	16,498		$	17,225		$	16,867		$	17,426

Per Share Data:
EPS	$	0.07		$	0.11		$	0.07		$	0.10		$	0.10
FFO		0.21			0.25			0.25			0.25			0.24
GOS		-			-			-			-			0
FFO+GOS		0.21			0.25			0.25			0.25			0.24
FAD		0.18			0.23			0.24			0.24			0.22

Weighted Average Shares (basic and diluted)		79,681			70,481			70,481			71,281			79,681

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.

	For the three months ended:														Year Ended
	31-Mar-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09		31-Dec-09

Net income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258	$	27,872
Interest expense		1,652			1,577			1,599			1,744			1,650		6,570
Depreciation and amortization		9,934			8,707			11,216			9,561			10,167		39,651
Income taxes		(68	)		(299	)		(75	)		(270	)		65		(579	)
EBITDA		17,080			17,793			17,605			17,976			20,140		73,514

Interest expense	$	1,652		$	1,577		$	1,599		$	1,744		$	1,650	$	6,570
Scheduled principal payments (1)		-			-			-			-			-		-
Interest and scheduled principal payments	$	1,652		$	1,577		$	1,599		$	1,744		$	1,650	$	6,570

Interest coverage ratio		10.34			11.28			11.01			10.31			12.21		11.19

Debt service coverage ratio		10.34			11.28			11.01			10.31			12.21		11.19

(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:															2009
	31-Mar-10			31-Mar-09			30-Jun-09			30-Sep-09			31-Dec-09			Total

Net Income	$	5,562		$	7,808		$	4,865		$	6,941		$	8,258		$	27,872
Add (deduct):
Investment banking segment net loss (income)		479			778			346			625			(1,103	)		646
Gain on sale of assets		-			-			-			-			(424	)		(424	)
Management fees (before elimination)		(484	)		(425	)		(398	)		(402	)		(408	)		(1,633	)
Depreciation and Amortization		9,184			7,887			10,200			8,768			9,314			36,169
Amortization of favorable leases		716			793			992			759			815			3,359
Selling, general and administrative		1,447			983			1,163			1,324			1,359			4,829
Interest expense		1,652			1,577			1,599			1,744			1,650			6,570
Interest income		(338	)		(347	)		(136	)		(170	)		(278	)		(931	)
Equity in earnings of nonconsolidated REITs		(253	)		(792	)		(443	)		(475	)		(283	)		(1,993	)
Non-property specific income and expenses, net		461			57			(145	)		(13	)		(34	)		(135	)
GAAP Property NOI		18,426			18,319			18,043			19,101			18,866			74,329
Straight-line rent		(1,020	)		(374	)		92			(405	)		(1,033	)		(1,720	)
Cash Property NOI	$	17,406		$	17,945		$	18,135		$	18,696		$	17,833		$	72,609

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
(f) 781-246-2807		InvestorRelations@franklinstreetproperties.com
www.franklinstreetproperties.com

Common Stock Data (NYSE Amex: FSP)
	For the Three Months Ended
	31-Mar-10	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09
High Price	14.82	15.36	15.20	14.84	14.88
Low Price	11.81	10.35	12.00	11.43	9.57
Closing Price, at the end of the quarter	14.43	14.61	13.10	13.25	12.30
Dividends paid per share – quarterly	0.19	0.19	0.19	0.19	0.19
Closing dividend yield – annualized	5.27%	5.20%	5.80%	5.74%	6.18%
Common shares outstanding (millions)	79.68	79.68	79.68	70.48	70.48

Timing

Quarterly results are expected to be announced during the week ending on these dates:

First Quarter:	6-May-11	Third Quarter:	5-Nov-10
Second Quarter:	6-Aug-10	Fourth Quarter:	25-Feb-11

Year	Total Square Feet	% of Square Feet Commercial

2010	732,934	12.3%
2011	460,349	7.8%
2012	439,496	7.4%
2013	361,867	6.1%
2014	585,420	9.9%
2015	482,830	8.1%
2016	489,481	8.2%
2017	523,658	8.8%
2018	394,913	6.6%
2019	43,392	0.7%
2020	75,587	1.3%
2021	153,028	2.6%
2022	248,399	4.2%
2023	83,620	1.4%
Vacant	867,325	14.6%

Total	5,942,299	100.0%