Press Release

Franklin Street Properties Corp. Announces Third Quarter 2010 Results

Company Release - 11/2/2010 4:05 PM ET

WAKEFIELD, MA -- (MARKET WIRE) -- 11/02/10 -- Franklin Street Properties Corp. (the "Company," "FSP," "we" or "our") (NYSE Amex: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $16.1 million or $0.20 per share for the third quarter ended September 30, 2010. The Company also announced Net Income of $4.8 million and Earnings Per Share (EPS) of $0.06 for the third quarter and provided an update on other activities.

The Company evaluates its performance based on Net Income, EPS, FFO, Gains on Sales (GOS) and FFO+GOS, and believes each is an important measure. A reconciliation of Net Income to FFO and FFO+GOS, which are non-GAAP financial measures, is provided on page 4 of this press release.

                      Three Months Ended           Nine Months Ended
                         September 30,                September 30,
                ----------------------------- -----------------------------
(in 000's except                   Increase                      Increase
 per share data)  2010     2009   (Decrease)    2010     2009   (Decrease)
                -------- -------- ----------  -------- -------- ----------

Net Income      $  4,757 $  6,941 $   (2,184) $ 16,273 $ 19,614 $   (3,341)
                ======== ======== ==========  ======== ======== ==========

FFO             $ 16,052 $ 17,537 $   (1,485) $ 49,404 $ 52,284 $   (2,880)
GOS                    -        -          -         -        -          -
                -------- -------- ----------  -------- -------- ----------
FFO+GOS         $ 16,052 $ 17,537 $   (1,485) $ 49,404 $ 52,284 $   (2,880)
                ======== ======== ==========  ======== ======== ==========
Per Share Data:
EPS             $   0.06 $   0.10 $    (0.04) $   0.20 $   0.28 $    (0.08)
FFO             $   0.20 $   0.25 $    (0.05) $   0.62 $   0.74 $    (0.12)
GOS             $      - $      - $        -  $      - $      - $        -
FFO+GOS         $   0.20 $   0.25 $    (0.05) $   0.62 $   0.74 $    (0.12)

Weighted average
 shares
 (diluted)        79,751   71,281      8,470    79,704   70,750      8,954
                -------- -------- ----------  -------- -------- ----------

Comparing results for the third quarter of 2010 to the same period in 2009, Net Income and EPS decreased by $2.2 million or $.04 per share; and FFO decreased by $1.5 million or $0.05 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $1.7 million and was partially offset by an increase in investment banking FFO of $0.2 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio during the third quarter of 2010 compared to the third quarter of 2009. The increase in investment banking FFO resulted from greater sales of securities by our investment bank, which were $0.3 million in the third quarter of 2010 as we closed two syndications, compared to no sales by our investment bank for the third quarter of 2009. Revenue from our investment bank is primarily based on the value of securities sales. There was no GOS during the third quarters of 2010 or 2009.

Comparing results for the first nine months of 2010 to 2009, Net Income and EPS decreased by $3.3 million or $0.08 per share; and FFO decreased by $2.9 million or $0.12 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $4.1 million and was partially offset by an increase in investment banking FFO of $1.2 million. The decrease in real estate FFO was primarily a result of decreased occupancy in the real estate portfolio during the first nine months of 2010 compared to the first nine months of 2009; and a $0.3 million decrease in distributions received from investments in our non-consolidated REITs. The increase in investment banking FFO resulted from greater sales of securities by our investment bank, which were $10.7 million during the first nine months of 2010 as compared to $0.6 million by our investment bank for the first nine months of 2009. Revenue from our investment bank is primarily based on the value of securities sales. There was no GOS during the first nine months of 2010 or 2009.

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

"For the third quarter of 2010, FSP's profits as represented by FFO + GOS totaled approximately $16.1 million or $0.20 per share, a reduction of $0.01 per share compared to the second quarter of 2010. Dividend distributions declared for the third quarter of 2010, which are payable on November 19, 2010, will be approximately $15.2 million or $0.19 per share.

"For 2010, FSP's profit results have been under pressure primarily from increasing vacancy in the property portfolio created by large amounts of tenant lease expirations within a generally weak office market. Adding to this situation has been continuing lower levels of investment banking underwritings. The Company has anticipated and planned for the levels of business activity and financial results we are experiencing this year. The transactional nature, success and timing of our re-leasing efforts of existing vacancy and lease-roll in the portfolio will interplay with the timing of new property acquisitions and capital closings of private placement offerings through our investment bank to affect future FFO levels.

"Our directly-owned real estate portfolio of 33 properties was approximately 82% leased as of September 30, 2010 and approximately 84% leased as of December 31, 2009. Several of our properties have had significant lease-roll and consequential vacancy beginning in the fourth quarter of 2009 and continuing through the third quarter of 2010. As a result, we have experienced lower levels of rental income from these properties. However, assuming some level of continuing stability in the broader U.S. economic and employment picture, we believe that full-year 2010 is likely to mark the bottom of FSP's portfolio occupancy cycle. While the third quarter of 2010 was slow relative to actual leases being signed, prospective new tenant interest and activity at most of our properties continues to be meaningful and we remain optimistic about higher potential occupancies going into 2011.

"There were no new property acquisitions completed in the third quarter of 2010. The Company continues to work on additional property acquisitions for both direct purchase into the FSP portfolio and syndication through our Investment Banking Group. We would anticipate that current efforts will produce additional property acquisitions this year.

"During the third quarter of 2010 our Investment Banking Group did not generate any syndication investment opportunities. Consequently, equity sales for the quarter were only $0.3 million relating to two syndications we completed on July 9, 2010. The Investment Banking Group operated at a loss of about $0.4 million, or nearly $0.01 per share, for the third quarter of 2010. Currently we have one new $30 million private placement syndication open and we believe that we have better visibility for potential future syndication opportunities than we have had all year. While we believe that general investor confidence and interest in commercial real estate investing continues to slowly improve, capital raising efforts over any specific period of time will likely remain unpredictable.

"FSP did not have any properties listed for sale during the third quarter of 2010. Generally speaking, we continue to find the property sales environment challenged relative to both liquidity and pricing. However, we continue to witness improving pricing and liquidity in certain markets, extending a trend that began in the second half of 2009. Nationwide, the number of completed commercial real estate transactions still remains low by historical standards. We believe that both improving office property fundamentals as well as plentiful and attractive financing availability will likely be required to more meaningfully improve the market place for property dispositions. Since gain on sale (GOS) is an important part of our total return strategy, we intend to be active in property dispositions once the real estate cycle more fully establishes a pattern of improvement.

"We believe FSP continues to be in an excellent environment to position itself for meaningful future growth in profits and dividends. Our company will continue to use its capabilities and conservative financial structure to take advantage of competitive tenant leasing requirements, opportunistic investment banking situations and attractive real estate investment opportunities that are presenting themselves as a result of the current cyclical downturn in the economy and commercial property market. Since the fourth quarter of 2007 we have viewed 2010 as likely our most challenging year in dealing with a broad, financially-precipitated, cyclical, economic downturn. As we begin the fourth quarter of 2010 and look to 2011, we are optimistic that FSP has managed its major challenges, while taking advantage of positioning opportunities that traditionally only present themselves during severe economic downturns. We are very much looking forward to our future growth potential."

Dividend Announcement

On October 15, 2010, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended September 30, 2010 of $0.19 per share of common stock payable on November 19, 2010 to stockholders of record on October 29, 2010.

Real Estate Update

Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 33 properties and for three non-consolidated REITs that we have interests in as of September 30, 2010. The Company will also be filing a supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.franklinstreetproperties.com.

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

Reconciliation of Net Income to FFO
 and FFO+GOS:                       Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
(In thousands, except per share
 amounts)                             2010      2009      2010      2009
                                    --------  --------  --------  --------

Net income                          $  4,757  $  6,941  $ 16,273  $ 19,614
  (Gain) Loss on sale of properties        -         -         -         -
  GAAP income from non-consolidated
   REITs                                (404)     (475)   (1,037)   (1,710)
  Distributions from
   non-consolidated REITs              1,193     1,119     3,924     4,257
  Acquisition costs of new
   properties                             (4)      391       125       639
  Depreciation of real estate &
   intangible amortization            10,510     9,561    30,119    29,484
                                    --------  --------  --------  --------
Funds From Operations (FFO)           16,052    17,537    49,404    52,284
  Plus gains on sales of properties        -         -         -         -
                                    --------  --------  --------  --------
FFO+GOS                             $ 16,052  $ 17,537  $ 49,404  $ 52,284
                                    ========  ========  ========  ========

Per Share Data
EPS                                 $   0.06  $   0.10  $   0.20  $   0.28
FFO                                 $   0.20  $   0.25  $   0.62  $   0.74
GOS                                 $      -  $      -  $      -  $      -
FFO+GOS                             $   0.20  $   0.25  $   0.62  $   0.74

Weighted average shares (basic and
 diluted)                             79,751    71,281    79,704    70,750
                                    ========  ========  ========  ========

Today's news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.franklinstreetproperties.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

A conference call is scheduled for November 3, 2010 at 10:00 a.m. (ET) to discuss the third quarter 2010 results. To access the call, please dial 1-866-730-5771, passcode 37601430. Internationally, the call may be accessed by dialing 1-857-350-1595, passcode 37601430. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.franklinstreetproperties.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP's subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP, please visit our website at www.franklinstreetproperties.com.

Forward-Looking Statements

Statements made in this press release that state FSP's or management's intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2009), risks of a lessening of demand for the types of real estate owned by us, changes in government regulations, and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the "Risk Factors" set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.



                                     Franklin Street Properties Corp.
                                            Earnings Release
                                        Supplementary information
                                            Table of Contents


Franklin Street Properties Corp. Financial Results                      A-C
Real Estate Portfolio Summary Information                                D
Portfolio and Other Supplementary Information                            E
Quarterly Information                                                    F
Percentage of Leased Space                                               G
Largest 20 Tenants - FSP Owned Portfolio                                 H
Definition of Funds From Operations (FFO) and  FFO+GOS                   I


             Franklin Street Properties Corp. Financial Results
                         Supplementary Schedule A
                 Condensed Consolidated Income Statements
                                (Unaudited)



                                      For the Three        For the Nine
                                       Months Ended        Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
(in thousands, except per share
 amounts)                             2010      2009      2010      2009
                                    --------  --------  --------  --------
Revenue:
   Rental                           $ 31,368  $ 31,702  $ 91,428  $ 90,774
Related party revenue:
   Syndication fees                       20         -       682        39
   Transaction fees                      246         1     1,145       543
   Management fees and interest
    income from loans                    630       370     1,721     1,232
Other                                     20        19        35        55
                                    --------  --------  --------  --------
     Total revenue                    32,284    32,092    95,011    92,643
                                    --------  --------  --------  --------

Expenses:
   Real estate operating expenses      8,737     7,752    24,068    22,176
   Real estate taxes and insurance     4,839     5,364    14,403    14,879
   Depreciation and amortization      10,414     8,801    28,876    26,940
   Selling, general and
    administrative                     2,074     2,243     6,804     6,378
   Commissions                            16         8       466       178
   Interest                            1,892     1,744     5,280     4,920
                                    --------  --------  --------  --------

     Total expenses                   27,972    25,912    79,897    75,471
                                    --------  --------  --------  --------

Income before interest income,
 equity in earnings of
 non-consolidated REITs and taxes      4,312     6,180    15,114    17,172
Interest income                            4        16        21        88
Equity in earnings of
 non-consolidated REITs                  404       475     1,037     1,710
                                    --------  --------  --------  --------

Income before taxes on income          4,720     6,671    16,172    18,970
Income tax benefit                       (37)     (270)     (101)     (644)
                                    --------  --------  --------  --------

Net income                          $  4,757  $  6,941  $ 16,273  $ 19,614
                                    ========  ========  ========  ========

Weighted average number of shares
 outstanding, basic and diluted       79,751    71,281    79,704    70,750
                                    ========  ========  ========  ========

Net income per share, basic and
 diluted                            $   0.06  $   0.10  $   0.20  $   0.28
                                    ========  ========  ========  ========





            Franklin Street Properties Corp. Financial Results
                         Supplementary Schedule B
                  Condensed Consolidated Balance Sheets
                                (Unaudited)


(in thousands, except share and par value      September 30,  December 31,
 amounts)                                         2010           2009
                                              -------------  -------------
Assets:
Real estate assets, net                       $     932,689  $     921,833
Acquired real estate leases, less accumulated
 amortization of $22,344 and $34,592,
 respectively                                        53,344         44,757
Investment in non-consolidated REITs                 89,995         92,910
Assets held for syndication, net                          -          4,827
Cash and cash equivalents                            20,554         27,404
Restricted cash                                          55            334
Tenant rent receivables, less allowance for
 doubtful accounts of $1,540 and $620, respectively   2,123          1,782
Straight-line rent receivable, less allowance
 for doubtful accounts of $700 and $100,
 respectively                                        16,157         10,754
Prepaid expenses                                      2,511          2,594
Related party mortgage loan receivable               53,756         36,535
Other assets                                            852            844
Office computers and furniture, net of
 accumulated depreciation of $450 and $1,233,
 respectively                                           535            384
Deferred leasing commissions, net of
 accumulated amortization of $6,455, and
 $4,995, respectively                                16,626         10,808
                                              -------------  -------------
Total assets                                  $   1,189,197  $   1,155,766
                                              =============  =============

Liabilities and Stockholders' Equity:
Liabilities:
Bank note payable                             $     167,968  $     109,008
Term loan payable                                    75,000         75,000
Accounts payable and accrued expenses                25,064         23,787
Accrued compensation                                  1,334          1,416
Tenant security deposits                              1,922          1,808
Other liabilities: derivative termination
 value                                                1,416          2,076
Acquired unfavorable real estate leases, less
 accumulated amortization of $2,824, and
 $2,492, respectively                                 6,206          5,397
                                              -------------  -------------
       Total liabilities                            278,910        218,492
                                              -------------  -------------

Commitments and contingencies

Stockholders' Equity:
Preferred stock, $.0001 par value, 20,000,000
 shares authorized, none issued or
 outstanding                                              -              -
Common stock, $.0001 par value, 180,000,000
 shares authorized, 79,837,405 and 79,680,705
 shares issued and outstanding, respectively              8              8
Additional paid-in capital                        1,005,209      1,003,713
Accumulated other comprehensive loss                 (1,416)        (2,076)
Accumulated distributions in excess of
 accumulated earnings                               (93,514)       (64,371)
                                              -------------  -------------
  Total stockholders' equity                        910,287        937,274
                                              -------------  -------------
  Total liabilities and stockholders' equity  $   1,189,197  $   1,155,766
                                              =============  =============




            Franklin Street Properties Corp. Financial Results
                         Supplementary Schedule C
              Condensed Consolidated Statements of Cash Flows
                                (Unaudited)

                                                For the Nine Months Ended
                                                      September 30,
                                              ----------------------------
(in thousands)                                    2010           2009
                                              -------------  -------------
Cash flows from operating activities:
   Net income                                 $      16,273  $      19,614
   Adjustments to reconcile net income to net
    cash provided by operating activities:
        Depreciation and amortization expense        29,078         27,141
        Amortization of above market lease            1,243          2,544
        Equity in earnings of
         non-consolidated REITs                      (1,037)        (1,710)
        Distributions from non-consolidated
         REITs                                        3,923          4,257
        Increase in bad debt reserve                    920            111
   Changes in operating assets and liabilities:
        Restricted cash                                 279              5
        Tenant rent receivables                      (1,261)          (182)
        Straight-line rents, net                     (2,961)          (849)
        Prepaid expenses and other assets,
         net                                           (126)          (472)
        Accounts payable and accrued expenses           615          4,294
        Accrued compensation                            (82)          (904)
        Tenant security deposits                        114           (117)
   Payment of deferred leasing commissions           (7,894)        (2,202)
                                              -------------  -------------
                Net cash provided by
                 operating activities                39,084         51,530
                                              -------------  -------------
Cash flows from investing activities:
   Purchase of real estate assets, office
    computers and furniture                         (48,659)      (130,819)
   Investment in non-consolidated REITs                  (2)       (13,200)
   Investment in related party mortgage loan
    receivable                                      (17,221)       (22,139)
   Investment in assets held for syndication,
    net                                               4,858         13,017
                                              -------------  -------------
                Net cash used in investing
                 activities                         (61,024)      (153,141)
                                              -------------  -------------
Cash flows from financing activities:
   Distributions to stockholders                    (45,418)       (40,173)
   Proceeds from equity offering, net                 1,548        115,385
   Borrowings under bank note payable                58,960         23,540
                                              -------------  -------------
                Net cash provided by
                 financing activities                15,090         98,752
                                              -------------  -------------
Net decrease in cash and cash equivalents            (6,850)        (2,859)
Cash and cash equivalents, beginning of
 period                                              27,404         29,244
                                              -------------  -------------
Cash and cash equivalents, end of period      $      20,554  $      26,385
                                              =============  =============



                 Franklin Street Properties Corp. Earnings Release
                             Supplementary Schedule D
                     Real Estate Portfolio Summary Information
                            (Unaudited & Approximated)


                   Commercial portfolio lease expirations (1)
                           As of September 30, 2010

                                      Total           % of
                   Year            Square Feet     Portfolio
                   ----            -----------     ---------
                   2010                233,584           3.6%
                   2011                491,606           7.7%
                   2012                484,504           7.6%
                   2013                537,136           8.4%
                   2014                590,850           9.2%
                   2015                813,431          12.7%
               Thereafter (2)        3,266,188          50.8%
                                   -----------     ---------
                                     6,417,299         100.0%
                                   ===========     =========


(1) Percentages are determined based upon square footage of expiring
    commercial leases.
(2) Includes 1,126,660 square feet of current vacancies.


(dollars & square feet in 000's)
                                   As of September 30, 2010
                -----------------------------------------------------------
                   # of                    % of       Square       % of
State           Properties  Investment  Portfolio      Feet     Portfolio
                ----------- ----------- ----------  ----------- ----------
Texas                     7 $   224,670       24.1%       1,489       23.2%
Virginia                  5     161,008       17.3%         942       14.7%
Colorado                  4     126,156       13.5%         789       12.3%
Georgia                   1      74,282        8.0%         387        6.0%
Missouri                  3      70,977        7.6%         477        7.4%
Maryland                  2      60,750        6.5%         424        6.6%
Minnesota                 2      38,286        4.1%         628        9.8%
Florida                   1      47,282        5.1%         213        3.3%
Indiana                   1      36,004        3.9%         205        3.2%
Illinois                  1      29,120        3.1%         177        2.8%
California                2      21,161        2.3%         182        2.8%
Michigan                  1      14,678        1.6%         215        3.3%
Washington                1      14,437        1.5%         117        1.8%
North Carolina            2      13,878        1.5%         172        2.7%
                ----------- ----------- ----------  ----------- ----------
                         33 $   932,689      100.0%       6,417      100.0%
                =========== =========== ==========  =========== ==========


Property by type:
(dollars &
 square feet
 in 000's)                        As of September 30, 2010
                -----------------------------------------------------------
                   # of                    % of       Square       % of
Type            Properties  Investment  Portfolio      Feet     Portfolio
                ----------- ----------- ----------  ----------- ----------
Office                   32 $   927,750       99.5%       6,318       98.5%
Industrial                1       4,939        0.5%          99        1.5%
                ----------- ----------- ----------  ----------- ----------
                         33 $   932,689      100.0%       6,417      100.0%
                =========== =========== ==========  =========== ==========





            Franklin Street Properties Corp. Earnings Release
                         Supplementary Schedule E
              Portfolio and Other Supplementary Information
                        (Unaudited & Approximated)



              Capital Expenditures
               Owned Portfolio         Nine Months Ended
                                     ---------------------
               (in thousands)         30-Sep-10  30-Sep-09
                                     ---------- ----------

              Tenant improvements    $    5,874 $    3,217
              Deferred leasing costs      7,892      2,202
              Building improvements       1,549        846
                                     ---------- ----------
                                     $   15,315 $    6,265
                                     ========== ==========


Square foot & leased percentages              September 30,  December 31,
                                              -------------  -------------
                                                  2010           2009
                                              -------------  -------------

Owned portfolio of commercial real estate
         Number of properties                            33             32
         Square feet                              6,417,299      5,942,414
         Leased percentage                               82%            84%

Investments in non-consolidated commercial
 real estate
         Number of properties                             3              3
         Square feet                              1,998,519      1,995,041
         Leased percentage                               76%            78%

Single Asset REITs (SARs) managed
         Number of properties                            11             11
         Square feet*                             2,702,287      2,406,370
         Leased percentage                               73%            91%

Total owned, investments & managed properties
         Number of properties                            47             46
         Square feet*                            11,118,105     10,343,825
         Leased percentage                               79%            85%

  with approximately 295,891 square feet.


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


                                                                     %
                                            Square    % Leased   Interest
Single Asset REIT name     City     State    Feet    30-Sep-10     Held
                        ----------- ------ --------- ----------  ---------
FSP 303 East Wacker
 Drive Corp.            Chicago         IL   847,559      76.34%      43.7%
FSP Grand Boulevard
 Corp.                  Kansas City     MO   532,453      89.48%      27.0%
FSP Phoenix Tower Corp. Houston         TX   618,507      65.32%       4.6%
                                           --------- ----------
                                           1,998,519      76.43%
                                           --------- ----------




            Franklin Street Properties Corp. Earnings Release
              Supplementary Schedule F: Quarterly Information
                                (Unaudited)

(in 000's)
                                       Q2        Q1        Q4        Q3
Revenue:                              2010      2010      2009      2009
                                    --------  --------  --------  --------
   Rental                           $ 29,261  $ 30,799  $ 31,300  $ 31,702
   Related party revenue:
     Syndication fees                    541       121     2,389         -
     Transaction fees                    753       146     1,537         1
     Management fees and interest
      income from loans                  558       533       508       370
   Other                                   6         9         6        19
                                    --------  --------  --------  --------
                    Total revenue     31,119    31,608    35,740    32,092
                                    --------  --------  --------  --------

Expenses:
     Real estate operating expenses    7,358     7,973     8,646     7,752
     Real estate taxes and
      insurance                        4,318     5,246     4,349     5,364
     Depreciation and amortization     9,243     9,219     9,353     8,801
     Selling, general and
      administrative                   2,559     2,171     2,513     2,243
     Commissions                         336       114     1,623         8
     Interest                          1,736     1,652     1,650     1,744
                                    --------  --------  --------  --------
               Total expenses         25,550    26,375    28,134    25,912
                                    --------  --------  --------  --------

     Income before interest income,
      equity in earnings in
      non-consolidated REITs           5,569     5,233     7,606     6,180
     Interest income                       9         8         9        16
     Equity in earnings in
      non-consolidated REITs             380       253       284       475
                                    --------  --------  --------  --------

     Income before taxes on income     5,958     5,494     7,899     6,671
     Taxes on income                       4       (68)       65      (270)
                                    --------  --------  --------  --------

     Net income                     $  5,954  $  5,562  $  7,834  $  6,941
                                    ========  ========  ========  ========


FFO and FFO+GOS calculations:

Net income                          $  5,954  $  5,562  $  7,834  $  6,941
                                    --------  --------  --------  --------
     (Gain) Loss on sale of assets         -         -         -         -
     GAAP income from
      non-consolidated REITs            (380)     (253)     (301)     (475)
     Distributions from
      non-consolidated REITs           1,324     1,407     1,371     1,119
     Acquisition costs of new
      properties                         129         -         4       391
     Depreciation of real estate
      and intangible amortization      9,675     9,934    10,167     9,561
                                    --------  --------  --------  --------
Funds From Operations (FFO)           16,702    16,650    19,075    17,537
     Plus gains on sales of assets         -         -         -         -
                                    --------  --------  --------  --------
FFO+GOS                             $ 16,702  $ 16,650  $ 19,075  $ 17,537
                                    ========  ========  ========  ========





             Franklin Street Properties Corp. Earnings Release
                         Supplementary Schedule G
                        Percentage of Leased Space
                          (Unaudited & Estimated)


                                                                  First
                                                     % Leased    Quarter
                                                        as of    Average
                                             Square    3/31/10  % Leased
   Property Name           Location           Feet      (1)       (2)
   ---------------         --------         --------- --------  --------

1  PARK SENECA             Charlotte, NC      109,550     85.1%     85.2%
2  HILLVIEW CENTER         Milpitas, CA        36,288    100.0%    100.0%
3  SOUTHFIELD              Southfield, MI     214,697     55.7%     55.6%
4  BOLLMAN PLACE           Savage, MD          98,745    100.0%    100.0%
5  FOREST PARK             Charlotte, NC       62,212    100.0%    100.0%
6  CENTENNIAL              Colorado
                            Springs, CO       110,730     78.5%     78.5%
7  MEADOW POINT            Chantilly, VA      138,537     51.5%     50.7%
8  TIMBERLAKE              Chesterfield, MO   232,766     99.0%     99.0%
9  FEDERAL WAY             Federal Way, WA    117,010     26.1%     26.1%
10 NORTHWEST POINT         Elk Grove
                            Village, IL       176,848    100.0%    100.0%
11 TIMBERLAKE EAST         Chesterfield, MO   116,197    100.0%    100.0%
12 PARK TEN                Houston, TX        155,715     66.0%     63.4%
13 MONTAGUE                San Jose, CA       145,951    100.0%    100.0%
14 ADDISON                 Addison, TX        293,787     61.3%     61.3%
15 COLLINS CROSSING        Richardson, TX     298,766    100.0%    100.0%
16 GREENWOOD PLAZA         Englewood, CO      197,527    100.0%    100.0%
17 RIVER CROSSING          Indianapolis, IN   205,059     94.7%     94.7%
18 LIBERTY PLAZA           Addison, TX        218,934     77.8%     74.4%
19 INNSBROOK               Glen Allen, VA     303,745     34.7%     25.4%
20 380 INTERLOCKEN         Broomfield, CO     240,184     87.0%     87.0%
21 BLUE LAGOON             Miami, FLA         212,619    100.0%    100.0%
22 ELDRIDGE GREEN          Houston, TX        248,399    100.0%    100.0%
23 WILLOW BEND             Plano, TX          116,622     49.8%     49.8%
24 ONE OVERTON PARK        Atlanta, GA        387,267     90.3%     90.3%
25 390 INTERLOCKEN         Broomfield, CO     241,516     98.5%     98.5%
26 EAST BALTIMORE          Baltimore, MD      325,445     94.4%     94.7%
27 PARK TEN PHASE II       Houston, TX        156,746     97.8%     97.8%
28 LAKESIDE CROSSING I     Maryland
                            Heights, MO       127,778    100.0%    100.0%
29 LOUDOUN TECH            Dulles, VA         135,888    100.0%    100.0%
30 4807 STONECROFT         Chantilly, VA      111,469    100.0%    100.0%
31 EDEN BLUFF              Eden Prairie, MN   153,028    100.0%    100.0%
32 3150 FAIRVIEW PARK DR.  Falls Church, VA   252,613    100.0%    100.0%
33 121 SOUTH EIGHTH ST.(3) Minneapolis, MN    474,661      n/a       n/a
                                            --------- --------  --------
   TOTAL WEIGHTED AVERAGE                   6,417,299     85.4%     84.7%
                                            --------- --------  --------


                                                    Second          Third
                                           %Leased  Quarter %Leased Quarter
                                            as of   Average  as of  Average
                                          6/30/10   %Leased 9/30/10 %Leased
   Property Name           Location         (1)      (2)      (1)     (2)
   ---------------         --------       --------  ------  ------  ------

1  PARK SENECA             Charlotte, NC      84.4%   84.8%   84.0%   84.3%
2  HILLVIEW CENTER         Milpitas, CA      100.0%  100.0%  100.0%  100.0%
3  SOUTHFIELD              Southfield, MI     56.4%   55.9%   58.6%   57.6%
4  BOLLMAN PLACE           Savage, MD        100.0%  100.0%  100.0%  100.0%
5  FOREST PARK             Charlotte, NC     100.0%  100.0%  100.0%  100.0%
6  CENTENNIAL              Colorado
                            Springs, CO       78.5%   78.5%   66.9%   66.9%
7  MEADOW POINT            Chantilly, VA      80.6%   70.9%   97.9%   96.1%
8  TIMBERLAKE              Chesterfield, MO   99.0%   99.0%   99.0%   99.0%
9  FEDERAL WAY             Federal Way, WA    28.3%   26.9%   28.3%   28.3%
10 NORTHWEST POINT         Elk Grove
                            Village, IL      100.0%  100.0%  100.0%  100.0%
11 TIMBERLAKE EAST         Chesterfield, MO  100.0%  100.0%  100.0%  100.0%
12 PARK TEN                Houston, TX        49.8%   54.8%   48.2%   48.2%
13 MONTAGUE                San Jose, CA      100.0%  100.0%  100.0%  100.0%
14 ADDISON                 Addison, TX        92.7%   71.8%   95.8%   93.7%
15 COLLINS CROSSING        Richardson, TX    100.0%  100.0%   28.8%   28.8%
16 GREENWOOD PLAZA         Englewood, CO      30.6%   53.7%   26.6%   23.6%
17 RIVER CROSSING          Indianapolis, IN   94.7%   94.7%   97.5%   97.5%
18 LIBERTY PLAZA           Addison, TX        78.0%   77.7%   76.9%   77.6%
19 INNSBROOK               Glen Allen, VA     31.3%   31.3%   31.3%   31.3%
20 380 INTERLOCKEN         Broomfield, CO     89.7%   88.8%   85.1%   85.1%
21 BLUE LAGOON             Miami, FLA        100.0%  100.0%  100.0%  100.0%
22 ELDRIDGE GREEN          Houston, TX       100.0%  100.0%  100.0%  100.0%
23 WILLOW BEND             Plano, TX          49.8%   49.8%   55.5%   53.6%
24 ONE OVERTON PARK        Atlanta, GA        91.5%   91.0%   92.4%   92.5%
25 390 INTERLOCKEN         Broomfield, CO     98.3%   98.3%   98.3%   98.3%
26 EAST BALTIMORE          Baltimore, MD      95.3%   95.3%   94.8%   95.1%
27 PARK TEN PHASE II       Houston, TX        97.8%   97.8%   97.8%   97.8%
28 LAKESIDE CROSSING I     Maryland
                            Heights, MO      100.0%  100.0%  100.0%  100.0%
29 LOUDOUN TECH            Dulles, VA        100.0%  100.0%  100.0%  100.0%
30 4807 STONECROFT         Chantilly, VA     100.0%  100.0%  100.0%  100.0%
31 EDEN BLUFF              Eden Prairie, MN  100.0%  100.0%  100.0%  100.0%
32 3150 FAIRVIEW PARK DR.  Falls Church, VA  100.0%  100.0%  100.0%  100.0%
33 121 SOUTH EIGHTH ST.(3) Minneapolis, MN    89.8%   89.8%   92.1%   91.3%
                                          --------  ------  ------  ------
   TOTAL WEIGHTED AVERAGE                     85.3%   84.6%   82.4%   82.1%
                                          --------  ------  ------  ------


(1) Percentage leased as of month's end and includes all leases that expire
    on the last day of the quarter.
(2) Average quarterly percentage is the average of the end of the month
    leased percentage for each of the 3 months during the quarter.
(3) Property was acquired on June 29, 2010.





                Franklin Street Properties Corp. Earnings Release
                           Supplementary Schedule H
                   Largest 20 Tenants - FSP Owned Portfolio
                            (Unaudited & Estimated)

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


     As of September 30, 2010

                                                            SIC   % of
                     Tenant                         Sq Ft   Code Portfolio
     ----------------------------------------     --------- ---- ---------
1    TCF National Bank                        (1)   266,495   60       4.2%
2    Noblis, Inc.                                   252,613   54       3.9%
3    CITGO Petroleum Corporation              (2)   248,399   29       3.9%
4    Burger King Corporation                        212,619   58       3.3%
5    RGA Reinsurance Company                        185,501   63       2.9%
6    Citigroup Credit Services, Inc                 176,848   61       2.8%
7    C.H. Robinson Worldwide, Inc.                  153,028   47       2.4%
8    Geisecke & Devrient America, Inc.              135,888   73       2.1%
9    Murphy Exploration & Production Company        133,786   13       2.1%
10   Monsanto Company                               127,778   28       2.0%
11   Vail Holding Corp d/b/a Vail Resorts     (3)   121,913   79       1.9%
12   Northrop Grumman Information Technology, Inc.  111,469   73       1.7%
13   Maines Paper & Food Service, Inc.               98,745   51       1.5%
14   Federal National Mortgage Association    (4)    92,358   61       1.4%
15   Amdocs, Inc.                                    91,928   73       1.4%
16   County of Santa Clara                           90,467   91       1.4%
17   Ober Kaler Grimes & Shriver                     88,736   81       1.4%
18   ARGO Data Resource Corporation                  83,944   73       1.3%
19   International Business Machines Corp.           83,209   79       1.3%
20   Corporate Holdings, LLC                         81,818   67       1.3%
                                                  ---------      ---------
     Total                                        2,837,542           44.2%
                                                  ---------      ---------


(1) Property was acquired on June 29, 2010.
(2) On January 20, 2010, the Company signed a new lease at a Houston, Texas
    property, for approximately 248,000 square feet of space with one of
    its tenants, CITGO Petroleum Corporation, effectively extending the
    lease expiration from February 29, 2012 to February 28, 2022.
(3) On March 22, 2010, the Company signed a lease for an additional
    approximate 38,000 square feet of space with one of its tenants,
    Vail Holdings, Inc. through March 2019.  The remaining space of
    approximately 84,000 square feet is leased through March 2023.
(4) On June 7, 2010, Federal National Mortgage Association commenced
    a lease for approximately 92,000 square feet of space at an
    Addison, Texas property. The lease expires September 6, 2013.




                 Franklin Street Properties Corp. Earnings Release
                            Supplementary Schedule I
                    Definition of Funds From Operations ("FFO"),
                      and FFO plus Gains on Sales ("FFO+GOS")


The Company evaluates the performance of its reportable segments based on several measures including Funds From Operations ("FFO") and FFO plus Gains on Sales ("FFO+GOS") as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs. The Company defines FFO+GOS as FFO as defined above, plus gains (or losses) from sales of properties and provisions for assets held for sale, if applicable.

FFO and FFO+GOS should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company's financial performance, nor as alternatives to cash flows from operating activities (determined in accordance with GAAP), nor as measures of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs. Other real estate companies may define these terms in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO and FFO+GOS should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.

Contact:
John Demeritt
877-686-9496