Press Release

Franklin Street Properties Corp. Announces Second Quarter 2011 Results

Company Release - 8/2/2011 4:01 PM ET

WAKEFIELD, MA -- (MARKET WIRE) -- 08/02/11 -- 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 $20.1 million or $0.25 per share for the second quarter ended June 30, 2011. The Company also announced Net Income of $10.4 million and Earnings Per Share (EPS) of $0.13 for the second 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 June 30,   Six Months Ended June 30,
                   ---------------------------- ----------------------------
(in 000's except                      Increase                     Increase
 per share data)     2011     2010   (Decrease)   2011     2010   (Decrease)
                   -------- -------- ---------- -------- -------- ----------

Net Income         $ 10,381 $  5,954 $    4,427 $ 35,148 $ 11,516 $   23,632
                   ======== ======== ========== ======== ======== ==========

FFO                $ 20,140 $ 16,702 $    3,438 $ 36,390 $ 33,352 $    3,038
GOS                   2,346        -      2,346   21,939        -     21,939
                   -------- -------- ---------- -------- -------- ----------
FFO+GOS            $ 22,486 $ 16,702 $    5,784 $ 58,329 $ 33,352 $   24,977
                   ======== ======== ========== ======== ======== ==========
Per Share Data:
EPS                $   0.13 $   0.07 $     0.06 $   0.43 $   0.14 $     0.29
FFO                $   0.25 $   0.21 $     0.04 $   0.45 $   0.42 $     0.03
GOS                $   0.03 $      - $     0.03 $   0.27 $      - $     0.27
FFO+GOS            $   0.28 $   0.21 $     0.07 $   0.72 $   0.42 $     0.30

Weighted average
 shares (diluted)    81,437   79,681      1,756   81,437   79,681      1,756
                   -------- -------- ---------- -------- -------- ----------

Comparing results for the second quarter of 2011 to 2010, Net Income and EPS increased $4.4 million or $0.06 per share, FFO increased $3.4 million or $0.04 per share and FFO+GOS increased $5.8 million or $0.07 per share. The increase in FFO was primarily attributable to an increase in real estate FFO of $0.4 million and an increase in investment banking FFO of $3.0 million. The increase in real estate FFO was primarily from three new acquisitions made in March 2011, and the benefits of increased occupancy in the real estate portfolio at June 30, 2011, compared to June 30, 2010, and was partially offset by the sale of a property in Falls Church, Virginia in January 2011. The increase from investment banking resulted from greater sales of securities by our investment bank, which were $42.6 million for the second quarter of 2011 as compared to $8.4 million in the second quarter of 2010. Revenue from our investment bank is primarily based on the value of securities sales. The sale of a property in June 2011 located in Savage, Maryland contributed $2.3 million or $0.03 per share of GOS for the second quarter of 2011. There was no GOS during the second quarter of 2010.

Comparing results for the first half of 2011 to 2010, Net Income and EPS increased $23.6 million or $0.29 per share, FFO increased $3.0 million or $0.03 per share and FFO+GOS increased $25.0 million or $0.30 per share. The increase in FFO was primarily attributable to an increase in investment banking FFO of $3.6 million and was partially offset by a decrease in real estate FFO of $0.6 million. The decrease in real estate FFO was primarily a result of timing of the sale of a property in Falls Church, Virginia in January 2011, for which proceeds were not reinvested until March of 2011, compared to results in the first half of 2010, where we did not sell properties. The increase in investment banking FFO resulted from greater sales of securities by our investment bank, which were $50.1 million during the first half of 2011 as compared to $10.4 million for the first half of 2010. Revenue from our investment bank is primarily based on the value of securities sales. The sale of a property in January 2011 located in Falls Church, Virginia contributed $19.6 million and the sale of a property in June 2011 located in Savage, Maryland contributed $2.3 million, or in the aggregate, $0.27 per share of GOS for the first half of 2011. There was no GOS during the first half of 2010.

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

"For the second quarter of 2011, FSP's profits as represented by FFO + GOS totaled approximately $22.5 million or $0.28 per share, a decrease of $0.16 per share compared to the first quarter of 2011. Dividend distributions declared for the second quarter of 2011, which are payable on August 19, 2011, will be approximately $15.5 million or $0.19 per share.

"Our directly-owned real estate portfolio of 34 properties, totaling 6,747,815 square feet, was approximately 86.9% leased as of June 30, 2011, down from approximately 88.4% leased as of March 31, 2011. Our property portfolio is primarily suburban office assets. Most of the rental/leasing markets where our properties are located have stabilized, albeit at lower levels than before the recent downturn. It is our objective to move overall occupancy levels in the property portfolio to the 90+% range. We believe we can make meaningful progress toward that goal throughout the balance of 2011.

"Although there were no new property acquisitions completed in the second quarter, we continue to have such acquisitions as a major objective and expect to be able to acquire additional properties during the balance of the year.

"During the second quarter of 2011, our Investment Banking Group raised $42,575,000 of a $62,000,000 private placement offering that began in March of this year. There remains approximately $16,675,000 of that offering to complete. Total equity raised during the first half of 2011 was $50,075,000. We see our typical investor's confidence and interest in commercial real estate to be changeable and very dependent on broader capital market/stock market activity. Capital raising efforts in this business over any specific period of time are likely to remain unpredictable.

"On June 24, 2011, we sold our Bollman Place industrial property located in Savage, Maryland for approximately $7.5 million. The sale produced a gain of approximately $2.3 million or $0.03 per share. The property was our only industrial asset totaling approximately 98,745 square feet. We have continued to witness generally improving pricing and liquidity for quality properties in certain markets; and, consequently, we continue to consider some of our properties for possible disposition.

"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, conservative financial structure and expanded credit facility to take advantage of competitive tenant leasing requirements, attractive real estate acquisition and disposition opportunities and opportunistic investment banking situations that are presenting themselves as a result of the current cyclical softness in the economy and certain commercial property markets. Since the fourth quarter of 2007, we viewed 2010 as likely our most challenging year in dealing with a broad, financially-precipitated, cyclical economic downturn. As we begin the second half of 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 July 15, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended June 30, 2011 of $0.19 per share of common stock payable on August 19, 2011 to stockholders of record on July 29, 2011.

Real Estate Update

Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 34 properties and for three non-consolidated REITs that we had interests in as of June 30, 2011. 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. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently. 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     Six Months Ended
                                         June 30,              June 30,
                                   --------------------  --------------------
(In thousands, except per share
 amounts)                             2011       2010       2011       2010
                                   ---------  ---------  ---------  ---------

Net income                         $  10,381  $   5,954  $  35,148  $  11,516
   Less gain on sale of properties    (2,346)         -    (21,939)         -
   GAAP (income) loss from non-
    consolidated REITs                (1,166)      (380)    (2,938)      (633)
   Distributions from non-
    consolidated REITs                 1,215      1,324      2,982      2,731
   Acquisition costs of new
    properties                             9        129        278        129
   Depreciation & amortization        12,047      9,675     22,859     19,609
                                   ---------  ---------  ---------  ---------
Funds From Operations (FFO)           20,140     16,702     36,390     33,352
   Plus gains on sales of assets
    (GOS)                              2,346          -     21,939          -
                                   ---------  ---------  ---------  ---------
FFO+GOS                            $  22,486  $  16,702  $  58,329  $  33,352
                                   =========  =========  =========  =========

Per Share Data
EPS                                $    0.13  $    0.07  $    0.43  $    0.14
FFO                                $    0.25  $    0.21  $    0.45  $    0.42
GOS                                $    0.03  $       -  $    0.27  $       -
FFO+GOS                            $    0.28  $    0.21  $    0.72  $    0.42

Weighted average shares (basic and
 diluted)                             81,437     79,681     81,437     79,681
                                   =========  =========  =========  =========

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 August 3, 2011 at 10:00 a.m. (ET) to discuss the second quarter 2011 results. To access the call, please dial 1-866-788-0539, passcode 90544833. Internationally, the call may be accessed by dialing 1-857-350-1677, passcode 90544833. 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, 2010), 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, 2010, 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               For the
                                   Three Months Ended    Six Months Ended
                                        June 30,             June 30,
-------------------------------- --------------------- --------------------
(in thousands, except per share
 amounts)                           2011       2010       2011       2010
-------------------------------- ---------- ---------- ---------- ---------

Revenue:
   Rental                        $   33,605 $   27,046 $   64,705 $  55,634
Related party revenue:
   Syndication fees                   2,973        541      3,490       662
   Transaction fees                   2,685        753      3,376       899
   Management fees and interest
    income from loans                 1,150        559      1,958     1,091
Other                                     7          6         13        15
-------------------------------- ---------- ---------- ---------- ---------
     Total revenue                   40,420     28,905     73,542    58,301
-------------------------------- ---------- ---------- ---------- ---------

Expenses:
   Real estate operating
    expenses                          8,765      7,335     17,495    15,284
   Real estate taxes and
    insurance                         5,228      4,038      9,987     9,011
   Depreciation and amortization     12,067      8,485     22,850    16,945
   Selling, general and
    administrative                    2,396      2,559      4,764     4,730
   Commissions                        1,555        336      1,843       450
   Interest                           3,578      1,735      5,986     3,388
-------------------------------- ---------- ---------- ---------- ---------

     Total expenses                  33,589     24,488     62,925    49,808
-------------------------------- ---------- ---------- ---------- ---------

Income before interest income,
 equity in earnings of non-
 consolidated REITs and taxes         6,831      4,417     10,617     8,493
Interest income                           9          9         20        17
Equity in earnings of non-
 consolidated REITs                   1,166        380      2,134       633
-------------------------------- ---------- ---------- ---------- ---------

Income before taxes on income         8,006      4,806     12,771     9,143
Taxes on income (benefit)                68          5        118       (64)
-------------------------------- ---------- ---------- ---------- ---------

   Income from continuing
    operations                        7,938      4,801     12,653     9,207
-------------------------------- ---------- ---------- ---------- ---------

   Discontinued operations:
   Income from discontinued
    operations                           97      1,153        556     2,309
   Gain on sale of property less
    applicable income tax             2,346          -     21,939         -
-------------------------------- ---------- ---------- ---------- ---------
   Total discontinued operations      2,443      1,153     22,495     2,309
-------------------------------- ---------- ---------- ---------- ---------

Net income                       $   10,381 $    5,954 $   35,148 $  11,516
================================ ========== ========== ========== =========

Weighted average number of
 shares outstanding, basic and
 diluted                             81,437     79,681     81,437    79,681
================================ ========== ========== ========== =========

Earnings per share, basic and
 diluted, attributable to:
   Continuing operations         $     0.10 $     0.06 $     0.15 $    0.11
   Discontinued operations             0.03       0.01       0.28      0.03
-------------------------------- ---------- ---------- ---------- ---------
Net income per share, basic and
 diluted                         $     0.13 $     0.07 $     0.43 $    0.14
================================ ========== ========== ========== =========


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

                                                  June 30,     December 31,
(in thousands, except share and par value
 amounts)                                           2011           2010
---------------------------------------------- -------------  -------------
Assets:
Real estate assets, net                        $     976,131  $     862,698
Acquired real estate leases, less accumulated
 amortization of $23,215 and $19,294,
 respectively                                         81,455         40,578
Investment in non-consolidated REITs                  88,654         89,327
Assets held for syndication, net                      11,206          2,976
Assets held for sale                                       -         74,947
Cash and cash equivalents                             28,881         68,213
Restricted cash                                          459            420
Tenant rent receivables, less allowance for
 doubtful accounts of $1,235 and $1,600,
 respectively                                          1,846          1,922
Straight-line rent receivable, less allowance
 for doubtful accounts of $135 and $700,
 respectively                                         23,745         18,752
Prepaid expenses                                       1,255          1,654
Related party mortgage loan receivable                61,916         57,684
Other assets                                           5,760            685
Office computers and furniture, net of
 accumulated depreciation of $582 and $493,
 respectively                                            477            503
Deferred leasing commissions, net of
 accumulated amortization of $7,773 and
 $7,175, respectively                                 21,979         18,376
---------------------------------------------- -------------  -------------
      Total assets                             $   1,303,764  $   1,238,735
============================================== =============  =============

Liabilities and Stockholders' Equity:
Liabilities:
  Bank note payable                            $     345,000  $     209,968
  Term loan payable                                        -         74,850
  Accounts payable and accrued expenses               21,431         22,435
  Accrued compensation                                 1,070          1,803
  Tenant security deposits                             2,476          1,930
  Other liabilities: derivative termination
   value                                                 447          1,077
  Acquired unfavorable real estate leases,
   less accumulated amortization of $3,082 and
   $2,744, respectively                                6,950          5,114
---------------------------------------------- -------------  -------------
      Total liabilities                              377,374        317,177
---------------------------------------------- -------------  -------------

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, 81,437,405 and
   81,437,405 shares issued and outstanding,
   respectively                                            8              8
  Additional paid-in capital                       1,025,491      1,025,491
  Accumulated other comprehensive loss                  (447)        (1,077)
  Accumulated distributions in excess of
   accumulated earnings                              (98,662)      (102,864)
---------------------------------------------- -------------  -------------
    Total stockholders' equity                       926,390        921,558
---------------------------------------------- -------------  -------------
    Total liabilities and stockholders' equity $   1,303,764  $   1,238,735
============================================== =============  =============



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

                                                            For the
                                                        Six Months Ended
                                                            June 30,
                                                    -----------------------
(in thousands)                                         2011         2010
--------------------------------------------------- ----------  -----------
Cash flows from operating activities:
  Net income                                        $   35,148  $    11,516
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation and amortization expense              23,670       18,597
     Amortization of above market lease                    (62)       1,147
     Gain on sale of real estate assets                (21,939)           -
     Equity in earnings of non-consolidated REITs       (2,844)        (633)
     Distributions from non-consolidated REITs           2,982        2,731
     Increase (decrease) in bad debt reserve              (365)         480
  Changes in operating assets and liabilities:
     Restricted cash                                       (39)         275
     Tenant rent receivables, net                          441          402
     Straight-line rents, net                           (5,176)      (1,759)
     Prepaid expenses and other assets, net                914         (224)
     Accounts payable and accrued expenses                (726)      (4,139)
     Accrued compensation                                 (733)        (376)
     Tenant security deposits                              546          196
  Payment of deferred leasing commissions               (5,386)      (7,085)
--------------------------------------------------- ----------  -----------
         Net cash provided by operating activities      26,431       21,128
--------------------------------------------------- ----------  -----------
Cash flows from investing activities:
  Purchase of real estate assets, office computers
   and furniture                                      (128,054)     (45,848)
  Acquired real estate leases                          (45,032)           -
  Investments in non-consolidated REITs                    (10)           -
  Investment in related party mortgage loan
   receivable                                           (4,232)      (9,735)
  Changes in deposits on real estate assets                200            -
  Investment in assets held for syndication, net        (8,200)       4,858
  Proceeds received on sales of real estate assets      96,790            -
--------------------------------------------------- ----------  -----------
         Net cash used in investing activities         (88,538)     (50,725)
--------------------------------------------------- ----------  -----------
Cash flows from financing activities:
  Distributions to stockholders                        (30,946)     (30,279)
  Equity offering costs                                    (90)          (1)
  Borrowings under bank note payable                   345,000       53,960
  Repayment of bank note payable                      (209,968)           -
  Repayment of term loan payable                       (74,850)           -
  Deferred financing costs                              (5,389)           -
  Swap termination payment                                (982)           -
--------------------------------------------------- ----------  -----------
         Net cash provided by (used in) financing
          activities                                    22,775       23,680
--------------------------------------------------- ----------  -----------
Net decrease in cash and cash equivalents              (39,332)      (5,917)
Cash and cash equivalents, beginning of period          68,213       27,404
--------------------------------------------------- ----------  -----------
Cash and cash equivalents, end of period            $   28,881  $    21,487
=================================================== ==========  ===========


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

                 Commercial portfolio lease expirations (1)
                            As of June 30, 2011

                                                      Total        % of
                       Year                        Square Feet   Portfolio
------------------------------------------------- ------------ ------------
                       2011                            203,228          3.0%
                       2012                            297,239          4.4%
                       2013                            412,196          6.1%
                       2014                            423,693          6.3%
                       2015                            789,042         11.7%
                  Thereafter (2)                     4,622,417         68.5%
                                                  ------------ ------------
                                                     6,747,815        100.0%
                                                  ============ ============

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

(2) Includes 886,825 square feet of current vacancies.



(dollars & square
 feet in 000's)                        As of June 30, 2011
                      -----------------------------------------------------
                         # of                  % of      Square      % of
State                 Properties Investment Portfolio     Feet    Portfolio
--------------------- ---------- ---------- ---------  ---------- ---------

Texas                          9 $  285,547      29.3%      1,906      28.3%
Colorado                       4    124,843      12.8%        789      11.7%
Virginia                       4    100,531      10.3%        696      10.3%
Minnesota                      2     37,934       3.9%        627       9.3%
Missouri                       3     69,084       7.1%        477       7.1%
Maryland                       1     54,938       5.6%        325       4.8%
Georgia                        1     72,714       7.4%        387       5.7%
Michigan                       1     15,013       1.5%        215       3.2%
Florida                        1     46,394       4.8%        213       3.2%
Indiana                        1     35,212       3.6%        205       3.0%
Illinois                       1     28,142       2.9%        177       2.6%
California                     2     21,743       2.2%        182       2.7%
North Carolina                 3     69,543       7.1%        431       6.4%
Washington                     1     14,493       1.5%        117       1.7%
                      ---------- ---------- ---------  ---------- ---------
                              34 $  976,131     100.0%      6,747     100.0%
                      ========== ========== =========  ========== =========


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

Capital Expenditures
Owned Portfolio                                        Six Months Ended
                                                 ---------------------------
(in thousands)                                     30-Jun-11     30-Jun-10
                                                 ------------- -------------

Tenant improvements                              $       5,721 $       2,240
Deferred leasing costs                                   5,386         7,085
Building improvements                                    1,325           878
                                                 ------------- -------------
                                                 $      12,432 $      10,203
                                                 ============= =============



Square foot & leased percentages                   June 30,    December 31,
                                                     2011          2010
                                                 ------------  ------------

Owned portfolio of commercial real estate
  Number of properties (1)                                 34            33
  Square feet                                       6,747,815     6,422,357
  Leased percentage                                        87%           86%

Investments in non-consolidated REITs
  Number of properties                                      3             3
  Square feet                                       1,996,457     1,995,913
  Leased percentage                                        82%           77%

Single Asset REITs (SARs) managed
  Number of properties                                     13            12
  Square feet                                       3,322,569     2,915,896
  Leased percentage                                        79%           75%

Total owned, investments & managed properties
  Number of properties                                     50            48
  Square feet                                      12,066,841    11,334,166
  Leased percentage                                        84%           81%

(1) Includes asset held for sale at 12/31/2010

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

                                              Square   % Leased  % Interest
Single Asset REIT name    City        State    Feet   30-Jun-11     Held
------------------------- ----------- ----- --------- ---------  ----------
FSP 303 East Wacker Drive
 Corp.                    Chicago     IL      844,953      94.0%       43.7%
FSP Grand Boulevard Corp. Kansas City MO      532,472      76.4%       27.0%
FSP Phoenix Tower Corp.   Houston     TX      619,032      71.5%        4.6%
                                            --------- ---------
                                            1,996,457      82.3%
                                            --------- ---------



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

(in 000's)

                                           Q2       Q3       Q4       Q1
Revenue:                                  2010     2010     2010     2011
                                        -------  -------  -------  --------
  Rental                                $27,046  $29,222  $29,782  $ 31,100
  Related party revenue:
    Syndication fees                        541       20    1,862       517
    Transaction fees                        753      246    1,582       691
    Management fees and interest income
     from loans                             559      630      719       808
  Other                                       6       20       54         6
--------------------------------------- -------  -------  -------  --------
      Total revenue                      28,905   30,138   33,999    33,122
--------------------------------------- -------  -------  -------  --------

Expenses:
  Real estate operating expenses          7,335    8,714    9,602     8,730
  Real estate taxes and insurance         4,038    4,636    4,430     4,759
  Depreciation and amortization           8,485    9,655    9,729    10,783
  Selling, general and administrative     2,559    2,074    2,482     2,368
  Commissions                               336       16    1,011       288
  Interest                                1,735    1,892    2,004     2,408
--------------------------------------- -------  -------  -------  --------
      Total expenses                     24,488   26,987   29,258    29,336
--------------------------------------- -------  -------  -------  --------


  Income before interest income, equity
   in earnings in non-consolidated
   REITs                                  4,417    3,151    4,741     3,786
  Interest income                             9        4        4        11
  Equity in earnings in non-
   consolidated REITs                       380      404      229       968
--------------------------------------- -------  -------  -------  --------

  Income before taxes on income           4,806    3,559    4,974     4,765
  Taxes on income                             5      (37)     317        50
--------------------------------------- -------  -------  -------  --------

  Income from continuing operations       4,801    3,596    4,657     4,715
  Income from discontinued operations     1,153    1,161    1,163       459
--------------------------------------- -------  -------  -------  --------

  Income before gain on sale of
   properties                             5,954    4,757    5,820     5,174
  Gain on sale of assets                      -        -        -    19,593
--------------------------------------- -------  -------  -------  --------
  Net income                            $ 5,954  $ 4,757  $ 5,820  $ 24,767
======================================= =======  =======  =======  ========

FFO and FFO+GOS calculations:

Net income                              $ 5,954  $ 4,757  $ 5,820  $ 24,767
--------------------------------------- -------  -------  -------  --------
  (Gain) Loss on sale of assets               -        -        -   (19,593)
  GAAP income from non-consolidated
   REITs                                   (380)    (404)    (153)   (1,772)
  Distributions from non-consolidated
   REITs                                  1,324    1,192    1,247     1,767
  Acquisition costs of new properties       129       (4)       -       269
  Depreciation of real estate and
   intangible amortization                9,675   10,510   10,605    10,812
--------------------------------------- -------  -------  -------  --------
Funds From Operations (FFO)              16,702   16,051   17,519    16,250
  Plus gains on sales of assets               -        -        -    19,593
--------------------------------------- -------  -------  -------  --------
FFO+GOS                                 $16,702  $16,051  $17,519  $ 35,843
======================================= =======  =======  =======  ========




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


                                                %     First     %     Second
                                              Leased Quarter  Leased Quarter
                                               (1)   Average   (1)   Average
                                              as of     %     as of     %
                                     Square  31-Mar-  Leased 30-Jun-  Leased
    Property Name      Location       Feet      11     (2)      11     (2)
   --------------- --------------- --------- ------- ------- ------- -------

1  PARK SENECA     Charlotte, NC     109,550  78.5%   78.5%   80.1%   79.1%
2  HILLVIEW CENTER Milpitas, CA       36,288  100.0%  100.0%  100.0%  100.0%
3  SOUTHFIELD      Southfield, MI    214,697  61.1%   61.0%   39.2%   41.7%
4  FOREST PARK     Charlotte, NC      62,212  77.5%   77.5%   100.0%  85.0%
5  CENTENNIAL      Colorado
                   Springs, CO       110,730  66.9%   66.9%   66.9%   66.9%
6  MEADOW POINT    Chantilly, VA     138,537  100.0%  98.6%   100.0%  100.0%
7  TIMBERLAKE      Chesterfield,
                   MO                232,766  97.7%   97.7%   97.7%   97.7%
8  FEDERAL WAY     Federal Way, WA   117,010  42.0%   38.5%   42.0%   42.0%
9  NORTHWEST POINT Elk Grove
                   Village, IL       176,848  100.0%  100.0%  100.0%  100.0%
10 TIMBERLAKE EAST Chesterfield,
                   MO                116,197  100.0%  100.0%  100.0%  100.0%
11 PARK TEN        Houston, TX       155,715  98.8%   95.4%   98.8%   98.8%
12 MONTAGUE        San Jose, CA      145,951  100.0%  100.0%  100.0%  100.0%
13 ADDISON         Addison, TX       293,787  95.8%   95.8%   95.8%   95.8%
14 COLLINS         Richardson, TX
    CROSSING                         298,766  79.1%   79.1%   79.7%   79.3%
15 GREENWOOD PLAZA Englewood, CO     197,527  60.1%   60.1%   54.3%   58.2%
16 RIVER CROSSING  Indianapolis,
                   IN                205,059  93.8%   93.8%   93.5%   93.4%
17 LIBERTY PLAZA   Addison, TX       218,934  75.6%   74.3%   75.6%   75.6%
18 INNSBROOK       Glen Allen, VA    310,060  60.8%   61.0%   63.7%   67.3%
19 380 INTERLOCKEN Broomfield, CO    240,184  85.1%   85.1%   85.1%   85.1%
20 BLUE LAGOON     Miami, FLA        212,619  100.0%  100.0%  100.0%  100.0%
21 ELDRIDGE GREEN  Houston, TX       248,399  100.0%  100.0%  100.0%  100.0%
22 WILLOW BEND     Plano, TX         116,622  67.0%   63.2%   83.1%   76.8%
23 ONE OVERTON     Atlanta, GA
    PARK                             387,267  92.4%   92.4%   91.1%   91.5%
24 390 INTERLOCKEN Broomfield, CO    241,516  95.9%   95.9%   95.9%   95.9%
25 EAST BALTIMORE  Baltimore, MD     325,445  84.5%   84.3%   55.7%   55.5%
26 PARK TEN PHASE  Houston, TX
    II                               156,746  100.0%  99.1%   100.0%  100.0%
27 LAKESIDE        Maryland
    CROSSING I     Heights, MO       127,778  100.0%  100.0%  100.0%  100.0%
28 LOUDOUN TECH    Dulles, VA        135,888  100.0%  100.0%  100.0%  100.0%
29 4807 STONECROFT Chantilly, VA     111,469  100.0%  100.0%  100.0%  100.0%
30 EDEN BLUFF      Eden Prairie,
                   MN                153,028  100.0%  100.0%  100.0%  100.0%
31 121 SOUTH       Minneapolis, MN
    EIGHTH ST                        473,979  92.2%   92.2%   92.5%   92.1%
32 EMPEROR         Durham, NC
    BOULEVARD                        259,531  100.0%  100.0%  100.0%  100.0%
33 LEGACY TENNYSON Plano, TX
    CTR                              202,600  100.0%  100.0%  100.0%  100.0%
34 ONE LEGACY      Plano, TX         214,110  89.7%   89.7%   100.0%  94.6%

                                   --------- ------- ------- ------- -------
   TOTAL WEIGHTED AVERAGE (3)      6,747,815  88.4%   87.4%   86.9%   86.9%
                                   --------- ------- ------- ------- -------

(1) % Leased as of month's end 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) First & Second Quarter Totals include Bollman Place (98,745 sf) located in Savage, Maryland, which was sold in June 2011.

              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 June 30, 2011
                                                                      % of
                      Tenant                      Sq Ft   SIC Code Portfolio
   -------------------------------------------- --------- -------- ---------
1  TCF National Bank                              267,470    60         4.0%
2  Quintiles Transnational Corp                   259,531    87         3.8%
3  CITGO Petroleum Corporation                    248,399    29         3.7%
4  Burger King Corporation                        212,619    58         3.1%
5  Denbury Onshore LLC                            202,600    13         3.0%
6  RGA Reinsurance Company                        185,501    63         2.7%
7  Citicorp Credit Services, Inc                  176,848    61         2.6%
8  C.H. Robinson Worldwide, Inc                   153,028    47         2.3%
9  SunTrust Bank                                  150,142    60         2.2%
10 Murphy Exploration & Production Company        144,677    13         2.1%
11 Giesecke & Devrient America, Inc.              135,888    73         2.0%
12 Monsanto Company                               127,778    28         1.9%
13 Vail Holdings, Inc.                            121,913    79         1.8%
14 Northrop Grumman Systems Corporation           111,469    73         1.7%
15 Alliance Data Systems                           96,749    51         1.4%
16 Federal National Mortgage Association           92,358    61         1.4%
17 Amdocs, Inc                                     91,928    73         1.4%
18 County of Santa Clara                           90,467    91         1.3%
19 VCE Company, LLC                                85,650    81         1.3%
20 Argo Data Resource Corporation                  85,641    73         1.3%
                                                ---------          ---------
   Total                                        3,040,656              45.0%
                                                ---------          ---------
              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

Source: Franklin Street Properties Corp.