Press Release

Franklin Street Properties Corp. Announces Third Quarter 2011 Results

Company Release - 11/1/2011 4:17 PM ET

WAKEFIELD, MA -- (MARKET WIRE) -- 11/01/11 -- 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 $16.4 million or $0.20 per share for the third quarter ended September 30, 2011. The Company also announced Net Income of $3.3 million and Earnings per Share (EPS) of $0.04 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 September    Nine Months Ended September
                             30,                            30,
               ------------------------------ ------------------------------
(in 000's
 except per                         Increase                       Increase
 share data)      2011      2010   (Decrease)    2011      2010   (Decrease)
               ------------------------------ ------------------------------

Net Income     $   3,314 $   4,757 $  (1,443) $  38,462 $  16,273 $   22,189
               ============================== ==============================

FFO            $  16,362 $  16,052 $     310  $  52,752 $  49,404 $    3,348
GOS                    -         -         -     21,939         -     21,939
               ------------------------------ ------------------------------
FFO+GOS        $  16,362 $  16,052 $     310  $  74,691 $  49,404 $   25,287
               ============================== ==============================
Per Share
 Data:
EPS            $    0.04 $    0.06 $   (0.02) $    0.47 $    0.20 $     0.27
FFO            $    0.20 $    0.20 $       -  $    0.65 $    0.62 $     0.03
GOS            $       - $       - $       -  $    0.27 $       - $     0.27
FFO+GOS        $    0.20 $    0.20 $       -  $    0.92 $    0.62 $     0.30

Weighted
 average
 shares
 (diluted)        81,600    79,751     1,849     81,492    79,704      1,788
               ------------------------------ ------------------------------

Comparing results for the third quarter of 2011 to 2010, Net Income and EPS decreased $1.4 million or $0.02 per share, FFO increased $0.3 million and FFO+GOS increased $0.3 million. The increase in FFO was primarily attributable to an increase in real estate FFO of $0.1 million and an increase in investment banking FFO of $0.2 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 September 30, 2011, compared to September 30, 2010, and was partially offset by the sale of two properties in 2011. One is a property in Falls Church, Virginia sold in January 2011 and the other is a property in Savage, Maryland sold in June 2011. The increase from investment banking resulted from greater sales of securities by our investment bank, which were $7.5 million for the third quarter of 2011 as compared to $0.3 million in the third quarter of 2010. Revenue from our investment bank is primarily based on the value of securities sales. There was no GOS during the third quarter of 2011 or 2010.

Comparing results for the nine months ended September 30, 2011 to the same period in 2010, Net Income and EPS increased $22.2 million or $0.27 per share, FFO increased $3.3 million or $0.03 per share and FFO+GOS increased $25.3 million or $0.30 per share. The increase in FFO was primarily attributable to an increase in investment banking FFO of $3.8 million and was partially offset by a decrease in real estate FFO of $0.5 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 2011, compared to results in the nine months ended September 30, 2010, during which we did not sell properties. The increase in investment banking FFO resulted from greater sales of securities by our investment bank, which were $57.6 million during the nine months ended September 30, 2011 as compared to $10.7 million for the same period 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 nine months ended September 30, 2011. There was no GOS during the same period of 2010.

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

"For the third quarter of 2011, FSP's profits as represented by FFO + GOS totaled approximately $16.4 million or $0.20 per share, a decrease of $0.05 per share compared to the second quarter of 2011. Dividend distributions declared for the third quarter of 2011, which are payable on November 18, 2011, are approximately $15.8 million or $0.19 per share.

Our directly-owned real estate portfolio of 35 properties, totaling 6,929,891 square feet, was approximately 88.1% leased as of September 30, 2011, up from approximately 86.9% leased as of June 30, 2011. Our property portfolio is primarily suburban office assets. Many of the rental/leasing markets where our properties are located remained stable during the third quarter, and showed moderate improvement in occupancy and rental-rate levels. The nation's stalling employment growth as well as financial and regulatory uncertainty appear to be factors in slowing many corporate decisions on potential future office space needs. However, we continue to make leasing progress in our portfolio and continue to have as our objective to move overall occupancy levels to the 90+% range by early 2012.

There was one new property acquisition completed in the third quarter of 2011 for a total purchase price of approximately $35.1 million excluding closing costs and adjustments. The property is located in Evanston, Illinois at 909 Davis Street, and totals approximately 195,245 rentable square feet. It is approximately 95% leased and, together with "Northwest Point" and our preferred share interest in "303 East Wacker", brings to three our greater Chicago area property investments. Additional real estate investments during the fourth quarter are a major objective of FSP, and we would anticipate additional activity this year. There were no property dispositions in the third quarter.

During the third quarter of 2011, our Investment Banking Group raised $7,475,000 of a $62,000,000 private placement offering that began in March of this year. As of the beginning of the fourth quarter, there remained $9,200,000 of the offering to be subscribed. Investment banking business slowed significantly in the third quarter as we continued to 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.

We believe FSP continues to be in an excellent environment to position itself for meaningful future growth. Our Company will continue to use its capabilities and strong balance sheet to take advantage of competitive tenant leasing requirements and attractive real estate investment opportunities that are presenting themselves as a result of the current cyclical softness in the economy and certain commercial property markets. We are very much looking forward to realizing our future growth potential."

Dividend Announcement

On October 14, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended September 30, 2011 of $0.19 per share of common stock payable on November 18, 2011 to stockholders of record on October 28, 2011.

Real Estate Update

Supplementary Schedules D and E provide property information for our continuing real estate portfolio of 35 properties and for three non-consolidated REITs that we had interests in as of September 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 I. 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     Nine Months Ended
                                     September 30,         September 30,
                                 --------------------- ---------------------
(In thousands, except per share
 amounts)                           2011       2010       2011       2010
                                 --------------------- ---------------------

Net income                       $   3,314  $   4,757  $  38,462  $  16,273
  Less gain on sale of
   properties                            -          -    (21,939)         -
  GAAP (income) loss from non-
   consolidated REITs                 (573)      (404)    (3,511)    (1,037)
  Distributions from non-
   consolidated REITs                1,104      1,192      4,086      3,923
  Acquisition costs of new
   properties                          185         (4)       463        125
  Depreciation & amortization       12,332     10,511     35,191     30,120
                                 --------------------- ---------------------
Funds From Operations (FFO)         16,362     16,052     52,752     49,404
  Plus gains on sales of assets
   (GOS)                                 -          -     21,939          -
                                 --------------------- ---------------------
FFO+GOS                          $  16,362  $  16,052  $  74,691  $  49,404
                                 ===================== =====================

Per Share Data
EPS                              $    0.04  $    0.06  $    0.47  $    0.20
FFO                              $    0.20  $    0.20  $    0.65  $    0.62
GOS                              $       -  $       -  $    0.27  $       -
FFO+GOS                          $    0.20  $    0.20  $    0.92  $    0.62

Weighted average shares (basic
 and diluted)                       81,600     79,751     81,492     79,704
                                 ===================== =====================

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 2, 2011 at 10:00 a.m. (ET) to discuss the third quarter 2011 results. To access the call, please dial 1-866-831-6272, passcode 96067963. Internationally, the call may be accessed by dialing 1-617-213-8859, passcode 96067963. 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   Nine Months Ended
                                        September 30,       September 30,
----------------------------------------------------------------------------
(in thousands, except per share
 amounts)                               2011     2010       2011     2010
============================================================================

Revenue:
  Rental                             $  33,672 $ 29,222  $  98,377 $ 84,855
Related party revenue:
  Syndication fees                         533       20      4,023      682
  Transaction fees                         470      246      3,846    1,145
  Management fees and interest
   income from loans                     1,037      630      2,995    1,721
Other                                        7       20         20       35
----------------------------------------------------------------------------
    Total revenue                       35,719   30,138    109,261   88,438
----------------------------------------------------------------------------

Expenses:
  Real estate operating expenses         9,328    8,714     26,823   23,998
  Real estate taxes and insurance        5,020    4,636     15,007   13,646
  Depreciation and amortization         12,389    9,655     35,239   26,600
  Selling, general and
   administrative                        2,414    2,074      7,178    6,804
  Commissions                              349       16      2,192      466
  Interest                               3,419    1,892      9,405    5,280
----------------------------------------------------------------------------

    Total expenses                      32,919   26,987     95,844   76,794
----------------------------------------------------------------------------

Income before interest income,
 equity in earnings of non-
 consolidated REITs and taxes            2,800    3,151     13,417   11,644
Interest income                              8        4         28       21
Equity in earnings of non-
 consolidated REITs                        573      404      2,707    1,037
----------------------------------------------------------------------------

Income before taxes on income            3,381    3,559     16,152   12,702
Taxes on income (benefit)                   67      (37)       185     (101)
----------------------------------------------------------------------------

  Income from continuing operations      3,314    3,596     15,967   12,803
----------------------------------------------------------------------------

  Discontinued operations:
  Income from discontinued
   operations                                -    1,161        556    3,470
  Gain on sale of property less
   applicable income tax                     -        -     21,939        -
----------------------------------------------------------------------------
  Total discontinued operations              -    1,161     22,495    3,470
----------------------------------------------------------------------------

Net income                           $   3,314 $  4,757  $  38,462 $ 16,273
============================================================================

Weighted average number of shares
 outstanding, basic and diluted         81,600   79,751     81,492   79,704
============================================================================

Earnings per share, basic and
 diluted, attributable to:
  Continuing operations              $    0.04 $   0.05  $    0.20 $   0.16
  Discontinued operations                    -     0.01       0.27     0.04
----------------------------------------------------------------------------
Net income per share, basic and
 diluted                             $    0.04 $   0.06  $    0.47 $   0.20
============================================================================


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

                                               September 30,   December 31,
(in thousands, except share and par value
 amounts)                                           2011           2010
----------------------------------------------------------------------------
Assets:
Real estate assets, net                        $     997,258  $     862,698
Acquired real estate leases, less accumulated
 amortization of $26,668 and $19,294,
 respectively                                         91,585         40,578
Investment in non-consolidated REITs                  88,225         89,327
Assets held for syndication, net                       4,720          2,976
Assets held for sale                                       -         74,947
Cash and cash equivalents                             44,047         68,213
Restricted cash                                          477            420
Tenant rent receivables, less allowance for
 doubtful accounts of $1,235 and $1,600,
 respectively                                          1,418          1,922
Straight-line rent receivable, less allowance
 for doubtful accounts of $135 and $700,
 respectively                                         26,067         18,752
Prepaid expenses                                       2,553          1,654
Related party mortgage loan receivable                61,916         57,684
Other assets                                           4,757            685
Office computers and furniture, net of
 accumulated depreciation of $629 and $493,
 respectively                                            462            503
Deferred leasing commissions, net of
 accumulated amortization of $8,619 and
 $7,175, respectively                                 22,299         18,376
----------------------------------------------------------------------------
    Total assets                               $   1,345,784  $   1,238,735
============================================================================

Liabilities and Stockholders' Equity:
Liabilities:
  Bank note payable                            $     375,000  $     209,968
  Term loan payable                                        -         74,850
  Accounts payable and accrued expenses               28,258         22,435
  Accrued compensation                                 1,383          1,803
  Tenant security deposits                             2,453          1,930
  Other liabilities: derivative termination
   value                                                  63          1,077
  Acquired unfavorable real estate leases,
   less accumulated amortization of $3,391 and
   $2,744, respectively                                6,627          5,114
----------------------------------------------------------------------------
    Total liabilities                                413,784        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, 82,937,405 and
   81,437,405 shares issued and outstanding,
   respectively                                            8              8
  Additional paid-in capital                       1,042,876      1,025,491
  Accumulated other comprehensive loss                   (63)        (1,077)
  Accumulated distributions in excess of
   accumulated earnings                             (110,821)      (102,864)
----------------------------------------------------------------------------
    Total stockholders' equity                       932,000        921,558
----------------------------------------------------------------------------
    Total liabilities and stockholders' equity $   1,345,784  $   1,238,735
============================================================================


             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)                                            2011       2010
----------------------------------------------------------------------------
Cash flows from operating activities:
  Net income                                           $  38,462  $  16,273
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation and amortization expense                 36,563     29,078
    Amortization of above market lease                      (119)     1,243
    Gain on sale of real estate assets                   (21,939)         -
    Equity in earnings of non-consolidated REITs          (2,805)    (1,037)
    Distributions from non-consolidated REITs              4,086      3,923
    Increase (decrease) in bad debt reserve                 (365)       920
  Changes in operating assets and liabilities:                 -
    Restricted cash                                          (57)       279
    Tenant rent receivables, net                             869     (1,261)
    Straight-line rents, net                              (7,404)    (2,961)
    Prepaid expenses and other assets, net                   116       (126)
    Accounts payable and accrued expenses                  4,131        615
    Accrued compensation                                    (420)       (82)
    Tenant security deposits                                 523        114
  Payment of deferred leasing commissions                 (6,710)    (7,894)
----------------------------------------------------------------------------
      Net cash provided by operating activities           44,931     39,084
----------------------------------------------------------------------------
Cash flows from investing activities:
  Purchase of real estate assets, office computers and
   furniture                                            (155,320)   (33,096)
  Acquired real estate leases                            (58,955)   (15,563)
  Investments in non-consolidated REITs                      (10)        (2)
  Investment in related party mortgage loan receivable    (4,232)   (17,221)
  Changes in deposits on real estate assets                  200          -
  Investment in assets held for syndication, net          (2,427)     4,858
  Proceeds received on sales of real estate assets        96,790          -
----------------------------------------------------------------------------
      Net cash used in investing activities             (123,954)   (61,024)
----------------------------------------------------------------------------
Cash flows from financing activities:
  Distributions to stockholders                          (46,419)   (45,418)
  Proceeds from offering                                  18,001      1,906
  Equity offering costs                                     (536)      (358)
  Borrowings under bank note payable                     375,000     58,960
  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 financing activities           54,857     15,090
----------------------------------------------------------------------------
Net decrease in cash and cash equivalents                (24,166)    (6,850)
Cash and cash equivalents, beginning of period            68,213     27,404
----------------------------------------------------------------------------
Cash and cash equivalents, end of period               $  44,047  $  20,554
============================================================================


             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, 2011

                                             Total       % of
                        Year              Square Feet  Portfolio
                                          ----------------------
                        2011                  123,479       1.8%
                        2012                  325,061       4.7%
                        2013                  419,885       6.1%
                        2014                  432,333       6.2%
                        2015                  798,433      11.5%
                   Thereafter (2)           4,830,700      69.7%
                                          ----------------------
                                            6,929,891     100.0%
                                          ======================

(1) Percentages are determined based upon square footage of expiring
commercial leases.
(2) Includes 824,236 square feet of current vacancies.



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

Texas                               9  $  286,147     28.7%  1,906     27.5%
Colorado                            4     123,866     12.4%    789     11.4%
Virginia                            4     101,302     10.2%    685      9.9%
Minnesota                           2      38,127      3.8%    625      9.0%
Missouri                            3      68,642      6.9%    477      6.9%
North Carolina                      3      69,158      6.9%    431      6.2%
Georgia                             1      72,218      7.2%    387      5.6%
Illinois                            2      50,956      5.1%    372      5.4%
Maryland                            1      54,702      5.5%    325      4.7%
Michigan                            1      15,115      1.5%    215      3.1%
Florida                             1      46,097      4.6%    213      3.1%
Indiana                             1      34,937      3.5%    205      3.0%
California                          2      21,619      2.2%    182      2.6%
Washington                          1      14,373      1.4%    117      1.7%
                           -------------------------------- ----------------
                                   35  $  997,258    100.0%  6,929    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-11   30-Sep-10
                                          ----------- -----------

           Tenant improvements            $    10,813 $     5,872
           Deferred leasing costs               6,710       7,894
           Building improvements                2,079       1,549
                                          ----------- -----------
                                          $    19,602 $    15,315
                                          =========== ===========



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

Owned portfolio of commercial real estate
    Number of properties (1)                              35             33
    Square feet                                    6,929,891      6,422,357
    Leased percentage                                     88%            86%

Investments in non-consolidated REITs
    Number of properties                                   3              3
    Square feet                                    1,998,575      1,995,913
    Leased percentage                                     83%            77%

Single Asset REITs (SARs) managed
    Number of properties                                  13             12
    Square feet                                    3,322,638      2,915,896
    Leased percentage                                     80%            75%

Total owned, investments & managed properties
    Number of properties                                  51             48
    Square feet                                   12,251,104     11,334,166
    Leased percentage                                     85%            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-Sep-11     Held
                           ----------- ----- --------- ---------  ---------
FSP 303 East Wacker Drive  Chicago     IL
 Corp.                                         844,953      94.0%      43.7%
FSP Grand Boulevard Corp.  Kansas City MO      533,999      79.8%      27.0%
FSP Phoenix Tower Corp.    Houston     TX      619,623      72.2%       4.6%
                                             --------- ---------
                                             1,998,575      83.4%
                                             --------- ---------



              Franklin Street Properties Corp. Earnings Release
               Supplementary Schedule F: Quarterly Information
                                 (Unaudited)
(in 000's)
                                          Q3       Q4        Q1        Q2
Revenue:                                 2010     2010      2011      2011
                                       -------------------------------------
  Rental                               $29,222  $29,782  $  31,100  $33,605
  Related party revenue:
    Syndication fees                        20    1,862        517    2,973
    Transaction fees                       246    1,582        691    2,685
    Management fees and interest
     income from loans                     630      719        808    1,150
  Other                                     20       54          6        7
----------------------------------------------------------------------------
      Total revenue                     30,138   33,999     33,122   40,420
----------------------------------------------------------------------------

Expenses:
    Real estate operating expenses       8,714    9,602      8,730    8,765
    Real estate taxes and insurance      4,636    4,430      4,759    5,228
    Depreciation and amortization        9,655    9,729     10,783   12,067
    Selling, general and
     administrative                      2,074    2,482      2,368    2,396
    Commissions                             16    1,011        288    1,555
    Interest                             1,892    2,004      2,408    3,578
----------------------------------------------------------------------------
      Total expenses                    26,987   29,258     29,336   33,589
----------------------------------------------------------------------------

    Income before interest income,
     equity in earnings in non-
     consolidated REITs                  3,151    4,741      3,786    6,831
    Interest income                          4        4         11        9
    Equity in earnings in non-
     consolidated REITs                    404      229        968    1,166
----------------------------------------------------------------------------

    Income before taxes on income        3,559    4,974      4,765    8,006
    Taxes on income                        (37)     317         50       68
----------------------------------------------------------------------------

    Income from continuing operations    3,596    4,657      4,715    7,938
    Income from discontinued
     operations                          1,161    1,163        459       97
----------------------------------------------------------------------------

    Income before gain on sale of
     properties                          4,757    5,820      5,174    8,035
    Gain on sale of assets                   -        -     19,593    2,346
----------------------------------------------------------------------------
    Net income                         $ 4,757  $ 5,820  $  24,767  $10,381
============================================================================

FFO and FFO+GOS calculations:

Net income                             $ 4,757  $ 5,820  $  24,767  $10,381
----------------------------------------------------------------------------
    (Gain) Loss on sale of assets            -        -    (19,593)  (2,346)
    GAAP income from non-consolidated
     REITs                                (404)    (153)    (1,772)  (1,166)
    Distributions from non-
     consolidated REITs                  1,192    1,247      1,767    1,215
    Acquisition costs of new
     properties                             (4)       -        269        9
    Depreciation of real estate and
     intangible amortization            10,510   10,605     10,812   12,047
----------------------------------------------------------------------------
Funds From Operations (FFO)             16,051   17,519     16,250   20,140
    Plus gains on sales of assets            -        -     19,593    2,346
----------------------------------------------------------------------------
FFO+GOS                                $16,051  $17,519  $  35,843  $22,486
============================================================================


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

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

 1 PARK SENECA Charlotte, NC     109,550    80.1%    79.1%    80.9%    80.5%
 2 HILLVIEW    Milpitas, CA
   CENTER                         36,288   100.0%   100.0%   100.0%   100.0%
 3 SOUTHFIELD  Southfield, MI    214,697    39.2%    41.7%    39.2%    39.2%
 4 FOREST PARK Charlotte, NC      62,212   100.0%    85.0%   100.0%   100.0%
 5 CENTENNIAL  Colorado
               Springs, CO       110,730    66.9%    66.9%    66.9%    66.9%
 6 MEADOW      Chantilly, VA
   POINT                         138,537   100.0%   100.0%   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%    42.0%    42.0%    42.0%
 9 NORTHWEST   Elk Grove
   POINT       Village, IL       176,848   100.0%   100.0%   100.0%   100.0%
10 TIMBERLAKE  Chesterfield,
   EAST        MO                116,197   100.0%   100.0%    85.9%    90.6%
11 PARK TEN    Houston, TX       155,715    98.8%    98.8%    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    79.7%    79.3%    88.4%    88.4%
15 GREENWOOD   Englewood, CO
   PLAZA                         197,527    54.3%    58.2%    54.3%    54.3%
16 RIVER       Indianapolis,
   CROSSING    IN                205,059    93.5%    93.4%    93.5%    93.5%
17 LIBERTY     Addison, TX
   PLAZA                         218,934    75.6%    75.6%    68.6%    68.0%
18 INNSBROOK   Glen Allen, VA    298,692    63.7%    67.3%    86.8%    78.8%
19 380         Broomfield, CO
   INTERLOCKEN                   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    Houston, TX
   GREEN                         248,399   100.0%   100.0%   100.0%   100.0%
22 WILLOW BEND Plano, TX         116,622    83.1%    76.8%    83.1%    83.1%
23 ONE OVERTON Atlanta, GA
   PARK                          387,267    91.1%    91.5%    90.4%    90.6%
24 390         Broomfield, CO
   INTERLOCKEN                   241,516    95.9%    95.9%    96.6%    96.9%
25 EAST        Baltimore, MD
   BALTIMORE                     325,445    55.7%    55.5%    55.7%    55.7%
26 PARK TEN    Houston, TX
   PHASE II                      156,746   100.0%   100.0%   100.0%   100.0%
27 LAKESIDE    Maryland
   CROSSING I  Heights, MO       127,778   100.0%   100.0%   100.0%   100.0%
28 LOUDOUN     Dulles, VA
   TECH                          135,888   100.0%   100.0%   100.0%   100.0%
29 4807        Chantilly, VA
   STONECROFT                    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,
   EIGHTH ST   MN                472,178    92.5%    92.1%    93.6%    93.1%
32 EMPEROR     Durham, NC
   BOULEVARD                     259,531   100.0%   100.0%   100.0%   100.0%
33 LEGACY      Plano, TX
   TENNYSON                      202,600
   CTR                                     100.0%   100.0%   100.0%   100.0%
34 ONE LEGACY  Plano, TX         214,110   100.0%    94.6%   100.0%   100.0%
35 909 DAVIS   Evanston, IL      195,245     n/a      n/a     94.8%    94.8%

                               --------- -------  -------  -------  -------
    TOTAL WEIGHTED AVERAGE (3) 6,929,891    86.9%    86.9%    88.1%    87.7%
                               --------- -------  -------  -------  -------

(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) Second Quarter totals include Bollman Place (98,745 sf) located
Maryland, which sold in June.

              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, 2011
                                                                     % of
Tenant                                         Sq Ft    SIC Code  Portfolio
                                            ---------- ---------- ---------
TCF National Bank                              267,470         60       3.9%
Quintiles Transnational Corp                   259,531         87       3.7%
CITGO Petroleum Corporation                    248,399         29       3.6%
Burger King Corporation                        212,619         58       3.1%
Denbury Onshore LLC                            202,600         13       2.9%
RGA Reinsurance Company                        185,501         63       2.7%
Citicorp Credit Services, Inc                  176,848         61       2.5%
C.H. Robinson Worldwide, Inc                   153,028         47       2.2%
SunTrust Bank                                  150,142         60       2.2%
Houghton Mifflin Harcourt Publishing
 Company                                       150,050         27       2.2%
Murphy Exploration & Production Company        144,677         13       2.1%
Giesecke & Devrient America, Inc.              135,888         73       2.0%
Monsanto Company                               127,778         28       1.8%
Vail Holdings, Inc.                            125,313         79       1.8%
Argo Data Resource Corporation                 111,687         73       1.6%
Northrop Grumman Systems Corporation           111,469         73       1.6%
Alliance Data Systems                           96,749         73       1.4%
Federal National Mortgage Association           92,358         61       1.3%
Amdocs, Inc                                     91,928         73       1.3%
County of Santa Clara                           90,467         91       1.3%
                                            ----------            ---------
Total                                        3,134,502                 45.2%
                                            ----------            ---------


              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"), because management believes that FFO represents the most accurate measure of the reportable segment's activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income (determined in accordance with GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, including amortization of acquired above and below market lease intangibles, 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.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP), nor as an indicator of the Company's financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company's liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company's needs. Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO 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.