Franklin Street Properties Corp. Announces Fourth Quarter & Year End 2012 Results

Franklin Street Properties Corp. Announces Fourth Quarter & Year End 2012 
Results 
WAKEFIELD, MA -- (Marketwire) -- 02/19/13 --  Franklin Street
Properties Corp. (the "Company," "FSP," "we" or "our") (NYSE MKT:
FSP), an investment firm specializing in real estate, announced today
Funds From Operations (FFO) of $20.5 million or $0.25 per share for
the fourth quarter ended December 31, 2012; and FFO of $79.0 million
or $0.95 per share for the full year ended December 31, 2012. Net
income was $5.5 million or $0.07 per share for the fourth quarter and
$7.6 million or $0.09 per share for the year ended December 31, 2012. 
The Company evaluates its performance based on FFO, Net Income and
EPS and believes each is an important measure. A reconciliation of
Net Income to FFO, which is a non-GAAP financial measure, is provided
on page 3 of this press release. 


 
                                                                            
                          Three Months Ended             Year Ended         
                             December 31,               December 31,        
                      -------------------------- -------------------------- 
(in 000's except per                   Increase                   Increase  
 share data)            2012    2011  (Decrease)   2012    2011  (Decrease) 
                      ------- ------- ---------- ------- ------- ---------- 
                                                                            
Net Income            $ 5,460 $ 5,062 $      398 $ 7,633 $43,524 $  (35,891)
                      ======= ======= ========== ======= ======= ========== 
                                                                            
FFO                   $20,515 $18,457 $    2,058 $79,041 $71,210 $    7,831 
                      ======= ======= ========== ======= ======= ========== 
Per Share Data:                                                             
EPS                   $  0.07 $  0.06 $     0.01 $  0.09 $  0.53 $    (0.44)
FFO                   $  0.25 $  0.22 $     0.03 $  0.95 $  0.87 $     0.08 
                                                                            
Weighted average                                                            
 shares (diluted)      82,937  82,937          
-  82,937  81,857      1,080 
                      ------- ------- ---------- ------- ------- ---------- 

 
Comparing results for the fourth quarter of 2012 to the same period in
2011, FFO increased $2.1 million or $0.03 per share. The FFO increase
was primarily from higher property income due to three acquisitions
completed since October 2011 and improved occupancy in our portfolio,
and increased interest income from secured real estate loans, which
was partially offset by higher interest expense and G&A. Net Income
and EPS was $5.5 million or $0.07 per share for the fourth quarter of
2012 compared to net income of $5.1 million and $0.06 per share for
the fourth quarter of 2011.  
Comparing results for the year ended December 31, 2012 to 2011, FFO
increased $7.8 million or $0.08 per share. The FFO increase was
primarily from higher property income due to seven acquisitions
completed since the start of 2011 and improved occupancy in our
portfolio, and increased interest income from loans on secured real
estate, which was partially offset by higher interest expense and
G&A. Net Income and EPS was $7.6 million and $0.09 per share,
respectively, for the year ended December 31, 2012 compared to net
income of $43.5 million and $0.53 per share for the same period in
2011. For the year ended December 31, 2012, Net Income includes the
effect of a loss from discontinued operations of $15.7 million or
$0.19 per share. The loss included a $14.8 million loss on a property
sold in December and $0.9 million in losses from the operations of
the property we sold.  
George J. Carter, President and CEO, commented as follows:  
"For the fourth quarter of 2012, FSP's profits as represented by FFO
totaled approximately $20.5 million or $0.25 per share, an increase
of approximately $0.6 million or $0.01 per share compared to the
third quarter of 2012. Dividend distributions declared for the fourth
quarter of 2012, which are payable on February 14, 2013, will be
approximately $15.8 million or $0.19 per share. For the full-year
2012, FSP's profits as represented by FFO totaled approximately $79.0
million or $0.95 per share, an increase of approximately $7.8 million
or $0.08 per share compared to full-year 2011. We are optimistic
about our potential for continued profit growth in 2013. 
"Our directly-owned real estate portfolio of 37 properties, totaling
approximately 7,854,679 square feet, was approximately 94.0% leased
as of December 31, 2012, up from approximately 89.9% leased at the
end of the third quarter and up from approximately 88.7% leased as of
December 31, 2011. The increase in the percentage of leased space for
the fourth quarter and full-year 2012 continues to make a meaningful
contribution to our profit growth. Our property portfolio of
primarily suburban office assets has relatively modest lease
expirations over the next two years which we have continued to
proactively reduce during the course of 2012. As of year-end 2012,
only 3.55% of our commercial square footage is scheduled to expire in
2013 and, along with our improving occupancy levels, continues to
allow overall tenant improvement expenditures and leasing costs to
moderate in relation to the level of rental revenues being achieved. 
"There was one new real estate investment completed in the fourth
quarter of 2012. On November 1, FSP completed the acquisition of a
Class A suburban office property in Houston, Texas known as
'Westchase I & II' for $154.8 million. The property is a two-building
office complex totaling approximately 629,025 rentable square feet
and is located in Houston's Westchase District. Each building is 14
stories, and the entire property is approximately 96.3% leased to
numerous tenants. FSP, its affiliates and predecessor have been
investing in suburban Houston since 1993 and with the addition of
this asset, we own five properties totaling approximately 1,515,682
square feet in Houston as of year-end 2012. Additional potential real
estate investment opportunities are actively being explored and we
would anticipate further real estate investments during 2013. 
"There were two property dispositions completed in the fourth quarter
of 2012. First, one of our single-asset REIT affiliates, 'FSP Phoenix
Tower Corp.,' sold its 34-story 623,944 square foot office building
in Houston, Texas for $123,750,000. FSP's first mortgage loan of $15
million was repaid in full and our equity investment in Phoenix Tower
realized a gain of $1.6 million. The second disposition was our
Southfield, Michigan property on which we had taken an estimated
provision for loss last quarter. We continuously review and evaluate
our directly-owned portfolio of 37 properties for potentially
advantageous dispositions and would anticipate further potential
opportunities in the area during 2013. 
"As 2013 begins, FSP will focus on continuing to grow profits by (1)
increasing occupancy and rents on its portfolio of properties while
(2) acquiring additional real estate investments that have the
potential to add to profits. 
"We are very optimistic about our prospects for growth during 2013
and beyond."  
Dividend Announcement 
On January 26, 2013, the Company announced t
hat its Board of
Directors declared a regular quarterly dividend for the three months
ended December 31, 2012 of $0.19 per share of common stock payable on
February 14, 2013 to stockholders of record on January 25, 2013.  
Real Estate Update 
Supplementary schedules provide property information for the
Company's owned real estate portfolio and for three non-consolidated
REITs in which the Company holds preferred stock interests as of
December 31, 2012. The Company will also be filing an updated
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.  
Earnings Call 
A conference call is scheduled for February 20, 2013 at 10:00 a.m.
(ET) to discuss the fourth quarter and 2012 results. To access the
call, please dial 1-888-317-6016. Internationally, the call may be
accessed by dialing 1-412-317-6016. 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.  
A reconciliation of Net Income to FFO is shown below and a definition
of FFO is provided on Supplementary Schedule I. Management believes
FFO is used broadly throughout the real estate investment trust
(REIT) industry as a measurement of performance. The Company has
included the NAREIT FFO definition in the table and notes that other
REITs may not define FFO in accordance with the current NAREIT
definition or may interpret the current NAREIT definition
differently. The Company's computation of FFO may not be comparable
to FFO reported by other REITs or real estate companies that define
FFO differently.  


 
                                                                            
Reconciliation of Net Income to                                             
 FFO:                             Three Months Ended        Year Ended      
                                     December 31,          December 31,     
                                 --------------------  -------------------- 
                                                                            
(In thousands, except per share                                             
 amounts)                           2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net income                       $   5,460  $   5,062  $   7,633  $  43,524 
(Gain) loss on sale of or equity                                            
 interest in properties, less                                               
 applicable income tax                 526          -     14,826    (21,939)
  GAAP (income) loss from non-                                              
   consolidated REITs                 (972)      (978)    (2,033)    (4,490)
  Distributions from non-                                                   
   consolidated REITs                   76        971      2,810      5,056 
  Depreciation & amortization       15,239     13,247     55,518     48,439 
                                 ---------  ---------  ---------  --------- 
NAREIT FFO                          20,329     18,302     78,754     70,590 
  Acquisition costs of new                                                  
   properties                          186        155        287        620 
                                 ---------  ---------  ---------  --------- 
Funds From Operations (FFO)      $  20,515  $  18,457  $  79,041  $  71,210 
                                 =========  =========  =========  ========= 
                                                                            
Per Share Data                                                              
EPS                              $    0.07  $    0.06  $    0.09  $    0.53 
FFO                              $    0.25  $    0.22  $    0.95  $    0.87 
                                                                            
Weighted average shares (basic                                              
 and diluted)                       82,937     82,937     82,937     81,857 
                                 =========  =========  =========  ========= 

 
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.  
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. The majority of FSP's property
portfolio is suburban office buildings, with select investments in
certain central business district properties. 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, risks of a lessening of
demand for the types of real estate owned by us, changes in
government regulations and regulatory uncertainty, uncertainty about
governmental fiscal policy, geopolitical events 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, 2012, as the same may be updated from time to
time in subsequent filings with the United States Securities and
Exchan
ge 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 - Prior Four Quarters                         F  
     Percentage of Leased Space                                          G  
     Largest 20 Tenants - FSP Owned Portfolio                            H  
     Definition of Funds From Operations (FFO)                           I  
                                                                            
                                                                            
                                                                            
             Franklin Street Properties Corp. Financial Results             
                          Supplementary Schedule A                          
               Condensed Consolidated Income (Loss) Statements              
                                 (Unaudited)                                
                                                                            
                                         For the               For the      
                                   Three Months Ended        Year Ended     
                                      December 31,          December 31,    
                                  --------------------  --------------------
(in thousands, except per share                                             
 amounts)                            2012       2011       2012       2011  
                                  ---------  ---------  ---------  ---------
                                                                            
Revenue:                                                                    
  Rental                          $  41,532  $  36,744  $ 151,656  $ 134,238
Related party revenue:                                                      
  Management fees and interest                                              
   income from loans                  1,801      1,051     10,947      4,046
Other                                    87         29        199         49
                                  ---------  ---------  ---------  ---------
    Total revenue                    43,420     37,824    162,802    138,333
                                  ---------  ---------  ---------  ---------
                                                                            
Expenses:                                                                   
  Real estate operating expenses     10,501      9,486     37,441     35,076
  Real estate taxes and insurance     5,960      5,357     22,913     20,114
  Depreciation and amortization      15,225     12,951     54,872     47,622
  Selling, general and                                                      
   administrative                     2,462      2,012      9,916      6,913
  Interest                            4,167      3,261     16,068     12,666
                                  ---------  ---------  ---------  ---------
                                                                            
    Total expenses                   38,315     33,067    141,210    122,391
                                  ---------  ---------  ---------  ---------
                                                                            
Income before interest income,                                              
 equity in earnings of non-                                                 
 consolidated REITs and taxes         5,105      4,757     21,592     15,942
Interest income                          34          3         51         22
Equity in earnings of non-                                                  
 consolidated REITs                     972        978      2,033      3,685
                                  ---------  ---------  ---------  ---------
                                                                            
Income before taxes on income         6,111      5,738     23,676     19,649
Taxes on income                          99         82        335        267
                                  ---------  ---------  ---------  ---------
                                                                            
  Income from continuing                                                    
   operations                         6,012      5,656     23,341     19,382
                                  ---------  ---------  ---------  ---------
                                                                            
  Discontinued operations:                                                  
  Income (loss) from discontinued                                           
   operations, net of income tax        (26)      (594)      (882)     2,203
  Gain (loss) on sale, less                                                 
   applicable income tax               (526)         -    (14,826)    21,939
                                  ---------  ---------  ---------  ---------
  Total discontinued operations        (552)      (594)   (15,708)    24,142
                                  ---------  ---------  ---------  ---------
                                                                            
Net income (loss)                 $   5,460  $   5,062  $   7,633  $  43,524
                                  =========  =========  =========  =========
                                                                            
Weighted average number of shares                                           
 outstanding, basic and diluted      82,937     82,937     82,937     81,857
                                  =========  =========  =========  =========
                                                                            
Earnings (loss) per share, basic                                            
 and diluted, attributable to:                                              
  Continuing operations           $    0.07  $    0.07  $    0.28  $    0.24
  Discontinued operations                 -      (0.01)     (0.19)      0.29
                                  ---------  ---------  ---------  ---------
Net income per share, basic and                                             
 diluted                          $    0.07  $    0.06  $    0.09  $    0.53
                                  =========  =========  =========  =========
                                                                            
                                                                            
             Franklin Street Properties Corp. Financial Results             
                          Supplementary Schedule B                          
                   Condensed Consolidated Balance Sheets                    
                                (Unaudited)                                 
                                                                            
                                    
                     December 31,       
                                                   ------------------------ 
(in thousands, except share and par value amounts)     2012         2011    
                                                   -----------  ----------- 
Assets:                                                                     
Real estate assets, net                            $ 1,142,628  $   991,225 
Acquired real estate leases, less accumulated                               
 amortization of $40,062 and $31,189, respectively     111,982       91,613 
Investment in non-consolidated REITs                    81,960       87,598 
Assets held for sale                                         -       15,355 
Cash and cash equivalents                               21,267       23,813 
Restricted cash                                            575          493 
Tenant rent receivables, less allowance for                                 
 doubtful accounts of $1,300 and $1,235,                                    
 respectively                                            1,749        1,460 
Straight-line rent receivable, less allowance for                           
 doubtful accounts of $135 and $135, respectively       35,441       28,502 
Prepaid expenses                                         1,106        1,223 
Related party mortgage loan receivables                 93,896      140,516 
Other assets                                            12,655        4,070 
Office computers and furniture, net of accumulated                          
 depreciation of $584 and $428, respectively               544          468 
Deferred leasing commissions, net of accumulated                            
 amortization of $11,812 and $9,139, respectively       23,376       22,325 
                                                   -----------  ----------- 
      Total assets                                 $ 1,527,179  $ 1,408,661 
                                                   ===========  =========== 
                                                                            
Liabilities and Stockholders' Equity:                                       
Liabilities:                                                                
  Bank note payable                                $   216,750  $   449,000 
  Term loan payable                                    400,000            - 
  Accounts payable and accrued expenses                 31,122       26,446 
  Accrued compensation                                   2,540        2,222 
  Tenant security deposits                               2,489        2,008 
  Other liabilities: derivative liability                1,219            - 
  Acquired unfavorable real estate leases, less                             
   accumulated amortization of $4,870 and $3,759,                           
   respectively                                          8,310        7,618 
                                                   -----------  ----------- 
      Total liabilities                                662,430      487,294 
                                                   -----------  ----------- 
                                                                            
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 82,937,405                             
   shares issued and outstanding, respectively               8            8 
  Additional paid-in capital                         1,042,876    1,042,876 
  Accumulated other comprehensive loss                  (1,219)           - 
  Accumulated distributions in excess of                                    
   accumulated earnings                               (176,916)    (121,517)
                                                   -----------  ----------- 
    Total stockholders' equity                         864,749      921,367 
                                                   -----------  ----------- 
    Total liabilities and stockholders' equity     $ 1,527,179  $ 1,408,661 
                                                   ===========  =========== 
                                                                            
                                                                            
             Franklin Street Properties Corp. Financial Results             
                          Supplementary Schedule C                          
              Condensed Consolidated Statements of Cash Flows               
                                (Unaudited)                                 
                                                                            
                                                         December 31,       
                                                   ------------------------ 
(in thousands)                                         2012         2011    
                                                   -----------  ----------- 
Cash flows from operating activities:                                       
  Net income                                       $     7,633  $    43,524 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation and amortization expense               57,500       50,261 
    Amortization of above market lease                      71          (47)
    Gain (loss) on sale, less applicable income                             
     tax                                                14,826      (21,939)
    Equity in earnings of non-consolidated REITs        (2,033)      (3,086)
    Distributions from non-consolidated REITs              705        3,474 
    Increase (decrease) in bad debt reserve                 65         (365)
  Changes in operating assets and liabilities:                              
    Restricted cash                                        (82)         (73)
    Tenant rent receivables                               (354)         827 
    Straight-line rents                                 (4,464)      (9,878)
    Lease acquisition costs                             (2,520)           - 
    Prepaid expenses and other assets                     (328)       1,611 
    Accounts payable, accrued expenses and other                            
     items                                               3,717        4,213 
    Accrued compensation                                   318          419 
    Tenant security deposits                               481           78 
  Payment of deferred leasing commissions               (5,179)      (8,058)
                                                   -----------  ----------- 
      Net cash provided by operating activities         70,356       60,961 
                                                   -----------  ----------- 
Cash flows from investing activities:                                       
  Purchase of real estate assets, office computers                          
   and furniture                                      (183,868)    (174,020)
  Acquired real estate leases                          (37,302)     (62,230)
  Investment in non-consolidated REITs                      (1)         (10)
  Distributions in excess of earnings from non-                             
   consolidated REITs                                    2,105        1,582 
  Investment in related party mortgage loan                                 
   receivable                                          (74,580)     (82,832)
  Repayment of related party mortgage 
loan                                  
   receivable                                          121,200            - 
  Changes in deposits on real estate assets                  -          200 
  Investment in assets held for syndication                  -        2,230 
  Proceeds received on sales of real estate assets         157       96,790 
                                                   -----------  ----------- 
      Net cash used in investing activities           (172,289)    (218,290)
                                                   -----------  ----------- 
Cash flows from financing activities:                                       
  Distributions to stockholders                        (63,032)     (62,177)
  Proceeds from equity offering                              -       18,001 
  Offering costs                                             -         (706)
  Borrowings under bank note payable                   294,750      449,000 
  Repayments of bank note payable                     (527,000)    (209,968)
  Borrowing (repayment) of term loan payable           400,000      (74,850)
  Deferred financing costs                              (5,331)      (5,388)
  Swap termination payment                                   -         (983)
                                                   -----------  ----------- 
      Net cash provided by financing activities         99,387      112,929 
                                                   -----------  ----------- 
Net increase (decrease) in cash and cash                                    
 equivalents                                            (2,546)     (44,400)
Cash and cash equivalents, beginning of year            23,813       68,213 
                                                   -----------  ----------- 
Cash and cash equivalents, end of year             $    21,267  $    23,813 
                                                   ===========  =========== 
                                                                  
                                                                  
             Franklin Street Properties Corp. Earnings Release    
                         Supplementary Schedule D                 
                 Real Estate Portfolio Summary Information        
                        (Unaudited & Approximated)                
                                                                  
         Commercial portfolio lease expirations (1)               
                                            Total        % of     
                      Year               Square Feet   Portfolio  
                                        ------------ ------------ 
                      2013                   278,946          3.6%
                      2014                   417,721          5.3%
                      2015                 1,074,381         13.7%
                      2016                 1,099,491         14.0%
                      2017                   876,268         11.2%
                 Thereafter (2)            4,107,872         52.2%
                                        ------------ ------------ 
                                           7,854,679        100.0%
                                        ============ ============ 

 
(1) Percentages are determined based upon square footage of expiring
commercial leases. 
 (2) Includes 472,776 square feet of current
vacancies. 


 
                                                                            
(dollars & square feet in                                                   
 000's)                                As of December 31, 2012              
                          ------------------------------------------------- 
                             # of                  % of    Square    % of   
State                     Properties Investment Portfolio   Feet  Portfolio 
                          ---------- ---------- ---------  ------ --------- 
                                                                            
Texas                             11 $  421,397      36.9%  2,657      33.8%
Colorado                           4    122,335      10.7%    788      10.0%
Georgia                            2    107,725       9.4%    774       9.9%
Virginia                           4     99,295       8.7%    685       8.7%
Minnesota                          2     39,899       3.5%    628       8.0%
Missouri                           3     66,083       5.8%    477       6.1%
North Carolina                     3     67,032       5.9%    431       5.5%
Illinois                           2     49,869       4.3%    372       4.7%
Maryland                           1     53,377       4.7%    326       4.2%
Florida                            1     45,569       4.0%    213       2.7%
Indiana                            1     34,777       3.0%    205       2.6%
California                         2     21,444       1.9%    182       2.3%
Washington                         1     13,826       1.2%    117       1.5%
                          ---------- ---------- ---------  ------ --------- 
                                  37 $1,142,628     100.0%  7,855     100.0%
                          ========== ========== =========  ====== ========= 
                                                                      
                                                                      
              Franklin Street Properties Corp. Earnings Release       
                          Supplementary Schedule E                    
                Portfolio and Other Supplementary Information         
                         (Unaudited & Approximated)                   
                                                                      
      Capital Expenditures                                            
      Owned Portfolio                                 Year Ended      
                                               -----------------------
      (in thousands)                            31-Dec-12   31-Dec-11 
                                               ----------- -----------
                                                                      
      Tenant improvements                      $    13,037 $    19,032
      Deferred leasing costs                         7,427       8,058
      Building improvements                          3,712       2,826
                                               ----------- -----------
                                               $    24,176 $    29,916
                                               =========== ===========
                                                                            
                                                                            
Square foot & leased percentages                  December 31,  December 31,
                                                      2012          2011    
                                                  ------------  ------------
                                                                            
Owned portfolio of commercial real estate (a)                               
     Number of properties                                   37            36
     Square feet                                     7,854,679     7,052,068
     Leased percentage                                      94%          89%
                                                                            
Investments in non-consolidated REITs (b)                                   
     Number of properties                                    2             3
     Square feet                                     1,392,316     2,001,542
     Leased percentage                                      65%          87%
                                                                            
Single Asset REITs (SARs) managed                                           
     Number of properties                                   13            13
     Square feet                   
                  3,323,566     3,322,639
     Leased percentage                                      87%          80%
                                                                            
Total owned, investments & managed properties (a)                           
     Number of properties                                   52            52
     Square feet                                    12,570,561    12,376,249
     Leased percentage                                      89%          86%
                                                                            
(a) 2011 Includes asset sold in 2012.                                       
(b) 2011 Includes FSP Phoenix Tower Corp., which was sold in 2012.          

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


 
                                                                            
                                                                      %     
                                               Square   % Leased   Interest 
Single Asset REIT name     City        State    Feet   31-Dec-12     Held   
-------------------------- ----------- ----- --------- ---------  --------- 
FSP 303 East Wacker Drive                                                   
 Corp.                     Chicago     IL      857,245      55.7%      43.7%
FSP Grand Boulevard Corp.  Kansas City MO      535,071      80.5%      27.0%
                                             --------- ---------            
                                             1,392,316      65.2%           
                                             --------- ---------            
                                                                            
                                                                            
                                                                            
             Franklin Street Properties Corp. Earnings Release              
              Supplementary Schedule F: Quarterly Information               
                                (Unaudited)                                 
                                                                            
(in thousands)                                                              
                                 Q1       Q2       Q3        Q4     Annual  
Revenue:                        2012     2012     2012      2012     2012   
                              -------  -------  --------  -------  -------- 
  Rental                      $36,303  $35,570  $ 38,251  $41,532  $151,656 
  Related party revenue:                                                    
    Management fees and                                                     
     interest income from                                                   
     loans                      2,616    3,045     3,485    1,801    10,947 
  Other                            34       39        39       87       199 
                              -------  -------  --------  -------  -------- 
      Total revenues           38,953   38,654    41,775   43,420   162,802 
                              -------  -------  --------  -------  -------- 
Expenses:                                                                   
    Real estate operating                                                   
     expenses                   8,697    8,604     9,639   10,501    37,441 
    Real estate taxes and                                                   
     insurance                  5,696    5,493     5,764    5,960    22,913 
    Depreciation and                                                        
     amortization              13,071   13,004    13,572   15,225    54,872 
    Selling, general and                                                    
     administrative             2,077    2,236     3,141    2,462     9,916 
    Interest                    3,677    4,037     4,187    4,167    16,068 
                              -------  -------  --------  -------  -------- 
      Total expenses           33,218   33,374    36,303   38,315   141,210 
                              -------  -------  --------  -------  -------- 
                                                                            
    Income before interest                                                  
     income, equity in                                                      
     earnings of non-                                                       
     consolidated REITs and                                                 
     taxes on income            5,735    5,280     5,472    5,105    21,592 
    Interest income                 8        4         5       34        51 
    Equity in earnings of                                                   
     non-consolidated REITs       391      494       176      972     2,033 
                              -------  -------  --------  -------  -------- 
                                                                            
    Income before taxes on                                                  
     income                     6,134    5,778     5,653    6,111    23,676 
    Taxes on income                79       77        80       99       335 
                              -------  -------  --------  -------  -------- 
                                                                            
    Income from continuing                                                  
     operations                 6,055    5,701     5,573    6,012    23,341 
                              -------  -------  --------  -------  -------- 
    Discontinued operations:                                                
    Income from discontinued                                                
     operations, net of tax      (317)    (268)     (271)     (26)     (882)
    Gain (loss) on sale, less                                               
     applicable income tax          -        -   (14,300)    (526)  (14,826)
                              -------  -------  --------  -------  -------- 
    Total discontinued                                                      
     operations                  (317)    (268)  (14,571)    (552)  (15,708)
                              -------  -------  --------  -------  -------- 
                                                                            
    Net income                $ 5,738  $ 5,433  $ (8,998) $ 5,460  $  7,633 
                              =======  =======  ========  =======  ======== 
                                                                            
                                                                            
FFO calculations:                                                           
                                                                            
Net income                    $ 5,738  $ 5,433  $ (8,998) $ 5,460  $  7,633 
                              -------  -------  --------  -------  -------- 
Gain (loss) on sale, less                                                   
 applicable income tax              -        -    14,300      526    14,826 
    GAAP income from non-                                                   
     consolidated REITs          (391)    (494)     (176)    (972)   (2,033)
    Distributions from non-                                                 
     consolidated REITs           929      898       907       76     2,810 
    Acquisition costs               -        -       101      186       287 
    Depreciation of real                                                    
     estate & intangible                                                    
     amortization              13,295   13,205    13,779   15,239    55,518 
                                                                            
                              -------  -------  --------  -------  -------- 
Funds
 From Operations (FFO)   $19,571  $19,042  $ 19,913  $20,515  $ 79,041 
                              =======  =======  ========  =======  ======== 
                                                                            
                                                                            
             Franklin Street Properties Corp. Earnings Release              
                          Supplementary Schedule G                          
                         Percentage of Leased Space                         
                          (Unaudited & Estimated)                           
                                                                            
                                                   Third             Fourth 
                                            %     Quarter     %     Quarter 
                                          Leased  Average   Leased  Average 
                                           (1)       %       (1)       %    
   Property                     Square    as of    Leased   as of    Leased 
   Name         Location         Feet   30-Sep-12   (2)   31-Dec-12   (2)   
   ------------ ------------- --------- --------- ------- --------- ------- 
                                                                            
1  PARK SENECA  Charlotte, NC   109,406      77.3%   78.2%     79.3%   79.4%
2  HILLVIEW                                                                 
   CENTER       Milpitas, CA     36,288     100.0%  100.0%    100.0%  100.0%
3  FOREST PARK  Charlotte, NC    62,212     100.0%  100.0%    100.0%  100.0%
4  CENTENNIAL   Colorado                                                    
                Springs, CO     110,405      85.4%   85.4%     85.4%   85.4%
5  MEADOW POINT Chantilly, VA   138,537     100.0%  100.0%    100.0%  100.0%
6  TIMBERLAKE   Chesterfield,                                               
                MO              232,766      97.0%   97.0%     97.0%   97.0%
7  FEDERAL WAY  Federal Way,                                                
                WA              117,010      47.0%   47.0%     47.0%   47.0%
8  NORTHWEST    Elk Grove                                                   
   POINT        Village, IL     176,848     100.0%  100.0%    100.0%  100.0%
9  TIMBERLAKE   Chesterfield,                                               
   EAST         MO              116,197      97.0%   97.0%     97.0%   97.0%
10 PARK TEN     Houston, TX     155,715      96.1%   96.1%     96.1%   96.1%
11 MONTAGUE     San Jose, CA    145,951     100.0%  100.0%    100.0%  100.0%
12 ADDISON      Addison, TX     293,787      98.4%   96.7%     98.4%   98.4%
13 COLLINS      Richardson,                                                 
   CROSSING     TX              298,766      90.0%   88.5%     90.0%   90.0%
14 GREENWOOD                                                                
   PLAZA        Englewood, CO   196,236      48.9%   48.9%    100.0%   83.0%
15 RIVER        Indianapolis,                                               
   CROSSING     IN              205,059      97.0%   96.7%     92.2%   94.1%
16 LIBERTY                                                                  
   PLAZA        Addison, TX     218,934      85.2%   85.2%     81.7%   82.9%
17 INNSBROOK    Glen Allen,                                                 
                VA              298,456      98.3%   98.3%     98.3%   98.3%
18 380          Broomfield,                                                 
   INTERLOCKEN  CO              240,184      89.5%   89.5%     89.5%   89.5%
19 BLUE LAGOON  Miami, FL       212,619     100.0%  100.0%    100.0%  100.0%
20 ELDRIDGE                                                                 
   GREEN        Houston, TX     248,399     100.0%  100.0%    100.0%  100.0%
21 WILLOW BEND  Plano, TX       117,050      77.8%   77.8%     77.8%   77.8%
22 ONE OVERTON                                                              
   PARK         Atlanta, GA     387,267      94.6%   94.6%     94.6%   94.6%
23 390          Broomfield,                                                 
   INTERLOCKEN  CO              241,516      97.2%   97.2%     97.2%   97.2%
24 EAST                                                                     
   BALTIMORE    Baltimore, MD   325,445      57.2%   57.5%     77.3%   77.3%
25 PARK TEN                                                                 
   PHASE II     Houston, TX     156,746     100.0%  100.0%    100.0%  100.0%
26 LAKESIDE     Maryland                                                    
   CROSSING I   Heights, MO     127,778     100.0%  100.0%    100.0%  100.0%
27 LOUDOUN TECH Dulles, VA      135,888     100.0%  100.0%    100.0%  100.0%
28 4807                                                                     
   STONECROFT   Chantilly, VA   111,469     100.0%  100.0%    100.0%  100.0%
29 EDEN BLUFF   Eden Prairie,                                               
                MN              153,028     100.0%  100.0%    100.0%  100.0%
30 121 SOUTH    Minneapolis,                                                
   EIGHTH ST    MN              475,303      91.1%   92.6%     90.6%   90.8%
31 EMPEROR                                                                  
   BOULEVARD    Durham, NC      259,531     100.0%  100.0%    100.0%  100.0%
32 LEGACY                                                                   
   TENNYSON CTR Plano, TX       202,600     100.0%  100.0%    100.0%  100.0%
33 ONE LEGACY   Plano, TX       214,110     100.0%  100.0%    100.0%  100.0%
34 909 DAVIS    Evanston, IL    195,245      97.9%   96.9%     97.9%   97.9%
35 1410 EAST    Richardson,                                                 
   RENNER       TX              122,300     100.0%  100.0%    100.0%  100.0%
36 ONE RAVINIA                                                              
   DRIVE        Atlanta, GA     386,603      84.5%   84.0%     91.0%   86.6%
37 WESTCHASE I                                                              
   & II         Houston, TX     629,025       n/a     n/a      96.3%   96.3%
                                                                            
                              --------- --------- ------- --------- ------- 
   TOTAL WEIGHTED AVERAGE (3) 7,854,679      89.9%   89.8%     94.0%   92.4%
                              --------- --------- ------- --------- ------- 

 
(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) Third & Fourth Quarter Total Weighted
Averages include asset sold in December 2012 located in Southfield,
Michigan with 214,697 sf 


 
                                                                            
             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 December 31, 2012                                                  
                                                             SIC     % of   
   Tenant                                           Sq Ft    Code Portfolio 
   ---------------------------------------------- --------- ----- --------- 
1  TCF National Bank                                268,252    60       3.4%
2  Quintiles Transnational Corp                     259,531    87       3.3%
3  CITGO Petroleum Corporation                      248,399    29       3.2%
4  Burger King Corporation                          212,619    58       2.7%
5  Denbury Onshore LLC                              202,600    13       2.6%
6  RGA Reinsurance Company                          197,354    63       2.5%
7  SunTrust Bank                                    182,888    60       2.3%
8  Citicorp Credit Services, Inc                    176,848    61       2.3%
9  C.H. Robinson Worldwide, Inc                     153,028    47       1.9%
10 T-Mobile South, LLC dba T-Mobile                 151,792    48       1.9%
11 Houghton Mifflin Harcourt Publishing Company     150,050    27       1.9%
12 Petrobras America, Inc.                          144,813    13       1.8%
13 Murphy Exploration & Production Company          144,677    13       1.8%
14 Giesecke & Devrient America, Inc.                135,888    73       1.7%
15 Monsanto Company                                 127,778    28       1.6%
16 Federal National Mortgage Association            123,144    61       1.6%
17 AT&T Services, Inc.                              122,300    48       1.6%
18 Vail Holdings, Inc.                              122,232    79       1.6%
19 Kaiser Foundation Health Plan, Inc.              120,979    64       1.5%
20 Northrop Grumman Systems Corporation             111,469    73       1.5%
                                                  ---------       --------- 
   Total                                          3,356,641            42.7%
                                                  ---------       --------- 

 
(a) Based on rentable square footage 


 
                                                                            
              Franklin Street Properties Corp. Earnings Release             
                          Supplementary Schedule I                          
                Definition of Funds From Operations ("FFO"),                

 
The Company evaluates performance based on Funds From Operations,
which we refer to as FFO, as management believes that FFO represents
the most accurate measure of activity and is the basis for
distributions paid to equity holders. The Company defines FFO as net
income (computed 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 impairment charges, 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 have included the NAREIT FFO definition in our
table and note that other REITs may not define FFO in accordance with
the current NAREIT definition or may interpret the current NAREIT
definition differently than we do.  
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