Exhibit 99.1

 

PRESS RELEASE	Franklin Street Properties Corp.
401 Edgewater Place · Suite 200 · Wakefield, Massachusetts 01880 · (781) 557-1300 · www.franklinstreetproperties.com
Contact: John Demeritt (877) 686-9496		FOR IMMEDIATE RELEASE

 

FRANKLIN STREET PROPERTIES CORP. ANNOUNCES

FIRST QUARTER 2011 RESULTS

 

Wakefield, MA—May 3, 2011—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 $16.3 million or $0.20 per share for the first quarter ended March 31, 2011. The Company also announced Net Income of $24.8 million and Earnings Per Share (EPS) of $0.30 for the first 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.

 

(in 000's except per share data)	Three Months Ended March 31,
	2011				2010					Increase (Decrease)
Net Income	$	24,767			$	5,562				$	19,205
FFO	$	16,250			$	16,651				$	(401	)
GOS		19,592				—					19,592
FFO+GOS	$	35,842			$	16,651				$	19,191
Per Share Data:
EPS	$	0.30			$	0.07				$	0.23
FFO	$	0.20			$	0.21				$	(0.01	)
GOS	$	0.24			$	—				$	0.24
FFO+GOS	$	0.44			$	0.21				$	0.23
Weighted ave shares (diluted)		81,437				79,681					1,757

 

Comparing results for the first quarter of 2011 to 2010, Net Income and EPS increased $19.2 million or $0.23 per share, FFO decreased $0.4 million or $0.01 per share and FFO+GOS increased $19.2 million or $0.23 per share. The decrease in FFO was primarily attributable to a decrease in real estate FFO of $1.0 million and was partially offset by an increase in investment banking FFO of $0.6 million. The decrease in real estate FFO was primarily from the sale of a property in Falls Church, Virginia in January 2011 and was partially offset by three new acquisitions made in March 2011 and the benefits of increased occupancy in the real estate portfolio at March 31, 2011 compared to March 31, 2010. The increase from investment banking resulted from greater sales of securities by our investment bank, which were $7.5 million for the first quarter of 2011 as compared to $2.1 million in the first quarter of 2010. Revenue from our investment bank is primarily based on the value of securities sales. The sale of a property in Falls Church, Virginia contributed $19.6 million or $0.24 per share of GOS for the first quarter of 2011. There was no GOS during the first quarter of 2010.

 

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

 

“For the first quarter of 2011, FSP's profits as represented by FFO + GOS totaled approximately $35.8 million or $0.44 per share, an increase of $0.22 per share compared to the fourth quarter of 2010. Dividend distributions declared for the first quarter of 2011, which are payable on May 20, 2011, will be approximately $15.5 million or $0.19 per share.

 

FSP's profit results for the first quarter of 2011 had a little bit of "noise" in them when compared to most of our past quarterly earnings periods. Contributing factors included: (1) the sale of our Falls Church, Virginia property, Fairview Park, for a gain, but the consequential loss of its rental stream for most of the quarter; (2) a significant number of newly-signed tenant leases that increased our property portfolio’s leased percentage in the fourth quarter of 2010 and the first quarter of 2011 have not yet “commenced” (although the economic benefit of those new leases should begin to produce a meaningful contribution to rental revenues in Q2); and (3) additional property acquisitions to our portfolio that occurred in the first quarter of 2011 were “back-ended” in the quarter, and consequently, did not contribute a full quarter of rental revenue. Upcoming quarters should see our rental revenues align themselves more typically with the total size and leased percentage of our property portfolio.

 

Our directly-owned real estate portfolio of 35 properties, totaling approximately 6,845,176 square feet, was approximately 88.4% leased as of March 31, 2011, up from approximately 85.6% leased as of December 31, 2010. Several of our properties experienced significant lease-roll in 2010. As a result, we have experienced lower levels of rental income from these properties. Most of the rental/leasing markets where our properties are located have finally stabilized, albeit at lower levels than before the recent downturn. It is our objective to move overall occupancy levels in the property portfolio back to the ninety-plus percentage range. We believe we will continue to make meaningful progress toward that goal throughout the balance of 2011.

 

There were four new property acquisitions completed in the first quarter of 2011 for a total purchase price of approximately $216.8 million. Total square footage acquired was approximately 1,086,039 square feet. All of the acquisitions were suburban office properties. Three of the properties totaling approximately 676,241 square feet at a purchase cost of approximately $166.6 million were acquired directly into the FSP portfolio. With the disposition of our Fairview Park property, these acquisitions bring our total directly-owned property portfolio to 35 properties totaling approximately 6,845,176 square feet as of the end of the first quarter. The fourth asset that was acquired is being held for syndication through our Investment Banking Group. Additional property acquisitions during the balance of 2011 are a major objective of FSP, and we would anticipate additional property acquisitions during the course of the year as we utilize our expanded credit facility and its structural flexibility to facilitate our growth.

 

During the first quarter of 2011, our Investment Banking Group raised $4.75 million to fully subscribe a $30 million private placement syndication that began in the fourth quarter of 2010. In March of this year, the Investment Banking Group began a new $62 million private placement offering and completed $2.75 million of that transaction by the end of the quarter. Total equity raised between the two offerings for the first quarter of 2011 was $7.5 million. The Investment Banking business operated at a small profit for the quarter. Currently, equity-raising activity continues on our $62 million offering, and we continue to see general investor confidence and interest in commercial real estate investing slowly improving. However, capital-raising efforts in this business segment over any specific period of time are likely to remain unpredictable.

 

On January 21, 2011, FSP sold its Fairview Park office property located in Falls Church, Virginia for approximately $90 million. The sale produced a gain of approximately $19.6 million or $0.24 per share. The transaction occurred via an unsolicited offer from a buyer who was very familiar with the asset and its submarket. Our agreement to sell Fairview Park was motivated by very property-specific considerations. However, we have continued to witness generally improving pricing and liquidity for quality properties in certain markets and may now consider proactively pursuing the possible selective sale of certain other properties, something we have not done for the last three years. We have always had a total-return strategy for our primarily suburban office assets, attempting to take advantage of the traditionally significant cyclical characteristic of the asset class and the markets where the properties are located. All invested capital for both initial acquisition, ongoing leasing and asset management is allocated based upon this strategy. The last three years presented few attractive opportunities on the sell-side of the ledger but have offered a number of solid acquisition choices. However, we are becoming more optimistic that the market cycle may be beginning to turn into a more broadly-based positive environment for property dispositions. Since gain on sale (GOS) is an important part of our total-return strategy, we may start to become more active relative to future property dispositions.

 

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

 

Dividend Announcement

 

On April 15, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended March 31, 2011 of $0.19 per share of common stock payable on May 20, 2011 to stockholders of record on April 29, 2011.

 

Real Estate Update

 

Supplementary Schedules D & 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 March 31, 2011. The Company will also be filing a supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.franklinstreetproperties.com.

 

 

A reconciliation of Net Income to FFO and FFO+GOS is shown below and definitions of FFO and FFO+GOS are provided on Supplementary Schedule H. We believe FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently. We also believe that FFO+GOS is an important measure as it considers investment performance.

 

Reconciliation of Net Income to FFO and FFO+GOS:
		Three Months Ended
		March 31,
(In thousands, except per share amounts)		2011				2010
Net Income		$	24,767			$	5,562
Less gain on sale of property			(19,592	)			—
GAAP (income) loss from non-consolidated REITs			(1,773	)			(253	)
Distributions from non-consolidated REITs			1,767				1,407
Acquisitions costs			269				—
Depreciation of real estate & intangible amortization			10,812				9,935
Funds From Operations (FFO)			16,250				16,651
Plus gains on sales of assets (GOS)			19,592				—
FFO+GOS		$	35,842			$	16,651
Per Share Data
EPS		$	0.30			$	0.07
FFO		$	0.20			$	0.21
GOS		$	0.24			$	—
FFO+GOS		$	0.44			$	0.21
Weighted average shares (basic and diluted)			81,437				79,681

 

 

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

 

A conference call is scheduled for May 4, 2011 at 10:00 a.m. (ET) to discuss the first quarter 2011 results. To access the call, please dial 1-800-573-4754, passcode 51051421. Internationally, the call may be accessed by dialing 1-617-224-4325, passcode 51051421. 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 Three Months Ended March 31,
(in thousands, except per share amounts)		2011				2010
Revenue:
Rental		$	31,270			$	28,757
Related party revenue:
Syndication fees			517				121
Transaction fees			691				146
Management fees and interest income from loans			808				533
Other			7				9
Total revenue			33,293				29,566
Expenses:
Real estate operating expenses			8,732				7,955
Real estate taxes and insurance			4,783				4,996
Depreciation and amortization			10,819				8,496
Selling, general and administrative			2,368				2,171
Commissions			287				114
Interest			2,409				1,652
Total expenses			29,398				25,384
Income before interest income, equity in earnings of
non-consolidated REITs and taxes			3,895				4,182
Interest income			12				8
Equity in earnings of non-consolidated REITs			968				253
Income before taxes on income			4,875				4,443
Taxes on income			50				(68	)
Income from continuing operations			4,825				4,511
Discontinued operations:
Income from discontinued operations			350				1,051
Gain on sale of property less applicable income tax			19,592				—
Total discontinued operations			19,942				1,051
Net income		$	24,767			$	5,562
Weighted average number of shares outstanding,
basic and diluted			81,437				79,681
Earnings per share, basic and diluted, attributable to:
Continuing operations		$	0.06			$	0.06
Discontinued operations			0.24				0.01
Net income per share, basic and diluted		$	0.30			$	0.07

 

Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

 

		March 31,				December 31,
(in thousands, except share and par value amounts)		2011				2010
Assets:
Real estate assets, net		$	984,441			$	867,608
Acquired real estate leases, less accumulated amortization
of $19,813 and $19,294, respectively			85,290				40,578
Investment in non-consolidated REITs			88,652				89,327
Assets held for syndication, net			47,630				2,976
Assets held for sale			—				69,790
Cash and cash equivalents			49,488				68,213
Restricted cash			440				420
Tenant rent receivables, less allowance for doubtful accounts
of $1,225 and $1,600, respectively			1,688				1,922
Straight-line rent receivable, less allowance for doubtful accounts
of $135 and $700, respectively			20,992				18,752
Prepaid expenses			1,400				1,654
Related party mortgage loan receivable			60,116				57,684
Other assets			5,838				853
Office computers and furniture, net of accumulated depreciation
of $538 and $493, respectively			501				503
Deferred leasing commissions, net of accumulated amortization
of $7,613 and $7,175, respectively			20,426				18,455
Total assets		$	1,366,902			$	1,238,735
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable		$	404,000			$	209,968
Term loan payable			—				74,850
Accounts payable and accrued expenses			20,562				22,435
Accrued compensation			603				1,803
Tenant security deposits			2,533				1,930
Other liabilities: derivative termination value			828				1,077
Acquired unfavorable real estate leases, less accumulated amortization
of $2,770 and $2,744, respectively			7,275				5,114
Total liabilities			435,801				317,177
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $.0001 par value, 20,000,000 shares authorized,    none issued or outstanding			—				—
Common stock, $.0001 par value, 180,000,000 shares authorized,    81,437,405 and 81,437,405 shares issued and outstanding, respectively			8				8
Additional paid-in capital			1,025,491				1,025,491
Accumulated other comprehensive loss			(828	)			(1,077	)
Accumulated distributions in excess of accumulated earnings			(93,570	)			(102,864	)
Total stockholders’ equity			931,101				921,558
Total liabilities and stockholders’ equity		$	1,366,902			$	1,238,735

 

 

Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

		For the Three Months Ended March 31,
(in thousands)		2011				2010
Cash flows from operating activities:
Net income		$	24,767			$	5,562
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense			11,109				9,284
Amortization of above market lease			(6	)			716
Gain on sale of real estate assets			(19,592	)			—
Equity in earnings of non-consolidated REITs			(1,066	)			(253	)
Distributions from non-consolidated REITs			1,767				1,407
Increase (decrease) in bad debt reserve			(375	)			380
Changes in operating assets and liabilities:
Restricted cash			(20	)			284
Tenant rent receivables, net			609				17
Straight-line rents, net			(2,303	)			(1,020	)
Prepaid expenses and other assets, net			88				265
Accounts payable and accrued expenses			(1,212	)			(3,917	)
Accrued compensation			(1,200	)			(1,142	)
Tenant security deposits			603				(112	)
Payment of deferred leasing commissions			(2,819	)			(5,566	)
Net cash provided by operating activities			10,350				5,905
Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture			(124,307	)			(3,529	)
Acquired real estate leases			(45,032	)			—
Investments in non-consolidated REITs			(9	)			—
Investment in related party mortgage loan receivable			(2,432	)			(4,790	)
Changes in deposits on real estate assets			200				—
Investment in assets held for syndication, net			(45,186	)			2,005
Proceeds received on sales of real estate assets			89,382				—
Net cash used in investing activities			(127,384	)			(6,314	)
Cash flows from financing activities:
Distributions to stockholders			(15,473	)			(15,139	)
Proceeds from equity offering, net			(90	)			(1	)
Borrowings under bank note payable			404,000				10,960
Repayment of bank note payable			(209,968	)			—
Repayment of term loan payable			(74,850	)			—
Deferred financing costs			(4,328	)			—
Swap termination payment			(982	)			—
Net cash provided by (used in) financing activities			98,309				(4,180	)
Net decrease in cash and cash equivalents			(18,725	)			(4,589	)
Cash and cash equivalents, beginning of period			68,213				27,404
Cash and cash equivalents, end of period		$	49,488			$	22,815

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)

 

Commercial portfolio lease expirations (1)
As of March 31, 2011
	Total	% of
Year	Square Feet	Portfolio
2011	459,617	6.7%
2012	301,049	4.4%
2013	553,847	8.1%
2014	467,768	6.8%
2015	781,852	11.4%
Thereafter (2)	4,281,043	62.6%
	6,845,176	100.0%

 

 

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

(2) Includes 796,706 square feet of current vacancies.

 

 

 

(dollars & square feet in 000's)	As of March 31, 2011
	# of		% of		Square	% of
State	Properties	Investment	Portfolio		Feet	Portfolio
Texas	9	$  286,272	29.1%		1,906	27.8%
Colorado	4	125,798	12.8%		789	11.5%
Virginia	4	100,674	10.2%		695	10.1%
Minnesota	2	38,073	3.9%		627	9.2%
Missouri	3	69,695	7.1%		477	7.0%
Maryland	2	60,189	6.1%		424	6.2%
Georgia	1	73,294	7.4%		387	5.7%
Michigan	1	14,549	1.5%		215	3.1%
Florida	1	46,690	4.7%		213	3.1%
Indiana	1	35,486	3.6%		205	3.0%
Illinois	1	28,468	2.9%		177	2.6%
California	2	20,957	2.1%		182	2.7%
North Carolina	3	69,983	7.1%		431	6.3%
Washington	1	14,312	1.5%		117	1.7%
	35	$  984,441	100.0%		6,845	100.0%

 

 

Property by type:
(dollars & square feet	As of March 31, 2011
in 000's)	# of		% of		Square	% of
Type	Properties	Investment	Portfolio		Feet	Portfolio
Office	34	$  979,560	99.5%		6,746	98.6%
Industrial	1	4,881	0.5%		99	1.4%
	35	$  984,441	100.0%		6,845	100.0%

 

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

 

 

Capital Expenditures
Owned Portfolio		Three Months Ended
(in thousands)		31-Mar-11				31-Mar-10
Tenant improvements		$	2,506			$	1,305
Deferred leasing costs			2,819				5,566
Building improvements			449				380
		$	5,774			$	7,251

 

 

 

 

Square foot & leased percentages		March 31,		December 31,
		2011		2010
Owned portfolio of commercial real estate
	Number of properties	35		33	(1)
	Square feet	6,845,176		6,422,357
	Leased percentage	88%		86%
Investments in non-consolidated REITs
	Number of properties	3		3
	Square feet	1,995,932		1,995,913
	Leased percentage	85%		77%
Single Asset REITs (SARs) managed
	Number of properties	13		12
	Square feet	3,325,694		2,915,896
	Leased percentage	79%		75%
Total owned, investments & managed properties
	Number of properties	51		48
	Square feet	12,166,802		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:

 

SARs we invest in:
			Square	% Leased	% Interest
Single Asset REIT name	City	State	Feet	31-Mar-11	Held
FSP 303 East Wacker Drive Corp.	Chicago	IL	844,953	92.3%	43.7%
FSP Grand Boulevard Corp.	Kansas City	MO	532,472	89.3%	27.0%
FSP Phoenix Tower Corp.	Houston	TX	618,507	70.6%	4.6%
			1,995,932	84.8%

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F: Quarterly Information

(Unaudited)

 

(in 000's)
		Q1				Q2				Q3				Q4
Revenue:		2010				2010				2010				2010
Rental		$	28,757			$	27,219			$	29,391			$	29,953
Related party revenue:
Syndication fees			121				541				20				1,862
Transaction fees			146				753				246				1,582
Management fees and
interest income from loans			533				558				630				718
Other			9				6				20				54
Total revenue			29,566				29,077				30,307				34,169
Expenses:
Real estate operating expenses			7,955				7,335				8,715				9,604
Real estate taxes and insurance			4,996				4,061				4,659				4,454
Depreciation and amortization			8,496				8,521				9,691				9,764
Selling, general and administrative			2,171				2,559				2,074				2,482
Commissions			114				336				16				1,011
Interest			1,652				1,735				1,892				2,004
Total expenses			25,384				24,547				27,047				29,319
Income before interest income, equity
in earnings in non-consolidated REITs
and taxes			4,182				4,530				3,260				4,850
Interest income			8				9				4				4
Equity in earnings in non-consolidated REITs			253				380				404				229
Income before taxes on income			4,443				4,919				3,668				5,083
Taxes on income			(68	)			5				(37	)			317
Income from continuing operations			4,511				4,914				3,705				4,766
Income from discontinued operations			1,051				1,040				1,052				1,054
Income before gain on sale of properties			5,562				5,954				4,757				5,820
Gain on sale of assets			—				—				—				—
Net income		$	5,562			$	5,954			$	4,757			$	5,820
FFO and  FFO+GOS calculations:
Net income		$	5,562			$	5,954			$	4,757			$	5,820
(Gain) Loss on sale of assets			—				—				—				—
GAAP income from non-consolidated REITs			(253	)			(380	)			(404	)			(153	)
Distributions from non-consolidated REITs			1,407				1,324				1,192				1,247
Acquisition costs of new properties			—				129				(4	)			—
Depreciation of real estate and intangible amortization			9,934				9,675				10,510				10,605
Funds From Operations (FFO)			16,650				16,702				16,051				17,519
Plus gains on sales of assets			—				—				—				—
FFO+GOS		$	16,650			$	16,702			$	16,051			$	17,519

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Percentage of Leased Space

(Unaudited & Estimated)

 

	Property Name	Location	Square Feet		% Leased as of 12/31/10 (1)		Fourth Quarter Average % Leased (2)		% Leased as of  3/31/11 (1)		First Quarter Average %  Leased (2)
1	PARK SENECA	Charlotte, NC	109,550		81.0%		82.9%		78.5%		78.5%
2	HILLVIEW CENTER	Milpitas, CA	36,288		100.0%		100.0%		100.0%		100.0%
3	SOUTHFIELD	Southfield, MI	214,697		58.6%		58.6%		61.1%		61.0%
4	BOLLMAN PLACE	Savage, MD	98,745		100.0%		100.0%		100.0%		100.0%
5	FOREST PARK	Charlotte, NC	62,212		100.0%		100.0%		77.5%		77.5%
6	CENTENNIAL	Colorado Springs, CO	110,730		66.9%		66.9%		66.9%		66.9%
7	MEADOW POINT	Chantilly, VA	138,537		97.9%		97.9%		100.0%		98.6%
8	TIMBERLAKE	Chesterfield, MO	232,766		99.0%		99.0%		97.7%		97.7%
9	FEDERAL WAY	Federal Way, WA	117,010		33.6%		31.8%		42.0%		38.5%
10	NORTHWEST POINT	Elk Grove Village, IL	176,848		100.0%		100.0%		100.0%		100.0%
11	TIMBERLAKE EAST	Chesterfield, MO	116,197		100.0%		100.0%		100.0%		100.0%
12	PARK TEN	Houston, TX	155,715		48.2%		48.2%		98.8%		95.4%
13	MONTAGUE	San Jose, CA	145,951		100.0%		100.0%		100.0%		100.0%
14	ADDISON	Addison, TX	293,787		95.8%		95.8%		95.8%		95.8%
15	COLLINS CROSSING	Richardson, TX	298,766		79.1%		58.3%		79.1%		79.1%
16	GREENWOOD PLAZA	Englewood, CO	197,527		26.6%		26.6%		60.1%		60.1%
17	RIVER CROSSING	Indianapolis, IN	205,059		97.5%		97.7%		93.8%		93.8%
18	LIBERTY PLAZA	Addison, TX	218,934		73.7%		73.7%		75.6%		74.3%
19	INNSBROOK	Glen Allen, VA	308,771		61.4%		41.9%		60.8%		61.0%
20	380 INTERLOCKEN	Broomfield, CO	240,184		85.1%		85.1%		85.1%		85.1%
21	BLUE LAGOON	Miami, FLA	212,619		100.0%		100.0%		100.0%		100.0%
22	ELDRIDGE GREEN	Houston, TX	248,399		100.0%		100.0%		100.0%		100.0%
23	WILLOW BEND	Plano, TX	116,622		55.5%		55.5%		67.0%		63.2%
24	ONE OVERTON PARK	Atlanta, GA	387,267		92.4%		92.4%		92.4%		92.4%
25	390 INTERLOCKEN	Broomfield, CO	241,516		98.3%		98.3%		95.9%		95.9%
26	EAST BALTIMORE	Baltimore, MD	325,445		84.5%		91.4%		84.5%		84.3%
27	PARK TEN PHASE II	Houston, TX	156,746		97.8%		97.8%		100.0%		99.1%
28	LAKESIDE CROSSING I	Maryland Heights, MO	127,778		100.0%		100.0%		100.0%		100.0%
29	LOUDOUN TECH	Dulles, VA	135,888		100.0%		100.0%		100.0%		100.0%
30	4807 STONECROFT	Chantilly, VA	111,469		100.0%		100.0%		100.0%		100.0%
31	EDEN BLUFF	Eden Prairie, MN	153,028		100.0%		100.0%		100.0%		100.0%
32	121 S. EIGHTH STREET	Minneapolis, MN	473,884		92.1%		92.1%		92.2%		92.2%
33	EMPEROR BOULEVARD	Durham, NC	259,531		n/a		n/a		100.0%		100.0%
34	LEGACY TENNYSON	Plano, TX	202,600		n/a		n/a		100.0%		100.0%
35	ONE LEGACY CIRCLE	Plano, TX	214,110		n/a		n/a		89.7%		89.7%
	TOTAL WEIGHTED AVERAGE		6,845,176		85.6%		84.1%		88.4%		87.4%

 

(1) % Lease as of month’s end includes all leases that expire on the last day of the quarter.  A major lease (approximately 88,736 square feet) with Ober Kaler at East Baltimore expired on 3/31/11, and the space became vacant 4/1/11.

(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) Fourth Quarter Totals included 3150 Fairview Park Drive (252,613 sf) located in Virginia, which was sold in January.

 

 

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 March 31, 2011
				% of
	Tenant	Sq Ft	SIC Code	Portfolio
1	TCF National Bank	266,495	60	3.9%
2	Quintiles Transnational Corp.	259,531	87	3.8%
3	CITGO Petroleum Corporation	248,399	29	3.6%
4	Burger King Corporation	212,619	58	3.1%
5	Denbury Onshore LLC	202,600	13	3.0%
6	RGA Reinsurance Company	185,501	63	2.7%
7	Citicorp Credit Services, Inc.	176,848	61	2.6%
8	C.H. Robinson Worldwide, Inc.	153,028	47	2.2%
9	SunTrust Bank	145,204	60	2.1%
10	Murphy Exploration & Production Company	144,677	13	2.1%
11	Giesecke & Devrient America, Inc..	135,888	73	2.0%
12	Monsanto Company	127,778	28	1.9%
13	Vail Holdings, Inc.	121,913	79	1.8%
14	Northrop Grumman Information Technology, Inc.	111,469	73	1.6%
15	Maines Paper & Food Service, Inc	98,745	51	1.5%
16	Federal National Mortgage Association	92,358	61	1.3%
17	Amdocs, Inc.	91,928	73	1.3%
18	County of Santa Clara	90,467	91	1.3%
19	Ober Kaler Grimes & Shriver	88,736	81	1.3%
20	International Business Machines Corp.	87,587	73	1.3%
		3,041,771		44.4%

 

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

Definition of Funds From Operations (“FFO”),

and FFO plus Gains on Sales (“FFO+GOS”)

 

 

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

 

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