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

SECOND QUARTER 2011 RESULTS

 

Wakefield, MA—August 2, 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 $20.1 million or $0.25 per share for the second quarter ended June 30, 2011. The Company also announced Net Income of $10.4 million and Earnings Per Share (EPS) of $0.13 for the second quarter and provided an update on other activities.

 

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

 

		Three Months Ended June 30,												Six Months Ended June 30,
(in 000's except per share data)		2011				2010				Increase (Decrease)				2011				2010				Increase (Decrease)
Net Income		$	10,381			$	5,954			$	4,427			$	35,148			$	11,516			$	23,632
FFO		$	20,140			$	16,702			$	3,438			$	36,390			$	33,352			$	3,038
GOS			2,346				—				2,346				21,939				—				21,939
FFO+GOS		$	22,486			$	16,702			$	5,784			$	58,329			$	33,352			$	24,977
Per Share Data:
EPS		$	0.13			$	0.07			$	0.06			$	0.43			$	0.14			$	0.29
FFO		$	0.25			$	0.21			$	0.04			$	0.45			$	0.42			$	0.03
GOS		$	0.03			$	—			$	0.03			$	0.27			$	—			$	0.27
FFO+GOS		$	0.28			$	0.21			$	0.07			$	0.72			$	0.42			$	0.30
Weighted average
shares (diluted)			81,437				79,681				1,756				81,437				79,681				1,756

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Dividend Announcement

 

On July 15, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended June 30, 2011 of $0.19 per share of common stock payable on August 19, 2011 to stockholders of record on July 29, 2011.

 

Real Estate Update

 

Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 34 properties and for three non-consolidated REITs that we had interests in as of June 30, 2011. The Company will also be filing a supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.franklinstreetproperties.com.

 

 

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

 

Reconciliation of Net Income to FFO and FFO+GOS:		Three Months Ended								Six Months Ended
		June 30,								June 30,
(In thousands, except per share amounts)		2011				2010				2011				2010
Net income		$	10,381			$	5,954			$	35,148			$	11,516
Less gain on sale of properties			(2,346	)			—				(21,939	)			—
GAAP (income) loss from non-consolidated REITs			(1,166	)			(380	)			(2,938	)			(633	)
Distributions from non-consolidated REITs			1,215				1,324				2,982				2,731
Acquisition costs of new properties			9				129				278				129
Depreciation & amortization			12,047				9,675				22,859				19,609
Funds From Operations (FFO)			20,140				16,702				36,390				33,352
Plus gains on sales of assets (GOS)			2,346				—				21,939				—
FFO+GOS		$	22,486			$	16,702			$	58,329			$	33,352
Per Share Data
EPS		$	0.13			$	0.07			$	0.43			$	0.14
FFO		$	0.25			$	0.21			$	0.45			$	0.42
GOS		$	0.03			$	—			$	0.27			$	—
FFO+GOS		$	0.28			$	0.21			$	0.72			$	0.42
Weighted average shares (basic and diluted)			81,437				79,681				81,437				79,681

 

 

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

 

A conference call is scheduled for August 3, 2011 at 10:00 a.m. (ET) to discuss the second quarter 2011 results. To access the call, please dial 1-866-788-0539, passcode 90544833. Internationally, the call may be accessed by dialing 1-857-350-1677, passcode 90544833. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company’s website (www.franklinstreetproperties.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.

 

About Franklin Street Properties Corp.

 

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

 

Forward-Looking Statements

 

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2010), risks of a lessening of demand for the types of real estate owned by us, changes in government regulations, and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.

 

 

Franklin Street Properties Corp.

Earnings Release

Supplementary information

Table of Contents

 

 

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

Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Income Statements

(Unaudited)

 

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
(in thousands, except per share amounts)		2011				2010				2011				2010
Revenue:
Rental		$	33,605			$	27,046			$	64,705			$	55,634
Related party revenue:
Syndication fees			2,973				541				3,490				662
Transaction fees			2,685				753				3,376				899
Management fees and interest income from loans			1,150				559				1,958				1,091
Other			7				6				13				15
Total revenue			40,420				28,905				73,542				58,301
Expenses:
Real estate operating expenses			8,765				7,335				17,495				15,284
Real estate taxes and insurance			5,228				4,038				9,987				9,011
Depreciation and amortization			12,067				8,485				22,850				16,945
Selling, general and administrative			2,396				2,559				4,764				4,730
Commissions			1,555				336				1,843				450
Interest			3,578				1,735				5,986				3,388
Total expenses			33,589				24,488				62,925				49,808
Income before interest income, equity in earnings of
non-consolidated REITs and taxes			6,831				4,417				10,617				8,493
Interest income			9				9				20				17
Equity in earnings of non-consolidated REITs			1,166				380				2,134				633
Income before taxes on income			8,006				4,806				12,771				9,143
Taxes on income (benefit)			68				5				118				(64	)
Income from continuing operations			7,938				4,801				12,653				9,207
Discontinued operations:
Income from discontinued operations			97				1,153				556				2,309
Gain on sale of property less applicable income tax			2,346				—				21,939				—
Total discontinued operations			2,443				1,153				22,495				2,309
Net income		$	10,381			$	5,954			$	35,148			$	11,516
Weighted average number of shares outstanding,
basic and diluted			81,437				79,681				81,437				79,681
Earnings per share, basic and diluted, attributable to:
Continuing operations		$	0.10			$	0.06			$	0.15			$	0.11
Discontinued operations			0.03				0.01				0.28				0.03
Net income per share, basic and diluted		$	0.13			$	0.07			$	0.43			$	0.14

 

 

Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

 

		June 30,				December 31,
(in thousands, except share and par value amounts)		2011				2010
Assets:
Real estate assets, net		$	976,131			$	862,698
Acquired real estate leases, less accumulated amortization
of $23,215 and $19,294, respectively			81,455				40,578
Investment in non-consolidated REITs			88,654				89,327
Assets held for syndication, net			11,206				2,976
Assets held for sale			—				74,947
Cash and cash equivalents			28,881				68,213
Restricted cash			459				420
Tenant rent receivables, less allowance for doubtful accounts
of $1,235 and $1,600, respectively			1,846				1,922
Straight-line rent receivable, less allowance for doubtful accounts
of $135 and $700, respectively			23,745				18,752
Prepaid expenses			1,255				1,654
Related party mortgage loan receivable			61,916				57,684
Other assets			5,760				685
Office computers and furniture, net of accumulated depreciation
of $582 and $493, respectively			477				503
Deferred leasing commissions, net of accumulated amortization
of $7,773 and $7,175, respectively			21,979				18,376
Total assets		$	1,303,764			$	1,238,735
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable		$	345,000			$	209,968
Term loan payable			—				74,850
Accounts payable and accrued expenses			21,431				22,435
Accrued compensation			1,070				1,803
Tenant security deposits			2,476				1,930
Other liabilities: derivative termination value			447				1,077
Acquired unfavorable real estate leases, less accumulated amortization
of $3,082 and $2,744, respectively			6,950				5,114
Total liabilities			377,374				317,177
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $.0001 par value, 20,000,000 shares       authorized, none issued or outstanding			—				—
Common stock, $.0001 par value, 180,000,000 shares authorized,       81,437,405 and 81,437,405 shares issued and outstanding, respectively			8				8
Additional paid-in capital			1,025,491				1,025,491
Accumulated other comprehensive loss			(447	)			(1,077	)
Accumulated distributions in excess of accumulated earnings			(98,662	)			(102,864	)
Total stockholders’ equity			926,390				921,558
Total liabilities and stockholders’ equity		$	1,303,764			$	1,238,735

 

 

Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

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

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)

 

 

Commercial portfolio lease expirations (1)
As of June 30, 2011
			Total				% of
Year			Square Feet				Portfolio
2011			203,228				3.0%
2012			297,239				4.4%
2013			412,196				6.1%
2014			423,693				6.3%
2015			789,042				11.7%
Thereafter (2)			4,622,417				68.5%
			6,747,815				100.0%

 

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

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

 

 

(dollars & square feet in 000's)	As of June 30, 2011
	# of		% of		Square	% of
State	Properties	Investment	Portfolio		Feet	Portfolio
Texas	9	$       285,547	29.3%		1,906	28.3%
Colorado	4	124,843	12.8%		789	11.7%
Virginia	4	100,531	10.3%		696	10.3%
Minnesota	2	37,934	3.9%		627	9.3%
Missouri	3	69,084	7.1%		477	7.1%
Maryland	1	54,938	5.6%		325	4.8%
Georgia	1	72,714	7.4%		387	5.7%
Michigan	1	15,013	1.5%		215	3.2%
Florida	1	46,394	4.8%		213	3.2%
Indiana	1	35,212	3.6%		205	3.0%
Illinois	1	28,142	2.9%		177	2.6%
California	2	21,743	2.2%		182	2.7%
North Carolina	3	69,543	7.1%		431	6.4%
Washington	1	14,493	1.5%		117	1.7%
	34	$       976,131	100.0%		6,747	100.0%

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

 

 

Capital Expenditures
Owned Portfolio	Six Months Ended
(in thousands)		30-Jun-11				30-Jun-10
Tenant improvements		$5,721				$2,240
Deferred leasing costs			5,386				7,085
Building improvements			1,325				878
		$	12,432			$	10,203

 

 

Square foot & leased percentages		June 30,		December 31,
		2011		2010
Owned portfolio of commercial real estate
	Number of properties (1)	34		33	(1)
	Square feet	6,747,815		6,422,357
	Leased percentage	87%		86%
Investments in non-consolidated REITs
	Number of properties	3		3
	Square feet	1,996,457		1,995,913
	Leased percentage	82%		77%
Single Asset REITs (SARs) managed
	Number of properties	13		12
	Square feet	3,322,569		2,915,896
	Leased percentage	79%		75%
Total owned, investments & managed properties
	Number of properties	50		48
	Square feet	12,066,841		11,334,166
	Leased percentage	84%		81%
(1) Includes asset held for sale at 12/31/2010

 

 

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

 

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

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F: Quarterly Information

(Unaudited)

 

(in 000's)
		Q2				Q3				Q4				Q1
Revenue:		2010				2010				2010				2011
Rental		$	27,046			$	29,222			$	29,782			$	31,100
Related party revenue:
Syndication fees			541				20				1,862				517
Transaction fees			753				246				1,582				691
Management fees and
interest income from loans			559				630				719				808
Other			6				20				54				6
Total revenue			28,905				30,138				33,999				33,122
Expenses:
Real estate operating expenses			7,335				8,714				9,602				8,730
Real estate taxes and insurance			4,038				4,636				4,430				4,759
Depreciation and amortization			8,485				9,655				9,729				10,783
Selling, general and administrative			2,559				2,074				2,482				2,368
Commissions			336				16				1,011				288
Interest			1,735				1,892				2,004				2,408
Total expenses			24,488				26,987				29,258				29,336
Income before interest income, equity
in earnings in non-consolidated REITs			4,417				3,151				4,741				3,786
Interest income			9				4				4				11
Equity in earnings in non-consolidated REITs			380				404				229				968
Income before taxes on income			4,806				3,559				4,974				4,765
Taxes on income			5				(37	)			317				50
Income from continuing operations			4,801				3,596				4,657				4,715
Income from discontinued operations			1,153				1,161				1,163				459
Income before gain on sale of properties			5,954				4,757				5,820				5,174
Gain on sale of assets			—				—				—				19,593
Net income		$	5,954			$	4,757			$	5,820			$	24,767
FFO and  FFO+GOS calculations:
Net income		$	5,954			$	4,757			$	5,820			$	24,767
(Gain) Loss on sale of assets			—				—				—				(19,593	)
GAAP income from non-consolidated REITs			(380	)			(404	)			(153	)			(1,772	)
Distributions from non-consolidated REITs			1,324				1,192				1,247				1,767
Acquisition costs of new properties			129				(4	)			—				269
Depreciation of real estate and intangible amortization			9,675				10,510				10,605				10,812
Funds From Operations (FFO)			16,702				16,051				17,519				16,250
Plus gains on sales of assets			—				—				—				19,593
FFO+GOS		$	16,702			$	16,051			$	17,519			$	35,843

 

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Percentage of Leased Space

(Unaudited & Estimated)

 

					First		Second
				% Leased (1)	Quarter	% Leased (1)	Quarter
				as of	Average %	as of	Average %
	Property Name	Location	Square Feet	31-Mar-11	Leased (2)	30-Jun-11	Leased (2)
1	PARK SENECA	Charlotte, NC	109,550	78.5%	78.5%	80.1%	79.1%
2	HILLVIEW CENTER	Milpitas, CA	36,288	100.0%	100.0%	100.0%	100.0%
3	SOUTHFIELD	Southfield, MI	214,697	61.1%	61.0%	39.2%	41.7%
4	FOREST PARK	Charlotte, NC	62,212	77.5%	77.5%	100.0%	85.0%
5	CENTENNIAL	Colorado Springs, CO	110,730	66.9%	66.9%	66.9%	66.9%
6	MEADOW POINT	Chantilly, VA	138,537	100.0%	98.6%	100.0%	100.0%
7	TIMBERLAKE	Chesterfield, MO	232,766	97.7%	97.7%	97.7%	97.7%
8	FEDERAL WAY	Federal Way, WA	117,010	42.0%	38.5%	42.0%	42.0%
9	NORTHWEST POINT	Elk Grove Village, IL	176,848	100.0%	100.0%	100.0%	100.0%
10	TIMBERLAKE EAST	Chesterfield, MO	116,197	100.0%	100.0%	100.0%	100.0%
11	PARK TEN	Houston, TX	155,715	98.8%	95.4%	98.8%	98.8%
12	MONTAGUE	San Jose, CA	145,951	100.0%	100.0%	100.0%	100.0%
13	ADDISON	Addison, TX	293,787	95.8%	95.8%	95.8%	95.8%
14	COLLINS CROSSING	Richardson, TX	298,766	79.1%	79.1%	79.7%	79.3%
15	GREENWOOD PLAZA	Englewood, CO	197,527	60.1%	60.1%	54.3%	58.2%
16	RIVER CROSSING	Indianapolis, IN	205,059	93.8%	93.8%	93.5%	93.4%
17	LIBERTY PLAZA	Addison, TX	218,934	75.6%	74.3%	75.6%	75.6%
18	INNSBROOK	Glen Allen, VA	310,060	60.8%	61.0%	63.7%	67.3%
19	380 INTERLOCKEN	Broomfield, CO	240,184	85.1%	85.1%	85.1%	85.1%
20	BLUE LAGOON	Miami, FLA	212,619	100.0%	100.0%	100.0%	100.0%
21	ELDRIDGE GREEN	Houston, TX	248,399	100.0%	100.0%	100.0%	100.0%
22	WILLOW BEND	Plano, TX	116,622	67.0%	63.2%	83.1%	76.8%
23	ONE OVERTON PARK	Atlanta, GA	387,267	92.4%	92.4%	91.1%	91.5%
24	390 INTERLOCKEN	Broomfield, CO	241,516	95.9%	95.9%	95.9%	95.9%
25	EAST BALTIMORE	Baltimore, MD	325,445	84.5%	84.3%	55.7%	55.5%
26	PARK TEN PHASE II	Houston, TX	156,746	100.0%	99.1%	100.0%	100.0%
27	LAKESIDE CROSSING I	Maryland Heights, MO	127,778	100.0%	100.0%	100.0%	100.0%
28	LOUDOUN TECH	Dulles, VA	135,888	100.0%	100.0%	100.0%	100.0%
29	4807 STONECROFT	Chantilly, VA	111,469	100.0%	100.0%	100.0%	100.0%
30	EDEN BLUFF	Eden Prairie, MN	153,028	100.0%	100.0%	100.0%	100.0%
31	121 SOUTH EIGHTH ST	Minneapolis, MN	473,979	92.2%	92.2%	92.5%	92.1%
32	EMPEROR BOULEVARD	Durham, NC	259,531	100.0%	100.0%	100.0%	100.0%
33	LEGACY TENNYSON CTR	Plano, TX	202,600	100.0%	100.0%	100.0%	100.0%
34	ONE LEGACY	Plano, TX	214,110	89.7%	89.7%	100.0%	94.6%
	TOTAL WEIGHTED AVERAGE (3)		6,747,815	88.4%	87.4%	86.9%	86.9%
(1) % Leased as of month's end includes all leases that expire on the last day of the quarter.
(2) Average quarterly percentage is the average of the end of the month leased percentage for each of the 3 months during the quarter.
(3) First & Second Quarter Totals include Bollman Place (98,745 sf) located in Savage, Maryland, which was sold in June 2011.

 

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Largest 20 Tenants – FSP Owned Portfolio

(Unaudited & Estimated)

 

 

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

 

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

 

 

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

Definition of Funds From Operations (“FFO”),

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

 

 

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

 

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