FRANKLIN STREET PROPERTIES CORP /MA/ - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - FRANKLIN STREET PROPERTIES CORP /MA/	fsp-20210504xex99d1.htm
8-K - 8-K - FRANKLIN STREET PROPERTIES CORP /MA/	fsp-20210504x8k.htm

Exhibit 99.2

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300.~ www.fspreit.com

First Quarter 2021
Table of Contents


	Page		Page

Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry	18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term	19-20
Financial Highlights	4	Leasing Activity	21
Income Statements	5	Lease Expirations by Square Feet	22
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot	23
Cash Flow Statements	7	Redevelopment Activity	24
Property Net Operating Income (NOI)	8	Capital Expenditures	25

Reconciliation		Transaction Activity	26
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate	27
Property NOI	11
		Net Asset Value Components	28
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO	29
		EBITDA and NOI	30
Owned and Managed Portfolio Overview	14-17	AFFO	31


All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include adverse changes in general economic or local market conditions, including as a result of the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing interest rates, 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, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, any inability to dispose of properties on acceptable terms and any delays in the timing of any such anticipated dispositions, 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, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

		Dominion Towers, Denver, CO

March 31, 2021| Page 2


	Company Information

Overview		Snapshot (as of March 31, 2021)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. 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. FSP’s real estate operations include property acquisitions and dispositions, short-term financing, leasing, development and asset management.		Corporate Headquarters	Wakefield, MA
				Fiscal Year-End	31-Dec
				Total Properties	34 (1)
				Total Square Feet	9.7 Million (1)
				Trading Symbol	FSP
				Exchange	NYSE American
				Common Shares Outstanding	107,328,199
				Quarterly Dividend	$0.09
Our Business		Dividend Yield	6.6%
As of March 31, 2021, the Company owned and operated a portfolio of real estate consisting of 33 operating properties, one redevelopment property and two managed Sponsored REITs. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons.		Total Market Capitalization	$1.5 Billion (2)
				Insider Holdings	4.72%


Management Team

George J. Carter	Jeffrey B. Carter
Chief Executive Officer and	President and Chief Investment
Chairman of the Board	Officer

John G. Demeritt	Scott H. Carter
Executive Vice President, Chief	Executive Vice President, General
Financial Officer and Treasurer	Counsel and Secretary

John F. Donahue	Eriel Anchondo
Executive Vice President	Executive Vice President and Chief Operating Officer	Pershing Park Plaza, Atlanta, GA

Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com (1) Includes both operating and redevelopment properties. (2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

March 31, 2021| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	31-Mar-21			31-Dec-20		30-Sep-20		30-Jun-20	31-Mar-20
Income Items:
Rental revenue	$	58,623	$	59,408	$	61,834	$	60,398	$	62,567
Total revenue		59,039		59,810		62,247		60,808		62,983
Net income (loss)		(6,460)		37,440		(1,679)		(2,075)		(1,071)
Adjusted EBITDA (a)*		26,556		26,409		29,334		29,139		30,325
FFO*		18,005		17,466		20,446		20,194		21,292
AFFO*		4,384		4,867		3,452		165		3,101

Per Share Data:
EPS	$	(0.06)	$	0.35	$	(0.02)	$	(0.02)	$	(0.01)
FFO*	$	0.17	$	0.16	$	0.19	$	0.19	$	0.20
AFFO*	$	0.04	$	0.05	$	0.03	$	0.00	$	0.03
Weighted Average Shares (diluted)		107,328		107,328		107,328		107,287		107,269
Closing share price	$	5.45	$	4.37	$	3.66	$	5.09	$	5.73
Dividend declared	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09

Balance Sheet Items:
Real estate, net	$	1,601,613	$	1,602,016	$	1,649,649	$	1,645,898	$	1,639,196
Other assets, net		187,820		191,168		190,372		189,537		208,431
Total assets, net		1,789,433		1,793,184		1,840,021		1,835,435		1,847,627
Total liabilities, net		1,033,849		1,025,093		1,102,556		1,089,432		1,090,309
Shareholders' equity		755,584		768,091		737,465		746,003		757,318

Market Capitalization and Debt:
Total Market Capitalization (b)	$	1,532,439	$	1,392,524	$	1,392,821	$	1,546,301	$	1,614,653
Total debt outstanding (excluding unamortized financing costs)	$	947,500	$	923,500	$	1,000,000	$	1,000,000	$	1,000,000
Debt to Total Market Capitalization		61.8%		66.3%		71.8%		64.7%		61.9%
Net Debt to Adjusted EBITDA ratio (a)*		8.9		8.7		8.5		8.6		8.1

Operating Properties Leasing Statistics (c):
Operating properties assets		33		32		32		32		32
Operating properties total SF		9,548,810		9,331,489		9,526,822		9,508,226		9,506,513
Operating properties % leased		81.9%		85.0%		85.6%		84.5%		85.4%

(a)

Includes a $3,084 (or $12,336 annualized) charge during the three months ended December 31, 2020 from a lease write-off of a tenant in the travel industry that filed for bankruptcy on December 21, 2020, and includes accrued rent (all of which was included within rental revenue). Management believes excluding the impact of this write-off may be more useful in making period to period comparisons of our leverage ratio, and if such write-off were excluded, our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.

(b)	Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.

(c)	Excludes redevelopment properties.

*	See pages 9 & 10 for reconciliations of Net income or loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

March 31, 2021| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)


											For the
	For the Three Months Ended		For the Three Months Ended								Year Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Revenue:
Rental	$	58,623	$	62,567	$	60,398	$	61,834	$	59,408	$	244,207
Related party revenue:
Management fees and interest income from loans		410		403		405		400		402		1,610
Other		6		13		5		13		—		31
Total revenue		59,039		62,983		60,808		62,247		59,810		245,848

Expenses:
Real estate operating expenses		15,939		17,298		15,470		16,730		17,442		66,940
Real estate taxes and insurance		12,366		11,762		12,307		12,279		12,042		48,390
Depreciation and amortization		24,381		22,338		22,245		22,076		21,899		88,558
General and administrative		4,146		3,525		3,817		3,817		3,838		14,997
Interest		8,600		9,063		8,980		8,953		9,030		36,026
Total expenses		65,432		63,986		62,819		63,855		64,251		254,911

Gain on sale of property		—		—		—		—		41,928		41,928
Income (loss) before taxes on income		(6,393)		(1,003)		(2,011)		(1,608)		37,487		32,865
Tax expense on income		67		68		64		71		47		250

Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Weighted average number of shares outstanding, basic and diluted		107,328		107,269		107,287		107,328		107,328		107,303

Net income (loss) per share, basic and diluted	$	(0.06)	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30

March 31, 2021| Page 5

$ in thousands, except per share amounts)

Condensed Consolidated Balance Sheets

(in thousands)


	March 31,		March 31,		June 30,		September 30,		December 31,
	2021		2020		2020		2020		2020
Assets:
Real estate assets:
Land	$	189,155	$	191,578	$	191,578	$	191,578	$	189,155
Buildings and improvements		1,954,838		1,941,952		1,964,308		1,983,979		1,938,629
Fixtures and equipment		13,308		11,917		12,250		12,714		12,949
		2,157,301		2,145,447		2,168,136		2,188,271		2,140,733
Less accumulated depreciation		555,688		506,251		522,238		538,622		538,717
Real estate assets, net		1,601,613		1,639,196		1,645,898		1,649,649		1,602,016

Acquired real estate leases, net		25,836		37,270		34,022		31,011		28,206
Cash, cash equivalents and restricted cash		4,113		17,283		2,890		4,840		4,150
Tenant rent receivables, net		4,337		3,609		4,192		4,007		7,656
Straight-line rent receivable, net		69,743		68,317		69,062		71,033		67,789
Prepaid expenses and other assets		5,873		7,486		6,506		6,538		5,752
Related party mortgage loan receivable		21,000		21,000		21,000		21,000		21,000
Office computers and furniture, net of accumulated depreciation		147		215		196		178		163
Deferred leasing commissions, net		56,771		53,251		51,669		51,765		56,452
Total assets	$	1,789,433	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	27,500	$	30,000	$	30,000	$	30,000	$	3,500
Term loan payable, net of unamortized financing costs		717,668		766,124		766,493		766,863		717,323
Series A & Series B Senior Notes		199,219		199,055		199,096		199,137		199,178
Accounts payable and accrued expenses		63,456		57,076		55,712		69,905		72,058
Accrued compensation		1,390		1,335		2,278		3,634		3,918
Tenant security deposits		8,041		9,615		9,155		9,435		8,677
Lease liability		1,444		1,803		1,716		1,627		1,536
Other liabilities: derivative liabilities		13,698		23,035		22,958		20,157		17,311
Acquired unfavorable real estate leases, net		1,433		2,266		2,024		1,798		1,592
Total liabilities		1,033,849		1,090,309		1,089,432		1,102,556		1,025,093

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—		—		—		—		—
Common stock		11		11		11		11		11
Additional paid-in capital		1,357,131		1,356,794		1,357,131		1,357,131		1,357,131
Accumulated other comprehensive income (loss)		(13,698)		(23,035)		(22,958)		(20,157)		(17,311)
Accumulated distributions in excess of accumulated earnings		(587,860)		(576,452)		(588,181)		(599,520)		(571,740)
Total stockholders’ equity		755,584		757,318		746,003		737,465		768,091
Total liabilities and stockholders’ equity	$	1,789,433	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

March 31, 2021| Page 6

Condensed Consolidated Statements of Cash Flows

(in thousands)


		Three Months Ended March 31,

		2021		2020
Cash flows from operating activities:
Net loss	$	(6,460)	$	(1,071)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		25,088		23,086
Amortization of above and below market leases		(32)		(73)
Decrease in allowance for doubtful accounts and write-off of accounts receivable		—		(13)
Changes in operating assets and liabilities:
Tenant rent receivables		3,319		255
Straight-line rents		(1,904)		(966)
Lease acquisition costs		(50)		(470)
Prepaid expenses and other assets		(532)		(644)
Accounts payable and accrued expenses		(9,564)		(8,215)
Accrued compensation		(2,528)		(2,065)
Tenant security deposits		(636)		269
Payment of deferred leasing commissions		(5,056)		(2,892)
Net cash provided by operating activities		1,645		7,201

Cash flows from investing activities:
Property improvements, fixtures and equipment		(16,022)		(20,054)
Net cash used in investing activities		(16,022)		(20,054)

Cash flows from financing activities:
Distributions to stockholders		(9,660)		(9,654)
Borrowings under bank note payable		36,500		35,000
Repayments of bank note payable		(12,500)		(5,000)
Net cash provided by financing activities		14,340		20,346
Net increase (decrease) in cash, cash equivalents and restricted cash		(37)		7,493
Cash, cash equivalents and restricted cash, beginning of period		4,150		9,790
Cash, cash equivalents and restricted cash, end of period	$	4,113	$	17,283

March 31, 2021| Page 7

Property Net Operating Income (NOI)* with

Same Store Comparison (in thousands)


	Rentable											Year
	Square Feet	Three Months Ended		Three Months Ended								Ended		Inc		%
(in thousands)	or RSF	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20		(Dec)		Change
Region
East	573	$	949	$	1,325	$	1,552	$	922	$	1,047	$	4,846	$	(376)	(28.4)	%
MidWest	1,557		5,378		5,485		5,089		5,069		5,292		20,935		(107)	(2.0)	%
South	4,387		12,423		13,290		13,025		13,619		10,481		50,415		(867)	(6.5)	%
West	2,624		10,369		11,463		11,211		10,976		11,006		44,656		(1,094)	(9.5)	%
Property NOI* from Operating Properties	9,141		29,119		31,563		30,877		30,586		27,826		120,852		(2,444)	(7.7)	%
Dispositions and Redevelopment Properties (a)	519		642		1,311		1,319		1,611		1,554		5,795		(669)	(1.8)	%
Property NOI*	9,660	$	29,761	$	32,874	$	32,196	$	32,197	$	29,380	$	126,647	$	(3,113)	(9.5)	%

Same Store		$	29,119	$	31,563	$	30,877	$	30,586	$	27,826	$	120,852	$	(2,444)	(7.7)	%

Less Nonrecurring
Items in NOI* (b)			32		26		810		351		345		1,532		6	(0.1)	%

Comparative
Same Store		$	29,087	$	31,537	$	30,067	$	30,235	$	27,481	$	119,320	$	(2,450)	(7.8)	%

(a)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized. We also include properties that have been placed in service, but that do not have operating activity for all periods presented.

(b)	Nonrecurring items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability.

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

March 31, 2021| Page 8

FFO* & AFFO* Reconciliation

(in thousands, except per share amounts)


											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Gain on sale of property		—		—		—		—		(41,928)		(41,928)
Depreciation & amortization		24,349		22,265		22,170		21,989		21,820		88,244
NAREIT FFO*		17,889		21,194		20,095		20,310		17,332		78,931
Lease Acquisition costs		116		98		99		136		134		467
Funds From Operations (FFO)*	$	18,005	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	18,005	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398
Amortization of deferred financing costs		707		748		726		727		824		3,025
Shares issued as compensation		—		—		337		—		—		337
Straight-line rent		(1,904)		(966)		(377)		(1,293)		951		(1,685)
Tenant improvements		(4,491)		(10,716)		(13,531)		(8,022)		(837)		(33,106)
Leasing commissions		(2,597)		(2,730)		(603)		(2,033)		(7,432)		(12,798)
Non-investment capex		(5,336)		(4,527)		(6,581)		(6,373)		(6,105)		(23,586)
Adjusted Funds From Operations (AFFO)*	$	4,384	$	3,101	$	165	$	3,452	$	4,867	$	11,585

Per Share Data:
EPS	$	(0.06)	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30
FFO*		0.17		0.20		0.19		0.19		0.16		0.74
AFFO*		0.04		0.03		0.00		0.03		0.05		0.11

Weighted Average Shares (basic and diluted)		107,328		107,269		107,287		107,328		107,328		107,303

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

March 31, 2021| Page 9

EBITDA* & Adjusted EBITDA* Reconciliation

(in thousands, except ratio amounts)


											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Interest expense		8,600		9,063		8,980		8,953		9,030		36,026
Depreciation and amortization		24,349		22,265		22,170		21,989		21,820		88,244
Income taxes		67		68		64		71		47		250
EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	68,337	$	157,135
(Gain) loss on sale of properties and provisions for loss on properties held for sale or equity investments		—		—		—		—		(41,928)		(41,928)
Adjusted EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	26,409	$	115,207

Interest expense	$	8,600	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026
Scheduled principal payments		—		—		—		—		—		—
Interest and scheduled principal payments	$	8,600	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026

Interest coverage ratio (1)		3.09		3.35		3.24		3.28		2.92		3.20

Debt service coverage ratio (1)		3.09		3.35		3.24		3.28		2.92		3.20

Debt excluding unamortized financing costs	$	947,500	$	1,000,000	$	1,000,000	$	1,000,000	$	923,500
Cash, cash equivalents and restricted cash		4,113		17,283		2,890		4,840		4,150
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	943,387	$	982,717	$	997,110	$	995,160	$	919,350

Adjusted EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	26,409
Annualized	$	106,224	$	121,300	$	116,556	$	117,336	$	105,636

Net Debt-to-Adjusted EBITDA ratio (1)*		8.9		8.1		8.6		8.5		8.7

See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29. Amounts in the EBITDA and Adjusted EBITDA reconciliation do not reflect our proportionate share of interest expense, depreciation, amortization, income taxes, gains or losses on sales and debt from our investments in non-consolidated REITs, which are accounted for under the equity method.

(1) Includes a $3,084 (or $12,336 annualized) charge during the three months ended December 31, 2020 from a lease write-off of a tenant in the travel industry that filed for bankruptcy on December 21, 2020, and includes accrued rent (all of which was included within rental revenue). Management believes excluding the impact of this write-off may be more useful in making period to period comparisons of our leverage, Interest coverage and Debt service coverage ratios, and if such write-off were excluded, our Interest coverage ratio and our Debt service coverage ratio for the three months ended December 31, 2020 would have each been 3.26, and our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.

March 31, 2021| Page 10

Reconciliation of Net Income (Loss) to Property NOI*

(in thousands)


											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Add (deduct):
Gain on sale of property		—		—		—		—		(41,928)		(41,928)
Management fee income		(465)		(478)		(446)		(484)		(464)		(1,872)
Depreciation and amortization		24,381		22,338		22,245		22,076		21,899		88,558
Amortization of above/below market leases		(32)		(73)		(75)		(86)		(79)		(313)
General and administrative		4,146		3,525		3,817		3,817		3,838		14,997
Interest expense		8,600		9,063		8,980		8,953		9,030		36,026
Interest income		(394)		(382)		(381)		(386)		(391)		(1,540)
Non-property specific items, net		(15)		(48)		131		(14)		35		104
Property NOI*	$	29,761	$	32,874	$	32,196	$	32,197	$	29,380	$	126,647

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

March 31, 2021| Page 11

Debt Summary

(in thousands)


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		31-Mar-21		Components			31-Mar-21	Fee

BAML Revolver	12-Jan-22	$	600,000	$	27,500	Libor	+	1.20%	1.30%	0.25%
JPM Term Loan	30-Nov-21		100,000		100,000	2.44%	+	1.25%	3.69%
BAML Term Loan	12-Jan-23		400,000		400,000	1.12%	+	1.35%	2.47%
BMO Term Loan Tranche A	30-Nov-21		55,000		55,000	2.39%	+	1.25%	3.64%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.39%	+	1.25%	3.64%
Series A Senior Notes	20-Dec-24		116,000		116,000				3.99%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.26%

		$	1,520,000	$	947,500				3.18%

●

The table above is a summary of our debt. Additional information on our debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, as updated in our Quarterly Reports on Form 10-Q, on file with the U.S. Securities and Exchange Commission.

●

The BAML Revolver is subject to a 25 basis point facility fee based on our credit rating and, when applied to our availability of $600 million at March 31, 2021, would be $1.5 million annually as of March 31, 2021.

●

We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute. We estimate the annualized amount of the amortization included in interest expense will be approximately $2.8 million.

(a)

Interest rate excludes amortization of deferred financing costs and facility fees, which is discussed in the notes above.

March 31, 2021| Page 12

Capital Analysis

(in thousands, except per share amounts)


	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20
Market Data:
Shares Outstanding		107,328		107,269		107,328		107,328		107,328
Closing market price per share	$	5.45	$	5.73	$	5.09	$	3.66	$	4.37
Market capitalization	$	584,939	$	614,653	$	546,301	$	392,821	$	469,024
Total debt outstanding excluding unamortized financing costs		947,500		1,000,000		1,000,000		1,000,000		923,500
Total Market Capitalization	$	1,532,439	$	1,614,653	$	1,546,301	$	1,392,821	$	1,392,524

Dividend Data:
Total dividends declared for the quarter	$	9,660	$	9,654	$	9,654	$	9,660	$	9,660
Common dividend declared per share	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Declared dividend as a % of Net income (loss) per share		(150)%		(901)%		(465)%		(575)%		26%
Declared dividend as a % of AFFO* per share		220%		311%		5852%		280%		198%

Liquidity:
Cash, cash equivalents and restricted cash	$	4,113	$	17,283	$	2,890	$	4,840	$	4,150
Revolver:
Gross potential available under the BAML Revolver		600,000		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(27,500)		(30,000)		(30,000)		(30,000)		(3,500)
Total Liquidity	$	576,613	$	587,283	$	572,890	$	574,840	$	600,650

*	See page 9 for a reconciliation of Net Income (Loss) to AFFO and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

March 31, 2021| Page 13


	Owned Portfolio Overview


	As of the Quarter Ended
	31-Mar-21	31-Dec-20	30-Sep-20	30-Jun-20	31-Mar-20
Operating Properties:
Number of properties	33	32	32	32	32
Square feet	9,548,810	9,331,489	9,526,822	9,508,226	9,506,513
Leased percentage	81.9%	85.0%	85.6%	84.5%	85.4%

Redevelopment Properties (a):
Number of properties	1	2	3	3	3
Square feet	111,469	324,651	388,849	405,215	405,215
Leased percentage	0.0%	48.0%	53.0%	55.8%	55.8%

Total Owned Properties:
Number of properties	34	34	35	35	35
Square feet	9,660,279	9,656,140	9,915,671	9,913,441	9,911,728
Leased percentage	81.0%	83.8%	84.3%	83.3%	84.2%

Managed Properties - Single Asset REITs (SARs):
Number of properties	2	2	2	2	2
Square feet	348,545	348,545	348,545	348,545	348,545

Total Operating, Redevelopment and Managed Properties:
Number of properties	36	36	37	37	37
Square feet	10,008,824	10,004,685	10,264,216	10,261,986	10,260,273

(a)

We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

March 31, 2021| Page 14


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

Owned Properties:

East Region								Midwest Region

Washington, D.C.								Chicago
Meadow Point	Chantilly	VA	138,537	91.1%	70.3%	$	24.72	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	29.90
Loudoun Tech Center	Dulles	VA	136,658	98.9%	98.9%	$	20.73	909 Davis Street	Evanston	IL	195,098	93.3%	93.3%	$	40.68
Stonecroft (c)	Chantilly	VA	111,469	0.0%	0.0%	$	—
								Indianapolis
Richmond, VA								River Crossing	Indianapolis	IN	205,729	100.0%	99.5%	$	25.16
Innsbrook	Glen Allen	VA	298,183	57.2%	57.2%	$	18.65
								St. Louis
Charlotte, NC								Timberlake	Chesterfield	MO	234,496	100.0%	95.7%	$	32.88
Forest Park	Charlotte	NC	64,198	78.4%	34.5%	$	25.93	Timberlake East	Chesterfield	MO	117,036	100.0%	83.6%	$	26.99

								Minneapolis
								121 South 8th Street	Minneapolis	MN	297,209	92.0%	83.9%	$	23.75
								801 Marquette Ave	Minneapolis	MN	129,821	91.8%	37.0%	$	35.11
								Plaza Seven	Minneapolis	MN	330,096	86.7%	85.7%	$	32.61

East Region Total			749,045	64.4%	56.8%	$	21.08	Midwest Region Total			1,686,580	94.6%	86.9%	$	30.49

(a)	Weighted Occupied Percentage for the three months ended March 31, 2021.

(b)	Weighted Average GAAP Rent per Occupied Square Foot.

(c)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

March 31, 2021| Page 15


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

South Region								West Region

Dallas-Fort Worth								Denver
Legacy Tennyson Center	Plano	TX	207,049	41.1%	60.7%	$	15.28	380 Interlocken	Broomfield	CO	240,359	76.0%	73.1%	$	33.73
One Legacy Circle	Plano	TX	214,110	56.4%	56.4%	$	38.79	1999 Broadway	Denver	CO	680,255	67.2%	70.7%	$	33.20
Addison Circle	Addison	TX	289,325	83.7%	83.7%	$	31.40	Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$	25.21
Collins Crossing	Richardson	TX	300,887	84.4%	83.5%	$	27.42	390 Interlocken	Broomfield	CO	241,512	99.4%	99.4%	$	33.03
Liberty Plaza	Addison	TX	216,952	74.1%	72.8%	$	23.12	1001 17th Street	Denver	CO	655,420	96.0%	95.8%	$	37.08
								600 17th Street	Denver	CO	610,730	87.5%	86.3%	$	32.26
Houston								West Region Total			2,624,512	85.3%	85.6%	$	33.39
Park Ten	Houston	TX	157,460	71.7%	71.7%	$	31.29
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	29.01	Total Owned Properties			9,660,279	81.0%	78.8%	$	29.89
Park Ten Phase II	Houston	TX	156,746	95.0%	95.0%	$	29.14
Westchase I & II	Houston	TX	629,025	52.4%	52.4%	$	28.03

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive	Miami	FL	213,182	73.1%	48.7%	$	26.23

Atlanta
One Overton Park	Atlanta	GA	387,267	95.5%	93.2%	$	21.58
One Ravinia	Atlanta	GA	386,602	80.8%	79.3%	$	26.49
Two Ravinia	Atlanta	GA	411,047	68.6%	67.3%	$	27.24
Pershing Plaza	Atlanta	GA	160,145	98.9%	98.9%	$	33.67
999 Peachtree	Atlanta	GA	621,946	84.5%	84.3%	$	34.52
South Region Total			4,600,142	76.2%	75.4%	$	28.45

(a)	Weighted Occupied Percentage for the year ended March 31, 2021.

(b)	Weighted Average GAAP Rent per Occupied Square Foot.

(c)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

March 31, 2021| Page 16


	Managed Portfolio Overview

MSA / Property Name

City

State

Square Feet

MSA / Property Name

City

State

Square Feet

Southeast Region

Midwest Region

Atlanta

Indianapolis

Satellite Place

Duluth

134,785

Monument Circle

Indianapolis

213,760

Southeast Region Total

134,785

Midwest Region Total

213,760

Total Managed

348,545

Total Owned & Managed

10,008,824

March 31, 2021| Page 17

Tenants by Industry

(By Square Feet)

March 31, 2021| Page 18


	20 Largest Tenants with Annualized Rent and Remaining Term


			Remaining	Aggregate				% of Aggregate
	Tenant	Number of	Lease Term	Leased	% of Total	Annualized		Leased
	Name	Leases	in Months	Square Feet	Square Feet	Rent (a)		Annualized Rent

1	Centene Management Company, LLC (b)	3	111, 111, 111	317,101	3.3%	$	5,584,634	2.5%
2	CITGO Petroleum Corporation	1	144	248,399	2.6%		2,923,656	1.3%
3	Ovintiv USA Inc.	1	11	234,495	2.4%		9,967,297	4.5%
4	Eversheds Sutherland (US) LLP	1	61	179,868	1.9%		6,107,389	2.8%
5	EOG Resources, Inc.	1	69	169,167	1.7%		6,175,431	2.8%
6	US Government (c)	2	58, 118	168,573	1.7%		1,265,508	0.6%
7	The Vail Corporation	1	108	164,636	1.7%		5,595,595	2.6%
8	Lennar Homes, LLC (d)	1	192	155,808	1.6%		—	0.0%
9	T-Mobile South, LLC dba T-Mobile	1	53	151,792	1.6%		4,143,922	1.9%
10	Citicorp Credit Services, Inc	1	77	146,260	1.5%		4,766,613	2.2%
11	Jones Day	1	2	140,342	1.5%		4,952,119	2.3%
12	Kaiser Foundation Health Plan	1	38	120,979	1.3%		3,669,785	1.7%
13	Argo Data Resource Corporation (e)	1	30, 113	114,200	1.2%		3,256,984	1.5%
14	Giesecke & Devrient America	1	45	112,110	1.2%		2,180,540	1.0%
15	Randstad General Partner (US) (f)	1	3, 129	111,952	1.2%		29,108	0.0%
16	VMWare, Inc.	1	62	100,853	1.0%		3,456,232	1.6%
17	Deluxe Corporation (g)	1	193	98,922	1.0%		—	0.0%
18	Ping Identity Corp.	1	63	89,856	0.9%		3,529,544	1.6%
19	Common Grounds, LLC (h)	2	123,138	76,984	0.8%		3,079,379	1.4%
20	Somerset CPAs, P.C. (i)	1	15, 139	71,163	0.7%		1,723,450	0.8%

			Total	2,973,460	30.8%	$	72,407,186	33.1%

Footnotes on next page

March 31, 2021| Page 19


	20 Largest Tenants with Annualized Rent and Remaining Term

Footnotes:

(a) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at March 31, 2021 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b)	Includes 70,881 square feet, which commences in 2022 and is currently occupied by another tenant with a lease expiring December 31, 2021.

(d) Rent commences on April 1, 2021.

(e) Includes 28,550 square feet, which expire in 2023. The remaining 85,650 square feet expire in 2030.

(f) Includes 5,991 square feet, which expire in 2021 and 105,961 square feet, which expire on December 31, 2021.

(g) Lease commences on July 1, 2021 and rent commences on August 1, 2022.

(h) Includes 27,478 square feet, which expire in 2031 and 49,506 square feet, which expire in 2032.

(i) Includes 707 square feet, which expire in 2022 and 70,456 square feet, which expire in 2032.

March 31, 2021| Page 20

Leasing Activity

(Owned Portfolio)


					Year		Year
	Three Months Ended				Ended		Ended
Leasing Activity (a)		31-Mar-21		31-Mar-20		31-Dec-20		31-Dec-19
(in Square Feet - SF)
New leasing		7,000		144,000		368,000		534,000
Renewals and expansions		370,000		136,000		762,000		883,000
		377,000		280,000		1,130,000		1,417,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	28.46	$	31.17	$	28.47	$	31.78
Weighted average lease term		9.3 Years		6.3 Years		8.3 Years		8.3 Years

Increase or decrease over average GAAP rents in prior year (b)		(1.7)%		10.5%		7.7%		10.9%

Average free rent		9 Months		4 Months		5 Months		3 Months
Tenant Improvements	$	18.67	$	22.13	$	34.07	$	34.44
Leasing Costs	$	10.23	$	7.80	$	11.36	$	13.51

(a) Leasing activity includes leasing at redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b) The increase or decrease percentage is calculated by comparing average GAAP rents at properties that had leasing activity in the current year to average GAAP rents at the same properties in the prior year.

March 31, 2021| Page 21

Lease Expirations by Square Feet (a)

(Owned Portfolio)

(a)

Lease expirations include leases in redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

March 31, 2021| Page 22

Lease Expirations with Annualized Rent per Square Foot

(Owned Portfolio)


			Rentable				Annualized		Percentage
	Number of		Square				Rent		of Total
Year of	Leases		Footage		Annualized		Per Square		Annualized
Lease	Expiring		Subject to		Rent Under		Foot Under		Rent Under
Expiration	Within the		Expiring		Expiring		Expiring		Expiring	Cumulative
December 31,	Year (a)		Leases		Leases (b)		Leases		Leases	Total

2021	42	(c)	476,748		$	14,505,381	$	30.43	6.6%	6.6%
2022	79		850,092			31,040,626		36.51	14.2%	20.8%
2023	67		454,431			15,255,345		33.57	7.0%	27.8%
2024	63		857,738			26,957,166		31.43	12.3%	40.1%
2025	57		855,745			25,023,712		29.24	11.5%	51.6%
2026	42		809,877			25,502,867		31.49	11.7%	63.3%
2027	20		720,326			21,639,882		30.04	9.9%	73.2%
2028	19		450,799			11,283,042		25.03	5.2%	78.4%
2029	12		405,689			12,769,334		31.48	5.8%	84.2%
2030	9		735,881			19,180,497		26.06	8.8%	93.0%
2031 and thereafter	73		1,206,475	(d)		15,368,291		12.74	7.0%	100.0%
Leased total	483		7,823,801		$	218,526,143	$	27.93	100.0%
Vacancies as of 3/31/21			1,725,009
Redevelopment properties (e)			111,469
Total Portfolio Square Footage			9,660,279

(a)

The number of leases approximates the number of tenants. Tenants with lease maturities in different years are included in annual totals for each lease. Tenants may have multiple leases in the same year. Includes annualized rent from redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b)	Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at March 31, 2021 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(c)	Includes 3 leases that are month-to-month.

(d)	Includes 117,089 square feet that are non-revenue producing building amenities.

(e)	Redevelopment properties include properties being developed, redeveloped, or where redevelopment is complete, but are in lease-up and that are not stabilized.

March 31, 2021| Page 23

Redevelopment Activity

(in 000's except square feet)

Estimated

Incurred

Percent

Estimated

Leased

Occupied

Rentable

Anticipated

Through

Leased

Completion

Stabilization

Property Name

City

State

Square Feet

Investment (1)

31-Mar-21

Date

Redevelopment in Process

Stonecroft

Chantilly

111,469

18,462

2,281

0.0%

July-21

January-22

December-22

Total Office in Process

111,469

18,462

2,281

(1)

Anticipated Investment includes capitalized redevelopment costs, capitalized interest and lease-up costs.

March 31, 2021| Page 24


	Capital Expenditures


(in thousands)
	For the Three Months Ended
	31-Mar-21

Tenant improvements	$	4,491
Deferred leasing costs		2,597
Non-investment capex		5,336
Total Capital Expenditures	$	12,424


	For the Three Months Ended								Year Ended
	31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Tenant improvements	$	10,716	$	13,531	$	8,022	$	837	$	33,106
Deferred leasing costs		2,730		603		2,033		7,432		12,798
Non-investment capex		4,527		6,581		6,373		6,105		23,586
Total Capital Expenditures	$	17,973	$	20,715	$	16,428	$	14,374	$	69,490

First generation leasing and investment capital was $9.6 million for three months ended March 31, 2021 and $19.7 million for the year ended December 31, 2020.

March 31, 2021| Page 25

Transaction Activity

(in thousands except for Square Feet)

Recent Acquisitions:

City

State

Square Feet

Date Acquired

Purchase Price

2016

Plaza Seven

Minneapolis

325,796

6/6/16

82,000

Pershing Plaza

Atlanta

160,145

8/10/16

45,450

600 17th Street

Denver

613,527

12/1/16

154,260

2015

Two Ravinia

Atlanta

442,130

4/8/15

78,000


Recent Dispositions:					Gross Sale		Gain (loss)
	City	State	Square Feet	Date Sold	Proceeds		on Sale
2020
Emperor Boulevard	Durham	NC	259,531	12/23/20	$	89,700	$	41,928

2017
Hillview	Milpitas	CA	36,288	1/6/17	$	6,342	$	2,289
East Baltimore	Baltimore	MD	325,445	10/20/17		32,547		(20,770)

2016
Lakeside I	Maryland Heights	MO	127,778	4/5/16	$	20,189	$	4,154
Federal Way	Federal Way	WA	117,010	12/16/16		7,500		(7,092)

2015
Willow Bend	Plano	TX	117,050	2/23/15	$	20,750	$	1,462
Eden Bluff	Eden Prairie	MN	153,028	3/31/15		28,000		9,000
Park Seneca	Charlotte	NC	109,699	5/13/15		8,150		949
Montague	San Jose	CA	145,561	12/9/15		30,250		12,251

March 31, 2021| Page 26

Loan Portfolio of Secured Real Estate

(in thousands)

(dollars in thousands, except footnotes)

Maximum

Amount

Interest

Maturity

Amount

Outstanding

Rate at

Sponsored REIT

Location

Date

of Loan

31-Mar-21

Mortgage loan secured by property

FSP Monument Circle LLC (1)

Indianapolis, IN

6-Dec-22

21,000

7.51%

21,000

(1)	Includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower.

March 31, 2021| Page 27


	Net Asset Value Components


(in thousands except per share data)
	As of		Assets:			Other information:
	31-Mar-21		Loans outstanding on secured RE	$	21,000	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	during 2021 and 2022 (in 000's)		209
Shares outstanding		107,328.2	Straight-line rent receivable		69,743
Closing price	$	5.45	Asset held for sale		—	Straight-line rental revenue current quarter	$	1,904
Market capitalization	$	584,939	Cash, cash equivalents and restricted cash		4,113
Debt		947,500	Tenant rent receivables		4,337	Management fee income current quarter	$	16
Total Market Capitalization	$	1,532,439	Prepaid expenses		3,483	Interest income from secured loans		394
			Office computers and furniture		147	Management fees and interest income from loans	$	410
			Other assets:
	3 Months		Deferred financing costs, net		4,141
	Ended		Other assets: Derivative Market Value		—
NOI Components	31-Mar-21		Other assets - Right-to-Use Asset		1,362
				$	108,326
Same Store NOI (1)	$	29,119
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		29,119	Debt (excluding contra for unamortized financing costs)	$	947,500
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		64,846	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	29,119	Tenant security deposits		8,041
			Other liabilities: lease liability		1,444	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		13,698
Financial Statement Reconciliation:				$	1,035,529	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	58,623
Rental operating expenses		(15,939)				(4) HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI.
Real estate taxes and insurance		(12,366)
NOI from dispositions & redevelopment properties		—				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(67)
Management & other fees (5)		(1,132)
Property NOI (1)	$	29,119

March 31, 2021| Page 28


	Appendix: Non-GAAP Financial Measure Definitions

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 or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

FFO should not be considered as an alternative to net income or loss (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 as of May 17, 2016 in the table on page 9 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 or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.

March 31, 2021| Page 29


	Appendix: Non-GAAP Financial Measure Definitions

Definition of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
and Adjusted EBITDA

EBITDA is defined as net income or loss plus interest expense, income tax expense and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA excluding hedge ineffectiveness, gains and losses on sales of properties or shares of equity investments or provisions for losses on assets held for sale or equity investments. EBITDA and Adjusted EBITDA are not intended to represent cash flow for the period, are not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and are not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA and Adjusted EBITDA are presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA or Adjusted EBITDA the same way, this presentation may not be comparable to similarly titled measures of other companies. The Company believes that net income or loss is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA and Adjusted EBITDA.

Definition of Property Net Operating Income (Property NOI)

The Company provides property performance based on Net Operating Income, which we refer to as NOI. Management believes that investors are interested in this information. NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus general and administrative expenses, depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REITs, interest income, management fee income, hedge ineffectiveness, gains or losses on the sale of assets and excludes non-property specific income and expenses. The information presented includes footnotes and the data is shown by region with properties owned in the periods presented, which we call Same Store. The comparative Same Store results include properties held for the periods presented and exclude properties that are redevelopment properties. We also exclude properties that have been placed in service, but that do not have operating activity for all periods presented, dispositions and significant nonrecurring income such as bankruptcy settlements and lease termination fees. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized. NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

March 31, 2021| Page 30


	Appendix: Non-GAAP Financial Measure Definitions

Definition of Adjusted Funds From Operations (AFFO)

The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (3) excluding the effect of straight-line rent, (4) plus the amortization of deferred financing costs, (5) plus the value of shares issued for compensation and (6) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions.

We exclude development/redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property. We also exclude first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned for at acquisition.

AFFO should not be considered as an alternative to net income or loss (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 may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.

March 31, 2021| Page 31

Investor Relations Contact

Georgia Touma ~ 877.686.9496

InvestorRelations@fspreit.com

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300 ~ www.fspreit.com

March 31, 2021| Page 32

FRANKLIN STREET PROPERTIES CORP /MA/ - FORM 8-K - EX-99.2 - May 4, 2021

Attached files

FRANKLIN STREET PROPERTIES CORP /MA/ Reports