Franklin Street Properties 8K Results of Operations and Financial Condition | FSP 29 Apr 14

Exhibit 99.2

Supplemental Operating
and Financial Data

First Quarter 2014

Franklin Street Properties Corp. ● 401 Edgewater Place ● Wakefield, MA 01880 ● (781) 557-1300

www.franklinstreetproperties.com

Table of Contents

	*Page*		*Page*

Company Overview	3	Tenant Analysis and Leasing Activity
		20 Largest Tenants, Industry Profile	18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term	19
Financial Highlights	4	Leasing Activity	20
Income Statements	5	Lease Expirations by Square Feet	21
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot	22
Cash Flow Statements	7	Capital Expenditures	23
Property Net Operating Income (NOI)	8
		Transaction Activity	24
Reconciliation
FFO & AFFO	9	Loan Portfolio of Secured Real Estate	25
EBITDA	10
Property NOI	11	Net Asset Value Components	26

Debt Summary	12	Appendix: Definitions of Non-GAAP Measures
		FFO	27
Capital Analysis	13	EBITDA and AFFO	28
		NOI	29
Owned and Managed Portfolio Overview	14-17

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 general economic conditions, uncertainties relating to fiscal policy, changes in government regulations, regulatory uncertainty, geopolitical events, local real estate conditions, the performance of properties that FSP has acquired or may acquire, the timely lease-up of properties and other risks, detailed from time to time in FSP’s SEC reports. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

March 31, 2014

Company Overview

Overview

Franklin Street Properties Corp. (“FSP”, “we”, “our” or the “Company”) (NYSE MKT: FSP) is investing in institutional-quality office properties in the U.S. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our top five markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. 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. FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and registered broker/dealer that previously sponsored the organization of single-purpose entities that own real estate and the private placement of equity in those entities, which we refer to as “Sponsored REITs”.

Our Business

As of March 31, 2014, the Company owned and operated a portfolio of real estate consisting of 39 properties, managed 14 Sponsored REITs and held six promissory notes secured by mortgages on real estate owned by Sponsored REITs. From time-to-time, the Company may acquire 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.

Management Team

George J. Carter		Scott H. Carter
President, Chief Executive Officer		Executive Vice President, General
Chairman of the Board		Counsel and Assistant Secretary

Barbara J. Fournier		Jeffrey B. Carter
Executive Vice President, Chief Operating Officer,		Executive Vice President and
Treasurer, Secretary and Director		Chief Investment Officer

Janet Notopoulos		John G. Demeritt
Executive Vice President and Director		Executive Vice President and
		Chief Financial Officer

Snapshot (as of March 31, 2014)
Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
Total Properties	39
Total Square Feet	9.7 Million
Trading Symbol	FSP
Exchange	NYSE MKT
Common Shares Outstanding	100,187,405
Quarterly Dividend	$0.19
Dividend Yield	6.0%
Total Market Capitalization	$2.2 Billion
Insider Holdings	10.2%

March 31, 2014

Summary of Financial Highlights
(in thousands, except per share data)

(in thousands except per share amounts, SF & number of properties)	For the Three Months Ended
	31-Mar-14			31-Dec-13			30-Sep-13			30-Jun-13			31-Mar-13
Income Items:
Rental revenue	$	61,597		$	61,307		$	56,760		$	46,017		$	42,842
Total revenue		63,263			63,024			58,446			47,671			44,495
Adjusted EBITDA*		35,186			35,645			31,862			26,074			24,712
Equity in earnings in non-consolidated REITs		(484	)		(543	)		(431	)		(196	)		(188	)
Net income		3,573			6,591			4,094			4,741			4,401
FFO*		28,779			29,220			27,566			22,810			21,237

Per Share Data:
EPS	$	0.04		$	0.07		$	0.04		$	0.05		$	0.05
FFO*	$	0.29		$	0.29		$	0.28		$	0.25		$	0.26
Weighted Average Shares (diluted)		100,187			100,187			100,187			91,847			82,937
Closing share price	$	12.60		$	11.95		$	12.74		$	13.20		$	14.62
Dividend	$	0.19		$	0.19		$	0.19		$	0.19		$	0.19
Payout Ratio:		66%			66%			69%			77%			74%

Balance Sheet Items:
Real estate, net	$	1,558,136		$	1,568,338		$	1,575,690		$	1,280,252		$	1,128,398
Other assets, net		467,539			475,696			500,939			428,789			383,244
Total assets, net		2,025,675			2,044,034			2,076,629			1,709,041			1,511,642
Total liabilities, net		993,273			993,868			1,017,480			627,997			657,809
Shareholders' equity		1,032,402			1,050,166			1,059,149			1,081,044			853,833

Market Capitalization and Debt:
Total Market Capitalization (a)	$	2,198,861		$	2,123,739		$	2,227,888		$	1,903,974		$	1,834,295
Total debt outstanding		936,500			926,500			951,500			581,500			621,750
Debt to Total Market Capitalization		42.6%			43.6%			42.7%			30.5%			33.9%
Debt to Adjusted EBITDA		6.7			6.5			7.5			5.6			6.3

Owned Portfolio Leasing Statistics:
Owned portfolio assets (includes asset held for sale before 12/31/13)		39			39			40			38			37
Portfolio total SF		9,686,055			9,685,285			9,807,339			8,529,752			7,856,859
Portfolio % leased		94.5%			94.1%			93.8%			94.4%			94.4%

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

* See pages 9 & 10 for reconciliations of Net Income to FFO and Adjusted EBITDA, respectively, and the Appendix for Defintions of these Non-GAAP Measures beginning on page 27.

March 31, 2014

Condensed Consolidated Income Statements
($ in thousands, except per share amounts)

	Three															For the
	Months Ended			For the Three Months Ended												Year Ended
	31-Mar-14			31-Mar-13			30-Jun-13			30-Sep-13			31-Dec-13			31-Dec-13

Revenue:
Rental	$	61,597		$	42,842		$	46,017		$	56,760		$	61,307		$	206,926
Related party revenue:
Management fees and interest income from loans		1,643			1,622			1,642			1,665			1,717			6,646
Other		23			31			12			21			—			64
Total revenue		63,263			44,495			47,671			58,446			63,024			213,636

Expenses:
Real estate operating expenses		15,071			10,770			11,116			13,991			15,223			51,100
Real estate taxes and insurance		9,251			6,595			7,308			8,801			8,912			31,616
Depreciation and amortization		24,300			15,781			16,919			22,163			23,976			78,839
Selling, general and administrative		3,272			2,532			3,204			3,477			2,698			11,911
Interest		7,176			4,208			4,174			5,474			7,198			21,054
Total expenses		59,070			39,886			42,721			53,906			58,007			194,520

Income before interest income, equity in earnings of non-consolidated REITs and taxes		4,193			4,609			4,950			4,540			5,017			19,116
Interest income		1			1			4			5			6			16
Equity in losses of non-consolidated REITs		(484	)		(188	)		(196	)		(431	)		(543	)		(1,358	)

Income before taxes on income		3,710			4,422			4,758			4,114			4,480			17,774
Income tax expense		137			119			115			118			128			480

Income from continuing operations		3,573			4,303			4,643			3,996			4,352			17,294
Income from discontinued operations		—			98			98			98			81			375
Gain (loss) on sale, less applicable income tax		—			—			—			—			2,158			2,158

Net income	$	3,573		$	4,401		$	4,741		$	4,094		$	6,591		$	19,827

Weighted average number of shares outstanding,basic and diluted		100,187			82,937			91,847			100,187			100,187			93,855

Earnings per share, basic and diluted, attributable to:
Continuing operations	$	0.04		$	0.05		$	0.05		$	0.04		$	0.04		$	0.18
Discontinued operations		—			—			—			—			—			—
Gain (loss) on sale, less applicable income tax		—			—			—			—			0.03			0.03
Net income per share, basic and diluted	$	0.04		$	0.05		$	0.05		$	0.04		$	0.07		$	0.21

March 31, 2014

Condensed Consolidated Balance Sheets
(in thousands)

	March 31,			March 31,			June 30,			September 30,			December 31,
	2014			2013			2013			2013			2013
Assets:
Real estate assets:
Land	$	185,479		$	141,545		$	157,879		$	185,479		$	185,479
Buildings and improvements		1,605,808			1,175,743			1,320,703			1,599,519			1,603,941
Fixtures and equipment		1,296			904			960			985			1,170
		1,792,583			1,318,192			1,479,542			1,785,983			1,790,590
Less accumulated depreciation		234,447			189,794			199,290			210,293			222,252
Real estate assets, net		1,558,136			1,128,398			1,280,252			1,575,690			1,568,338

Acquired real estate leases, net		172,262			102,274			129,226			194,893			183,454
Investment in non-consolidated REITs		79,983			81,746			81,523			81,065			80,494
Assets held for sale		—			10,431			10,286			10,143			—
Cash and cash equivalents		20,031			17,282			24,962			25,539			19,623
Restricted cash		688			583			602			623			643
Tenant rent receivables, net		6,035			2,357			2,331			6,029			5,102
Straight-line rent receivable, net		44,392			36,210			37,865			40,086			42,261
Prepaid expenses and other assets		9,954			10,545			12,532			11,846			11,215
Related party mortgage loan receivable		101,916			96,896			97,846			98,846			99,746
Other assets: derivative asset		4,801			—			6,739			4,365			5,321
Deferred leasing commissions, net		27,477			24,920			24,877			27,504			27,837
Total assets	$	2,025,675		$	1,511,642		$	1,709,041		$	2,076,629		$	2,044,034

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	316,500		$	221,750		$	181,500		$	331,500		$	306,500
Term loan payable		620,000			400,000			400,000			620,000			620,000
Accounts payable and accrued expenses		34,390			25,493			29,971			39,907			44,137
Accrued compensation		1,027			540			1,677			2,432			2,985
Tenant security deposits		4,258			2,474			3,074			3,891			4,027
Other liabilities: derivative termination value		3,825			778			—			4,579			2,044
Acquired unfavorable real estate leases, net		13,273			6,774			11,775			15,171			14,175
Total liabilities		993,273			657,809			627,997			1,017,480			993,868

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—			—			—			—			—
Common stock		10			8			10			10			10
Additional paid-in capital		1,273,556			1,042,876			1,273,585			1,273,585			1,273,556
Accumulated other comprehensive income (loss)		976			(778	)		6,739			(214	)		3,277
Accumulated distributions in excess of accumulated earnings		(242,140	)		(188,273	)		(199,290	)		(214,232	)		(226,677	)
Total stockholders’ equity		1,032,402			853,833			1,081,044			1,059,149			1,050,166
Total liabilities and stockholders’ equity	$	2,025,675		$	1,511,642		$	1,709,041		$	2,076,629		$	2,044,034

March 31, 2014

Condensed Consolidated Statements of Cash Flows
(in thousands)

	Three Months ended March 31,						Twelve Months ended December 31
	2014			2013			2013			2012

Cash flows from operating activities:
Net income	$	3,573		$	4,401		$	19,827		$	7,633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		24,797			16,415			81,267			57,500
Amortization of above market lease		(11	)		(3	)		(365	)		71
Gain (loss) on sale, less applicable income tax		—			—			(2,158	)		14,826
Equity in earnings (losses) from non-consolidated REITs		484			188			1,358			(2,033	)
Distributions from non-consolidated REITs		—			—			—			705
Increase in bad debt reserve		—			(1,190	)		(1,250	)		65
Changes in operating assets and liabilities:
Restricted cash		(45	)		(8	)		(68	)		(82	)
Tenant rent receivables		(933	)		582			(2,103	)		(354	)
Straight-line rents		(1,784	)		(657	)		(5,782	)		(4,464	)
Lease acquisition costs		(347	)		(189	)		(1,146	)		(2,520	)
Prepaid expenses and other assets		800			70			(1,547	)		(328	)
Accounts payable and accrued expenses		(7,257	)		(5,011	)		11,137			3,717
Accrued compensation		(1,958	)		(2,000	)		445			318
Tenant security deposits		231			(15	)		1,538			481
Payment of deferred leasing commissions		(1,113	)		(2,624	)		(9,125	)		(5,179	)

Net cash provided by operating activities		16,437			9,959			92,028			70,356

Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases		(4,850	)		(3,465	)		(574,065	)		(221,170	)
Investment in non-consolidated REITs		—			4,752			4,858			(1	)
Distributions in excess of earnings from non-consolidated REITs		27			27			108			2,105
Investment in related party mortgage loan receivable		(2,170	)		(3,000	)		(8,200	)		(74,580	)
Repayment of related party mortgage loan receivable		—						2,350			121,200
Changes in deposits on real estate assets		—			(1,500	)		—			—
Proceeds received on sales of real estate assets		—			—			12,301			157

Net cash used in investing activities		(6,993	)		(3,186	)		(562,648	)		(172,289	)

Cash flows from financing activities:
Distributions to stockholders		(19,036	)		(15,758	)		(69,588	)		(63,032	)
Proceeds (costs) from equity offering, net		—			—			230,682			—
Borrowings under Revolver		10,000			5,000			160,000			294,750
Repayments under Revolver		—			—			(70,250	)		(527,000	)
Borrowing (repayment) of term loan payable, net		—			—			220,000			400,000
Deferred Financing Costs		—			—			(1,868	)		(5,331	)

Net cash provided by (used in) financing activities		(9,036	)		(10,758	)		468,976			99,387

Net decreases in cash and cash equivalents		408			(3,985	)		(1,644	)		(2,546	)

Cash and cash equivalents, beginning of period		19,623			21,267			21,267			23,813

Cash and cash equivalents, end of period	$	20,031		$	17,282		$	19,623		$	21,267

March 31, 2014

Property Net Operating Income (NOI)*
with Same Store comparison
(in thousands)

(in thousands)
	Rentable
	Square Feet		Three Months Ended				Inc			%
Region	or RSF		31-Mar-14		31-Mar-13		(Dec)			Change
East		1,442	$	4,727	$	4,756	$	(29	)		-0.6%
MidWest		1,682		5,107		4,839		268			5.5%
South		3,523		14,135		13,227		908			6.9%
West		1,088		2,567		2,350		217			9.2%
Same Store		7,735		26,536		25,172		1,364			5.4%

Acquisitions		1,951		10,037		—		10,037			39.9%
Property NOI from the continuing portfolio		9,686		36,573		25,172		11,401			45.3%
Dispositions and asset held for sale				—		252		(252	)		-1.4%
Property NOI			$	36,573	$	25,424	$	11,149			43.9%

Same Store			$	26,536	$	25,172	$	1,364			5.4%

Nonrecurring Items in NOI (a)				707		63		644			-2.6%

Comparative Same Store			$	25,829	$	25,109	$	720			2.9%

(a)

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

See page 11 for a reconciliation of Net Income to Property NOI and the Appendix for Definitions of Non-GAAP Measures beginning on page 27. Property NOI Excludes NOI from investments in and interest income from secured loans to non-consolidated REITs.

March 31, 2014

FFO & AFFO Reconciliation
(in thousands, except per share amounts)

	Three															For the
	Months Ended			For the Three Months Ended:												Year Ended
	31-Mar-14			31-Mar-13			30-Jun-13			30-Sep-13			31-Dec-13			31-Dec-13

Net income	$	3,573		$	4,401		$	4,741		$	4,094		$	6,591		$	19,827

Gain (loss) on sale, less applicable income tax		—			—			—			—			(2,158	)		(2,158	)
GAAP income from non-consolidated REITs		484			188			196			431			543			1,358
FFO from non-consolidated REITs		419			647			696			459			346			2,148
Depreciation & amortization		24,289			15,984			17,044			22,176			23,886			79,090
NAREIT FFO*		28,765			21,220			22,677			27,160			29,208			100,265
Acquisition costs		14			17			133			406			12			568
Funds From Operations (FFO)*	$	28,779		$	21,237		$	22,810		$	27,566		$	29,220		$	100,833


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*		28,779			21,237			22,810			27,566			29,220			100,833
Reverse FFO from non-consolidated REITs		(419	)		(647	)		(696	)		(459	)		(346	)		(2,148	)
Distributions from non-consolidated REITs		27			27			27			27			26			107
Amortization of deferred financing costs		499			429			429			456			499			1,813
Straight-line rent		(1,783	)		(657	)		(1,186	)		(2,078	)		(1,862	)		(5,783	)
Building improvements		(1,119	)		(1,118	)		(1,622	)		(1,552	)		(1,479	)		(5,771	)
Tenant improvements		(1,133	)		(1,729	)		(5,754	)		(4,596	)		(2,992	)		(15,071	)
Leasing commissions		(1,112	)		(2,813	)		(1,087	)		(3,821	)		(1,536	)		(9,257	)
Adjusted Funds From Operations (AFFO)*	$	23,739		$	14,729		$	12,921		$	15,543		$	21,530		$	64,723

Per Share Data:
EPS	$	0.04		$	0.05		$	0.05		$	0.04		$	0.07		$	0.21
FFO*		0.29			0.26			0.25			0.28			0.29			1.07
AFFO*		0.24			0.18			0.14			0.16			0.21			0.69

Weighted Average Shares (basic and diluted)		100,187			82,937			91,847			100,187			100,187			93,855

* See the Appendix for Definitions of these Non-GAAP Measures beginning on page 27.

March 31, 2014

EBITDA Reconciliation
(in thousands, except ratio amounts)

	Three
	Months Ended		For the Three Months Ended									Year Ended
	31-Mar-14		31-Mar-13		30-Jun-13		30-Sep-13		31-Dec-13			31-Dec-13

Net income	$	3,573	$	4,401	$	4,741	$	4,094	$	6,591		$	19,827
Interest expense		7,176		4,208		4,174		5,474		7,198			21,054
Depreciation and amortization		24,300		15,984		17,044		22,176		23,886			79,090
Income taxes		137		119		115		118		128			480
EBITDA		35,186		24,712		26,074		31,862		37,803			120,451
Excluding (gain) loss on sale, less applicable income tax		—		—		—		—		(2,158	)		(2,158	)
Adjusted EBITDA	$	35,186	$	24,712	$	26,074	$	31,862	$	35,645		$	118,293

Interest expense	$	7,176	$	4,208	$	4,174	$	5,474	$	7,198		$	21,054
Scheduled principal payments		—		—		—		—		—			—
Interest and scheduled principal payments	$	7,176	$	4,208	$	4,174	$	5,474	$	7,198		$	21,054

Interest coverage ratio		4.90		5.87		6.25		5.82		4.95			5.62

Debt service coverage ratio		4.90		5.87		6.25		5.82		4.95			5.62


Debt	$	936,500	$	621,750	$	581,500	$	951,500	$	926,500

Adjusted EBITDA		35,186		24,712		26,074		31,862		35,645
Annualized		140,744		98,848		104,296		127,448		142,580

Debt-to-EBITDA		6.7		6.3		5.6		7.5		6.5

* See the Appendix for Definitions of these Non-GAAP Measures beginning on page 27. Amounts in the 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.

March 31, 2014

Reconciliation of Net Income to Property NOI*
(in thousands)

Reconciliation to Net income	Three Months
	Ended
	31-Mar-14			31-Mar-13
Net Income	$	3,573		$	4,401
Add (deduct):
Discontinued operations		—			(98	)
Management fee income		(646	)		(559	)
Depreciation and amortization		24,300			15,784
Amortization of above/below market leases		(11	)		48
Selling, general and administrative		3,272			2,532
Interest expense		7,176			4,208
Interest income		(1,410	)		(1,353	)
Equity in earnings of
nonconsolidated REITs		484			187
Non-property specific items, net		(165	)		22

Property NOI from the continuing portfolio	$	36,573		$	25,172

Dispositions and asset held for sale		—			252
Property NOI	$	36,573		$	25,424

* See the Appendix for Definition of Non-GAAP Measures beginning on page 27.

March 31, 2014

Debt Summary

(a)

(dollars in thousands)

Maximum

Amount

Interest

Maturity

Amount

Drawn at

Rate

Rate at

Facility

Date

of Loan

31-Mar-14

Components

31-Mar-14

Fee

2012 Revolver

27-Sep-16

$ 500,000

$ 316,500

L+1.45%

1.60%

0.30%

2012 Term Loan

27-Sep-17

400,000

0.75% + 1.45%

2.20%

0.30%

2013 Term Loan

26-Aug-20

220,000

2.32% + 1.65%

3.97%

$ 1,120,000

$ 936,500

2.41%

(a) Interest rate excludes amortization of deferred financing costs and facility fees, see notes below

On August 26, 2013, we entered into a term loan we call the 2013 Term Loan and borrowed $220 million. On September 27, 2012, we entered into a new bank facility we call the 2012 Credit Facility for a total of $900 million, which is comprised of a line of credit that we can borrow up to $500 million on, which we call the 2012 Revolver and a term loan for $400 million that we call the 2012 Term Loan. Additional information about these loans are in the footnotes to our financial statements. Pricing is leverage based over LIBOR for the 2013 Term Loan and the 2012 Credit Facility. Each of these facilities also has the option to use the respective bank’s base rate.

•

The 2013 Term Loan fixed LIBOR at 2.32% for seven years. The current leverage spread over LIBOR is 1.65%, so our interest rate is 3.97% as of March 31, 2014.

•

The 2012 Credit Facility has the 2012 Term Loan with LIBOR fixed at 0.75% for five years and the 2012 Revolver is at the LIBOR rate. The current leverage spread for the 2012 Credit Facility is 1.45%, so our interest rate is 2.20% as of March 31, 2014.

•

The total amount available under the 2012 Credit Facility is $900 million and is subject to a facility fee on the entire amount based on the leverage ratio. As of March 31, 2014 the facility fee was 30 bps based on our leverage ratio, or approximately $2.7 million per year.

•

We incurred financing costs to close the 2013 Term Loan, 2012 Credit Facility and the 2011 Revolver that preceded the 2012 Credit Facility. These costs are deferred and amortized into interest expense during the terms of the loans. The annual run rate for amortization to interest expense from deferred financing costs is approximately $2.0 million.

•

The 2012 Revolver can be extended for 1 year at the Company’s option upon payment of fees and includes an accordion feature that allows for up to $250 million of additional borrowing capacity. The 2013 Term Loan includes an accordion feature that allows for up to $50 million of additional borrowing capacity. The accordion features are subject to receipt of lender commitments and satisfaction of certain customary conditions.

March 31, 2014

Capital Analysis
(in thousands, except per share amounts)

	31-Mar-14			31-Mar-13			30-Jun-13			30-Sep-13			31-Dec-13
Market Data:
Shares Outstanding		100,187			82,937			100,187			100,187			100,187
Closing market price per share	$	12.60		$	14.62		$	13.20		$	12.74		$	11.95
Market capitalization	$	1,262,361		$	1,212,545		$	1,322,474		$	1,276,388		$	1,197,239
Total Debt		936,500			621,750			581,500			951,500			926,500
Total Market Capitalization	$	2,198,861		$	1,834,295		$	1,903,974		$	2,227,888		$	2,123,739

Dividend Data:
Total dividends paid	$	19,036		$	15,758		$	15,758		$	19,036		$	19,036
Common dividend per share	$	0.19		$	0.19		$	0.19		$	0.19		$	0.19
Quarterly dividend as a % of FFO*		65.5%			73.1%			76.0%			67.9%			65.5%

Liquidity:
Cash and cash equivalents	$	20,031		$	17,282		$	24,962		$	25,539		$	19,623
Revolving credit facilities:
Gross potential available under the 2012 Credit Facility		900,000			900,000			900,000			900,000			900,000
Less:
Outstanding balance		(716,500	)		(621,750	)		(581,500	)		(731,500	)		(706,500	)
Total Liquidity	$	203,531		$	295,532		$	343,462		$	194,039		$	213,123

*See page 9 for a reconciliation of Net Income to FFO and the Appendix for Definitions of Non-GAAP Measures beginning on page 27.

March 31, 2014

Portfolio Overview

	For the Three Months Ended
	31-Mar-14	31-Dec-13	30-Sep-13	30-Jun-13	31-Mar-13
Owned portfolio of commercial real estate:
Number of properties (a)	39	39	40	38	37
Square feet	9,686,055	9,685,285	9,807,339	8,529,752	7,856,859
Leased percentage	94.5%	94.1%	93.8%	94.4%	94.4%

Investments in non-consolidated
commercial real estate:
Number of properties (a)	2	2	2	2	2
Square feet	1,395,500	1,395,500	1,395,500	1,395,500	1,392,316
Leased percentage	64.0%	64.1%	61.5%	67.6%	66.1%

Single Asset REITs (SARs) managed:
Number of properties	12	12	13	13	13
Square feet	3,067,199	3,067,199	3,323,198	3,323,566	3,323,566
Leased percentage	87.4%	87.4%	86.6%	83.9%	87.8%

Total owned (a) , investments
and managed properties:
Number of properties	53	53	55	53	52
Square feet	14,148,754	14,147,984	14,526,037	13,248,818	12,572,741
Leased percentage	90.0%	89.7%	89.1%	89.0%	89.5%

(a) Includes asset held for periods prior to 31-Dec-2013

March 31, 2014

Owned Portfolio Overview

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

East Region

Baltimore
East Baltimore	Baltimore	MD	325,445	77.8%	77.8%	$ 23.95

Washington, D.C.
Meadow Point	Chantilly	VA	138,537	92.6%	92.6%	$ 27.25
Stonecroft	Chantilly	VA	111,469	100.0%	100.0%	$ 39.07
Loudoun Tech Center	Dulles	VA	136,658	100.0%	100.0%	$ 15.52

Richmond
Innsbrook	Glen Allen	VA	298,456	99.9%	99.9%	$ 18.61

Charlotte
Park Seneca	Charlotte	NC	109,674	83.6%	81.6%	$ 15.09
Forest Park	Charlotte	NC	62,212	100.0%	100.0%	$ 13.75

Raleigh-Durham
Emperor Boulevard	Durham	NC	259,531	100.0%	100.0%	$ 35.57

East Region Total			1,441,982	93.0%	92.9%	$ 24.66

Midwest Region

Chicago
Northwest Point	Elk Grove Village	IL	176,848	100.0%	100.0%	$ 19.67
909 Davis Street	Evanston	IL	195,245	97.9%	97.9%	$ 36.04

Indianapolis
River Crossing	Indianapolis	IN	205,059	99.1%	99.1%	$ 23.48

St. Louis
Timberlake	Chesterfield	MO	232,766	98.3%	98.3%	$ 22.75
Timberlake East	Chesterfield	MO	116,197	91.0%	91.0%	$ 23.92
Lakeside Crossing	Maryland Heights	MO	127,778	100.0%	100.0%	$ 26.86

Minneapolis
Eden Bluff	Eden Prairie	MN	153,028	100.0%	100.0%	$ 29.11
121 South 8th Street	Minneapolis	MN	474,991	90.7%	89.8%	$ 13.68

Midwest Region Total			1,681,912	96.2%	95.9%	$ 22.69

(a) Weighted Occupied Percentage for the quarter ended March 31, 2014

(b) Weighted Average GAAP Rent per Occupied Square Foot

March 31, 2014

Owned Portfolio Overview

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

South Region

Dallas-Fort Worth
Willow Bend Office Center	Plano	TX	117,050	100.0%	94.9%	$ 20.52
Legacy Tennyson Center	Plano	TX	202,600	100.0%	100.0%	$ 17.59
One Legacy Circle	Plano	TX	214,110	100.0%	100.0%	$ 32.97
Addison Circle	Addison	TX	293,787	94.3%	94.3%	$ 24.40
Collins Crossing	Richardson	TX	298,766	99.5%	99.5%	$ 24.37
Liberty Plaza	Addison	TX	218,934	96.0%	89.7%	$ 20.67

Houston
Park Ten	Houston	TX	157,460	100.0%	99.1%	$ 24.11
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$ 29.20
Park Ten Phase II	Houston	TX	156,746	100.0%	100.0%	$ 30.06
Westchase I & II	Houston	TX	629,025	97.1%	97.1%	$ 31.71

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive	Miami	FL	212,619	100.0%	100.0%	$ 20.72

Atlanta
One Overton Place	Atlanta	GA	387,267	98.9%	98.9%	$ 22.18
One Ravinia	Atlanta	GA	386,603	93.6%	90.4%	$ 21.79
999 Peachtree	Houston	TX	621,946	93.0%	93.9%	$ 30.02
South Region Total			4,145,312	97.2%	96.5%	$ 26.05

West Region

Seattle
Federal Way	Federal Way	WA	117,010	54.4%	54.4%	$ 17.35

San Francisco-San Jose-Oakland
Hillview Center	Milpitas	CA	36,288	100.0%	100.0%	$ 16.13
Montague Business Center	San Jose	CA	145,951	100.0%	100.0%	$ 15.71

Denver
380 Interlocken	Broomfield	CO	240,184	95.2%	84.8%	$ 29.53
1999 Broadway	Denver	CO	673,839	95.6%	95.1%	$ 31.09
Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$ 23.81
390 Interlocken	Broomfield	CO	241,516	69.4%	69.4%	$ 26.40
1001 17th Street	Denver	CO	655,420	88.5%	88.5%	$ 33.74

Colorado Springs
Centennial Technology Center	Colorado Springs	CO	110,405	97.3%	85.4%	$ 16.15

West Region Total			2,416,849	89.8%	88.1%	$ 28.24


Total Owned			9,686,055	94.5%	93.7%	$ 25.76

(a) Weighted Occupied Percentage for the quarter ended March 31, 2014

(b) Weighted Average GAAP Rent per Occupied Square Foot

March 31, 2014

Managed Portfolio Overview

MSA / Property Name	City	State	Square Feet

Southeast Region

Columbia
1441 Main Street	Columbia	SC	264,857

Atlanta
Satellite Place	Duluth	GA	134,785

Southeast Region Total			399,642

Southwest Region

Dallas-Fort Worth
5601 Executive Drive	Irving	TX	152,121
Galleria North	Dallas	TX	379,518

Houston
Energy Tower I	Houston	TX	325,797

Denver
Highland Place	Centennial	CO	139,142
385 Interlocken	Broomfield	CO	296,868

Southwest Region Total			1,293,446

Midwest Region

Chicago
East Wacker (a)	Chicago	IL	860,429

Indianapolis
Monument Circle	Indianapolis	IN	213,609

St. Louis
Lakeside Crossing II	Maryland Heights	MO	116,000

Minneapolis
50 South Tenth Street	Minneapolis	MN	498,768

Kansas City
Grand Boulevard (b)	Kansas City	MO	535,071

Cincinnati
Centre Pointe V	West Chester	OH	135,936
Union Centre	West Chester	OH	409,798

Midwest Region Total			2,769,611

Total Managed			4,462,699

Total Owned & Managed			14,148,754

(a)

FSP has a Preferred Share Interest of 43.7% in the entity that owns this property.

(b)

FSP has a Preferred Share Interest of 27.0% in the entity that owns this property.

March 31, 2014

Tenants By Industry

March 31, 2014

20 Largest Tenants with Annualized Rent and
Remaining Term (Owned Portfolio)

			Remaining	Aggregate	% of Aggregate	Annualized	% of Aggregate
	Tenant	Number of	Lease Term	Leased	Leased	Rent	Leased
	Name	Leases	in Months	Square Feet	Square Feet	(in 000's)	Annualized Rent

1	TCF National Bank	2	21	263,111	2.7%	$ 2,896,157	1.3%
2	Quintiles Transnational Corp	1	60	259,531	2.7%	8,821,181	3.9%
3	CITGO Petroleum Corporation	1	95	248,399	2.6%	7,558,782	3.4%
4	Sutherland Asbill Brennan LLP	1	73	243,839	2.5%	7,410,774	3.3%
5	Newfield Exploration Company	1	95	234,495	2.4%	7,699,991	3.4%
6	US Government (a)	6	4,5,9,17,50,78	229,752	2.4%	7,207,773	3.2%
7	Burger King Corporation	1	54	212,619	2.2%	4,792,432	2.1%
8	Denbury Onshore, LLC	2	64	202,600	2.1%	3,510,042	1.6%
9	RGA Reinsurance Company	2	9	197,354	2.0%	4,304,802	1.9%
10	SunTrust Bank (b)	2	31, 90	182,888	1.9%	3,679,500	1.6%
11	Citicorp Credit Services, Inc	1	33	176,848	1.8%	3,689,049	1.6%
12	C.H. Robinson Worldwide, Inc	1	87	153,028	1.6%	4,221,068	1.9%
13	T-Mobile South, LLC dba T-Mobile	1	59	151,792	1.6%	3,532,064	1.6%
14	Houghton Mifflin Harcourt Publishing Company	1	36	150,050	1.5%	5,957,254	2.6%
15	Petrobras America, Inc.	1	68	144,813	1.5%	4,969,982	2.2%
16	Murphy Exploration & Production Company	1	37	144,677	1.5%	4,439,625	2.0%
17	Argo Data Resource Corporation	1	113	138,540	1.4%	3,700,702	1.6%
18	Monsanto Company	1	70	127,778	1.3%	3,282,617	1.5%
19	Federal National Mortgage Association	1	30	123,144	1.3%	2,886,188	1.3%
20	Vail Corp.	1	108	122,232	1.3%	3,369,399	1.5%

			Total	3,707,490	38.3%	$ 97,929,382	43.5%

(a) Includes 180,444 and 37,813 square feet which expire in 2018 & 2014, respectively. The remaining 11,495 square feet expire between 2015 - 2020.

(b) Includes 55,388 square feet which expires October 31, 2016.

March 31, 2014

Leasing Activity
(Owned Portfolio)

	Three
	Months	Year	Year
	Ended	Ended	Ended
Leasing Activity	31-Mar-14	31-Dec-13	31-Dec-12
(in Square Feet - SF)
New leasing	15,000	267,000	315,740
Renewals including expansions	165,000	645,000	700,838
	180,000	912,000	1,016,578

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$ 23.95	$ 23.33	$ 22.41
Weighted average lease term	6.75 Years	7.2 Years	5.1 Years

Increase over ave GAAP rents in prior year	11.9%	8.0%	1.5%

Average free rent	3 Months	3 Months	3 Months
Tenant Improvements	$ 13.61	$ 18.25	$ 12.26
Leasing Costs	$ 8.30	$ 8.48	$ 5.40

March 31, 2014

Lease Expirations by Square Feet
(Owned Portfolio)

Year	Total Square Feet	% of Square Feet Commercial

2014	463,849	4.8%
2015	918,042	9.5%
2016	944,181	9.8%
2017	1,078,987	11.1%
2018	902,727	9.3%
2019	1,620,839	16.7%
2020	645,945	6.7%
2021	882,926	9.1%
2022	870,127	9.0%
2023	350,789	3.6%
2024	256,329	2.6%
2025	135,598	1.4%
2026	86,128	0.9%
Vacant	529,588	5.5%

Total	9,686,055	100.0%

March 31, 2014

Lease Expirations
with Annualized Rent per Square Foot
(Owned Portfolio)

			Rentable			Annualized	Percentage
	Number of		Square			Rent	of Total Final
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		Leases		Leases (a)	Leases	Leases	Total
2014	78	(b)	463,849		11,469,933	24.73	5.10%	5.10%
2015	88		918,042		22,580,976	24.60	10.05%	15.15%
2016	68		944,181		19,454,342	20.60	8.66%	23.81%
2017	67		1,078,987		29,425,363	27.27	13.10%	36.91%
2018	56		902,727		25,056,595	27.76	11.15%	48.06%
2019	48		1,620,839		41,472,907	25.59	18.46%	66.52%
2020	19		645,945		18,043,628	27.93	8.03%	74.55%
2021	16		882,926		19,120,410	21.66	8.51%	83.05%
2022 and thereafter	36		1,698,971	(c)	38,076,492	22.41	16.95%	100.00%
	476		9,156,467		224,700,646	24.54	100.00%
Vacancies as of 3/31/14			529,588
Total Portfolio Square Footage			9,686,055

(a)

Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at March 31, 2014 mulitplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b) Includes 21 leases that are month-to-month.

March 31, 2014

Capital Expenditures
(in thousands)

Capital Expenditures
Owned Portfolio	Three Months
(in thousands)	Ended
	31-Mar-14

Tenant improvements	$	1,133
Deferred leasing costs		1,112
Non-investment capex		1,119
	$	3,364

	For the Three Months Ended:								Year ended
	31-Mar-13		30-Jun-13		30-Sep-13		31-Dec-13		31-Dec-13

Tenant improvements	$	1,729	$	5,754	$	4,596	$	2,992	$	15,071
Deferred leasing costs		2,813		1,087		3,821		1,536		9,257
Non-investment capex		1,118		1,622		1,552		1,479		5,771
	$	5,660	$	8,463	$	9,969	$	6,007	$	30,099

	For the Three Months Ended:								Year ended
	31-Mar-12		30-Jun-12		30-Sep-12		31-Dec-12		31-Dec-12

Tenant improvements	$	3,014	$	2,705	$	2,854	$	4,464	$	13,037
Deferred leasing costs		2,196		1,343		1,104		2,784		7,427
Non-investment capex		746		1,003		711		1,252		3,712
	$	5,956	$	5,051	$	4,669	$	8,500	$	24,176

March 31, 2014

Transaction Activity

Recent Acquisitions:					Purchase Price
	City	State	Square Feet	Date Acquired	(in thousands)
2013
1999 Broadway	Denver	CO	673,793	5/22/13	$ 183,000
999 Peachtree	Atlanta	GA	621,946	7/1/13	157,900
1001 17th Street	Denver	CO	655,420	8/28/13	217,000

2012
One Ravinia	Atlanta	GA	386,603	7/31/12	$ 52,750
Westchase	Houston	TX	629,025	11/1/12	154,750

2011
Emperor Boulevard	Durham	NC	259,531	3/4/11	$ 75,800
Legacy Tennyson Center	Plano	TX	202,600	3/10/11	37,000
One Legacy Circle	Plano	TX	214,110	3/24/11	52,983
909 Davis	Evanston	IL	195,245	9/30/11	37,062
East Renner Road	Richardson	TX	122,300	10/6/11	11,282

Recent Dispositions:
					Net Sales	Gain (Loss)
	City	State	Square Feet	Date Sold	Proceeds	on Sale
					(in thousands)
2013
East Renner Road	Richardson	TX	122,300	10/29/13	$ 12,300	$ 2,169

2012
Southfield	Southfield	MI	252,613	12/21/12	$ 293	$ (14,826)

2011
Fairview	Falls Church	VA	252,613	1/21/11	$ 89,382	$ 19,592
Bollman (a)	Savage	MD	98,745	6/24/11	7,408	2,346

(a) Industrial property. All other acquisitions and dispositions are office properties

March 31, 2014

Loan Portfolio of Secured Real Estate

(dollars in thousands)			Maximum	Amount			Interest
		Maturity	Amount	Drawn at	Interest	Draw	Rate at
Sponsored REIT	Location	Date	of Loan	31-Mar-14	Rate (1)	Fee (2)	31-Mar-14

Secured revolving lines of credit
FSP Highland Place I Corp.	Centennial, CO	31-Dec-14	$ 5,500	$ 2,995	L+4.4%	0.5%	4.56%
FSP Satellite Place Corp.	Duluth, GA	31-Mar-15	5,500	5,500	L+4.4%	0.5%	4.56%
FSP 1441 Main Street Corp.	Columbia, SC	31-Mar-15	10,800	9,000	L+4.4%	0.5%	4.56%
FSP Galleria North Corp.	Dallas, TX	30-Jan-15	15,000	13,880	L+5.0%	0.5%	5.16%

Secured construction loan
FSP 385 Interlocken
Development Corp.	Broomfield, CO	30-Apr-14	42,000	37,541	L+4.4%	n/a	4.56%

Mortgage loan secured by property
FSP Energy Tower I Corp. (3)	Houston, TX	5-Jul-14	33,000	33,000	6.41%	n/a	6.41%

			$ 111,800	$ 101,916

(1) The interest rate is 30-day LIBOR rate plus the additional rate indicated, otherwise a fixed rate.

(2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw.

(3) The loan has a secured fixed mortgage amount of $33,000,000. A loan fee of $300,630 was paid at the time of closing and funding of the loan on July 5, 2012. The borrower is required to pay the Company an exit fee in the amount of 0.982% of the principal repayment amount.

March 31, 2014

Net Asset Value Components

(in thousands except per share data)

	As of
	31-Mar-14
Total Market Capitalization Values
Shares outstanding	100,187.4
Closing price, December 31st	$ 12.60
Market capitalization	$ 1,262,361
Debt	936,500
Total Market Capitalization	$ 2,198,861


	3 Months
	Ended
NOI Components	31-Mar-14

Same Store NOI (1)	$ 26,536
Acquisitions (1) (2)	10,037
Property NOI (1)	36,573
Full quarter adjustment (3)	-
Stabilized portfolio	$ 36,573


Financial Statement Reconciliation:
Rental Revenue	$ 61,597
Rental operating expenses	(15,071)
Real estate taxes and insurance	(9,251)
Taxes (4)	(137)
Management fees & other (5)	(565)
Property NOI (1)	$ 36,573

Assets:
Loans outstanding on secured RE	$ 101,916
Investments in SARs (book basis)	79,983
Straight-line rent receivable	44,392
Asset held for sale	-
Cash and cash equivalents	20,031
Restricted cash	688
Tenant rent receivables	6,035
Prepaid expenses	1,353
Office computers and furniture	746
Other assets:
Deferred financing costs, net	6,669
Other assets: Derivative Market Value	4,801
Phoenix Tower Liquidating Trust (6)	4
Other assets	1,182
	$ 267,800
	-
Liabilities:
Debt	$ 936,500
Accounts payable & accrued expenses	35,417
Tenant security deposits	4,258
Other liabilities: derivative liability	3,825
	$ 980,000

Other information:

Leased SF to be FFO producing
During 2014	67

Straight-line rental revenue Q4	$ 1,783

Management fee income first quarter 2014	$ 234
Interest income from secured loans	1,409
Management fees and interest income from loans	$ 1,643

FFO from non-consolidated REITs - Q4 2013 (7):
East Wacker	$ 245
Grand Boulevard	101
Total	$ 346

Footnotes to the components

(1)

See pages 11 & 29 for definitions and reconciliations

(2)

Includes NOI from 3 acquisitions 2013

(3)

Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary

(4)

HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI

(5)

Management & other fees are eliminated in consolidation but included on Property NOI

(6)

Expected liquidating distribution from sale of equity interest(Collection within 2 years, subject to some expenses)

(7)

We report FFO from non-consolidated REITs for the previous quarter as their financial statements are not yet complete for the current quarter.

March 31, 2014

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 (computed in accordance with GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on 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 (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO definition in our table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do.

We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.

March 31, 2014

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 plus interest expense, income tax expense and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA excluding gains and losses on sales of properties or shares of equity investments or provisions for losses on assets held for sale. 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 is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA and Adjusted EBITDA.

Definition of Adjusted Funds From Operations (AFFO)

The Company defines AFFO as the sum of (1) FFO; (2) less the effect of straight-line rent; (3) plus deferred financing costs, (4) less recurring capital expenditures that are generally for (a) maintenance of properties or are second generation capital expenditures or what we call non-investment capex, (b) tenant improvements, (c) leasing commissions; and (4) plus non-cash compensation expenses, if any. AFFO should not be considered as an alternative to net income (determined in accordance with GAAP), 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 and cash flows from operating, investing and financing activities in the consolidated financial statements.

March 31, 2014

Appendix: Non-GAAP Financial Measure Definitions

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 (the most directly comparable GAAP financial measure) plus selling, 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, 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 both periods, which we call Same Store. The Comparative Same Store results include properties held for the periods presented and exclude significant nonrecurring income such as bankruptcy settlements and lease termination fees. 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 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, 2014

Investor Relations Contact

(877) 686-9496

InvestorRelations@franklinstreetproperties.com

Franklin Street Properties Corp. ● 401 Edgewater Place ● Wakefield, MA 01880 ● (781) 557-1300

www.franklinstreetproperties.com

Franklin Street Properties (FSP) 8-KResults of Operations and Financial Condition