Franklin Street Properties 8K Announces Fourth Quarter and Full Year 2022 Results | FSP 14 Feb 23

Exhibit 99.2

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300.~ www.fspreit.com


	Fourth Quarter 2022 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	Capital Expenditures		24
Property Net Operating Income (NOI)	8

Reconciliation		Transaction Activity		25
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate		26
Property NOI	11
		Net Asset Value Components		27
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO		28
		EBITDA and NOI		29
Owned and Managed Portfolio Overview	14-17	AFFO		30

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 geopolitical events, increasing inflation, 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.

			801 Marquette, Minneapolis, MN

December 31, 2022| Page 2


	Company Information

Overview		Snapshot (as of December 31, 2022)
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	21
				Total Square Feet	6.2 Million
				Trading Symbol	FSP
				Exchange	NYSE American
				Common Shares Outstanding	103,235,914

Our Business		Total Market Capitalization	$0.7 Billion (1)
As of December 31, 2022, the Company owned and operated a portfolio of real estate consisting of 21 operating properties and one managed Sponsored REIT. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire its Sponsored REIT. 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, for geographic, property specific reasons or for other general corporate purposes.		Insider Holdings	5.57%



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	1999 Broadway, Denver, CO

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

December 31, 2022| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	31-Dec-22		30-Sep-22		30-Jun-22		31-Mar-22		31-Dec-21
Income Items:
Rental revenue	$	40,745	$	40,366	$	40,831	$	41,797	$	42,910
Total revenue		41,211		40,836		41,304		42,264		43,372
Net income (loss)		(2,884)		17,246		(9,110)		(4,158)		78,572
Adjusted EBITDA*		16,112		15,250		15,891		16,918		17,518
FFO*		10,463		9,041		10,257		11,582		10,955
AFFO*		(8,681)		(9,735)		(4,072)		918		3,241

Per Share Data:
EPS	$	(0.03)	$	0.17	$	(0.09)	$	(0.04)	$	0.75
FFO*	$	0.10	$	0.09	$	0.10	$	0.11	$	0.10
AFFO*	$	(0.08)	$	(0.09)	$	(0.04)	$	0.01	$	0.03
Weighted Average Shares (diluted)		103,236		103,236		103,193		103,691		105,098
Closing share price	$	2.73	$	2.63	$	4.17	$	5.90	$	5.95
Dividend declared	$	0.01	$	0.01	$	0.09	$	0.09	$	0.41

Balance Sheet Items:
Real estate, net	$	1,103,248	$	1,118,983	$	1,186,157	$	1,187,348	$	1,190,970
Other assets, net		138,418		143,087		145,562		149,772		173,203
Total assets, net		1,241,666		1,262,070		1,331,719		1,337,120		1,364,173
Total liabilities, net		472,930		489,509		577,687		567,234		580,970
Shareholders' equity		768,736		772,561		754,032		769,886		783,203

Market Capitalization and Debt:
Total Market Capitalization (a)	$	694,834	$	701,510	$	960,494	$	1,123,596	$	1,093,791
Total debt outstanding (excluding unamortized financing costs)	$	413,000	$	430,000	$	530,000	$	515,000	$	475,000
Debt to Total Market Capitalization		59.4%		61.3%		55.2%		45.8%		43.4%
Net Debt to Adjusted EBITDA ratio*		6.3		6.9		8.3		7.4		6.2

Operating Properties Leasing Statistics (b):
Operating properties assets		21		22		24		24		24
Operating properties total SF		6,239,530		6,433,954		6,915,715		6,915,609		6,911,225
Operating properties % leased		75.6%		75.9%		76.3%		77.3%		78.4%

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

(b)	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 28.

December 31, 2022| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)


									For the										For the
	For the Three Months Ended								Year Ended		For the Three Months Ended								Year Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Revenue:
Rental	$	41,797	$	40,831	$	40,366	$	40,745	$	163,739	$	58,623	$	55,722	$	50,326	$	42,910	$	207,581
Related party revenue:
Management fees and interest income from loans		460		467		466		462		1,855		410		417		419		454		1,700
Other		7		6		4		4		21		6		6		57		8		77
Total revenue		42,264		41,304		40,836		41,211		165,615		59,039		56,145		50,802		43,372		209,358

Expenses:
Real estate operating expenses		12,834		12,344		13,369		14,273		52,820		15,939		15,352		14,373		15,217		60,881
Real estate taxes and insurance		8,719		9,043		8,951		7,907		34,620		12,366		11,895		10,200		6,600		41,061
Depreciation and amortization		15,670		18,186		15,148		14,804		63,808		24,381		19,136		18,862		16,165		78,544
General and administrative		3,784		3,981		3,232		2,888		13,885		4,146		3,962		3,749		4,041		15,898
Interest		5,366		5,664		6,110		5,668		22,808		8,600		10,054		7,928		5,691		32,273
Total expenses		46,373		49,218		46,810		45,540		187,941		65,432		60,399		55,112		47,714		228,657

Loss on extinguishment of debt		—		—		(78)		—		(78)		—		(167)		(236)		(498)		(901)
Impairment and loan loss reserve		—		(1,140)		(717)		(2,380)		(4,237)		—		—		—		—		—
Gain on sale of properties, net		—		—		24,077		3,862		27,939		—		20,626		8,632		83,876		113,134
Income (loss) before taxes on income and equity in income of non-consolidated REITs		(4,109)		(9,054)		17,308		(2,847)		1,298		(6,393)		16,205		4,086		79,036		92,934
Tax expense on income		49		56		62		37		204		67		56		51		464		638
Equity in income of non-consolidated REITs		—		—		—		—		—		—		—		421		—		421

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717

Weighted average number of shares outstanding, basic and diluted		103,691		103,193		103,236		103,236		103,338		107,328		107,359		106,905		105,098		106,667

Net income (loss) per share, basic and diluted	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01	$	(0.06)	$	0.15	$	0.04	$	0.75	$	0.87

December 31, 2022| Page 5

$ in thousands, except per share amounts)

Condensed Consolidated Balance Sheets

(in thousands)


	March 31,		June 30,		September 30,		December 31,		March 31,		June 30,		September 30,		December 31,
	2022		2022		2022		2022		2021		2021		2021		2021
Assets:
Real estate assets:
Land	$	146,844	$	146,844	$	131,556	$	126,645	$	189,155	$	170,377	$	161,767	$	146,844
Buildings and improvements		1,465,312		1,477,913		1,397,303		1,388,869		1,954,838		1,731,690		1,630,729		1,457,209
Fixtures and equipment		11,819		12,192		10,656		11,151		13,308		11,643		11,727		11,404
		1,623,975		1,636,949		1,539,515		1,526,665		2,157,301		1,913,710		1,804,223		1,615,457
Less accumulated depreciation		436,627		450,792		420,532		423,417		555,688		500,163		459,531		424,487
Real estate assets, net		1,187,348		1,186,157		1,118,983		1,103,248		1,601,613		1,413,547		1,344,692		1,190,970

Acquired real estate leases, net		13,453		12,373		11,177		10,186		25,836		21,932		19,864		14,934
Cash, cash equivalents and restricted cash		10,983		4,693		8,717		6,632		4,113		24,180		9,731		40,751
Tenant rent receivables, net		2,041		2,627		1,309		2,201		4,337		3,116		2,681		1,954
Straight-line rent receivable, net		51,309		54,354		50,885		52,739		69,743		61,475		58,132		49,024
Prepaid expenses and other assets		7,403		6,863		6,961		6,676		5,873		5,405		5,547		4,031
Related party mortgage loan receivable, less allowance for credit loss		24,000		22,860		22,143		19,763		21,000		21,000		21,000		24,000
Other assets: derivative asset		—		1,951		4,266		4,358		—		—		—		—
Office computers and furniture, net of accumulated depreciation		204		187		170		154		147		167		153		198
Deferred leasing commissions, net		40,379		39,654		37,459		35,709		56,771		49,793		44,729		38,311
Total assets	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666	$	1,789,433	$	1,600,615	$	1,506,529	$	1,364,173

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	40,000	$	55,000	$	65,000	$	48,000	$	27,500	$	—	$	—	$	—
Term loan payable, net of unamortized financing costs		274,402		274,518		164,692		164,750		717,668		563,151		473,648		274,286
Series A & Series B Senior Notes		199,383		199,424		199,465		199,506		199,219		199,260		199,301		199,342
Accounts payable and accrued expenses		44,700		39,315		50,371		50,366		63,456		50,799		59,309		89,493
Accrued compensation		1,206		2,252		3,159		3,644		1,390		2,309		3,482		4,704
Tenant security deposits		5,837		5,819		5,726		5,710		8,041		6,807		6,169		6,219
Lease liability		1,061		962		862		759		1,444		1,350		1,256		1,159
Other liabilities: derivative liabilities		195		—		—		—		13,698		9,425		7,583		5,239
Acquired unfavorable real estate leases, net		450		397		234		195		1,433		829		708		528
Total liabilities		567,234		577,687		489,509		472,930		1,033,849		833,930		751,456		580,970

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—		—		—		—		—		—		—		—
Common stock		10		10		10		10		11		11		11		10
Additional paid-in capital		1,334,383		1,334,776		1,334,776		1,334,776		1,357,131		1,357,469		1,349,225		1,339,226
Accumulated other comprehensive loss		(195)		1,951		4,266		4,358		(13,698)		(9,425)		(7,583)		(5,239)
Accumulated distributions in excess of accumulated earnings		(564,312)		(582,705)		(566,491)		(570,408)		(587,860)		(581,370)		(586,580)		(550,794)
Total stockholders’ equity		769,886		754,032		772,561		768,736		755,584		766,685		755,073		783,203
Total liabilities and stockholders’ equity	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666	$	1,789,433	$	1,600,615	$	1,506,529	$	1,364,173

December 31, 2022| Page 6

Condensed Consolidated Statements of Cash Flows

(in thousands)


		Year Ended December 31,
		2022		2021
Cash flows from operating activities:
Net income	$	1,094	$	92,717
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		65,697		81,041
Amortization of above and below market leases		(118)		(34)
Shares issued as compensation		394		338
Loss on extinguishment of debt		78		901
Impairment and loan loss reserve		4,237		—
Gain on sale of properties, net		(27,939)		(113,134)
Equity in income from non-consolidated REITs		—		(421)
Distributions from non-consolidated REITs		—		421
Changes in operating assets and liabilities:
Tenant rent receivables		(247)		5,702
Straight-line rents		(5,895)		(3,930)
Lease acquisition costs		(4,494)		(2,353)
Prepaid expenses and other assets		(1,805)		82
Accounts payable and accrued expenses		(5,983)		(11,096)
Accrued compensation		(1,060)		786
Tenant security deposits		(509)		(2,458)
Payment of deferred leasing commissions		(8,216)		(12,200)
Net cash provided by operating activities		15,234		36,362

Cash flows from investing activities:
Property improvements, fixtures and equipment		(54,910)		(64,833)
Investment in related party mortgage loan receivable		—		(3,000)
Proceeds received from sales of properties		128,949		573,307
Net cash provided by investing activities		74,039		505,474

Cash flows from financing activities:
Distributions to stockholders		(53,988)		(38,491)
Stock repurchases		(4,843)		(18,244)
Borrowings under bank note payable		90,000		91,500
Repayments of bank note payable		(42,000)		(95,000)
Repayment of term loan payable		(110,000)		(445,000)
Deferred Financing Costs		(2,561)		—
Net cash used in financing activities		(123,392)		(505,235)
Net increase (decrease) in cash, cash equivalents and restricted cash		(34,119)		36,601
Cash, cash equivalents and restricted cash, beginning of period		40,751		4,150
Cash, cash equivalents and restricted cash, end of period	$	6,632	$	40,751

December 31, 2022| Page 7

Property Net Operating Income (NOI)* with

Same Store Comparison (in thousands)


	Rentable
	Square Feet	Three Months Ended								Year Ended		Three Months Ended								Year Ended		Inc		%
(in thousands)	or RSF	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21		(Dec)		Change
Region
East	362	$	497	$	475	$	391	$	526	$	1,889	$	504	$	522	$	612	$	584	$	2,222	$	(333)	(15.0)	%
MidWest	935		3,106		3,679		3,131		3,099		13,015		2,433		2,447		2,428		2,960		10,268		2,747	26.8	%
South	2,797		5,817		5,611		5,902		7,896		25,226		7,095		7,070		6,162		5,900		26,227		(1,001)	(3.8)	%
West	2,146		8,070		6,609		6,401		6,028		27,108		8,721		8,392		8,643		8,585		34,341		(7,233)	(21.1)	%
Property NOI* from Operating Properties	6,240		17,490		16,374		15,825		17,549		67,238		18,753		18,431		17,845		18,029		73,058		(5,820)	(8.0)	%
Dispositions and Redevelopment Properties (a)	-		2,091		2,745		1,842		666		7,344		11,008		9,569		7,518		2,928		31,023		(23,679)	(20.3)	%
Property NOI*	6,240	$	19,581	$	19,119	$	17,667	$	18,215	$	74,582	$	29,761	$	28,000	$	25,363	$	20,957	$	104,081	$	(29,499)	(28.3)	%

Same Store		$	17,490	$	16,374	$	15,825	$	17,549	$	67,238	$	18,753	$	18,431	$	17,845	$	18,029	$	73,058	$	(5,820)	(8.0)	%

Less Nonrecurring
Items in NOI* (b)			273		1,258		494		818		2,843		32		34		281		163		510		2,333	(3.2)	%

Comparative
Same Store		$	17,217	$	15,116	$	15,331	$	16,731	$	64,395	$	18,721	$	18,397	$	17,564	$	17,866	$	72,548	$	(8,153)	(11.2)	%

(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 28.

December 31, 2022| Page 8

FFO* & AFFO* Reconciliation

(in thousands, except per share amounts)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Impairment and loan loss reserve		—		1,140		717		2,380		4,237		—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)		—		(20,626)		(8,632)		(83,876)		(113,134)
Equity in income from non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
FFO from non-consolidated REITs		—		—		—		—		—		—		—		421		—		421
Depreciation & amortization		15,661		18,141		15,114		14,773		63,689		24,349		19,130		18,861		16,169		78,509
NAREIT FFO*		11,503		10,171		9,000		10,407		41,081		17,889		14,653		14,685		10,865		58,092
Lease Acquisition costs		79		86		41		56		262		116		69		112		90		387
Funds From Operations (FFO)*	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343	$	18,005	$	14,722	$	14,797	$	10,955	$	58,479


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343	$	18,005	$	14,722	$	14,797	$	10,955	$	58,479
Loss on extinguishment of debt		—		—		78		—		78		—		167		236		498		901
Reverse FFO from non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
Distributions from non-consolidated REITs		—		—		—		—		—		—		—		421		—		421
Amortization of deferred financing costs		526		481		461		421		1,889		707		686		618		487		2,498
Shares issued as compensation		—		394		—		—		394		—		338		—		—		338
Straight-line rent		(1,216)		(1,688)		(1,160)		(1,831)		(5,895)		(1,904)		(1,041)		(245)		(827)		(4,017)
Tenant improvements		(1,877)		(5,453)		(6,813)		(7,508)		(21,651)		(4,491)		(4,277)		(3,952)		(1,881)		(14,601)
Leasing commissions		(3,032)		(1,327)		(2,053)		(1,152)		(7,564)		(2,597)		(1,922)		(2,371)		(1,319)		(8,209)
Non-investment capex		(5,065)		(6,736)		(9,289)		(9,074)		(30,164)		(5,336)		(3,793)		(4,528)		(4,672)		(18,329)
Adjusted Funds From Operations (AFFO)*	$	918	$	(4,072)	$	(9,735)	$	(8,681)	$	(21,570)	$	4,384	$	4,880	$	4,555	$	3,241	$	17,060

Per Share Data:
EPS	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01	$	(0.06)	$	0.15	$	0.04	$	0.75	$	0.87
FFO*		0.11		0.10		0.09		0.10		0.40		0.17		0.14		0.14		0.10		0.55
AFFO*		0.01		(0.04)		(0.09)		(0.08)		(0.21)		0.04		0.05		0.04		0.03		0.16

Weighted Average Shares (basic and diluted)		103,691		103,193		103,236		103,236		103,338		107,328		107,359		106,905		105,098		106,667

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

December 31, 2022| Page 9

EBITDA* & Adjusted EBITDA* Reconciliation

(in thousands, except ratio amounts)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Interest expense		5,366		5,664		6,110		5,668		22,808		8,600		10,054		7,928		5,691		32,273
Depreciation and amortization		15,661		18,141		15,114		14,773		63,689		24,349		19,130		18,861		16,169		78,509
Income taxes		49		56		62		37		204		67		56		51		464		638
EBITDA*	$	16,918	$	14,751		38,532		17,594	$	87,795	$	26,556	$	45,389	$	31,296	$	100,896	$	204,137
Loss on extinguishment of debt		—		—		78		—		78		—		167		236		498		901
Impairment and loan loss reserve		—		1,140		717		2,380		4,237		—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)		—		(20,626)		(8,632)		(83,876)		(113,134)
Adjusted EBITDA*	$	16,918	$	15,891	$	15,250	$	16,112	$	64,171	$	26,556	$	24,930	$	22,900	$	17,518	$	91,904

Interest expense	$	5,366	$	5,664	$	6,110	$	5,668	$	22,808	$	8,600	$	10,054	$	7,928	$	5,691	$	32,273
Scheduled principal payments		—		—		—		—		—		—		—		—		—		—
Interest and scheduled principal payments	$	5,366	$	5,664	$	6,110	$	5,668	$	22,808	$	8,600	$	10,054	$	7,928	$	5,691	$	32,273

Interest coverage ratio		3.15		2.81		2.50		2.84		2.81		3.09		2.48		2.89		3.08		2.85

Debt service coverage ratio		3.15		2.81		2.50		2.84		2.81		3.09		2.48		2.89		3.08		2.85

Debt excluding unamortized financing costs	$	515,000	$	530,000	$	430,000	$	413,000			$	947,500	$	765,000	$	675,000	$	475,000
Cash, cash equivalents and restricted cash		10,983		4,693		8,717		6,632				4,113		24,180		9,731		40,751
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	504,017	$	525,307	$	421,283	$	406,368			$	943,387	$	740,820	$	665,269	$	434,249

Adjusted EBITDA*	$	16,918	$	15,891	$	15,250	$	16,112			$	26,556	$	24,930	$	22,900	$	17,518
Annualized	$	67,672	$	63,564	$	61,000	$	64,448			$	106,224	$	99,720	$	91,600	$	70,072

Net Debt-to-Adjusted EBITDA ratio*		7.4		8.3		6.9		6.3				8.9		7.4		7.3		6.2

See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28. 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.

December 31, 2022| Page 10

Reconciliation of Net Income (Loss) to Property NOI*

(in thousands)


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22			31-Dec-22	31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21
Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Add (deduct):
Loss on extinguishment of debt		—		—		78		—		78		—		167		236		498		901
Impairment and loan loss reserve		—		1,140		717		2,380		4,237		—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)		—		(20,626)		(8,632)		(83,876)		(113,134)
Management fee income		(291)		(267)		(274)		(295)		(1,127)		(465)		(403)		(380)		(311)		(1,559)
Depreciation and amortization		15,670		18,185		15,148		14,805		63,808		24,381		19,136		18,862		16,165		78,544
Amortization of above/below market leases		(9)		(45)		(34)		(30)		(118)		(32)		(6)		—		4		(34)
General and administrative		3,784		3,981		3,233		2,888		13,886		4,146		3,962		3,749		4,041		15,898
Interest expense		5,366		5,664		6,110		5,668		22,808		8,600		10,054		7,928		5,691		32,273
Interest income		(451)		(455)		(461)		(461)		(1,828)		(394)		(399)		(404)		(442)		(1,639)
Equity in income of non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
Non-property specific items, net		(330)		26		(19)		6		(317)		(15)		(34)		(31)		615		535
Property NOI*	$	19,581	$	19,119	$	17,667	$	18,215	$	74,582	$	29,761	$	28,000	$	25,363	$	20,957	$	104,081

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

December 31, 2022| Page 11

Debt Summary

(in thousands)


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		31-Dec-22		Components			31-Dec-22	Fee

BofA Revolver	12-Jan-24	$	237,500	$	48,000	SOFR	+	1.75%	6.19%	0.35%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.39%	+	1.65%	4.04%
Series A Senior Notes	20-Dec-24		116,000		116,000				4.49%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.76%

		$	602,500	$	413,000				4.56%

●

The table above is a summary of our debt as of December 31, 2022. Additional information on our debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2022, or as updated in our Quarterly Reports on Form 10-Q, on file with the U.S. Securities and Exchange Commission.

●

On February 8, 2023, we terminated all remaining interest rate swaps applicable to the BMO Term Loan and, on February 10, 2023, we received an aggregate of approximately $4.3 million as a result of such terminations.

●

On February 10, 2023, we entered into an amendment to the credit agreement evidencing our $165 million BMO Term Loan. On February 10, 2023, as part of the amendment to the BMO Term Loan, we repaid a $40 million portion of the BMO Term Loan, so that $125 million remains outstanding under the BMO Term Loan. On or before April 1, 2024, we are required to repay an additional $25 million of the BMO Term Loan. The amendment, among other items, extended the maturity date from January 31, 2024 to October 1, 2024, changed the interest rate from a number of basis points over LIBOR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.

●

On February 10, 2023, we entered into an amendment to the credit agreement evidencing our BofA Revolver. The amendment, among other items, extended the maturity date from January 12, 2024 to October 1, 2024, reduced availability from $237.50 million to $150 million, with further reductions to $125 million effective October 1, 2023 and to $100 million effective April 1, 2024, changed the interest rate from a number of basis points over SOFR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.

●

As of December 31, 2022, the BofA Revolver was subject to a 35 basis point facility fee.

●

We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute.

(a)

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

December 31, 2022| Page 12

Capital Analysis

(in thousands, except per share amounts)


	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21
Market Data:
Shares Outstanding		103,152		103,236		103,236		103,236		107,328		107,395		105,633		103,999
Closing market price per share	$	5.90	$	4.17	$	2.63	$	2.73	$	5.45	$	5.26	$	4.64	$	5.95
Market capitalization	$	608,596	$	430,494	$	271,510	$	281,834	$	584,939	$	564,896	$	490,136	$	618,791
Total debt outstanding excluding unamortized financing costs		515,000		530,000		430,000		413,000		947,500		765,000		675,000		475,000
Total Market Capitalization	$	1,123,596	$	960,494	$	701,510	$	694,834	$	1,532,439	$	1,329,896	$	1,165,136	$	1,093,791

Dividend Data:
Total dividends declared for the quarter	$	9,360	$	9,284	$	1,032	$	1,032	$	9,660	$	9,659	$	9,666	$	9,506
Common dividend declared per share	$	0.09	$	0.09	$	0.01	$	0.01	$	0.09	$	0.09	$	0.09	$	0.41
Declared dividend as a % of Net income (loss) per share		(224)%		(102)%		6%		(36)%		(150)%		60%		216%		55%
Declared dividend as a % of AFFO* per share		1017%		(228)%		(11)%		(12)%		220%		198%		211%		1330%

Liquidity:
Cash, cash equivalents and restricted cash	$	10,983	$	4,693	$	8,717	$	6,632	$	4,113	$	24,180	$	9,731	$	40,751
Revolver:
Gross potential available under the BofA Revolver		237,500		237,500		237,500		237,500		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(40,000)		(55,000)		(65,000)		(48,000)		(27,500)		—		—		—
Total Liquidity	$	208,483	$	187,193	$	181,217	$	196,132	$	576,613	$	624,180	$	609,731	$	640,751

*	See page 9 for a reconciliation of Net Income (Loss) to AFFO and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

December 31, 2022| Page 13


	Owned Portfolio Overview


	As of the Quarter Ended
	31-Dec-22	30-Sep-22	30-Jun-22	31-Mar-22	31-Dec-21
Total Owned Properties:
Number of properties	21	22	24	24	24
Square feet	6,239,530	6,433,954	6,915,715	6,915,609	6,911,225
Leased percentage	75.6%	75.9%	76.3%	77.3%	78.4%

Managed Properties - Single Asset REITs (SARs):
Number of properties	1	1	1	2	2
Square feet	213,760	213,760	213,760	348,545	348,545

Total Owned and Managed Properties:
Number of properties	22	23	25	26	26
Square feet	6,453,290	6,647,714	7,129,475	7,264,154	7,259,770

December 31, 2022| 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

Richmond, VA								Chicago
Innsbrook	Glen Allen	VA	298,183	47.8%	48.5%	$	18.91	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	31.64

Charlotte, NC
Forest Park	Charlotte	NC	64,198	78.4%	78.4%	$	23.65	Minneapolis
								121 South 8th Street	Minneapolis	MN	298,121	85.2%	88.5%	$	25.10
								801 Marquette Ave	Minneapolis	MN	129,691	91.8%	84.8%	$	23.92
								Plaza Seven	Minneapolis	MN	330,096	79.3%	81.2%	$	33.28








East Region Total			362,381	53.2%	53.8%	$	20.13	Midwest Region Total			935,003	86.8%	87.6%	$	29.03

(a)	Weighted Occupied Percentage for the year ended December 31, 2022.

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

December 31, 2022| 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	209,461	49.0%	42.1%	$	30.37	1999 Broadway	Denver	CO	680,255	66.9%	66.6%	$	34.02
One Legacy Circle	Plano	TX	214,110	64.7%	59.9%	$	37.31	Greenwood Plaza	Englewood	CO	196,236	66.3%	77.5%	$	28.08
Addison Circle	Addison	TX	289,333	83.0%	71.5%	$	34.49	1001 17th Street	Denver	CO	657,816	70.2%	76.4%	$	35.48
Collins Crossing	Richardson	TX	300,887	96.1%	87.0%	$	27.06	600 17th Street	Denver	CO	611,163	78.3%	77.3%	$	34.38
Liberty Plaza	Addison	TX	217,779	72.9%	71.4%	$	24.56
								West Region Total			2,145,470	71.1%	73.7%	$	34.02
Houston
Park Ten	Houston	TX	157,609	78.1%	72.0%	$	29.09	Total Owned Properties			6,239,530	75.6%	72.3%	$	30.48
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	26.11
Park Ten Phase II	Houston	TX	156,746	95.0%	95.0%	$	28.63
Westchase I & II	Houston	TX	629,025	63.5%	56.3%	$	26.68

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive	Miami	FL	213,182	98.5%	73.6%	$	33.10

Atlanta
Pershing Plaza	Atlanta	GA	160,145	79.2%	34.3%	$	33.44

South Region Total			2,796,676	78.2%	68.6%	$	29.22

(a)	Weighted Occupied Percentage for the year ended December 31, 2022.

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

December 31, 2022| Page 16


	Managed Portfolio Overview


MSA / Property Name	City	State	Square Feet

Midwest Region

Indianapolis
Monument Circle	Indianapolis	IN	213,760

Total Managed			213,760

Total Owned & Managed			6,453,290

December 31, 2022| Page 17

Tenants by Industry

(By Square Feet)

December 31, 2022| 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	CITGO Petroleum Corporation	1	123	248,399	4.0%	$	2,849,138	2.1%
2	EOG Resources, Inc.	1	48	169,167	2.7%		6,062,945	4.4%
3	US Government (b)	2	37, 97	168,573	2.7%		6,317,703	4.6%
4	Lennar Homes, LLC	1	171	155,808	2.5%		6,247,901	4.6%
5	Citicorp Credit Services, Inc (c)	1	12	146,260	2.3%		4,947,976	3.6%
6	Kaiser Foundation Health Plan	1	17	120,979	1.9%		3,936,728	2.9%
7	Argo Data Resource Corporation (d)	1	8, 92	114,200	1.8%		3,358,622	2.5%
8	Swift, Currie, McGhee & Hiers, LLP (e)	1	129	101,296	1.6%		—	0.0%
9	Deluxe Corporation	1	175	98,922	1.6%		3,018,289	2.2%
10	Ping Identity Corp.	1	42	89,856	1.4%		3,587,950	2.6%
11	Permian Resources Operating, LLC (f)	1	106	67,856	1.1%		2,807,881	2.1%
12	Bread Financial Payments, Inc. (g)	1	42	67,274	1.1%		2,758,234	2.0%
13	PricewaterhouseCoopers LLP	1	73	66,304	1.1%		2,329,953	1.7%
14	Hall and Evans LLC	1	80	65,878	1.1%		2,455,473	1.8%
15	Cyxtera Management, Inc.	1	85	61,826	1.0%		2,191,403	1.6%
16	Precision Drilling (US) Corporation	1	65	59,569	1.0%		2,033,090	1.5%
17	Schwegman, Lundberg & Woessner, P.A. (h)	1	5, 61	58,263	0.9%		1,663,730	1.2%
18	EMC Corporation	1	21	57,100	0.9%		1,667,320	1.2%
19	ID Software, LLC	1	77	57,100	0.9%		1,609,649	1.2%
20	Olin Corporation	1	87	54,080	0.9%		1,647,277	1.2%

			Total	2,028,710	32.5%	$	61,491,262	45.0%

Footnotes on next page

December 31, 2022| 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 December 31, 2022 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b) Includes 43,573 square feet expiring in 2026. The remaining 125,000 square feet expire in 2031.

(c) Exercised early termination option on 146,260 square feet. Termination fee of approximately $4.2 million to be paid on or before termination date of December 31, 2023. This lease was assigned to Citigroup Technology, Inc. on January 1, 2023.

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

(e) Lease commenced on September 19, 2022 and rent commences on September 19, 2023.

(f) Formerly known as Centennial Resource Production, LLC.

(g) Formerly known as ADS Alliance Data Systems, Inc.

(h) Includes 11,994 square feet expiring in 2023. The remaining 46,269 square feet expire in 2028.

December 31, 2022| Page 20

Leasing Activity

(Owned Portfolio)


	Year		Year		Year
	Ended		Ended		Ended
Leasing Activity (a)		31-Dec-22		31-Dec-21		31-Dec-20
(in Square Feet - SF)
New leasing		275,000		370,000		368,000
Renewals and expansions		160,000		665,000		762,000
		435,000		1,035,000		1,130,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	33.27		30.86	$	28.47
Weighted average lease term		6.4 Years		7.7 Years		8.3 Years

Increase over average GAAP rents in prior year (b)		10.6%		2.5%		7.7%

Average free rent		6 Months		7 Months		5 Months
Tenant Improvements	$	31.86		25.89	$	34.07
Leasing Costs	$	11.80		11.45	$	11.36

(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.

December 31, 2022| Page 21

Lease Expirations by Square Feet

(Owned Portfolio)

December 31, 2022| 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

2023	47	(c)	398,204		$	12,594,621	$	31.63	9.2%	9.2%
2024	49		862,393			27,667,475		32.08	20.3%	29.5%
2025	54		429,146			14,038,512		32.71	10.3%	39.8%
2026	36		612,913			21,289,129		34.73	15.6%	55.4%
2027	20		307,689			9,694,824		31.51	7.1%	62.5%
2028	19		278,620			8,125,556		29.16	6.0%	68.5%
2029	15		344,550			10,011,705		29.06	7.3%	75.8%
2030	11		292,715			8,077,513		27.60	5.9%	81.7%
2031	8		271,904			9,952,632		36.60	7.3%	89.0%
2032	—		—			—		—	0.0%	89.0%
2033 and thereafter	44		917,408	(d)		15,053,359		16.41	11.0%	100.0%
Leased total	303		4,715,542		$	136,505,326	$	28.95	100.0%
Vacancies as of 12/31/22			1,523,988
Total Portfolio Square Footage			6,239,530

(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.

(b)	Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at December 31, 2022 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 87,695 square feet that are non-revenue producing building amenities.

December 31, 2022| Page 23


	Capital Expenditures


(in thousands)									Year
	For the Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22

Tenant improvements	$	1,877	$	5,453	$	6,813	$	7,508	$	21,651
Deferred leasing costs		3,032		1,327		2,053		1,152		7,564
Non-investment capex		5,065		6,736		9,289		9,074		30,164
Total Capital Expenditures	$	9,974	$	13,516	$	18,155	$	17,734	$	59,379


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

Tenant improvements	$	4,491	$	4,277	$	3,952	$	1,881	$	14,601
Deferred leasing costs		2,597		1,922		2,371		1,319		8,209
Non-investment capex		5,336		3,793		4,528		4,672		18,329
Total Capital Expenditures	$	12,424	$	9,992	$	10,851	$	7,872	$	41,139

First generation leasing and investment capital was $9.0 million for the year ended December 31, 2022 and $32.0 million for the year ended December 31, 2021.

December 31, 2022| Page 24

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


Recent Dispositions:					Gross Sale		Gain (loss)
	City	State	Square Feet	Date Sold	Proceeds		on Sale
2022
380 Interlocken	Broomfield	CO	240,359	8/31/22	$	42,000	$	5,665
390 Interlocken	Broomfield	CO	241,512	8/31/22		60,500		18,412
909 Davis	Evanston	IL	195,098	12/28/22		27,750		3,939

2021
One Ravinia	Atlanta	GA	386,602	5/27/21	$	74,879	$	29,075
Two Ravinia	Atlanta	GA	411,047	5/27/21		71,771		29
One Overton Park	Atlanta	GA	387,267	5/27/21		72,850		(6,336)
Loudoun Tech Center	Dulles	VA	136,658	6/29/21		17,250		(2,148)
River Crossing	Indianapolis	IN	205,729	8/31/21		35,050		(1,734)
Timberlake	Chesterfield	MO	234,496	9/23/21		44,667		6,184
Timberlake East	Chesterfield	MO	117,036	9/23/21		22,333		4,111
999 Peachtree	Atlanta	GA	621,946	10/22/21		223,900		86,766
Meadow Point	Chantilly	VA	138,537	11/16/21		25,500		1,878
Stonecroft	Chantilly	VA	111,469	11/16/21		14,500		(4,768)

2020
Emperor Boulevard	Durham	NC	259,531	12/23/20	$	89,700	$	41,928

December 31, 2022| Page 25

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-Dec-22

Mortgage loan secured by property

FSP Monument Circle LLC (1)

Indianapolis, IN

30-Jun-23

24,000

7.51%

24,000

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

December 31, 2022| Page 26


	Net Asset Value Components


(in thousands except per share data)
	As of		Assets:			Other information:
	31-Dec-22		Loans outstanding on secured RE	$	19,763	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	during 2023 (in 000's)		83
Shares outstanding		103,235.9	Straight-line rent receivable		52,739
Closing price	$	2.73	Asset held for sale		—	Straight-line rental revenue current quarter	$	1,831
Market capitalization	$	281,834	Cash, cash equivalents and restricted cash		6,632
Debt		413,000	Tenant rent receivables		2,201	Management fee income current quarter	$	1
Total Market Capitalization	$	694,834	Prepaid expenses		4,674	Interest income from secured loans		461
			Office computers and furniture		154	Management fees and interest income from loans	$	462
			Other assets:
	3 Months		Deferred financing costs, net		2,041
	Ended		Other assets: Derivative Market Value		4,358
NOI Components	31-Dec-22		Other assets - Right-to-Use Asset		705
				$	93,267
Same Store NOI (1)	$	17,549
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		17,549	Debt (excluding contra for unamortized financing costs)	$	413,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		54,010	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	17,549	Tenant security deposits		5,710
			Other liabilities: lease liability		759	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		—
Financial Statement Reconciliation:				$	473,479	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	40,745
Rental operating expenses		(14,273)				(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		(7,907)
NOI from dispositions & redevelopment properties		(666)				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(37)
Management & other fees (5)		(313)
Property NOI (1)	$	17,549

December 31, 2022| Page 27


	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. We exclude the FFO from any Sponsored REIT that is consolidated from the calculation of FFO.

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.

December 31, 2022| Page 28


	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 or losses on extinguishment of debt, gains and losses on sales of properties or shares of equity investments or provisions for losses on assets held for sale or equity investments. We exclude the Adjusted EBITDA from any Sponsored REIT that is consolidated from the calculation of Adjusted EBITDA. 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 extinguishment of debt, gains or losses on the sale of assets and excludes non-property specific income and expenses. We exclude the NOI from any Sponsored REIT that is consolidated from the calculation of NOI. 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.

December 31, 2022| Page 29


	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 loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5) plus the amortization of deferred financing costs, (6) plus the value of shares issued as compensation and (7) 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.

December 31, 2022| Page 30

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

December 31, 2022| Page 31

Franklin Street Properties (FSP) 8-KFranklin Street Properties Corp. Announces Fourth Quarter and Full Year 2022 Results