Exhibit 99.1

PRESS RELEASE Franklin Street Properties Corp.

401 Edgewater Place  Suite 200  Wakefield, Massachusetts  01880  (781) 557-1300     www.fspreit.com

Contact: Georgia Touma   (877) 686-9496 For Immediate Release

Franklin Street Properties Corp. Announces

Third Quarter 2017 Results

Wakefield, MA—October 31, 2017—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American:  FSP), a real estate investment trust (REIT), announced its results for the third quarter ended September 30, 2017.

George J. Carter, Chairman and Chief Executive Officer, commented as follows:

“With the fourth quarter of 2017 underway, we continue to expect growth to be led by contributions from increased leasing activity at our properties, full year contribution from our 2016 acquisitions and anticipated successful results from our redevelopment of 801 Marquette in downtown Minneapolis.  Over the past several years, the portfolio transition efforts at FSP have resulted in positioning a significant portion of our office assets into urban and infill locations.  Over 78% of our portfolio is now located within our five core markets of Atlanta, Dallas, Denver, Houston, and Minneapolis.  We are optimistic about our prospects for long-term sustainable growth and look forward with anticipation to the remainder of 2017 and beyond.”

Highlights

· FFO was $28.0 million or $0.26 per basic and diluted share for the third quarter ended September 30, 2017.  We had Net Income of $1.9 million or $0.02 per basic and diluted share for the third quarter ended September 30, 2017. 

· Adjusted Funds From Operations (AFFO) was $0.16 per basic and diluted share for the third quarter ended September 30, 2017. 

· On October 18, 2017, we recast our credit facility with Bank of America, N.A., as administrative agent, to, among other things, (i) increase the borrowing capacity of the revolving line of credit from $500 million to $600 million, (ii) extend the maturity date applicable to the revolving line of credit from October 29, 2018 to January 12, 2022 (with two optional six month extensions), (iii) extend the maturity date applicable to the term loan from September 27, 2021 to January 12, 2023, (iv) modify certain financial covenants, including a reset of minimum tangible net worth, and (v) increase the accordion feature from $350 million to $500 million.  Pricing on the borrowing spread decreased by five basis points for the revolving line of credit and by ten basis points for the term loan.  We also simultaneously amended our term loan with Bank of Montreal, as administrative agent, and our term loan with JPMorgan Chase Bank, N.A., as administrative agent, to conform the financial covenants and certain other provisions.  Additional information on these transactions can be found in a Current Report on Form 8-K that the Company filed with the U.S. Securities and Exchange Commission (“SEC”) on October 24, 2017.

· On October 24, 2017, we entered into a note purchase agreement relating to a private placement of $200 million in an aggregate principal amount of unsecured senior notes, consisting of $116 million in aggregate principal amount of 3.99% Series A Senior Notes with a 7-year maturity and $84 million in aggregate principal amount of 4.26% Series B Senior Notes with a 10-year maturity.    We intend to use the proceeds from the private placement to reduce the outstanding balance on our revolving line of credit.  Additional information on this transaction can be found in a Current Report on Form 8-K that the Company filed with the SEC on October 24, 2017.

· On October 25, 2017, Moody’s Investors Service assigned a Baa3 rating to our above-described $200 million unsecured senior notes and affirmed our issuer rating at Baa3 with a stable outlook. 

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Leasing and Development Update

· Our directly owned real estate portfolio of 35 properties totaling approximately 10.1 million square feet was approximately 88.7% leased as of September 30, 2017, which was a 0.6% increase compared to June 30, 2017.    The increase was primarily attributable to leasing achieved during the quarter.     

· During the nine months ended September 30, 2017, we leased approximately 936,000 square feet, of which approximately 207,000 square feet was with new tenants.     

· Third quarter 2017 leasing activity was the strongest of the year to date.  We leased approximately 460,000 square feet, of which approximately 124,000 square feet was with new tenants and expansions of existing tenants.

· Weighted average annualized GAAP rent per square foot was approximately $28.69 as of September 30, 2017, compared to $27.92 as of December 31, 2016, $26.93 as of December 31, 2015, and $26.04 as of December 31, 2014.  The average annual increase since 2014 has been approximately 3.6%.  We believe that the increase is attributable to the enhanced quality of our real estate portfolio and value creation derived from our recent acquisitions, dispositions and leasing.

· Our project at 801 Marquette Avenue in Minneapolis was substantially complete at the end of the second quarter.  As of September 30, 2017, we had incurred approximately $15.6 million in total redevelopment costs.  The project has been well received by the market and interest in the building from prospective tenants has been strong.  801 Marquette Avenue provides a contemporary, forward-looking office experience in a vintage warehouse style office with modern systems and market leading amenities in the heart of the Minneapolis CBD.

Acquisition and Disposition Update

· On October 20, 2017, we sold a property located in Baltimore, Maryland that had been previously classified as an asset held for sale, and received approximately $31.6 million in net proceeds, which were used to reduce the outstanding balance on our revolving line of credit.        

· We continue to selectively evaluate potential non-core property dispositions when appropriate values/pricing are achieved.

· We continue to evaluate new potential acquisition opportunities within our five core markets.    

Dividend Update

On October 6, 2017, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended September 30, 2017 of $0.19 per share of common stock that will be paid on November 9, 2017 to stockholders of record on October 20, 2017.      

Non-GAAP Financial Information

A reconciliation of Net income (loss) to FFO, AFFO and Sequential Same Store NOI and our definitions of FFO, AFFO and Sequential Same Store NOI can be found on Supplementary Schedules H and I.    

Real Estate Update

Supplementary schedules provide property information for the Company’s owned real estate portfolio and for two non-consolidated REITs in which the Company holds preferred stock interests as of September 30, 2017.  The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data.  The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com.  

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FFO Guidance

We are updating our full year FFO guidance for 2017, which is estimated to be approximately $1.04 per basic and diluted share, and for the fourth quarter of 2017, which is estimated to be approximately $0.25 per basic and diluted share.  We estimate full year 2017 net income (loss) guidance to be ($0.10)  per basic and diluted share, and for the fourth quarter of 2017, we estimate net income to be $0.02 per basic and diluted share.  This guidance (a) excludes the impact of future acquisitions, developments, dispositions, debt financings or repayments or other capital market transactions; (b) reflects estimates from our ongoing portfolio of properties, other real estate investments and general and administrative expenses; and (c) reflects our current expectations of economic conditions.  We will update guidance quarterly in our earnings releases.  There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above. 

A reconciliation of the guidance for net income (loss) per share to the guidance for FFO per share is provided as follows:  

		Q4 2017		Full Year 2017
	Guidance		Guidance
Net income (loss) per share	$	0.02	$	(0.10)
(Gain) loss or provision for loss on sale of properties and property held for sale, less applicable income tax		0.00		0.17
GAAP loss from non-consolidated REITs		0.00		0.01
FFO from non-consolidated REITs		0.01		0.03
Depreciation & Amortization		0.22		0.93
Funds From Operations per share	$	0.25	$	1.04

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

Earnings Call

A conference call is scheduled for November 1, 2017 at 10:00 a.m. (ET) to discuss the third quarter 2017 results. To access the call, please dial 1-800-464-8240. Internationally, the call may be accessed by dialing 1-412-902-6521. To access the call from Canada, please dial 1-866-605-3852. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.fspreit.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.     

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on 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 five core 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.  To learn more about FSP please visit our website at www.fspreit.com.

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Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  This press release may also contain forward-looking statements, such as our ability to lease space in the future,  expectations for FFO and net income (loss) in future periods, expectations for growth and leasing activities in future periods, prospects for long-term sustainable growth and the timing and impact of the substantially competed 801 Marquette Avenue property, that are based on current judgments and current knowledge of management and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements.  Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.  Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, 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 repairs, additional staffing, insurance increases and real estate tax valuation reassessments.  See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission.  Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements.  We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law. 

Franklin Street Properties Corp.

Earnings Release

Supplementary Information

Table of Contents

Franklin Street Properties Corp. Financial Results	A-C
Real Estate Portfolio Summary Information	D
Portfolio and Other Supplementary Information	E
Percentage of Leased Space	F
Largest 20 Tenants – FSP Owned Portfolio	G
Reconciliation and Definitions of Funds From Operations (FFO) and Adjusted
Funds From Operations (AFFO)	H
Reconciliation and Definition of Sequential Same Store results to Property Net
Operating Income (NOI) and Net Income (Loss)	I

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Income (Loss) Statements

(Unaudited)

	For the				For the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Revenue:
Rental	$	67,339	$	61,925	$	201,710	$	179,738
Related party revenue:
Management fees and interest income from loans		1,278		1,338		4,014		4,108
Other		9		17		29		54
Total revenue		68,626		63,280		205,753		183,900
Expenses:
Real estate operating expenses		17,898		16,905		52,492		47,126
Real estate taxes and insurance		11,882		10,218		35,880		29,522
Depreciation and amortization		24,988		23,298		75,599		68,095
Selling, general and administrative		3,286		3,419		9,806		10,443
Interest		8,258		6,767		23,730		19,617
Total expenses		66,312		60,607		197,507		174,803
Income before equity in losses of non-consolidated REITs, other, gain (loss) on sale of properties and properties held for sale, less applicable income tax and taxes		2,314		2,673		8,246		9,097
Equity in losses of non-consolidated REITs		(121)		(196)		(719)		(568)
Other		67		621		218		(388)
Gain (loss) on sale of properties and properties held for sale, less applicable income tax		(257)		(523)		(18,460)		(1,166)
Income (loss) before taxes on income		2,003		2,575		(10,715)		6,975
Taxes on income		100		117		297		326
Net income (loss)	$	1,903	$	2,458	$	(11,012)	$	6,649
Weighted average number of shares outstanding,  basic and diluted		107,231		103,709		107,231		101,370
Net income (loss) per share, basic and diluted	$	0.02	$	0.02	$	(0.10)	$	0.07

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30,		December 31,
(in thousands, except share and par value amounts)	2017		2016
Assets:
Real estate assets:
Land	$	191,578	$	196,178
Buildings and improvements		1,800,831		1,822,183
Fixtures and equipment		5,017		4,136
		1,997,426		2,022,497
Less accumulated depreciation		361,720		337,228
Real estate assets, net		1,635,706		1,685,269
Acquired real estate leases, less accumulated amortization of $105,997 and $112,441, respectively		96,282		125,491
Investment in non-consolidated REITs		73,405		75,165
Asset held for sale		31,615		3,871
Cash and cash equivalents		12,647		9,335
Restricted cash		63		31
Tenant rent receivables, less allowance for doubtful accounts of $125 and $100, respectively		3,990		3,113
Straight-line rent receivable, less allowance for doubtful accounts of $50 and $50, respectively		52,272		50,930
Prepaid expenses and other assets		6,282		5,231
Related party mortgage loan receivables		71,985		81,780
Other assets: derivative asset		10,771		12,907
Office computers and furniture, net of accumulated depreciation of $1,390 and $1,277, respectively		319		313
Deferred leasing commissions, net of accumulated amortization of $20,842 and $18,301, respectively		36,348		34,697
Total assets	$	2,031,685	$	2,088,133
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	300,000	$	280,000
Term loans payable, less unamortized financing costs of $3,817 and $4,783, respectively		766,183		765,217
Accounts payable and accrued expenses		57,593		57,259
Accrued compensation		3,000		3,784
Tenant security deposits		5,431		5,355
Other liabilities: derivative liabilities		3,721		5,551
Acquired unfavorable real estate leases, less accumulated amortization of $7,397 and $8,422, respectively		6,371		8,923
Total liabilities		1,142,299		1,126,089
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding		-		-
Common stock, $.0001 par value, 180,000,000 shares authorized, 107,231,155 and 107,231,155 shares issued and outstanding, respectively		11		11
Additional paid-in capital		1,356,457		1,356,457
Accumulated other comprehensive loss		4,954		5,478
Accumulated distributions in excess of accumulated earnings		(472,036)		(399,902)
Total stockholders’ equity		889,386		962,044
Total liabilities and stockholders’ equity	$	2,031,685	$	2,088,133

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the
	Nine Months Ended
	September 30,
(in thousands)	2017		2016
Cash flows from operating activities:
Net income (loss)	$	(11,012)	$	6,649
Adjustments to reconcile net income or loss to net cash provided by operating activities:
Depreciation and amortization expense		77,418		69,750
Amortization of above and below market leases		(941)		(104)
Equity in losses of non-consolidated REITs		719		568
Hedge ineffectiveness		(218)		388
(Gain) loss on sale of properties and properties held for sale, less applicable income tax		18,460		1,166
Increase in allowance for doubtful accounts		25		70
Changes in operating assets and liabilities:
Restricted cash		(32)		(25)
Tenant rent receivables		(902)		(503)
Straight-line rents		(2,021)		(2,094)
Lease acquisition costs		(876)		(679)
Prepaid expenses and other assets		(1,945)		(1,667)
Accounts payable, accrued expenses and other items		(489)		1,478
Accrued compensation		(784)		(488)
Tenant security deposits		76		(110)
Payment of deferred leasing commissions		(8,178)		(9,147)
Net cash provided by operating activities		69,300		65,252
Cash flows from investing activities:
Property acquisitions		—		(100,302)
Acquired real estate leases		—		(18,873)
Property improvements, fixtures and equipment		(41,743)		(22,020)
Office computers and furniture		(119)		(77)
Distributions in excess of earnings from non-consolidated REITs		1,041		691
Repayment of related party mortgage loan receivable		9,795		39,596
Proceeds received on sales of real estate assets		6,160		20,058
Net cash used in investing activities		(24,866)		(80,927)
Cash flows from financing activities:
Distributions to stockholders		(61,122)		(57,108)
Proceeds from equity offering		—		83,511
Offering costs		—		(544)
Borrowings under bank note payable		60,000		155,000
Repayments of bank note payable		(40,000)		(167,000)
Deferred financing costs		—		(2,975)
Net cash provided by (used in) financing activities		(41,122)		10,884
Net increase (decrease) in cash and cash equivalents		3,312		(4,791)
Cash and cash equivalents, beginning of year		9,335		18,163
Cash and cash equivalents, end of period	$	12,647	$	13,372

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)

Commercial portfolio lease expirations (1)
	Total	% of
Year	Square Feet	Portfolio
2017	136,685	1.4%
2018	1,281,523	12.7%
2019	1,328,528	13.2%
2020	788,278	7.8%
2021	809,404	8.0%
Thereafter (2)	5,741,471	56.9%
	10,085,889	100.0%

(1) Percentages are determined based upon total square footage.   

(2) Includes 1,141,360 square feet of current vacancies.

(dollars & square feet in 000's)	As of September 30, 2017
	# of			% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio
Colorado	6	$	540,665	33.5%	2,607	25.8%
Texas	9		351,310	21.7%	2,417	24.0%
Georgia	5		324,414	20.1%	1,967	19.5%
Minnesota (a)	2		94,562	5.9%	620	6.2%
Virginia	4		87,708	5.4%	685	6.8%
North Carolina	2		52,507	3.2%	322	3.2%
Missouri	2		49,389	3.1%	352	3.5%
Maryland (b)	1		—	0.0%	325	3.2%
Illinois	2		45,254	2.8%	373	3.7%
Florida	1		39,349	2.4%	213	2.1%
Indiana	1		30,731	1.9%	205	2.0%
Total	35	$	1,615,889	100.0%	10,086	100.0%

(a) Excludes approximately $19,817, which is our investment in a property that was redeveloped and is classified as non-operating.    

(b) Excludes the asset held for sale of $31,615, which sold on October 20, 2017.   

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures

Owned Portfolio

	For the							For the Nine
(in thousands)	Three Months Ended							Months Ended
	31-Mar-17		30-Jun-17		30-Sep-17		30-Sep-17
Tenant improvements	$	6,474	$	5,363	$	4,474	$	16,311
Deferred leasing costs		1,579		1,963		4,482		8,024
Non-investment capex		1,670		1,685		1,860		5,215
	$	9,723	$	9,011	$	10,816	$	29,550

	For the							For the Nine
	Three Months Ended							Months Ended
	31-Mar-16		30-Jun-16		30-Sep-16		30-Sep-16
Tenant improvements	$	1,929	$	1,329	$	3,325	$	6,583
Deferred leasing costs		1,613		4,966		2,247		8,826
Non-investment capex		438		1,052		2,211		3,701
	$	3,980	$	7,347	$	7,783	$	19,110

Square foot & leased percentages	September 30,	December 31,
	2017	2016
Owned portfolio of commercial real estate
Number of properties (a)	35	36
Square feet	10,085,889	10,163,615
Leased percentage	88.7%	89.3%
Investments in non-consolidated REITs
Number of properties	2	2
Square feet	1,396,071	1,396,071
Leased percentage	79.2%	78.1%
Single Asset REITs (SARs) managed
Number of properties	4	5
Square feet	810,278	1,075,135
Leased percentage	89.9%	89.6%
Total owned, investments & managed properties
Number of properties	41	43
Square feet	12,292,238	12,634,821
Leased percentage	87.7%	88.1%

(a) Excludes one property that was redeveloped and is classified as non-operating. 

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

			Square	% Leased	% Interest
Single Asset REIT name	City	State	Feet	30-Sep-17	Held
FSP 303 East Wacker Drive Corp.	Chicago	IL	861,000	77.7%	43.7%
FSP Grand Boulevard Corp.	Kansas City	MO	535,071	81.6%	27.0%
			1,396,071	79.2%

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)

					Second		Third
				% Leased (1)	Quarter	% Leased (1)	Quarter
				as of	Average %	as of	Average %
	Property Name	Location	Square Feet	30-Jun-17	Leased (2)	30-Sep-17	Leased (2)
1	FOREST PARK	Charlotte, NC	62,212	100.0%	100.0%	100.0%	100.0%
2	MEADOW POINT	Chantilly, VA	138,537	100.0%	100.0%	100.0%	100.0%
3	TIMBERLAKE	Chesterfield, MO	234,496	100.0%	100.0%	100.0%	100.0%
4	TIMBERLAKE EAST	Chesterfield, MO	117,036	100.0%	100.0%	100.0%	100.0%
5	NORTHWEST POINT	Elk Grove Village, IL	177,095	100.0%	100.0%	100.0%	100.0%
6	PARK TEN	Houston, TX	157,460	70.5%	67.1%	70.5%	70.5%
7	PARK TEN PHASE II	Houston, TX	156,746	1.4%	32.1%	1.4%	1.4%
8	GREENWOOD PLAZA	Englewood, CO	196,236	100.0%	100.0%	100.0%	100.0%
9	ADDISON	Addison, TX	288,794	86.6%	86.6%	97.3%	90.2%
10	COLLINS CROSSING	Richardson, TX	300,887	100.0%	100.0%	100.0%	100.0%
11	INNSBROOK	Glen Allen, VA	298,456	100.0%	100.0%	100.0%	100.0%
12	RIVER CROSSING	Indianapolis, IN	205,059	98.6%	98.6%	98.6%	98.6%
13	LIBERTY PLAZA	Addison, TX	218,934	91.2%	88.2%	91.2%	91.2%
14	380 INTERLOCKEN	Broomfield, CO	240,358	86.2%	86.2%	85.9%	86.1%
15	390 INTERLOCKEN	Broomfield, CO	241,751	98.9%	98.9%	98.9%	98.9%
16	BLUE LAGOON	Miami, FL	212,619	100.0%	100.0%	100.0%	100.0%
17	ELDRIDGE GREEN	Houston, TX	248,399	100.0%	100.0%	100.0%	100.0%
18	ONE OVERTON PARK	Atlanta, GA	387,267	63.7%	73.7%	63.4%	63.1%
19	EAST BALTIMORE	Baltimore, MD	325,445	75.9%	75.9%	75.5%	75.5%
20	LOUDOUN TECH	Dulles, VA	136,658	95.7%	94.5%	95.7%	95.7%
21	4807 STONECROFT	Chantilly, VA	111,469	100.0%	100.0%	100.0%	100.0%
22	121 SOUTH EIGHTH ST	Minneapolis, MN	293,422	77.3%	78.4%	81.7%	78.9%
23	EMPEROR BOULEVARD	Durham, NC	259,531	100.0%	100.0%	100.0%	100.0%
24	LEGACY TENNYSON CTR	Plano, TX	202,600	65.6%	65.6%	65.6%	65.6%
25	ONE LEGACY	Plano, TX	214,110	100.0%	100.0%	100.0%	100.0%
26	909 DAVIS	Evanston, IL	196,581	78.5%	78.2%	78.2%	78.4%
27	ONE RAVINIA DRIVE	Atlanta, GA	386,603	90.0%	89.3%	90.0%	90.0%
28	TWO RAVINIA	Atlanta, GA	411,047	84.0%	79.3%	77.3%	76.9%
29	WESTCHASE I & II	Houston, TX	629,025	82.5%	83.8%	87.3%	86.6%
30	1999 BROADWAY	Denver, CO	676,379	76.7%	76.4%	80.4%	78.0%
31	999 PEACHTREE	Atlanta, GA	621,946	99.5%	98.9%	99.1%	99.4%
32	1001 17th STREET	Denver, CO	655,413	91.3%	90.9%	91.3%	91.3%
33	PLAZA SEVEN	Minneapolis, MN	326,445	96.5%	96.4%	96.8%	96.3%
34	PERSHING PLAZA	Atlanta, GA	160,145	97.4%	97.4%	97.4%	97.4%
35	600 17th STREET	Denver, CO	596,728	91.2%	90.4%	90.1%	89.4%
	TOTAL WEIGHTED AVERAGE		10,085,889	88.1%	88.5%	88.7%	88.1%

(1) % Leased as of month's end includes all leases that expire on the last day of the quarter.

(2) Average quarterly percentage is the average of the end of the month leased percentage for each of the 3 months during the quarter.   

-11-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Largest 20 Tenants – FSP Owned Portfolio

(Unaudited & Estimated)

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

As of September 30, 2017

			% of
	Tenant	Sq Ft	Portfolio
1	Quintiles IMS Healthcare Incorporated	259,531	2.6%
2	US Government	255,610	2.5%
3	CITGO Petroleum Corporation	248,399	2.5%
4	Newfield Exploration Company	234,495	2.3%
5	Eversheds Sutherland (US) LLP	222,422	2.2%
6	Centene Management Company, LLC	216,879	2.2%
7	Burger King Corporation	212,619	2.1%
8	EOG Resources, Inc.	174,215	1.7%
9	SunTrust Bank	159,671	1.6%
10	T-Mobile South, LLC dba T-Mobile	151,792	1.5%
11	Citicorp Credit Services, Inc.	146,260	1.5%
12	Petrobras America, Inc.	144,813	1.4%
13	Jones Day	140,342	1.4%
14	Argo Data Resource Corporation	140,246	1.4%
15	Vail Corp d/b/a Vail Resorts	132,229	1.3%
16	Federal National Mortgage Association	123,144	1.2%
17	Kaiser Foundation Health Plan	120,979	1.2%
18	Randstad US	114,235	1.1%
19	Giesecke & Devrient America	112,110	1.1%
20	Northrup Grumman Systems Corp.	111,469	1.1%
	Total	3,421,460	33.9%

-12-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Reconciliation and Definitions of Funds From Operations (“FFO”) and

Adjusted Funds From Operations (“AFFO”)

A reconciliation of Net income (loss) to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I.  Management believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurements of performance.   The Company has included the National Association of Real Estate Investment Trusts (NAREIT) FFO definition as of May 17, 2016 in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently.  The Company’s computation of FFO and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently. 

Reconciliation of Net Income (Loss) to FFO and AFFO:	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands, except per share amounts)	2017		2016		2017		2016
Net income (loss)	$	1,903	$	2,458	$	(11,012)	$	6,649
(Gain) loss on sale of properties and properties held for sale, less applicable income tax		257		523		18,460		1,166
GAAP loss from non-consolidated REITs		121		196		719		568
FFO from non-consolidated REITs		874		787		2,465		2,327
Depreciation & amortization		24,903		23,112		74,658		67,991
NAREIT FFO		28,058		27,076		85,290		78,701
Hedge ineffectiveness		(67)		(621)		(218)		388
Acquisition costs of new properties		—		215		18		349
Funds From Operations (FFO)	$	27,991	$	26,670	$	85,090	$	79,438
Funds From Operations (FFO)	$	27,991	$	26,670	$	85,090	$	79,438
Reverse FFO from non-consolidated REITs		(874)		(787)		(2,465)		(2,327)
Distributions from non-consolidated REITs		350		332		1,041		691
Amortization of deferred financing costs		606		622		1,818		1,656
Straight-line rent		(147)		(119)		(2,021)		(2,094)
Tenant improvements		(4,474)		(3,325)		(16,311)		(6,583)
Leasing commissions		(4,482)		(2,247)		(8,024)		(8,826)
Non-investment capex		(1,860)		(2,211)		(5,215)		(3,701)
Adjusted Funds From Operations (AFFO)	$	17,110	$	18,935	$	53,913	$	58,254
Per Share Data
EPS	$	0.02	$	0.02	$	(0.10)	$	0.07
FFO	$	0.26	$	0.26	$	0.79	$	0.78
AFFO	$	0.16	$	0.18	$	0.50	$	0.57
Weighted average shares (basic and diluted)		107,231		103,709		107,231		101,370

-13-

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 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 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 NAREIT may define this term in a different manner.  We have included the NAREIT FFO as of May 17, 2016 in the 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 or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.

Adjusted Funds From Operations (“AFFO”)

The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO.  The Company defines AFFO as (1) FFO, (2) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (3) excluding the effect of straight-line rent, (4) plus deferred financing costs and (5) 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. 

-14-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

Reconciliation and Definition of Sequential Same Store results to property Net Operating Income (NOI) and Net Income (Loss) 

Net Operating Income (“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 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, hedge ineffectiveness, gains or losses on the sale of assets and excludes non-property specific income and expenses. The information presented includes footnotes and the data is shown by region with properties owned in the periods presented, which we call Sequential Same Store.  The comparative Sequential Same Store results include properties held for the periods presented and exclude properties that are non-operating, being developed or redeveloped, dispositions and 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 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.  The calculations of NOI and Sequential Same Store are shown in the following table:

	Rentable
	Square Feet	Three Months Ended		Three Months Ended		Inc		%
(in thousands)	or RSF	30-Sep-17		30-Jun-17		(Dec)		Change
Region
East	1,007	$	3,926	$	3,941	$	(15)	(0.4)	%
MidWest	1,550		4,476		3,908		568	14.5	%
South	4,597		16,531		16,463		68	0.4	%
West	2,607		11,337		12,045		(708)	(5.9)	%
Same Store	9,761		36,270		36,357		(87)	(0.2)	%
Acquisitions	—		—		—		—	—	%
NOI* from the continuing portfolio	9,761		36,270		36,357		(87)	(0.2)	%
Dispositions, Non-Operating, Development or Redevelopment	325		568		467		101	0.3	%
NOI*	10,086	$	36,838	$	36,824	$	14	0.0	%
Sequential Same Store		$	36,270	$	36,357	$	(87)	(0.2)	%
Less Nonrecurring
Items in NOI* (a)			1,103		1,178		(75)	0.2	%
Comparative
Sequential Same Store		$	35,167	$	35,179	$	(12)	(0.0)	%

-15-

	Three Months Ended		Three Months Ended
Reconciliation to Net income	30-Sep-17		30-Jun-17
Net income (loss)	$	1,903	$	(17,395)
Add (deduct):
(Gain) loss on sale of properties and property held for sale, less applicable income taxes		257		20,492
Hedge ineffectiveness		(67)		(129)
Management fee income		(791)		(768)
Depreciation and amortization		24,988		25,279
Amortization of above/below market leases		(86)		(687)
Selling, general and administrative		3,286		3,077
Interest expense		8,258		7,893
Interest income		(1,134)		(1,206)
Equity in losses of non-consolidated REITs		121		201
Non-property specific items, net		103		67
NOI*	$	36,838	$	36,824

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

*Excludes NOI from investments in and interest income from secured loans to non-consolidated REITs.