8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2019

Franklin Street Properties Corp.

(Exact name of registrant as specified in its charter)

Maryland	001-32470	04-3578653
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

401 Edgewater Place, Suite 200, Wakefield, Massachusetts	01880
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (781) 557-1300

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common Stock, $.0001 par value per share	FSP	NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02.  Results of Operations and Financial Condition.

On July 30, 2019, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three and six months ended June 30, 2019.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  The press release references certain supplemental operating and financial data that is now available on the Registrant’s website.  A copy of the supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein.  

The information in this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits

See Exhibit Index attached hereto.

2

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release issued by Franklin Street Properties Corp. on July 30, 2019.
99.2	Supplemental Operating and Financial Data for the Second Quarter of 2019.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FRANKLIN STREET PROPERTIES CORP.
Date: July 30, 2019	By:	/s/ George J. Carter
		George J. Carter
		Chief Executive Officer

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EX-99.1

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

Second Quarter 2019 Results

Wakefield, MA—July 30,  2019—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American:  FSP), a real estate investment trust (REIT), announced its results for the second quarter ended June 30, 2019.         

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

“Leasing activity within our property portfolio of 32 operating and 3 redevelopment properties continued at a strong pace during the second quarter of 2019 and,  when combined with our first quarter, set a record for the amount of square footage leased in the first half of any FSP fiscal year.   In addition, while the price of crude oil was volatile during the second quarter of 2019, we believe that a continuation at recent pricing levels could maintain support to the many businesses and their growth plans within our energy-influenced markets of Houston and Denver.   Prospective new tenant activity at our 3 redevelopment properties located in Miami, Minneapolis and Charlotte continued to be robust during the second quarter of 2019.  We expect to make meaningful progress with these assets during the remainder of 2019.  With over $600 million of available liquidity as of June 30, 2019, we are confident that we have the financial resources needed to maximize our leasing and redevelopment value-add opportunities.”    

Highlights

· Net income was $1.6 million or $0.02 per basic and diluted share for the second quarter ended June 30, 2019.  Funds From Operations (FFO)  was $23.8 million or $0.22 per basic and diluted share for the second quarter ended June 30, 2019.        

· Adjusted Funds From Operations (AFFO) was $0.03 per basic and diluted share for the second quarter ended June 30, 2019.

· We are raising our full year FFO guidance for 2019, which is now estimated to be in the range of $0.84 to $0.88 per basic and diluted share from our previously estimated range of $0.81 to $0.87 per basic and diluted share.

· On June 27, 2019, one of our single-asset REITs, FSP Energy Tower I Corp., sold the property owned by it to a third party. Following that sale, we received approximately $51 million as repayment in full of a mortgage loan.     

Leasing Update

· Our directly owned real estate portfolio of 32 operating properties (excluding 3 redevelopment properties) totaling approximately 9.5 million square feet was approximately 88.1% leased as of June 30, 2019.            

· During the quarter ended June 30, 2019, we leased approximately 375,000 square feet, of which approximately 123,000 square feet was with new tenants.  During the six months ended June 30, 2019, we leased approximately 835,000 square feet, of which approximately 218,000 square feet was with new tenants.  The leasing total represents a first half record high for FSP.  The average first half leasing total for the prior five years was approximately 563,000 square feet.    

· The weighted average GAAP base rent achieved on leasing activity during the first half of 2019 was $31.46 per square foot and the portfolio weighted average rent per occupied square foot increased from $29.01 as of December 31, 2018 to $29.68 as of June 30, 2019.   

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Dividend Update

On July 5, 2019, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended June 30, 2019 of $0.09 per share of common stock that will be paid on August 8, 2019 to stockholders of record on July 19, 2019.          

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 and managed real estate portfolio as of June 30, 2019.  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.  

FFO Guidance

We are raising our full year net income or loss guidance for 2019, which is estimated to be in the range of net income of approximately $0.00 to net income of $0.04 per basic and diluted share,  and are introducing guidance for the third quarter of 2019, which is estimated to be in the range of net income of approximately $0.00 to net income of approximately $0.02 per basic and diluted share.  We are raising our full year FFO guidance for 2019, which is estimated to be in the range of approximately $0.84 to $0.88  per basic and diluted share, and are introducing guidance for the third quarter of 2019, which is estimated to be in the range of approximately $0.21 to $0.23 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:  

		Q3 2019 Range				Full Year 2019 Range
	Low		High		Low		High
Net income (loss) per share	$	0.00	$	0.02	$	0.00	$	0.04
Depreciation & Amortization		0.21		0.21		0.84		0.84
Funds From Operations per share	$	0.21	$	0.23	$	0.84	$	0.88

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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 July 31, 2019 at 11:00 a.m. (ET) to discuss the second quarter 2019 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 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.  To learn more about FSP please visit our website at www.fspreit.com.

Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  This press release may also contain forward-looking statements, such as our ability to lease space in the future, expectations for FFO and net income (loss) in future periods, expectations for operating performance, expectations for crude oil prices and their impact on the Houston and Denver markets in future periods,  value creation/enhancement in future periods, expectations for growth and leasing activities in future periods, expectations regarding the timing, leasing and economic results of our redevelopment properties 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, including the level of 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, 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, 2018, 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. 

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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				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2019		2018		2019		2018
Revenue:
Rental	$	65,485	$	65,409	$	128,844	$	131,037
Related party revenue:
Management fees and interest income from loans		1,322		1,276		2,674		2,532
Other		6		9		11		18
Total revenue		66,813		66,694		131,529		133,587
Expenses:
Real estate operating expenses		17,116		16,954		34,842		34,105
Real estate taxes and insurance		12,801		12,292		24,903		23,469
Depreciation and amortization		22,109		23,591		45,354		47,626
General and administrative		3,702		3,082		7,211		6,514
Interest		9,371		9,753		18,739		19,239
Total expenses		65,099		65,672		131,049		130,953
Income before taxes on income and equity in loss of non-consolidated REITs		1,714		1,022		480		2,634
Tax expense on income		81		75		52		157
Equity in loss of non-consolidated REITs		—		(282)		—		(387)
Net income	$	1,633	$	665	$	428	$	2,090
Weighted average number of shares outstanding,  basic and diluted		107,231		107,231		107,231		107,231
Net income per share, basic and diluted	$	0.02	$	0.01	$	0.00	$	0.02

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30,		December 31,
(in thousands, except share and par value amounts)	2019		2018
Assets:
Real estate assets:
Land	$	191,578	$	191,578
Buildings and improvements		1,886,294		1,857,935
Fixtures and equipment		10,607		8,839
		2,088,479		2,058,352
Less accumulated depreciation		460,798		432,579
Real estate assets, net		1,627,681		1,625,773
Acquired real estate leases, less accumulated amortization of $70,108 and $101,897, respectively		49,475		59,595
Cash, cash equivalents and restricted cash		13,100		11,177
Tenant rent receivables		6,366		3,938
Straight-line rent receivable		61,438		54,006
Prepaid expenses and other assets		8,052		10,400
Related party mortgage loan receivables		21,530		70,660
Other assets: derivative asset		4,645		14,765
Office computers and furniture, net of accumulated depreciation of $1,428 and $1,512, respectively		154		197
Deferred leasing commissions, net of accumulated amortization of $26,930 and $24,318, respectively		50,901		47,591
Total assets	$	1,843,342	$	1,898,102
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	—	$	25,000
Term loans payable, less unamortized financing costs of $4,995 and $5,722, respectively		765,005		764,278
Series A & Series B Senior Notes, less unamortized financing costs of $1,067 and $1,150, respectively		198,933		198,850
Accounts payable and accrued expenses		54,282		59,183
Accrued compensation		2,191		3,043
Tenant security deposits		9,118		6,319
Lease liability		2,059		—
Other liabilities: derivative liabilities		8,132		—
Acquired unfavorable real estate leases, less accumulated amortization of $5,034 and $6,605, respectively		3,114		3,795
Total liabilities		1,042,834		1,060,468
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 income (loss)		(3,487)		14,765
Accumulated distributions in excess of accumulated earnings		(552,473)		(533,599)
Total stockholders’ equity		800,508		837,634
Total liabilities and stockholders’ equity	$	1,843,342	$	1,898,102

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the
	Six Months Ended
	June 30,
(in thousands)	2019		2018
Cash flows from operating activities:
Net income	$	428	$	2,090
Adjustments to reconcile net income or loss to net cash provided by operating activities:
Depreciation and amortization expense		46,791		49,050
Amortization of above and below market leases		(193)		(208)
Equity in loss of non-consolidated REITs		—		387
Decrease in allowance for doubtful accounts and write-off of accounts receivable		(91)		(80)
Changes in operating assets and liabilities:
Tenant rent receivables		(2,337)		(836)
Straight-line rents		(4,829)		299
Lease acquisition costs		(2,603)		(398)
Prepaid expenses and other assets		2,392		325
Accounts payable and accrued expenses		(8,741)		(8,609)
Accrued compensation		(852)		(1,863)
Tenant security deposits		2,799		193
Payment of deferred leasing commissions		(8,114)		(6,641)
Net cash provided by operating activities		24,650		33,709
Cash flows from investing activities:
Property improvements, fixtures and equipment		(28,944)		(24,281)
Distributions in excess of earnings from non-consolidated REITs		—		710
Repayment of related party mortgage loan receivable		51,530		530
Investment in related party mortgage loan receivable		(2,400)		—
Proceeds received from liquidating trust		1,470		—
Net cash provided by (used in) investing activities		21,656		(23,041)
Cash flows from financing activities:
Distributions to stockholders		(19,302)		(30,025)
Borrowings under bank note payable		45,000		30,000
Repayments of bank note payable		(70,000)		(10,000)
Deferred financing costs		(81)		(14)
Net cash used in financing activities		(44,383)		(10,039)
Net increase in cash, cash equivalents and restricted cash		1,923		629
Cash, cash equivalents and restricted cash, beginning of year		11,177		9,819
Cash, cash equivalents and restricted cash, end of period	$	13,100	$	10,448

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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
2019	335,299	3.4%
2020	801,274	8.1%
2021	685,244	6.9%
2022	1,221,950	12.3%
2023	651,756	6.6%
Thereafter (2)	6,207,987	62.7%
	9,903,510	100.0%

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

(2) Includes 1,132,755 square feet of current vacancies at our operating properties and 356,633 square feet of current vacancies at our redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where development/redevelopment is complete but that are not yet stabilized. 

(dollars & square feet in 000's)	As of June 30, 2019 (a)
	# of			% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio
Colorado	6	$	544,745	33.5%	2,620	26.5%
Texas	9		345,057	21.2%	2,415	24.4%
Georgia	5		320,753	19.7%	1,967	19.9%
Minnesota	3		119,813	7.4%	754	7.6%
Virginia	4		81,238	5.0%	685	6.9%
North Carolina	2		51,172	3.1%	322	3.2%
Missouri	2		46,323	2.8%	351	3.5%
Illinois	2		48,148	3.0%	372	3.8%
Florida	1		41,206	2.5%	213	2.1%
Indiana	1		29,226	1.8%	205	2.1%
Total	35	$	1,627,681	100.0%	9,904	100.0%

(a) Includes investment in our redevelopment properties.  We define redevelopment properties as properties being developed, redeveloped or where complete, but that are not yet stabilized. 

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures

						Six Months
(in thousands)	For the Three Months Ended				Ended
	31-Mar-19		30-Jun-19		30-Jun-19
Tenant improvements	$	8,318	$	10,169	$	18,487
Deferred leasing costs		4,239		3,666		7,905
Non-investment capex		2,413		4,049		6,462
	$	14,970	$	17,884	$	32,854

					Six Months
	For the Three Months Ended				Ended
	31-Mar-18		30-Jun-18		30-Jun-18
Tenant improvements	$	6,777	$	8,212	$	14,989
Deferred leasing costs		1,021		5,314		6,335
Non-investment capex		1,858		2,558		4,416
	$	9,656	$	16,084	$	25,740

Square foot & leased percentages	June 30,	December 31,
	2019	2018
Operating Properties (a):
Number of properties	32	32
Square feet	9,498,858	9,486,650
Leased percentage	88.1%	89.0%
Redevelopment Properties:
Number of properties	3	3
Square feet	404,652	404,652
Leased percentage	11.9%	27.2%
Managed Properties - Single Asset REITs (SARs):
Number of properties	2	3
Square feet	348,545	674,342
Total Operating, Redevelopment and Managed Properties:
Number of properties	37	38
Square feet	10,252,055	10,565,644

(a) Excludes investment in our redevelopment properties.  We define redevelopment properties as properties being developed, redeveloped or where development/redevelopment is complete but that are not yet stabilized. 

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Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)

					First		Second
				% Leased (1)	Quarter	% Leased (1)	Quarter
				as of	Average %	as of	Average %
	Property Name	Location	Square Feet	31-Mar-19	Leased (2)	30-Jun-19	Leased (2)
1	MEADOW POINT	Chantilly, VA	138,537	100.0%	100.0%	100.0%	100.0%
2	TIMBERLAKE	Chesterfield, MO	234,496	100.0%	100.0%	95.7%	97.1%
3	TIMBERLAKE EAST	Chesterfield, MO	117,036	100.0%	100.0%	100.0%	100.0%
4	NORTHWEST POINT	Elk Grove Village, IL	177,095	100.0%	100.0%	100.0%	100.0%
5	PARK TEN	Houston, TX	157,460	96.4%	95.1%	96.4%	96.4%
6	PARK TEN PHASE II	Houston, TX	156,746	65.5%	65.5%	66.9%	66.4%
7	GREENWOOD PLAZA	Englewood, CO	196,236	100.0%	100.0%	100.0%	100.0%
8	ADDISON	Addison, TX	289,302	89.3%	89.3%	82.4%	82.4%
9	COLLINS CROSSING	Richardson, TX	300,887	99.4%	99.4%	99.4%	99.4%
10	INNSBROOK	Glen Allen, VA	298,456	57.3%	57.3%	57.3%	57.3%
11	RIVER CROSSING	Indianapolis, IN	205,059	95.0%	94.5%	95.0%	95.0%
12	LIBERTY PLAZA	Addison, TX	216,834	74.5%	78.7%	71.5%	69.1%
13	380 INTERLOCKEN	Broomfield, CO	240,359	90.5%	91.5%	97.1%	97.1%
14	390 INTERLOCKEN	Broomfield, CO	241,512	98.2%	98.2%	98.2%	98.2%
15	ELDRIDGE GREEN	Houston, TX	248,399	100.0%	100.0%	100.0%	100.0%
16	ONE OVERTON PARK	Atlanta, GA	387,267	80.1%	79.8%	80.6%	80.3%
17	LOUDOUN TECH	Dulles, VA	136,658	95.7%	95.7%	98.9%	98.9%
18	4807 STONECROFT	Chantilly, VA	111,469	100.0%	100.0%	100.0%	100.0%
19	121 SOUTH EIGHTH ST	Minneapolis, MN	297,209	80.9%	80.9%	86.9%	82.9%
20	EMPEROR BOULEVARD	Durham, NC	259,531	100.0%	100.0%	100.0%	100.0%
21	LEGACY TENNYSON CTR	Plano, TX	202,049	91.6%	90.9%	91.6%	91.6%
22	ONE LEGACY	Plano, TX	214,110	100.0%	100.0%	100.0%	100.0%
23	909 DAVIS	Evanston, IL	195,098	91.2%	91.2%	93.3%	91.9%
24	ONE RAVINIA DRIVE	Atlanta, GA	386,602	89.7%	91.7%	85.7%	87.0%
25	TWO RAVINIA	Atlanta, GA	411,047	78.4%	77.4%	69.3%	72.8%
26	WESTCHASE I & II	Houston, TX	629,025	80.1%	82.2%	77.3%	79.2%
27	1999 BROADWAY	Denver, CO	677,378	77.1%	76.6%	78.7%	78.3%
28	999 PEACHTREE	Atlanta, GA	621,946	90.7%	87.0%	90.9%	90.8%
29	1001 17th STREET	Denver, CO	655,420	98.5%	98.2%	98.5%	98.5%
30	PLAZA SEVEN	Minneapolis, MN	326,757	87.4%	87.6%	88.6%	87.8%
31	PERSHING PLAZA	Atlanta, GA	160,145	97.4%	97.4%	97.4%	97.4%
32	600 17th STREET	Denver, CO	608,733	86.7%	85.9%	86.9%	86.7%
	OPERATING TOTAL		9,498,858	88.5%	88.4%	88.1%	88.1%
33	FOREST PARK	Charlotte, NC	62,212	0.0%	0.0%	0.0%	0.0%
34	BLUE LAGOON	Miami, FL	212,619	0.0%	0.0%	0.0%	0.0%
35	801 MARQUETTE AVE	Minneapolis, MN	129,821	37.0%	37.0%	37.0%	37.0%
	REDEVELOPMENT TOTAL		404,652	11.9%	11.9%	11.9%	11.9%
	OWNED PORTFOLIO TOTAL		9,903,510

(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 June 30, 2019

			% of
	Tenant	Sq Ft	Portfolio
1	IQVIA Holdings Inc.	259,531	2.6%
2	CITGO Petroleum Corporation	248,399	2.5%
3	Newfield Exploration Company	234,495	2.4%
4	US Government	223,641	2.3%
5	Centene Management Company, LLC	216,879	2.2%
6	Eversheds Sutherland (US) LLP	179,868	1.8%
7	EOG Resources, Inc.	169,167	1.7%
8	The Vail Corporation	164,636	1.7%
9	T-Mobile South, LLC dba T-Mobile	151,792	1.5%
10	Citicorp Credit Services, Inc.	146,260	1.5%
11	Petrobras America, Inc.	144,813	1.5%
12	Jones Day	140,342	1.4%
13	Argo Data Resource Corporation	140,246	1.4%
14	Worldventures Holdings, LLC	129,998	1.3%
15	Kaiser Foundation Health Plan	120,979	1.2%
16	VMWare, Inc.	119,558	1.2%
17	Giesecke & Devrient America	112,110	1.1%
18	Northrop Grumman Systems Corp.	111,469	1.1%
19	Randstad General Partner (US)	109,638	1.1%
20	ADS Alliance Data Systems, Inc.	107,698	1.1%
	Total	3,231,519	32.6%

-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 to FFO and AFFO:	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share amounts)	2019		2018		2019		2018
Net income	$	1,633	$	665	$	428	$	2,090
Equity in loss from non-consolidated REITs		—		282		—		387
FFO from non-consolidated REITs		—		978		—		1,862
Depreciation & amortization		22,028		23,468		45,161		47,418
NAREIT FFO		23,661		25,393		45,589		51,757
Lease Acquisition costs		108		—		290		—
Funds From Operations (FFO)	$	23,769	$	25,393	$	45,879	$	51,757
Funds From Operations (FFO)	$	23,769	$	25,393	$	45,879	$	51,757
Reverse FFO from non-consolidated REITs		—		(978)		—		(1,862)
Distributions from non-consolidated REITs		—		355		—		710
Amortization of deferred financing costs		720		713		1,437		1,424
Straight-line rent		(3,689)		259		(4,829)		299
Tenant improvements		(10,169)		(8,212)		(18,487)		(14,989)
Leasing commissions		(3,666)		(5,314)		(7,905)		(6,335)
Non-investment capex		(4,049)		(2,558)		(6,462)		(4,416)
Adjusted Funds From Operations (AFFO)	$	2,916	$	9,658	$	9,633	$	26,588
Per Share Data
EPS	$	0.02	$	0.01	$	0.00	$	0.02
FFO	$	0.22	$	0.24	$	0.43	$	0.48
AFFO	$	0.03	$	0.09	$	0.09	$	0.25
Weighted average shares (basic and diluted)		107,231		107,231		107,231		107,231

-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, 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 properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs. 

FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. 

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT,  may define this term in a different manner.  We have included the NAREIT FFO 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 the amortization of 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 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 redevelopment properties, which include properties being developed, redeveloped or where redevelopment is complete but are in lease-up and are not stabilized, 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-Jun-19		31-Mar-19		(Dec)		Change
Region
East	945	$	3,301	$	3,185	$	116	3.6	%
MidWest	1,553		5,174		5,163		11	0.2	%
South	4,382		15,196		14,272		924	6.5	%
West	2,619		11,240		10,559		681	6.4	%
Property NOI* from Operating Properties	9,499		34,911		33,179		1,732	5.2	%
Dispositions and Redevelopment Properties	405		(215)		(205)		(10)	0.0	%
NOI*	9,904	$	34,696	$	32,974	$	1,722	5.2	%
Sequential Same Store		$	34,911	$	33,179	$	1,732	5.2	%
Less Nonrecurring
Items in NOI* (a)			706		35		671	(2.0)	%
Comparative
Sequential Same Store		$	34,205	$	33,144	$	1,061	3.2	%

-15-

	Three Months Ended		Three Months Ended
Reconciliation to Net income (loss)	30-Jun-19		31-Mar-19
Net income (loss)	$	1,633	$	(1,205)
Add (deduct):
(Gain) loss on sale of properties		—		—
Hedge ineffectiveness		—		—
Management fee income		(645)		(677)
Depreciation and amortization		22,109		23,245
Amortization of above/below market leases		(81)		(112)
General and administrative		3,703		3,509
Interest expense		9,371		9,368
Interest income		(1,259)		(1,294)
Equity in (income) loss of non-consolidated REITs		—		—
Non-property specific items, net		(135)		140
NOI*	$	34,696	$	32,974

(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.

EX-99.2

Exhibit 99.2 

Second Quarter 2019
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
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	Redevelopment Activity	23
Property Net Operating Income (NOI)	8	Capital Expenditures	24
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: Definitions of Non-GAAP Measures
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 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, which are detailed from time to time in FSP’s reports filed with the Securities and Exchange Commission.  FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Dominion Tower, Denver, CO

June 30, 2019| Page 2

Company Information

Overview		Snapshot (as of June 30, 2019)
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	35 (1)
		Total Square Feet	9.9 Million (1)
		Trading Symbol	FSP
		Exchange	NYSE American
		Common Shares Outstanding	107,231,155
		Quarterly Dividend	$0.09
Our Business		Dividend Yield	4.9%
As of June 30, 2019, the Company owned and operated a portfolio of real estate consisting of 32 operating properties, three redevelopment properties and two managed Sponsored REITs.  From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons.		Total Market Capitalization	$1.8 Billion (2)
		Insider Holdings	4.0%
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	999 Peachtree, Atlanta, GA
Inquiries
Inquiries should be directed to:  Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com (1) Includes both operating and redevelopment properties. (2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt      outstanding.

June 30, 2019| Page 3

Summary of Financial Highlights

(in thousands except per share amounts, SF & number of properties)
	30-Jun-19		31-Mar-19		31-Dec-18		30-Sep-18		30-Jun-18
Income Items:
Rental revenue	$	65,485	$	63,359	$	65,304	$	67,436	$	65,409
Total revenue		66,813		64,716		66,578		68,705		66,694
Net income (loss)		1,633		(1,205)		1,371		9,608		665
Adjusted EBITDA*		33,113		31,267		33,875		35,636		34,270
FFO*		23,769		22,110		24,546		26,158		25,393
AFFO*		2,916		6,717		10,840		13,024		9,658
Per Share Data:
EPS	$	0.02	$	(0.01)	$	0.01	$	0.09	$	0.01
FFO*	$	0.22	$	0.21	$	0.23	$	0.24	$	0.24
AFFO*	$	0.03	$	0.06	$	0.10	$	0.12	$	0.09
Weighted Average Shares (diluted)		107,231		107,231		107,231		107,231		107,231
Closing share price	$	7.38	$	7.19	$	6.23	$	7.99	$	8.56
Dividend declared	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Balance Sheet Items:
Real estate, net	$	1,627,681	$	1,624,833	$	1,625,773	$	1,628,036	$	1,627,498
Other assets, net		215,661		266,412		272,329		280,523		352,029
Total assets, net		1,843,342		1,891,245		1,898,102		1,908,559		1,979,527
Total liabilities, net		1,042,834		1,071,258		1,060,468		1,055,146		1,127,140
Shareholders' equity		800,508		819,987		837,634		853,413		852,387
Market Capitalization and Debt:
Total Market Capitalization (a)	$	1,761,366	$	1,780,992	$	1,663,050	$	1,843,777	$	1,985,899
Total debt outstanding (excluding unamortized financing costs)	$	970,000	$	1,010,000	$	995,000	$	987,000	$	1,068,000
Debt to Total Market Capitalization		55.1%		56.7%		59.8%		53.5%		53.8%
Net Debt to Adjusted EBITDA*		7.2		8.0		7.3		6.9		7.7
Operating Properties Leasing Statistics (b):
Operating properties assets		32		32		32		34		34
Operating properties total SF		9,498,858		9,495,118		9,486,650		9,760,699		9,760,699
Operating properties % leased		88.1%		88.5%		89.0%		90.5%		89.0%

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

(b) For periods in 2019 and 2018, 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 Definitions of these Non-GAAP Measures beginning on page 28.

June 30, 2019| Page 4

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

					For the Six										For the
	For the Three Months Ended				Months Ended		For the Three Months Ended								Year Ended
	31-Mar-19		30-Jun-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Revenue:
Rental	$	63,359	$	65,485	$	128,844	$	65,628	$	65,409	$	67,436	$	65,304	$	263,777
Related party revenue:
Management fees and interest income from loans		1,352		1,322		2,674		1,256		1,276		1,261		1,268		5,061
Other		5		6		11		9		9		8		6		32
Total revenue		64,716		66,813		131,529		66,893		66,694		68,705		66,578		268,870
Expenses:
Real estate operating expenses		17,726		17,116		34,842		17,151		16,954		17,946		18,652		70,703
Real estate taxes and insurance		12,102		12,801		24,903		11,177		12,292		11,651		10,737		45,857
Depreciation and amortization		23,245		22,109		45,354		24,035		23,591		23,277		23,327		94,230
General and administrative		3,509		3,702		7,211		3,432		3,082		3,394		3,162		13,070
Interest		9,368		9,371		18,739		9,486		9,753		9,935		9,200		38,374
Total expenses		65,950		65,099		131,049		65,281		65,672		66,203		65,078		262,234
Income (loss) before taxes on income and equity in income (loss) of non-consolidated REITs		(1,234)		1,714		480		1,612		1,022		2,502		1,500		6,636
Taxes on income		(29)		81		52		82		75		74		129		360
Equity in income (loss) of non-consolidated REITs		—		—		—		(105)		(282)		7,180		—		6,793
Net income (loss)	$	(1,205)	$	1,633	$	428	$	1,425	$	665	$	9,608	$	1,371	$	13,069
Weighted average number of shares outstanding, basic and diluted		107,231		107,231		107,231		107,231		107,231		107,231		107,231		107,231
Net income (loss) per share, basic and diluted	$	(0.01)	$	0.02	$	0.00	$	0.01	$	0.01	$	0.09	$	0.01	$	0.12

June 30, 2019| Page 5

	$ in thousands, except per share amounts)
	Condensed Consolidated Balance Sheets (in thousands)

	March 31,		June 30,		March 31,		June 30,		September 30,		December 31,
	2019		2019		2018		2018		2018		2018
Assets:
Real estate assets:
Land	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578	$	191,578
Buildings and improvements		1,872,082		1,886,294		1,821,035		1,833,470		1,848,362		1,857,935
Fixtures and equipment		9,153		10,607		5,909		7,565		7,842		8,839
		2,072,813		2,088,479		2,018,522		2,032,613		2,047,782		2,058,352
Less accumulated depreciation		447,980		460,798		390,581		405,115		419,746		432,579
Real estate assets, net		1,624,833		1,627,681		1,627,941		1,627,498		1,628,036		1,625,773
Acquired real estate leases, net		53,948		49,475		78,729		71,861		65,687		59,595
Investment in non-consolidated REITs		—		—		69,703		69,067		—		—
Cash, cash equivalents and restricted cash		8,832		13,100		14,355		10,448		10,434		11,177
Tenant rent receivables, net		4,489		6,366		3,411		4,039		3,206		3,938
Straight-line rent receivable, net		55,836		61,438		53,430		53,294		53,056		54,006
Prepaid expenses and other assets		10,469		8,052		8,355		7,444		9,259		10,400
Related party mortgage loan receivable		72,795		21,530		71,455		71,190		70,925		70,660
Other assets: derivative asset		10,469		4,645		18,740		21,196		22,265		14,765
Office computers and furniture, net of accumulated depreciation		166		154		261		236		216		197
Deferred leasing commissions, net		49,408		50,901		39,815		43,254		45,475		47,591
Total assets	$	1,891,245	$	1,843,342	$	1,986,195	$	1,979,527	$	1,908,559	$	1,898,102
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	40,000	$	—	$	98,000	$	98,000	$	17,000	$	25,000
Term loan payable, net of unamortized financing costs		764,642		765,005		765,259		765,618		763,914		764,278
Series A & Series B Senior Notes		198,892		198,933		198,727		198,768		198,809		198,850
Accounts payable and accrued expenses		52,248		54,282		53,327		52,651		62,699		59,183
Accrued compensation		1,073		2,191		1,112		1,778		2,844		3,043
Tenant security deposits		6,352		9,118		5,588		5,576		5,619		6,319
Lease liability		2,141		2,059		—		—		—		—
Other liabilities: derivative liabilities		2,496		8,132		—		—		—		—
Acquired unfavorable real estate leases, net		3,414		3,114		5,264		4,749		4,261		3,795
Total liabilities		1,071,258		1,042,834		1,127,277		1,127,140		1,055,146		1,060,468
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		-		—		-		—		—		—
Common stock		11		11		11		11		11		11
Additional paid-in capital		1,356,457		1,356,457		1,356,457		1,356,457		1,356,457		1,356,457
Accumulated other comprehensive income (loss)		7,973		(3,487)		18,740		21,196		22,265		14,765
Accumulated distributions in excess of accumulated earnings		(544,454)		(552,473)		(516,290)		(525,277)		(525,320)		(533,599)
Total stockholders’ equity		819,987		800,508		858,918		852,387		853,413		837,634
Total liabilities and stockholders’ equity	$	1,891,245	$	1,843,342	$	1,986,195	$	1,979,527	$	1,908,559	$	1,898,102

June 30, 2019| Page 6

Condensed Consolidated Statements of Cash Flows (in thousands)

		Six Months ended June 30,			Twelve Months Ended December 31,
		2019		2018	2018		2017
Cash flows from operating activities:
Net income (loss)	$	428	$	2,090	$	13,069	$	(15,944)
Adjustments to reconcile net income or loss to net cash provided by operating activities:
Depreciation and amortization expense		46,791		49,050		97,171		103,743
Amortization of above and below market leases		(193)		(208)		(556)		(1,031)
Hedge ineffectiveness		—		—		—		1,878
Loss on sale of properties and properties held for sale		—		—		—		18,481
Equity in (income) loss from non-consolidated REITs		—		387		(6,793)		3,604
Distributions from non-consolidated REITs		—		—		—		—
Increase (decrease) in allowance for doubtful accounts and write-off of accounts receivable		(91)		(80)		(50)		150
Changes in operating assets and liabilities:
Tenant rent receivables		(2,337)		(836)		(765)		(160)
Straight-line rents		(4,829)		299		381		(1,767)
Lease acquisition costs		(2,603)		(398)		(1,193)		(2,052)
Prepaid expenses and other assets		2,392		325		(1,940)		(403)
Accounts payable and accrued expenses		(8,741)		(8,609)		(4,077)		3,870
Accrued compensation		(852)		(1,863)		(598)		(143)
Tenant security deposits		2,799		193		936		28
Payment of deferred leasing commissions		(8,114)		(6,641)		(15,383)		(14,309)
Net cash provided by operating activities		24,650		33,709		80,202		95,945
Cash flows from investing activities:
Property improvements, fixtures and equipment		(28,944)		(24,281)		(51,057)		(54,306)
Investments in non-consolidated REITs		—		—		74,931		—
Distributions in excess of earnings from non-consolidated REITs		—		710		710		1,396
Investment in related party mortgage loan receivable		(2,400)		—		—		—
Repayment of related party mortgage loan receivable		51,530		530		1,060		10,060
Proceeds received from liquidating trust		1,470		—		—		—
Proceeds received on sales of real estate assets		—		—		—		37,756
Net cash provided by (used in) investing activities		21,656		(23,041)		25,644		(5,094)
Cash flows from financing activities:
Distributions to stockholders		(19,302)		(30,025)		(49,326)		(81,496)
Borrowings under bank note payable		45,000		30,000		38,000		75,000
Repayments of bank note payable		(70,000)		(10,000)		(91,000)		(277,000)
Borrowing from Series A & Series B Senior Notes		—		—		—		200,000
Deferred Financing Costs		(81)		(14)		(2,162)		(6,902)
Net cash provided by (used in) financing activities		(44,383)		(10,039)		(104,488)		(90,398)
Net increase (decrease) in cash, cash equivalents and restricted cash		1,923		629		1,358		453
Cash, cash equivalents and restricted cash, beginning of period		11,177		9,819		9,819		9,366
Cash, cash equivalents and restricted cash, end of period	$	13,100	$	10,448	$	11,177	$	9,819

June 30, 2019| Page 7

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

	Rentable					Six Months						Six Months
	Square Feet	Three Months Ended				Ended		Three Months Ended				Ended		Inc		%
(in thousands)	or RSF	31-Mar-19		30-Jun-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Jun-18		(Dec)		Change
Region
East	945	$	3,185	$	3,301	$	6,486	$	3,802	$	3,990	$	7,792	$	(1,306)	(16.8)	%
MidWest	1,553		5,163		5,174		10,337		6,257		4,955		11,212		(875)	(7.8)	%
South	4,382		14,272		15,196		29,468		14,449		14,246		28,695		773	2.7	%
West	2,619		10,559		11,240		21,799		10,958		11,061		22,019		(220)	(1.0)	%
Property NOI* from Operating Properties	9,499		33,179		34,911		68,090		35,466		34,252		69,718		(1,628)	(2.3)	%
Dispositions and Redevelopment Properties	405		(205)		(215)		(420)		1,250		1,072		2,322		(2,742)	(3.8)	%
Property NOI*	9,904	$	32,974	$	34,696	$	67,670	$	36,716	$	35,324	$	72,040	$	(4,370)	(6.1)	%
Same Store		$	33,179	$	34,911	$	68,090	$	35,466	$	34,252	$	69,718	$	(1,628)	(2.3)	%
Less Nonrecurring
Items in NOI* (a)			35		706		741		761		1,141		1,902		(1,161)	1.6	%
Comparative
Same Store		$	33,144	$	34,205	$	67,349	$	34,705	$	33,111	$	67,816	$	(467)	(0.7)	%

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

*See the Appendix for Definition of Non-GAAP Measures beginning on page 28.

June 30, 2019| Page 8

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

					Six Months										Year
	Three Months Ended				Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Net income (loss)	$	(1,205)	$	1,633	$	428	$	1,425	$	665	$	9,608	$	1,371	$	13,069
GAAP (income) loss from non-consolidated REITs		—		—		—		105		282		(7,180)		—		(6,793)
FFO from non-consolidated REITs		—		—		—		884		978		649		—		2,511
Depreciation & amortization		23,133		22,028		45,161		23,950		23,468		23,081		23,175		93,674
NAREIT FFO*		21,928		23,661		45,589		26,364		25,393		26,158		24,546		102,461
Lease Acquisition costs		182		108		290		—		—		—		—		—
Funds From Operations (FFO)*	$	22,110	$	23,769	$	45,879	$	26,364	$	25,393	$	26,158	$	24,546	$	102,461
Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	22,110	$	23,769	$	45,879	$	26,364	$	25,393	$	26,158	$	24,546	$	102,461
Reverse FFO from non-consolidated REITs		—		—		—		(884)		(978)		(649)		—		(2,511)
Distributions from non-consolidated REITs		—		—		—		355		355		—		—		710
Amortization of deferred financing costs		717		720		1,437		711		713		799		717		2,940
Straight-line rent		(1,140)		(3,689)		(4,829)		40		259		522		(440)		381
Tenant improvements		(8,318)		(10,169)		(18,487)		(6,777)		(8,212)		(7,084)		(6,895)		(28,968)
Leasing commissions		(4,239)		(3,666)		(7,905)		(1,021)		(5,314)		(4,394)		(3,746)		(14,475)
Non-investment capex		(2,413)		(4,049)		(6,462)		(1,858)		(2,558)		(2,328)		(3,342)		(10,086)
Adjusted Funds From Operations (AFFO)*	$	6,717	$	2,916	$	9,633	$	16,930	$	9,658	$	13,024	$	10,840	$	50,452
Per Share Data:
EPS	$	(0.01)	$	0.02	$	0.00	$	0.01	$	0.01	$	0.09	$	0.01	$	0.12
FFO*		0.21		0.22		0.43		0.25		0.24		0.24		0.23		0.96
AFFO*		0.06		0.03		0.09		0.16		0.09		0.12		0.10		0.47
Weighted Average Shares (basic and diluted)		107,231		107,231		107,231		107,231		107,231		107,231		107,231		107,231

*See the Appendix for Definitions of these Non-GAAP Measures beginning on page 28. 

June 30, 2019| Page 9

EBITDA* & Adjusted EBITDA* Reconciliation (in thousands, except ratio amounts)

					Six Months										Year
	Three Months Ended				Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Net income (loss)	$	(1,205)	$	1,633	$	428	$	1,425	$	665	$	9,608	$	1,371	$	13,069
Interest expense		9,368		9,371		18,739		9,486		9,753		9,935		9,200		38,374
Depreciation and amortization		23,133		22,028		45,161		23,950		23,468		23,081		23,175		93,674
Income taxes		(29)		81		52		82		75		74		129		360
EBITDA*	$	31,267		33,113		64,380	$	34,943	$	33,961	$	42,698	$	33,875	$	145,477
(Gain) loss on sale of properties and provisions for loss on properties held for sale or equity investments		—		—		—		—		309		(7,062)		—		(6,753)
Adjusted EBITDA*	$	31,267	$	33,113	$	64,380	$	34,943	$	34,270	$	35,636	$	33,875	$	138,724
Interest expense	$	9,368	$	9,371	$	18,739	$	9,486	$	9,753	$	9,935	$	9,200	$	38,374
Scheduled principal payments		—		—		—		—		—		—		—		—
Interest and scheduled principal payments	$	9,368	$	9,371	$	18,739	$	9,486	$	9,753	$	9,935	$	9,200	$	38,374
Interest coverage ratio		3.34		3.53		3.44		3.68		3.51		3.59		3.68		3.62
Debt service coverage ratio		3.34		3.53		3.44		3.68		3.51		3.59		3.68		3.62
Debt excluding unamortized financing costs	$	1,010,000	$	970,000			$	1,068,000	$	1,068,000	$	987,000	$	995,000
Cash, cash equivalents and restricted cash		8,832		13,100				14,355		10,448		10,434		11,177
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	1,001,168	$	956,900			$	1,053,645	$	1,057,552	$	976,566	$	983,823
Adjusted EBITDA*	$	31,267	$	33,113			$	34,943	$	34,270	$	35,636	$	33,875
Annualized	$	125,068	$	132,452			$	139,772	$	137,080	$	142,544	$	135,500
Net Debt-to-Adjusted EBITDA*		8.0		7.2				7.5		7.7		6.9		7.3

*See the Appendix for Definitions of these Non-GAAP Measures 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.

June 30, 2019| Page 10

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

Reconciliation of Net income to Property NOI*					Six Months										Year
	Three Months Ended				Ended		Three Months Ended								Ended
	31-Mar-19		30-Jun-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Net income (loss)	$	(1,205)	$	1,633	$	428	$	1,425	$	665	$	9,608	$	1,371	$	13,069
Add (deduct):
Management fee income		(677)		(645)		(1,322)		(746)		(746)		(712)		(640)		(2,844)
Depreciation and amortization		23,245		22,109		45,354		24,035		23,591		23,277		23,327		94,230
Amortization of above/below market leases		(112)		(81)		(193)		(85)		(123)		(196)		(152)		(556)
General and administrative		3,509		3,703		7,212		3,432		3,082		3,394		3,162		13,070
Interest expense		9,368		9,371		18,739		9,486		9,753		9,935		9,200		38,374
Interest income		(1,294)		(1,259)		(2,553)		(1,120)		(1,141)		(1,157)		(1,192)		(4,610)
Equity in (income) loss of non-consolidated REITs		—		—		—		105		282		(7,180)		—		(6,793)
Non-property specific items, net		140		(135)		5		184		(39)		144		59		348
Property NOI*	$	32,974	$	34,696	$	67,670	$	36,716	$	35,324	$	37,113	$	35,135	$	144,288

*See the Appendix for Definition of Non-GAAP Measures beginning on page 28.

June 30, 2019| Page 11

Debt Summary (in thousands)

		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		30-Jun-19		Components			30-Jun-19	Fee
BAML Revolver	12-Jan-22	$	600,000	$	—	L	+	1.20%	3.60%	0.25%
JPM Term Loan (b)	30-Nov-21		150,000		150,000	L	+	1.25%	3.69%
BAML Term Loan	12-Jan-23		400,000		400,000	1.12%	+	1.35%	2.47%
BMO Term Loan Tranche A	30-Nov-21		55,000		55,000	2.32%	+	1.25%	3.57%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.32%	+	1.25%	3.57%
Series A Senior Notes	20-Dec-24		116,000		116,000				3.99%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.26%
		$	1,570,000	$	970,000				3.24%

· On August 2, 2018, we entered into an Amended and Restated Credit Agreement with respect to the JPM Term Loan, which extended the maturity of the JPM Term Loan to November 30, 2021 and reduced the number of basis points over the LIBOR-based rate used to determine the interest rate.  On March 7, 2019, we entered into interest rate swap transactions for a  $100 million portion of the $150 million JPM Term Loan that fixed the LIBOR-based rate at 2.44% from March 29, 2019 and until the loan matures on November 30, 2021.  Accordingly, the interest rate on the $100 million portion was 3.69% and the interest rate on the remaining $50 million portion was 3.69% at quarter end.  The weighted average rate at June 30, 2019 was 3.69% on the JPM Term Loan. 

· On September 27, 2018, we entered into a Second Amended and Restated Credit Agreement with respect to the BMO Term Loan, which consists of a $55 million tranche A term loan and a $165 million tranche B term loan.  The tranche A term loan matures on November 30, 2021 and the tranche B term loan matures on January 31, 2024.  The number of basis points over LIBOR used to determine the interest rate was reduced.     

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

· On October 24, 2017, we entered into a note purchase agreement relating to a private placement of $200 million in 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.  On December 20, 2017, we drew the proceeds from the private placement and reduced the outstanding balance on our revolving line of credit. 

· We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute.  We estimate the annualized rate for this amortization to interest expense will be approximately $2.9 million.

· Additional information on these transactions can be found in Current Reports on Form 8-K that the Company filed with the U.S. Securities and Exchange Commission on October 24, 2017, August 2, 2018 and September 27, 2018.        

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

(b) The interest rate is calculated as $100 million at the fixed rate of 3.69% and the remaining $50 million at the floating rate plus 1.25%, or 3.69%.

June 30, 2019| Page 12

Capital Analysis (in thousands, except per share amounts)

	31-Mar-19		30-Jun-19		31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18
Market Data:
Shares Outstanding		107,231		107,231		107,231		107,231		107,231		107,231
Closing market price per share	$	7.19	$	7.38	$	8.41	$	8.56	$	7.99	$	6.23
Market capitalization	$	770,992	$	791,366	$	901,814	$	917,899	$	856,777	$	668,050
Total debt outstanding excluding unamortized financing costs		1,010,000		970,000		1,068,000		1,068,000		987,000		995,000
Total Market Capitalization	$	1,780,992	$	1,761,366	$	1,969,814	$	1,985,899	$	1,843,777	$	1,663,050
Dividend Data:
Total dividends declared for the quarter	$	9,651	$	9,651	$	9,651	$	9,651	$	9,651	$	9,650
Common dividend declared per share	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Declared dividend as a % of Net income (loss) per share		-801%		591%		677%		1449%		100%		704%
Declared dividend as a % of AFFO* per share		144%		331%		57%		100%		74%		89%
Liquidity:
Cash, cash equivalents and restricted cash	$	8,832	$	13,100	$	14,355	$	10,448	$	10,434	$	11,177
Revolver:
Gross potential available under the BAML Revolver		600,000		600,000		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(40,000)		—		(98,000)		(98,000)		(17,000)		(25,000)
Total Liquidity	$	568,832	$	613,100	$	516,355	$	512,448	$	593,434	$	586,177

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

June 30, 2019| Page 13

Owned Portfolio Overview

	As of the Quarter Ended
	30-Jun-19	31-Mar-19	31-Dec-18	30-Sep-18	30-Jun-18
Operating Properties:
Number of properties	32	32	32	34	34
Square feet	9,498,858	9,495,118	9,486,650	9,760,699	9,760,699
Leased percentage	88.1%	88.5%	89.0%	90.5%	89.0%
Redevelopment Properties (a):
Number of properties	3	3	3	1	1
Square feet	404,652	404,652	404,652	129,821	129,821
Leased percentage	11.9%	11.9%	27.2%	15.8%	15.8%
Managed Properties - Single Asset REITs (SARs):
Number of properties	2	3	3	3	3
Square feet	348,545	674,342	674,342	674,342	674,342
Total Operating, Redevelopment and Managed Properties:
Number of properties	37	38	38	38	38
Square feet	10,252,055	10,574,112	10,565,644	10,564,862	10,564,862

(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.

June 30, 2019| 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)
Operating Properties:
East Region								Midwest Region
Washington, D.C.								Chicago
Meadow Point	Chantilly	VA	138,537	100.0%	100.0%	$	25.67	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	32.16
Stonecroft	Chantilly	VA	111,469	100.0%	100.0%	$	30.55	909 Davis Street	Evanston	IL	195,098	93.3%	89.7%	$	35.98
Loudoun Tech Center	Dulles	VA	136,658	98.9%	96.8%	$	18.69
								Indianapolis
Richmond								River Crossing	Indianapolis	IN	205,059	95.0%	94.2%	$	23.60
Innsbrook	Glen Allen	VA	298,456	57.3%	57.3%	$	18.97
								St. Louis
Raleigh-Durham								Timberlake	Chesterfield	MO	234,496	95.7%	98.6%	$	27.22
Emperor Boulevard	Durham	NC	259,531	100.0%	100.0%	$	34.15	Timberlake East	Chesterfield	MO	117,036	100.0%	100.0%	$	26.36
								Minneapolis
								121 South 8th Street	Minneapolis	MN	297,209	86.9%	80.5%	$	23.38
								Plaza Seven	Minneapolis	MN	326,757	88.6%	87.5%	$	35.26
East Region Total			944,651	86.4%	86.0%	$	26.50	Midwest Region Total			1,552,750	93.0%	91.4%	$	29.33

(a) Weighted Occupied Percentage for the six months ended June 30, 2019.

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

June 30, 2019| 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	202,049	91.6%	89.1%	$	23.12	380 Interlocken	Broomfield	CO	240,359	97.1%	91.0%	$	30.34
One Legacy Circle	Plano	TX	214,110	100.0%	100.0%	$	38.34	1999 Broadway	Denver	CO	677,378	78.7%	73.9%	$	32.73
Addison Circle	Addison	TX	289,302	82.4%	73.4%	$	31.06	Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$	26.14
Collins Crossing	Richardson	TX	300,887	99.4%	99.4%	$	25.77	390 Interlocken	Broomfield	CO	241,512	98.2%	98.2%	$	32.42
Liberty Plaza	Addison	TX	216,834	71.5%	73.3%	$	22.76	1001 17th Street	Denver	CO	655,420	98.5%	96.8%	$	36.21
								600 17th Street	Denver	CO	608,733	86.9%	85.5%	$	33.19
Houston								West Region Total			2,619,638	90.6%	88.1%	$	32.97
Park Ten	Houston	TX	157,460	96.4%	90.7%	$	28.95
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	30.60	Total Operating Properties			9,498,858	88.1%	86.3%	$	29.72
Park Ten Phase II	Houston	TX	156,746	66.9%	45.9%	$	26.63
Westchase I & II	Houston	TX	629,025	77.3%	80.0%	$	30.49
								Redevelopment Properties (c)
Atlanta								Forest Park	Charlotte	NC	62,212	0.0%	0.0%	$	—
One Overton Park	Atlanta	GA	387,267	80.6%	78.4%	$	22.34	Blue Lagoon Drive	Miami	FL	212,619	0.0%	0.0%	$	—
One Ravinia	Atlanta	GA	386,602	85.7%	88.3%	$	23.87	801 Marquette Ave	Minneapolis	MN	129,821	37.0%	19.3%	$	17.03
Two Ravinia	Atlanta	GA	411,047	69.3%	73.4%	$	26.94	Total Redevelopment Properties			404,652	11.9%	6.2%	$	17.03
Pershing Plaza	Atlanta	GA	160,145	97.4%	97.4%	$	36.49
999 Peachtree	Atlanta	GA	621,946	90.9%	84.7%	$	31.18	Total Owned Portfolio			9,903,510	85.0%	83.0%	$	29.68
South Region Total			4,381,819	85.2%	83.5%	$	28.54

(a) Weighted Occupied Percentage for the six months ended June 30, 2019.

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

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

June 30, 2019| Page 16

Managed Portfolio Overview

MSA / Property Name	City	State	Square Feet	MSA / Property Name	City	State	Square Feet
Southeast Region				Midwest Region
Atlanta				Indianapolis
Satellite Place	Duluth	GA	134,785	Monument Circle	Indianapolis	IN	213,760
Southeast Region Total			134,785	Midwest Region Total			213,760
				Total Managed			348,545
				Total Operating & Managed			10,252,055

June 30, 2019| Page 17

Tenants by Industry (By Square Feet)  

June 30, 2019| 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		Annualized Rent
1	IQVIA Holdings Inc.	1	83	259,531	2.6%	$	8,728,422	3.7%
2	CITGO Petroleum Corporation	1	32	248,399	2.5%		8,219,523	3.5%
3	Newfield Exploration Company	1	32	234,495	2.4%		9,512,642	4.0%
4	US Government (a)	4	10, 15, 19, 131	223,641	2.3%		7,277,597	3.1%
5	Centene Management Company, LLC	3	48, 48, 48	216,879	2.2%		5,820,347	2.5%
6	Eversheds Sutherland (US) LLP	1	82	179,868	1.8%		5,517,035	2.3%
7	EOG Resources, Inc.	1	90	169,167	1.7%		5,824,420	2.5%
8	The Vail Corporation	1	129	164,636	1.7%		3,831,630	1.6%
9	T-Mobile South, LLC dba T-Mobile (b)	1	74	151,792	1.5%		—	0.0%
10	Citicorp Credit Services, Inc.	1	98	146,260	1.5%		4,839,743	2.1%
11	Petrobras America, Inc.	1	5	144,813	1.5%		5,460,898	2.3%
12	Jones Day	1	17	140,342	1.4%		4,952,119	2.1%
13	Argo Data Resource Corporation (c)	1	134	140,246	1.4%		4,026,463	1.7%
14	Worldventures Holdings, LLC (d)	2	127, 133	129,998	1.3%		2,988,088	1.3%
15	Kaiser Foundation Health Plan	1	59	120,979	1.2%		3,694,191	1.6%
16	VMWare, Inc. (e)	1	83	119,558	1.2%		4,120,169	1.8%
17	Giesecke & Devrient America	1	66	112,110	1.1%		2,097,578	0.9%
18	Northrop Grumman Systems Corp.	1	6	111,469	1.1%		3,404,263	1.4%
19	Randstad General Partner (US) (f)	1	59	109,638	1.1%		2,725,981	1.2%
20	ADS Alliance Data Systems, Inc.	1	84	107,698	1.1%		4,054,664	1.7%
			Total	3,231,519	32.6%	$	97,095,773	41.3%

(a)Includes 61,728 square feet, which expire in 2020,  and 36,913 square feet, which expire in 2021.  The remaining 125,000 square feet expire in 2030.

(b)Rent commencing on renewal of 151,792 square feet in September 2019.

(c)Includes 26,046 square feet, which expire in 2020, and 28,550 square feet, which expire in 2023.  The remaining 85,650 square feet expire in 2030. 

(d)Includes 100,000 square feet leased by Denbury Onshore LLC expiring in July 2019, which is 100% leased by WorldVentures Holdings LLC commencing in August 2019 and expiring in 2030, and 24,998 square feet that commenced in August 2018 and expire in 2030.

(e)Includes 23,804 square feet, which expire in 2019,  and 95,754 square feet, which expire in 2026.  

(f)Includes 98,695 square feet, which expire in 2021, and 10,943 square feet, which expire in 2024.   

June 30, 2019| Page 19

Leasing Activity (Owned Portfolio)

					Year		Year		Year
	Six Months Ended				Ended		Ended		Ended
Leasing Activity (a)		30-Jun-19		30-Jun-18		31-Dec-18		31-Dec-17		31-Dec-16
(in Square Feet - SF)
New leasing		218,000		166,000		397,000		460,000		299,000
Renewals and expansions		617,000		602,000		1,284,000		1,011,000		895,000
		835,000		768,000		1,681,000		1,471,000		1,194,000
Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	31.46	$	31.96	$	31.02	$	30.43	$	29.64
Weighted average lease term		7.6 Years		7.3 Years		7.2 Years		6.8 Years		6.6 Years
Increase or decrease over average GAAP rents in prior year (b)		13.6%		6.2%		7.3%		12.3%		10.4%
Average free rent		3 Months		4 Months		4 Months		4 Months		3 Months
Tenant Improvements	$	26.69	$	27.28	$	29.13	$	22.22	$	18.71
Leasing Costs	$	11.18	$	8.35	$	8.99	$	9.92	$	10.05

(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. 

June 30, 2019| Page 20

Lease Expirations by Square Feet (a) (Owned Portfolio)

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

June 30, 2019| Page 21

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
2019	18	(c)	335,299		$	11,470,119	$	34.21	4.9%	4.9%
2020	63		801,274			25,855,758		32.27	11.0%	15.9%
2021	67		685,244			19,715,018		28.77	8.4%	24.3%
2022	78		1,221,950			38,416,621		31.44	16.3%	40.6%
2023	59		651,756			19,226,060		29.50	8.2%	48.8%
2024	66		960,282			24,119,152		25.12	10.3%	59.1%
2025	33		688,789			13,978,376		20.29	5.9%	65.0%
2026	20		887,218			28,498,665		32.12	12.1%	77.1%
2027	13		576,210			17,570,413		30.49	7.6%	84.7%
2028	10		321,218			7,278,372		22.66	3.1%	87.8%
2029 and thereafter	75		1,284,882	(d)		28,772,688		22.39	12.2%	100.0%
	502		8,414,122		$	234,901,243	$	27.92	100.0%
Vacancies as of 6/30/19			1,132,755
Redevelopment properties (e)			356,633
Total Portfolio Square Footage			9,903,510

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

(b) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at June 30, 2019 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(c) Includes 6 leases that are month-to-month.   

(d) Includes 112,914 square feet that are non-revenue producing building amenities.

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

June 30, 2019| Page 22

Redevelopment Activity

(in 000's except square feet)										Estimated	Estimated
						Incurred		Percent	Estimated	Leased	Occupied
			Rentable	Anticipated		Through		Leased	Completion	Stabilization	Stabilization
Property Name	City	State	Square Feet	Investment (1)		30-Jun-19		30-Jun-19	Date	Date	Date
Redevelopment Activity
Redevelopment in Process
Forest Park	Charlotte	NC	62,212	$	3,768	$	508	0.0%	31-Dec-19	31-Dec-19	30-Jun-20
Blue Lagoon Drive	Miami	FL	212,619		28,072		3,696	0.0%	30-Sep-20	30-Sep-20	31-Mar-21
Total Office in Process			274,831		31,840		4,204
Redevelopment Complete But Not Stabilized
801 Marquette Ave (2)	Minneapolis	MN	129,821	$	27,703	$	21,961	37.0%	30-Jun-17	31-Dec-19	31-Dec-20
Total			404,652	$	59,543	$	26,165

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

(2) As of June 30, 2019, 48,019 square feet was leased.

June 30, 2019| Page 23

Capital Expenditures

(in thousands)					Six Months
	For the Three Months Ended				Ended
	31-Mar-19		30-Jun-19		30-Jun-19
Tenant improvements	$	8,318	$	10,169	$	18,487
Deferred leasing costs		4,239		3,666		7,905
Non-investment capex		2,413		4,049		6,462
Total Capital Expenditures	$	14,970	$	17,884	$	32,854

	For the Three Months Ended								Year Ended
	31-Mar-18		30-Jun-18		30-Sep-18		31-Dec-18		31-Dec-18
Tenant improvements	$	6,777	$	8,212	$	7,084	$	6,895	$	28,968
Deferred leasing costs		1,021		5,314		4,394		3,746		14,475
Non-investment capex		1,858		2,558		2,328		3,342		10,086
Total Capital Expenditures	$	9,656	$	16,084	$	13,806	$	13,983	$	53,529

First generation leasing and investment capital was  $8.0 million for the six months ended June 30, 2019 and $15.1 million for the year ended December 31, 2018.

June 30, 2019| Page 24

Transaction Activity (in thousands except for Square Feet)

Recent Acquisitions:	City	State	Square Feet	Date Acquired	Purchase Price
2016
Plaza Seven	Minneapolis	MN	325,796	6/6/16	$	82,000
Pershing Plaza	Atlanta	GA	160,145	8/10/16		45,450
600 17th Street	Denver	CO	613,527	12/1/16		154,260
2015
Two Ravinia	Atlanta	GA	442,130	4/8/15	$	78,000

Recent Dispositions:					Gross Sale		Gain (loss)
	City	State	Square Feet	Date Sold	Proceeds		on Sale
2017
Hillview	Milpitas	CA	36,288	1/6/17	$	6,342	$	2,289
East Baltimore	Baltimore	MD	325,445	10/20/17		32,547		(20,770)
2016
Lakeside I	Maryland Heights	MO	127,778	4/5/16	$	20,189	$	4,154
Federal Way	Federal Way	WA	117,010	12/16/16		7,500		(7,092)
2015
Willow Bend	Plano	TX	117,050	2/23/15	$	20,750	$	1,462
Eden Bluff	Eden Prairie	MN	153,028	3/31/15		28,000		9,000
Park Seneca	Charlotte	NC	109,699	5/13/15		8,150		949
Montague	San Jose	CA	145,561	12/9/15		30,250		12,251

June 30, 2019| Page 25

Loan Portfolio of Secured Real Estate (in thousands)

(dollars in thousands, except footnotes)			Maximum		Amount						Interest
		Maturity	Amount		Drawn at		Interest			Draw	Rate at
Sponsored REIT	Location	Date	of Loan		30-Jun-19		Rate (1)			Fee (2)	30-Jun-19
Secured revolving line of credit
FSP Satellite Place Corp.	Duluth, GA	31-Dec-19	$	5,500	$	530	L	+	4.40%	0.5%	6.83%
Mortgage loan secured by property
FSP Monument Circle LLC (3)	Indianapolis, IN	6-Dec-20		21,000		21,000			7.19%	n/a	7.19%
			$	26,500	$	21,530

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

June 30, 2019| Page 26

Net Asset Value Components

(in thousands except per share data)
	Asof		Assets:			Other information:
	30-Jun-19		Loans outstanding on secured RE	$	21,530	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	Over the next twelve months (in 000's)		195
Shares outstanding		107,231.2	Straight-line rent receivable		61,438
Closing price	$	7.38	Asset held for sale		—	Straight-line rental revenue current quarter	$	3,689
Market capitalization	$	791,366	Cash, cash equivalents and restricted cash		13,100
Debt		970,000	Tenant rent receivables		6,366	Management fee income current quarter	$	63
Total Market Capitalization	$	1,761,366	Prepaid expenses		2,826	Interest income from secured loans		1,259
			Office computers and furniture		154	Management fees and interest income from loans	$	1,322
			Other assets:
	3 Months		Deferred financing costs, net		9,313
	Ended		Other assets: Derivative Market Value		4,645
NOI Components	30-Jun-19		Other assets - Right-to-Use Asset		1,975
				$	121,347
Same Store NOI (1)	$	34,911
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		34,911	Debt (excluding contra for unamortized financing costs)	$	970,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		56,473	(1) See pages 11 & 28 for definitions and reconciliations.
Stabilized portfolio	$	34,911	Tenant security deposits		9,118
			Other liabilities: lease liability		2,059	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		8,132
Financial Statement Reconciliation:				$	1,045,782	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	65,485
Rental operating expenses		(17,116)				(4) HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI.
Real estate taxes and insurance		(12,801)
NOI on assets sold		215				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(81)
Management fees & other (5)		(791)
Property NOI (1)	$	34,911

June 30, 2019| 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 properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO definition as of May 17, 2016 in the table on page 9 and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do.

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

June 30, 2019| 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 and losses on sales of properties or shares of equity investments or provisions for losses on assets held for sale or equity investments. EBITDA and Adjusted EBITDA are not intended to represent cash flow for the period, are not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and are not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA and Adjusted EBITDA are presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA or Adjusted EBITDA the same way, this presentation may not be comparable to similarly titled measures of other companies. The Company believes that net income or loss is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA and Adjusted EBITDA.

Definition of Property Net Operating Income (Property NOI)

The Company provides property performance based on Net Operating Income, which we refer to as NOI. Management believes that investors are interested in this information. NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus general and administrative expenses, depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REITs, interest income, management fee income, hedge ineffectiveness, gains or losses on the sale of assets and excludes non-property specific income and expenses. The information presented includes footnotes and the data is shown by region with properties owned in the periods presented, which we call Same Store. The comparative Same Store results include properties held for the periods presented and exclude properties that are redevelopment properties, 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.

June 30, 2019| 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 our proportionate share of FFO and including distributions received, from non-consolidated REITs, (3) excluding the effect of straight-line rent, (4) plus the amortization of deferred financing costs 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. 

June 30, 2019| Page 30

June 30, 2019| Page 31

XML

Document and Entity Information	Jul. 30, 2019
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jul. 30, 2019
Entity File Number	001-32470
Entity Registrant Name	FRANKLIN STREET PROPERTIES CORP /MA/
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	04-3578653
Entity Address, Address Line One	401 Edgewater Place
Entity Address, Adress Line Two	Suite 200
Entity Address, State or Province	MA
Entity Address, City or Town	Wakefield
Entity Address, Postal Zip Code	01880
City Area Code	781
Local Phone Number	557-1300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.0001 par value per share
Trading Symbol	FSP
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Central Index Key	0001031316
Amendment Flag	false