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): May 4, 2021

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol (s)	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. ☐

1

Item 2.02.  Results of Operations and Financial Condition.

On May 4, 2021, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three months ended March 31, 2021.  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

2

Exhibit No.	Description
99.1	Press Release issued by Franklin Street Properties Corp. on May 4, 2021.
99.2	Supplemental Operating and Financial Data for the First Quarter of 2021.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

3

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: May 4, 2021	By:	/s/ George J. Carter
		George J. Carter
		Chief Executive Officer

4

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

First Quarter 2021 Results

_______________________________________

Maintains 2021 Disposition Guidance

Anticipates Aggregate Gross Proceeds of Approximately $350 Million to $450 Million

Sale Proceeds to be Primarily Used for Repayment of Debt

FSP Remains Committed to its Sunbelt and Mountain West Market Focus

_______________________________________

Wakefield, MA—May 4, 2021—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American:  FSP), a real estate investment trust (REIT), announced its results for the first quarter ended March 31, 2021.    

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

“As the second quarter of 2021 begins, FSP remains focused on two primary objectives for full year 2021: leasing progress and debt reduction.  From a leasing perspective, we are beginning to see increasing exploratory activity by prospective tenants at our properties.  We believe that this increasing exploratory activity is due, at least in part, to increased access to COVID-19 therapeutics and vaccines. From a debt reduction perspective, we are actively working on the potential sale of select properties that we believe have met their near-term value objectives and where such value may not be accurately reflected in our share price.  We are reaffirming our previously announced 2021 disposition guidance to be in the range of $350 million to $450 million in aggregate gross proceeds.  Disposition proceeds are intended to be used primarily for debt reduction.  We believe that leasing progress along with significant debt reduction will provide greater financial flexibility and position the Company for stronger shareholder returns.  

At this time, due primarily to uncertainty surrounding the timing and amount of proceeds from property dispositions, we are continuing suspension of Net Income and FFO guidance.

FSP remains committed to its sunbelt and mountain-west office focus that emphasizes markets/properties with compelling long-term population and employment growth potential. We continue to look forward to 2021 with anticipation and optimism.”  

Financial Highlights

● GAAP Net loss was $6.5 million, or $0.06 for the first quarter ended March 31, 2021.  

● Funds From Operations (FFO) was $18.0 million, or $0.17 per basic and diluted share, for the first quarter ended March 31, 2021.    

● Adjusted Funds From Operations (AFFO) was $0.04 per basic and diluted share for the first quarter ended March 31, 2021.      

● We have $576.6 million of liquidity as of March 31, 2021, consisting of $4.1 million of cash and $572.5 million available on our revolving line of credit.    

● Our debt is entirely unsecured and we have no scheduled debt maturities until November 30, 2021.      

Investment Update

● Actively working on the potential sale of select properties that we believe have met their near-term value objectives and where such value may not be accurately reflected in our share price.

-2-

● Reaffirming 2021 disposition guidance to be in the range of $350 to $450 million in aggregate gross proceeds.  Disposition proceeds intended to be used primarily for debt reduction.

● Potential disposition properties include: One and Two River Crossing in Indianapolis, Indiana; Timberlake Corporate Center in Chesterfield, Missouri; Meadow Point in Chantilly, Virginia; Innsbrook Corporate Center in Glen Allen, Virginia; Loudoun Technology Center in Dulles, Virginia; One and Two Ravinia Drive in Atlanta, Georgia; and One Overton Park in Atlanta, Georgia.    

COVID-19 Pandemic Update

FSP remains committed to the health and safety of its employees, tenants, vendors and visitors and will continue to implement recommended guidelines for social distancing and other safety protocols at our properties and corporate headquarters.  

● We collected in excess of 99% of rental receipts due for the first quarter of 2021 and approximately 99% of rental receipts due for the year ended December 31, 2020.  Due to the high level of uncertainty related to the COVID-19 pandemic, we are unable to predict the level of rental receipts in future months.

● During the COVID-19 pandemic, we have received rent relief requests from some of our tenants.  The majority of these requests for relief have been in the form of potential rent deferrals for varying lengths of time.  For the first quarter of 2021, the impact of rent deferrals and write-offs was not material.  We will continue to review each request for rent relief on a case by case basis.  Where prudent, we may grant deferrals and, in some instances, seek extended lease terms.  We are unable to predict the outcomes of these ongoing negotiations, the amount of the rent relief packages, if any, and ultimate recovery of any deferred amounts.  

Leasing Update

● As the delays caused by the pandemic during the past twelve months have begun to reverse course, we are encouraged by a more robust pipeline of potential new tenants.  We are currently tracking over 800,000 square feet of new prospective tenants, of which approximately 600,000 square feet represents potential net absorption over the next six to twelve months.

● During the quarter ended March 31, 2021, we leased approximately 377,000 square feet, of which approximately 370,000 square feet was with existing tenants.   During the year ended December 31, 2020, we leased approximately 1,130,000 square feet, of which approximately 762,000 square feet was with existing tenants.  

● Our directly owned real estate portfolio of 34 owned properties (including one redevelopment property) totaling approximately 9.7 million square feet, was approximately 81.0% leased as of March 31, 2021, compared to approximately 83.8% leased as of December 31, 2020.          

● During the quarter ended March 31, 2021, we entered into a lease amendment with existing tenant CITGO Petroleum Corporation at our Eldridge Green property in Houston, Texas. The amendment extends the primary term of CITGO’s approximately 250,000 square foot headquarters lease by approximately 11 years, from February 28, 2022 to March 31, 2033.

● Lease expirations for the remainder of 2021 are approximately 477,000 square feet, representing approximately 4.9% of our owned portfolio.    

● The weighted average GAAP base rent per square foot achieved on leasing activity during the three months ended March 31, 2021 was $28.46, or 1.7% lower than average rents in the respective properties as applicable compared to the year ended December 31, 2020.  The average lease term on leases in the three months ended March 31, 2021, was 9.3 years compared to 8.3 years for the full year of 2020.  Overall the portfolio weighted average rent per occupied square foot was $29.89 as of March 31, 2021 compared to $29.60 as of December 31, 2020.

-3-

Dividend Update

On April 2, 2021, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended March 31, 2021 of $0.09 per share of common stock that will be paid on May 7, 2021 to stockholders of record on April 16, 2021.          

Non-GAAP Financial Information

A reconciliation of Net income 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.    

2021 Net Income, FFO and Disposition Guidance

At this time, due primarily to uncertainty surrounding the timing and amount of proceeds received from property dispositions, we are continuing suspension of Net Income and FFO guidance.  However, we are maintaining our previously announced disposition guidance for full-year 2021, as we execute on our strategy to dispose of certain properties that we believe have met their near-term value objectives and where such value may not be accurately reflected in our share price. Anticipated dispositions in 2021 are estimated to result in aggregate gross proceeds in the range of approximately $350 million to $450 million.  We intend to use the proceeds of any such dispositions primarily for the repayment of debt under our revolving line of credit and term loan facilities, any special distributions required to meet REIT requirements, and general corporate purposes.  This guidance reflects our current expectations of economic and market conditions and is subject to change.  We will update our disposition 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.  

Real Estate Update

Supplementary schedules provide property information for the Company’s owned and managed real estate portfolio as of March 31, 2021.  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.

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 May 5, 2021 at 11:00 a.m. (ET) to discuss the first quarter 2021 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

-4-

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 dispositions and the repayment of debt in future periods, value creation/enhancement in future periods and expectations for growth and leasing activities in future periods 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, adverse changes in general economic or local market conditions, including as a result of the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, uncertainty relating to the completion and timing of the disposition of properties under agreement, any inability to dispose of other properties on acceptable terms and any delays in the timing of any such anticipated dispositions, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments.  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, 2020, 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 Loss	I

-5-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Statements of Operations

(Unaudited)

	For the
	Three Months Ended
	March 31,
(in thousands, except per share amounts)	2021		2020
Revenue:
Rental	$	58,623	$	62,567
Related party revenue:
Management fees and interest income from loans		410		403
Other		6		13
Total revenue		59,039		62,983
Expenses:
Real estate operating expenses		15,939		17,298
Real estate taxes and insurance		12,366		11,762
Depreciation and amortization		24,381		22,338
General and administrative		4,146		3,525
Interest		8,600		9,063
Total expenses		65,432		63,986
Gain on sale of property		—		—
Loss before taxes		(6,393)		(1,003)
Tax expense		67		68
Net loss	$	(6,460)	$	(1,071)
Weighted average number of shares outstanding, basic and diluted		107,328		107,269
Net loss per share, basic and diluted	$	(0.06)	$	(0.01)

-6-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

	March 31,		December 31,
(in thousands, except share and par value amounts)	2021		2020
Assets:
Real estate assets:
Land	$	189,155	$	189,155
Buildings and improvements		1,954,838		1,938,629
Fixtures and equipment		13,308		12,949
		2,157,301		2,140,733
Less accumulated depreciation		555,688		538,717
Real estate assets, net		1,601,613		1,602,016
Acquired real estate leases, less accumulated amortization of $53,670 and $55,447, respectively		25,836		28,206
Cash, cash equivalents and restricted cash		4,113		4,150
Tenant rent receivables		4,337		7,656
Straight-line rent receivable		69,743		67,789
Prepaid expenses and other assets		5,873		5,752
Related party mortgage loan receivables		21,000		21,000
Office computers and furniture, net of accumulated depreciation of $1,459 and $1,443, respectively		147		163
Deferred leasing commissions, net of accumulated amortization of $26,384 and $30,411, respectively		56,771		56,452
Total assets	$	1,789,433	$	1,793,184
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	27,500	$	3,500
Term loans payable, less unamortized financing costs of $2,332 and $2,677, respectively		717,668		717,323
Series A & Series B Senior Notes, less unamortized financing costs of $781 and $822, respectively		199,219		199,178
Accounts payable and accrued expenses		63,456		72,058
Accrued compensation		1,390		3,918
Tenant security deposits		8,041		8,677
Lease liability		1,444		1,536
Other liabilities: derivative liabilities		13,698		17,311
Acquired unfavorable real estate leases, less accumulated amortization of $3,959 and $4,031, respectively		1,433		1,592
Total liabilities		1,033,849		1,025,093
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, 107,328,199 and 107,328,199 shares issued and outstanding, respectively		11		11
Additional paid-in capital		1,357,131		1,357,131
Accumulated other comprehensive loss		(13,698)		(17,311)
Accumulated distributions in excess of accumulated earnings		(587,860)		(571,740)
Total stockholders’ equity		755,584		768,091
Total liabilities and stockholders’ equity	$	1,789,433	$	1,793,184

-7-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	For the
	Three Months Ended
	March 31,
(in thousands)	2021		2020
Cash flows from operating activities:
Net loss	$	(6,460)	$	(1,071)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		25,088		23,086
Amortization of above and below market leases		(32)		(73)
Decrease in allowance for doubtful accounts and write-off of accounts receivable		—		(13)
Changes in operating assets and liabilities:
Tenant rent receivables		3,319		255
Straight-line rents		(1,904)		(966)
Lease acquisition costs		(50)		(470)
Prepaid expenses and other assets		(532)		(644)
Accounts payable and accrued expenses		(9,564)		(8,215)
Accrued compensation		(2,528)		(2,065)
Tenant security deposits		(636)		269
Payment of deferred leasing commissions		(5,056)		(2,892)
Net cash provided by operating activities		1,645		7,201
Cash flows from investing activities:
Property improvements, fixtures and equipment		(16,022)		(20,054)
Net cash used in investing activities		(16,022)		(20,054)
Cash flows from financing activities:
Distributions to stockholders		(9,660)		(9,654)
Borrowings under bank note payable		36,500		35,000
Repayments of bank note payable		(12,500)		(5,000)
Net cash provided by financing activities		14,340		20,346
Net increase (decrease) in cash, cash equivalents and restricted cash		(37)		7,493
Cash, cash equivalents and restricted cash, beginning of year		4,150		9,790
Cash, cash equivalents and restricted cash, end of period	$	4,113	$	17,283

-8-

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
2021	476,748	4.9%
2022	850,092	8.8%
2023	454,431	4.7%
2024	857,738	8.9%
2025	855,745	8.9%
Thereafter (2)	6,165,525	63.8%
	9,660,279	100.0%

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

(2) Includes 1,725,009 square feet of vacancies at our operating properties and 111,469 square feet of vacancies at our redevelopment properties as of March 31, 2021. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(dollars & square feet in 000's)	As of March 31, 2021 (a)
	# of			% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio
Colorado	6	$	548,881	34.3%	2,624	27.2%
Texas	9		338,980	21.1%	2,420	25.0%
Georgia	5		324,932	20.3%	1,967	20.4%
Minnesota	3		120,842	7.5%	757	7.8%
Virginia	4		84,699	5.3%	685	7.1%
North Carolina	1		7,696	0.5%	64	0.7%
Missouri	2		42,555	2.7%	352	3.6%
Illinois	2		45,817	2.9%	372	3.9%
Florida	1		57,535	3.6%	213	2.2%
Indiana	1		29,676	1.8%	206	2.1%
Total	34	$	1,601,613	100.0%	9,660	100.0%

(a) Includes investment in our 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.

-9-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures

(in thousands)	For the Three Months Ended
	31-Mar-21
Tenant improvements	$	4,491
Deferred leasing costs		2,597
Non-investment capex		5,336
	$	12,424

	For the Three Months Ended								Year Ended
	31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Tenant improvements	$	10,716	$	13,531	$	8,022	$	837	$	33,106
Deferred leasing costs		2,730		603		2,033		7,432		12,798
Non-investment capex		4,527		6,581		6,373		6,105		23,586
	$	17,973	$	20,715	$	16,428	$	14,374	$	69,490

Square foot & leased percentages	March 31,	December 31,
	2021	2020
Operating Properties:
Number of properties	33	32
Square feet	9,548,810	9,331,489
Leased percentage	81.9%	85.0%
Redevelopment Properties (a):
Number of properties	1	2
Square feet	111,469	324,651
Leased percentage	0.0%	48.0%
Total Owned Properties:
Number of properties	34	34
Square feet	9,660,279	9,656,140
Leased percentage	81.0%	83.8%
Managed Properties - Single Asset REITs (SARs):
Number of properties	2	2
Square feet	348,545	348,545
Total Operating, Redevelopment and Managed Properties:
Number of properties	36	36
Square feet	10,008,824	10,004,685

(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.

-10-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)

					Fourth		First
				% Leased (1)	Quarter	% Leased (1)	Quarter
				as of	Average %	as of	Average %
	Property Name	Location	Square Feet	31-Dec-20	Leased (2)	31-Mar-21	Leased (2)
1	FOREST PARK	Charlotte, NC	64,198	78.4%	78.4%	78.4%	78.4%
2	MEADOW POINT	Chantilly, VA	138,537	91.1%	77.2%	91.1%	91.1%
3	TIMBERLAKE	Chesterfield, MO	234,496	100.0%	97.1%	100.0%	100.0%
4	TIMBERLAKE EAST	Chesterfield, MO	117,036	100.0%	94.5%	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	71.7%	71.7%	71.7%	71.7%
7	PARK TEN PHASE II	Houston, TX	156,746	95.0%	95.0%	95.0%	95.0%
8	GREENWOOD PLAZA	Englewood, CO	196,236	100.0%	100.0%	100.0%	100.0%
9	ADDISON	Addison, TX	289,325	83.7%	83.7%	83.7%	83.7%
10	COLLINS CROSSING	Richardson, TX	300,887	83.5%	83.5%	84.4%	83.8%
11	INNSBROOK	Glen Allen, VA	298,183	57.2%	57.2%	57.2%	57.2%
12	RIVER CROSSING	Indianapolis, IN	205,729	100.0%	100.0%	100.0%	100.0%
13	LIBERTY PLAZA	Addison, TX	216,952	74.1%	74.1%	74.1%	74.1%
14	380 INTERLOCKEN	Broomfield, CO	240,359	76.0%	74.1%	76.0%	76.0%
15	390 INTERLOCKEN	Broomfield, CO	241,512	99.4%	99.4%	99.4%	99.4%
16	BLUE LAGOON	Miami, FL	213,182	73.1%	73.1%	73.1%	73.1%
17	ELDRIDGE GREEN	Houston, TX	248,399	100.0%	100.0%	100.0%	100.0%
18	ONE OVERTON PARK	Atlanta, GA	387,267	95.6%	94.3%	95.5%	95.6%
19	LOUDOUN TECH	Dulles, VA	136,658	98.9%	98.9%	98.9%	98.9%
20	4807 STONECROFT (3)	Chantilly, VA	111,469	0.0%	0.0%	0.0%	0.0%
21	121 SOUTH EIGHTH ST	Minneapolis, MN	297,209	92.6%	92.6%	92.0%	92.2%
22	801 MARQUETTE AVE	Minneapolis, MN	129,821	91.8%	91.8%	91.8%	91.8%
23	LEGACY TENNYSON CTR	Plano, TX	207,049	100.0%	100.0%	41.1%	60.7%
24	ONE LEGACY	Plano, TX	214,110	56.4%	56.4%	56.4%	56.4%
25	909 DAVIS	Evanston, IL	195,098	93.3%	93.3%	93.3%	93.3%
26	ONE RAVINIA DRIVE	Atlanta, GA	386,602	89.0%	89.0%	80.8%	80.8%
27	TWO RAVINIA	Atlanta, GA	411,047	69.2%	69.2%	68.6%	68.7%
28	WESTCHASE I & II	Houston, TX	629,025	53.5%	54.4%	52.4%	52.4%
29	1999 BROADWAY	Denver, CO	680,255	81.8%	82.9%	67.2%	72.4%
30	999 PEACHTREE	Atlanta, GA	621,946	84.5%	84.5%	84.5%	84.5%
31	1001 17TH STREET	Denver, CO	655,420	96.0%	96.5%	96.0%	96.0%
32	PLAZA SEVEN	Minneapolis, MN	330,096	88.5%	90.4%	86.7%	87.3%
33	PERSHING PLAZA	Atlanta, GA	160,145	98.9%	98.9%	98.9%	98.9%
34	600 17TH STREET	Denver, CO	610,730	88.0%	88.0%	87.5%	87.7%
	OWNED PORTFOLIO		9,660,279	83.8%	83.9%	81.0%	81.8%

(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 three months during the quarter.

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

-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 March 31, 2021

			% of
	Tenant	Sq Ft	Portfolio
1	Centene Management Company, LLC	317,101	3.3%
2	CITGO Petroleum Corporation	248,399	2.6%
3	Ovintiv USA Inc.	234,495	2.4%
4	Eversheds Sutherland (US) LLP	179,868	1.9%
5	EOG Resources, Inc.	169,167	1.7%
6	US Government	168,573	1.7%
7	The Vail Corporation	164,636	1.7%
8	Lennar Homes, LLC	155,808	1.6%
9	T-Mobile South, LLC dba T-Mobile	151,792	1.6%
10	Citicorp Credit Services, Inc	146,260	1.5%
11	Jones Day	140,342	1.5%
12	Kaiser Foundation Health Plan	120,979	1.3%
13	Argo Data Resource Corporation	114,200	1.2%
14	Giesecke & Devrient America	112,110	1.2%
15	Randstad General Partner (US)	111,952	1.2%
16	VMWare, Inc.	100,853	1.0%
17	Deluxe Corporation	98,922	1.0%
18	Ping Identity Corp.	89,856	0.9%
19	Common Grounds, LLC	76,984	0.8%
20	Somerset CPAs, P.C.	71,163	0.7%
	Total	2,973,460	30.8%

-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 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
	March 31,
(In thousands, except per share amounts)	2021		2020
Net loss	$	(6,460)	$	(1,071)
Depreciation & amortization		24,349		22,265
NAREIT FFO		17,889		21,194
Lease Acquisition costs		116		98
Funds From Operations (FFO)	$	18,005	$	21,292
Funds From Operations (FFO)	$	18,005	$	21,292
Amortization of deferred financing costs		707		748
Straight-line rent		(1,904)		(966)
Tenant improvements		(4,491)		(10,716)
Leasing commissions		(2,597)		(2,730)
Non-investment capex		(5,336)		(4,527)
Adjusted Funds From Operations (AFFO)	$	4,384	$	3,101
Per Share Data
EPS	$	(0.06)	$	(0.01)
FFO	$	0.17	$	0.20
AFFO	$	0.04	$	0.03
Weighted average shares (basic and diluted)		107,328		107,269

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

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

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner.  We have included the NAREIT FFO 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, (5) plus the value of shares issued as compensation and (6) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures.  Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions.  

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

AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.  Other real estate companies may define this term in a different manner.  We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.  

-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

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 our redevelopment properties.  We also exclude properties that have been placed in service, but that do not have operating activity for all periods presented, dispositions and significant nonrecurring income such as bankruptcy settlements and lease termination fees.  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	31-Mar-21		31-Dec-20		(Dec)		Change
Region
East	573	$	949	$	1,047	$	(98)	(9.4)	%
MidWest	1,557		5,378		5,292		86	1.6	%
South	4,387		12,423		10,481		1,942	18.5	%
West	2,624		10,369		11,006		(637)	(5.8)	%
Property NOI* from Operating Properties	9,141		29,119		27,826		1,293	4.6	%
Dispositions and Redevelopment Properties (a)	519		642		1,554		(912)	(3.3)	%
NOI*	9,660	$	29,761	$	29,380	$	381	1.3	%
Sequential Same Store		$	29,119	$	27,826	$	1,293	4.6	%
Less Nonrecurring
Items in NOI* (b)			32		345		(313)	1.2	%
Comparative
Sequential Same Store		$	29,087	$	27,481	$	1,606	5.8	%

-15-

	Three Months Ended		Three Months Ended
Reconciliation to Net income	31-Mar-21		31-Dec-20
Net income (loss)	$	(6,460)	$	37,440
Add (deduct):
Gain on sale of property		—		(41,928)
Management fee income		(465)		(464)
Depreciation and amortization		24,381		21,899
Amortization of above/below market leases		(32)		(79)
General and administrative		4,146		3,838
Interest expense		8,600		9,030
Interest income		(394)		(391)
Non-property specific items, net		(15)		35
NOI*	$	29,761	$	29,380

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

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

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

EX-99.2

Exhibit 99.2 

Franklin Street Properties Corp. Supplemental Operating & Financial Data 401 Edgewater Place ~Wakefield, MA 01880 781.557.1300.~ www.fspreit.com

First Quarter 2021
Table of Contents

	Page		Page
Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry	18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term	19-20
Financial Highlights	4	Leasing Activity	21
Income Statements	5	Lease Expirations by Square Feet	22
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot	23
Cash Flow Statements	7	Redevelopment Activity	24
Property Net Operating Income (NOI)	8	Capital Expenditures	25
Reconciliation		Transaction Activity	26
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate	27
Property NOI	11
		Net Asset Value Components	28
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO	29
		EBITDA and NOI	30
Owned and Managed Portfolio Overview	14-17	AFFO	31

All financial information contained in this supplemental information package is unaudited.  In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws.  Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.  Factors that could cause actual results to differ materially from FSP’s current expectations include adverse changes in general economic or local market conditions, including as a result of the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, any inability to dispose of properties on acceptable terms and any delays in the timing of any such anticipated dispositions, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments.  FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Dominion Towers, Denver, CO

March 31, 2021| Page 2

Company Information

Overview		Snapshot (as of March 31, 2021)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets.  FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income.  FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. FSP’s real estate operations include property acquisitions and dispositions, short-term financing, leasing, development and asset management.		Corporate Headquarters	Wakefield, MA
		Fiscal Year-End	31-Dec
		Total Properties	34 (1)
		Total Square Feet	9.7 Million (1)
		Trading Symbol	FSP
		Exchange	NYSE American
		Common Shares Outstanding	107,328,199
		Quarterly Dividend	$0.09
Our Business		Dividend Yield	6.6%
As of March 31, 2021, the Company owned and operated a portfolio of real estate consisting of 33 operating  properties, one redevelopment property and two managed Sponsored REITs.  From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons.		Total Market Capitalization	$1.5 Billion (2)
		Insider Holdings	4.72%
Management Team
George J. Carter	Jeffrey B. Carter
Chief Executive Officer and	President and Chief Investment
Chairman of the Board	Officer
John G. Demeritt	Scott H. Carter
Executive Vice President, Chief	Executive Vice President, General
Financial Officer and Treasurer	Counsel and Secretary
John F. Donahue	Eriel Anchondo
Executive Vice President	Executive Vice President and Chief Operating Officer	Pershing Park Plaza, Atlanta, GA
Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com (1) Includes both operating and redevelopment properties. (2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

March 31, 2021| Page 3

Summary of Financial Highlights

(in thousands except per share amounts, SF & number of properties)
	31-Mar-21			31-Dec-20		30-Sep-20		30-Jun-20	31-Mar-20
Income Items:
Rental revenue	$	58,623	$	59,408	$	61,834	$	60,398	$	62,567
Total revenue		59,039		59,810		62,247		60,808		62,983
Net income (loss)		(6,460)		37,440		(1,679)		(2,075)		(1,071)
Adjusted EBITDA (a)*		26,556		26,409		29,334		29,139		30,325
FFO*		18,005		17,466		20,446		20,194		21,292
AFFO*		4,384		4,867		3,452		165		3,101
Per Share Data:
EPS	$	(0.06)	$	0.35	$	(0.02)	$	(0.02)	$	(0.01)
FFO*	$	0.17	$	0.16	$	0.19	$	0.19	$	0.20
AFFO*	$	0.04	$	0.05	$	0.03	$	0.00	$	0.03
Weighted Average Shares (diluted)		107,328		107,328		107,328		107,287		107,269
Closing share price	$	5.45	$	4.37	$	3.66	$	5.09	$	5.73
Dividend declared	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Balance Sheet Items:
Real estate, net	$	1,601,613	$	1,602,016	$	1,649,649	$	1,645,898	$	1,639,196
Other assets, net		187,820		191,168		190,372		189,537		208,431
Total assets, net		1,789,433		1,793,184		1,840,021		1,835,435		1,847,627
Total liabilities, net		1,033,849		1,025,093		1,102,556		1,089,432		1,090,309
Shareholders' equity		755,584		768,091		737,465		746,003		757,318
Market Capitalization and Debt:
Total Market Capitalization (b)	$	1,532,439	$	1,392,524	$	1,392,821	$	1,546,301	$	1,614,653
Total debt outstanding (excluding unamortized financing costs)	$	947,500	$	923,500	$	1,000,000	$	1,000,000	$	1,000,000
Debt to Total Market Capitalization		61.8%		66.3%		71.8%		64.7%		61.9%
Net Debt to Adjusted EBITDA ratio (a)*		8.9		8.7		8.5		8.6		8.1
Operating Properties Leasing Statistics (c):
Operating properties assets		33		32		32		32		32
Operating properties total SF		9,548,810		9,331,489		9,526,822		9,508,226		9,506,513
Operating properties % leased		81.9%		85.0%		85.6%		84.5%		85.4%

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

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

(c) Excludes redevelopment properties.

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

March 31, 2021| Page 4

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

											For the
	For the Three Months Ended		For the Three Months Ended								Year Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Revenue:
Rental	$	58,623	$	62,567	$	60,398	$	61,834	$	59,408	$	244,207
Related party revenue:
Management fees and interest income from loans		410		403		405		400		402		1,610
Other		6		13		5		13		—		31
Total revenue		59,039		62,983		60,808		62,247		59,810		245,848
Expenses:
Real estate operating expenses		15,939		17,298		15,470		16,730		17,442		66,940
Real estate taxes and insurance		12,366		11,762		12,307		12,279		12,042		48,390
Depreciation and amortization		24,381		22,338		22,245		22,076		21,899		88,558
General and administrative		4,146		3,525		3,817		3,817		3,838		14,997
Interest		8,600		9,063		8,980		8,953		9,030		36,026
Total expenses		65,432		63,986		62,819		63,855		64,251		254,911
Gain on sale of property		—		—		—		—		41,928		41,928
Income (loss) before taxes on income		(6,393)		(1,003)		(2,011)		(1,608)		37,487		32,865
Tax expense on income		67		68		64		71		47		250
Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Weighted average number of shares outstanding, basic and diluted		107,328		107,269		107,287		107,328		107,328		107,303
Net income (loss) per share, basic and diluted	$	(0.06)	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30

March 31, 2021| Page 5

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

	March 31,		March 31,		June 30,		September 30,		December 31,
	2021		2020		2020		2020		2020
Assets:
Real estate assets:
Land	$	189,155	$	191,578	$	191,578	$	191,578	$	189,155
Buildings and improvements		1,954,838		1,941,952		1,964,308		1,983,979		1,938,629
Fixtures and equipment		13,308		11,917		12,250		12,714		12,949
		2,157,301		2,145,447		2,168,136		2,188,271		2,140,733
Less accumulated depreciation		555,688		506,251		522,238		538,622		538,717
Real estate assets, net		1,601,613		1,639,196		1,645,898		1,649,649		1,602,016
Acquired real estate leases, net		25,836		37,270		34,022		31,011		28,206
Cash, cash equivalents and restricted cash		4,113		17,283		2,890		4,840		4,150
Tenant rent receivables, net		4,337		3,609		4,192		4,007		7,656
Straight-line rent receivable, net		69,743		68,317		69,062		71,033		67,789
Prepaid expenses and other assets		5,873		7,486		6,506		6,538		5,752
Related party mortgage loan receivable		21,000		21,000		21,000		21,000		21,000
Office computers and furniture, net of accumulated depreciation		147		215		196		178		163
Deferred leasing commissions, net		56,771		53,251		51,669		51,765		56,452
Total assets	$	1,789,433	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184
Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	27,500	$	30,000	$	30,000	$	30,000	$	3,500
Term loan payable, net of unamortized financing costs		717,668		766,124		766,493		766,863		717,323
Series A & Series B Senior Notes		199,219		199,055		199,096		199,137		199,178
Accounts payable and accrued expenses		63,456		57,076		55,712		69,905		72,058
Accrued compensation		1,390		1,335		2,278		3,634		3,918
Tenant security deposits		8,041		9,615		9,155		9,435		8,677
Lease liability		1,444		1,803		1,716		1,627		1,536
Other liabilities: derivative liabilities		13,698		23,035		22,958		20,157		17,311
Acquired unfavorable real estate leases, net		1,433		2,266		2,024		1,798		1,592
Total liabilities		1,033,849		1,090,309		1,089,432		1,102,556		1,025,093
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—		—		—		—		—
Common stock		11		11		11		11		11
Additional paid-in capital		1,357,131		1,356,794		1,357,131		1,357,131		1,357,131
Accumulated other comprehensive income (loss)		(13,698)		(23,035)		(22,958)		(20,157)		(17,311)
Accumulated distributions in excess of accumulated earnings		(587,860)		(576,452)		(588,181)		(599,520)		(571,740)
Total stockholders’ equity		755,584		757,318		746,003		737,465		768,091
Total liabilities and stockholders’ equity	$	1,789,433	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

March 31, 2021| Page 6

Condensed Consolidated Statements of Cash Flows (in thousands)

		Three Months Ended March 31,
		2021		2020
Cash flows from operating activities:
Net loss	$	(6,460)	$	(1,071)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		25,088		23,086
Amortization of above and below market leases		(32)		(73)
Decrease in allowance for doubtful accounts and write-off of accounts receivable		—		(13)
Changes in operating assets and liabilities:
Tenant rent receivables		3,319		255
Straight-line rents		(1,904)		(966)
Lease acquisition costs		(50)		(470)
Prepaid expenses and other assets		(532)		(644)
Accounts payable and accrued expenses		(9,564)		(8,215)
Accrued compensation		(2,528)		(2,065)
Tenant security deposits		(636)		269
Payment of deferred leasing commissions		(5,056)		(2,892)
Net cash provided by operating activities		1,645		7,201
Cash flows from investing activities:
Property improvements, fixtures and equipment		(16,022)		(20,054)
Net cash used in investing activities		(16,022)		(20,054)
Cash flows from financing activities:
Distributions to stockholders		(9,660)		(9,654)
Borrowings under bank note payable		36,500		35,000
Repayments of bank note payable		(12,500)		(5,000)
Net cash provided by financing activities		14,340		20,346
Net increase (decrease) in cash, cash equivalents and restricted cash		(37)		7,493
Cash, cash equivalents and restricted cash, beginning of period		4,150		9,790
Cash, cash equivalents and restricted cash, end of period	$	4,113	$	17,283

March 31, 2021| Page 7

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

	Rentable											Year
	Square Feet	Three Months Ended		Three Months Ended								Ended		Inc		%
(in thousands)	or RSF	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20		(Dec)		Change
Region
East	573	$	949	$	1,325	$	1,552	$	922	$	1,047	$	4,846	$	(376)	(28.4)	%
MidWest	1,557		5,378		5,485		5,089		5,069		5,292		20,935		(107)	(2.0)	%
South	4,387		12,423		13,290		13,025		13,619		10,481		50,415		(867)	(6.5)	%
West	2,624		10,369		11,463		11,211		10,976		11,006		44,656		(1,094)	(9.5)	%
Property NOI* from Operating Properties	9,141		29,119		31,563		30,877		30,586		27,826		120,852		(2,444)	(7.7)	%
Dispositions and Redevelopment Properties (a)	519		642		1,311		1,319		1,611		1,554		5,795		(669)	(1.8)	%
Property NOI*	9,660	$	29,761	$	32,874	$	32,196	$	32,197	$	29,380	$	126,647	$	(3,113)	(9.5)	%
Same Store		$	29,119	$	31,563	$	30,877	$	30,586	$	27,826	$	120,852	$	(2,444)	(7.7)	%
Less Nonrecurring
Items in NOI* (b)			32		26		810		351		345		1,532		6	(0.1)	%
Comparative
Same Store		$	29,087	$	31,537	$	30,067	$	30,235	$	27,481	$	119,320	$	(2,450)	(7.8)	%

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

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

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

March 31, 2021| Page 8

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

											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Gain on sale of property		—		—		—		—		(41,928)		(41,928)
Depreciation & amortization		24,349		22,265		22,170		21,989		21,820		88,244
NAREIT FFO*		17,889		21,194		20,095		20,310		17,332		78,931
Lease Acquisition costs		116		98		99		136		134		467
Funds From Operations (FFO)*	$	18,005	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398
Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	18,005	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398
Amortization of deferred financing costs		707		748		726		727		824		3,025
Shares issued as compensation		—		—		337		—		—		337
Straight-line rent		(1,904)		(966)		(377)		(1,293)		951		(1,685)
Tenant improvements		(4,491)		(10,716)		(13,531)		(8,022)		(837)		(33,106)
Leasing commissions		(2,597)		(2,730)		(603)		(2,033)		(7,432)		(12,798)
Non-investment capex		(5,336)		(4,527)		(6,581)		(6,373)		(6,105)		(23,586)
Adjusted Funds From Operations (AFFO)*	$	4,384	$	3,101	$	165	$	3,452	$	4,867	$	11,585
Per Share Data:
EPS	$	(0.06)	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30
FFO*		0.17		0.20		0.19		0.19		0.16		0.74
AFFO*		0.04		0.03		0.00		0.03		0.05		0.11
Weighted Average Shares (basic and diluted)		107,328		107,269		107,287		107,328		107,328		107,303

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

March 31, 2021| Page 9

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

											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Net income (loss)	$	(6,460)	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Interest expense		8,600		9,063		8,980		8,953		9,030		36,026
Depreciation and amortization		24,349		22,265		22,170		21,989		21,820		88,244
Income taxes		67		68		64		71		47		250
EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	68,337	$	157,135
(Gain) loss on sale of properties and provisions for loss on properties held for sale or equity investments		—		—		—		—		(41,928)		(41,928)
Adjusted EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	26,409	$	115,207
Interest expense	$	8,600	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026
Scheduled principal payments		—		—		—		—		—		—
Interest and scheduled principal payments	$	8,600	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026
Interest coverage ratio (1)		3.09		3.35		3.24		3.28		2.92		3.20
Debt service coverage ratio (1)		3.09		3.35		3.24		3.28		2.92		3.20
Debt excluding unamortized financing costs	$	947,500	$	1,000,000	$	1,000,000	$	1,000,000	$	923,500
Cash, cash equivalents and restricted cash		4,113		17,283		2,890		4,840		4,150
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	943,387	$	982,717	$	997,110	$	995,160	$	919,350
Adjusted EBITDA (1)*	$	26,556	$	30,325	$	29,139	$	29,334	$	26,409
Annualized	$	106,224	$	121,300	$	116,556	$	117,336	$	105,636
Net Debt-to-Adjusted EBITDA ratio (1)*		8.9		8.1		8.6		8.5		8.7

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

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

March 31, 2021| Page 10

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

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

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

March 31, 2021| Page 11

Debt Summary (in thousands)

		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		31-Mar-21		Components			31-Mar-21	Fee
BAML Revolver	12-Jan-22	$	600,000	$	27,500	Libor	+	1.20%	1.30%	0.25%
JPM Term Loan	30-Nov-21		100,000		100,000	2.44%	+	1.25%	3.69%
BAML Term Loan	12-Jan-23		400,000		400,000	1.12%	+	1.35%	2.47%
BMO Term Loan Tranche A	30-Nov-21		55,000		55,000	2.39%	+	1.25%	3.64%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.39%	+	1.25%	3.64%
Series A Senior Notes	20-Dec-24		116,000		116,000				3.99%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.26%
		$	1,520,000	$	947,500				3.18%

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

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

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

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

March 31, 2021| Page 12

Capital Analysis (in thousands, except per share amounts)

	31-Mar-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20
Market Data:
Shares Outstanding		107,328		107,269		107,328		107,328		107,328
Closing market price per share	$	5.45	$	5.73	$	5.09	$	3.66	$	4.37
Market capitalization	$	584,939	$	614,653	$	546,301	$	392,821	$	469,024
Total debt outstanding excluding unamortized financing costs		947,500		1,000,000		1,000,000		1,000,000		923,500
Total Market Capitalization	$	1,532,439	$	1,614,653	$	1,546,301	$	1,392,821	$	1,392,524
Dividend Data:
Total dividends declared for the quarter	$	9,660	$	9,654	$	9,654	$	9,660	$	9,660
Common dividend declared per share	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Declared dividend as a % of Net income (loss) per share		(150)%		(901)%		(465)%		(575)%		26%
Declared dividend as a % of AFFO* per share		220%		311%		5852%		280%		198%
Liquidity:
Cash, cash equivalents and restricted cash	$	4,113	$	17,283	$	2,890	$	4,840	$	4,150
Revolver:
Gross potential available under the BAML Revolver		600,000		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(27,500)		(30,000)		(30,000)		(30,000)		(3,500)
Total Liquidity	$	576,613	$	587,283	$	572,890	$	574,840	$	600,650

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

March 31, 2021| Page 13

Owned Portfolio Overview

	As of the Quarter Ended
	31-Mar-21	31-Dec-20	30-Sep-20	30-Jun-20	31-Mar-20
Operating Properties:
Number of properties	33	32	32	32	32
Square feet	9,548,810	9,331,489	9,526,822	9,508,226	9,506,513
Leased percentage	81.9%	85.0%	85.6%	84.5%	85.4%
Redevelopment Properties (a):
Number of properties	1	2	3	3	3
Square feet	111,469	324,651	388,849	405,215	405,215
Leased percentage	0.0%	48.0%	53.0%	55.8%	55.8%
Total Owned Properties:
Number of properties	34	34	35	35	35
Square feet	9,660,279	9,656,140	9,915,671	9,913,441	9,911,728
Leased percentage	81.0%	83.8%	84.3%	83.3%	84.2%
Managed Properties - Single Asset REITs (SARs):
Number of properties	2	2	2	2	2
Square feet	348,545	348,545	348,545	348,545	348,545
Total Operating, Redevelopment and Managed Properties:
Number of properties	36	36	37	37	37
Square feet	10,008,824	10,004,685	10,264,216	10,261,986	10,260,273

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

March 31, 2021| Page 14

Owned Portfolio Overview

				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)
Owned Properties:
East Region								Midwest Region
Washington, D.C.								Chicago
Meadow Point	Chantilly	VA	138,537	91.1%	70.3%	$	24.72	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	29.90
Loudoun Tech Center	Dulles	VA	136,658	98.9%	98.9%	$	20.73	909 Davis Street	Evanston	IL	195,098	93.3%	93.3%	$	40.68
Stonecroft (c)	Chantilly	VA	111,469	0.0%	0.0%	$	—
								Indianapolis
Richmond, VA								River Crossing	Indianapolis	IN	205,729	100.0%	99.5%	$	25.16
Innsbrook	Glen Allen	VA	298,183	57.2%	57.2%	$	18.65
								St. Louis
Charlotte, NC								Timberlake	Chesterfield	MO	234,496	100.0%	95.7%	$	32.88
Forest Park	Charlotte	NC	64,198	78.4%	34.5%	$	25.93	Timberlake East	Chesterfield	MO	117,036	100.0%	83.6%	$	26.99
								Minneapolis
								121 South 8th Street	Minneapolis	MN	297,209	92.0%	83.9%	$	23.75
								801 Marquette Ave	Minneapolis	MN	129,821	91.8%	37.0%	$	35.11
								Plaza Seven	Minneapolis	MN	330,096	86.7%	85.7%	$	32.61
East Region Total			749,045	64.4%	56.8%	$	21.08	Midwest Region Total			1,686,580	94.6%	86.9%	$	30.49

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

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

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

March 31, 2021| Page 15

Owned Portfolio Overview

				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)
South Region								West Region
Dallas-Fort Worth								Denver
Legacy Tennyson Center	Plano	TX	207,049	41.1%	60.7%	$	15.28	380 Interlocken	Broomfield	CO	240,359	76.0%	73.1%	$	33.73
One Legacy Circle	Plano	TX	214,110	56.4%	56.4%	$	38.79	1999 Broadway	Denver	CO	680,255	67.2%	70.7%	$	33.20
Addison Circle	Addison	TX	289,325	83.7%	83.7%	$	31.40	Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$	25.21
Collins Crossing	Richardson	TX	300,887	84.4%	83.5%	$	27.42	390 Interlocken	Broomfield	CO	241,512	99.4%	99.4%	$	33.03
Liberty Plaza	Addison	TX	216,952	74.1%	72.8%	$	23.12	1001 17th Street	Denver	CO	655,420	96.0%	95.8%	$	37.08
								600 17th Street	Denver	CO	610,730	87.5%	86.3%	$	32.26
Houston								West Region Total			2,624,512	85.3%	85.6%	$	33.39
Park Ten	Houston	TX	157,460	71.7%	71.7%	$	31.29
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	29.01	Total Owned Properties			9,660,279	81.0%	78.8%	$	29.89
Park Ten Phase II	Houston	TX	156,746	95.0%	95.0%	$	29.14
Westchase I & II	Houston	TX	629,025	52.4%	52.4%	$	28.03
Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive	Miami	FL	213,182	73.1%	48.7%	$	26.23
Atlanta
One Overton Park	Atlanta	GA	387,267	95.5%	93.2%	$	21.58
One Ravinia	Atlanta	GA	386,602	80.8%	79.3%	$	26.49
Two Ravinia	Atlanta	GA	411,047	68.6%	67.3%	$	27.24
Pershing Plaza	Atlanta	GA	160,145	98.9%	98.9%	$	33.67
999 Peachtree	Atlanta	GA	621,946	84.5%	84.3%	$	34.52
South Region Total			4,600,142	76.2%	75.4%	$	28.45

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

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

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

March 31, 2021| Page 16

Managed Portfolio Overview

MSA / Property Name	City	State	Square Feet	MSA / Property Name	City	State	Square Feet
Southeast Region				Midwest Region
Atlanta				Indianapolis
Satellite Place	Duluth	GA	134,785	Monument Circle	Indianapolis	IN	213,760
Southeast Region Total			134,785	Midwest Region Total			213,760
				Total Managed			348,545
				Total Owned & Managed			10,008,824

March 31, 2021| Page 17

Tenants by Industry (By Square Feet)

March 31, 2021| Page 18

20 Largest Tenants with Annualized Rent and Remaining Term

			Remaining	Aggregate				% of Aggregate
	Tenant	Number of	Lease Term	Leased	% of Total	Annualized		Leased
	Name	Leases	in Months	Square Feet	Square Feet	Rent (a)		Annualized Rent
1	Centene Management Company, LLC (b)	3	111, 111, 111	317,101	3.3%	$	5,584,634	2.5%
2	CITGO Petroleum Corporation	1	144	248,399	2.6%		2,923,656	1.3%
3	Ovintiv USA Inc.	1	11	234,495	2.4%		9,967,297	4.5%
4	Eversheds Sutherland (US) LLP	1	61	179,868	1.9%		6,107,389	2.8%
5	EOG Resources, Inc.	1	69	169,167	1.7%		6,175,431	2.8%
6	US Government (c)	2	58, 118	168,573	1.7%		1,265,508	0.6%
7	The Vail Corporation	1	108	164,636	1.7%		5,595,595	2.6%
8	Lennar Homes, LLC (d)	1	192	155,808	1.6%		—	0.0%
9	T-Mobile South, LLC dba T-Mobile	1	53	151,792	1.6%		4,143,922	1.9%
10	Citicorp Credit Services, Inc	1	77	146,260	1.5%		4,766,613	2.2%
11	Jones Day	1	2	140,342	1.5%		4,952,119	2.3%
12	Kaiser Foundation Health Plan	1	38	120,979	1.3%		3,669,785	1.7%
13	Argo Data Resource Corporation (e)	1	30, 113	114,200	1.2%		3,256,984	1.5%
14	Giesecke & Devrient America	1	45	112,110	1.2%		2,180,540	1.0%
15	Randstad General Partner (US) (f)	1	3, 129	111,952	1.2%		29,108	0.0%
16	VMWare, Inc.	1	62	100,853	1.0%		3,456,232	1.6%
17	Deluxe Corporation (g)	1	193	98,922	1.0%		—	0.0%
18	Ping Identity Corp.	1	63	89,856	0.9%		3,529,544	1.6%
19	Common Grounds, LLC (h)	2	123,138	76,984	0.8%		3,079,379	1.4%
20	Somerset CPAs, P.C. (i)	1	15, 139	71,163	0.7%		1,723,450	0.8%
			Total	2,973,460	30.8%	$	72,407,186	33.1%

Footnotes on next page

March 31, 2021| Page 19

20 Largest Tenants with Annualized Rent and Remaining Term

Footnotes:

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

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

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

(d) Rent commences on April 1, 2021.

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

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

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

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

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

March 31, 2021| Page 20

Leasing Activity (Owned Portfolio)

					Year		Year
	Three Months Ended				Ended		Ended
Leasing Activity (a)		31-Mar-21		31-Mar-20		31-Dec-20		31-Dec-19
(in Square Feet - SF)
New leasing		7,000		144,000		368,000		534,000
Renewals and expansions		370,000		136,000		762,000		883,000
		377,000		280,000		1,130,000		1,417,000
Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	28.46	$	31.17	$	28.47	$	31.78
Weighted average lease term		9.3 Years		6.3 Years		8.3 Years		8.3 Years
Increase or decrease over average GAAP rents in prior year (b)		(1.7)%		10.5%		7.7%		10.9%
Average free rent		9 Months		4 Months		5 Months		3 Months
Tenant Improvements	$	18.67	$	22.13	$	34.07	$	34.44
Leasing Costs	$	10.23	$	7.80	$	11.36	$	13.51

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

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

March 31, 2021| Page 21

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

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

March 31, 2021| Page 22

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

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

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

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

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

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

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

March 31, 2021| Page 23

Redevelopment Activity

(in 000's except square feet)										Estimated	Estimated
						Incurred		Percent	Estimated	Leased	Occupied
			Rentable	Anticipated		Through		Leased	Completion	Stabilization	Stabilization
Property Name	City	State	Square Feet	Investment (1)		31-Mar-21		31-Mar-21	Date	Date	Date
Redevelopment in Process
Stonecroft	Chantilly	VA	111,469	$	18,462	$	2,281	0.0%	July-21	January-22	December-22
Total Office in Process			111,469	$	18,462	$	2,281

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

March 31, 2021| Page 24

Capital Expenditures

(in thousands)
	For the Three Months Ended
	31-Mar-21
Tenant improvements	$	4,491
Deferred leasing costs		2,597
Non-investment capex		5,336
Total Capital Expenditures	$	12,424

	For the Three Months Ended								Year Ended
	31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Tenant improvements	$	10,716	$	13,531	$	8,022	$	837	$	33,106
Deferred leasing costs		2,730		603		2,033		7,432		12,798
Non-investment capex		4,527		6,581		6,373		6,105		23,586
Total Capital Expenditures	$	17,973	$	20,715	$	16,428	$	14,374	$	69,490

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

March 31, 2021| Page 25

Transaction Activity (in thousands except for Square Feet)

Recent Acquisitions:	City	State	Square Feet	Date Acquired	Purchase Price
2016
Plaza Seven	Minneapolis	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
2020
Emperor Boulevard	Durham	NC	259,531	12/23/20	$	89,700	$	41,928
2017
Hillview	Milpitas	CA	36,288	1/6/17	$	6,342	$	2,289
East Baltimore	Baltimore	MD	325,445	10/20/17		32,547		(20,770)
2016
Lakeside I	Maryland Heights	MO	127,778	4/5/16	$	20,189	$	4,154
Federal Way	Federal Way	WA	117,010	12/16/16		7,500		(7,092)
2015
Willow Bend	Plano	TX	117,050	2/23/15	$	20,750	$	1,462
Eden Bluff	Eden Prairie	MN	153,028	3/31/15		28,000		9,000
Park Seneca	Charlotte	NC	109,699	5/13/15		8,150		949
Montague	San Jose	CA	145,561	12/9/15		30,250		12,251

March 31, 2021| Page 26

Loan Portfolio of Secured Real Estate (in thousands)

(dollars in thousands, except footnotes)			Maximum		Amount		Interest
		Maturity	Amount		Outstanding		Rate at
Sponsored REIT	Location	Date	of Loan		31-Mar-21		31-Mar-21
Mortgage loan secured by property
FSP Monument Circle LLC (1)	Indianapolis, IN	6-Dec-22	$	21,000	$	21,000	7.51%
			$	21,000	$	21,000

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

March 31, 2021| Page 27

Net Asset Value Components

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

March 31, 2021| Page 28

Appendix: Non-GAAP Financial Measure Definitions

Definition of Funds From Operations (“FFO”)

The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders.  The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

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

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

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

March 31, 2021| Page 29

Appendix: Non-GAAP Financial Measure Definitions

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

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

Definition of Property Net Operating Income (Property NOI)

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

March 31, 2021| Page 30

Appendix: Non-GAAP Financial Measure Definitions

Definition of Adjusted Funds From Operations (AFFO)

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

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

AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.  Other real estate companies may define this term in a different manner.  We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.  

March 31, 2021| Page 31

Investor Relations Contact Georgia Touma ~ 877.686.9496 InvestorRelations@fspreit.com Franklin Street Properties Corp. Supplemental Operating & Financial Data 401 Edgewater Place ~Wakefield, MA 01880 781.557.1300 ~ www.fspreit.com

March 31, 2021| Page 32

XML

Document and Entity Information	May 04, 2021
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	May 04, 2021
Entity File Number	001-32470
Entity Registrant Name	Franklin Street Properties Corp.
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	NYSEAMER
Entity Emerging Growth Company	false
Entity Central Index Key	0001031316
Amendment Flag	false