Franklin Street Properties : Q2 2022 Supplemental Operating Data

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300.~ www.fspreit.com

Second Quarter 2022

Table of Contents

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

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

801 Marquette, Minneapolis, MN

June 30, 2022| Page 2

Company Information

Overview		Snapshot (as of June 30, 2022)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business	Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets.	Total Properties	24
FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current	Total Square Feet	6.9 Million
income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment	Trading Symbol	FSP
trust (REIT) for federal income tax purposes. FSP's real estate operations include property acquisitions and	Exchange	NYSE
dispositions, short-term financing, leasing, development and asset management.		American
		Common Shares Outstanding 103,235,914
Our Business		Total Market Capitalization	$1.0 Billion (1)
As of June 30, 2022, the Company owned and operated a portfolio of real estate consisting of 24 operating	Insider Holdings	5.24%
properties and one managed Sponsored REIT. From time-to-time, the Company may acquire, develop or redevelop
real estate, make additional secured loans or acquire its Sponsored REIT. The Company may also pursue, on a
selective basis, the sale of its properties in order to take advantage of the value creation and demand for its
properties, for geographic, property specific reasons or for other general corporate purposes.
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	1999 Broadway, Denver, CO
	Chief Operating Officer
Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or [e-mail]

1. Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

June 30, 2022| Page 3

Summary of Financial Highlights

(in thousands except per share amounts, SF & number of properties)
		30-Jun-22		31-Mar-22		31-Dec-21		30-Sep-21		30-Jun-21
Income Items:
Rental revenue	$	40,831	$	41,797	$	42,910	$	50,326	$	55,722
Total revenue		41,304		42,264		43,372		50,802		56,145
Net income (loss)		(9,110)		(4,158)		78,572		4,456		16,149
Adjusted EBITDA*		15,891		16,918		17,518		22,900		24,930
FFO*		10,257		11,582		10,955		14,797		14,722
AFFO*		(4,072)		918		3,241		4,555		4,880
Per Share Data:
EPS	$	(0.09)	$	(0.04)	$	0.75	$	0.04	$	0.15
FFO*	$	0.10	$	0.11	$	0.10	$	0.14	$	0.14
AFFO*	$	(0.04)	$	0.01	$	0.03	$	0.04	$	0.05
Weighted Average Shares (diluted)		103,193		103,691		105,098		106,905		107,359
Closing share price	$	4.17	$	5.90	$	5.95	$	4.64	$	5.26
Dividend declared	$	0.09	$	0.09	$	0.41	$	0.09	$	0.09
Balance Sheet Items:
Real estate, net	$	1,186,157	$	1,187,348	$	1,190,970	$	1,344,692	$	1,413,547
Other assets, net		145,562		149,772		173,203		161,837		187,068
Total assets, net		1,331,719		1,337,120		1,364,173		1,506,529		1,600,615
Total liabilities, net		577,687		567,234		580,970		751,456		833,930
Shareholders' equity		754,032		769,886		783,203		755,073		766,685
Market Capitalization and Debt:
Total Market Capitalization (a)	$	960,494	$	1,123,596	$	1,093,791	$	1,165,136	$	1,329,896
Total debt outstanding (excluding unamortized financing costs)	$	530,000	$	515,000	$	475,000	$	675,000	$	765,000
Debt to Total Market Capitalization		55.2%		45.8%		43.4%		57.9%		57.5%
Net Debt to Adjusted EBITDA ratio*		8.3		7.4		6.2		7.3		7.4
Operating Properties Leasing Statistics (b):
Operating properties assets		24		24		24		26		29
Operating properties total SF		6,915,715		6,915,609		6,911,225		7,671,275		8,228,148
Operating properties % leased		76.3%		77.3%		78.4%		80.0%		79.5%

1. Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.
2. Excludes redevelopment properties.

• See pages 9 & 10 for reconciliations of Net income or loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

June 30, 2022| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)

						For the													For the
	For the Three Months Ended	Six Months Ended			For the Three Months Ended						Year Ended
		31-Mar-22		30-Jun-22		30-Jun-22		31-Mar-21		30-Jun-21		30-Sep-21			31-Dec-21				31-Dec-21
Revenue:
Rental	$	41,797	$	40,831	$	82,628		$	58,623	$	55,722	$	50,326	$	42,910			$	207,581
Related party revenue:
Management fees and interest income from loans		460		467		927			410		417		419			454				1,700
Other		7		6		13			6		6		57			8				77
Total revenue		42,264		41,304		83,568			59,039		56,145		50,802			43,372				209,358
Expenses:
Real estate operating expenses		12,834		12,344		25,178			15,939		15,352		14,373			15,217				60,881
Real estate taxes and insurance		8,719		9,043		17,762			12,366		11,895		10,200			6,600				41,061
Depreciation and amortization		15,670		18,186		33,856			24,381		19,136		18,862			16,165				78,544
General and administrative		3,784		3,981		7,765			4,146		3,962		3,749			4,041				15,898
Interest		5,366		5,664		11,030			8,600		10,054		7,928			5,691				32,273
Total expenses		46,373		49,218		95,591			65,432		60,399		55,112			47,714				228,657
Loss on extinguishment of debt		-		-		-			-		(167)		(236)			(498)			(901)
Impairment and loan loss reserve		-		(1,140)		(1,140)			-		-		-			-			-
Gain on sale of properties, net		-		-		-			-		20,626		8,632			83,876				113,134
Income (loss) before taxes on income and equity in income of non-consolidated REITs		(4,109)		(9,054)		(13,163)			(6,393)		16,205		4,086			79,036				92,934
Tax expense on income		49		56		105			67		56		51			464				638
Equity in income of non-consolidated REITs		-		-		-			-		-		421			-			421
Net income (loss)	$	(4,158)	$	(9,110)	$	(13,268)		$	(6,460)	$	16,149	$	4,456	$	78,572		$	92,717
Weighted average number of shares outstanding, basic and diluted		103,691		103,193		103,441			107,328		107,359		106,905			105,098				106,667
Net income (loss) per share, basic and diluted	$	(0.04)	$	(0.09)	$	(0.13)		$	(0.06)	$	0.15	$	0.04	$	0.75		$	0.87

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