Franklin Street Properties : Q1 2021 Supplemental Operating Data

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.

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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	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	34 (1)
FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current	Total Square Feet	9.7 Million (1)
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 107,328,199
Our Business		Quarterly Dividend	$0.09
	Dividend Yield	6.6%
As of March 31, 2021, the Company owned and operated a portfolio of real estate consisting of 33 operating	Total Market Capitalization	$1.5 Billion (2)
properties, one redevelopment property and two managed Sponsored REITs. From time-to-time, the Company	Insider Holdings	4.72%
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.
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	Pershing Park Plaza, Atlanta, GA
	Chief Operating Officer
Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or [e-mail]

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%

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 ratio, and if such write-off were excluded, our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.
2. Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.
3. 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

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