8-K - FSP - Equibles

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

FORM 8-K

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

Date of Report (Date of earliest event reported): August 3, 2021


Franklin Street Properties Corp.

(Exact name of registrant as specified in its charter)

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

401 Edgewater Place, Suite 200, Wakefield,<br>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. ☐

Item 2.02. Results of Operations and Financial Condition.

On August 3, 2021, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three and six months ended June 30, 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

Exhibit No.		Description

99.1		Press Release issued by Franklin Street Properties Corp. on August 3, 2021.

99.2		Supplemental Operating and Financial Data for the Second Quarter of 2021.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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: August 3, 2021	By:	/s/ George J. Carter
		George J. Carter
		Chief Executive Officer

Exhibit 99.1


PRESS RELEASE	Franklin Street Properties Corp.

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


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

Franklin Street Properties Corp. Announces

Second Quarter 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—August 3, 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 second quarter ended June 30, 2021.

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

“As the second half of 2021 begins, FSP remains focused on its two previously stated primary objectives for full year 2021: strengthening the balance sheet through debt reduction and leasing progress.

From the perspective of strengthening the balance sheet, during the second quarter ended June 30, 2021, we sold four properties for aggregate gross proceeds of approximately $237 million and used the proceeds primarily to repay debt: We repaid approximately $155 million of term loan indebtedness and all of the approximately $47.5 million that had been drawn under our revolving line of credit. As of June 30, 2021, our full $600 million revolving line of credit was available for use and we had approximately $24 million in cash on our balance sheet.

From a leasing perspective, we continue to see increasing exploratory activity by existing and new prospective tenants at our properties. Converting prospective tenant interest and activity into actual, signed leases is generally taking longer than has historically been the case. We believe that this is primarily due to tenant uncertainty regarding the strength and durability of the post-COVID-19 economy and, as a consequence, delayed decision making regarding the amount and configuration of office space needed to accommodate employees. Discussions with prospective tenants have convinced us that businesses will have better clarity on these subjects by Fall 2021.

At this time, we are reaffirming our previously announced 2021 disposition guidance to be in the range of $350 million to $450 million in aggregate gross proceeds, inclusive of the $237 million of gross proceeds in 2021 realized to date. We are also continuing our suspension of Net Income and FFO guidance due primarily to uncertainty surrounding the timing and amount of proceeds from further property dispositions. Proceeds from additional property dispositions will continue to be used primarily for debt reduction. However, the prices achieved in our dispositions have confirmed our belief that our stock price may at times not be fully reflective of the value of our underlying assets. As a result, we may use a portion of proceeds from asset sales for the repurchase of up to $50 million of our outstanding common shares as market conditions warrant pursuant to our previously announced stock repurchase program.

We expect to make continued progress in achieving our objectives over the balance of 2021.”

-2- Financial Highlights

●	GAAP net income was $16.2 million, or $0.15 for the three months ended June 30, 2021.
●	Funds From Operations (FFO) was $14.8 million, or $0.14 per basic and diluted share, for the three months ended June 30, 2021.
---	---
●	We pulled forward approximately $2.0 million of costs included in interest expense from breaking interest rate swaps and writing off deferred financing costs related to two term loans that were repaid on June 4, 2021. These costs would have been incurred in the second half of 2021 if the term loans had not been repaid. FFO excluding these pulled forward costs would have been $16.7 million, or $0.16 per basic and diluted share for the three months ended June 30, 2021.
---	---
●	Adjusted Funds From Operations (AFFO) was $0.05 per basic and diluted share for the three months ended June 30, 2021.
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●	As noted above, we pulled forward approximately $1.9 million of costs included in interest expense from breaking interest rate swaps related to two term loans that were repaid on June 4, 2021. AFFO excluding these pulled forward costs would have been $6.8 million, or $0.06 per basic and diluted share for the three months ended June 30, 2021.
---	---
●	During the three months ended June 30, 2021, we repaid approximately $155 million of term loan indebtedness and all of the approximately $47.5 million that was drawn under our revolving line of credit.
---	---
●	Since September 30, 2020, we have strengthened our balance sheet by repaying approximately $235 million of indebtedness from the proceeds of asset sales. As of September 30, 2020, our total indebtedness was approximately $1 billion, and as of June 30, 2021, our total indebtedness was approximately $765 million.
---	---
●	We have $624.2 million of liquidity as of June 30, 2021, consisting of $24.2 million of cash and $600.0 million available to draw under our revolving line of credit.
---	---
●	Our debt is entirely unsecured and we have no scheduled debt maturities until January 12, 2022, when the revolving line of credit matures, which had no amount drawn at June 30, 2021.
---	---

Investment Update

●	On May 27, 2021, we sold One Ravinia, Two Ravinia and One Overton Park in Atlanta Georgia for aggregate gross proceeds of approximately $219.5 million.
●	On June 29, 2021, we sold Loudoun Technology Center in Sterling, Virginia for gross proceeds of approximately $17.3 million.
---	---
●	Continue to actively work on the potential sale of select properties that we believe have met their near-term value objectives and whose value may not be accurately reflected in our share price.
---	---
●	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 strengthening the balance sheet through debt reduction.
---	---
●	Current and potential disposition properties include: One and Two River Crossing in Indianapolis, Indiana; Timberlake Corporate Center in Chesterfield, Missouri; Meadow Point and Stonecroft in Chantilly, Virginia; and Innsbrook Corporate Center in Glen Allen, Virginia.
---	---

Leasing Update

●	The list of potential tenant prospects continues to grow with increasing anticipation and optimism in regards to improving occupancies in the fall months ahead. We are currently tracking approximately 850,000 square feet of new prospective tenants, of which 500,000 square feet represents potential net absorption in the next nine months. In addition, we are currently working with approximately 100,000 square feet of existing tenants for renewals, early extensions and potential expansions.
●	During the first half of 2021, we leased approximately 563,000 square feet, of which approximately 465,000 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.
---	---

●

The list of potential tenant prospects continues to grow with increasing anticipation and optimism in regards to improving occupancies in the fall months ahead. We are currently tracking approximately 850,000 square feet of new prospective tenants, of which 500,000 square feet represents potential net absorption in the next nine months. In addition, we are currently working with approximately 100,000 square feet of existing tenants for renewals, early extensions and potential expansions.

●

During the first half of 2021, we leased approximately 563,000 square feet, of which approximately 465,000 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.

---

-3-

●	Our directly owned real estate portfolio of 30 owned properties (including one redevelopment property) totaling approximately 8.3 million square feet, was approximately 78.5% leased as of June 30, 2021, compared to approximately 81.0% leased as of March 31, 2021. The decrease in the leased percentage is primarily a result of property dispositions of properties that on average had a higher percentage of available space leased than the balance of our property portfolio during the second quarter ended June 30, 2021.
●	Lease expirations for the remainder of 2021 are approximately 139,000 square feet, representing approximately 1.7% of our owned portfolio.
---	---
●	The weighted average GAAP base rent per square foot achieved on leasing activity during the six months ended June 30, 2021 was $29.51, or 0.8% higher 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 six months ended June 30, 2021, was 8.3 years compared to 8.3 years for the full year of 2020. Overall the portfolio weighted average rent per occupied square foot was $30.89 as of June 30, 2021 compared to $29.60 as of December 31, 2020.
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Dividend Update

On July 6, 2021, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended June 30, 2021 of $0.09 per share of common stock that will be paid on August 5, 2021 to stockholders of record on July 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 whose 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, inclusive of the $237 million of gross proceeds in 2021 realized to date. 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, repurchases of our stock, 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 June 30, 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

-4- 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 August 4, 2021 at 11:00 a.m. (ET) to discuss the second 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 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 those relating to 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 .

-5- 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

-6- Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Statements of Operations

(Unaudited)


	For the						For the
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands, except per share amounts)	2021		****	2020		****	2021		****	2020		****

Revenue:
Rental	$	55,722		$	60,398		$	114,345		$	122,965
Related party revenue:
Management fees and interest income from loans		417			405			827			808
Other		6			5			12			18
Total revenue		56,145			60,808			115,184			123,791

Expenses:
Real estate operating expenses		15,352			15,470			31,291			32,768
Real estate taxes and insurance		11,895			12,307			24,261			24,069
Depreciation and amortization		19,136			22,245			43,517			44,583
General and administrative		3,962			3,817			8,108			7,342
Interest		10,054			8,980			18,654			18,043
Total expenses		60,399			62,819			125,831			126,805

Loss on extinguishment of debt		(167)			—			(167)			—
Gain on sale of properties, net		20,626			—			20,626			—
Income (loss) before taxes		16,205			(2,011)			9,812			(3,014)
Tax expense		56			64			123			132
Net income (loss)	$	16,149		$	(2,075)		$	9,689		$	(3,146)

Weighted average number of shares outstanding, basic and diluted		107,359			107,287			107,344			107,278

Net income (loss) per share, basic and diluted	$	0.15		$	(0.02)		$	0.09		$	(0.03)

-7- Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)


	June 30,			December 31,
(in thousands, except share and par value amounts)	2021		****	2020
Assets:
Real estate assets:
Land	$	170,377		$	189,155
Buildings and improvements		1,731,690			1,938,629
Fixtures and equipment		11,643			12,949
		1,913,710			2,140,733
Less accumulated depreciation		500,163			538,717
Real estate assets, net		1,413,547			1,602,016
Acquired real estate leases, less accumulated amortization of $50,431 and $55,447, respectively		21,932			28,206
Cash, cash equivalents and restricted cash		24,180			4,150
Tenant rent receivables		3,116			7,656
Straight-line rent receivable		61,475			67,789
Prepaid expenses and other assets		5,405			5,752
Related party mortgage loan receivables		21,000			21,000
Office computers and furniture, net of accumulated depreciation of $1,166 and $1,443, respectively		167			163
Deferred leasing commissions, net of accumulated amortization of $24,840 and $30,411, respectively		49,793			56,452
Total assets	$	1,600,615		$	1,793,184

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	—		$	3,500
Term loans payable, less unamortized financing costs of $1,849 and $2,677, respectively		563,151			717,323
Series A & Series B Senior Notes, less unamortized financing costs of $740 and $822, respectively		199,260			199,178
Accounts payable and accrued expenses		50,799			72,058
Accrued compensation		2,309			3,918
Tenant security deposits		6,807			8,677
Lease liability		1,350			1,536
Other liabilities: derivative liabilities		9,425			17,311
Acquired unfavorable real estate leases, less accumulated amortization of $3,320 and $4,031, respectively		829			1,592
Total liabilities		833,930			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, 107,394,763 and 107,328,199 shares issued and outstanding, respectively		11			11
Additional paid-in capital		1,357,469			1,357,131
Accumulated other comprehensive loss		(9,425)			(17,311)
Accumulated distributions in excess of accumulated earnings		(581,370)			(571,740)
Total stockholders’ equity		766,685			768,091
Total liabilities and stockholders’ equity	$	1,600,615		$	1,793,184

-8- Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	For the
	Six Months Ended
	June 30,
(in thousands)	2021		****	2020
Cash flows from operating activities:
Net income (loss)	$	9,689		$	(3,146)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		44,910			46,055
Amortization of above and below market leases		(38)			(147)
Shares issued as compensation		338			337
Loss on extinguishment of debt		167			—
Gain on sale of properties, net		(20,626)			—
Decrease in allowance for doubtful accounts and write-off of accounts receivable		—			(13)
Changes in operating assets and liabilities:
Tenant rent receivables		4,540			(328)
Straight-line rents		(2,858)			(1,343)
Lease acquisition costs		(623)			(838)
Prepaid expenses and other assets		(485)			21
Accounts payable and accrued expenses		(18,520)			(10,006)
Accrued compensation		(1,609)			(1,122)
Tenant security deposits		(1,870)			(191)
Payment of deferred leasing commissions		(6,926)			(3,682)
Net cash provided by operating activities		6,089			25,597
Cash flows from investing activities:
Property improvements, fixtures and equipment		(36,957)			(43,189)
Proceeds received from sale of properties		228,717			—
Net cash provided by (used in) investing activities		191,760			(43,189)
Cash flows from financing activities:
Distributions to stockholders		(19,319)			(19,308)
Borrowings under bank note payable		66,500			60,000
Repayments of bank note payable		(70,000)			(30,000)
Repayment on term loan payable		(155,000)			—
Net cash provided by (used in) financing activities		(177,819)			10,692
Net increase (decrease) in cash, cash equivalents and restricted cash		20,030			(6,900)
Cash, cash equivalents and restricted cash, beginning of year		4,150			9,790
Cash, cash equivalents and restricted cash, end of period	$	24,180		$	2,890

-9- 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	138,940	1.7%
2022	700,637	8.4%
2023	364,384	4.4%
2024	807,949	9.7%
2025	481,670	5.8%
Thereafter (2)	5,846,037	70.0%
	8,339,617	100.0%

(1)	Percentages are determined based upon total square footage.
(2)	Includes 1,683,590 square feet of vacancies at our operating properties and 111,469 square feet of vacancies at our redevelopment property as of June 30, 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.
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(dollars & square feet in 000's)	As of June 30, 2021 (a)
	# of			% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio

Colorado	6	$	545,324	38.6%	2,625	31.5%
Texas	9		336,623	23.8%	2,420	29.0%
Georgia	2		153,949	10.9%	782	9.4%
Minnesota	3		122,575	8.7%	758	9.1%
Virginia	3		67,613	4.8%	548	6.6%
Florida	1		62,229	4.4%	213	2.5%
Illinois	2		45,645	3.2%	372	4.4%
Missouri	2		41,993	3.0%	352	4.2%
Indiana	1		29,894	2.1%	206	2.5%
North Carolina	1		7,702	0.5%	64	0.8%
Total	30	$	1,413,547	100.0%	8,340	100.0%

(a)	Includes investment in our redevelopment property. 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 E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures


						Six Months
(in thousands)	For the Three Months Ended				Ended
	31-Mar-21		30-Jun-21		30-Jun-21
Tenant improvements	$	4,491	$	4,277	$	8,768
Deferred leasing costs		2,597		1,922		4,519
Non-investment capex		5,336		3,793		9,129
	$	12,424	$	9,992	$	22,416



	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	June 30,	December 31,
	2021	2020
Operating Properties:
Number of properties	29	32
Square feet	8,228,148	9,331,489
Leased percentage	79.5%	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	30	34
Square feet	8,339,617	9,656,140
Leased percentage	78.5%	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	32	36
Square feet	8,688,162	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.

-11- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)


									First				Second
							% Leased (1)		Quarter		% Leased (1)		Quarter
							as of		Average %		as of		Average %
	Property Name	****	Location	****	Square Feet	****	31-Mar-21	****	Leased (2)	****	30-Jun-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%		91.1%		91.1%		91.1%
3	TIMBERLAKE		Chesterfield, MO		234,496		100.0%		100.0%		100.0%		100.0%
4	TIMBERLAKE EAST		Chesterfield, MO		117,036		100.0%		100.0%		100.0%		100.0%
5	NORTHWEST POINT		Elk Grove Village, IL		177,095		100.0%		100.0%		100.0%		100.0%
6	PARK TEN		Houston, TX		157,460		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		84.4%		83.8%		84.4%		84.4%
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%		79.0%		79.0%
14	380 INTERLOCKEN		Broomfield, CO		240,359		76.0%		76.0%		60.5%		60.5%
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%
	ONE OVERTON PARK		Atlanta, GA		—		95.5%		95.6%		(4)		(4)
	LOUDOUN TECH		Dulles, VA		—		98.9%		98.9%		(5)		(5)
18	4807 STONECROFT (3)		Chantilly, VA		111,469		0.0%		0.0%		0.0%		0.0%
19	121 SOUTH EIGHTH ST		Minneapolis, MN		298,121		92.0%		92.2%		91.6%		91.8%
20	801 MARQUETTE AVE		Minneapolis, MN		129,821		91.8%		91.8%		91.8%		91.8%
21	LEGACY TENNYSON CTR		Plano, TX		207,049		41.1%		60.7%		41.1%		41.1%
22	ONE LEGACY		Plano, TX		214,110		56.4%		56.4%		56.4%		56.4%
23	909 DAVIS		Evanston, IL		195,098		93.3%		93.3%		93.3%		93.3%
	ONE RAVINIA DRIVE		Atlanta, GA		—		80.8%		80.8%		(4)		(4)
	TWO RAVINIA		Atlanta, GA		—		68.6%		68.7%		(4)		(4)
24	WESTCHASE I & II		Houston, TX		629,025		52.4%		52.4%		54.4%		54.4%
25	1999 BROADWAY		Denver, CO		680,255		67.2%		72.4%		66.5%		66.5%
26	999 PEACHTREE		Atlanta, GA		621,946		84.5%		84.5%		85.0%		84.8%
27	1001 17TH STREET		Denver, CO		655,420		96.0%		96.0%		95.2%		95.5%
28	PLAZA SEVEN		Minneapolis, MN		330,096		86.7%		87.3%		85.5%		85.5%
29	PERSHING PLAZA		Atlanta, GA		160,145		98.9%		98.9%		12.4%		70.1%
30	600 17TH STREET		Denver, CO		610,730		87.5%		87.7%		84.9%		85.5%
	OWNED PORTFOLIO				8,339,617		81.0%		81.8%		78.5%		79.8%

(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.
---	---
(4)	Properties sold on May 27, 2021.
---	---
(5)	Property sold on June 29, 2021.
---	---

-12- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Largest 20 Tenants – FSP Owned Portfolio

(Unaudited & Estimated)

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

As of June 30, 2021


			% of
	Tenant	Sq Ft	Portfolio
1	Centene Management Company, LLC	317,101	3.8%
2	CITGO Petroleum Corporation	248,399	3.0%
3	Ovintiv USA Inc.	234,495	2.8%
4	Eversheds Sutherland (US) LLP	179,868	2.2%
5	EOG Resources, Inc.	169,167	2.0%
6	US Government	168,573	2.0%
7	The Vail Corporation	164,636	2.0%
8	Lennar Homes, LLC	155,808	1.9%
9	Citicorp Credit Services, Inc	146,260	1.7%
10	Kaiser Foundation Health Plan	120,979	1.4%
11	Argo Data Resource Corporation	114,200	1.4%
12	VMWare, Inc.	100,853	1.2%
13	Deluxe Corporation	98,922	1.2%
14	Ping Identity Corp.	89,856	1.1%
15	Common Grounds, LLC	76,984	0.9%
16	Somerset CPAs, P.C.	71,163	0.9%
17	ADS Alliance Data Systems, Inc.	67,274	0.8%
18	PricewaterhouseCoopers LLP	66,304	0.8%
19	DirecTV, Inc.	66,226	0.8%
20	Hall and Evans, LLC	65,878	0.8%
	Total	2,722,946	32.7%

-13- 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				Six Months Ended
	June 30,				June 30,
(In thousands, except per share amounts)	2021		2020		2021		2020
Net income (loss)	$	16,149	$	(2,075)	$	9,689	$	(3,146)
Gain on sale of properties, net		(20,626)		—		(20,626)		—
Depreciation & amortization		19,130		22,170		43,479		44,435
NAREIT FFO		14,653		20,095		32,542		41,289
Lease Acquisition costs		69		99		185		197
Funds From Operations (FFO)	$	14,722	$	20,194	$	32,727	$	41,486

Funds From Operations (FFO)	$	14,722	$	20,194	$	32,727	$	41,486
Amortization of deferred financing costs		853		726		1,560		1,474
Shares issued as compensation		338		337		338		337
Straight-line rent		(1,041)		(377)		(2,945)		(1,343)
Tenant improvements		(4,277)		(13,531)		(8,768)		(24,247)
Leasing commissions		(1,922)		(603)		(4,519)		(3,333)
Non-investment capex		(3,793)		(6,581)		(9,129)		(11,108)
Adjusted Funds From Operations (AFFO)	$	4,880	$	165	$	9,264	$	3,266

Per Share Data
EPS	$	0.15	$	(0.02)	$	0.09	$	(0.03)
FFO	$	0.14	$	0.19	$	0.30	$	0.39
AFFO	$	0.05	$	0.00	$	0.09	$	0.03

Weighted average shares (basic and diluted)		107,359		107,287		107,344		107,278

-14- 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.

-15- 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 extinguishment of debt, 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	****	30-Jun-21		****	31-Mar-21		****	(Dec)		****	Change	****
Region
East		437		$	685		$	592		$	93		15.7	%
MidWest		1,558			5,252			5,378			(126)		(2.3)	%
South		3,202			9,207			9,555			(348)		(3.6)	%
West		2,624			9,902			10,369			(467)		(4.5)	%
Property NOI* from Operating Properties		7,821			25,046			25,894			(848)		(3.3)	%
Dispositions and Redevelopment Properties (a)		519			2,954			3,867			(913)		(2.6)	%
NOI*		8,340		$	28,000		$	29,761		$	(1,761)		(5.9)	%

Sequential Same Store				$	25,046		$	25,894		$	(848)		(3.3)	%

Less Nonrecurring
Items in NOI* (b)					34			32			2		(0.0)	%

Comparative
Sequential Same Store				$	25,012		$	25,862		$	(850)		(3.3)	%

-16-


	Three Months Ended		Three Months Ended
Reconciliation to Net income	30-Jun-21		31-Mar-21
Net income (loss)	$	16,149	$	(6,460)
Add (deduct):
Loss on extinguishment of debt		167		—
Gain on sale of properties, net		(20,626)		—
Management fee income		(403)		(465)
Depreciation and amortization		19,136		24,381
Amortization of above/below market leases		(6)		(32)
General and administrative		3,962		4,146
Interest expense		10,054		8,600
Interest income		(399)		(394)
Non-property specific items, net		(34)		(15)


NOI*	$	28,000	$	29,761

(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.

Exhibit 99.2

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

Second Quarter 2021Table 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
<br><br>
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, 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. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

			Dominion Towers, Denver, CO

June 30, 2021| Page 2


	Company Information

Overview		Snapshot (as of June 30, 2021)
<br><br>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	30 (1)
			Total Square Feet	8.3 Million (1)
			Trading Symbol	FSP
			Exchange	NYSE American
			Common Shares Outstanding	107,394,763
			Quarterly Dividend	$0.09
Our Business		Dividend Yield	6.8%
As of June 30, 2021, the Company owned and operated a portfolio of real estate consisting of 29 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	$1.3 Billion (2)
			Insider Holdings	4.81%


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<br><br>Chief Operating Officer	Pershing Park Plaza, Atlanta, GA

Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com<br><br><br><br>(1) Includes both operating and redevelopment properties.<br><br>(2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt<br><br>outstanding.

June 30, 2021| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	****	30-Jun-21		****	31-Mar-21		31-Dec-20		****	30-Sep-20		****	30-Jun-20
Income Items:
Rental revenue		$	55,722		$	58,623	$	59,408		$	61,834		$	60,398
Total revenue			56,145			59,039		59,810			62,247			60,808
Net income (loss)			16,149			(6,460)		37,440			(1,679)			(2,075)
Adjusted EBITDA (a)*			24,930			26,556		26,409			29,334			29,139
FFO*			14,722			18,005		17,466			20,446			20,194
AFFO*			4,880			4,384		4,867			3,452			165

Per Share Data:
EPS		$	0.15		$	(0.06)	$	0.35		$	(0.02)		$	(0.02)
FFO*		$	0.14		$	0.17	$	0.16		$	0.19		$	0.19
AFFO*		$	0.05		$	0.04	$	0.05		$	0.03		$	0.00
Weighted Average Shares (diluted)			107,359			107,328		107,328			107,328			107,287
Closing share price		$	5.26		$	5.45	$	4.37		$	3.66		$	5.09
Dividend declared		$	0.09		$	0.09	$	0.09		$	0.09		$	0.09

Balance Sheet Items:
Real estate, net		$	1,413,547		$	1,601,613	$	1,602,016		$	1,649,649		$	1,645,898
Other assets, net			187,068			187,820		191,168			190,372			189,537
Total assets, net			1,600,615			1,789,433		1,793,184			1,840,021			1,835,435
Total liabilities, net			833,930			1,033,849		1,025,093			1,102,556			1,089,432
Shareholders' equity			766,685			755,584		768,091			737,465			746,003

Market Capitalization and Debt:
Total Market Capitalization (b)		$	1,329,896		$	1,532,439	$	1,392,524		$	1,392,821		$	1,546,301
Total debt outstanding (excluding unamortized financing costs)		$	765,000		$	947,500	$	923,500		$	1,000,000		$	1,000,000
Debt to Total Market Capitalization			57.5%			61.8%		66.3%			71.8%			64.7%
Net Debt to Adjusted EBITDA ratio (a)*			7.4			8.9		8.7			8.5			8.6

Operating Properties Leasing Statistics (c):
Operating properties assets			29			33		32			32			32
Operating properties total SF			8,228,148			9,548,810		9,331,489			9,526,822			9,508,226
Operating properties % leased			79.5%			81.9%		85.0%			85.6%			84.5%

(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.
---	---

June 30, 2021| Page 4

Condensed Consolidated Income Statements<br><br>($ 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-21		30-Jun-21		30-Jun-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Revenue:
Rental	$	58,623	$	55,722	$	114,345	$	62,567	$	60,398	$	61,834	$	59,408	$	244,207
Related party revenue:
Management fees and interest income from loans		410		417		827		403		405		400		402		1,610
Other		6		6		12		13		5		13		—		31
Total revenue		59,039		56,145		115,184		62,983		60,808		62,247		59,810		245,848

Expenses:
Real estate operating expenses		15,939		15,352		31,291		17,298		15,470		16,730		17,442		66,940
Real estate taxes and insurance		12,366		11,895		24,261		11,762		12,307		12,279		12,042		48,390
Depreciation and amortization		24,381		19,136		43,517		22,338		22,245		22,076		21,899		88,558
General and administrative		4,146		3,962		8,108		3,525		3,817		3,817		3,838		14,997
Interest		8,600		10,054		18,654		9,063		8,980		8,953		9,030		36,026
Total expenses		65,432		60,399		125,831		63,986		62,819		63,855		64,251		254,911

Loss on extinguishment of debt		—		(167)		(167)		—		—		—		—		—
Gain on sale of properties, net		—		20,626		20,626		—		—		—		41,928		41,928
Income (loss) before taxes on income		(6,393)		16,205		9,812		(1,003)		(2,011)		(1,608)		37,487		32,865
Tax expense on income		67		56		123		68		64		71		47		250

Net income (loss)	$	(6,460)	$	16,149	$	9,689	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Weighted average number of shares outstanding, basic and diluted		107,328		107,359		107,344		107,269		107,287		107,328		107,328		107,303

Net income (loss) per share, basic and diluted	$	(0.06)	$	0.15	$	0.09	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30

June 30, 2021| Page 5

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


	March 31,		June 30,		March 31,		June 30,		September 30,		December 31,
	2021		2021		2020		2020		2020		2020
Assets:
Real estate assets:
Land	$	189,155	$	170,377	$	191,578	$	191,578	$	191,578	$	189,155
Buildings and improvements		1,954,838		1,731,690		1,941,952		1,964,308		1,983,979		1,938,629
Fixtures and equipment		13,308		11,643		11,917		12,250		12,714		12,949
		2,157,301		1,913,710		2,145,447		2,168,136		2,188,271		2,140,733
Less accumulated depreciation		555,688		500,163		506,251		522,238		538,622		538,717
Real estate assets, net		1,601,613		1,413,547		1,639,196		1,645,898		1,649,649		1,602,016

Acquired real estate leases, net		25,836		21,932		37,270		34,022		31,011		28,206
Cash, cash equivalents and restricted cash		4,113		24,180		17,283		2,890		4,840		4,150
Tenant rent receivables, net		4,337		3,116		3,609		4,192		4,007		7,656
Straight-line rent receivable, net		69,743		61,475		68,317		69,062		71,033		67,789
Prepaid expenses and other assets		5,873		5,405		7,486		6,506		6,538		5,752
Related party mortgage loan receivable		21,000		21,000		21,000		21,000		21,000		21,000
Office computers and furniture, net of accumulated depreciation		147		167		215		196		178		163
Deferred leasing commissions, net		56,771		49,793		53,251		51,669		51,765		56,452
Total assets	$	1,789,433	$	1,600,615	$	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		563,151		766,124		766,493		766,863		717,323
Series A & Series B Senior Notes		199,219		199,260		199,055		199,096		199,137		199,178
Accounts payable and accrued expenses		63,456		50,799		57,076		55,712		69,905		72,058
Accrued compensation		1,390		2,309		1,335		2,278		3,634		3,918
Tenant security deposits		8,041		6,807		9,615		9,155		9,435		8,677
Lease liability		1,444		1,350		1,803		1,716		1,627		1,536
Other liabilities: derivative liabilities		13,698		9,425		23,035		22,958		20,157		17,311
Acquired unfavorable real estate leases, net		1,433		829		2,266		2,024		1,798		1,592
Total liabilities		1,033,849		833,930		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		11
Additional paid-in capital		1,357,131		1,357,469		1,356,794		1,357,131		1,357,131		1,357,131
Accumulated other comprehensive loss		(13,698)		(9,425)		(23,035)		(22,958)		(20,157)		(17,311)
Accumulated distributions in excess of accumulated earnings		(587,860)		(581,370)		(576,452)		(588,181)		(599,520)		(571,740)
Total stockholders’ equity		755,584		766,685		757,318		746,003		737,465		768,091
Total liabilities and stockholders’ equity	$	1,789,433	$	1,600,615	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

June 30, 2021| Page 6

Condensed Consolidated Statements of Cash Flows<br><br>(in thousands)


		Six Months Ended June 30,

		2021		2020
Cash flows from operating activities:
Net income (loss)	$	9,689	$	(3,146)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		44,910		46,055
Amortization of above and below market leases		(38)		(147)
Shares issued as compensation		338		337
Loss on extinguishment of debt		167		—
Gain on sale of properties, net		(20,626)		—
Decrease in allowance for doubtful accounts <br>and write-off of accounts receivable		—		(13)
Changes in operating assets and liabilities:
Tenant rent receivables		4,540		(328)
Straight-line rents		(2,858)		(1,343)
Lease acquisition costs		(623)		(838)
Prepaid expenses and other assets		(485)		21
Accounts payable and accrued expenses		(18,520)		(10,006)
Accrued compensation		(1,609)		(1,122)
Tenant security deposits		(1,870)		(191)
Payment of deferred leasing commissions		(6,926)		(3,682)
Net cash provided by operating activities		6,089		25,597

Cash flows from investing activities:
Property improvements, fixtures and equipment		(36,957)		(43,189)
Proceeds received on sale of properties		228,717		—
Net cash provided by (used in) investing activities		191,760		(43,189)

Cash flows from financing activities:
Distributions to stockholders		(19,319)		(19,308)
Borrowings under bank note payable		66,500		60,000
Repayments of bank note payable		(70,000)		(30,000)
Repayment of term loan payable		(155,000)		—
Net cash provided by (used in) financing activities		(177,819)		10,692
Net increase (decrease) in cash, cash equivalents and restricted cash		20,030		(6,900)
Cash, cash equivalents and restricted cash, beginning of period		4,150		9,790
Cash, cash equivalents and restricted cash, end of period	$	24,180	$	2,890

June 30, 2021| Page 7

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


		Rentable								Six Months									Six Months							****
		Square Feet		Three Months Ended						Ended			Three Months Ended						Ended			Inc			%	****
(in thousands)	****	or RSF	****	31-Mar-21		****	30-Jun-21		****	30-Jun-21		****	31-Mar-20		****	30-Jun-20		****	30-Jun-20		****	(Dec)		****	Change	****
Region
East		437		$	592		$	685		$	1,277		$	896		$	1,218		$	2,114		$	(837)		(39.6)	%
MidWest		1,558			5,378			5,252			10,630			5,485			5,089			10,574			56		0.5	%
South		3,202			9,555			9,207			18,762			10,312			9,975			20,287			(1,525)		(7.5)	%
West		2,624			10,369			9,902			20,271			11,463			11,211			22,674			(2,403)		(10.6)	%
Property NOI* from Operating Properties		7,821			25,894			25,046			50,940			28,156			27,493			55,649			(4,709)		(8.5)	%
Dispositions and Redevelopment Properties (a)		519			3,867			2,954			6,821			4,718			4,703			9,421			(2,600)		(2.7)	%
Property NOI*		8,340		$	29,761		$	28,000		$	57,761		$	32,874		$	32,196		$	65,070		$	(7,309)		(11.2)	%

Same Store				$	25,894		$	25,046		$	50,940		$	28,156		$	27,493		$	55,649		$	(4,709)		(8.5)	%

Less Nonrecurring
Items in NOI* (b)					32			34			66			26			810			836			(770)		1.3	%

Comparative
Same Store				$	25,862		$	25,012		$	50,874		$	28,130		$	26,683		$	54,813		$	(3,939)		(7.2)	%

(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.

June 30, 2021| Page 8

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


					Six Months										Year
	Three Months Ended				Ended		Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Jun-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	16,149	$	9,689	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Gain on sale of properties, net		—		(20,626)		(20,626)		—		—		—		(41,928)		(41,928)
Depreciation & amortization		24,349		19,130		43,479		22,265		22,170		21,989		21,820		88,244
NAREIT FFO*		17,889		14,653		32,542		21,194		20,095		20,310		17,332		78,931
Lease Acquisition costs		116		69		185		98		99		136		134		467
Funds From Operations (FFO)*	$	18,005	$	14,722	$	32,727	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	18,005	$	14,722	$	32,727	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398
Amortization of deferred financing costs		707		853		1,560		748		726		727		824		3,025
Shares issued as compensation		—		338		338		—		337		—		—		337
Straight-line rent		(1,904)		(1,041)		(2,945)		(966)		(377)		(1,293)		951		(1,685)
Tenant improvements		(4,491)		(4,277)		(8,768)		(10,716)		(13,531)		(8,022)		(837)		(33,106)
Leasing commissions		(2,597)		(1,922)		(4,519)		(2,730)		(603)		(2,033)		(7,432)		(12,798)
Non-investment capex		(5,336)		(3,793)		(9,129)		(4,527)		(6,581)		(6,373)		(6,105)		(23,586)
Adjusted Funds From Operations (AFFO)*	$	4,384	$	4,880	$	9,264	$	3,101	$	165	$	3,452	$	4,867	$	11,585

Per Share Data:
EPS	$	(0.06)	$	0.15	$	0.09	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30
FFO*		0.17		0.14		0.30		0.20		0.19		0.19		0.16		0.74
AFFO*		0.04		0.05		0.09		0.03		0.00		0.03		0.05		0.11

Weighted Average Shares (basic and diluted)		107,328		107,359		107,344		107,269		107,287		107,328		107,328		107,303

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

June 30, 2021| Page 9

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


					Six Months											Year
	Three Months Ended				Ended			Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Jun-21		****	31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	16,149	$	9,689		$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Interest expense		8,600		10,054		18,654			9,063		8,980		8,953		9,030		36,026
Depreciation and amortization		24,349		19,130		43,479			22,265		22,170		21,989		21,820		88,244
Income taxes		67		56		123			68		64		71		47		250
EBITDA (1)*	$	26,556	$	45,389	$	71,945		$	30,325	$	29,139	$	29,334	$	68,337	$	157,135
Loss on extinguishment of debt		—		167		167			—		—		—		—		—
Gain on sale of properties, net		—		(20,626)		(20,626)			—		—		—		(41,928)		(41,928)
Adjusted EBITDA (1)*	$	26,556	$	24,930	$	51,486		$	30,325	$	29,139	$	29,334	$	26,409	$	115,207

Interest expense	$	8,600	$	10,054	$	18,654		$	9,063	$	8,980	$	8,953	$	9,030	$	36,026
Scheduled principal payments		—		—		—			—		—		—		—		—
Interest and scheduled principal payments	$	8,600	$	10,054	$	18,654		$	9,063	$	8,980	$	8,953	$	9,030	$	36,026

Interest coverage ratio (1)		3.09		2.48		2.76			3.35		3.24		3.28		2.92		3.20

Debt service coverage ratio (1)		3.09		2.48		2.76			3.35		3.24		3.28		2.92		3.20

Debt excluding unamortized financing costs	$	947,500	$	765,000				$	1,000,000	$	1,000,000	$	1,000,000	$	923,500
Cash, cash equivalents and restricted cash		4,113		24,180					17,283		2,890		4,840		4,150
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	943,387	$	740,820				$	982,717	$	997,110	$	995,160	$	919,350

Adjusted EBITDA (1)*	$	26,556	$	24,930				$	30,325	$	29,139	$	29,334	$	26,409
Annualized	$	106,224	$	99,720				$	121,300	$	116,556	$	117,336	$	105,636

Net Debt-to-Adjusted EBITDA ratio (1)*		8.9		7.4					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.

June 30, 2021| Page 10

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


					Six Months										Year
	Three Months Ended				Ended		Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Jun-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Net income (loss)	$	(6,460)	$	16,149	$	9,689	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Add (deduct):
Loss on extinguishment of debt		—		167		167		—		—		—		—		—
Gain on sale of properties, net		—		(20,626)		(20,626)		—		—		—		(41,928)		(41,928)
Management fee income		(465)		(403)		(868)		(478)		(446)		(484)		(464)		(1,872)
Depreciation and amortization		24,381		19,136		43,517		22,338		22,245		22,076		21,899		88,558
Amortization of above/below market leases		(32)		(6)		(38)		(73)		(75)		(86)		(79)		(313)
General and administrative		4,146		3,962		8,108		3,525		3,817		3,817		3,838		14,997
Interest expense		8,600		10,054		18,654		9,063		8,980		8,953		9,030		36,026
Interest income		(394)		(399)		(793)		(382)		(381)		(386)		(391)		(1,540)
Non-property specific items, net		(15)		(34)		(49)		(48)		131		(14)		35		104
Property NOI*	$	29,761	$	28,000	$	57,761	$	32,874	$	32,196	$	32,197	$	29,380	$	126,647

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

June 30, 2021| Page 11

Debt Summary<br><br>(in thousands)


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		30-Jun-21		Components			30-Jun-21	Fee

BAML Revolver	12-Jan-22	$	600,000	$	—	Libor	+	1.55%	1.65%	0.30%
BAML Term Loan	12-Jan-23		400,000		400,000	1.12%	+	1.75%	2.87%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.39%	+	1.65%	4.04%
Series A Senior Notes	20-Dec-24		116,000		116,000				4.49%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.76%

		$	1,365,000	$	765,000				3.58%

●	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 30 basis point facility fee based on our credit rating and, when applied to our availability of $600 million at June 30, 2021, would be $1.8 million annually as of June 30, 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 $2.5 million.
---	---
●	On June 4, 2021, we repaid the JPM Term Loan, which had $100 million outstanding, the BMO Term Loan Tranche A, which had $55 million outstanding and repaid the drawn balance of our BAML Revolver , which had $47.5 million outstanding.
---	---

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

June 30, 2021| Page 12

	<br><br>
	Capital Analysis<br><br>(in thousands, except per share amounts)


		31-Mar-21			30-Jun-21				31-Mar-20			30-Jun-20			30-Sep-20			31-Dec-20
Market Data:	****			****			****	****			****			****			****			****
Shares Outstanding			107,328			107,395				107,269			107,328			107,328			107,328
Closing market price per share		$	5.45		$	5.26			$	5.73		$	5.09		$	3.66		$	4.37
Market capitalization		$	584,939		$	564,896			$	614,653		$	546,301		$	392,821		$	469,024
Total debt outstanding excluding unamortized financing costs			947,500			765,000				1,000,000			1,000,000			1,000,000			923,500
Total Market Capitalization		$	1,532,439		$	1,329,896			$	1,614,653		$	1,546,301		$	1,392,821		$	1,392,524

Dividend Data:
Total dividends declared for the quarter		$	9,660		$	9,659			$	9,654		$	9,654		$	9,660		$	9,660
Common dividend declared per share		$	0.09		$	0.09			$	0.09		$	0.09		$	0.09		$	0.09
Declared dividend as a % of Net income (loss) per share			(150)%			60%				(901)%			(465)%			(575)%			26%
Declared dividend as a % of AFFO* per share			220%			198%				311%			5852%			280%			198%

Liquidity:
Cash, cash equivalents and restricted cash		$	4,113		$	24,180			$	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			600,000
Less:
Outstanding balance			(27,500)			—				(30,000)			(30,000)			(30,000)			(3,500)
Total Liquidity		$	576,613		$	624,180			$	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.

June 30, 2021| Page 13

	<br><br>
	Owned Portfolio Overview


		As of the Quarter Ended
	****	30-Jun-21	31-Mar-21	31-Dec-20	30-Sep-20	30-Jun-20	****
Operating Properties:
Number of properties		29	33	32	32	32
Square feet		8,228,148	9,548,810	9,331,489	9,526,822	9,508,226
Leased percentage		79.5%	81.9%	85.0%	85.6%	84.5%

Redevelopment Properties (a):
Number of properties		1	1	2	3	3
Square feet		111,469	111,469	324,651	388,849	405,215
Leased percentage		0.0%	0.0%	48.0%	53.0%	55.8%

Total Owned Properties:
Number of properties		30	34	34	35	35
Square feet		8,339,617	9,660,279	9,656,140	9,915,671	9,913,441
Leased percentage		78.5%	81.0%	83.8%	84.3%	83.3%

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		32	36	36	37	37
Square feet		8,688,162	10,008,824	10,004,685	10,264,216	10,261,986

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

June 30, 2021| Page 14

	<br><br>
	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%		$	25.80	Northwest Point		Elk Grove Village		IL		177,095		100.0%		100.0%		$	30.07
Stonecroft (c)		Chantilly		VA		111,469		0.0%		0.0%		$	—	909 Davis Street		Evanston		IL		195,098		93.3%		93.3%		$	40.31

Richmond, VA														Indianapolis
Innsbrook		Glen Allen		VA		298,183		57.2%		57.2%		$	18.65	River Crossing		Indianapolis		IN		205,729		100.0%		99.8%		$	24.57

Charlotte, NC														St. Louis
Forest Park		Charlotte		NC		64,198		78.4%		34.5%		$	27.31	Timberlake		Chesterfield		MO		234,496		100.0%		95.7%		$	30.42
														Timberlake East		Chesterfield		MO		117,036		100.0%		83.6%		$	27.01

														Minneapolis
														121 South 8th Street		Minneapolis		MN		298,121		91.6%		83.2%		$	23.12
														801 Marquette Ave		Minneapolis		MN		129,821		91.8%		37.0%		$	34.37
														Plaza Seven		Minneapolis		MN		330,096		85.5%		85.6%		$	33.20

East Region Total						612,387		56.7%		47.4%		$	21.71	Midwest Region Total						1,687,492		94.3%		86.8%		$	29.99

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

June 30, 2021| Page 15

	<br><br>
	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%		50.9%		$	21.54	380 Interlocken		Broomfield		CO		240,359		60.5%		66.8%		$	33.33
One Legacy Circle		Plano		TX		214,110		56.4%		56.4%		$	39.30	1999 Broadway		Denver		CO		680,255		66.5%		68.6%		$	33.51
Addison Circle		Addison		TX		289,325		83.7%		83.7%		$	32.67	Greenwood Plaza		Englewood		CO		196,236		100.0%		100.0%		$	24.93
Collins Crossing		Richardson		TX		300,887		84.4%		83.5%		$	27.48	390 Interlocken		Broomfield		CO		241,512		99.4%		99.4%		$	33.09
Liberty Plaza		Addison		TX		216,952		79.0%		73.5%		$	22.91	1001 17th Street		Denver		CO		655,420		95.2%		95.6%		$	36.80
														600 17th Street		Denver		CO		610,730		84.9%		85.5%		$	32.67
Houston														West Region Total						2,624,512		82.9%		84.3%		$	33.42
Park Ten		Houston		TX		157,460		71.7%		71.7%		$	30.90
Eldridge Green		Houston		TX		248,399		100.0%		100.0%		$	28.24	Total Owned Properties						8,339,617		78.5%		77.6%		$	30.89
Park Ten Phase II		Houston		TX		156,746		95.0%		95.0%		$	29.25
Westchase I & II		Houston		TX		629,025		54.4%		52.3%		$	28.48

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive		Miami		FL		213,182		73.1%		60.9%		$	26.22

Atlanta
Pershing Plaza		Atlanta		GA		160,145		12.4%		84.5%		$	33.72
999 Peachtree		Atlanta		GA		621,946		85.0%		84.3%		$	34.61
South Region Total						3,415,226		71.2%		73.4%		$	30.24

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

June 30, 2021| Page 16

	<br><br>
	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						8,688,162

June 30, 2021| Page 17

	<br><br>
	Tenants by Industry<br><br>(By Square Feet)<br><br>

June 30, 2021| Page 18

	<br><br>
	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		108, 108, 108		317,101		3.8%		$	5,584,634		2.8%
2	CITGO Petroleum Corporation		1		141		248,399		3.0%			2,923,656		1.5%
3	Ovintiv USA Inc. (c)		1		8		234,495		2.8%			10,042,951		5.1%
4	Eversheds Sutherland (US) LLP		1		58		179,868		2.2%			6,254,543		3.2%
5	EOG Resources, Inc.		1		66		169,167		2.0%			6,196,587		3.1%
6	US Government (d)		2		55, 115		168,573		2.0%			6,316,007		3.2%
7	The Vail Corporation		1		105		164,636		2.0%			5,681,289		2.9%
8	Lennar Homes, LLC		1		189		155,808		1.9%			4,128,912		2.1%
9	Citicorp Credit Services, Inc		1		74		146,260		1.7%			4,766,613		2.4%
10	Kaiser Foundation Health Plan		1		35		120,979		1.4%			3,727,645		1.9%
11	Argo Data Resource Corporation (e)		1		27, 110		114,200		1.4%			3,256,984		1.7%
12	VMWare, Inc.		1		59		100,853		1.2%			3,456,232		1.7%
13	Deluxe Corporation (f)		1		193		98,922		1.2%			—		0.0%
14	Ping Identity Corp.		1		60		89,856		1.1%			3,529,544		1.8%
15	Common Grounds, LLC (g)		2		120, 135		76,984		0.9%			3,079,379		1.6%
16	Somerset CPAs, P.C. (h)		1		12, 136		71,163		0.9%			1,754,286		0.9%
17	ADS Alliance Data Systems, Inc.		1		60		67,274		0.8%			2,669,272		1.4%
18	PricewaterhouseCoopers LLP		1		91		66,304		0.8%			2,391,616		1.2%
19	DirecTV, Inc.		1		7		66,226		0.8%			2,040,423		1.0%
20	Hall and Evans, LLC		1		86		65,878		0.8%			2,465,504		1.2%

					Total		2,722,946		32.7%		$	80,266,077		40.7%

Footnotes on next page

June 30, 2021| Page 19

	<br><br>
	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 June 30, 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.

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

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

(f) Lease commenced on July 1, 2021 and rent commences on July 31, 2022.

(g) Includes 27,478 square feet expiring in 2031. The remaining 49,506 square feet expire in 2032.

(h) Includes 707 square feet expring in 2022 and 70,456 square feet expiring in 2032.

June 30, 2021| Page 20

	<br><br>
	Leasing Activity<br><br>(Owned Portfolio)


					Year		Year
	Six Months Ended				Ended		Ended
Leasing Activity (a)		30-Jun-21		30-Jun-20		31-Dec-20		31-Dec-19
(in Square Feet - SF)
New leasing		98,000		166,000		368,000		534,000
Renewals and expansions		465,000		158,000		762,000		883,000
		563,000		324,000		1,130,000		1,417,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	29.51	$	31.28	$	28.47	$	31.78
Weighted average lease term		8.3 Years		6.1 Years		8.3 Years		8.3 Years

Increase or decrease over average GAAP rents in prior year (b)		0.8%		10.3%		7.7%		10.9%

Average free rent		8 Months		4 Months		5 Months		3 Months
Tenant Improvements	$	16.62	$	22.91	$	34.07	$	34.44
Leasing Costs	$	10.03	$	7.85	$	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.

June 30, 2021| Page 21

	<br><br>
	Lease Expirations by Square Feet (a)<br><br>(Owned Portfolio)

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

June 30, 2021| Page 22

	<br><br>
	Lease Expirations with Annualized Rent per Square Foot<br><br>(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	23	(c)	138,940		$	4,476,736	$	32.22	2.3%	2.3%
2022	63		700,637			26,054,041		37.19	13.2%	15.5%
2023	55		364,384			12,325,011		33.82	6.2%	21.7%
2024	57		807,949			25,239,602		31.24	12.8%	34.5%
2025	45		481,670			15,532,032		32.25	7.9%	42.4%
2026	38		764,039			25,341,738		33.17	12.8%	55.2%
2027	23		742,616			22,600,302		30.43	11.5%	66.7%
2028	22		386,719			9,582,253		24.78	4.9%	71.6%
2029	10		313,971			10,209,035		32.52	5.1%	76.7%
2030	9		735,881			19,296,851		26.22	9.8%	86.5%
2031 and thereafter	57		1,107,752	(d)		26,678,361		24.08	13.5%	100.0%
Leased total	402		6,544,558		$	197,335,962	$	30.15	100.0%
Vacancies as of 6/30/21			1,683,590
Redevelopment properties (e)			111,469
Total Portfolio Square Footage			8,339,617

(a)	The number of leases approximates the number of tenants. Tenants with lease maturities in different years are included in annual totals for each lease. Tenants may have multiple leases in the same year. Includes annualized rent from redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.
(b)	Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at June 30, 2021 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.
---	---
(c)	Includes 4 leases that are month-to-month.
---	---
(d)	Includes 92,031 square feet that are non-revenue producing building amenities.
---	---
(e)	Redevelopment properties include properties being developed, redeveloped, or where redevelopment is complete, but are in lease-up and that are not stabilized.
---	---

June 30, 2021| Page 23

	<br><br>
	Redevelopment Activity<br><br>


(in 000's except square feet)																		Estimated		Estimated
											Incurred			Percent		Estimated		Leased		Occupied
						Rentable		Anticipated			Through			Leased		Completion		Stabilization		Stabilization
Property Name	****	City	****	State	****	Square Feet	****	Investment (1)		****	30-Jun-21		****	30-Jun-21	****	Date	****	Date	****	Date

Redevelopment in Process
Stonecroft		Chantilly		VA		111,469		$	4,455		$	3,004		0.0%		August-21		January-22		December-22
Total Office in Process						111,469		$	4,455		$	3,004

Anticipated Investment includes capitalized redevelopment costs and capitalized interest, but excludes lease-up costs.

(1)

On July 9, 2021, we entered into a Purchase and Sale Agreement with a third-party buyer for the disposition of Stonecroft and our other office property located in Chantilly, Virginia for a purchase price of approximately $40 million. Assuming satisfaction of certain customary conditions to close, including successful completion by the buyer of a due diligence inspection period, the closing of the sale of the properties is expected to take place on or about September 9, 2021. However, if the sale of Stonecroft does not occur, we expect to incur additional lease-up and stabilization costs prior to the property becoming an operating property.

June 30, 2021| Page 24

	<br><br>
	Capital Expenditures


(in thousands)					Six Months
	For the Three Months Ended				Ended
	31-Mar-21		30-Jun-21		30-Jun-21

Tenant improvements	$	4,491	$	4,277	$	8,768
Deferred leasing costs		2,597		1,922		4,519
Non-investment capex		5,336		3,793		9,129
Total Capital Expenditures	$	12,424	$	9,992	$	22,416


	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 $18.8 million for six months ended June 30, 2021 and $19.7 million for the year ended December 31, 2020.

June 30, 2021| Page 25

	<br><br>
	Transaction Activity<br><br>(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


Recent Dispositions:										Gross Sale			Gain (loss)
	****	City	****	State	****	Square Feet	****	Date Sold	****	Proceeds		****	on Sale		****
2021
One Ravinia		Atlanta		GA		386,602		5/27/21		$	74,879		$	29,075
Two Ravinia		Atlanta		GA		411,047		5/27/21			71,771			35
One Overton Park		Atlanta		GA		387,267		5/27/21			72,850			(6,336)
Loudoun Tech Center		Dulles		VA		136,658		6/29/21			17,250			(2,148)

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)

June 30, 2021| Page 26

	<br><br>
	Loan Portfolio of Secured Real Estate<br><br>(in thousands)


(dollars in thousands, except footnotes)			Maximum		Amount		Interest
		Maturity	Amount		Outstanding		Rate at
Sponsored REIT	Location	Date	of Loan		30-Jun-21		30-Jun-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.

June 30, 2021| Page 27

	<br><br>
	Net Asset Value Components


(in thousands except per share data)
	As **** of		Assets:			Other information:
	30-Jun-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)		216
Shares outstanding		107,394.8	Straight-line rent receivable		61,475
Closing price	$	5.26	Asset held for sale		—	Straight-line rental revenue current quarter	$	1,041
Market capitalization	$	564,896	Cash, cash equivalents and restricted cash		24,180
Debt		765,000	Tenant rent receivables		3,116	Management fee income current quarter	$	19
Total Market Capitalization	$	1,329,896	Prepaid expenses		3,436	Interest income from secured loans		398
			Office computers and furniture		167	Management fees and interest income from loans	$	417
			Other assets:
	3 Months		Deferred financing costs, net		3,287
	Ended		Other assets: Derivative Market Value		—
NOI Components	30-Jun-21		Other assets - Right-to-Use Asset		1,271
				$	117,932
Same Store NOI (1)	$	25,046
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		25,046	Debt (excluding contra for unamortized financing costs)	$	765,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		53,108	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	25,046	Tenant security deposits		6,807
			Other liabilities: lease liability		1,350	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		9,425
Financial Statement Reconciliation:				$	835,690	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	55,722
Rental operating expenses		(15,352)				(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		(11,895)
NOI from dispositions & redevelopment properties		(2,954)				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(56)
Management & other fees (5)		(419)
Property NOI (1)	$	25,046

June 30, 2021| Page 28

	<br><br>
	Appendix: Non-GAAP Financial Measure Definitions

Definition of Funds From Operations (“FFO”)

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.

June 30, 2021| Page 29

	<br><br>
	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 or losses on extinguishment of debt, 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 extinguishment of debt, 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.

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	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.

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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

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