8-K - FSP - Equibles

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

FORM 8-K

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

Date of Report (Date of earliest event reported): February 14, 2023


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 February 14, 2023, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three and twelve months ended December 31, 2022. 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 February 14, 2023.

99.2		Supplemental Operating and Financial Data for the Fourth Quarter of 2022.

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: February 14, 2023	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

Fourth Quarter and Full Year 2022 Results

Wakefield, MA—February 14, 2023—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American: FSP), a real estate investment trust (REIT), announced its results for the fourth quarter and the year ended December 31, 2022.

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

“As the first quarter of 2023 begins, we continue to believe that the current price of our common stock does not accurately reflect the value of our underlying real estate assets. We will seek to increase shareholder value by (1) pursuing the sale of select properties where we believe that short to intermediate term valuation potential has been reached and (2) striving to lease vacant space. We intend to use proceeds from property dispositions primarily for debt reduction.

We look forward to 2023 and beyond with anticipation and optimism.”

Financial Highlights

●	GAAP net loss was $2.9 million or $0.03 per basic and diluted share for the three months ended December 31, 2022 and GAAP net income was $1.1 million or $0.01 per basic and diluted share, for the year ended December 31, 2022.
●	Funds From Operations (FFO) was $10.5 million and $41.3 million, or $0.10 and $0.40 per basic and diluted share, for the three and twelve months ended December 31, 2022, respectively.
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●	Adjusted Funds From Operations (AFFO) was a loss of $0.08 and $0.21 per basic and diluted share for the three and twelve months ended December 31, 2022, respectively.
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●	During the three and twelve months ended December 31, 2022, we repaid approximately $27 million and $137 million of debt, respectively, including $110 million on September 6, 2022 as repayment in full of a former term loan.
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●	Subsequent to quarter end, on February 10, 2023, we entered into an amendment to the credit agreement evidencing our $165 million term loan. On February 10, 2023, as part of the amendment to credit agreement, we repaid a $40 million portion of this term loan, so that $125 million remains outstanding. In addition, on or before April 1, 2024, we are required to repay an additional $25 million of the term loan. The amendment, among other items, extended the maturity date from January 31, 2024 to October 1, 2024, changed the interest rate from a number of basis points over LIBOR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.
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●	Subsequent to quarter end, on February 10, 2023, we entered into an amendment to our revolving line of credit agreement. The amendment, among other items, extended the maturity date from January 12, 2024 to October 1, 2024, reduced availability from $237.5 million to $150 million, with further reductions to $125 million effective October 1, 2023 and to $100 million effective April 1, 2024, changed the interest rate from a number of basis points over SOFR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.
---	---

Leasing Highlights

●	During the year ended December 31, 2022, we leased approximately 435,000 square feet, including 275,000 square feet of new leases.

-2-

●	Our directly owned real estate portfolio of 21 owned properties, totaling approximately 6.2 million square feet, was approximately 75.6% leased as of December 31, 2022, compared to approximately 78.4% leased as of December 31, 2021. The decrease in the leased percentage is primarily a result of lease expirations during the year ended December 31, 2022 and property dispositions.
●	The weighted average GAAP base rent per square foot achieved on leasing activity during the year ended December 31, 2022 was $33.27, or 10.6% higher than average rents in the respective properties as applicable compared to the year ended December 31, 2021. The average lease term on leases signed during the year ended December 31, 2022 was 6.4 years compared to 7.7 years during the year ended December 31, 2021. Overall the portfolio weighted average rent per occupied square foot was $30.48 as of December 31, 2022 compared to $30.60 as of December 31, 2021.
---	---
●	Subsequent to quarter end, we are currently tracking approximately 500,000 square feet of new prospective tenants, including approximately 300,000 square feet of prospective tenants that have identified FSP assets on their respective short lists of potential locations.
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●	We believe that our continuing portfolio of real estate is well located, primarily in the Sunbelt and Mountain West geographic regions, and consists of high-quality assets with upside leasing potential in a post-COVID-19 environment.
---	---

Investment Highlights

●	On December 28, 2022, FSP completed the sale of 909 Davis in Evanston, Illinois for approximately $27.8 million in gross proceeds and recorded a gain of approximately $3.9 million.
●	During 2022, we closed on dispositions that resulted in approximately $130.3 million total aggregate gross proceeds and we repaid approximately $137 million in debt.
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●	We remain committed to selling select properties during 2023 and using proceeds primarily for debt reduction.
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●	At this time, due primarily to economic conditions and uncertainty surrounding the timing and amount of proceeds received from property dispositions, we are suspending property disposition guidance.
---	---
●	We will continue to provide quarterly updates on any disposition activity.
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Stock Repurchases

●	During the first quarter of 2022, we repurchased approximately 847,000 shares of our common stock for an aggregate purchase price of approximately $4.8 million. We did not repurchase any shares of our common stock during the remainder of 2022.
●	Subsequent to quarter end, on February 10, 2023, we disclosed in a Current Report on Form 8-K that our Board of Directors discontinued its previous authorization to repurchase up to $50 million of our common stock from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. We intend to use proceeds from property dispositions primarily for debt reduction.
---	---

●

During the first quarter of 2022, we repurchased approximately 847,000 shares of our common stock for an aggregate purchase price of approximately $4.8 million. We did not repurchase any shares of our common stock during the remainder of 2022.

●

Subsequent to quarter end, on February 10, 2023, we disclosed in a Current Report on Form 8-K that our Board of Directors discontinued its previous authorization to repurchase up to $50 million of our common stock from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. We intend to use proceeds from property dispositions primarily for debt reduction.

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Dividends

●	On January 13, 2023, we announced that our Board of Directors declared a quarterly cash dividend for the three months ended December 31, 2022 of $0.01 per share of common stock that will be paid on February 16, 2023 to stockholders of record on January 27, 2023.

-3- 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.

2023 Net Income, FFO and Disposition Guidance

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

Real Estate Update

Supplementary schedules provide property information for the Company’s owned and managed real estate portfolio as of December 31, 2022. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com.

Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

Earnings Call

A conference call is scheduled for February 15, 2023 at 11:00 a.m. (ET) to discuss the fourth quarter 2022 results. To access the call, please dial 1-844-200-6205 and use access code 758069. Internationally, the call may be accessed by dialing 1-929-526-1599 and using access code 758069. 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.

-4- 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, the payment of dividends 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, inflation rates, 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, 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, increases in the level of general and administrative costs as a percentage of revenues as revenues decrease as a result of property dispositions, 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, 2022, which may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.

Franklin Street Properties Corp.

Earnings Release

Supplementary Information

Table of Contents



Franklin Street Properties Corp. Financial Results	A-C
Real Estate Portfolio Summary Information	D
Portfolio and Other Supplementary Information	E
Percentage of Leased Space	F
Largest 20 Tenants – FSP Owned Portfolio	G
Reconciliation and Definitions of Funds From Operations (FFO) and Adjusted
Funds From Operations (AFFO)	H
Reconciliation and Definition of Sequential Same Store results to Property Net
Operating Income (NOI) and Net Loss	I

-5- Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Statements of Operations

(Unaudited)


	For the						For the
	Three Months Ended						Year Ended
	December 31,						December 31,
(in thousands, except per share amounts)	2022		****	2021		****	2022		****	2021		****

Revenue:
Rental	$	40,745		$	42,910		$	163,739		$	207,581
Related party revenue:
Management fees and interest income from loans		462			454			1,855			1,700
Other		4			8			21			77
Total revenue		41,211			43,372			165,615			209,358

Expenses:
Real estate operating expenses		14,273			15,217			52,820			60,881
Real estate taxes and insurance		7,907			6,600			34,620			41,061
Depreciation and amortization		14,804			16,165			63,808			78,544
General and administrative		2,888			4,041			13,885			15,898
Interest		5,668			5,691			22,808			32,273
Total expenses		45,540			47,714			187,941			228,657

Loss on extinguishment of debt		—			(498)			(78)			(901)
Impairment and loan loss reserve		(2,380)			—			(4,237)			—
Gain on sale of properties, net		3,862			83,876			27,939			113,134
Income (loss) before taxes and equity in income of non-consolidated REITs		(2,847)			79,036			1,298			92,934
Tax expense		37			464			204			638
Equity in income of non-consolidated REITs		—			—			—			421
Net income (loss)	$	(2,884)		$	78,572		$	1,094		$	92,717

Weighted average number of shares outstanding, basic and diluted		103,236			105,098			103,338			106,667

Net income (loss) per share, basic and diluted	$	(0.03)		$	0.75		$	0.01		$	0.87

-6- Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)


	December 31,			December 31,
(in thousands, except share and par value amounts)	2022		****	2021
Assets:
Real estate assets:
Land	$	126,645		$	146,844
Buildings and improvements		1,388,869			1,457,209
Fixtures and equipment		11,151			11,404
		1,526,665			1,615,457
Less accumulated depreciation		423,417			424,487
Real estate assets, net		1,103,248			1,190,970
Acquired real estate leases, less accumulated amortization of $20,243 and $40,423, respectively		10,186			14,934
Cash, cash equivalents and restricted cash		6,632			40,751
Tenant rent receivables		2,201			1,954
Straight-line rent receivable		52,739			49,024
Prepaid expenses and other assets		6,676			4,031
Related party mortgage loan receivable, less allowance for credit loss of $4,237 and $0, respectively		19,763			24,000
Other assets: derivative asset		4,358			—
Office computers and furniture, net of accumulated depreciation of $1,115 and $1,198, respectively		154			198
Deferred leasing commissions, net of accumulated amortization of $19,043 and $21,099, respectively		35,709			38,311
Total assets	$	1,241,666		$	1,364,173

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	48,000		$	—
Term loans payable, less unamortized financing costs of $250 and $714, respectively		164,750			274,286
Series A & Series B Senior Notes, less unamortized financing costs of $494 and $658, respectively		199,506			199,342
Accounts payable and accrued expenses		50,366			89,493
Accrued compensation		3,644			4,704
Tenant security deposits		5,710			6,219
Lease liability		759			1,159
Other liabilities: derivative liabilities		—			5,239
Acquired unfavorable real estate leases, less accumulated amortization of $574 and $2,285, respectively		195			528
Total liabilities		472,930			580,970

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, 103,235,914 and 103,998,520 shares issued and outstanding, respectively		10			10
Additional paid-in capital		1,334,776			1,339,226
Accumulated other comprehensive income (loss)		4,358			(5,239)
Accumulated distributions in excess of accumulated earnings		(570,408)			(550,794)
Total stockholders’ equity		768,736			783,203
Total liabilities and stockholders’ equity	$	1,241,666		$	1,364,173

-7- Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	For the
	Year Ended
	December 31,
(in thousands)	2022		****	2021
Cash flows from operating activities:
Net income	$	1,094		$	92,717
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		65,697			81,041
Amortization of above and below market leases		(118)			(34)
Shares issued as compensation		394			338
Equity in income of non-consolidated REITs		—			(421)
Distributions from non-consolidated REITs		—			421
Loss on extinguishment of debt		78			901
Impairment and loan loss reserve		4,237			—
Gain on sale of properties, net		(27,939)			(113,134)
Changes in operating assets and liabilities:
Tenant rent receivables		(247)			5,702
Straight-line rents		(5,895)			(3,930)
Lease acquisition costs		(4,494)			(2,353)
Prepaid expenses and other assets		(1,805)			82
Accounts payable and accrued expenses		(5,983)			(11,096)
Accrued compensation		(1,060)			786
Tenant security deposits		(509)			(2,458)
Payment of deferred leasing commissions		(8,216)			(12,200)
Net cash provided by operating activities		15,234			36,362
Cash flows from investing activities:
Property improvements, fixtures and equipment		(54,910)			(64,833)
Investment in related party mortgage loan receivable		—			(3,000)
Proceeds received from sales of properties		128,949			573,307
Net cash provided by investing activities		74,039			505,474
Cash flows from financing activities:
Distributions to stockholders		(53,988)			(38,491)
Stock repurchases		(4,843)			(18,244)
Borrowings under bank note payable		90,000			91,500
Repayments of bank note payable		(42,000)			(95,000)
Repayments of Term Loans		(110,000)			(445,000)
Deferred financing costs		(2,561)			—
Net cash used in financing activities		(123,392)			(505,235)
Net increase (decrease) in cash, cash equivalents and restricted cash		(34,119)			36,601
Cash, cash equivalents and restricted cash, beginning of year		40,751			4,150
Cash, cash equivalents and restricted cash, end of period	$	6,632		$	40,751

-8- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule D

Real Estate Portfolio Summary Information

(Unaudited & Approximated)


Commercial portfolio lease expirations (1)
	Total	% of
Year	Square Feet	Portfolio
2023	398,204	6.4%
2024	862,393	13.8%
2025	429,146	6.9%
2026	612,913	9.8%
2027	307,689	4.9%
Thereafter (2)	3,629,185	58.2%
	6,239,530	100.0%

(1)	Percentages are determined based upon total square footage.
(2)	Includes 1,523,988 square feet of vacancies at our operating properties as of December 31, 2022.
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(dollars & square feet in 000's)	As of December 31, 2022
				% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio

Colorado	4	$	461,804	41.9%	2,146	34.4%
Texas	9		332,441	30.1%	2,423	38.8%
Georgia	1		53,370	4.8%	160	2.6%
Minnesota	3		122,016	11.1%	758	12.2%
Virginia	1		32,318	2.9%	298	4.8%
Florida	1		70,933	6.4%	213	3.4%
Illinois	1		21,707	2.0%	177	2.8%
North Carolina	1		8,659	0.8%	65	1.0%
Total	21	$	1,103,248	100.0%	6,240	100.0%

-9- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures


										Year
(in thousands)	For the Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22
Tenant improvements	$	1,877	$	5,453	$	6,813	$	7,508	$	21,651
Deferred leasing costs		3,032		1,327		2,053		1,152		7,564
Non-investment capex		5,065		6,736		9,289		9,074		30,164
	$	9,974	$	13,516	$	18,155	$	17,734	$	59,379



	For the Three Months Ended								Year Ended
	31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21
Tenant improvements	$	4,491	$	4,277	$	3,952	$	1,881	$	14,601
Deferred leasing costs		2,597		1,922		2,371		1,319		8,209
Non-investment capex		5,336		3,793		4,528		4,672		18,329
	$	12,424	$	9,992	$	10,851	$	7,872	$	41,139


Square foot & leased percentages	December 31,	December 31,
	2022	2021
Owned or Operating Properties:
Number of properties	21	24
Square feet	6,239,530	6,911,225
Leased percentage	75.6%	78.4%

Managed Properties - Single Asset REITs (SARs):
Number of properties	1	2
Square feet	213,760	348,545

Total Owned or Operating and Managed Properties:
Number of properties	22	26
Square feet	6,453,290	7,259,770

-10- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)


									Third				Fourth
							% Leased (1)		Quarter		% Leased (1)		Quarter
							as of		Average %		as of		Average %
	Property Name	****	Location	****	Square Feet	****	30-Sep-22	****	Leased (2)	****	31-Dec-22	****	Leased (2)	****

1	FOREST PARK		Charlotte, NC		64,198		78.4%		78.4%		78.4%		78.4%
2	NORTHWEST POINT		Elk Grove Village, IL		177,095		100.0%		100.0%		100.0%		100.0%
3	PARK TEN		Houston, TX		157,609		72.0%		72.0%		78.1%		76.1%
4	PARK TEN PHASE II		Houston, TX		156,746		95.0%		95.0%		95.0%		95.0%
5	GREENWOOD PLAZA		Englewood, CO		196,236		66.3%		66.3%		66.3%		66.3%
6	ADDISON		Addison, TX		289,333		83.0%		83.0%		83.0%		83.0%
7	COLLINS CROSSING		Richardson, TX		300,887		96.1%		96.1%		96.1%		96.1%
8	INNSBROOK		Glen Allen, VA		298,183		47.8%		47.8%		47.8%		47.8%
9	LIBERTY PLAZA		Addison, TX		217,779		75.5%		75.9%		72.9%		74.7%
10	BLUE LAGOON		Miami, FL		213,182		98.5%		98.5%		98.5%		98.5%
11	ELDRIDGE GREEN		Houston, TX		248,399		100.0%		100.0%		100.0%		100.0%
12	121 SOUTH EIGHTH ST		Minneapolis, MN		298,121		88.6%		88.6%		85.2%		86.3%
13	801 MARQUETTE AVE		Minneapolis, MN		129,691		91.8%		77.7%		91.8%		91.8%
14	LEGACY TENNYSON CTR		Plano, TX		209,461		40.7%		40.7%		49.0%		46.2%
15	ONE LEGACY		Plano, TX		214,110		63.7%		63.7%		64.7%		64.7%
	909 DAVIS		Evanston, IL		—		93.3%		93.3%		(3)		(3)
16	WESTCHASE I & II		Houston, TX		629,025		64.2%		63.7%		63.5%		63.7%
17	1999 BROADWAY		Denver, CO		680,255		66.9%		66.9%		66.9%		66.9%
18	1001 17TH STREET		Denver, CO		657,816		70.1%		70.7%		70.2%		70.1%
19	PLAZA SEVEN		Minneapolis, MN		330,096		79.3%		79.7%		79.3%		79.3%
20	PERSHING PLAZA		Atlanta, GA		160,145		79.2%		78.5%		79.2%		79.2%
21	600 17TH STREET		Denver, CO		611,163		77.8%		77.8%		78.3%		78.0%
	OWNED PORTFOLIO				6,239,530		75.9%		75.8%		75.6%		75.9%

(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)	Property was sold on December 28, 2022.
---	---

-11- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Largest 20 Tenants – FSP Owned Portfolio

(Unaudited & Estimated)

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

As of December 31, 2022


			% of
	Tenant	Sq Ft	Portfolio
1	CITGO Petroleum Corporation	248,399	4.0%
2	EOG Resources, Inc.	169,167	2.7%
3	US Government	168,573	2.7%
4	Lennar Homes, LLC	155,808	2.5%
5	Citicorp Credit Services, Inc	146,260	2.3%
6	Kaiser Foundation Health Plan	120,979	1.9%
7	Argo Data Resource Corporation	114,200	1.8%
8	Swift, Currie, McGhee & Hiers, LLP	101,296	1.6%
9	Deluxe Corporation	98,922	1.6%
10	Ping Identity Corp.	89,856	1.4%
11	Permian Resources Operating, LLC	67,856	1.1%
12	Bread Financial Payments, Inc.	67,274	1.1%
13	PricewaterhouseCoopers LLP	66,304	1.1%
14	Hall and Evans LLC	65,878	1.1%
15	Cyxtera Management, Inc.	61,826	1.0%
16	Precision Drilling (US) Corporation	59,569	1.0%
17	Schwegman, Lundberg & Woessner, P.A.	58,263	0.9%
18	EMC Corporation	57,100	0.9%
19	ID Software, LLC	57,100	0.9%
20	Olin Corporation	54,080	0.9%
	Total	2,028,710	32.5%

-12- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Reconciliation and Definitions of Funds From Operations (“FFO”) and

Adjusted Funds From Operations (“AFFO”)

A reconciliation of Net income to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I. Management believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurements of performance. The Company has included the National Association of Real Estate Investment Trusts (NAREIT) FFO definition as of May 17, 2016 in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. The Company’s computation of FFO and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently.


Reconciliation of Net Income to FFO and AFFO:	Three Months Ended				Year Ended
	December 31,				December 31,
(In thousands, except per share amounts)	2022		2021		2022		2021
Net income (loss)	$	(2,884)	$	78,572	$	1,094	$	92,717
Impairment and loan loss reserve		2,380		—		4,237		—
Gain on sale of properties, net		(3,862)		(83,876)		(27,939)		(113,134)
Equity in income from non-consolidated REITs		—		—		—		(421)
FFO from non-consolidated REITs		—		—		—		421
Depreciation & amortization		14,773		16,169		63,689		78,509
NAREIT FFO		10,407		10,865		41,081		58,092
Lease Acquisition costs		56		90		262		387
Funds From Operations (FFO)	$	10,463	$	10,955	$	41,343	$	58,479

Funds From Operations (FFO)	$	10,463	$	10,955	$	41,343	$	58,479
Loss on extinguishment of debt		—		498		78		901
Reverse FFO from non-consolidated REITs		—		—		—		(421)
Distributions from non-consolidated REITs		—		—		—		421
Amortization of deferred financing costs		421		487		1,889		2,498
Shares issued as compensation		—		—		394		338
Straight-line rent		(1,831)		(827)		(5,895)		(4,017)
Tenant improvements		(7,508)		(1,881)		(21,651)		(14,601)
Leasing commissions		(1,152)		(1,319)		(7,564)		(8,209)
Non-investment capex		(9,074)		(4,672)		(30,164)		(18,329)
Adjusted Funds From Operations (AFFO)	$	(8,681)	$	3,241	$	(21,570)	$	17,060

Per Share Data
EPS	$	(0.03)	$	0.75	$	0.01	$	0.87
FFO	$	0.10	$	0.10	$	0.40	$	0.55
AFFO	$	(0.08)	$	0.03	$	(0.21)	$	0.16

Weighted average shares (basic and diluted)		103,236		105,098		103,338		106,667

-13- Funds From Operations (“FFO”)

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

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 loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5) plus the amortization of deferred financing costs, (6) plus the value of shares issued as compensation and (7) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions.

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

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

-14- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule I

Reconciliation and Definition of Sequential Same Store results to property Net Operating Income (NOI) and Net Income

Net Operating Income (“NOI”)

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


		Rentable												****
		Square Feet		Three Months Ended			Three Months Ended			Inc			%	****
(in thousands)	****	or RSF	****	31-Dec-22		****	30-Sep-22		****	(Dec)		****	Change	****
Region
East		362		$	526		$	391		$	135		34.5	%
MidWest		935			3,099			3,131			(32)		(1.0)	%
South		2,797			7,896			5,902			1,994		33.8	%
West		2,146			6,028			6,401			(373)		(5.8)	%
Property NOI* from Operating Properties		6,240			17,549			15,825			1,724		10.9	%
Dispositions and Redevelopment Properties (a)		-			666			1,842			(1,176)		(7.8)	%
NOI*		6,240		$	18,215		$	17,667		$	548		3.1	%

Sequential Same Store				$	17,549		$	15,825		$	1,724		10.9	%

Less Nonrecurring
Items in NOI* (b)					818			494			324		(1.8)	%

Comparative
Sequential Same Store				$	16,731		$	15,331		$	1,400		9.1	%

-15-



	Three Months Ended		Three Months Ended
Reconciliation to Net income (loss)	31-Dec-22		30-Sep-22
Net income (loss)	$	(2,884)	$	17,246
Add (deduct):
Loss on extinguishment of debt		—		78
Impairment and loan loss reserve		2,380		717
Gain on sale of properties, net		(3,862)		(24,077)
Management fee income		(295)		(274)
Depreciation and amortization		14,805		15,148
Amortization of above/below market leases		(30)		(34)
General and administrative		2,888		3,233
Interest expense		5,668		6,110
Interest income		(460)		(461)
Equity in (income) loss of non-consolidated REITs		—		—
Non-property specific items, net		5		(19)


NOI*	$	18,215	$	17,667

(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><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><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


	Fourth Quarter 2022 Table of Contents


	Page			Page

Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry		18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term		19-20
Financial Highlights	4	Leasing Activity		21
Income Statements	5	Lease Expirations by Square Feet		22
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot		23
Cash Flow Statements	7	Capital Expenditures		24
Property Net Operating Income (NOI)	8

Reconciliation		Transaction Activity		25
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate		26
Property NOI	11
		Net Asset Value Components		27
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO		28
		EBITDA and NOI		29
Owned and Managed Portfolio Overview	14-17	AFFO		30
<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 geopolitical events, increasing inflation, the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, any inability to dispose of properties on acceptable terms and any delays in the timing of any such anticipated dispositions, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

			801 Marquette, Minneapolis, MN

December 31, 2022| Page 2


	Company Information

Overview		Snapshot (as of December 31, 2022)
<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	21
			Total Square Feet	6.2 Million
			Trading Symbol	FSP
			Exchange	NYSE American
			Common Shares Outstanding	103,235,914

Our Business		Total Market Capitalization	$0.7 Billion (1)
As of December 31, 2022, the Company owned and operated a portfolio of real estate consisting of 21 operating properties and one managed Sponsored REIT. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire its Sponsored REIT. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, for geographic, property specific reasons or for other general corporate purposes.		Insider Holdings	5.57%



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	1999 Broadway, Denver, CO

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

December 31, 2022| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	****	31-Dec-22		****	30-Sep-22		30-Jun-22		****	31-Mar-22		****	31-Dec-21
Income Items:
Rental revenue		$	40,745		$	40,366	$	40,831		$	41,797		$	42,910
Total revenue			41,211			40,836		41,304			42,264			43,372
Net income (loss)			(2,884)			17,246		(9,110)			(4,158)			78,572
Adjusted EBITDA*			16,112			15,250		15,891			16,918			17,518
FFO*			10,463			9,041		10,257			11,582			10,955
AFFO*			(8,681)			(9,735)		(4,072)			918			3,241

Per Share Data:
EPS		$	(0.03)		$	0.17	$	(0.09)		$	(0.04)		$	0.75
FFO*		$	0.10		$	0.09	$	0.10		$	0.11		$	0.10
AFFO*		$	(0.08)		$	(0.09)	$	(0.04)		$	0.01		$	0.03
Weighted Average Shares (diluted)			103,236			103,236		103,193			103,691			105,098
Closing share price		$	2.73		$	2.63	$	4.17		$	5.90		$	5.95
Dividend declared		$	0.01		$	0.01	$	0.09		$	0.09		$	0.41

Balance Sheet Items:
Real estate, net		$	1,103,248		$	1,118,983	$	1,186,157		$	1,187,348		$	1,190,970
Other assets, net			138,418			143,087		145,562			149,772			173,203
Total assets, net			1,241,666			1,262,070		1,331,719			1,337,120			1,364,173
Total liabilities, net			472,930			489,509		577,687			567,234			580,970
Shareholders' equity			768,736			772,561		754,032			769,886			783,203

Market Capitalization and Debt:
Total Market Capitalization (a)		$	694,834		$	701,510	$	960,494		$	1,123,596		$	1,093,791
Total debt outstanding (excluding unamortized financing costs)		$	413,000		$	430,000	$	530,000		$	515,000		$	475,000
Debt to Total Market Capitalization			59.4%			61.3%		55.2%			45.8%			43.4%
Net Debt to Adjusted EBITDA ratio*			6.3			6.9		8.3			7.4			6.2

Operating Properties Leasing Statistics (b):
Operating properties assets			21			22		24			24			24
Operating properties total SF			6,239,530			6,433,954		6,915,715			6,915,609			6,911,225
Operating properties % leased			75.6%			75.9%		76.3%			77.3%			78.4%

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

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

December 31, 2022| Page 4

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


									For the										For the
	For the Three Months Ended								Year Ended		For the Three Months Ended								Year Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Revenue:
Rental	$	41,797	$	40,831	$	40,366	$	40,745	$	163,739	$	58,623	$	55,722	$	50,326	$	42,910	$	207,581
Related party revenue:
Management fees and interest income from loans		460		467		466		462		1,855		410		417		419		454		1,700
Other		7		6		4		4		21		6		6		57		8		77
Total revenue		42,264		41,304		40,836		41,211		165,615		59,039		56,145		50,802		43,372		209,358

Expenses:
Real estate operating expenses		12,834		12,344		13,369		14,273		52,820		15,939		15,352		14,373		15,217		60,881
Real estate taxes and insurance		8,719		9,043		8,951		7,907		34,620		12,366		11,895		10,200		6,600		41,061
Depreciation and amortization		15,670		18,186		15,148		14,804		63,808		24,381		19,136		18,862		16,165		78,544
General and administrative		3,784		3,981		3,232		2,888		13,885		4,146		3,962		3,749		4,041		15,898
Interest		5,366		5,664		6,110		5,668		22,808		8,600		10,054		7,928		5,691		32,273
Total expenses		46,373		49,218		46,810		45,540		187,941		65,432		60,399		55,112		47,714		228,657

Loss on extinguishment of debt		—		—		(78)		—		(78)		—		(167)		(236)		(498)		(901)
Impairment and loan loss reserve		—		(1,140)		(717)		(2,380)		(4,237)		—		—		—		—		—
Gain on sale of properties, net		—		—		24,077		3,862		27,939		—		20,626		8,632		83,876		113,134
Income (loss) before taxes on income and equity in income of non-consolidated REITs		(4,109)		(9,054)		17,308		(2,847)		1,298		(6,393)		16,205		4,086		79,036		92,934
Tax expense on income		49		56		62		37		204		67		56		51		464		638
Equity in income of non-consolidated REITs		—		—		—		—		—		—		—		421		—		421

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717

Weighted average number of shares outstanding, basic and diluted		103,691		103,193		103,236		103,236		103,338		107,328		107,359		106,905		105,098		106,667

Net income (loss) per share, basic and diluted	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01	$	(0.06)	$	0.15	$	0.04	$	0.75	$	0.87

December 31, 2022| Page 5

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


	March 31,		June 30,		September 30,		December 31,		March 31,		June 30,		September 30,		December 31,
	2022		2022		2022		2022		2021		2021		2021		2021
Assets:
Real estate assets:
Land	$	146,844	$	146,844	$	131,556	$	126,645	$	189,155	$	170,377	$	161,767	$	146,844
Buildings and improvements		1,465,312		1,477,913		1,397,303		1,388,869		1,954,838		1,731,690		1,630,729		1,457,209
Fixtures and equipment		11,819		12,192		10,656		11,151		13,308		11,643		11,727		11,404
		1,623,975		1,636,949		1,539,515		1,526,665		2,157,301		1,913,710		1,804,223		1,615,457
Less accumulated depreciation		436,627		450,792		420,532		423,417		555,688		500,163		459,531		424,487
Real estate assets, net		1,187,348		1,186,157		1,118,983		1,103,248		1,601,613		1,413,547		1,344,692		1,190,970

Acquired real estate leases, net		13,453		12,373		11,177		10,186		25,836		21,932		19,864		14,934
Cash, cash equivalents and restricted cash		10,983		4,693		8,717		6,632		4,113		24,180		9,731		40,751
Tenant rent receivables, net		2,041		2,627		1,309		2,201		4,337		3,116		2,681		1,954
Straight-line rent receivable, net		51,309		54,354		50,885		52,739		69,743		61,475		58,132		49,024
Prepaid expenses and other assets		7,403		6,863		6,961		6,676		5,873		5,405		5,547		4,031
Related party mortgage loan receivable, less allowance for credit loss		24,000		22,860		22,143		19,763		21,000		21,000		21,000		24,000
Other assets: derivative asset		—		1,951		4,266		4,358		—		—		—		—
Office computers and furniture, net of accumulated depreciation		204		187		170		154		147		167		153		198
Deferred leasing commissions, net		40,379		39,654		37,459		35,709		56,771		49,793		44,729		38,311
Total assets	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666	$	1,789,433	$	1,600,615	$	1,506,529	$	1,364,173

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	40,000	$	55,000	$	65,000	$	48,000	$	27,500	$	—	$	—	$	—
Term loan payable, net of unamortized financing costs		274,402		274,518		164,692		164,750		717,668		563,151		473,648		274,286
Series A & Series B Senior Notes		199,383		199,424		199,465		199,506		199,219		199,260		199,301		199,342
Accounts payable and accrued expenses		44,700		39,315		50,371		50,366		63,456		50,799		59,309		89,493
Accrued compensation		1,206		2,252		3,159		3,644		1,390		2,309		3,482		4,704
Tenant security deposits		5,837		5,819		5,726		5,710		8,041		6,807		6,169		6,219
Lease liability		1,061		962		862		759		1,444		1,350		1,256		1,159
Other liabilities: derivative liabilities		195		—		—		—		13,698		9,425		7,583		5,239
Acquired unfavorable real estate leases, net		450		397		234		195		1,433		829		708		528
Total liabilities		567,234		577,687		489,509		472,930		1,033,849		833,930		751,456		580,970

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—		—		—		—		—		—		—		—
Common stock		10		10		10		10		11		11		11		10
Additional paid-in capital		1,334,383		1,334,776		1,334,776		1,334,776		1,357,131		1,357,469		1,349,225		1,339,226
Accumulated other comprehensive loss		(195)		1,951		4,266		4,358		(13,698)		(9,425)		(7,583)		(5,239)
Accumulated distributions in excess of accumulated earnings		(564,312)		(582,705)		(566,491)		(570,408)		(587,860)		(581,370)		(586,580)		(550,794)
Total stockholders’ equity		769,886		754,032		772,561		768,736		755,584		766,685		755,073		783,203
Total liabilities and stockholders’ equity	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666	$	1,789,433	$	1,600,615	$	1,506,529	$	1,364,173

December 31, 2022| Page 6

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


		Year Ended December 31,
		2022		2021
Cash flows from operating activities:
Net income	$	1,094	$	92,717
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		65,697		81,041
Amortization of above and below market leases		(118)		(34)
Shares issued as compensation		394		338
Loss on extinguishment of debt		78		901
Impairment and loan loss reserve		4,237		—
Gain on sale of properties, net		(27,939)		(113,134)
Equity in income from non-consolidated REITs		—		(421)
Distributions from non-consolidated REITs		—		421
Changes in operating assets and liabilities:
Tenant rent receivables		(247)		5,702
Straight-line rents		(5,895)		(3,930)
Lease acquisition costs		(4,494)		(2,353)
Prepaid expenses and other assets		(1,805)		82
Accounts payable and accrued expenses		(5,983)		(11,096)
Accrued compensation		(1,060)		786
Tenant security deposits		(509)		(2,458)
Payment of deferred leasing commissions		(8,216)		(12,200)
Net cash provided by operating activities		15,234		36,362

Cash flows from investing activities:
Property improvements, fixtures and equipment		(54,910)		(64,833)
Investment in related party mortgage loan receivable		—		(3,000)
Proceeds received from sales of properties		128,949		573,307
Net cash provided by investing activities		74,039		505,474

Cash flows from financing activities:
Distributions to stockholders		(53,988)		(38,491)
Stock repurchases		(4,843)		(18,244)
Borrowings under bank note payable		90,000		91,500
Repayments of bank note payable		(42,000)		(95,000)
Repayment of term loan payable		(110,000)		(445,000)
Deferred Financing Costs		(2,561)		—
Net cash used in financing activities		(123,392)		(505,235)
Net increase (decrease) in cash, cash equivalents and restricted cash		(34,119)		36,601
Cash, cash equivalents and restricted cash, beginning of period		40,751		4,150
Cash, cash equivalents and restricted cash, end of period	$	6,632	$	40,751

December 31, 2022| Page 7

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


		Rentable																																		****
		Square Feet		Three Months Ended											Year Ended			Three Months Ended											Year Ended			Inc			%	****
(in thousands)	****	or RSF	****	31-Mar-22		****	30-Jun-22		****	30-Sep-22		31-Dec-22		****	31-Dec-22		****	31-Mar-21		****	30-Jun-21		****	30-Sep-21		31-Dec-21		****	31-Dec-21		****	(Dec)		****	Change	****
Region
East		362		$	497		$	475		$	391	$	526		$	1,889		$	504		$	522		$	612	$	584		$	2,222		$	(333)		(15.0)	%
MidWest		935			3,106			3,679			3,131		3,099			13,015			2,433			2,447			2,428		2,960			10,268			2,747		26.8	%
South		2,797			5,817			5,611			5,902		7,896			25,226			7,095			7,070			6,162		5,900			26,227			(1,001)		(3.8)	%
West		2,146			8,070			6,609			6,401		6,028			27,108			8,721			8,392			8,643		8,585			34,341			(7,233)		(21.1)	%
Property NOI* from Operating Properties		6,240			17,490			16,374			15,825		17,549			67,238			18,753			18,431			17,845		18,029			73,058			(5,820)		(8.0)	%
Dispositions and Redevelopment Properties (a)		-			2,091			2,745			1,842		666			7,344			11,008			9,569			7,518		2,928			31,023			(23,679)		(20.3)	%
Property NOI*		6,240		$	19,581		$	19,119		$	17,667	$	18,215		$	74,582		$	29,761		$	28,000		$	25,363	$	20,957		$	104,081		$	(29,499)		(28.3)	%

Same Store				$	17,490		$	16,374		$	15,825	$	17,549		$	67,238		$	18,753		$	18,431		$	17,845	$	18,029		$	73,058		$	(5,820)		(8.0)	%

Less Nonrecurring
Items in NOI* (b)					273			1,258			494		818			2,843			32			34			281		163			510			2,333		(3.2)	%

Comparative
Same Store				$	17,217		$	15,116		$	15,331	$	16,731		$	64,395		$	18,721		$	18,397		$	17,564	$	17,866		$	72,548		$	(8,153)		(11.2)	%

(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 28.

December 31, 2022| Page 8

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


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Impairment and loan loss reserve		—		1,140		717		2,380		4,237		—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)		—		(20,626)		(8,632)		(83,876)		(113,134)
Equity in income from non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
FFO from non-consolidated REITs		—		—		—		—		—		—		—		421		—		421
Depreciation & amortization		15,661		18,141		15,114		14,773		63,689		24,349		19,130		18,861		16,169		78,509
NAREIT FFO*		11,503		10,171		9,000		10,407		41,081		17,889		14,653		14,685		10,865		58,092
Lease Acquisition costs		79		86		41		56		262		116		69		112		90		387
Funds From Operations (FFO)*	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343	$	18,005	$	14,722	$	14,797	$	10,955	$	58,479


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343	$	18,005	$	14,722	$	14,797	$	10,955	$	58,479
Loss on extinguishment of debt		—		—		78		—		78		—		167		236		498		901
Reverse FFO from non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
Distributions from non-consolidated REITs		—		—		—		—		—		—		—		421		—		421
Amortization of deferred financing costs		526		481		461		421		1,889		707		686		618		487		2,498
Shares issued as compensation		—		394		—		—		394		—		338		—		—		338
Straight-line rent		(1,216)		(1,688)		(1,160)		(1,831)		(5,895)		(1,904)		(1,041)		(245)		(827)		(4,017)
Tenant improvements		(1,877)		(5,453)		(6,813)		(7,508)		(21,651)		(4,491)		(4,277)		(3,952)		(1,881)		(14,601)
Leasing commissions		(3,032)		(1,327)		(2,053)		(1,152)		(7,564)		(2,597)		(1,922)		(2,371)		(1,319)		(8,209)
Non-investment capex		(5,065)		(6,736)		(9,289)		(9,074)		(30,164)		(5,336)		(3,793)		(4,528)		(4,672)		(18,329)
Adjusted Funds From Operations (AFFO)*	$	918	$	(4,072)	$	(9,735)	$	(8,681)	$	(21,570)	$	4,384	$	4,880	$	4,555	$	3,241	$	17,060

Per Share Data:
EPS	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01	$	(0.06)	$	0.15	$	0.04	$	0.75	$	0.87
FFO*		0.11		0.10		0.09		0.10		0.40		0.17		0.14		0.14		0.10		0.55
AFFO*		0.01		(0.04)		(0.09)		(0.08)		(0.21)		0.04		0.05		0.04		0.03		0.16

Weighted Average Shares (basic and diluted)		103,691		103,193		103,236		103,236		103,338		107,328		107,359		106,905		105,098		106,667

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

December 31, 2022| Page 9

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


									Year											Year
	Three Months Ended								Ended			Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22		****	31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094		$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Interest expense		5,366		5,664		6,110		5,668		22,808			8,600		10,054		7,928		5,691		32,273
Depreciation and amortization		15,661		18,141		15,114		14,773		63,689			24,349		19,130		18,861		16,169		78,509
Income taxes		49		56		62		37		204			67		56		51		464		638
EBITDA*	$	16,918	$	14,751		38,532		17,594	$	87,795		$	26,556	$	45,389	$	31,296	$	100,896	$	204,137
Loss on extinguishment of debt		—		—		78		—		78			—		167		236		498		901
Impairment and loan loss reserve		—		1,140		717		2,380		4,237			—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)			—		(20,626)		(8,632)		(83,876)		(113,134)
Adjusted EBITDA*	$	16,918	$	15,891	$	15,250	$	16,112	$	64,171		$	26,556	$	24,930	$	22,900	$	17,518	$	91,904

Interest expense	$	5,366	$	5,664	$	6,110	$	5,668	$	22,808		$	8,600	$	10,054	$	7,928	$	5,691	$	32,273
Scheduled principal payments		—		—		—		—		—			—		—		—		—		—
Interest and scheduled principal payments	$	5,366	$	5,664	$	6,110	$	5,668	$	22,808		$	8,600	$	10,054	$	7,928	$	5,691	$	32,273

Interest coverage ratio		3.15		2.81		2.50		2.84		2.81			3.09		2.48		2.89		3.08		2.85

Debt service coverage ratio		3.15		2.81		2.50		2.84		2.81			3.09		2.48		2.89		3.08		2.85

Debt excluding unamortized financing costs	$	515,000	$	530,000	$	430,000	$	413,000				$	947,500	$	765,000	$	675,000	$	475,000
Cash, cash equivalents and restricted cash		10,983		4,693		8,717		6,632					4,113		24,180		9,731		40,751
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	504,017	$	525,307	$	421,283	$	406,368				$	943,387	$	740,820	$	665,269	$	434,249

Adjusted EBITDA*	$	16,918	$	15,891	$	15,250	$	16,112				$	26,556	$	24,930	$	22,900	$	17,518
Annualized	$	67,672	$	63,564	$	61,000	$	64,448				$	106,224	$	99,720	$	91,600	$	70,072

Net Debt-to-Adjusted EBITDA ratio*		7.4		8.3		6.9		6.3					8.9		7.4		7.3		6.2

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28. Amounts in the EBITDA and Adjusted EBITDA reconciliation do not reflect our proportionate share of interest expense, depreciation, amortization, income taxes, gains or losses on sales and debt from our investments in non-consolidated REITs, which are accounted for under the equity method.

December 31, 2022| Page 10

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


									Year										Year
	Three Months Ended								Ended		Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22			31-Dec-22	31-Dec-22		31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21
Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572	$	92,717
Add (deduct):
Loss on extinguishment of debt		—		—		78		—		78		—		167		236		498		901
Impairment and loan loss reserve		—		1,140		717		2,380		4,237		—		—		—		—		—
Gain on sale of properties, net		—		—		(24,077)		(3,862)		(27,939)		—		(20,626)		(8,632)		(83,876)		(113,134)
Management fee income		(291)		(267)		(274)		(295)		(1,127)		(465)		(403)		(380)		(311)		(1,559)
Depreciation and amortization		15,670		18,185		15,148		14,805		63,808		24,381		19,136		18,862		16,165		78,544
Amortization of above/below market leases		(9)		(45)		(34)		(30)		(118)		(32)		(6)		—		4		(34)
General and administrative		3,784		3,981		3,233		2,888		13,886		4,146		3,962		3,749		4,041		15,898
Interest expense		5,366		5,664		6,110		5,668		22,808		8,600		10,054		7,928		5,691		32,273
Interest income		(451)		(455)		(461)		(461)		(1,828)		(394)		(399)		(404)		(442)		(1,639)
Equity in income of non-consolidated REITs		—		—		—		—		—		—		—		(421)		—		(421)
Non-property specific items, net		(330)		26		(19)		6		(317)		(15)		(34)		(31)		615		535
Property NOI*	$	19,581	$	19,119	$	17,667	$	18,215	$	74,582	$	29,761	$	28,000	$	25,363	$	20,957	$	104,081

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 28.

December 31, 2022| Page 11

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


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		31-Dec-22		Components			31-Dec-22	Fee

BofA Revolver	12-Jan-24	$	237,500	$	48,000	SOFR	+	1.75%	6.19%	0.35%
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%

		$	602,500	$	413,000				4.56%

●	The table above is a summary of our debt as of December 31, 2022. Additional information on our debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2022, or as updated in our Quarterly Reports on Form 10-Q, on file with the U.S. Securities and Exchange Commission.
●	On February 8, 2023, we terminated all remaining interest rate swaps applicable to the BMO Term Loan and, on February 10, 2023, we received an aggregate of approximately $4.3 million as a result of such terminations.
---	---
●	On February 10, 2023, we entered into an amendment to the credit agreement evidencing our $165 million BMO Term Loan. On February 10, 2023, as part of the amendment to the BMO Term Loan, we repaid a $40 million portion of the BMO Term Loan, so that $125 million remains outstanding under the BMO Term Loan. On or before April 1, 2024, we are required to repay an additional $25 million of the BMO Term Loan. The amendment, among other items, extended the maturity date from January 31, 2024 to October 1, 2024, changed the interest rate from a number of basis points over LIBOR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.
---	---
●	On February 10, 2023, we entered into an amendment to the credit agreement evidencing our BofA Revolver. The amendment, among other items, extended the maturity date from January 12, 2024 to October 1, 2024, reduced availability from $237.50 million to $150 million, with further reductions to $125 million effective October 1, 2023 and to $100 million effective April 1, 2024, changed the interest rate from a number of basis points over SOFR depending on our credit rating to 300 basis points over SOFR, and made certain changes to conditions and covenants.
---	---
●	As of December 31, 2022, the BofA Revolver was subject to a 35 basis point facility fee.
---	---
●	We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute.
---	---

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

December 31, 2022| Page 12

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


		31-Mar-22			30-Jun-22			30-Sep-22			31-Dec-22				31-Mar-21			30-Jun-21			30-Sep-21			31-Dec-21
Market Data:	****			****			****			****			****	****			****			****			****			****
Shares Outstanding			103,152			103,236			103,236			103,236				107,328			107,395			105,633			103,999
Closing market price per share		$	5.90		$	4.17		$	2.63		$	2.73			$	5.45		$	5.26		$	4.64		$	5.95
Market capitalization		$	608,596		$	430,494		$	271,510		$	281,834			$	584,939		$	564,896		$	490,136		$	618,791
Total debt outstanding excluding unamortized financing costs			515,000			530,000			430,000			413,000				947,500			765,000			675,000			475,000
Total Market Capitalization		$	1,123,596		$	960,494		$	701,510		$	694,834			$	1,532,439		$	1,329,896		$	1,165,136		$	1,093,791

Dividend Data:
Total dividends declared for the quarter		$	9,360		$	9,284		$	1,032		$	1,032			$	9,660		$	9,659		$	9,666		$	9,506
Common dividend declared per share		$	0.09		$	0.09		$	0.01		$	0.01			$	0.09		$	0.09		$	0.09		$	0.41
Declared dividend as a % of Net income (loss) per share			(224)%			(102)%			6%			(36)%				(150)%			60%			216%			55%
Declared dividend as a % of AFFO* per share			1017%			(228)%			(11)%			(12)%				220%			198%			211%			1330%

Liquidity:
Cash, cash equivalents and restricted cash		$	10,983		$	4,693		$	8,717		$	6,632			$	4,113		$	24,180		$	9,731		$	40,751
Revolver:
Gross potential available under the BofA Revolver			237,500			237,500			237,500			237,500				600,000			600,000			600,000			600,000
Less:
Outstanding balance			(40,000)			(55,000)			(65,000)			(48,000)				(27,500)			—			—			—
Total Liquidity		$	208,483		$	187,193		$	181,217		$	196,132			$	576,613		$	624,180		$	609,731		$	640,751

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

December 31, 2022| Page 13

	<br><br>
	Owned Portfolio Overview


		As of the Quarter Ended
	****	31-Dec-22	30-Sep-22	30-Jun-22	31-Mar-22	31-Dec-21	****
Total Owned Properties:
Number of properties		21	22	24	24	24
Square feet		6,239,530	6,433,954	6,915,715	6,915,609	6,911,225
Leased percentage		75.6%	75.9%	76.3%	77.3%	78.4%

Managed Properties - Single Asset REITs (SARs):
Number of properties		1	1	1	2	2
Square feet		213,760	213,760	213,760	348,545	348,545

Total Owned and Managed Properties:
Number of properties		22	23	25	26	26
Square feet		6,453,290	6,647,714	7,129,475	7,264,154	7,259,770

December 31, 2022| 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

Richmond, VA														Chicago
Innsbrook		Glen Allen		VA		298,183		47.8%		48.5%		$	18.91	Northwest Point		Elk Grove Village		IL		177,095		100.0%		100.0%		$	31.64

Charlotte, NC
Forest Park		Charlotte		NC		64,198		78.4%		78.4%		$	23.65	Minneapolis
														121 South 8th Street		Minneapolis		MN		298,121		85.2%		88.5%		$	25.10
														801 Marquette Ave		Minneapolis		MN		129,691		91.8%		84.8%		$	23.92
														Plaza Seven		Minneapolis		MN		330,096		79.3%		81.2%		$	33.28








East Region Total						362,381		53.2%		53.8%		$	20.13	Midwest Region Total						935,003		86.8%		87.6%		$	29.03

(a)	Weighted Occupied Percentage for the year ended December 31, 2022.
(b)	Weighted Average GAAP Rent per Occupied Square Foot.
---	---

December 31, 2022| 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		209,461		49.0%		42.1%		$	30.37	1999 Broadway		Denver		CO		680,255		66.9%		66.6%		$	34.02
One Legacy Circle		Plano		TX		214,110		64.7%		59.9%		$	37.31	Greenwood Plaza		Englewood		CO		196,236		66.3%		77.5%		$	28.08
Addison Circle		Addison		TX		289,333		83.0%		71.5%		$	34.49	1001 17th Street		Denver		CO		657,816		70.2%		76.4%		$	35.48
Collins Crossing		Richardson		TX		300,887		96.1%		87.0%		$	27.06	600 17th Street		Denver		CO		611,163		78.3%		77.3%		$	34.38
Liberty Plaza		Addison		TX		217,779		72.9%		71.4%		$	24.56
														West Region Total						2,145,470		71.1%		73.7%		$	34.02
Houston
Park Ten		Houston		TX		157,609		78.1%		72.0%		$	29.09	Total Owned Properties						6,239,530		75.6%		72.3%		$	30.48
Eldridge Green		Houston		TX		248,399		100.0%		100.0%		$	26.11
Park Ten Phase II		Houston		TX		156,746		95.0%		95.0%		$	28.63
Westchase I & II		Houston		TX		629,025		63.5%		56.3%		$	26.68

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive		Miami		FL		213,182		98.5%		73.6%		$	33.10

Atlanta
Pershing Plaza		Atlanta		GA		160,145		79.2%		34.3%		$	33.44

South Region Total						2,796,676		78.2%		68.6%		$	29.22

(a)	Weighted Occupied Percentage for the year ended December 31, 2022.
(b)	Weighted Average GAAP Rent per Occupied Square Foot.
---	---

December 31, 2022| Page 16

	<br><br>
	Managed Portfolio Overview


MSA / Property Name	****	City	****	State	****	Square Feet

Midwest Region

Indianapolis
Monument Circle		Indianapolis		IN		213,760

Total Managed						213,760

Total Owned & Managed						6,453,290

December 31, 2022| Page 17

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

December 31, 2022| 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	CITGO Petroleum Corporation		1		123		248,399		4.0%		$	2,849,138		2.1%
2	EOG Resources, Inc.		1		48		169,167		2.7%			6,062,945		4.4%
3	US Government (b)		2		37, 97		168,573		2.7%			6,317,703		4.6%
4	Lennar Homes, LLC		1		171		155,808		2.5%			6,247,901		4.6%
5	Citicorp Credit Services, Inc (c)		1		12		146,260		2.3%			4,947,976		3.6%
6	Kaiser Foundation Health Plan		1		17		120,979		1.9%			3,936,728		2.9%
7	Argo Data Resource Corporation (d)		1		8, 92		114,200		1.8%			3,358,622		2.5%
8	Swift, Currie, McGhee & Hiers, LLP (e)		1		129		101,296		1.6%			—		0.0%
9	Deluxe Corporation		1		175		98,922		1.6%			3,018,289		2.2%
10	Ping Identity Corp.		1		42		89,856		1.4%			3,587,950		2.6%
11	Permian Resources Operating, LLC (f)		1		106		67,856		1.1%			2,807,881		2.1%
12	Bread Financial Payments, Inc. (g)		1		42		67,274		1.1%			2,758,234		2.0%
13	PricewaterhouseCoopers LLP		1		73		66,304		1.1%			2,329,953		1.7%
14	Hall and Evans LLC		1		80		65,878		1.1%			2,455,473		1.8%
15	Cyxtera Management, Inc.		1		85		61,826		1.0%			2,191,403		1.6%
16	Precision Drilling (US) Corporation		1		65		59,569		1.0%			2,033,090		1.5%
17	Schwegman, Lundberg & Woessner, P.A. (h)		1		5, 61		58,263		0.9%			1,663,730		1.2%
18	EMC Corporation		1		21		57,100		0.9%			1,667,320		1.2%
19	ID Software, LLC		1		77		57,100		0.9%			1,609,649		1.2%
20	Olin Corporation		1		87		54,080		0.9%			1,647,277		1.2%

					Total		2,028,710		32.5%		$	61,491,262		45.0%

Footnotes on next page

December 31, 2022| 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 December 31, 2022 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

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

(c) Exercised early termination option on 146,260 square feet. Termination fee of approximately $4.2 million to be paid on or before termination date of December 31, 2023. This lease was assigned to Citigroup Technology, Inc. on January 1, 2023.

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

(e) Lease commenced on September 19, 2022 and rent commences on September 19, 2023.

(f) Formerly known as Centennial Resource Production, LLC.

(g) Formerly known as ADS Alliance Data Systems, Inc.

(h) Includes 11,994 square feet expiring in 2023. The remaining 46,269 square feet expire in 2028.

December 31, 2022| Page 20

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


	Year		Year		Year
	Ended		Ended		Ended
Leasing Activity (a)		31-Dec-22		31-Dec-21		31-Dec-20
(in Square Feet - SF)
New leasing		275,000		370,000		368,000
Renewals and expansions		160,000		665,000		762,000
		435,000		1,035,000		1,130,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	33.27		30.86	$	28.47
Weighted average lease term		6.4 Years		7.7 Years		8.3 Years

Increase over average GAAP rents in prior year (b)		10.6%		2.5%		7.7%

Average free rent		6 Months		7 Months		5 Months
Tenant Improvements	$	31.86		25.89	$	34.07
Leasing Costs	$	11.80		11.45	$	11.36

(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.

December 31, 2022| Page 21

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

December 31, 2022| 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

2023	47	(c)	398,204		$	12,594,621	$	31.63	9.2%	9.2%
2024	49		862,393			27,667,475		32.08	20.3%	29.5%
2025	54		429,146			14,038,512		32.71	10.3%	39.8%
2026	36		612,913			21,289,129		34.73	15.6%	55.4%
2027	20		307,689			9,694,824		31.51	7.1%	62.5%
2028	19		278,620			8,125,556		29.16	6.0%	68.5%
2029	15		344,550			10,011,705		29.06	7.3%	75.8%
2030	11		292,715			8,077,513		27.60	5.9%	81.7%
2031	8		271,904			9,952,632		36.60	7.3%	89.0%
2032	—		—			—		—	0.0%	89.0%
2033 and thereafter	44		917,408	(d)		15,053,359		16.41	11.0%	100.0%
Leased total	303		4,715,542		$	136,505,326	$	28.95	100.0%
Vacancies as of 12/31/22			1,523,988
Total Portfolio Square Footage			6,239,530

(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.
(b)	Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at December 31, 2022 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.
---	---
(c)	Includes 3 leases that are month-to-month.
---	---
(d)	Includes 87,695 square feet that are non-revenue producing building amenities.
---	---

December 31, 2022| Page 23

	<br><br>
	Capital Expenditures


(in thousands)									Year
	For the Three Months Ended								Ended
	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22

Tenant improvements	$	1,877	$	5,453	$	6,813	$	7,508	$	21,651
Deferred leasing costs		3,032		1,327		2,053		1,152		7,564
Non-investment capex		5,065		6,736		9,289		9,074		30,164
Total Capital Expenditures	$	9,974	$	13,516	$	18,155	$	17,734	$	59,379


	For the Three Months Ended								Year Ended
	31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21		31-Dec-21

Tenant improvements	$	4,491	$	4,277	$	3,952	$	1,881	$	14,601
Deferred leasing costs		2,597		1,922		2,371		1,319		8,209
Non-investment capex		5,336		3,793		4,528		4,672		18,329
Total Capital Expenditures	$	12,424	$	9,992	$	10,851	$	7,872	$	41,139

First generation leasing and investment capital was $9.0 million for the year ended December 31, 2022 and $32.0 million for the year ended December 31, 2021.

December 31, 2022| Page 24

	<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		****
2022
380 Interlocken		Broomfield		CO		240,359		8/31/22		$	42,000		$	5,665
390 Interlocken		Broomfield		CO		241,512		8/31/22			60,500			18,412
909 Davis		Evanston		IL		195,098		12/28/22			27,750			3,939

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			29
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)
River Crossing		Indianapolis		IN		205,729		8/31/21			35,050			(1,734)
Timberlake		Chesterfield		MO		234,496		9/23/21			44,667			6,184
Timberlake East		Chesterfield		MO		117,036		9/23/21			22,333			4,111
999 Peachtree		Atlanta		GA		621,946		10/22/21			223,900			86,766
Meadow Point		Chantilly		VA		138,537		11/16/21			25,500			1,878
Stonecroft		Chantilly		VA		111,469		11/16/21			14,500			(4,768)

2020
Emperor Boulevard		Durham		NC		259,531		12/23/20		$	89,700		$	41,928

December 31, 2022| Page 25

	<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		31-Dec-22		31-Dec-22

Mortgage loan secured by property
FSP Monument Circle LLC (1)	Indianapolis, IN	30-Jun-23	$	24,000	$	24,000	7.51%

			$	24,000	$	24,000

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

December 31, 2022| Page 26

	<br><br>
	Net Asset Value Components


(in thousands except per share data)
	As **** of		Assets:			Other information:
	31-Dec-22		Loans outstanding on secured RE	$	19,763	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	during 2023 (in 000's)		83
Shares outstanding		103,235.9	Straight-line rent receivable		52,739
Closing price	$	2.73	Asset held for sale		—	Straight-line rental revenue current quarter	$	1,831
Market capitalization	$	281,834	Cash, cash equivalents and restricted cash		6,632
Debt		413,000	Tenant rent receivables		2,201	Management fee income current quarter	$	1
Total Market Capitalization	$	694,834	Prepaid expenses		4,674	Interest income from secured loans		461
			Office computers and furniture		154	Management fees and interest income from loans	$	462
			Other assets:
	3 Months		Deferred financing costs, net		2,041
	Ended		Other assets: Derivative Market Value		4,358
NOI Components	31-Dec-22		Other assets - Right-to-Use Asset		705
				$	93,267
Same Store NOI (1)	$	17,549
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		17,549	Debt (excluding contra for unamortized financing costs)	$	413,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		54,010	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	17,549	Tenant security deposits		5,710
			Other liabilities: lease liability		759	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		—
Financial Statement Reconciliation:				$	473,479	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	40,745
Rental operating expenses		(14,273)				(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		(7,907)
NOI from dispositions & redevelopment properties		(666)				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(37)
Management & other fees (5)		(313)
Property NOI (1)	$	17,549

December 31, 2022| Page 27

	<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.

December 31, 2022| Page 28

	<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. We exclude the Adjusted EBITDA from any Sponsored REIT that is consolidated from the calculation of Adjusted EBITDA. 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. We exclude the NOI from any Sponsored REIT that is consolidated from the calculation of NOI. 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)

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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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