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): May 2, 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 May 2, 2023, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three months ended March 31, 2023. 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 May 2, 2023.

99.2		Supplemental Operating and Financial Data for the First Quarter of 2023.

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: May 2, 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

First Quarter 2023 Results

Wakefield, MA—May 2, 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 first quarter ended March 31, 2023.

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

“As the second 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 the remainder of 2023 and beyond with anticipation and optimism.”

Financial Highlights

●	GAAP net income was $2.4 million or $0.02 per basic and diluted share for the three months ended March 31, 2023.
●	Funds From Operations (FFO) was $8.4 million, or $0.08 per basic and diluted share, for the three months ended March 31, 2023.
---	---
●	We sold one office property located in Elk Grove, Illinois on March 10, 2023 for a sales price of $29.1 million, at a gain of approximately $8.4 million. Sale proceeds were primarily used to repay a portion of the drawn balance of our revolving line of credit.
---	---

Leasing Highlights

●	During the three months ended March 31, 2023, we leased approximately 129,000 square feet, including 48,000 square feet of new leases.
●	Our directly owned real estate portfolio of 20 owned properties, totaling approximately 6.0 million square feet, was approximately 73.9% leased as of March 31, 2023, compared to approximately 75.6% leased as of December 31, 2022. The decrease in the leased percentage is primarily a result of lease expirations during the three months ended March 31, 2023 and from a property disposition.
---	---
●	Subsequent to March 31, 2023, we entered into leases totaling approximately 112,000 square feet, including leases with new tenants and existing tenant expansions. As of April 30, 2023, our directly owned portfolio increased to approximately 75.6% leased, an increase from our leased percentage of 73.9% as of March 31, 2023 and unchanged from our leased percentage as of December 31, 2022.
---	---
●	The weighted average GAAP base rent per square foot achieved on leasing activity during the three months ended March 31, 2023 was $32.87, or 5.7% higher than average rents in the respective properties as applicable compared to the year ended December 31, 2022. The average lease term on leases signed during the three months ended March 31, 2023 was 6.1 years compared to 6.4 years during the year ended December 31, 2022. Overall the portfolio weighted average rent per occupied square foot was $31.06 as of March 31, 2023 compared to $30.48 as of December 31, 2022.
---	---

-2-

●	We are currently tracking approximately 700,000 square feet of new prospective tenants, including approximately 400,000 square feet of prospective tenants that have identified FSP assets on their respective short lists of potential locations.
●	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 March 10, 2023, we completed the sale of 50 Northwest Point in Elk Grove, Illinois for approximately $29.1 million in gross proceeds and recorded a gain of approximately $8.4 million. Proceeds were used primarily to reduce debt.
●	We remain committed to selling select properties during 2023 and using proceeds primarily for debt reduction.
---	---
●	At this time, primarily for competitive reasons and uncertainty surrounding the timing and amount of proceeds received from property dispositions, we are continuing our suspension of property disposition guidance.
---	---
●	We will continue to provide quarterly updates on any disposition activity.
---	---

Dividends

●	On April 7, 2023, we announced that our Board of Directors declared a quarterly cash dividend for the three months ended March 31, 2023 of $0.01 per share of common stock that will be paid on May 11, 2023 to stockholders of record on April 21, 2023.

Consolidation of Sponsored REIT

As of January 1, 2023, we consolidated Monument Circle into our financial statements. On October 29, 2021, we agreed to amend and restate our existing loan to Monument Circle that is secured by a mortgage on real estate owned by Monument Circle, which we refer to as the Sponsored REIT Loan. The amended and restated Sponsored REIT Loan extended the maturity date from December 6, 2022 to June 30, 2023 (subject to further extension to September 30, 2023), increased the aggregate principal amount of the loan from $21 million to $24 million, and included certain other modifications. In consideration of our agreement to amend and restate the Sponsored REIT Loan, we obtained from the stockholders of Monument Circle the right to vote their shares in favor of any sale of the property owned by Monument Circle any time on or after January 1, 2023. As a result of our obtaining this right to vote shares, GAAP variable interest entity (VIE) rules required us to consolidate Monument Circle as of January 1, 2023. A gain on consolidation of approximately $0.4 million was recognized in the three months ended March 31, 2023.

Additional information about the consolidation of Monument Circle can be found in Note 1, “Organization, Properties, Basis of Presentation, Financial Instruments, and Recent Accounting Standards – Variable Interest Entities (VIEs)” and Note 2, “Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans”, in the Notes to Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

Non-GAAP Financial Information

A reconciliation of Net income to FFO, Adjusted Funds From Operations (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.

-3- 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, FFO and property disposition guidance.

Real Estate Update

Supplementary schedules provide property information for the Company’s owned and consolidated properties as of March 31, 2023. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com.

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

Earnings Call

A conference call is scheduled for May 3, 2023 at 11:00 a.m. (ET) to discuss the first quarter 2023 results. To access the call, please dial 1-833-470-1428 and use access code 692599. Internationally, the call may be accessed by dialing 1-404-975-4839 and using access code 692599. 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
	Three Months Ended
	March 31,
(in thousands, except per share amounts)	2023		****	2022		****

Revenue:
Rental	$	37,767		$	41,797
Related party revenue:
Management fees and interest income from loans		—			460
Other		—			7
Total revenue		37,767			42,264

Expenses:
Real estate operating expenses		12,690			12,834
Real estate taxes and insurance		6,973			8,719
Depreciation and amortization		14,727			15,670
General and administrative		3,817			3,784
Interest		5,806			5,366
Total expenses		44,013			46,373

Loss on extinguishment of debt		(67)			—
Gain on consolidation of Sponsored REIT		394			—
Gain on sale of properties, net		8,392			—
Income (loss) before taxes		2,473			(4,109)
Tax expense		67			49
Net income (loss)	$	2,406		$	(4,158)

Weighted average number of shares outstanding, basic and diluted		103,236			103,691

Net income (loss) per share, basic and diluted	$	0.02		$	(0.04)

-6- Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)


	March 31,			December 31,
(in thousands, except share and par value amounts)	2023		****	2022
Assets:
Real estate assets:
Land	$	130,147		$	126,645
Buildings and improvements		1,367,629			1,388,869
Fixtures and equipment		11,411			11,151
		1,509,187			1,526,665
Less accumulated depreciation		413,272			423,417
Real estate assets, net		1,095,915			1,103,248
Acquired real estate leases, less accumulated amortization of $20,170 and $20,243, respectively		9,620			10,186
Cash, cash equivalents and restricted cash		13,110			6,632
Tenant rent receivables		3,306			2,201
Straight-line rent receivable		51,703			52,739
Prepaid expenses and other assets		6,125			6,676
Related party mortgage loan receivable, less allowance for credit loss of $0 and $4,237, respectively		—			19,763
Other assets: derivative asset		—			4,358
Office computers and furniture, net of accumulated depreciation of $1,132 and $1,115, respectively		145			154
Deferred leasing commissions, net of accumulated amortization of $19,852 and $19,043, respectively		33,758			35,709
Total assets	$	1,213,682		$	1,241,666

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	75,000		$	48,000
Term loans payable, less unamortized financing costs of $635 and $250, respectively		124,365			164,750
Series A & Series B Senior Notes, less unamortized financing costs of $453 and $494, respectively		199,547			199,506
Accounts payable and accrued expenses		37,720			50,366
Accrued compensation		1,189			3,644
Tenant security deposits		5,740			5,710
Lease liability		655			759
Acquired unfavorable real estate leases, less accumulated amortization of $519 and $574, respectively		171			195
Total liabilities		444,387			472,930

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 103,235,914 shares issued and outstanding, respectively		10			10
Additional paid-in capital		1,334,776			1,334,776
Accumulated other comprehensive income		3,544			4,358
Accumulated distributions in excess of accumulated earnings		(569,035)			(570,408)
Total stockholders’ equity		769,295			768,736
Total liabilities and stockholders’ equity	$	1,213,682		$	1,241,666

-7- Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	For the
	Three Months Ended
	March 31,
(in thousands)	2023		****	2022
Cash flows from operating activities:
Net income (loss)	$	2,406		$	(4,158)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense		15,316			16,195
Amortization of above and below market leases		(18)			(9)
Amortization of other comprehensive income into interest expense		(662)			—
Loss on extinguishment of debt		67			—
Gain on consolidation of Sponsored REIT		(394)			—
Gain on sale of properties, net		(8,392)			—
Changes in operating assets and liabilities:
Tenant rent receivables		(1,105)			(87)
Straight-line rents		(332)			(1,216)
Lease acquisition costs		(818)			(1,069)
Prepaid expenses and other assets		(513)			(1,274)
Accounts payable and accrued expenses		(3,317)			(10,568)
Accrued compensation		(2,455)			(3,498)
Tenant security deposits		30			(382)
Payment of deferred leasing commissions		(908)			(3,706)
Net cash used in operating activities		(1,095)			(9,772)
Cash flows from investing activities:
Property improvements, fixtures and equipment		(11,420)			(9,952)
Consolidation of Sponsored REIT		3,048			—
Proceeds received from sales of properties		28,098			—
Net cash provided by (used in) investing activities		19,726			(9,952)
Cash flows from financing activities:
Distributions to stockholders		(1,033)			(42,640)
Proceeds received from termination of interest rate swap		4,206			—
Stock repurchases		—			(4,843)
Borrowings under bank note payable		57,000			45,000
Repayments of bank note payable		(30,000)			(5,000)
Repayments of term loans payable		(40,000)			—
Deferred financing costs		(2,326)			(2,561)
Net cash used in financing activities		(12,153)			(10,044)
Net increase (decrease) in cash, cash equivalents and restricted cash		6,478			(29,768)
Cash, cash equivalents and restricted cash, beginning of year		6,632			40,751
Cash, cash equivalents and restricted cash, end of period	$	13,110		$	10,983

-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	256,233	4.1%
2024	705,840	11.3%
2025	436,447	7.0%
2026	608,427	9.7%
2027	321,740	5.1%
Thereafter (2)	3,934,539	62.8%
	6,263,226	100.0%

(1)	Percentages are determined based upon total square footage.
(2)	Includes 1,785,876 square feet of vacancies at our owned and consolidated properties as of March 31, 2023.
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(dollars & square feet in 000's)	As of March 31, 2023
				% of	Square	% of
State	Properties	Investment		Portfolio	Feet	Portfolio

Colorado	4	$	460,360	42.0%	2,133	34.0%
Texas	9		331,302	30.2%	2,423	38.7%
Georgia	1		52,854	4.8%	160	2.6%
Minnesota	3		120,745	11.0%	758	12.1%
Virginia	1		32,008	2.9%	298	4.8%
Florida	1		70,510	6.5%	213	3.4%
Indiana	1		19,609	1.8%	214	3.4%
North Carolina	1		8,527	0.8%	64	1.0%
Total	21	$	1,095,915	100.0%	6,263	100.0%

-9- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

Recurring Capital Expenditures



(in thousands)	For the Three Months Ended
	31-Mar-23
Tenant improvements	$	3,047
Deferred leasing costs		908
Non-investment capex		2,967
	$	6,922



	For the Three Months Ended								Year 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


Square foot & leased percentages	March 31,	December 31,
	2023	2022
Owned Properties:
Number of properties	20	21
Square feet	6,049,466	6,239,530
Leased percentage	73.9%	75.6%

Consolidated Property - Single Asset REIT (SAR):
Number of properties	1	—
Square feet	213,760	—
Leased percentage	4.1%

Total Owned and Consolidated Properties:
Number of properties	21	21
Square feet	6,263,226	6,239,530
Leased percentage	71.5%	75.6%

-10- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)


									Fourth				First
							% Leased (1)		Quarter		% Leased (1)		Quarter
							as of		Average %		as of		Average %
	Property Name	****	Location	****	Square Feet	****	31-Dec-22	****	Leased (2)	****	31-Mar-23	****	Leased (2)	****

1	FOREST PARK		Charlotte, NC		64,198		78.4%		78.4%		78.4%		78.4%
	NORTHWEST POINT		Elk Grove Village, IL		—		100.0%		100.0%		(3)		(3)
2	PARK TEN		Houston, TX		157,609		78.1%		76.1%		90.8%		86.6%
3	PARK TEN PHASE II		Houston, TX		156,746		95.0%		95.0%		95.0%		95.0%
4	GREENWOOD PLAZA		Englewood, CO		196,236		66.3%		66.3%		66.3%		66.3%
5	ADDISON		Addison, TX		289,333		83.0%		83.0%		83.0%		83.0%
6	COLLINS CROSSING		Richardson, TX		300,887		96.1%		96.1%		97.1%		96.8%
7	INNSBROOK		Glen Allen, VA		298,183		47.8%		47.8%		47.8%		47.8%
8	LIBERTY PLAZA		Addison, TX		217,841		72.9%		74.7%		72.9%		72.9%
9	BLUE LAGOON		Miami, FL		213,182		98.5%		98.5%		98.5%		98.5%
10	ELDRIDGE GREEN		Houston, TX		248,399		100.0%		100.0%		100.0%		100.0%
11	121 SOUTH EIGHTH ST		Minneapolis, MN		298,121		85.2%		86.3%		84.5%		84.5%
12	801 MARQUETTE AVE		Minneapolis, MN		129,691		91.8%		91.8%		91.8%		91.8%
13	LEGACY TENNYSON CTR		Plano, TX		209,461		49.0%		46.2%		49.0%		49.0%
14	ONE LEGACY		Plano, TX		214,110		64.7%		64.7%		69.3%		69.3%
15	WESTCHASE I & II		Houston, TX		629,025		63.5%		63.7%		59.0%		60.3%
16	1999 BROADWAY		Denver, CO		680,255		66.9%		66.9%		61.9%		65.2%
17	1001 17TH STREET		Denver, CO		644,785		70.2%		70.1%		70.8%		70.3%
18	PLAZA SEVEN		Minneapolis, MN		330,096		79.3%		79.3%		65.0%		71.6%
19	PERSHING PLAZA		Atlanta, GA		160,145		79.2%		79.2%		79.8%		79.8%
20	600 17TH STREET		Denver, CO		611,163		78.3%		78.0%		80.5%		79.3%
	OWNED PORTFOLIO				6,049,466		75.6%		75.9%		73.9%		74.9%

21	MONUMENT CIRCLE (4)		Charlotte, NC		213,760		(4)		(4)		4.1%		4.1%

	OWNED & CONSOLIDATED PORTFOLIO				6,263,226		75.6%		75.9%		71.5%		72.5%

(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.
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(3)	Property was sold on March 10, 2023.
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(4)	Consolidated property as of January 1, 2023, previously was a managed property.
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-11- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule G

Largest 20 Tenants – FSP Owned and Consolidated Portfolio

(Unaudited & Estimated)

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

As of March 31, 2023


			% 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	Kaiser Foundation Health Plan	120,979	1.9%
6	Argo Data Resource Corporation	114,200	1.8%
7	Swift, Currie, McGhee & Hiers, LLP	101,296	1.6%
8	Deluxe Corporation	98,922	1.6%
9	Ping Identity Corp.	89,856	1.4%
10	Permian Resources Operating, LLC	67,856	1.1%
11	Bread Financial Payments, Inc.	67,274	1.1%
12	PricewaterhouseCoopers LLP	66,304	1.1%
13	Hall and Evans LLC	65,878	1.1%
14	Cyxtera Management, Inc.	61,826	1.0%
15	Precision Drilling (US) Corporation	59,569	1.0%
16	Schwegman, Lundberg & Woessner, P.A.	58,263	0.9%
17	EMC Corporation	57,100	0.9%
18	ID Software, LLC	57,100	0.9%
19	Olin Corporation	54,080	0.9%
20	Unique Vacations	53,119	0.8%
	Total	1,935,569	31.0%

-12- Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

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

Adjusted Funds From Operations (“AFFO”)

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


Reconciliation of Net Income to FFO and AFFO:	Three Months Ended
	March 31,
(In thousands, except per share amounts)	2023		2022
Net income (loss)	$	2,406	$	(4,158)
Gain on consolidation of Sponsored REIT		(394)		—
Gain on sale of properties, net		(8,392)		—
Depreciation & amortization		14,709		15,661
NAREIT FFO		8,329		11,503
Lease Acquisition costs		78		79
Funds From Operations (FFO)	$	8,407	$	11,582

Funds From Operations (FFO)	$	8,407	$	11,582
Loss on extinguishment of debt		67		—
Amortization of deferred financing costs		589		526
Straight-line rent		(331)		(1,216)
Tenant improvements		(3,047)		(1,877)
Leasing commissions		(908)		(3,032)
Non-investment capex		(2,967)		(5,065)
Adjusted Funds From Operations (AFFO)	$	1,810	$	918

Per Share Data
EPS	$	0.02	$	(0.04)
FFO	$	0.08	$	0.11
AFFO	$	0.02	$	0.01

Weighted average shares (basic and diluted)		103,236		103,691

-13- Funds From Operations (“FFO”)

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

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

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

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

Adjusted Funds From Operations (“AFFO”)

The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding 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. 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 all periods presented. We exclude properties that have been placed in service, but that do not have operating activity for all periods presented, dispositions and significant nonrecurring income such as bankruptcy settlements and lease termination fees. NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company’s liquidity or its ability to make distributions. The calculations of NOI and Sequential Same Store are shown in the following table:


		Rentable												****
		Square Feet		Three Months Ended			Three Months Ended			Inc			%	****
(in thousands)	****	or RSF	****	31-Mar-23		****	31-Dec-22		****	(Dec)		****	Change	****
Region
East		362		$	478		$	526		$	(48)		(9.1)	%
MidWest		758			2,239			2,406			(167)		(6.9)	%
South		2,797			7,933			7,896			37		0.5	%
West		2,132			6,422			6,028			394		6.5	%
Property NOI* from Owned Properties		6,049			17,072			16,856			216		1.3	%
Disposition and Acquisition Properties (a)		214			668			1,359			(691)		(3.9)	%
NOI*		6,263		$	17,740		$	18,215		$	(475)		(2.6)	%

Sequential Same Store				$	17,072		$	16,856		$	216		1.3	%

Less Nonrecurring
Items in NOI* (b)					1,292			818			474		(2.9)	%

Comparative
Sequential Same Store				$	15,780		$	16,038		$	(258)		(1.6)	%

-15-


	Three Months Ended		Three Months Ended
Reconciliation to Net income (loss)	31-Mar-23		31-Dec-22
Net income (loss)	$	2,406	$	(2,884)
Add (deduct):
Loss on extinguishment of debt		67		—
Gain on consolidation of Sponsored REIT		(394)		—
Impairment and loan loss reserve		—		2,380
Gain on sale of properties, net		(8,392)		(3,862)
Management fee income		(374)		(295)
Depreciation and amortization		14,727		14,805
Amortization of above/below market leases		(18)		(30)
General and administrative		3,817		2,888
Interest expense		5,806		5,668
Interest income		—		(460)
Non-property specific items, net		95		5


NOI*	$	17,740	$	18,215

(a)	We define Disposition and Acquisition Properties as properties that were sold or acquired or consolidated and 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


	First Quarter 2023 Table of Contents


	Page			Page

Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry		17
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term		18-19
Financial Highlights	4	Leasing Activity		20
Income Statements	5	Lease Expirations by Square Feet		21
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot		22
Cash Flow Statements	7	Capital Expenditures		23
Property Net Operating Income (NOI)	8

Reconciliation		Disposition Activity		24
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate		25
Property NOI	11
		Net Asset Value Components		26
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO		27
		EBITDA and NOI		28
Owned and Consolidated Portfolio Overview	14-16	AFFO		29
<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 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.

			1999 Broadway, Denver, CO

March 31, 2023| Page 2


	Company Information

Overview		Snapshot (as of March 31, 2023)
<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
			Owned & Consolidated Properties	<br><br>21
			Total Square Feet	6.3 Million
			Trading Symbol	FSP
			Exchange	NYSE American
			Common Shares Outstanding	103,235,914

Our Business		Total Market Capitalization	$0.6 Billion (1)
As of March 31, 2023, the Company owned a portfolio of real estate consisting of 20 owned properties and one consolidated 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	6.06%



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	600 17^th^ Street, 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.

March 31, 2023| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	****	31-Mar-23		****	31-Dec-22		30-Sep-22		****	30-Jun-22		****	31-Mar-22
Income Items:
Rental revenue		$	37,767		$	40,745	$	40,366		$	40,831		$	41,797
Total revenue			37,767			41,211		40,836			41,304			42,264
Net income (loss)			2,406			(2,884)		17,246			(9,110)			(4,158)
Adjusted EBITDA*			14,269			16,112		15,250			15,891			16,918
FFO*			8,407			10,463		9,041			10,257			11,582
AFFO*			1,810			(8,681)		(9,735)			(4,072)			918

Per Share Data:
EPS		$	0.02		$	(0.03)	$	0.17		$	(0.09)		$	(0.04)
FFO*		$	0.08		$	0.10	$	0.09		$	0.10		$	0.11
AFFO*		$	0.02		$	(0.08)	$	(0.09)		$	(0.04)		$	0.01
Weighted Average Shares (diluted)			103,236			103,236		103,236			103,193			103,691
Closing share price		$	1.57		$	2.73	$	2.63		$	4.17		$	5.90
Dividend declared		$	0.01		$	0.01	$	0.01		$	0.09		$	0.09

Balance Sheet Items:
Real estate, net		$	1,095,915		$	1,103,248	$	1,118,983		$	1,186,157		$	1,187,348
Other assets, net			117,767			138,418		143,087			145,562			149,772
Total assets, net			1,213,682			1,241,666		1,262,070			1,331,719			1,337,120
Total liabilities, net			444,387			472,930		489,509			577,687			567,234
Shareholders' equity			769,295			768,736		772,561			754,032			769,886

Market Capitalization and Debt:
Total Market Capitalization (a)		$	562,080		$	694,834	$	701,510		$	960,494		$	1,123,596
Total debt outstanding (excluding unamortized financing costs)		$	400,000		$	413,000	$	430,000		$	530,000		$	515,000
Debt to Total Market Capitalization			71.2%			59.4%		61.3%			55.2%			45.8%
Net Debt to Adjusted EBITDA ratio*			6.8			6.3		6.9			8.3			7.4

Owned Properties Leasing Statistics (b):
Owned properties assets			20			21		22			24			24
Owned properties total SF			6,049,466			6,239,530		6,433,954			6,915,715			6,915,609
Owned properties % leased			73.9%			75.6%		75.9%			76.3%			77.3%

(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 one property known as Monument Circle that was consolidated in our financial statements effective January 1, 2023. Please see the note: Consolidation of Sponsored REIT on page 25 for more information.
---	---

*	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 27.

March 31, 2023| Page 4

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


											For the
	For the Three Months Ended		For the Three Months Ended								Year Ended
	31-Mar-23		31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22

Revenue:
Rental	$	37,767	$	41,797	$	40,831	$	40,366	$	40,745	$	163,739
Related party revenue:
Management fees and interest income from loans		—		460		467		466		462		1,855
Other		—		7		6		4		4		21
Total revenue		37,767		42,264		41,304		40,836		41,211		165,615

Expenses:
Real estate operating expenses		12,690		12,834		12,344		13,369		14,273		52,820
Real estate taxes and insurance		6,973		8,719		9,043		8,951		7,907		34,620
Depreciation and amortization		14,727		15,670		18,186		15,148		14,804		63,808
General and administrative		3,817		3,784		3,981		3,232		2,888		13,885
Interest		5,806		5,366		5,664		6,110		5,668		22,808
Total expenses		44,013		46,373		49,218		46,810		45,540		187,941

Loss on extinguishment of debt		(67)		—		—		(78)		—		(78)
Gain on consolidation of Sponsored REIT		394		—		—		—		—		—
Impairment and loan loss reserve		—		—		(1,140)		(717)		(2,380)		(4,237)
Gain on sale of properties, net		8,392		—		—		24,077		3,862		27,939
Income (loss) before taxes on income		2,473		(4,109)		(9,054)		17,308		(2,847)		1,298
Tax expense on income		67		49		56		62		37		204

Net income (loss)	$	2,406	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094

Weighted average number of shares outstanding, basic and diluted		103,236		103,691		103,193		103,236		103,236		103,338

Net income (loss) per share, basic and diluted	$	0.02	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01

March 31, 2023| Page 5

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


	March 31,		March 31,		June 30,		September 30,		December 31,
	2023		2022		2022		2022		2022
Assets:
Real estate assets:
Land	$	130,147	$	146,844	$	146,844	$	131,556	$	126,645
Buildings and improvements		1,367,629		1,465,312		1,477,913		1,397,303		1,388,869
Fixtures and equipment		11,411		11,819		12,192		10,656		11,151
		1,509,187		1,623,975		1,636,949		1,539,515		1,526,665
Less accumulated depreciation		413,272		436,627		450,792		420,532		423,417
Real estate assets, net		1,095,915		1,187,348		1,186,157		1,118,983		1,103,248

Acquired real estate leases, net		9,620		13,453		12,373		11,177		10,186
Cash, cash equivalents and restricted cash		13,110		10,983		4,693		8,717		6,632
Tenant rent receivables, net		3,306		2,041		2,627		1,309		2,201
Straight-line rent receivable, net		51,703		51,309		54,354		50,885		52,739
Prepaid expenses and other assets		6,125		7,403		6,863		6,961		6,676
Related party mortgage loan receivable, less allowance for credit loss		—		24,000		22,860		22,143		19,763
Other assets: derivative asset		—		—		1,951		4,266		4,358
Office computers and furniture, net of accumulated depreciation		145		204		187		170		154
Deferred leasing commissions, net		33,758		40,379		39,654		37,459		35,709
Total assets	$	1,213,682	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	75,000	$	40,000	$	55,000	$	65,000	$	48,000
Term loan payable, net of unamortized financing costs		124,365		274,402		274,518		164,692		164,750
Series A & Series B Senior Notes		199,547		199,383		199,424		199,465		199,506
Accounts payable and accrued expenses		37,720		44,700		39,315		50,371		50,366
Accrued compensation		1,189		1,206		2,252		3,159		3,644
Tenant security deposits		5,740		5,837		5,819		5,726		5,710
Lease liability		655		1,061		962		862		759
Other liabilities: derivative liabilities		—		195		—		—		—
Acquired unfavorable real estate leases, net		171		450		397		234		195
Total liabilities		444,387		567,234		577,687		489,509		472,930

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—		—		—		—		—
Common stock		10		10		10		10		10
Additional paid-in capital		1,334,776		1,334,383		1,334,776		1,334,776		1,334,776
Accumulated other comprehensive (income) loss		3,544		(195)		1,951		4,266		4,358
Accumulated distributions in excess of accumulated earnings		(569,035)		(564,312)		(582,705)		(566,491)		(570,408)
Total stockholders’ equity		769,295		769,886		754,032		772,561		768,736
Total liabilities and stockholders’ equity	$	1,213,682	$	1,337,120	$	1,331,719	$	1,262,070	$	1,241,666

March 31, 2023| Page 6

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


		Three Months Ended March 31,

		2023		2022
Cash flows from operating activities:
Net income (loss)	$	2,406	$	(4,158)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense		15,316		16,195
Amortization of above and below market leases		(18)		(9)
Amortization of other comprehensive income into interest expense		(662)		—
Loss on extinguishment of debt		67		—
Gain on consolidation of Sponsored REIT		(394)		—
Gain on sale of properties, net		(8,392)		—
Changes in operating assets and liabilities:
Tenant rent receivables		(1,105)		(87)
Straight-line rents		(332)		(1,216)
Lease acquisition costs		(818)		(1,069)
Prepaid expenses and other assets		(513)		(1,274)
Accounts payable and accrued expenses		(3,317)		(10,568)
Accrued compensation		(2,455)		(3,498)
Tenant security deposits		30		(382)
Payment of deferred leasing commissions		(908)		(3,706)
Net cash used in operating activities		(1,095)		(9,772)

Cash flows from investing activities:
Property improvements, fixtures and equipment		(11,420)		(9,952)
Consolidation of Sponsored REIT		3,048		—
Proceeds received from sales of properties		28,098		—
Net cash provided by (used in) investing activities		19,726		(9,952)

Cash flows from financing activities:
Distributions to stockholders		(1,033)		(42,640)
Stock repurchases		—		(4,843)
Proceeds received from termination of interest rate swap		4,206		—
Borrowings under bank note payable		57,000		45,000
Repayments of bank note payable		(30,000)		(5,000)
Repayment of term loan payable		(40,000)		—
Deferred financing costs		(2,326)		(2,561)
Net cash used in financing activities		(12,153)		(10,044)
Net increase (decrease) in cash, cash equivalents and restricted cash		6,478		(29,768)
Cash, cash equivalents and restricted cash, beginning of period		6,632		40,751
Cash, cash equivalents and restricted cash, end of period	$	13,110	$	10,983

March 31, 2023| Page 7

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


		Rentable																								****
		Square Feet		Three Months Ended				Three Months Ended											Year Ended			Inc			%	****
(in thousands)	****	or RSF	****	31-Mar-23		****	****	31-Mar-22		****	30-Jun-22		****	30-Sep-22		31-Dec-22		****	31-Dec-22		****	(Dec)		****	Change	****
Region
East		362		$	478			$	497		$	474		$	392	$	526		$	1,889		$	(19)		(3.8)	%
MidWest		758			2,239				2,478			3,038			2,486		2,406			10,408			(239)		(9.6)	%
South		2,797			7,933				5,817			5,611			5,902		7,896			25,226			2,116		36.4	%
West		2,132			6,422				8,070			6,609			6,401		6,028			27,108			(1,648)		(20.4)	%
Property NOI* from Owned Properties		6,049			17,072				16,862			15,732			15,181		16,856			64,631			210		1.2	%
Disposition and Acquisition Properties (a)		214			668				2,719			3,386			2,487		1,359			9,951			(2,051)		(10.6)	%
Property NOI*		6,263		$	17,740			$	19,581		$	19,118		$	17,668	$	18,215		$	74,582		$	(1,841)		(9.4)	%

Same Store				$	17,072			$	16,862		$	15,732		$	15,181	$	16,856		$	64,631		$	210		1.2	%

Less Nonrecurring
Items in NOI* (b)					1,292				273			1,258			494		818			2,843			1,019		(6.1)	%

Comparative
Same Store				$	15,780			$	16,589		$	14,474		$	14,687	$	16,038		$	61,788		$	(809)		(4.9)	%

(a)	We define Disposition and Acquisition Properties as properties that were sold or acquired or consolidated and 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 27.

March 31, 2023| Page 8

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


											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-23		31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22

Net income (loss)	$	2,406	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094
Gain on consolidation of Sponsored REIT		(394)		—		—		—		—		—
Impairment and loan loss reserve		—		—		1,140		717		2,380		4,237
Gain on sale of properties, net		(8,392)		—		—		(24,077)		(3,862)		(27,939)
Depreciation & amortization		14,709		15,661		18,141		15,114		14,773		63,689
NAREIT FFO*		8,329		11,503		10,171		9,000		10,407		41,081
Lease Acquisition costs		78		79		86		41		56		262
Funds From Operations (FFO)*	$	8,407	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	8,407	$	11,582	$	10,257	$	9,041	$	10,463	$	41,343
Loss on extinguishment of debt		67		—		—		78		—		78
Amortization of deferred financing costs		589		526		481		461		421		1,889
Shares issued as compensation		—		—		394		—		—		394
Straight-line rent		(331)		(1,216)		(1,688)		(1,160)		(1,831)		(5,895)
Tenant improvements		(3,047)		(1,877)		(5,453)		(6,813)		(7,508)		(21,651)
Leasing commissions		(908)		(3,032)		(1,327)		(2,053)		(1,152)		(7,564)
Non-investment capex		(2,967)		(5,065)		(6,736)		(9,289)		(9,074)		(30,164)
Adjusted Funds From Operations (AFFO)*	$	1,810	$	918	$	(4,072)	$	(9,735)	$	(8,681)	$	(21,570)

Per Share Data:
EPS	$	0.02	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01
FFO*		0.08		0.11		0.10		0.09		0.10		0.40
AFFO*		0.02		0.01		(0.04)		(0.09)		(0.08)		(0.21)

Weighted Average Shares (basic and diluted)		103,236		103,691		103,193		103,236		103,236		103,338

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 27.

March 31, 2023| Page 9

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


												Year
	Three Months Ended			Three Months Ended								Ended
	31-Mar-23		****	31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22

Net income (loss)	$	2,406		$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094
Interest expense		5,806			5,366		5,664		6,110		5,668		22,808
Depreciation and amortization		14,709			15,661		18,141		15,114		14,773		63,689
Income taxes		67			49		56		62		37		204
EBITDA*	$	22,988		$	16,918	$	14,751	$	38,532	$	17,594	$	87,795
Loss on extinguishment of debt		67			—		—		78		—		78
Gain on consolidation of Sponsored REIT		(394)			—		—		—		—		—
Impairment and loan loss reserve		—			—		1,140		717		2,380		4,237
Gain on sale of properties, net		(8,392)			—		—		(24,077)		(3,862)		(27,939)
Adjusted EBITDA*	$	14,269		$	16,918	$	15,891	$	15,250	$	16,112	$	64,171

Interest expense	$	5,806		$	5,366	$	5,664	$	6,110	$	5,668	$	22,808
Scheduled principal payments		—			—		—		—		—		—
Interest and scheduled principal payments	$	5,806		$	5,366	$	5,664	$	6,110	$	5,668	$	22,808

Interest coverage ratio		2.46			3.15		2.81		2.50		2.84		2.81

Debt service coverage ratio		2.46			3.15		2.81		2.50		2.84		2.81

Debt excluding unamortized financing costs	$	400,000		$	515,000	$	530,000	$	430,000	$	413,000
Cash, cash equivalents and restricted cash		13,110			10,983		4,693		8,717		6,632
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	386,890		$	504,017	$	525,307	$	421,283	$	406,368

Adjusted EBITDA*	$	14,269		$	16,918	$	15,891	$	15,250	$	16,112
Annualized	$	57,076		$	67,672	$	63,564	$	61,000	$	64,448

Net Debt-to-Adjusted EBITDA ratio*		6.8			7.4		8.3		6.9		6.3

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 27.

March 31, 2023| Page 10

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


											Year
	Three Months Ended		Three Months Ended								Ended
	31-Mar-23		31-Mar-22		30-Jun-22		30-Sep-22		31-Dec-22		31-Dec-22
Net income (loss)	$	2,406	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094
Add (deduct):
Loss on extinguishment of debt		67		—		—		78		—		78
Gain on consolidation of Sponsored REIT		(394)		—		—		—		—		—
Impairment and loan loss reserve		—		—		1,140		717		2,380		4,237
Gain on sale of properties, net		(8,392)		—		—		(24,077)		(3,862)		(27,939)
Management fee income		(374)		(291)		(267)		(274)		(295)		(1,127)
Depreciation and amortization		14,727		15,670		18,185		15,148		14,805		63,808
Amortization of above/below market leases		(18)		(9)		(45)		(34)		(30)		(118)
General and administrative		3,817		3,784		3,981		3,233		2,888		13,886
Interest expense		5,806		5,366		5,664		6,110		5,668		22,808
Interest income		—		(451)		(455)		(461)		(460)		(1,827)
Non-property specific items, net		95		(330)		25		(18)		5		(318)
Property NOI*	$	17,740	$	19,581	$	19,118	$	17,668	$	18,215	$	74,582

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 27.

March 31, 2023| 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-Mar-23		Components			31-Mar-23	Fee

BofA Revolver	1-Oct-24	$	150,000	$	75,000	SOFR	+	3.00%	7.92%	0.35%
BMO Term Loan Tranche B	1-Oct-24		125,000		125,000	SOFR	+	3.00%	7.91%
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%

		$	475,000	$	400,000				6.26%

●	The table above is a summary of our debt as of March 31, 2023. Additional information on our debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2022, 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 $237.5 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.
---	---
●	As of March 31, 2023, the BofA Revolver was subject to a 35 basis point facility fee on the unused portion of the facility.
---	---
●	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.

March 31, 2023| Page 12

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


		31-Mar-23				31-Mar-22			30-Jun-22			30-Sep-22			31-Dec-22
Market Data:	****			****	****			****			****			****			****
Shares Outstanding			103,236				103,152			103,236			103,236			103,236
Closing market price per share		$	1.57			$	5.90		$	4.17		$	2.63		$	2.73
Market capitalization		$	162,080			$	608,596		$	430,494		$	271,510		$	281,834
Total debt outstanding excluding unamortized financing costs			400,000				515,000			530,000			430,000			413,000
Total Market Capitalization		$	562,080			$	1,123,596		$	960,494		$	701,510		$	694,834

Dividend Data:
Total dividends declared for the quarter		$	1,033			$	9,360		$	9,284		$	1,032		$	1,032
Common dividend declared per share		$	0.01			$	0.09		$	0.09		$	0.01		$	0.01
Declared dividend as a % of Net income (loss) per share			43%				(224)%			(102)%			6%			(36)%
Declared dividend as a % of AFFO* per share			57%				1017%			(228)%			(11)%			(12)%

Liquidity:
Cash, cash equivalents and restricted cash		$	13,110			$	10,983		$	4,693		$	8,717		$	6,632
Revolver:
Gross potential available under the BofA Revolver			150,000				237,500			237,500			237,500			237,500
Less:
Outstanding balance			(75,000)				(40,000)			(55,000)			(65,000)			(48,000)
Total Liquidity		$	88,110			$	208,483		$	187,193		$	181,217		$	196,132

*	See page 9 for a reconciliation of Net Income (Loss) to AFFO and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 27.

March 31, 2023| Page 13

	<br><br>
	Owned & Consolidated Portfolio Overview


		As of the Quarter Ended
	****	31-Mar-23	31-Dec-22	30-Sep-22	30-Jun-22	31-Mar-22	****
Total Owned Properties:
Number of properties		20	21	22	24	24
Square feet		6,049,466	6,239,530	6,433,954	6,915,715	6,915,609
Leased percentage		73.9%	75.6%	75.9%	76.3%	77.3%

Consolidated Property - Single Asset REIT (SAR):
Number of properties		1	—	—	—	—
Square feet		213,760	—	—	—	—
Leased percentage		4.1%

Total Owned and Consolidated Properties:
Number of properties		21	21	22	24	24
Square feet		6,263,226	6,239,530	6,433,954	6,915,715	6,915,609
Leased percentage		71.5%	75.6%	75.9%	76.3%	77.3%

March 31, 2023| Page 14

	<br><br>
	Owned & Consolidated 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														Minneapolis
Innsbrook		Glen Allen		VA		298,183		47.8%		47.8%		$	19.33	121 South 8th Street		Minneapolis		MN		298,121		84.5%		84.5%		$	25.06
														801 Marquette Ave		Minneapolis		MN		129,691		91.8%		91.8%			24.35
Charlotte, NC														Plaza Seven		Minneapolis		MN		330,096		65.0%		71.6%			29.74
Forest Park		Charlotte		NC		64,198		78.4%		78.4%			23.43
														Indianapolis, IN
														Monument Circle (c)		Indianapolis		IN		213,760		4.1%		4.1%			31.97









East Region Total						362,381		53.2%		53.2%		$	20.40	Midwest Region Total						971,668		61.1%		63.4%		$	26.82

(a)	Weighted Occupied Percentage for the three months ended March 31, 2023.
(b)	Weighted Average GAAP Rent per Occupied Square Foot.
---	---
(c)	Consolidated as of January 1, 2023, property held by Single Asset REIT (SAR).
---	---

March 31, 2023| Page 15

	<br><br>
	Owned & Consolidated 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%		49.0%		$	29.05	1999 Broadway		Denver		CO		680,255		61.9%		65.0%		$	34.25
One Legacy Circle		Plano		TX		214,110		69.3%		63.7%			38.64	Greenwood Plaza		Englewood		CO		196,236		66.3%		66.3%			26.44
Addison Circle		Addison		TX		289,333		83.0%		83.0%			34.63	1001 17th Street		Denver		CO		644,785		70.8%		69.9%			37.92
Collins Crossing		Richardson		TX		300,887		97.1%		96.1%			26.38	600 17th Street		Denver		CO		611,163		80.5%		76.8%			34.96
Liberty Plaza		Addison		TX		217,841		72.9%		72.9%			24.08
														West Region Total						2,132,439		70.3%		70.0%		$	34.90
Houston
Park Ten		Houston		TX		157,609		90.8%		72.0%			28.79	Total Owned & Consolidated Properties						6,263,226		71.5%		70.1%		$	31.06
Eldridge Green		Houston		TX		248,399		100.0%		100.0%			26.68
Park Ten Phase II		Houston		TX		156,746		95.0%		95.0%			29.13
Westchase I & II		Houston		TX		629,025		59.0%		58.6%			27.34

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive		Miami		FL		213,182		98.5%		73.6%			41.87

Atlanta
Pershing Plaza		Atlanta		GA		160,145		79.8%		79.8%			39.03

South Region Total						2,796,738		78.4%		74.8%		$	30.55

(a)	Weighted Occupied Percentage for the three months ended ended March 31, 2023.
(b)	Weighted Average GAAP Rent per Occupied Square Foot.
---	---

March 31, 2023| Page 16

	<br><br>
	Tenants by Industry<br><br>(Owned and Consolidated Properties by Square Feet)<br><br>

March 31, 2023| Page 17

	<br><br>
	20 Largest Tenants with Annualized Rent and Remaining Term<br><br>(Owned and Consolidated Properties)


					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		120		248,399		4.0%		$	7,064,468		5.1%
2	EOG Resources, Inc.		1		45		169,167		2.7%			6,237,187		4.5%
3	US Government (b)		2		34, 94		168,573		2.7%			6,339,490		4.5%
4	Lennar Homes, LLC		1		168		155,808		2.5%			6,450,451		4.6%
5	Kaiser Foundation Health Plan		1		14		120,979		1.9%			3,971,812		2.8%
6	Argo Data Resource Corporation (c)		1		5, 89		114,200		1.8%			3,444,272		2.5%
7	Swift, Currie, McGhee & Hiers, LLP		1		126		101,296		1.6%			4,111,908		3.0%
8	Deluxe Corporation		1		172		98,922		1.6%			2,955,910		2.1%
9	Ping Identity Corp.		1		39		89,856		1.4%			3,673,313		2.6%
10	Permian Resources Operating, LLC		1		103		67,856		1.1%			2,876,416		2.1%
11	Bread Financial Payments, Inc.		1		39		67,274		1.1%			2,828,872		2.0%
12	PricewaterhouseCoopers LLP		1		70		66,304		1.1%			2,323,323		1.7%
13	Hall and Evans LLC		1		77		65,878		1.1%			2,516,081		1.8%
14	Cyxtera Management, Inc.		1		82		61,826		1.0%			2,404,413		1.7%
15	Precision Drilling (US) Corporation		1		62		59,569		1.0%			2,059,896		1.5%
16	Schwegman, Lundberg & Woessner, P.A. (d)		1		2, 58		58,263		0.9%			1,748,141		1.3%
17	EMC Corporation		1		18		57,100		0.9%			1,727,275		1.2%
18	ID Software, LLC		1		74		57,100		0.9%			1,687,605		1.2%
19	Olin Corporation		1		84		54,080		0.9%			1,684,592		1.2%
20	Unique Vacations (e)		1		130		53,119		0.8%			—		0.0%

					Total		1,935,569		31.0%		$	66,105,425		47.4%

Footnotes on next page

March 31, 2023| Page 18

	<br><br>
	20 Largest Tenants with Annualized Rent and Remaining Term<br><br>(Owned and Consolidated Properties)

Footnotes:

(a) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at March 31, 2023 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.

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

(e) Lease commences on June 1, 2023 and rent commences on April 1, 2024.

March 31, 2023| Page 19

	<br><br>
	Leasing Activity<br><br>(Owned and Consolidated Properties)


					Year		Year
	Three Months Ended				Ended		Ended
Leasing Activity		31-Mar-23		31-Mar-22		31-Dec-22		31-Dec-21
(in Square Feet - SF)
New leasing		48,000		103,000		275,000		370,000
Renewals and expansions		81,000		28,000		160,000		665,000
		129,000		131,000		435,000		1,035,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	32.87	$	33.35	$	33.27		30.86
Weighted average lease term		6.1 Years		8.6 Years		6.4 Years		7.7 Years

Increase over average GAAP rents in prior year (a)		5.7%		2.4%		10.6%		2.5%

Average free rent		5 Months		8 Months		6 Months		7 Months
Tenant Improvements	$	28.53	$	52.16	$	31.86		25.89
Leasing Costs	$	9.71	$	18.10	$	11.80		11.45

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

March 31, 2023| Page 20

	<br><br>
	Lease Expirations by Square Feet<br><br>(Owned and Consolidated Properties)

March 31, 2023| Page 21

	<br><br>
	Lease Expirations with Annualized Rent per Square Foot (SF)<br><br>(Owned and Consolidated Properties)


			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 (e)		Leases (b)		Leases		Leases	Total

2023	31	(c)	256,233		$	7,825,299	$	30.54	5.6%	5.6%
2024	50		705,840			22,977,057		32.55	16.5%	22.1%
2025	55		436,447			14,482,960		33.18	10.4%	32.5%
2026	41		608,427			21,213,977		34.87	15.2%	47.7%
2027	22		321,740			9,726,005		30.23	7.0%	54.7%
2028	22		280,102			7,931,928		28.32	5.7%	60.4%
2029	16		350,900			10,408,862		29.66	7.5%	67.9%
2030	11		292,715			9,262,533		31.64	6.6%	74.5%
2031	8		271,904			10,028,022		36.88	7.2%	81.7%
2032	—		—			—		—	0.0%	81.7%
2033 and thereafter	51		953,042	(d)		25,587,065		26.85	18.3%	100.0%
Leased total	307		4,477,350		$	139,443,708	$	31.14	100.0%
Owned property vacant SF			1,580,831
Monument Circle vacant SF (e)			205,045
Total Portfolio Square Footage			6,263,226

(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 March 31, 2023 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.
---	---
(c)	Includes 2 leases that are month-to-month.
---	---
(d)	Includes 66,666 square feet that are non-revenue producing building amenities.
---	---
(e)	Includes one property known as Monument Circle that was consolidated in our financial statements effective January 1, 2023. Please see the note: Consolidation of Sponsored REIT on page 25 for more information.
---	---

March 31, 2023| Page 22

	<br><br>
	Capital Expenditures<br><br>(Owned and Consolidated Properties)


(in thousands)
	For the Three Months Ended
	31-Mar-23

Tenant improvements	$	3,047
Deferred leasing costs		908
Non-investment capex		2,967
Total Capital Expenditures	$	6,922


	For the Three Months Ended								Year 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

First generation leasing and investment capital was $0.3 million for the three months ended March 31, 2023 and $9.0 million for the year ended December 31, 2022.

March 31, 2023| Page 23

	<br><br>
	Disposition Activity<br><br>(in thousands except for Square Feet)


Recent Dispositions:										Gross Sale			Gain (loss)
	****	City	****	State	****	Square Feet	****	Date Sold	****	Proceeds		****	on Sale		****
2023
Northwest Point		Elk Grove		IL		177,095		3/10/23		$	29,125		$	8,392

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

March 31, 2023| Page 24

	<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-Mar-23		31-Mar-23

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.

This mortgage loan secured by the property has been eliminated in consolidation, which is explained below.

Consolidation of Sponsored REIT

March 31, 2023| Page 25

	<br><br>
	Net Asset Value Components


(in thousands except per share data)
	As **** of		Assets:			Other information:
	31-Mar-23		Loans outstanding on secured RE	$	—	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in non-consolidated SARs (book basis)		—	during 2023 (in 000's)		136
Shares outstanding		103,235.9	Straight-line rent receivable		51,703
Closing price	$	1.57	Asset held for sale		—	Straight-line rental revenue current quarter	$	331
Market capitalization	$	162,080	Cash, cash equivalents and restricted cash		13,110
Debt		400,000	Tenant rent receivables		3,306	Management fee income current quarter	$	—
Total Market Capitalization	$	562,080	Prepaid expenses		2,894	Interest income from secured loans		—
			Office computers and furniture		145	Management fees and interest income from loans	$	—
			Other assets:
	3 Months		Deferred financing costs, net		3,711
	Ended		Other assets: Derivative Market Value		—
NOI Components	31-Mar-23		Other assets - Right-to-Use Asset		608
				$	75,477
Same Store NOI (1)	$	17,072
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		17,072	Debt (excluding contra for unamortized financing costs)	$	400,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		38,909	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	17,072	Tenant security deposits		5,740
			Other liabilities: lease liability		655	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		—
Financial Statement Reconciliation:				$	445,304	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	37,767
Rental operating expenses		(12,690)				(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		(6,973)
NOI from dispositions & acquisition properties		(668)				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(67)
Management & other fees (5)		(297)
Property NOI (1)	$	17,072

March 31, 2023| Page 26

	<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.

March 31, 2023| Page 27

	<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 all periods presented. We also exclude properties that have been acquired, consolidated or 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.

March 31, 2023| Page 28

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

Definition of Adjusted Funds From Operations (AFFO)

March 31, 2023| Page 29

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

March 31, 2023| Page 30