| (Mark One)           |                                                                                     |
|----------------------|------------------------------------------------------------------------------------------|
| [X]                  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|                 | For the quarterly period ended June 30, 2009.                                            |
|                 |                                                                                     |
|                 | OR                                                                                       |
|                 |                                                                                     |
| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                 | For the transition period from _________ to __________.                                  |

| Maryland                                                       |   | 04-3578653                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

|   | YES     [X] | NO     [   ] |
|--------|--------------------------------------|------------------------------------------------------|

|   | YES     [   ] | NO     [   ] |
|--------|-------------------------------------------------------|------------------------------------------------------|

|   | Large accelerated filer   [X]                                                                                     |                                                            | Accelerated filer   [   ] |
|--------|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------|
|   |                                                                                                                             |                                                            |                                                    |
|   | Non-accelerated filer    [   ]   (Do not check if a smaller reporting company) | Smaller reporting company   [   ] |

----

|   | YES     [   ] | NO     [X] |
|--------|-------------------------------------------------------|-------------------------------------|

----

| Part I.    | Financial Information |                                                                                                                      |
|------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------|
|       |                  |                                                                                                                      | Page |
|       | Item 1.               | Financial Statements                                                                                                      |   |
|       |                  |                                                                                                                      |   |
|       |                  | Condensed Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008                                           | 4 |
|       |                  |                                                                                                                      |   |
|       |                  | Condensed Consolidated Statements of Income for the three and six months ended June 30, 2009 and 2008                     | 5 |
|       |                  |                                                                                                                      |   |
|       |                  | Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008                           | 6 |
|       |                  |                                                                                                                      |   |
|       |                  | Condensed Consolidated Statements of Other Comprehensive Income for the three and six months ended June 30, 2009 and 2008 | 7 |
|       |                  |                                                                                                                      |   |
|       |                  | Notes to Condensed Consolidated Financial Statements                                                                      | 8-20 |
|       |                  |                                                                                                                      |   |
|       | Item 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                               | 21-30 |
|       |                  |                                                                                                                      |   |
|       | Item 3.               | Quantitative and Qualitative Disclosures About Market Risk                                                                | 31 |
|       |                  |                                                                                                                      |   |
|       | Item 4.               | Controls and Procedures                                                                                                   | 32 |
|       |                  |                                                                                                                      |   |
| Part II.   | Other Information     |                                                                                                                      |
|       |                  |                                                                                                                      |   |
|       | Item 1.               | Legal Proceedings                                                                                                         | 33 |
|       |                  |                                                                                                                      |   |
|       | Item 1A.              | Risk Factors                                                                                                              | 33 |
|       |                  |                                                                                                                      |   |
|       | Item 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                                               | 33 |
|       |                  |                                                                                                                      |   |
|       | Item 3.               | Defaults Upon Senior Securities                                                                                           | 34 |
|       |                  |                                                                                                                      |   |
|       | Item 4.               | Submission of Matters to a Vote of Security Holders                                                                       | 34 |
|       |                  |                                                                                                                      |   |
|       | Item 5.               | Other Information                                                                                                         | 34 |
|       |                  |                                                                                                                      |   |
|       | Item 6.               | Exhibits                                                                                                                  | 34 |
|       |                  |                                                                                                                      |   |
| Signatures |                  | 35                                                                                                                        |
|       |                  |                                                                                                                      |   |

----

| Franklin Street Properties Corp.      |
|---------------------------------------|
| Condensed Consolidated Balance Sheets |
| (Unaudited)                           |

|                                                                                                                                 |   | June 30, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|
| (in thousands, except share and par value amounts)                                                                                   |   | 2009     |      |   | 2008         |   |
| Assets:                                                                                                                              |   |     |      |   |         |   |
| Real estate assets:                                                                                                                  |   |     |      |   |         |   |
| Land                                                                                                                                 |   | $        | 114,677   |   |         | $      | 107,153 |   |
| Buildings and improvements                                                                                                           |   |     | 840,605   |   |         |   | 810,732 |   |
| Fixtures and equipment                                                                                                               |   |     | 310       |   |         |   | 299 |   |
|                                                                                                                                 |   |     | 955,592   |   |         |   | 918,184 |   |
| Less accumulated depreciation                                                                                                        |   |     | 86,035    |   |         |   | 74,126 |   |
| Real estate assets, net                                                                                                              |   |     | 869,557   |   |         |   | 844,058 |   |
| Acquired real estate leases, less accumulated amortization                                                                           |   |     |      |   |         |   |   |   |
|    of $32,930 and $29,200, respectively                                                                               |   |     | 38,996    |   |         |   | 28,518 |   |
| Investment in non-consolidated REITs                                                                                                 |   |     | 94,579    |   |         |   | 83,046 |   |
| Assets held for syndication, net                                                                                                     |   |     | -         |   |         |   | 13,254 |   |
| Cash and cash equivalents                                                                                                            |   |     | 24,542    |   |         |   | 29,244 |   |
| Restricted cash                                                                                                                      |   |     | 335       |   |         |   | 336 |   |
| Tenant rent receivables, less allowance for doubtful accounts                                                                        |   |     |      |   |         |   |   |   |
|    of $620 and $509, respectively                                                                                     |   |     | 720       |   |         |   | 1,329 |   |
| Straight-line rent receivable, less allowance for doubtful accounts                                                                  |   |     |      |   |         |   |   |   |
|    of $100 and $261, respectively                                                                                     |   |     | 9,219     |   |         |   | 8,816 |   |
| Prepaid expenses                                                                                                                     |   |     | 2,267     |   |         |   | 2,206 |   |
| Related party mortgage loan receivable                                                                                               |   |     | 12,115    |   |         |   | 1,125 |   |
| Other assets                                                                                                                         |   |     | 1,854     |   |         |   | 2,406 |   |
| Office computers and furniture, net of accumulated depreciation                                                                      |   |     |      |   |         |   |   |   |
|    of $1,160 and $1,108, respectively                                                                                 |   |     | 417       |   |         |   | 281 |   |
| Deferred leasing commissions, net of accumulated amortization                                                                        |   |     |      |   |         |   |   |   |
|    of $4,221, and $3,416, respectively                                                                                |   |     | 10,895    |   |         |   | 10,814 |   |
| Total assets                                                                                                                         |   | $        | 1,065,496 |   |         | $      | 1,025,433 |   |
|                                                                                                                                 |   |     |      |   |         |   |   |   |
| Liabilities and Stockholders’ Equity:                                                                                          |   |     |      |   |         |   |   |   |
| Liabilities:                                                                                                                         |   |     |      |   |         |   |   |   |
| Bank note payable                                                                                                                    |   | $        | 124,038   |   |         | $      | 67,468 |   |
| Term loan payable                                                                                                                    |   |     | 75,000    |   |         |   | 75,000 |   |
| Accounts payable and accrued expenses                                                                                                |   |     | 21,252    |   |         |   | 22,297 |   |
| Accrued compensation                                                                                                                 |   |     | 500       |   |         |   | 1,654 |   |
| Tenant security deposits                                                                                                             |   |     | 1,765     |   |         |   | 1,874 |   |
| Other liabilities: derivative termination value                                                                                      |   |     | 2,394     |   |         |   | 3,099 |   |
| Acquired unfavorable real estate leases, less accumulated amortization                                                               |   |     |      |   |         |   |   |   |
| of $2,266, and $1,779, respectively                                                                                                  |   |     | 4,954     |   |         |   | 5,044 |   |
| Total liabilities                                                                                                                    |   |     | 229,903   |   |         |   | 176,436 |   |
|                                                                                                                                 |   |     |      |   |         |   |   |   |
| 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, 70,480,705 and 70,480,705 shares issued and outstanding, respectively |   |     | 7         |   |         |   | 7 |   |
| Additional paid-in capital                                                                                                           |   |     | 889,019   |   |         |   | 889,019 |   |
| Accumulated other comprehensive loss                                                                                                 |   |     | (2,394    | )      |         |   | (3,099 | ) |
| Accumulated distributions in excess of accumulated earnings                                                                          |   |     | (51,039   | )      |         |   | (36,930 | ) |
|     Total stockholders’ equity                                                                             |   |     | 835,593   |   |         |   | 848,997 |   |
|     Total liabilities and stockholders’ equity                                                             |   | $        | 1,065,496 |   |         | $      | 1,025,433 |   |
|                                                                                                                                 |   |
| The accompanying notes are an integral part of these condensed consolidated financial statements.                                    |   |

----

|                                                                                              |   | For theThree Months EndedJune 30, |   |   | For theSix Months EndedJune 30, |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
| (in thousands, except per share amounts)                                                          |   | 2009                              |   |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Revenue:                                                                                          |   |                              |   |   |                            |   |   |   |   |   |   |   |
|      Rental                                                              |   | $                                 | 29,254 |   |                            | $      | 27,700 |   |   | $ | 59,072 |   |   | $ | 54,356 |   |
| Related party revenue:                                                                            |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|      Syndication fees                                                    |   |                              | 29     |   |                            |   | 3,257 |   |   |   | 39 |   |   |   | 3,462 |   |
|      Transaction fees                                                    |   |                              | 514    |   |                            |   | 3,138 |   |   |   | 542 |   |   |   | 3,306 |   |
|      Management fees and interest income from loans                      |   |                              | 317    |   |                            |   | 423 |   |   |   | 862 |   |   |   | 984 |   |
| Other                                                                                             |   |                              | 18     |   |                            |   | 19 |   |   |   | 36 |   |   |   | 39 |   |
|         Total revenue                                     |   |                              | 30,132 |   |                            |   | 34,537 |   |   |   | 60,551 |   |   |   | 62,147 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                         |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|      Real estate operating expenses                                      |   |                              | 7,144  |   |                            |   | 7,116 |   |   |   | 14,424 |   |   |   | 13,815 |   |
|      Real estate taxes and insurance                                     |   |                              | 4,686  |   |                            |   | 4,505 |   |   |   | 9,515 |   |   |   | 8,784 |   |
|      Depreciation and amortization                                       |   |                              | 10,225 |   |                            |   | 7,591 |   |   |   | 18,139 |   |   |   | 14,950 |   |
|      Selling, general and administrative                                 |   |                              | 2,127  |   |                            |   | 2,621 |   |   |   | 4,135 |   |   |   | 4,630 |   |
|      Commissions                                                         |   |                              | 40     |   |                            |   | 1,654 |   |   |   | 170 |   |   |   | 1,812 |   |
|      Interest                                                            |   |                              | 1,599  |   |                            |   | 1,051 |   |   |   | 3,176 |   |   |   | 2,243 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|        Total expenses                                          |   |                              | 25,821 |   |                            |   | 24,538 |   |   |   | 49,559 |   |   |   | 46,234 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income before interest income, equity in earnings of                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|    non-consolidated REITs and taxes                                                |   |                              | 4,311  |   |                            |   | 9,999 |   |   |   | 10,992 |   |   |   | 15,913 |   |
| Interest income                                                                                   |   |                              | 36     |   |                            |   | 176 |   |   |   | 72 |   |   |   | 479 |   |
| Equity in earnings of non-consolidated REITs                                                      |   |                              | 443    |   |                            |   | 694 |   |   |   | 1,235 |   |   |   | 1,487 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                                                                               |   |                              | 4,790  |   |                            |   | 10,869 |   |   |   | 12,299 |   |   |   | 17,879 |   |
| Income tax expense (benefit)                                                                      |   |                              | (75    | )      |                            |   | 335 |   |   |   | (374 | ) |   |   | (41 | ) |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                        |   | $                                 | 4,865  |   |                            | $      | 10,534 |   |   | $ | 12,673 |   |   | $ | 17,920 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding,                                                    |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|      basic and diluted                                                   |   |                              | 70,481 |   |                            |   | 70,481 |   |   |   | 70,481 |   |   |   | 70,481 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share, basic and diluted                                                           |   | $                                 | 0.07   |   |                            | $      | 0.15 |   |   | $ | 0.18 |   |   | $ | 0.25 |   |
|                                                                                              |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these condensed consolidated financial statements. |   |

----

|                                                                                              |   | For theSix Months EndedJune 30, |    |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|
| (in thousands)                                                                                    |   | 2009                            |    |   | 2008 |   |
| Cash flows from operating activities:                                                             |   |                            |    |   |   |   |
| Net income                                                                                        |   | $                               | 12,673  |   |   | $ | 17,920 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                 |   |                            |    |   |   |   |   |   |
| Depreciation and amortization expense                                                             |   |                            | 18,276  |   |   |   | 14,973 |   |
| Amortization of above market lease                                                                |   |                            | 1,780   |   |   |   | 2,259 |   |
| Equity in earnings of non-consolidated REITs                                                      |   |                            | (1,235  | ) |   |   | (1,487 | ) |
| Distributions from non-consolidated REITs                                                         |   |                            | 3,137   |   |   |   | 2,277 |   |
| Increase in bad debt reserve                                                                      |   |                            | 111     |   |   |   | 79 |   |
| Changes in operating assets and liabilities:                                                      |   |                            |    |   |   |   |   |   |
| Restricted cash                                                                                   |   |                            | 1       |   |   |   | 1 |   |
| Tenant rent receivables, net                                                                      |   |                            | 498     |   |   |   | 404 |   |
| Straight-line rents, net                                                                          |   |                            | (444    | ) |   |   | (507 | ) |
| Prepaid expenses and other assets, net                                                            |   |                            | (943    | ) |   |   | 160 |   |
| Accounts payable, accrued expenses                                                                |   |                            | 482     |   |   |   | (2,002 | ) |
| Accrued compensation                                                                              |   |                            | (1,154  | ) |   |   | 281 |   |
| Tenant security deposits                                                                          |   |                            | (109    | ) |   |   | (64 | ) |
| Payment of deferred leasing commissions                                                           |   |                            | (1,557  | ) |   |   | (2,131 | ) |
| Net cash provided by operating activities                                                         |   |                            | 31,516  |   |   |   | 32,163 |   |
| Cash flows from investing activities:                                                             |   |                            |    |   |   |   |   |   |
| Purchase of real estate assets and office computers and furniture, capitalized merger costs       |   |                            | (56,135 | ) |   |   | (36,970 | ) |
| Changes in deposits on real estate assets                                                         |   |                            | 1,300   |   |   |   | - |   |
| Investment in non-consolidated REITs                                                              |   |                            | (13,198 | ) |   |   | (10 | ) |
| Investment in related party mortgage loan receivable                                              |   |                            | (10,990 | ) |   |   | (1,000 | ) |
| Investment in assets held for syndication                                                         |   |                            | 13,017  |   |   |   | 11,698 |   |
| Net cash used in investing activities                                                             |   |                            | (66,006 | ) |   |   | (26,282 | ) |
| Cash flows from financing activities:                                                             |   |                            |    |   |   |   |   |   |
| Distributions to stockholders                                                                     |   |                            | (26,782 | ) |   |   | (43,698 | ) |
| Borrowings under bank note payable                                                                |   |                            | 56,570  |   |   |   | 25,245 |   |
| Deferred financing costs                                                                          |   |                            | -       |   |   |   | (30 | ) |
| Net cash provided by (used in) financing activities                                               |   |                            | 29,788  |   |   |   | (18,483 | ) |
| Net decrease in cash and cash equivalents                                                         |   |                            | (4,702  | ) |   |   | (12,602 | ) |
| Cash and cash equivalents, beginning of period                                                    |   |                            | 29,244  |   |   |   | 46,988 |   |
| Cash and cash equivalents, end of period                                                          |   | $                               | 24,542  |   |   | $ | 34,386 |   |
|                                                                                              |   |                            |    |   |   |   |   |   |
| Non-cash investing and financing activities:                                                      |   |                            |    |   |   |   |   |   |
| Accrued costs for purchase of real estate assets                                                  |   | $                               | 1,679   |   |   | $ | 2,027 |   |
| Investment in non-consolidated REITs converted to real estate assets                              |   |                            |    |   |   |   |   |   |
|   and acquired real estate leases in conjunction with merger                            |   | $                               | -       |   |   | $ | 1,162 |   |
|                                                                                              |   |                            |    |   |   |   |   |   |
| The accompanying notes are an integral part of these condensed consolidated financial statements. |   |

----

|                                                                                     |   | For theThree Months EndedJune 30, |   |   | For theSix Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
| (in thousands)                                                                           |   | 2009                              |   |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                                                     |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Net income                                                                               |   | $                                 | 4,865  |   |                            | $      | 10,534 |   |   | $ | 12,673 |   |   | $ | 17,920 |   |
|                                                                                     |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|    Other comprehensive income:                                            |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|        Unrealized gain on derivative financial instruments |   |                              | 686    |   |                            |   | - |   |   |   | 705 |   |   |   | - |   |
|    Total other comprehensive income                                       |   |                              | 686    |   |                            |   | - |   |   |   | 705 |   |   |   | - |   |
|                                                                                     |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                     |   | $                                 | 5,551  |   |                            | $      | 10,534 |   |   | $ | 13,378 |   |   | $ | 17,920 |   |

----

|                              |   | As ofJune 30, |      |
|-----------------------------------|--------|---------------|-----------|
|                              |   | 2009          |      |   | 2008 |   |
| Commercial real estate:           |   |          |      |   |   |   |
|    Number of properties |   |          | 31        |   |   |   | 27 |   |
|    Rentable square feet |   |          | 5,682,011 |   |   |   | 5,153,396 |   |

----

----

|   Sponsored REIT                 |   Property Location |   | Gross Proceeds (1) |   |
|---------------------------------------|--------------------------|--------|------------------------------|--------|
|                                  |                     |   | (in thousands)               |   |
| FSP Grand Boulevard Corp.             | Kansas City, MO          |   | $                            | 350    |   |
| FSP 385 Interlocken Development Corp. | Broomfield, CO           |   |                         | 200    |   |
|                                  | Total                    |   | $                            | 550    |   |

----

|                                       |   | Six Months EndedJune 30, |   |
|--------------------------------------------|--------|--------------------------|--------|
| (in thousands)                             |   | 2009                     |   |   | 2008 |   |
|                                       |   |                     |   |   |   |   |
| Equity in earnings of Sponsored REITs      |   | $                        | 141    |   |   | $ | 103 |   |
| Equity in earnings of Park Ten Development |   |                     | -      |   |   |   | 9 |   |
| Equity in earnings of Phoenix Tower        |   |                     | 1      |   |   |   | 14 |   |
| Equity in earnings of East Wacker          |   |                     | 1,064  |   |   |   | 1,361 |   |
| Equity in earnings of Grand Boulevard      |   |                     | 29     |   |   |   | - |   |
|                                       |   | $                        | 1,235  |   |   | $ | 1,487 |   |

----

|                                          |   | June 30,                               |     |   | December 31, |   |
|-----------------------------------------------|--------|----------------------------------------|----------|--------|--------------|--------|
| (in thousands)                                |   | 2009                                   |     |   | 2008         |   |
|                                          |   |                                   |     |   |         |   |
| Balance Sheet Data (unaudited):               |   |                                   |     |   |         |   |
| Real estate, net                              |   | $                                      | 668,145  |   |         | $      | 683,218 |   |
| Other assets                                  |   |                                   | 98,349   |   |         |   | 114,015 |   |
| Total liabilities                             |   |                                   | (180,030 | )      |         |   | (189,435 | ) |
| Shareholders' equity                          |   | $                                      | 586,464  |   |         | $      | 607,798 |   |
|                                          |   |                                   |     |   |         |   |   |   |
|                                          |   | For the Six Months Ended June 30, |     |
| (in thousands)                                |   | 2009                                   |     |   | 2008         |   |
|                                          |   |                                   |     |   |         |   |   |   |
| Operating Data (unaudited):                   |   |                                   |     |   |         |   |   |   |
| Rental revenues                               |   | $                                      | 48,812   |   |         | $      | 51,031 |   |
| Other revenues                                |   |                                   | 251      |   |         |   | 1,046 |   |
| Operating and maintenance  expenses |   |                                   | (25,248  | )      |         |   | (25,412 | ) |
| Depreciation and amortization                 |   |                                   | (12,090  | )      |         |   | (12,104 | ) |
| Interest expense                              |   |                                   | (4,160   | )      |         |   | (5,725 | ) |
| Net income                                    |   | $                                      | 7,565    |   |         | $      | 8,836 |   |

----

| (in 000's)                              |      |   | Maximum |   |   | Amount    |   |   |     |   |   |    |   |   | Rate in   |   |
|-----------------------------------------|-----------|--------|---------|--------|--------|-----------|--------|--------|----------|--------|--------|---------|--------|--------|-----------|--------|
|                                    | Maturity  |   | Amount  |   |   | Drawn at  |   |   | Interest |   |   | Draw    |   |   | Effect at |   |
| Sponsored REIT                          | Date      |   | of Loan |   |   | 30-Jun-09 |   |   | Rate (1) |   |   | Fee (2) |   |   | 30-Jun-09 |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |
| Revolving lines of credit               |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |
| FSP Highland Place I Corp.              | 31-Dec-10 |   | $       | 5,500  |   |      | $      | 1,125  |     |   |   | L+2%    |   |   |      | n/a    |   |   |   | 2.32% |   |
| FSP Satellite Place Corp.               | 31-Mar-12 |   |    | 5,500  |   |      |   | 479    |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   | 3.32% |   |
| FSP 1441 Main Street Corp.(a)           | 31-Mar-12 |   |    | 10,800 |   |      |   | -      |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   |   |   |
| FSP 505 Waterford Corp.                 | 30-Nov-11 |   |    | 7,000  |   |      |   | -      |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   |   |   |
| FSP Phoenix Tower Corp.  (b)  | 30-Nov-11 |   |    | 15,000 |   |      |   | 3,600  |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   | 3.32% |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
| Construction loan                       |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
| FSP 385 Interlocken                     |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
|    Development Corp. (c) | 30-Apr-12 |   |    | 42,000 |   |      |   | 6,911  |     |   |   | L+3%    |   |   |      | n/a    |   |   |   | 3.32% |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
|                                    |      |   | $       | 85,800 |   |      | $      | 12,115 |     |   |   |    |   |   |      |   |   |   |   |   |   |

| (1) The interest rate is 30-Day LIBOR rate plus the additional rate indicated                  |
|------------------------------------------------------------------------------------------------|
| (2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw |
|                                                                                           |
| (a) The Borrower is FSP 1441 Main Street LLC, a wholly-owned subsidiary                        |
| (b) The Borrower is FSP Phoenix Tower Limited Partnership, a wholly-owned subsidiary           |
| (c) The Borrower is FSP 385 Interlocken LLC, a wholly-owned subsidiary                         |

----

----

|               |   | NotionalValue |   |   | StrikeRate |   |   | EffectiveDate |   |   | ExpirationDate |   |   | FairValue |    |
|--------------------|--------|---------------|--------|--------|------------|--------|--------|---------------|--------|--------|----------------|--------|--------|-----------|---------|
| Interest Rate Swap |   | $             | 75,000 |   |       |   | 5.840% |          |   |   | 10/2008        |   |   |      | 10/2011 |   |   | $ | (2,394) |   |

----

| (in thousands)                             |   | Real Estate Operations |   |   | InvestmentBanking/InvestmentServices |   |   | Total  |   |
|--------------------------------------------|--------|------------------------|--------|--------|--------------------------------------|--------|--------|--------|--------|
| Three Months Ended March 31, 2009          |   |                   |   |   |                                 |   |   |   |   |
| Net Income (loss)                          |   | $                      | 8,586  |   |                                 | $      | (778   | )      |   | $ | 7,808 |   |
| Equity in income of non-consolidated REITs |   |                   | (792   | )      |                                 |   | -      |   |   |   | (792 | ) |
| Distributions from non-consolidated REITs  |   |                   | 1,615  |   |                                 |   | -      |   |   |   | 1,615 |   |
| Depreciation and amortization              |   |                   | 8,680  |   |                                 |   | 27     |   |   |   | 8,707 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 18,089 |   |                                 | $      | (751   | )      |   | $ | 17,338 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Three Months Ended June 30, 2009           |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Net Income (loss)                          |   | $                      | 5,212  |   |                                 | $      | (347   | )      |   | $ | 4,865 |   |
| Equity in income of non-consolidated REITs |   |                   | (443   | )      |                                 |   | -      |   |   |   | (443 | ) |
| Distributions from non-consolidated REITs  |   |                   | 1,523  |   |                                 |   | -      |   |   |   | 1,523 |   |
| Acquisition costs                          |   |                   | 248    |   |                                 |   | -      |   |   |   | 248 |   |
| Depreciation and amortization              |   |                   | 11,191 |   |                                 |   | 25     |   |   |   | 11,216 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 17,731 |   |                                 | $      | (322   | )      |   | $ | 17,409 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2009             |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Net Income (loss)                          |   | $                      | 13,798 |   |                                 | $      | (1,125 | )      |   | $ | 12,673 |   |
| Equity in income of non-consolidated REITs |   |                   | (1,235 | )      |                                 |   | -      |   |   |   | (1,235 | ) |
| Distributions from non-consolidated REITs  |   |                   | 3,138  |   |                                 |   | -      |   |   |   | 3,138 |   |
| Acquisition costs                          |   |                   | 248    |   |                                 |   | -      |   |   |   | 248 |   |
| Depreciation and amortization              |   |                   | 19,871 |   |                                 |   | 52     |   |   |   | 19,923 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 35,820 |   |                                 | $      | (1,073 | )      |   | $ | 34,747 |   |

----

| (in thousands)                             |   | Real Estate Operations |   |   | InvestmentBanking/InvestmentServices |   |   | Total  |   |
|--------------------------------------------|--------|------------------------|--------|--------|--------------------------------------|--------|--------|--------|--------|
| Three Months Ended March 31, 2008          |   |                   |   |   |                                 |   |   |   |   |
| Net Income (loss)                          |   | $                      | 7,874  |   |                                 | $      | (488   | )      |   | $ | 7,386 |   |
| Equity in income of non-consolidated REITs |   |                   | (793   | )      |                                 |   | -      |   |   |   | (793 | ) |
| Distributions from non-consolidated REITs  |   |                   | 546    |   |                                 |   | -      |   |   |   | 546 |   |
| Depreciation and amortization              |   |                   | 8,464  |   |                                 |   | 34     |   |   |   | 8,498 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 16,091 |   |                                 | $      | (454   | )      |   | $ | 15,637 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Three Months Ended June 30, 2008           |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Net Income                                 |   | $                      | 7,182  |   |                                 | $      | 3,352  |   |   | $ | 10,534 |   |
| Equity in income of non-consolidated REITs |   |                   | (694   | )      |                                 |   | -      |   |   |   | (694 | ) |
| Distributions from non-consolidated REITs  |   |                   | 1,731  |   |                                 |   | -      |   |   |   | 1,731 |   |
| Depreciation and amortization              |   |                   | 8,677  |   |                                 |   | 35     |   |   |   | 8,712 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 16,896 |   |                                 | $      | 3,387  |   |   | $ | 20,283 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2008             |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Net Income                                 |   | $                      | 15,056 |   |                                 | $      | 2,864  |   |   | $ | 17,920 |   |
| Equity in income of non-consolidated REITs |   |                   | (1,487 | )      |                                 |   | -      |   |   |   | (1,487 | ) |
| Distributions from non-consolidated REITs  |   |                   | 2,277  |   |                                 |   | -      |   |   |   | 2,277 |   |
| Depreciation and amortization              |   |                   | 17,141 |   |                                 |   | 69     |   |   |   | 17,210 |   |
|                                       |   |                   |   |   |                                 |   |   |   |   |   |   |   |
| Funds From Operations                      |   | $                      | 32,987 |   |                                 | $      | 2,933  |   |   | $ | 35,920 |   |

----

| (in thousands)                          |   | Real Estate Operations |      |   | InvestmentBanking/InvestmentServices |   |   | Total  |   |
|-----------------------------------------|--------|------------------------|-----------|--------|--------------------------------------|--------|--------|--------|--------|
| Three Months Ended June 30, 2009        |   |                   |      |   |                                 |   |   |   |   |
| Revenue                                 |   | $                      | 29,588    |   |                                 | $      | 542    |   |   | $ | 30,130 |   |
| Interest income                         |   |                   | 35        |   |                                 |   | 1      |   |   |   | 36 |   |
| Interest expense                        |   |                   | 1,598     |   |                                 |   | -      |   |   |   | 1,598 |   |
| Capital expenditures                    |   |                   | 939       |   |                                 |   | 88     |   |   |   | 1,027 |   |
|                                    |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2009          |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Revenue                                 |   | $                      | 59,970    |   |                                 | $      | 581    |   |   | $ | 60,551 |   |
| Interest income                         |   |                   | 68        |   |                                 |   | 3      |   |   |   | 71 |   |
| Interest expense                        |   |                   | 3,176     |   |                                 |   | -      |   |   |   | 3,176 |   |
| Investment in non-consolidated REITs    |   |                   | 94,579    |   |                                 |   | -      |   |   |   | 94,579 |   |
| Capital expenditures                    |   |                   | 2,678     |   |                                 |   | 189    |   |   |   | 2,867 |   |
|                                    |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Identifiable assets as of June 30, 2009 |   | $                      | 1,061,856 |   |                                 | $      | 3,640  |   |   | $ | 1,065,496 |   |
|                                    |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Three Months Ended June 30, 2008        |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Revenue                                 |   | $                      | 28,142    |   |                                 | $      | 6,395  |   |   | $ | 34,537 |   |
| Interest income                         |   |                   | 170       |   |                                 |   | 6      |   |   |   | 176 |   |
| Interest expense                        |   |                   | 1,051     |   |                                 |   | -      |   |   |   | 1,051 |   |
| Capital expenditures                    |   |                   | 2,245     |   |                                 |   | -      |   |   |   | 2,245 |   |
|                                    |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2008          |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Revenue                                 |   | $                      | 55,379    |   |                                 | $      | 6,768  |   |   | $ | 62,147 |   |
| Interest income                         |   |                   | 461       |   |                                 |   | 18     |   |   |   | 479 |   |
| Interest expense                        |   |                   | 2,243     |   |                                 |   | -      |   |   |   | 2,243 |   |
| Investment in non-consolidated REITs    |   |                   | 84,609    |   |                                 |   | -      |   |   |   | 84,609 |   |
| Capital expenditures                    |   |                   | 5,596     |   |                                 |   | -      |   |   |   | 5,596 |   |
|                                    |   |                   |      |   |                                 |   |   |   |   |   |   |   |
| Identifiable Assets as of June 30, 2008 |   | $                      | 995,973   |   |                                 | $      | 6,384  |   |   | $ | 1,002,357 |   |

| Quarter Paid           |   | DividendsPer Share |   |   | TotalDividends |   |
|------------------------|--------|--------------------|--------|--------|----------------|--------|
|                   |   |               |   |   |           |   |
| First quarter of 2009  |   | $                  | 0.19   |   |           | $      | 13,391 |   |
| Second quarter of 2009 |   | $                  | 0.19   |   |           | $      | 13,391 |   |
|                   |   |               |   |   |           |   |   |   |
| First quarter of 2008  |   | $                  | 0.31   |   |           | $      | 21,849 |   |
| Second quarter of 2008 |   | $                  | 0.31   |   |           | $      | 21,849 |   |

----

|                                            |   | For theSix Months EndedJune 30, |   |
|-------------------------------------------------|--------|---------------------------------|--------|
| (in thousands)                                  |   | 2009                            |   |   | 2008 |   |
|                                            |   |                            |   |   |   |   |
| Federal income tax benefit                      |   | $                               | (502   | ) |   | $ | (133 | ) |
| Increase (decrease) in taxes resulting from:    |   |                            |   |   |   |   |   |   |
| State income tax benefit, net of federal impact |   |                            | (99    | ) |   |   | (25 | ) |
| Valuation allowance on state tax benefit        |   |                            | 99     |   |   |   |   |   |
| Revised Texas franchise tax                     |   |                            | 128    |   |   |   | 117 |   |
| Income tax benefit                              |   | $                               | (374   | ) |   | $ | (41 | ) |

----

----

----

----

----

| (in thousands)                                                                                                                    |   | Three months ended June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
| Revenue:                                                                                                                          |   | 2009                        |   |   | 2008 |   |   | Change |   |
|    Rental                                                                                                          |   | $                           | 29,254 |   |   | $ | 27,700 |   |   | $ | 1,554 |   |
|    Related party revenue:                                                                                          |   |                        |   |   |   |   |   |   |   |   |   |   |
| Syndication fees                                                                                                                  |   |                        | 29     |   |   |   | 3,257 |   |   |   | (3,228 | ) |
| Transaction fees                                                                                                                  |   |                        | 514    |   |   |   | 3,138 |   |   |   | (2,624 | ) |
| Management fees and interest income from loans                                                                                    |   |                        | 317    |   |   |   | 423 |   |   |   | (106 | ) |
|    Other                                                                                                           |   |                        | 18     |   |   |   | 19 |   |   |   | (1 | ) |
| Total revenue                                                                                                                     |   |                        | 30,132 |   |   |   | 34,537 |   |   |   | (4,405 | ) |
|                                                                                                                              |   |                        |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                         |   |                        |   |   |   |   |   |   |   |   |   |   |
| Real estate operating expenses                                                                                                    |   |                        | 7,144  |   |   |   | 7,116 |   |   |   | 28 |   |
| Real estate taxes and insurance                                                                                                   |   |                        | 4,686  |   |   |   | 4,505 |   |   |   | 181 |   |
| Depreciation and amortization                                                                                                     |   |                        | 10,225 |   |   |   | 7,591 |   |   |   | 2,634 |   |
| Selling, general and administrative                                                                                               |   |                        | 2,127  |   |   |   | 2,621 |   |   |   | (494 | ) |
| Commissions                                                                                                                       |   |                        | 40     |   |   |   | 1,654 |   |   |   | (1,614 | ) |
| Interest                                                                                                                          |   |                        | 1,599  |   |   |   | 1,051 |   |   |   | 548 |   |
| Total expenses                                                                                                                    |   |                        | 25,821 |   |   |   | 24,538 |   |   |   | 1,283 |   |
|                                                                                                                              |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Income before interest income, equity in earnings in non-     consolidated REITs and taxes |   |                        | 4,311  |   |   |   | 9,999 |   |   |   | (5,688 | ) |
| Interest income                                                                                                                   |   |                        | 36     |   |   |   | 176 |   |   |   | (140 | ) |
| Equity in earnings of non-consolidated REITs                                                                                      |   |                        | 443    |   |   |   | 694 |   |   |   | (251 | ) |
|                                                                                                                              |   |                        |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                                                                                                               |   |                        | 4,790  |   |   |   | 10,869 |   |   |   | (6,079 | ) |
| Income tax expense (benefit)                                                                                                      |   |                        | (75    | ) |   |   | 335 |   |   |   | (410 | ) |
|                                                                                                                              |   |                        |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                        |   | $                           | 4,865  |   |   | $ | 10,534 |   |   | $ | (5,669 | ) |

|   | o | A $5.9 million decrease in syndication fees and transaction (loan commitment) fees, which was principally a result of the decrease in gross syndication proceeds for the quarter ended June 30, 2009 compared to the same period in 2008. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | An increase in rental revenue of approximately $1.5 million arising primarily from the acquisition of a property in Virginia and a property in Missouri in December 2008, and to a lesser extent, the acquisition of  a property in Texas in May 2008, and early termination fees of $0.3 million received during the three months ended June 30, 2009. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | o | An increase in real estate operating expenses and real estate taxes and insurance of approximately $0.2 million, and depreciation of $2.6 million, which were primarily from the acquisition of a property in Virginia and a property in Missouri in December 2008, and to a lesser extent, the acquisition of a property in Texas in May 2008.  |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | An increase in interest expense of approximately $0.5 million primarily as a result of the addition of the Term Loan, which was borrowed in October 2008; and was partially offset by a decrease in the average Revolver loan balance and lower average interest rates during the three months ended June 30, 2009 compared to the three months ended June 30, 2008. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | A decrease in commission expense of $1.6 million, which was principally a result of the decrease in gross syndication proceeds in the three months ended June 30, 2009 as compared to the three months ended June 30, 2008.  |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | An decrease in general and administrative expenses of $0.5 million, which was primarily the result of a decrease in discretionary compensation of $0.6 million, which was partially offset by an increase from acquisition costs of $0.2 million that were recorded in the three months ended June 30, 2009 related to the acquisitions of two properties in June 2009.  We had 39 and 37 employees as of June30, 2009 and 2008, respectively, at our headquarters in Wakefield. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in thousands)                                                                        |   |                      |   |
|---------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                  |   | Six months ended June 30, |   |
| Revenue:                                                                              |   | 2009                      |   |   | 2008 |   |   | Change |   |
|    Rental                                                              |   | $                         | 59,072 |   |   | $ | 54,356 |   |   | $ | 4,716 |   |
|    Related party revenue:                                              |   |                      |   |   |   |   |   |   |   |   |   |   |
| Syndication fees                                                                      |   |                      | 39     |   |   |   | 3,462 |   |   |   | (3,423 | ) |
| Transaction fees                                                                      |   |                      | 542    |   |   |   | 3,306 |   |   |   | (2,764 | ) |
| Management fees and interest income from loans                                        |   |                      | 862    |   |   |   | 984 |   |   |   | (122 | ) |
|    Other                                                               |   |                      | 36     |   |   |   | 39 |   |   |   | (3 | ) |
| Total revenue                                                                         |   |                      | 60,551 |   |   |   | 62,147 |   |   |   | (1,596 | ) |
|                                                                                  |   |                      |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                             |   |                      |   |   |   |   |   |   |   |   |   |   |
| Real estate operating expenses                                                        |   |                      | 14,424 |   |   |   | 13,815 |   |   |   | 609 |   |
| Real estate taxes and insurance                                                       |   |                      | 9,515  |   |   |   | 8,784 |   |   |   | 731 |   |
| Depreciation and amortization                                                         |   |                      | 18,139 |   |   |   | 14,950 |   |   |   | 3,189 |   |
| Selling, general and administrative                                                   |   |                      | 4,135  |   |   |   | 4,630 |   |   |   | (495 | ) |
| Commissions                                                                           |   |                      | 170    |   |   |   | 1,812 |   |   |   | (1,642 | ) |
| Interest                                                                              |   |                      | 3,176  |   |   |   | 2,243 |   |   |   | 933 |   |
| Total expenses                                                                        |   |                      | 49,559 |   |   |   | 46,234 |   |   |   | 3,325 |   |
|                                                                                  |   |                      |   |   |   |   |   |   |   |   |   |   |
| Income before interest income, equity in earnings in non-consolidated REITs and taxes |   |                      | 10,992 |   |   |   | 15,913 |   |   |   | (4,921 | ) |
| Interest income                                                                       |   |                      | 72     |   |   |   | 479 |   |   |   | (407 | ) |
| Equity in earnings in non-consolidated REITs                                          |   |                      | 1,235  |   |   |   | 1,487 |   |   |   | (252 | ) |
|                                                                                  |   |                      |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                                                                   |   |                      | 12,299 |   |   |   | 17,879 |   |   |   | (5,580 | ) |
| Income tax benefit                                                                    |   |                      | (374   | ) |   |   | (41 | ) |   |   | (333 | ) |
|                                                                                  |   |                      |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                            |   | $                         | 12,673 |   |   | $ | 17,920 |   |   | $ | (5,247 | ) |

|   | o | A $6.2 million decrease in syndication fees and transaction (loan commitment) fees, which was principally a result of the decrease in gross syndication proceeds for the six months ended June 30, 2009 compared to the same period in 2008. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | A decrease in loan interest income of approximately $0.1 million, which was principally a result of a larger loan receivable balance during the six months ended June 30, 2008 as compared the six months ended June 30, 2009, from which interest income is derived.  The impact of this decrease was also greater as a result of lower interest rates charged for the six months ended June 30, 2009 comparedto the same period in 2008. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | An increase to rental revenue of approximately $4.7 million arising primarily from the acquisition of a property in Virginia and a property in Missouri in December 2008, and to a lesser extent, the acquisition of a property in Texas in May 2008, and early termination fees of $0.3 million received during the six months ended June 30, 2009. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | o | An increase in real estate operating expenses and real estate taxes and insurance of approximately $1.3 million, and depreciation and amortization of $3.2 million, which were primarily from the acquisition of a property in Virginia and a property in Missouri in December 2008, and to a lesser extent, the acquisition of a property in Texas in May 2008. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | An increase in interest expense of approximately $0.9 million primarily as a result of the addition of the Term Loan, which was borrowed in October 2008; and was partially offset by a decrease in the average Revolver loan balance and lower average interest rates during the six months ended June 30, 2009 compared to the six months ended June 30, 2008. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | A decrease in general and administrative expenses of $0.5 million, which was primarily the result of a decrease in discretionary compensation of $0.7 million, which was partially offset by an increase from acquisition costs of $0.2 million that were recorded in the six months ended June 30, 2009 related to the acquisitions of two properties in June 2009.  We had 39 and 37 employees as of June 30,2009 and 2008, respectively, at our headquarters in Wakefield. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | A decrease in commission expense of $1.6 million, which was principally a result of the decrease in gross syndication proceeds in the six months ended June 30, 2009 compared to the same period in 2008. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| (in 000's)                              |      |   | Maximum |   |   | Amount    |   |   |     |   |   |    |   |   | Rate in   |   |
|-----------------------------------------|-----------|--------|---------|--------|--------|-----------|--------|--------|----------|--------|--------|---------|--------|--------|-----------|--------|
|                                    | Maturity  |   | Amount  |   |   | Drawn at  |   |   | Interest |   |   | Draw    |   |   | Effect at |   |
| Sponsored REIT                          | Date      |   | of Loan |   |   | 30-Jun-09 |   |   | Rate (1) |   |   | Fee (2) |   |   | 30-Jun-09 |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |
| Revolving lines of credit               |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |
| FSP Highland Place I Corp.              | 31-Dec-10 |   | $       | 5,500  |   |      | $      | 1,125  |     |   |   | L+2%    |   |   |      | n/a    |   |   |   | 2.32% |   |
| FSP Satellite Place Corp.               | 31-Mar-12 |   |    | 5,500  |   |      |   | 479    |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   | 3.32% |   |
| FSP 1441 Main Street Corp.(a)           | 31-Mar-12 |   |    | 10,800 |   |      |   | -      |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   |   |   |
| FSP 505 Waterford Corp.                 | 30-Nov-11 |   |    | 7,000  |   |      |   | -      |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   |   |   |
| FSP Phoenix Tower Corp.  (b)  | 30-Nov-11 |   |    | 15,000 |   |      |   | 3,600  |     |   |   | L+3%    |   |   |      | 0.5%   |   |   |   | 3.32% |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
| Construction loan                       |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
| FSP 385 Interlocken                     |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
|    Development Corp. (c) | 30-Apr-12 |   |    | 42,000 |   |      |   | 6,911  |     |   |   | L+3%    |   |   |      | n/a    |   |   |   | 3.32% |   |
|                                    |      |   |    |   |   |      |   |   |     |   |   |    |   |   |      |   |   |   |   |   |   |
|                                    |      |   | $       | 85,800 |   |      | $      | 12,115 |     |   |   |    |   |   |      |   |   |   |   |   |   |

| (1) The interest rate is 30-Day LIBOR rate plus the additional rate indicated                  |
|------------------------------------------------------------------------------------------------|
| (2) The draw fee is a percentage of each new advance, and is paid at the time of each new draw |
|                                                                                           |
| (a) The Borrower is FSP 1441 Main Street LLC, a wholly-owned subsidiary                        |
| (b) The Borrower is FSP Phoenix Tower Limited Partnership, a wholly-owned subsidiary           |
| (c) The Borrower is FSP 385 Interlocken LLC, a wholly-owned subsidiary                         |

----

|               |   | NotionalValue |   |   | StrikeRate |   |   | EffectiveDate |   |   | ExpirationDate |   |   | FairValue |    |
|--------------------|--------|---------------|--------|--------|------------|--------|--------|---------------|--------|--------|----------------|--------|--------|-----------|---------|
| Interest Rate Swap |   | $             | 75,000 |   |       |   | 5.840% |          |   |   | 10/2008        |   |   |      | 10/2011 |   |   | $ | (2,394) |   |
|               |   |          |   |   |       |   |   |          |   |   |           |   |   |      |    |   |   |   |   |   |

Our Term Loan hedging transaction used a derivative instrument that involves certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significantloss of basis in the contract. The counterparty to our derivative arrangement is RBS Citizens, N.A., which has a Moody’s rating of A1. As a result, we do not anticipate that the counterparty will fail to meet its obligations.  However, there can be no assurance that we will be able to adequately protect against the foregoing risks or that we will ultimately realize an economic benefit that exceeds the related amounts incurred in connection with engaging in such hedging strategies.

----

|         | Payment due by period(in thousands)  |
|--------------|--------------------------------------|
|         |
|         | Total                                | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| Revolver (1) | $   124,038           | $             - | $           - | $  124,038 | $           - | $           - | $           - |
| Term Loan    |      75,000 | - |            150 |      74,850 |              - |              - |              - |
| Total        | $   199,038           | $             - | $         150 | $  198,888 | $           - | $           - | $           - |

| (1) | The Revolver maturity is in 2011, however borrowings made thereunder are with 30-Day LIBOR advances, which are due or can be renewed at maturity. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        Period | (a)     Total Number ofShares (or Units)Purchased (1) (2) | (b)     Average PricePaid per Share(or Unit) | (c) Total Number ofShares (or Units)Purchased as Partof PubliclyAnnounced Plansor Programs(1) (2) | (d) Maximum Number (orApproximate DollarValue) of Shares (orUnits) that May Yet BePurchased Under thePlans or Programs(1) (2) |
|--------------------------------------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| 04/01/09-04/30/09                                | 0                                                                                  | N/A                                                                   | 0                                                                                                      | $31,240,465                                                                                                                        |
| 05/01/09-05/31/09                                | 0                                                                                  | N/A                                                                   | 0                                                                                                      | $31,240,465                                                                                                                        |
| 06/01/09-06/30/09                                | 0                                                                                  | N/A                                                                   | 0                                                                                                      | $31,240,465                                                                                                                        |
| Total:                                           | 0                                                                                  | N/A                                                                   | 0                                                                                                      | $31,240,465                                                                                                                        |

----

| Directors           |       For | Withheld  |
|---------------------|-----------------------------------------|-----------|
| John N. Burke       | 55,810,969                              | 2,107,478 |
| Barbara J. Fournier | 50,196,143                              | 7,722,304 |
| Barry Silverstein   | 56,525,005                              | 1,393,443 |

----

| Date                            | Signature                                                    | Title                                                             |
|---------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------|
|                            |                                                         |                                                              |
| Date:  August 4, 2009 | /s/ George J. Carter   George J. Carter  | Chief Executive Officer and Director(Principal Executive Officer) |
|                            |                                                         |                                                              |
| Date:  August 4, 2009 | /s/ John G. Demeritt   John G. Demeritt  | Chief Financial Officer(Principal Financial Officer)              |

----

|  Exhibit No. | Description                                                                                                                                                                        |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                               |
| 3.1 (1)           | Articles of Incorporation.                                                                                                                                                         |
|              |                                                                                                                                                                               |
| 3.2 (2)           | Amended and Restated By-laws.                                                                                                                                                      |
|              |                                                                                                                                                                               |
| 31.1*             | Certification of FSP Corp.’s President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|              |                                                                                                                                                                               |
| 31.2*             | Certification of FSP Corp.’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                              |
|              |                                                                                                                                                                               |
| 32.1*             | Certification of FSP Corp.’s President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|              |                                                                                                                                                                               |
| 32.2*             | Certification of FSP Corp.’s Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.               |
|              |                                                                                                                                                                               |

----

| (1)    | Incorporated by reference to FSP Corp.’s Form 8-A, filed April 5, 2005 (File No. 001-32470).                     |
|--------|------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                   |
| (2)    | Incorporated by reference to FSP Corp.’s Current Report on Form 8-K, filed on May 15, 2006 (File No. 001-32470). |

| *      | Filed herewith. |
|--------|-----------------|
|   |            |

----