Franklin Street Properties Corp. Announces Recast of Existing $150 Million Unsecured Term Loan

Franklin Street Properties Corp. (the “Company”, “FSP”, “our” or “we”) (NYSE American: FSP) announced today that it recast its existing $150 million unsecured term loan (as amended, the “JPM Term Loan”) with JPMorgan Chase Bank, N.A. (“JPMorgan”) continuing to serve as Administrative Agent. A summary of key terms is below:

• Principal amount outstanding of $150 million remained unchanged.
• Maturity date was extended from November 30, 2018 to November 30, 2021, plus two optional six-month extensions.
• Depending on the Company’s credit rating, the margin over the Eurodollar Rate decreased from a range of 110-185 basis points to a range of 85-165 basis points. In addition, depending on the Company’s credit rating, the margin over the base rate decreased from a range of 10-85 basis points to a range of 0-65 basis points. Based on the Company’s credit rating of Baa3 with Moody’s as of August 2, 2018, our margin over the Eurodollar Rate decreased from 135 basis points to 125 basis points.

FSP was represented by Wilmer Cutler Pickering Hale and Dorr LLP and JPMorgan was represented by Goulston & Storrs PC. Participating banks include:

George J. Carter, Chairman and Chief Executive Officer of FSP, said, “We believe that the recast of our term loan with JPMorgan helps to better align the risk/reward characteristics of our capital structure with the long-term, value-add growth opportunities that we believe exist in our now predominantly urban and infill office property portfolio. We appreciate the continued confidence shown in FSP by each of the participating banks.”

This press release, along with other news about FSP, 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.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on investing in institutional-quality office properties in the U.S. FSP’s strategy is to invest in select urban infill and central business district (CBD) properties, with primary emphasis on our five core markets of Atlanta, Dallas, Denver, Houston, and Minneapolis. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.

Forward-Looking Statements

Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which 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, economic conditions in the United States, 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, 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, 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, 2017, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.

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