Real Estate Operations:  FSP owns a moderately-leveraged portfolio of real estate assets, consisting primarily of suburban office buildings, as well as select investments in Central Business District (CBD) properties. The Company’s real estate operations include property acquisitions and dispositions, interim acquisition and short-term debt financing, leasing, development and property/asset management.

Investment Banking:  FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. The primary activity of the investment bank is the organization of single-asset REITs that acquire, own and operate specific real estate properties. FSP Investments LLC raises the capital required to equitize those REITs through private placement offerings.

FSP has three major business components that contribute to its profitability. 
They are:

Rental income from properties:

• Moderately-leveraged portfolio of real estate properties geographically diversified across the country

Gains or losses on the sale of properties:

• Sale proceeds are generally redeployed into new real estate assets in an attempt to continually upgrade the portfolio

Fee income from real estate investment banking activities:

• The sale of equity interests in sponsored REITs generates transaction and fee income

FSP provides its stockholders with the opportunity to participate not only in the rental income and appreciation potential of its properties, but also in the income from all other business activities that are part of what has become a nationally-recognized real estate investment bank and property manager.

FSP offers a unique product/strategy. Unlike many real estate investment companies, which have utilized significant leverage in an attempt to enhance their real estate portfolio’s returns, FSP to date has used very moderate leverage. FSP’s historical growth has been achieved without the use of permanent mortgage debt on any of our properties. This business model has significantly reduced the risk profile of FSP’s product offering by more appropriately matching the long-term nature of real estate as an asset class with substantial amounts of permanent equity. By reducing foreclosure, financing and refinancing risk from the product offering, FSP has been able to offer high-quality risk adjusted returns. In addition, FSP believes that it can lower investment risk while enhancing current income and long-term appreciation potential by owning properties in diversified geographic locations that have sound long-term economic growth potential. To take advantage of opportunities that may present themselves as a result of the current turmoil surrounding the real estate/mortgage markets, FSP may increase its use of mortgage debt to help fund new property acquisitions and, thus, begin to create a larger but still moderately-leveraged real estate portfolio.

FSP is focused on achieving current income and long-term growth through investments in commercial properties. FSP’s knowledge of the real estate industry and understanding of its return generating characteristics allow it to identify better-quality assets for investment. Continued long-term investment perspective and discipline, consistently applied to property investing by experienced FSP professionals, will give our stockholders the best opportunity for sustained growth in the intrinsic value of our company.

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.