Investor PresentationFebruary 2013February 2013

Forward Looking Statements

Although the Company believes the expectations reflected in such forward-looking statements are based onreasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that couldcause actual results to differ materially from the Company’s expectations include changes in general or regionaleconomic conditions; the Company’s ability to timely lease or re-lease space at current or anticipated rents; changesin interest rates; changes in operating costs; the Company’s ability to complete acquisitions on acceptable terms; the; g p g ; p y y p q p ;Company’s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or otherrequired payment dates; the Company’s ability to maintain financial covenant compliance under its debt agreements;the Company’s ability to remediate the material weakness in its internal controls over financial reporting described inits 10-K for the year ended December 31, 2011 and to re-establish and maintain effective internal controls overfinancial reporting and disclosure controls and procedures; the impact of the Company’s recent internal investigation,including any remedial actions and enhancement measures implemented in response to the internal investigation; theincluding any remedial actions and enhancement measures implemented in response to the internal investigation; theCompany’s ability to obtain debt and/or financing on attractive terms, or at all; and other risks detailed in theCompany’s Annual Report on Form 10-K and described from time to time in the Company’s filings with the SEC.Many of these factors are beyond the Company’s ability to control or predict. Forward-looking statements are notguarantees of performance. For forward-looking statements herein, the Company claims the protection of the safeharbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. TheCompany assumes no obligation to update or supplement forward looking statements that become untrue because ofCompany assumes no obligation to update or supplement forward-looking statements that become untrue because ofsubsequent events.

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Company Highlights

• 60% of portfolio concentrated in the Washington D.C. metropolitan region, which added30,000 private sector jobs in 2012 and more than made up for the federal government cuts

• Committed to further streamlining strategic focus on office properties, which wouldrepresent more than 50% of total revenue after the potential industrial portfolio sale

• Proven ability to effectively lease properties during difficult leasing environments• Proven ability to effectively lease properties during difficult leasing environments• Increased occupancy to 83%, which is 120 basis points above our occupancy of a

year ago, despite the approximately 300,000 square feet of newly delivered space in2012

• Demonstrated significant progress in leasing value-add, high quality office assets

• Embedded growth opportunities to maximize cash flow and focus on long term valuecreation for shareholders

• Willingness to recycle capital by disposing of assets where value has been maximized inorder to enhance financial flexibility

• Improving balance sheet capacity and expanding available sources of capital

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Improving balance sheet capacity and expanding available sources of capital

Updated Strategic and Capital Plan

• POTENTIAL INDUSTRIAL PORTFOLIO SALE

• Portfolio represents approximately 4.3 million square feet, 2.6 million square feet of whichPortfolio represents approximately 4.3 million square feet, 2.6 million square feet of whichis located in Southern Virginia.

• Result in a greater concentration of high-quality office properties in the Washington, D.C.metropolitan region

• Further strengthen operating metricsP d f i l l ill l l b d di d b• Proceeds from potential sale will largely be used to repay outstanding debt

• IMPROVE BALANCE SHEET AND REDUCE LEVERAGE

• Strategic goal to achieve investment grade credit metrics which requires a reduction inStrategic goal to achieve investment grade credit metrics, which requires a reduction inleverage, as well as an increase in the asset base and the size of our unencumberedasset pool

• Achieve 6X Debt to EBITDA ratio over time• Reduce risk on significant capital commitments, specifically at the Greyhound site, by

exploring potential joint venture opportunities

• RIGHT SIZED DIVIDEND

• Generate approximately $10 4 million of additional cash on an annual basis

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• Generate approximately $10.4 million of additional cash on an annual basis• Establishes a strong base for future dividend growth

Portfolio Management Function

• Portfolio management function evolved in 2012 from a group that was previously muchmore focused on financial analysis

• The team is reviewing the strategic plans for each of our assets, and providingrecommendations to the operations team

• The individual strategic plans will be based on corporate objectives and current market• The individual strategic plans will be based on corporate objectives and current marketconditions

• These individual strategic plans will be constantly updated, and will serve as the roadmapfor operations at each of our propertiesp p p

• The implementation of the portfolio management function allows the operations team toexecute on the strategic plans rather than putting them together

Portfolio management function is leveraging real estate experience to improve our• Portfolio management function is leveraging real estate experience to improve ouroperational platform in 2013 and beyond

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Portfolio Repositioning

WHERE WE WERE IN 2008 WHERE WE ARE GOING

6.4%

% of Annualized Cash Basis Rent

3.6%1.2%

% of Annualized Cash Basis Rent

Office 27.5% Office

Business Park 52.1%41.5%Business Park

Industrial

67.7%Business Park

Industrial

Retail

Office comprised under 4% of our Expect Office to comprise over 50% of

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Office comprised under 4% of our portfolio

Expect Office to comprise over 50% of our portfolio

Note: The entire industrial portfolio except for Newington Business Park Center and Plaza 500 is currently being marketed for disposition in 2013.

Targeted Portfolio

100% of Our Portfolio is Located in the Greater Washington, D.C. Region

Washington, D.C. Metropolitan Region• 7th largest MSA with 5 7 million people• 7th largest MSA with 5.7 million people• 2nd largest office market with over 450million square feet of office space• 5.8% unemployment rate, which is one ofthe lowest among major metropolitan areas

FPO owns approximately 14 million squareof office, business park and industrialproperties• Over 60% is located in the Washington D.C.metropolitan regionmetropolitan region• Potential industrial portfolio sale is expectedto reduce our exposure in Southern Virginia by2.6 million square feet

FPO is pro ing to be one of the inners inFPO is proving to be one of the winners inthe region• Tenant demand is shifting to high quality,

well located properties• Tenants in the market are paying up for

th t LEED tifi d ith ffi i t

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Note: Properties in yellow are being marketed for disposition in 2013 as part of the industrial portfolio sale.

newer, that are LEED certified, with efficientfloor plates, in transportation and amenityrich submarkets

Competitive Real Estate Advantages

Significantly upgraded portfolio by acquiring properties that are newer, more energy efficient, and in excellent locations

• EXCELLENT LOCATIONS - Newly acquired office assets are in transportation friendly and amenityrich areas in downtown Washington D.C. and strong suburban submarkets

• YOUNGER AGE - Weighted average age of our multi-story office portfolio is approximately 13 years,versus average age of peers of approximately 30 years

• ENERGY EFFICIENT - Dramatically increased multi-story office Leadership in Energy &Environmental Design (LEED) certified, and Energy Star rated, square footage and will continue to doso as our redevelopment and development opportunities come onlineso as our redevelopment and development opportunities come online

• Approximately half of the occupied multi-story office portfolio is Energy Star or LEED certified.• Nearly one million square feet of potential additional redevelopment and developmentprojects are targeting LEED certification

Atl ti C t P k R dl d C t C t d Th Fli t Hill h hi d• Atlantic Corporate Park, Redland Corporate Center, and Three Flint Hill have achievedLEED Gold certification

• The average Energy Star score of our DC portfolio is 78 out of 100, which is above the LEEDrequirement

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q

• 82% of the Washington D.C. portfolio is Energy Star certified

Company Attributes

• Established relationships in the Washington D.C. region with local owners, the brokeragecommunity, and prospective tenants

• Our Washington D.C. office portfolio remained 99% leased throughout 2012

• Exceeded 2.2 million square feet of leases for the year, including 921,000 square feet of newleases which exceeded our goal of 850 000 square feet of new leasing for the yearleases, which exceeded our goal of 850,000 square feet of new leasing for the year

• Delivered 250,000 square feet of positive net absorption for 2012 in a market that hadsubstantial negative net absorption

• Value-add properties, which include Redland Corporate Center, Three Flint Hill, and AtlanticCorporate Park, drove positive NOI growth in 2012, and are expected to contribute evenmore in 2013

Meaningful embedded upside potential in our current portfolio after the potential industrial• Meaningful embedded upside potential in our current portfolio after the potential industrialsale is executed

• Management team that is committed to maximizing the value of our portfolio for shareholders

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Portfolio Diversification

FPO’s Portfolio is Well-Diversified Across Most Metrics

Lease Expiration Schedule

Food ServicesAdministrative

& SupportEducation

2%

Wholesale Trade

5%

Tenant Industry Diversification

Year of LeaseNumber of

Leases Leased

% of Leased Square Food Services

1% 5%Construction

2% Entertainment2%

Finance &

Health Services6%

Transportation & Warehousing

6%

Year of Lease Expiration

Leases Expiring

Leased Square Feet

Square Feet

MTM 6 56,290 0.5%2013 125 1,363,933 11.9%

Insurance9%

Manufacturing10%

Technology & Information

31%

, ,2014 147 1,522,020 13.3%2015 115 1,233,206 10.8%2016 101 1,901,348 16.6%2017 94 1,111,652 9.7%2018 71 1,315,079 11.5%

Other4%

Government12%

Retail4%

2019 56 593,698 5.2%2020 27 614,226 5.4%2021 20 496,391 4.3%2022 23 395,330 3.5%

Thereafter 23 818,248 7.2%T t l/W i ht d

10

4%

Real Estate1%

808 11,421,421 100.0%Total/Weighted

Average

Embedded Value Creation

• Includes just over 200,000 square feet of high quality, value-add, office vacancy at RedlandCorporate Center, Atlantic Corporate Park and Three Flint Hill

• We have been the beneficiary of tenant demand at our value-add properties, which is illustrated bythe lease up below

Redland Corporate Center Three Flint Hill

90.0%

100.0%

80 0%90.0%

100.0%

60 0%

70.0%

80.0%

40.0%50.0%60.0%70.0%80.0%

40.0%

50.0%

60.0%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q120.0%

10.0%20.0%30.0%

4Q11 1Q12 2Q12 3Q12 4Q12

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1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

Redland Corporate Center Leased %4Q11 1Q12 2Q12 3Q12 4Q12

Three Flint Hill Leased %

Financial Highlights

Q4-2012 Q3-2012 Q2-2012 Q1-2012 Q4-2011Performance MetricsFFO available to common shareholders(1) 16,601$ 19,931$ 1,152$ 14,433$ 14,811$ Core FFO(1) 16,805$ 15,297$ 16,929$ 14,555$ 15,578$ FFO available to common shareholders per share 0.31$ 0.38$ 0.02$ 0.27$ 0.28$

$ $ $ $ $Core FFO per share 0.32$ 0.29$ 0.32$ 0.28$ 0.30$

Operating MetricsChange in Same-Property NOI

Cash Basis 5.3% 1.6% 3.0% 2.8% (1.0)%Accrual Basis 6.3% 3.2% 3.5% 2.0% (0.8)%

AssetsTotal Assets 1,717,748$ 1,714,237$ 1,728,479$ 1,738,610$ 1,739,752$

Debt BalancesUnhedged Variable Rate Debt 165,000$ 129,000$ 194,000$ 152,000$ 238,000$

(2)Hedged Variable Rate Debt(2) 350,000 350,000 350,000 275,000 200,000 Fixed Rate Debt 418,864 442,267 384,752 483,241 507,023 Total 933,864$ 921,267$ 928,752$ 910,241$ 945,023$

Leasing MetricsNet Absorption (Square Feet)(3) 48,946 54,841 12,445 133,916 (80,056) Tenant Retention Rate 58% 75% 76% 51% 63%Leased % 84.9% 84.9% 85.4% 84.9% 84.3%Occupancy % 83.0% 83.2% 84.0% 83.0% 81.8%

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(1) See page 19 of the Company’s Supplemental Financial Information for a reconciliation of FFO available to common shareholders and Core FFO to net income (loss)attributable to common shareholders.(2) As of December 31, 2012, the Company had fixed LIBOR at a weighted averaged rate of 1.5% on $350.0 million of its variable rate debt through twelve interest rate swapagreements.(3) Net Absorption includes adjustments made for pre-leasing, deals signed in advance of an existing lease expiration and unforeseen terminations.