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News Release

Federal Realty Announces Acquisition of Two Northern Virginia Shopping Centers; Centers Offer Significant Redevelopment and Re-tenanting Opportunities

ROCKVILLE, Md.--(BUSINESS WIRE)--April 1, 2003--Federal Realty Investment Trust (NYSE:FRT) today announced the acquisition of South Valley Shopping Center and Mount Vernon Plaza, adjacent properties located in Fairfax County, Virginia, one of the most affluent and highly-educated counties in the nation.

Acquired from unrelated, private owners, the Trust purchased the fee interest in South Valley Shopping Center for approximately $13.7 million in an all cash transaction and acquired the leasehold interest with a purchase option in Mount Vernon Plaza for aggregate consideration of approximately $17.5 million in the form of cash, down-REIT partnership units and the assumption of debt.

Federal Realty is confident in its ability to utilize its local market knowledge, and its strong redevelopment, leasing and operating skills to generate greater efficiencies and higher returns than available under separate ownership.

The shopping centers are located on the west side of Route 1 in Fairfax County, Virginia approximately three miles south of the Capital Beltway.

With more than 91,000 people and an average household income of over $94,000 within a three-mile radius of the properties, the acquisitions enhance the Trust's existing portfolio of properties located in densely populated affluent areas within the Washington, D.C. metropolitan area.

Originally constructed in 1966, and renovated and expanded in the 1980s, South Valley Shopping Center contains over 213,000 square feet of retail space and is currently anchored by Home Depot and TJ Maxx. The property is currently 83% occupied, with the most significant vacancy being a 16,000 square foot space at the site of a former Frank's Nursery.

Mount Vernon Plaza was constructed in 1972 and contains over 257,000 square feet with Shoppers Food Warehouse as its current anchor. The property is 67% occupied with the principal vacancy coming from an 80,000 square foot space previously leased to Ames, but now under the control of Federal Realty.

Federal Realty is currently evaluating a number of redevelopment and re-leasing scenarios with respect to the acquired properties, all of which would significantly increase the Trust's return on invested capital in the properties.

"We are thrilled with this rare opportunity to acquire both shopping centers and as a result, control 42 contiguous acres on Route 1 in Fairfax County," stated Jeffrey S. Berkes, the Trust's senior vice president of strategic transactions. "We're confident about our ability to create a dominant retail destination through re-tenanting and redevelopment in this improving sub-market of Washington, D.C."

"Acquisitions remain an integral part of our growth strategy," commented Donald C. Wood, Federal Realty's president and chief executive officer. "Our acquisitions team has been extremely patient and diligent in identifying operating shopping centers in our core markets that possess redevelopment and remerchandising potential in order to provide generous returns to our shareholders."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of shopping centers and street retail properties. Federal Realty's portfolio contains over 15.4 million square feet located in major metropolitan markets across the United States.

The operating portfolio is currently approximately 95% occupied by over 2,000 national, regional and local retailers with no single tenant accounting for more than 2.6% of rental revenue. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 35 consecutive years, the longest consecutive record in the REIT industry.

Shares of Federal Realty are traded on the New York Stock Exchange under the symbol FRT. Additional information about Federal Realty can be found on the Internet at www.federalrealty.com.

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The factors that may impact these expectations include those risks detailed from time to time in the Company's SEC reports, including its annual report on Form 10-K, its quarterly reports on Form 10-Q and its Form 8-K filed on March 25, 2003.

Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

CONTACT:
Federal Realty Investment Trust, Rockville
Investor Inquiries:
Andrew Blocher, 301/998-8166
ablocher@federalrealty.com
or
Media Inquiries:
Kristine Warner, 301/998-8212
kwarner@federalrealty.com

SOURCE: Federal Realty Investment Trust