<< Back

News Release

Federal Realty Closes $150 Million Notes Offering

ROCKVILLE, Md.--(BUSINESS WIRE)--Nov. 19, 2002--Federal Realty Investment Trust (NYSE:FRT) today closed its previously announced $150 million offering of senior unsecured notes due November 15, 2007.

The Trust intends to use the net proceeds of the offering, along with $20 million of available fire insurance proceeds and approximately $7 million from the Trust's line of credit, to pay off the $175 million balance outstanding under the construction loan for its recently opened Santana Row development in San Jose, California, and to retire such indebtedness.

The issuance of the senior unsecured notes completes the similar transaction that was priced, but did not close as a result of the August 19 fire at Santana Row.

"By closing this transaction today we have achieved three objectives with regard to our long-term business strategy," commented Larry E. Finger, chief financial officer of Federal Realty Investment Trust. "We converted secured debt to unsecured debt, decreased our floating rate debt exposure, and extended our debt maturities, all on advantageous terms."

The five-year notes, rated Baa2 by Moody's Investors Service and BBB by Standard & Poor's, were issued at 99.764% of par value with a coupon of 6.125% to yield 6.181% to investors. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing May 15, 2003.

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 15 million square feet of retail space located in major metropolitan markets across the United States.

The operating portfolio is currently 95.5% 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 annual dividend 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 Private Securities Litigation Reform Act of 1995. Although Federal Realty Investment Trust believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Factors that could cause actual results to differ materially from Federal's expectations are detailed from time to time in the Company's SEC reports and filings, including its annual report on Form 10-K. Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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