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News Release

Federal Realty Closes $550 Million Unsecured Credit Facility

ROCKVILLE, Md.--(BUSINESS WIRE)--Oct. 8, 2003--Federal Realty Investment Trust (NYSE:FRT) today announced the closing of a new $550 million unsecured credit facility to replace its existing $300 million revolving credit facility and $125 million term loan, both of which were scheduled to mature on December 19, 2003. The new credit facility consists of a $150 million five-year term loan, a $100 million three-year term loan, and a $300 million three-year revolving credit facility, with a one-year extension option. The term loans are priced at LIBOR plus 95 basis points, while the revolving credit facility is priced at LIBOR plus 75 basis points.

Wachovia Securities, Inc., acted as the Sole Lead Arranger and Administrative Agent for all three components of the new facility. Titled Agents include Commerzbank, New York Branch as the sole Syndication Agent, Wells Fargo Bank N.A., Bank One and SunTrust Bank as Documentation Agents, and PNC Real Estate Finance, Eurohypo AG, New York Branch and Fleet National Bank as Managing Agents. Other participating institutions include, KeyBank National Association, AmSouth Bank, Citicorp North America, Inc., RBC Financial Group, Sovereign Bank New England, Branch Banking & Trust Co., Chevy Chase Bank, Erste Bank, New York Branch, Chang Hwa Commercial Bank, Ltd., First Commercial Bank of Taiwan and E. Sun Commercial Bank, Ltd., Los Angeles Branch.

"Our new credit facility decreases the Trust's refinancing risk and increases our financial flexibility on more favorable terms than our previous facilities," commented Larry Finger, Federal Realty's Senior Vice President and Chief Financial Officer. "The facility was substantially oversubscribed, reflecting the lending community's strong support of our shopping center focused business strategy."

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 approximately 15.8 million square feet located in major metropolitan markets across the United States. The operating portfolio was approximately 93% occupied on June 30, 2003, by over 2,000 national, regional, and local retailers, with no single tenant accounting for more than 2.5% 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 36 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.

    CONTACT: Federal Realty Investment Trust
             Investor Inquiries:
             Andrew Blocher, 301-998-8166
             Media Inquiries:
             Kristine Warner, 301-998-8212

    SOURCE: Federal Realty Investment Trust