ROCKVILLE, Md.--(BUSINESS WIRE)--Jan. 15, 2003--Federal Realty Investment Trust (NYSE:FRT) announced today that three of the Trust's five Kmart locations were on the list of 326 stores that Kmart Corporation intends to close as part of its chapter 11 bankruptcy reorganization.
The Kmart stores at Fresh Meadows in Queens, New York, Flourtown Shopping Center in Flourtown, Pennsylvania and Leesburg Plaza in Leesburg, Virginia were on the list of store closings issued by the troubled retailer on January 14, 2003. The Trust's two other Kmart locations, Rutgers Plaza in Franklin, New Jersey and Saugus Plaza in Saugus, Massachusetts, are not impacted at this time.
None of Federal Realty's properties were among the 284 underperforming Kmart stores that Kmart announced it was closing in March 2002.
"Over the past several years, Kmart's anchor presence has not contributed to Federal Realty's tenanting and merchandising objectives at these properties," commented Chris Weilminster, vice president of anchor tenant leasing. "A stronger, more vibrant retailer at these locations will improve traffic, sales and rents at these already successful properties."
Donald Wood, Federal Realty's president and chief executive officer stated, "Over the past several years, the Trust has demonstrated its ability, notwithstanding a short-term occupancy hit, to create value when leases have been re-claimed by Federal Realty due to rejection in bankruptcy. In light of the demographics of these properties and Kmart's in place rents, we expect these cases to be no different. To the extent that these locations aren't reclaimed by the Trust, but instead are assigned or subleased to other tenants by Kmart, we'd expect our returns at these properties to be enhanced by the improved tenant mix."
A summary of the demographics of Federal Realty's properties with Kmart exposure and the rents associated with those Kmart leases is attached below:
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Rent/
Kmart square
Property Location Population HH Income Size foot
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Kmart Store Closings
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Leesburg Plaza Leesburg, VA 33,600 $83,100 85,000 $2.66
sf
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Flourtown Shopping Flourtown, PA 64,400 $80,600 91,000 $3.36
Center sf
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Fresh Meadows Queens, NY 585,000 $68,500 150,000 $8.09
sf
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Remaining FRT Kmarts
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Saugus Plaza Saugus, MA 105,600 $69,100 84,000 $3.81
sf
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Rutgers Plaza Franklin, NJ 92,700 $73,200 99,000 $2.50
sf
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FRT Shopping Center
Portfolio Average 140,800 $81,300 $14.65
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Population and Household Income data utilizes a three-mile radius
Data provided by ESRI Business Information Solutions
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 million square feet located in major metropolitan markets across the United States.
The operating portfolio is currently approximately 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 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. These factors include:
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Our inability to control the Kmart bankruptcy process;
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Risks normally associated with the real estate industry, including risks that our tenants, including Kmart, will not pay rent in accordance with their leases or that we may be unable to renew leases or relet space at favorable rents as leases expire or are terminate; and
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Those risks detailed from time to time in the Company's SEC reports, including its annual report on Form 10-K and its quarterly reports on Form 10-Q.
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
