Federal Realty Extends Record of Consecutive Annual Dividend Increases to 38 Years

ROCKVILLE, Md., Sept. 7 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) announced today that its Board of Trustees has declared a regular quarterly cash dividend of $0.555 per share on its common shares, resulting in an indicated annual rate of $2.22 per share. The dividend will be payable on October 14, 2005 to common shareholders of record as of September 23, 2005.

In June 2005, the Trust announced the largest dividend increase in Federal Realty's 43-year history, and the largest percentage increase in the common dividend since 1988. As a result, cash dividends per common share paid in 2005 will represent more than a seven percent increase over cash dividends per common share paid in 2004, and will mark 2005 as the 38th consecutive year that Federal Realty has increased its common dividend, the longest consecutive record in the REIT industry.

"We are very pleased that we have once again increased our annual common share dividend for 2005, and that our strong operating performance and future growth prospects support this year's seven percent increase in our annual dividend rate," said Donald C. Wood, Federal Realty's President and Chief Executive Officer. "Federal Realty's record of consecutive annual dividend increases is a great source of pride for the entire Federal Realty team."

Federal Realty's Board of Trustees also declared a regular quarterly cash dividend of $0.53125 per share on the Trust's Series B Cumulative Redeemable Preferred Shares (NYSE: FRTprB). Dividends on the Series B Cumulative Redeemable Preferred Shares will be payable on October 31, 2005 to shareholders of record on October 14, 2005.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 17.4 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 0.5 million square feet of retail space through its joint venture with Clarion Lion Properties Fund in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.0% leased to national, regional, and local retailers as of June 30, 2005, with no single tenant accounting for more than 2.2% 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 38 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.

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 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 Realty's expectations are detailed from time to time in our SEC reports, including our annual report on Form 10-K, our quarterly reports on Form 10-Q, and the risks contained in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 2, 2005. Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

SOURCE Federal Realty Investment Trust

CONTACT:
Investor and Media Inquiries:
Andrew Blocher, Vice President, Capital Markets & Investor Relations,
1-301-998-8166, ablocher@federalrealty.com,
or Suzanne O'Neill, Manager, Investor Relations,
1-301-998-8358, soneill@federalrealty.com,
both of Federal Realty Investment Trust

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