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News Release

Federal Realty Investment Trust Acquires Friendship Centre in Chevy Chase, Washington, D.C.

ROCKVILLE, Md.--(BUSINESS WIRE)--Sept. 24, 2001--Federal Realty Investment Trust (NYSE:FRT) today announced the acquisition of Friendship Centre in the Chevy Chase neighborhood of Washington, D.C., for $32.7 million.

A portion of the purchase price was funded with proceeds from the sale of Williamsburg Shopping Center in April 2001 as part of a Section 1031 Tax-Deferred Exchange.

Friendship Centre is located on Wisconsin Avenue in the affluent neighborhood of Chevy Chase/Friendship Heights in northwest Washington, D.C. Noted as one of the most prestigious shopping districts in the area, this property is strategically situated directly across from the recently redeveloped Mazza Gallerie which features Neiman Marcus and Saks Fifth Avenue men's store, and adjacent to Chevy Chase Pavilion, where Pottery Barn, Cheesecake Factory and Embassy Suites are principal tenants.

This neighborhood will be further solidified by a comprehensive redevelopment plan which was recently approved that will add several hundred thousand square feet of primarily office and residential space in coming years.

Originally constructed in 1998, Friendship Centre comprises 119,000 square feet of "Street Retail" space and a 125-space below-grade-parking garage. The property's tenants include Maggiano's, Borders Books, Eddie Bauer and Linens `n Things.

"Through the exchange of Williamsburg Shopping Center for Friendship Centre, the Trust has been able to create superior prospects for income growth while, at the same time, enhancing the overall population and income demographics of its operating portfolio.", stated Donald C. Wood, president and chief operating officer for Federal Realty.

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of high quality retail and mixed-use properties. Federal Realty owns or has an interest in 56 community and neighborhood shopping centers comprising over 11 million square feet, primarily located in densely populated communities throughout the Northeast and Mid-Atlantic United States.

The Trust's predominately grocery-anchored shopping center portfolio is one of the best-leased and most productive necessity-based portfolios in the industry. In addition, Federal Realty owns or has an interest in 96 retail and urban mixed-use properties comprising almost 3 million square feet located in strategic metropolitan markets across the United States. The Trust is nationally recognized for its main street revitalization programs as well as the development of urban mixed-use, pedestrian-friendly communities.

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 34 consecutive years. 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.

Federal Realty Investment Trust
Media Inquiries
Kris Warner, 301/998-8212
Investor Inquiries
Andrew Blocher, 301/998-8166