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News Release

Federal Realty Investment Trust Agrees to Sell Approximately 2.8 Million Common Shares

ROCKVILLE, Md.--(BUSINESS WIRE)--May 9, 2003--Federal Realty Investment Trust (NYSE:FRT) announced today that it has agreed to sell 2,814,126 common shares of beneficial interest in a public offering underwritten by Wachovia Securities. The sale will generate net proceeds to Federal Realty of approximately $85.7 million, or $30.457 per share, representing a 3.25% discount from the previous day's New York Stock Exchange (NYSE) closing price of $31.48. The Trust plans to use net proceeds of the sale, together with borrowings under the Trust's revolving credit facility, to redeem the Trust's 7.95% Series A Cumulative Redeemable Preferred Shares. Federal Realty expects to complete the redemption by the end of June 2003.

Federal Realty has granted Wachovia Securities a thirty-day option to purchase up to 422,119 additional common shares to cover any over-allotments.

A copy of the prospectus supplement and prospectus relating to the offering can be obtained from Wachovia Securities, 7 Saint Paul Street, 1st floor, Baltimore, MD 21202 (Attention: Equity Syndicate Desk).

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer of these securities in any State in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such State.

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 15.7 million square feet located in major metropolitan markets across the United States. The operating portfolio is currently over 94% occupied 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 35 consecutive years, the longest consecutive record in the REIT industry.

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

SOURCE: Federal Realty Investment Trust