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News Release

Federal Realty Investment Trust Announces First Quarter 2002 Operating Results
ROCKVILLE, Md., Apr 29, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2002.

    --  Funds from operations (FFO), excluding restructuring charges,
        increased to $0.67 per diluted share
    --  Net operating income increased 6.8% on a same-center basis
    --  Occupancy remained strong at 95.5% at quarter end
    Financial Results
The Trust reported FFO of $19.0 million for the first quarter, or $0.46 per diluted share. This includes a $0.21 charge recognized as a result of the change in business strategy and resulting restructuring announced March 11, 2002. Excluding these charges, the Trust reported FFO of $27.5 million, or $0.67 per diluted share, a 1.5% increase over the $0.66 reported for last year's first quarter and $0.01 above consensus First Call estimates.

Portfolio Results

Rental income increased 7.1% from $66.8 million in 2001 to $71.6 million in 2002. On a same-center basis, which excludes the impact of properties acquired, developed or sold during the analyzed periods, rental income increased 5.1% from $65.7 million to $69.0 million. Net operating income increased 6.2% from $49.8 million to $52.9 million. On a same center basis, net operating income increased 6.8% from $47.3 million to $50.5 million. Strong core operating performance, net of pre-opening expenses incurred at Santana Row, was the primary driver of the improvement in funds from operations.

At March 31, 2002, overall occupancy remained strong at 95.5%, compared to 95.4% on March 31, 2001.

During the first quarter, the Trust signed leases for over 258,000 square feet of retail space and 37,000 square feet of office space. On a comparable retail space basis, the Trust leased over 225,000 square feet at an average increase in rent per square foot of 7%. The weighted-average new rent on these same space leases was $23.34 per square foot compared to the previous average rent of $21.81 per square foot.

"Our outstanding locations have resulted in strong occupancy during a time when others are reporting significant declines," stated Donald C. Wood, president and chief operating officer for Federal Realty. "Additionally, our properties are situated in areas with excellent demographics and barriers to entry, which positions the Trust to continue to produce superior results."

Santana Row Update

At Santana Row, Federal Realty's mixed-use community in San Jose, California, construction is advancing in anticipation of the September 19 opening date. Retail leasing continues to progress as the Trust has executed 78 leases and letters of intent, totaling 325,000 square feet, comprising 83% of first floor space directly on the main street of the project, ensuring a vibrant street experience by the opening date. After a thorough and conservative review of project costs, the Trust estimates the total cost of Phase I to be $500 million, which includes all infrastructure and 19 acres of undeveloped land on which the Trust has entitlements to build an additional 700 residential units and approximately 200,000 square feet of retail space.

Guidance and Conference Call Information

Federal Realty's management team will present a more in depth discussion of the Trust's operating performance and provide earnings guidance on its first quarter earnings conference call, which is scheduled for Tuesday, April 30, 2002 at 11:00 A.M. Eastern Time. To participate, please call 800/319-9003 five to ten minutes prior to the start time. Federal Realty will also provide an online Web Simulcast on the company's web site, www.federalrealty.com available for seven days following the conference call. A telephone recording of the call can also be heard by dialing 888/203-1112. The passcode for this replay is 510761.

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 15.1 million square feet located in major metropolitan markets across the United States. The operating portfolio is currently 95.5% leased to over 2,100 national, regional and local retailers with no single tenant accounting for more than 2.4% 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 34 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 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.

                         Financial Highlights
                 (in thousands, except per share data)
                              (unaudited)
                                                 Three Months Ended
                                                      March 31,
OPERATING RESULTS                                2002          2001
                                               --------      --------
Revenues
 Rental income                                 $ 71,575      $ 66,825
 Other property income                            3,482         2,709
 Interest  and other income                       1,261         1,857
                                               --------      --------
                                                 76,318        71,391
Expenses
 Rental                                          15,622        15,029
 Real estate taxes                                7,832         6,600
 Interest                                        16,640        17,150
 Administrative                                   2,999         3,133
 Restructuring expenses                           8,489          --
 Depreciation and amortization                   15,986        14,110
                                               --------      --------
                                                 67,568        56,022
                                               --------      --------
 Operating income before investors'
  share of operations and
  discontinued operations                         8,750        15,369
 Investors' share of operations                    (697)       (1,378)
                                               --------      --------
 Income before loss on abandoned
  developments held for sale
  and discontinued operations                     8,053        13,991
 Discontinued operations                            263           242
                                               --------      --------
 Income before loss on abandoned
  developments held for sale                      8,316        14,233
 Loss on abandoned developments
  held for sale                                  (9,647)         --
                                               --------      --------
             Net (loss) income                   (1,331)       14,233
 Dividends on preferred stock                    (4,856)       (1,988)
                                               --------      --------
 Net (loss) income available
  for common shareholders                      ($ 6,187)     $ 12,245
                                               ========      ========
 Earnings per common share, basic
    Income before loss on
     abandoned developments held for
     sale and discontinued
     operations                                $   0.08      $   0.31
    Discontinued operations                        0.01          0.01
    Loss on abandoned developments
     held for sale                                (0.24)         --
                                               --------      --------
                                               ($  0.15)     $   0.32
                                               ========      ========
 Weighted average number of common
  shares, basic                                  39,702        38,822
                                               ========      ========
 Earnings per common share, diluted
    Income before loss on abandoned
     developments held for sale
     and discontinued operations               $   0.08      $   0.31
    Discontinued operations                        0.01          0.01
    Loss on abandoned developments
     held for sale                                (0.24)         --
                                               --------      --------
                                               ($  0.15)     $   0.32
                                               ========      ========
 Weighted average number of common
  shares, diluted                                40,942        39,856
                                               ========      ========
  Funds from Operations
    Net (loss) income available for
     common shareholders                       ($6,187)      $ 12,245
    Add: loss on abandoned developments
     held for sale                                9,647             -
    Add: depreciation and amortization
     of real estate assets                       14,537        12,866
    Add: amortization of initial
     direct costs of leases                       1,171           969
    Add: (loss) income attributable to
     operating partnership units                   (136)          299
                                               --------      --------
    Funds from operations                      $ 19,032      $ 26,379
                                               ========      ========
    Funds from operations per share, diluted   $   0.46      $   0.66
                                               ========      ========
                     Financial Highlights (continued)
                  (in thousands, except per share data)
                                           March 31,     December 31,
BALANCE SHEET DATA                           2002           2001
                                          -----------    -----------
                                           (unaudited)
Assets
 Real estate, at cost
  Operating                               $ 1,770,455    $ 1,782,318
  Development                                 356,450        321,986
  Held for sale                                18,141           --
                                          -----------    -----------
                                            2,145,046      2,104,304
 Accumulated depreciation
  and amortization                           (410,295)      (395,767)
                                          -----------    -----------
                                            1,734,751      1,708,537
 Mortgage notes receivable                     48,661         35,607
 Cash and investments                          17,325         17,563
 Receivables                                   17,095         18,580
 Other assets                                  57,367         57,691
                                          -----------    -----------
Total assets                              $ 1,875,199    $ 1,837,978
                                          ===========    ===========
Liabilities and Shareholders' Equity
 Obligations under capital leases,
  mortgages and construction loans        $   481,001    $   450,336
 Notes payable                                185,801        174,843
 Senior Notes                                 410,000        410,000
 5 1/4% Convertible subordinated
  debentures                                   75,289         75,289
 Other liabilities                            139,770        135,122
Shareholders' Equity                          583,338        592,388
                                          -----------    -----------
Total Liabilities and Shareholders'
 Equity                                   $ 1,875,199    $ 1,837,978
                                          ===========    ===========

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

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