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News Release

Federal Realty Investment Trust Announces Fourth Quarter and Year-End 2007 Operating Results

ROCKVILLE, Md., Feb. 12 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today reported operating results for its fourth quarter and year-ended December 31, 2007.

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO )

    -- Funds from operations available for common shareholders (FFO) per
       diluted share was $0.92 and earnings per diluted share was $2.14 for
       fourth quarter 2007, compared to $0.86 (excluding the $0.09 per diluted
       share non-cash preferred share redemption charge in fourth quarter
       2006) and $0.32, respectively, for fourth quarter 2006.
    -- For year-end 2007, FFO per diluted share was $3.63 and earnings per
       diluted share were $3.45, compared to $3.35 (excluding the $0.09 per
       diluted share preferred share redemption charge) and $1.92,
       respectively, for 2006.
    -- Same-center property operating income for fourth quarter 2007 increased
       4.9% including redevelopments and expansions, and 4.2% excluding
       redevelopments and expansions, over fourth quarter 2006.
    -- Rent increases on lease rollovers of comparable retail space for fourth
       quarter 2007 were 22% on a cash-basis and 31% on a GAAP-basis.
    -- Guidance for 2008 FFO per diluted share remains unchanged at $3.89 to
       $3.94.


    Financial Results

In fourth quarter 2007, Federal Realty generated FFO of $52.8 million, or $0.92 per diluted share. This compares to FFO of $48.0 million, or $0.86 per diluted share (excluding $4.8 million, or $0.09 per diluted share preferred share redemption charge), in fourth quarter 2006. For the year ended December 31, 2007, Federal Realty generated FFO of $206.8 million, or $3.63 per diluted share. This compares to FFO of $181.9 million, or $3.35 per diluted share (excluding the preferred share redemption charge), in 2006.

Net income available for common shareholders was $122.0 million and earnings per diluted share was $2.14 for the quarter ended December 31, 2007 versus $17.8 million and $0.32, respectively, for fourth quarter 2006. For the full year 2007, Federal Realty reported net income available for common shareholders of $195.1 million, or $3.45 per diluted share. This compares to net income available for common shareholders of $103.5 million, or $1.92 per diluted share, for the year ended December 31, 2006. The increases in net income available for common shareholders include an increase in gain on sale of real estate of $95.7 million ($1.68 per diluted share) for the quarter ended December 31, 2007 over the quarter ended December 31, 2006, and $70.8 million ($1.23 per diluted share) for the full year of 2007 over 2006.

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO and FFO per diluted share to net income is attached to this press release.

Portfolio Results

In fourth quarter 2007, same-center property operating income, including redevelopment and expansion properties, increased 4.9% over fourth quarter 2006. When redevelopment and expansion properties are excluded from same- center results, property operating income for fourth quarter 2007 increased 4.2% compared to fourth quarter 2006. On an annual basis, same-center property operating income in 2007 increased 4.9% including redevelopments and expansions, and 3.5% excluding redevelopments and expansions.

The Trust's overall portfolio was 96.7% leased as of December 31, 2007, compared to 96.5% on December 31, 2006. Federal Realty's same-center portfolio was 96.7% leased on December 31, 2007, compared to 96.8% on December 31, 2006.

During fourth quarter 2007, the Trust signed 93 leases for 483,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 472,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 22%. The average contractual rent on this comparable space for the first year of the new lease is $19.65 per square foot compared to the average contractual rent of $16.04 per square foot for the last year of the prior lease. The previous average contractual rent is calculated by including both the minimum rent and the percentage rent actually paid during the last year of the lease term for the re-leased space. On a GAAP basis (i.e., including the impact of straight-line rents), rent increases per square foot for comparable retail space averaged 31% for fourth quarter 2007.

For all of 2007, Federal Realty signed 312 leases representing 1.6 million square feet of comparable retail space at an average cash-basis contractual rent increase per square foot of 20%, and 30% on a GAAP-basis. The average cash-basis contractual rent on this comparable space for the first year of the new lease is $24.21 per square foot compared to the average cash-basis contractual rent of $20.24 per square foot for the last year of the prior lease. As of December 31, 2007, Federal Realty's average contractual minimum rent for retail and commercial space in its portfolio is $20.42 per square foot.

"Federal Realty's business strategy delivered another year of strong results in 2007 with significant contributions from leasing, development, acquisitions and improved operations," commented Donald C. Wood, president and chief executive officer of Federal Realty Investment Trust. "Our high-quality portfolio of assets, low-risk operating strategy, and the strength of our balance sheet, including significant credit facility capacity, positions us to perform well in an uncertain economic environment."

Regular Quarterly Dividends

Federal Realty also announced today that its Board of Trustees left the regular dividend rate on its common shares unchanged, declaring a regular quarterly cash dividend of $0.61 per share on its common shares, resulting in an indicated annual rate of $2.44 per share. The regular common dividend will be payable on April 15, 2008 to common shareholders of record as of March 19, 2008.

Guidance

Federal Realty left its guidance for 2008 FFO per diluted share unchanged at a range of $3.89 to $3.94, and revised its 2008 earnings per diluted share guidance to a range of $2.08 to $2.13.

    Summary of Other Quarterly Activities and Recent Developments
    -- December 21, 2007 -- Announced the pricing of a public offering of
       2,000,000 common shares of beneficial interest at a price to the public
       of $81.21 per share, for net proceeds of approximately $162 million
       after deducting estimated offering expenses. Net proceeds from the
       offering will be used for general corporate purposes. The offering
       closed on December 27, 2007.
    -- November 9, 2007 -- The Company entered into a new $200 million
       unsecured term loan facility. The new facility has a one-year term with
       one one-year extension option and bears interest at LIBOR plus 57.5
       basis points, based on the Company's current credit ratings.
    -- October 31, 2007 -- Acquired the fee interest in Mid-Pike Plaza in
       Rockville, Maryland, and Huntington Shopping Center in Huntington, New
       York in exchange for leasehold interests of six retail properties in
       New Jersey (Allwood, Blue Star, Brunswick, Clifton, Hamilton and
       Rutgers Shopping Centers) via a Section 1031 tax-deferred exchange and
       $17.2 million of cash. Due to Mid-Pike Plaza's proximity to Metrorail,
       the Montgomery County conference center and the desirable, in-fill
       nature of the site at the intersections of Rockville Pike, the new
       Montrose Parkway and Old Georgetown Road, the Trust anticipates seeking
       to entitle the approximately 20 acre site for high-density, mixed-use
       development, consistent with Montgomery County's Smart Growth
       initiatives. The fully leased Huntington Shopping Center boasts strong
       household incomes and population density, consistent with Federal
       Realty's sector leading demographics, and strong projected NOI growth
       over the next several years.


    Conference Call Information

Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its fourth quarter and year-end 2007 earnings conference call, which is scheduled for February 13, 2008, at 11 a.m. Eastern Standard Time. To participate, please call (866) 314-5232 five to ten minutes prior to the call's start time and use the Passcode FRT EARNINGS (required). The conference leader is Andrew Blocher. Federal Realty will also provide an online Web Simulcast on the Company's Web site, http://www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available through March 13, 2008, by dialing (888) 286-8010 and using the Passcode 29366920.

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 18.2 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 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 96.7% leased to national, regional, and local retailers as of December 31, 2007, with no single tenant accounting for more than approximately 2.5% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 40 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares 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 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, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on March 1, 2007 and include the following:

    -- risks that our tenants will not pay rent or that we may be unable to
       renew leases or re-let space at favorable rents as leases expire;
    -- risks that we may not be able to proceed with or obtain necessary
       approvals for any redevelopment or renovation project, and that
       completion of anticipated or ongoing property redevelopments or
       renovations may cost more, take more time to complete, or fail to
       perform as expected;
    -- risks that the number of properties we acquire for our own account, and
       therefore the amount of capital we invest in acquisitions, may be
       impacted by our real estate partnership;
    -- risks normally associated with the real estate industry, including
       risks that occupancy levels at our properties and the amount of rent
       that we receive from our properties may be lower than expected, that
       new acquisitions may fail to perform as expected, that competition for
       acquisitions could result in increased prices for acquisitions, that
       environmental issues may develop at our properties and result in
       unanticipated costs, and, because real estate is illiquid, that we may
       not be able to sell properties when appropriate;
    -- risks that our growth will be limited if we cannot obtain additional
       capital;
    -- risks of financing, such as our ability to consummate additional
       financings or obtain replacement financing on terms which are
       acceptable to us, our ability to meet existing financial covenants and
       the limitations imposed on our operations by those covenants, and the
       possibility of increases in interest rates that would result in
       increased interest expense; and
    -- risks related to our status as a real estate investment trust, commonly
       referred to as a REIT, for federal income tax purposes, such as the
       existence of complex tax regulations relating to our status as a REIT,
       the effect of future changes in REIT requirements as a result of new
       legislation, and the adverse consequences of the failure to qualify as
       a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed March 1, 2007.

    Investor and Media Inquiries
    Andrew Blocher
    Senior Vice President,
    Capital Markets & Investor Relations
    301/998-8166
    ablocher@federalrealty.com

    Vikki Kayne
    Vice President,
    Marketing and Corporate Communications
    301/998-8178
    vkayne@federalrealty.com



    Federal Realty Investment Trust
    Summarized Balance Sheets
    December 31, 2007

                                                       December 31,
                                                  2007              2006
                                                      (in thousands)
    ASSETS                                     (unaudited)

    Real estate, at cost
      Operating                                 $3,304,922        $2,931,391
      Construction-in-progress                     147,925            99,774
      Assets held for sale (discontinued
       operations)                                       -           173,093
                                                 3,452,847         3,204,258
    Less accumulated depreciation and
     amortization                                 (756,703)         (740,507)
    Net real estate                              2,696,144         2,463,751

    Cash and cash equivalents                       50,691            11,495
    Accounts and notes receivable                   61,108            47,493
    Mortgage notes receivable                       40,638            40,756
    Investment in real estate partnership           29,646            10,322
    Prepaid expenses and other assets              111,070           114,789
    TOTAL ASSETS                                $2,989,297        $2,688,606

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Liabilities
      Mortgages payable and capital lease
       obligations                                $450,084          $406,153
      Notes payable                                210,820           109,024
      Senior notes and debentures                  977,556         1,127,508
      Capital lease obligations of assets
       held for sale                                     -            54,245
      Accounts payable and other
       liabilities                                 204,387           185,407
    Total liabilities                            1,842,847         1,882,337

    Minority interests                              31,818            22,191

    Shareholders' equity
      Preferred stock                                9,997                 -
      Common shares and other
       shareholders' equity                      1,104,635           784,078
    Total shareholders' equity                   1,114,632           784,078
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                     $2,989,297        $2,688,606



    Federal Realty Investment Trust
    Summarized Income Statements
    December 31, 2007

                                       Three months ended     Year ended
                                          December 31,        December 31,
                                         2007      2006      2007      2006
                                       (in thousands, except per share data)
                                                   (unaudited)
    Revenue
      Rental income                    $122,936  $109,667  $468,498  $414,979
      Other property income               3,284     1,974    12,834     7,461
      Mortgage interest income            1,174     1,317     4,560     5,095
        Total revenue                   127,394   112,958   485,892   427,535

    Expenses
      Rental                             26,741    24,232   100,389    84,763
      Real estate taxes                  13,293    10,798    47,234    41,198
      General and administrative          7,304     5,593    25,575    21,340
      Depreciation and amortization      26,226    24,292   101,675    92,793
        Total operating expenses         73,564    64,915   274,873   240,094

    Operating income                     53,830    48,043   211,019   187,441

      Other interest income                 298       331       921     2,042
      Interest expense                  (27,118)  (25,545) (111,365)  (95,234)
      Income from real estate
       partnership                          275       122     1,395       656
    Income from continuing operations
     before minority interests           27,285    22,951   101,970    94,905

      Minority interests                 (1,281)     (870)   (5,590)   (4,353)
    Income from continuing operations    26,004    22,081    96,380    90,552

    Discontinued operations
      Discontinued Operations - Income      345     2,270     4,389     4,204
      Discontinued Operations - Gain on
       sale of real estate               95,819        90    94,768    16,515
        Results from discontinued
         operations                      96,164     2,360    99,157    20,719
    Income before gain on sale of real
     estate                             122,168    24,441   195,537   111,271

    Gain on sale of real estate               -         -         -     7,441

    Net income                          122,168    24,441   195,537   118,712

      Dividends on preferred stock         (135)   (1,817)     (442)  (10,423)
      Preferred stock redemption costs        -    (4,775)        -    (4,775)
    Net income available for common
     shareholders                      $122,033   $17,849  $195,095  $103,514


    EARNINGS PER COMMON SHARE, BASIC
      Continuing operations               $0.46     $0.28     $1.71     $1.41
      Discontinued operations              1.70      0.04      1.77      0.39
      Gain on sale of real estate             -         -         -      0.14
                                          $2.16     $0.32     $3.48     $1.94

      Weighted average number of
       common shares, basic              56,526    55,092    56,108    53,469

    EARNINGS PER COMMON SHARE, DILUTED
      Continuing operations               $0.45     $0.28     $1.70     $1.40
      Discontinued operations              1.69      0.04      1.75      0.38
      Gain on sale of real estate             -         -         -      0.14
                                          $2.14     $0.32     $3.45     $1.92

      Weighted average number of
       common shares, diluted            56,955    55,576    56,543    53,962



    Federal Realty Investment Trust
    Funds From Operations
    December 31, 2007

                                        Three months ended    Year ended
                                           December 31,       December 31,
                                          2007     2006      2007      2006
                                          (in thousands,     (in thousands,
    Funds from Operations available      except per share   except per share
     for common shareholders(FFO)(1)           data)              data)

    Net income                           122,168   24,441   195,537   118,712
    Gain on sale of real estate          (95,819)     (90)  (94,768)  (23,956)
    Depreciation and amortization of
     real estate assets                   23,656   23,196    95,565    88,649
    Amortization of initial direct costs
     of leases                             2,361    2,013     8,473     7,390
    Depreciation of real estate
     partnership assets                      326      214     1,241       768
    Funds from operations                 52,692   49,774   206,048   191,563
    Dividends on preferred stock            (135)  (1,817)     (442)  (10,423)
    Income attributable to operating
     partnership units                       232       88     1,156       748
    Preferred stock redemption costs           -   (4,775)        -    (4,775)
    FFO                                  $52,789  $43,270  $206,762  $177,113


    FFO per diluted share                  $0.92    $0.77     $3.63     $3.26
    Preferred stock redemption costs per
     diluted share                             -     0.09         -      0.09
    FFO per diluted share before
     preferred stock redemption costs      $0.92    $0.86     $3.63     $3.35

       Weighted average number of common
        shares, diluted                   57,336   55,941    56,999    54,351

    Notes:
    (1) See Glossary of Terms.



    Federal Realty Investment Trust
    Reconciliation of Net Income to FFO Guidance
    December 31, 2007

                                                      2008 Guidance
                                              ($ millions except per share
                                                       amounts)(1)

      Net income                                    $123    to    $126
      Gain on sale of real estate                      0             0
      Depreciation and amortization of
       real estate & real estate
       partnership assets                             97            97
      Amortization of initial direct
       costs of leases                                10            10
      Funds from operations                          230           233
      Income attributable to operating
       partnership units                               1             1
      Dividends on preferred stock                    (1)           (1)
      Funds from operations available
       for common shareholders                       231    to     234

      Weighted Average Shares (diluted)             59.4

      Funds from operations available
       for common shareholders per
       diluted share                               $3.89         $3.94

    Note:
    (1) Individual items may not add up to total due to rounding.

SOURCE  Federal Realty Investment Trust
    -0-                             02/12/2008
    /CONTACT:  Investor and Media Inquiries: Andrew Blocher, Senior Vice
President, Capital Markets & Investor Relations, +1-301-998-8166,
ablocher@federalrealty.com, or Vikki Kayne, Vice President, Marketing and
Corporate Communications, +1-301-998-8178, vkayne@federalrealty.com, both of
Federal Realty Investment Trust/
    /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO
              AP Archive:  http://photoarchive.ap.org
              PRN Photo Desk, photodesk@prnewswire.com/
    /Web site:  http://www.federalrealty.com/
    (FRT)

CO:  Federal Realty Investment Trust
ST:  Maryland
IN:  FIN RLT REA
SU:  ERN DIV ERP CCA

PM-BS
-- NETU118 --
4012 02/12/2008 16:45 EST http://www.prnewswire.com