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News Release

Federal Realty Investment Trust Announces Third Quarter 2007 Operating Results

ROCKVILLE, Md., Oct. 31 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today reported operating results for its third quarter ended September 30, 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 common share was
        $0.41 for the quarter ended September 30, 2007, versus $0.85 and
        $0.41, respectively, for third quarter 2006.
    --  FFO per diluted share was $2.71 and earnings per diluted common share
        was $1.30 for the nine months ended September 30, 2007, versus $2.49
        and $1.60, respectively, for the nine months ended September 30, 2006.
    --  When compared to third quarter 2006, same-center property operating
        income increased 4.5% including redevelopments and expansions, and
        3.7% excluding redevelopments and expansions.
    --  Rent increases on lease rollovers for retail space for which there was
        a prior tenant were 19% on a cash-basis and 31% on a GAAP-basis for
        the quarter ended September 30, 2007.
    --  The Trust's portfolio was 96.4% leased and 95.1% occupied as of
        September 30, 2007.
    --  Guidance for 2007 FFO per diluted share was narrowed to a range of
        $3.62 to $3.64.
    --  The Trust provided initial guidance for 2008 FFO per diluted share of
        $3.89 to $3.94.

    Financial Results

For third quarter 2007, Federal Realty reported FFO of $52.5 million, or $0.92 per diluted share. This compares to FFO of $45.8 million, or $0.85 per diluted share, reported for third quarter 2006. For the nine months ended September 30, 2007, Federal Realty reported FFO of $154.0 million, or $2.71 per diluted share compared to FFO of $133.8 million, or $2.49 per diluted share, for the same nine-month period in 2006.

Net income available for common shareholders was $23.4 million and earnings per diluted common share was $0.41 for the quarter ended September 30, 2007, versus $22.1 million and $0.41, respectively, for third quarter 2006. Year-to-date, Federal Realty reported net income available for common shareholders of $73.1 million, or $1.30 per diluted common share. This compares to net income available for common shareholders of $85.7 million, or $1.60 per diluted common share, for the nine months ended September 30, 2006.

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

Portfolio Results

On a same-center basis, including redevelopments and expansions, property operating income increased 4.5% over third quarter 2006. When redevelopments and expansions are excluded from the same-center results, property operating income increased 3.7% from third quarter 2006.

Overall, the Trust's portfolio was 96.4% leased and 95.1% occupied as of September 30, 2007, compared to 97.3% and 95.6%, respectively, on September 30, 2006. Federal Realty's same-center portfolio was 96.7% leased and 95.9% occupied on September 30, 2007, compared to 97.8% and 97.1%, respectively, on September 30, 2006.

During third quarter 2007, the Trust signed 80 leases for 443,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 410,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 19%. The average contractual rent on this comparable space for the first year of the new lease is $23.36 per square foot compared to the average contractual rent of $19.65 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 third quarter 2007. As of September 30, 2007, Federal Realty's average contractual, cash basis minimum rent for retail and commercial space in its portfolio is $19.73 per square foot.

"Continued strong tenant demand for our properties coupled with the effective execution of our redevelopment pipeline resulted in another quarter of excellent operating performance," commented Donald C. Wood, president and chief executive officer of Federal Realty Investment Trust. "We expect that our balanced operating strategy will produce consistent results, even if market conditions become more volatile."

Regular Quarterly Dividends

Federal Realty also announced today that its Board of Trustees declared 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 January 15, 2008, to common shareholders of record as of January 2, 2008.

Guidance

Federal Realty's guidance for 2007 FFO per diluted share was narrowed to a range of $3.62 to $3.64, and its 2007 earnings per diluted common share guidance increased to a range of $3.49 to $3.51. In addition, the Trust provided initial earnings guidance for 2008 of $3.89 to $3.94 for FFO per diluted share, and $2.03 to $2.08 for earnings per diluted share.

    Summary of Other Quarterly Activities and Recent Developments
    --  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.
    --  October 11, 2007 -- Announced the sale of two retail buildings in
        Forest Hills, New York generating net proceeds of $32 million and a
        book gain of $19.0 million. The Trust took advantage of its
        acquisition of Shoppers' World in Charlottesville, Virginia in May
        2007 and executed a reverse Section 1031 tax-deferred exchange.

    Conference Call Information

Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its third quarter 2007 earnings conference call, which is scheduled for November 1, 2007, at 12 p.m. Eastern Daylight Time. To participate, please call (866) 271-0675 five to ten minutes prior to the call's start time and use the passcode EARNINGS (required). The conference leader is Andrew Blocher. Federal Realty will also provide an online Web Simulcast on the Company's Web site, www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available through November 30, 2007, by dialing (888) 286-8010 and entering the passcode 97573561.

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 96.4% leased to national, regional, and local retailers as of September 30, 2007, with no single tenant accounting for more than approximately 2.9% 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. 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 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                        Vikki Kayne
    Senior Vice President,                Vice President,
    Capital Markets & Investor Relations  Marketing & Corporate Communications
    301/998-8166                          301/998-8178
    ablocher@federalrealty.com            vkayne@federalrealty.com



    Federal Realty Investment Trust
    Summarized Balance Sheets
    September 30, 2007

                                               September 30,      December 31,
                                                   2007              2006
                                                      (in thousands)
    ASSETS                                      (unaudited)

    Real estate, at cost
      Operating                                 $3,331,957        $3,025,210
      Construction-in-progress                     132,450            99,774
      Assets held for sale
       (discontinued operations)                    15,987            79,274
                                                 3,480,394         3,204,258
    Less accumulated depreciation
     and amortization                             (805,610)         (740,507)
    Net real estate                              2,674,784         2,463,751

    Cash and cash equivalents                       10,281            11,495
    Accounts and notes receivable                   59,964            47,493
    Mortgage notes receivable                       40,630            40,756
    Investment in real estate partnership           30,198            10,322
    Prepaid expenses and other assets              114,002           114,789
    TOTAL ASSETS                                $2,929,859        $2,688,606

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Liabilities
      Obligations under capital leases and
       mortgages payable                          $528,463          $460,398
      Notes payable, including revolving
       credit facility                             178,873           109,024
      Senior notes and debentures                1,127,567         1,127,508
      Accounts payable and other liabilities       198,679           185,407
    Total liabilities                            2,033,582         1,882,337

    Minority interests                              34,354            22,191

    Shareholders' equity
      Preferred stock                                9,997                 -
      Common shares and other
       shareholders' equity                        851,926           784,078
    Total shareholders' equity                     861,923           784,078
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                     $2,929,859        $2,688,606



    Federal Realty Investment Trust
    Summarized Income Statements
    September 30, 2007

                                          Three months        Nine months
                                             ended               ended
                                          September 30,        September 30,
                                         2007      2006      2007      2006
                                       (in thousands, except per share data)
                                                    (unaudited)
    Revenue
      Rental income                    $123,559  $109,371  $360,655  $319,673
      Other property income               4,650     1,787     9,645     5,747
      Mortgage interest income            1,129     1,107     3,386     3,778
                                        129,338   112,265   373,686   329,198
    Expenses
      Rental                             26,502    20,768    76,002    63,242
      Real estate taxes                  12,985    11,602    36,320    32,651
      General and administrative          6,631     6,265    18,271    15,747
      Depreciation and amortization      26,071    23,722    78,543    71,808
                                         72,189    62,357   209,136   183,448
    Operating income                     57,149    49,908   164,550   145,750

      Other interest income                 313     1,495       994     2,088
      Interest expense                  (30,533)  (26,076)  (89,577)  (75,110)
      Income from real estate
       partnership                          473       196     1,120       533
    Income from continuing operations
     before minority interests           27,402    25,523    77,087    73,261

      Minority interests                 (1,629)   (1,086)   (4,309)   (3,483)
    Income from continuing operations    25,773    24,437    72,778    69,778

    Discontinued operations
      Income from discontinued operations   642       452     1,642       627
      (Loss) gain on sale of real estate
       from discontinued operations      (2,900)       95    (1,051)   16,425
      Results from discontinued
       operations                        (2,258)      547       591    17,052
    Income before gain on sale of real
     estate                              23,515    24,984    73,369    86,830

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

    Net income                           23,515    24,984    73,369    94,271

      Dividends on preferred stock         (136)   (2,869)     (307)   (8,607)
    Net income available for common
     shareholders                       $23,379   $22,115   $73,062   $85,664

    EARNINGS PER COMMON SHARE, BASIC
      Continuing operations               $0.46     $0.41     $1.30     $1.16
      Discontinued operations             (0.04)     0.01      0.01      0.32
      Gain on sale of real estate             -         -         -      0.14
                                          $0.42     $0.42     $1.31     $1.62

    Weighted average number of common
     shares, basic                       56,302    53,187    55,967    52,923

    EARNINGS PER COMMON SHARE, DILUTED
    Continuing operations                 $0.45     $0.40     $1.29     $1.14
    Discontinued operations               (0.04)     0.01      0.01      0.32
    Gain on sale of real estate             -         -         -        0.14
                                          $0.41     $0.41     $1.30     $1.60

    Weighted average number of common
     shares, diluted                     56,690    53,676    56,404    53,418



    Federal Realty Investment Trust
    Funds From Operations / Summary of Capital Expenditures
    September 30, 2007

                                            Three months        Nine months
                                               ended               ended
                                            September 30,       September 30,
                                           2007      2006      2007      2006
                                           (in thousands,      (in thousands,
    Funds from Operations                 except per share    except per share
     available for common                       data)                data)
     shareholders (FFO)
    Net income                            23,515   24,984    73,369    94,271
    Loss (gain) on sale of real estate     2,900      (95)    1,051   (23,866)
    Depreciation and amortization of
     real estate assets                   23,651   21,570    71,910    65,452
    Amortization of initial direct costs
     of leases                             1,945    1,814     6,122     5,378
    Depreciation of real estate
     partnership assets                      324      236       915       553
      Funds from operations               52,335   48,509   153,367   141,788
    Dividends on preferred stock            (136)  (2,869)     (307)   (8,607)
    Income attributable to operating
     partnership units                       279      182       923       660
      FFO                                $52,478  $45,822  $153,983  $133,841

    FFO per diluted share                  $0.92    $0.85     $2.71     $2.49

    Weighted average number of common
     shares, diluted                      57,148   54,066    56,885    53,815



    Federal Realty Investment Trust
    Reconciliation of Net Income to FFO Guidance
    September 30, 2007

                                                       2007 Guidance
                                              ($ millions except per share
                                                        amounts) (1)

    Net income (2)                               $197      to     $199
    Gain on sale of real estate (2)               (98)             (98)
    Depreciation and amortization of
     real estate & real estate
     partnership assets                            97               97
    Amortization of initial direct
     costs of leases                                8                8
    Funds from operations                         205              206
    Income attributable to operating
     partnership units                              1                1
    Dividends on preferred stock                   (0)              (0)
    Funds from operations available for
     common shareholders                         $206      to     $207

    Weighted Average Shares (diluted)            57.0

    Funds from operations available
     for common shareholders per
     diluted share                              $3.62            $3.64

    Note:
    (1) Individual items may not add up to total due to rounding.
    (2) Amount includes a preliminary estimate for the gain on sale of real
        estate from properties sold in October 2007.



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

    Net income                                   $117      to     $119
    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                         223              226
    Income attributable to operating
     partnership units                              1                1
    Dividends on preferred stock                   (1)              (1)
    Funds from operations available
     for common shareholders                     $224      to     $226

    Weighted Average Shares (diluted)            57.4

    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-                             10/31/2007
    /CONTACT:  Andrew Blocher, Senior Vice President, Capital Markets &
Investor Relations, +1-301-998-8166, ablocher@federalrealty.com, or Vikki
Kayne, Vice President, Marketing & 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 INS RLT REA
SU:  ERN CCA DIV ERP

RB-CS
-- NEW098 --
0466 10/31/2007 14:19 EDT http://www.prnewswire.com