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News Release

Federal Realty Investment Trust Closes on $265 Million of Opportunistic Capital Raising

ROCKVILLE, Md., Aug. 17 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today announced that it had closed on $265 million of previously announced capital raising activities, comprised of $150 million of 5.95% senior unsecured notes and $115 million of common shares of beneficial interest, which includes the underwriters' over-allotment option. Federal Realty intends to utilize the proceeds to pursue acquisition opportunities, fund its redevelopment pipeline, pay down its $372 million term loan, and/or for general corporate purposes.

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

"The manageable size of these capital raises reflects the measured and balanced approach that we take in running our business while recognizing the uncertainties associated with the current economic condition," said Donald Wood, president and chief executive officer of Federal Realty. "We were able to act quickly to take advantage of favorable market conditions in the debt market, which along with the common equity issuance positions us to capitalize on opportunities that arise."

"Both the unsecured notes and common equity offering were significantly oversubscribed at very favorable terms, demonstrating continued strong demand for Federal Realty securities from both fixed income and equity investors," said Andrew Blocher, senior vice president and chief financial officer for the Trust. "Our strong property performance, effectively executed business strategy and management credibility has enabled us to raise $800 million of proceeds in 2009, despite the very difficult capital markets environment."

Federal Realty is revising its 2009 FFO per diluted share guidance to reflect the receipt of proceeds from both the unsecured notes and common equity offering. The new guidance of FFO per diluted share of $3.72 to $3.77, excluding the previously announced litigation charge, assumes the Trust holds the proceeds in cash through the end of 2009.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management and redevelopment of high-quality retail and mixed-use properties located primarily in densely populated and affluent communities in strategically selected metropolitan markets in the Northeast, Mid-Atlantic, and California. As of June 30, 2009, Federal Realty owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 84 predominantly retail real estate projects comprising approximately 18.2 million square feet. In total, the real estate properties were 94.0% leased and 93.2% occupied at June 30, 2009. A joint venture in which Federal Realty owns a 30% interest owned seven retail real estate projects totaling approximately 1.0 million square feet as of June 30, 2009. In total, the joint venture properties in which Federal Realty owns an interest were 96.2% leased and occupied at June 30, 2009. 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 February 26, 2009 and amended on June 25, 2009, 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 close any pending financing
        activities, 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 February 26, 2009 and amended on June 25, 2009.



    Investor and Media Inquiries
    Gina Birdsall                      Janelle Stevenson
    Investor Relations                 Corporate Communications
    301/998-8265                       301/998-8185
    gbirdsall@federalrealty.com        jmstevenson@federalrealty.com



    Federal Realty Investment Trust
    Reconciliation of Net Income to FFO Guidance

                                                                2009 Guidance
                                                               ---------------
                                                                (Dollars in
                                                               millions except
                                                                  per share
                                                                 amounts)(1)

    Funds from Operations available for common shareholders (FFO)
    -------------------------------------------------------------
    Net income attributable to the Trust                         $90      $93
    Gain on sale of real estate                                   (1)      (1)
    Depreciation and amortization of real estate & real estate
     partnership assets                                          105      105
    Amortization of initial direct costs of leases                 9        9
                                                               -----    -----
    Funds from operations                                        203      206
    Dividends on preferred stock                                  (1)      (1)
    Income attributable to operating partnerships units            1        1
    Income attributable to unvested shares                        (1)      (1)
                                                               -----    -----
    FFO                                                          203      206
    Litigation provision (2)                                      21       21
                                                               -----    -----
    FFO excluding litigation provision                          $224     $227
                                                               =====    =====

    Weighted average number of common shares, diluted           60.2     60.2

    FFO per diluted share                                      $3.37    $3.42
    Litigation provision (2)                                    0.35     0.35
                                                               -----    -----
    FFO per diluted share excluding litigation provision       $3.72    $3.77
                                                               =====    =====

    Notes:
    ------
    (1) Individual items may not add up to total due to rounding.
    (2) Amount represents a charge for litigation regarding a parcel of
        land located adjacent to Santana Row as well as other costs related
        to the litigation and appeal process.

SOURCE  Federal Realty Investment Trust

    -0-                           08/17/2009
    /CONTACT:  Gina Birdsall, Investor Relations, +1-301-998-8265,
gbirdsall@federalrealty.com, or Janelle Stevenson, Corporate Communications,
+1-301-998-8185, jmstevenson@federalrealty.com, both of Federal Realty
Investment Trust/
    /Photo:  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 CRL RRL REA
SU:  ERP FNC

PR
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5966 08/17/200908:00 EDThttp://www.prnewswire.com