Federal Realty Investment Trust Completes Sale of Greenwich Avenue Building; Program to Recycle Capital out of Slow Growth Assets Continues
Purchased by the Trust in 1997, the primary tenants in the property were Gap Kids and Banana Republic. The Trust's will record a gain on this sale of $7.0 million in the second quarter 2002.
Late in December 2001, Federal Realty also completed the sale of a 5,000 square foot building at 101 Oak Street in Chicago, Illinois for $6.1 million. The weighted average capitalization rate for the two properties was 7.3% with a combined unleveraged IRR of 17.9%.
A component of Federal Realty's business plan change announced last month includes the sale of slower growing assets, whether shopping centers or street retail properties, from which capital can be redeployed more effectively. In addition, the sale of the Oak Street and Greenwich Avenue properties at such low capitalization rates substantiates the underlying value of Federal Realty's stabilized street retail portfolio.
"We've targeted assets with an estimated value of approximately $60 million for sale under this program", stated Jeff Berkes, senior vice president, strategic transactions, "With the closing of the Greenwich and Chicago properties, we are nearly half way to that target",
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. At year-end 2001, the operating portfolio was currently 96% leased to over 2,100 national, regional and local retailers with no single tenant accounting for more than 2.7% 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. 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 Realty'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.
CONTACT: Federal Realty Investment Trust
Andrew Blocher, 301/998-8166
Kristine Warner, 301/998-8212
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