-Update on Linden Square Redevelopment in Wellesley, Mass.
ROCKVILLE, Md., June 25 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the completion of the sale of three non-core properties in suburban New England for $62.9 million. All three properties - Riverside Plaza and Key Road Plaza in Keene, N.H., and Bath Shopping Center in Bath, Maine - were acquired in August 2006 to facilitate the purchase of $150 million of high-quality assets in the Boston metropolitan area. The $62.9 million sales price for the three properties generated a book gain of approximately $2 million.
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"This portfolio acquisition and subsequent non-core sale demonstrates our ability to source off-market transactions, provide creative deal structures to meet the unique needs of sellers, and maintain our disciplined approach to acquiring assets whereby we can utilize our redevelopment and leasing expertise to create significant shareholder value," said Jeff Berkes, executive vice president and chief investment officer for Federal Realty Investment Trust.
The most significant component of the August 2006 acquisition was Linden Square, an 18.4-acre active redevelopment parcel located in supply constrained and highly affluent Wellesley, Mass. Since the acquisition in August 2006, construction and leasing progress at Linden Square remains on schedule and on budget, with the initial phase of the redeveloped property anticipated to open in late 2007. Upon completion of the redevelopment, Linden Square will include approximately 250,000 square feet of retail and office space, LEED certified affordable housing space and a relocated, prototypical Roche Bros. supermarket and CVS Pharmacy. Subsequent to the acquisition, the Trust has drawn a diversified mix of national and local retailers and restaurants to the property, including; Cottage Wellesley, a highly anticipated upscale family restaurant, Blue Tulip, a national specialty gift store, National Jeans, a premium men's and women's denim boutique, Bella Sante Day Spa, an upscale full service spa, Starbucks, California Pizza Kitchen and Cold Stone Creamery. Federal Realty is dedicated to introducing an exciting, vibrant lifestyle center for the Wellesley community that will ultimately blend traditional national, regional and local retailers and services.
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 19.7 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 0.9 million square feet of retail space through its joint venture with Clarion Lion Properties Fund in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 96.6% leased to national, regional, and local retailers as of March 31, 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 39 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 risks that the Linden Square redevelopment may cost more, take more time to complete, or fail to perform as expected.
Media Inquiries
Andrew Blocher Vikki Kayne
Senior Vice President, Vice President,
Capital Markets and Investor Relations Marketing and Corporate
301/998-8166 Communications
ablocher@federalrealty.com 301/998-8178
vkayne@federalrealty.com
SOURCE Federal Realty Investment Trust
CONTACT: Andrew Blocher, Senior Vice President of Capital Markets and
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
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