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News Release

Federal Realty Investment Trust Completes Sale of Three Properties
ROCKVILLE, Md., May 2, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) announced today the sale of three properties, two in Westport, Connecticut and one in Westfield, New Jersey, for an aggregate sales price of $19.2 million, in connection with the company's recently announced disposition program.

The Westport, Connecticut properties include a 16,400 square foot property located at 40-44 Post Road, whose primary tenant is Eddie Bauer, and a 10,000 square foot property located at 27 Main Street, whose sole tenant is Pottery Barn. The third building is an 11,000 square foot property located at 138-142 Central Avenue in Westfield, New Jersey whose tenants are Legg Mason and Imaginarium.

As a result of these sales, the Trust will record a gain of approximately $7.0 million in the second quarter of 2002. The weighted average capitalization rate for the three properties is 7.6% based on forward 12-month net operating income. The weighted average unleveraged internal rate of return earned by the Trust during its ownership was 14.1%.

Proceeds from the sales will be used for section 1031 tax-deferred exchanges or to pay down debt and fund redevelopment activities within the core portfolio.

A component of Federal Realty's business plan change announced March 11, 2002 includes the sale of slower growing assets, whether shopping centers or street retail properties, with proceeds to be reinvested into assets with greater growth potential.

The Trust has identified approximately $60 million in assets to be sold, of which $42 million have been sold at a weighted average capitalization rate of 7.4%.

"We are very pleased with the results of our disposition program which continues to demonstrate the underlying value of the Trust's stabilized street retail assets," stated Jeff Berkes, senior vice president, strategic transactions for Federal Realty. "We anticipate closing on the sale of the remaining identified assets by the end of the second quarter."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of shopping center and street retail properties.

Federal Realty's portfolio contains 15.1 million square feet located in major metropolitan markets across the United States. The operating portfolio is currently 95.5% leased to over 2,100 national, regional and local retailers with no single tenant accounting for more than 2.4% 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, the longest consecutive record in the REIT industry. 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'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
Investor Inquiries:
Andrew Blocher, 301/998-8166
Media Inquiries
Kristine Warner, 301/998-8212

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