Federal Realty Investment Trust Completes the Sale of Two Properties for $18 Million
ROCKVILLE, Md.--(BUSINESS WIRE)--Sept. 16, 2003--Federal Realty Investment Trust (NYSE:FRT) today announced the sale of Coolidge Corner, a Street Retail property, and Tanasbourne, a parcel of undeveloped land. Together these sales generate a combined $17.3 million of proceeds for the Trust.
"The sales announced today demonstrate our continued commitment to maximizing the internal growth rate of the Trust's core portfolio," commented Jeff Berkes, Senior Vice President and Chief Investment Officer for Federal Realty. "By disposing of assets that detract from the Trust's internal growth rate, we enhance our portfolio performance while generating significant proceeds to fuel future growth through acquisitions and redevelopment."
Coolidge Corner, an eight-tenant, 13,000 square-foot Street Retail building in Brookline, Mass., was purchased by Federal Realty in 1995. The $8.2 million sales price for the property generated an approximately $4.3 million gain, and reflects a 7.1% capitalization rate based on forward 12-month property operating income and a 14.4% unleveraged internal rate of return over the Trust's holding period. Federal Realty projected 2.0% annualized property operating income growth for the property through 2007, compared to a 4.8% same-center property operating income growth rate reported for the Trust's portfolio for the second quarter of 2003.
In addition, Federal Realty sold a 17.7-acre land parcel in Hillsboro, Ore., for $9.8 million, resulting in a gain of approximately $1.9 million. The Trust purchased the parcel in 2000 as the future site of a 420,000 square-foot lifestyle center. In March 2002, as part of Federal Realty's change in business strategy, the Trust abandoned its plan to develop this ground-up, mixed-use project, and accordingly, wrote the property down to its then estimated net realizable value.
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of shopping centers and Street Retail properties. Federal Realty's portfolio contains approximately 15.7 million square feet located in major metropolitan markets across the United States. The operating portfolio is currently over 93% occupied by over 2,000 national, regional, and local retailers with no single tenant accounting for more than 2.5% 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 36 consecutive years, the longest consecutive record in the REIT industry.
Shares of Federal Realty are traded on the NYSE under the symbol FRT. Additional information about Federal Realty can be found on the Internet at www.federalrealty.com.
CONTACT: Federal Realty Investment Trust, Rockville Investor Inquiries: Andrew Blocher, 301-998-8166 email@example.com or Media Inquiries: Kristine Warner, 301-998-8212 firstname.lastname@example.org SOURCE: Federal Realty Investment Trust