Federal Realty Investment Trust Completes Sale of Two Retail Buildings in Forest Hills, New York
ROCKVILLE, Md., Oct. 11 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) announced today the sale of two retail buildings in Forest Hills, New York generating net proceeds of $32 million and a book gain of $15.3 million. The Trust took advantage of its acquisition of Shoppers World in Charlottesville, Virginia in May 2007 and executed a reverse 1031 exchange to defer taxes on this sale.
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Both buildings were acquired in 1997 and subsequently redeveloped and repositioned to capitalize on the population density and infill location of the property. One of the buildings totaling over 17,000 square feet is located mid-block on 71st Avenue and includes retail tenants Duane Reade and Staples. The other building is located mid-block on the north side of Austin Street between 69th Road and 70th Avenue and includes retailers Gap, and Forest Hills Vision for a total of over 22,500 square feet. The Trust continues to own one building in Forest Hills, New York located on Queens Boulevard and currently leased to Midway Theatre.
"This sale reflects the Trust's business strategy of capitalizing on redevelopment opportunities and culling assets from the portfolio that present a slower growth profile," said Jeff Berkes, executive vice president and chief investment officer for Federal Realty Investment Trust. "We used the proceeds from the sale of these relatively flat, fully redeveloped assets to invest in Shoppers World shopping center which has a higher initial return, a better growth profile and opportunities for redevelopment and remerchandising."
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 19.4 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 1.0 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 96.1% leased to national, regional, and local retailers as of June 30, 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 40 consecutive years, the longest record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.
SOURCE Federal Realty Investment Trust CONTACT: Andrew Blocher, Senior Vice President, Capital Markets & Investor Relations, +1-301-998-8166, firstname.lastname@example.org, or Vikki Kayne, Vice President, Marketing & Corporate Communications, +1-301-998-8178, email@example.com, both of Federal Realty Investment Trust Web site: http://www.federalrealty.com