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News Release

Federal Realty Investment Trust Completes Sale of Uptown Shopping Center
ROCKVILLE, Md., Jun 10, 2002 (BUSINESS WIRE) -- Federal Realty Investment Trust (NYSE:FRT) announced today the sale of Uptown Shopping Center, located in Portland, Oregon, for an aggregate sale price of $20.8 million.

The property, comprised of 72,000 square feet of retail space and 47 residential units, was purchased by the Trust in 1997.

As a result of this sale, the Trust will record a gain of approximately $5.0 million in the second quarter of 2002. The capitalization rate for this sale is 8.4% based on forward 12-month net operating income.

The unleveraged internal rate of return earned by the Trust during its ownership was 13.1%. Proceeds from the sale will be used for a section 1031 tax-deferred exchange, to pay down debt and/or to fund redevelopment activities within the core portfolio.

"We are very pleased with the proceeds generated by the sale of Uptown Shopping Center," stated Jeff Berkes, senior vice president, strategic transactions for Federal Realty. "This is a testament to the quality of our portfolio and our long-term strategy of acquiring and improving the performance of underutilized retail properties."

Consistent with the business plan changes announced March 11, 2002, the Trust has sold approximately $62.5 million of shopping center and street retail properties whose average projected five year NOI growth rate of 1.3% was significantly below the overall portfolio growth rate. These assets were sold at a blended capitalization rate of 7.75% and generated net gains of approximately $21 million.

"This sale marks the completion of the planned disposition of operating properties identified in late 2001 and executed as part of our recently announced business plan," said Donald Wood, president and chief operating officer for Federal Realty. "The Trust constantly evaluates the sale of assets in an effort to maintain and enhance the superior growth of our core portfolio."

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 approximately 15 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 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 for the year ended December 31, 2001, filed with the SEC on March 22, 2002.

Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

CONTACT: Federal Realty Investment Trust, Rockville
Investor Inquiries:
Andrew Blocher, 301/998-8166
Media Inquiries:
Kristine Warner, 301/998-8212>

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