Federal Realty Investment Trust Makes Initial Draw On Construction Loan for Santana Row; Announces New Tenants To Retail Lineup

ROCKVILLE, Md.--(BUSINESS WIRE)--Sept. 19, 2001--Federal Realty Investment Trust (NYSE:FRT) announced today that all funding requirements, including those relating to leasing and equity contributions, were satisfied on the $295 million Santana Row construction loan which closed earlier this year.

On August 23, 2001, the Trust received funding of approximately $23 million for construction costs associated with Santana Row, the mixed-use development in San Jose, California scheduled to open in August 2002. Borrowings bear interest at LIBOR plus 212.5 basis points and are subject to downward adjustment in interest rates based on the satisfaction of specified conditions.

Ron D. Kaplan, Federal Realty's chief investment officer commented, "We are pleased that in this difficult environment, all of the funding hurdles were satisfied as originally projected."

Federal Realty also announced significant leasing progress for Phase I of Santana Row. Joining Crate and Barrel, Borders Books and Music, Hotel Valencia and a number of other previously announced local and national retailers, recently signed leases include:

• Arts-Cinema

• CineArts, a new theatre concept of Century Theatres, will build a 20,000 square foot, six-screen state-of-the-art cinema dedicated to exhibiting art and independent films.

• Popular Bay Area and National Restaurants:

• Left Bank, an authentic Parisian-style brasserie, that will exceed 7,000 square feet, has established a strong following for its three current locations in the Bay Area

• Menlo Park, Larkspur and Pleasanton. The menu features

            cuisine inspired by classic dishes from France's
            southeastern region.

• Amber India voted one of the "Top 100 Bay Area Restaurants" will open it's second restaurant at Santana Row. Although the decor and menu will mirror the current regional offerings and contemporary setting of its original Mountain View location, Amber India's Santana Row restaurant will encompass 5,000 square feet and will become their showpiece location.

• Maggiano's Little Italy will open its first Northern California location and offer 13,000 square feet of combined indoor, outdoor terrace and banquet room dining.

• Chili's returns to the area with a 6,800 square foot restaurant. Chili's was a former tenant within the old Town & Country Center. This location was their most productive unit within the chain.

• A.G. Ferrari Foods will be a 2,000 square foot Italian gourmet marketplace filled with high-quality, specialty food products. Founded in the East Bay, A.G. Ferrari operates 11 stores throughout the Bay Area.

• Luxury Tenants:

• Enhancing the current line up of luxury tenants including Gucci, St. John, BCBG Max Azria, Tod's and Tommy Bahama, Federal Realty has signed new leases with international fashion boutiques Escada and Oilily.

"We are delighted to welcome this distinctive group of retailers and restaurants and are confident that we will continue to broaden the quality and diversity of the tenant mix at Santana Row," says Steven J. Guttman, chairman and chief executive officer of Federal Realty. "Our goal is to provide an ideal urban neighborhood, bringing together a unique mix of living, shopping and dining experiences. Santana Row's irreplaceable location and uniquely designed master plan has allowed us to continue to generate significant leasing interest."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of high quality retail and mixed-use properties.

The Trust owns or has an interest in 56 community and neighborhood shopping centers and 96 retail and urban mixed-use properties located in strategic metropolitan markets across the United States. The Trust is nationally recognized for its main street revitalization programs as well as the development of urban mixed-use, pedestrian-friendly communities.

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 33 consecutive years. 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, Rockville
Media Inquiries
Kris Warner, 301/998-8212
kwarner@federalrealty.com
or
Investor Inquiries
Andrew Blocher, 301/998-8166
ablocher@federalrealty.com