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News Release

Federal Realty Investment Trust Reports First Quarter 2005 Operating Results; Aggressive Leasing and Increased Occupancy Drive Strong Internal Growth

ROCKVILLE, Md.--(BUSINESS WIRE)--May 4, 2005--Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2005.

    --  Funds from operations available for common shareholders (FFO)
        per diluted share was $0.74 and net income available for
        common shareholders per diluted share was $0.40 for the
        quarter ended March 31, 2005 versus $0.69 and $0.28 for first
        quarter 2004.

    --  When compared to first quarter 2004, same-center property
        operating income increased 6.3% including redevelopments and
        expansions.

    --  Rent increases on lease rollovers for retail space for which
        there was a prior tenant were 14% on a cash-basis and 25% on a
        GAAP-basis for the quarter ended March 31, 2005.

    --  The Trust's portfolio was 95.1% leased as of March 31, 2005.

    --  Federal Realty increased guidance for 2005 FFO per diluted
        share to a range of $3.03 to $3.05 and net income available
        for common shareholders per diluted share of $1.43 to $1.45.

    Financial Results

Federal Realty reported FFO of $39.3 million, or $0.74 per diluted share, in first quarter 2005. This compares to FFO of $34.8 million, or $0.69 per diluted share, reported in first quarter 2004, which included $1.1 million ($0.02 per diluted share) of insurance recovery for lost income from the Santana Row fire. Net income available for common shareholders was $21.1 million, and net income available for common shareholders per diluted share was $0.40 for the quarter ended March 31, 2005, versus $14.4 million and $0.28, respectively, for the first quarter of 2004.

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO available for common shareholders and FFO per diluted share to net income available for common shareholders and net income available for common shareholders per diluted share, respectively, is attached to this press release.

Portfolio Results

On a same-center basis, including redevelopment and expansion properties, property operating income increased 6.3% over first quarter 2004, the highest such growth in the last 12 quarters. When redevelopment and expansion properties are excluded from the same-center results, property operating income increased 4.7% from first quarter 2004.

Overall, the Trust's portfolio was 95.1% leased as of March 31, 2005, compared to 93.3% on March 31, 2004. Federal Realty's same-center portfolio was 96.5% leased on March 31, 2005, compared to 96.1% on March 31, 2004.

During the first quarter of 2005, the Trust signed 60 leases for approximately 257,000 square feet of retail space. On a comparable space basis (i.e. spaces for which there was a former tenant), the Trust leased 225,000 square feet at a weighted-average cash-basis contractual rent increase per square foot (i.e. excluding the impact of straight-line rents) of 14%. The weighted-average contractual rent on this comparable space for the first year of the new lease is $25.88 per square foot compared to the weighted-average contractual rent of $22.61 per square foot for the last year of the prior lease. The previous weighted-average contractual rent is calculated by including both the minimum rent and the percentage rent actually paid during the last year of the lease term for the re-leased space. On a GAAP basis (i.e. including the impact of straight-line rents), rent increases per square foot for comparable retail space were 25% for the first quarter of 2005. As of March 31, 2005, Federal Realty's weighted-average contractual rent for retail and commercial space in its portfolio is $18.25 per square foot.

"The significant increase in our internal growth rate this quarter reflects continued aggressive leasing of our portfolio combined with occupancy improvements both in our same-center portfolio as well as at our redevelopment properties," commented Donald Wood, Federal Realty's President and Chief Executive Officer. "Continued strong internal growth and our ability to create significant additional value from our core portfolio, through our large redevelopment pipeline, and through the improving performance and potential condominium sales at Santana Row, are the foundation for Federal Realty to provide well-balanced, risk-adjusted growth in the future."

At Santana Row, Federal Realty's mixed-use community in San Jose, Calif., 94.3% of the retail space was leased to 106 tenants, with 100 stores open and operating as of March 31, 2005. As previously announced, Federal Realty is pursuing the potential sale of up to 219 residential condominiums in buildings three, four and six at Santana Row. To facilitate the sale of these units, the Trust is allowing residential units in these buildings to remain vacant upon the expiration of leases, and as a result, as of March 31, 2005, 91% of the 255 existing residential units were leased. Initial occupancy of the 256 residential rental units on the podium of building seven commenced in April 2005, with lease-up expected to continue through mid-2006.

Guidance

Federal Realty today increased guidance for 2005 FFO per diluted share to a range of $3.03 to $3.05, and net income available for common shareholders per diluted share to $1.43 to $1.45.

    Summary of Other Quarterly Activities and Recent Developments

    --  March 1, 2005 - Federal Realty acquired Assembly Square Mall
        and an adjacent 220,000 square foot retail/industrial complex
        for $64 million. The properties are located in the City of
        Somerville, Mass., the most densely populated community in New
        England, just 1.5 miles from Boston's financial and commercial
        districts and easily accessible from I-93. Federal Realty
        anticipates investing significant efforts in the master
        planning of the site, which could provide investment
        opportunities for the Trust over the next ten years.

    --  March 3, 2005 - Federal Realty announced that its Board of
        Trustees declared a regular quarterly cash dividend of $0.505
        per share on its common shares, resulting in an indicated
        annual rate of $2.02 per share.

    Conference Call Information

Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its first quarter 2005 earnings conference call, which is scheduled for May 5, 2005, at 11 a.m. Eastern Daylight Time. To participate, please call (888) 566-5771 five to ten minutes prior to the call's start time and use the Passcode EARNINGS (required). The conference leader is Andrew Blocher. Federal Realty will also provide an online Web Simulcast on the Company's Web site, www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available for 30 days by dialing (866) 448-4809.

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 17.4 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 0.5 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 95.1% leased to national, regional, and local retailers as of March 31, 2005, with no single tenant accounting for more than 2.3% 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 37 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Current Report on Form 8-K filed on March 2, 2005, and include the following:

    --  risks that our tenants will not pay rent or that we may be
        unable to renew leases or re-let space at favorable rents as
        leases expire;

    --  risks that we may not be able to proceed with or obtain
        necessary approvals for any redevelopment or renovation
        project, and that any redevelopment or renovation project that
        we do pursue may not perform as anticipated;

    --  risks that the number of properties we acquire for our own
        account, and therefore the amount of capital we invest in
        acquisitions, may be impacted by our real estate partnership;

    --  risks normally associated with the real estate industry,
        including risks that occupancy levels at our properties and
        the amount of rent that we receive from our properties may be
        lower than expected, that new acquisitions may fail to perform
        as expected, that competition for acquisitions could result in
        increased prices for acquisitions, that we may have
        environmental risks at our properties, and, because real
        estate is illiquid, that we may not be able to sell properties
        when appropriate;

    --  risks that our growth will be limited if we cannot obtain
        additional capital;

    --  risks of financing, such as our ability to consummate
        additional financings or obtain replacement financing on terms
        which are acceptable to us, our ability to meet existing
        financial covenants and the limitations imposed on our
        operations by those covenants, and the possibility of
        increases in interest rates that would result in increased
        interest expense; and

    --  risks related to our status as a real estate investment trust,
        commonly referred to as a REIT, for federal income tax
        purposes, such as the existence of complex tax regulations
        relating to our status as a REIT, the effect of future changes
        in REIT requirements as a result of new legislation, and the
        adverse consequences of the failure to qualify as a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and the risks contained in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 2, 2005.

Federal Realty Investment Trust
Summarized Operating Results
March 31, 2005
----------------------------------------------------------------------

               Financial Highlights
       (in thousands, except per share data)
                    (unaudited)

CONSOLIDATED OPERATING RESULTS
------------------------------
                                                      Three months
                                                     ended March 31,
                                                     2005     2004
                                                   --------- --------
Revenues
   Rental income                                   $100,220  $90,983
   Other property income                              2,006    2,172
   Mortgage interest income                           1,281    1,077
                                                   --------- --------
                                                    103,507   94,232
Expenses
   Rental                                            23,513   21,949
   Real estate taxes                                  9,777    9,066
   General and Administrative                         4,503    4,182
   Depreciation and amortization                     22,538   20,266
                                                   --------- --------
                                                     60,331   55,463
                                                   --------- --------
   Operating income                                  43,176   38,769

Other interest income                                   391      361
Interest expense                                    (22,063) (21,319)
Income from real estate partnership                      71        -
Minority interests                                   (1,516)  (1,189)
                                                   --------- --------
Income from continuing operations                    20,059   16,622

Discontinued operations
  Operating (loss) income from discontinued
  operations                                           (344)     567
  Gain on sale of real estate                         4,282       57
                                                   --------- --------
Results from operations of discontinued assets        3,938      624
                                                   --------- --------

Net Income                                           23,997   17,246

   Dividends on preferred stock                      (2,869)  (2,869)
                                                   --------- --------
   Net income available for
   common shareholders                              $21,128  $14,377
                                                   ========= ========



FUNDS FROM OPERATIONS AVAILABLE FOR COMMON SHAREHOLDERS
-------------------------------------------------------
  Net income                                        $23,997  $17,246
  Gain on sale of real estate                       (4,282)     (57)
  Depreciation and amortization of
  real estate assets                                 20,519   18,726
  Depreciation on real estate partnership               156        -
  Amortization of initial direct costs of leases      1,626    1,498
                                                    -------  -------
  Funds from operations                              42,016   37,413
  Dividends on preferred stock                       (2,869)  (2,869)
  Income attributable to operating
  partnership units                                     158      235
                                                    -------- -------
  Funds from operations available for
  common shareholders                                39,305   34,779
                                                    =======  =======


  Weighted average number of common
  shares, diluted                                    53,179   50,613
                                                    ======== =======

  Funds from operations available for
  common shareholders per diluted share               $0.74    $0.69
                                                    ======== =======

NET INCOME PER COMMON SHARE, BASIC
----------------------------------
   Income from continuing operations available
   for common shareholders                            $0.33    $0.28
   (Loss) income from discontinued operations         (0.01)    0.01
   Gain on sale of real estate                         0.08     0.00
                                                   --------- --------
     Net income available for common
     shareholders, basic                               $0.40    $0.29
                                                   ========= ========

   Weighted average number of common shares,
   basic                                             52,190   49,163
                                                   ========= ========

NET INCOME PER COMMON SHARE, DILUTED
------------------------------------
   Income from continuing operations available
   for common shareholders                          $   0.33  $  0.27
   (Loss) income from discontinued operations          (0.01)    0.01
   Gain on sale of real estate                          0.08     0.00
                                                    --------  -------
     Net income available for common
     shareholders, diluted                             $0.40    $0.28
                                                    ========  =======

   Weighted average number of common shares,
   diluted                                           53,179   50,613
                                                    ========  =======


Federal Realty Investment Trust
Summarized Balance Sheets
March 31, 2005

----------------------------------------------------------------------

                         Financial Highlights
                            (in thousands)


CONSOLIDATED BALANCE SHEETS
---------------------------
                                               March 31,  December 31,
                                                 2005        2004
                                               ----------- -----------
ASSETS                                         (unaudited)

Real estate, at cost                           $2,740,608  $2,666,276
 Less accumulated depreciation and
 amortization                                    (612,605)   (595,338)
                                               ----------- -----------
Net real estate investments                     2,128,003   2,070,938

Cash and cash equivalents                          27,645      30,475
Accounts and notes receivable                      41,039      34,849
Mortgage notes receivable                          42,834      42,909
Investment in real estate partnership               9,496       9,631
Other assets                                       78,308      78,094
                                               ----------- -----------
TOTAL ASSETS                                   $2,327,325  $2,266,896
                                               =========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Obligations under capital leases and mortgage
 notes                                         $  409,840  $  410,885
Notes payable                                     381,382     325,051
Senior notes and debentures                       568,263     568,121
Other liabilities                                 147,498     153,351
                                               ----------- -----------
Total liabilities                               1,506,983   1,457,408

Minority interests                                 19,511      18,954

Shareholders' equity
 Preferred stock                                  135,000     135,000
 Common shares and other shareholders' equity     665,831     655,534
                                               ----------- -----------
Total shareholders' equity                        800,831     790,534
                                               ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $2,327,325  $2,266,896
                                               =========== ===========

Federal Realty Investment Trust
Reconciliation of 2005 Net Income to 2005 FFO Guidance
March 31, 2005
----------------------------------------------------------------------

($ millions except per share amounts) (1)
                                                         Forecast
                                                         --------
                                                             to

   Net income                                      $      88   $    89
   Gain on sale of real estate                           (4)       (4)
   Depreciation and amortization of real
   estate & joint venture assets                          82        82

   Amortization of initial direct costs of leases          7         7
                                                   ---------   -------
   Funds from operations                                 172       173
       Income attributable to operating
       partnership units                                   1         1
   Dividends on preferred stock                         (11)      (11)
                                                   ---------   -------
   Funds from operations available
   for common shareholders                               162 to    163
                                                   =========   =======

   Weighted Average Shares (diluted)                    53.3
                                                   ---------

   Funds from operations available for common
   shareholders per diluted share                      $3.03     $3.05
                                                   ---------   -------

Note:
----
(1) Individual items may not add up to total as a result of rounding.

CONTACT: Federal Realty Investment Trust
Andrew Blocher, 301-998-8166
ablocher@federalrealty.com
or
Suzanne O'Neill, 301-998-8358
soneill@federalrealty.com

SOURCE: Federal Realty Investment Trust