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News Release

One Year after the Opening of Santana Row, Federal Realty Announces Milestones of Progress

ROCKVILLE, Md.--(BUSINESS WIRE)--Nov. 12, 2003--Santana Row, Federal Realty Investment Trust's (NYSE:FRT) urban mixed-use property in San Jose, Calif., opened for business on November 7, 2002, just 80 days after a devastating fire destroyed a significant portion of the largest building at the property. On that day, the property contained only 35 retailers and no restaurants. Today, Santana Row has established itself as the premier retail, restaurant, and entertainment destination in the Bay Area, offering over a dozen restaurant choices and more than 90 retail stores, meeting the needs of a broad and diverse customer base.

Federal Realty announced today the following milestones of progress:

    --  Best Buy and The Container Store opening with heavy traffic
        and strong sales,

    --  Existing retailers expanding and bringing new concepts to
        Santana Row,

    --  Century Theatres initiating construction of a new CineArts
        Theatre scheduled to open summer 2004, and

    --  Construction commencing on 256 additional residential units
        and amenities.

"We are pleased to be in the position we are in as we enter the upcoming holiday season," stated Donald C. Wood, president and chief executive officer for Federal Realty. "These key events, along with the strong support of our existing retailers and interest from potential new retailers, allow us to further enhance the retail and residential offerings as the property matures."

Strong Opening of Best Buy and The Container Store

Best Buy and The Container Store, the two principal components of Phase II, recently opened ahead of schedule. Both stores have reported high traffic and strong sales in the first weeks after opening. These two dominant retailers will anchor the north side of Santana Row, and it is anticipated that they will generate significant additional sales volume, resulting in greater customer traffic and improved performance across the entire property.

Expansion of New Retail Concepts

Based on the success of its Anthropologie store at Santana Row, Philadelphia-based Urban Outfitters, Inc. recently signed a second lease at the property for its Urban Outfitters concept in a 12,500 square foot space on the first and second floors of the building housing Hotel Valencia. The exciting, hip clothier, which operates nearly 80 stores internationally, is scheduled to open its first Urban Outfitters location in the South Bay at Santana Row by next summer.

"Urban Outfitters is excited to be a part of Santana Row," stated Wade L. McDevitt of The McDevitt Company, Urban Outfitter's exclusive tenant representative. "We were encouraged by the way the property has established itself in the Bay Area, taking advantage of strong demographics and maintaining a 'true' street culture with a wonderful blend of creative retail, restaurant, and entertainment merchants."

In addition, Federal Realty is working with a number of other retailers to expand existing concepts or bring new concepts to Santana Row. The success of retailers over the last year has solidified Santana Row as the shopping destination of choice in the Bay Area.

"We are enormously pleased with the strong sales results and substantial traffic volumes our Santana Row store has experienced during its first year of operation," stated Tim Hopkins, chief executive officer of Sur La Table. "We realize that our association with Santana Row is a long-term proposition and we are committed to making this location the best it can possibly be."

"We are extremely pleased with how Santana Row has developed over this last year," stated George Santacroce, president of the retail division of Tommy Bahama. "Our sales continue to grow at a double-digit rate and we look forward to exploring further opportunities at Santana Row."

Construction Begins on CineArts Theatre

Century Theatres, operator of over 900 screens in 11 states, is mobilizing for the construction of CineArts at Santana Row, a six screen cinema that will offer customers independent, documentary, foreign, and art films, as well as provide gourmet concessions. Expected to open in the summer of 2004, CineArts will anchor the south end of Santana Row and add a new element to the entertainment and restaurant offerings at the property.

"CineArts is committed to providing a superior cinematic experience to moviegoers," says Raymond W. Syufy, chairman and CEO of CineArts, a new division of Century Theatres. "We are excited to be part of Santana Row which embodies the eclectic, cosmopolitan spirit of our movie-going audiences."

Additional Residential Units and Amenities

Construction has begun on Phase IV of Santana Row, which encompasses 256 additional rental residential units above the retail pedestal of Building 7. Scheduled to become available for occupancy in early 2005, the addition of these residential units is anticipated to enhance demand for the retail offerings on the street below. The new rental residential units will consist of 96 town homes and 160 flats. The town homes will average 1,400 square feet, while the flats will average 1,027 square feet. In addition to the residential units, this fourth phase of Santana Row will provide amenities for all residents at Santana Row, including a 75-foot lap pool, children's wading area, two spas, a landscaped patio area, clubhouse, and business center.

About Federal Realty

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 16.2 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and Western United States. The operating portfolio was 94% occupied by over 2,000 national, regional, and local retailers as of September 30, 2003, 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
             Media Inquiries
             Kristine Warner, 301-998-8212

    SOURCE: Federal Realty Investment Trust