Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 31, 2018
 
Federal Realty Investment Trust
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
Maryland
 
1-07533
 
52-0782497
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
1626 East Jefferson Street, Rockville, Maryland
 
20852-4041
(Address of principal executive offices)
 
(Zip Code)
Registrant's telephone number including area code: 301/998-8100
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
¨
Emerging growth company
¨
If an emerging growth company, indicate by checkmark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.









Item 2.02. Results of Operations and Financial Condition.

The following information is being furnished under Item 2.02-Results of Operations and Financial Condition. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Exchange Act, regardless of any general incorporation language in such filing.

On May 2, 2018, Federal Realty Investment Trust issued supplemental data pertaining to its operations, as well as a press release, to report its financial results for the quarter ended March 31, 2018. The supplemental data and press release are furnished as Exhibit 99.1 hereto.

Item 9.01.     Financial Statements and Exhibits.

(c)    Exhibits

99.1     Supplemental information at March 31, 2018 (including press release dated May 2, 2018)

    

    
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 
 
 
FEDERAL REALTY INVESTMENT TRUST
 
 
 
 
Date:
May 2, 2018
 
 /s/ Daniel Guglielmone
 
 
 
 
 
 
 
Daniel Guglielmone
 
 
 
Executive Vice President-
 
 
 
Chief Financial Officer and Treasurer








EXHIBIT INDEX


Exh No.    Exhibit                                    
99.1        Supplemental Information at March 31, 2018




Exhibit


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
March 31, 2018
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
First Quarter 2018 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Consolidated Income Statements
 
 
Consolidated Balance Sheets
 
 
Funds From Operations / Other Supplemental Information
 
 
Market Data
 
 
Components of Rental Income
 
 
Comparable Property Information
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Capital Lease Obligations
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Redevelopment Opportunities
 
 
 
 
5
Assembly Row, Pike & Rose, and Santana Row
 
 
 
6
Future Redevelopment Opportunities
 
 
 
 
7
Real Estate Status Report
 
 
 
 
8
Retail Leasing Summary
 
 
 
 
9
Lease Expirations
 
 
 
 
10
Portfolio Leased Statistics
 
 
 
 
11
Summary of Top 25 Tenants
 
 
 
 
12
Reconciliation of FFO Guidance
 
 
 
 
13
Glossary of Terms
 
 
 
 
 
 
 
 
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100

1




Safe Harbor Language
Certain matters discussed within this Supplemental Information 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 Annual Report on Form 10-K filed on February 13, 2018, and include the following:

risks that our tenants will not pay rent, may vacate early or may file for bankruptcy 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 completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
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 costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, 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 associated with general economic conditions, including local economic conditions in our geographic markets;
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 Supplemental Information. 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, filed with the Securities and Exchange Commission on February 13, 2018.



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NEWS RELEASE
www.federalrealty.com
 
 
FOR IMMEDIATE RELEASE
 
 
 
Investor Inquiries:
Media Inquiries:
Leah Andress Brady
Andrea Simpson
Investor Relations Associate
Vice President, Marketing
301.998.8265
617.684.1511
lbrady@federalrealty.com
asimpson@federalrealty.com


Federal Realty Investment Trust Announces First Quarter 2018 Operating Results

- Reports 3.8% comparable property POI growth and 22% comparable lease rollover -

ROCKVILLE, Md. (May 2, 2018) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2018. Highlights of the quarter and recent activity include:
Generated earnings per diluted share of $0.81 for the quarter compared to $0.78 in first quarter 2017.
Generated funds from operations available for common shareholders (FFO) per diluted share of $1.52 for the quarter compared to $1.45 in first quarter 2017.
Generated comparable property property operating income (POI) growth of 3.8% for the first quarter.
Signed leases for 403,250 sf of comparable space in the first quarter at an average rent of $31.51 psf and achieved cash basis rollover growth on those comparable spaces of 22%.
Maintained our 2018 FFO per diluted share guidance range to $6.08 - $6.24.

“We’re very pleased with our first quarter results,” said Donald C. Wood, President and Chief Executive Officer. “The combination of new retail tenant openings on both coasts, strong residential occupancy at our mixed use destinations and disciplined spending have come together for an impressive and powerful financial result in the quarter.”

Financial Results
Net income available for common shareholders was $59.2 million and earnings per diluted share was $0.81 for first quarter 2018 versus $56.1 million and $0.78, respectively, for first quarter 2017
In the first quarter 2018, Federal Realty generated FFO of $112.4 million, or $1.52 per diluted share. This compares to FFO of $105.8 million, or $1.45 per diluted share, in first quarter 2017.
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.


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Portfolio Results
In first quarter 2018, comparable property POI increased 3.8%. Comparable property POI represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment.
The overall portfolio was 94.8% leased as of March 31, 2018 compared to 94.6% on March 31, 2017. Federal Realty’s comparable property portfolio was 95.3% leased on March 31, 2018 compared to 95.1% on March 31, 2017.
During the first quarter 2018, on a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 78 leases for 403,250 square feet at an average cash basis contractual rent increase (i.e., excluding the impact of straight-line rents) of 22%. The average contractual rent on this comparable space for the first year of the new leases is $31.51 per square foot compared to the average contractual rent of $25.91 per square foot for the last year of the prior leases. The previous average contractual rent was calculated by including both the minimum rent and any percentage rent actually paid during the last year of the lease term for the re-leased space. On a straight-line basis, rent increases for comparable retail space averaged 31% for first quarter 2018.

Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.00 per common share, resulting in an indicated annual rate of $4.00 per common share. The regular common dividend will be payable on July 16, 2018 to common shareholders of record as of June 22, 2018.

Guidance
Federal Realty maintained its 2018 guidance for FFO per diluted share of $6.08 to $6.24 and updated 2018 earnings per diluted share guidance to $3.05 to $3.21.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its first quarter 2018 earnings conference call, which is scheduled for Thursday, May 3, 2018 at 11:00AM ET. To participate, please call 877.445.3230 five to ten minutes prior to the call start time and use the passcode 9071259 (required). A replay of the webcast will be available on Federal Realty’s website at www.federalrealty.com. A telephonic replay of the conference call will also be available through May 10, 2018 by dialing 855.859.2056; Passcode: 9071259.


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About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty’s mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,500 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 50 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit 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 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 Annual Report on Form 10-K filed on February 13, 2018, and include the following:
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy 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 completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;
risks that we are investing a significant amount in ground-up development projects that may not perform as planned, may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
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 costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, 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 associated with general economic conditions, including local economic conditions in our geographic markets;
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 may be 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 carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2018.



5




Federal Realty Investment Trust
 
 
 
Consolidated Income Statements
 
 
 
March 31, 2018
 
 
 
 
Three Months Ended
 
March 31,
 
2018

2017
 
(in thousands, except per share data)
 
(unaudited)
REVENUE
 
 
 
Rental income
$
220,581

 
$
204,447

Other property income
4,067

 
2,190

Mortgage interest income
757

 
752

Total revenue
225,405

 
207,389

EXPENSES
 
 
 
Rental expenses
44,773

 
41,109

Real estate taxes
28,448

 
25,090

General and administrative
7,929

 
8,267

Depreciation and amortization
58,110

 
51,379

Total operating expenses
139,260

 
125,845

OPERATING INCOME
86,145

 
81,544

Other interest income
179

 
106

Interest expense
(26,184
)
 
(23,758
)
Loss from real estate partnerships
(525
)
 

INCOME FROM CONTINUING OPERATIONS
59,615

 
57,892

Gain on sale of real estate, net
3,316

 
178

NET INCOME
62,931

 
58,070

   Net income attributable to noncontrolling interests
(1,684
)
 
(1,880
)
NET INCOME ATTRIBUTABLE TO THE TRUST
61,247

 
56,190

Dividends on preferred shares
(2,010
)
 
(135
)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$
59,237

 
$
56,055

EARNINGS PER COMMON SHARE, BASIC:
 
 
 
Net income available for common shareholders
$
0.81

 
$
0.78

Weighted average number of common shares
72,905

 
71,862

EARNINGS PER COMMON SHARE, DILUTED:
 
 
 
Net income available for common shareholders
$
0.81

 
$
0.78

Weighted average number of common shares
72,968

 
72,005



6




Federal Realty Investment Trust
Consolidated Balance Sheets
March 31, 2018
 
March 31,
 
December 31,
 
2018
 
2017
 
(in thousands, except share and per share data)
 
(unaudited)
 
 
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $1,656,951 and $1,639,486 of consolidated variable interest entities, respectively)
$
7,051,962

 
$
6,950,188

Construction-in-progress (including $39,171 and $43,393 of consolidated variable interest entities, respectively)
633,090

 
684,873

Assets held for sale
36,905

 

 
7,721,957

 
7,635,061

Less accumulated depreciation and amortization (including $257,604 and $247,410 of consolidated variable interest entities, respectively)
(1,922,110
)
 
(1,876,544
)
Net real estate
5,799,847

 
5,758,517

Cash and cash equivalents
64,407

 
15,188

Accounts and notes receivable, net
143,148

 
209,877

Mortgage notes receivable, net
30,429

 
30,429

Investment in real estate partnerships
23,513

 
23,941

Prepaid expenses and other assets
232,281

 
237,803

TOTAL ASSETS
$
6,293,625

 
$
6,275,755

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Mortgages payable, net (including $448,641 and $460,372 of consolidated variable interest entities, respectively)
$
479,333

 
$
491,505

Capital lease obligations
71,547

 
71,556

Notes payable, net
382,396

 
320,265

Senior notes and debentures, net
2,402,138

 
2,401,440

Accounts payable and accrued expenses
181,361

 
196,332

Dividends payable
75,667

 
75,931

Security deposits payable
17,072

 
16,667

Other liabilities and deferred credits
169,460

 
169,388

Total liabilities
3,778,974

 
3,743,084

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
141,541

 
141,157

Shareholders’ equity
 
 
 
Preferred shares, authorized 15,000,000 shares, $.01 par:
 
 
 
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding
150,000

 
150,000

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding
9,997

 
9,997

Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 73,216,520 and 73,090,877 shares issued and outstanding, respectively
735

 
733

Additional paid-in capital
2,859,717

 
2,855,321

Accumulated dividends in excess of net income
(769,311
)
 
(749,367
)
Accumulated other comprehensive loss
489

 
22

Total shareholders’ equity of the Trust
2,251,627

 
2,266,706

Noncontrolling interests
121,483

 
124,808

Total shareholders’ equity
2,373,110

 
2,391,514

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
6,293,625

 
$
6,275,755


7




Federal Realty Investment Trust
 
 
 
 
Funds From Operations / Other Supplemental Information
March 31, 2018
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2018
 
2017
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
Net income
 
$
62,931

 
$
58,070

Net income attributable to noncontrolling interests
 
(1,684
)
 
(1,880
)
Gain on sale of real estate, net (2)
 
(3,316
)
 
(70
)
Depreciation and amortization of real estate assets
 
51,351

 
44,682

Amortization of initial direct costs of leases
 
4,600

 
4,684

Funds from operations
 
113,882

 
105,486

Dividends on preferred shares (3)
 
(1,875
)
 
(135
)
Income attributable to operating partnership units
 
775

 
784

Income attributable to unvested shares
 
(388
)
 
(340
)
FFO
 
$
112,394

 
$
105,795

Weighted average number of common shares, diluted (3)
 
73,838

 
72,805

FFO per diluted share
 
$
1.52

 
$
1.45

 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
Development, redevelopment and expansions
 
$
66,726

 
$
105,826

Tenant improvements and incentives
 
11,774

 
9,150

Total non-maintenance capital expenditures
 
78,500

 
114,976

Maintenance capital expenditures
 
3,337

 
3,427

Total capital expenditures
 
$
81,837

 
$
118,403

 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
Regular common dividends declared
 
$
73,153

 
$
70,696

Dividend payout ratio as a percentage of FFO
 
65
%
 
67
%
 
 
 
 
 
Noncontrolling Interests Supplemental Information (4)
 
 
 
 
Property operating income (1)
 
$
3,333

 
3,231

Depreciation and Amortization
 
(1,719
)
 
(1,389
)
Interest Expense
 
(705
)
 
(746
)
Net income
 
$
909

 
$
1,096


Notes:
1)
See Glossary of Terms.
2)
Gain on sale of real estate for the three months ended March 31, 2018 is related to condominium units sold at Assembly Row and Pike & Rose. Effective January 1, 2018, we adopted a new accounting standard related to revenue recognition, which results in a change in our revenue recognition policy for condominium sales. See Note 2 of our March 31, 2018 Form 10-Q for additional information regarding the adoption.
3)
For the three months ended March 31, 2018, dividends on our Series 1 preferred shares are not deducted in the calculation of FFO available to common shareholders, as the related shares are dilutive and included in "weighted average common shares, diluted."
4)
Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to operating partnership units."



8




Federal Realty Investment Trust
Market Data
March 31, 2018
 
 
 
March 31,
 
 
 
2018
 
2017
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
73,979

 
73,037

 
Market price per common share
 
$
116.11

 
$
133.50

 
Common equity market capitalization including operating partnership units
 
$
8,589,702

 
$
9,750,440

 
 
 
 
 
 
 
Series C preferred shares outstanding
 
6

 

 
Liquidation price per Series C preferred share
 
$
25,000.00

 

 
Series C preferred equity market capitalization
 
$
150,000

 
$

 
 
 
 
 
 
 
Series 1 preferred shares outstanding (2)
 
400

 
400

 
Liquidation price per Series 1 preferred share
 
$
25.00

 
$
25.00

 
Series 1 preferred equity market capitalization
 
$
10,000

 
$
10,000

 
 
 
 
 
 
 
Equity market capitalization
 
$
8,749,702

 
$
9,760,440

 
 
 
 
 
 
 
Total debt (3)
 
3,335,414

 
3,013,369

 
 
 
 
 
 
 
Total market capitalization
 
$
12,085,116

 
$
12,773,809

 
 
 
 
 
 
 
Total debt to market capitalization at market price per common share
 
28
%
 
24
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations (4)
 
97
%
 
93
%
 
Variable rate debt
 
3
%
 
7
%
 
 
 
100
%
 
100
%
Notes:
1)
Amounts include 762,487 and 799,962 operating partnership units outstanding at March 31, 2018 and 2017, respectively.
2)
These shares, issued March 8, 2007, are unregistered.
3)
Total debt includes capital leases, mortgages payable, notes payable, senior notes and debentures, net of premiums/discounts and debt issuance costs from our consolidated balance sheet.
4)
Fixed rate debt includes our $275.0 million term loan as the rate is effectively fixed by two interest rate swap agreements.



9




Federal Realty Investment Trust
 
 
 
Components of Rental Income
 
 
 
March 31, 2018
 
 
 
 
Three Months Ended
 
March 31,
 
2018
 
2017
 
(in thousands)
Minimum rents (1)
 
 
 
Retail and commercial
$
152,150

 
$
142,143

Residential
16,015

 
13,503

Cost reimbursements
45,204

 
41,518

Percentage rents
2,774

 
2,823

Other
4,438

 
4,460

Total rental income
$
220,581

 
$
204,447


Notes:
1)
Minimum rents include $1.9 million and $3.6 million for the three months ended March 31, 2018 and 2017, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.8 million and $1.1 million for the three months ended March 31, 2018 and 2017, respectively, to recognize income from the amortization of in-place leases.



10




Federal Realty Investment Trust
 
 
 
 
Comparable Property Information
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
The following information is being provided for “Comparable Properties.” Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets excluded from Comparable Properties in Q1 include: Assembly Row - Phase 2, CocoWalk, Pike & Rose, The Point at Plaza El Segundo, The Shops at Sunset Place, Towson Residential, 700 Santana Row, and all properties acquired or disposed of from Q1 2017 to Q1 2018. Comparable Property property operating income (“Comparable Property POI”) is a non-GAAP measure used by management in evaluating the operating performance of our properties period over period.
 
 
 
 
 
Reconciliation of GAAP operating income to Comparable Property POI
 
Three Months Ended
 
 
March 31,
 
 
2018
 
2017
 
 
(in thousands)
 
Operating Income
$
86,145

 
$
81,544

 
Add:
 
 
 
 
Depreciation and amortization
58,110

 
51,379

 
General and administrative
7,929

 
8,267

 
Property operating income (POI)
152,184

 
141,190

 
Less: Non-comparable POI - acquisitions/dispositions
(5,578
)
 
(1,470
)
 
Less: Non-comparable POI - redevelopment, development & other
(10,741
)
 
(8,782
)
 
Comparable Property POI
$
135,865

 
$
130,938

 
 
 
 
 
 
Additional information regarding the components of Comparable Property POI
 
Three Months Ended
 
 
March 31,
 
 
2018
 
2017
% Change
 
(in thousands)
 
Rental income
$
192,387

 
$
187,052

 
Other property income
3,736

 
2,252

 
 
196,123

 
189,304

 
 
 
 
 
 
Rental expenses
(36,422
)
 
(35,813
)
 
Real estate taxes
(23,836
)
 
(22,553
)
 
 
(60,258
)
 
(58,366
)
 
 
 
 
 
 
Comparable Property POI
$
135,865

 
$
130,938

3.8
%
 
 
 
 
 
Comparable Property POI as a percentage of total POI
89
%
 
93
%
 
 
 
 
 
 
Comparable Property - Occupancy Statistics (1)
 
At March 31,
 
 
2018
 
2017
 
GLA - comparable retail properties
21,289,000

 
21,308,000
 
Leased % - comparable retail properties
95.3
%
 
95.1
%
 
Occupancy % - comparable retail properties
93.8
%
 
93.5
%
 
 
 
 
 
 
Comparable Property - Summary of Capital Expenditures (2)
 
Three Months Ended
 
 
March 31,
 
 
2018
 
2017
 
 
(in thousands)
 
Redevelopment and tenant improvements and incentives
$
23,988

 
$
27,748

 
Maintenance capital expenditures
3,221

 
2,629

 
 
$
27,209

 
$
30,377

 
Notes:
 
1)
See page 25 for entire portfolio occupancy statistics.
2)
See page 9 for "Summary of Capital Expenditures" for our entire portfolio.

11




Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
March 31, 2018
 
 
As of March 31, 2018
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (4)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Rollingwood Apartments
5/1/2019
 
5.54%
 
$
20,697

 
 
 
 
 
 
The Shops at Sunset Place
9/1/2020
 
5.62%
 
66,064

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
4,286

 
 
 
 
 
 
Sylmar Towne Center
6/6/2021
 
5.39%
 
17,271

 
 
 
 
 
 
Plaza Del Sol
12/1/2021
 
5.23%
 
8,538

 
 
 
 
 
 
The AVENUE at White Marsh
1/1/2022
 
3.35%
 
52,705

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
70,625

 
 
 
 
 
 
Azalea
11/1/2025
 
3.73%
 
40,000

 
 
 
 
 
 
Bell Gardens
8/1/2026
 
4.06%
 
13,123

 
 
 
 
 
 
Plaza El Segundo
6/5/2027
 
3.83%
 
125,000

 
 
 
 
 
 
The Grove at Shrewsbury (East)
9/1/2027
 
3.77%
 
43,600

 
 
 
 
 
 
Brook 35
7/1/2029
 
4.65%
 
11,500

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
6,187

 
 
 
 
 
 
Subtotal
 
 
 
 
479,596

 
 
 
 
 
 
Net unamortized premium and debt issuance costs
 
 
 
(263
)
 
 
 
 
 
 
Total mortgages payable, net
 
 
 
 
479,333

 
 
 
4.10%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Term loan (2)
11/21/2018
 
LIBOR + 0.90%
 
275,000

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
4,815

 
 
 
 
 
 
Unsecured variable rate
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility (3)
4/20/2020
 
LIBOR + 0.825%
 
103,000

 
 
 
 
 
 
Subtotal
 
 
 
 
382,815

 
 
 
 
 
 
Net unamortized debt issuance costs
 
 
 
(419
)
 
 
 
 
 
 
Total notes payable, net
 
 
 
 
382,396

 
 
 
2.87%
(5)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
2.55% notes
1/15/2021
 
2.55%
 
250,000

 
 
 
 
 
 
3.00% notes
8/1/2022
 
3.00%
 
250,000

 
 
 
 
 
 
2.75% notes
6/1/2023
 
2.75%
 
275,000

 
 
 
 
 
 
3.95% notes
1/15/2024
 
3.95%
 
300,000

 
 
 
 
 
 
7.48% debentures
8/15/2026
 
7.48%
 
29,200

 
 
 
 
 
 
3.25% notes
7/15/2027
 
3.25%
 
475,000

 
 
 
 
 
 
6.82% medium term notes
8/1/2027
 
6.82%
 
40,000

 
 
 
 
 
 
4.50% notes
12/1/2044
 
4.50%
 
550,000

 
 
 
 
 
 
3.625% notes
8/1/2046
 
3.63%
 
250,000

 
 
 
 
 
 
Subtotal
 
 
 
 
2,419,200

 
 
 
 
 
 
Net unamortized discount and debt issuance costs
 
 
 
(17,062
)
 
 
 
 
 
 
Total senior notes and debentures, net
 
 
 
2,402,138

 
 
 
3.76%
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,547

 
 
 
8.04%
 
Total debt and capital lease obligations, net
 
 
 
 
$
3,335,414

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and capital lease obligations, net
 
 
 
$
3,232,414

 
97
%
 
3.84%
 
Total variable rate debt
 
 
 
103,000

 
3
%
 
2.59%
(5)
Total debt and capital lease obligations, net
 
 
 
$
3,335,414

 
100
%
 
3.80%
(5)

12




 
Three Months Ended
 
March 31,
 
2018
 
2017
Operational Statistics
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (6)
4.13x
 
4.48x

Notes:
1)
Mortgages payable does not include our share of the debt on our unconsolidated real estate partnerships. At March 31, 2018, our share was approximately $32.6 million. At March 31, 2018, our noncontrolling interests share of mortgages payable was $46.0 million.
2)
Our $275.0 million term loan is subject to a one year extension, at our option, which would extend the maturity date to November 21, 2019. We also entered into two interest rate swap agreements to fix the variable rate portion of our $275.0 million term loan at 1.72% through November 1, 2018. The swap agreements effectively fix the rate on the term loan at 2.62% and thus, the loan is included in fixed rate debt.
3)
The maximum amount drawn under our revolving credit facility during the three months ended March 31, 2018 was $133.0 million, and the weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 2.4%.
4)
The weighted average effective interest rate includes the amortization of any debt issuance costs and discounts and premiums, if applicable, except as described in Note 5.
5)
The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had $103.0 million outstanding on March 31, 2018. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 2.62% as the result of the interest rate swap agreements discussed in Note 2. The term loan is included in fixed rate debt.
6)
Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs, and the portion of rent expense representing an interest factor. EBITDAre is reconciled to net income in the Glossary of Terms.

13




Federal Realty Investment Trust
Summary of Debt Maturities
March 31, 2018
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (4)
 
 
(in thousands)
 
 
 
 
 
 
 
2018
$
4,797

 
$
275,000

(1)
$
279,797

 
8.3
%
 
8.3
%
 
2.8
%
 
2019
6,265

 
20,160

 
26,425

 
0.8
%
 
9.1
%
 
5.7
%
 
2020
5,616

 
163,593

(2)
169,209

 
5.0
%
 
14.1
%
 
3.1
%
(5)
2021
3,740

 
277,546

 
281,286

 
8.4
%
 
22.5
%
 
2.9
%
 
2022
1,522

 
366,323

 
367,845

 
11.0
%
 
33.5
%
 
3.5
%
 
2023
1,550

 
330,010

 
331,560

 
9.9
%
 
43.4
%
 
3.9
%
 
2024
1,333

 
300,000

 
301,333

 
9.0
%
 
52.4
%
 
4.2
%
 
2025
904

 
40,000

 
40,904

 
1.2
%
 
53.6
%
 
3.9
%
 
2026
688

 
39,886

 
40,574

 
1.2
%
 
54.8
%
 
6.6
%
 
2027
573

 
683,600

 
684,173

 
20.4
%
 
75.2
%
 
3.8
%
 
Thereafter
18,552

 
811,500

 
830,052

 
24.8
%
 
100.0
%
 
4.3
%
 
Total
$
45,540

 
$
3,307,618

 
$
3,353,158

(3)
100.0
%
 
 
 
 
 
Notes:
1)
Our $275.0 million unsecured term loan matures on November 21, 2018, subject to a one-year extension at our option.
2)
Our $800.0 million revolving credit facility matures on April 20, 2020, subject to two six-month extensions at our option. As of March 31, 2018, there was $103.0 million outstanding under this credit facility.
3)
The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized net premium/discount and debt issuance costs on certain mortgage loans, notes payable, and senior notes as of March 31, 2018.
4)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
5)
The weighted average rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.


14




Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
The following redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust. (1)
 
 
 
 
 
 
 
Property
Location
Opportunity
Projected ROI (2)
Projected Cost (1)
Cost to Date
Anticipated Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
 
Cocowalk
Coconut Grove, FL
Shopping center redevelopment to include demolition of three story east wing of the property and construction of a 77,000 square foot 5-story office building with an additional 13,000 square feet of ground floor retail
6%-7%

 $73 - $77
$11
2020
Towson Residential
Towson, MD
New 105 unit 5-story apartment building with above grade parking
6
%
$20
$20
2018
Del Mar Village
Boca Raton, FL
Demolition of small shop spaces and relocation of tenants to accommodate new 37,000 square foot fitness center tenant
7
%
$11
$9
2018
Montrose Crossing
Rockville, MD
Demolition of 10,000 square foot restaurant building to construct an 18,000 square foot multi-tenant pad building
11
%
$10
$7
2018
Willow Lawn
Richmond, VA
Demolition of small shop and mini anchor spaces to construct new 49,000 square foot anchor space to accommodate new sporting goods retailer and new 17,000 square foot building for relocation of existing tenant
7
%
$10
$5
2018
Pike 7 Plaza
Vienna, VA
Addition of 8,300 square foot multi-tenant retail pad building
7
%
$10
$7
2019
Mercer Mall
Lawrenceville, NJ
Redevelopment of recently acquired office building pre-leased to a single tenant user
7
%
$9
$7
2018
Wildwood
Bethesda, MD
4,900 square foot south end building expansion and site improvements
7
%
$6
$1
2019
Dedham Plaza
Dedham, MA
New 4,000 square foot pad site for restaurant tenant
8
%
$2
$2
2018
Willow Lawn
Richmond, VA
Conversion of vacant 5,000 square foot pad building to retail use to accommodate new 3,500 square foot fast casual restaurant tenant. Remainder of pad building to be demolished to construct new 2,200 square foot Starbucks pad site
8
%
$2
$1
2019
Total Active Redevelopment projects (4)
 
7
%
$153-$157

$70

 

Notes:
(1)
There is no guarantee that the Trust will ultimately complete any or all of these opportunities, that the Projected Return on Investment (ROI) or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected ROI and Projected Cost are management's best estimate based on current information and may change over time.
(2)
Projected ROI for redevelopment projects generally reflects only the deal specific cash, unleveraged incremental Property Operating Income (POI) generated by the redevelopment and is calculated as Incremental POI divided by incremental cost. Incremental POI is the POI generated by the redevelopment after deducting rent being paid or management's estimate of rent to be paid for the redevelopment space and any other space taken out of service to accommodate the redevelopment. Projected ROI for redevelopment projects does NOT include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.
(3)
Stabilization is generally the year in which 95% physical occupancy of the redeveloped space is achieved. Economic stabilization may occur at a later point in time.
(4)
All subtotals and totals reflect cost weighted-average ROIs.


15




Federal Realty Investment Trust
 
 
 
 
 
 
 
 
 
 
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected POI Delivered
 
 
 
 
 
 
 
 
 
 
 
(as a % of Total)
 
 
 
 
 
 
Projected
 
Total
Costs to
 
For Year Ended December 31, (2)
 
 
Property (1)
Location
Opportunity
 
ROI (3)
 
Cost (4)
Date
 
2018
2019
 
Expected Opening Timeframe
 
 
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assembly Row
Somerville, MA
 
 
 
 
 
 
 
 
 
 
 
Phase II

  - 161,000 SF of retail
- 447 residential units
- 158 boutique hotel rooms
 
7%
 (5)
$280 - 295
$269
 
50%
90%
 
- 64,000 square feet of retail has opened, remaining
tenants projected to open through 2018.


 




 


 
- Residential building opened in September 2017 with
deliveries expected through 2Q 2018.


 
 




 


 
- 741,500 SF Partners Healthcare office space (built by
Partners) opened in 2016.


 - 122 for-sale condominium units
 
 (6)
$74 - 79
$74
 


 
- Closings commenced 1Q 2018
Future Phases

 - 2M SF of commercial
 
TBD

TBD

 


 



 - 826 residential units
 




 


 




 




 


 

Pike & Rose
North Bethesda, MD

 




 


 

Phase II

  - 216,000 SF of retail
- 272 residential units
- 177 boutique hotel rooms
 
6-7%
 (5)
$200 - 207
$187
 
60%
85%
 
- 154,000 square feet of retail has opened, remaining
  tenants projected to open through 2018.


 




 


 


 




 


 
- Residential building opened in August 2017 with
deliveries expected through 2Q 2018


 - 99 for-sale condominium units
 
 (6)
$60-62
$59
 


 
- Closings commenced 1Q 2018
Future Phases

 - 1M SF of commercial
 
TBD

TBD

 


 



 - 741 residential units
 




 


 




 




 
 
 
 

Santana Row
San Jose, CA
 
 
 
 
 
 
 
 
 
 

700 Santana Row
 
 - 284,000 SF of office
 
7%
 
$205 - 215
$77
 
TBD
 
- Commenced construction 4Q 2016
 
 
 - 29,000 SF of retail & 1,300
parking spaces
 
 
 
 
 
 
 
 
 
- Opening projected 2019
Future Phases
 
 - 321,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 395 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 - 1M SF of commercial across from Santana Row
 
 
 
 
 
 
 
 
 
 
Notes:
(1)
Anticipated opening dates, total cost, projected return on investment (ROI), and projected POI percentages are subject to adjustment as a result of factors inherent in the development process, some of which may not be

under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors.
(2)
Percentage figures reflect (i) the projected POI (herein defined) for the stated year divided by (ii) the current projected annual stabilized POI for the Property. These percentages are projections only and we cannot give any

assurances that these amounts will actually be achieved.
(3)
Projected ROI for development projects reflects the unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(4)
Projected costs for Assembly Row and Pike & Rose include an allocation of infrastructure costs for the entire project.
(5)
Costs are net of expected reimbursement by third parties and land sale proceeds. Phase II total costs and costs to date include our share of the costs in the hotel.
(6)
Condominiums shown at cost; the projected ROI for Phase II does not assume any incremental profit on the sale of condominium units; for return calculation purposes, condominiums are assumed to be sold at cost.

16




Federal Realty Investment Trust
Future Redevelopment Opportunities
March 31, 2018
 
We have identified the following potential opportunities to create future shareholder value. Executing these opportunities could be subject to government approvals, tenant consents, market conditions, etc. Work on many of these new opportunities is in its preliminary stages and may not ultimately come to fruition. This list will change from time to time as we identify hurdles that cannot be overcome in the near term, and focus on those opportunities that are most likely to lead to the creation of shareholder value over time.
 
 
 
 
 
 
 
 
Pad Site Opportunities - Opportunities to add both single tenant and multi-tenant stand alone pad buildings at existing retail properties. Many of these opportunities are "by right" and construction is awaiting appropriate retailer demand.
 
Escondido Promenade
Escondido, CA
 
Melville Mall
Huntington, NY
 
 
 
Federal Plaza
Rockville, MD
 
Mercer Mall
Lawrenceville, NJ
 
 
 
Flourtown
Flourtown, PA
 
Pan Am
Fairfax, VA
 
 
 
Fresh Meadows
Queens, NY
 
Sylmar Towne Center
Sylmar, CA
 
 
 


 


 
 
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into more productive uses for the property.
 
Barracks Road
Charlottesville, VA
 
Fresh Meadows
Queens, NY
 
 
 
Bethesda Row
Bethesda, MD
 
Hastings Ranch Plaza
Pasadena, CA
 
 
 
Brick Plaza
Brick, NJ
 
Northeast
Philadelphia, PA
 
 
 
Crossroads
Highland Park, IL
 
Riverpoint Center
Chicago, IL
 
 
 
Darien
Darien, CT
 
The Shops at Sunset Place
South Miami, FL
 
 
 
Dedham Plaza
Dedham, MA
 
Third Street Promenade
Santa Monica, CA
 
 
 
Fourth Street
Berkeley, CA
 
Wildwood
Bethesda, MD
 
 
 
 
 
 
 
 
 
 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Graham Park Plaza
Falls Church, VA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Village at Shirlington
Arlington, VA
 
 
 
 
 
 
 
 
 
 
Longer Term Mixed-Use Opportunities
 
Assembly Row (1)
Somerville, MA
 
San Antonio Center
Mountain View, CA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Santana Row (3)
San Jose, CA
 
 
 
Pike 7 Plaza
Vienna, VA
 
Santana Row - Winchester Theater site (3)
San Jose, CA
 
 
 
Pike & Rose (2)
North Bethesda, MD
 


 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
Assembly Row
Remaining entitlements after Phase II include approximately 2 million square feet of commercial-use buildings and 826 residential units.
(2)
Pike & Rose
Remaining entitlements after Phase II include approximately 1 million square feet of commercial-use buildings and 741 residential units.
(3)
Santana Row
Remaining entitlements include approximately 321,000 square feet of commercial space and 395 residential units, as well as approximately 1 million square feet of commercial space on land we control across from Santana Row.

17




Federal Realty Investment Trust
Real Estate Status Report
March 31, 2018
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
 
GLA (2)
 
% Leased (2)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
  Washington Metropolitan Area
 
 
 
 
 
 
 
 
 
 
 
 
Barcroft Plaza

Washington, DC-MD-VA
$
46,309



10

 
115,000

 
90
%


46,000

 
Harris Teeter

Bethesda Row

Washington, DC-MD-VA
226,734



17

 
534,000

 
93
%
180

40,000

 
Giant Food
Apple / Equinox / Multiple Restaurants
Congressional Plaza
(3)
Washington, DC-MD-VA
102,577



21

 
325,000

 
98
%
194

25,000

 
The Fresh Market
Buy Buy Baby / Saks Fifth Avenue Off 5th / Container Store / Last Call Studio by Neiman Marcus
Courthouse Center

Washington, DC-MD-VA
5,346


2

 
35,000

 
69
%


 


Falls Plaza/Falls Plaza-East

Washington, DC-MD-VA
14,016


10

 
144,000

 
94
%

51,000

 
Giant Food
CVS / Staples
Federal Plaza

Washington, DC-MD-VA
70,040


18

 
249,000

 
98
%

14,000

 
Trader Joe's
TJ Maxx / Micro Center / Ross Dress For Less
Free State Shopping Center

Washington, DC-MD-VA
64,816


29

 
264,000

 
95
%

73,000


Giant Food
TJ Maxx / Ross Dress For Less / Office Depot
Friendship Center

Washington, DC-MD-VA
38,106


1

 
119,000

 
100
%


 

Marshalls / Nordstrom Rack / DSW / Maggiano's
Gaithersburg Square

Washington, DC-MD-VA
27,458


16

 
207,000

 
96
%


 

Bed, Bath & Beyond / Ross Dress For Less / Ashley Furniture HomeStore
Graham Park Plaza

Washington, DC-MD-VA
35,409



19

 
260,000

 
89
%

58,000

 
Giant Food
CVS
Idylwood Plaza

Washington, DC-MD-VA
16,915


7

 
73,000

 
95
%

30,000

 
Whole Foods

Laurel

Washington, DC-MD-VA
57,434



26

 
389,000

 
86
%

61,000

 
Giant Food
Marshalls / L.A. Fitness
Leesburg Plaza

Washington, DC-MD-VA
36,619



26

 
236,000

 
94
%

55,000

 
Giant Food
Petsmart / Gold's Gym / Office Depot
Montrose Crossing
(3)
Washington, DC-MD-VA
160,500

70,625

36

 
364,000

 
90
%

73,000

 
Giant Food
Marshalls / Old Navy / Barnes & Noble / Bob's Discount Furniture
Mount Vernon/South Valley/7770 Richmond Hwy
(5)
Washington, DC-MD-VA
84,737



29

 
570,000

 
95
%

62,000

 
Shoppers Food Warehouse
TJ Maxx / Home Depot / Bed, Bath & Beyond / Results Fitness
Old Keene Mill

Washington, DC-MD-VA
7,926


10

 
92,000

 
97
%

24,000

 
Whole Foods
Walgreens / Planet Fitness
Pan Am

Washington, DC-MD-VA
29,234


25

 
227,000

 
100
%

65,000

 
Safeway
Micro Center / CVS / Michaels
Pentagon Row

Washington, DC-MD-VA
103,478



14

 
299,000

 
84
%

45,000

 
Harris Teeter
TJ Maxx / Bed, Bath & Beyond / DSW
Pike & Rose
(4)
Washington, DC-MD-VA
572,233


24

 
405,000

 
100
%
740


 

iPic Theater / Porsche / H & M / REI / Pinstripes / Multiple Restaurants
Pike 7 Plaza

Washington, DC-MD-VA
46,094


13

 
164,000

 
100
%


 

TJ Maxx / DSW / Crunch Fitness / Staples
Plaza del Mercado

Washington, DC-MD-VA
46,224



10

 
117,000

 
93
%

18,000


Aldi
CVS / L.A. Fitness
Quince Orchard

Washington, DC-MD-VA
39,040



16

 
267,000

 
96
%

19,000

 
Aldi
HomeGoods / L.A. Fitness / Staples
Rockville Town Square
(6)
Washington, DC-MD-VA
51,453

4,451

12

 
187,000

 
93
%

25,000

 
Dawson's Market
CVS / Gold's Gym / Multiple Restaurants
Rollingwood Apartments

Washington, DC-MD-VA
10,827

20,697

14

 
N/A

 
96
%
282


 


Sam's Park & Shop

Washington, DC-MD-VA
13,416


1

 
48,000

 
86
%


 


Tower Shopping Center

Washington, DC-MD-VA
21,940



12

 
112,000

 
86
%

26,000

 
L.A. Mart
Talbots / Total Wine & More
Tyson's Station

Washington, DC-MD-VA
4,667



5

 
50,000

 
87
%

11,000

 
Trader Joe's

Village at Shirlington
(6)
Washington, DC-MD-VA
64,833

6,660

16

 
264,000

 
87
%

28,000

 
Harris Teeter
AMC / Carlyle Grand Café
Wildwood

Washington, DC-MD-VA
20,685


12

 
83,000

 
98
%

20,000

 
Balducci's
CVS
 

Total Washington Metropolitan Area
2,019,066


451

 
6,199,000

 
93
%


 
 
 
 
 
 
 
 

 
 
 
 

 
 
 
 
  California
 
 
 
 

 
 
 
 

 
 
 
 
Azalea
(3)
Los Angeles-Long Beach-Anaheim, CA
107,347

40,000

22

 
222,000

 
100
%

 
 
 
Marshalls / Ross Dress for Less / Ulta / CVS
Bell Gardens
(3)
Los Angeles-Long Beach-Anaheim, CA
99,904

13,123

29

 
330,000

 
97
%


67,000

 
Food 4 Less
Marshalls / Ross Dress for Less / Petco
Colorado Blvd

Los Angeles-Long Beach-Anaheim, CA
19,517


1

 
62,000

 
100
%
12





Pottery Barn / Banana Republic
Crow Canyon Commons

San Ramon, CA
90,839

 
22

 
241,000

 
95
%

32,000


Sprouts
Orchard Supply Hardware / Rite Aid / Total Wine & More
East Bay Bridge

San Francisco-Oakland-Fremont, CA
178,950

 
32

 
441,000

 
100
%
 
59,000

 
Pak-N-Save
Home Depot / Target / Nordstrom Rack

18




Federal Realty Investment Trust
Real Estate Status Report
March 31, 2018
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
 
GLA (2)
 
% Leased (2)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
Escondido Promenade
(3)
San Diego, CA
49,577

 
18

 
299,000

 
99
%

 
 
 
TJ Maxx / Dick’s Sporting Goods / Ross Dress For Less / Toys R Us
Fourth Street
(3)
San Francisco-Oakland-San Jose, CA
23,890

 
3

 
71,000

 
55
%




CB2 / Ingram Book Group
Hastings Ranch Plaza

Los Angeles-Long Beach-Anaheim, CA
22,651

 
15

 
273,000

 
98
%




Marshalls / HomeGoods / CVS / Sears
Hermosa Avenue

Los Angeles-Long Beach-Anaheim, CA
6,185

 
<1

 
23,000

 
81
%







Hollywood Blvd

Los Angeles-Long Beach-Anaheim, CA
46,330

 
3

 
179,000

 
80
%




Marshalls / L.A. Fitness / La La Land
Kings Court
(5)
San Jose, CA
11,668



8

 
80,000

 
100
%


31,000


Lunardi's Super Market
CVS
Old Town Center

San Jose, CA
36,931

 
8

 
98,000

 
94
%




Anthropologie / Banana Republic / Gap
Olivo at Mission Hills
(3)
Los Angeles-Long Beach-Anaheim, CA
72,942

 
12

 
106,000

 
100
%






Target / 24 Hour Fitness / Fallas Stores
Plaza Del Sol
(3)
Los Angeles-Long Beach-Anaheim, CA
17,934

8,538

4

 
48,000

 
100
%




Marshalls
Plaza Pacoima
(3)
Los Angeles-Long Beach-Anaheim, CA
50,359

 
18

 
204,000

 
100
%






Costco / Best Buy
Plaza El Segundo / The Point
(3)
Los Angeles-Long Beach-Anaheim, CA
281,534

125,000

50

 
495,000

 
96
%

66,000

 
Whole Foods
Anthropologie / HomeGoods / Dick's Sporting Goods / Multiple Restaurants
Santana Row

San Jose, CA
880,996


45

 
885,000

 
98
%
662


 

Crate & Barrel / H&M / Container Store / Multiple Restaurants
San Antonio Center
(5)
San Francisco-Oakland-San Jose, CA
73,733


33

 
376,000

 
97
%

11,000

 
Trader Joe's
Walmart / Kohl's / 24 Hour Fitness
Sylmar Towne Center
(3)
Los Angeles-Long Beach-Anaheim, CA
43,527

17,271

12

 
148,000

 
91
%

43,000

 
Food 4 Less
CVS
Third Street Promenade

Los Angeles-Long Beach-Anaheim, CA
79,129


2

 
209,000

 
98
%


 

Banana Republic / Old Navy / J. Crew
Westgate Center

San Jose, CA
154,474


44

 
647,000

 
99
%

38,000

 
Walmart Neighborhood Market
Target / Nordstrom Rack / Nike Factory / Burlington
 
 
Total California
2,348,417


381

 
5,437,000

 
97
%

 
 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  NY Metro/New Jersey







 


 
 

 
 
 
 
Brick Plaza

Monmouth-Ocean, NJ
77,752


46

 
422,000

 
77
%


 

AMC / Barnes & Noble / Ulta / DSW
Brook 35
(3) (5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
47,610

11,500

11

 
98,000

 
96
%


 

Banana Republic / Gap / Coach / Williams-Sonoma
Darien

New Haven-Bridgeport-Stamford-Waterbury
50,277


9

 
93,000

 
97
%
4

45,000

 
Stop & Shop
Equinox
Fresh Meadows

New York, NY
90,425


17

 
403,000

 
99
%

15,000

 
Island of Gold
AMC / Kohl's / Michaels
Greenlawn Plaza

Nassau-Suffolk, NY
31,707


13

 
106,000

 
96
%

46,000

 
Greenlawn Farms
Tuesday Morning
Greenwich Avenue

New Haven-Bridgeport-Stamford-Waterbury
14,127


1

 
36,000

 
100
%


 

Saks Fifth Avenue
Hauppauge

Nassau-Suffolk, NY
29,081


15

 
134,000

 
99
%

61,000

 
Shop Rite
A.C. Moore
Huntington

Nassau-Suffolk, NY
47,380


21

 
279,000

 
99
%


 

Nordstrom Rack / Bed, Bath & Beyond / Buy Buy Baby / Michaels
Huntington Square

Nassau-Suffolk, NY
12,191


18

 
74,000

 
85
%


 

Barnes & Noble
Melville Mall

Nassau-Suffolk, NY
89,483


21

 
251,000

 
95
%

53,000

 
Uncle Giuseppe's Marketplace
Marshalls / Dick's Sporting Goods / Field & Stream / Macy's Backstage
Mercer Mall
(6)
Trenton, NJ
128,265

55,529

50

 
530,000

 
98
%

75,000

 
Shop Rite
TJ Maxx / Nordstrom Rack / Bed, Bath & Beyond / REI
The Grove at Shrewsbury
(3) (5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
125,002

43,600

21

 
193,000

 
98
%


 

Lululemon / Anthropologie / Pottery Barn / Williams-Sonoma
Troy

Newark, NJ
36,895


19

 
211,000

 
99
%


 

Target / L.A. Fitness / Michaels


Total NY Metro/New Jersey
780,195



262

 
2,830,000

 
95
%

 
 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  Philadelphia Metropolitan Area
 
 


 
 
 
 

 
 
 
 

19




Federal Realty Investment Trust
Real Estate Status Report
March 31, 2018
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
 
GLA (2)
 
% Leased (2)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
Andorra

Philadelphia, PA-NJ
25,907


22

 
264,000

 
88
%

24,000

 
Acme Markets
Kohl's / L.A. Fitness / Staples
Bala Cynwyd

Philadelphia, PA-NJ
41,715


23

 
294,000

 
100
%

45,000

 
Acme Markets
Lord & Taylor / Michaels / L.A. Fitness
Ellisburg

Philadelphia, PA-NJ
34,555


28

 
268,000

 
93
%

47,000

 
Whole Foods
Buy Buy Baby / Stein Mart
Flourtown

Philadelphia, PA-NJ
16,982



24

 
156,000

 
99
%

75,000

 
Giant Food
Movie Tavern
Langhorne Square

Philadelphia, PA-NJ
22,133


21

 
227,000

 
97
%

55,000

 
Redner's Warehouse Mkts.
Marshalls / Planet Fitness
Lawrence Park

Philadelphia, PA-NJ
35,151


29

 
374,000

 
97
%

53,000

 
Acme Markets
TJ Maxx / HomeGoods / Barnes & Noble
Northeast

Philadelphia, PA-NJ
30,696



19

 
288,000

 
85
%


 

Marshalls / Burlington / A.C. Moore
Town Center of New Britain

Philadelphia, PA-NJ
15,276



17

 
124,000

 
90
%

36,000

 
Giant Food
Rite Aid / Dollar Tree
Willow Grove

Philadelphia, PA-NJ
30,272


13

 
211,000

 
96
%


 

Marshalls / HomeGoods / Barnes & Noble
Wynnewood

Philadelphia, PA-NJ
42,891


14

 
251,000

 
99
%
9

98,000

 
Giant Food
Bed, Bath & Beyond / Old Navy / DSW


Total Philadelphia Metropolitan Area
295,578


210

 
2,457,000

 
95
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  New England





 

 


 
 
 
 
Assembly Row / Assembly Square Marketplace
(4)
Boston-Cambridge-Quincy, MA-NH
748,871


65

 
825,000

 
99
%
258

18,000

 
Trader Joe's
TJ Maxx / AMC / LEGOLAND Discovery Center / Multiple Restaurants & Outlets
Atlantic Plaza

Boston-Worcester-Lawrence-Lowell-Brockton, MA
25,763


13

 
123,000

 
96
%

64,000

 
Stop & Shop

Campus Plaza

Boston-Worcester-Lawrence-Lowell-Brockton, MA
30,551



15

 
116,000

 
98
%


46,000

 
Roche Bros.
Burlington
Chelsea Commons

Boston-Cambridge-Quincy, MA-NH
42,930

6,187

37

 
222,000

 
99
%
56



 

Home Depot / Planet Fitness
Dedham Plaza

Boston-Cambridge-Quincy, MA-NH
40,839



19

 
241,000

 
96
%


80,000

 
Star Market
Planet Fitness
Linden Square

Boston-Cambridge-Quincy, MA-NH
148,925


19

 
223,000

 
98
%
7

50,000

 
Roche Bros.
CVS
North Dartmouth

Boston-Cambridge-Quincy, MA-NH
9,369


28

 
48,000

 
100
%


48,000

 
Stop & Shop

Queen Anne Plaza

Boston-Cambridge-Quincy, MA-NH
18,295


17

 
149,000

 
100
%


50,000

 
Big Y Foods
TJ Maxx / HomeGoods
Saugus Plaza

Boston-Cambridge-Quincy, MA-NH
15,275


15

 
168,000

 
100
%


55,000

 
Super Stop & Shop
Kmart


Total New England
1,080,818


228

 
2,115,000

 
99
%


 
 
 
 
 
 
 
 
 

 
 
 
 

 
 
 
 
  South Florida





 

 


 
 
 
 
Cocowalk
(3) (7)
Miami-Ft Lauderdale
119,508


3

 
172,000

 
75
%


 

Gap / Cinepolis Theaters / Youfit Health Club
Del Mar Village

Miami-Ft Lauderdale
68,510


17

 
196,000

 
91
%

44,000

 
Winn Dixie
CVS
The Shops at Sunset Place
(3)
Miami-Ft Lauderdale
123,624

66,064

10

 
523,000

 
75
%


 

AMC / L.A. Fitness / Barnes & Noble / Restoration Hardware Outlet
Tower Shops

Miami-Ft Lauderdale
97,591


67

 
426,000

 
99
%

12,000

 
Trader Joe's
TJ Maxx / Ross Dress For Less / Best Buy / DSW


Total South Florida
409,233



97

 
1,317,000

 
85
%

 
 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  Baltimore







 


 



 
 
 
 
Governor Plaza

Baltimore, MD
27,293


24

 
243,000

 
98
%

16,500

 
Aldi
Dick's Sporting Goods / A.C. Moore
Perring Plaza

Baltimore, MD
31,109


29

 
396,000

 
100
%

58,000

 
Shoppers Food Warehouse
Home Depot / Micro Center / Burlington
THE AVENUE at White Marsh
(5)
Baltimore, MD
115,344

52,705

35

 
314,000

 
99
%


 

AMC / Ulta / Old Navy / Barnes & Noble
The Shoppes at Nottingham Square

Baltimore, MD
17,548


4

 
32,000

 
92
%


 



20




Federal Realty Investment Trust
Real Estate Status Report
March 31, 2018
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
 
GLA (2)
 
% Leased (2)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
Towson Residential (Flats @ 703)
 
Baltimore, MD
22,342


1

 
4,000

 
100
%
105

 
 
 
 
White Marsh Plaza

Baltimore, MD
25,596


7

 
80,000

 
96
%

54,000

 
Giant Food

White Marsh Other

Baltimore, MD
33,938


21

 
70,000

 
97
%


 




Total Baltimore
273,170


121

 
1,139,000

 
99
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
  Chicago





 

 


 
 
 
 
Crossroads

Chicago, IL
33,884



14

 
168,000

 
99
%


 

L.A. Fitness / Binny's / Guitar Center
Finley Square

Chicago, IL
38,391


21

 
278,000

 
87
%




 

Bed, Bath & Beyond / Buy Buy Baby / Petsmart / Portillo's
Garden Market

Chicago, IL
14,618


2

 
140,000

 
99
%

63,000

 
Mariano's Fresh Market
Walgreens
Riverpoint Center

Chicago, IL
120,125

 
17

 
211,000

 
96
%
 
86,000

 
Jewel Osco
Marshalls / Old Navy


Total Chicago
207,018


54

 
797,000

 
94
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
  Other





 

 


 
 
 
 
Barracks Road

Charlottesville, VA
68,162



40

 
498,000

 
98
%

99,000

 
Harris Teeter / Kroger
Anthropologie / Nike / Bed, Bath & Beyond / Old Navy
Bristol Plaza

Hartford, CT
31,773


22

 
266,000

 
96
%

74,000

 
Stop & Shop
TJ Maxx
Eastgate Crossing

Raleigh-Durham-Chapel Hill, NC
34,643


17

 
159,000

 
94
%

13,000

 
Trader Joe's
Ulta / Stein Mart / Petco
Gratiot Plaza

Detroit, MI
19,828


20

 
217,000

 
100
%

69,000

 
Kroger
Bed, Bath & Beyond / Best Buy / DSW
Lancaster
(6)
Lancaster, PA
14,139

4,907

11

 
127,000

 
98
%

75,000

 
Giant Food
Michaels
29th Place

Charlottesville, VA
41,092

4,286

15

 
169,000

 
97
%


 

HomeGoods / DSW / Stein Mart / Staples
Willow Lawn

Richmond-Petersburg, VA
98,825



37

 
463,000

 
99
%

66,000

 
Kroger
Old Navy / Ross Dress For Less / Gold's Gym / DSW


Total Other
308,462


162

 
1,899,000

 
98
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
 
$
7,721,957

$
551,143

1,966

 
24,190,000

 
95
%
2,509

 
 
 
 

Notes:
 
(1)
The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount, premium, and/or debt issuance costs on certain mortgages payable.
(2)
Represents the GLA and the percentage leased of the commercial portion of the property. Some of our properties include office space which is included in this square footage. Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.
(3)
The Trust has a controlling financial interest in this property.
(4)
Portion of property is currently under development. See further discussion in the Assembly Row and Pike & Rose schedules.
(5)
All or a portion of the property is owned in a "downREIT" partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units.
(6)
All or a portion of property subject to capital lease obligation.
(7)
This property includes interests in five buildings in addition to our initial acquisition.


21




Federal Realty Investment Trust
 
Retail Leasing Summary (1)
 
March 31, 2018
 
 
 
Total Lease Summary - Comparable (2)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
1st Quarter 2018
78

 
100
%
 
403,250

 
$
31.51

 
$
25.91

 
$
2,258,454

 
22
%
 
31
%
 
6.7

 
$
7,422,889

 
$
18.41


4th Quarter 2017
80

 
100
%
 
300,511

 
$
34.75

 
$
30.19

 
$
1,369,494

 
15
%
 
27
%
 
6.2

 
$
9,763,062

 
$
32.49


3rd Quarter 2017
82

 
100
%
 
399,619

 
$
38.24

 
$
33.43

 
$
1,922,439

 
14
%
 
27
%
 
7.4

 
$
10,411,714

 
$
26.05


2nd Quarter 2017
100

 
100
%
 
397,555

 
$
45.55

 
$
40.16

 
$
2,144,347

 
13
%
 
27
%
 
9.6

 
$
18,524,282

 
$
46.60


Total - 12 months
340

 
100
%
 
1,500,935

 
$
37.67

 
$
32.54

 
$
7,694,734

 
16
%
 
28
%
 
7.7

 
$
46,121,947

 
$
30.73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Lease Summary - Comparable (2)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
1st Quarter 2018
31

 
40
%
 
203,038

 
$
28.44

 
$
19.61

 
$
1,792,929

 
45
%
 
53
%
 
9.2

 
$
7,127,676

 
$
35.11


4th Quarter 2017
39

 
49
%
 
158,213

 
$
32.66

 
$
27.27

 
$
853,245

 
20
%
 
31
%
 
7.9

 
$
9,545,231

 
$
60.33


3rd Quarter 2017
36

 
44
%
 
165,289

 
$
40.97

 
$
33.19

 
$
1,285,427

 
23
%
 
36
%
 
8.4

 
$
8,563,714

 
$
51.81


2nd Quarter 2017
37

 
37
%
 
161,605

 
$
34.63

 
$
29.36

 
$
850,568

 
18
%
 
31
%
 
8.9

 
$
10,708,134

 
$
66.26


Total - 12 months
143

 
42
%
 
688,145

 
$
33.87

 
$
26.92

 
$
4,782,169

 
26
%
 
37
%
 
8.6

 
$
35,944,755

 
$
52.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Lease Summary - Comparable (2) (8)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
1st Quarter 2018
47

 
60
%
 
200,212

 
$
34.62

 
$
32.30

 
$
465,525

 
7
%
 
17
%
 
4.6

 
$
295,213

 
$
1.47


4th Quarter 2017
41

 
51
%
 
142,298

 
$
37.07

 
$
33.44

 
$
516,249

 
11
%
 
23
%
 
4.6

 
$
217,831

 
$
1.53


3rd Quarter 2017
46

 
56
%
 
234,330

 
$
36.31

 
$
33.59

 
$
637,012

 
8
%
 
20
%
 
6.7

 
$
1,848,000

 
$
7.89


2nd Quarter 2017
63

 
63
%
 
235,950

 
$
53.04

 
$
47.55

 
$
1,293,779

 
12
%
 
25
%
 
9.8

 
$
7,816,148

 
$
33.13

(7)
Total - 12 months
197

 
58
%
 
812,790

 
$
40.88

 
$
37.30

 
$
2,912,565

 
10
%
 
22
%
 
7.1

 
$
10,177,192

 
$
12.52


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (2) (9)
 
Quarter
 
 
 
 
 
 
 
 
Number of Leases Signed
 
GLA Signed
 
 Contractual Rent (3) Per Sq. Ft.
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
1st Quarter 2018
 
 
 
 
 
 
 
 
81

 
405,556
 
 
$
31.69

 
6.7

 
$
7,831,363

 
$
19.31

 
4th Quarter 2017
 
 
 
 
 
 
 
 
91

 
344,768
 
 
$
35.68

 
6.8

 
$
10,887,204

 
$
31.58

 
3rd Quarter 2017
 
 
 
 
 
 
 
 
90

 
424,492
 
 
$
39.33

 
7.6

 
$
12,087,142

 
$
28.47

 
2nd Quarter 2017
 
 
 
 
 
 
 
 
111

 
432,164
 
 
$
46.16

 
9.5

 
$
19,131,023

 
$
44.27

 
Total - 12 months
 
 
 
 
 
 
 
 
373

 
1,606,980
 
 
$
38.46

 
7.9

 
$
49,936,732

 
$
31.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
(1)
Leases on this report represent retail activity only; office and residential leases are not included.
(2)
Comparable leases represent those leases signed on spaces for which there was a former tenant.
(3)
Contractual rent represents contractual minimum rent under the new lease for the first 12 months of the term.
(4)
Prior rent represents minimum rent and percentage rent, if any, paid by the prior tenant in the final 12 months of the term.
(5)
Weighted average is determined on the basis of contractual rent for the first 12 months of the term.
(6)
See Glossary of Terms.
(7)
Approximately $7.5 million of the Tenant Improvements & Incentives is attributable to one 20 year anchor tenant renewal; total Tenant Improvements & Incentives without this lease would be $1.58 per square foot.
(8)
 Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(9)
The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq Ft and Weighted Average Lease Term columns include information for leases signed at Phase 2 of both of our Assembly Row and Pike & Rose projects. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq Ft columns do not include the tenant improvements and incentives on leases signed for those projects; these amounts for leases signed for Phase 2 of Assembly Row and Pike & Rose are included in the Projected Cost column for those projects shown on the Assembly Row and Pike & Rose schedule.


22




Federal Realty Investment Trust
Lease Expirations
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Assumes no exercise of lease options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anchor Tenants (1)
 
Small Shop Tenants
 
Total
Year
 Expiring SF
 % of Anchor SF
 Minimum Rent PSF (2)
 
 Expiring SF
 % of Small Shop SF
 Minimum Rent PSF (2)
 
 Expiring SF (4)
 % of Total SF
 Minimum Rent PSF (2)
2018
531,000

3
%
$
19.39

 
561,000

8
%
$
35.15

 
1,092,000

5
%
$
27.48

2019
2,118,000

14
%
$
18.61

 
843,000

12
%
$
38.28

 
2,961,000

13
%
$
24.21

2020
1,373,000

9
%
$
16.90

 
956,000

13
%
$
41.04

 
2,328,000

10
%
$
26.81

2021
1,711,000

11
%
$
22.00

 
901,000

13
%
$
44.00

 
2,611,000

12
%
$
29.59

2022
2,081,000

14
%
$
17.90

 
975,000

14
%
$
42.32

 
3,056,000

14
%
$
25.69

2023
1,562,000

10
%
$
19.86

 
774,000

11
%
$
44.31

 
2,336,000

10
%
$
27.96

2024
1,107,000

7
%
$
16.27

 
538,000

8
%
$
45.39

 
1,645,000

7
%
$
25.79

2025
883,000

6
%
$
23.18

 
459,000

6
%
$
40.65

 
1,342,000

6
%
$
29.16

2026
573,000

4
%
$
26.17

 
358,000

5
%
$
44.71

 
932,000

4
%
$
33.30

2027
757,000

5
%
$
33.40

 
442,000

6
%
$
47.62

 
1,200,000

5
%
$
38.65

Thereafter
2,695,000

17
%
$
19.11

 
320,000

4
%
$
50.86

 
3,015,000

14
%
$
22.48

Total (3)
15,391,000

100
%
$
20.08

 
7,127,000

100
%
$
42.49

 
22,518,000

100
%
$
27.18

 
 
 
 
 
 
 
 
 
 
 
 
Assumes all lease options are exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anchor Tenants (1)
 
Small Shop Tenants
 
Total
Year
 Expiring SF
 % of Anchor SF
 Minimum Rent PSF (2)
 
 Expiring SF
 % of Small Shop SF
 Minimum Rent PSF (2)
 
 Expiring SF (4)
 % of Total SF
 Minimum Rent PSF (2)
2018
322,000

2
%
$
19.47

 
410,000

6
%
$
34.65

 
731,000

3
%
$
27.97

2019
532,000

3
%
$
18.77

 
571,000

8
%
$
37.84

 
1,103,000

5
%
$
28.64

2020
216,000

1
%
$
17.72

 
610,000

8
%
$
40.48

 
827,000

4
%
$
34.52

2021
382,000

2
%
$
27.28

 
528,000

7
%
$
47.60

 
911,000

4
%
$
39.06

2022
347,000

2
%
$
22.97

 
570,000

8
%
$
41.10

 
917,000

4
%
$
34.24

2023
425,000

3
%
$
21.55

 
472,000

7
%
$
41.55

 
897,000

4
%
$
32.08

2024
559,000

4
%
$
20.82

 
344,000

5
%
$
44.87

 
903,000

4
%
$
29.99

2025
383,000

3
%
$
22.76

 
406,000

6
%
$
42.06

 
788,000

3
%
$
32.69

2026
465,000

3
%
$
26.51

 
376,000

5
%
$
42.22

 
841,000

4
%
$
33.54

2027
694,000

5
%
$
19.13

 
478,000

7
%
$
45.94

 
1,172,000

5
%
$
30.05

Thereafter
11,066,000

72
%
$
19.48

 
2,362,000

33
%
$
43.95

 
13,428,000

60
%
$
23.78

Total (3)
15,391,000

100
%
$
20.08

 
7,127,000

100
%
$
42.49

 
22,518,000

100
%
$
27.18

 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1)
Anchor is defined as a tenant leasing 10,000 square feet or more.
(2)
Minimum Rent reflects in-place contractual (defined as cash-basis excluding rent abatements) rent as of March 31, 2018.
(3)
Represents occupied square footage as of March, 31 2018.
(4)
Individual items may not add up to total due to rounding.



23




Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
At March 31, 2018
 
At March 31, 2017
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (3) (4) (sf)
24,190,000

22,931,000

94.8
%
 
23,134,000

21,884,000

94.6
%
 
 
 
 
 
 
 
 
Residential Properties (units)
2,509

2,333

93.0
%
 
1,899

1,828

96.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparable Property Statistics (1)
At March 31, 2018
 
At March 31, 2017
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (4) (sf)
21,289,000

20,282,000

95.3
%
 
21,308,000

20,264,000

95.1
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,406

1,355

96.4
%
 
1,406

1,353

96.2
%
 
 
 
 
 
 
 
 

Notes:
(1)
See Glossary of Terms.
(2)
Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)
At March 31, 2018 leased percentage was 97.6% for anchor tenants and 89.1% for small shop tenants.
(4)
Occupied percentage was 93.3% and 93.1% at March 31, 2018 and 2017, respectively, and comparable property occupied percentage was 93.8% and 93.5% at March 31, 2018 and 2017, respectively.



24




Federal Realty Investment Trust
Summary of Top 25 Tenants
March 31, 2018
 
 
 
 
 
 
 
 
 
Rank

 
Tenant Name
Credit Ratings (S&P/Moody's/Fitch) (1)
Annualized Base Rent

Percentage of Total Annualized Base Rent (3)

Tenant GLA

Percentage of Total GLA (3)

Number of Locations Leased

 
 
 
 
 
 
 
 
 
1

 
TJX Companies, The
A+ / A2 / NR
$
17,599,000

2.88
%
973,000

4.02
%
30

2

 
Ahold Delhaize
BBB / Baa1 / BBB
$
17,500,000

2.86
%
1,036,000

4.28
%
17

3

 
Gap, Inc., The
BB+ / Baa2 / BB+
$
13,382,000

2.19
%
366,000

1.51
%
27

4

 
Bed, Bath & Beyond, Inc.
BBB / Baa2 / NR
$
13,347,000

2.18
%
736,000

3.04
%
20

5

 
Splunk, Inc.
NR / NR / NR
$
10,585,000

1.73
%
235,000

0.97
%
1

6

 
L.A. Fitness International LLC
B+ / B2 / NR
$
9,833,000

1.61
%
426,000

1.76
%
10

7

 
CVS Corporation
BBB / Baa1 / NR
$
9,320,000

1.52
%
248,000

1.03
%
19

8

 
AMC Entertainment Inc.
B+ / B2 / B
$
7,267,000

1.19
%
317,000

1.31
%
6

9

 
Best Buy Co., Inc.
BBB / Baa1 / BBB-
$
6,633,000

1.08
%
231,000

0.95
%
5

10

 
Ascena Retail Group, Inc. (Dress Barn, Loft, Lou & Grey, Ann Taylor, Catherine's, Justice, Lane Bryant)
B / Ba3 / NR
$
6,218,000

1.02
%
198,000

0.82
%
33

11

 
Michaels Stores, Inc.
BB- / Ba2 / NR
$
6,176,000

1.01
%
330,000

1.36
%
14

12

 
Kroger Co., The
BBB / Baa1 / BBB
$
6,032,000

0.99
%
529,000

2.19
%
11

13

 
Home Depot, Inc.
A / A2 / A
$
5,929,000

0.97
%
440,000

1.82
%
5

14

 
Dick's Sporting Goods, Inc.
NR / NR / NR
$
5,694,000

0.93
%
240,000

0.99
%
5

15

 
Bank of America, N.A.
A- / A3 / A
$
5,631,000

0.92
%
105,000

0.43
%
23

16

 
DSW, Inc
NR / NR / NR
$
5,495,000

0.90
%
222,000

0.92
%
11

17

 
Hudson's Bay Company (Saks, Lord & Taylor)
B / B3 / NR
$
5,380,000

0.88
%
220,000

0.91
%
4

18

 
Ross Stores, Inc.
A- / A3 / NR
$
5,269,000

0.86
%
295,000

1.22
%
10

19

 
Nordstrom, Inc.
BBB+ / Baa1 / BBB+
$
5,038,000

0.82
%
195,000

0.81
%
5

20

 
Whole Foods Market, Inc.
A+ / Baa1 / NR
$
4,724,000

0.77
%
167,000

0.69
%
4

21

 
Barnes & Noble, Inc.
NR / NR / NR
$
4,459,000

0.73
%
207,000

0.86
%
8

22

 
Starbucks Corporation
A- / A3 / A-
$
4,233,000

0.69
%
69,000

0.29
%
42

23

 
Ulta Beauty, Inc.
NR / NR / NR
$
4,205,000

0.69
%
117,000

0.48
%
11

24

 
AB Acquisition LLC (Acme, Safeway)
B / B1 / NR
$
4,164,000

0.68
%
412,000

1.70
%
7

25

 
Wells Fargo Bank, N.A.
A- / A2 / A+
$
4,130,000

0.68
%
52,000

0.21
%
16

 
 
Totals - Top 25 Tenants
 
$
188,243,000

30.78
%
8,366,000

34.58
%
344

 
 
 
 
 
 
 
 
 
 
 
Total:
 
$
611,674,000

(2)
24,190,000

(4)
2,922

 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
 
Credit Ratings are as of March 31, 2018. Subsequent rating changes have not been reflected.
(2)
 
Reflects aggregate, annualized in-place contractual (defined as cash-basis excluding rent abatements) minimum rent for all occupied spaces as of March 31, 2018.
(3)
 
Individual items may not add up to total due to rounding.
(4)
 
Excludes redevelopment square footage not yet placed in service.



25




Federal Realty Investment Trust
 
 
 
Reconciliation of FFO Guidance
 
 
 
March 31, 2018
 
 
 
 
 
 
 
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2018. Estimates do not include the impact from potential acquisitions or dispositions which have not closed as of March 31, 2018.
 
 
 
 
 
 
 
 
 
Full Year 2018 Guidance Range
 
 
 
Low
 
High
Estimated net income available to common shareholders, per diluted share
$
3.05

 
$
3.21

Adjustments:
 
 
 
Estimated gain on sale of real estate, net
(0.04
)
 
(0.04
)
Estimated depreciation and amortization
3.07

 
3.07

Estimated FFO per diluted share
$
6.08

 
$
6.24


Note:
See Glossary of Terms. Individual items may not add up to total due to rounding.

26




Glossary of Terms

EBITDA for Real Estate ("EBITDAre"): EBITDAre is a non-GAAP measure that the National Association of Real Estate Investment Trusts ("NAREIT") defines as: net income computed in accordance with GAAP plus net interest expense, income tax expense, depreciation and amortization, gain or loss on sale of real estate, impairments of real estate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We calculate EBITDAre consistent with the NAREIT definition. As EBITDA is a widely known and understood measure of performance, management believes EBITDAre represents an additional non-GAAP performance measure, independent of a company's capital structure, that will provide investors with a uniform basis to measure the enterprise value of a company. EBITDAre also approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDAre for the three months ended March 31, 2018 and 2017 is as follows:
 
Three Months Ended
 
March 31,
 
2018
 
2017
 
(in thousands)
Net income
$
62,931

 
$
58,070

Interest expense
26,184

 
23,758

Other interest income
(179
)
 
(106
)
Provision for income tax (1)
834

 

Depreciation and amortization
58,110

 
51,379

Gain on sale of real estate (1)
(4,306
)
 
(178
)
Adjustments of EBITDAre of unconsolidated affiliates
417

 
111

EBITDAre
$
143,991

 
$
133,034

(1) Gain on sale of real estate and provision for income tax for the three months ended March 31, 2018 primarily relates to condominium sales gains.

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization and excluding extraordinary items and gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Property Operating Income: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes.

Overall Portfolio: Includes all operating properties owned in reporting period.

Comparable Properties: Represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. Comparable property growth statistics are calculated on a GAAP basis.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease and, except for redevelopments, may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.

27