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) December 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 February 13, 2019, 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 December 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 December 31, 2018 (including press release dated February 13, 2019)

    

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:
February 13, 2019
 
 /s/ Daniel Guglielmone
 
 
 
 
 
 
 
Daniel Guglielmone
 
 
 
Executive Vice President-
 
 
 
Chief Financial Officer and Treasurer





EXHIBIT INDEX


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




Exhibit


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
December 31, 2018
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Fourth Quarter and Full Year 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

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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, 2019, 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 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 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, 2019.



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NEWS RELEASE
www.federalrealty.com
 
 
FOR IMMEDIATE RELEASE
 
 
 
Investor Inquiries:
Media Inquiries:
Leah Andress Brady
Brenda Pomar
Investor Relations Manager
Corporate Communications Manager
301.998.8265
301.998.8316
lbrady@federalrealty.com
bpomar@federalrealty.com

Federal Realty Investment Trust Announces Operating Results for the Year and Quarter Ended
December 31, 2018
ROCKVILLE, Md. (February 13, 2019) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its year and quarter ended December 31, 2018. For the year ended December 31, 2018 and 2017, net income available for common stockholders was $3.18 per diluted share and $3.97 per diluted share, respectively. For the three months ended December 31, 2018 and 2017, net income available for common stockholders was $0.71 per diluted share and $0.67 per diluted share, respectively.

Key Highlights of the full year and quarter include:

Generated FFO per diluted share of $6.23 for the year compared to $5.74 in 2017 ($5.91 excluding prepayment premium). For the fourth quarter, generated FFO per diluted share of $1.57 compared to $1.30 for the fourth quarter 2017 ($1.47 excluding prepayment premium).
Generated comparable property operating income (POI) growth of 3.1% for the year ended 2018. For the fourth quarter, comparable property POI growth was 2.0%.
Signed leases for 573,923 square feet of comparable space (622,234 square feet total) in the fourth quarter at an average rent of $32.16 per square foot and achieved cash basis rollover growth on those comparable spaces of 15%. Over the last four quarters, cash basis rollover growth on comparable spaces was 12%.
Announced the launch of Phase 3 at Assembly Row which includes 277,000 square feet of office space - anchored by PUMA North America, 500 residential units and 56,000 square feet of ground floor retail.
Introduced 2019 FFO per diluted share guidance range of $6.30 to $6.46, which reflects the impact of the newly implemented lease accounting standard ASC 842.

“2018 was a year of records for us; from funds from operations per share of $6.23, to total leasing volume at nearly 2 million square feet, to 51 consecutive years of increased common dividends”, said Donald C. Wood, President and Chief Executive Officer of Federal Realty. “The growing diversification of our revenue base, along with the development and redevelopment opportunities being executed by our talented team, gives us confidence that our multi-faceted business plan is the right one to service today’s evolving and demanding consumer.”

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Financial Results
For the full year 2018, Federal Realty reported net income available for common shareholders of $233.9 million and earnings per diluted share of $3.18. This compares to net income available for common shareholders of $287.5 million and earnings per diluted share of $3.97 for the full year 2017. Net income available for common shareholders was $52.5 million and earnings per diluted share was $0.71 for the fourth quarter 2018 versus $48.6 million and $0.67, respectively, for the fourth quarter 2017.
For the full year 2018, Federal Realty generated funds from operations available for common shareholders (FFO) of $461.8 million, or $6.23 per diluted share. This compares to FFO of $420.0 million, or $5.74 per diluted share, for the full year 2017. Excluding the $12.3 million early extinguishment of debt charge in the fourth quarter 2017, FFO per diluted share for the full year 2017 would have been $5.91. For the fourth quarter 2018, FFO was $117.2 million, or $1.57 per diluted share, compared to $95.5 million, or $1.30 per diluted share for the fourth quarter 2017 ($1.47 if the early extinguishment of debt charge was excluded).
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.

Portfolio Results
The overall portfolio was 94.6% leased as of December 31, 2018, and the comparable portfolio was 95.1% leased. Comparable property POI increased 3.1% for the year 2018 and 2.0% in the fourth quarter. 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.
For the year 2018, Federal Realty signed 402 leases for 2.0 million square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 1.9 million square feet at an average rent of $34.11 per square foot compared to the average contractual rent of $30.37 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 12%.
During fourth quarter 2018, Federal Realty signed 114 leases for 622,234 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 573,923 square feet at an average rent of $32.16 per square foot compared to the average contractual rent of $27.96 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 15%.

Regular Quarterly Dividends
Federal Realty's Board of Trustees declared a regular quarterly cash dividend of $1.02 per common share, resulting in an indicated annual rate of $4.08 per common share. The regular common dividend will be payable on April 15, 2019 to shareholders of record as of March 14, 2019.

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Federal Realty’s Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on April 15, 2019 to shareholders of record as of April 1, 2019.

Summary of Other Quarterly Activities and Recent Developments
February 7, 2019 - Federal Realty announced Wendy Seher and Jan Sweetnam have been promoted to executive vice president and will serve as members of the Trust’s Executive Committee, in addition to their roles as members of the Investment Committee. Wendy Seher was promoted to Executive Vice President - Eastern Region President. Jan Sweetnam was promoted to Executive Vice President - Western Region Chief Operating Officer.
January 18, 2019 - Federal Realty announced the launch of Phase 3 at Assembly Row which includes 277,000 square feet of office space - anchored by PUMA North America, 500 residential units and 56,000 square feet of ground floor retail. The estimated total investment in Phase 3 is expected to be approximately $475 million. Upon completion of Phase 3, total investment at Assembly Row will be approximately $1.2 billion.

Guidance
Federal Realty introduced 2019 guidance for FFO per diluted share of $6.30 to $6.46 and 2019 earnings per diluted share guidance of $3.14 to $3.30, which reflects the impact of the newly implemented lease accounting standard ASC 842.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its fourth quarter and year end 2018 earnings conference call, which is scheduled for Thursday, February 14, 2019 at 10:00AM ET. To participate, please call 877.445.3230 five to ten minutes prior to the call start time and use the passcode 2162635 (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 February 21, 2019 by dialing 855.859.2056; Passcode: 2162635.

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

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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 24 million square feet, and over 2,600 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 51 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, 2019, 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, 2019.

6



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

Year Ended
 
December 31,

December 31,
 
2018

2017

2018

2017
 
(in thousands, except per share data)
 
 
REVENUE
 
 
 
 
 
 
 
Rental income
$
230,864

 
$
220,720

 
$
895,698

 
$
841,461

Other property income
3,647

 
2,396

 
16,589

 
12,825

Mortgage interest income
865

 
841

 
3,149

 
3,062

Total revenue
235,376

 
223,957

 
915,436

 
857,348

EXPENSES
 
 
 
 
 
 
 
Rental expenses
46,507

 
45,403

 
173,094

 
164,890

Real estate taxes
28,935

 
28,735

 
114,776

 
107,839

General and administrative
9,620

 
10,268

 
33,600

 
36,281

Depreciation and amortization
66,976

 
56,394

 
244,245

 
216,050

Total operating expenses
152,038

 
140,800

 
565,715

 
525,060

OPERATING INCOME
83,338

 
83,157

 
349,721

 
332,288

Other interest income
285

 
222

 
942

 
475

Interest expense
(28,038
)
 
(26,173
)
 
(110,154
)
 
(100,125
)
Early extinguishment of debt

 
(12,273
)
 

 
(12,273
)
Loss from real estate partnerships
(705
)
 
(121
)
 
(3,398
)
 
(417
)
INCOME FROM CONTINUING OPERATIONS
54,880

 
44,812

 
237,111

 
219,948

Gain on sale of real estate, net
1,502

 
7,973

 
11,915

 
77,922

NET INCOME
56,382

 
52,785

 
249,026

 
297,870

     Net income attributable to noncontrolling interests
(1,875
)
 
(2,129
)
 
(7,119
)
 
(7,956
)
NET INCOME ATTRIBUTABLE TO THE TRUST
54,507

 
50,656

 
241,907

 
289,914

Dividends on preferred shares
(2,011
)
 
(2,011
)
 
(8,042
)
 
(2,458
)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$
52,496

 
$
48,645

 
$
233,865

 
$
287,456

EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.71

 
$
0.67

 
$
3.18

 
$
3.97

Weighted average number of common shares, basic
73,790

 
72,515

 
73,274

 
72,117

EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.71

 
$
0.67

 
$
3.18

 
$
3.97

Weighted average number of common shares, diluted
73,796

 
72,598

 
73,302

 
72,233



7



Federal Realty Investment Trust
Consolidated Balance Sheets
December 31, 2018
 
December 31,
 
2018
 
2017
 
(in thousands, except share and
 
per share data)
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $1,701,804 and $1,639,486 of consolidated variable interest entities, respectively)
$
7,307,622

 
$
6,950,188

Construction-in-progress (including $51,313 and $43,393 of consolidated variable interest entities, respectively)
495,274

 
684,873

Assets held for sale
16,576

 

 
7,819,472

 
7,635,061

Less accumulated depreciation and amortization (including $292,374 and $247,410 of consolidated variable interest entities, respectively)
(2,059,143
)
 
(1,876,544
)
Net real estate
5,760,329

 
5,758,517

Cash and cash equivalents
64,087

 
15,188

Accounts and notes receivable
142,237

 
209,877

Mortgage notes receivable, net
30,429

 
30,429

Investment in real estate partnerships
26,859

 
23,941

Prepaid expenses and other assets
265,703

 
237,803

TOTAL ASSETS
$
6,289,644

 
$
6,275,755

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Mortgages payable (including $444,388 and $460,372 of consolidated variable interest entities, respectively)
$
474,379

 
$
491,505

Capital lease obligations
71,519

 
71,556

Notes payable
279,027

 
320,265

Senior notes and debentures
2,404,279

 
2,401,440

Accounts payable and other liabilities
177,922

 
196,332

Dividends payable
78,207

 
75,931

Security deposits payable
17,875

 
16,667

Other liabilities and deferred credits
182,898

 
169,388

Total liabilities
3,686,106

 
3,743,084

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
136,208

 
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, 74,249,633 and 73,090,877 shares issued and outstanding, respectively
745

 
733

Additional paid-in capital
3,004,442

 
2,855,321

Accumulated dividends in excess of net income
(818,877
)
 
(749,367
)
Accumulated other comprehensive (loss) income
(416
)
 
22

Total shareholders’ equity of the Trust
2,345,891

 
2,266,706

Noncontrolling interests
121,439

 
124,808

Total shareholders’ equity
2,467,330

 
2,391,514

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
6,289,644

 
$
6,275,755


8



Federal Realty Investment Trust
Funds From Operations / Other Supplemental Information
December 31, 2018
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
 
 
 
 
Net income
 
$
56,382

 
$
52,785

 
$
249,026

 
$
297,870

Net income attributable to noncontrolling interests
 
(1,875
)
 
(2,129
)
 
(7,119
)
 
(7,956
)
Gain on sale of real estate, net (2)
 
(1,502
)
 
(7,973
)
 
(11,915
)
 
(77,632
)
Depreciation and amortization of real estate assets
 
55,604

 
49,607

 
213,098

 
188,719

Amortization of initial direct costs of leases
 
10,069

 
4,594

 
24,603

 
19,124

Funds from operations
 
118,678

 
96,884

 
467,693

 
420,125

Dividends on preferred shares
 
(1,875
)
 
(1,876
)
 
(7,500
)
 
(1,917
)
Income attributable to operating partnership units
 
754

 
788

 
3,053

 
3,143

Income attributable to unvested shares
 
(330
)
 
(310
)
 
(1,469
)
 
(1,374
)
FFO (3)
 
$
117,227

 
$
95,486

 
$
461,777

 
$
419,977

Weighted average number of common shares, diluted
 
74,630

 
73,481

 
74,153

 
73,122

FFO per diluted share (3)
 
$
1.57

 
$
1.30

 
$
6.23

 
$
5.74

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
73,234

 
$
92,963

 
$
282,199

 
$
419,471

Tenant improvements and incentives
 
11,154

 
13,413

 
45,863

 
44,632

Total non-maintenance capital expenditures
 
84,388

 
106,376

 
328,062

 
464,103

Maintenance capital expenditures
 
8,670

 
14,776

 
19,421

 
32,695

Total capital expenditures
 
$
93,058

 
$
121,152

 
$
347,483

 
$
496,798

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
75,724

 
$
73,052

 
$
297,347

 
$
287,006

Dividend payout ratio as a percentage of FFO (3)
 
65
%
 
77
%
 
64
%
 
68
%
 
 
 
 
 
 
 
 
 
Noncontrolling Interests Supplemental Information (4)
 
 
 
 
 
 
 
 
Property operating income (1)
 
$
3,395

 
$
3,564

 
$
13,046

 
$
13,265

Depreciation and amortization
 
(1,678
)
 
(1,647
)
 
(6,580
)
 
(5,879
)
Interest expense
 
(596
)
 
(576
)
 
(2,400
)
 
(2,573
)
Net income
 
$
1,121

 
$
1,341

 
$
4,066

 
$
4,813

Notes:
1)
See Glossary of Terms.
2)
The gain on sale of real estate for the year ended December 31, 2018 includes a $7.2 million net gain related to condominium units sold at Assembly Row and Pike & Rose. For the three months and year ended December 31, 2017, the gain on sale of real estate includes $1.5 million and $5.4 million, respectively, of net gains related to Assembly Row condominium units under the percentage-of-completion method. 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 December 31, 2018 Form 10-K for additional information regarding the adoption.
3)
If the $12.3 million early extinguishment of debt charge incurred in the fourth quarter of 2017 was excluded, our FFO, FFO per diluted share, and dividend payout ratio as a percentage of FFO would have been:
 
 
Three Months Ended
 
Year Ended
 
 
December 31, 2017
 
December 31, 2017
 
 
(in thousands, except per share data)
FFO
 
$
107,719

 
$
432,210

FFO per diluted share
 
$
1.47

 
$
5.91

Dividend payout ratio as a percentage of FFO
 
68
%
 
66
%
4)
Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to operating partnership units."

9



Federal Realty Investment Trust
Market Data
December 31, 2018
 
 
 
December 31,
 
 
 
2018
 
2017
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
74,988

 
73,879

 
Market price per common share
 
$
118.04

 
$
132.81

 
Common equity market capitalization including operating partnership units
 
$
8,851,584

 
$
9,811,870

 
 
 
 
 
 
 
Series C preferred shares outstanding
 
6

 
6

 
Liquidation price per Series C preferred share
 
$
25,000.00

 
$
25,000.00

 
Series C preferred equity market capitalization
 
$
150,000

 
$
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
 
$
9,011,584

 
$
9,971,870

 
 
 
 
 
 
 
Total debt (3)
 
3,229,204

 
3,284,766

 
 
 
 
 
 
 
Total market capitalization
 
$
12,240,788

 
$
13,256,636

 
 
 
 
 
 
 
Total debt to market capitalization
 
26
%
 
25
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations
 
91
%
 
99
%
 
Variable rate debt
 
9
%
 
1
%
 
 
 
100
%

100
%
Notes:
1)
Amounts include 738,423 and 787,962 operating partnership units outstanding at December 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.



10



Federal Realty Investment Trust
 
 
 
 
 
 
 
Components of Rental Income
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Minimum rents (1)
 
 
 
 
 
 
 
Retail and commercial
$
156,641

 
$
150,788

 
$
616,137

 
$
585,178

Residential
19,135

 
14,635

 
71,001

 
55,416

Cost reimbursements
46,554

 
46,531

 
178,333

 
171,528

Percentage rents
3,368

 
3,624

 
11,241

 
11,148

Other
5,166

 
5,142

 
18,986

 
18,191

Total rental income
$
230,864

 
$
220,720

 
$
895,698

 
$
841,461


Notes:
1)
Minimum rents include $0.3 million and $1.6 million for the three months ended December 31, 2018 and 2017, respectively, and $5.0 million and $12.9 million for the years ended December 31, 2018 and 2017, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $3.0 million and $1.4 million for the three months ended December 31, 2018 and 2017, respectively, and $6.8 million and $4.7 million for the years ended December 31, 2018 and 2017, respectively, to recognize income from the amortization of in-place leases.

11



Federal Realty Investment Trust
 
 
 
 
Comparable Property Information
 
 
 
 
December 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 Q4 include: Assembly Row - Phase 2, CocoWalk, Olivo at Mission Hills, Pike & Rose, The Shops at Sunset Place, Towson Residential, 700 Santana Row, a portion of Graham Park Plaza, and all properties acquired or disposed of from Q4 2017 to Q4 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
 
 
December 31,
 
 
2018
 
2017
 
 
(in thousands)
 
Operating Income
$
83,338

 
$
83,157

 
Add:
 
 
 
 
Depreciation and amortization
66,976

 
56,394

 
General and administrative
9,620

 
10,268

 
Property operating income (POI)
159,934

 
149,819

 
Less: Non-comparable POI - acquisitions/dispositions
(156
)
 
(605
)
 
Less: Non-comparable POI - redevelopment, development & other
(14,995
)
 
(7,317
)
 
Comparable Property POI
$
144,783

 
$
141,897

 
 
 
 
 
 
Additional information regarding the components of Comparable Property POI
 
Three Months Ended
 
 
December 31,
 
 
2018
 
2017
% Change
 
(in thousands)
 
Rental income
$
207,050

 
$
204,503

 
Other property income
3,332

 
2,589

 
 
210,382

 
207,092

 
 
 
 
 
 
Rental expenses
(39,737
)
 
(38,647
)
 
Real estate taxes
(25,862
)
 
(26,548
)
 
 
(65,599
)
 
(65,195
)
 
 
 
 
 
 
Comparable Property POI
$
144,783

 
$
141,897

2.0
%
 
 
 
 
 
Comparable Property POI as a percentage of total POI
91
%
 
95
%
 
 
 
 
 
 
Comparable Property - Occupancy Statistics (1)
 
At December 31,
 
 
2018
 
2017
 
GLA - comparable commercial properties
22,690,000

 
22,677,000

 
Leased % - comparable commercial properties
95.1
%
 
95.9
%
 
Occupancy % - comparable commercial properties
94.1
%
 
94.4
%
 
 
 
 
 
 
Comparable Property - Summary of Capital Expenditures (2)
 
Three Months Ended
 
 
December 31,
 
 
2018
 
2017
 
 
(in thousands)
 
Redevelopment and tenant improvements and incentives
$
28,579

 
$
31,037

 
Maintenance capital expenditures
8,143

 
14,166

 
 
$
36,722

 
$
45,203

 
Notes:
(1)
See page 26 for entire portfolio occupancy statistics.
(2)
See page 9 for "Summary of Capital Expenditures" for our entire portfolio.

12



Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
December 31, 2018
 
 
As of December 31, 2018
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (5)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Rollingwood Apartments (2)
5/1/2019
 
5.54%
 
$
20,331

 
 
 
 
 
 
The Shops at Sunset Place
9/1/2020
 
5.62%
 
64,453

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
4,117

 
 
 
 
 
 
Sylmar Towne Center
6/6/2021
 
5.39%
 
17,006

 
 
 
 
 
 
Plaza Del Sol
12/1/2021
 
5.23%
 
8,409

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

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
69,310

 
 
 
 
 
 
Azalea
11/1/2025
 
3.73%
 
40,000

 
 
 
 
 
 
Bell Gardens
8/1/2026
 
4.06%
 
12,936

 
 
 
 
 
 
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%
 
5,941

 
 
 
 
 
 
Subtotal
 
 
 
 
475,308

 
 
 
 
 
 
Net unamortized premium and debt issuance costs
 
 
 
(929
)
 
 
 
 
 
 
Total mortgages payable
 
 
 
 
474,379

 
 
 
4.10
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Term loan
11/21/2019
 
LIBOR + 0.90%
 
275,000

 
 
 
 
 
 
Revolving credit facility (3)
4/20/2020
 
LIBOR + 0.825%
 

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
4,392

 
 
 
 
 
 
Subtotal
 
 
 
 
279,392

 
 
 
 
 
 
Net unamortized debt issuance costs
 
 
 
(365
)
 
 
 
 
 
 
Total notes payable
 
 
 
 
279,027

 
 
 
3.50
%
(6)
 
 
 
 
 
 
 
 
 
 
 
 
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
 
3.625%
 
250,000

 
 
 
 
 
 
Subtotal
 
 
 
 
2,419,200

 
 
 
 
 
 
Net unamortized discount and debt issuance costs
 
 
 
(14,921
)
 
 
 
 
 
 
Total senior notes and debentures, net
 
 
 
2,404,279

 
 
 
3.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total mortgages payable, notes payable, and senior notes and debentures, net
 
3,157,685

 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,519

 
 
 
8.04
%
 
Total debt and capital lease obligations
 
 
 
 
$
3,229,204

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and capital lease obligations
 
 
 
$
2,954,499

 
91
%
 
3.93
%
 
Total variable rate debt
 
 
 
274,705

 
9
%
 
3.37
%
(6)
Total debt and capital lease obligations
 
 
 
$
3,229,204

 
100
%
 
3.88
%
(6)

13



 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2018
2017
 
2018
2017
Operational Statistics
 
 
 
 
 
Excluding early extinguishment of debt:
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (7)(8)
4.28x
3.92x
 
4.22x
4.23x
Including early extinguishment of debt:
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (7)
4.28x
2.92x
 
4.22x
3.86x

Notes:
1)
Mortgage payable does not include our share of debt on our unconsolidated real estate partnerships. At December 31, 2018, our share was approximately $54.1 million. At December 31, 2018, our noncontrolling interests' share of mortgages payable was $58.7 million.
2)
On January 31, 2019, we repaid this mortgage loan at par.
3)
The maximum amount drawn under our revolving credit facility during the three months and year ended December 31, 2018 was $81.0 million and $177.0 million, respectively. The weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, for the three months and year ended December 31, 2018 was 3.1% and 2.7%, respectively.
4)
The weighted average remaining term on our mortgage payable, notes payable, and senior notes and debentures, is 10 years.
5)
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 6.
6)
The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and debt fee amortization on our revolving credit facility which had no outstanding balance on December 31, 2018. Due to the expiration of our two interest rate swap agreements on November 1, 2018, our $275.0 million term loan is no longer fixed at 2.62%, and is included as variable rate debt at December 31, 2018.
7)
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.
8)
Fixed charges for the three months and year ended December 31, 2017 exclude the $12.3 million early extinguishment of debt charge related to the make-whole premium paid as part of the early redemption of the 5.90% senior notes in the fourth quarter of 2017.

14



Federal Realty Investment Trust
Summary of Debt Maturities
December 31, 2018
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (4)
 
 
(in thousands)
 
 
 
 
 
 
 
2019
$
6,232

 
$
295,160

(1)
$
301,392

 
9.3
%
 
9.3
%
 
3.5
%
 
2020
5,605

 
60,593

(2)
66,198

 
2.0
%
 
11.3
%
 
3.9
%
(5)
2021
3,728

 
277,546

 
281,274

 
8.7
%
 
20.0
%
 
2.9
%
 
2022
1,509

 
366,323

 
367,832

 
11.3
%
 
31.3
%
 
3.5
%
 
2023
1,550

 
330,010

 
331,560

 
10.2
%
 
41.5
%
 
3.9
%
 
2024
1,399

 
300,000

 
301,399

 
9.3
%
 
50.8
%
 
4.2
%
 
2025
965

 
40,000

 
40,965

 
1.3
%
 
52.1
%
 
3.9
%
 
2026
688

 
39,886

 
40,574

 
1.2
%
 
53.3
%
 
6.6
%
 
2027
573

 
683,600

 
684,173

 
21.1
%
 
74.4
%
 
3.8
%
 
2028
616

 

 
616

 
%
 
74.4
%
 
11.8
%
 
Thereafter
17,936

 
811,500

 
829,436

 
25.6
%
 
100.0
%
 
4.3
%
 
Total
$
40,801

 
$
3,204,618

 
$
3,245,419

(3)
100.0
%
 
 
 
 
 
Notes:
1)
Includes a $20.3 million mortgage loan, which was paid off at par on January 31, 2019, prior to its original maturity date.
2)
Our $800.0 million revolving credit facility matures on April 20, 2020, subject to two six-month extensions at our option. As of December 31, 2018, there was no outstanding balance under this credit facility.
3)
The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net premium/discount and debt issuance costs on certain mortgage loans, note payable, and senior notes as of December 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 debt fee amortization on our revolving credit facility.



15



Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
December 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)
 
 
 
Projected
Projected
Cost to
Anticipated
Property
Location
Opportunity
ROI (2)
Cost (1)
Date
Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
Projects Stabilized in 2018
 
 
 
 
Towson Residential
Towson, MD
New 105 unit 5-story apartment building with above grade parking
7
%
$20
$20
Stabilized
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
%
$11
$11
Stabilized
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
8
%
$11
$10
Stabilized
Mercer Mall
Lawrenceville, NJ
Redevelopment of recently acquired office building pre-leased to a single tenant user
8
%
$8
$7
Stabilized
Dedham Plaza
Dedham, MA
New 4,000 square foot pad site for restaurant tenant
9
%
$2
$2
Stabilized
Total Projects Stabilized in 2018 (3) (4)
7
%
$52
$50
 
 
 
 
 
 
Active Redevelopment Projects
 
 
 
 
CocoWalk
Coconut Grove, FL
Shopping center redevelopment to include demolition of three story east wing of the property and construction of a 106,000 square foot 5-story office/retail building including 24,000 square feet of retail
6%-7%

 $75 - $80
$23
2020
Jordan Downs Plaza (5)
Los Angeles, CA
Development of a new 113,000 square foot single-story grocery anchored neighborhood shopping center
7
%
 $38 - $42
$15
2020
Brick Plaza
Brick, NJ
Redevelopment and repositioning of anchor tenant and small shop spaces to transform property into a market dominant center
7
%
$30
$20
2020
Bala Cynwyd
Bala Cynwyd, PA
New 87 unit residential apartment building to be constructed on underutilized land behind our existing shopping center
6
%
$23
$3
2021
Melville Mall
Huntington, NY
Development of a new 15,000 square foot pad site consisting of two multi-tenant retail buildings
8
%
$11
$2
2020
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
$8
2019
Pike 7 Plaza
Vienna, VA
Addition of 8,300 square foot multi-tenant retail pad building
7
%
$10
$9
2019
Wildwood
Bethesda, MD
4,900 square foot south end building expansion and site improvements
7
%
$6
$4
2019
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
%
 $205 - $214
$85
 
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 90% 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.
(5)
Projected cost is net of the proceeds from our New Market Tax Credit structure. See Note 3 of our December 31, 2018 Form 10-K for additional information.

16



Federal Realty Investment Trust
 
 
 
 
 
 
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
 
 
December 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
 
2019
2020
 
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)
$290 - 305
$290
 
90%
Stabilized
 
120,000 square feet of retail has opened, remaining tenants projected to open in 2019
 
 
 
 
 
 
 
 
 
 
 
Residential building opened in September 2017 with deliveries through 3Q 2018
 
 
 
 
 
 
 
 
 
 
 
 
741,500 SF Partners Healthcare office space (built by Partners) opened in 2016
 
 
 
 
 
 
 
 
 
 
 
 
Hotel opened in 3Q 2018
 
 
 - 122 for-sale condominium units
 
 (6)
$81
$81
 
 
 
 
Closings commenced 1Q 2018
Phase III
 
 - 277,000 SF of office
 
6%
 
$465 - 485
$67
 
 
150,000 square feet of office space pre-leased
 
 
 - 500 residential units
 
 
 
 
 
 
 
 
 
Openings projected to begin in 2022
 
 
 - 56,000 SF of retail
 
 
 
 
 
 
 
 
 
 
Future Phases
 
 - 1.5M SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 329 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose
North Bethesda, MD
 
 
 
 
 
 
 
 
 
 
 
Phase II
 
- 216,000 SF of retail
- 272 residential units
- 177 boutique hotel rooms
 
6%
 (5)
$200 - 207
$197
 
80%
Stabilized
 
190,000 square feet of retail has opened, remaining tenants projected to open in 2019
 
 
 
 
 
 
 
 
 
 
 
Residential building opened in August 2017 with deliveries through 2Q 2018
 
 
 
 
 
 
 
 
 
 
 
 
Hotel opened in 1Q 2018
 
 
 - 99 for-sale condominium units
 
 (6)
$62
$62
 
 
 
 
Closings commenced 1Q 2018
Phase III
 
 - 212,000 SF of office
 
6-7%
 
$128 - 135
$23
 
 
Openings projected to begin in 2021
 
 
 - 4,000 SF of retail
 
 
 
 
 
 
 
 
 
 
Future Phases
 
 - 740,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 741 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Santana Row
San Jose, CA
 
 
 
 
 
 
 
 
 
 
 
700 Santana Row
 - 301,000 SF of office
 
7-8%
 
$205 - 215
$150
 
15%
Stabilized
 
Commenced construction 4Q 2016
 
 
 - 18,000 SF of retail & 1,300 parking spaces
 
 
 
 
 
 
 
 
Opening projected 2019
 
 
 
 
 
 
 
 
 
 
 
 
Office 100% pre-leased
Future Phases
 
 - 321,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 395 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 - 1M SF of commercial across from Santana Row
 
 
 
 
 
 
 
 
 
 
Notes:
(1)
Expected 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.

17



Federal Realty Investment Trust
Future Redevelopment Opportunities
December 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
 
Mercer Mall
Lawrenceville, NJ
 
 
Federal Plaza
Rockville, MD
 
Pan Am
Fairfax, VA
 
 
Flourtown
Flourtown, PA
 
Sylmar Towne Center
Sylmar, CA
 
 
Fresh Meadows
Queens, NY
 


 
 


 


 
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
 
Hastings Ranch Plaza
Pasadena, CA
 
 
Bethesda Row
Bethesda, MD
 
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
 
 
Fresh Meadows
Queens, NY
 


 
 


 


 
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
San Jose, CA
 
 
Pike & Rose (2)
North Bethesda, MD
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
(1)
Assembly Row
Remaining entitlements after Phase II include approximately 1.5 million square feet of commercial-use buildings and 329 residential units.
(2)
Pike & Rose
Remaining entitlements after Phase II include 740,000 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 1 million square feet of commercial space on land we control across from Santana Row.

18



Federal Realty Investment Trust
Real Estate Status Report
December 31, 2018
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
GLA (2)
% Leased (2)
% Occupied (2)
Average Rent PSF (3)
Residential Units
 Grocery Anchor GLA
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
  Washington Metropolitan Area












Barcroft Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
$
46,692



10

115,000

96
%
93
%

$24.39


46,000

Harris Teeter

Bethesda Row

Washington-Arlington-Alexandria, DC-VA-MD-WV
228,408


17

536,000

95
%
93
%
52.99

180

40,000

Giant Food
Apple / Equinox / Anthropologie / Multiple Restaurants
Congressional Plaza
(4)
Washington-Arlington-Alexandria, DC-VA-MD-WV
103,087


21

325,000

95
%
95
%
40.63

194

25,000

The Fresh Market
Buy Buy Baby / Saks Fifth Avenue Off 5th / Container Store / Ulta
Courthouse Center

Washington-Arlington-Alexandria, DC-VA-MD-WV
6,485


2

38,000

70
%
70
%
23.86





Falls Plaza/Falls Plaza-East

Washington-Arlington-Alexandria, DC-VA-MD-WV
13,948


10

144,000

92
%
90
%
34.70


51,000

Giant Food
CVS / Staples
Federal Plaza