Federal Realty Investment Trust Agrees to Sell Approximately 2.2 Million Common Shares

ROCKVILLE, Md.--(BUSINESS WIRE)--April 2, 2004--Federal Realty Investment Trust (NYSE:FRT) announced today that it has agreed to sell 2,186,749 common shares of beneficial interest in a public offering. The sale will generate net proceeds to Federal Realty of approximately $99.1 million, or approximately $45.33 per share, representing a 3.00% discount from yesterday's New York Stock Exchange (NYSE) closing price of $46.73. The Trust will use the net proceeds from the sale to repay the amounts outstanding under its revolving credit facility, which were used to acquire Westgate Mall on March 31, 2004 for approximately $97 million.

Wachovia Securities served as the lead manager for the offering, and Legg Mason Wood Walker Incorporated served as co-manager. Federal Realty has granted the underwriters a thirty-day option to purchase up to 328,011 additional common shares to cover any over-allotments.

When available, a copy of the prospectus supplement and prospectus relating to the offering can be obtained from Wachovia Securities, 7 Saint Paul Street, First floor, Baltimore, MD 21202 (Attention: Equity Syndicate Desk).

A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission and is effective. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such State.

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of shopping centers and Street Retail properties. Federal Realty's portfolio now contains approximately 16.9 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic and California. The operating portfolio was approximately 93% leased to over 2,200 national, regional, and local retailers as of December 31, 2003, with no single tenant accounting for more than 2.3% of rental revenue. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 36 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT. Additional information about Federal Realty can be found on the Internet at www.federalrealty.com.

    CONTACT: Federal Realty Investment Trust, Rockville
             Investor Inquiries:
             Andrew Blocher, 301-998-8166
             ablocher@federalrealty.com
                 or
             Media Inquiries:
             Kristine Warner, 301-998-8212
             kwarner@federalrealty.com

    SOURCE: Federal Realty Investment Trust