Federal Realty Investment Trust Announces Pricing of $150 Million Senior Unsecured Notes Offering

ROCKVILLE, Md., Aug. 10 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the pricing of its public offering of $150 million of 5-year senior unsecured notes. The 5.95% notes are due August 15, 2014 and were offered at 99.153% of par.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO )

J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC acted as joint book-running managers for the offering. Citigroup Global Markets Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., Morgan Keegan & Company, Inc., Capital One Southcoast, Inc. and U.S. Bancorp Investments, Inc. acted as co-managers. Subject to customary conditions, the offering is expected to close on or about August 13, 2009.

Federal Realty intends to use the net proceeds from the offering to fund potential acquisition opportunities, fund its redevelopment pipeline, reduce amounts outstanding under its term loan, and/or for general corporate purposes.

A copy of the final prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting J.P. Morgan Securities Inc., 270 Park Avenue, New York, NY 10017, Attention: High Grade Syndicate Desk - 8th Floor, telephone 1-212-834-4533, or Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Syndicate Operations, telephone 1-800-326-5897.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management and redevelopment of high-quality retail and mixed-use properties located primarily in densely populated and affluent communities in strategically selected metropolitan markets in the Northeast, Mid-Atlantic and California. As of June 30, 2009, Federal Realty owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 84 predominantly retail real estate projects comprising approximately 18.2 million square feet. In total, the real estate properties were 94.0% leased and 93.2% occupied at June 30, 2009. A joint venture in which Federal Realty owns a 30% interest owned seven retail real estate projects totaling approximately 1.0 million square feet as of June 30, 2009. In total, the joint venture properties in which Federal Realty owns an interest were 96.2% leased and occupied at June 30, 2009. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in Federal Realty's Annual Report on Form 10-K filed on February 26, 2009 and amended on June 25, 2009, and include the following:

    --  risks that Federal Realty's tenants may not pay rent, may vacate early
        or may file for bankruptcy, or that Federal Realty may be unable to
        renew leases or re-let space at favorable rents as leases expire;
    --  risks that Federal Realty may not be able to proceed with or obtain
        necessary approvals for any redevelopment or renovation project, and
        that any redevelopment or renovation project that Federal Realty does
        pursue may not perform as anticipated;
    --  risks that the number of properties Federal Realty acquires for its
        own account, and  therefore the amount of capital Federal Realty
        invests in acquisitions, may be impacted by its real estate
        partnership;
    --  risks normally associated with the real estate industry, including
        risks that:
        --  occupancy levels at Federal Realty's properties and the amount of
            rent that Federal Realty receives from its properties may be lower
            than expected,
        --  completion of anticipated or ongoing property redevelopments or
            renovations may cost more, take more time to complete, or fail to
            perform as expected,
        --  new acquisitions may fail to perform as expected,
        --  competition for acquisitions could result in increased prices for
            acquisitions,
        --  environmental issues may develop at Federal Realty's properties
            and result in unanticipated costs, and
        --  because real estate is illiquid, Federal Realty may not be able to
            sell properties when appropriate;
    --  risks that Federal Realty's growth will be limited if it cannot obtain
        additional capital;
    --  risks of financing, such as Federal Realty's ability to consummate
        additional financings or obtain replacement financing on terms that
        are acceptable to Federal Realty, its ability to meet existing
        financial covenants and the limitations imposed on its operations by
        those covenants, and the possibility of increases in interest rates
        that would result in increased interest expense; and

    --  risks related to Federal Realty's 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
        its 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 Federal Realty makes, including those in this press release. Except as may be required by law, Federal Realty makes 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 Federal Realty's Annual Report on Form 10-K filed February 26, 2009 and amended on June 25, 2009.

    Investor and Media Inquiries
    Gina Birdsall
    Investor Relations
    301/998-8265
    gbirdsall@federalrealty.com

SOURCE  Federal Realty Investment Trust

    -0-                           08/10/2009
    /CONTACT:  Investor and Media Inquiries, Gina Birdsall, Investor Relations
of Federal Realty, +1-301-998-8265, gbirdsall@federalrealty.com/
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             AP Archive: http://photoarchive.ap.org
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    /Web Site:  http://www.federalrealty.com /
    (FRT)

CO:  Federal Realty Investment Trust

ST:  Maryland
IN:  RLT RRL CRL REA FIN
SU:  OFR

PR
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