ROCKVILLE, Md., Nov 27, 2001 (BUSINESS WIRE) -- Federal Realty today announced it has closed on the sale of $135 million (5.4 million shares) of its 8.5% Series B Cumulative Redeemable Preferred Share offering, resulting in net proceeds to the Trust after payment of underwriting discounts and commissions, of approximately $131 million. The closing today includes $10 million (400,000 shares) of Series B Preferred Shares pursuant to the partial exercise of the underwriters' overallotment option. The Series B Preferred Shares may be called by the Trust on or after November 27, 2006, and proceeds from the offering will initially be used to paydown debt on the Trust's credit facility. Morgan Stanley acted as lead manager for the offering, and Merrill Lynch & Co., Salomon Smith Barney and Wachovia Securities acted as co-managers.

After analyzing the impact of the offering to the Trust, both Moody's Investors Service and Standard and Poor's affirmed their stable outlooks and their senior unsecured debt and preferred stock ratings of Baa2/Baa3 and BBB/BBB-, respectively. In assigning their ratings, Moody's acknowledged management's prudent philosophy of lengthening debt maturities and reducing refinancing risk, while both rating agencies recognized the strength and performance of the Trust's core operating portfolio.

Commenting on the offering, Federal Realty Chief Investment Officer, Ron Kaplan, stated, "We're pleased with the market's reception of the offering, which resulted in both an attractive yield and facilitated increasing the size from an originally contemplated $100 million. While the offering will be dilutive to earnings in the near-term as we use the proceeds to pay down short-term, floating-rate debt, our balance sheet is significantly strengthened."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of high quality retail and mixed-use properties. Federal Realty owns or has an interest in 56 community and neighborhood shopping centers comprising over 12 million square feet, primarily located in densely populated communities throughout the Northeast and Mid-Atlantic United States. The Trust's predominately grocery-anchored shopping center portfolio is one of the most productive necessity-based portfolios in the industry. In addition, Federal Realty owns or has an interest in 97 retail and urban mixed-use properties comprising almost 3 million square feet located in strategic metropolitan markets across the United States. The Trust has been nationally recognized for its main street revitalization programs as well as the development of urban mixed-use, pedestrian-friendly communities. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 34 consecutive years. Shares of Federal Realty are traded on the New York Stock Exchange under the symbol FRT. Additional information about Federal Realty can be found on the Internet at

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Federal Realty Investment Trust believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Federal Realty's expectations are detailed from time to time in the Company's SEC reports and filings, including its annual report on Form 10-K and its current report on Form 8-K filed with the SEC on November 15, 2001. Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Federal Realty
Andrew Blocher, VP Investor Relations

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