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, 1996
Federal Realty Investment Trust
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(Exact name of registrant as specified in its charter)
District of Columbia 1-7533 52-0782497
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4800 Hampden Lane, Suite 500, Bethesda, Maryland 20814
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(Address of principal executive officers) (Zip Code)
Registrant's telephone number including area code: 301/652-3360
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EXHIBIT INDEX APPEARS ON PAGE 3.
Item 5. Other Events
Federal Realty Investment Trust hereby files as exhibit 99 the
following supplemental data pertaining to its portfolio of properties at March
31, 1996.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at March 31, 1996
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 INVESMENT TRUST
Date: May 17, 1996 /s/Cecily A. Ward//
-----------------------------
Cecily A. Ward
Vice President, Controller
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EXHIBIT INDEX
Exh No. Exhibit Page No.
- ------- ------- --------
99 Supplemental portfolio information at March 31, 1996 4
-3-
Exhibit 99
FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
March 31, 1996
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TABLE OF CONTENTS
1. Debt Summary..............................E-2
2. Occupancy
Percentage Leased......................E-3
Economic Occupancy.....................E-4
Regional Breakdown.....................E-5
3. Leases Signed Analysis
Comparable and Non-Comparable..........E-6
4. Press Release.............................E-7
5. Glossary of Terms........................E-10
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4800 Hampden Lane, Suite 500
Bethesda, Maryland 20814
301/652-3360
E-1
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (EXCLUDING CAPITAL LEASES AND INTEREST RATE SWAPS)
MARCH 31, 1996
================================================================================
Balance
Maturity Rate (in thousands)
-------- ---- --------------
Mortgages
Barracks Road 06/01/98 9.77% $21,680
Falls Plaza 06/01/98 9.77% 4,311
Old Keene Mill 06/01/98 9.77% 7,066
West Falls 06/01/98 9.77% 4,947
Loehmanns Plaza 07/21/98 9.75% 6,477
Federal Plaza 03/10/01 8.95% 28,712
Tysons Station 09/01/01 9.875% 4,306
Bristol 08/01/98 9.65% 11,172
Northeast 12/31/01 participating 1,500
--------------
$90,171
==============
Notes payable
Revolving credit facilities libor + .85% to libor +1% $56,565
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,291
Note issued in connection with
aquisition of Federal Plaza 07/01/96 8.00% 2,978
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,906
Note issued in connection with lease 11/13/95 none 2,500
Other various various 107
--------------
$66,347
==============
Unsecured Public Debt
5 1/4% Convertible subordinated 04/30/02 5.250% $289
debentures
5 1/4% Convertible subordinated 10/28/03 5.250% 75,000
debentures
8 7/8% Notes (fixed) 01/15/00 8.875% 75,000
8 7/8% Notes (fixed) * 01/15/00 7.530% 25,000
8% Notes (fixed) 04/21/02 8.000% 25,000
6 5/8% Notes (fixed) 12/01/05 6.625% 40,000
--------------
$240,280
==============
Total fixed rate debt $338,742 85.37%
Total variable rate debt 58,065 14.63%
-------------- -----------
Total debt $398,807 100.00%
============== ===========
Weighted average interest rate:
-----------------------------------
Fixed rate debt 7.79%
Variable on revolving facilitie 6.80% **
* The Trust purchased an interest rate swap on $25 million which was sold for
$1.5 million, thereby decreasing the effective interest rate.
** Weighted average interest rate on revolving credit facilities for three
months ended March 31, 1996.
E-2
Federal Realty Investment Trust
Percentage Leased Analysis
March 31, 1996
===============================================================================
Overall Occupancy
(Quarter to Quarter Analysis) March 31, 1996 March 31, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------- ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 12,480,181 11,796,821 95% 11,199,906 10,482,104 94%
Rollingwood Apartments (# of units) 282 274 97% 282 281 99%
Overall Occupancy
(Rolling 12 Months) March 31, 1996 December 31, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 12,480,181 11,796,821 95% 12,455,447 11,888,230 95%
Rollingwood Apartments (# of units) 282 274 97% 282 271 96%
Overall Occupancy
(Rolling 12 Months) September 30, 1995 June 30, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 12,031,774 11,376,676 95% 11,725,082 10,976,997 94%
Rollingwood Apartments (# of units) 282 279 99% 282 280 99%
===============================================================================
Same Center Occupancy
(Quarter to Quarter Comparison) At March 31, 1996 At March 31, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------- ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 11,223,075 10,605,961 95% 10,203,347 9,600,482 94%
Rollingwood Apartments (# of units) 282 274 97% 282 281 99%
Same Center Occupancy
(Rolling 12 Months) At March 31, 1996 At December 31, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------- ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 11,223,075 10,605,961 95% 11,031,179 10,538,610 96%
Rollingwood Apartments (# of units) 282 274 97% 282 271 96%
At September 30, 1995 June 30, 1995
----------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ ------------ ------------ ------------- ------------ ------------ ------------
Retail Properties (square feet) 10,553,745 10,009,447 95% 10,438,581 9,820,887 94%
Rollingwood Apartments (# of units) 282 279 99% 282 280 99%
E-3
Federal Realty Investment Trust
Economic Occupancy Analysis
March 31, 1996
================================================================================
Overall Economic Occupancy
(Quarter to Quarter Analysis) March 31, 1996 March 31, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 12,480,181 11,544,594 93% 11,199,906 10,153,934 91%
Rollingwood Apartments (# of units) 282 274 97% 282 281 99%
Overall Economic Occupancy
(Rolling 12 Months) March 31, 1996 December 31, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 12,480,181 11,544,594 93% 12,455,447 11,627,243 93%
Rollingwood Apartments (# of units) 282 274 97% 282 271 96%
Overall Economic Occupancy
(Rolling 12 Months) September 30, 1995 June 30, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 12,031,774 11,009,824 92% 11,725,082 10,641,004 91%
Rollingwood Apartments (# of units) 282 279 99% 282 280 99%
================================================================================
Overall Economic Occupancy
(Quarter to Quarter Analysis) March 31, 1996 March 31, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 11,223,075 10,413,790 93% 10,203,347 9,441,725 93%
Rollingwood Apartments (# of units) 282 274 97% 282 272 95%
Overall Economic Occupancy
(Rolling 12 Months) At March 31, 1996 At December 31, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 11,223,075 10,413,790 93% 11,031,179 10,293,222 93%
Rollingwood Apartments (# of units) 282 274 97% 282 271 96%
Overall Economic Occupancy
(Rolling 12 Months) At September 30 , 1995 At June 30, 1995
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 10,553,745 9,764,246 93% 10,438,581 9,552,765 92%
Rollingwood Apartments (# of units) 282 279 99% 282 280 99%
E-4
FEDERAL REALTY INVESTMENT TRUST
REGIONAL OCCUPANCY ANALYSIS
MARCH 31, 1996
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Total Square Occupancy
Region Footage 03/31/96
- --------------------- -------------- -------------------
D.C./Baltimore 3,882,089 95%
Philadelphia 2,165,932 96%
New York/New Jersey 1,960,791 98%
Central Virginia 1,170,984 95%
Mid-West 1,152,139 92%
New England 900,296 96%
Other 1,247,950 87%
==========================================================
Total Square Occupancy
Region Footage 03/31/96
- --------------------- -------------- -------------------
D.C./Baltimore
Anchor 1,988,702 99%
Small Shops 1,893,387 90%
Philadelphia
Anchor 1,261,184 96%
Small Shops 904,748 96%
New York/New Jersey
Anchor 1,454,053 100%
Small Shops 506,738 93%
Central Virginia
Anchor 534,954 100%
Small Shops 636,030 90%
Mid-West
Anchor 681,195 100%
Small Shops 470,944 81%
New England
Anchor 444,348 96%
Small Shops 455,948 96%
Other
Anchor 624,138 92%
Small Shops 623,812 82%
E-5
Federal Realty Investment Trust
Leasing Activity
March 31, 1996
==========================================================================================================================
COMPARABLE
Weighted Average Prior Average Current
Number of Square Average Lease Rent Per Rent Per
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot
- ----------------------- --------------- -------------- --------------- ---------------------- ------------------
1st Quarter 1996 61 259,925 7.0 $13.28 $14.88
4th Quarter 1995 101 536,433 7.9 11.08 13.51
3rd Quarter 1995 69 226,759 5.8 14.05 14.24
2nd Quarter 1995 96 313,386 8.6 13.61 17.56
Total 327 1,336,503 7.3 $12.60 $14.85
COMPARABLE Estimated
Percentage Tenant
Annualized Increase Improvement
Rolling 12 Months Increase in Rent over Prior Rent Costs
- ----------------------- ------------------- ----------------- ---------------
1st Quarter 1996 $416,047 12% $1,010,000
4th Quarter 1995 1,307,636 22% 3,482,000
3rd Quarter 1995 41,961 1% 865,000
2nd Quarter 1995 1,239,862 29% 3,892,000
Total $3,005,506 18% $9,249,000
NON-COMPARABLE Weighted Estimated
Average Annualized Tenant
Number of Square Lease Average Rent Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs
- ----------------------- --------------- -------------- --------------- ------------------- -------------- -------------------
1st Quarter 1996 6 69,840 12.5 $12.54 $875,799 $350,000
4th Quarter 1995 8 61,598 13.3 16.81 1,035,659 250,000
3rd Quarter 1995 4 26,089 9.7 13.76 358,961 0
2nd Quarter 1995 8 60,731 9.4 23.26 1,412,465 1,433,000
Total 26 218,258 11.3 $16.87 $3,682,884 $2,034,000
E-6
NEWS
RELEASE FEDERAL REALTY INVESTMENT TRUST
4800 Hampden Lane, Suite 500
Bethesda, Maryland 20814 301/652-3360
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE For further information contact:
NYSE SYMBOL-FRT
Mary Jane Morrow
Senior Vice President
Finance & Treasurer
(301) 961-9321
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER RESULTS
Bethesda, Maryland
May 14, 1996
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the first quarter of 1996 increased 2% to $15.0 million from
$14.6 million in the first quarter of 1995. On a per share basis, funds from
operations were $.46 per share in both the first quarter of 1996 and 1995.
A comparison of property operations for the first quarter of 1996 versus
the first quarter of 1995 shows the following:
o Rental income increased 18% to $40.7 million in 1996 from $34.4 million in
1995. When adjusted for properties acquired during these years, rental
income increased 7% to $36.8 million in 1996 from $34.3 million in 1995.
o During the first quarter of 1996, the Trust signed leases for a total
330,000 square feet. On a same space basis, the Trust re-leased 260,000
square feet at an average increase in rent per square foot of 12%. The
weighted average rent on these leases was $14.88 per square foot compared
to the previous average rent per square foot for the same spaces of $13.28.
E-7
o Same center occupancy stood at 95% leased at March 31, 1996 as compared to
94% at March 31, 1995. The overall portfolio was 95% leased at March 31,
1996 versus 94% leased at March 31, 1995.
Commenting on the quarter, Steven J. Guttman, President and Chief Executive
Officer stated, "Rental income growth was strong in the first quarter. In
addition to the positive contributions from property acquisitions, the Trust
continues to benefit from recent redevelopment and re-tenanting programs and its
ability to achieve higher rental rates as leases roll over. Despite the weak
retail environment, demand for our retail space remains strong, as evidenced by
our ability to maintain an occupancy level of 95%. However, these positive
results were offset by higher operating expenses. The harsh winter of 1996
resulted in significantly higher operating expenses versus the first quarter
last year when the winter was particularly mild. As a result, FFO per share was
unchanged from the first quarter last year."
Federal Realty is an equity real estate investment trust specializing in
the ownership, management and redevelopment of prime retail properties. The
Trust's real estate portfolio contains 73 retail properties, principally
shopping centers, located in the Northeast and Mid-Atlantic corridor as well as
the Chicago metropolitan area.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962 and has increased its dividend rate for
28 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol: FRT.
###
E-8
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended
March 31,
----------------------------
OPERATING RESULTS 1996 1995
- ----------------- ----- -----
Revenues
Rental income $40,747 $34,407
Interest 863 1,006
Other income 2,162 1,514
----- -----
43,772 36,927
Expenses
Rental 11,793 7,955
Real estate taxes 3,924 3,397
Interest 11,149 9,157
Administrative 1,686 1,427
Depreciation and amortization 9,332 8,369
------ ------
37,884 30,305
------ ------
Operating income before investors'
share of operations 5,888 6,622
Investor's share of operations 138 1
------ ------
Net income $6,026 $6,623
====== ======
Earnings per share $ .19 $ .21
======= =======
Funds from operations
Net income $ 6,026 $6,623
Add: depreciation and amortization
of real estate assets 8,342 7,404
Add: amortization of initial direct
costs of leases 593 597
------- -------
Funds from operations $14,961 $14,624
======= =======
Funds from operations per share $ .46 $ .46
======= ======
Weighted average shares outstanding 32,265 31,658
- ----------------------------------------------------------------------------------------
March 31, December 31,
BALANCE SHEET 1996 1995
- ------------- -------- -----------
Assets
Real estate, at cost $1,024,712 $1,009,682
Mortgage notes receivable 14,077 13,561
Cash and investments 8,737 10,782
Total assets 892,428 886,154
Liabilities and Shareholders' Equity
Obligations under capital leases 131,537 131,829
Mortgages payable 90,171 90,488
Notes payable 66,347 49,980
Senior Notes 165,000 165,000
5 1/4% Convertible subordinated
debentures 75,289 75,289
Shareholders Equity 321,826 327,468
E-9
GLOSSARY OF TERMS
AVERAGE OCCUPANCY COSTS: Includes rent, common area maintenance expense, real
estate taxes, merchant association dues and other charges
ECONOMIC OCCUPANCY: The square footage generating rental income expressed as a
percentage of its total rentable square feet.
LEASES SIGNED - COMPARABLE: Represents leases signed on spaces for which there
was a former tenant.
LEASES SIGNED - NONCOMPARABLE: Represents leases signed on spaces for which
there was no previous tenant, i.e. expansion space or space that was previously
non-leasable.
LEASES SIGNED - PRIOR RENT: Total rent paid by the previous tenant; includes
minimum and percentage rent.
OCCUPANCY: The currently leased portion of a property expressed as a percentage
of its total rentable square feet; includes square feet covered by leases for
stores not yet opened.
OVERALL OCCUPANCY: Occupancy for the entire portfolio -- includes all centers
owned in reporting period.
SAME CENTER OCCUPANCY: Occupancy for only those centers owned and operating in
the periods being compared. Excludes centers purchased or sold as well as
properties under redevelopment.
TENANT IMPROVEMENT COSTS: Represents the total dollars committed for the
improvement (fit-out) of a space as relates to a specific lease. The amounts
shown represent not only the estimated cost to fit-out the tenant space, but may
also include base building costs (i.e. expansion, escalators or new entrances)
which are required to make the space leasable.
E-10
