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) June 30, 1996
Federal Realty Investment Trust
------------------------------------------------------
(Exact name of registrant as specified in its charter)
District of Columbia 1-7533 52-0782497
---------------------------- ---------- -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4800 Hampden Lane, Suite 500, Bethesda, Maryland 20814
------------------------------------------------ ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: 301/652-3360
------------
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 June 30, 1996.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at June 30, 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: August 19, 1996 /s/Cecily A. Ward
--------------------------------
Cecily A. Ward
Vice President, Controller
EXHIBIT INDEX
Exh No. Exhibit
- ------- -------
99 Supplemental portfolio information at June 30, 1996
-3-
EXHIBIT 99
FEDERAL REALTY INVESTMENT TRUST
================================================================================
Supplemental Information
June 30, 1996
================================================================================
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
================================================================================
4800 Hampden Lane, Suite 500
Bethesda, Maryland 20814
301/652-3360
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (excluding capital leases and interest rate swaps)
June 30, 1996
================================================================================
Balance
Maturity Rate (in thousands)
-------- ---- --------------
Mortgages
Barracks Road 06/01/98 9.77% $21,592
Falls Plaza 06/01/98 9.77% 4,293
Old Keene Mill 06/01/98 9.77% 7,038
West Falls 06/01/98 9.77% 4,927
Loehmanns Plaza 07/21/98 9.75% 6,458
Federal Plaza 03/10/01 8.95% 28,624
Tysons Station 09/01/01 9.875% 4,293
Bristol 08/01/98 9.65% 11,122
Northeast 12/31/01 participating 1,500
------------
$89,847
============
Notes payable
Revolving credit facilities libor + .75% to libor + 1% $45,731
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,291
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,889
Note issued in connection with lease 11/13/95 none 2,500
Other various various 92
------------
$52,503
============
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
------------
$240,289
============
Total fixed rate debt $335,408 87.66%
Total variable rate debt 47,231 12.34%
------------ ----------
Total debt $382,639 100.00%
============ ==========
Weighted average interest rate:
----------------------------------
Fixed rate debt 7.79%
Variable on revolving facilities 6.50% **
* 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 six months
ended June 30, 1996.
E-2
Federal Realty Investment Trust
Percentage Leased Analysis
June 30, 1996
================================================================================
Overall Occupancy
(Quarter to Quarter Analysis) June 30, 1996 June 30, 1995
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 12,317,789 11,593,141 94% 11,725,082 10,976,997 94%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
Overall Occupancy
(Rolling 12 Months) June 30, 1996 March 31, 1996
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 12,317,789 11,593,141 94% 12,480,181 11,796,821 95%
Rollingwood Apartments (# of units) 282 282 100% 282 274 97%
Overall Occupancy
(Rolling 12 Months) December 31, 1995 September 30, 1995
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 12,455,447 11,888,230 95% 12,031,774 11,375,676 95%
Rollingwood Apartments (# of units) 282 271 96% 282 279 99%
================================================================================
Same Center Occupancy
(Quarter to Quarter Comparison) June 30, 1996 June 30, 1995
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 11,115,866 10,546,049 95% 10,438,581 9,820,887 94%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
Same Center Occupancy
(Rolling 12 Months) At June 30, 1996 At March 31, 1996
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 11,115,866 10,546,049 95% 11,223,075 10,605,961 95%
Rollingwood Apartments (# of units) 282 282 100% 282 274 97%
Same Center Occupancy
(Rolling 12 Months) At December 31, 1995 At September 30, 1995
----------------------------------- ----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (square feet) 11,031,179 10,538,610 96% 10,553,745 10,009,447 95%
Rollingwood Apartments (# of units) 282 271 96% 282 279 99%
E-3
Federal Realty Investment Trust
Economic Occupancy Analysis
June 30, 1996
================================================================================
Overall Economic Occupancy
(Quarter to Quarter Analysis) June 30, 1996 June 30, 1995
------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------- ---------- ------------- --------- ---------- ------------ ---------
Retail Properties (square feet) 12,317,789 11,300,470 92% 11,725,082 10,641,004 91%
Rollingwood Apartments (# of units 282 282 100% 282 280 99%
Overall Economic Occupancy
(Rolling 12 Months) June 30, 1996 March 31, 1996
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------- ----------- ------------- --------- ---------- ------------ ---------
Retail Properties (square feet) 12,317,789 11,300,470 92% 12,480,181 11,544,594 93%
Rollingwood Apartments (# of units 282 282 100% 282 274 97%
Overall Economic Occupancy
(Rolling 12 Months) December 31, 1995 September 30, 1995
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------- ---------- ------------ --------- ---------- ----------- ---------
Retail Properties (square feet) 12,455,447 11,627,243 93% 12,031,774 11,009,824 92%
Rollingwood Apartments (# of units 282 271 96% 282 279 99%
- -----------------------------------------------------------------------------------------------------------------------------------
Same Center Economic Occupancy
(Quarter to Quarter Comparison) June 30, 1996 June 30, 1995
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------- ---------- ------------ --------- ---------- ----------- ---------
Retail Properties (square feet) 11,115,866 10,272,070 92% 10,438,581 9,552,765 92%
Rollingwood Apartments (# of units 282 282 100% 282 280 99%
Same Center Economic Occupancy
(Rolling 12 Months) At June 30, 1996 At March 31, 1996
------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- --------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (square feet) 11,115,866 10,272,070 92% 11,223,075 10,413,790 93%
Rollingwood Apartments (# of units 282 282 100% 282 274 97%
Same Center Economic Occupancy
(Rolling 12 Months) At December 31, 1995 At September 30, 1995
--------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ---------- ------------ --------- ---------- ------------- ---------
Retail Properties (square feet) 11,031,179 10,293,222 93% 10,553,745 9,764,246 93%
Rollingwood Apartments (# of units) 282 271 96% 282 279 99%
E-4
Federal Realty Investment Trust
Regional Occupancy Analysis
June 30, 1996
===========================================================
Total Square Occupancy
Region Footage 06/30/96
- --------------------- ---------------- ---------------
D.C./Baltimore 3,731,862 95%
Philadelphia 2,161,279 97%
New York/New Jersey 1,960,238 98%
Central Virginia 1,174,581 95%
Mid-West 1,103,014 83%
New England 940,360 98%
Other 1,246,455 88%
===========================================================
Total Square Occupancy
Region Footage 06/30/96
- --------------------- ---------------- ---------------
D.C./Baltimore
Anchor 1,887,296 99%
Small Shops 1,844,566 91%
Philadelphia
Anchor 1,278,466 98%
Small Shops 882,813 95%
New York/New Jersey
Anchor 1,431,307 100%
Small Shops 528,931 93%
Central Virginia
Anchor 547,845 100%
Small Shops 626,736 90%
Mid-West
Anchor 676,785 79%
Small Shops 426,229 88%
New England
Anchor 444,348 100%
Small Shops 496,012 96%
Other
Anchor 602,433 92%
Small Shops 644,012 83%
E-5
Federal Realty Investment Trust
Leasing Activity
June 30, 1996
================================================================================
Comparible
Weighted Average Prior Average Current
Number of Square Average Lease Rent Per Rent Per Annualized
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent
- --------------------- --------------- ---------- ---------------- --------------- ---------------- -------------------
2nd Quarter 1996 81 272,984 6.9 $14.80 $15.52 $196,312
1st Quarter 1996 61 259,925 7.0 13.28 14.88 416,047
4th Quarter 1995 101 536,433 7.9 11.08 13.51 1,307,636
3rd Quarter 1995 69 226,759 5.8 14.05 14.24 41,961
Total 312 1,296,101 7.1 $12.82 $14.34 $1,961,956
Estimated
Percentage Tenant
Increase Improvement
Rolling 12 Months over Prior Rent Costs
- --------------------- -------------------- --------------
2nd Quarter 1996 5% $2,042,000
1st Quarter 1996 12% 1,010,000
4th Quarter 1995 22% 3,482,000
3rd Quarter 1995 1% 865,000
Total 12% $7,399,000
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
- --------------------- -------------- -------- -------------- ----------------- ------------- -------------
2nd Quarter 1996 8 31,194 8.7 $8.10 $252,789 $390,000
1st Quarter 1996 6 69,840 12.6 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
Total 26 188,721 12.1 $13.37 $2,523,208 $990,000
Federal Realty Investment Trust
NEWS 4800 Hampden Lane, Suite 500
RELEASE 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
SECOND QUARTER OPERATING RESULTS
Bethesda, Maryland
August 12, 1996
Federal Realty Investment Trust (NYSE:FRT) reported today that funds
from operations for the second quarter of 1996 increased 13% to $15.8 million
from $14.0 million in the second quarter of 1995. On a per share basis, funds
from operations rose 9% to $.48 in the second quarter of 1996 from $.44 in the
comparable quarter of 1995. Funds from operations also improved for the first
six months of 1996 increasing 8% to $30.8 million or $.94 per share from $28.6
million or $.90 per share in the first half of 1995.
A comparison of property operations for the second quarter of 1996
versus the second quarter of 1995 shows the following:
o Rental income increased 17% to $39.9 million in 1996 from $34.2 million
in 1995. When adjusted to exclude properties acquired and sold during
1995 and 1996, rental income increased 6% to $35.5 million in 1996 from
$33.5 million in 1995.
o During the second quarter of 1996, the Trust signed leases for a total
304,178 square feet. On a same space basis, the Trust re-leased 272,984
square feet at an average increase in rent per square foot of 5%. The
weighted average rent on these
-More-
E-7
leases was $15.52 per square foot compared to the previous average
rent of $14.80 per square foot for the same spaces.
o Same center occupancy stood at 95% at June 30, 1996 compared to 94% at
June 30, 1995. The Trust's overall portfolio was 94% leased at both June
30, 1996 and 1995.
Commenting on the quarter, Steven J. Guttman, President and Chief
Executive Officer stated, "We are pleased with the continued growth in our
operating results during the second quarter. Fueled by our recent redevelopment
and retenanting programs, rental growth remained very strong with same property
minimum rent up 7% over the second quarter last year. Occupancy declined
slightly from the first quarter of 1996, but remained at a healthy 94% -- on par
with second quarter 1995. Despite weakness in the retail industry, demand for
our space remains strong and we hope to achieve modest occupancy gains in the
second half of the 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 74 retail properties, principally
neighborhood and community 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 Six Months Ended
June 30 June 30
OPERATING RESULTS 1996 1995 1996 1995
---- ---- ---- ----
Revenues
Rental income $39,913 $34,240 $80,660 $68,647
Interest 1,056 887 1,919 1,893
Other income 2,601 1,862 4,763 3,376
----- ----- ----- -----
43,570 36,989 87,342 73,916
Expenses
Rental 9,924 8,264 21,717 16,219
Real estate taxes 4,045 3,588 7,969 6,985
Interest 11,139 9,559 22,288 18,716
Administrative 2,136 1,390 3,822 2,817
Depreciation and amortization 9,344 8,619 18,676 16,988
----- ----- ------ ------
36,588 31,420 74,472 61,725
------ ------ ------ ------
Operating income before investors'
share of operations and loss on
sale of real estate 6,982 5,569 12,870 12,191
Investor's share of operations (85) 169 53 170
----- ----- ------ ------
Income before loss on sale of
real estate 6,897 5,738 12,923 12,361
Loss on sale of real estate ---- (535) ---- (535)
----- ----- ------ ------
Net income $6,897 $5,203 $12,923 $11,826
====== ====== ======= =======
Earnings per share $0.21 $0.16 $0.40 $0.37
Funds from Operations
Net income $6,897 $5,203 $12,923 $11,826
Add: depreciation and amortization
of real estate assets 8,355 7,647 16,697 15,051
Add: amortization of initial
direct costs of leases 592 598 1,185 1,195
Add: loss on sale and nonrecurring
items --- 535 ---- 535
------ ------ ------- -------
Funds from operations $15,844 $13,983 $30,805 $28,607
======= ======= ======= =======
Funds from operations per share $0.48 $0.44 $0.94 $0.90
===== ===== ===== =====
Weighted average shares
outstanding 33,066 31,723 32,666 31,691
- --------------------------------------------------------------------------------
June 30, December 31,
BALANCE SHEET DATA 1996 1995
---- ----
Assets
Real estate, at cost $1,047,226 $1,009,682
Mortgage notes receivable 23,327 13,561
Cash and investments 7,401 10,782
Total assets 913,815 886,154
Liabilities and Shareholders' Equity
Obligations under capital leases $131,237 $131,829
Mortgages payable 89,847 90,488
Notes payable 52,503 49,980
Senior Notes 165,000 165,000
Convertible subordinated debentures 75,289 75,289
Shareholders' Equity 355,165 327,468
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
