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) September 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.)
1626 East Jefferson Street, Rockville, Maryland 20852-4041
- ----------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: 301/998-8100
------------
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
September 30, 1996.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at September 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 INVESTMENT TRUST
Date: November 15, 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 September 30, 1996 4
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EXHIBIT 99
FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
September 30, 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
================================================================================
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
____________________________________________________________________________________________________________
Balance
MORTGAGES Maturity Rate (in thousands)
Barracks Road 06/01/98 9.77% $21,503
Falls Plaza 06/01/98 9.77% 4,275
Old Keene Mill 06/01/98 9.77% 7,009
West Falls 06/01/98 9.77% 4,906
Loehmanns Plaza 07/21/98 9.75% 6,437
Bristol 08/01/98 9.65% 11,071
Federal Plaza 03/10/01 8.95% 28,535
Tysons Station 09/01/01 9.875% 4,279
Northeast 12/31/01 participating 1,500
--------
$89,515
========
NOTES PAYABLE
Revolving credit facilities Libor +.75% $12,140
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% 2,872
Note issued in connection
with lease 11/13/95 none 2,500
Other various various 77
-------
$18,880
=======
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
7.48% Debentures 08/15/26 7.480% 50,000
--------
$290,289
========
Total fixed rate debt $385,044 96.58%
Total variable rate debt 13,640 3.42%
-------- ------
Total debt $398,684 100.00%
======== ======
Weight average interest rate
Fixed rate debt 7.75%
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 nine
months ended September 30, 1996.
FEDERAL REALTY INVESTMENT TRUST
PERCENTAGE LEASED ANALYSIS
SEPTEMBER 30, 1996
- --------------------------------------------------------------------------------
OVERALL OCCUPANCY
(Quarter to Quarter Analysis) September 30, 1996 September 30, 1995
----------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ -------- ---------- ------------- -------- ---------- -------------
Retail Properties (square feet) 12,324,469 11,509,125 93% 12,031,774 11,375,676 95%
Rollingwood Apartments (# of units) 282 281 99% 282 279 99%
OVERALL OCCUPANCY
(Rolling 12 Months) September 30, 1996 June 30, 1996
----------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ -------- ---------- ------------- -------- ---------- -------------
Retail Properties (square feet) 12,324,469 11,509,125 93% 12,317,789 11,593,141 94%
Rollingwood Apartments (# of units) 282 281 99% 282 282 100%
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%
- ------------------------------------------------------------------------------------------------------------------------------------
SAME CENTER OCCUPANCY
(Quarter to Quarter Comparison) September 30, 1996 September 30, 1995
----------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ -------- ---------- ------------- -------- ---------- -------------
Retail Properties (square feet) 11,559,958 10,904,972 94% 11,577,736 10,948,332 95%
Rollingwood Apartments (# of units) 282 281 99% 282 279 99%
SAME CENTER OCCUPANCY
(Rolling 12 Months) At September 30, 1996 At June 30, 1996
----------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------ -------- ---------- ------------- -------- ---------- -------------
Retail Properties (square feet) 11,559,958 10,904,972 94% 11,115,866 10,546,049 95%
Rollingwood Apartments (# of units) 282 281 99% 282 282 100%
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%
- --------------------------------------------------------------------------------
E-3
FEDERAL REALTY INVESTMENT TRUST
ECONOMIC OCCUPANCY ANALYSIS
SEPTEMBER 30, 1996
- -------------------------------------------------------------------
OVERALL ECONOMIC OCCUPANCY
(QUARTER TO QUARTER ANALYSIS) September 30, 1996 September 30, 1995
-------------------------------------------- ----------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- -------------------------------------- ---------- ------------------- --------- ---------- ---------------- -----------
Retail Properties (square feet) 12,324,469 11,277,086 92% 11,806,960 10,842,916 92%
Rollingwood Apartments (# of units) 282 277 98% 282 279 99%
OVERALL ECONOMIC OCCUPANCY
(QUARTER TO QUARTER ANALYSIS) September 30, 1996 June 30, 1996
-------------------------------------------- -----------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- -------------------------------------- ---------- ------------------- --------- ---------- ---------------- ----------
Retail Properties (square feet) 12,324,469 11,277,086 92% 12,317,789 11,300,470 92%
Rollingwood Apartments (# of units) 282 277 98% 282 282 100%
- ---------------------------------------------------------------------------------------------------------------------------
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%
- -----------------------------------------------------------------------------------------------------------------------------------
SAME CENTER ECONOMIC OCCUPANCY
(QUARTER TO QUARTER COMPARISON) September 30, 1996 September 30, 1995
-------------------------------------------- ----------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- -------------------------------------- ---------- ------------------- --------- ---------- ---------------- ----------
Retail Properties (square feet) 11,559,958 10,678,933 92% 11,577,736 10,590,270 91%
Rollingwood Apartments (# of units) 282 277 98% 282 279 99%
SAME CENTER ECONOMIC OCCUPANCY
(ROLLING 12 MONTHS) At September 30, 1996 At June 30, 1996
-------------------------------------------- ----------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- -------------------------------------- ---------- ------------------- --------- ---------- ---------------- ----------
Retail Properties (square feet) 11,559,958 10,678,933 92% 11,115,866 10,272,070 92%
Rollingwood Apartments (# of units) 282 277 98% 282 282 100%
SAME CENTER 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 Property (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%
E-4
FEDERAL REALTY INVESTMENT TRUST
REGIONAL OCCUPANCY ANALYSIS
SEPTEMBER 30, 1996
================================================================================
Total Square Occupancy
Region Footage 09/30/96
------ ------------ ---------
D.C./Baltimore 3,762,329 95%
Philadelphia 2,139,869 95%
New York/New Jersey 1,957,408 98%
Central Virginia 1,174,957 95%
Mid-West 1,102,964 83%
New England 940,487 95%
Other 1,246,455 86%
================================================================================
Total Square Occupancy
Region Footage 09/30/96
------ ------------ ---------
D.C./Baltimore 3,762,329 95%
Anchor 1,830,219 98%
Small Shops 1,932,110 92%
Philadelphia 2,139,869 95%
Anchor 1,242,447 96%
Small Shops 897,422 93%
New York/New Jersey 1,957,408 98%
Anchor 1,428,008 100%
Small Shops 529,400 92%
Central Virginia 1,174,957 95%
Anchor 543,525 100%
Small Shops 631,432 90%
Mid-West 1,102,964 83%
Anchor 682,940 79%
Small Shops 420,024 91%
New England 940,487 95%
Anchor 429,781 100%
Small Shops 510,706 91%
Other 1,246,455 86%
Anchor 623,443 92%
Small Shops 623,012 80%
E-5
FEDERAL REALTY INVESTMENT TRUST
LEASING ACTIVITY
SEPTEMBER 30, 1996
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COMPARABLE
Weighted Average Prior Average Current Percentage
Number of Square Average Lease Rent Per Rent Per Annualized Increase
Rolling 12 Months Leases Signed Feet Term(Years) Square Foot Square Foot Increase In Rent Over Prior Rent
- ----------------- ------------- -------- -------------- --------------- ------------- ---------------- ---------------
3rd Quarter 1996 89 298,546 6.1 $14.17 $16.05 $ 562,179 13%
2nd Quarter 1996 81 272,984 6.9 14.80 15.52 196,312 5%
1st Quarter 1996 61 259,925 7.0 13.28 14.88 416,047 12%
4th Quarter 1995 101 536,433 7.9 11.08 13.51 1,307,636 22%
Total 332 1,367,888 7.1 $12.91 $14.73 $2,482,174 14%
Estimated
Tenant
Improvement
Rolling 12 Months Costs
- ----------------- ------------
3rd Quarter 1996 $ 1,740,000
2nd Quarter 1996 2,042,000
1st Quarter 1996 1,010,000
4th Quarter 1995 3,482,000
Total $ 8,274,000
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
- ----------------- ------------- ------- ------------ --------------- ----------- ------------
3rd Quarter 1996 5 19,918 8.3 $13.89 $ 276,607 $ 380,000
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
Total 27 182,550 12.0 $13.37 $ 2,440,854 $1,370,000
E-6
[LOGO OF FEDERAL REALTY INVESTMENT TRUST APPEARS HERE]
Mary Jane Morrow
Senior Vice President
Finance & Treasurer
(301) 998-8321
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER OPERATING RESULTS
Rockville, Maryland
November 6, 1996
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the third quarter of 1996 increased 20% to $17.2 million from
$14.4 million in the third quarter of 1995. On a per share basis, funds from
operations rose 11% to $.50 in the third quarter of 1996 from $.45 in the
comparable quarter of 1995. Funds from operations also improved for the first
nine months of 1996 increasing 12% to $48.0 million or $1.45 per share from
$43.0 million or $1.35 per share through the first nine months of 1995.
A comparison of property operations for the third quarter of 1996 versus
the third quarter of 1995 shows the following:
. Rental income increased 14% to $40.9 million in 1996 from $35.9 million in
1995. When adjusted to exclude properties acquired and sold during 1995 and
1996, rental income increased 6% to $36.2 million in 1996 from $34.2
million in 1995.
. During the third quarter of 1996, the Trust signed leases for a total
318,000 square feet. On a same space basis, the Trust re-leased 299,000
square feet at an average increase in rent per square foot of 13%. The
weighted average rent on
-More-
E-7
these leases was $16.05 per square foot compared to the previous average
rent of $14.17 per square foot for the same spaces.
. Same property occupancy stood at 94% at September 30, 1996 compared to 95%
a year ago. At September 30, 1996, the Trust's overall portfolio was 93%
leased compared to 95% a year ago.
Commenting on the quarter, Steven J. Guttman, President and Chief Executive
Officer stated, "We are pleased with our strong results year-to-date. In
addition to the positive contributions from our recent acquisitions, we continue
to benefit from the improved performance of our core portfolio. Our
redevelopment and remerchandising programs have produced steady rental income
growth, which combined with our expense control program, has had a positive
impact on the bottom line."
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 76 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
29 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol: FRT.
###
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
OPERATING RESULTS 1996 1995 1996 1995
- ----------------- ---- ---- ---- ----
REVENUES
Rental income $40,895 $35,910 $121,555 $104,557
Interest 1,229 1,156 3,148 3,049
Other income 2,213 1,907 6,976 5,283
-------- -------- --------- ---------
44,337 38,973 131,679 112,889
EXPENSES
Rental 8,793 8,840 30,510 25,059
Real estate taxes 4,142 3,719 12,111 10,704
Interest 11,271 10,098 33,559 28,814
Administrative 2,252 1,666 6,074 4,483
Depreciation and amortization 9,449 8,827 28,125 25,815
-------- -------- --------- ---------
35,907 33,150 110,379 94,875
-------- -------- --------- ---------
OPERATING INCOME BEFORE INVESTORS' SHARE OF
OPERATIONS AND LOSS ON SALE OF REAL ESTATE 8,430 5,823 21,300 18,014
Investor's share of operations (307) 105 (254) 275
-------- -------- --------- ---------
INCOME BEFORE LOSS ON SALE OF REAL ESTATE 8,123 5,928 21,046 18,289
Loss on sale of real estate --- (10) --- (545)
-------- -------- --------- ---------
NET INCOME $8,123 $5,918 $21,046 $17,744
======== ======== ========= =========
EARNINGS PER SHARE $0.24 $0.19 $0.63 $0.56
======== ======== ========= =========
FUNDS FROM OPERATIONS
Net income $8,123 $5,918 $21,046 $17,744
Add: depreciation and amortization
of real estate assets 8,459 7,839 25,156 22,890
Add: amortization of initial direct
costs of leases 592 600 1,777 1,795
Add: loss on sale and nonrecurring items --- 10 --- 545
-------- -------- --------- ---------
Funds from operations $17,174 $14,367 $47,979 $42,974
======== ======== ========= =========
Funds from operations per share $0.50 $0.45 $1.45 $1.35
-------- -------- --------- ---------
Weighted average shares outstanding 34,236 31,850 33,193 31,744
===============================================================================================================
September 30, December 31,
BALANCE SHEET DATA 1996 1995
- ------------------ ---- ----
ASSETS
Real estate, at cost $1,058,525 $1,009,682
Accumulated depreciation and amortization (215,267) (190,795)
--------- ---------
843,258 818,887
Mortgage notes receivable 26,975 13,561
Cash and investments 9,666 10,782
Receivables 16,914 16,102
Other assets 31,784 26,822
--------- ---------
TOTAL ASSETS $928,597 $886,154
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Obligations under capital leases & mortgages payable $220,445 $222,317
Notes payable 18,880 49,980
Senior Notes 215,000 165,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 48,895 46,100
SHAREHOLDERS' EQUITY 350,088 327,468
--------- ---------
$928,597 $886,154
========= =========
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
