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) December 31, 1995
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
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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
December 31, 1995.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at December 31, 1995
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: March 21, 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 December 31, 1995 4
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FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
December 31, 1995
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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. Lease Expirations
Average Rent on Leases Expiring....................................E-7
Leases Expiring on Anchor and Small Shops..........................E-8
5. Sales/Occupancy Costs
Overall, Anchor & Small Shop.......................................E-9
6. Press Release...........................................................E-10
7. Glossary of Terms.......................................................E-11
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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)
December 31, 1995
- --------------------------------------------------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
-------- ---- --------------
Mortgages
Barracks Road 06/01/98 9.77% $21,765
Falls Plaza 06/01/98 9.77% 4,327
Old Keene Mill 06/01/98 9.77% 7,094
West Falls 06/01/98 9.77% 4,966
Loehmanns Plaza 07/21/98 9.75% 6,499
Federal Plaza 03/10/01 8.95% 28,797
Tysons Station 09/01/01 9.875% 4,319
Bristol 08/01/98 9.65% 11,221
Northeast 12/31/01 participating 1,500
--------------
$90,488
==============
Notes payable
Revolving credit facilities libor +.85% to libor +1% $40,110
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,369
Note issued in connection with
aquisition of Federal Plaza 07/01/96 8.00% 2,957
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,922
Note issued in connection with lease 11/13/95 none 2,500
Other various various 122
--------------
$49,980
==============
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
6.625% Notes (fixed) 12/01/05 6.625% 40,000
--------------
$240,289
==============
Total fixed rate debt $339,147 89.07%
Total variable rate debt 41,610 10.93%
-------------- ------------
Total debt $380,757 100.00%
============== ============
Weighted average interest rate:
---------------------------------
Fixed rate debt 7.79%
Variable on revolving facilities 6.90%**
* 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 twelve
months ended December 31, 1995.
Federal Realty Investment Trust
Percentage Leased Analysis
December 31, 1995
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Overall Occupancy
(Quarter to Quarter Analysis) December 31, 1995 December 31, 1994
------------------------------------------ -----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Retail Properties (square feet) 12,445,447 11,888,230 95% 11,195,328 10,608,627 95%
Rollingwood Apartments (# of units) 282 271 96% 282 278 99%
Overall Occupancy
(Rolling 12 Months) December 31, 1995 September 30, 1995
------------------------------------------ -----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Retail Properties (square feet) 12,445,447 11,888,230 95% 12,031,774 11,375,676 95%
Rollingwood Apartments (# of units) 282 271 96% 282 279 99%
Overall Occupancy
(Rolling 12 Months) June 30, 1996 March 31, 1995
------------------------------------------ -----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Retail Properties (square feet) 11,725,082 10,976,997 94% 11,222,812 10,505,010 94%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
- ------------------------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) December 31, 1995 December 31, 1994
------------------------------------------ -----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Retail Properties (square feet) 11,031,179 10,538,610 96% 10,873,246 10,321,046 95%
Rollingwood Apartments (# of units) 282 271 96% 282 278 99%
Same Center Occupancy
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%
Same Center Occupancy
At June 30, 1995 At March 31, 1995
------------------------------------------ -----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Retail Properties (square feet) 10,438,581 9,820,887 94% 10,203,347 9,600,482 94%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
E-3
Federal Realty Investment Trust
Economic Occupancy Analysis
December 31,1995
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Overall Economic Occupancy December 31, 1995 December 31, 1994
(Quarter to Quarter Analysis) -------------------------------------------- ---------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Retail Properties (square feet) 12,455,447 11,627,243 93% 11,195,328 10,229,236 91%
Rollingwood Apartments (# of units) 282 271 96% 282 272 96%
Overall Economic Occupancy December 31, 1995 September 30, 1995
(Rolling 12 Months) -------------------------------------------- ---------------------------------------------
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%
Overall Economic Occupancy June 30, 1995 March 31, 1995
(Rolling 12 Months) -------------------------------------------- ---------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Retail Properties (square feet) 11,725,082 10,641,004 91% 11,222,812 10,176,840 91%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
- ------------------------------------------------------------------------------------------------------------------------------------
Same Center Economic Occupancy December 31, 1995 December 31, 1994
(Quarter to Quarter Comparison) -------------------------------------------- ---------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Retail Properties (square feet) 11,031,179 10,293,222 93% 10,873,246 10,012,845 92%
Rollingwood Apartments (# of units) 282 271 96% 282 272 96%
Same Center Economic Occupancy 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%
Same Center Economic Occupancy At June 30, 1995 At March 31, 1995
-------------------------------------------- ---------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------------ ------------ ------------ ------------ ------------ ------------ ------------
Retail Properties (square feet) 10,438,581 9,552,765 92% 10,203,347 9,441,725 93%
Rollingwood Apartments (# of units) 282 280 99% 282 272 96%
E-4
Federal Realty Investment Trust
Regional Occupancy Analysis
December 31, 1995
- --------------------------------------------------------------------------------
Total Square Occupancy
Region Footage 12/31/95
- ---------------------------- --------------- ------------------
D.C./Baltimore 3,890,693 96%
Philadelphia 2,146,188 96%
New York/New Jersey 1,982,399 97%
Central Virginia 1,162,103 96%
Mid-West 1,152,139 94%
New England 902,421 98%
Other 1,219,504 89%
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Total Square Occupancy
Region Footage 12/31/95
- ---------------------------- --------------- ------------------
D.C./Baltimore
Anchor 1,973,242 99%
Small Shops 1,917,451 92%
Philadelphia
Anchor 1,201,184 95%
Small Shops 945,004 96%
New York/New Jersey
Anchor 1,454,053 98%
Small Shops 528,346 94%
Central Virginia
Anchor 534,954 100%
Small Shops 627,149 93%
Mid-West
Anchor 681,195 100%
Small Shops 470,944 86%
New England
Anchor 444,348 100%
Small Shops 458,073 97%
Other
Anchor 624,138 92%
Small Shops 595,366 85%
E-5
Federal Realty Investment Trust
Leasing Activity
December 31, 1995
- -------------------------------------------------------------------------------------------------------------
Comparable
Weighted Average Prior
Number of Square Average Lease Rent Per
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot
- --------------------------- --------------- ---------------- ---------------- ----------------
4th Quarter 1995 101 536,433 7.9 $11.08
3rd Quarter 1995 69 226,759 5.8 14.05
2nd Quarter 1995 96 313,386 8.6 13.61
1st Quarter 1995 68 230,171 6.9 12.95
Total 334 1,306,749 7.6 $12.53
Estimated
Average Current Percentage Tenant
Rent Per Annualized Increase Improvement
Rolling 12 Months Square Foot Increase in Rent over Prior Rent Costs
- --------------------------- --------------- ---------------- ---------------- ----------------
4th Quarter 1995 $13.51 $1,307,636 22% $3,482,000
3rd Quarter 1995 14.24 41,961 1% 865,000
2nd Quarter 1995 17.56 1,239,862 29% 3,892,000
1st Quarter 1995 14.60 379,855 13% 1,290,000
Total $14.80 $2,969,314 18% $9,529,000
Non-Comparable Weighted
Average
Number of Square Lease Average Rent
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot
- --------------------------- --------------- ---------------- ---------------- ----------------
4th Quarter 1995 8 61,598 13.3 $16.81
3rd Quarter 1995 4 26,089 9.7 13.76
2nd Quarter 1995 8 60,731 9.4 23.26
1st Quarter 1995 6 14,516 6.9 15.22
Total 26 162,934 10.6 $18.58
Estimated
Annualized Tenant
Current Improvement
Rolling 12 Months Rent Costs
- --------------------------- --------------- ----------------
4th Quarter 1995 $1,035,659 $250,000
3rd Quarter 1995 358,961 0
2nd Quarter 1995 1,412,465 1,433,000
1st Quarter 1995 220,998 12,000
Total $3,028,083 $1,695,000
E-6
Federal Realty Investment Trust
Leases Expiring
Total Percent Average
Square Feet of Total Rent Per
Expiring (1) Portfolio(2) Square Foot
------------ ------------ -----------
1996 604,634 5% $11.76
1997 539,942 4% $15.45
1998 436,361 4% $16.30
1999 834,626 7% $10.08
2000 432,401 3% $19.29
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1995: 12,455,447
E-7
Federal Realty Investment Trust
Leases Expiring - Anchors and Small Shops
Total Percent
Square Feet of Total
Expiring (1) Portfolio(2)
------------ ------------
1996
Anchor 180,630 1%
Small Shop 424,004 4%
1997
Anchor 122,178 1%
Small Shop 417,764 3%
1998
Anchor 87,299 1%
Small Shop 349,062 3%
1999
Anchor 490,632 4%
Small Shop 343,994 3%
2000
Anchor 18,588 Less Then 1%
Small Shop 413,813 3%
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1995: 12,455,447
E-8
Federal Realty Investment Trust
1995 Sales/Occupancy Costs
Average Average
Average Occupancy Occupancy Costs
Sales Per Cost per as Percentage
Square Foot Square Foot of Sales
-------------- -------------- ------------------
Reporting Tenants* $264.26 $13.61 5.1%
Reporting Anchor Tenants $287.98 $9.94 3.4%
Reporting Small Shop Tenants $213.77 $20.43 9.5%
* Includes only those tenants that have 12 months of reported sales in 1995
E-9
Mary Jane Morrow
Senior Vice President
Finance & Treasurer
(301) 961-9321
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
1995 OPERATING RESULTS
Bethesda, Maryland
February 13, 1996
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the year ended December 31, 1995 increased 13% to $57.0 million
from $50.4 million in 1994. On a per share basis, funds from operations
increased 9% to $1.79 per share in 1995 from $1.64 in 1994.
A comparison of property operations for the year ended 1995 versus 1994
shows the following:
. Rental income increased 11.5% to $142.8 million in 1995 compared to $128.1
million in 1994. If adjusted to exclude properties acquired and sold during
1994 and 1995, rental income increased 4% to $130.1 million in 1995 from
$124.7 million in 1994.
. During 1995, the Trust signed leases for a total 1.5 million square feet of
retail space. On a same space basis, the Trust re-leased 1.3 million square
feet at an average increase in rent per square foot of 18%. The weighted
average rent on these leases was $14.80 per square foot compared to the
previous average rent of $12.53 per square foot.
-MORE-
E-10
During 1994, the Trust leased a total 1.2 million square feet. On a same
space basis, 970,000 square feet was re-leased at an average increase in
rent per square foot of 29%. The weighted average rent on these leases was
$15.16 per square foot compared to the previous average rent per square
foot of $11.74.
. Same center occupancy stood at 96% at December 31, 1995 versus 95% at year
end 1994. The overall portfolio was 95% leased at both December 31, 1995
and 1994.
Commenting on the year, Steven J. Guttman, President and Chief Executive
Officer stated, "We are very pleased with our strong 1995 results. In addition
to the positive contributions from our recent acquisitions, we continue to
benefit from the improved performance of our core portfolio. Our recent
redevelopment and remerchandising programs combined with continued strong demand
for our retail space has produced steady rental income growth which has added
positively to our operating results."
Federal Realty is an equity real estate investment trust specializing in
the ownership, management, development and redevelopment of prime retail
properties. The Trust's real estate portfolio contains 70 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
each of the last 28 consecutive years. Shares of the Trust are traded on the
New York Stock Exchange under the symbol: FRT.
###
E-11
Financial Highlights
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, 1995 December 31, 1995
OPERATING RESULTS 1995 1994 1995 1994
- ----------------- ---- ---- ---- ----
Revenues
Rental income $38,284 33,965 $142,841 $128,133
Interest 1,064 887 4,113 3,933
Other income 2,152 1,630 7,435 5,698
----- ----- ----- -----
41,500 36,482 154,389 137,764
Expenses
Rental 10,034 8,647 35,093 35,830
Real estate taxes 3,767 3,223 14,471 12,097
Interest 10,454 7,929 39,268 31,462
Administrative 2,822 2,213 7,305 6,661
Other Charges -- 297 -- 1,055
Depreciation and amortization 9,086 8,065 34,901 29,801
----- ----- ------ ------
36,163 30,374 131,038 116,906
------ ------ ------- -------
Operating income before investors' share of
operations and loss on sale of real estate 5,337 6,108 23,351 20,858
Investor's share of operations 29 103 304 (392)
--- --- ------ ------
Income before loss on sale of real estate 5,366 6,211 23,655 20,466
Loss on sale of real estate -- (545) --
----- ----- ------ ------
Net income $5,366 $6,211 $23,110 $20,466
====== ====== ======= =======
Earnings per share $0.16 $0.20 $0.72 $0.67
Funds from Operations
Net income $5,366 $6,211 $23,110 $20,466
Add: depreciation and amortization
of real estate assets 8,096 7,122 30,986 26,479
Add: amortization of initial direct
costs of leases 597 626 2,393 2,404
Add: loss on sale and nonrecurring items -- 297 545 1,055
Funds from operations 14,059 14,256 57,034 50,404
Funds from operations per share $0.44 $0.45 $1.79 $1.64
Weighted average shares outstanding 32,205 31,604 31,860 30,679
- ---------------------------------------------------------------------------------------------
Dec. 31 December 31,
BALANCE SHEET DATA 1995 1994
- ------------------ ---- ----
Assets
Real estate, at cost $1,009,682 $852,722
Mortgage notes receivable 13,561 13,178
Cash and investments 10,782 7,583
Total assets $886,154 $751,804
Liabilities and Shareholders' Equity
Obligations under capital leases $131,829 $132,924
Mortgages payable 90,488 102,781
Notes payable 49,980 61,883
Senior Notes 165,000 --
Convertible subordinated debentures 75,289 75,289
Shareholders' Equity 327,468 343,222
E-12
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-13
