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, 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 December 31, 1996.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at December 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 INVESTMENT TRUST
Date: February 24, 1997 /s/ Cecily A. Ward
-------------------------------
Cecily A. Ward
Vice President, Controller
-2-
EXHIBIT INDEX
Exh No. Exhibit Page No.
- ------- ------- --------
99 Supplemental portfolio information at December 31, 1996 4
-3-
FEDERAL REALTY INVESTMENT TRUST
================================================================================
Supplemental Information
December 31, 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. 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-13
================================================================================
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (excluding capital leases)
December 31, 1996
=========================================================================================================================
Balance
Maturity Rate (in thousands)
--------------
Mortgages
Barracks Road 06/01/98 9.77% $21,412
Falls Plaza 06/01/98 9.77% 4,257
Old Keene Mill 06/01/98 9.77% 6,979
West Falls 06/01/98 9.77% 4,885
Loehmanns Plaza 07/21/98 9.75% 6,415
Bristol 08/01/98 9.65% 11,018
Federal Plaza 03/10/01 8.95% 28,445
Tysons Station 09/01/01 9.875% 4,265
Northeast 12/31/01 participating 1,500
Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable*** 9,400
$98,576
==============
Notes payable
Revolving credit facilities libor +.75% $59,400
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% 2,854
Note issued in connection with lease 11/13/95 none 2,500
Other various various 61
--------------
$66,106
==============
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 $384,671 84.55%
Total variable rate debt 70,300 15.45%
-------------- --------
Total debt $454,971 100.00%
============== ========
Weighted average interest rate:
---------------------------------
Fixed rate debt 7.75%
Variable on revolving facilities 6.40% **
*The Trust purchased an interest rate swap on $25 million which 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, 1996.
***The bonds bear interest at a variable rate determined weekly to be the
Interest rate which would enable the bonds to be remarketed at 100% of their
principal amount.
Federal Realty Investment Trust
Percentage Leased Analysis
December 31, 1996
==================================================================================================================================
Overall Occupancy
(Quarter to Quarter Analysis) December 31, 1996 December 31, 1995
---------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 12,733,461 11,935,107 94% 12,455,447 11,888,280 95%
Rollingwood apartments (# of units) 282 278 98% 282 271 96%
Overall Occupancy
(Rolling 12 Months) December 31, 1996 September 30, 1996
---------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 12,733,461 11,935,107 94% 12,324,469 11,509,125 93%
Rollingwood apartments (# of units) 282 278 98% 282 281 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) 282 100% 282 274 97%
==================================================================================================================================
Same Center Occupancy
(Quarter to Quarter Comparison) December 31, 1996 December 31, 1995
---------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 11,247,168 10,625,745 94% 11,215,520 10,727,011 96%
Rollingwood Apartments (# of units) 282 278 98% 282 271 96%
Same Center Occupancy
(Rolling 12 Months) At December 31, 1996 At September 31, 1995
---------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Retail Properties (square feet) 11,247,168 10,625,745 94% 11,559,958 10,904,972 94%
Rollingwood apartments (# of units) 282 278 98% 282 281 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%
Federal Realty Investment Trust
Economic Occupancy Analysis
December 31, 1996
================================================================================
Overall Economic Occupancy
(Quarter to Quarter Analysis) December 31, 1996 December 31,1995
----------------------------------------- -------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ------------ ------------ -------------- ------------ ------------ -------------
Retail Properties (square feet) 12,733,461 11,681,107 92% 12,455,447 11,627,243 93%
Rollingwood Apartments (# of units) 282 277 98% 282 271 96%
Overall Economic Occupancy
(Rolling 12 Months) At December 31, 1996 At September 30, 1996
----------------------------------------- -------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ------------ ------------ -------------- ------------ ------------ -------------
Retail Properties (square feet) 12,733,461 11,680,876 92% 12,324,469 11,277,086 92%
Rollingwood Apartments (# of units) 282 277 98% 282 277 98%
Overall 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) 12,317,789 11,300,470 92% 12,480,181 11,544,594 93%
Rollingwood Apartments (# of units) 282 282 100% 282 274 97%
- -----------------------------------------------------------------------------------------------------------------------------
Same Center Economic Occupancy
(Quarter to Quarter Comparison) December 31, 1996 December 31, 1995
----------------------------------------- -------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ------------ ------------ -------------- ------------ ------------ -------------
Retail Properties (square feet) 11,247,168 10,378,343 92% 11,215,520 10,477,908 93%
Rollingwood Apartments (# of units) 282 277 98% 282 271 96%
Same Center Economic Occupancy
(Rolling 12 Months) At December 31, 1996 At September 30, 1996
----------------------------------------- -------------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ------------ ------------ -------------- ------------ ------------ -------------
Retail Properties (square feet) 11,247,168 10,378,343 92% 11,559,958 10,678,908 92%
Rollingwood Apartments (# of units) 282 277 98% 282 277 98%
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%
Federal Realty Investment Trust
Regional Occupancy Analysis
December 31, 1996
================================================================================
Total Square Occupancy
Region Footage 12/31/96
- -------------------- ---------------- -----------------
D.C./Baltimore 3,782,761 95%
Philadelphia 2,301,010 96%
New York/New Jersey 1,962,610 98%
Central Virginia 1,175,872 95%
Mid-West 1,097,895 83%
New England 1,109,995 96%
Southern California 273,540 92%
Other 1,029,778 81%
================================================================================
Total Square Occupancy
Region Footage 12/31/96
- -------------------- ---------------- -----------------
D.C./Baltimore 3,782,761 95%
Anchor 1,886,095 98%
Small Shops 1,896,666 92%
Philadelphia 2,301,010 96%
Anchor 1,312,322 98%
Small Shops 988,688 94%
New York/New Jersey 1,962,610 98%
Anchor 1,428,008 100%
Small Shops 534,602 94%
Central Virginia 1,175,872 95%
Anchor 543,525 100%
Small Shops 632,347 91%
Mid-West 1,097,895 83%
Anchor 654,384 76%
Small Shops 443,511 94%
New England 1,109,995 96%
Anchor 564,207 100%
Small Shops 545,788 93%
Southern California 273,540 92%
Anchor 88,095 100%
Small Shops 185,445 88%
Other 1,029,778 81%
Anchor 522,790 81%
Small Shops 506,988 82%
Federal Realty Investment Trust
Leasing Activity
December 31, 1996
===============================================================================
Comparable
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
- ------------------------- ----------------- ------------ ---------------- --------------- --------------- --------------------
4th Quarter 1996 85 469,455 10.7 $10.88 $15.94 $2,376,264
3rd Quarter 1996 89 298,546 6.1 14.17 16.05 562,179
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
Total 316 1,300,910 8.1 $12.94 $15.67 $3,550,802
Estimated
Percentage Tenant
Increase Improvement
Rolling 12 Months over Prior Rent Costs
- ------------------------- ------------------- ---------------
4th Quarter 1996 47% $6,988,000
3rd Quarter 1996 13% 1,740,000
2nd Quarter 1996 5% 2,042,000
1st Quarter 1996 12% 1,010,000
Total 21% $11,780,000
Non-Comparable
Estimated
Weighted Annualized Tenant
Number of Square Average Lease Average Rent Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs
- ------------------------- ----------------- ------------ ---------------- ------------------- --------------- ----------------
4th Quarter 1996 8 170,449 18.3 $12.85 $2,189,679 $995,000
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 12.54 875,799 351,000
Total 27 291,401 17.5 $12.34 $3,594,874 $2,116,000
Federal Realty Investment Trust
Leases Expiring
Total Percent Average
Square Feet of Total Rent Per
Expiring (1) Portfolio(2) Square Foot
------------ ------------ -----------
1997 424,896 3% $15.71
1998 411,273 3% $16.53
1999 720,648 5% $11.98
2000 431,157 3% $19.33
2001 470,455 4% $19.14
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1996: 13,122,333
Federal Realty Investment Trust
Leases Expiring - Anchors and Small Shops
Total Percent
Square Feet of Total
Expiring(1) Portfolio(2)
----------- ------------
1997
Anchor 90,899 (less than)1%
Small Shop 333,997 3%
1998
Anchor 71,789 (less than)1%
Small Shop 339,484 3%
1999
Anchor 340,632 3%
Small Shop 380,016 3%
2000
Anchor 41,663 (less than)1%
Small Shop 389,494 3%
2001
Anchor 30,997 (less than)1%
Small Shop 439,448 3%
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1996: 13,122,333
Federal Realty Investment Trust
1996 Sales/Occupancy Costs
Average Average
Average Occupancy Occupancy Costs
Sales Per Cost Per as Percentage
Square Foot Square Foot of Sales
---------------- ------------------ -------------------
Reporting Tenants* $264.21 $14.01 5.3%
Reporting Anchor Tenants $286.88 $9.64 3.3%
Reporting Small Shop Tenants $231.30 $20.26 8.7%
* Includes only those tenants that have 12 months of reported sales in 1996
"Ami pro"
Release
[LOGO OF FEDERAL REALTY INVESTMENT TRUST APPEARS HERE]
F E D E R A L R E A L T Y I N V E S T M E N T T R U S T
Mary Jane Morrow
Senior Vice President
Finance & Treasurer
(301) 998-8321
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
1996 OPERATING RESULTS
Rockville, Maryland
February 12, 1997
Federal Realty Investment Trust (NYSE:FRT) reported today that funds
from operations for the year ended December 31, 1996 increased 14% to $65.3
million from $57.0 million in 1995. On a per share basis, funds from operations
rose 8% to $1.94 per share in 1996 from $1.79 in 1995.
A comparison of property operations for the year ended 1996 versus 1995
shows the following:
. Rental income increased 15% to $164.9 million in 1996 from $142.8
million in 1995. When adjusted to exclude properties acquired and sold
during 1995 and 1996, rental income increased 7% to $146.4 million in
1996 from $137.3 million in 1995.
. During 1996, the Trust signed leases for a total 1.6 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
21%. The weighted average rent on these leases was $15.67 per square
foot compared to the previous average rent of $12.94 per square foot.
-More-
1 6 2 6 E A S T J E F F E R S O N S T R E E T,
R O C K V I L L E, M D 2 0 8 5 2 - 4 0 4 1
3 0 1 - 9 9 8 - 8 1 0 0
During 1995, the Trust leased a total 1.5 million square feet. On a same
space basis, 1.3 million square feet was released 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 per square
foot of $12.53.
. Same property occupancy stood at 94% at December 31, 1996 compared to 96%
at year end 1995. The Trust's overall portfolio was 94% leased compared to
95% a year ago.
Commenting on the year, Steven J. Guttman, President and Chief Executive
Officer stated, "We are pleased with our strong 1996 results. 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 87 retail properties, principally
neighborhood and community shopping centers, located in strategic metropolitan
markets across the United States. These markets include Boston, New York/New
Jersey, Philadelphia, metropolitan Washington D.C., Chicago and Southern
California.
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 Year Ended
December 31, December 31,
OPERATING RESULTS 1996 1995 1996 1995
- ----------------- ---- ---- ---- ----
Revenues
Rental income $43,332 $38,284 $164,887 $142,841
Interest 1,204 1,064 4,352 4,113
Other income 2,840 2,152 9,816 7,435
----- ----- ----- -----
47,376 41,500 179,055 154,389
Expenses
Rental 10,177 10,034 40,687 35,093
Real estate taxes 4,300 3,767 16,411 14,471
Interest 11,996 10,454 45,555 39,268
Administrative 3,026 2,822 9,100 7,305
Depreciation and amortization 10,029 9,086 38,154 34,901
------ ----- ------ ------
39,528 36,163 149,907 131,038
------ ------ ------- -------
Operating income before investors' share of
operations and loss on sale of real estate 7,848 5,337 29,148 23,351
Investor's share of operations (140) 29 (394) 304
----- ----- ------ ------
Income before loss on sale of real estate 7,708 5,336 28,754 23,655
Loss on sale of real estate (12) -- (12) (545)
----- ----- ------ -------
Net income $7,696 $5,366 $28,742 $23,110
====== ====== ======= =======
Earnings per share $0.22 $0.17 $0.86 $0.72
===== ===== ===== =====
Funds from Operations
Net income $7,696 $5,366 $28,742 $23,110
Add: depreciation and amortization
of real estate assets 8,972 8,096 34,128 30,986
Add: amortization of initial direct
costs of leases 595 598 2,372 2,393
Add: loss on sale and nonrecurring items 12 -- 12 545
---- ---- ---- -----
Funds from operations $17,275 $14,060 $65,254 $57,034
======= ======= ======= =======
Funds from operations per share $0.50 $0.44 $1.94 $1.79
===== ===== ===== =====
Weighted average shares outstanding 34,288 32,205 33,573 31,860
==========================================================================================================================
December 31, December 31,
BALANCE SHEET DATA 1996 1995
- ------------------ ---- ----
Assets
Real estate, at cost $1,147,865 $1,009,682
Accumulated depreciation and amortization (223,553) (190,795)
-------- --------
924,312 818,887
Mortgage notes receivable 27,913 13,561
Cash and investments 11,041 10,521
Receivables 17,294 16,102
Other assets 54,746 27,083
------ ------
Total assets $1,035,306 $886,154
========== ========
Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $229,189 $222,317
Notes payable 66,106 49,980
Senior Notes 215,000 165,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 60,837 46,100
Shareholders' Equity 388,885 327,468
------- -------
$1,035,306 $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 development.
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.
