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, 1997
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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: 301/998-8100
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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
September 30, 1997.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at September 30, 1997
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: October 30, 1997 /s/ Cecily A. Ward
--------------------------------
Cecily A. Ward
Vice President, Controller
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EXHIBIT INDEX
Exh No. Exhibit Page No.
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99 Supplemental portfolio information at September 30, 1997 4
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FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
September 30, 1997
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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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1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (EXCLUDING CAPITAL LEASES AND INTEREST RATE SWAPS)
SEPTEMBER 30, 1997
- -----------------------------------------------------------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
---------- --------- --------------
MORTGAGES
Barracks Road 06/01/98 9.77% $ 21,123
Falls Plaza 06/01/98 9.77% 4,200
Old Keene Mill 06/01/98 9.77% 6,885
West Falls 06/01/98 9.77% 4,819
Loehmanns Plaza 07/21/98 9.75% 6,348
Federal Plaza 03/10/01 8.95% 28,159
Tysons Station 09/01/01 9.875% 4,221
Bristol 08/01/98 9.65% 10,852
Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable ## 9,400
$ 96,007
===========
NOTES PAYABLE
Revolving credit facilities libor +.75% $ 65,286
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,205
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,798
Other various various 266
-----------
$ 69,555
===========
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
6.82% Medium Term Notes 08/01/27 6.820% 40,000
-----------
$ 330,289
===========
Total fixed rate debt $ 421,165 84.94%
Total variable rate debt 74,686 15.06%
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Total debt $ 495,851 100.00%
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Weighted average interest rate:
Fixed rate debt 7.65%
Variable on revolving facilities 6.40% **
Variable on muncipal bonds ##
* 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 nine months
ended September 30, 1997
## 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.
2
FEDERAL REALTY INVESTMENT TRUST
Percentage Leased Analysis
September 30, 1997
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OVERALL OCCUPANCY
(Quarter to Quarter Analysis) September 30, 1997 September 30, 1996
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 12,856,798 12,202,952 95% 12,324,469 11,509,125 93%
Rollingwood Apartments (# of units) 282 282 100% 282 281 99%
OVERALL OCCUPANCY
(Rolling 12 Months) September 30, 1997 June 30, 1997
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 12,856,798 12,202,952 95% 12,770,492 11,986,868 94%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
OVERALL OCCUPANCY
(Rolling 12 Months) March 31, 1997 December 31, 1996
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 13,046,013 12,228,746 94% 12,733,461 11,935,107 94%
Rollingwood Apartments (# of units) 282 281 99% 282 278 98%
- ------------------------------------------------------------------------------------------------------------------------------------
SAME CENTER OCCUPANCY
(Quarter to Quarter Comparison) September 30, 1997 September 30, 1996
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,096,212 10,577,015 95% 10,916,125 10,324,076 95%
Rollingwood Apartments (# of units) 282 282 100% 282 281 99%
SAME CENTER OCCUPANCY
(Rolling 12 Months) At September 30, 1997 At June 30, 1997
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,096,212 10,577,015 95% 11,150,587 10,531,352 94%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
SAME CENTER OCCUPANCY
(Rolling 12 Months) At March 31, 1997 At December 31, 1996
--------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,425,601 10,762,859 94% 11,247,168 10,625,745 94%
Rollingwood Apartments (# of units) 282 281 99% 282 278 98%
FEDERAL REALTY INVESTMENT TRUST
ECONOMIC OCCUPANCY ANALYSIS
SEPTEMBER 30, 1997
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OVERALL ECONOMIC OCCUPANCY
(Quarter to Quarter Analysis) September 30, 1997 September 30, 1996
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 12,856,798 12,056,781 94% 12,324,469 11,277,086 92%
Rollingwood Apartments (# of units) 282 276 98% 282 277 98%
OVERALL ECONOMIC OCCUPANCY
(Rolling 12 Months) September 30, 1997 June 30, 1997
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 12,856,798 12,056,781 94% 12,770,492 11,724,538 92%
Rollingwood Apartments (# of units) 282 276 98% 282 280 99%
OVERALL ECONOMIC OCCUPANCY
(Rolling 12 Months) March 31, 1997 December 31, 1996
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 13,046,013 11,982,214 92% 12,733,461 11,680,876 92%
Rollingwood Apartments (# of units) 282 276 98% 282 277 98%
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SAME CENTER ECONOMIC OCCUPANCY
(Quarter to Quarter Comparison) September 30, 1997 September 30, 1996
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,096,212 10,433,345 94% 10,916,125 10,140,923 93%
Rollingwood Apartments (# of units) 282 276 98% 282 277 98%
SAME CENTER ECONOMIC OCCUPANCY
(Rolling 12 Months) At September 30, 1997 At June 30, 1997
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,096,212 10,433,345 94% 11,150,587 10,269,022 92%
Rollingwood Apartments (# of units) 282 276 98% 282 280 99%
SAME CENTER ECONOMIC OCCUPANCY
(Rolling 12 Months) At March 31, 1997 At December 31, 1996
--------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ----------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
Retail Properties (square feet) 11,425,601 10,518,375 92% 11,247,168 10,378,343 92%
Rollingwood Apartments (# of units) 282 276 98% 282 277 98%
FEDERAL REALTY INVESTMENT TRUST
REGIONAL OCCUPANCY ANALYSIS
SEPTEMBER 30, 1997
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Total Square Occupancy
Region Footage 09/30/97
- ------------ ------------ ---------
Northeast 5,584,038 96%
Mid-Atlantic 5,167,187 96%
Mid-West 770,484 96%
Southeast 634,076 80%
West Coast 701,013 85%
- ----------------------------------------------------------------
Total Square Occupancy
Region Footage 09/30/97
- ------------ ------------ ---------
Northeast 5,584,038 96%
Anchor 3,421,593 98%
Small Shops 2,162,445 94%
Mid-Atlantic 5,167,187 96%
Anchor 2,559,418 99%
Small Shops 2,607,769 94%
Mid-West 770,484 96%
Anchor 434,157 97%
Small Shops 336,327 94%
Southeast 634,076 80%
Anchor 302,275 76%
Small Shops 331,801 83%
West Coast 701,013 85%
Anchor 152,944 100%
Small Shops 548,069 81%
FEDERAL REALTY INVESTMENT TRUST
Leasing Activity
September 30, 1997
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COMPARABLE
Weighted Average Prior
Number of Square Average Lease Rent Per
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot
- ----------------- --------------- --------------- --------------- ---------------
3rd Quarter 1997 69 270,550 7.9 $ 14.21
2nd Quarter 1997 73 357,162 9.6 $ 13.32
1st Quarter 1997 58 220,452 6.9 $ 11.09
4th Quarter 1996 85 469,455 10.7 $ 10.88
TOTAL 285 1,317,619 9.2 $ 12.26
Estimated
Average Current Percentage Tenant
Rent Per Annualized Increase Improvement
Rolling 12 Months Square Foot Increase in Rent over Prior Rent Costs
- ----------------- --------------- ---------------- --------------- ---------------
3rd Quarter 1997 $ 16.12 $ 518,342 13% $ 1,269,000
2nd Quarter 1997 $ 15.11 $ 637,973 13% $ 2,847,000
1st Quarter 1997 $ 14.88 $ 836,236 34% $ 3,162,000
4th Quarter 1996 $ 15.94 $ 2,376,264 47% $ 6,988,000
TOTAL $ 15.58 $ 4,368,815 27% $ 14,266,000
NON-COMPARABLE Weighted Estimated
Average Annualized Tenant
Number of Square Lease Average Rent Per Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Rent Costs
- ----------------- --------------- --------------- --------------- --------------- --------------- ---------------
3rd Quarter 1997 15 99,537 10.0 $ 18.60 $ 1,851,254 $ 133,000
2nd Quarter 1997 7 81,229 11.5 $ 11.75 $ 954,526 $ 348,000
1st Quarter 1997 7 29,178 12.4 $ 19.86 $ 579,585 $ 70,000
4th Quarter 1996 8 170,449 18.3 $ 12.85 $ 2,189,679 $ 995,000
TOTAL 37 380,393 9.9 $ 14.66 $ 5,575,044 $ 1,546,000
Kathy Klein
Vice President
Corporate Communications
(301) 998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER OPERATING RESULTS
October 29, 1997
Rockville, Maryland
Federal Realty Investment Trust (NYSE:FRT) today reported funds from
operations (FFO) of $20.0 million or $.51 per share, for the quarter ended
September 30, 1997, compared to $17.2 million or $.50 per share for the same
period last year. On a year-to-date basis, the company reported FFO of $58.9
million or $1.52 per share for the nine months ended September 30, 1997, a per
share increase of 5% over FFO of $48.0 million or $1.45 per share for the same
period in the prior year.
A comparison of property operations for the third quarter of 1997 versus
the third quarter of 1996 shows the following:
. Rental income increased 13% to $46.1 million in 1997 from $40.9 million in
1996. When adjusted to exclude properties acquired and sold during 1996
and 1997, rental income increased 3% to $40.9 million in 1997 from $39.7
million in 1996.
. During the third quarter of 1997, the Trust signed leases for a total
370,000 square feet. On a same space basis, the Trust re-leased 271,000
square feet at an average increase in rent per square foot of 13%. The
weighted average rent on these leases was $16.12 per square foot compared
to the previous average rent of $14.21 per square foot for the same spaces.
. Same property occupancy stood at 95% at both September 30, 1997 and 1996.
At September 30, 1997, the Trust's overall portfolio was 95% leased
compared to 93% 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. Federal's
FFO performance through the first nine months of 1997 reflects the continued
strength of the retail fundamentals at work in our core markets. Demand for our
retail space remains strong and is fueling rental income growth and improved
occupancies. In addition, we are pleased with our aggressive pace of
acquisitions. Year-to-date our acquisition activity now totals approximately
$146 million and is on pace for roughly $200 million in total closings by year
end. We are also taking advantage of the strong real estate markets to dispose
of non-core properties. So far in 1997, the Trust has sold three properties
generating proceeds of approximately $22 million."
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 96 retail properties, consisting of
neighborhood and community shopping centers and main street retail properties,
located in strategic metropolitan markets across the United States. These
markets include Boston, New York, Philadelphia, Washington, D.C., Chicago,
Portland, San Francisco, Los Angeles, San Jose and San Diego.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962 and has increased its dividend rate for
30 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 1997 1996 1997 1996
- ----------------- --------- --------- --------- ---------
REVENUES
Rental income $ 46,109 $ 40,895 $ 137,090 $ 121,555
Interest 1,712 1,229 4,660 3,148
Other income 1,992 2,213 7,512 6,976
--------- --------- --------- ---------
49,813 44,337 149,262 131,679
EXPENSES
Rental 10,191 8,793 31,196 30,510
Real estate taxes 4,936 4,142 14,402 12,111
Interest 11,964 11,271 35,952 33,559
Administrative 1,968 2,252 6,562 6,074
Depreciation and amortization 10,325 9,449 30,853 28,125
--------- --------- --------- ---------
39,384 35,907 118,965 110,379
--------- --------- --------- ---------
OPERATING INCOME BEFORE INVESTORS'
SHARE OF OPERATIONS AND (LOSS)/GAIN
ON SALE OF REAL ESTATE 10,429 8,430 30,297 21,300
Investor's share of operations (281) (307) (862) (254)
--------- --------- --------- ---------
INCOME BEFORE (LOSS)/GAIN ON SALE OF
REAL ESTATE 10,148 8,123 29,435 21,046
(Loss)/gain on sale of real estate (659) --- 6,375 ---
--------- --------- --------- ---------
NET INCOME $ 9,489 $ 8,123 $ 35,810 $ 21,046
========= ========= ========= =========
EARNINGS PER SHARE $ 0.24 $ 0.24 $ 0.92 $ 0.63
========= ========= ========= =========
FUNDS FROM OPERATIONS
Net income $ 9,489 $ 8,123 $ 35,810 $ 21,046
Add: depreciation and amortization
of real estate assets 9,316 8,459 27,734 25,156
Add: amortization of initial direct
costs of leases 545 592 1,693 1,777
Less: loss/(gain) on sale of real
estate 659 --- (6,375) ---
--------- --------- --------- ---------
Funds from operations $ 20,009 $ 17,174 $ 58,862 $ 47,979
========= ========= ========= =========
Funds from operations per share $ 0.51 $ 0.50 $ 1.52 $ 1.45
--------- --------- --------- ---------
Weighted average shares outstanding 39,242 34,236 38,838 33,193
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September 30, December 31,
BALANCE SHEET DATA 1997 1996
- ------------------ ------------- ------------
ASSETS
Real estate, at cost $ 1,299,321 $ 1,147,865
Accumulated depreciation and amortization (238,815) (223,553)
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1,060,506 924,312
Mortgage notes receivable 38,256 27,913
Cash and investments 4,687 11,041
Receivables 17,113 17,294
Other assets 35,742 54,746
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TOTAL ASSETS $ 1,156,304 $ 1,035,306
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Obligations under capital leases & mortgages payable $ 222,160 $ 229,189
Notes payable 69,555 66,106
Senior Notes 255,000 215,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 69,995 60,837
SHAREHOLDERS' EQUITY 464,305 388,885
------------- ------------
$ 1,156,304 $ 1,035,306
============= ============
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.
