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) March 31, 1997
Federal Realty Investment Trust
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(Exact name of registrant as specified in its charter)
District of Columbia 1-7533 52-0782497
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(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 March
31, 1997.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at March 31, 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: May 7, 1997 /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 March 31, 1997 4
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FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
March 31, 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)
March 31, 1997
- --------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
Mortgages
Barracks Road 06/01/98 9.77% $21,318
Falls Plaza 06/01/98 9.77% 4,239
Old Keene Mill 06/01/98 9.77% 6,948
West Falls 06/01/98 9.77% 4,864
Loehmanns Plaza 07/21/98 9.75% 6,392
Bristol 08/01/98 9.65% 10,964
Federal Plaza 03/10/01 8.95% 28,352
Tysons Station 09/01/01 9.875% 4,251
Northeast 12/31/01 participating 1,500
Escondido (Municipal bonds) 10/01/16 Variable ## 9,400
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$98,228
============
Notes payable
Revolving credit facilities libor + .75% $64,245
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% 2,837
Note issued in connection with lease 11/13/95 none 2,500
Other various various 45
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$70,832
============
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
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$290,289
============
Total fixed rate debt $384,204 83.64%
Total variable rate debt 75,145 16.36%
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Total debt $459,349 100.00%
============ ========
Weighted average interest rate:
Fixed rate debt 7.74%
Variable on revolving facilities 6.30%**
*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 three
months ended March 31, 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.
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Federal Realty Investment Trust
Percentage Leased Analysis
March 31, 1997
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- --------------------------------------------------------------------------------------------------------------------------
Overall Occupancy
(Quarter to Quarter Analysis) March 31, 1997 March 31, 1996
------------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- --------------- ------------ -------------- ------------ -------------- -----------
Retail Properties (square feet) 13,046,013 12,228,746 94% 12,480,181 11,796,821 95%
Rollingwood Apartments (# of units) 282 281 99% 282 274 97%
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%
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%
- --------------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) March 31, 1997 March 31, 1996
------------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------- --------------- ------------ -------------- ------------ -------------- -----------
Retail Properties (square feet) 11,425,601 10,762,859 94% 11,223,075 10,605,961 95%
Rollingwood Apartments (# of units) 282 281 99% 282 274 97%
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%
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%
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Federal Realty Investment Trust
Economic Occupancy Analysis
March 31, 1997
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Overall Economic Occupancy
(Quarter to Quarter Analysis) March 31, 1997 March 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% 12,480,181 11,544,594 93%
Rollingwood Apartments (# of units) 282 276 98% 282 274 97%
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%
Overall Economic Occupancy
(Rolling 12 Months) 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%
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Same Center Economic Occupancy
(Quarter to Quarter Comparison) March 31, 1997 March 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% 11,223,075 10,413,790 93%
Rollingwood Apartments (# of units) 282 276 98% 282 274 97%
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%
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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%
Federal Realty Investment Trust
Regional Occupancy Analysis
March 31, 1997
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Total Square Occupancy
Region Footage 03/31/97
D.C./Baltimore 3,947,689 95%
Philadelphia 2,199,504 96%
New York/New Jersey 1,965,893 98%
Central Virginia 1,174,209 94%
Mid-West 987,960 89%
New England 1,110,218 96%
Southern California 626,195 83%
Other 1,034,345 83%
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Total Square Occupancy
Region Footage 03/31/97
D.C./Baltimore 3,947,689 95%
Anchor 1,961,358 98%
Small Shops 1,986,331 92%
Philadelphia 2,199,504 96%
Anchor 1,099,199 98%
Small Shops 1,100,305 94%
New York/New Jersey 1,965,893 98%
Anchor 1,353,264 100%
Small Shops 612,629 95%
Central Virginia 1,174,209 94%
Anchor 564,322 100%
Small Shops 609,887 89%
Mid-West 987,960 89%
Anchor 567,984 85%
Small Shops 419,976 94%
New England 1,110,218 96%
Anchor 564,207 100%
Small Shops 546,011 93%
Southern California 626,195 83%
Anchor 152,944 100%
Small Shops 473,251 78%
Other 1,034,345 83%
Anchor 522,790 86%
Small Shops 511,555 79%
Federal Realty Investment Trust
Leasing Activity
March 31, 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
- ----------------------- --------------------- ------------------ ----------------------- ---------------------------
1st Quarter 1997 58 220,452 6.9 $11.09
4th Quarter 1996 85 469,455 10.7 $10.88
3rd Quarter 1996 89 298,546 6.1 $14.17
2nd Quarter 1996 81 272,984 6.9 $14.80
Total 313 1,261,437 8.1 $12.54
Non-Comparable
Weighted
Average
Number of Square Lease Average Rent
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot
- ----------------------- ---------------------- ----------------- ----------------------- ---------------------------
1st Quarter 1997 7 29,178 12.4 $19.86
4th Quarter 1996 8 170,449 18.3 $12.85
3rd Quarter 1996 5 19,918 8.3 $13.89
2nd Quarter 1996 8 31,194 8.7 $8.10
Total 28 250,739 15.7 $13.16
Comparable
Estimated
Average Current Percentage Tenant
Rent Per Annualized Increase Improvement
Rolling 12 Months Square Foot Increase in Rent over Prior Rent Costs
- ----------------------- ---------------------- ------------------------ ---------------------- --------------------
1st Quarter 1997 $14.88 $836,236 34% $3,162,000
4th Quarter 1996 $15.94 $2,376,264 47% $6,988,000
3rd Quarter 1996 $16.05 $562,179 13% $1,740,000
2nd Quarter 1996 $15.52 $196,312 5% $2,042,000
Total $15.69 $3,970,991 25% $13,932,000
Non-Comparable
Estimated
Annualized Tenant
Current Improvement
Rolling 12 Months Rent Costs
- ----------------------- ---------------------- ------------------------
1st Quarter 1997 $579,585 $70,000
4th Quarter 1996 $2,189,679 $995,000
3rd Quarter 1996 $276,607 $380,000
2nd Quarter 1996 $252,789 $390,000
Total $3,298,660 $1,835,000
Mary Jane Morrow
Senior Vice President
Finance & Treasurer
(301) 998-8321
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 1997 OPERATING RESULTS
Rockville, Maryland
May 7, 1997
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the first quarter of 1997 increased 27% to $19.0 million from
$15.0 million in the first quarter of 1996. On a per share basis, funds from
operations rose 9% to $.50 in the first quarter of 1997 from $.46 in the
comparable quarter of 1996.
A comparison of property operations for the first quarter of 1997 versus
the first quarter of 1996 shows the following:
. Rental income increased 8% to $43.9 million in 1997 from $40.7 million in
1996. When adjusted to exclude properties acquired and sold during 1996
and 1997, rental income increased 1% to $40.8 million in 1997 from $40.4
million in 1996.
. During the first quarter of 1997, the Trust signed leases for a total
250,000 square feet. On a same space basis, the Trust re-leased 220,000
square feet at an average increase in rent per square foot of 34%. The
weighted average rent on these leases was $14.88 per square foot compared
to the previous average rent of $11.09 per square foot.
. Same property occupancy stood at 94% at March 31, 1997 compared to 95% a
year ago. At March 31, 1997, the Trust's overall portfolio was 94% leased
compared to 95% a year ago.
-More-
Commenting on the quarter, Steven J. Guttman, President and Chief Executive
Officer stated, "We are pleased that 1997 is off to a good start. Our core
portfolio continues to perform well and we closed on a record $83 million of
acquisitions during the first quarter."
Year to date, the Trust has acquired six retail properties containing 564,000
square feet for a total cost of approximately $90 million. The acquisitions
include the purchase of two shopping centers; Pike 7 Plaza, located in Tysons
Corner, Virginia and Town & Country Village, located in San Jose, California;
and four main street retail buildings; two buildings on Third Street Promenade
in Santa Monica, California; one building in San Diego's Gaslamp Quarter, and
one building in Chicago, Illinois.
In addition, in April the Trust acquired Terranomics Retail Services, Inc., a
San Francisco based retail brokerage/property management firm for $2.0 million.
Founded in 1970, Terranomics is the leading West Coast retail real estate
services firm. Terranomics Retail Services currently represent more than 18
million square feet of retail space across the country, in a leasing or
management capacity. The company represents more than 40 retailers, including
Polo/Ralph Lauren, Barnes & Noble, Office Depot, Hollywood Video and Sears Home
Life. Terranomics will provide property management and leasing services for the
Trust's West Coast properties.
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 92 retail properties, consisting of
neighborhood and community shopping centers and main street retail buildings,
located in strategic metropolitan markets across the United States. These
markets include Boston, New York/New Jersey, Philadelphia, metropolitan
Washington D.C., Chicago and 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
March 31,
OPERATING RESULTS 1997 1996
- ----------------- ---- ----
Revenues
Rental income $43,920 $40,747
Interest 1,500 863
Other income 3,227 2,162
----- -----
48,647 43,772
Expenses
Rental 10,216 11,793
Real estate taxes 4,574 3,924
Interest 11,989 11,149
Administrative 2,101 1,686
Depreciation and 10,124 9,332
amortization ------ -----
39,004 37,884
------ ------
Operating income before investors' share of
operations 9,643 5,888
Investors' share of operations (332) 138
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Net income $9,311 $6,026
====== ======
Earnings per share $0.24 $0.19
===== =====
Funds from Operations
Net income $9,311 $6,026
Add: depreciation and amortization
of real estate assets 9,064 8,342
Add: amortization of initial direct
costs of leases 584 593
--- ---
Funds from operations $18,959 $14,961
======= =======
Funds from operations $0.50 $0.46
per share ===== =====
Weighted average shares outstanding 38,033 32,265
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March 31, December 31,
BALANCE SHEET DATA 1997 1996
- ------------------ ---- ----
Assets
Real estate, at cost $1,251,867 $1,147,865
Accumulated depreciation and amortization (232,487) (223,553)
--------- ---------
1,019,380 924,312
Mortgage notes receivable 37,406 27,913
Cash 11,762 11,041
Receivables 16,132 17,294
Other assets 30,409 54,746
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Total assets $1,115,089 $1,035,306
========== ==========
Liabilities and Shareholders' Equity
Obligations under capital leases &
mortgages payable $224,781 $229,189
Notes payable 70,832 66,106
Senior Notes 215,000 215,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 60,649 60,837
Shareholders' Equity 468,538 388,885
------- -------
$1,115,089 $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.
