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, 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
----------------------------------------------- ----------
(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, 1997.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at December 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
//Cecily A. Ward//
Date: March 11, 1998 --------------------------
Cecily A. Ward
Vice President, Controller
-2-
EXHIBIT INDEX
Exh No. Exhibit Page No.
- ------- ------- --------
99 Supplemental portfolio information at December 31, 1997 4
-3-
Exhibit 99
FEDERAL REALTY INVESTMENT TRUST
================================================================================
Supplemental Information
December 31, 1997
================================================================================
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. Major Tenants by Revenue Contribution................................ E-9
6. Sales/Occupancy Costs
Overall, Anchor & Small Shop...................................... E-10
7. Press Release........................................................ E-11
8. Glossary of Terms.................................................... E-14
================================================================================
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (EXCLUDING CAPITAL LEASES AND INTEREST RATE SWAPS)
DECEMBER 31, 1997
================================================================================
Balance
Maturity Rate (in thousands)
----------- ------ -------------
MORTGAGES
Barracks Road 06/01/98 9.77% $21,022
Falls Plaza 06/01/98 9.77% 4,180
Old Keene Mill 06/01/98 9.77% 6,852
West Falls 06/01/98 9.77% 4,796
Loehmanns Plaza 07/21/98 9.75% 6,324
Federal Plaza 03/10/01 8.95% 28,059
Tysons Station 09/01/01 9.875% 4,206
Bristol 08/01/98 9.65% 10,794
Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable ## 9,400
$ 95,633
========
NOTES PAYABLE
Revolving credit facilities libor + .65% $114,791
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% 2,779
Other various various 253
--------
$119,028
========
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 $420,759 77.21%
Total variable rate debt 124,191 22.79%
-------- ------
Total debt $544,950 100.00%
======== ======
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 twelve
months ended December 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.
FEDERAL REALTY INVESTMENT TRUST
PERCENTAGE LEASED ANALYSIS
December 31, 1997
================================================================================
OVERALL OCCUPANCY
(Quarter to Quarter Analysis) December 31, 1997 December 31, 1996
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 13,518,197 12,919,532 96% 12,733,461 11,935,107 94%
Rollingwood Apartments (# of units) 282 279 99% 282 278 99%
OVERALL OCCUPANCY
(Rolling 12 Months) December 31, 1997 September 30, 1997
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 13,518,197 12,919,532 96% 12,856,798 12,202,952 95%
Rollingwood Apartments (# of units) 282 279 99% 282 282 100%
OVERALL OCCUPANCY
(Rolling 12 Months) June 30, 1997 March 31, 1997
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 12,770,492 11,986,868 94% 13,046,013 12,228,746 94%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
================================================================================
SAME CENTER OCCUPANCY
(Quarter to Quarter Comparison) December 31, 1997 December 31, 1996
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 12,188,308 11,639,769 95% 11,605,119 11,030,753 95%
Rollingwood Apartments (# of units) 282 279 99% 282 278 99%
SAME CENTER OCCUPANCY
(Rolling 12 Months) At December 31, 1997 At September 30, 1997
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 12,188,308 11,639,769 95% 11,096,212 10,577,015 95%
Rollingwood Apartments (# of units) 282 279 99% 282 282 100%
SAME CENTER OCCUPANCY
(Rolling 12 Months) At June 30, 1997 At March 31, 1997
---------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 11,150,587 10,531,352 94% 11,425,601 10,762,859 94%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
FEDERAL REALTY INVESTMENT TRUST
ECONOMIC OCCUPANCY ANALYSIS
DECEMBER 31, 1997
================================================================================
OVERALL ECONOMIC OCCUPANCY
(Quarter to Quarter Analysis) December 31, 1997 December 31, 1996
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 13,518,197 12,757,485 94% 12,733,461 11,681,107 92%
Rollingwood Apartments (# of units) 282 279 99% 282 277 98%
OVERALL ECONOMIC OCCUPANCY
(Rolling 12 Months) December 31, 1997 September 30, 1997
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 13,518,197 12,757,485 94% 12,856,798 12,056,781 94%
Rollingwood Apartments (# of units) 282 279 99% 282 276 98%
OVERALL ECONOMIC OCCUPANCY
(Rolling 12 Months) June 30, 1997 March 31, 1997
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 12,770,492 11,724,538 92% 13,046,013 11,982,214 92%
Rollingwood Apartments (# of units) 282 280 99% 282 276 98%
================================================================================
SAME CENTER ECONOMIC OCCUPANCY
(Quarter to Quarter Comparison) December 31, 1997 December 31, 1996
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 12,188,308 11,486,609 94% 11,605,119 10,808,981 93%
Rollingwood Apartments (# of units) 282 279 99% 282 277 98%
SAME CENTER ECONOMIC OCCUPANCY
(Rolling 12 Months) At December 31, 1997 At September 30, 1997
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 12,188,308 11,486,609 94% 11,096,212 10,433,345 94%
Rollingwood Apartments (# of units) 282 279 99% 282 276 98%
SAME CENTER ECONOMIC OCCUPANCY
(Rolling 12 Months) At June 30, 1997 At March 31, 1997
-------------------------------------- --------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 11,150,587 10,269,022 92% 11,425,601 10,518,375 92%
Rollingwood Apartments (# of units) 282 280 99% 282 276 98%
Federal Realty Investment Trust
Regional Occupancy Analysis
December 31, 1997
====================================================
Total Square Occupancy
Region Footage 12/31/97
- ---------------------- ------------ ---------
Northeast 5,999,671 96%
Mid-Atlantic 5,315,788 97%
Mid-West 797,007 97%
Southeast 634,076 81%
West Coast 771,655 95%
====================================================
Total Square Occupancy
Region Footage 12/31/97
- ---------------------- ------------ ---------
Northeast 5,999,671 96%
Anchor 3,643,035 98%
Small Shops 2,356,636 93%
Mid-Atlantic 5,315,788 97%
Anchor 2,472,267 100%
Small Shops 2,843,521 94%
Mid-West 797,007 97%
Anchor 443,549 97%
Small Shops 353,458 96%
Southeast 634,076 81%
Anchor 302,275 76%
Small Shops 331,801 85%
West Coast 771,655 95%
Anchor 88,095 100%
Small Shops 683,560 94%
FEDERAL REALTY INVESTMENT TRUST
LEASING ACTIVITY
DECEMBER 31, 1997
================================================================================
COMPARABLE
WEIGHTED AVERAGE PRIOR
NUMBER OF SQUARE AVERAGE LEASE RENT PER
ROLLING 12 MONTHS LEASES SIGNED FEET TERM (YEARS) SQUARE FOOT
- ------------------- ------------- ---------- ------------- -------------
4th Quarter 1997 72 272,820 9.2 $17.07
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
TOTAL 272 1,120,984 8.6 $14.01
ESTIMATED
AVERAGE CURRENT PERCENTAGE TENANT
RENT PER ANNUALIZED INCREASE IMPROVEMENT
ROLLING 12 MONTHS SQUARE FOOT INCREASE IN RENT OVER PRIOR RENT COSTS
- ------------------- --------------- ---------------- --------------- -----------
4th Quarter 1997 $19.60 $690,291 15% $ 923,000
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
TOTAL $16.40 $2,682,842 17% $8,201,000
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
- ------------------- ------------- -------- ------------ --------------- ---------- -----------
4th Quarter 1997 10 40,744 11.9 $21.03 $857,046 $90,000
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
TOTAL 39 250,688 11.1 $16.92 $4,242,411 $641,000
FEDERAL REALTY INVESTMENT TRUST
LEASES EXPIRING
Total Percent Average
Square Feet of Total Rent Per
Expiring(1) Portfolio(2) Square Foot
----------- ------------ -----------
1998 268,771 2% $16.51
1999 615,310 4% $12.20
2000 402,439 3% $19.57
2001 391,837 3% $19.63
2002 408,824 3% $19.81
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1997: 14,528,345
FEDERAL REALTY INVESTMENT TRUST
LEASES EXPIRING - ANCHORS AND SMALL SHOPS
Total Percent
Square Feet of Total
Expiring (1) Portfolio(2)
------------- ------------
1998
Anchor 37,516 Less than 1%
Small Shop 231,255 2%
1999
Anchor 279,402 2%
Small Shop 335,908 2%
2000
Anchor 23,075 Less than 1%
Small Shop 379,364 3%
2001
Anchor 0 Less than 1%
Small Shop 391,837 3%
2002
Anchor 66,670 Less than 1%
Small Shop 342,154 2%
(1) Excludes lease expirations with options
(2) Total square footage December 31, 1997: 14,528,345
FEDERAL REALTY INVESTMENT TRUST
MAJOR TENANTS BY REVENUE CONTRIBUTION
Square Pecent of
Tenant Footage Revenue (1)
------- -----------
Bed, Bath & Beyond, Inc. 250,961 2,271%
Barnes & Noble, Inc. 149,125 1.933%
The TJX Companies (Marshalls/TJ Maxx) 246,026 1.884%
CVS Corporation 126,689 1.834%
Toys R Us, Inc. 185,336 1.535%
Viacom International, Inc. (Blockbuster/Discovery Zone) 102,513 1.239%
MTS, Inc. (Tower Records) 66,713 1.138%
Saks & Company 127,550 0.936%
Home Depot, Inc. 113,587 0.913%
Giant, Inc. 74,822 0.824%
(1) Balances consist of 1997 minimum and percentage rent charges
FEDERAL REALTY INVESTMENT TRUST
1997 SALES/OCCUPANCY COSTS
AVERAGE AVERAGE
AVERAGE OCCUPANCY OCCUPANCY COSTS
SALES PER COST PER AS PERCENTAGE
SQUARE FOOT SQUARE FOOT OF SALES
----------- ----------- ---------------
REPORTING TENANTS* $282.17 $15.05 5.3%
REPORTING ANCHOR TENANTS $295.78 $10.53 3.5%
REPORTING SMALL SHOP TENANTS $260.82 $22.81 8.8%
* Includes only those tenants that have 12 months of reported sales in 1997
Kathy Klein
Vice President
Corporate Communications
(301) 998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
1997 OPERATING RESULTS
Rockville, Maryland
February 11, 1998
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the year ended December 31, 1997 increased 22% to $79.7 million
from $65.3 million in 1996. On a per share basis, funds from operations rose
5.7% to $2.05 per share in 1997 from $1.94 in 1996.
Funds from operations for the fourth quarter of 1997 rose 21% to $20.9
million or $.53 per share from $17.3 million or $.50 per share in the fourth
quarter of 1996.
A comparison of property operations for the year ended 1997 versus 1996
shows the following:
. Rental income increased 14% to $188.5 million in 1997 from $164.9 million
in 1996. When adjusted to exclude properties acquired and sold during
1996 and 1997, rental income increased 5% to $165.6 million in 1997 from
$158.0 million in 1996.
. During 1997, the Trust signed leases for a total 1.4 million square feet of
retail space. On a same space basis, the Trust re-leased 1.1 million square
feet at an average increase in rent per square foot of 17%. The weighted
average rent on these leases was $16.40 per square foot compared to the
previous average rent of $14.01 per square foot.
-More-
. During 1996, the Trust leased a total 1.6 million square feet. On a same
space basis, 1.3 million square feet was re-leased 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 per square
foot of $12.94.
. Same property occupancy stood at 95% at year end December 31, 1997 and
1996. The Trust's overall portfolio was 96% leased compared to 94% a year
ago.
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "Although the 5.7% increase in FFO per share was well below our
target level for long-term growth, in many other ways, 1997 was a very
successful year. Demand for our retail space remains strong as evidenced by our
rental income growth and improved occupancies. We continue to benefit from our
current redevelopment efforts and we've strengthened our development
capabilities to enable us to maximize and expand our current $400 million
pipeline of retail and mixed use urban development and redevelopment
opportunities. Our expansion to the west coast and New York metropolitan area is
going well. With the addition of these new growth markets, we were able to
exceed our acquisition objective for the year. As a company, we are very
focused on accelerating our funds from operations growth over the long term and
creating shareholder value."
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 102 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.
###
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
OPERATING RESULTS 1997 1996 1997 1996
- ----------------- ---------- -------- ------------- -------------
REVENUES
Rental income $51,439 $43,332 $ 188,529 $ 164,887
Interest and other income 1,377 1,204 6,037 4,352
Other property income 2,193 2,840 9,705 9,816
------- ------- ---------- ----------
55,009 47,376 204,271 179,055
EXPENSES
Rental 11,648 10,177 42,844 40,687
Real estate taxes 5,123 4,300 19,525 16,411
Interest 11,336 11,996 47,288 45,555
Administrative 3,231 3,026 9,793 9,100
Other charges 1,951 - 1,951 -
Depreciation and amortization 10,546 10,029 41,399 38,154
------- ------- ---------- ----------
43,835 39,528 162,800 149,907
------- ------- ---------- ----------
OPERATING INCOME BEFORE INVESTORS' SHARE OF
OPERATIONS AND (LOSS)/GAIN ON SALE OF REAL ESTATE 11,174 7,848 41,471 29,148
Investor's share of operations (480) (140) (1,342) (394)
------- ------- ---------- ----------
INCOME BEFORE (LOSS)/GAIN ON SALE OF REAL ESTATE 10,694 7,708 40,129 28,754
(Loss)/gain on sale of real estate 0 (12) 6,375 (12)
------- ------- ---------- ----------
Net income $10,694 $ 7,696 $ 46,504 $ 28,742
Dividends on preferred stock (1,877) - (1,877) -
------- ------- ---------- ----------
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS 8,817 7,696 44,627 28,742
======= ======= ========== ==========
Earnings per common share, basic $0.23 $0.23 $1.16 $0.87
======= ======= ========== ==========
Earnings per common share, diluted $0.22 $0.22 $1.14 $0.86
======= ======= ========== ==========
Weighted average shares outstanding, basic 38,849 34,244 38,475 33,175
Weighted average shares outstanding, diluted 39,436 34,705 38,988 33,573
FUNDS FROM OPERATIONS
Net income available for common shareholders $ 8,817 $ 7,696 $ 44,627 $ 28,742
Add: depreciation and amortization
of real estate assets 9,547 8,972 37,281 34,128
Add: amortization of initial direct
costs of leases 556 595 2,249 2,372
Add: loss/(gain) on sale and nonrecurring items 1,951 12 (4,424) 12
------- ------- ---------- ----------
Funds from operations $20,871 $17,275 $ 79,733 $ 65,254
======= ======= ========== ==========
Funds from operations per share $0.53 $0.50 $2.05 $1.94
======= ======= ========== ==========
December 31, December 31,
BALANCE SHEET DATA 1997 1996
- ------------------ ------------ ------------
ASSETS
Real estate, at cost $1,453,639 $1,147,865
Accumulated depreciation and amortization (247,497) (223,553)
---------- ----------
1,206,142 924,312
Mortgage notes receivable 38,360 27,913
Cash and investments 17,043 11,041
Receivables 18,794 17,294
Other assets 36,234 54,746
---------- ----------
TOTAL ASSETS $1,316,573 $1,035,306
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Obligations under capital leases & mortgages payable $ 221,573 $ 229,189
Notes payable 119,028 66,106
Senior Notes 255,000 215,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 91,873 60,837
SHAREHOLDERS' EQUITY 553,810 388,885
---------- ----------
$1,316,573 $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.
