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, 1998
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, 1998.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at March 31, 1998
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 11, 1998 //Cecily A. Ward//
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Cecily A. Ward
Vice President, Controller
-2-
EXHIBIT INDEX
Exh No. Exhibit Page No.
- ------- ------- --------
99 Supplemental portfolio information at March 31, 1998 4
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FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
March 31, 1998
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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, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
MORTGAGES
Barracks Road 06/01/98 9.77% $20,918
Falls Plaza 06/01/98 9.77% 4,166
Old Keene Mill 06/01/98 9.77% 6,830
West Falls 06/01/98 9.77% 4,781
Loehmanns Plaza 07/21/98 9.75% 6,299
Federal Plaza 03/10/01 8.95% 27,958
Tysons Station 09/01/01 9.875% 4,190
Bristol 08/01/98 9.65% 10,735
Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable ## 9,400
$95,277
==========
NOTES PAYABLE
Revolving credit facilities libor + .65% $63,000
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,112
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,759
Other various various 241
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$67,112
==========
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
6.74% Medium Term Notes * 03/10/06 6.370% 39,500
6.99% Medium Term Notes * 03/10/06 6.894% 40,500
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$410,289
==========
Total fixed rate debt $500,278 87.36%
Total variable rate debt 72,400 12.64%
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Total debt $572,678 100.00%
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Weighted average interest rate:
------------------------------
Fixed rate debt 7.48%
Variable on revolving facilities 6.20%**
Variable on muncipal bonds ##
*The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
**Weighted average interest rate on revolving credit facilities for three months
ended March 31,1998.
## 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
March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------
Overall Occupancy
(Quarter to Quarter Analysis) March 31, 1998 March 31, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable square feet) 13,518,261 12,923,203 96% 13,051,013 12,233,746 94%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
Overall Occupancy
(Rolling 12 Months) March 31, 1998 December 31, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable square feet) 13,518,261 12,923,203 96% 13,518,197 12,919,532 96%
Rollingwood Apartments (# of units) 282 280 99% 282 279 99%
Overall Occupancy
(Rolling 12 Months) September 30, 1997 June 30, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable 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%
- ---------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) March 31, 1998 March 31, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable square feet) 11,652,173 11,119,804 95% 11,541,536 10,936,017 95%
Rollingwood Apartments (# of units) 282 280 99% 282 281 99%
Same Center Occupancy
(Rolling 12 Months) At March 31, 1998 At December 31, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable square feet) 11,652,173 11,119,804 95% 12,188,308 11,639,769 95%
Rollingwood Apartments (# of units) 282 280 99% 282 279 99%
Same Center Occupancy
(Rolling 12 Months) At September 30, 1997 At June 30, 1997
----------------------------------- ------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ---------- ---------- ----------- ---------- ---------- -----------
Retail Properties (leasable 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%
Federal Realty Investment Trust
Economic Occupancy Analysis
March 31, 1998
- --------------------------------------------------------------------------------------------------------------------
Overall Economic Occupancy
(Quarter to Quarter Analysis) March 31, 1998 March 31, 1997
-------------------------------------- ----------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- --------------------------------------- ----------- ------------ --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 13,518,261 12,619,318 93% 13,051,013 11,987,214 92%
Rollingwood Apartments (# of units) 282 280 99% 282 276 98%
Overall Economic Occupancy
(Rolling 12 Months) March 31, 1998 December 31, 1997
-------------------------------------- ----------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- --------------------------------------- ----------- ----------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 13,518,261 12,619,318 93% 13,518,197 12,757,485 94%
Rollingwood Apartments (# of units) 282 280 99% 282 279 99%
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 (leasable 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%
- ------------------------------------------------------------------------------------------------------------------------------------
Same Center Economic Occupancy
(Quarter to Quarter Comparison)
March 31, 1998 March 31, 1997
-------------------------------------- ----------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- --------------------------------------- ----------- ----------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 11,652,173 10,819,572 93% 11,541,536 10,750,163 93%
Rollingwood Apartments (# of units) 282 280 99% 282 276 98%
Same Center Economic Occupancy
(Rolling 12 Months)
At March 31, 1998 At December 31, 1997
-------------------------------------- ----------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- --------------------------------------- ----------- ----------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 11,652,173 10,819,572 93% 12,188,308 11,486,609 94%
Rollingwood Apartments (# of units) 282 280 99% 282 279 99%
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 (leasable 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%
FEDERAL REALTY INVESTMENT TRUST
REGIONAL OCCUPANCY ANALYSIS
MARCH 31, 1998
- ---------------------------------------------------------
Total Square Occupancy
Region Footage 03/31/98
- ------------------------- -------------- -------------
Northeast 5,948,217 97%
Mid-Atlantic 5,266,137 97%
Mid-West 900,288 96%
Southeast 634,076 77%
West Coast 769,543 93%
- ---------------------------------------------------------
Total Square Occupancy
Region Footage 03/31/98
- ------------------------- -------------- -------------
Northeast 5,948,217 97%
Anchor 3,626,857 99%
Small Shops 2,321,360 92%
Mid-Atlantic 5,266,137 97%
Anchor 2,551,844 100%
Small Shops 2,714,293 94%
Mid-West 900,288 96%
Anchor 517,014 97%
Small Shops 383,274 94%
Southeast 634,076 77%
Anchor 302,245 67%
Small Shops 331,831 85%
West Coast 769,543 93%
Anchor 88,095 100%
Small Shops 681,448 93%
FEDERAL REALTY INVESTMENT TRUST
LEASING ACTIVITY
MARCH 31, 1998
________________________________________________________________________________
COMPARABLE
WEIGHTED AVERAGE PRIOR AVERAGE CURRENT
NUMBER OF SQUARE AVERAGE LEASE RENT PER RENT PER ANNUALIZED
ROLLING 12 MONTHS LEASES SIGN FEET TERM (YEARS) SQUARE FOOT SQUARE FOOT INCREASE IN RENT
------------------- ----------- ------ -------------- ----------- ----------- ----------------
1st Quarter 1998 78 304,204 7.0 $15.38 $17.43 $623,425
4th Quarter 1997 72 272,820 9.2 $17.07 $19.60 $690,291
3rd Quarter 1997 69 270,550 7.9 $14.21 $16.12 $518,342
2nd Quarter 1997 73 357,162 9.6 $13.32 $15.11 $637,973
Total 292 1,204,736 8.5 $14.89 $16.94 $2,470,031
ESTIMATED
PERCENTAGE TENANT
INCREASE IMPROVEMENT
ROLLING 12 MONTHS OVER PRIOR RENT COSTS
------------------- ---------------- -----------
1st Quarter 1998 13% $990,000
4th Quarter 1997 15% $923,000
3rd Quarter 1997 13% $1,269,000
2nd Quarter 1997 13% $2,847,000
Total 14% $6,029,000
NON-COMPARABLE
ESTIMATED
WEIGHTED ANNUALIZED TENANT
NUMBER OF SQUARE AVERAGE LEASE AVERAGE RENT CURRENT IMPROVEMENT
ROLLING 12 MONTHS LEASES SIGN FEET TERM (YEARS) PER SQUARE FOOT RENT COSTS
---------------------- ------------ -------- -------------- ----------------- ----------- -----------
1st Quarter 1998 10 55,877 12.1 $22.49 $1,256,594 $585,000
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
Total 42 277,387 11.2 $17.73 $4,919,420 $1,156,000
Kathy Klein
Vice President
Corporate Communications
301/998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 1998 OPERATING RESULTS
Rockville, Maryland
May 11, 1998
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the first quarter of 1998 increased 12% to $21.2 million from
$19.0 million in the first quarter of 1997. On a per share basis, funds from
operations rose 6% to $.53 in the first quarter of 1998 from $.50 in the
comparable quarter of 1997.
A comparison of property operations for the first quarter of 1998 versus
the first quarter of 1997 shows the following:
. Rental income increased 20% to $52.5 million in 1998 from $43.9 million in
1997. When adjusted to exclude properties acquired and sold during 1997
and 1998, rental income increased 6% to $45.0 million in 1998 from $42.6
million in 1997.
. During the first quarter of 1998, the Trust signed leases for a total
360,000 square feet of retail space. On a same space basis, the Trust re-
leased 304,000 square feet at an average increase in rent per square foot
of 13%. The weighted average rent on these leases was $17.43 per square
foot compared to the previous average rent of $15.38 per square foot.
. At March 31, 1998, the Trust's overall portfolio was 96% leased compared to
94% a year ago. Same property occupancy stood at 95% at both March 31,
1998 and 1997.
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "We are pleased that 1998 is off to a good start. Demand for our
retail space remains strong as evidenced by our rental income growth and high
occupancy levels. In addition, we continue to benefit from our redevelopment
efforts and to expand our development pipeline."
Year-to-date, the Trust has acquired 13 retail properties containing
259,000 square feet for an investment of approximately $24 million. The
acquisitions include the purchase of nine retail buildings on Houston Street in
San Antonio, Texas; one retail building on Third Street Promenade in Santa
Monica, California; one building on Bethesda Avenue in Bethesda, Maryland; and
two retail buildings on Mill Avenue in Tempe, Arizona.
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 113 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, San
Antonio, 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.
The Trust will hold its First Quarter 1998 Conference Call on Tuesday,
May 12th at 11:00 am Eastern Time. To participate on the call, please dial
(913) 981-5502.
###
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended
March 31,
OPERATING RESULTS 1998 1997
- ----------------- ---- ----
REVENUES
Rental income $ 52,481 $ 43,920
Interest 1,594 1,500
Other income 2,102 3,227
---------- ----------
56,177 48,647
EXPENSES
Rental 11,922 10,216
Real estate taxes 5,472 4,574
Interest 12,693 11,989
Administrative 1,841 2,101
Depreciation and amortization 10,769 10,124
---------- ----------
42,697 39,004
---------- ----------
OPERATING INCOME BEFORE INVESTORS' SHARE OF
OPERATIONS 13,480 9,643
Investor's share of operations (786) (332)
---------- ----------
Net income $ 12,694 $ 9,311
Dividends on preferred stock (1,988) -
---------- ----------
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS 10,706 9,311
========== ==========
Earnings per common share, basic $ 0.27 $ 0.25
========== ==========
Earnings per common share, diluted $ 0.27 $ 0.24
========== ==========
Weighted average shares outstanding, basic 38,949 37,483
Weighted average shares outstanding, diluted 39,870 38,033
FUNDS FROM OPERATIONS
Net income available for common shareholders $ 10,706 $ 9,311
Add: depreciation and amortization
of real estate assets 9,738 9,064
Add: amortization of initial direct
costs of leases 593 584
Add: income attributable to operating
partnership units 207 -
Funds from operations, diluted $ 21,244 $ 18,959
========== ==========
Funds from operations per share, diluted $ 0.53 $ 0.50
========== ==========
March 31, December 31,
BALANCE SHEET DATA 1998 1997
- ------------------ ---------- ----------
ASSETS
Real estate, at cost $1,481,386 $1,453,639
Accumulated depreciation and amortization (255,703) (247,497)
---------- ----------
1,225,683 1,206,142
Mortgage notes receivable 40,733 38,360
Cash and investments 15,890 17,043
Receivables 17,564 18,794
Other assets 39,278 36,234
---------- ----------
TOTAL ASSETS $1,339,148 $1,316,573
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Obligations under capital leases & mortgages payable $ 220,998 221,573
Notes payable 67,112 119,028
Senior Notes 335,000 255,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 90,936 91,873
SHAREHOLDERS' EQUITY 549,813 553,810
---------- ----------
$1,339,148 $1,316,573
========== ==========
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.
