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, 1998 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, 1998. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at December 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: February 11, 1999 /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, 1998 4 -3-
FEDERAL REALTY INVESTMENT TRUST ================================================================================ Supplemental Information December 31, 1998 ================================================================================ 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. 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 and interest rate swaps) December 31, 1998 - -------------------------------------------------------------------------------- Balance Maturity Rate (in thousands) Mortgages Leesburg Plaza 10/01/08 6.10% 9,900 Federal Plaza 03/10/01 8.95% 27,639 Tysons Station 09/01/01 9.875% 4,140 Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable ## 9,400 $51,079 ========= Notes payable Revolving credit facilities libor +.65% $134,147 Term notes libor +.75% 125,000 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% 2,696 Other various various 204 --------- $263,159 ========= 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 * 03/10/04 6.370% 39,500 6.99% Medium Term Notes * 03/10/06 6.894% 40,500 ------- $410,289 ======= Total fixed rate debt $455,980 62.93% Total variable rate debt 268,547 37.07% ---------- -------- Total debt $724,527 100.00% ========== ======== Weighted average interest rate: ---------------------------------- Fixed rate debt 7.19% Variable on revolving facilities 6.10% ** 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 twelve months ended December 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.
Overall Occupancy (Quarter to Quarter Analysis) December 31, 1998 December 31, 1997 ------------------------------------------------- -------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ----------------------------------------- ----------- ---------- -------------- ------------ ------------ ------------- Retail Properties (leasable square feet) 14,497,898 13,803,336 95% 13,518,197 12,919,532 96% Rollingwood Apartments (# of units) 282 281 99% 282 279 99% Overall Occupancy (Rolling 12 Months) December 31, 1998 September 30, 1998 ------------------------------------------------- -------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ----------------------------------------- ----------- ---------- -------------- ------------ ------------ ------------- Retail Properties (leasable square feet) 14,497,898 13,803,336 95% 14,419,458 13,739,610 95% Rollingwood Apartments (# of units) 282 281 99% 282 282 100% Overall Occupancy (Rolling 12 Months) June 30, 1998 March 31, 1998 ---------------------------------------- ------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ----------------------------------------- ------------- -------------- ------------- ---------- ----------- ------------- Retail Properties (leasable square feet) 13,658,940 12,989,036 95% 13,518,261 12,923,203 96% Rollingwood Apartments (# of units) 282 281 99% 282 280 99% - ----------------------------------------------------------------------------------------------------------------------------------- Same Center Occupancy (Quarter to Quarter Comparison) December 31, 1998 December 31, 1997 ----------------------------------------------- --------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ------------ ------------- ------------ ------------ ----------- Retail Properties (leasable square feet) 13,102,582 12,451,743 95% 13,086,129 12,508,208 96% Rollingwood Apartments (# of units) 282 281 99% 282 279 99% Same Center Occupancy (Rolling 12 Months) At December 31, 1998 At September 30, 1998 ------------------------------------------- -------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ------------ ------------ ------------ ----------- ----------- Retail Properties (leasable square feet) 13,102,582 12,451,743 95% 12,056,443 11,459,514 95% Rollingwood Apartments (# of units) 282 281 99% 282 282 100% Same Center Occupancy (Rolling 12 Months) At June 30, 1998 At March 31, 1998 --------------------------------------- ------------------------------------------ Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ------------ ----------- ------------ -------------- ------------ Retail Properties (leasable square feet) 11,938,810 11,358,594 95% 11,652,173 11,119,804 95% Rollingwood Apartments (# of units) 282 281 99% 282 280 99%
Federal Realty Investment Trust Economic Occupancy Analysis December 31, 1998 - ----------------------------------------------------------------------------------------------------------------------------------- Overall Economic Occupancy (Quarter to Quarter Analysis) December 31, 1998 December 31, 1997 ------------------------------------------ ----------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- ------------ ------------ ------------- ------------ ------------- ----------- Retail Properties (leasable square feet) 14,497,898 13,626,536 94% 13,518,197 12,757,485 94% Rollingwood Apartments (# of units) 282 281 99% 282 279 99% Overall Economic Occupancy (Rolling 12 Months) December 31, 1998 September 30, 1998 ------------------------------------------ ----------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- ------------ ------------ ------------- ------------ ------------- ----------- Retail Properties (leasable square feet) 14,497,898 13,626,536 94% 14,419,458 13,578,116 94% Rollingwood Apartments (# of units) 282 281 99% 282 282 100% Overall Economic Occupancy (Rolling 12 Months) June 30, 1998 March 31, 1998 ------------------------------------------- --------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- -------------- ------------ ----------- ------------- ------------ ---------- Retail Properties (leasable square feet) 13,658,940 12,778,700 94% 13,518,261 12,619,318 93% Rollingwood Apartments (# of units) 282 274 97% 282 280 99% Same Center Economic Occupancy (Quarter to Quarter Comparison) December 31, 1998 December 31, 1997 -------------------------------------------- ---------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- -------------- ------------- ------------ ------------ ------------- ---------- Retail Properties (leasable square feet) 13,102,582 12,274,943 94% 13,086,129 12,346,161 94% Rollingwood Apartments (# of units) 282 281 99% 282 279 99% Same Center Economic Occupancy (Rolling 12 Months) At December 31, 1998 At September 30, 1998 ------------------------------------------- ---------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- ------------ ------------ ----------- ------------ ------------ ---------- Retail Properties (leasable square feet) 13,102,582 12,274,943 94% 12,056,443 11,315,875 94% Rollingwood Apartments (# of units) 282 281 99% 282 282 100% Same Center Economic Occupancy (Rolling 12 Months) At June 30, 1998 At March 31, 1998 ------------------------------------------- ----------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ---------------------------------------- ------------ ------------ ----------- ------------ ------------ ----------- Retail Properties (leasable square feet) 11,938,810 11,167,083 94% 11,652,173 10,819,572 93% Rollingwood Apartments (# of units) 282 274 97% 282 280 99%
Federal Realty Investment Trust Regional Occupancy Analysis December 31, 1998 - -------------------------------------------------------------------------------- Total Square Occupancy Region Footage 12/31/98 ------------ ----------- Northeast 6,221,543 96% Mid-Atlantic 5,677,055 97% Mid-West 921,548 93% Southeast 635,890 76% West Coast 1,002,287 95% Southwest 39,575 95% - -------------------------------------------------------------------------------- Total Square Occupancy Region Footage 12/31/98 ---------------------- ---------- Northeast 6,221,543 96% Anchor 3,773,964 98% Small Shops 2,447,579 93% Mid-Atlantic 5,677,055 97% Anchor 2,735,678 100% Small Shops 2,941,377 94% Mid-West 921,548 93% Anchor 585,816 98% Small Shops 335,732 84% Southeast 635,890 76% Anchor 304,894 68% Small Shops 330,996 84% West Coast 1,002,287 95% Anchor 232,338 100% Small Shops 769,949 94% Southwest 39,575 95% Anchor 0 0% Small Shops 39,575 95%
Federal Realty Investment Trust Leasing Activity December 31, 1998 - ---------------------------------------------------------------------------------------------------------------------------------- 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 1998 59 314,603 7.2 $15.52 $17.45 $607,238 3rd Quarter 1998 59 230,114 5.9 $14.04 $15.47 $330,680 2nd Quarter 1998 68 241,132 7.8 $15.33 $20.14 $1,160,247 1st Quarter 1998 78 304,204 7.2 $15.38 $17.43 $623,425 Total 264 1,090,053 7.0 $15.12 $17.62 $2,721,590 Comparable Estimated Percentage Tenant Increase Improvement over Prior Rent Costs - -------------- ---------------------- 12% $588,000 10% $333,000 31% $933,000 13% $990,000 17% $2,844,000 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 1998 19 130,798 10.6 $21.47 $2,808,414 $280,000 3rd Quarter 1998 7 57,613 16.9 $22.15 $1,276,091 $121,000 2nd Quarter 1998 15 63,474 9.3 $14.30 $907,455 $78,000 1st Quarter 1998 10 55,877 12.1 $22.49 $1,256,594 $585,000 Total 51 307,762 12.0 $20.30 $6,248,554 $1,064,000
Federal Realty Investment Trust Leases Expiring Total Percent Average Square Feet of Total Rent Per Expiring (1) Portfolio(2) Square Foot ------------------- ------------------- ------------- 1999 393,926 3% $16.21 2000 424,999 3% $19.02 2001 451,888 3% $18.12 2002 430,148 3% $19.24 2003 373,538 2% $21.08 (1) Excludes lease expirations with options (2) Total square footage December 31, 1998: 15,520,322
Federal Realty Investment Trust Leases Expiring - Anchors and Small Shops Total Percent Square Feet of Total Expiring (1) Portfolio(2) -------------------- -------------------- 1999 Anchor 61,298 less than 1% Small Shop 332,628 2% 2000 Anchor 23,075 less than 1% Small Shop 401,924 3% 2001 Anchor 52,139 less than 1% Small Shop 399,749 3% 2002 Anchor 82,894 1% Small Shop 347,254 2% 2003 Anchor 19,600 less than 1% Small Shop 353,938 2% (1) Excludes lease expirations with options (2) Total square footage December 31, 1998: 15,520,322
Federal Realty Investment Trust Major Tenants by Revenue Contribution Square Percent of Tenant Footage Revenue (1) ---------------- ----------------------- Bed, Bath & Beyond, Inc. 323,090 2.04% CVS Corporation 198,947 1.90% Barnes & Noble, Inc. 164,189 1.68% The TJX Companies (Marshalls/TJ Maxx) 386,200 1.60% Toys R Us, Inc. 325,582 1.53% Kmart Corporation 508,580 1.15% The May Department Stores Company (Filene's) 244,198 1.09% MTS, Inc. (Tower Records) 91,122 1.03% Dress Barn 121,766 0.95% CompUSA 108,219 0.90% (1) Balances consist of 1998 minimum and percentage rent charges
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.
Kathy Klein Vice President Corporate Communications 301/998-8211 FEDERAL REALTY INVESTMENT TRUST ANNOUNCES 1998 OPERATING RESULTS February 10, 1999 Rockville, Maryland Federal Realty Investment Trust (NYSE:FRT) reported today that funds from operations for the year ended December 31, 1998 increased 9% to $87 million from $80 million in 1997. On a per share basis, funds from operations rose 5% to $2.16 per share in 1998 from $2.05 in 1997. This increase was achieved despite the change in accounting policy effective earlier this year (EITF 97-11) that requires the expensing of certain internal acquisition costs. If the 1997 results were adjusted for the accounting change, funds from operations per share would have increased 7% from 1997 to 1998. Funds from operations for the fourth quarter of 1998 rose 10% to $23 million from $21 million in the fourth quarter of 1997. On a per share basis, funds from operations per share increased 8% to $.57 in the fourth quarter of 1998 as compared to $.53 per share in the comparable period of 1997. A comparison of property operations for the year ended 1998 versus 1997 shows the following: . Rental income increased 18% to $222 million in 1998 from $189 million in 1997. When adjusted to exclude properties acquired and sold during 1997 and 1998, rental income increased 5% to $187 million in 1998 from $177 million in 1997. . During 1998, 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 of retail space at an average increase in rent per square foot of 17%. The weighted average rent on these leases was $17.62 per square foot compared to the previous average rent of $15.12 per square foot. During 1997, the Trust leased a total 1.4 million
square feet. On a same space basis, 1.1 million square feet was re- leased 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 per square foot of $14.01. . Same property occupancy stood at 95.0% at year end December 31, 1998 and 95.6% at year end 1997. The Trust's overall portfolio was 95.2% leased at December 31, 1998 as compared to 95.6% a year ago. Commenting on the results, Steven Guttman, President and Chief Executive Officer stated, "We are optimistic about our long-term growth prospects. Demand for our retail space remains strong as evidenced by our rental income growth and high occupancy levels. In addition, our comprehensive corporate reengineering initiative is expected to yield cost and revenue opportunities that will add positively to our growth beginning in 1999. We continue to benefit from our acquisition and redevelopment efforts and have strengthened our development capabilities and formed strategic partnerships that will enable us to maximize and expand our pipeline of retail and mixed-use urban development and redevelopment opportunities. Collectively, these initiatives should position us for accelerated growth in 1999 and beyond." 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 120 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 31 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 1998 1997 1998 1997 Revenues ------- ------- -------- -------- Rental income $60,145 $51,439 $222,186 $188,529 Interest and other income 2,017 1,377 5,945 6,037 Other property income 2,734 2,193 10,347 9,705 ------- ------- -------- -------- 64,896 55,009 238,478 204,271 Expenses Rental 14,216 11,648 49,490 42,844 Real estate taxes 5,996 5,123 23,271 19,525 Interest 15,389 11,336 55,125 47,288 Administrative 3,060 3,231 11,796 9,793 Reorganization expenses 0 1,951 4,665 1,951 Depreciation and amortization 12,663 10,546 46,047 41,399 ------- ------- -------- -------- 51,324 43,835 190,394 162,800 ------- ------- -------- -------- Operating income before investors' share of operations and gain (loss) on sale of real estate 13,572 11,174 48,084 41,471 Investor's share of operations (789) (480) (3,124) (1,342) ------- ------- -------- -------- Income before gain on sale of real estate $12,783 $10,694 44,960 40,129 Gain on sale of real estate - - - 6,375 ------- -------- -------- -------- Net income $12,783 $10,694 $ 44,960 $ 46,504 Dividends on preferred stock (1,987) (1,877) (7,950) (1,877) ------- -------- -------- -------- Net income available for common shareholders $10,796 $ 8,817 $ 37,010 $ 44,627 ======= ======== ======== ======== Earnings per common share, basic $ 0.27 $ 0.23 $ 0.94 $ 1.16 ======= ======== ======== ======== Earnings per common share, diluted $ 0.26 $ 0.22 $ 0.94 $ 1.14 ======= ======== ======== ======== Weighted average shares outstanding, basic 39,348 38,849 39,174 38,475 Weighted average shares outstanding, diluted 40,456 39,436 40,080 38,988 Funds from Operations Net income available for common shareholders $10,796 $ 8,817 $ 37,010 $ 44,627 Less: gain on sale of real estate - - - (6,375) Add: nonrecurring charge - 1,951 4,665 1,951 Add: depreciation and amortization of real estate assets 11,563 9,547 41,792 37,281 Add: amortization of initial direct costs of leases 664 556 2,491 2,249 Add: income attributable to operating partnership units (104) - 578 - ------- -------- -------- -------- Funds from operations, diluted $22,919 $ 20,871 $ 86,536 $ 79,733 ======= ======== ======== ======== Funds from operations per share, diluted $ 0.57 $ 0.53 $ 2.16 $ 2.05 ======= ======== ======== ======== December 31, December 31, BALANCE SHEET DATA 1998 1997 - ------------------ ------------ ------------- Assets Real estate, at cost $ 1,642,136 $ 1,453,639 Accumulated depreciation and amortization (286,053) (247,497) ------------ ------------- 1,356,083 1,206,142 Mortgage notes receivable 51,154 38,360 Cash and investments 17,230 17,043 Receivables 17,873 18,794 Other assets 41,977 36,234 ------------ ------------- Total assets $ 1,484,317 $ 1,316,573 ============ ============= Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 173,480 $ 221,573 Notes payable 263,159 119,028 Senior Notes 335,000 255,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 107,442 91,873 Shareholders' Equity 52,9947 553,810 ------------ ------------- $ 1,484,317 $ 1,316,573 ============ =============