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) June 30, 1999 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 June 30, 1999. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at June 30, 1999 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: July 29, 1999 /s/ Cecily A. Ward -------------------------------- Cecily A. Ward Vice President, Controller -2-
EXHIBIT INDEX Exh No. Exhibit Page No. - ------- ------- -------- 99 Supplemental portfolio information at June 30, 1999 4 -3-
EXHIBIT 99 FEDERAL REALTY INVESTMENT TRUST ================================================================================ Supplemental Information June 30, 1999 ================================================================================ 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. 2nd Quarter Earnings Press Release, July 28, 1999..................... E-7 5. Glossary of Terms..................................................... E-10 ================================================================================ 1626 East Jefferson Street Rockville, Maryland 20852-4041 301/998-8100
FEDERAL REALTY INVESTMENT TRUST DEBT ANALYSIS (excluding capital leases and interest rate swaps) June 30, 1999 _______________________________________________________________________________ Balance Maturity Rate (in thousands) Mortgages Leesburg Plaza 10/01/08 6.10% $ 9,900 Federal Plaza 03/10/01 8.95% 27,414 Tysons Station 09/01/01 9.875% 4,105 Escondido (Municipal bonds) 10/01/16 Variable ## 9,400 $50,819 =========== Notes payable Revolving credit facilities libor +.65% $180,000 Term note with banks libor +.75% 125,000 Note issued in connection with tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,011 Note issued in connection with renovation of Perring Plaza 01/31/13 10.00% 2,650 Other various various 179 ----------- $308,840 =========== 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) (a) 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 (a) 03/10/04 6.370% 39,500 6.99% Medium Term Notes (a) 03/10/06 6.894% 40,500 ----------- $410,289 =========== Total fixed rate debt $455,548 59.17% Total variable rate debt 314,400 40.38% ----------- -------- Total debt $769,948 100.00% =========== ======== Weighted average interest rate: ------------------------------- Fixed rate debt 7.19% Variable on revolving facilities 5.70% (b) Variable on muncipal bonds (c) (a)The Trust purchased interest rate swaps or hedges on these notes, thereby decreasing the effective interest. (b)Weighted average interest rate on revolving credit facilities for three months ended June 30, 1999. (c)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. E-2
Federal Realty Investment Trust Percentage Leased Analysis June 30, 1999 - -------------------------------------------------------------------------------- Overall Operating Occupancy (Quarter to Quarter Analysis) June 30, 1999 June 30, 1998 --------------------------------------- -------------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ----------- ------------ ------------ ------------ -------------- -------------- Retail Properties (leasable square feet) 14,541,750 13,797,209 94.9% 13,658,940 12,989,036 95.1% Rollingwood Apartments (# of units) 282 280 99% 282 281 99% Overall Operating Occupancy (Rolling 12 Months) June 30, 1999 March 31, 1999 ---------------------------------------- ----------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ----------- ------------ ------------- ----------- ------------- ------------- Retail Properties (leasable square feet) 14,541,750 13,797,209 94.9% 14,563,620 13,839,142 95% Rollingwood Apartments (# of units) 282 280 99% 282 278 99% December 31, 1998 September 30, 1998 ---------------------------------------- ---------------------------------------- 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% - -------------------------------------------------------------------------------- Same Center Occupancy (Quarter to Quarter Comparison) June 30, 1999 June 30, 1998 ---------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - -------------------------------------------- ------------ ------------ ------------ ----------- -------------- ----------- Retail Properties (leasable square feet) 13,622,710 12,891,283 94.6% 13,455,573 12,785,975 95.0% Rollingwood Apartments (# of units) 282 280 99% 282 281 99% Same Center Occupancy (Rolling 12 Months) June 30, 1999 At March 31, 1999 ---------------------------------------- --------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - --------------------------------------------- ----------- ------------ ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 13,622,710 12,891,283 94.6% 13,091,729 12,404,610 95% Rollingwood Apartments (# of units) 282 280 99% 282 278 99% At December 31, 1998 At September 30, 1998 ----------------------------------------- ----------------------------------------- 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% E-3
Federal Realty Investment Trust Economic Occupancy Analysis June 30, 1999 - -------------------------------------------------------------------------------- Overall Economic Occupancy (Quarter to Quarter Analysis) June 30, 1999 June 30, 1998 ------------------------------------------- ---------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ------------------------------------------- ------------- ------------- ------------- ------------ ------------ ----------- Retail Properties (leasable square feet) 14,541,750 13,552,119 93.2% 13,658,940 12,778,700 93.6% Rollingwood Apartments (# of units) 282 280 99% 282 274 97% Overall Economic Occupancy (Rolling 12 Months) June 30, 1999 March 31, 1999 ------------------------------------------ ---------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - ------------------------------------------- ------------ --------------- ----------- ----------- ------------ ------------ Retail Properties (leasable square feet) 14,541,750 13,552,119 93.2% 14,563,620 13,594,814 93% Rollingwood Apartments (# of units) 282 280 99% 282 278 99% December 31, 1998 September 30, 1998 ------------------------------------------ ----------------------------------- Leases Leases Generating Economic Generating Economic 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% - ------------------------------------------------------------------------------- Same Center Economic Occupancy (Quarter to Quarter Comparison) June 30, 1999 June 30, 1998 --------------------------------------- ----------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - -------------------------------------------- ------------- ------------ ----------- ------------ ------------ ------------- Retail Properties (leasable square feet) 13,622,710 12,744,193 93.6% 13,455,573 12,576,762 93.5% Rollingwood Apartments (# of units) 282 280 99% 282 274 97% Same Center Economic Occupancy (Rolling 12 Months) June 30, 1999 At March 31, 1999 --------------------------------------- ---------------------------------------- Leases Leases Generating Economic Generating Economic Type Size Income Occupancy Size Income Occupancy - -------------------------------------------- ------------- ------------ ----------- ------------ ------------- ----------- Retail Properties (leasable square feet) 13,622,710 12,744,193 93.6% 13,091,729 12,170,282 93% Rollingwood Apartments (# of units) 282 280 99% 282 278 99% At December 31, 1998 At September 30, 1998 ----------------------------------------- --------------------------------------- Leases Leases Generating Economic Generating Economic 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% E-4
Federal Realty Investment Trust Regional Occupancy Analysis June 30, 1999 - -------------------------------------------------------------------- Total Square Occupancy Region Footage 06/30/99 - -------------------- --------------------- ------------------ Northeast 6,296,972 95.5% Mid-Atlantic 5,686,640 96.5% Mid-West 929,749 94.7% Southeast 635,890 74.4% West Coast 952,874 95.1% Southwest 39,625 92.3% - -------------------------------------------------------------------- Total Square Occupancy Region Footage 06/30/99 - ---------------------- --------------------- ------------------ Northeast 6,296,972 95.5% Anchor 3,609,990 97.8% Small Shops 2,686,982 92.3% Mid-Atlantic 5,686,640 96.5% Anchor 2,723,982 98.8% Small Shops 2,962,658 94.5% Mid-West 929,749 94.7% Anchor 585,978 97.7% Small Shops 343,771 89.5% Southeast 635,890 74.4% Anchor 304,894 67.5% Small Shops 330,996 80.6% West Coast 952,874 95.1% Anchor 192,292 100.0% Small Shops 760,582 93.9% Southwest 39,625 92.3% Anchor 0 0% Small Shops 39,625 92.3% E-5
Federal Realty Investment Trust Retail Leasing Activity June 30, 1999 - -------------------------------------------------------------------------------- Comparable Weighted Average Prior Number of Square Average Lease Rent Per Rolling 12 Months Leases Signed Feet Term (Years) Square Foot - ---------------------------- ---------------------- ----------------- ----------------------- --------------------- 2nd Quarter 1999 74 237,065 5.9 $18.03 1st Quarter 1999 56 199,197 6.0 $16.88 4th Quarter 1998 59 314,603 7.2 $15.52 3rd Quarter 1998 59 230,114 5.9 $14.04 Total 248 980,979 6.4 $18.59 Estimated Average Current Percentage Tenant Rent Per Annualized Increase Improvement Square Foot Increase in Rent over Prior Rent Costs ----------------- ---------------------- ------------------ --------------- 2nd Quarter 1999 $21.70 $ 871,258 20% $1,799,000 1st Quarter 1999 $20.27 $ 675,482 20% $ 935,000 4th Quarter 1998 $17.45 $ 607,238 12% $ 588,000 3rd Quarter 1998 $15.47 $ 330,680 10% $ 333,000 Total $16.05 $2,484,658 16% $3,655,000 Non-Comparable Weighted Average Number of Square Lease Average Rent Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot - ------------------------------ -------------------- --------------- ----------------- --------------------- 2nd Quarter 1999 7 11,592 7.9 $43.30 1st Quarter 1999 13 120,121 14.7 $20.91 4th Quarter 1998 19 130,798 10.6 $21.47 3rd Quarter 1998 7 57,613 16.9 $22.15 Total 46 320,124 13.7 $22.17 Estimated Annualized Tenant Current Improvement Rent Costs ------------------ ------------------ 2nd Quarter 1999 $ 501,908 $ 91,000 1st Quarter 1999 $2,511,594 $494,000 4th Quarter 1998 $2,808,414 $280,000 3rd Quarter 1998 $1,276,091 $121,000 Total $7,098,007 $986,000 E-6
Kathy Klein Vice President Corporate Communications 301/998-8211 FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 1999 OPERATING RESULTS July 28, 1999 Rockville, Maryland Federal Realty Investment Trust (NYSE:FRT) reported today that funds from operations for the second quarter of 1999 increased 16% to $24.2 million from $20.9 million in the second quarter of 1998. On a per share basis, funds from operations rose 15% to $.60 in the second quarter of 1999 from $.52 in the comparable quarter of 1998. A comparison of property operations for the second quarter of 1999 versus the second quarter of 1998 shows the following: . Rental income increased 10% to $59.7 million in 1999 from $54.1 million in 1998. When adjusted to exclude properties acquired and sold during 1998 and 1999, rental income increased 4% to $55.9 million in 1999 from $53.9 million in 1998. . Net operating income increased 10% to $43.9 million in 1999 from $40.0 million in 1998. On a same center basis, net operating income increased 4% to $40.1 million in 1999 from $38.7 million in 1998. Same center growth was muted in the period by write-offs associated with the Cosmetic Center bankruptcy and by the operational disruption of several properties under redevelopment. . During the second quarter of 1999, the Trust signed leases for a total 249,000 square feet of retail space. On a same space basis, the Trust re-leased 237,000 square feet of retail space at an average increase in rent per square foot of 20%. The weighted average rent on these leases was $21.70 per square foot compared to the previous average rent of $18.03 per square foot. . Same property occupancy stood at 95% at both June 30, 1999 and 1998. At June 30, 1999, the Trust's overall portfolio was 95% leased compared to 95% a year ago. E-7
Also during the quarter, the Trust recorded a $7 million charge representing the estimated loss on the potential sale of certain assets, principally Northeast Plaza in Atlanta, Georgia. Portfolio-wide occupancy levels would increase to 96% if the sale of Northeast Plaza were successful. Funds from operations also improved for the first six months of 1999 increasing 14% to $47.9 million from $42.2 million in the first half of 1998. On a per share basis, funds from operations advanced 12% to $1.18 per share for the first six months of 1999 compared to $1.05 for the comparable period of 1998. Commenting on the results, Steven Guttman, President and Chief Executive Officer stated, "We are pleased with the strong pace of FFO growth through the first half of 1999. Our core portfolio continues to generate solid rental income growth, which combined with tight operating expense control is producing improved profitability. We remain enthused about our current development pipeline and see many opportunities to develop unique mixed use main street assets that meet our long term growth goals." 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 122 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. ### E-8
Financial Highlights (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, OPERATING RESULTS 1999 1998 1999 1998 - ----------------- ---- ---- ---- ---- Revenues Rental income $59,674 $54,127 $119,107 $106,608 Other property income 2,555 2,934 4,827 5,036 Interest and other income 1,966 1,341 3,844 2,935 ------- ------- -------- -------- 64,195 58,402 127,778 114,579 Expenses Rental 12,456 11,347 26,104 23,269 Real estate taxes 5,855 5,745 11,867 11,217 Interest 15,385 13,404 30,518 26,097 Administrative 3,160 3,995 5,414 5,836 Depreciation and amortization 12,651 11,203 24,932 21,972 ------- ------- -------- -------- 49,507 45,694 98,835 88,391 ------- ------- -------- -------- Operating income before investors' share of operations 14,688 12,708 28,943 26,188 Investor's share of operations (823) (745) (1,524) (1,531) ------- ------- -------- -------- Income before loss on real estate to be sold 13,865 11,963 27,419 24,657 Loss on real estate to be sold (7,050) -- (7,050) -- ------- ------- -------- -------- Net Income $ 6,815 $11,963 $ 20,369 $ 24,657 Dividends on preferred stock (1,987) (1,987) (3,975) (3,975) ------- ------- -------- -------- Net income available for common shareholders $ 4,828 $ 9,976 $ 16,394 $ 20,682 ======= ======= ======== ======== Earnings per common share, basic $ 0.12 $ 0.26 $ 0.41 $ 0.53 ======= ======= ======== ======== Earnings per common share, diluted $ 0.12 $ 0.25 $ 0.41 $ 0.52 ======= ======= ======== ======== Weighted average shares outstanding, basic 39,543 39,122 39,489 39,057 Weighted average shares outstanding, diluted 40,682 39,900 40,613 39,896 Funds from Operations Net income available for common shareholders $ 4,828 $ 9,976 $ 16,394 $ 20,682 Add: loss on sale of 7,050 -- 7,050 -- Add: depreciation and amoritization of real estate assets 11,489 10,168 22,617 19,906 Add: amorization of initial direct costs of losses 742 588 1,460 1,181 Add: income attributable to operating partnership units 97 207 361 414 Funds from operations $24,206 $20,939 $ 47,882 $ 42,183 ======= ======= ======== ======== Funds from operations per share, diluted $ 0.60 $ 0.52 $ 1.18 $ 1.05 ======= ======= ======== ======== June 30, December 31, BALANCE SHEET DATA 1999 1998 - ------------------ ---- ---- Assets Real estate, at cost $1,701,981 $1,642,136 Accumulated depreciation and amortization (308,580) (286,053) ---------- ---------- 1,393,401 1,356,083 Mortgage notes receivable 56,451 51,154 Cash and investments 11,853 17,230 Receivables 14,923 17,873 Other assets 38,269 41,977 ---------- ---------- Total assets $1,514,897 $1,484,317 ========== ========== Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 173,038 $ 173,480 Notes payable 308,840 263,159 Senior Notes 335,000 335,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 108,140 107,442 Shareholders' Equity 514,590 529,947 ========== ========== $1,514,897 $1,484,317 ========== ========== E-9
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 operating properties owned in reporting period. Same center occupancy: Occupancy for only those properties owned and operating in the periods being compared. Excludes centers purchased or sold as well as properties under redevelopment and development. 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. E-10