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) September 30, 1999 Federal Realty Investment Trust ------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 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 September 30, 1999. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at September 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: November 3, 1999 //Cecily A. Ward// ------------------ Cecily A. Ward Vice President, Controller
EXHIBIT INDEX Exh No. Exhibit Page - ------- ------- ----- 99 Supplemental portfolio information at September 30, 1999 4 -3-
FEDERAL REALTY INVESTMENT TRUST Supplemental Information September 30, 1999 TABLE OF CONTENTS 1. Debt Summary......................................................... E-2 2. Occupancy Percentage Leased.............................................. E-3 Regional Breakdown............................................. E-4 3. Leases Signed Analysis Comparable and Non-Comparable.................................. E-5 4. Street Retail Operating & Development Overview....................... E-6 5. 3rd Quarter Earnings Press Release, November 3, 1999................. E-7 6. 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) September 30, 1999 - -------------------------------------------------------------------------------------------------------------------------------- Balance Maturity Rate (in thousands) ------------------ ------------- ------------------ Mortgages Leesburg Plaza 10/01/08 6.10% $ 9,900 Federal Plaza 03/10/01 8.95% 27,297 Tysons Station 09/01/01 9.875% 4,087 Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400 $ 50,684 Notes payable Revolving credit facilities libor +.65% $213,000 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% 2,628 Other various various 166 $341,805 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) (b) 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 (b) 03/10/04 6.370% 39,500 6.99% Medium Term Notes (b) 03/10/06 6.894% 40,500 $410,289 Total fixed rate debt $455,378 56.73% Total variable rate debt 347,400 43.27% ------------ --------- Total debt $802,778 100.00% ============ ========= Weighted average interest rate: ------------------------------- Fixed rate debt 7.19% Variable on revolving facilities 5.80% (c) Variable on muncipal bonds (a) (a) 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. (b) The Trust purchased interest rate swaps or hedges on these notes, thereby decreasing the effective interest. (c) Weighted average interest rate on revolving credit facilities for nine months ended September 30, 1999.
Federal Realty Investment Trust Percentage Leased Analysis September 30, 1999 - ------------------------------------------------------------------------------------------------------------------------------------ Overall Operating Occupancy (Quarter to Quarter Analysis) September 30, 1999 September 30, 1998 ---------------------------------------------- ----------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ----------- --------------- -------------- --------- ---------- ----------- Retail Properties (leasable square feet) 14,348,626 13,658,207 95.2% 14,419,458 13,739,610 95.3% Rollingwood Apartments (# of units) 282 282 100% 282 282 100% Overall Operating Occupancy (Rolling 12 Months) September 30, 1999 June 30, 1999 --------------------------------------------- --------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- -------------- ------------- ------------ ------------ ------------ ----------- Retail Properties (leasable square feet) 14,348,626 13,658,207 95.2% 14,541,750 13,797,209 94.9% Rollingwood Apartments (# of units) 282 282 100% 282 280 99% Overall Operating Occupancy (Rolling 12 Months) March 31, 1999 December 31, 1998 --------------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- -------------- ------------- ------------- ------------ ------------ ------------- Retail Properties (leasable square feet) 14,563,620 13,839,142 95% 14,497,898 13,803,336 95% Rollingwood Apartments (# of units) 282 278 99% 282 281 99% - -------------------------------------------------------------------------------------------------------------------------------- Same Center Occupancy (Quarter to Quarter Comparison) September 30, 1999 September 30, 1998 Type Size Leased Occupancy Size Leased Occupancy --------------------------------------- ---------- --------- -------------- -------------- ---------- ----------- Retail Properties (leasable square feet) 14,304,720 13,613,931 95.2% 14,078,641 13,412,232 95.3% Rollingwood Apartments (# of units) 282 282 100% 282 282 100% Same Center Occupancy (Rolling 12 Months) September 30, 1999 June 30, 1999 -------------------------------------------------------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - --------------------------------------- ------------- ----------- -------------- ------------- ------------- ---------- Retail Properties (leasable square feet) 14,304,720 13,613,931 95.2% 13,622,710 12,891,283 94.6% Rollingwood Apartments (# of units) 282 282 100% 282 280 99% Same Center Occupancy (Rolling 12 Months) March 31, 1999 December 31, 1998 --------------------------------------------------------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- --------------- ---------- ------------ ------------ ----------- ---------- Retail Properties (leasable square feet) 13,091,729 12,404,610 95% 13,102,582 12,451,743 95% Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
Federal Realty Investment Trust Regional Occupancy Analysis September 30, 1999 - ---------------------------------------------------------------------------------- Total Square Occupancy Region Footage 09/30/99 - ------------------------------- --------------------- -------------------- Northeast 6,052,089 96.0% Mid-Atlantic 5,688,578 96.6% Mid-West 988,206 94.2% Southeast 635,890 74.6% West Coast 944,331 96.2% Southwest 39,532 100.0% - ---------------------------------------------------------------------------------- Total Square Occupancy Region Footage 09/30/99 - ------------------------------- --------------------- -------------------- Northeast 6,052,089 96.0% Anchor 3,450,429 98.3% Small Shops 2,601,660 92.9% Mid-Atlantic 5,688,578 96.6% Anchor 2,772,082 100.0% Small Shops 2,916,496 93.4% Mid-West 988,206 94.2% Anchor 585,978 97.7% Small Shops 402,228 89.0% Southeast 635,890 74.6% Anchor 304,894 67.6% Small Shops 330,996 81.1% West Coast 944,331 96.2% Anchor 192,292 100.0% Small Shops 752,039 95.2% Southwest 39,532 100.0% Anchor 0 0% Small Shops 39,532 100.0%
Federal Realty Investment Trust Retail Leasing Activity September 30, 1999 - ----------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------- 3rd Quarter 1999 87 324,332 7.3 $16.02 $ 20.34 $1,401,643 2nd Quarter 1999 74 237,065 5.9 $18.03 $ 21.70 $ 871,258 1st Quarter 1999 56 199,197 6.0 $16.88 $ 20.27 $ 675,482 4th Quarter 1998 59 314,603 7.2 $15.52 $ 17.45 $ 607,238 Total 276 1,075,197 6.4 $16.47 $ 19.78 $3,555,621 Estimated Percentage Tenant Increase Improvement Rolling 12 Months over Prior Rent Costs - --------------------------------------------------------------------- 3rd Quarter 1999 27% $3,799,000 2nd Quarter 1999 20% $1,799,000 1st Quarter 1999 20% $ 935,000 4th Quarter 1998 12% $ 588,000 Total 20% $7,121,000 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 - ------------------------------------------------------------------------------------------------------------------------------- 3rd Quarter 1999 12 105,948 10.2 $20.32 $2,153,331 $ 521,000 2nd Quarter 1999 7 11,592 7.9 $43.30 $ 501,908 $ 91,000 1st Quarter 1999 13 120,121 14.7 $20.91 $2,511,594 $ 494,000 4th Quarter 1998 19 130,798 10.6 $21.47 $2,808,414 $ 280,000 Total 51 368,459 12.3 $21.64 $7,975,247 $1,386,000
Federal Realty Investment Trust Street Retail Operating & Development Overview September 30, 1999 Nine Months ended December 31, September 30, (in thousands) 1995 1996 1997 1998 1999 ------------------------------------------------------------------ --------------------- Real Estate Assets (1) $107,910 $164,931 $288,020 $365,874 $432,580 Revenues $9,310 $20,555 $31,998 $42,643 $37,000 Net Operating Income $3,994 $12,538 $20,345 $28,660 $25,341 Square Feet (2) 532,944 1,122,737 1,502,807 1,601,849 1,798,181 (1) At September 30, 1999, includes $98 million related to new development in process. The balance is comprised of both stabilized assets and assets which are in various stages of redevelopment. (2) Excludes new development square footage NORTHEAST Square Feet MID-ATLANTIC Square Feet Connecticut Virginia Greenwich Avenue/4 80,791 Pentagon Row N/A (2) West Hartford/7 103,426 Village at Shirlington 362,141 Westport/2 26,408 WESTERN Massachusetts Arizona Coolidge Corner/1 13,101 Mill Avenue/2 39,532 New Jersey California Central Avenue/1 11,208 Colorado Boulevard/2 67,382 Fifth Avenue/5 64,269 New York Hermosa Beach/1 5,930 Forest Hills/4 91,593 Post Street/1 96,547 Old Town Center 101,000 Santana Row N/A (2) MID-ATLANTIC Third Street Promenade/9 152,597 District of Columbia Hollywood Blvd./3 196,332 Sam's Park N Shop 49,706 Illinios Florida Evanston/2 18,813 Winter Park/2 28,446 Oak Street/1 5,000 Maryland Texas Bethesda Row 283,959 (2) Houston Street/10 N/A (2)
Kathy Klein Vice President Corporate Communications 301/998-8211 FEDERAL REALTY INVESTMENT TRUST ANNOUNCES THIRD QUARTER 1999 OPERATING RESULTS November 3, 1999 Rockville, Maryland Federal Realty Investment Trust (NYSE:FRT) reported today that funds from operations for the third quarter of 1999 increased 14% to $24.4 million from $21.4 million in the third quarter of 1998. On a per share basis, funds from operations rose 11% to $.60 in the third quarter of 1999 from $.54 in the comparable quarter of 1998. A comparison of property operations for the third quarter of 1999 versus the third quarter of 1998 shows the following: * Rental income increased 12% to $62.0 million in 1999 from $55.4 million in 1998. When adjusted to exclude properties acquired and sold during 1998 and 1999, rental income increased 7% to $57.9 million in 1999 from $54.2 million in 1998. * Net operating income increased 17% to $47.8 million in 1999 from $40.9 million in 1998. On a same center basis, net operating income increased 11% to $44.4 million in 1999 from $39.9 million in 1998. * During the third quarter of 1999, the Trust signed leases for a total 430,000 square feet of retail space. On a same space basis, the Trust re-leased 324,000 square feet of retail space at an average increase in rent per square foot of 27%. The weighted average rent on these leases was $20.34 per square foot compared to the previous average rent of $16.02 per square foot. * At September 30, 1999 and 1998, the Trust's overall occupancy was 95%. Same center occupancy was 95% at September 30, 1999 and 1998. In October, the Trust sold Northeast Plaza Shopping Center in Atlanta, Georgia for $19.6 million in cash. The sale resulted in a 1% gain in portfolio-wide occupancy to 96%. -MORE-
Funds from operations also improved for the first nine months of 1999 increasing 14% to $72.3 million from $63.6 million in 1998. On a per share basis, funds from operations advanced 12% to $1.78 per share for the first nine months of 1999 compared to $1.59 for the comparable period of 1998. Commenting on the results, Steven Guttman, President and Chief Executive Officer stated, "1999 continues to be a year of strong operational performance and execution. During the first nine months we have significantly accelerated FFO growth, improved operating margins in our core portfolio and reduced the costs of administrating the Trust. We are extremely pleased with the progress we've made in achieving our 1999 operating 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 123 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 32 consecutive years. Shares of the Trust are traded on the New York Stock Exchange under the symbol:FRT. ###
Three months ended Nine months ended September 30, September 30, 1999 ------------------ ------------------ OPERATING RESULTS 1999 1998 1999 1998 - ----------------- ---- ---- ---- ---- Revenues Rental Income $61,971 $55,433 $181,078 $162,041 Other property income 3,349 2,577 8,176 7,613 Interest and other income 1,935 993 5,779 3,928 ------- ------- -------- -------- 67,255 59,003 195,033 173,582 Expenses Rental 12,950 12,005 39,054 35,274 Real estate taxes 6,477 6,058 18,344 17,275 Interest 14,989 13,639 45,507 39,736 Administrative 5,474 7,585 10,888 13,401 Depreciation and amortization 12,381 11,412 37,313 33,384 ------- ------ ------ ------- 52,271 50,679 151,106 139,070 ------- ------ ------- ------- Operating income before investors' share operations 14,984 8,324 43,927 34,512 Investor's share of operations (798) (804) (2,322) (2,335) ------- ------ ------- ------- Income before loss on real estate to be sold 14,186 7,520 41,605 32,177 Loss on real estate to be sold -- -- (7,050) -- -------- ------- -------- ------- Net income $14,186 $7,520 $34,555 $32,177 Dividends on preferred stock (1,988) (1,988) (5,983) (5,963) ------- ------ ------- ------- Net income available for common shareholders $12,198 $5,532 $28,592 $26,214 ------- ------ ------- ------- Earnings per common share, basic $0.31 $0.14 $0.72 $0.67 ------- ------ ------- ------- Earnings per common share, diluted $0.30 $0.14 $0.72 $ 0.67 ------- ------ ------- ------- Weighted average shares outstanding, basic 39,634 39,223 39,534 39,115 Weighted average shares outstanding, diluted 40,701 40,067 40,639 39,953 Funds from Operations Net income available for common shareholders $12,198 $5,532 $28,592 $26,214 Add: loss on sale of real estate -- -- 7,050 -- Add: nonrecurring charge -- 4,665 -- 4,665 Add: depreciation and amortization of real estate assets 11,232 10,323 33,849 30,229 Add: amortization of initial direct costs of leases 775 646 2,235 1,837 Add: income attributable to operating partnership units 191 268 552 682 Funds from operations $24,396 $21,434 $72,278 $63,617 ------- ------ ------- ------- Funds from operations per share, diluted $0.60 $0.54 $1.78 $1.59 ------- ------ ------- ------- September 30, December 31, BALANCE SHEET DATA 1999 1998 - ------------------ ------------- ------------ Assets Real estate, at cost $1,729,174 $1,642,136 Accumulated depreciation and amortization (319,959) (286,053) ---------- ---------- 1,409,215 1,356,083 Mortgage notes receivable 58,330 51,154 Cash and investments 15,090 17,230 Receivables 18,216 17,873 Other assets 41,031 41,977 ---------- ---------- Total Assets $1,541,882 $1,484,317 ---------- ---------- Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 172,808 $ 173,480 Notes payable 341,805 263,159 Senior Notes 335,000 335,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 107,271 107,442 Shareholders' Equity 509,709 529,947 ---------- ---------- Total Liabilities and Shareholders Equity $1,541,882 $1,484,317
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. Net Operating Income: Gross revenues, including interest income, less rental expenses and real estate taxes. 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 center 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.