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, 2000 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 March 31, 1999. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at March 31, 2000 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 5, 2000 /s/ Cecily A. Ward -------------------------------------- Cecily A. Ward Vice President, Chief Financial Officer & Treasurer -2-
EXHIBIT INDEX Exh No. Exhibit Page No. - ------- ------- -------- 99 Supplemental portfolio information at March 31, 2000 4 -3-
FEDERAL REALTY INVESTMENT TRUST Supplemental Information March 31, 2000 TABLE OF CONTENTS 1. Debt Summary...................................................... E-2 2. Occupancy Percentage Leased........................................... E-3 Regional Breakdown.......................................... E-4 3. Sales/Occupancy Cost.............................................. E-5 4. Leases Signed Analysis Comparable and Non-Comparable............................... E-6 5. Street Retail Operating & Development Overview.................... E-7 6. Development Pipeline.............................................. E-8 7. First Quarter Earnings Press Release, May 4, 2000................. E-9 8. Glossary of Terms................................................. E-12 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, 2000 - -------------------------------------------------------------------------------- Balance Maturity Rate (in thousands) -------- ---- -------------- Mortgages Leesburg Plaza 10/01/08 6.10% $ 9,900 Federal Plaza 03/10/01 8.95% 27,057 Tysons Station 09/01/01 9.875% 4,049 Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400 -------------- $ 50,406 ============== Notes payable Revolving credit facilities libor +.65% $184,100 Term note with banks libor +.75% 125,000 Note issued in connection with tenant buyout at Queen Anne Plaza 01/15/06 8.875% 901 Note issued in connection with renovation of Perring Plaza 01/31/13 10.00% 2,579 Note issued in connection with land purchase 08/14/00 libor + 1.5% 3,400 Other various various 141 -------------- $316,121 ============== 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% 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 8.75% Notes 12/01/09 8.750% 175,000 -------------- $485,289 ============== Total fixed rate debt $529,916 62.21% Total variable rate debt 321,900 37.79% -------------- --------- Total debt $851,816 100.00% ============== ========= Weighted average interest rate: ------------------------------ Fixed rate debt 7.45% Variable on revolving facilities 6.68% (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 three months ended March 31, 2000. E-2
Federal Realty Investment Trust Percentage Leased Analysis March 31, 2000 - ---------------------------------------------------------------------------------------------------------------------------------- Overall Operating Occupancy (Quarter to Quarter Analysis) At March 31, 2000 At March 31, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,171,079 13,506,203 95% 14,563,620 13,839,142 95% Rollingwood Apartments (# of units) 282 282 100% 282 280 99% Overall Operating Occupancy (Rolling 12 Months) At March 31, 2000 At December 31, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,171,079 13,506,203 95% 14,037,093 13,494,066 96% Rollingwood Apartments (# of units) 282 282 100% 282 278 98% Overall Operating Occupancy (Rolling 12 Months) At September 30, 1999 At June 30, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,348,626 13,658,207 95% 14,541,750 13,797,209 95% Rollingwood Apartments (# of units) 282 282 100% 282 280 99% - ------------------------------------------------------------------------------------------------------------------------------------ Same Center Occupancy (Quarter to Quarter Comparison) At March 31, 2000 At March 31, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,066,413 13,418,914 95% 13,844,380 13,233,178 96% Rollingwood Apartments (# of units) 282 282 100% 282 278 99% Same Center Occupancy (Rolling 12 Months) At March 31, 2000 At December 31, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,066,413 13,418,914 95% 13,865,499 13,345,911 96% Rollingwood Apartments (# of units) 282 282 100% 282 278 98% Same Center Occupancy (Rolling 12 Months) At September 30, 1999 At June 30, 1999 --------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------------- ------------ ---------- ------------- ------------ ---------- ------------- Retail Properties (leasable square feet) 14,304,720 13,613,931 95% 13,622,710 12,891,283 95% Rollingwood Apartments (# of units) 282 282 100% 282 280 99% E-3
Federal Realty Investment Trust Regional Occupancy Analysis March 31, 2000 - -------------------------------------------------------------------- Total Square Occupancy Region Footage 03/31/00 - -------------------------------------------------------------------- Northeast 7,041,792 96% Mid-Atlantic 5,922,127 94% West Coast 1,207,160 94% - -------------------------------------------------------------------- Total Square Occupancy Region Footage 03/31/00 - -------------------------------------------------------------------- Northeast Anchor 4,317,789 98% Small Shops 2,724,003 93% Mid-Atlantic Anchor 2,731,889 96% Small Shops 3,190,238 93% West Anchor 274,915 100% Small Shops 932,245 92% E-4
Federal Realty Investment Trust 1999 Sales/Occupancy Costs Average Average Average Occupancy Occupancy Costs Sales Per Cost per as Percentage Square Foot Square Foot of Sales ----------- ----------- --------------- Reporting Tenants $308.35 $16.98 5.5% Reporting Anchor Tenants $323.73 $12.42 3.8% Reporting Small Shop Tenants $282.48 $24.64 8.7% E-5
Federal Realty Investment Trust Retail Leasing Activity March 31, 2000 - --------------------------------------------------------------------------------------------------------------------------------- Comparable Estimated Weighted Average Prior Average Current Percentage Tenant Number of Square Average Lease Rent Per Rent Per Annualized Increase over Improvement Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent Prior Rent Costs - ----------------- ------------- --------- ------------- ------------- --------------- ---------------- ------------- ----------- 1st Quarter 2000 64 297,054 9.1 $16.38 $18.89 $ 746,945 15% $ 5,128,000 4th Quarter 1999 79 270,278 8.7 $20.14 $24.32 $1,129,625 21% $ 2,710,000 3rd Quarter 1999 87 324,332 7.3 $16.02 $20.34 $1,401,643 27% $ 3,799,000 2nd Quarter 1999 74 237,065 5.9 $18.03 $21.70 $ 871,258 20% $ 1,799,000 Total 304 1,128,729 8.4 $17.52 $21.20 $4,149,471 21% $13,436,000 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 - ------------------- --------------- -------- -------------- --------------- ---------- ------------- 1st Quarter 2000 10 50,126 12.8 $24.07 $1,206,432 $1,026,000 4th Quarter 1999 9 39,545 8.7 $18.13 $ 717,011 $ 389,000 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 Total 38 207,211 9.6 $22.10 $4,578,682 $2,027,000 E-6
Federal Realty Investment Trust Street Retail Operating & Development Overview March 31, 2000 For the year ended December 31, March 31, (in thousands, except sf data) 1996 1997 1998 1999 2000 ----------------------------------------------------------------------------- Real Estate Assets (1) $ 164,931 $ 288,020 $ 365,874 $ 449,182 $ 475,000 Revenues $ 20,555 $ 31,998 $ 42,643 $ 50,288 $ 13,924 Net Operating Income $ 12,538 $ 20,345 $ 28,660 $ 34,774 $ 10,134 Square Feet (2) 1,122,737 1,502,807 1,601,849 1,691,593 1,715,244 (1) At March 31, 2000, includes $111 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/7 125,347 Village at Shirlington 203,359 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 66,962 New York Hermosa Beach/1 5,930 Forest Hills/4 91,593 Post Street/1 98,670 Old Town Center 101,000 Santana Row N/A (2) MID-ATLANTIC Third Street Promenade/8 152,597 District of Columbia Hollywood Blvd./3 198,464 Sam's Park N Shop 49,706 Illinois Florida Evanston/2 18,813 Winter Park/2 28,446 Oak Street/1 5,000 Maryland Texas Bethesda Row 330,935 (2) Houston Street/10 N/A (2) E-7
FEDERAL REALTY INVESTMENT TRUST Development Pipeline March 31, 2000 Total Expected Cost Estimate To Complete Completed Stabilized Principal Project Specifications To Date 2000 2001 2002 Cost Return Tenants - ---------------------------------------------------------------------------------------------------------------------------------- COMPLETED DEVELOPMENTS Bethesda Row - Elm Street 15,000 sf retail $ 8 $ 1 $ 9 11% Cafe Deluxe Bethesda, Maryland 30,000 sf office Vitamin Superstore Three Dog Bakery Prudential Long & Foster - ----------------------------------------------------------------------------------------------------------------------------- CONSTRUCTION IN PROGRESS Bethesda Row - Woodmont East 60,000 sf retail $ 13 $ 15 $ 4 $ 32 11% Landmark Theatres Bethesda, Maryland 80,000 sf office Pentagon Row 300,000 sf retail (1) $ 12 $ 48 $ 8 $ 68 11% Harris Teeter Arlington, Virginia 500 apartment units Bed, Bath & Beyond ----- ------ ----- ----- ----- Bally's Fitness Hudson Trail $ 25 $ 63 $ 12 $ 0 $ 100 Outfitters - ---------------------------------------------------------------------------------------------------------------------------------- TO DEVELOP Houston Street 165,000 sf retail $ 22 San Antonio, Texas 80,000 sf office 500 hotel rooms (2) Santana Row 680,000 sf retail $ 63 San Jose, California 1,200 residential units 200 hotel rooms (2) The Shops at Tanasbourne 300,000 sf retail $ 12 Portland, Oregon 12,000 sf office Lindbergh Center 300,000 sf retail (1) $ 1 Atlanta, Georgia 320 apartments 120 hotel rooms 290 condominiums 1.3 million sf office ----- $ 98 - ----------------------------------------------------------------------------------------------------------------------------------- Total $ 131 ===== (1) Federal Realty will develop only the retail component of this project. (2) Federal Realty will not develop the hotel component of this project. E-8
[LOGO] [LETTERHEAD OF FEDERAL REALTY INVESTMENT TRUST] FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FIRST QUARTER 2000 OPERATING RESULTS May 4, 2000 Rockville, Maryland Federal Realty Investment Trust (NYSE:FRT) reported today that funds from operations for the first quarter of 2000 increased 5.9% to $25.1 million from $23.7 million in the first quarter of 1999. On a per share basis, funds from operations rose 6.9% to $.62 in the first quarter of 2000 from $.58 in the comparable quarter of 1999. A comparison of property operations for the first quarter of 2000 versus the first quarter of 1999 shows the following: . Rental income increased 8.1% to $64.2 million in 2000 from $59.4 million in 1999. When adjusted to exclude properties acquired, sold and developed during 1999 and 2000, rental income increased 7.2% to $62.6 million in 2000 from $58.4 million in 1999. . Net operating income increased 9.2% to $45.9 million in the first quarter of 2000 from $42.0 million in 1999. When adjusted to exclude properties acquired, sold and developed during 1999 and 2000, net operating income increased 8.1% to $44.7 million in 2000 from $41.4 million in 1999. . During the first quarter of 2000, the Trust signed leases for a total 347,000 square feet of retail space. On a same space basis, the Trust re-leased 297,000 square feet of retail space at an average increase in rent per square foot of 15%. The weighted average rent on these leases was $18.89 per square foot compared to the previous average rent of $16.38 per square foot. . At March 31, 2000, the Trust's overall portfolio was 95.3% leased compared to 95.0% a year ago. Same property occupancy was 95.4% leased at March 31, 2000 compared to 95.6% a year ago. E-9
Commenting on the results, Steven Guttman, President and Chief Executive Officer stated, "We are pleased with our first quarter results. While rising interest rates will likely put pressure on our funds from operation growth over the next 12 to 18 months, our high quality core portfolio should continue to generate above average internal growth as the Trust continues to execute its mixed-use development strategy. Construction is proceeding apace on Phase IV of our Bethesda Row master plan development in Bethesda, Maryland and we are on target for a spring 2001 opening. Likewise, we are making excellent progress on our Pentagon Row project in Arlington, Virginia. The project is presently 85% pre-leased with a targeted opening in the second half of 2001." 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 124 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. ### E-10
Financial Highlights (in thousands, except per share data) Three Months Ended March 31, (Unaudited) OPERATING RESULTS 2000 1999 - ----------------- ---- ---- Revenues Rental income $ 64,232 $ 59,433 Other property income 2,765 2,272 Interest income 2,107 1,878 ---------- ---------- 69,104 63,583 Expenses Rental 14,620 13,648 Real estate taxes 6,457 6,012 Interest 16,493 15,133 Administrative 2,922 2,254 Depreciation and amortization 12,655 12,281 ---------- ---------- 53,147 49,328 ---------- ---------- Operating income before investors' share of operations 15,957 14,255 Investor's share of operations (1,818) (701) ---------- ---------- Net income $ 14,139 $ 13,554 Dividends on preferred stock (1,988) (1,988) ---------- ---------- Net income a vailable for common shareholders $12,151 $11,566 ========== ========== Earnings per common share, basic $0.31 $0.29 ========== ========== Earnings per common share, diluted $0.31 $0.29 ========== ========== Weighted average shares outstanding, basic 39,444 39,435 Weighted average shares outstanding, diluted 40,595 40,545 Funds from Operations Net income available for common shareholders $ 12,151 $ 11,566 Add: depreciation and amortization of real estate assets 11,487 11,128 Add: amortization of initial direct costs of leases 830 718 Add: income attributable to operating partnership units 613 264 ---------- ---------- Funds from operations, diluted $ 25,081 $ 23,676 ========== ========== Funds from operations per share, diluted $0.62 $0.58 ========== ========== March 31, December 31, BALANCE SHEET DATA 2000 1999 - ------------------ ---- ---- Assets (Unaudited) Real estate, at cost $1,760,541 $1,721,459 Accumulated depreciation and amortization (327,847) (317,921) ---------- ---------- 1,432,694 1,403,538 Mortgage notes receivable 56,943 53,495 Cash and investments 13,711 11,738 Receivables 19,961 23,130 Other assets 38,793 42,147 ---------- ---------- Total assets $1,562,102 $1,534,048 ========== ========== Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 172,333 $ 172,573 Notes payable 316,121 162,768 Senior Notes 410,000 510,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 110,362 111,591 Shareholders' Equity 477,997 501,827 ---------- ---------- $1,562,102 $1,534,048 ========== ========== E-11
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 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-12