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, 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 June 30, 2000. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at June 30, 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 /s/ Cecily A. Ward Date: July 26, 2000 _________________________________ Cecily A. Ward Vice President, Chief Financial Officer and Treasurer -2-
EXHIBIT INDEX Exh No. Exhibit Page No. - ------- ------- -------- 99 Supplemental portfolio information at June 30, 2000 4 -3-
EXHIBIT 99 FEDERAL REALTY INVESTMENT TRUST Supplemental Information June 30, 2000 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. Development Pipeline............................................... E-7 6. Second Quarter Earnings Press Release, July 26, 2000............... E-8 7. Glossary of Terms.................................................. E-11 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, 2000 - ----------------------------------------------------------------------------------------------------------------------------------- Balance Maturity Rate (in thousands) -------------- Mortgages Leesburg Plaza 10/01/08 6.10% $ 9,900 Federal Plaza 03/10/01 8.95% 26,933 Tysons Station 09/01/01 9.875% 4,029 Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400 -------------- $ 50,262 ============== Notes payable Revolving credit facilities libor + .65%(b) $ 159,600 Term note with banks libor + .75%(c) 125,000 Construction Loan on Woodmont East {May be extended to 2/29/04} 02/28/02 libor + 1.5% 8,048 Note issued in connection with renovation of Perring Plaza 01/31/13 10.00% 2,554 Note issued in connection with land purchase 08/14/00 libor + 1.5% 3,400 Other various various 128 -------------- $ 298,730 ============== 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 (d) 03/10/04 6.370% 39,500 6.99% Medium Term Notes (d) 03/10/06 6.894% 40,500 8.75% Notes 12/01/09 8.750% 175,000 -------------- $ 485,289 ============== Total fixed rate debt $ 528,833 63.39% Total variable rate debt 305,448 36.61% -------------- ------- Total debt $ 834,281 100.00% ============== ======= Weighted average interest rate: ------------------------------- Fixed rate debt 7.44% Variable on revolving facilities 6.88% (e) 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) Effective July 17, 2000 interest rate will increase to libor + .80% (c) Effective July 17,2000 interest rate will increase to libor + .95% (d) The Trust purchased interest rate swaps or hedges on these notes, thereby decreasing the effective interest. (e) Weighted average interest rate on revolving credit facilities for six months ended June 30, 2000. E-2
Federal Realty Investment Trust Percentage Leased Analysis June 30, 2000 - --------------------------------------------------------------------------------------------------------------------------------- Overall Operating Occupancy (Quarter to Quarter Analysis) At June 30, 2000 At June 30, 1999 --------------------------------- ------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ------- --------- ----------- ---------- ---------- ----------- Retail Properties (leasable square feet) 14,179,590 13,619,718 96% 14,541,750 13,797,209 95% Rollingwood Apartments (# of units) 282 276 98% 282 280 99% Overall Operating Occupancy (Rolling 12 Months) At June 30, 2000 At March 31, 2000 ------------------------------------- -------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ---------- ----------- ----------- --------- ---------- ------------- Retail Properties (leasable square feet) 14,179,596 13,619,718 96% 14,171,049 13,506,200 95% Rollingwood Apartments (# of units) 282 276 98% 282 282 100% Overall Operating Occupancy (Rolling 12 Months) At December 31, 1999 At September 30, 1999 -------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ---------- ------------ ------------- ----------- ----------- ------------- Retail Properties (leasable square feet) 14,037,093 13,494,066 96% 14,348,626 13,658,207 95% Rollingwood Apartments (# of units) 282 278 99% 282 282 100% - ------------------------------------------------------------------------------------------------------------------------------------ Same Center Occupancy (Quarter to Quarter Comparison) At June 30, 2000 At June 30, 1999 -------------------------------------- --------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ----------- ---------- ----------- ---------- ---------- ------------ Retail Properties (leasable square feet) 14,074,930 13,521,971 96% 13,622,710 12,891,283 95% Rollingwood Apartments (# of units) 282 276 98% 282 280 99% Same Center Occupancy (Rolling 12 Months) At June 30, 2000 At March 31, 2000 -------------------------------------- ---------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ----------- ---------- ----------- ---------- ---------- ------------- Retail Properties (leasable square feet) 14,074,930 13,521,971 96% 14,066,413 13,418,914 95% Rollingwood Apartments (# of units) 282 276 98% 282 282 100% Same Center Occupancy (Rolling 12 Months) At December 31, 1999 At September 30, 1999 --------------------------------- ---------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------------ ----------- ---------- ----------- ---------- ---------- ------------- Retail Properties (leasable square feet) 13,865,499 13,345,911 96% 14,304,720 13,613,931 95% Rollingwood Apartments (# of units) 282 278 98% 282 282 100% E-3
Federal Realty Investment Trust Regional Occupancy Analysis June 30, 2000 ================================================================================ Total Square Occupancy Region Footage 06/30/00 Northeast 7,054,592 96% Mid-Atlantic 5,916,070 96% West Coast 1,208,934 97% ================================================================================ Total Square Occupancy Region Footage 06/30/00 - ------------------------------ -------------------- --------------- Northeast Anchor 4,323,084 98% Small Shops 2,731,508 94% Mid-Atlantic Anchor 2,790,240 98% Small Shops 3,125,830 91% West Anchor 274,915 100% Small Shops 934,019 92% E-4
Federal Realty Investment Trust Retail Leasing Activity June 30, 2000 - ------------------------------------------------------------------------------------------------------------------------------- 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 - ---------------------- --------------- ------------- ----------------- ---------------- ---------------- ------------------ 2nd Quarter 2000 67 214,111 5.8 $16.97 $18.85 $ 402,991 1st Quarter 2000 64 297,054 9.1 $16.38 $18.89 $ 746,945 4th Quarter 1999 79 270,278 8.7 $20.14 $24.32 $1,129,625 3rd Quarter 1999 87 324,332 7.3 $16.02 $20.34 $1,401,643 Total 297 1,105,775 7.9 $17.31 $20.64 $3,681,204 Comparable Estimated Percentage Tenant Increase Improvement Rolling 12 Months over Prior Rent Costs - ----------------------- ------------------ ---------------- 2nd Quarter 2000 11% $ 865,868 1st Quarter 2000 15% $ 5,128,000 4th Quarter 1999 21% $ 2,710,000 3rd Quarter 1999 27% $ 3,799,000 Total 19% $12,502,868 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 - ----------------------- --------------- ----------- -------------- ------------------- --------------- ----------------- 2nd Quarter 2000 16 84,287 11.7 $29.37 $2,475,607 $ 248,120 1st Quarter 2000 10 50,126 12.8 $24.07 $1,206,432 $1,025,678 4th Quarter 1999 9 39,545 8.7 $18.13 $ 717,011 $ 389,089 3rd Quarter 1999 12 105,948 10.2 $20.32 $2,153,331 $ 520,563 Total 47 279,906 10.6 $23.41 $6,552,381 $2,183,450 E-5
Federal Realty Investment Trust Street Retail Operating & Development Overview June 30, 2000 For the year ended December 31, June 30, (in thousands, except sf data) 1996 1997 1998 1999 2000 ------------------------------------------------------------------------------ Real Estate Assets (1) $ 164,931 $ 288,020 $ 365,874 $ 449,182 $ 508,849 Revenues $ 20,555 $ 31,998 $ 42,643 $ 50,288 $ 28,042 Net Operating Income $ 12,538 $ 20,345 $ 28,660 $ 34,774 $ 20,176 Square Feet (2) 1,122,737 1,502,807 1,601,849 1,691,593 1,762,785 (1) At June 30, 2000, includes $121 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 69,361 Fifth Avenue/5 66,962 New York Hermosa Beach/1 5,930 Forest Hills/4 90,580 Post Street/1 99,144 Old Town Center 101,000 Santana Row N/A (2) MID-ATLANTIC Third Street Promenade/8 169,858 District of Columbia Hollywood Blvd./3 198,464 Sam's Park N Shop 49,706 214 Wilshire Blvd 29,040 Illinois Florida Evanston/2 18,813 Winter Park/2 28,446 Oak Street/1 5,000 Maryland Texas Bethesda Row 330,735 (2) Houston Street/10 N/A (2) E-6
FEDERAL REALTY INVESTMENT TRUST Development Pipeline June 30, 2000 Total Cost Estimate To Complete Completed Project Specifications To Date 2000 2001 2002 Cost - ------------------------------------------------------------------------------------------------------------------------------- ( $ i n m i l l i o n s ) COMPLETED DEVELOPMENTS Bethesda Row - Elm Street 15,000 sf retail $ 8 $ 1 $ 9 ======== ======== ======== Bethesda, Maryland 30,000 sf office - ------------------------------------------------------------------------------------------------------------------------------- DEVELOPMENT IN PROGRESS Bethesda Row - Woodmont East 52,000 sf retail $ 17 $11 $ 4 $ 32 Bethesda, Maryland 78,000 sf office Pentagon Row 300,000 sf retail (1) $ 19 $41 $ 8 $ 68 Arlington, Virginia 500 apartment units -------- -------- -------- -------- -------- $ 36 $52 $12 $0 $100 - ------------------------------------------------------------------------------------------------------------------------------- FUTURE DEVELOPMENT (3) Santana Row 680,000 sf retail $ 71 San Jose, California 1,200 residential units 200 hotel rooms (2) The Shops at Tanasbourne 300,000 sf retail $ 13 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 -------- $ 85 - ------------------------------------------------------------------------------------------------------------------------------- Total New Development and Construction in Progress $121 ======== Expected Stabilized Principal Project Return Tenants - ------------------------------------------------------------------------------- COMPLETED DEVELOPMENTS Bethesda Row - Elm Street 11% Cafe Deluxe Bethesda, Maryland Vitamin Superstore Three Dog Bakery Prudential Long & Foster - ------------------------------------------------------------------------------- DEVELOPMENT IN PROGRESS Bethesda Row - Woodmont East 11% Landmark Theatres Bethesda, Maryland Jaleo Restaurant OpNet Technologies Pentagon Row 11% Harris Teeter Arlington, Virginia Bed, Bath & Beyond Bally's Fitness Hudson Trail Outfitters - ------------------------------------------------------------------------------- FUTURE DEVELOPMENT (3) Santana Row San Jose, California The Shops at Tanasbourne Portland, Oregon Lindbergh Center Atlanta, Georgia - ------------------------------------------------------------------------------- (1) Federal Realty will develop only the retail component of this project. (2) Federal Realty will not develop the hotel component of this project. (3) Does not include redevelopment projects, such as Houston Street.
Tacie Fox Vice President Investor Relations & Capital Markets 301/998-8352 FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2000 OPERATING RESULTS July 26, 2000 Rockville, Maryland Federal Realty Investment Trust (NYSE:FRT) reported today that funds from operations for the second quarter of 2000 increased 5.5% to $25.5 million from $24.2 million in the second quarter of 1999. On a per share diluted basis, funds from operations rose 6.7% to $.64 in the second quarter of 2000 from $.60 in the comparable quarter of 1999. Growth from 1999 to 2000 was primarily generated from the core portfolio. There was minimal impact from acquisitions and re-developments. . Rental income increased 7.7% to $64.3 million in 2000 from $59.7 million in 1999, primarily due to recent re-developments and re- tenanting. . Net operating income increased 7.0% to $47.0 million in 2000 from $43.9 million in 1999. . During the second quarter of 2000, the Trust signed leases for a total 298,000 square feet of retail space. On a same space basis, the Trust re-leased 214,000 square feet of retail space at an average increase in rent per square foot of 11%. The weighted average rent on these leases was $18.85 per square foot compared to the previous average rent of $16.97 per square foot. . Overall occupancy stood at 96% at June 30, 2000 compared to 95% a year ago. E-8
Funds from operations also improved for the first six months of 2000 increasing 5.7% to $50.6 million from $47.9 million in the first half of 1999. On a per share diluted basis, funds from operations advanced 6.8% to $1.26 per share for the first six months of 2000 compared to $1.18 for the comparable period of 1999. Commenting on the results, Steven Guttman, president and chief executive officer stated, "We are pleased with our operating results in the first half of this year and are on target to meet our 2000 financial goals. While higher interest costs and asset sales will likely put short-term pressure on funds from operations growth in 2001, our high quality core portfolio should continue to generate strong internal growth as the Trust continues to execute its mixed-use development strategy." Guttman continued, "On the development front, construction is proceeding according to both plan and budget for phase IV of our Bethesda Row master planned development in Bethesda, Maryland and on our Pentagon Row project in Arlington, Virginia. These developments are targeted to open at the end of this year and will contribute to earnings beginning in 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 properties consisting of community and neighborhood shopping centers, urban mixed-use main street retail and apartment 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. Certain matters discussed within this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Federal Realty Investment Trust believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors of a general nature that could cause actual results to differ materially from Federal's expectations are detailed from time to time in the company's SEC reports and filings, including its annual report on Form 10k. Federal assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. ### E-9
FINANCIAL HIGHLIGHTS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, June 30, OPERATING RESULTS 2000 1999 2000 1999 - ----------------- ---- ---- ---- ---- Revenues Rental income $ 64,251 $ 59,674 $ 128,483 $ 119,107 Other property income 2,700 2,555 5,465 4,827 Interest and other income 1,855 1,966 3,962 3,844 --------- --------- ---------- ---------- 68,806 64,195 137,910 127,778 Expenses Rental 13,422 12,456 28,042 26,104 Real estate taxes 6,522 5,855 12,979 11,867 Interest 17,036 15,385 33,529 30,518 Administrative 2,868 3,160 5,790 5,414 Depreciation and amortization 13,338 12,651 25,993 24,932 --------- --------- ---------- ---------- 53,186 49,507 106,333 98,835 --------- --------- ---------- ---------- Operating income before investors' share of operations 15,620 14,688 31,577 28,943 Investor's share of operations (1,227) (823) (3,045) (1,524) --------- --------- ---------- ---------- Income before gain (loss) on sale of real estate 14,393 13,865 28,532 27,419 Gain (Loss) on sale of real estate 3,681 (7,050) 3,681 (7,050) --------- --------- ---------- ---------- Net Income $ 18,074 $ 6,815 $ 32,213 $ 20,369 Dividends on preferred stock (1,987) (1,987) (3,975) (3,975) --------- --------- ---------- ---------- Net income available for common shareholders $ 16,087 $ 4,828 $ 28,238 $ 16,394 ========= ========= ========== ========== Earnings per common share, basic $ 0.42 $ 0.12 $ 0.73 $ 0.41 ========= ========= ========== ========== Earnings per common share, diluted $ 0.41 $ 0.12 $ 0.72 $ 0.41 ========= ========= ========== ========== Weighted average shares outstanding, basic 38,601 39,543 38,871 39,489 Weighted average shares outstanding, diluted 39,782 40,682 40,037 40,613 Funds from operations Net income available for common shareholders $ 16,087 $ 4,828 $ 28,238 $ 16,394 Add: (gain) loss on sale of real estate (3,681) $ 7,050 (3,681) $ 7,050 Add: depreciation and amortization of real estate assets 12,136 11,489 23,623 22,617 Add: amortization of initial direct costs of leases 870 742 1,700 1,460 Add: income attributable to operating partnership units 131 97 744 361 --------- --------- ---------- ---------- Funds from operations $ 25,543 $ 24,206 $ 50,624 $ 47,882 ========= ========= ========== ========== Funds from operations per share, diluted $ 0.64 $ 0.60 $ 1.26 $ 1.18 ========= ========= ========== ========== June 30, December 31, BALANCE SHEET DATA 2000 1999 - ------------------ ---- ---- Assets Real estate, at cost $1,761,045 $1,721,459 Accumulated depreciation and amortization (337,603) (317,921) ---------- ---------- 1,423,442 1,403,538 Mortgage notes receivable 45,936 53,495 Cash and investments 18,686 11,738 Receivables 18,807 23,130 Other assets 37,612 42,147 ---------- ---------- Total assets $1,544,483 $1,534,048 ========== ========== Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 172,086 $ 172,573 Notes payable 298,730 162,768 Senior Notes 410,000 510,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 110,001 111,591 Shateholders' Equity 478,377 501,827 ---------- ---------- $1,544,483 $1,534,048 ========== ========== E-10
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-11