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, 2001
Federal Realty Investment Trust
-------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-07533 52-0782497
-------- ------- ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1626 East Jefferson Street, Rockville, Maryland 20852-4041
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(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, 2001.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at June 30, 2001
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 30, 2001 ___________________________________________
Cecily A. Ward
Vice President, Chief Financial Officer and Treasurer
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EXHIBIT INDEX
Exh No. Exhibit Page No.
------- ------- --------
99 Supplemental portfolio information at June 30, 2001 4
-3-
Exhibit 99
FEDERAL REALTY INVESTMENT TRUST
Supplemental Information
June 30, 2001
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. Development Pipeline............................................... E-6
5. Second Quarter Earnings Press Release, July 30, 2001............... E-7
6. 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)
June 30, 2001
------------------------------------------------------------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
-------- ----
Mortgages
Leesburg Plaza 10/01/08 6.510% $ 9,900
Federal Plaza 06/01/11 6.750% 36,468
Tysons Station 09/01/01 9.875% 3,945
164 E Houston Street 10/06/08 7.500% 321
Barracks Road 11/01/15 7.950% 44,300
Hauppauge 11/01/15 7.950% 16,700
Lawrence Park 11/01/15 7.950% 31,400
Wildwood 11/01/15 7.950% 27,600
Wynnewood 11/01/15 7.950% 32,000
Brick Plaza 11/01/15 7.415% 33,000
Escondido (Municipal bonds) 10/01/16 variable (a) 9,400
-----------
$ 245,034
===========
Notes payable
Revolving credit facilities 12/19/03 libor +.80% $ 158,500
Term note with banks 12/19/03 6.22% (b) 125,000
Construction loan on Woodmont East
{may be extended to 8/29/04} 08/29/02 libor + 1.25% 21,221
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,447
Note issued in connection with land purchase 08/15/01 libor + 1.5% 3,400
Other various various 78
-----------
$ 310,646
===========
Unsecured Public Debt
5 1/4% Convertible subordinated debentures 04/30/02 5.250% $ 289
===========
5 1/4% Convertible subordinated debentures 10/28/03 5.250% $ 75,000
===========
8% Notes (fixed) 04/21/02 8.000% $ 25,000
6.625% 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 (c) 03/10/04 6.370% 39,500
6.99% Medium Term Notes (c) 03/10/06 6.894% 40,500
8.75% Notes 12/01/09 8.750% 175,000
-----------
$ 410,000
===========
Total fixed rate debt $ 723,448 69.50%
Total variable rate debt 317,521 30.50%
----------- -------
Total debt $ 1,040,969 100.00%
=========== =======
Weighted average interest rate:
-------------------------------
Fixed rate debt 7.46%
Variable on revolving credit facilities 6.21% (d)
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 this note, thereby
locking in the interest rate at 6.22%.
(c) The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
(d) Weighted average interest rate on revolving credit facilities and term note
for six months ended June 30, 2001.
DEBT MATURITIES (excluding capital leases and interest rate swaps)
(In thousands) Cumulative
Percent of Percent of
Scheduled Debt Debt
Year Amortization Maturities Total Expiring Expiring
------------------------------------------------------------------------------------------
2001 $ 279 $ 7,330 $ 7,609 0.7% 0.7%
2002 536 25,289 25,825 2.5% 3.2%
2003 736 358,500 359,236 34.5% 37.7%
2004 2,692 60,721 63,413 6.2% 43.9%
2005 2,936 40,000 42,936 4.1% 48.0%
2006 3,274 40,500 43,774 4.2% 52.2%
2007 3,537 3,537 0.3% 52.5%
2008 3,758 9,541 13,299 1.3% 53.8%
2009 3,923 175,045 178,968 17.2% 71.0%
2010 4,242 4,242 0.4% 71.4%
Thereafter 21,253 276,877 298,130 28.6% 100.0%
-----------------------------------------------------
$ 47,166 $ 993,803 $ 1,040,969 100.00%
=====================================================
Federal Realty Investment Trust
Percentage Leased Analysis
June 30, 2001
Overall Operating Occupancy
(Quarter to Quarter Analysis) At June 30, 2001 At June 30, 2000
------------------------------------ -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 14,401,918 13,763,220 96% 14,179,596 13,619,718 96%
Rollingwood Apartments (# of units) 282 281 99% 282 276 98%
Overall Operating Occupancy
(Rolling 12 Months) At June 30, 2001 At March 31, 2001
------------------------------------ -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ---------- ---------- --------- ---------- ---------- ---------
Retail Properties (leasable square feet) 14,401,918 13,763,220 96% 14,609,901 13,938,466 95%
Rollingwood Apartments (# of units) 282 281 99% 282 281 99%
Overall Operating Occupancy
(Rolling 12 Months) At December 31, 2000 At September 30, 2000
------------------------------------ -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ----------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 14,101,425 13,504,384 96% 13,929,402 13,397,528 96%
Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
---------------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) At June 30, 2001 At June 30, 2000
------------------------------------ -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ----------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 13,676,328 13,072,483 96% 13,632,714 13,093,817 96%
Rollingwood Apartments (# of units) 282 281 99% 282 276 98%
Same Center Occupancy
(Rolling 12 Months) At June 30, 2001 At March 31, 2001
------------------------------------ --------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ----------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 13,676,328 13,072,483 96% 13,997,565 13,392,116 96%
Rollingwood Apartments (# of units) 282 281 99% 282 281 99%
Same Center Occupancy
(Rolling 12 Months) At December 31, 2000 At September 30, 2000
------------------------------------ --------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
---------------------------------------- ----------- ---------- --------- ----------- ---------- ---------
Retail Properties (leasable square feet) 13,748,913 13,188,363 96% 13,563,527 13,038,704 96%
Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
Federal Realty Investment Trust
Regional Occupancy Analysis
June 30, 2001
================================================================================
Total Square Occupancy
Region Footage 06/30/01
--------------------- ------------------ -----------------
Northeast 7,495,175 95%
Mid-Atlantic 5,811,605 96%
West Coast 1,095,138 96%
================================================================================
Total Square Occupancy
Region Footage 06/30/01
--------------------- ----------------- -----------------
Northeast
Anchor 4,642,552 98%
Small Shops 2,852,623 90%
Mid-Atlantic
Anchor 2,606,015 98%
Small Shops 3,205,590 94%
West
Anchor 351,352 100%
Small Shops 743,786 94%
Federal Realty Investment Trust
Retail Leasing Activity
June 30, 2001
====================================================================================================================================
Comparable
Percentage Estimated
Weighted Average Prior Average Current Increase Tenant
Number of Square Average Lease Rent Per Rent Per Annualized over Prior Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent Rent Costs
-------------------- -------------- -------- ---------------- ------------- --------------- ---------------- --------- ------------
2nd Quarter 2001 65 206,158 7.3 $19.86 $24.78 $1,014,599 25% $1,697,000
1st Quarter 2001 63 233,106 6.0 $17.27 $19.64 $ 554,492 14% $ 614,000
4th Quarter 2000 69 197,642 5.9 $19.40 $21.58 $ 430,649 11% $ 313,000
3rd Quarter 2000 52 282,354 10.3 $12.85 $15.29 $ 687,804 19% $1,407,000
Total 249 919,260 7.3 $16.95 $19.87 $2,687,544 17% $4,031,000
Non-Comparable Estimated
Weighted Annualized Tenant
Number of Square Average Lease Average Rent Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs
-------------------- -------------- -------- ---------------- --------------- --------------- ----------------
2nd Quarter 2001 12 135,596 12.3 $17.22 $ 2,335,496 $ 448,000
1st Quarter 2001 16 299,677 19.5 $14.95 $ 4,479,734 $ 735,000
4th Quarter 2000 23 101,245 10.2 $31.82 $ 3,221,510 $ 0
3rd Quarter 2000 26 138,794 17.3 $30.05 $ 4,170,745 $ 116,000
Total 77 675,312 15.6 $21.04 $14,207,485 $1,299,000
FEDERAL REALTY INVESTMENT TRUST
Development Pipeline
June 30, 2001
Total Expected
Cost Estimate To Complete Completed Stabilized Principal
Project Specifications To Date 2001 Thereafter Cost Return Tenants
====================================================================================================================================
( $ i n m i l l i o n s )
DEVELOPMENT IN PROGRESS
Bethesda Row - Woodmont East 52,000 sf retail $ 29 $ 2 $ 1 $ 32 11% Jaleo
Bethesda, Maryland 78,000 sf office Restaurant
OpNet
Technologies
Pentagon Row 300,000 sf retail (1) $ 60 $ 23 $ 4 $ 87 (2) 9% (2) Bed, Bath &
Arlington, Virginia 500 apartment units Beyond
Harris
Teeter
Santana Row (Phase I) 538,000 sf retail $170 $111 $194 $475 8.5% - 9% (3) Borders
San Jose, California 501 residential units Books
214 hotel rooms Crate &
==== ==== ==== ==== Barrel
Gucci
$259 $136 $199 $594 Hotel
LAND FOR DEVELOPMENT Valencia
Tommy
The Shops at Tanasbourne 400,000 sf retail $ 15 Bahama
Portland, Oregon 12,000 sf office
====
$274
PREDEVELOPMENT
Lindbergh City Center 300,000 sf retail (1) $ 1
Atlanta, Georgia 320 apartments
120 hotel rooms
290 condominiums
1.3 million sf office
====
Total In Progress and
Future Development $275
====
(1) Federal Realty will develop only the retail component of this project.
(2) Estimated total project cost before any recovery in litigation of damages
incurred as a result of defaults under the original construction contract
and replacement of the General Contractor. Every $1 million in recovered
funds improves the stabilized return by 10 basis points.
(3) Assumes all buildings in Phase I are open and operating and that
residential rents of $3.07 per foot per month have been attained.
FOR IMMEDIATE RELEASE Contact:
July 30, 2001 Andrew Blocher
Vice President, Investor Relations & Finance
(301) 998-8166
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2001 OPERATING RESULTS
ROCKVILLE, MD (July 30, 2001) - Federal Realty Investment Trust (NYSE:FRT)
today reported operating results for its second quarter ended June 30, 2001.
. Funds from operations (FFO) increased 6.3% to $0.68 per diluted share
. Rental income increased 7.3% on a same-center basis
. Continued progress at both Pentagon Row and Santana Row
Financial Results
-----------------
Funds from operations for the quarter ended June 30, 2001 increased 6.7 % to
$27.3 million from $25.5 million for the second quarter of 2000. On a per
diluted share basis, funds from operations increased 6.3% from $0.64 in 2000 to
$0.68 in 2001, beating First Call consensus expectations by $0.02. Net
operating income, which includes interest income from mortgage notes receivable,
was $51.4 million, a 5.1% increase from the $48.9 million reported for the
second quarter of 2000.
Steven J. Guttman, chairman and chief executive officer of Federal Realty
Investment Trust stated, "Active management of our core operating assets, from
both our shopping center and street retail business lines, continues to drive
strong operating performance, despite softness in the national economy. We're
proud of our ability to generate above average growth from these well-positioned
properties."
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2001 OPERATING RESULTS
Page 2
Portfolio Results
-----------------
Rental income increased from $64.3 million in 2000 to $68.5 million in 2001, a
6.5% increase. On a same-center basis, which ignores the impact of properties
acquired, developed or sold during the analyzed periods, rental income increased
7.3% from $62.2 million to $66.8 million. The strong growth of same-center
rental income was the leading factor driving improvements in both net operating
income and funds from operations.
During the second quarter, the Trust signed leases for over 370,000 square feet
of retail and office space. On a comparable space basis, the Trust re-leased
229,607 square feet at an average increase in rent per square foot of 24%. The
weighted-average new rent on these same space leases was $24.06 per square foot
compared to the previous average rent of $19.33 per square foot, reflecting
strong lease rollovers for both shopping center and street retail properties.
At June 30, 2001, overall occupancy remained strong at 95.6%, versus 96.1%
reported for June 30, 2000.
Donald C. Wood, president and chief operating officer of the Trust stated,
"Based on our outlook for the balance of the year, our expectations for 2001
performance are now somewhat above current consensus estimates. Specifically, we
would anticipate 2001 funds from operations of between $2.69 and $2.70 per
share."
Development Activities
----------------------
At Pentagon Row, in Arlington, Virginia, the two retail tenants comprising
Building A opened for business during the second quarter; Harris Teeter grocery
store on June 13, 2001 and Bed, Bath and Beyond on April 6, 2001. The Trust
continues to anticipate the openings of Buildings B and C in the third quarter
and Building D in the fourth quarter. On an aggregate basis, Pentagon Row is
currently over 92% leased.
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2001 OPERATING RESULTS
Page 3
At Santana Row, Federal Realty's mixed-use community in San Jose, California,
construction continues on schedule and on budget, with the $475 million first
phase expected to begin opening in August 2002. Based on anticipated
construction and leasing progress, the Trust expects to begin drawing on the
Santana Row construction loan before the end of the third quarter. To date,
Federal Realty has executed leases and signed letters of intent comprising over
250,000 square feet of retail space in addition to the lease with the Valencia
Group for the boutique hotel at the center of Santana Row.
Conference Call
---------------
Federal Realty's second quarter earnings conference call is scheduled for 1:30
PM ET, Tuesday July 31, 2001. To participate, please call (800) 967-7140 five
to ten minutes prior to the start time. Federal Realty will also provide an
online Web Simulcast on the company's web site, www.federalrealty.com. For
---------------------
those interested parties who are unable to participate in the conference call, a
re-broadcast will be available online at www.federalrealty.com beginning on
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August 1, 2001. A telephone recording of the call can also be heard by dialing
(888) 203-1112. The passcode for this replay is 481223.
Federal Realty Investment Trust is an equity real estate investment trust
specializing in the ownership, management, development and re-development of
high quality retail and mixed-use properties. The Trust owns or has an interest
in 152 real estate assets consisting of community and neighborhood shopping
centers and retail and urban mixed-use properties located in strategic
metropolitan markets across the United States. The Trust is nationally
recognized for its main street revitalization programs as well as the
development of urban mixed-use, pedestrian-friendly communities. Federal Realty
has paid quarterly dividends to its shareholders continuously since its founding
in 1962, and has increased its dividend rate for 33 consecutive years. Shares
of Federal Realty are traded on the New York Stock Exchange under the symbol
FRT. Additional information about Federal Realty can be found on the Internet
at www.federalrealty.com.
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2001 OPERATING RESULTS
Page 4
Safe Harbor Language
--------------------
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 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 10-K. Federal Realty
assumes no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
###
Financial Highlights
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
OPERATING RESULTS 2001 2000 2001 2000
----------------- ---- ---- ---- ----
Revenues
Rental income $68,458 $64,251 $ 135,594 $ 128,483
Other property income 3,200 2,700 5,910 5,465
Interest and other income 1,740 1,855 3,597 3,962
------- ------- ---------- ----------
73,398 68,806 145,101 137,910
Expenses
Rental 15,177 13,422 30,222 28,042
Real estate taxes 6,859 6,522 13,479 12,979
Interest 17,530 17,036 34,680 33,529
Administrative 3,322 2,868 6,455 5,790
Depreciation and amortization 14,813 13,338 28,957 25,993
------- ------- ---------- ----------
57,701 53,186 113,793 106,333
------- ------- ---------- ----------
Operating income before investors' share of operations 15,697 15,620 31,308 31,577
Investor's share of operations (1,428) (1,227) (2,806) (3,045)
------- ------- ---------- ----------
Income before gain on sale of real estate 14,269 14,393 28,502 28,532
Gain on sale of real estate 7,898 3,681 7,898 3,681
------- ------- ---------- ----------
Net Income 22,167 18,074 36,400 32,213
Dividends on preferred stock (1,987) (1,987) (3,975) (3,975)
------- ------- ---------- ----------
Net income available for common shareholders $20,180 $16,087 $ 32,425 $ 28,238
======= ======= ========== ==========
Earnings per common share, basic $ 0.51 $ 0.42 $ 0.83 $ 0.73
======= ======= ========== ==========
Earnings per common share, diluted $ 0.51 $ 0.41 $ 0.83 $ 0.72
======= ======= ========== ==========
Weighted average shares outstanding, basic 38,984 38,601 38,908 38,871
Weighted average shares outstanding, diluted 40,027 39,782 39,946 40,037
Funds from Operations
Net income available for common shareholders $20,180 $16,087 $ 32,425 $ 28,238
Less: (gain) on sale of real estate (7,898) (3,681) (7,898) (3,681)
Add : depreciation and amortization of real estate assets 13,509 12,136 26,375 23,623
Add : amortization of initial direct costs of leases 1,007 870 1,976 1,700
Add : income attributable to operating partnership units 461 131 760 744
------- ------- ---------- ----------
Funds from operations $27,259 $25,543 $ 53,638 $ 50,624
======= ======= ========== ==========
Funds from operations per share, diluted $ 0.68 $ 0.64 $ 1.34 $ 1.26
======= ======= ========== ==========
June 30, December 31,
BALANCE SHEET DATA 2001 2000
------------------ ---- ----
(unaudited)
Assets
Real estate, at cost
Operating $1,706,583 $1,679,289
Development 274,419 175,624
---------- ----------
1,981,002 1,854,913
Accumulated depreciation and amortization (372,567) (351,258)
---------- ----------
1,608,435 1,503,655
Mortgage notes receivable 35,405 47,360
Cash and investments 31,475 11,357
Receivables 12,777 13,092
Other assets 47,001 45,615
---------- ----------
Total assets $1,735,093 $1,621,079
========== ==========
Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $ 345,058 $ 323,911
Notes payable 310,646 225,246
Senior Notes 410,000 410,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 120,515 118,979
Shareholders' Equity 473,585 467,654
---------- ----------
$1,735,093 $1,621,079
========== ==========
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.
