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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) July 28, 2004

 

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Federal Realty Investment Trust

(Exact name of registrant as specified in its charter)

 

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Maryland		1-07533		52-0782497
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer 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

 

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Item 7. Financial Statements and Exhibits.

 

(c)		Exhibits
99.1		Supplemental portfolio information at June 30, 2004 (including press release dated July 28, 2004)

 

Item 12. Results of Operations and Financial Condition.

 

The following information is being furnished under Item 12-Results of Operations and Financial Condition. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Exchange Act, regardless of any general incorporation language in such filing.

 

On July 28, 2004, Federal Realty Investment Trust issued supplemental data pertaining to its operations, as well as a press release, to report its financial results for the quarter ended June 30, 2004. The supplemental data and press release are furnished as Exhibit 99.1 hereto.

 

 

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 28, 2004		/s/ Larry E. Finger
		Larry E. Finger
		Senior Vice President,
		Chief Financial Officer and Treasurer

 

-2-

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EXHIBIT INDEX

 

Exh No.		Exhibit		Page No.
99.1		Supplemental Information at June 30, 2004		4

 

-3-

Exhibit 99.1

 

FEDERAL REALTY INVESTMENT TRUST

 

Supplemental Information

June 30, 2004

 

TABLE OF CONTENTS

 

				Page
1.		Second Quarter 2004 Earnings Press Release		3
2.		Financial Highlights
Summarized Operating Results				7
Summarized Balance Sheet				8
Funds From Operations / Summary of Capital Expenditures				9
Market Data / Capital Availability				10
Operational Statistics				11
3.		Summary of Debt
Summary of Outstanding Debt				12
Summary of Debt Maturities				13
4.		Summary of Redevelopment Opportunities and Santana Row		14
5.		2004 Acquisitions and Dispositions		15
6.		Real Estate Status Report		16
7.		Shopping Center / Street Retail Summary		18
8.		Leasing Summary
Retail Leasing Summary – Comparable				19
Retail Leasing Summary – Non-comparable				20
9.		Lease Expirations		21
10.		Portfolio Leasing Statistics		22
11.		Summary of Top 25 Tenants		23
12.		2003 Sales/Occupancy Costs		24
13.		Reconciliation of 2004 EPS to 2004 FFO Guidance		25
14.		Glossary of Terms		26

 

1626 East Jefferson Street

Rockville, Maryland 20852-4041

301/998-8100

 

Certain matters discussed within this Supplemental Information may be deemed to be forward looking statements within the meaning of the federal securities laws. Although we believe the expectations reflected in the forward looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained. The factors that may impact these expectations include:

 

•

risks that growth will be limited if additional capital cannot be obtained;

 

•

risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the possibility of increases in interest rates that would result in increased interest expense;

 

•

risks normally associated with the real estate industry, including risks that tenants will not pay rent or that we may be unable to renew leases or relet space at favorable rents as leases expire, that new acquisitions or development, construction and renovation projects may fail to perform as expected, that competition for acquisitions could result in increased prices, that there may be environmental risks at our properties, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;

 

•

risks related to our status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation and the adverse consequences of the failure to qualify as a REIT; and

 

•

those risks detailed from time to time in our SEC reports, including our current report on Form 8-K filed with the SEC on March 11, 2004, and our annual report on Form 10-K filed with the SEC on March 15, 2004, as amended.

 

Federal Realty assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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FOR IMMEDIATE RELEASE

 

Investor Inquiries		Media Inquiries
Andrew Blocher		Kristine Warner
Vice President, Capital Markets & Investor Relations		Director, Corporate Communications
301/998-8166		301/998-8212
ablocher@federalrealty.com		kwarner@federalrealty.com

 

 

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2004 OPERATING RESULTS

 

ROCKVILLE, Md. (July 28, 2004) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its second quarter ended June 30, 2004.

 

•

For the second quarter 2004, Funds from Operations (FFO) per diluted share was $0.73 and earnings per diluted share was $0.45.

 

•

When compared to second quarter 2003, same-center property operating income increased 4.4% excluding redevelopment and expansion properties.

 

•

Contractual rent increases on lease rollovers were 14% for the second quarter on a record 481,000 square feet of comparable retail space.

 

•

The Trust’s portfolio was 94.2% leased at June 30, 2004, an improvement of 90 basis points versus the end of first quarter 2004.

 

Financial Results

 

Federal Realty reported FFO per diluted share of $0.73 in second quarter 2004, a 14.1% increase over the $0.64 of FFO per diluted share reported in second quarter 2003, and a 28.1% increase over the $0.57 of FFO per diluted share for second quarter 2003, after taking into account a $3.4 million ($0.07 per diluted share) charge relating to the redemption of the Trust’s 7.95% Series A Cumulative Redeemable Preferred Shares. Total FFO available for common shareholders was $38.6 million for the second quarter of 2004 compared to $27.7 million (taking into account the preferred share redemption charge) for last year’s second quarter. FFO is a supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Net income available for common shareholders was $23.5 million, and earnings per diluted share was $0.45 for the quarter ended June 30, 2004, versus $10.2 million and $0.22 (including the impact of the preferred share redemption charge), respectively, for the second quarter of 2003. A reconciliation of

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2004 OPERATING RESULTS

July 28, 2004

Page 2

 

FFO available for common shareholders and FFO per diluted share to net income and earnings per diluted share, respectively, is attached to this press release.

 

“This quarter’s operating results reflect our ability to lease, operate, and redevelop our core portfolio, as well as continuing improvement at Santana Row,” commented Donald Wood, Federal Realty’s President and Chief Executive Officer. “Occupancy gains, continued strong rent increases on lease rollovers, record comparable space leasing productivity, and robust same-center property operating income growth reflect the effective execution of our business plan, and an improving retail operating environment. In addition, our recent joint venture with Clarion Lion Properties Fund should allow the Trust to further exploit our operating advantages and efficiencies in our strategic East Coast and California markets.”

 

Portfolio Results

 

On a same-center basis, excluding redevelopment and expansion properties, property operating income increased 4.4% over second quarter 2003.

 

As of June 30, 2004, Federal Realty’s same-center portfolio was 96.6% leased compared to 96.2% on March 31, 2004, and 95.8% on June 30, 2003. Overall, the Trust’s portfolio was 94.2% leased as of June 30, 2004, compared to 93.3% on March 31, 2004, and 93.1% on June 30, 2003.

 

During the second quarter, the Trust signed 87 leases for 496,000 square feet of retail space. On a comparable space basis (i.e. spaces for which there was a former tenant), the Trust leased a record 481,000 square feet at a weighted-average cash-basis contractual rent increase per square foot (i.e. excluding the impact of straight-line rents) of 14%. The weighted-average contractual rent on this comparable space for the first year of the new leases is $19.89 per square foot compared to the weighted-average contractual rent of $17.47 per square foot for the last year of the prior leases. The weighted-average contractual rent for the last year of the prior leases is calculated by including both the minimum rent and the percentage rent actually paid during the last year of those leases. On a GAAP basis (i.e. including the impact of straight-line rents), weighted-average rent increases per square foot for comparable retail space were 21% for the second quarter of 2004. As of June 30, 2004, Federal Realty’s weighted-average contractual rent for retail and commercial space in its portfolio was $18.25 per square foot.

 

At Santana Row, Federal Realty’s mixed-use community in San Jose, Calif., 90.4% of the retail space was leased to 104 tenants, with nearly 100 stores open and operating as of June 30, 2004. Phase III (CinéArts

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2004 OPERATING RESULTS

July 28, 2004

Page 3

 

Theatre) is expected to open as planned during third quarter 2004, within projected costs. The 255 existing residential units at Santana Row were 98.8% leased as of June 30, 2004, and the development of the 256 Phase IV residential units remains on schedule and on budget.

 

Guidance

 

Federal Realty today reaffirmed previous guidance for 2004 FFO per diluted share at a range of $2.81 to $2.84, and increased guidance for earnings per diluted share to $1.48 to $1.51 because of gain on sale of properties.

 

Summary of Other Quarterly Activities and Recent Developments

 

•

July 12, 2004 – Federal Realty announced that it formed a joint venture with Clarion Lion Properties Fund, a discretionary fund created and advised by ING Clarion Partners. The joint venture intends to acquire up to $350 million of stabilized, supermarket-anchored shopping centers in the Trust’s strategic East Coast and California markets. Federal Realty and Clarion Lion Properties Fund have committed to contribute to the joint venture up to $42 million and $98 million, respectively, of equity capital to acquire properties over the next 24 months.

 

•

June 10, 2004 – Federal Realty’s Board of Trustees declared a regular quarterly cash dividend of $0.49 per share on its common shares, resulting in an indicated annual rate of $1.96 per share.

 

•

April 2, 2004 – Federal Realty announced it agreed to sell 2,186,749 common shares of beneficial interest in a public offering. The shares were sold at approximately $45.33 per share, representing a 3.00% discount from the New York Stock Exchange closing price on April 1, 2004 of $46.73, and generated net proceeds to Federal Realty of approximately $99.1 million. The Trust used the net proceeds from the sale primarily to repay amounts outstanding under its revolving credit facility that had been drawn to fund the acquisition of Westgate Mall in San Jose, Calif., on March 31, 2004.

 

Conference Call Information

 

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its second quarter earnings conference call, which is scheduled for Thursday, July 29, 2004, at 1 p.m. EDT. To participate, please call (888) 566-5771 five to ten minutes prior to the call’s start time and use the Passcode EARNINGS (required). The conference leader is Andrew Blocher. Federal Realty will also provide an online Web Simulcast on the Company’s Web site, www.federalrealty.com, which will remain

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2004 OPERATING RESULTS

July 28, 2004

Page 4

 

available for 30 days following the call. A telephone recording of the call will also be available for 30 days by dialing (800) 679-9654.

 

About Federal Realty

 

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of shopping centers and Street Retail properties. Federal Realty’s portfolio contains approximately 16.9 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. The operating portfolio was 94.2% leased to approximately 2,200 national, regional, and local retailers as of June 30, 2004, with no single tenant accounting for more than 2.4% of rental revenue. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 36 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.

 

Safe Harbor Language

 

Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The factors include, but are not limited to, the risk factors described in our Current Report on Form 8-K filed on March 11, 2004, and include the following:

 

•

risks that our tenants will not pay rent or that we may be unable to renew leases or re-let space at favorable rents as leases expire;

 

•

risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that any redevelopment or renovation project that we do pursue may not perform as anticipated;

 

•

risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that we may have environmental risks at our properties, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;

 

•

risks that our growth will be limited if we cannot obtain additional capital;

 

•

risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and

 

•

risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.

 

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our annual report on Form 10-K (as amended), our quarterly reports on Form 10-Q, and the risks contained in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2004.

 

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Federal Realty Investment Trust

Summarized Operating Results

June 30, 2004

 

Financial Highlights

(in thousands, except per share data)

(unaudited)

 

		Three months ended June 30,								Six months ended June 30,
		2004				2003				2004				2003
OPERATING RESULTS
Revenues
Rental income		$	92,145			$	79,304			$	181,423			$	158,137
Other property income			6,519				4,186				11,619				8,280
Mortgage interest income			1,216				1,024				2,243				1,861
			99,880				84,514				195,285				168,278
Expenses
Rental			22,509				19,019				44,787				40,415
Real estate taxes			9,526				8,723				18,703				16,415
Administrative			4,588				3,147				8,770				6,421
Depreciation and amortization			23,235				18,126				43,858				35,575
			59,859				49,015				116,117				98,826
Operating income			40,022				35,499				79,167				69,452
Interest income			389				629				802				991
Interest expense			(21,391	)			(18,252	)			(42,710	)			(35,831	)
Minority interests			(1,192	)			(1,134	)			(2,381	)			(2,204	)
Income from continuing operations			17,828				16,742				34,878				32,408
Discontinued operations
Operating income from discontinued operations			228				833				367				1,543
Gain on sale of real estate			8,276				551				8,334				551
Results from operations of discontinued assets			8,505				1,384				8,700				2,094
Net Income			26,332				18,126				43,578				34,502
Dividends on preferred stock			(2,869	)			(4,490	)			(5,738	)			(9,346	)
Preferred stock redemption fee			—				(3,423	)			—				(3,423	)
Net income available for common shareholders		$	23,463			$	10,213			$	37,840			$	21,733
FUNDS FROM OPERATIONS AVAILABLE FOR COMMON SHAREHOLDERS
Net income		$	26,332			$	18,126			$	43,578			$	34,502
Gain on sale of real estate			(8,276	)			(551	)			(8,334	)			(551	)
Depreciation and amortization of real estate assets			21,261				16,363				39,987				32,161
Amortization of initial direct costs of leases			1,787				1,392				3,285				2,746
Income attributable to operating partnership units			403				235				638				441
Funds from Operations			41,507				35,565				79,154				69,299
Dividends on preferred stock			(2,869	)			(4,490	)			(5,738	)			(9,346	)
Preferred stock redemption fee			—				(3,423	)			—				(3,423	)
Funds from operations available for common shareholders			38,638				27,652				73,416				56,530
Weighted average number of common shares, diluted			52,681				48,376				51,593				46,876
Funds from operations per share available for common shareholders		$	0.73			$	0.57			$	1.42			$	1.21
EARNINGS PER COMMON SHARE, BASIC
Income from continuing operations available for common shareholders		$	0.29			$	0.19			$	0.58			$	0.43
Income from discontinued operations			0.00				0.02				0.01				0.04
Gain on sale of real estate			0.17				0.01				0.16				0.01
		$	0.46			$	0.22			$	0.75			$	0.48
Weighted average number of common shares, basic			51,359				47,161				50,207				45,726
EARNINGS PER COMMON SHARE, DILUTED
Income from continuing operations available to common shareholders		$	0.29			$	0.19			$	0.58			$	0.43
Income from discontinued operations			0.00				0.02				0.01				0.03
Gain on sale of real estate			0.16				0.01				0.16				0.01
		$	0.45			$	0.22			$	0.75			$	0.47
Weighted average number of common shares, diluted			52,681				48,376				51,593				46,876

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Federal Realty Investment Trust

Summarized Balance Sheet

June 30, 2004

 

Financial Highlights

 

(in thousands, except per share data)

 

CONSOLIDATED BALANCE SHEETS

		June 30, 2004				December 31, 2003
		(unaudited)
ASSETS
Real estate, at cost		$	2,624,408			$	2,470,149
Less accumulated depreciation and amortization			(552,138	)			(514,177	)
Net real estate investments			2,072,270				1,955,972
Cash and cash equivalents			45,103				34,968
Mortgage notes receivable			44,907				41,500
Accounts receivable			34,494				31,207
Other assets			78,439				79,788
TOTAL ASSETS		$	2,275,213			$	2,143,435
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Obligations under capital leases, mortgages and construction loans		$	412,684			$	414,357
Notes payable			338,500				361,323
Senior notes and debentures			570,500				535,000
Other liabilities			133,686				111,799
Total liabilities			1,455,370				1,422,479
Minority interests			29,864				29,582
Shareholders’ equity
Preferred stock			135,000				135,000
Common shares and other shareholders’ equity			654,979				556,374
Total shareholders’ equity			789,979				691,374
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,275,213			$	2,143,435

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Federal Realty Investment Trust

Funds From Operations / Summary of Capital Expenditures

June 30, 2004

 

		Three Months Ended
		June 30, 2004				June 30, 2003
		(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income		$	26,332			$	18,126
Gain on sale of real estate			(8,276	)			(551	)
Depreciation and amortization of real estate assets			21,261				16,363
Amortization of initial direct costs of leases			1,787				1,392
Income attributable to operating partnership units			403				235
Funds from Operations			41,507				35,565
Dividends on preferred stock			(2,869	)			(4,490	)
Preferred stock redemption fee			—				(3,423	)
Funds from operations available for common shareholders		$	38,638			$	27,652
Weighted average number of common shares, diluted			52,681				48,376
Funds from operations per share available for common shareholders		$	0.73			$	0.57
Summary of Capital Expenditures
Non-maintenance capital expenditures
Acquisition related (2)		$	2,811			$	76
Capital expenditures related to new square footage:			1,812				—
Development, redevelopment and expansions			12,321				39,816
Tenant Improvements			4,603				3,308
Total non-maintenance capital expenditures			21,547				43,200
Maintenance capital expenditures			1,661				902
Total capital expenditures		$	23,208			$	44,102
Dividends and Payout Ratios
Common dividends declared		$	25,321			$	23,784
Dividend payout ratio % - FFO			66	%			86	%

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Notes:

 

(1)	See Glossary of Terms.

(2)	Capital expenditures related to properties acquired in the last two years for which non-maintenance expenditures were planned at the time of the acquisition underwriting.

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Federal Realty Investment Trust

Market Data / Capital Availability

June 30, 2004

 

		As of
		June 30, 2004				June 30, 2003
		(in thousands, except per share data)
Market data
Common shares outstanding (1)			51,686				49,029
Market price per common share		$	41.59			$	32.00
Common equity market capitalization		$	2,149,621			$	1,568,928
Series B preferred shares outstanding			5,400				5,400
Market price per Series B preferred share		$	26.45			$	27.20
Preferred equity market capitalization		$	142,830			$	146,880
Equity market capitalization		$	2,292,451			$	1,715,808
Total debt (2)			1,321,684				1,233,800
Total market capitalization		$	3,614,135			$	2,949,608
Total debt to market capitalization			37	%			42	%
Capital availability:
Cash on hand		$	45,103			$	18,609
Available capacity under line of credit			223,000				93,000
Available for issuance under shelf registration statement			225,000				400,000
		$	493,103			$	511,609

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Notes:

 

(1)

Consists of 53,156,349 shares issued net of 1,470,275 shares held in Treasury as of June 30, 2004. As of June 30, 2003, consists of 50,493,032 shares issued net of 1,463,611 shares held in Treasury. Amounts do not include 842,455 and 852,222 Operating units outstanding at June 30, 2004 and June 30, 2003, respectively.

(2)	Total debt includes capital leases, mortgages and construction loans payable, notes payable, senior notes and debentures.

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Federal Realty Investment Trust

Operational Statistics

June 30, 2004

 

				Six months ended June 30, 2004				Six months ended June 30, 2003
Operational statistics
Ratio of earnings to fixed charges (1)					1.71	x			1.54	x
Ratio of earnings to combined fixed charges and preferred share dividends (1)					1.52	x			1.28	x
Ratio of EBITDA to combined fixed charges and preferred share dividends (1)					2.36	x			1.91	x
Administrative expense as a percentage of total revenues					4.49	%			3.82	%
				Three months ended June 30, 2004				Three months ended June 30, 2003
Components of Rental Income (2)
Minimum Rents
Retail and commercial properties				$	70,698			$	62,162
Residential					3,204				2,036
Cost Reimbursements					16,639				13,336
Percentage rents					1,604				1,770
Total Rental Income				$	92,145			$	79,304

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Notes:

(1)

Earnings consist of income before gain (loss) on sale of real estate and fixed charges. Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount and expense and the portion of rent expense representing an interest factor. Preferred share dividends consist of dividends paid on outstanding Series A preferred shares (during the period ended June 30, 2003) and Series B preferred shares (during the period ended June 30, 2003 and June 30, 2004).

(2)

Minimum rents include $1.9 million and $0.8 million for the six months ended June 30, 2004 and June 30, 2003, respectively, to recognize rent on a straight-line basis. Residential minimum rents comprise the rents at Rollingwood Apartments, The Crest at Congressional Apartments and residential rents at Santana Row.

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Federal Realty Investment Trust

Summary of Outstanding Debt

June 30, 2004

 

		Maturity		Interest Rate as of June 30, 2004					Balance
									(in thousands)
Mortgage Loans
Secured Fixed Rate
Leesburg Plaza		10/01/08		6.510	%				$	9,900
164 E Houston Street		10/06/08		7.500	%					211
Mercer Mall		09/01/09		8.375	%					4,666
Federal Plaza		06/01/11		6.750	%					35,331
Tyson’s Station		09/01/11		7.400	%					6,694
Barracks Road		11/01/15		7.950	%					43,979
Brick Plaza		11/01/15		7.415	%					32,738
Hauppauge		11/01/15		7.950	%					16,579
Lawrence Park		11/01/15		7.950	%					31,173
Wildwood		11/01/15		7.950	%					27,400
Wynnewood		11/01/15		7.950	%					31,768
Mount Vernon		04/15/28		5.660	%		(a)			12,959
									$	253,398
Notes payable
Unsecured Fixed Rate
Perring Plaza Renovation		01/31/13		10.00	%					2,055
Other		various		various						45
Unsecured Variable Rate
Revolving credit facility		10/08/06		LIBOR + .75	%		(b)		$	77,000
Term note with banks		10/08/06		LIBOR + .95	%					100,000
Term note with banks		10/08/08		LIBOR + .95	%		(c)			150,000
Escondido (Municipal bonds)		10/01/16		2.560	%		(d)			9,400
									$	338,500
Notes and Debentures
Unsecured Fixed Rate
6.625% Notes (fixed)		12/01/05		6.625	%				$	40,000
6.99% Medium Term Notes		03/10/06		6.894	%		(e)			40,500
6.125% Notes		11/15/07		6.325	%		(f)			150,000
8.75% Notes		12/01/09		8.750	%					175,000
4.50% Notes		02/15/11		4.500	%					75,000
7.48% Debentures		08/15/26		7.480	%					50,000
6.82% Medium Term Notes		08/01/27		6.820	%					40,000
									$	570,500
Capital lease obligations
				Various through 207	7		(g)		$	159,286
Total Fixed and Variable Rate Debt										1,321,684
															Average annualized interest rate
		Total fixed rate debt							$	1,135,284		85.90	%		6.90	%
		Total variable rate debt					(h)			186,400		14.10	%		2.33	%
TOTAL DEBT AND CAPITAL LEASES									$	1,321,684		100.00	%		6.27	%

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(a)	The lender has the option to call the loan after year ten.

(b)	A $300 million three-year revolving credit facility, with a one-year extension option.

(c)	In January, 2004, the Trust purchased an interest rate swap on this note thereby locking in the LIBOR portion of the interest rate at 2.401% through October 2006.

(d)	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. The weighted average interest rate for the six months ended June 30, 2004 was 2.56%.

(e)	The Trust purchased interest rate swaps at issuance, thereby reducing the effective interest on these notes.

(f)	The Trust purchased an interest rate lock to hedge this note offering. A loss of $1.5 million associated with this hedge is being amortized into the note offering thereby increasing the effective interest rate on these notes to 6.325%.

(g)	The average annualized interest rate on capital lease obligations as of June 30, 2004 is 8.76% on a basis of minimum rent and 11.27% including performance based participation rent paid by the Trust.

(h)	Average annualized interest rate on variable rate debt as of June 30, 2004.

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Federal Realty Investment Trust

Summary of Debt Maturities

June 30, 2004

 

DEBT MATURITIES

 

(in thousands)

 

Year		Scheduled Amortization			Maturities			Total				Percent of Debt Expiring			Cumulative Percent of Debt Expiring
2004		$	1,694		$	—		$	1,694			0.1	%		0.1	%
2005			4,539			40,000			44,539			3.4	%		3.5	%
2006			5,037			217,500			222,537	(1)		16.8	%		20.3	%
2007			5,436			150,000			155,436			11.8	%		32.1	%
2008			5,828			159,542			165,370			12.5	%		44.6	%
2009			6,164			179,393			185,557			14.0	%		58.6	%
2010			6,639			—			6,639			0.5	%		59.1	%
2011			6,670			112,227			118,897			9.0	%		68.1	%
2012			6,178			—			6,178			0.5	%		68.6	%
2013			4,672			—			4,672			0.4	%		69.0	%
Thereafter			164,959			245,206			410,165			31.0	%		100.0	%
Total		$	217,816		$	1,103,868		$	1,321,684			100.00	%

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Note:

 

(1)	Includes a $300 million three-year revolving credit facility, with a one-year extension option, and a $100 million term loan. As of June 30, 2004, $77 million had been drawn on the revolving credit facility.

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Federal Realty Investment Trust

Summary of Redevelopment Opportunities and Santana Row

June 30, 2004

 

Current Redevelopment Opportunities (1) ($ millions)

 

Property		Location		Opportunity		Projected ROI (2)			Projected Cost (1)			Cost to Date
Projects Anticipated to Stabilize in 2004 (3)
Santana Row Phase II		San Jose, CA		Two new pad sites (Best Buy and The Container Store) and additional parking		17	%		$	26.6		$	25.7
Santana Row Phase III		San Jose, CA		Pad site (theater)		10	%		$	3.8		$	2.3
Garden Market		Western Springs, IL		Expansion, re-tenanting (new grocer) and new pad site (existing drug store)		10	%		$	2.6		$	2.6
Bristol Plaza		Bristol, CT		Grocer relocation, canopy and façade renovation		10	%		$	1.9		$	0.1
Perring Plaza		Baltimore, MD		Re-tenanting (sporting goods and small shops)		6	%		$	1.3		$	0.1
Bethesda Row		Bethesda, MD		New pad site (fitness equipment)		15	%		$	0.8		$	0.3
Old Town Center		Los Gatos, CA		Re-tenanting (office) and site improvements		12	%		$	0.8		$	0.8
Shops at Willow Lawn		Richmond, VA		Grocer expansion		6	%		$	0.6		$	0.6
Lawrence Park		Broomall, PA		Grocer expansion		6	%		$	0.3		$	0.3
Laurel		Laurel, MD		Grocer expansion		>20	%		$	0.4		$	0.4
Wildwood		Bethesda, MD		Pad expansion and re-tenanting (bank)		>20	%		$	0.4		$	0.3
Subtotal: Projects Anticipated to Stabilize in 2004 (3) (4)						15	%		$	39.4		$	33.4
Projects Anticipated to Stabilize in 2005 (3)
Houston Street		San Antonio, TX		Retail and ground lease to Hotel Valencia		7	%		$	11.4		$	11.8
Bala Cynwyd		Philadelphia, PA		Grocer re-location and expansion and re-tenanting (new health club)		>20	%		$	5.7		$	3.5
Brick Plaza		Brick, NJ		Re-tenanting (electronics)		9	%		$	2.2		$	1.5
Andorra		Philadelphia, PA		Re-tenanting (new health club)		12	%		$	4.4		$	0.4
Leesburg Plaza - Peebles		Leesburg, VA		Re-tenanting (office supply & auto supply)		20	%		$	2.7		$	0.3
Pan Am		Fairfax, VA		Grocer expansion, small shop re-tenanting and site improvements		6	%		$	2.3		$	0.5
Greenlawn Plaza		Greenlawn, NY		Re-tenanting and new pad site (child care)		>20	%		$	2.1		$	1.2
Brunswick		North Brunswick, NJ		Re-tenanting (new health club)		7	%		$	1.5		$	0.5
Rutgers Plaza		Franklin, NJ		Grocer re-location and expansion and backfill of existing grocer space		20	%		$	1.4		$	0.0
Hauppauge Shopping Center		Hauppauge, NY		Pad site re-tenanting (restaurant)		17	%		$	0.2		$	0.1
Subtotal: Projects Anticipated to Stabilize in 2005 (3) (4)						13	%		$	34.0		$	19.9
Total: Projects Anticipated to Stabilize in 2004 and 2005 (3) (4)						14	%		$	73.4		$	53.3

 

Anticipated Future Redevelopments Stabilizing After 2005 include the final phase of Bethesda Row, Mercer Mall, Fresh Meadows, Mount Vernon/South Valley, Leesburg Plaza, Houston Street, Rockville Town Square, Santana Row Phase IV and future phases, the Village at Shirlington and Shops at Willow Lawn. (3) (5)

 

Santana Row Summary (as of June 30, 2004)

 

		Retail Summary							Residential Summary								Financial Summary ($ millions)
Description		Total Stores		Square Feet		% Leased			Total Units		Rent (6)			% Leased			Projected Cost			Cost to Date			Anticipated Stabilized Yield (7)			Anticipated Stabilization (3)
Phase I - Retail, residential and Hotel Valencia		112		444,549		88	%		255		$	1.67 - $2.96		99	%		$	443		$	443		5	%		2005
Phase II - Best Buy and The Container Store		3		83,991		100	%		0			n/a		n/a			$	27		$	26		17	%		2004
Phase III - CineArts theater building		2		28,525		100	%		0			n/a		n/a			$	4		$	2		10	%		2004
Phase IV - Building 7 residential re-build		—		—		n/a			256		$	2.05 - $2.39		n/a			$	58		$	13		11	%		2006
Total		117		557,065		90	%		511					99	%		$	532		$	484		6.2	%

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Notes:

(1)

There is no guaranty that the Trust will ultimately complete any or all of these redevelopment opportunities, that the Projected Return on Investment (ROI) or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected ROI and Projected Cost are management’s best estimate based on current information and may change over time.

(2)

Projected ROI reflects only the deal specific cash, unleveraged Incremental Property Operating Income (POI) generated by the redevelopment and is calculated as Incremental POI divided by cost. Incremental POI is the POI generated by the redevelopment after deducting rent previously being paid for the redevelopment space or space taken out of service as a result of the redevelopment. Projected ROI does NOT include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.

(3)	Anticipated Stabilization is the year in which 95% occupancy of the redeveloped space is anticipated to be achieved.

(4)	All subtotals and totals reflect cost weighted-average ROIs.

(5)	These future redevelopment opportunities are being explored by the Trust. There is no guaranty that the Trust will ultimately pursue or complete any or all of these opportunities.

(6)

Range of gross rents. Market conditions have generally not required concessions on renewals, but have required concessions of up to one month on new 12 month leases. Overall average gross rent for Phase I is $2.05 per square foot per month and $2.21 per square foot per month for Phase IV. The range of rents above reflect the size and type of residential offerings for each phase.

(7)	Calculated as stabilized Property Operating Income (POI) divided by cost.

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Federal Realty Investment Trust

2004 Acquisitions and Dispositions

Through June 30, 2004

 

Acquisitions

 

Date

Property

City / State

GLA

Purchase price

Anchor tenants

(in thousands)

March 31, 2004

Westgate Mall

San Jose, CA

637,211

$

97,000

Target, Safeway, Burlington Coat Factory, Ross Dress for Less, Nordstrom Rack

Total

637,211

$

97,000

Dispositions

Date

Property

City / State

GLA

Sales Price

(in thousands)

June 3, 2004

Village at Shirlington (land parcel)

Arlington, VA

n/a

$

4,934

(1)

June 14, 2004

Magruder’s Center

Rockville, MD

109,000

14,350

(2)

Total

109,000

$

19,284

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Notes:

 

(1)	On June 3, 2004 land was sold to a third-party tenant pursuant to a purchase option in a ground lease at the Village at Shirlington.

(2)	On June 14, 2004 the Magruder’s Center was conveyed to the City of Rockville in lieu of condemnation in order to facilitate the redevelopment of Rockville Town Center.

 

Subsequent Event:

 

In July 2004, we contributed Plaza del Mercado, a property valued at $20.6 million to a newly formed joint venture in which we own 30% of the equity and received $18.6 million of net proceeds.

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Federal Realty Investment Trust

Real Estate Status Report

June 30, 2004

 

Property Name		Type(1)		MSA Description		Year Acquired		Total Investment			Ownership Percentage			GLA (2)		% Leased			Mortgage or Capital Lease Obligation		Grocery Anchor GLA (3)		Grocery Anchor (3)		Other Principal Tenants
								(in thousands)											(in thousands)
Mid-Atlantic Region
Washington Metropolitan Area
Bethesda Row		SR		Washington, DC-MD-VA		1993-98		80,269				(4)		440,000		97	%		12,576		40,000		Giant Food		Barnes & Noble / Landmark Theater
Congressional Plaza		SC		Washington, DC-MD-VA		1965		66,312	(5)		64.1	%		339,000		100	%				28,000		Whole Foods		Buy Buy Baby / Container Store / Tower
Courthouse Center		SC		Washington, DC-MD-VA		1997		4,683				(6)		37,000		100	%
Falls Plaza		SC		Washington, DC-MD-VA		1967		8,152			100.0	%		73,000		100	%				51,000		Giant Food
Falls Plaza-East		SC		Washington, DC-MD-VA		1972		3,326			100.0	%		71,000		96	%								CVS / Staples
Federal Plaza		SC		Washington, DC-MD-VA		1989		61,996			100.0	%		247,000		98	%		35,331						TJ Maxx / CompUSA / Ross
Friendship Center		SR		Washington, DC-MD-VA		2001		33,309			100.0	%		119,000		100	%								Borders / Linens ’n Things / Maggiano’s
Gaithersburg Square		SC		Washington, DC-MD-VA		1993		23,911			100.0	%		215,000		90	%								Bed, Bath & Beyond / Borders / Ross
Idylwood Plaza		SC		Washington, DC-MD-VA		1994		14,971			100.0	%		73,000		100	%				30,000		Whole Foods
Laurel		SC		Washington, DC-MD-VA		1986		45,679			99.9	%		384,000		98	%				61,000		Giant Food		Marshalls / Toys R Us
Leesburg Plaza		SC		Washington, DC-MD-VA		1998		21,364				(6)		247,000		74	%		9,900		55,000		Giant Food		Pier One
Loehmann’s Plaza		SC		Washington, DC-MD-VA		1983		26,120				(6)		251,000		98	%								Bally’s / Linens ’n Things / Loehmann’s
Mid-Pike Plaza		SC		Washington, DC-MD-VA		1982		17,305				(7)		304,000		100	%		10,041						Linens ’n Things / Toys R Us / Bally’s / AC Moore
Mount Vernon		SC		Washington, DC-MD-VA		2003		20,299				(6)		254,000		73	%		12,959		54,000		Shoppers Food Warehouse
Old Keene Mill		SC		Washington, DC-MD-VA		1976		5,154			100.0	%		92,000		100	%				24,000		Whole Foods
Pan Am		SC		Washington, DC-MD-VA		1993		25,263			100.0	%		218,000		99	%				33,000		Safeway		Micro Center / Michaels
Pentagon Row		SR		Washington, DC-MD-VA		1999		87,208			100.0	%		296,000		99	%				45,000		Harris Teeter		Bally’s / Bed, Bath & Beyond / DSW / Cost Plus
Pike 7		SC		Washington, DC-MD-VA		1997		33,435			100.0	%		164,000		97	%								Staples / TJ Maxx / Tower
Plaza del Mercado		SC		Washington, DC-MD-VA		2003		20,605	(8)		100.0	%		96,000		96	%				25,000		Giant Food		CVS
Quince Orchard		SC		Washington, DC-MD-VA		1993		19,644			100.0	%		252,000		100	%				24,000		Magruders		Circuit City / Staples
Rockville Town Square		SR		Washington, DC-MD-VA		2004		1,322			N/A			N/A		N/A							Magruders (signed)
Rollingwood Apartments		SR		Washington, DC-MD-VA		1971		6,704			100.0	%		N/A		98	%
Sam’s Park & Shop		SR		Washington, DC-MD-VA		1995		12,054			100.0	%		49,000		100	%								Petco
South Valley		SC		Washington, DC-MD-VA		2003		14,458				(6)		218,000		85	%								Home Depot / TJ Maxx
Tower		SC		Washington, DC-MD-VA		1998		18,758			100.0	%		106,000		100	%								Virginia Fine Wine / Talbots
Tyson’s Station		SC		Washington, DC-MD-VA		1978		3,354			100.0	%		50,000		100	%		6,694						Trader Joes
Village at Shirlington		SR		Washington, DC-MD-VA		1995		32,384			100.0	%		204,000		98	%								Cineplex Odeon, Carlyle Grand Café
Wildwood		SC		Washington, DC-MD-VA		1969		17,230			100.0	%		86,000		99	%		27,400		20,000		Sutton Place Gourmet		CVS
								725,268						4,885,000		95	%
Mid-Atlantic Region - Other
Governor Plaza		SC		Baltimore, MD		1985		18,852			99.9	%		269,000		100	%								Bally’s / Comp USA / Syms / Office Depot
Perring Plaza		SC		Baltimore, MD		1985		24,470			99.9	%		401,000		96	%				58,000		Shoppers Food Warehouse		Home Depot / Burlington Coat Factory
Barracks Road		SC		Charlottesville, VA		1985		39,734			100.0	%		483,000		98	%		43,980		91,000		Harris Teeter / Kroger		Bed, Bath & Beyond / Barnes & Noble / Old Navy
Winter Park		SR		Orlando, FL		1996		6,878			100.0	%		28,000		93	%
Eastgate		SC		Raleigh- Durham- Chapel Hill, NC		1986		17,377			100.0	%		159,000		83	%								Stein Mart
Shops at Willow Lawn		SC		Richmond- Petersburg, VA		1983		60,984			99.9	%		488,000		72	%				60,000		Kroger		Old Navy / Tower Records/ Staples
								168,295						1,828,000		89	%
				Total Mid- Atlantic Region				893,563						6,713,000		94	%
Northeast Region
Philadelphia Metropolitan Area
Andorra		SC		Philadelphia, PA-NJ		1988		20,835			99.9	%		259,000		99	%				24,000		Acme Markets		Kohl’s / Staples
Bala Cynwyd		SC		Philadelphia, PA-NJ		1993		25,082			100.0	%		281,000		100	%				45,000		Acme Markets		Lord & Taylor
Ellisburg Circle		SC		Philadelphia, PA-NJ		1992		28,932			100.0	%		268,000		100	%				47,000		Genuardi’s		Bed, Bath & Beyond / Stein Mart
Feasterville		SC		Philadelphia, PA-NJ		1980		11,657			100.0	%		111,000		100	%				53,000		Genuardi’s		OfficeMax
Flourtown		SC		Philadelphia, PA-NJ		1980		8,941			100.0	%		187,000		54	%				42,000		Genuardi’s
Langhorne Square		SC		Philadelphia, PA-NJ		1985		17,683			100.0	%		216,000		88	%				55,000		Redner’s Warehouse Mkts.		Marshalls
Lawrence Park		SC		Philadelphia, PA-NJ		1980		25,786			100.0	%		348,000		94	%		31,173		53,000		Acme Markets		CHI / TJ Maxx / CVS
Northeast		SC		Philadelphia, PA-NJ		1983		21,973			100.0	%		292,000		92	%								Burlington Coat / Marshalls / Tower Records
Willow Grove		SC		Philadelphia, PA-NJ		1984		26,265			100.0	%		215,000		100	%								Barnes & Noble / Marshalls / Toys R Us
Wynnewood		SC		Philadelphia, PA-NJ		1996		35,269			100.0	%		255,000		99	%		31,768		98,000		Genuardi’s		Bed, Bath & Beyond / Borders / Old Navy
								222,424						2,432,000		93	%
New York / New Jersey
Allwood		SC		Bergen- Passaic, NJ		1988		4,301				(7)		52,000		100	%		3,495		25,000		Stop & Shop		Mandee Shop
Clifton		SC		Bergen- Passaic, NJ		1988		4,977				(7)		80,000		66	%		3,250						Drug Fair / Dollar Express
Blue Star		SC		Middlesex- Somerset- Hunterdon, NJ		1988		39,591				(7)		407,000		97	%		26,676		43,000		Shop Rite		Kohl’s / Michaels / Toys R Us / Marshalls
Brunswick		SC		Middlesex- Somerset- Hunterdon, NJ		1988		24,479				(7)		303,000		97	%		11,105		55,000		A&P		A.J. Wright
Rutgers		SC		Middlesex- Somerset- Hunterdon, NJ		1988		15,940				(7)		217,000		99	%		12,864		44,000		Stop & Shop		Kmart
Brick Plaza		SC		Monmouth- Ocean, NJ		1989		55,394			100.0	%		409,000		95	%		32,738		66,000		A&P		Loews Theatre / Barnes&Noble / Sports Authority
Greenlawn Plaza		SC		Nassau- Suffolk, NY		2000		11,766			100.0	%		102,000		100	%				46,000		Waldbaum’s
Hauppauge		SC		Nassau- Suffolk, NY		1998		26,359			100.0	%		131,000		100	%		16,579		61,000		Shop Rite		AC Moore
Huntington		SC		Nassau- Suffolk, NY		1988		22,452				(7)		279,000		100	%		14,271						Buy Buy Baby / Toys R Us / Bed, Bath & Beyond / Barnes & Noble

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Federal Realty Investment Trust

Real Estate Status Report

June 30, 2004

 

Property Name		Type(1)		MSA Description		Year Acquired		Total Investment		Ownership Percentage			GLA (2)		% Leased			Mortgage or Capital Lease Obligation		Grocery Anchor GLA (3)		Grocery Anchor (3)		Other Principal Tenants
								(in thousands)							(in thousands)
Forest Hills		SR		New York, NY		1997		23,969		100.0	%		86,000		100	%								Midway Theatre / Duane Reade / Gap
Fresh Meadows		SC		New York, NY		1997		64,771		100.0	%		408,000		98	%						Pathmark (signed)		Value City / Kohl’s / Cineplex Odeon
Troy		SC		Newark, NJ		1980		20,540		100.0	%		202,000		100	%				64,000		Pathmark		A.C.Moore / Comp USA / Toys R Us
Hamilton		SC		Trenton, NJ		1988		8,110			(7)		190,000		100	%		4,818		53,000		Shop Rite		A.C.Moore / Stevens Furniture
Mercer Mall		SC		Trenton, NJ		2003		85,969			(7)		435,000		93	%		59,949		75,000		Shop Rite		Bed, Bath & Beyond / DSW / TJ Maxx
								408,618					3,301,000		97	%
New England
Dedham Plaza		SC		Boston-Worcester-Lawrence- Lowell-Brockton, MA		1993		29,699		100.0	%		243,000		95	%				80,000		Star Market		Pier One
Queen Anne Plaza		SC		Boston-Worcester-Lawrence-Lowell-Brockton, MA		1994		14,802		100.0	%		149,000		100	%				50,000		Victory Supermarket		TJ Maxx
Saugus Plaza		SC		Boston-Worcester-Lawrence-Lowell-Brockton, MA		1996		13,204		100.0	%		171,000		100	%				55,000		Super Stop & Shop		Kmart
Bristol Plaza		SC		Hartford, CT		1995		22,078		100.0	%		277,000		95	%				74,000		Super Stop & Shop		TJ Maxx
West Hartford		SR		Hartford, CT		1994-1996		8,005		100.0	%		62,000		82	%
Greenwich Avenue		SR		New Haven-Bridgeport-Stamford-Waterbury		1994-1996		15,993		100.0	%		42,000		100	%								Saks Fifth Avenue
								103,782					944,000		96	%
Chicago
Crossroads		SC		Chicago, IL		1993		22,080		100.0	%		173,000		97	%								Comp USA / Golfsmith / Guitar Center
Finley Square		SC		Chicago, IL		1995		28,704		100.0	%		313,000		100	%								Bed, Bath & Beyond / Sports Authority
Garden Market		SC		Chicago, IL		1994		11,177		100.0	%		140,000		99	%				63,000		Dominick’s		Walgreens
North Lake Commons		SC		Chicago, IL		1994		13,032		100.0	%		129,000		93	%				77,000		Dominick’s
Evanston		SR		Chicago, IL		1995		3,220		100.0	%		12,000		100	%								Gap
								78,213					767,000		98	%
Northeast Region -Other
Gratiot Plaza		SC		Detroit, MI		1973		16,769		100.0	%		218,000		100	%				69,000		Farmer Jack’s		Bed, Bath & Beyond / Best Buy
Lancaster		SC		Lancaster, PA		1980		10,652			(7)		107,000		97	%		4,907		39,000		Giant Food		Michaels
								27,421					325,000		99	%
				Total Northeast Region				840,457					7,769,000		96	%
West Region
California
Colorado Blvd		SR		Los Angeles-Long Beach, CA		1996-1998		15,030			(9)		69,000		100	%								Pottery Barn / Banana Republic
Hermosa Ave		SR		Los Angeles-Long Beach, CA		1997		4,722		90.0	%		23,000		100	%
Hollywood Blvd		SR		Los Angeles-Long Beach, CA		1999		24,699		90.0	%		151,000		74	%								Hollywood Entertainment Museum
Third St Promenade		SR		Los Angeles-Long Beach, CA		1996-2000		73,810			(10)		209,000		99	%								J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Escondido		SC		San Diego, CA		1996		24,924		70.0	%		222,000		95	%								Cost Plus / TJ Maxx / Toys R Us
Fifth Ave		SR		San Diego, CA		1996-1997		12,239			(11)		51,000		87	%								Urban Outfitters
150 Post Street		SR		San Francisco, CA		1997		30,677		100.0	%		102,000		58	%								Brooks Brothers
Kings Court		SC		San Jose, CA		1998		11,409			(6)		79,000		98	%				25,000		Lunardi’s Super Market		Longs Drug Store
Old Town Center		SR		San Jose, CA		1997		33,691		100.0	%		95,000		96	%								Borders / Gap Kids / Banana Republic
Westgate		SC		San Jose, CA		2004		113,616		100.0	%		640,000		97	%				38,000		Safeway		Target / Burlington Coat Factory
Santana Row (Phase I & II)		SR		San Jose, CA		1997		472,575		100.0	%		529,000		90	%								Crate & Barrel / Container Store / Best Buy /Borders
								817,394					2,170,000		92	%
West Region - Other
Mill Avenue		SR		Phoenix-Mesa, AZ		1998		11,255			(12)		39,000		100	%								Gordon Biersch
Houston St		SR		San Antonio, TX		1998		61,737		100.0	%		171,000		80	%		210
								72,992					210,000		84	%
				Total West Region				890,386					2,380,000		91	%
Total								2,624,406					16,862,000		94	%		412,684

---

Notes:

 

(1)	SR - Street Retail; SC - Shopping Center

(2)	Excludes redevelopment square footage not yet in service, Santana Row residential, future phases of Santana Row, Rollingwood and The Crest at Congressional Apartments.

(3)	Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more.

(4)	Portion of property subject to capital lease obligation.

(5)	Total investment includes dollars associated with the 146 units of The Crest at Congressional.

(6)	Property owned in a “downreit” partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units.

(7)	Property subject to capital lease obligation.

(8)	As of July 1, 2004, property has been contributed to the joint venture with Clarion Lion Properties Fund.

(9)	Consists of two properties, one at 100% and one at 90%.

(10)	Consists of nine properties, seven at 100% and two at 90%.

(11)	Consists of four properties, three at 100% and one at 90%.

(12)	Consists of two properties, one at 100% and one at 85%.

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Federal Realty Investment Trust

Shopping Center / Street Retail Summary

June 30, 2004

 

Shopping Center Summary

(in thousands, except square footage data)

 

		For the six months ended June 30,
		2004			2003
Real Estate Assets, at cost		$	1,573,979		$	1,324,025
Rental Income (1)		$	125,155		$	113,289
Other Property Income			4,400			4,195
Interest Income			485			464
Total Revenues			130,040			117,948
Rental Expense			25,204			22,555
Real Estate Tax Expense			13,752			12,343
Total Property Operating Expenses			38,956			34,898
Property Operating Income (2)		$	91,084		$	83,050
Square Feet (3)			14,086,000			13,024,000
Street Retail Summary
(in thousands, except square footage data)
		For the six months ended June 30,
		2004			2003
Real Estate Assets, at cost		$	1,050,429		$	1,016,775
Rental Income (4)		$	56,268		$	44,848
Other Property Income			7,219			4,085
Interest Income			2,560			2,388
Total Revenues			66,047			51,321
Rental Expense			19,583			17,860
Real Estate Tax Expense			4,951			4,072
Total Property Operating Expenses			24,534			21,932
Property Operating Income (2)		$	41,513		$	29,389
Square Feet (3)			2,776,000			2,790,000

---

Notes:

 

(1)	Includes rent revenue from residential units of $1.1 million in 2004 and $1.1 million in 2003.

(2)	All components of property operating income for the periods ended June 30, 2004 and 2003 have been restated for discontinued operations.

(3)	Excludes redevelopment square footage not yet in service. Does not include any future phases of Santana Row or residential square footage at Santana Row, Rollingwood Apartments or The Crest at Congressional Apartments.

(4)	Includes rent revenue from residential units of $5.1 million in 2004 and $3.2 million in 2003.

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Federal Realty Investment Trust

Retail Leasing Summary (1) - Comparable Basis

June 30, 2004

 

New Lease Summary - Comparable (2)

 

Quarter		Number of Leases Signed		% of Total Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent			Cash Basis % Increase Over Prior Rent			Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements (6)			Tenant Improvements Per Sq. Ft.
2nd Quarter 2004		30		37	%		261,186		$	19.10		$	16.74		$	617,736		14	%		21	%		9.5		$	3,694,856		$	14.15
1st Quarter 2004		42		57	%		272,835		$	19.93		$	16.46		$	948,063		21	%		30	%		9.9		$	2,754,080		$	10.09
4th Quarter 2003		33		45	%		124,333		$	23.90		$	18.88		$	623,990		27	%		38	%		7.8		$	3,700,718		$	29.76
3rd Quarter 2003		28		38	%		218,307		$	14.21		$	11.82		$	522,865		20	%		28	%		10.9		$	2,596,768		$	11.90
Total - 12 months		133		44	%		876,661		$	18.82		$	15.73		$	2,712,654		20	%		28	%		9.6		$	12,746,422		$	14.54
Renewal Lease Summary - Comparable (2) (7)
Quarter		Number of Leases Signed		% of Total Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent			Cash Basis % Increase Over Prior Rent			Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements (6)			Tenant Improvements Per Sq. Ft.
2nd Quarter 2004		52		63	%		219,919		$	20.83		$	18.35		$	544,693		13	%		22	%		5.3		$	529,924		$	2.41
1st Quarter 2004		32		43	%		102,220		$	27.45		$	24.98		$	252,272		10	%		22	%		5.7		$	70,000		$	0.68
4th Quarter 2003		40		55	%		124,683		$	26.95		$	25.59		$	169,950		5	%		19	%		4.8		$	47,000		$	0.38
3rd Quarter 2003		45		62	%		189,521		$	21.41		$	19.44		$	373,441		10	%		21	%		5.0		$	536,173		$	2.83
Total - 12 months		169		56	%		636,343		$	23.26		$	21.16		$	1,340,356		10	%		21	%		5.2		$	1,183,097		$	1.86
Total Lease Summary - Comparable (2)
Quarter		Number of Leases Signed		% of Total Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent			Cash Basis % Increase Over Prior Rent			Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements (6)			Tenant Improvements Per Sq. Ft.
2nd Quarter 2004		82		100	%		481,105		$	19.89		$	17.47		$	1,162,429		14	%		21	%		7.5		$	4,224,780		$	8.78
1st Quarter 2004		74		100	%		375,055		$	21.98		$	18.78		$	1,200,335		17	%		27	%		8.5		$	2,824,080		$	7.53
4th Quarter 2003		73		100	%		249,016		$	25.43		$	22.24		$	793,940		14	%		27	%		6.2		$	3,747,718		$	15.05
3rd Quarter 2003		73		100	%		407,828		$	17.56		$	15.36		$	896,306		14	%		24	%		7.5		$	3,132,941		$	7.68
Total - 12 months		302		100	%		1,513,004		$	20.69		$	18.01		$	4,053,010		15	%		25	%		7.5		$	13,929,519		$	9.21

---

Notes:

 

(1)	Leases on this report represent retail activity only; office and residential leases are not included.

(2)	Comparable leases represent those leases signed on spaces for which there was a former tenant.

(3)	Contractual Rent represents contractual Minimum Rent under the new lease for the first 12 months of the term.

(4)	Prior Rent represents Minimum Rent and Percentage Rent paid by the prior tenant in the final 12 months of the term.

(5)	Weighted average is determined on the basis of square footage.

(6)	See Glossary of Terms

(7)	Renewal leases represent expiring leases rolling over with the same tenant. All other leases are categorized as new.

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Federal Realty Investment Trust

Retail Leasing Summary (1) - Non-Comparable Basis (cash, non-straight-lined basis)

June 30, 2004

 

Total Lease Summary - Non-Comparable (2)

 

Quarter		Number of Leases Signed		% of Total Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Weighted Average Lease Term (4)		Tenant Improvements (5)			Tenant Improvements Per Sq. Ft.
2nd Quarter 2004		5		100	%		14,816		$	29.23		7.8		$	196,052		$	13.23
1st Quarter 2004		10		100	%		78,843		$	24.69		13.7		$	25,000		$	0.32
4th Quarter 2003		6		100	%		21,867		$	36.64		8.9		$	84,425		$	3.86
3rd Quarter 2003		11		100	%		85,426		$	24.59		17.3		$	50,000		$	0.59
Total -12 months		32		100	%		200,952		$	26.29		13.9		$	355,477		$	1.77

---

Notes:

 

(1)	Leases on this report represent retail activity only; office and residential leases are not included.

(2)	Non-comparable leases represent those leases signed on spaces for which there was no former tenant, or expansion square footage for leases rolling over for which there was no former tenant.

(3)	Contractual Rent represents contractual Minimum Rent under the new lease for the first 12 months of the term.

(4)	Weighted average is determined on the basis of square footage.

(5)	See Glossary of Terms.

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Federal Realty Investment Trust

Lease Expirations

June 30, 2004

 

Assumes no exercise of lease options

 

		Anchor Tenants (1)								Small Shop Tenants								Total
Year		Expiring SF (2)		% of Anchor SF			Minimum Rent PSF			Expiring SF (2)		% of Small Shop SF			Minimum Rent PSF			Expiring SF (2)		% of Total SF			Minimum Rent PSF
2004		90,000		1	%		$	2.67		336,000		5	%		$	21.01		426,000		3	%		$	17.14
2005		344,000		4	%		$	12.17		818,000		12	%		$	22.50		1,162,000		8	%		$	19.45
2006		504,000		6	%		$	10.47		864,000		13	%		$	24.34		1,368,000		9	%		$	19.23
2007		884,000		10	%		$	8.47		976,000		14	%		$	24.07		1,860,000		12	%		$	16.66
2008		745,000		9	%		$	11.19		877,000		13	%		$	22.92		1,622,000		11	%		$	17.53
2009		1,167,000		14	%		$	10.76		813,000		12	%		$	26.04		1,980,000		13	%		$	17.04
2010		446,000		5	%		$	12.53		415,000		6	%		$	23.41		861,000		6	%		$	17.78
2011		376,000		4	%		$	18.32		470,000		7	%		$	29.49		846,000		6	%		$	24.53
2012		576,000		7	%		$	12.73		381,000		6	%		$	33.72		957,000		6	%		$	21.09
2013		709,000		8	%		$	14.35		251,000		4	%		$	31.33		960,000		6	%		$	18.79
Thereafter		2,787,000		32	%		$	15.26		543,000		8	%		$	26.51		3,330,000		22	%		$	17.09
Total (3)		8,628,000		100	%		$	12.82		6,744,000		100	%		$	25.20		15,372,000		100	%		$	18.25

 

Assumes lease options are exercised

 

		Anchor Tenants (1)								Small Shop Tenants								Total
Year		Expiring SF (2)		% of Anchor SF			Minimum Rent PSF			Expiring SF (2)		% of Small Shop SF			Minimum Rent PSF			Expiring SF (2)		% of Total SF			Minimum Rent PSF
2004		55,000		1	%		$	4.36		270,000		4	%		$	20.37		325,000		2	%		$	17.66
2005		19,000		0	%		$	15.58		524,000		8	%		$	23.74		543,000		4	%		$	23.46
2006		54,000		1	%		$	12.28		505,000		7	%		$	26.66		559,000		4	%		$	25.27
2007		174,000		2	%		$	8.39		557,000		8	%		$	24.41		731,000		5	%		$	20.60
2008		150,000		2	%		$	11.91		530,000		8	%		$	23.34		680,000		4	%		$	20.82
2009		291,000		3	%		$	13.18		535,000		8	%		$	27.75		826,000		5	%		$	22.62
2010		158,000		2	%		$	13.46		378,000		6	%		$	24.72		536,000		3	%		$	21.40
2011		114,000		1	%		$	15.01		502,000		7	%		$	23.55		616,000		4	%		$	21.97
2012		238,000		3	%		$	13.00		430,000		6	%		$	27.91		668,000		4	%		$	22.60
2013		263,000		3	%		$	12.32		339,000		5	%		$	25.69		602,000		4	%		$	19.85
Thereafter		7,112,000		82	%		$	12.96		2,174,000		32	%		$	25.69		9,286,000		60	%		$	15.94
Total (3)		8,628,000		100	%		$	12.82		6,744,000		100	%		$	25.20		15,372,000		100	%		$	18.25

---

Notes:

 

(1)	Anchor is defined as a tenant leasing 15,000 square feet or more.

(2)	Minimum Rent reflects in-place contractual rent as of June 30, 2004.

(3)	Represents occupied square footage as of June 30, 2004.

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Federal Realty Investment Trust

Portfolio Leasing Statistics

June 30, 2004

 

Overall Portfolio Statistics (1)

 

		At June 30, 2004							At June 30, 2003
Type		Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties:
Including Santana Row Phase I & II (2)		16,862,000		15,878,000		94.2	%		15,814,000		14,727,000		93.1	%
Residential Properties:
Residential Units (3)		683		645		94.4	%		683		607		88.9	%
Same Center Statistics (1)
		At June 30, 2004							At June 30, 2003
Type		Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties (4):
Excluding properties under redevelopment (leasable square feet) (2)		12,800,000		12,360,000		96.6	%		12,737,000		12,205,000		95.8	%
Residential Properties:
Rollingwood Apartments (# of units)		282		277		98.2	%		282		277		98.2	%

---

Notes:

 

(1)	See Glossary of Terms.

(2)	Leasable square feet; excludes redevelopment square footage not yet placed in service.

(3)	Includes Rollingwood, Santana Row residential and The Crest at Congressional Apartments.

(4)	Excludes centers purchased or sold.

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Federal Realty Investment Trust

Summary of Top 25 Tenants

June 30, 2004

 

Rank		Tenant Name		Annualized Base Rent				Percentage of Total Annualized Base Rent			Tenant GLA			Percentage of Total GLA			Number of Stores Leased
1		Safeway, Inc.		$	6,510,000			2.32	%		472,000			2.80	%		8
2		Ahold USA, Inc.		$	6,197,000			2.21	%		521,000			3.09	%		11
3		Gap, Inc., The		$	6,179,000			2.20	%		232,000			1.38	%		12
4		Bed, Bath & Beyond, Inc.		$	5,619,000			2.00	%		396,000			2.35	%		9
5		Barnes & Noble, Inc.		$	4,234,000			1.51	%		194,000			1.15	%		20
6		TJX Companies, The		$	3,958,000			1.41	%		454,000			2.69	%		14
7		CVS Corporation		$	3,539,000			1.26	%		151,000			0.90	%		13
8		Best Buy Stores, L.P.		$	3,484,000			1.24	%		101,000			0.60	%		3
9		Toys R Us, Inc.		$	3,271,000			1.17	%		347,000			2.06	%		11
10		Wakefern Food Corporation		$	3,077,000			1.10	%		232,000			1.38	%		4
11		Borders Group, Inc.		$	2,780,000			0.99	%		134,000			0.79	%		5
12		OPNET Technologies, Inc.		$	2,478,000			0.88	%		60,000			0.36	%		1
13		Great Atlantic &Pacific Tea Co		$	2,380,000			0.85	%		236,000			1.40	%		4
14		CompUSA, Inc.		$	2,371,000			0.85	%		134,000			0.79	%		5
15		MTS, Inc.		$	2,345,000			0.84	%		91,000			0.54	%		5
16		Home Depot, Inc.		$	2,207,000			0.79	%		218,000			1.29	%		3
17		Container Store, Inc., The		$	2,185,000			0.78	%		52,000			0.31	%		2
18		Michaels Stores, Inc.		$	2,166,000			0.77	%		157,000			0.93	%		7
19		Dollar Tree Stores, Inc.		$	2,027,000			0.72	%		162,000			0.96	%		16
20		Staples, Inc.		$	2,004,000			0.71	%		106,000			0.63	%		6
21		Bally’s Health & Tennis		$	1,985,000			0.71	%		156,000			0.93	%		5
22		Retail Ventures, Inc.		$	1,969,000			0.70	%		86,000			0.51	%		3
23		Dress Barn, Inc.		$	1,928,000			0.69	%		101,000			0.60	%		14
24		Kohl’s Corporation		$	1,905,000			0.68	%		356,000			2.11	%		3
25		Albertson’s, Inc.		$	1,829,000			0.65	%		206,000			1.22	%		5
		Totals - Top 25 Tenants		$	78,627,000			28.02	%		5,355,000			31.76	%		189
		Total Annualized Base Rent:		$	280,570,000	(1)
		Total Portfolio Square Footage:									16,862,000	(2)

---

Notes:

 

(1)	Reflects annual in-place contractual rent as of June 30, 2004.

(2)	Excludes redevelopment square footage not yet placed in service.

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Federal Realty Investment Trust

2003 Sales / Occupancy Costs (1) (2)

June 30, 2004

 

		Average Sales Per Square Foot			Average Occupancy Cost per Square Foot			Average Occupancy Costs as a Percentage of Sales
Total Reporting Tenants		$	320.27		$	22.48		7.0	%
Reporting Anchor Tenants		$	321.49		$	17.05		5.3	%
Reporting Small Shop Tenants		$	318.51		$	30.28		9.5	%

 

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Notes:

 

(1)	Includes only those tenants that have twelve months of reported sales in 2003. For that period, reporters are comprised of 3.4 million square feet of small shop space and 4.9 million square feet of anchor space.

(2)	Occupancy costs include minimum rent, percentage rent, common area maintenance, real estate tax and merchant’s association dues.

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Federal Realty Investment Trust

Reconciliation of 2004 EPS to 2004 FFO Guidance

June 30, 2004

 

($ millions except per share amounts)

 

		Forecast										Per Share
Net income		$	77			to		$	79			$	1.48		to		$	1.51
Gain on sale of real estate			(8	)					(8	)
Depreciation and amortization of real estate assets			81						81
Amortization of initial direct costs of leases			7						7
Income attributable to operating partnership units			1						1
Funds from Operations			158						160
Dividends on preferred stock			(11	)					(11	)
Funds from operations available for common shareholders			147			to			149			$	2.81		to		$	2.84
Weighted Average Shares (diluted)			52.3

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Glossary of Terms

 

EBITDA: EBITDA is a non-GAAP measure that means net income or loss plus interest expense, income taxes, depreciation and amortization; adjusted for gain or loss on sale of assets, impairment provisions, provision for loss on equity securities and other nonrecurring expenses. EBITDA is presented because it provides useful information regarding our ability to service debt. EBITDA should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of EBITDA, adjusted for discontinued operations, to net income for the six months ended June 30, 2004 and 2003 is as follows:

 

		For the Six Months Ended June 30,
		(in thousands)
		2004				2003
Net income		$	43,578			$	34,502
Depreciation and amortization			43,858				35,575
Interest			42,710				35,831
(Gain) on sale of real estate			(8,334	)			(551	)
EBITDA		$	121,812			$	105,357

 

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies’ operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as follows: income available for common shareholders before depreciation and amortization of real estate assets and before extraordinary items less gains and losses on sale of real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance because it primarily excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

 

Property Operating Income: Gross revenues, including interest income, less rental expenses and real estate taxes.

 

Overall Portfolio: Includes all operating properties owned in reporting period.

 

Same Center: Excludes centers purchased or sold.

 

Tenant improvements: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable.