Form 8-K

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) November 3, 2004

 


 

Federal Realty Investment Trust

(Exact name of registrant as specified in its charter)

 


 

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

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02. 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 November 3, 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 September 30, 2004. The supplemental data and press release are furnished as Exhibit 99.1 hereto.

 

Item 9.01. Financial Statements and Exhibits.

 

  (c) Exhibits

 

  99.1 Supplemental portfolio information at September 30, 2004 (including press release dated November 3, 2004)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    FEDERAL REALTY INVESTMENT TRUST

Date: November 3, 2004

 

/s/ Larry E. Finger


   

Larry E. Finger

   

Senior Vice President,

   

Chief Financial Officer and Treasurer

 

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EXHIBIT INDEX

 

Exh No.

 

Exhibit


99.1   Supplemental Information at September 30, 2004

 

-3-

Supplemental Information
Table of Contents

Exhibit 99.1

 

FEDERAL REALTY INVESTMENT TRUST

 

Supplemental Information

September 30, 2004

 

TABLE OF CONTENTS

 

1.

     Third Quarter 2004 Earnings Press Release    3

2.

     Financial Highlights     
      

Summarized Operating Results

   8
      

Summarized Balance Sheet

   9
      

Funds From Operations / Summary of Capital Expenditures

   10
      

Market Data / Capital Availability

   11
      

Components of Rental Income

   12

3.

     Summary of Debt     
      

Summary of Outstanding Debt

   13
      

Summary of Debt Maturities

   14

4.

     Summary of Redevelopment Opportunities and Santana Row    15

5.

     2004 Acquisitions and Dispositions    16

6.

     Real Estate Status Report    17

7.

     Shopping Center / Street Retail Summary    19

8.

     Leasing Summary     
      

Retail Leasing Summary – Comparable

   20
      

Retail Leasing Summary – Non-comparable

   21

9.

     Lease Expirations    22

10.

     Portfolio Leasing Statistics    23

11.

     Summary of Top 25 Tenants    24

12.

     Reconciliation of Net Income to FFO Guidance    25

13.

     Joint Venture Disclosure     
      

Summarized Operating Results

   26
      

Summarized Balance Sheet

   27
      

Summary of Outstanding Debt

   28
      

2004 Acquisitions and Dispositions

   29
      

Real Estate Status Report

   30

14.

     Glossary of Terms    31

 

1626 East Jefferson Street

Rockville, Maryland 20852-4041

301/998-8100


Table of Contents

Safe Harbor Language

 

Certain matters discussed within this Supplemental Information 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. These 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 that the number of properties we acquire for our own account, and therefore the amount of capital we invest in acquisitions, may be impacted by our real estate partnership;

 

  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 Supplemental Information. 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.


Table of Contents

FOR IMMEDIATE RELEASE

 

Investor and Media Inquiries

   

Andrew Blocher

  Suzanne O’Neill

Vice President, Capital Markets & Investor Relations

  Manager, Investor Relations

301/998-8166

  301/998-8358

ablocher@federalrealty.com

  soneill@federalrealty.com

 

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2004 OPERATING RESULTS

 

ROCKVILLE, Md. (November 3, 2004) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2004.

 

  ¨ For the third quarter 2004, Funds from Operations available for common shareholders (FFO) per diluted share was $0.72 and net income available for common shareholders per diluted share was $0.30.
  ¨ When compared to third quarter 2003, same-center property operating income increased 4.5% including redevelopments and expansions, and 3.3% excluding redevelopment and expansion properties.
  ¨ Cash-basis contractual rent increases on lease rollovers were 22% for the third quarter on over 400,000 square feet of retail space for which there was a prior tenant.
  ¨ The Trust’s portfolio was 94.2% leased at September 30, 2004.

 

Financial Results

 

Federal Realty reported FFO per diluted share of $0.72 in third quarter 2004, a 9.1% increase over the $0.66 of FFO per diluted share reported in third quarter 2003. Total FFO available for common shareholders was $38.3 million for the third quarter of 2004 compared to $33.3 million for last year’s third quarter. For the nine months ended September 30, 2004, Federal Realty reported FFO of $111.7 million, or $2.14 per diluted share, compared to $89.9 million, or $1.87 per diluted share for the nine months ended September 30, 2003. Federal Realty’s FFO results for the nine months ended September 30, 2003, include 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.

 

Net income available for common shareholders was $15.8 million, and net income available for common shareholders per diluted share was $0.30 for the quarter ended September 30, 2004, versus $21.7 million and

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2004 OPERATING RESULTS

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$0.44, respectively, for the third quarter of 2003. Net income available for common shareholders increased 23.2% from $43.5 million for the nine months ended September 30, 2003, to $53.6 million, for the nine months ended September 30, 2004. Year to date, net income available for common shareholders per diluted share improved from $0.92 in 2003 to $1.04 in 2004. Net income available for common shareholders and net income available for common shareholders per diluted share for the nine months ended September 30, 2003, include the impact of the preferred share redemption charge discussed above.

 

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO available for common shareholders and FFO per diluted share to net income available for common shareholders and net income available for common shareholders per diluted share, respectively, is attached to this press release.

 

“Careful execution of the Trust’s business plan has resulted in consistently improving operating results,” commented Donald Wood, Federal Realty’s President and Chief Executive Officer. “By focusing our attention on continually improving our high quality existing portfolio, through leasing and redevelopment, and by opportunistically capitalizing on external growth opportunities, we have uniquely positioned ourselves to improve on our success to date.”

 

Portfolio Results

 

On a same-center basis, including redevelopment and expansion properties, property operating income increased 4.5% over third quarter 2003. When redevelopment and expansion properties are excluded, same-center property operating income increased 3.3% from third quarter 2003.

 

Overall, the Trust’s portfolio was 94.2% leased as of September 30, 2004, an improvement of 110 basis points from December 31, 2003. As of September 30, 2004, Federal Realty’s same-center portfolio was 96.5% leased, a 50 basis point improvement over year-end 2003.

 

During the third quarter of 2004, the Trust signed 79 leases for 418,000 square feet of retail space. On a comparable space basis (i.e. spaces for which there was a former tenant), the Trust leased 409,000 square feet at a weighted-average cash-basis contractual rent increase per square foot (i.e. excluding the impact of straight-line rents) of 22%. The weighted-average contractual rent on this comparable space for the first year of the new leases is $22.82 per square foot compared to the weighted-average contractual rent of $18.69 per square foot for the last year of the prior leases. The weighted-average contractual rent for the last year of the

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2004 OPERATING RESULTS

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prior leases is calculated by including both the minimum rent and the percentage rent actually paid during the last year of those leases. Year to date, the Trust has signed 233 leases for 1.3 million square feet of comparable space, a record for the first three quarters of any year, at a weighted-average cash-basis contractual rent increase per square foot of 18%. On a GAAP basis (i.e. including the impact of straight-line rents), weighted-average rent increases per square foot for comparable space were 33% for the third quarter of 2004. As of September 30, 2004, Federal Realty’s weighted-average contractual rent for retail and commercial space in its portfolio was $18.47 per square foot.

 

At Santana Row, Federal Realty’s mixed-use community in San Jose, Calif., 92% of the retail space was leased to 115 tenants, with 101 stores open and operating as of September 30, 2004. Phase III (CinéArts Theatre) opened as planned during third quarter 2004. The 255 existing residential units at Santana Row were 98% leased as of September 30, 2004, and the development of the 256 Phase IV residential units remains on schedule and on budget.

 

Guidance

 

Federal Realty today narrowed its guidance for 2004 FFO per diluted share to a range of $2.83 to $2.84, and increased guidance for net income per diluted share to a range of $1.30 to $1.31. In addition, management provided initial guidance for 2005 FFO per diluted share of $3.00 to $3.03, and net income per diluted share of $1.24 to $1.27.

 

“Our guidance for 2004 and 2005 projects real FFO per share growth of 7% in 2004 and 8% to 9% for 2005, after adjusting for Santana Row insurance proceeds and the impact of the 2003 preferred share redemption charge,” commented Larry Finger, Federal Realty’s Senior Vice President and Chief Financial Officer. “Through our internal growth and redevelopment focused operating strategy, we are confident of our ability to produce top tier FFO per share growth while subjecting our investors to the least amount of risk in the sector.”

 

Summary of Other Quarterly Activities and Recent Developments

 

Ø 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.

 

Ø September 7, 2004 – Federal Realty announced that its Board of Trustees increased the dividend on the Trust’s common shares by $0.06 annually, resulting in an annualized rate of $2.02 per share. This

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2004 OPERATING RESULTS

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increase represented the 37th consecutive year that Federal Realty had increased its common dividend, the longest consecutive record in the REIT sector.

 

Ø September 21, 2004 – Federal Realty announced the acquisition of two supermarket-anchored shopping centers in the Boston metropolitan area for $38 million. The two properties, Campus Plaza in Bridgewater, Mass., and Pleasant Shops in Weymouth, Mass., were acquired for the Trust’s joint venture with Clarion Lion Properties Fund.

 

Conference Call Information

 

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its third quarter earnings conference call, which is scheduled for November 4, 2004, at 11 a.m. Eastern Standard Time. 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 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 (excluding joint venture properties) contains approximately 16.8 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 350,000 square feet of retail space through its joint venture with Clarion Lion Properties Fund. Our operating portfolio (excluding joint venture properties) was 94.2% leased to approximately 2,200 national, regional, and local retailers as of September 30, 2004, with no single tenant accounting for more than 2.3% 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 37 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. These 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:

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2004 OPERATING RESULTS

Page 5

 

  ¨ 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 that the number of properties we acquire for our own account, and therefore the amount of capital we invest in acquisitions, may be impacted by our real estate partnership;

 

  ¨ 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.


Table of Contents

Federal Realty Investment Trust

Summarized Operating Results

September 30, 2004

 

Financial Highlights

(in thousands, except per share data)

(unaudited)

 

     Three months ended
September 30,


    Nine months ended
September 30,


 
     2004

    2003

    2004

    2003

 

OPERATING RESULTS

                                

Revenues

                                

Rental income

   $ 91,599     $ 80,424     $ 271,975     $ 238,563  

Other property income

     7,416       4,626       19,030       12,885  

Mortgage interest income

     1,142       886       3,385       3,018  
    


 


 


 


       100,157       85,936       294,390       254,466  

Expenses

                                

Rental

     22,624       18,952       67,167       59,366  

Real estate taxes

     10,033       8,897       28,655       25,312  

Administrative

     4,673       3,221       13,443       9,642  

Depreciation and amortization

     23,666       18,576       67,148       53,820  
    


 


 


 


       60,996       49,646       176,413       148,140  
    


 


 


 


Operating income

     39,161       36,290       117,977       106,326  

Interest income

     548       316       1,350       1,057  

Interest expense

     (21,125 )     (18,719 )     (63,835 )     (54,550 )

Income from real estate partnership

     19       —         19       —    

Minority interests

     (936 )     (1,053 )     (3,317 )     (3,257 )
    


 


 


 


Income from continuing operations

     17,667       16,834       52,194       49,576  

Discontinued operations

                                

Operating income from discontinued operations

     (4 )     589       713       1,798  

Gain on sale of real estate

     997       7,172       9,331       7,723  
    


 


 


 


Results from operations of discontinued assets

     993       7,761       10,044       9,521  
    


 


 


 


Net Income

     18,660       24,595       62,238       59,097  

Dividends on preferred stock

     (2,869 )     (2,869 )     (8,607 )     (12,215 )

Preferred stock redemption fee

     —         —         —         (3,423 )
    


 


 


 


Net income available for common shareholders

   $ 15,791     $ 21,726     $ 53,631     $ 43,459  
    


 


 


 


FUNDS FROM OPERATIONS AVAILABLE FOR COMMON SHAREHOLDERS

                                

Net income

   $ 18,660     $ 24,595     $ 62,238     $ 59,097  

Gain on sale of real estate

     (997 )     (7,172 )     (9,331 )     (7,723 )

Depreciation and amortization of real estate assets

     21,376       16,974       61,145       49,146  

Depreciation on JV real estate assets

     50       —         50       —    

Amortization of initial direct costs of leases

     1,882       1,427       5,170       4,173  
    


 


 


 


Funds from operations

     40,971       35,824       119,272       104,693  

Dividends on preferred stock

     (2,869 )     (2,869 )     (8,607 )     (12,215 )

Income attributable to operating partnership units

     242       375       1,032       816  

Preferred stock redemption fee

     —         —         —         (3,423 )
    


 


 


 


Funds from operations available for common shareholders

     38,344       33,330       111,697       89,871  
    


 


 


 


Weighted average number of common shares, diluted

     52,934       50,216       52,074       48,004  
    


 


 


 


Funds from operations per share available for common shareholders

   $ 0.72     $ 0.66     $ 2.14     $ 1.87  
    


 


 


 


EARNINGS PER COMMON SHARE, BASIC

                                

Income from continuing operations available for common shareholders

   $ 0.28     $ 0.28     $ 0.86     $ 0.73  

Income from discontinued operations

     0.02       0.16       0.20       0.20  
    


 


 


 


Net income available for common shareholders, basic

   $ 0.30     $ 0.44     $ 1.06     $ 0.93  
    


 


 


 


Weighted average number of common shares, basic

     51,640       48,935       50,722       46,810  
    


 


 


 


EARNINGS PER COMMON SHARE, DILUTED

                                

Income from continuing operations available for common shareholders

   $ 0.28     $ 0.29     $ 0.85     $ 0.72  

Income from discontinued operations

     0.02       0.15       0.19       0.20  
    


 


 


 


Net income available for common shareholders, diluted

   $ 0.30     $ 0.44     $ 1.04     $ 0.92  
    


 


 


 


Weighted average number of common shares, diluted

     52,934       50,216       51,273       48,004  
    


 


 


 



Table of Contents

Federal Realty Investment Trust

Summarized Balance Sheet

September 30, 2004

 

Financial Highlights

(in thousands, except per share data)

 

CONSOLIDATED BALANCE SHEETS

 

     September 30,
2004


    December 31,
2003


 
     (unaudited)        

ASSETS

                

Real estate, at cost

   $ 2,659,903     $ 2,470,149  

Less accumulated depreciation and amortization

     (573,246 )     (514,177 )
    


 


Net real estate investments

     2,086,657       1,955,972  

Cash and cash equivalents

     23,437       34,968  

Mortgage notes receivable

     45,079       41,500  

Accounts and notes receivable

     34,748       31,207  

Other assets

     77,021       79,788  

Investment in real estate partnership

     14,078       —    
    


 


TOTAL ASSETS

   $ 2,281,020     $ 2,143,435  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY

                

Liabilities

                

Obligations under capital leases and mortgage loans

   $ 411,831     $ 414,357  

Notes payable

     320,090       361,323  

Senior notes and debentures

     567,980       535,000  

Other liabilities

     156,106       111,799  
    


 


Total liabilities

     1,456,007       1,422,479  

Minority interests

     35,250       29,582  

Shareholders’ equity

                

Preferred stock

     135,000       135,000  

Common shares and other shareholders’ equity

     654,763       556,374  
    


 


Total shareholders’ equity

     789,763       691,374  
    


 


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 2,281,020     $ 2,143,435  
    


 



Table of Contents

Federal Realty Investment Trust

Funds From Operations / Summary of Capital Expenditures

September 30, 2004

 

     Three Months Ended

 
     September 30,
2004


    September 30,
2003


 
     (in thousands, except per share data)  

Funds from Operations available for common shareholders (FFO) (1)

                

Net income

   $ 18,660     $ 24,595  

(Gain) on sale of real estate

     (997 )     (7,172 )

Depreciation and amortization of real estate assets

     21,376       16,974  

Depreciation of joint venture real estate assets

     50       —    

Amortization of initial direct costs of leases

     1,882       1,427  
    


 


Funds from Operations

     40,971       35,824  

Dividends on preferred stock

     (2,869 )     (2,869 )

Income attributable to operating partnership units

     242       375  

Preferred stock redemption fee

     —         —    
    


 


Funds from operations available for common shareholders

   $ 38,344     $ 33,330  
    


 


Weighted average number of common shares, diluted

     52,934       50,216  

Funds from operations per share, diluted

   $ 0.72     $ 0.66  
    


 


Summary of Capital Expenditures

                

Non-maintenance capital expenditures

                

Acquisition related (2)

   $ 1,747     $ 50  

Capital expenditures related to new square footage

     1,539       —    

Development, redevelopment and expansions

     22,058       27,029  

Tenant improvements

     6,151       4,745  
    


 


Total non-maintenance capital expenditures

     31,495       31,824  

Maintenance capital expenditures

     2,007       1,665  
    


 


Total capital expenditures

   $ 33,502     $ 33,489  
    


 


Dividends and Payout Ratios

                

Common dividends declared

   $ 26,151     $ 24,090  

Dividend payout ratio % - FFO

     68 %     72 %

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.


Table of Contents

Federal Realty Investment Trust

Market Data / Capital Availability

September 30, 2004

 

     As of

 
     September 30,
2004


    September 30,
2003


 
     (in thousands, except per share data)  

Market data

                

Common shares outstanding (1)

     51,908       49,164  

Market price per common share

   $ 44.00     $ 36.86  
    


 


Common equity market capitalization

   $ 2,283,952     $ 1,812,185  

Series B preferred shares outstanding

     5,400       5,400  

Market price per Series B preferred share

   $ 27.17     $ 27.00  
    


 


Preferred equity market capitalization

   $ 146,718     $ 145,800  
    


 


Equity market capitalization

   $ 2,430,670     $ 1,957,985  

Total debt (2)

     1,299,901       1,120,317  
    


 


Total market capitalization

   $ 3,730,571     $ 3,078,302  
    


 


Total debt to market capitalization

     35 %     36 %
    


 


Capital availability:

                

Cash on hand

   $ 23,437     $ 33,656  

Available capacity under line of credit

     250,000       102,000  

Available for issuance under shelf registration statement

     225,000       400,000  
    


 


     $ 498,437     $ 535,656  
    


 



Notes:

(1) Consists of 53,387,604 shares issued net of 1,479,383 shares held in Treasury as of September 30, 2004. As of September 30, 2003, consists of 50,629,782 shares issued net of 1,466,013 shares held in Treasury. Amounts do not include 449,325 and 839,828 Operating Units outstanding at September 30, 2004 and September 30, 2003, respectively.
(2) Total debt includes capital leases and mortgages payable, notes payable, and senior notes and debentures. It does not include the Trust’s 30% share of the $13.3 million debt of the partnership with Clarion Lion Properties Fund.


Table of Contents

Federal Realty Investment Trust

Components of Rental Income

September 30, 2004

 

    

Nine months ended
September 30,


   Three months ended
September 30,


     2004

   2003

   2004

   2003

Components of Rental Income (1)

                           

Minimum Rents

                           

Retail and commercial properties

   $ 209,654    $ 184,822    $ 71,086    $ 63,082

Residential

     9,295      6,056      3,149      2,593

Cost Reimbursements

     49,190      41,588      16,520      13,488

Percentage Rents

     3,836      6,097      844      1,261
    

  

  

  

Total Rental Income

   $ 271,975    $ 238,563    $ 91,599    $ 80,424
    

  

  

  


Notes:
(1) For the nine months ended September 30, 2004 and September 30, 2003, minimum rents include $2.6 million and $1.0 million, respectively, to recognize rent on a straight-line basis and includes $1.1 million and $0.1 million, respectively, to recognize income for market lease adjustments on acquired properties in accordance with SFAS 141. For the three months ended September 30, 2004 and September 30, 2003, minimum rents include $0.7 million and $0.2 million, respectively, to recognize rent on a straight-line basis and includes $0.5 million and $0.1 million, respectively, to recognize income for market lease adjustments on acquired properties in accordance with SFAS 141. Residential minimum rents comprise the rents at Rollingwood Apartments, The Crest at Congressional Plaza Apartments and the residential rents at Santana Row.


Table of Contents

Federal Realty Investment Trust

Summary of Outstanding Debt

September 30, 2004

 

     Maturity

   Interest Rate as of
September 30, 2004


         Balance

             
                     (in thousands)              

Mortgage Loans (a)

                                    

Secured Fixed Rate

                                    

Leesburg Plaza

   10/01/08    6.510 %        $ 9,900              

164 E Houston Street

   10/06/08    7.500 %          200              

Mercer Mall

   09/01/09    8.375 %          4,653              

Federal Plaza

   06/01/11    6.750 %          35,230              

Tyson’s Station

   09/01/11    7.400 %          6,664              

Barracks Road

   11/01/15    7.950 %          43,855              

Brick Plaza

   11/01/15    7.415 %          32,636              

Hauppauge

   11/01/15    7.950 %          16,532              

Lawrence Park

   11/01/15    7.950 %          31,084              

Wildwood

   11/01/15    7.950 %          27,323              

Wynnewood

   11/01/15    7.950 %          31,678              

Mount Vernon

   04/15/28    5.660 %   (b)      12,894              
                    


           
                     $ 252,649              
                    


           

Notes payable

                                    

Unsecured Fixed Rate

                                    

Perring Plaza Renovation

   01/31/13    10.00 %        $ 2,016              

Other

   various    various            45              

Unsecured Variable Rate

                                    

Revolving credit facility

   10/08/06    LIBOR + .75 %   (c)      50,000              

Term note with banks

   10/08/06    LIBOR + .95 %          100,000              

Term note with banks

   10/08/08    LIBOR + .95 %   (d)      150,000              

Escondido (Municipal bonds)

   10/01/16    2.710 %   (e)      9,400              

Secured Fixed Rate

                                    

Loehmann’s Redemption Note

   09/27/06    2.34 %   (f)      8,629              
                    


           
                     $ 320,090              
                    


           

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 %   (g)      40,500              

6.125% Notes

   11/15/07    6.325 %   (h)      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              
                    


           

Subtotal

                     570,500              

Less: Unamortized Discount

                     (2,520 )            
                     $ 567,980              
                    


           

Capital lease obligations

                                    

Various through 2077 (i)

                   $ 159,182              
                    


           

Total Fixed and Variable Rate Debt

                     1,299,901              
                    


           
                                      
                                      
                                      
                                      
                                      
                                      
                                 Average
annualized
interest rate


 

Total fixed rate debt

                   $ 1,140,501     87.74 %   6.89 %

Total variable rate debt (j)

                     159,400     12.26 %   2.23 %
                    


 

 

TOTAL DEBT AND CAPITAL LEASES

                   $ 1,299,901     100.00 %   6.31 %
                    


 

 

 

 

     Nine months ended
September 30,


   Three months ended
September 30,


     2004

   2003

   2004

   2003

Operational statistics

                   

Ratio of EBITDA to combined fixed charges and preferred share dividends (k)

   2.37x    2.01x    2.43x    2.24x

Notes:

(a) Mortgage loans do not include the Trust’s 30% share of the $13.3 million debt of the partnership with Clarion Lion Properties Fund.
(b) The lender has the option to call the loan on April 15, 2013 or anytime thereafter.
(c) A $300 million three-year revolving credit facility, with a one-year extension option.
(d) 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.
(e) 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 nine months ended September 30, 2004 was 2.71%.
(f) The note bears interest at the Applicable Federal Rate established by the Internal Revenue Service for short-term debt instruments for the month of September, 2004.
(g) The Trust purchased interest rate swaps at issuance, thereby reducing the effective interest on these notes.
(h) 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%.
(i) The average annualized interest rate on capital lease obligations as of September 30, 2004 is 8.74% on a basis of minimum rent and 11.24% including performance based participation rent paid by the Trust.
(j) Average annualized interest rate on variable rate debt as of September 30, 2004.
(k) 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 September 30, 2003) and Series B preferred shares.


Table of Contents

Federal Realty Investment Trust

Summary of Debt Maturities

September 30, 2004

 

DEBT MATURITIES

(in thousands)

 

Year


   Scheduled
Amortization


   Maturities

   Total

    Percent of
Debt Expiring


    Cumulative
Percent of
Debt Expiring


 

2004

   $ 802    $ —      $ 802     0.1 %   0.1 %

2005

     4,539      40,000      44,539     3.4 %   3.5 %

2006

     5,037      199,129      204,166 (1)   15.7 %   19.2 %

2007

     5,436      149,216      154,652     11.9 %   31.1 %

2008

     5,828      159,542      165,370     12.7 %   43.8 %

2009

     6,164      178,278      184,442     14.2 %   58.0 %

2010

     6,639      —        6,639     0.5 %   58.5 %

2011

     6,670      111,606      118,276     9.1 %   67.6 %

2012

     6,178      —        6,178     0.5 %   68.1 %

2013

     4,672      —        4,672     0.4 %   68.5 %

Thereafter

     164,959      245,206      410,165     31.5 %   100.0 %
    

  

  


 

     

Total

   $ 216,924    $ 1,082,977    $ 1,299,901     100.00 %      
    

  

  


 

     

Note:

(1) Includes a $100 million term loan and $50 million drawn under the Trust’s $300 million three year revolving credit facility.


Table of Contents

Federal Realty Investment Trust

Summary of Redevelopment Opportunities and Santana Row

September 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    $ 25.2

Santana Row Phase III

   San Jose, CA    Pad site (theater building)    10 %   $ 4.4    $ 2.6

Garden Market

   Western Springs, IL    Expansion, re-tenanting (new grocer) and new pad site (existing drug store)    10 %   $ 2.6    $ 2.6

Bethesda Row

   Bethesda, MD    New pad site (fitness equipment)    15 %   $ 0.8    $ 0.5

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

Laurel

   Laurel, MD    Grocer expansion    >20 %   $ 0.4    $ 0.4

Wildwood

   Bethesda, MD    Pad expansion and re-tenanting (bank)    >20 %   $ 0.4    $ 0.4

Lawrence Park

   Broomall, PA    Grocer expansion    10 %   $ 0.3    $ 0.3
              

 

  

Subtotal: Projects Anticipated to Stabilize in 2004 (3) (4)

        15 %   $ 36.8    $ 33.3
              

 

  

Projects Anticipated to Stabilize in 2005 (3)

                        

Houston Street

   San Antonio, TX    Retail and ground lease to Hotel Valencia    7 %   $ 11.5    $ 12.0

Bala Cynwyd

   Philadelphia, PA    Grocer re-location and expansion and re-tenanting (new health club)    >20 %   $ 5.7    $ 4.0

Andorra

   Philadelphia, PA    Re-tenanting (new health club)    12 %   $ 4.5    $ 2.4

Leesburg Plaza - Peebles

   Leesburg, VA    Re-tenanting (office supply & auto supply)    20 %   $ 2.7    $ 1.2

Pan Am

   Fairfax, VA    Grocer expansion, small shop re-tenanting and site improvements    6 %   $ 2.3    $ 0.8

Brick Plaza

   Brick, NJ    Re-tenanting (electronics)    9 %   $ 2.3    $ 1.6

Greenlawn Plaza

   Greenlawn, NY    Re-tenanting and new pad site (child care)    >20 %   $ 2.2    $ 2.0

Bristol Plaza

   Bristol, CT    Grocer relocation, canopy and façade renovation    10 %   $ 1.9    $ 0.1

Brunswick

   North Brunswick, NJ    Re-tenanting (new health club)    7 %   $ 1.5    $ 1.5

Rutgers Plaza

   Franklin, NJ    Grocer re-location and expansion and backfill of existing grocer space    20 %   $ 1.4    $ 0.0

Perring Plaza

   Baltimore, MD    Re-tenanting (sporting goods and small shops)    6 %   $ 1.3    $ 0.9

Hauppauge Shopping Center

   Hauppauge, NY    Pad site re-tenanting (restaurant)    16 %   $ 0.3    $ 0.1
              

 

  

Subtotal: Projects Anticipated to Stabilize in 2005 (3) (4)

        13 %   $ 37.6    $ 26.6
              

 

  

Total: Projects Anticipated to Stabilize in 2004 and 2005 (3) (4)

        14 %   $ 74.4    $ 59.9
              

 

  

 

Anticipated future redevelopments stabilizing after 2005 include Bethesda Row (final phase), Mercer Mall, Fresh Meadows, Mount Vernon/South Valley, Leesburg Plaza (Kmart), Hollywood Boulevard, 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 Sept 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 (8)


    Anticipated
Stabilization
(3)


Phase I – Retail, residential and Hotel Valencia(7)

   110    445,212    90 %   255    $ 1.67 - $2.96    98 %   $ 443    $ 435    5 %   2005

Phase II – Best Buy and The Container Store

   3    83,991    100 %   0      n/a    n/a     $ 27    $ 25    17 %   2004

Phase III – CineArts theater building & restaurant

   2    28,525    100 %   0      n/a    n/a     $ 4    $ 3    10 %   2004

Phase IV – Building 7 residential re-build

   —      —      n/a     256    $ 1.94 – 2.47    n/a     $ 58    $ 21    11 %   2006
    
  
  

 
         

 

  

  

   

Total

   115    557,728    92 %   511           98 %   $ 531    $ 484    6.2 %    

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 $2.03 per square foot per month and $2.28 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) Santana Row Phase I and Total Projected Cost and Cost to Date are net of $129 million of insurance proceeds, $11 million has been, or will be, recognized as income in 2003 and 2004.
(8) Calculated as stabilized Property Operating Income (POI) divided by cost.

 


Table of Contents

Federal Realty Investment Trust

2004 Acquisitions and Dispositions

Through September 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

Dispositions

                           

Date


  

Property


  

City / State


   GLA

   Sales price

     
                    (in thousands)      

June 3, 2004

   Village at Shirlington (land parcel)    Arlington, VA    n/a    $ 4,934      

June 14, 2004

   Magruder’s Center    Rockville, MD    109,000      14,350 (1)    

July 1, 2004

   Plaza del Mercado (contribution to joint venture)    Silver Spring, MD    96,000      20,578 (2)    

September 16, 2004

   Village at Shirlington (land parcels)    Arlington, VA    n/a      2,796 (3)    
              
  


   
     Total         205,000    $ 42,658      
              
  


   

Notes:

(1) On June 14, 2004 the Magruders Center was conveyed to the City of Rockville in lieu of condemnation in order to facilitate the redevelopment of Rockville Town Center.
(2) On July 1, 2004, we contributed Plaza del Mercado to a newly formed joint venture in which we own 30% of the equity.
(3) On September 16, 2004, we sold two unimproved parcels of land at the Village at Shirlington in conjunction with the redevelopment of the property.


Table of Contents

Federal Realty Investment Trust

Real Estate Status Report

September 30, 2004

 

                                         

Mortgage or

Capital Lease
Obligation


  

Grocery

Anchor
GLA (3)


        

Property Name


 

Type(1)


  

MSA Description


   Year
Acquired


   Total
Investment


    Ownership
Percentage


    GLA (2)

   % Leased

          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    80,743       (4)   440,000    98 %   12,576    40,000    Giant Food   Barnes &
Noble /
Landmark
Theater

Congressional Plaza

  SC    Washington, DC-MD-VA    1965    66,967 (5)   64.1 %   337,000    100 %        28,000    Whole Foods   Buy Buy Baby
/ Container
Store / Tower
Records

Courthouse Center

  SC    Washington, DC-MD-VA    1997    7,564       (6)   38,000    100 %                  

Falls Plaza

  SC    Washington, DC-MD-VA    1967    8,154     100.0 %   73,000    100 %        51,000    Giant Food    

Falls Plaza-East

  SC    Washington, DC-MD-VA    1972    3,333     100.0 %   71,000    96 %                 CVS / Staples

Federal Plaza

  SC    Washington, DC-MD-VA    1989    62,078     100.0 %   247,000    98 %   35,230             TJ Maxx /
CompUSA /
Ross

Friendship Center

  SR    Washington, DC-MD-VA    2001    33,314     100.0 %   119,000    100 %                 Borders /
Linens ‘n
Things /
Maggiano’s

Gaithersburg Square

  SC    Washington, DC-MD-VA    1993    23,947     100.0 %   215,000    90 %                 Bed, Bath &
Beyond /
Borders / Ross

Idylwood Plaza

  SC    Washington, DC-MD-VA    1994    15,023     100.0 %   73,000    100 %        30,000    Whole Foods    

Laurel

  SC    Washington, DC-MD-VA    1986    45,863     99.9 %   383,000    98 %        61,000    Giant Food   Marshalls /
Toys R Us

Leesburg Plaza

  SC    Washington, DC-MD-VA    1998    24,245       (6)   247,000    77 %   9,900    55,000    Giant Food   Pier One

Loehmann’s Plaza

  SC    Washington, DC-MD-VA    1983    45,540     100.0 %   250,000    100 %                 Bally’s /
Linens ‘n
Things /
Loehmann’s

Mid-Pike Plaza

  SC    Washington, DC-MD-VA    1982    17,210       (7)   304,000    100 %   10,041             Linens ‘n
Things / Toys
R Us / Bally’s
/ AC Moore

Mount Vernon

  SC    Washington, DC-MD-VA    2003    21,528       (6)   254,000    76 %   12,894    54,000    Shoppers Food
Warehouse
   

Old Keene Mill

  SC    Washington, DC-MD-VA    1976    5,158     100.0 %   92,000    100 %        24,000    Whole Foods    

Pan Am

  SC    Washington, DC-MD-VA    1993    25,542     100.0 %   218,000    99 %        33,000    Safeway   Micro Center /
Michaels

Pentagon Row

  SR    Washington, DC-MD-VA    1999    87,248     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    33,461     100.0 %   164,000    97 %                 Staples / TJ
Maxx / Tower
Records

Quince Orchard

  SC    Washington, DC-MD-VA    1993    19,759     100.0 %   252,000    100 %        24,000    Magruders   Circuit City /
Staples

Rockville Town Square

  SR    Washington, DC-MD-VA    N/A    2,584       (8)   N/A    N/A               Magruders
(signed)
   

Rollingwood Apartments

  SR    Washington, DC-MD-VA    1971    6,706     100.0 %   N/A    93 %                  

Sam’s Park & Shop

  SR    Washington, DC-MD-VA    1995    12,098     100.0 %   51,000    100 %                 Petco

South Valley

  SC    Washington, DC-MD-VA    2003    14,741       (6)   218,000    85 %                 Home Depot /
TJ Maxx

Tower

  SC    Washington, DC-MD-VA    1998    18,775     100.0 %   109,000    100 %                 Virginia Fine
Wine / Talbots

Tyson’s Station

  SC    Washington, DC-MD-VA    1978    3,356     100.0 %   50,000    100 %   6,664             Trader Joes

Village at Shirlington

  SR    Washington, DC-MD-VA    1995    33,533     100.0 %   204,000    98 %                 Cineplex
Odeon /
Carlyle Grand
Café

Wildwood

  SC    Washington, DC-MD-VA    1969    17,498     100.0 %   86,000    100 %   27,323    20,000    Balducci’s   CVS
                  

       
  

                 
                   735,968           4,791,000    96 %                  

Mid-Atlantic Region - Other

                                                       

Governor Plaza

  SC    Baltimore, MD    1985    18,876     99.9 %   269,000    80 %                 Bally’s /
Comp USA /
Office Depot

Perring Plaza

  SC    Baltimore, MD    1985    25,020     99.9 %   401,000    96 %        58,000    Shoppers Food
Warehouse
  Home Depot /
Burlington
Coat Factory /
Jo-Ann Stores

Barracks Road

  SC    Charlottesville, VA    1985    39,837     100.0 %   483,000    97 %   43,855    91,000    Harris Teeter /
Kroger
  Bed, Bath &
Beyond /
Barnes &
Noble / Old
Navy

Winter Park

  SR    Orlando, FL    1996    6,972     100.0 %   28,000    100 %                  

Eastgate

  SC    Raleigh-Durham-Chapel Hill, NC    1986    16,466     100.0 %   159,000    83 %        23,000    Earth Fare   Stein Mart

Shops at Willow Lawn

  SC    Richmond-Petersburg, VA    1983    61,093     99.9 %   488,000    71 %        60,000    Kroger   Old Navy /
Tower
Records /
Staples
                  

       
  

                 
                   168,264           1,828,000    86 %                  
         Total Mid-Atlantic Region         904,232           6,619,000    93 %                  

Northeast Region

                                                       

Philadelphia Metropolitan Area

                                                       

Andorra

  SC    Philadelphia, PA-NJ    1988    21,734     99.9 %   259,000    100 %        24,000    Acme Markets   Kohl’s /
Staples

Bala Cynwyd

  SC    Philadelphia, PA-NJ    1993    24,933     100.0 %   281,000    100 %        45,000    Acme Markets   Lord & Taylor

Ellisburg Circle

  SC    Philadelphia, PA-NJ    1992    28,946     100.0 %   268,000    100 %        47,000    Genuardi’s   Bed, Bath &
Beyond / Stein
Mart

Feasterville

  SC    Philadelphia, PA-NJ    1980    11,653     100.0 %   111,000    91 %        53,000    Genuardi’s   OfficeMax

Flourtown

  SC    Philadelphia, PA-NJ    1980    9,025     100.0 %   187,000    54 %        42,000    Genuardi’s    

Langhorne Square

  SC    Philadelphia, PA-NJ    1985    17,793     100.0 %   216,000    88 %        55,000    Redner’s
Warehouse
Mkts.
  Marshalls

Lawrence Park

  SC    Philadelphia, PA-NJ    1980    25,886     100.0 %   348,000    100 %   31,084    53,000    Acme Markets   CHI / TJ
Maxx / CVS

Northeast

  SC    Philadelphia, PA-NJ    1983    22,014     100.0 %   292,000    92 %                 Burlington
Coat /
Marshalls /
Tower
Records

Willow Grove

  SC    Philadelphia, PA-NJ    1984    26,308     100.0 %   215,000    100 %                 Barnes &
Noble /
Marshalls /
Toys R Us

Wynnewood

  SC    Philadelphia, PA-NJ    1996    35,292     100.0 %   255,000    99 %   31,678    98,000    Genuardi’s   Bed, Bath &
Beyond /
Borders / Old
Navy
                   223,584           2,432,000    94 %                  

New York / New Jersey

                                                       

Allwood

  SC    Bergen-Passaic, NJ    1988    4,295       (7)   52,000    100 %   3,492    25,000    Stop & Shop   Mandee Shop

Clifton

  SC    Bergen-Passaic, NJ    1988    5,034       (7)   80,000    66 %   3,247             Drug Fair /
Dollar Express

Blue Star

  SC    Middlesex-Somerset-Hunterdon, NJ    1988    39,561       (7)   407,000    97 %   26,651    43,000    Shop Rite   Kohl’s /
Michaels /
Toys R Us /
Marshalls

Brunswick

  SC    Middlesex-Somerset-Hunterdon, NJ    1988    24,010       (7)   303,000    97 %   11,095    55,000    A&P   A.J. Wright /
L.A. Fitness

Rutgers

  SC    Middlesex-Somerset-Hunterdon, NJ    1988    15,944       (7)   217,000    99 %   12,852    44,000    Stop & Shop   Kmart

Brick Plaza

  SC    Monmouth-Ocean, NJ    1989    55,202     100.0 %   409,000    95 %   32,636    66,000    A&P   Loews Theatre
/
Barnes&Noble
/ Sports
Authority

Greenlawn Plaza

  SC    Nassau-Suffolk, NY    2000    11,979     100.0 %   102,000    100 %        46,000    Waldbaum’s    

Hauppauge

  SC    Nassau-Suffolk, NY    1998    26,380     100.0 %   131,000    100 %   16,532    61,000    Shop Rite   AC Moore


Table of Contents

Federal Realty Investment Trust

Real Estate Status Report

September 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)              

Huntington

  SC    Nassau-
Suffolk,
NY
   1988    22,456    (7 )   279,000    100 %   14,258             Buy Buy
Baby / Toys
R Us / Bed,
Bath &
Beyond /
Barnes &
Noble

Forest Hills

  SR    New York,
NY
   1997    23,969    100.0 %   86,000    98 %                 Midway
Theatre /
Duane Reade
/ Gap

Fresh Meadows

  SC    New York,
NY
   1997    64,920    100.0 %   403,000    96 %             Pathmark
(signed)
  Value City /
Kohl’s /
Cineplex
Odeon

Troy

  SC    Newark,
NJ
   1980    20,606    100.0 %   202,000    99 %        64,000    Pathmark   AC Moore /
Comp USA /
Toys R Us

Hamilton

  SC    Trenton,
NJ
   1988    8,123    (7 )   190,000    100 %   4,814    53,000    Shop Rite   AC Moore /
Stevens
Furniture

Mercer Mall

  SC    Trenton,
NJ
   2003    86,169    (7 )   435,000    93 %   59,902    74,900    Shop Rite   Bed, Bath &
Beyond /
DSW / TJ
Maxx
                  
        
  

                 
                   408,648          3,296,000    96 %                  

New England

                                                      

Dedham Plaza

  SC    Boston-
Worcester-
Lawrence-
Lowell-
Brockton,
MA
   1993    29,961    100.0 %   243,000    98 %        80,000    Star Market   Pier One

Queen Anne Plaza

  SC    Boston-
Worcester-
Lawrence-
Lowell-
Brockton,
MA
   1994    14,803    100.0 %   149,000    100 %        50,000    Victory
Supermarket
  TJ Maxx

Saugus Plaza

  SC    Boston-
Worcester-
Lawrence-
Lowell-
Brockton,
MA
   1996    13,307    100.0 %   171,000    100 %        55,000    Super Stop
& Shop
  Kmart

Bristol Plaza

  SC    Hartford,
CT
   1995    22,127    100.0 %   277,000    96 %        57,000    Stop &
Shop
  TJ Maxx

West Hartford

  SR    Hartford,
CT
   1994-1996    8,051    100.0 %   62,000    89 %                  

Greenwich Avenue

  SR    New
Haven-
Bridgeport-
Stamford-
Waterbury
   1994-1996    15,993    100.0 %   42,000    100 %                 Saks Fifth
Avenue
                  
        
  

                 
                   104,242          944,000    98 %                  

Chicago

                                                      

Crossroads

  SC    Chicago,
IL
   1993    22,240    100.0 %   173,000    97 %                 Comp USA /
Golfsmith /
Guitar Center

Finley Square

  SC    Chicago,
IL
   1995    28,684    100.0 %   313,000    100 %                 Bed, Bath &
Beyond /
Sports
Authority

Garden Market

  SC    Chicago,
IL
   1994    11,121    100.0 %   140,000    100 %        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
                  
        
  

                 
                   78,297          767,000    98 %                  

Northeast Region - Other

                                                      

Gratiot Plaza

  SC    Detroit, MI    1973    17,461    100.0 %   218,000    100 %        69,000    Farmer
Jack’s
  Bed, Bath &
Beyond / Best
Buy / DSW

Lancaster

  SC    Lancaster,
PA
   1980    10,137    (7 )   107,000    97 %   4,907    39,000    Giant Food   Michaels
                  
        
  

                 
                   27,598          325,000    99 %                  
         Total
Northeast
Region
        842,369          7,764,000    96 %                  

West Region

                                                      

California

                                                      

Colorado Blvd

  SR    Los
Angeles-
Long
Beach, CA
   1996-1998    16,580    100 %   69,000    98 %                 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    24,729    90.0 %   150,000    78 %                 Hollywood
Entertainment
Museum

Third St Promenade

  SR    Los
Angeles-
Long
Beach, CA
   1996-2000    73,818    (9 )   209,000    99 %                 J. Crew /
Banana
Republic /
Old Navy /
Abercrombie
& Fitch

Escondido

  SC    San Diego,
CA
   1996    24,924    70.0 %   222,000    97 %                 Cost Plus / TJ
Maxx / Toys
R Us

Fifth Ave

  SR    San Diego,
CA
   1996-1997    12,335    (10 )   51,000    82 %                 Urban
Outfitters

150 Post Street

  SR    San
Francisco,
CA
   1997    32,344    100.0 %   102,000    61 %                 Brooks
Brothers

Kings Court

  SC    San Jose,
CA
   1998    11,410    (6 )   79,000    98 %        25,000    Lunardi’s
Super
Market
  Longs Drug
Store

Old Town Center

  SR    San Jose,
CA
   1997    33,712    100.0 %   95,000    96 %                 Borders / Gap
Kids / Banana
Republic

Westgate

  SC    San Jose,
CA
   2004    113,651    100.0 %   640,000    96 %        38,000    Safeway   Target /
Burlington
Coat Factory
/ Barnes &
Noble / Ross

Santana Row

  SR    San Jose,
CA
   1997    490,237    100.0 %   558,000    92 %                 Crate &
Barrel /
Container
Store / Best
Buy / Borders
/ CineArts
Theatre
                  
        
  

                 
                   838,462          2,198,000    92 %                  

West Region - Other

                                                      

Mill Avenue

  SR    Phoenix-
Mesa, AZ
   1998    11,195    (11 )   39,000    100 %                 Gordon
Biersch

Houston St

  SR    San
Antonio,
TX
   1998    63,645    100.0 %   171,000    82 %   200              
                  
        
  

                 
                   74,840          210,000    86 %                  
         Total West
Region
        913,302          2,408,000    92 %                  
                  
        
  

 
             

Total

                 2,659,903          16,791,000    94 %   411,831              

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) Currently under contract to acquire the retail square footage upon completion of development.
(9) Consists of nine properties, seven at 100% and two at 90%.
(10) Consists of four properties, three at 100% and one at 90%.
(11) Consists of two properties, one at 100% and one at 85%. On October 1, 2004 we acquired the remaining 15% interest on the one.


Table of Contents

Federal Realty Investment Trust

Shopping Center / Street Retail Summary

September 30, 2004

 

Shopping Center Summary

             

(in thousands, except square footage data)

             
     For the nine months ended
September 30,


     2004

   2003

Real Estate Assets, at cost

   $ 1,584,743    $ 1,328,345

Rental Income (1)

   $ 187,987    $ 169,491

Other Property Income

     7,248      6,530

Interest Income

     1,018      684
    

  

Total Revenues

     196,253      176,705

Rental Expense

     37,296      32,876

Real Estate Tax Expense

     21,238      19,081
    

  

Total Property Operating Expenses

     58,534      51,957
    

  

Property Operating Income (2)

   $ 137,719    $ 124,748
    

  

Square Feet (3)

     13,985,000      13,015,000

Street Retail Summary

             

(in thousands, except square footage data)

             
     For the nine months ended
September 30,


     2004

   2003

Real Estate Assets, at cost

   $ 1,075,161    $ 1,025,018

Rental Income (4)

   $ 83,988    $ 69,073

Other Property Income

     11,782      6,355

Interest Income

     3,716      3,391
    

  

Total Revenues

     99,486      78,819

Rental Expense

     29,871      26,491

Real Estate Tax Expense

     7,416      6,231
    

  

Total Property Operating Expenses

     37,287      32,722
    

  

Property Operating Income (2)

   $ 62,199    $ 46,097
    

  

Square Feet (3)

     2,806,000      2,765,000

Notes:

(1) Includes rent revenue from residential units of $1.6 million in 2004 and $0.6 million in 2003.
(2) All components of property operating income for the periods ended September 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 $7.7 million in 2004 and $5.4 million in 2003.


Table of Contents

Federal Realty Investment Trust

Retail Leasing Summary (1) - Comparable Basis

September 30, 2004

 

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.


3rd Quarter 2004

  42   55 %   183,428   $ 24.44   $ 19.56   $ 893,800   25 %   39 %   6.8   $ 190,135   $ 1.04

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
   
 

 
 

 

 

 

 

 
 

 

Total - 12 months

  166   54 %   630,250   $ 24.16   $ 21.21   $ 1,860,715   14 %   26 %   5.7   $ 837,059   $ 1.33
   
 

 
 

 

 

 

 

 
 

 

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.


3rd Quarter 2004

  35   45 %   225,497   $ 21.50   $ 17.99   $ 791,958   20 %   28 %   10.3   $ 5,302,465   $ 23.51

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
   
 

 
 

 

 

 

 

 
 

 

Total - 12 months

  140   46 %   883,851   $ 20.64   $ 17.27   $ 2,981,747   20 %   28 %   9.5   $ 15,452,119   $ 17.48
   
 

 
 

 

 

 

 

 
 

 

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.


3rd Quarter 2004

  77   100 %   408,925   $ 22.82   $ 18.69   $ 1,685,758   22 %   33 %   8.6   $ 5,492,600   $ 13.43

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
   
 

 
 

 

 

 

 

 
 

 

Total - 12 months

  306   100 %   1,514,101   $ 22.11   $ 18.91   $ 4,842,462   17 %   27 %   7.8   $ 16,289,178   $ 10.76
   
 

 
 

 

 

 

 

 
 

 


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.


Table of Contents

Federal Realty Investment Trust

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

September 30, 2004

 

Total Lease Summary - Non-Comparable (2)

 

Quarter


   Number of
Leases Signed


   GLA Signed

   Contractual
Rent (3)
Per Sq. Ft.


   Weighted
Average
Lease Term (4)


   Tenant
Improvements (5)


   Tenant
Improvements
Per Sq. Ft.


3rd Quarter 2004

   2    8,609    $ 58.41    10.0    $ —      $ —  

2nd Quarter 2004

   5    14,816    $ 29.23    7.8    $ 196,052    $ 13.23

1st Quarter 2004

   10    78,843    $ 24.69    13.7    $ 25,000    $ 0.32

4th Quarter 2003

   6    21,867    $ 36.64    8.9    $ 84,425    $ 3.86
    
  
  

  
  

  

Total - 12 months

   23    124,135    $ 29.68    11.4    $ 305,477    $ 2.46
    
  
  

  
  

  


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 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.


Table of Contents

Federal Realty Investment Trust

Lease Expirations

September 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

   58,000    1 %   $ 7.69    187,000    3 %   $ 21.12    245,000    2 %   $ 17.92

2005

   273,000    3 %   $ 13.43    750,000    11 %   $ 21.98    1,023,000    7 %   $ 19.70

2006

   461,000    5 %   $ 9.82    867,000    13 %   $ 24.38    1,328,000    9 %   $ 19.33

2007

   884,000    10 %   $ 8.47    978,000    15 %   $ 23.93    1,862,000    12 %   $ 16.59

2008

   746,000    9 %   $ 11.27    899,000    13 %   $ 22.90    1,645,000    11 %   $ 17.63

2009

   1,167,000    14 %   $ 11.02    874,000    13 %   $ 26.20    2,041,000    13 %   $ 17.52

2010

   454,000    5 %   $ 12.46    456,000    7 %   $ 23.75    910,000    6 %   $ 18.12

2011

   376,000    4 %   $ 18.32    461,000    7 %   $ 29.48    837,000    5 %   $ 24.47

2012

   540,000    6 %   $ 12.68    400,000    6 %   $ 33.75    940,000    6 %   $ 21.64

2013

   680,000    8 %   $ 14.55    259,000    4 %   $ 30.84    939,000    6 %   $ 19.04

Thereafter

   2,995,000    35 %   $ 14.86    579,000    9 %   $ 30.79    3,574,000    23 %   $ 17.44
    
  

 

  
  

 

  
  

 

Total (3)

   8,634,000    100 %   $ 12.88    6,710,000    100 %   $ 25.66    15,344,000    100 %   $ 18.47
    
  

 

  
  

 

  
  

 

 

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

   23,000    0 %   $ 19.43    149,000    2 %   $ 20.79    172,000    1 %   $ 20.61

2005

   19,000    0 %   $ 16.00    491,000    7 %   $ 23.66    509,000    3 %   $ 23.38

2006

   54,000    1 %   $ 12.34    502,000    7 %   $ 26.77    556,000    4 %   $ 25.37

2007

   155,000    2 %   $ 7.73    559,000    8 %   $ 23.99    714,000    5 %   $ 20.45

2008

   150,000    2 %   $ 11.88    551,000    8 %   $ 23.47    701,000    5 %   $ 20.99

2009

   244,000    3 %   $ 11.35    537,000    8 %   $ 27.73    782,000    5 %   $ 22.61

2010

   158,000    2 %   $ 13.42    387,000    6 %   $ 24.62    546,000    4 %   $ 21.37

2011

   114,000    1 %   $ 15.02    496,000    7 %   $ 23.75    610,000    4 %   $ 22.12

2012

   215,000    2 %   $ 13.35    431,000    6 %   $ 28.50    646,000    4 %   $ 23.47

2013

   256,000    3 %   $ 12.34    341,000    5 %   $ 24.63    597,000    4 %   $ 19.36

Thereafter

   7,246,000    84 %   $ 13.00    2,266,000    34 %   $ 26.84    9,511,000    62 %   $ 16.29
    
  

 

  
  

 

  
  

 

Total (3)

   8,634,000    100 %   $ 12.88    6,710,000    100 %   $ 25.66    15,344,000    100 %   $ 18.47
    
  

 

  
  

 

  
  

 


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


Table of Contents

Federal Realty Investment Trust

Portfolio Leasing Statistics

September 30, 2004

 

Overall Portfolio Statistics (1)

 

     At September 30, 2004

    At September 30, 2003

 

Type


   Size

   Leased

   Leased%

    Size

   Leased

   Leased%

 

Retail Properties (2):

   16,791,000    15,818,000    94.2 %   15,780,000    14,821,000    93.9 %

Residential Properties (3):

   683    636    93.1 %   683    623    91.2 %

Same Center Statistics (1)

 

                                
     At September 30, 2004

    At September 30, 2003

 

Type


   Size

   Leased

   Leased%

    Size

   Leased

   Leased%

 

Retail Properties (2)(4):

   12,277,000    11,852,000    96.5 %   12,262,000    11,851,000    96.7 %

Residential Properties (3):

   683    636    93.1 %   683    623    91.2 %

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 properties purchased, sold or under redevelopment.


Table of Contents

Federal Realty Investment Trust

Summary of Top 25 Tenants

September 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     2.30 %   472,000     2.81 %   8

2

   Gap, Inc.    $ 6,290,000     2.22 %   232,000     1.38 %   12

3

   Ahold USA, Inc.    $ 6,130,000     2.16 %   502,000     2.99 %   10

4

   Bed, Bath & Beyond, Inc.    $ 5,620,000     1.98 %   396,000     2.36 %   9

5

   Barnes & Noble, Inc.    $ 4,240,000     1.50 %   194,000     1.16 %   20

6

   TJX Companies    $ 3,960,000     1.40 %   454,000     2.70 %   14

7

   Best Buy Stores, L.P.    $ 3,480,000     1.23 %   101,000     0.60 %   3

8

   CVS Corporation    $ 3,460,000     1.22 %   142,000     0.85 %   13

9

   Wakefern Food Corporation    $ 3,080,000     1.09 %   232,000     1.38 %   4

10

   Borders Group, Inc.    $ 2,780,000     0.98 %   129,000     0.77 %   5

11

   Michaels Stores, Inc.    $ 2,480,000     0.88 %   165,000     0.98 %   8

12

   OPNET Technologies, Inc.    $ 2,480,000     0.88 %   60,000     0.36 %   1

13

   MTS, Inc.    $ 2,400,000     0.85 %   91,000     0.54 %   5

14

   Great Atlantic & Pacific Tea Co    $ 2,380,000     0.84 %   236,000     1.41 %   4

15

   CompUSA, Inc.    $ 2,370,000     0.84 %   134,000     0.80 %   5

16

   Retail Ventures, Inc.    $ 2,370,000     0.84 %   117,000     0.70 %   4

17

   Office Depot, Inc.    $ 2,270,000     0.80 %   149,000     0.89 %   6

18

   Home Depot, Inc.    $ 2,210,000     0.78 %   218,000     1.30 %   3

19

   The Container Store, Inc.    $ 2,190,000     0.77 %   52,000     0.31 %   2

20

   Dress Barn, Inc.    $ 2,120,000     0.75 %   109,000     0.65 %   15

21

   Toys R Us, Inc.    $ 2,080,000     0.73 %   259,000     1.54 %   7

22

   Dollar Tree Stores, Inc.    $ 2,060,000     0.73 %   162,000     0.96 %   16

23

   Bally’s Health & Tennis    $ 2,040,000     0.72 %   156,000     0.93 %   5

24

   Staples, Inc.    $ 2,000,000     0.71 %   106,000     0.63 %   6

25

   Kohl’s Corporation    $ 1,900,000     0.67 %   356,000     2.12 %   3
         


 

 

 

 
     Totals - Top 25 Tenants    $ 78,900,000     27.84 %   5,224,000     31.11 %   188
         


 

 

 

 
     Total Annualized Base Rent:    $ 283,400,000 (1)                      
     Total Portfolio Square Footage:                  16,791,000 (2)          

Note:

(1) Reflects annual in-place contractual rent as of September 30, 2004.
(2) Excludes redevelopment square footage not yet placed in service.


Table of Contents

Federal Realty Investment Trust

Reconciliation of Net Income to FFO Guidance

September 30, 2004

 

Reconciliation of 2004 Net Income to 2004 FFO Guidance

($ millions except per share amounts)

   Forecast

 

Net income

   $ 78     to    $ 79  

Gain on sale of real estate

     (9 )          (9 )

Depreciation and amortization of real estate assets

     83            83  

Amortization of initial direct costs of leases

     7            7  

Funds from Operations

     159            160  

Income attributable to operating partnership units

     2            2  

Dividends on preferred stock

     (11 )          (11 )
    


      


Funds from operations available for common shareholders(1)

     150     to      151  
    


      


Weighted Average Shares (diluted)

     52.9               
    


            

Funds from operations available for common shareholders per share

   $ 2.83     to    $ 2.84  
    


      


Reconciliation of 2005 Net Income to 2005 FFO Guidance

($ millions except per share amounts)

                     
     Forecast

 

Net income

   $ 75     to    $ 77  

Gain on sale of real estate

     —              —    

Depreciation and amortization of real estate assets

     86            86  

Amortization of initial direct costs of leases

     7            7  

Funds from Operations

     168            170  

Income attributable to operating partnership units

     2            2  

Dividends on preferred stock

     (11 )          (11 )
    


      


Funds from operations available for common shareholders(1)

     159     to      161  
    


      


Weighted Average Shares (diluted)

     53.1               
    


            

Funds from operations available for common shareholder per share

   $ 3.00     to    $ 3.03  
    


      


 

Note:

 

(1) Individual items may not add up to total as a result of rounding.


Table of Contents

Federal Realty Investment Trust

Summarized Operating Results - Joint Venture

September 30, 2004

 

Financial Highlights

(in thousands, except per share data)

(unaudited)

 

OPERATING RESULTS

 

     Three months ended
September 30, 2004


 

Revenues

        

Rental income

   $ 612  

Other property income

     1  
    


       613  

Expenses

        

Rental

     130  

Real estate taxes

     53  

Depreciation and amortization

     168  
    


       351  
    


Operating income

     262  

Interest expense

     (197 )
    


Net Income

     65  
    



Table of Contents

Federal Realty Investment Trust

Summarized Balance Sheet - Joint Venture

September 30, 2004

 

Financial Highlights

(in thousands, except per share data)

 

CONSOLIDATED BALANCE SHEETS

 

    

September 30,

2004


 
  
     (unaudited)  

ASSETS

        

Real estate, at cost

   $ 63,986  

Less accumulated depreciation and amortization

     (168 )
    


Net real estate investments

     63,818  

Cash and cash equivalents

     1,020  

Accounts receivable

     71  

Other assets

     2,036  
    


TOTAL ASSETS

   $ 66,945  
    


LIABILITIES AND PARTNERS’ CAPITAL

        

Liabilities

        

Mortgages

   $ 13,325  

Other liabilities

     6,692  
    


Total liabilities

     20,017  

Partners’ Capital

        

Capital - Clarion Lion Properties Fund

     32,850  

Capital - Federal Realty Investment Trust

     14,078  
    


Total partners’ capital

     46,928  
    


TOTAL LIABILITIES AND PARTNERS’ CAPITAL

   $ 66,945  
    



Table of Contents

Federal Realty Investment Trust

Summary of Outstanding Debt - Joint Venture

September 30, 2004

 

     Maturity

  

Interest Rate as of

September 30, 2004


    Balance

                (in thousands)

Mortgage Loans

                 

Secured Fixed Rate

                 

Plaza del Mercado

   07/05/14    5.770 %   $ 13,325
               

Total Fixed Rate Debt

              $ 13,325
               


Table of Contents

Federal Realty Investment Trust

2004 Acquisitions and Dispositions - Joint Venture

Through September 30, 2004

 

Acquisitions

 

Date


  

Property


  

City /State


   GLA

   Purchase price

  

Anchor tenants


                    (in thousands)     
July 1, 2004    Plaza del Mercado(1)    Silver Spring, MD    96,000    $ 20,578    Giant Food, CVS
September 20, 2004    Campus Plaza    Bridgewater, MA    121,000      17,725    Roche Brothers Supermarket, Burlington Coat Factory
September 20, 2004    Pleasant Shops    Weymouth, MA    128,000      20,275    Foodmaster Supermarket, Marshalls
              
  

    
     Total         345,000    $ 58,578     
              
  

    

Notes:

(1) On July 1, 2004, we contributed Plaza del Mercado to a newly formed joint venture in which we own 30% of the equity.


Table of Contents

Federal Realty Investment Trust

Real Estate Status Report - Joint Venture

September 30, 2004

 

Property Name


   MSA Description

   Year
Acquired


   Total
Investment


   GLA

   % Leased

    Mortgage or
Capital Lease
Obligation


  

Grocery

Anchor
GLA (1)


   Grocery Anchor (1)

   Other Principal Tenants

               (in thousands)               (in thousands)               

Mid-Atlantic Region

                                             

Washington Metropolitan Area

                                             

Plaza del Mercado

   Washington,
DC-MD-VA
   2004    20,728    96,000    96 %   13,325    25,000    Giant Food    CVS
                   
  

                  
                    96,000    96 %                   
     Total Mid-
Atlantic
Region
             96,000    96 %                   

Northeast Region

                                             

New England

                                             

Campus Plaza

   Boston-
Worcester-
Lawrence-
Lowell-
Brockton,
MA
   2004    20,847    121,000    95 %   0    46,000    Roche
Brothers
   Burlington
Coat
Factory

Pleasant Shops

   Boston-
Worcester-
Lawrence-
Lowell-
Brockton,
MA
   2004    22,411    128,000    100 %   0    38,000    Foodmaster    Marshalls
                   
  

                  
                    249,000    97 %                   
     Total
Northeast
Region
             249,000                          
              
  
  

 
              

Total

             63,986    345,000    97 %   13,325               

Notes:

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


Table of Contents

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 nine months ended September 30, 2004 and 2003 is as follows:

 

     For the Nine Months Ended
September 30,


 
     (in thousands)

 
     2004

    2003

 

Net income

   $ 62,238     $ 59,097  

Depreciation and amortization

     67,148       54,317  

Interest

     63,835       54,550  

(Gain) on sale of real estate

     (9,331 )     (7,723 )
    


 


EBITDA

   $ 183,890     $ 160,241  
    


 


 

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.