UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 30, 2008
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 July 30, 2008, 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, 2008. 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 information at June 30, 2008 (including press release dated July 30, 2008) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FEDERAL REALTY INVESTMENT TRUST | ||
| Date: July 30, 2008 |
/s/ Joseph M. Squeri | |
| Joseph M. Squeri | ||
| Executive Vice President, | ||
| Chief Financial Officer and Treasurer | ||
EXHIBIT INDEX
| Exh No. |
Exhibit | |
| 99.1 | Supplemental Information at June 30, 2008 |
Exhibit 99.1
FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
June 30, 2008
TABLE OF CONTENTS
| 1. | Second Quarter 2008 Earnings Press Release | 3 | ||
| 2. | Financial Highlights | |||
| Summarized Income Statements |
7 | |||
| Summarized Balance Sheets |
8 | |||
| Funds From Operations / Summary of Capital Expenditures |
9 | |||
| Market Data |
10 | |||
| Components of Rental Income |
11 | |||
| 3. | Summary of Debt | |||
| Summary of Outstanding Debt and Capital Lease Obligations |
12 | |||
| Summary of Debt Maturities |
13 | |||
| 4. | Summary of Redevelopment Opportunities | 14 | ||
| 5. | 2008 Significant Acquisitions and Dispositions | 15 | ||
| 6. | Real Estate Status Report | 16 | ||
| 7. | Retail Leasing Summary | 17 | ||
| 8. | Lease Expirations | 18 | ||
| 9. | Portfolio Leased Statistics | 19 | ||
| 10. | Summary of Top 25 Tenants | 20 | ||
| 11. | Reconciliation of Net Income to FFO Guidance | 21 | ||
| 12. | Joint Venture Disclosure | |||
| Summarized Income Statements and Balance Sheets |
23 | |||
| Summary of Outstanding Debt and Debt Maturities |
24 | |||
| Real Estate Status Report |
25 | |||
| 13. | Glossary of Terms | 26 | ||
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
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 Annual Report on Form 10-K filed on February 27, 2008, 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 completion of anticipated or ongoing property redevelopments or renovations may cost more, take more time to complete, or fail to perform as expected; |
| • | 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 environmental issues may develop at our properties and result in unanticipated costs, 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, filed with the Securities and Exchange Commission on February 27, 2008.
2
FOR IMMEDIATE RELEASE
| Investor and Media Inquiries | ||
| Andrew Blocher | Gina Birdsall | |
| Senior Vice President, | Investor Relations Coordinator | |
| Capital Markets and Investor Relations | 301/998-8265 | |
| 301/998-8166 | gbirdsall@federalrealty.com | |
| ablocher@federalrealty.com |
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2008 OPERATING RESULTS
ROCKVILLE, Md. (July 30, 2008) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its second quarter ended June 30, 2008.
| • | Funds from operations available for common shareholders (FFO) per diluted share was $0.96 and earnings per diluted share was $0.49 for second quarter 2008, compared to $0.91 and $0.47, respectively, for second quarter 2007. |
| • | FFO per diluted share was $1.89 and earnings per diluted common share was $1.00 for the six months ended June 30, 2008, versus $1.79 and $0.88, respectively, for the six months ended June 30, 2007. |
| • | Same-center property operating income for second quarter 2008 increased 4.1% including redevelopments and expansions, and 3.6% excluding redevelopments and expansions, over second quarter 2007. |
| • | Rent increases on lease rollovers of comparable retail space for second quarter 2008 were 25% on a cash-basis and 42% on a GAAP-basis. |
| • |
Federal Realty increased its common dividend for the 41st consecutive year from an annualized rate of $2.44 per share to $2.60 per share, a 6.6% increase. |
| • | Guidance for 2008 FFO per diluted share was narrowed to $3.89 to $3.92. |
Financial Results
In second quarter 2008, Federal Realty generated FFO of $56.7 million, or $0.96 per diluted share. This compares to FFO of $51.9 million, or $0.91 per diluted share in second quarter 2007. For the six months ended June 30, 2008, Federal Realty reported FFO of $112.1 million, or $1.89 per diluted share compared to FFO of $101.5 million, or $1.79 per diluted share, for the same six-month period in 2007.
3
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2008 OPERATING RESULTS
July 30, 2008
Page 2
Net income available for common shareholders was $28.8 million and earnings per diluted share was $0.49 for the quarter ended June 30, 2008 versus $26.6 million and $0.47, respectively, for second quarter 2007. Year-to-date, Federal Realty reported net income available for common shareholders of $58.7 million, or $1.00 per diluted share. This compares to net income available for common shareholders of $49.7 million, or $0.88 per diluted share, for the six months ended June 30, 2007.
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO and FFO per diluted share to net income is attached to this press release.
Portfolio Results
In second quarter 2008, same-center property operating income, including redevelopment and expansion properties, increased 4.1% over second quarter 2007. When redevelopment and expansion properties are excluded from same-center results, property operating income for second quarter 2008 increased 3.6% compared to second quarter 2007.
The Trust’s overall portfolio was 95.8% leased as of June 30, 2008, compared to 96.1% on June 30, 2007. Federal Realty’s same-center portfolio was 96.1% leased on June 30, 2008, compared to 96.3% on June 30, 2007.
During second quarter 2008, the Trust signed 90 leases for 253,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 239,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 25%. The average contractual rent on this comparable space for the first year of the new lease is $36.39 per square foot compared to the average contractual rent of $29.21 per square foot for the last year of the prior lease. The previous average contractual rent is calculated by including both the minimum rent and the percentage rent actually paid during the last year of the lease term for the re-leased space. On a GAAP basis (i.e., including the impact of straight-line rents), rent increases per square foot for comparable retail space averaged 42% for second quarter 2008. Federal Realty’s average contractual minimum rent for retail and commercial space in its portfolio is $21.06 per square foot.
“The performance of our portfolio reflects continued demand by tenants for high quality assets in our strong retail locations, despite the inevitable impact of these difficult economic conditions,” commented Donald C. Wood, president and chief executive officer of Federal Realty Investment Trust.
4
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2008 OPERATING RESULTS
July 30, 2008
Page 3
Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees increased the regular dividend on its common shares, declaring a regular quarterly cash dividend of $0.65 per share, resulting in an indicated annual rate of $2.60 per share, an increase of $0.16 annually or 6.6%. The regular common dividend will be payable on October 15, 2008, to common shareholders of record as of September 23, 2008. This increase represents the 41st consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector.
“We are pleased to be able to increase our common dividend for the 41st consecutive year, particularly given the current economic environment,” stated Andrew Blocher, senior vice president, capital markets and investor relations. “Our strong dividend record demonstrates the Trust's ability to withstand changing operating conditions over the long term.”
Guidance
Federal Realty narrowed its guidance range for 2008 FFO per diluted share to $3.89 to $3.92, and revised its 2008 earnings per diluted share guidance to a range of $2.08 to $2.11. The Trust’s 2008 guidance does not include any potential damages associated with two lawsuits that are described in detail in Note E (Commitments and Contingencies) of the Trust’s Form 10-Q.
Summary of Other Quarterly Activities and Recent Developments
| • | June 2, 2008 – Federal Realty acquired Del Mar Village, a 154,000 square foot grocery-anchored, neighborhood shopping center at the intersection of Palmetto Park Road and Powerline Road in Boca Raton, Florida. The acquisition of Del Mar Village reflects the Trust's strategy of acquiring assets in Palm Beach, Broward and Miami-Dade counties in South Florida – areas that possess dense populations, a high degree of affluence and significant barriers to entry. Federal Realty acquired the property from a private owner for $41.7 million in cash. |
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 July 31, 2008, at 11:00 a.m. Eastern Daylight Time. To participate, please call (866) 700-0161 five to ten minutes prior to the call’s start time and use the passcode FRT 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 through August 29, 2008, by dialing (888) 286-8010 and using the passcode 95318246.
5
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2008 OPERATING RESULTS
July 30, 2008
Page 4
About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 18.4 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.8% leased to national, regional, and local retailers as of June 30, 2008, with no single tenant accounting for more than approximately 2.7% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 41 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares 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 Annual Report on Form 10-K filed on February 27, 2008 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 completion of anticipated or ongoing property redevelopments or renovations may cost more, take more time to complete, or fail to perform as expected; |
| • | 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 environmental issues may develop at our properties and result in unanticipated costs, 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 may be 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 carefully review the risks and risk factors included in our Annual Report on Form 10-K filed February 27, 2008.
6
Federal Realty Investment Trust
Summarized Income Statements
June 30, 2008
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Revenue |
||||||||||||||||
| Rental income |
$ | 123,952 | $ | 115,281 | $ | 246,673 | $ | 227,045 | ||||||||
| Other property income |
4,624 | 2,546 | 8,010 | 4,916 | ||||||||||||
| Mortgage interest income |
1,118 | 1,127 | 2,234 | 2,257 | ||||||||||||
| Total revenue |
129,694 | 118,954 | 256,917 | 234,218 | ||||||||||||
| Expenses |
||||||||||||||||
| Rental expenses |
26,306 | 23,501 | 53,633 | 47,799 | ||||||||||||
| Real estate taxes |
14,346 | 11,215 | 26,909 | 21,783 | ||||||||||||
| General and administrative |
7,039 | 6,114 | 13,973 | 11,722 | ||||||||||||
| Depreciation and amortization |
27,795 | 25,493 | 53,195 | 50,405 | ||||||||||||
| Total operating expenses |
75,486 | 66,323 | 147,710 | 131,709 | ||||||||||||
| Operating income |
54,208 | 52,631 | 109,207 | 102,509 | ||||||||||||
| Other interest income |
209 | 207 | 550 | 432 | ||||||||||||
| Interest expense |
(24,476 | ) | (28,178 | ) | (48,829 | ) | (55,515 | ) | ||||||||
| Income from real estate partnership |
442 | 363 | 773 | 647 | ||||||||||||
| Income from continuing operations before minority interests |
30,383 | 25,023 | 61,701 | 48,073 | ||||||||||||
| Minority interests |
(1,409 | ) | (1,384 | ) | (2,741 | ) | (2,681 | ) | ||||||||
| Income from continuing operations |
28,974 | 23,639 | 58,960 | 45,392 | ||||||||||||
| Discontinued operations |
||||||||||||||||
| Income from discontinued operations |
— | 1,230 | — | 2,613 | ||||||||||||
| Gain on sale of real estate from discontinued operations |
— | 1,849 | — | 1,849 | ||||||||||||
| Results from discontinued operations |
— | 3,079 | — | 4,462 | ||||||||||||
| Net income |
28,974 | 26,718 | 58,960 | 49,854 | ||||||||||||
| Dividends on preferred stock |
(135 | ) | (135 | ) | (271 | ) | (171 | ) | ||||||||
| Net income available for common shareholders |
$ | 28,839 | $ | 26,583 | $ | 58,689 | $ | 49,683 | ||||||||
| EARNINGS PER COMMON SHARE, BASIC |
||||||||||||||||
| Continuing operations |
$ | 0.49 | $ | 0.42 | $ | 1.00 | $ | 0.81 | ||||||||
| Discontinued operations |
— | 0.05 | — | 0.08 | ||||||||||||
| $ | 0.49 | $ | 0.47 | $ | 1.00 | $ | 0.89 | |||||||||
| Weighted average number of common shares, basic |
58,636 | 56,168 | 58,570 | 55,797 | ||||||||||||
| EARNINGS PER COMMON SHARE, DILUTED |
||||||||||||||||
| Continuing operations |
$ | 0.49 | $ | 0.42 | $ | 1.00 | $ | 0.80 | ||||||||
| Discontinued operations |
— | 0.05 | — | 0.08 | ||||||||||||
| $ | 0.49 | $ | 0.47 | $ | 1.00 | $ | 0.88 | |||||||||
| Weighted average number of common shares, diluted |
58,934 | 56,591 | 58,872 | 56,258 | ||||||||||||
7
Federal Realty Investment Trust
Summarized Balance Sheets
June 30, 2008
| June 30, 2008 |
December 31, 2007 |
|||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Real estate, at cost |
||||||||
| Operating |
$ | 3,458,460 | $ | 3,304,922 | ||||
| Construction-in-progress |
110,929 | 147,925 | ||||||
| 3,569,389 | 3,452,847 | |||||||
| Less accumulated depreciation and amortization |
(801,752 | ) | (756,703 | ) | ||||
| Net real estate |
2,767,637 | 2,696,144 | ||||||
| Cash and cash equivalents |
20,281 | 50,691 | ||||||
| Accounts and notes receivable |
66,431 | 61,108 | ||||||
| Mortgage notes receivable |
40,488 | 40,638 | ||||||
| Investment in real estate partnership |
29,400 | 29,646 | ||||||
| Prepaid expenses and other assets |
102,310 | 111,070 | ||||||
| TOTAL ASSETS |
$ | 3,026,547 | $ | 2,989,297 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Liabilities |
||||||||
| Mortgages payable and capital lease obligations |
$ | 446,531 | $ | 450,084 | ||||
| Notes payable |
241,933 | 210,820 | ||||||
| Senior notes and debentures |
977,470 | 977,556 | ||||||
| Accounts payable and other liabilities |
217,332 | 204,387 | ||||||
| Total liabilities |
1,883,266 | 1,842,847 | ||||||
| Minority interests |
32,037 | 31,818 | ||||||
| Shareholders’ equity |
||||||||
| Preferred stock |
9,997 | 9,997 | ||||||
| Common shares and other shareholders’ equity |
1,101,247 | 1,104,635 | ||||||
| Total shareholders’ equity |
1,111,244 | 1,114,632 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 3,026,547 | $ | 2,989,297 | ||||
8
Federal Realty Investment Trust
Funds From Operations / Summary of Capital Expenditures
June 30, 2008
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Funds from Operations available for common shareholders (FFO) (1) |
||||||||||||||||
| Net income |
28,974 | 26,718 | $ | 58,960 | $ | 49,854 | ||||||||||
| Gain on sale of real estate |
— | (1,849 | ) | — | (1,849 | ) | ||||||||||
| Depreciation and amortization of real estate assets |
25,050 | 24,317 | 48,000 | 48,259 | ||||||||||||
| Amortization of initial direct costs of leases |
2,283 | 2,107 | 4,305 | 4,177 | ||||||||||||
| Depreciation of joint venture real estate assets |
331 | 323 | 661 | 591 | ||||||||||||
| Funds from operations |
56,638 | 51,616 | 111,926 | 101,032 | ||||||||||||
| Dividends on preferred stock |
(135 | ) | (135 | ) | (271 | ) | (171 | ) | ||||||||
| Income attributable to operating partnership units |
231 | 399 | 463 | 644 | ||||||||||||
| FFO |
$ | 56,734 | $ | 51,880 | $ | 112,118 | $ | 101,505 | ||||||||
| FFO per diluted share |
$ | 0.96 | $ | 0.91 | $ | 1.89 | $ | 1.79 | ||||||||
| Weighted average number of common shares, diluted |
59,311 | 57,149 | 59,251 | 56,750 | ||||||||||||
| Summary of Capital Expenditures |
||||||||||||||||
| Non-maintenance capital expenditures |
||||||||||||||||
| Development, redevelopment and expansions |
$ | 21,488 | $ | 31,727 | $ | 50,410 | $ | 51,712 | ||||||||
| Tenant improvements and incentives |
3,974 | 5,901 | 9,383 | 9,708 | ||||||||||||
| Total non-maintenance capital expenditures |
25,462 | 37,628 | 59,793 | 61,420 | ||||||||||||
| Maintenance capital expenditures |
2,819 | 2,010 | 5,355 | 3,755 | ||||||||||||
| Total capital expenditures |
$ | 28,281 | $ | 39,638 | $ | 65,148 | $ | 65,175 | ||||||||
| Dividends and Payout Ratios |
||||||||||||||||
| Regular common dividends declared |
$ | 35,931 | $ | 32,422 | $ | 71,782 | $ | 64,805 | ||||||||
| Dividend payout ratio as a percentage of FFO |
63 | % | 62 | % | 64 | % | 64 | % | ||||||||
Notes:
| (1) | See Glossary of Terms. |
9
Federal Realty Investment Trust
Market Data
June 30, 2008
| June 30, | ||||||||
| 2008 | 2007 | |||||||
| (in thousands, except per share data) | ||||||||
| Market data |
||||||||
| Common shares outstanding (1) |
58,904 | 56,387 | ||||||
| Market price per common share |
$ | 69.00 | $ | 77.26 | ||||
| Common equity market capitalization |
$ | 4,064,376 | $ | 4,356,460 | ||||
| Series 1 preferred shares outstanding (2) |
400 | 400 | ||||||
| Liquidation price per Series 1 preferred share |
$ | 25.00 | $ | 25.00 | ||||
| Series 1 preferred equity market capitalization |
$ | 10,000 | $ | 10,000 | ||||
| Equity market capitalization |
$ | 4,074,376 | $ | 4,366,460 | ||||
| Total debt (3) |
1,665,934 | 1,813,475 | ||||||
| Total market capitalization |
$ | 5,740,310 | $ | 6,179,935 | ||||
| Total debt to market capitalization at then current market price |
29 | % | 29 | % | ||||
| Total debt to market capitalization at constant common share price of $77.26 |
27 | % | 29 | % | ||||
| Fixed rate debt ratio: |
||||||||
| Fixed rate debt and capital lease obligations (4) |
98 | % | 91 | % | ||||
| Variable rate debt |
2 | % | 9 | % | ||||
| 100 | % | 100 | % | |||||
Notes:
| (1) | Consists of 60,392,445 shares issued net of 1,488,310 shares held in Treasury as of June 30, 2008. As of June 30, 2007, consists of 57,873,340 shares issued net of 1,486,803 shares held in Treasury. Amounts do not include 376,260 and 557,694 Operating Partnership Units outstanding at June 30, 2008 and 2007, respectively. |
| (2) | These shares, issued March 8, 2007, are unregistered. |
| (3) | Total debt includes capital leases, mortgages payable, notes payable, senior notes and debentures, net of premiums and discounts from our consolidated balance sheet. It does not include the $24.4 million which is the Trust’s 30% share of the total $81.5 million debt of the partnership with Clarion Lion Properties Fund. |
| (4) | On February 21, 2008, we entered into two interest rate swap agreements to fix the variable portion of our $200 million term note through November 6, 2008. The first swap fixed the variable rate at 2.725% on a notional amount of $100 million and the second swap fixed the variable rate at 2.852% on a notional amount of $100 million for a combined fixed rate of 2.789%. As the interest rate on the term loan was effectively fixed by the two swap agreements, the $200 million term loan is included in fixed rate debt. |
10
Federal Realty Investment Trust
Components of Rental Income
June 30, 2008
| Three months ended June 30, |
Six months ended June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| (in thousands) | (in thousands) | |||||||||||
| Minimum rents |
||||||||||||
| Retail and commercial (1) |
$ | 91,759 | $ | 87,378 | $ | 182,046 | $ | 170,295 | ||||
| Residential (2) |
4,112 | 3,733 | 8,125 | 7,342 | ||||||||
| Cost reimbursements |
24,980 | 21,077 | 49,724 | 43,102 | ||||||||
| Percentage rents |
1,761 | 1,644 | 4,139 | 3,567 | ||||||||
| Other rental income |
1,340 | 1,449 | 2,639 | 2,739 | ||||||||
| Total rental income |
$ | 123,952 | $ | 115,281 | $ | 246,673 | $ | 227,045 | ||||
Notes:
| (1) | Minimum rents include $1.4 million and $2.7 million for the three months ended June 30, 2008 and 2007, respectively, and $3.0 million and $4.4 million for the six months ended June 30, 2008 and 2007, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.7 million and $0.4 million for the three months ended June 30, 2008 and 2007, respectively, and $1.3 million for each of the six months ended June 30, 2008 and 2007, to recognize income from the amortization of in-place leases in accordance with SFAS No. 141. |
| (2) | Residential minimum rents consist of the rental amounts for residential units at Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row, and for 2008, Arlington East (Bethesda Row). The first rental units at Arlington East were delivered and became rent paying in late May 2008. Lease-up of these rental units will continue through 2008. |
11
Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
June 30, 2008
| Maturity date | Stated interest rate as of June 30, 2008 |
Balance as of June 30, 2008 |
Weighted average effective rate at June 30, 2008 (j) |
||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Mortgage loans (a) |
|||||||||||||||||||||
| Secured fixed rate |
|||||||||||||||||||||
| Leesburg Plaza |
10/01/08 | 6.510 | % | (b | ) | $ | 9,564 | ||||||||||||||
| 164 E. Houston Street |
10/06/08 | 7.500 | % | 19 | |||||||||||||||||
| White Marsh Other |
12/31/08 | 6.060 | % | 1,131 | |||||||||||||||||
| Mercer Mall |
04/01/09 | 8.375 | % | 4,409 | |||||||||||||||||
| Federal Plaza |
06/01/11 | 6.750 | % | 33,400 | |||||||||||||||||
| Tysons Station |
09/01/11 | 7.400 | % | 6,138 | |||||||||||||||||
| White Marsh Plaza |
04/01/13 | 6.040 | % | (c | ) | 10,248 | |||||||||||||||
| Crow Canyon |
08/11/13 | 5.400 | % | 21,404 | |||||||||||||||||
| Melville Mall |
09/01/14 | 5.250 | % | (d | ) | 24,780 | |||||||||||||||
| THE AVENUE at White Marsh |
01/01/15 | 5.460 | % | 60,533 | |||||||||||||||||
| Barracks Road |
11/01/15 | 7.950 | % | 41,712 | |||||||||||||||||
| Hauppauge |
11/01/15 | 7.950 | % | 15,724 | |||||||||||||||||
| Lawrence Park |
11/01/15 | 7.950 | % | 29,565 | |||||||||||||||||
| Wildwood |
11/01/15 | 7.950 | % | 25,987 | |||||||||||||||||
| Wynnewood |
11/01/15 | 7.950 | % | 30,130 | |||||||||||||||||
| Brick Plaza |
11/01/15 | 7.415 | % | 30,907 | |||||||||||||||||
| Shoppers’ World |
01/31/21 | 5.910 | % | 5,918 | |||||||||||||||||
| Mount Vernon |
04/15/28 | 5.660 | % | (e | ) | 11,803 | |||||||||||||||
| Chelsea |
01/15/31 | 5.360 | % | 8,182 | |||||||||||||||||
| Subtotal |
371,554 | ||||||||||||||||||||
| Net unamortized discount |
(612 | ) | |||||||||||||||||||
| Total mortgage loans |
370,942 | 6.90 | % | ||||||||||||||||||
| Notes payable |
|||||||||||||||||||||
| Unsecured fixed rate |
|||||||||||||||||||||
| Term note |
11/06/09 | LIBOR + 0.575 | % | (f | ) | 200,000 | |||||||||||||||
| Other |
04/01/12 | 6.500 | % | 2,223 | |||||||||||||||||
| Perring Plaza renovation |
01/31/13 | 10.000 | % | 1,310 | |||||||||||||||||
| Unsecured variable rate |
|||||||||||||||||||||
| Revolving credit facility |
07/27/10 | LIBOR + 0.425 | % | (g | ) | 29,000 | |||||||||||||||
| Escondido (Municipal bonds) |
10/01/16 | 2.125 | % | (h | ) | 9,400 | |||||||||||||||
| Total notes payable |
241,933 | 3.73 | % | (k | ) | ||||||||||||||||
| Senior notes and debentures |
|||||||||||||||||||||
| Unsecured fixed rate |
|||||||||||||||||||||
| 8.75% notes |
12/01/09 | 8.750 | % | 175,000 | |||||||||||||||||
| 4.50% notes |
02/15/11 | 4.500 | % | 75,000 | |||||||||||||||||
| 6.00% notes |
07/15/12 | 6.000 | % | 175,000 | |||||||||||||||||
| 5.40% notes |
12/01/13 | 5.400 | % | 135,000 | |||||||||||||||||
| 5.65% notes |
06/01/16 | 5.650 | % | 125,000 | |||||||||||||||||
| 6.20% notes |
01/15/17 | 6.200 | % | 200,000 | |||||||||||||||||
| 7.48% debentures |
08/15/26 | 7.480 | % | (i | ) | 50,000 | |||||||||||||||
| 6.82% medium term notes |
08/01/27 | 6.820 | % | 40,000 | |||||||||||||||||
| Subtotal |
975,000 | ||||||||||||||||||||
| Net unamortized premium |
2,470 | ||||||||||||||||||||
| Total senior notes and debentures |
977,470 | 6.44 | % | ||||||||||||||||||
| Capital lease obligations |
|||||||||||||||||||||
| Various |
Various through 2106 | Various | 75,589 | 7.44 | % | ||||||||||||||||
| Total debt and capital lease obligations |
$ | 1,665,934 | |||||||||||||||||||
| Total fixed rate debt and capital lease obligations |
$ | 1,627,534 | 98 | % | 6.25 | % | |||||||||||||||
| Total variable rate debt |
38,400 | 2 | % | 3.78 | % | (k | ) | ||||||||||||||
| TOTAL DEBT AND CAPITAL LEASES OBLIGATIONS |
$ | 1,665,934 | 100 | % | 6.20 | % | |||||||||||||||
| Three months ended June 30, |
Six months ended June 30, | |||||||
| 2008 | 2007 | 2008 | 2007 | |||||
| Operational Statistics |
||||||||
| Ratio of EBITDA to combined fixed charges and preferred share dividends (l) |
3.04x | 2.55x | 3.00x | 2.50x | ||||
| Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (l) |
3.04x | 2.49x | 3.00x | 2.48x | ||||
Notes:
| (a) | Mortgage loans do not include our 30% share ($24.4 million) of the $81.5 million debt of the partnership with Clarion Lion Properties Fund. |
| (b) | This mortgage loan and accrued interest were paid off on July 1, 2008. |
| (c) | The interest rate of 6.04% represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents an interest-only loan of $4.35 million at a stated rate of 6.18% and the remaining balance at a stated rate of 5.96%. |
| (d) | We acquired control of Melville Mall through a 20-year master lease and secondary financing. Because we control this property and retain substantially all of the economic benefit and risk associated with it, this property is consolidated and the mortgage loan is reflected on the balance sheet though it is not our legal obligation. |
| (e) | The interest rate is fixed at 5.66% for the first ten years and then will be reset to a market rate in 2013. The lender has the option to call the loan on April 15, 2013 or anytime thereafter. |
| (f) | In July 2008, we exercised our option and extended the maturity date from November 6, 2008 to November 6, 2009. On February 21, 2008, we entered into two interest rate swap agreements to fix the variable portion of this debt through November 6, 2008. The first swap fixed the variable rate at 2.725% on a notional amount of $100 million and the second swap fixed the variable rate at 2.852% on a notional amount of $100 million for a combined fixed rate of 2.789%. The weighted average effective rate, before amortization of debt fees, was 3.41% and 3.81% for the three and six months ended June 30, 2008, respectively. |
| (g) | The weighted average effective interest rate, before amortization of debt fees, was 2.98% and 3.04% for the three and six months ended June 30, 2008, respectively. This credit facility is subject to a one-year extension at our option. |
| (h) | The bonds bear interest at a variable rate determined weekly which would enable the bonds to be remarketed at 100% of their principal amount. |
| (i) | On August 15, 2008, the debentures are redeemable by the holders thereof at the original purchase price of $1,000 per debenture. On June 16, 2008, we received notice that one of the holders will redeem $20.8 million on August 15, 2008. The notice period for additional redemptions has expired. |
| (j) | The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable. |
| (k) | The weighted average effective interest rate excludes $0.5 million in quarterly amortization of deferred financing fees on our revolving credit facility which had a $29.0 million balance on June 30, 2008. |
| (l) | Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount or premium and expense and the portion of rent expense representing an interest factor. Adjusted EBITDA is reconciled to net income in the Glossary of Terms. |
12
Federal Realty Investment Trust
Summary of Debt Maturities
June 30, 2008
DEBT MATURITIES
(in thousands)
| Year |
Scheduled Amortization |
Maturities | Total | Percent of Debt Maturing |
Cumulative Percent of Debt Maturing |
|||||||||||||
| 2008 |
$ | 3,767 | $ | 31,451 | $ | 35,218 | (1 | ) | 2.1 | % | 2.1 | % | ||||||
| 2009 |
9,240 | 379,349 | 388,589 | (2 | ) | 23.3 | % | 25.4 | % | |||||||||
| 2010 |
9,510 | 29,000 | 38,510 | (3 | ) | 2.3 | % | 27.7 | % | |||||||||
| 2011 |
9,513 | 112,252 | 121,765 | 7.3 | % | 35.0 | % | |||||||||||
| 2012 |
9,688 | 175,000 | 184,688 | 11.1 | % | 46.1 | % | |||||||||||
| 2013 |
9,202 | 163,045 | 172,247 | 10.4 | % | 56.5 | % | |||||||||||
| 2014 |
9,164 | 20,127 | 29,291 | 1.8 | % | 58.3 | % | |||||||||||
| 2015 |
6,924 | 198,391 | 205,315 | 12.3 | % | 70.6 | % | |||||||||||
| 2016 |
2,976 | 134,400 | 137,376 | 8.3 | % | 78.9 | % | |||||||||||
| 2017 |
3,184 | 200,000 | 203,184 | 12.2 | % | 91.1 | % | |||||||||||
| Thereafter |
75,017 | 72,876 | 147,893 | 8.9 | % | 100.0 | % | |||||||||||
| Total |
$ | 148,185 | $ | 1,515,891 | $ | 1,664,076 | (4 | ) | 100.0 | % | ||||||||
Notes:
| (1) | Includes $20.8 million of unsecured debt that was put to us by one of the holders and is due on August 15, 2008. |
| (2) | Includes $200 million outstanding on our term note. In July 2008, we exercised the extension option on the term note such that the maturity date is now November 6, 2009. |
| (3) | Our $300 million four-year revolving credit facility is subject to a one-year extension at our option. As of June 30, 2008, there was $29.0 million drawn under this credit facility. |
| (4) | The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net discount or premium on certain mortgage loans, senior notes and debentures as of June 30, 2008. |
13
Federal Realty Investment Trust
Summary of Redevelopment Opportunities
June 30, 2008
| Current Redevelopment Opportunities (1) ($ millions) | |||||||||||||||
| Property |
Location |
Opportunity |
Projected |
Projected |
Cost | ||||||||||
| Projects Anticipated to Stabilize in 2008 (3) |
|||||||||||||||
| Arlington East |
Bethesda, MD | Ground floor retail, four levels of residential units above retail, two levels of below grade parking | 9 | % | $ | 83 | $ | 73 | |||||||
| Eastgate |
Chapel Hill, NC | Center redevelopment including new grocery anchor, façade renovation and site improvements | 10 | % | $ | 10 | $ | 7 | |||||||
| Subtotal: Projects Anticipated to Stabilize in 2008 (3) (4) |
9 | % | $ | 93 | $ | 80 | |||||||||
| Projects Anticipated to Stabilize in 2009 (3) (5) |
|||||||||||||||
| Santana Row |
San Jose, CA | 5-story building with 15,000 square feet of ground level retail and 65,000 square feet of office space | 9 | % | $ | 42 | $ | 3 | |||||||
| Hollywood Galaxy Building |
Hollywood, CA | Re-tenanting three level entertainment center and converting project into urban neighborhood community center | 12 | % | $ | 16 | $ | 13 | |||||||
| Houston Street |
San Antonio, TX | Construction of a new building with ground level leased to Walgreen’s pharmacy and office above | 10 | % | $ | 8 | $ | 2 | |||||||
| Village of Shirlington—Phase III & IV |
Arlington, VA | Ground lease to hotel operator and ground floor retail as part of office building development (by others) | 16 | % | $ | 7 | $ | <1 | |||||||
| Subtotal: Projects Anticipated to Stabilize in 2009 (3) (4) (5) |
10 | % | $ | 73 | $ | 18 | |||||||||
| Total: Projects Anticipated to Stabilize in 2008 and 2009 (3) (4) |
10 | % | $ | 166 | $ | 98 | |||||||||
|
| |||||||||||||||
| Potential future redevelopment pipeline includes (6): | |||||||||||||||
| Property |
Location |
Opportunity |
|||||||||||||
| Assembly Square |
Sommerville, MA | Potential substantial transit oriented mixed-use development | |||||||||||||
| Bala Cynwyd |
Bala Cynwyd, PA | Redevelopment of nine acres of land for a transit oriented mixed-use project or retail center | |||||||||||||
| Barracks Road |
Charlottesville, VA | Anchor re-tenanting, pad re-tenanting, and site improvements | |||||||||||||
| Brick Plaza |
Brick, NJ | Redevelopment and expansion of existing pad site | |||||||||||||
| Bethesda Row |
Bethesda, MD | Anchor re-tenanting and modifications of building on Hampden Lane | |||||||||||||
| Courthouse Center |
Rockville, MD | Center redevelopment adjacent to Rockville Town Square | |||||||||||||
| Flourtown |
Flourtown, PA | Anchor re-tenanting, small shop demolition, new retail building, façade renovation, and site improvements | |||||||||||||
| Hollywood Peterson Building |
Hollywood, CA | Co-terminus leases create potential for property redevelopment and expansion | |||||||||||||
| Lancaster |
Lancaster, PA | Renovation and expansion of existing grocer, new bank pad, and façade renovation | |||||||||||||
| Linden Square |
Wellesley, MA | Additional phases of infill redevelopment | |||||||||||||
| Mercer Mall |
Lawrenceville, NJ | Construction of new outparcel | |||||||||||||
| Mid-Pike Plaza |
Rockville, MD | Co-terminus leases create potential for retail redevelopment or transit oriented mixed-use development | |||||||||||||
| Pike 7 |
Vienna, VA | Co-terminus leases create potential for retail redevelopment or mixed-use development | |||||||||||||
| Santana Row |
San Jose, CA | Future phases of mixed-use development | |||||||||||||
| Town Center of New Britain |
New Britain, PA | Renovation and expansion of existing grocer | |||||||||||||
| Westgate |
San Jose, CA | Center redevelopment | |||||||||||||
Notes:
| (1) | These current redevelopment opportunities are being pursued by the Trust. There is no guaranty that the Trust will ultimately complete any or all of these 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 being paid for the redevelopment space and any other space taken out of service to accommodate 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) | Stabilization is the year in which 95% occupancy of the redeveloped space is achieved. |
| (4) | All subtotals and totals reflect cost weighted-average ROIs. |
| (5) | Excludes $55 million of development capital at Linden Square, anticipated at acquisition of this in-process development. |
| (6) | 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. |
14
Federal Realty Investment Trust
2008 Significant Acquisitions and Dispositions
Through June 30, 2008
Federal Realty Investment Trust Acquisitions
| Date |
Property |
City / State |
GLA | Purchase price | Anchor tenants | ||||||
| (in square feet) | (in millions) | ||||||||||
| May 30, 2008 | Del Mar Village | Boca Raton, FL | 154,000 | $ | 41.7 | Winn Dixie, CVS & Sweet Tomatoes | |||||
Federal Realty Investment Trust Dispositions
| Date |
Property | City / State | GLA | Sales price | ||||
| None |
15
Federal Realty Investment Trust
Real Estate Status Report
June 30, 2008
| Property Name |
MSA Description |
Year Acquired |
Real Estate at Cost |
Mortgage or Capital Lease Obligation (1) |
GLA (2) | % Leased |
Grocery Anchor GLA (3) |
Grocery Anchor (3) |
Other Principal Tenants | |||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||
| East Region |
||||||||||||||||||||||||
| Washington Metropolitan Area |
||||||||||||||||||||||||
| Bethesda Row |
(4 | ) | Washington, DC-MD-VA | 1993-2006 | $ | 168,859 | $ | 12,576 | 521,000 | 92 | % | 40,000 | Giant Food | Barnes & Noble /Landmark Theater | ||||||||||
| Congressional Plaza |
(5 | ) | Washington, DC-MD-VA | 1965 | 69,326 | 335,000 | 96 | % | 28,000 | Whole Foods | Buy Buy Baby / Container Store | |||||||||||||
| Courthouse Center |
Washington, DC-MD-VA | 1997 | 4,347 | 37,000 | 81 | % | ||||||||||||||||||
| Falls Plaza/Falls Plaza-East |
Washington, DC-MD-VA | 1967-1972 | 11,921 | 144,000 | 98 | % | 51,000 | Giant Food | CVS / Staples | |||||||||||||||
| Federal Plaza |
Washington, DC-MD-VA | 1989 | 62,127 | 33,400 | 248,000 | 99 | % | TJ Maxx / Micro Center / Ross | ||||||||||||||||
| Friendship Center |
Washington, DC-MD-VA | 2001 | 33,341 | 119,000 | 100 | % | Borders / Linens ‘n Things / Maggiano’s | |||||||||||||||||
| Gaithersburg Square |
Washington, DC-MD-VA | 1993 | 23,830 | 209,000 | 94 | % | Bed, Bath & Beyond / Borders / Ross | |||||||||||||||||
| Idylwood Plaza |
Washington, DC-MD-VA | 1994 | 15,547 | 73,000 | 100 | % | 30,000 | Whole Foods | ||||||||||||||||
| Laurel |
Washington, DC-MD-VA | 1986 | 47,604 | 386,000 | 99 | % | 61,000 | Giant Food | Marshalls | |||||||||||||||
| Leesburg Plaza |
(6 | ) | Washington, DC-MD-VA | 1998 | 33,944 | 9,564 | 236,000 | 99 | % | 55,000 | Giant Food | Petsmart / Pier One / Office Depot | ||||||||||||
| Loehmann’s Plaza |
Washington, DC-MD-VA | 1983 | 31,036 | 269,000 | 94 | % | 58,000 | Giant Food | Bally Total Fitness / Loehmann’s | |||||||||||||||
| Mid-Pike Plaza |
Washington, DC-MD-VA | 1982 | 44,012 | 309,000 | 100 | % | Linens ‘n Things / Toys R Us / Bally Total Fitness / AC Moore / Filene’s Basement | |||||||||||||||||
| Mount Vernon/South Valley/ 7770 Richmond Hwy |
(6 | ) | Washington, DC-MD-VA | 2003-2006 | 76,869 | 11,803 | 565,000 | 95 | % | 62,000 | Shoppers Food Warehouse |
Bed, Bath & Beyond / Michaels / HomeDepot / TJ Maxx / Gold’s Gym | ||||||||||||
| Old Keene Mill |
Washington, DC-MD-VA | 1976 | 5,716 | 92,000 | 99 | % | 24,000 | Whole Foods | ||||||||||||||||
| Pan Am |
Washington, DC-MD-VA | 1993 | 28,042 | 227,000 | 100 | % | 63,000 | Safeway | Micro Center / Michaels | |||||||||||||||
| Pentagon Row |
Washington, DC-MD-VA | 1999 | 87,750 | 296,000 | 99 | % | 45,000 | Harris Teeter | Bally Total Fitness / Bed, Bath & Beyond / DSW / Cost Plus | |||||||||||||||
| Pike 7 |
Washington, DC-MD-VA | 1997 | 34,824 | 164,000 | 100 | % | DSW / Staples / TJ Maxx | |||||||||||||||||
| Quince Orchard |
Washington, DC-MD-VA | 1993 | 20,900 | 253,000 | 82 | % | 24,000 | Magruders | Circuit City / Staples | |||||||||||||||
| Rockville Town Square |
Washington, DC-MD-VA | 2006-2007 | 36,399 | 182,000 | 99 | % | CVS / Gold’s Gym | |||||||||||||||||
| Rollingwood Apartments |
Washington, DC-MD-VA | 1971 | 7,126 | N/A | 95 | % | ||||||||||||||||||
| Sam’s Park & Shop |
Washington, DC-MD-VA | 1995 | 12,122 | 49,000 | 89 | % | Petco | |||||||||||||||||
| Tower |
Washington, DC-MD-VA | 1998 | 19,717 | 112,000 | 69 | % | Talbots | |||||||||||||||||
| Tyson’s Station |
Washington, DC-MD-VA | 1978 | 3,550 | 6,138 | 49,000 | 100 | % | Trader Joes | ||||||||||||||||
| Village at Shirlington |
(4 | ) | Washington, DC-MD-VA | 1995 | 46,724 | 6,244 | 245,000 | 98 | % | 28,000 | Harris Teeter | AMC Loews / Carlyle Grand Café | ||||||||||||
| Wildwood |
Washington, DC-MD-VA | 1969 | 17,680 | 25,987 | 84,000 | 100 | % | 20,000 | Balducci’s | CVS | ||||||||||||||
| Total Washington Metropolitan Area | 943,313 | 5,204,000 | 96 | % | ||||||||||||||||||||
| New York / New Jersey |
||||||||||||||||||||||||
| Brick Plaza |
Monmouth-Ocean, NJ | 1989 | 56,162 | 30,907 | 409,000 | 100 | % | 66,000 | A&P | AMC Loews / Barnes & Noble / Sports Authority | ||||||||||||||
| Forest Hills |
New York, NY | 1997 | 8,090 | 46,000 | 100 | % | Midway Theatre | |||||||||||||||||
| Fresh Meadows |
New York, NY | 1997 | 68,651 | 403,000 | 94 | % | 15,000 | Island of Gold | Filene’s Basement / Kohl’s / AMC Loews | |||||||||||||||
| Hauppauge |
Nassau-Suffolk, NY | 1998 | 27,554 | 15,724 | 133,000 | 98 | % | 61,000 | Shop Rite | AC Moore | ||||||||||||||
| Huntington |
Nassau-Suffolk, NY | 1988 | 37,935 | 279,000 | 100 | % | Buy Buy Baby /Toys R Us / Bed, Bath & Beyond / Barnes & Noble | |||||||||||||||||
| Melville Mall |
(7 | ) | Nassau-Suffolk, NY | 2006 | 68,532 | 24,780 | 248,000 | 100 | % | 54,000 | Waldbaum’s | Kohl’s / Marshalls | ||||||||||||
| Mercer Mall |
(4 | ) | Trenton, NJ | 2003 | 104,323 | 56,271 | 501,000 | 99 | % | 75,000 | Shop Rite | Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan | ||||||||||||
| Troy |
Newark, NJ | 1980 | 22,842 | 207,000 | 99 | % | 64,000 | Pathmark | ||||||||||||||||
| Total New York / New Jersey | 394,089 | 2,226,000 | 99 | % | ||||||||||||||||||||
| Philadelphia Metropolitan Area |
||||||||||||||||||||||||
| Andorra |
Philadelphia, PA-NJ | 1988 | 22,987 | 267,000 | 94 | % | 24,000 | Acme Markets | Kohl’s / Staples / L.A. Fitness | |||||||||||||||
| Bala Cynwyd |
Philadelphia, PA-NJ | 1993 | 33,856 | 280,000 | 100 | % | 45,000 | Acme Markets | Lord & Taylor / L.A. Fitness | |||||||||||||||
| Ellisburg Circle |
Philadelphia, PA-NJ | 1992 | 27,647 | 268,000 | 99 | % | 47,000 | Genuardi’s | Buy Buy Baby / Stein Mart | |||||||||||||||
| Feasterville |
Philadelphia, PA-NJ | 1980 | 11,885 | 111,000 | 98 | % | 53,000 | Genuardi’s | OfficeMax | |||||||||||||||
| Flourtown |
Philadelphia, PA-NJ | 1980 | 15,000 | 189,000 | 86 | % | 42,000 | Genuardi’s | ||||||||||||||||
| Langhorne Square |
Philadelphia, PA-NJ | 1985 | 18,708 | 216,000 | 100 | % | 55,000 | Redner’s Warehouse Mkts. |
Marshalls | |||||||||||||||
| Lawrence Park |
Philadelphia, PA-NJ | 1980 | 29,074 | 29,565 | 353,000 | 100 | % | 53,000 | Acme Markets | CHI / TJ Maxx / HomeGoods | ||||||||||||||
| Northeast |
Philadelphia, PA-NJ | 1983 | 21,842 | 285,000 | 93 | % | Burlington Coat / Marshalls | |||||||||||||||||
| Town Center of New Britain |
Philadelphia, PA-NJ | 2006 | 13,998 | 124,000 | 87 | % | 36,000 | Giant Food | Rite Aid | |||||||||||||||
| Willow Grove |
Philadelphia, PA-NJ | 1984 | 26,938 | 215,000 | 99 | % | Barnes & Noble / Marshalls / Toys R Us | |||||||||||||||||
| Wynnewood |
Philadelphia, PA-NJ | 1996 | 36,137 | 30,130 | 255,000 | 97 | % | 98,000 | Genuardi’s | Bed, Bath & Beyond / Borders / Old Navy | ||||||||||||||
| Total Philadelphia Metropolitan Area | 258,072 | 2,563,000 | 96 | % | ||||||||||||||||||||
| New England |
||||||||||||||||||||||||
| Assembly Square/Sturtevant Street |
Boston-Cambridge-Quincy, MA-NH | 2005-2006 | 129,951 | 513,000 | 100 | % | AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx | |||||||||||||||||
| Chelsea Commons |
Boston-Cambridge-Quincy, MA-NH | 2006-2007 | 20,682 | 8,182 | 196,000 | 91 | % | 16,000 | Sav-A-Lot | Home Depot | ||||||||||||||
| Dedham Plaza |
Boston-Cambridge-Quincy, MA-NH | 1993 | 30,274 | 242,000 | 90 | % | 80,000 | Star Market | ||||||||||||||||
| Linden Square |
Boston-Cambridge-Quincy, MA-NH | 2006-2007 | 138,709 | 197,000 | 83 | % | 50,000 | Roche Brothers Supermarkets |
CVS / Fitness Club for Women / Wellesley Volkswagen, Buick | |||||||||||||||
| North Dartmouth |
Boston-Cambridge-Quincy, MA-NH | 2006 | 27,215 | 183,000 | 100 | % | 48,000 | Stop & Shop | Lowe’s Home Center | |||||||||||||||
| Queen Anne Plaza |
Boston-Cambridge-Quincy, MA-NH | 1994 | 15,305 | 149,000 | 100 | % | 50,000 | Hannaford | TJ Maxx | |||||||||||||||
| Saugus Plaza |
Boston-Cambridge-Quincy, MA-NH | 1996 | 13,691 | 171,000 | 94 | % | 55,000 | Super Stop & Shop |
Kmart | |||||||||||||||
| Total New England | 375,827 | 1,651,000 | 95 | % | ||||||||||||||||||||
| Baltimore |
||||||||||||||||||||||||
| Governor Plaza |
Baltimore, MD | 1985 | 20,886 | 269,000 | 100 | % | 16,500 | Aldi | Bally Total Fitness / Office Depot | |||||||||||||||
| Perring Plaza |
Baltimore, MD | 1985 | 26,609 | 402,000 | 98 | % | 58,000 | Shoppers Food Warehouse |
Home Depot / Burlington Coat Factory / Jo-Ann Stores | |||||||||||||||
| THE AVENUE at White Marsh |
(8 | ) | Baltimore, MD | 2007 | 93,544 | 60,533 | 298,000 | 98 | % | AMC Loews / Old Navy / Barnes & Noble / AC Moore | ||||||||||||||
| The Shoppes at Nottingham Square |
Baltimore, MD | 2007 | 15,807 | 186,000 | 100 | % | Lowe’s Home Center | |||||||||||||||||
| White Marsh Plaza |
Baltimore, MD | 2007 | 24,900 | 10,248 | 80,000 | 98 | % | 54,000 | Giant Food | |||||||||||||||
| White Marsh Other |
Baltimore, MD | 2007 | 63,658 | 1,131 | 52,000 | 100 | % | |||||||||||||||||
| Total Baltimore | 245,404 | 1,287,000 | 99 | % | ||||||||||||||||||||
| Chicago |
||||||||||||||||||||||||
| Crossroads |
Chicago, IL | 1993 | 23,074 | 173,000 | 87 | % | Golfsmith / Guitar Center | |||||||||||||||||
| Finley Square |
Chicago, IL | 1995 | 31,233 | 315,000 | 97 | % | Bed, Bath & Beyond / Buy Buy Baby / Petsmart | |||||||||||||||||
| Garden Market |
Chicago, IL | 1994 | 11,491 | 140,000 | 94 | % | 63,000 | Dominick’s | Walgreens | |||||||||||||||
| North Lake Commons |
Chicago, IL | 1994 | 13,488 | 129,000 | 93 | % | 77,000 | Dominick’s | ||||||||||||||||
| Total Chicago | 79,286 | 757,000 | 93 | % | ||||||||||||||||||||
| South Florida |
||||||||||||||||||||||||
| Del Mar Village |
Miami-Ft Lauderdale | 2008 | 45,405 | 154,000 | 94 | % | 44,000 | Winn Dixie | CVS | |||||||||||||||
| Total South Florida | 45,405 | 154,000 | 94 | % | ||||||||||||||||||||
| East Region - Other |
||||||||||||||||||||||||
| Barracks Road |
Charlottesville, VA | 1985 | 44,252 | 41,712 | 488,000 | 94 | % | 99,000 | Harris Teeter / Kroger |
Bed, Bath & Beyond / Barnes & Noble / Old Navy | ||||||||||||||
| Bristol Plaza |
Hartford, CT | 1995 | 26,350 | 272,000 | 85 | % | 74,000 | Stop & Shop | TJ Maxx | |||||||||||||||
| Eastgate |
Raleigh-Durham-Chapel Hill, NC | 1986 | 24,249 | 155,000 | 97 | % | Stein Mart | |||||||||||||||||
| Gratiot Plaza |
Detroit, MI | 1973 | 18,134 | 217,000 | 100 | % | 69,000 | Kroger | Bed, Bath & Beyond / Best Buy / DSW | |||||||||||||||
| Greenwich Avenue |
New Haven-Bridgeport-Stamford-Waterbury | 1995 | 15,998 | 42,000 | 100 | % | Saks Fifth Avenue | |||||||||||||||||
| Lancaster |
(9 | ) | Lancaster, PA | 1980 | 10,759 | 4,907 | 107,000 | 94 | % | 39,000 | Giant Food | Michaels | ||||||||||||
| Shoppers’ World |
Charlottesville, VA | 2007 | 29,315 | 5,918 | 170,000 | 97 | % | 28,000 | Whole Foods | Staples | ||||||||||||||
| Shops at Willow Lawn |
Richmond-Petersburg, VA | 1983 | 75,675 | 476,000 | 88 | % | 60,000 | Kroger | Old Navy / Staples / Ross | |||||||||||||||
| Total East Region -Other | 244,732 | 1,927,000 | 93 | % | ||||||||||||||||||||
| Total East Region | 2,586,128 | 15,769,000 | 96 | % | ||||||||||||||||||||
| West Region California |
||||||||||||||||||||||||
| Colorado Blvd |
Los Angeles-Long Beach, CA | 1996-1998 | 16,669 | 69,000 | 99 | % | Pottery Barn / Banana Republic | |||||||||||||||||
| Crow Canyon |
San Ramon, CA | 2005-2007 | 64,760 | 21,404 | 242,000 | 91 | % | 58,000 | Albertson’s | Loehmann’s / Rite Aid | ||||||||||||||
| Escondido |
(10 | ) | San Diego, CA | 1996 | 28,348 | 222,000 | 98 | % | Cost Plus / TJ Maxx / Toys R Us | |||||||||||||||
| Fifth Ave |
San Diego, CA | 1996-1997 | 12,970 | 51,000 | 100 | % | Urban Outfitters | |||||||||||||||||
| Hermosa Ave |
Los Angeles-Long Beach, CA | 1997 | 5,397 | 22,000 | 100 | % | ||||||||||||||||||
| Hollywood Blvd |
(11 | ) | Los Angeles-Long Beach, CA | 1999 | 37,645 | 153,000 | 85 | % | DSW / L.A. Fitness | |||||||||||||||
| Kings Court |
(6 | ) | San Jose, CA | 1998 | 11,518 | 79,000 | 100 | % | 25,000 | Lunardi’s Super Market |
Longs Drug Store | |||||||||||||
| Old Town Center |
San Jose, CA | 1997 | 33,849 | 95,000 | 96 | % | Borders / Gap Kids / Banana Republic | |||||||||||||||||
| Santana Row |
San Jose, CA | 1997 | 477,569 | 562,000 | 99 | % | Crate & Barrel /Container Store / Best Buy / Borders /CineArts Theatre | |||||||||||||||||
| Third St Promenade |
Los Angeles-Long Beach, CA | 1996-2000 | 78,889 | 211,000 | 100 | % | J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch | |||||||||||||||||
| Westgate |
San Jose, CA | 2004 | 115,953 | 645,000 | 97 | % | 38,000 | Safeway | Target / Burlington Coat Factory / Barnes & Noble / Ross | |||||||||||||||
| 150 Post Street |
San Francisco, CA | 1997 | 37,482 | 102,000 | 100 | % | Brooks Brothers / H & M | |||||||||||||||||
| Total California | 921,049 | 2,453,000 | 97 | % | ||||||||||||||||||||
| West Region - Other |
||||||||||||||||||||||||
| Houston St |
San Antonio, TX | 1998 | 62,212 | 19 | 177,000 | 79 | % | Hotel Valencia | ||||||||||||||||
| Total West Region | 983,261 | 2,630,000 | 96 | % | ||||||||||||||||||||
| Grand Total |
$ | 3,569,389 | $ | 447,143 | 18,399,000 | 96 | % | |||||||||||||||||
Notes:
| (1) | The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain mortgage payables. |
| (2) | Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage. |
| (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) | The Trust has a 64.1% ownership interest in the property. |
| (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) | On October 16, 2006, the Trust acquired control of Melville Mall through a 20 year master lease and secondary financing. Since the Trust controls this property and retains substantially all of the economic benefit and risks associated with it, we consolidate this property and its operations. |
| (8) | 50% of the ownership of this property is 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. |
| (9) | Property subject to capital lease obligation. |
| (10) | The Trust has a 70% ownership interest in the property. |
| (11) | The Trust has a 90% ownership interest in the property. |
16
Federal Realty Investment Trust
Retail Leasing Summary (1)
June 30, 2008
Total Lease Summary - Comparable (2)
| Quarter |
Number of Leases Signed |
% of Comparable 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 & Incentives (6) |
Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||
| 2nd Quarter 2008 |
84 | 100 | % | 239,207 | $ | 36.39 | $ | 29.21 | $ | 1,717,881 | 25 | % | 42 | % | 7.3 | $ | 2,316,197 | $ | 9.68 | |||||||||||
| 1st Quarter 2008 |
74 | 100 | % | 268,608 | $ | 29.29 | $ | 23.73 | $ | 1,494,431 | 23 | % | 37 | % | 6.3 | $ | 2,209,591 | $ | 8.23 | |||||||||||
| 4th Quarter 2007 |
87 | 100 | % | 471,853 | $ | 19.65 | $ | 16.04 | $ | 1,701,647 | 22 | % | 31 | % | 4.7 | $ | 2,360,410 | $ | 5.00 | |||||||||||
| 3rd Quarter 2007 |
71 | 100 | % | 410,312 | $ | 23.36 | $ | 19.65 | $ | 1,519,764 | 19 | % | 31 | % | 7.4 | $ | 4,764,140 | $ | 11.61 | |||||||||||
| Total - 12 months |
316 | 100 | % | 1,389,980 | $ | 25.49 | $ | 20.86 | $ | 6,433,723 | 22 | % | 35 | % | 6.4 | $ | 11,650,338 | $ | 8.38 | |||||||||||
New Lease Summary - Comparable (2)
| Quarter |
Number of Leases Signed |
% of Comparable 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 & Incentives (6) |
Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||
| 2nd Quarter 2008 |
31 | 37 | % | 115,097 | $ | 34.23 | $ | 26.46 | $ | 894,253 | 29 | % | 47 | % | 8.5 | $ | 1,770,940 | $ | 15.39 | |||||||||||
| 1st Quarter 2008 |
28 | 38 | % | 106,860 | $ | 36.64 | $ | 28.39 | $ | 880,956 | 29 | % | 44 | % | 7.9 | $ | 2,204,591 | $ | 20.63 | |||||||||||
| 4th Quarter 2007 |
23 | 26 | % | 118,389 | $ | 20.47 | $ | 16.35 | $ | 487,942 | 25 | % | 40 | % | 7.4 | $ | 2,345,410 | $ | 19.81 | |||||||||||
| 3rd Quarter 2007 |
26 | 37 | % | 199,685 | $ | 21.79 | $ | 18.89 | $ | 578,760 | 15 | % | 27 | % | 10.2 | $ | 4,730,710 | $ | 23.69 | |||||||||||
| Total - 12 months |
108 | 34 | % | 540,031 | $ | 27.09 | $ | 21.83 | $ | 2,841,911 | 24 | % | 38 | % | 8.7 | $ | 11,051,651 | $ | 20.46 | |||||||||||
Renewal Lease Summary - Comparable (2) (7)
| Quarter |
Number of Leases Signed |
% of Comparable 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 & Incentives (6) |
Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||
| 2nd Quarter 2008 |
53 | 63 | % | 124,110 | $ | 38.40 | $ | 31.76 | $ | 823,628 | 21 | % | 38 | % | 6.2 | $ | 545,257 | $ | 4.39 | |||||||||||
| 1st Quarter 2008 |
46 | 62 | % | 161,748 | $ | 24.44 | $ | 20.65 | $ | 613,475 | 18 | % | 30 | % | 4.7 | $ | 5,000 | $ | 0.03 | |||||||||||
| 4th Quarter 2007 |
64 | 74 | % | 353,464 | $ | 19.37 | $ | 15.94 | $ | 1,213,705 | 22 | % | 28 | % | 3.8 | $ | 15,000 | $ | 0.04 | |||||||||||
| 3rd Quarter 2007 |
45 | 63 | % | 210,627 | $ | 24.85 | $ | 20.38 | $ | 941,004 | 22 | % | 34 | % | 5.0 | $ | 33,430 | $ | 0.16 | |||||||||||
| Total - 12 months |
208 | 66 | % | 849,949 | $ | 24.47 | $ | 20.25 | $ | 3,591,812 | 21 | % | 32 | % | 4.8 | $ | 598,687 | $ | 0.70 | |||||||||||
Total Lease Summary - Comparable and Non-comparable (2)
| Quarter |
Number of Leases Signed |
GLA Signed | Contractual Rent (3) Per Sq. Ft. |
Weighted Average Lease Term (5) |
Tenant Improvements & Incentives (6) |
Tenant Improvements & Incentives Per Sq. Ft. | |||||||||
| 2nd Quarter 2008 |
90 | 253,048 | $ | 36.40 | 7.5 | $ | 2,940,855 | $ | 11.62 | ||||||
| 1st Quarter 2008 |
85 | 295,646 | $ | 30.61 | 6.4 | $ | 3,005,202 | $ | 10.16 | ||||||
| 4th Quarter 2007 |
93 | 482,730 | $ | 20.36 | 5.0 | $ | 2,686,086 | $ | 5.56 | ||||||
| 3rd Quarter 2007 |
80 | 442,942 | $ | 24.35 | 7.6 | $ | 6,450,056 | $ | 14.56 | ||||||
| Total - 12 months |
348 | 1,474,366 | $ | 26.37 | 6.6 | $ | 15,082,199 | $ | 10.23 | ||||||
| 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, if any, 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 in the same location. All other leases are categorized as new. |
17
Federal Realty Investment Trust
Lease Expirations
June 30, 2008
Assumes no exercise of lease options
| Anchor Tenants (1) | Small Shop Tenants | Total | ||||||||||||||||||||||
| Year |
Expiring SF | % of Anchor SF |
Minimum Rent PSF (2) |
Expiring SF |
% of Small Shop SF |
Minimum Rent PSF (2) |
Expiring SF | % of Total SF |
Minimum Rent PSF (2) | |||||||||||||||
| 2008 |
225,000 | 2 | % | $ | 6.71 | 391,000 | 5 | % | $ | 20.01 | 616,000 | 4 | % | $ | 15.15 | |||||||||
| 2009 |
776,000 | 8 | % | $ | 11.31 | 888,000 | 12 | % | $ | 26.99 | 1,664,000 | 10 | % | $ | 19.67 | |||||||||
| 2010 |
720,000 | 7 | % | $ | 12.01 | 931,000 | 13 | % | $ | 27.58 | 1,651,000 | 10 | % | $ | 20.79 | |||||||||
| 2011 |
710,000 | 7 | % | $ | 14.78 | 1,115,000 | 15 | % | $ | 30.24 | 1,825,000 | 11 | % | $ | 24.23 | |||||||||
| 2012 |
978,000 | 10 | % | $ | 13.35 | 1,079,000 | 15 | % | $ | 30.24 | 2,057,000 | 12 | % | $ | 22.21 | |||||||||
| 2013 |
1,054,000 | 11 | % | $ | 14.29 | 823,000 | 11 | % | $ | 31.99 | 1,877,000 | 11 | % | $ | 22.05 | |||||||||
| 2014 |
1,094,000 | 11 | % | $ | 17.59 | 373,000 | 5 | % | $ | 35.22 | 1,467,000 | 8 | % | $ | 22.08 | |||||||||
| 2015 |
438,000 | 4 | % | $ | 16.12 | 418,000 | 6 | % | $ | 28.02 | 856,000 | 5 | % | $ | 21.93 | |||||||||
| 2016 |
384,000 | 4 | % | $ | 18.43 | 413,000 | 6 | % | $ | 31.81 | 797,000 | 5 | % | $ | 25.36 | |||||||||
| 2017 |
623,000 | 6 | % | $ | 17.18 | 433,000 | 6 | % | $ | 31.79 | 1,056,000 | 6 | % | $ | 23.17 | |||||||||
| Thereafter |
2,974,000 | 30 | % | $ | 14.71 | 490,000 | 6 | % | $ | 36.11 | 3,464,000 | 18 | % | $ | 17.74 | |||||||||
| Total (3) |
9,976,000 | 100 | % | $ | 14.57 | 7,354,000 | 100 | % | $ | 29.86 | 17,330,000 | 100 | % | $ | 21.06 | |||||||||
Assumes all lease options are exercised
| Anchor Tenants (1) | Small Shop Tenants | Total | ||||||||||||||||||||||
| Year |
Expiring SF | % of Anchor SF |
Minimum Rent PSF (2) |
Expiring SF |
% of Small Shop SF |
Minimum Rent PSF (2) |
Expiring SF | % of Total SF |
Minimum Rent PSF (2) | |||||||||||||||
| 2008 |
181,000 | 2 | % | $ | 7.77 | 278,000 | 4 | % | $ | 19.69 | 459,000 | 3 | % | $ | 14.99 | |||||||||
| 2009 |
251,000 | 3 | % | $ | 11.86 | 527,000 | 7 | % | $ | 27.73 | 778,000 | 4 | % | $ | 22.61 | |||||||||
| 2010 |
239,000 | 2 | % | $ | 8.49 | 523,000 | 7 | % | $ | 29.35 | 762,000 | 4 | % | $ | 22.81 | |||||||||
| 2011 |
43,000 | 1 | % | $ | 7.19 | 620,000 | 8 | % | $ | 28.72 | 663,000 | 4 | % | $ | 27.33 | |||||||||
| 2012 |
235,000 | 2 | % | $ | 14.92 | 592,000 | 8 | % | $ | 32.31 | 827,000 | 5 | % | $ | 27.37 | |||||||||
| 2013 |
127,000 | 1 | % | $ | 15.11 | 509,000 | 7 | % | $ | 30.11 | 636,000 | 4 | % | $ | 27.11 | |||||||||
| 2014 |
332,000 | 3 | % | $ | 14.48 | 409,000 | 6 | % | $ | 33.51 | 741,000 | 4 | % | $ | 24.98 | |||||||||
| 2015 |
189,000 | 2 | % | $ | 16.78 | 413,000 | 6 | % | $ | 25.74 | 602,000 | 3 | % | $ | 22.93 | |||||||||
| 2016 |
125,000 | 1 | % | $ | 20.50 | 400,000 | 5 | % | $ | 32.04 | 525,000 | 3 | % | $ | 29.29 | |||||||||
| 2017 |
127,000 | 1 | % | $ | 26.65 | 541,000 | 7 | % | $ | 29.87 | 668,000 | 4 | % | $ | 29.26 | |||||||||
| Thereafter |
8,127,000 | 82 | % | $ | 14.68 | 2,542,000 | 35 | % | $ | 30.90 | 10,669,000 | 62 | % | $ | 18.55 | |||||||||
| Total (3) |
9,976,000 | 100 | % | $ | 14.57 | 7,354,000 | 100 | % | $ | 29.86 | 17,330,000 | 100 | % | $ | 21.06 | |||||||||
Notes:
| (1) | Anchor is defined as a tenant leasing 15,000 square feet or more. |
| (2) | Minimum Rent reflects in-place contractual (cash-basis) rent as of June 30, 2008. |
| (3) | Represents occupied square footage as of June 30, 2008. |
18
Federal Realty Investment Trust
Portfolio Leased Statistics
June 30, 2008
Overall Portfolio Statistics (1)
| At June 30, 2008 | At June 30, 2007 | |||||||||||||
| Type |
Size | Leased | Leased % | Size | Leased | Leased % | ||||||||
| Retail Properties (2) (sf) |
18,399,000 | 17,634,000 | 95.8 | % | 19,468,000 | 18,702,000 | 96.1 | % | ||||||
| Residential Properties (3) (units) |
723 | 692 | 95.7 | % | 723 | 706 | 97.6 | % | ||||||
Same Center Statistics (1)
| At June 30, 2008 | At June 30, 2007 | |||||||||||||
| Type |
Size | Leased | Leased % | Size | Leased | Leased % | ||||||||
| Retail Properties (2) (4) (sf) |
16,252,000 | 15,622,000 | 96.1 | % | 15,896,000 | 15,324,000 | 96.4 | % | ||||||
| Residential Properties (3) (units) |
723 | 692 | 95.7 | % | 428 | 412 | 96.3 | % | ||||||
Notes:
| (1) | See Glossary of Terms. |
| (2) | Leasable square feet; excludes redevelopment square footage not yet placed in service. |
| (3) | Overall portfolio statistics at June 30, 2008 and 2007 include Rollingwood, The Crest at Congressional and the residential rental units at Santana Row. The 180 residential units at Arlington East (Bethesda Row) were first delivered in late May 2008 and will continue to be delivered through third quarter 2008. Same center statistics at June 30, 2007 included only Rollingwood and The Crest at Congressional. |
| (4) | Excludes properties purchased, sold or under redevelopment. |
19
Federal Realty Investment Trust
Summary of Top 25 Tenants
June 30, 2008
| Rank |
Tenant Name |
Annualized Base Rent |
Percentage of Total Annualized Base Rent |
Tenant GLA | Percentage of Total GLA |
Number of Stores Leased | |||||||||||
| 1 | Bed, Bath & Beyond, Inc. | $ | 9,637,000 | 2.64 | % | 647,000 | 3.52 | % | 15 | ||||||||
| 2 | Ahold USA, Inc. | $ | 8,166,000 | 2.24 | % | 571,000 | 3.10 | % | 11 | ||||||||
| 3 | Safeway, Inc. | $ | 6,719,000 | 1.84 | % | 481,000 | 2.61 | % | 9 | ||||||||
| 4 | TJX Companies | $ | 6,531,000 | 1.79 | % | 541,000 | 2.94 | % | 15 | ||||||||
| 5 | Gap, Inc. | $ | 6,364,000 | 1.74 | % | 220,000 | 1.20 | % | 11 | ||||||||
| 6 | CVS Corporation | $ | 5,453,000 | 1.49 | % | 166,000 | 0.90 | % | 15 | ||||||||
| 7 | Barnes & Noble, Inc. | $ | 4,705,000 | 1.29 | % | 201,000 | 1.09 | % | 8 | ||||||||
| 8 | OPNET Technologies, Inc. | $ | 3,645,000 | 1.00 | % | 83,000 | 0.45 | % | 2 | ||||||||
| 9 | DSW, Inc | $ | 3,486,000 | 0.96 | % | 125,000 | 0.68 | % | 5 | ||||||||
| 10 | Best Buy Stores, L.P. | $ | 3,457,000 | 0.95 | % | 99,000 | 0.54 | % | 3 | ||||||||
| 11 | Staples, Inc. | $ | 3,376,000 | 0.92 | % | 187,000 | 1.02 | % | 9 | ||||||||
| 12 | Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food) | $ | 3,204,000 | 0.88 | % | 338,000 | 1.84 | % | 7 | ||||||||
| 13 | Borders Group, Inc. | $ | 2,834,000 | 0.78 | % | 129,000 | 0.70 | % | 5 | ||||||||
| 14 | Home Depot, Inc. | $ | 2,832,000 | 0.78 | % | 335,000 | 1.82 | % | 4 | ||||||||
| 15 | Kohl’s Corporation | $ | 2,793,000 | 0.77 | % | 322,000 | 1.75 | % | 3 | ||||||||
| 16 | Ross Stores, Inc. | $ | 2,672,000 | 0.73 | % | 149,000 | 0.81 | % | 5 | ||||||||
| 17 | Wakefern Food Corporation | $ | 2,546,000 | 0.70 | % | 136,000 | 0.74 | % | 2 | ||||||||
| 18 | Wachovia Corporation | $ | 2,536,000 | 0.69 | % | 58,000 | 0.32 | % | 12 | ||||||||
| 19 | A.C. Moore, Inc. | $ | 2,483,000 | 0.68 | % | 141,000 | 0.77 | % | 6 | ||||||||
| 20 | L.A. Fitness International LLC | $ | 2,388,000 | 0.65 | % | 117,000 | 0.64 | % | 3 | ||||||||
| 21 | AMC Entertainment Inc. | $ | 2,378,000 | 0.65 | % | 166,000 | 0.90 | % | 4 | ||||||||
| 22 | Container Store, Inc. | $ | 2,354,000 | 0.64 | % | 52,000 | 0.28 | % | 2 | ||||||||
| 23 | PETsMART, Inc. | $ | 2,240,000 | 0.61 | % | 130,000 | 0.71 | % | 5 | ||||||||
| 24 | Dollar Tree Stores, Inc. | $ | 2,223,000 | 0.61 | % | 147,000 | 0.80 | % | 13 | ||||||||
| 25 | Bank of America, N.A. | $ | 2,222,000 | 0.61 | % | 58,000 | 0.32 | % | 17 | ||||||||
| Totals - Top 25 Tenants | $ | 97,244,000 | 26.64 | % | 5,599,000 | 30.45 | % | 191 | |||||||||
| Total: (1) | $ | 364,974,000 | (2) | 18,399,000 | (3) | 2,410 | |||||||||||
Notes:
| (1) | Does not include amounts related to leases these tenants have with our partnership with Clarion Lion Properties Fund. |
| (2) | Reflects annual in-place contractual (cash-basis) rent as of June 30, 2008. |
| (3) | Excludes redevelopment square footage not yet placed in service. |
20
Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance
June 30, 2008
| 2008 Guidance | ||||||||||
| ($ millions except per share amounts) (1) |
||||||||||
| Net income |
$ | 123 | to | $ | 125 | |||||
| Gain on sale of real estate |
0 | 0 | ||||||||
| Depreciation and amortization of real estate & real estate partnership assets |
99 | 99 | ||||||||
| Amortization of initial direct costs of leases |
9 | 9 | ||||||||
| Funds from operations |
231 | 232 | ||||||||
| Income attributable to operating partnership units |
1 | 1 | ||||||||
| Dividends on preferred stock |
(1 | ) | (1 | ) | ||||||
| Funds from operations available for common shareholders |
231 | to | 233 | |||||||
| Weighted Average Shares (diluted) |
59.3 | |||||||||
| Funds from operations available for common shareholders per diluted share |
$ | 3.89 | $ | 3.92 | ||||||
Note:
| (1) | Individual items may not add up to total due to rounding. |
21
Federal Realty Investment Trust
Joint Venture Disclosure
June 30, 2008
Clarion Lion Properties Fund
22
Federal Realty Investment Trust
Summarized Income Statements and Balance Sheets - Joint Venture
June 30, 2008
CONSOLIDATED INCOME STATEMENTS
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues |
||||||||||||||||
| Rental income |
$ | 4,760 | $ | 4,333 | $ | 9,377 | $ | 7,818 | ||||||||
| Other property income |
46 | 104 | 109 | 150 | ||||||||||||
| 4,806 | 4,437 | 9,486 | 7,968 | |||||||||||||
| Expenses |
||||||||||||||||
| Rental |
671 | 639 | 1,545 | 1,202 | ||||||||||||
| Real estate taxes |
495 | 402 | 960 | 744 | ||||||||||||
| Depreciation and amortization |
1,192 | 1,162 | 2,377 | 2,137 | ||||||||||||
| 2,358 | 2,203 | 4,882 | 4,083 | |||||||||||||
| Operating income |
2,448 | 2,234 | 4,604 | 3,885 | ||||||||||||
| Interest expense |
(1,135 | ) | (1,132 | ) | (2,270 | ) | (2,206 | ) | ||||||||
| Net income |
$ | 1,313 | $ | 1,102 | $ | 2,334 | $ | 1,679 | ||||||||
CONSOLIDATED BALANCE SHEETS
| June 30, 2008 |
December 31, 2007 |
|||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Real estate, at cost |
$ | 201,886 | $ | 201,641 | ||||
| Less accumulated depreciation and amortization |
(12,230 | ) | (9,894 | ) | ||||
| Net real estate |
189,656 | 191,747 | ||||||
| Cash and cash equivalents |
2,484 | 1,453 | ||||||
| Other assets |
6,516 | 7,173 | ||||||
| TOTAL ASSETS |
$ | 198,656 | $ | 200,373 | ||||
| LIABILITIES AND PARTNERS’ CAPITAL |
||||||||
| Liabilities |
||||||||
| Mortgages payable |
$ | 81,454 | $ | 81,540 | ||||
| Other liabilities |
7,624 | 8,691 | ||||||
| Total liabilities |
89,078 | 90,231 | ||||||
| Partners’ capital |
109,578 | 110,142 | ||||||
| TOTAL LIABILITIES AND PARTNERS’ CAPITAL |
$ | 198,656 | $ | 200,373 | ||||
23
Federal Realty Investment Trust
Summary of Outstanding Debt and Debt Maturities - Joint Venture
June 30, 2008
OUTSTANDING DEBT
| Maturity |
Stated Interest Rate as of June 30, 2008 |
Balance | ||||||
| (in thousands) | ||||||||
| Mortgage Loans |
||||||||
| Secured Fixed Rate |
||||||||
| Campus Plaza |
12/01/09 | 4.530 | %(a) | $ | 11,000 | |||
| Pleasant Shops |
12/01/09 | 4.530 | %(a) | 12,400 | ||||
| Plaza del Mercado |
07/05/14 | 5.770 | %(b) | 13,169 | ||||
| Atlantic Plaza |
12/01/14 | 5.120 | %(a) | 10,500 | ||||
| Barcroft Plaza |
07/01/16 | 5.990 | %(a)(c) | 20,785 | ||||
| Greenlawn Plaza |
07/01/16 | 5.900 | %(a) | 13,600 | ||||
| Total Fixed Rate Debt | $ | 81,454 | ||||||
Debt Maturities
(in thousands)
| Year |
Scheduled Amortization |
Maturities | Total | Percent of Debt Maturing |
Cumulative Percent of Debt Maturing |
||||||||||
| 2008 |
$ | 89 | $ | — | $ | 89 | 0.1 | % | 0.1 | % | |||||
| 2009 |
185 | 23,400 | 23,585 | 28.9 | % | 29.0 | % | ||||||||
| 2010 |
196 | — | 196 | 0.2 | % | 29.2 | % | ||||||||
| 2011 |
208 | — | 208 | 0.3 | % | 29.5 | % | ||||||||
| 2012 |
220 | — | 220 | 0.3 | % | 29.8 | % | ||||||||
| 2013 |
233 | — | 233 | 0.3 | % | 30.1 | % | ||||||||
| 2014 |
142 | 22,396 | 22,538 | 27.7 | % | 57.8 | % | ||||||||
| 2015 |
— | — | — | 0.0 | % | 57.8 | % | ||||||||
| 2016 |
— | 34,385 | 34,385 | 42.2 | % | 100.0 | % | ||||||||
| Total |
$ | 1,273 | $ | 80,181 | $ | 81,454 | 100.0 | % | |||||||
Notes:
| (a) | Interest only until maturity. |
| (b) | Effective July 5, 2007, principal and interest payments were due based on a 30-year amortization schedule. |
| (c) | The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents a note of $16.6 million at a stated rate of 6.06% and a note of $4.2 million at a stated rate of 5.71%. |
24
Federal Realty Investment Trust
Real Estate Status Report - Joint Venture
June 30, 2008
| Property Name |
MSA Description |
Year Acquired |
Real Estate at Cost |
Mortgage or Capital Lease Obligation |
GLA | % Leased | Grocery Anchor GLA (1) |
Grocery Anchor (1) |
Other Principal Tenants | ||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||
| East Region |
|||||||||||||||||||||
| Washington Metropolitan Area |
|||||||||||||||||||||
| Barcroft Plaza |
Washington, DC-MD-VA | 2006- 2007 |
33,993 | $ | 20,785 | 100,000 | 95 | % | 46,000 | Harris Teeter | Bank of America | ||||||||||
| Free State Shopping Center |
Washington, DC-MD-VA | 2007 | 65,737 | 279,000 | 100 | % | 73,000 | Giant Food | TJ Maxx / Ross / Office Depot | ||||||||||||
| Plaza del Mercado |
Washington, DC-MD-VA | 2004 | 20,978 | 13,169 | 96,000 | 93 | % | 25,000 | Giant Food | CVS | |||||||||||
| Total Washington Metropolitan Area | 120,708 | 475,000 | 98 | % | |||||||||||||||||
| New York / New Jersey |
|||||||||||||||||||||
| Greenlawn Plaza |
Nassau-Suffolk, NY | 2006 | 19,983 | 13,600 | 106,000 | 100 | % | 46,000 | Waldbaum’s | Tuesday Morning | |||||||||||
| Total New York / New Jersey | 19,983 | 106,000 | 100 | % | |||||||||||||||||
|
|
|||||||||||||||||||||
| Atlantic Plaza |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 16,403 | 10,500 | 123,000 | 97 | % | 63,000 | Shaw’s Supermarket | Sears | |||||||||||
| Campus Plaza |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 22,101 | 11,000 | 116,000 | 100 | % | 46,000 | Roche Brothers | Burlington Coat Factory | |||||||||||
| Pleasant Shops |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 22,691 | 12,400 | 129,000 | 97 | % | 38,000 | Foodmaster | Marshalls | |||||||||||
| Total New England | 61,195 | 368,000 | 98 | % | |||||||||||||||||
| Total East Region | 201,886 | 949,000 | 98 | % | |||||||||||||||||
| Grand Totals |
$ | 201,886 | $ | 81,454 | 949,000 | 98 | % | ||||||||||||||
Note:
| (1) | Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more. |
25
Glossary of Terms
Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. Adjusted EBITDA is presented because we believe that it provides useful information to investors regarding our ability to service debt and because it approximates a key covenant in material notes. Adjusted 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 Adjusted EBITDA to net income for the three and six months ended June 30, 2008 and 2007 is as follows:
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||
| Net income |
$ | 28,974 | $ | 26,718 | $ | 58,960 | $ | 49,854 | ||||||||
| Depreciation and amortization |
27,795 | 26,902 | 53,195 | 53,386 | ||||||||||||
| Interest expense |
24,476 | 29,736 | 48,829 | 59,219 | ||||||||||||
| Other interest income |
(209 | ) | (332 | ) | (550 | ) | (689 | ) | ||||||||
| EBITDA |
81,036 | 83,024 | 160,434 | 161,770 | ||||||||||||
| Gain on sale of real estate |
— | (1,849 | ) | — | (1,849 | ) | ||||||||||
| Adjusted EBITDA |
$ | 81,036 | $ | 81,175 | $ | 160,434 | $ | 159,921 | ||||||||
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 excluding extraordinary items and 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: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes and excluding operating results from discontinued operations.
Overall Portfolio: Includes all operating properties owned in reporting period.
Same Center: Information provided on a same center basis is provided for only those properties that were owned and operated for the entirety of both periods being compared, excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared.
Tenant Improvements and Incentives: 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. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.
26