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Form 8-K

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) September 30, 2009

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 4, 2009, 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, 2009. 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 September 30, 2009 (including press release dated November 4, 2009)

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 4, 2009				/s/ Andrew P. Blocher
				Andrew P. Blocher
				Senior Vice President,
				Chief Financial Officer and Treasurer

EXHIBIT INDEX


Exh No.		Exhibit
99.1		Supplemental Information at September 30, 2009

Exhibit 99.1

Exhibit 99.1

FEDERAL REALTY INVESTMENT TRUST

SUPPLEMENTAL INFORMATION

September 30, 2009

TABLE OF CONTENTS


1.	Third Quarter 2009 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.	Real Estate Status Report	15

6.	Retail Leasing Summary	17

7.	Lease Expirations	18

8.	Portfolio Leased Statistics	19

9.	Summary of Top 25 Tenants	20

10.	Reconciliation of Net Income to FFO Guidance	21

11.	Joint Venture Disclosure
	Summarized Income Statements and Balance Sheets	22
	Summary of Outstanding Debt and Debt Maturities	23
	Real Estate Status Report	24

12.	Glossary of Terms	25

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 26, 2009 and amended on June 25, 2009, and include the following:

•

risks that our tenants will not pay rent, may vacate early or may file for bankruptcy 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 26, 2009 and amended on June 25, 2009.

LOGO

FOR IMMEDIATE RELEASE


Investor and Media Inquiries
Gina Birdsall		Janelle Stevenson
Investor Relations		Corporate Communications
301/998-8265		301/998-8185
gbirdsall@federalrealty.com		jmstevenson@federalrealty.com

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES THIRD QUARTER 2009 OPERATING RESULTS

ROCKVILLE, Md. (November 4, 2009) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2009.

Financial Results

For third quarter 2009 Federal Realty reported funds from operations available for common shareholders (FFO) of $55.6 million, or $0.92 per diluted share, compared to FFO of $58.1 million or $0.98 per diluted share for the third quarter 2008. For the quarter ending September 30, 2009, net income available for common shareholders was $27.3 million, or earnings per diluted share of $0.45, versus $37.0 million and $0.63, respectively, for third quarter 2008.

For the nine months ended September 30, 2009, Federal Realty reported FFO of $151.0 million, or $2.53 per diluted share, and net income available for common shareholders of $65.9 million, or earnings per diluted share of $1.10. Excluding the litigation provision related to a previously disclosed lawsuit involving a property adjacent to Santana Row, year-to-date FFO was $172.0 million, or $2.88 per diluted share, and net income available for common shareholders was $87.0 million, or $1.46 per diluted share. For the nine months ended September 30, 2008, the Trust reported FFO of $169.8 million, or $2.87 per diluted share, and net income available for common shareholders of $95.7 million or $1.62 per diluted share.

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income attributable to the Trust is attached to this press release.

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2009 OPERATING RESULTS

November 4, 2009

Page 2

Portfolio Results

In third quarter 2009, same-center property operating income increased 2.6% over third quarter 2008. When redevelopment and expansion properties are excluded from same-center results, property operating income for third quarter 2009 increased 1.8% compared to third quarter 2008.

The overall portfolio was 94.2% leased as of September 30, 2009, compared to 94.0% on June 30, 2009 and 95.5% on September 30, 2008. Federal Realty’s same-center portfolio was 94.4% leased on September 30, 2009, compared to 94.2% on June 30, 2009 and 95.8% on September 30, 2008.

During the third quarter of 2009, Federal Realty signed 94 leases for 357,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 335,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 9%. The average contractual rent on this comparable space for the first year of the new leases is $29.38 per square foot, compared to the average contractual rent of $27.00 per square foot for the last year of the prior leases. The previous average contractual rent was calculated by including both the minimum rent and any 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 17% for third quarter 2009. As of September 30, 2009, Federal Realty’s average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $22.01 per square foot.

“Our 2009 results and outlook for 2010 reflect consistent performance during this challenging economic environment,” said Don Wood, president and chief executive officer of Federal Realty Investment Trust. “This level of stability is a testament to the quality of our assets, our locations, and our focused operating strategy.”

Regular Quarterly Dividends

Federal Realty also announced today that its Board of Trustees left the regular dividend rate on its common shares unchanged, declaring a regular quarterly cash dividend of $0.66 per share on its common shares, resulting in an indicated annual rate of $2.64 per share. The regular common dividend will be payable in cash on January 15, 2010 to common shareholders of record on January 4, 2010.

Guidance

Federal Realty increased its guidance, excluding the provision for litigation, for 2009 FFO per diluted share to a range of $3.75 to $3.77 and 2009 earnings per diluted share guidance of $1.87 to $1.89. The Trust also established guidance for 2010 FFO per diluted share at a range of $3.80 to $3.88 and 2010 earnings per diluted share guidance of $1.92 to $2.00.

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2009 OPERATING RESULTS

November 4, 2009

Page 3

Summary of Other Quarterly Activities and Recent Developments

•

October 19, 2009 - Completed the land exchange between Swedish home furnishings retailer IKEA and Federal Realty at Assembly Square in Somerville, Mass. As a result of the exchange, Federal Realty now owns an additional 16.6 acres of riverfront property for the proposed development of Assembly Square, while IKEA owns an 11.9 acre inland site approved for a 340,000-square-foot store.

•

October 1, 2009 – Announced that Don Briggs, senior vice president, development, would become head of the Trust’s Boston office effective October 5. Mr. Briggs has led Federal Realty’s development efforts with respect to Assembly Square, in Somerville, Mass. since the Trust acquired the property in 2005 and will continue to be responsible for all aspects of the development of Assembly Square. In addition, Mr. Briggs will take on operational responsibilities for Federal Realty’s 2 million square foot portfolio in New England.

•

August 17, 2009 – Announced the closing of $265 million of capital raising activities, comprised of $150 million of 5.95% five-year senior unsecured notes and $115 million of common shares of beneficial interest, including the underwriters’ over-allotment option. Federal Realty intends to utilize the proceeds to pursue acquisition opportunities, fund its redevelopment pipeline, pay down its $372 million term loan, and/or for general corporate purposes.

Conference Call Information

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its third quarter 2009 earnings conference call, which is scheduled for November 5, 2009, at 11 a.m. Eastern Standard Time. To participate, please call (866) 761-0748 five to ten minutes prior to the call start time and use the passcode FRT EARNINGS (required). Federal Realty will also provide an online webcast 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 December 3, 2009, by dialing (888) 286-8010 and using the passcode 40216191.

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2009 OPERATING RESULTS

November 4, 2009

Page 4

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management and redevelopment of high quality retail assets. Federal Realty’s portfolio (excluding joint venture properties) contains approximately 18.2 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 94.2% leased to national, regional, and local retailers as of September 30, 2009, with no single tenant accounting for more than approximately 2.6% 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 42 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. For more information, please visit www.federalrealty.com.

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 26, 2009 and amended on June 25, 2009, and include the following:

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

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

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 26, 2009 and amended on June 25, 2009.

Federal Realty Investment Trust

Summarized Income Statements

September 30, 2009


	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008
	(in thousands, except per share data)
	(unaudited)
Revenue
Rental income	$	126,169		$	126,594		$	379,465		$	371,304
Other property income		3,714			4,005			9,258			12,015
Mortgage interest income		1,109			1,108			3,683			3,342

Total revenue		130,992			131,707			392,406			386,661

Expenses
Rental expenses		24,367			27,547			78,144			80,993
Real estate taxes		14,485			14,692			43,138			41,132
General and administrative		5,749			5,391			16,170			19,451
Litigation provision		330			—			21,087			—
Depreciation and amortization		28,410			28,631			86,635			81,805

Total operating expenses		73,341			76,261			245,174			223,381

Operating income		57,651			55,446			147,232			163,280

Other interest income		924			115			1,274			662
Interest expense		(30,209	)		(25,337	)		(79,622	)		(74,166	)
Early extinguishment of senior notes		—			—			(968	)		—
Income from real estate partnership		473			407			1,074			1,180

Income from continuing operations		28,839			30,631			68,990			90,956

Discontinued operations
Income from discontinued operations		—			348			218			1,724
Gain on sale of real estate from discontinued operations		—			7,438			1,298			7,438

Results from discontinued operations		—			7,786			1,516			9,162

Net income		28,839			38,417			70,506			100,118
Net income attributable to noncontrolling interests		(1,406	)		(1,315	)		(4,172	)		(4,056	)

Net income attributable to the Trust		27,433			37,102			66,334			96,062

Dividends on preferred stock		(136	)		(136	)		(406	)		(406	)

Net income available for common shareholders	$	27,297		$	36,966		$	65,928		$	95,656

EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.45		$	0.50		$	1.08		$	1.47
Discontinued operations		—			0.13			0.03			0.16

	$	0.45		$	0.63		$	1.11		$	1.63

Weighted average number of common shares, basic		60,016			58,720			59,264			58,624

EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.45		$	0.50		$	1.07		$	1.46
Discontinued operations		—			0.13			0.03			0.16

	$	0.45		$	0.63		$	1.10		$	1.62

Weighted average number of common shares, diluted		60,140			58,921			59,387			58,873

Federal Realty Investment Trust

Summarized Balance Sheets

September 30, 2009


	September 30,			December 31,
	2009			2008
	(in thousands)
	(unaudited)
ASSETS

Real estate, at cost
Operating	$	3,643,592		$	3,567,035
Construction-in-progress		84,172			106,650

		3,727,764			3,673,685
Less accumulated depreciation and amortization		(913,939	)		(846,258	)

Net real estate		2,813,825			2,827,427

Cash and cash equivalents		408,428			15,223
Accounts and notes receivable		72,188			73,688
Mortgage notes receivable		48,401			45,780
Investment in real estate partnership		28,826			29,252
Prepaid expenses and other assets		108,617			101,406

TOTAL ASSETS	$	3,480,285		$	3,092,776

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities
Mortgages payable and capital lease obligations	$	604,613		$	452,810
Notes payable		383,788			336,391
Senior notes and debentures		1,053,816			956,584
Accounts payable and other liabilities		223,803			200,037

Total liabilities		2,266,020			1,945,822

Shareholders’ equity
Preferred stock		9,997			9,997
Common shares and other shareholders’ equity		1,172,423			1,104,605

Total shareholders’ equity of the Trust		1,182,420			1,114,602
Noncontrolling interest		31,845			32,352

Total shareholders’ equity		1,214,265			1,146,954

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,480,285		$	3,092,776

Federal Realty Investment Trust

Funds From Operations / Summary of Capital Expenditures

September 30, 2009


	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008
	(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income attributable to the Trust	$	27,433		$	37,102		$	66,334		$	96,062
Gain on sale of real estate		—			(7,438	)		(1,298	)		(7,438	)
Depreciation and amortization of real estate assets		25,682			26,037			77,681			74,037
Amortization of initial direct costs of leases		2,196			2,136			7,378			6,441
Depreciation of joint venture real estate assets		355			331			1,046			992

Funds from operations		55,666			58,168			151,141			170,094
Dividends on preferred stock		(136	)		(136	)		(406	)		(406	)
Income attributable to operating partnership units		245			244			729			707
Income attributable to unvested shares		(180	)		(198	)		(494	)		(584	)

FFO (2)		55,595			58,078			150,970			169,811
Litigation provision, net of allocation to unvested shares (2)		329			—			21,018			—

FFO excluding litigation provision (2)	$	55,924		$	58,078		$	171,988		$	169,811


FFO per diluted share (3)	$	0.92		$	0.98		$	2.53		$	2.87
Litigation provision per diluted share (2)		—			—			0.35			—

FFO per diluted share excluding litigation provision (2)(3)	$	0.92		$	0.98		$	2.88		$	2.87

Weighted average number of common shares, diluted		60,511			59,298			59,759			59,251

Summary of Capital Expenditures
Non-maintenance capital expenditures
Redevelopment and expansions	$	14,724		$	25,670		$	54,689		$	76,080
Tenant improvements and incentives		3,402			5,590			8,479			14,973

Total non-maintenance capital expenditures		18,126			31,260			63,168			91,053
Maintenance capital expenditures		4,306			3,608			7,491			8,963

Total capital expenditures	$	22,432		$	34,868		$	70,659		$	100,016

Dividends and Payout Ratios

Regular common dividends declared	$	40,374		$	38,322		$	117,222		$	110,104
Dividend payout ratio as a percentage of FFO		73	%		66	%		78	%		65	%
Dividend payout ratio as a percentage of FFO excluding litigation provision (3)		72	%		66	%		68	%		65	%

Notes:

(1)	See Glossary of Terms.

(2)

For the three and nine months ended September 30, 2009, FFO includes a $0.3 million and a $21.1 million, respectively, charge for litigation regarding a parcel of land located adjacent to Santana Row as well as other costs related to the litigation and appeal process. FFO excluding litigation provision excludes this charge.

(3)	Effective January 1, 2009, we adopted a new accounting standard which requires us to calculate FFO per diluted share for all periods presented using the two-class method. The implementation resulted in no change to FFO per share for the three and nine months ended September 30, 2008.

Federal Realty Investment Trust

Market Data

September 30, 2009


	September 30,
	2009			2008
	(in thousands, except per share data)
Market data
Common shares outstanding (1)		61,176			58,974
Market price per common share	$	61.37		$	85.60

Common equity market capitalization	$	3,754,371		$	5,048,174

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	$	3,764,371		$	5,058,174

Total debt (3)		2,042,217			1,754,521

Total market capitalization	$	5,806,588		$	6,812,695

Total debt to market capitalization at then current market price		35	%		26	%

Total debt to market capitalization at constant common share price of $85.60		28	%		26	%

Fixed rate debt ratio:
Fixed rate debt and capital lease obligations		81	%		92	%
Variable rate debt		19	%		8	%

		100	%		100	%

Notes:

(1)	Amounts do not include 371,260 and 376,260 Operating Partnership Units outstanding at September 30, 2009 and 2008, 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 mortgages payable of $81.2 million and $81.4 million at September 30, 2009 and 2008, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners.

Federal Realty Investment Trust

Components of Rental Income

September 30, 2009


	Three months ended September 30,				Nine months ended September 30,
	2009		2008		2009		2008
	(in thousands)				(in thousands)
Minimum rents
Retail and commercial (1)	$	93,312	$	92,306	$	280,084	$	272,834
Residential (2)		5,301		4,845		15,918		12,970
Cost reimbursements		24,304		26,604		74,277		75,885
Percentage rents		1,164		1,298		3,811		5,428
Other		2,088		1,541		5,375		4,187

Total rental income	$	126,169	$	126,594	$	379,465	$	371,304

Notes:

(1)

Minimum rents include $1.3 million and $1.4 million for the three months ended September 30, 2009 and 2008, respectively, and $3.9 million and $4.2 million for the nine months ended September 30, 2009 and 2008, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.4 million and $0.6 million for the three months ended September 30, 2009 and 2008, respectively, and $1.1 million and $1.9 million for the nine months ended September 30, 2009 and 2008, respectively, to recognize income from the amortization of in-place leases.

(2)	Residential minimum rents consist of the rental amounts for residential units at Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row, and Arlington East (Bethesda Row). The first rental units at Arlington East were delivered and became rent paying in May 2008.

Federal Realty Investment Trust

Summary of Outstanding Debt and Capital Lease Obligations

September 30, 2009


	Maturity date	Stated interest rate as of September 30, 2009		Balance as of September 30, 2009					Weighted average effective rate at September 30, 2009 (i)
				(in thousands)
Mortgage loans (a)
Secured fixed rate
Federal Plaza	06/01/11	6.750	%	$	32,683
Tysons Station	09/01/11	7.400	%		5,942
Courtyard Shops	07/01/12	6.870	%		7,572
Bethesda Row	01/01/13	5.370	%		19,995
Bethesda Row	02/01/13	5.050	%		4,338
White Marsh Plaza (b)	04/01/13	6.040	%		9,926
Crow Canyon	08/11/13	5.400	%		20,918
Idylwood Plaza	06/05/14	7.500	%		16,852
Leesburg Plaza	06/05/14	7.500	%		29,322
Loehmann’s Plaza	06/05/14	7.500	%		37,917
Pentagon Row	06/05/14	7.500	%		54,431
Melville Mall (c)	09/01/14	5.250	%		23,954
THE AVENUE at White Marsh	01/01/15	5.460	%		59,214
Barracks Road	11/01/15	7.950	%		40,827
Hauppauge	11/01/15	7.950	%		15,391
Lawrence Park	11/01/15	7.950	%		28,938
Wildwood	11/01/15	7.950	%		25,436
Wynnewood	11/01/15	7.950	%		29,491
Brick Plaza	11/01/15	7.415	%		30,202
Rollingwood Apartments	05/01/19	5.540	%		23,956
Shoppers’ World	01/31/21	5.910	%		5,767
Mount Vernon (d)	04/15/28	5.660	%		11,385
Chelsea	01/15/31	5.360	%		7,989

Subtotal					542,446
Net unamortized discount					(420	)

Total mortgage loans					542,026				6.98	%

Notes payable
Unsecured fixed rate
Other	04/01/12	6.500	%		1,378
Perring Plaza renovation	01/31/13	10.000	%		1,010
Unsecured variable rate
Revolving credit facility (e)	07/27/10	LIBOR + 0.425	%		—
Term loan (f)	07/27/11	LIBOR + 3.000	%		372,000
Escondido (Municipal bonds) (g)	10/01/16	0.461	%		9,400

Total notes payable					383,788				5.37	%	(j	)

Senior notes and debentures
Unsecured fixed rate
8.75% notes (h)	12/01/09	8.750	%		123,589
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
5.95% notes	08/15/14	5.950	%		150,000
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	%		29,200
6.82% medium term notes	08/01/27	6.820	%		40,000

Subtotal					1,052,789
Net unamortized premium					1,027

Total senior notes and debentures					1,053,816				6.29	%

Capital lease obligations
Various	Various through 2106	Various			62,587				6.94	%

Total debt and capital lease obligations				$	2,042,217

Total fixed rate debt and capital lease obligations				$	1,660,817		81	%	6.54	%
Total variable rate debt					381,400		19	%	5.36	%	(j	)

TOTAL DEBT AND CAPITAL LEASES OBLIGATIONS				$	2,042,217		100	%	6.32	%


	Three months ended September 30,		Nine months ended September 30,
	2009	2008	2009	2008
Operational Statistics
Excluding litigation provision:
Ratio of EBITDA to combined fixed charges and preferred share dividends (k) (l)	2.67x	3.39x	2.94x	3.13x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (k) (l)	2.67x	3.11x	2.92x	3.03x
Including litigation provision:
Ratio of EBITDA to combined fixed charges and preferred share dividends (k)	2.66x	3.39x	2.69x	3.13x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (k)	2.66x	3.11x	2.68x	3.03x

Notes:

(a)	Mortgage loans do not include our 30% share ($24.4 million) of the $81.2 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.

(b)	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%.

(c)

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.

(d)	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.

(e)

The maximum amount drawn under our revolving credit facility during the three and nine months ended September 30, 2009 was $0 and $172.5 million, respectively. The weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.37% for the nine months ended September 30, 2009, respectively. This credit facility matures on July 27, 2010, subject to a one-year extension at our option.

(f)

The $372 million term loan bears interest at LIBOR, subject to a 1.5% floor, plus 300 basis points. The weighted average effective interest rate, before amortization of debt fees, was 4.63% for the period from the inception of the loan of May 4, 2009 through September 30, 2009. On October 27, 2009, we repaid $100 million of our existing $372 million term loan. Due to this repayment, approximately $1.4 million of unamortized debt fees were expensed in October 2009.

(g)	The bonds bear interest at a variable rate determined weekly which would enable the bonds to be remarketed at 100% of their principal amount.

(h)

On various dates from January 12, 2009 to April 1, 2009, we purchased and retired $11.1 million of our 8.75% notes. On June 4, 2009, we purchased and retired $40.3 million of our 8.75% notes as a part of a cash tender offer whereby we repaid the note at a 2% premium to par value. These notes were repaid with funds borrowed on our $300 million revolving credit facility and our $372 million term loan.

(i)	The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable.

(j)	The weighted average effective interest rate excludes $0.1 million in quarterly financing fees on our revolving credit facility which had a $0 balance on September 30, 2009.

(k)

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. EBITDA includes a $1.3 million gain on sale for the nine months ended September 30, 2009. Fixed charges include a $1.0 million net loss on early extinguishment of senior notes for the nine months ended September 30, 2009, primarily related to the cash tender offer for our 8.75% senior notes. Adjusted EBITDA is reconciled to net income attributable to the Trust in the Glossary of Terms.

(l)

Adjusted to exclude a $0.3 million and $21.1 million litigation provision charge for the three and nine months ended September 30, 2009, respectively, related to litigation regarding a parcel of land located adjacent to Santana Row as well as other costs related to the litigation and the appeal process.

Federal Realty Investment Trust

Summary of Debt Maturities

September 30, 2009

DEBT MATURITIES

(in thousands)

The following table reflects contractual debt maturities as of September 30, 2009. The pro-forma total debt maturity columns reflect the October 27, 2009 repayment of $100 million of our existing $372 million term loan that has an original maturity date of July 27, 2011 and the repayment of the $123.6 million of 8.75% notes that are due on December 1, 2009. Both repayments will use proceeds we received from the issuance of 2.0 million common shares and the $685 million of debt financings in 2009, $408 million of which was held as cash on our balance sheet as of September 30, 2009.


	As of September 30, 2009								Pro-forma
Year	Scheduled Amortization		Maturities			Total			Maturities		Total
2009	$	2,567	$	123,589		$	126,156		$	—	$	2,567
2010		12,235		—	(1)		12,235			—		12,235
2011		12,438		484,252			496,690			384,252		396,690
2012		12,691		181,916			194,607			181,916		194,607
2013		11,853		196,893			208,746			196,893		208,746
2014		10,225		297,864			308,089			297,864		308,089
2015		6,858		198,391			205,249			198,391		205,249
2016		2,902		134,400			137,302			134,400		137,302
2017		3,110		200,000			203,110			200,000		203,110
2018		3,321		—			3,321			—		3,321
Thereafter		53,067		93,038			146,105			93,038		146,105

Total	$	131,267	$	1,910,343		$	2,041,610	(2)	$	1,686,754	$	1,818,021

Notes:

(1)	Our $300 million four-year revolving credit facility matures on July 27, 2010, subject to a one-year extension at our option. As of September 30, 2009, there was $0 drawn under this credit facility.

(2)	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 September 30, 2009.

Federal Realty Investment Trust

Summary of Redevelopment Opportunities

September 30, 2009

Current Redevelopment Opportunities (1) ($ millions)


Property	Location	Opportunity	Projected ROI (2)		Projected Cost (1)		Cost to Date
Projects Anticipated to Stabilize in 2009 (3)
Hollywood Galaxy Building	Hollywood, CA	Re-tenanting three level entertainment center and converting project into urban neighborhood community center	12	%	$	16	$	14
Houston Street	San Antonio, TX	Construction of a new building with ground level leased to Walgreen’s pharmacy and office above	9	%	$	8	$	8
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	$	5

Subtotal: Projects Anticipated to Stabilize in 2009 (3) (4)			12	%	$	31	$	27

Projects Anticipated to Stabilize in 2010 (3)
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	8	%	$	42	$	32
Bethesda Row (Hampden Lane)	Bethesda, MD	Construction of new three level building leased to fitness center and 2 additional ground level retail spaces.	10	%	$	14	$	4
Barracks Road	Charlottesville, VA	Expansion of Bed, Bath and Beyond and creation of 2 additional small shop spaces, utilizing vacant anchor space.	10	%	$	3	$	1
Lancaster	Lancaster, PA	Renovation and expansion of existing grocer, new bank pad, and façade renovation	10	%	$	2	$	0
Langhorne	Levittown, PA	Pad site addition leased to T-Mobile	10	%	$	2	$	0
Crossroads	Highland Park, IL	Bank pad addition	9	%	$	1	$	1

Subtotal: Projects Anticipated to Stabilize in 2010 (3) (4)			9	%	$	64	$	38

Total: Projects Anticipated to Stabilize in 2009 and 2010 (3) (4) (5)			10	%	$	95	$	65


Potential future redevelopment pipeline includes (6):

Property	Location	Opportunity
Assembly Square	Somerville, MA	Potential substantial transit oriented mixed-use development
Assembly Square Mall	Somerville, MA	Pad site addition
Bala Cynwyd	Bala Cynwyd, PA	Potential redevelopment of nine acres of land for a transit oriented mixed-use project or retail center
Brick Plaza	Brick, NJ	Redevelopment and expansion of existing pad site, plus additional pad site
Chelsea Commons	Chelsea, MA	Redevelopment of vacant building in preparation for lease with Planet Fitness
Crossroads	Highland Park, IL	Backfill vacant anchor space and 3 small shop spaces with LA Fitness
Federal Plaza	Rockville, MD	Pad building opportunities
Flourtown	Flourtown, PA	Anchor re-tenanting, small shop renovation, and site improvements
Hollywood Peterson Building	Hollywood, CA	Co-terminus leases create potential for property redevelopment and expansion
Huntington	Huntington, NY	Pad site additions
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
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
Troy	Parsippany, NJ	Pad site addition
Westgate	San Jose, CA	Convert 30,000 square feet of basement space to leasable area

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.

Federal Realty Investment Trust

Real Estate Status Report

September 30, 2009


Property Name		MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)		GLA (2)	% Leased		Grocery Anchor GLA (3)	Grocery Anchor (3)	Other Principal Tenants
				(in thousands)		(in thousands)
Washington Metropolitan Area
Bethesda Row	(4)	Washington, DC-MD-VA	1993-2006/2008	$	189,118	$	25,364	519,000	96	%	40,000	Giant Food	Barnes & Noble / Landmark Theater
Congressional Plaza	(5)	Washington, DC-MD-VA	1965		70,579			332,000	97	%	28,000	Whole Foods	Buy Buy Baby / Container Store
Courthouse Center		Washington, DC-MD-VA	1997		4,233			37,000	88	%
Falls Plaza/Falls Plaza-East		Washington, DC-MD-VA	1967-1972		11,920			144,000	99	%	51,000	Giant Food	CVS / Staples
Federal Plaza		Washington, DC-MD-VA	1989		62,167		32,683	248,000	96	%			TJ Maxx / Micro Center / Ross
Friendship Center		Washington, DC-MD-VA	2001		33,426			118,000	66	%			Borders / Maggiano’s
Gaithersburg Square		Washington, DC-MD-VA	1993		24,088			209,000	76	%			Bed, Bath & Beyond / Ross
Idylwood Plaza		Washington, DC-MD-VA	1994		15,705		16,852	73,000	89	%	30,000	Whole Foods
Laurel		Washington, DC-MD-VA	1986		47,785			386,000	98	%	61,000	Giant Food	Marshalls
Leesburg Plaza	(6)	Washington, DC-MD-VA	1998		34,484		29,322	236,000	98	%	55,000	Giant Food	Petsmart / Pier One / Office Depot
Loehmann’s Plaza		Washington, DC-MD-VA	1983		32,634		37,917	268,000	94	%	58,000	Giant Food	Bally Total Fitness / Loehmann’s
Mid-Pike Plaza		Washington, DC-MD-VA	1982/2007		45,014			309,000	85	%			Toys R Us / Bally Total Fitness / AC Moore
Mount Vernon/South Valley/7770 Richmond Hwy	(6)	Washington, DC-MD-VA	2003-2006		77,393		11,385	565,000	95	%	62,000	Shoppers Food Warehouse	Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold’s Gym
Old Keene Mill		Washington, DC-MD-VA	1976		5,846			92,000	93	%	24,000	Whole Foods
Pan Am		Washington, DC-MD-VA	1993		28,283			227,000	100	%	63,000	Safeway	Micro Center / Michaels
Pentagon Row		Washington, DC-MD-VA	1998		87,928		54,431	296,000	99	%	45,000	Harris Teeter	Bally Total Fitness / Bed, Bath & Beyond / DSW / Cost Plus World Market
Pike 7		Washington, DC-MD-VA	1997		34,863			164,000	95	%			DSW / Staples / TJ Maxx
Quince Orchard		Washington, DC-MD-VA	1993		21,370			248,000	71	%	24,000	Magruders	Staples
Rockville Town Square		Washington, DC-MD-VA	2006-2007		37,028			182,000	97	%			CVS / Gold’s Gym
Rollingwood Apartments		Washington, DC-MD-VA	1971		7,629		23,956	N/A	93	%
Sam’s Park & Shop		Washington, DC-MD-VA	1995		12,088			49,000	98	%			Petco
Tower		Washington, DC-MD-VA	1998		20,050			112,000	91	%			Talbots
Tyson’s Station		Washington, DC-MD-VA	1978		3,670		5,942	49,000	100	%			Trader Joes
Village at Shirlington	(4)	Washington, DC-MD-VA	1995		51,642		6,283	248,000	97	%	28,000	Harris Teeter	AMC Loews / Carlyle Grand Café
Wildwood		Washington, DC-MD-VA	1969		17,596		25,436	84,000	97	%	20,000	Balducci’s	CVS

		Total Washington Metropolitan Area			976,539			5,195,000	93	%
Philadelphia Metropolitan Area
Andorra		Philadelphia, PA-NJ	1988		23,291			267,000	93	%	24,000	Acme Markets	Kohl’s / Staples / L.A. Fitness
Bala Cynwyd		Philadelphia, PA-NJ	1993		34,368			282,000	100	%	45,000	Acme Markets	Lord & Taylor / L.A. Fitness
Ellisburg Circle		Philadelphia, PA-NJ	1992		27,707			268,000	100	%	47,000	Genuardi’s	Buy Buy Baby / Stein Mart
Feasterville		Philadelphia, PA-NJ	1980		11,883			111,000	89	%	53,000	Genuardi’s	OfficeMax
Flourtown		Philadelphia, PA-NJ	1980		15,490			192,000	86	%	42,000	Genuardi’s
Langhorne Square		Philadelphia, PA-NJ	1985		19,041			216,000	95	%	55,000	Redner’s Warehouse Mkts.	Marshalls
Lawrence Park		Philadelphia, PA-NJ	1980		29,723		28,938	353,000	98	%	53,000	Acme Markets	CHI / TJ Maxx / HomeGoods
Northeast		Philadelphia, PA-NJ	1983		23,002			285,000	90	%			Burlington Coat / Marshalls
Town Center of New Britain		Philadelphia, PA-NJ	2006		14,361			125,000	81	%	36,000	Giant Food	Rite Aid
Willow Grove		Philadelphia, PA-NJ	1984		27,330			216,000	97	%			Barnes & Noble / Marshalls
Wynnewood		Philadelphia, PA-NJ	1996		36,547		29,491	255,000	97	%	98,000	Genuardi’s	Bed, Bath & Beyond / Borders / Old Navy

		Total Philadelphia Metropolitan Area			262,743			2,570,000	95	%
California
Colorado Blvd		Los Angeles-Long Beach, CA	1996-1998		16,583			69,000	98	%			Pottery Barn / Banana Republic
Crow Canyon		San Ramon, CA	2005-2007		65,062		20,918	242,000	94	%	58,000	Save Mart	Loehmann’s / Rite Aid
Escondido	(7)	San Diego, CA	1996		28,592			222,000	95	%			Cost Plus World Market / TJ Maxx / Toys R Us
Fifth Ave		San Diego, CA	1996-1997		12,969			51,000	97	%			Urban Outfitters
Hermosa Ave		Los Angeles-Long Beach, CA	1997		5,423			22,000	72	%
Hollywood Blvd	(8)	Los Angeles-Long Beach, CA	1999		37,701			153,000	84	%			DSW / L.A. Fitness
Kings Court	(6)	San Jose, CA	1998		11,594			79,000	100	%	25,000	Lunardi’s Super Market	CVS
Old Town Center		San Jose, CA	1997		34,056			96,000	95	%			Borders / Gap Kids / Banana Republic
Santana Row		San Jose, CA	1997		533,772			565,000	97	%			Crate & Barrel / Container Store / Best Buy / Borders / CineArts Theatre
Third St Promenade		Los Angeles-Long Beach, CA	1996-2000		78,225			211,000	98	%			J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate		San Jose, CA	2004		116,410			645,000	95	%	38,000	Safeway	Target / Burlington Coat Factory / Barnes & Noble / Ross
150 Post Street		San Francisco, CA	1997		37,562			102,000	97	%			Brooks Brothers / H & M

		Total California			977,949			2,457,000	95	%
New York / New Jersey
Brick Plaza		Monmouth-Ocean, NJ	1989		56,962		30,202	409,000	100	%	66,000	A&P	AMC Loews / Barnes & Noble / Sports Authority
Forest Hills		New York, NY	1997		8,098			46,000	100	%			Midway Theatre
Fresh Meadows		New York, NY	1997		69,185			403,000	97	%	15,000	Island of Gold	Kohl’s / AMC Loews
Hauppauge		Nassau-Suffolk, NY	1998		27,923		15,391	133,000	100	%	61,000	Shop Rite	AC Moore
Huntington		Nassau-Suffolk, NY	1988/2007		38,668			292,000	100	%			Buy Buy Baby / Toys R Us / Bed, Bath & Beyond / Barnes & Noble
Melville Mall	(9)	Nassau-Suffolk, NY	2006		68,643		23,954	248,000	100	%	54,000	Waldbaum’s	Kohl’s / Marshalls
Mercer Mall	(4)	Trenton, NJ	2003		103,990		50,366	501,000	93	%	75,000	Shop Rite	Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
Troy		Newark, NJ	1980		25,169			207,000	86	%	64,000	Pathmark	L.A. Fitness

		Total New York / New Jersey			398,638			2,239,000	97	%

Federal Realty Investment Trust

Real Estate Status Report

September 30, 2009


Property Name			MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)		GLA (2)	% Leased		Grocery Anchor GLA (3)	Grocery Anchor (3)	Other Principal Tenants
					(in thousands)		(in thousands)
New England
Assembly Square			Boston-Cambridge-Quincy, MA-NH	2005-2008		153,628			332,000	100	%			AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons			Boston-Cambridge-Quincy, MA-NH	2006-2008		29,146		7,989	222,000	98	%	16,000	Sav-A-Lot	Home Depot
Dedham Plaza			Boston-Cambridge-Quincy, MA-NH	1993		31,842			242,000	89	%	80,000	Star Market
Linden Square			Boston-Cambridge-Quincy, MA-NH	2006-2007		142,254			217,000	84	%	50,000	Roche Brothers Supermarkets	CVS / Fitness Club for Women / Wellesley Volkswagen, Buick
North Dartmouth			Boston-Cambridge-Quincy, MA-NH	2006		9,368			48,000	100	%	48,000	Stop & Shop
Queen Anne Plaza			Boston-Cambridge-Quincy, MA-NH	1994		15,659			149,000	100	%	50,000	Hannaford	TJ Maxx
Saugus Plaza			Boston-Cambridge-Quincy, MA-NH	1996		13,701			171,000	94	%	55,000	Super Stop & Shop	Kmart

			Total New England			395,598			1,381,000	95	%
Baltimore
Governor Plaza			Baltimore, MD	1985		22,059			269,000	100	%	16,500	Aldi	Bally Total Fitness / Office Depot
Perring Plaza			Baltimore, MD	1985		26,970			401,000	98	%	58,000	Shoppers Food Warehouse	Home Depot / Burlington Coat Factory / Jo-Ann Stores
THE AVENUE at White Marsh	(10	)	Baltimore, MD	2007		94,524		59,214	298,000	95	%			AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square			Baltimore, MD	2007		27,569			52,000	100	%
White Marsh Plaza			Baltimore, MD	2007		24,927		9,926	80,000	98	%	54,000	Giant Food
White Marsh Other			Baltimore, MD	2007		28,896			49,000	100	%

			Total Baltimore			224,945			1,149,000	98	%
Chicago
Crossroads			Chicago, IL	1993		23,520			168,000	92	%			Golfsmith / Guitar Center
Finley Square			Chicago, IL	1995		31,322			315,000	99	%			Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market			Chicago, IL	1994		11,835			140,000	96	%	63,000	Dominick’s	Walgreens
North Lake Commons			Chicago, IL	1994		13,837			129,000	89	%	77,000	Dominick’s

			Total Chicago			80,514			752,000	95	%
South Florida
Courtyard Shops			Miami-Ft Lauderdale	2008		38,808		7,572	130,000	91	%	49,000	Publix
Del Mar Village			Miami-Ft Lauderdale	2008		53,983			178,000	94	%	44,000	Winn Dixie	CVS

			Total South Florida			92,791			308,000	93	%
Other
Barracks Road			Charlottesville, VA	1985		45,917		40,827	487,000	96	%	99,000	Harris Teeter / Kroger	Bed, Bath & Beyond / Barnes & Noble / Old Navy
Bristol Plaza			Hartford, CT	1995		27,336			272,000	84	%	74,000	Stop & Shop	TJ Maxx
Eastgate			Raleigh-Durham-Chapel Hill, NC	1986		25,801			153,000	99	%			Stein Mart
Gratiot Plaza			Detroit, MI	1973		18,674			217,000	99	%	69,000	Kroger	Bed, Bath & Beyond / Best Buy / DSW
Greenwich Avenue			New Haven-Bridgeport-Stamford-Waterbury	1995		13,942			36,000	100	%			Saks Fifth Avenue
Houston St			San Antonio, TX	1998		69,661			196,000	82	%			Hotel Valencia
Lancaster	(11	)	Lancaster, PA	1980		10,980		4,907	107,000	84	%	39,000	Giant Food	Michaels
Shoppers’ World			Charlottesville, VA	2007		29,625		5,767	169,000	95	%	28,000	Whole Foods	Staples
Shops at Willow Lawn			Richmond-Petersburg, VA	1983		76,111			476,000	87	%	60,000	Kroger	Old Navy / Staples / Ross

			Total Other			318,047			2,113,000	91	%

Grand Total					$	3,727,764	$	605,033	18,164,000	94	%

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)	The Trust has a 70% ownership interest in the property.

(8)	The Trust has a 90% ownership interest in the property.

(9)	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.

(10)	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.

(11)	Property subject to capital lease obligation.

Federal Realty Investment Trust

Retail Leasing Summary (1)

September 30, 2009

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)	Tennant Improvements & Incentives (6)		Tennant Improvements & Incentives Per Sq. Ft.
3rd Quarter 2009	90	100	%	334,690	$	29.38	$	27.00	$	794,017	9	%	17	%	7.5	$	3,416,213	$	10.21
2nd Quarter 2009	69	100	%	315,214	$	26.87	$	23.25	$	1,141,114	16	%	29	%	5.9	$	1,194,192	$	3.79
1st Quarter 2009	68	100	%	232,105	$	31.42	$	26.99	$	1,029,234	16	%	26	%	6.1	$	2,413,756	$	10.40
4th Quarter 2008	74	100	%	329,622	$	21.62	$	19.18	$	803,054	13	%	24	%	5.0	$	1,733,441	$	5.26

Total - 12 months	301	100	%	1,211,631	$	27.00	$	23.89	$	3,767,419	13	%	24	%	6.2	$	8,757,602	$	7.23

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.
3rd Quarter 2009	38	42	%	187,140	$	27.25	$	22.62	$	866,840		20	%	30	%	9.8	$	3,353,613	$	17.92
2nd Quarter 2009	26	38	%	73,693	$	24.27	$	27.68	$	(251,200	)	-12	%	6	%	6.8	$	1,194,192	$	16.20
1st Quarter 2009	24	35	%	73,535	$	32.54	$	32.28	$	19,630		1	%	12	%	9.2	$	2,398,456	$	32.62
4th Quarter 2008	15	20	%	67,903	$	28.76	$	24.20	$	309,271		19	%	37	%	8.7	$	1,583,441	$	23.32

Total - 12 months	103	34	%	402,271	$	27.93	$	25.58	$	944,541		9	%	22	%	9.0	$	8,529,702	$	21.20

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.
3rd Quarter 2009	52	58	%	147,550	$	32.08	$	32.57	$	(72,823	)	-2	%	5	%	5.1	$	62,600	$	0.42
2nd Quarter 2009	43	62	%	241,521	$	27.66	$	21.89	$	1,392,314		26	%	38	%	5.6	$	—	$	—
1st Quarter 2009	44	65	%	158,570	$	30.90	$	24.53	$	1,009,604		26	%	35	%	4.6	$	15,300	$	0.10
4th Quarter 2008	59	80	%	261,719	$	19.76	$	17.88	$	493,783		11	%	20	%	3.6	$	150,000	$	0.57

Total - 12 months	198	66	%	809,360	$	26.55	$	23.06	$	2,822,878		15	%	24	%	4.8	$	227,900	$	0.28

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.
3rd Quarter 2009	94	356,624	$	28.76	7.6	$	4,434,756	$	12.44
2nd Quarter 2009	71	318,703	$	27.03	5.9	$	1,503,836	$	4.72
1st Quarter 2009	69	233,172	$	31.35	6.1	$	2,430,940	$	10.43
4th Quarter 2008	78	334,127	$	21.92	5.0	$	1,898,706	$	5.68

Total - 12 months	312	1,242,626	$	26.96	6.3	$	10,268,238	$	8.26

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.

Federal Realty Investment Trust

Lease Expirations

September 30, 2009

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)
2009	16,000	0	%	$	19.00	245,000	3	%	$	24.00	261,000	2	%	$	23.69
2010	330,000	3	%	$	12.26	745,000	10	%	$	29.19	1,075,000	6	%	$	24.00
2011	891,000	9	%	$	13.97	1,138,000	15	%	$	30.43	2,029,000	12	%	$	23.20
2012	978,000	10	%	$	13.16	1,132,000	15	%	$	30.48	2,110,000	12	%	$	22.45
2013	1,067,000	11	%	$	15.30	1,003,000	14	%	$	31.78	2,070,000	12	%	$	23.28
2014	1,398,000	15	%	$	15.86	807,000	11	%	$	33.02	2,205,000	13	%	$	22.14
2015	735,000	8	%	$	14.13	581,000	8	%	$	28.02	1,316,000	8	%	$	20.26
2016	464,000	5	%	$	17.42	478,000	6	%	$	30.06	941,000	6	%	$	23.86
2017	620,000	7	%	$	17.12	420,000	6	%	$	29.84	1,039,000	6	%	$	22.28
2018	672,000	7	%	$	11.56	286,000	4	%	$	35.25	958,000	6	%	$	18.63
Thereafter	2,351,000	25	%	$	16.62	587,000	8	%	$	34.61	2,938,000	17	%	$	20.21

Total (3)	9,522,000	100	%	$	15.13	7,422,000	100	%	$	30.84	16,942,000	100	%	$	22.01

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)
2009	—	0	%	$	—	157,000	2	%	$	22.14	157,000	1	%	$	22.14
2010	144,000	2	%	$	11.22	489,000	7	%	$	29.63	633,000	4	%	$	25.44
2011	224,000	2	%	$	9.84	640,000	9	%	$	29.06	865,000	5	%	$	24.05
2012	218,000	2	%	$	16.15	664,000	9	%	$	31.86	882,000	5	%	$	27.98
2013	173,000	2	%	$	16.00	539,000	7	%	$	32.04	711,000	4	%	$	28.18
2014	225,000	2	%	$	10.20	511,000	7	%	$	34.33	735,000	4	%	$	26.99
2015	134,000	1	%	$	18.04	431,000	6	%	$	27.52	565,000	3	%	$	25.27
2016	205,000	2	%	$	18.70	446,000	6	%	$	31.19	651,000	4	%	$	27.26
2017	152,000	2	%	$	24.42	533,000	7	%	$	30.15	686,000	4	%	$	28.83
2018	305,000	3	%	$	13.91	428,000	6	%	$	36.00	733,000	4	%	$	26.81
Thereafter	7,742,000	82	%	$	15.17	2,584,000	34	%	$	30.60	10,324,000	62	%	$	19.04

Total (3)	9,522,000	100	%	$	15.13	7,422,000	100	%	$	30.84	16,942,000	100	%	$	22.01

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 September 30, 2009.

(3)	Represents occupied square footage as of September 30, 2009.

Federal Realty Investment Trust

Portfolio Leased Statistics

September 30, 2009

Overall Portfolio Statistics (1)


	At September 30, 2009				At September 30, 2008
Type	Size	Leased	Leased %		Size	Leased	Leased %
Retail Properties (2) (sf)	18,164,000	17,110,000	94.2	%	18,130,000	17,323,000	95.5	%
Residential Properties (3) (units)	903	840	93.0	%	723	700	96.8	%

Same Center Statistics (1)
	At September 30, 2009				At September 30, 2008
Type	Size	Leased	Leased %		Size	Leased	Leased %
Retail Properties (2) (4) (sf)	17,246,000	16,282,000	94.4	%	17,250,000	16,530,000	95.8	%
Residential Properties (3) (units)	723	670	92.7	%	723	700	96.8	%

Notes:

(1)	See Glossary of Terms.

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

(3)

Overall portfolio and Same Center statistics at September 30, 2009 and 2008 include Rollingwood, The Crest at Congressional and the residential rental units at Santana Row. Overall portfolio statistics as of September 30, 2009, include the 180 residential units at Arlington East (Bethesda Row) which were first delivered in May 2008 and continued to be delivered through 2008.

(4)	Excludes properties purchased, sold or under redevelopment.

Federal Realty Investment Trust

Summary of Top 25 Tenants

September 30, 2009


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.	$	9,751,000		2.61	%	647,000		3.56	%	15
2	Ahold USA, Inc.	$	8,407,000		2.25	%	571,000		3.14	%	11
3	TJX Companies	$	7,029,000		1.88	%	540,000		2.97	%	15
4	Safeway, Inc.	$	6,751,000		1.81	%	481,000		2.65	%	9
5	Gap, Inc.	$	6,481,000		1.74	%	220,000		1.21	%	11
6	CVS Corporation	$	6,219,000		1.67	%	205,000		1.13	%	18
7	Barnes & Noble, Inc.	$	4,725,000		1.27	%	201,000		1.11	%	8
8	OPNET Technologies, Inc.	$	3,754,000		1.01	%	83,000		0.46	%	2
9	Staples, Inc.	$	3,479,000		0.93	%	187,000		1.03	%	9
10	Best Buy Stores, L.P.	$	3,459,000		0.93	%	99,000		0.55	%	3
11	DSW, Inc	$	3,294,000		0.88	%	125,000		0.69	%	5
12	Supervalu Inc.(Acme/Sav-A-Lot/Star Mkt/Shoppers Food)	$	3,227,000		0.87	%	338,000		1.86	%	7
13	Wells Fargo Bank, N.A. (includes Wachovia Corporation)	$	3,091,000		0.83	%	70,000		0.39	%	15
14	L.A. Fitness International LLC	$	3,061,000		0.82	%	178,000		0.98	%	4
15	Ross Stores, Inc.	$	2,895,000		0.78	%	149,000		0.82	%	5
16	Home Depot, Inc.	$	2,832,000		0.76	%	335,000		1.84	%	4
17	Kohl’s Corporation	$	2,793,000		0.75	%	322,000		1.77	%	3
18	Wakefern Food Corporation	$	2,783,000		0.75	%	136,000		0.75	%	2
19	Bank of America, N.A.	$	2,780,000		0.75	%	64,000		0.35	%	19
20	Bally Total Fitness Corporation	$	2,608,000		0.70	%	156,000		0.86	%	5
21	Great Atlantic & Pacific Tea Co	$	2,517,000		0.67	%	217,000		1.19	%	4
22	Container Store, Inc.	$	2,496,000		0.67	%	52,000		0.29	%	2
23	A.C. Moore, Inc.	$	2,483,000		0.67	%	141,000		0.78	%	6
24	AMC Entertainment Inc.	$	2,378,000		0.64	%	166,000		0.91	%	4
25	Dollar Tree Stores, Inc.	$	2,357,000		0.63	%	158,000		0.87	%	14


	Totals - Top 25 Tenants	$	101,650,000		27.27	%	5,841,000		32.16	%	200


	Total: (1)	$	372,929,000	(2)			18,164,000	(3)			2,434

Notes:

(1)	Does not include amounts related to leases these tenants have with our partnership with a discretionary fund created and advised by ING Clarion Partners.

(2)	Reflects annual in-place contractual (cash-basis) rent as of September 30, 2009.

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

Federal Realty Investment Trust

Reconciliation of Net Income to FFO Guidance

September 30, 2009


	2009 Guidance
	(Dollars in millions except per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income attributable to the Trust	$	92		$	93
Gain on sale of real estate		(1	)		(1	)
Depreciation and amortization of real estate & real estate partnership assets		105			105
Amortization of initial direct costs of leases		9			9

Funds from operations		205			206
Dividends on preferred stock		(1	)		(1	)
Income attributable to operating partnership units		1			1
Income attributable to unvested shares		(1	)		(1	)

FFO		204			206
Litigation provision (2)		21			21

FFO excluding litigation provision	$	226		$	227

Weighted average number of common shares, diluted		60.2			60.2
FFO per diluted share	$	3.40		$	3.42
Litigation provision (2)		0.35			0.35

FFO per diluted share excluding litigation provision	$	3.75		$	3.77


	2010 Guidance
	(Dollars in millions except per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income attributable to the Trust	$	118		$	123
Gain on sale of real estate		—			—
Depreciation and amortization of real estate & real estate partnership assets		107			107
Amortization of initial direct costs of leases		9			9

Funds from operations		234			239
Dividends on preferred stock		(1	)		(1	)
Income attributable to operating partnership units		1			1
Income attributable to unvested shares		(1	)		(1	)

FFO		233			238
Litigation provision (2)		1			1

FFO excluding litigation provision	$	234		$	239

Weighted average number of common shares, diluted		61.6			61.6
FFO per diluted share	$	3.79		$	3.87
Litigation provision (2)		0.01			0.01

FFO per diluted share excluding litigation provision	$	3.80		$	3.88

Notes:

(1)	Individual items may not add up to total due to rounding.

(2)	Amount represents a charge for litigation regarding a parcel of land located adjacent to Santana Row as well as other costs related to the litigation and appeal process.

Federal Realty Investment Trust

Summarized Income Statements and Balance Sheets - Joint Venture

September 30, 2009

CONSOLIDATED INCOME STATEMENTS


	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008
	(in thousands)						(in thousands)
Revenues
Rental income	$	4,377		$	4,730		$	13,832		$	14,107
Other property income		650			57			691			166

		5,027			4,787			14,523			14,273
Expenses
Rental		734			719			2,646			2,264
Real estate taxes		589			523			1,661			1,483
Depreciation and amortization		1,278			1,193			3,764			3,570

		2,601			2,435			8,071			7,317

Operating income		2,426			2,352			6,452			6,956
Interest expense		(1,131	)		(1,134	)		(3,396	)		(3,404	)

Net income	$	1,295		$	1,218		$	3,056		$	3,552

CONSOLIDATED BALANCE SHEETS


	September 30, 2009			December 31, 2008
	(in thousands)
ASSETS
Real estate, at cost	$	202,764		$	202,519
Less accumulated depreciation and amortization		(18,174	)		(14,609	)

Net real estate		184,590			187,910
Cash and cash equivalents		2,962			2,604
Other assets		7,020			7,066

TOTAL ASSETS	$	194,572		$	197,580

LIABILITIES AND PARTNERS’ CAPITAL
Liabilities
Mortgages payable	$	81,227		$	81,365
Other liabilities		6,008			7,363

Total liabilities		87,235			88,728
Partners’ capital		107,337			108,852

TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	194,572		$	197,580

Federal Realty Investment Trust

Summary of Outstanding Debt and Debt Maturities - Joint Venture

September 30, 2009

OUTSTANDING DEBT


	Maturity	Stated Interest Rate as of September 30, 2009		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)		12,942
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			$	81,227

Debt Maturities

(in thousands)


Year	Scheduled Amortization		Maturities		Total		Percent of Debt Maturing		Cumulative Percent of Debt Maturing
2009	$	47	$	23,400	$	23,447	28.9	%	28.9	%
2010		196		—		196	0.2	%	29.1	%
2011		208		—		208	0.3	%	29.4	%
2012		220		—		220	0.3	%	29.7	%
2013		233		—		233	0.3	%	30.0	%
2014		142		22,396		22,538	27.7	%	57.7	%
2015		—		—		—	0.0	%	57.7	%
2016		—		34,385		34,385	42.3	%	100.0	%

Total	$	1,046	$	80,181	$	81,227	100.0	%

Notes:

(a)	Interest only until maturity.

(b)	Effective July 5, 2007, principal and interest payments are 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%.

Federal Realty Investment Trust

Real Estate Status Report - Joint Venture

September 30, 2009


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)
Washington Metropolitan Area
Barcroft Plaza	Washington, DC-MD-VA	2006-2007	$	34,059	$	20,785	100,000	90	%	46,000	Harris Teeter	Bank of America
Free State Shopping Center	Washington, DC-MD-VA	2007		65,811			279,000	89	%	73,000	Giant Food	TJ Maxx /Ross / Office Depot
Plaza del Mercado	Washington, DC-MD-VA	2004		21,183		12,942	96,000	93	%	25,000	Giant Food	CVS

	Total Washington Metropolitan Area			121,053			475,000	90	%
New York / New Jersey
Greenlawn Plaza	Nassau-Suffolk, NY	2006		19,983		13,600	106,000	99	%	46,000	Waldbaum’s	Tuesday Morning

	Total New York / New Jersey			19,983			106,000	99	%
New England
Atlantic Plaza	Boston-Worcester- Lawrence-Lowell- Brockton, MA	2004		16,521		10,500	124,000	39	%			Sears
Campus Plaza	Boston-Worcester- Lawrence-Lowell- Brockton, MA	2004		22,196		11,000	116,000	95	%	46,000	Roche Brothers	Burlington Coat Factory
Pleasant Shops	Boston-Worcester- Lawrence-Lowell- Brockton, MA	2004		23,011		12,400	129,000	95	%	38,000	Foodmaster	Marshalls

	Total New England			61,728			369,000	76	%

Grand Totals			$	202,764	$	81,227	950,000	86	%

Note:

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

Glossary of Terms

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that means net income or loss attributable to the Trust 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 it approximates a key performance measure in our debt covenants, but it 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 attributable to the Trust for the three and nine months ended September 30, 2009 and 2008 is as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	(in thousands)						(in thousands)
Net income attributable to the Trust	$	27,433		$	37,102		$	66,334		$	96,062
Depreciation and amortization		28,410			28,643			86,635			81,838
Interest expense		30,209			25,337			79,622			74,166
Early extinguishment of senior notes		—			—			968			—
Other interest income		(924	)		(116	)		(1,274	)		(666	)

EBITDA		85,128			90,966			232,285			251,400
Gain on sale of real estate		—			(7,438	)		(1,298	)		(7,438	)

Adjusted EBITDA	$	85,128		$	83,528		$	230,987		$	243,962

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: net income, computed in accordance with GAAP plus 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 primarily because it 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.