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) March 31, 2012
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 May 7, 2012, 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 March 31, 2012. 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 March 31, 2012 (including press release dated May 7, 2012)
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: May 7, 2012 /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 March 31, 2012
FEDERAL REALTY INVESTMENT TRUST | |||
SUPPLEMENTAL INFORMATION | |||
March 31, 2012 | |||
TABLE OF CONTENTS | |||
1 | First Quarter 2012 Earnings Press Release | ||
2 | Financial Highlights | ||
Summarized Income Statements | |||
Summarized Balance Sheets | |||
Funds From Operations / Summary of Capital Expenditures | |||
Market Data | |||
Components of Rental Income | |||
3 | Summary of Debt | ||
Summary of Outstanding Debt and Capital Lease Obligations | |||
Summary of Debt Maturities | |||
4 | Summary of Development and Redevelopment Opportunities | ||
5 | Future Development Opportunities | ||
6 | Real Estate Status Report | ||
7 | Retail Leasing Summary | ||
8 | Lease Expirations | ||
9 | Portfolio Leased Statistics | ||
10 | Summary of Top 25 Tenants | ||
11 | Reconciliation of Net Income to FFO Guidance | ||
12 | 30% Owned Joint Venture Disclosure | ||
Summarized Income Statements and Balance Sheets | |||
Summary of Outstanding Debt and Debt Maturities | |||
Real Estate Status Report | |||
13 | Glossary of Terms | ||
1626 East Jefferson Street | |||
Rockville, Maryland 20852-4041 | |||
301/998-8100 | |||
1
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 16, 2012, 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 redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected; |
• | risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded; |
• | 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 costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, 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 associated with general economic conditions, including local economic conditions in our geographic markets; |
• | 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 16, 2012.
2
FOR IMMEDIATE RELEASE
Media Inquiries | Investor Inquiries |
Andrea Simpson | Kristina Lennox |
Director, Marketing | Investor Relations Coordinator |
617/684-1511 | 301/998-8265 |
asimpson@federalrealty.com | klennox@federalrealty.com |
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FIRST QUARTER 2012 OPERATING RESULTS
-Strong leasing results and occupancy gains drive increased 2012 guidance-
ROCKVILLE, Md. (May 7, 2012) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2012.
Financial Results
For first quarter 2012, Federal Realty generated funds from operations available for common shareholders (FFO) of $66.7 million, or $1.04 per diluted share compared to $61.3 million, or $0.99 per diluted share, in first quarter 2011. Net income available for common shareholders was $42.9 million and earnings per diluted share was $0.67 for first quarter 2012 versus $31.1 million and $0.50, respectively, for first quarter 2011.
FFO is a non-GAAP supplemental earnings measure defined by the National Association of Real Estate Investment Trusts which the Trust considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release.
Portfolio Results
In first quarter 2012, same-center property operating income increased 5.9% including redevelopment and expansion properties, and increased 5.5% excluding redevelopment and expansion properties, compared to first quarter 2011.
The overall portfolio was 93.8% leased as of March 31, 2012, compared to 93.4% on December 31, 2011 and 93.8% on March 31, 2011. Federal Realty's same-center portfolio was 94.3% leased on March 31, 2012, compared to 93.9% on December 31, 2011 and 94.4% on March 31, 2011.
During first quarter 2012, the Trust signed 97 leases for 472,501 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 461,088 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 17%. The average contractual rent on this comparable space for the first year of the new lease is $31.66 per square foot compared to
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2012 OPERATING RESULTS
May 7, 2012
Page 2
the average contractual rent of $27.15 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 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 24% for first quarter 2012.
Guidance
Federal Realty's 2012 guidance for FFO per diluted share was increased to a range of $4.24 to $4.29 (previously $4.19 to $4.25) and 2012 earnings per diluted share guidance was increased to $2.29 to $2.34.
“In the first quarter of 2012, we continued to successfully execute all aspects of the Trust's business plan,” commented Donald C. Wood, president and chief executive officer of Federal Realty. “Our quality portfolio produced strong leasing results and occupancy improvements; we successfully integrated both Plaza El Segundo and Montrose Crossing into the core portfolio and continue to advance development at Assembly Row, Pike & Rose and Santana Row. This positive momentum provides the basis for our increased 2012 guidance.”
Summary of Other Quarterly Activities and Recent Developments
•April 24, 2012 - Standard & Poor's Ratings Services revised its outlook on Federal Realty from Stable to Positive and affirmed the Trusts BBB+ ratings on the company's Unsecured Notes.
•April 26, 2012 - Fitch Ratings upgraded the Issuer Default Rating, Unsecured Revolving Credit Facility and Senior Unsecured Notes ratings for Federal Realty from BBB+ to A-. Fitch stated, “The rating actions are driven by the company's prudent balance sheet management and the high quality and consistent cash flow streams provided by FRT's community shopping centers.”
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 $0.69 per share on its common shares, resulting in an indicated annual rate of $2.76 per share. The regular common dividend will be payable on July 16, 2012 to common shareholders of record on June 22, 2012.
Conference Call Information
Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its first quarter 2012 earnings conference call, which is scheduled for May 8, 2012, at 11 a.m. Eastern Daylight Time. To participate, please call (866) 272-9941 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 June 8, 2012, by dialing (888) 286-8010 and using the passcode 97515532.
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2012 OPERATING RESULTS
May 7, 2012
Page 3
About Federal Realty
In 2012, Federal Realty celebrates 50 years of being a proven leader in the ownership, operation, and redevelopment of high quality retail real estate in the country's best markets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 19.2 million square feet located primarily in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in 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 93.8% leased to national, regional, and local retailers as of March 31, 2012, with no single tenant accounting for more than approximately 2.5% 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 44 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 16, 2012, 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 we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
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 associated with general economic conditions, including local economic conditions in our geographic markets;
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 with the Securities and Exchange Commission on February 16, 2012.
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Federal Realty Investment Trust | ||||||||
Summarized Income Statements | ||||||||
March 31, 2012 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Revenue | ||||||||
Rental income | $ | 140,661 | $ | 134,438 | ||||
Other property income | 4,362 | 2,090 | ||||||
Mortgage interest income | 1,266 | 1,121 | ||||||
Total revenue | 146,289 | 137,649 | ||||||
Expenses | ||||||||
Rental expenses | 26,110 | 29,402 | ||||||
Real estate taxes | 16,057 | 15,407 | ||||||
General and administrative | 7,004 | 6,051 | ||||||
Depreciation and amortization | 36,571 | 30,416 | ||||||
Total operating expenses | 85,742 | 81,276 | ||||||
Operating income | 60,547 | 56,373 | ||||||
Other interest income | 207 | 15 | ||||||
Interest expense | (28,793 | ) | (25,044 | ) | ||||
Early extinguishment of debt | — | 296 | ||||||
Income from real estate partnerships | 301 | 323 | ||||||
Income from continuing operations | 32,262 | 31,963 | ||||||
Discontinued operations | ||||||||
Discontinued operations - income | — | 421 | ||||||
Income before gain on sale of real estate | 32,262 | 32,384 | ||||||
Gain on sale of real estate in real estate partnership | 11,860 | — | ||||||
Net income | 44,122 | 32,384 | ||||||
Net income attributable to noncontrolling interests | (1,136 | ) | (1,198 | ) | ||||
Net income attributable to the Trust | 42,986 | 31,186 | ||||||
Dividends on preferred shares | (135 | ) | (135 | ) | ||||
Net income available for common shareholders | $ | 42,851 | $ | 31,051 | ||||
EARNINGS PER COMMON SHARE, BASIC | ||||||||
Continuing operations | $ | 0.48 | $ | 0.49 | ||||
Discontinued operations | — | 0.01 | ||||||
Gain on sale of real estate | 0.19 | — | ||||||
$ | 0.67 | $ | 0.50 | |||||
Weighted average number of common shares, basic | 63,411 | 61,471 | ||||||
EARNINGS PER COMMON SHARE, DILUTED | ||||||||
Continuing operations | $ | 0.48 | $ | 0.49 | ||||
Discontinued operations | — | 0.01 | ||||||
Gain on sale of real estate | 0.19 | — | ||||||
$ | 0.67 | $ | 0.50 | |||||
Weighted average number of common shares, diluted | 63,585 | 61,629 | ||||||
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Federal Realty Investment Trust | |||||||
Summarized Balance Sheets | |||||||
March 31, 2012 | |||||||
March 31, | December 31, | ||||||
2012 | 2011 | ||||||
(in thousands) | |||||||
(unaudited) | |||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating (including $263,583 and $263,570 of consolidated variable interest entities, respectively) | $ | 4,251,132 | $ | 4,232,608 | |||
Construction-in-progress | 200,879 | 193,836 | |||||
4,452,011 | 4,426,444 | ||||||
Less accumulated depreciation and amortization (including $6,741 and $4,991 of consolidated variable interest entities, respectively) | (1,150,398 | ) | (1,127,588 | ) | |||
Net real estate | 3,301,613 | 3,298,856 | |||||
Cash and cash equivalents | 69,182 | 67,806 | |||||
Accounts and notes receivable, net | 75,871 | 75,921 | |||||
Mortgage notes receivable, net | 56,076 | 55,967 | |||||
Investment in real estate partnership | 34,163 | 34,352 | |||||
Prepaid expenses and other assets | 131,943 | 133,308 | |||||
TOTAL ASSETS | $ | 3,668,848 | $ | 3,666,210 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities | |||||||
Mortgages and capital lease obligations (including $207,099 and $207,683 of consolidated variable interest entities, respectively) | $ | 816,005 | $ | 810,616 | |||
Notes payable | 294,685 | 295,159 | |||||
Senior notes and debentures | 1,004,584 | 1,004,635 | |||||
Accounts payable and other liabilities | 205,036 | 229,871 | |||||
Total liabilities | 2,320,310 | 2,340,281 | |||||
Redeemable noncontrolling interests | 82,252 | 85,325 | |||||
Shareholders' equity | |||||||
Preferred shares | 9,997 | 9,997 | |||||
Common shares and other shareholders' equity | 1,231,734 | 1,206,095 | |||||
Total shareholders' equity of the Trust | 1,241,731 | 1,216,092 | |||||
Noncontrolling interests | 24,555 | 24,512 | |||||
Total shareholders' equity | 1,266,286 | 1,240,604 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,668,848 | $ | 3,666,210 | |||
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Federal Realty Investment Trust | ||||||||
Funds From Operations / Summary of Capital Expenditures | ||||||||
March 31, 2012 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
(in thousands, except per share data) | ||||||||
Funds from Operations available for common shareholders (FFO) (1) | ||||||||
Net income | $ | 44,122 | $ | 32,384 | ||||
Net income attributable to noncontrolling interests | (1,136 | ) | (1,198 | ) | ||||
Gain on sale of real estate in real estate partnership | (11,860 | ) | — | |||||
Depreciation and amortization of real estate assets | 32,415 | 27,589 | ||||||
Amortization of initial direct costs of leases | 2,936 | 2,240 | ||||||
Depreciation of joint venture real estate assets | 381 | 427 | ||||||
Funds from operations | 66,858 | 61,442 | ||||||
Dividends on preferred shares | (135 | ) | (135 | ) | ||||
Income attributable to operating partnership units | 247 | 243 | ||||||
Income attributable to unvested shares | (316 | ) | (280 | ) | ||||
FFO | $ | 66,654 | $ | 61,270 | ||||
FFO per diluted share | $ | 1.04 | $ | 0.99 | ||||
Weighted average number of common shares, diluted | 63,943 | 61,991 | ||||||
Summary of Capital Expenditures | ||||||||
Non-maintenance capital expenditures | ||||||||
Development, redevelopment and expansions | $ | 18,039 | $ | 18,165 | ||||
Tenant improvements and incentives | 6,588 | 5,861 | ||||||
Total non-maintenance capital expenditures | 24,627 | 24,026 | ||||||
Maintenance capital expenditures | 3,956 | 2,601 | ||||||
Total capital expenditures | $ | 28,583 | $ | 26,627 | ||||
Dividends and Payout Ratios | ||||||||
Regular common dividends declared | $ | 44,093 | $ | 41,669 | ||||
Dividend payout ratio as a percentage of FFO | 66 | % | 68 | % | ||||
Notes:
1) See Glossary of Terms.
8
Federal Realty Investment Trust | |||||||||
Market Data | |||||||||
March 31, 2012 | |||||||||
March 31, | |||||||||
2012 | 2011 | ||||||||
(in thousands, except per share data) | |||||||||
Market Data | |||||||||
Common shares outstanding (1) | 63,909 | 62,232 | |||||||
Market price per common share | $ | 96.79 | $ | 81.56 | |||||
Common equity market capitalization | $ | 6,185,752 | $ | 5,075,642 | |||||
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 | $ | 6,195,752 | $ | 5,085,642 | |||||
Total debt (3) | 2,115,274 | 1,804,055 | |||||||
Total market capitalization | $ | 8,311,026 | $ | 6,889,697 | |||||
Total debt to market capitalization at then current market price | 25 | % | 26 | % | |||||
Total debt to market capitalization at constant common share price of $81.56 | 29 | % | 26 | % | |||||
Fixed rate debt ratio: | |||||||||
Fixed rate debt and capital lease obligations (4) | 100 | % | 89 | % | |||||
Variable rate debt | <1% | 11 | % | ||||||
100 | % | 100 | % | ||||||
Notes:
1) | Amounts do not include 326,140 and 362,314 Operating Partnership Units outstanding at March 31, 2012 and 2011, 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 $17.2 million and $17.3 million which is the Trust's 30% share of the total mortgages payable of $57.3 million and $57.5 million at March 31, 2012 and 2011, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners. |
4) | Fixed rate debt includes our $275.0 million term loan as the rate is effectively fixed by two interest rate swap agreements. |
9
Federal Realty Investment Trust | ||||||||
Components of Rental Income | ||||||||
March 31, 2012 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
(in thousands) | ||||||||
Minimum rents | ||||||||
Retail and commercial (1) | $ | 103,135 | $ | 96,736 | ||||
Residential (2) | 6,410 | 5,525 | ||||||
Cost reimbursements | 26,957 | 28,830 | ||||||
Percentage rent | 1,957 | 1,395 | ||||||
Other | 2,202 | 1,952 | ||||||
Total rental income | $ | 140,661 | $ | 134,438 | ||||
Notes:
1) | Minimum rents include $0.6 million and $1.0 million for the three months ended March 31, 2012 and 2011, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.2 million and $0.3 million for the three months ended March 31, 2012 and 2011, 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 Bethesda Row. |
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Federal Realty Investment Trust | ||||||||||||||
Summary of Outstanding Debt and Capital Lease Obligations | ||||||||||||||
March 31, 2012 | ||||||||||||||
As of March 31, 2012 | ||||||||||||||
Stated maturity date | Stated interest rate | Balance | Weighted average effective rate (9) | |||||||||||
(in thousands) | ||||||||||||||
Mortgages Payable (1) | ||||||||||||||
Secured fixed rate | ||||||||||||||
Courtyard Shops | 7/1/2012 | 6.87% | $ | 6,981 | ||||||||||
Bethesda Row | 1/1/2013 | 5.37% | 19,993 | |||||||||||
Bethesda Row | 2/1/2013 | 5.05% | 3,978 | |||||||||||
White Marsh Plaza (2) | 4/1/2013 | 6.04% | 9,207 | |||||||||||
Crow Canyon | 8/11/2013 | 5.40% | 19,835 | |||||||||||
Idylwood Plaza | 6/5/2014 | 7.50% | 16,206 | |||||||||||
Leesburg Plaza | 6/5/2014 | 7.50% | 28,198 | |||||||||||
Loehmann's Plaza | 6/5/2014 | 7.50% | 36,464 | |||||||||||
Pentagon Row | 6/5/2014 | 7.50% | 52,345 | |||||||||||
Melville Mall (3) | 9/1/2014 | 5.25% | 22,131 | |||||||||||
THE AVENUE at White Marsh | 1/1/2015 | 5.46% | 56,293 | |||||||||||
Barracks Road | 11/1/2015 | 7.95% | 38,771 | |||||||||||
Hauppauge | 11/1/2015 | 7.95% | 14,616 | |||||||||||
Lawrence Park | 11/1/2015 | 7.95% | 27,481 | |||||||||||
Wildwood | 11/1/2015 | 7.95% | 24,155 | |||||||||||
Wynnewood | 11/1/2015 | 7.95% | 28,006 | |||||||||||
Brick Plaza | 11/1/2015 | 7.42% | 28,581 | |||||||||||
Plaza El Segundo | 8/5/2017 | 6.33% | 175,000 | |||||||||||
Rollingwood Apartments | 5/1/2019 | 5.54% | 23,150 | |||||||||||
Shoppers' World | 1/31/2021 | 5.91% | 5,405 | |||||||||||
Montrose Crossing | 1/10/2022 | 4.20% | 79,777 | |||||||||||
Mount Vernon (4) | 4/15/2028 | 5.66% | 10,455 | |||||||||||
Chelsea | 1/15/2031 | 5.36% | 7,585 | |||||||||||
Subtotal | 734,613 | |||||||||||||
Net unamortized premium | 9,684 | |||||||||||||
Total mortgages payable | 744,297 | 6.23% | ||||||||||||
Notes payable | ||||||||||||||
Unsecured fixed rate | ||||||||||||||
Various (5) | Various through 2013 | 3.10% | 10,285 | |||||||||||
Term loan (6) | 11/21/2018 | LIBOR + 1.45% | 275,000 | |||||||||||
Unsecured variable rate | ||||||||||||||
Revolving credit facility (7) | 7/6/2015 | LIBOR + 1.15% | — | |||||||||||
Escondido (municipal bonds) (8) | 10/1/2016 | 0.12% | 9,400 | |||||||||||
Total notes payable | 294,685 | 3.27% | (10) | |||||||||||
Senior notes and debentures | ||||||||||||||
Unsecured fixed rate | ||||||||||||||
6.00% notes | 7/15/2012 | 6.00% | 175,000 | |||||||||||
5.40% notes | 12/1/2013 | 5.40% | 135,000 | |||||||||||
5.95% notes | 8/15/2014 | 5.95% | 150,000 | |||||||||||
5.65% notes | 6/1/2016 | 5.65% | 125,000 | |||||||||||
6.20% notes | 1/15/2017 | 6.20% | 200,000 | |||||||||||
5.90% notes | 4/1/2020 | 5.90% | 150,000 | |||||||||||
7.48% debentures | 8/15/2026 | 7.48% | 29,200 | |||||||||||
6.82% medium term notes | 8/1/2027 | 6.82% | 40,000 | |||||||||||
Subtotal | 1,004,200 | |||||||||||||
Net unamortized premium | 384 | |||||||||||||
Total senior notes and debentures | 1,004,584 | 6.05% | ||||||||||||
Capital lease obligations | ||||||||||||||
Various | Various through 2106 | Various | 71,708 | 8.05% | ||||||||||
Total debt and capital lease obligations | $ | 2,115,274 | ||||||||||||
11
Total fixed rate debt and capital lease obligations | $ | 2,105,874 | 100 | % | 5.81% | |||||||||
Total variable rate debt | 9,400 | <1% | 1.70% | (10) | ||||||||||
Total debt and capital lease obligations | $ | 2,115,274 | 100 | % | 5.79% | (10) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
Operational Statistics | ||||||||
Ratio of EBITDA to combined fixed charges and preferred share dividends (11) | 3.46 | x | 3.28 | x | ||||
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (11) | 3.09 | x | 3.28 | x | ||||
Notes:
1) | Mortgages payable do not include our 30% share ($17.2 million) of the $57.3 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners. |
2) | 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 $4.4 million at a stated rate of 6.18% and the remaining balance at a stated rate of 5.96%. |
3) | We acquired control of Melville Mall through a 20-year master lease and secondary financing. Because we control the activities that most significantly impact 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. |
4) | 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 any time thereafter. |
5) | The interest rate of 3.10% represents the weighted average interest rate for two unsecured fixed rate notes payable. These notes mature on May 1, 2012 and January 31, 2013. |
6) | We entered into two interest rate swap agreements to fix the variable rate portion of our $275.0 million term loan at 1.72% from December 1, 2011 through November 1, 2018. The swap agreements effectively fix the rate on the term loan at 3.17% and thus, the loan is included in fixed rate debt. |
7) | No amount was drawn under our revolving credit facility during the three months ended March 31, 2012. |
8) | The bonds require monthly interest only payments through maturity. The bonds bear interest at a variable rate determined weekly, which would enable the bonds to be remarketed at 100% of their principal amount. The property is not encumbered by a lien. |
9) | The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note 10. |
10) | The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had no balance on March 31, 2012. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 3.17% as the result of the interest rate swap agreements discussed in Note 6. The term loan is included in fixed rate debt. |
11) | Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs and the portion of rent expense representing an interest factor. Fixed charges for the three months ended March 31, 2011 include $0.3 million of income from early extinguishment of debt due to the write-off of the unamortized debt premium net of a 3% prepayment premium and unamortized debt fees related to the payoff of our mortgage loan on Tower Shops prior to its contractual prepayment date. Adjusted EBITDA is reconciled to net income in the Glossary of Terms. |
12
Federal Realty Investment Trust | |||||||||||||||||||||
Summary of Debt Maturities | |||||||||||||||||||||
March 31, 2012 | |||||||||||||||||||||
Year | Scheduled Amortization | Maturities | Total | Percent of Debt Maturing | Cumulative Percent of Debt Maturing | Weighted Average Rate (4) | |||||||||||||||
(in thousands) | |||||||||||||||||||||
2012 | $ | 8,991 | $ | 191,916 | $ | 200,907 | 9.6 | % | 9.6 | % | 5.8 | % | |||||||||
2013 | 11,680 | 196,893 | (1) | 208,573 | 9.9 | % | 19.5 | % | 5.5 | % | |||||||||||
2014 | 9,999 | 297,864 | 307,863 | 14.6 | % | 34.1 | % | 6.9 | % | ||||||||||||
2015 | 6,572 | 198,391 | (2) | 204,963 | 9.7 | % | 43.8 | % | 7.3 | % | (5) | ||||||||||
2016 | 2,551 | 134,400 | 136,951 | 6.5 | % | 50.3 | % | 5.5 | % | ||||||||||||
2017 | 2,688 | 375,000 | 377,688 | 17.9 | % | 68.2 | % | 5.6 | % | ||||||||||||
2018 | 2,820 | 275,000 | 277,820 | 13.2 | % | 81.4 | % | 3.3 | % | ||||||||||||
2019 | 2,612 | 20,160 | 22,772 | 1.1 | % | 82.5 | % | 5.7 | % | ||||||||||||
2020 | 2,556 | 150,000 | 152,556 | 7.3 | % | 89.8 | % | 6.0 | % | ||||||||||||
2021 | 2,410 | 3,625 | 6,035 | 0.3 | % | 90.1 | % | 6.1 | % | ||||||||||||
Thereafter | 21,249 | 187,829 | 209,078 | 9.9 | % | 100.0 | % | 6.3 | % | ||||||||||||
Total | $ | 74,128 | $ | 2,031,078 | $ | 2,105,206 | (3) | 100.0 | % | ||||||||||||
Notes:
1) | Includes the repayment of the outstanding mortgage payable balance on Mount Vernon. The lender has the option to call the loan on April 15, 2013 or any time thereafter. |
2) | Our $400.0 million unsecured revolving credit facility matures on July 6, 2015, subject to a one-year extension at our option. As of March 31, 2012, there was $0 drawn under this credit facility. |
3) | 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 March 31, 2012. |
4) | The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year. |
5) | The weighted average rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility. |
13
Federal Realty Investment Trust | ||||||||||||
Summary of Development and Redevelopment Opportunities | ||||||||||||
March 31, 2012 | ||||||||||||
The following development and redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust (1) ($ millions) | ||||||||||||
Property | Location | Opportunity | Redevelopment/Development | Projected ROI (2) | Projected Cost (1) | Cost to Date | Anticipated Stabilization (3) | |||||
Active projects which are expected to stabilize in 2012 and beyond | ||||||||||||
Shops at Willow Lawn | Richmond, VA | Demo interior mall, relocate mall tenants, construct new exterior GLA, new pad buildings, and gas station | R | 10 | % | $14 | $8 | 2012 | ||||
Westgate Mall | San Jose, CA | Façade and interior mall renovation and addition of food court | R | 8 | % | $13 | $1 | 2014/2015 | ||||
Bala Cynwyd | Bala Cynwyd, PA | Construction of two retail pad buildings | D | 12 | % | $6 | $4 | 2012 | ||||
Shoppers' World | Charlottesville, VA | Renovate canopy and reconfigure anchor spaces to accommodate new tenants | R | 10 | % | $6 | $1 | 2013 | ||||
Fresh Meadows | Queens, NY | Conversion of 2nd floor office space for new sporting goods retailer. | R | 9 | % | $3 | $3 | 2012 | ||||
Mixed Use Projects | ||||||||||||
Pike & Rose (Mid-Pike) (5) | Rockville, MD | Ground up mixed use development on site of existing Mid-Pike Shopping Center. Phase I of development involves demolition of roughly 25% of existing GLA, and construction of 493 residential units, 151,000 square feet of retail, and 79,000 square feet of office space. | D | 8% - 9% | $245 - $255 | $13 | 2015/2016 | |||||
Assembly Row - Phase I (5) | Somerville, MA | Ground up mixed use development. Initial phase consists of 575 residential units (by AvalonBay) and 323,000 square feet of retail space (including restaurant pad site). A new Orange Line T-Stop will also be constructed by Massachusetts Bay Transit Authority, as part of Phase I. | D | 5% - 7% | $145 - $160 | $21 | 2015 | |||||
Santana Row - Lot 8B | San Jose, CA | Ground up development of a 5-story rental apartment building, which will include 212 residential units and associated parking. | D | 6.5% - 7.5% | $68 - $73 | $3 | 2014 | |||||
Santana Row - Lot 6B | San Jose, CA | 108 unit residential building | D | 9 | % | $34 | $34 | 2012 | ||||
Total: Mixed Use Projects Anticipated to Stabilize in 2012 and beyond (4) | 7% - 8% | $534 - $564 | $88 | |||||||||
Notes:
1) | 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 for redevelopment projects generally reflects only the deal specific cash, unleveraged Incremental Property Operating Income (POI) generated by the redevelopment and is calculated as Incremental POI divided by incremental cost. Incremental POI is the POI generated by the redevelopment after deducting rent being paid or management's estimate of rent to be paid for the redevelopment space and any other space taken out of service to accommodate the redevelopment. Projected ROI for development projects reflects the deal specific cash, unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost. Projected ROI for development and redevelopment projects 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) | Projected costs include an allocation of infrastructure costs for future phases. |
14
Federal Realty Investment Trust | ||||||||
Future Development Opportunities | ||||||||
March 31, 2012 | ||||||||
We have identified the following potential opportunities to create future shareholder value. Executing these opportunities could be subject to government approvals, tenant consents, market conditions, etc. Work on many of these new opportunities is in its preliminary stages and may not ultimately come to fruition. This list will change from time to time as we identify hurdles that cannot be overcome in the near term, and focus on those opportunities that are most likely to lead to the creation of shareholder value over time. | ||||||||
Pad Site Opportunities - Opportunities to add both single tenant and multi-tenant stand alone pad buildings at existing retail properties. Many of these opportunities are "by right" and construction is awaiting appropriate retailer demand. | ||||||||
Brick Plaza | Brick, NJ | Melville Mall | Huntington, NY | |||||
Dedham Plaza | Dedham, MA | Mercer Mall | Lawrenceville, NJ | |||||
Escondido | Escondido, CA | Troy | Parsippany, NJ | |||||
Federal Plaza | Rockville, MD | Westgate Mall | San Jose, CA | |||||
Flourtown | Flourtown, PA | Wildwood | Bethesda, MD | |||||
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into additional retail GLA. | ||||||||
Fresh Meadows | Queens, NY | Plaza El Segundo (Land) | El Segundo, CA | |||||
Hollywood Blvd | Hollywood, CA | Third Street Promenade | Santa Monica, CA | |||||
Montrose Crossing | Rockville, MD | Tower Shops | Davie, FL | |||||
Pentagon Row | Arlington, VA | Wildwood | Bethesda, MD | |||||
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties. | ||||||||
Barracks Road | Charlottesville, VA | Village of Shirlington | Arlington, VA | |||||
Chelsea Commons | Chelsea, MA | |||||||
Longer Term Mixed-Use Opportunities | ||||||||
Assembly Row (1) | Somerville, MA | Pike 7 | Vienna, VA | |||||
Bala Cynwyd | Bala Cynwyd, PA | Pike & Rose (Mid-Pike) (2) | Rockville, MD | |||||
Forest Hills | Forest Hills, NY | Santana Row (3) | San Jose, CA | |||||
(1 | ) | Assembly Row | Remaining entitlements after Phase 1 include 2 million square feet of commercial-use buildings, 1,525 residential units, and a 200 room hotel. | |||||
(2 | ) | Pike & Rose (Mid-Pike) | Remaining entitlements after Phase 1 include 1.5 million square feet of commercial-use buildings, and 1,090 residential units. | |||||
(3 | ) | Santana Row | Current remaining entitlements for this property include 348 residential units and 200,000 square feet of commercial space for retail and office. | |||||
15
Federal Realty Investment Trust | ||||||||||||||||||
Real Estate Status Report | ||||||||||||||||||
March 31, 2012 | ||||||||||||||||||
Property Name | MSA Description | Year Acquired | Real Estate at Cost | Mortgage and/or Capital Lease Obligation (1) | GLA (2) | % Leased | Grocery Anchor GLA | Grocery Anchor | Other Principal Tenants | |||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Washington Metropolitan Area | ||||||||||||||||||
Bethesda Row | Washington, DC-MD-VA | 1993-2006/2008/2010 | $ | 214,464 | $ | 23,971 | 533,000 | 92 | % | 40,000 | Giant Food | Landmark Theater / Apple Computer / Barnes & Noble | ||||||
Congressional Plaza | (4) | Washington, DC-MD-VA | 1965 | 73,870 | 328,000 | 100 | % | 25,000 | Fresh Market | Buy Buy Baby / Container Store / Last Call Studio by Neiman Marcus | ||||||||
Courthouse Center | Washington, DC-MD-VA | 1997 | 4,542 | 36,000 | 93 | % | ||||||||||||
Falls Plaza/Falls Plaza-East | Washington, DC-MD-VA | 1967-1972 | 12,431 | 144,000 | 100 | % | 51,000 | Giant Food | CVS / Staples | |||||||||
Federal Plaza | Washington, DC-MD-VA | 1989 | 63,187 | 248,000 | 87 | % | 14,000 | Trader Joe's | TJ Maxx / Micro Center / Ross Dress For Less | |||||||||
Friendship Center | Washington, DC-MD-VA | 2001 | 35,337 | 119,000 | 80 | % | Maggiano's / Nordstrom Rack | |||||||||||
Gaithersburg Square | Washington, DC-MD-VA | 1993 | 25,180 | 207,000 | 78 | % | Bed, Bath & Beyond / Ross Dress For Less | |||||||||||
Idylwood Plaza | Washington, DC-MD-VA | 1994 | 16,392 | 16,206 | 73,000 | 100 | % | 30,000 | Whole Foods | |||||||||
Laurel | Washington, DC-MD-VA | 1986 | 50,831 | 388,000 | 84 | % | 61,000 | Giant Food | L.A. Fitness / Marshalls | |||||||||
Leesburg Plaza | Washington, DC-MD-VA | 1998 | 35,003 | 28,198 | 236,000 | 97 | % | 55,000 | Giant Food | Petsmart / Pier 1 Imports / Office Depot | ||||||||
Loehmann's Plaza | Washington, DC-MD-VA | 1983 | 32,823 | 36,464 | 259,000 | 95 | % | 58,000 | Giant Food | L.A. Fitness / Loehmann's Dress Shop | ||||||||
Mid-Pike Plaza | Washington, DC-MD-VA | 1982/2007 | 55,746 | 231,000 | 79 | % | Toys R Us / L.A. Fitness | |||||||||||
Montrose Crossing | (4) | Washington, DC-MD-VA | 2011 | 140,446 | 79,777 | 357,000 | 100 | % | 73,000 | Giant Food | Marshalls / Sports Authority / Barnes & Noble / A.C. Moore | |||||||
Mount Vernon/South Valley/7770 Richmond Hwy | (5) | Washington, DC-MD-VA | 2003-2006 | 78,669 | 10,455 | 572,000 | 94 | % | 62,000 | Shoppers Food Warehouse | Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold's Gym / Staples | |||||||
Old Keene Mill | Washington, DC-MD-VA | 1976 | 6,296 | 92,000 | 100 | % | 24,000 | Whole Foods | Walgreens | |||||||||
Pan Am | Washington, DC-MD-VA | 1993 | 28,520 | 227,000 | 99 | % | 63,000 | Safeway | Micro Center / Michaels | |||||||||
Pentagon Row | Washington, DC-MD-VA | 1998/2010 | 88,730 | 52,345 | 297,000 | 99 | % | 45,000 | Harris Teeter | L.A. Fitness / Bed, Bath & Beyond / DSW | ||||||||
Pike 7 | Washington, DC-MD-VA | 1997 | 35,641 | 164,000 | 100 | % | DSW / Staples / TJ Maxx | |||||||||||
Quince Orchard | Washington, DC-MD-VA | 1993 | 22,739 | 248,000 | 73 | % | 24,000 | Magruders | Staples | |||||||||
Rockville Town Square | (3) | Washington, DC-MD-VA | 2006-2007 | 44,765 | 4,548 | 181,000 | 95 | % | CVS / Gold's Gym | |||||||||
Rollingwood Apartments | Washington, DC-MD-VA | 1971 | 8,803 | 23,150 | N/A | 95 | % | |||||||||||
Sam's Park & Shop | Washington, DC-MD-VA | 1995 | 12,843 | 49,000 | 100 | % | Petco | |||||||||||
Tower | Washington, DC-MD-VA | 1998 | 21,063 | 112,000 | 87 | % | Talbots | |||||||||||
Tyson's Station | Washington, DC-MD-VA | 1978 | 4,164 | 49,000 | 96 | % | 11,000 | Trader Joe's | ||||||||||
Village at Shirlington | (3) | Washington, DC-MD-VA | 1995 | 56,955 | 6,374 | 261,000 | 97 | % | 28,000 | Harris Teeter | AMC Loews / Carlyle Grand Café | |||||||
Wildwood | Washington, DC-MD-VA | 1969 | 18,154 | 24,155 | 84,000 | 93 | % | 20,000 | Balducci's | CVS | ||||||||
Total Washington Metropolitan Area | 1,187,594 | 5,495,000 | 92 | % | ||||||||||||||
Philadelphia Metropolitan Area | ||||||||||||||||||
Andorra | Philadelphia, PA-NJ | 1988 | 25,190 | 267,000 | 96 | % | 24,000 | Acme Markets | Kohl's / Staples / L.A. Fitness | |||||||||
Bala Cynwyd | Philadelphia, PA-NJ | 1993 | 39,137 | 290,000 | 98 | % | 45,000 | Acme Markets | Lord & Taylor / L.A. Fitness / Michaels | |||||||||
Ellisburg Circle | Philadelphia, PA-NJ | 1992 | 30,881 | 267,000 | 94 | % | 47,000 | Genuardi's | Buy Buy Baby / Stein Mart | |||||||||
Flourtown | Philadelphia, PA-NJ | 1980 | 15,999 | 166,000 | 48 | % | 42,000 | Genuardi's | ||||||||||
Langhorne Square | Philadelphia, PA-NJ | 1985 | 20,275 | 219,000 | 96 | % | 55,000 | Redner's Warehouse Mkts. | Marshalls | |||||||||
Lawrence Park | Philadelphia, PA-NJ | 1980 | 30,737 | 27,481 | 353,000 | 95 | % | 53,000 | Acme Markets | Kaplan Career Institute / TJ Maxx / HomeGoods | ||||||||
Northeast | Philadelphia, PA-NJ | 1983 | 23,289 | 288,000 | 91 | % | Burlington Coat Factory / Home Gallery / Marshalls | |||||||||||
Town Center of New Britain | Philadelphia, PA-NJ | 2006 | 14,464 | 124,000 | 87 | % | 36,000 | Giant Food | Rite Aid | |||||||||
Willow Grove | Philadelphia, PA-NJ | 1984 | 28,780 | 212,000 | 98 | % | HomeGoods / Marshalls / Barnes & Noble | |||||||||||
Wynnewood | Philadelphia, PA-NJ | 1996 | 36,661 | 28,006 | 252,000 | 87 | % | 98,000 | Genuardi's | Bed, Bath & Beyond / Old Navy | ||||||||
Total Philadelphia Metropolitan Area | 265,413 | 2,438,000 | 91 | % | ||||||||||||||
California | ||||||||||||||||||
Colorado Blvd | Los Angeles-Long Beach, CA | 1996-1998 | 16,994 | 69,000 | 100 | % | Pottery Barn / Banana Republic | |||||||||||
16
Federal Realty Investment Trust | ||||||||||||||||||
Real Estate Status Report | ||||||||||||||||||
March 31, 2012 | ||||||||||||||||||
Property Name | MSA Description | Year Acquired | Real Estate at Cost | Mortgage and/or Capital Lease Obligation (1) | GLA (2) | % Leased | Grocery Anchor GLA | Grocery Anchor | Other Principal Tenants | |||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Crow Canyon | San Ramon, CA | 2005-2007 | 70,073 | 19,835 | 242,000 | 92 | % | 58,000 | Lucky | Loehmann's Dress Shop / Rite Aid | ||||||||
Escondido | (4) | San Diego, CA | 1996/2010 | 44,484 | 297,000 | 96 | % | TJ Maxx / Toys R Us / Dick’s Sporting Goods / Ross Dress For Less | ||||||||||
Fifth Ave | San Diego, CA | 1996 | 6,056 | 17,000 | 100 | % | Urban Outfitters | |||||||||||
Hermosa Ave | Los Angeles-Long Beach, CA | 1997 | 5,486 | 22,000 | 100 | % | ||||||||||||
Hollywood Blvd | (4) | Los Angeles-Long Beach, CA | 1999 | 37,795 | 140,000 | 91 | % | 15,000 | Fresh & Easy | DSW / L.A. Fitness | ||||||||
Kings Court | (5) | San Jose, CA | 1998 | 11,644 | 79,000 | 94 | % | 25,000 | Lunardi's Super Market | CVS | ||||||||
Old Town Center | San Jose, CA | 1997 | 34,594 | 96,000 | 76 | % | Gap / Banana Republic | |||||||||||
Plaza El Segundo | (4)(6) | Los Angeles-Long Beach, CA | 2011 | 211,026 | 175,000 | 381,000 | 99 | % | 66,000 | Whole Foods | Anthropologie / Best Buy / Dick's Sporting Goods / H&M / HomeGoods | |||||||
Santana Row | San Jose, CA | 1997 | 584,623 | 645,000 | 99 | % | Crate & Barrel / Container Store / Best Buy / CineArts Theatre / Hotel Valencia | |||||||||||
Third St Promenade | Los Angeles-Long Beach, CA | 1996-2000 | 78,466 | 209,000 | 98 | % | J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch | |||||||||||
Westgate | San Jose, CA | 2004 | 119,188 | 642,000 | 94 | % | Target / Burlington Coat Factory / Ross Dress For Less / Michaels / Nordstrom Rack | |||||||||||
150 Post Street | San Francisco, CA | 1997 | 37,898 | 102,000 | 100 | % | Brooks Brothers / H & M | |||||||||||
Total California | 1,258,327 | 2,941,000 | 96 | % | ||||||||||||||
New York / New Jersey | ||||||||||||||||||
Brick Plaza | Monmouth-Ocean, NJ | 1989 | 60,903 | 28,581 | 414,000 | 91 | % | 66,000 | A&P | AMC Loews / Barnes & Noble / Sports Authority | ||||||||
Forest Hills | New York, NY | 1997 | 8,222 | 48,000 | 100 | % | Midway Theatre | |||||||||||
Fresh Meadows | New York, NY | 1997 | 76,209 | 406,000 | 91 | % | Kohl's / AMC Loews | |||||||||||
Hauppauge | Nassau-Suffolk, NY | 1998 | 28,042 | 14,616 | 133,000 | 99 | % | 61,000 | Shop Rite | AC Moore | ||||||||
Huntington | Nassau-Suffolk, NY | 1988/2007 | 39,370 | 279,000 | 98 | % | Buy Buy Baby / Bed, Bath & Beyond / Michaels | |||||||||||
Huntington Square | Nassau-Suffolk, NY | 2010 | 10,573 | 74,000 | 93 | % | Barnes & Noble | |||||||||||
Melville Mall | (8) | Nassau-Suffolk, NY | 2006 | 68,974 | 22,131 | 247,000 | 100 | % | 54,000 | Waldbaum's | Dick’s Sporting Goods / Kohl's / Marshalls | |||||||
Mercer Mall | (3) | Trenton, NJ | 2003 | 109,854 | 55,879 | 500,000 | 97 | % | 75,000 | Shop Rite | Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan | |||||||
Troy | Newark, NJ | 1980 | 28,902 | 207,000 | 98 | % | 64,000 | Pathmark | L.A. Fitness | |||||||||
Total New York / New Jersey | 431,049 | 2,308,000 | 95 | % | ||||||||||||||
New England | ||||||||||||||||||
Assembly Square Marketplace/Assembly Row | Boston-Cambridge-Quincy, MA-NH | 2005-2011 | 237,590 | 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 | 30,304 | 7,585 | 222,000 | 100 | % | 16,000 | Sav-A-Lot | Home Depot / Planet Fitness | ||||||||
Dedham Plaza | Boston-Cambridge-Quincy, MA-NH | 1993 | 33,353 | 243,000 | 96 | % | 80,000 | Star Market | ||||||||||
Linden Square | Boston-Cambridge-Quincy, MA-NH | 2006 | 146,557 | 224,000 | 93 | % | 50,000 | Roche Bros. | CVS | |||||||||
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 | 15,714 | 149,000 | 94 | % | 50,000 | Hannaford | TJ Maxx / HomeGoods | |||||||||
Saugus Plaza | Boston-Cambridge-Quincy, MA-NH | 1996 | 14,644 | 170,000 | 96 | % | 55,000 | Super Stop & Shop | Kmart | |||||||||
Total New England | 487,530 | 1,388,000 | 97 | % | ||||||||||||||
Baltimore | ||||||||||||||||||
Governor Plaza | Baltimore, MD | 1985 | 26,371 | 267,000 | 100 | % | 16,500 | Aldi | L.A. Fitness / Dick’s Sporting Goods | |||||||||
Perring Plaza | Baltimore, MD | 1985 | 27,689 | 395,000 | 87 | % | 58,000 | Shoppers Food Warehouse | Home Depot / Burlington Coat Factory / Jo-Ann Stores | |||||||||
17
Federal Realty Investment Trust | ||||||||||||||||||
Real Estate Status Report | ||||||||||||||||||
March 31, 2012 | ||||||||||||||||||
Property Name | MSA Description | Year Acquired | Real Estate at Cost | Mortgage and/or Capital Lease Obligation (1) | GLA (2) | % Leased | Grocery Anchor GLA | Grocery Anchor | Other Principal Tenants | |||||||||
(in thousands) | (in thousands) | |||||||||||||||||
THE AVENUE at White Marsh | (5) | Baltimore, MD | 2007 | 96,076 | 56,293 | 297,000 | 100 | % | AMC Loews / Old Navy / Barnes & Noble / AC Moore | |||||||||
The Shoppes at Nottingham Square | Baltimore, MD | 2007 | 17,323 | 32,000 | 100 | % | ||||||||||||
White Marsh Plaza | Baltimore, MD | 2007 | 25,026 | 9,207 | 80,000 | 100 | % | 54,000 | Giant Food | |||||||||
White Marsh Other | Baltimore, MD | 2007 | 39,138 | 70,000 | 94 | % | ||||||||||||
Total Baltimore | 231,623 | 1,141,000 | 95 | % | ||||||||||||||
Chicago | ||||||||||||||||||
Crossroads | Chicago, IL | 1993 | 30,879 | 168,000 | 96 | % | Golfsmith / Guitar Center / L.A. Fitness | |||||||||||
Finley Square | Chicago, IL | 1995 | 32,477 | 315,000 | 99 | % | Bed, Bath & Beyond / Buy Buy Baby / Petsmart | |||||||||||
Garden Market | Chicago, IL | 1994 | 12,357 | 140,000 | 91 | % | 63,000 | Dominick's | Walgreens | |||||||||
North Lake Commons | Chicago, IL | 1994 | 14,191 | 129,000 | 89 | % | 77,000 | Dominick's | ||||||||||
Total Chicago | 89,904 | 752,000 | 95 | % | ||||||||||||||
South Florida | ||||||||||||||||||
Courtyard Shops | Miami-Ft Lauderdale | 2008 | 40,111 | 6,981 | 130,000 | 88 | % | 49,000 | Publix | |||||||||
Del Mar Village | Miami-Ft Lauderdale | 2008 | 55,632 | 179,000 | 91 | % | 44,000 | Winn Dixie | CVS | |||||||||
Tower Shops | Miami-Ft Lauderdale | 2011 | 71,534 | 368,000 | 91 | % | Best Buy / DSW / Old Navy / Ross Dress For Less / TJ Maxx | |||||||||||
Total South Florida | 167,277 | 677,000 | 91 | % | ||||||||||||||
Other | ||||||||||||||||||
Barracks Road | Charlottesville, VA | 1985 | 54,096 | 38,771 | 487,000 | 99 | % | 99,000 | Harris Teeter / Kroger | Anthropologie / Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels / Ulta | ||||||||
Bristol Plaza | Hartford, CT | 1995 | 28,090 | 266,000 | 95 | % | 74,000 | Stop & Shop | TJ Maxx | |||||||||
Eastgate | Raleigh-Durham-Chapel Hill, NC | 1986 | 26,495 | 153,000 | 100 | % | 13,000 | Trader Joe's | Stein Mart | |||||||||
Gratiot Plaza | Detroit, MI | 1973 | 19,002 | 217,000 | 99 | % | 69,000 | Kroger | Bed, Bath & Beyond / Best Buy / DSW | |||||||||
Greenwich Avenue | New Haven-Bridgeport-Stamford-Waterbury | 1995 | 13,969 | 35,000 | 100 | % | Saks Fifth Avenue | |||||||||||
Houston St | San Antonio, TX | 1998 | 65,566 | 183,000 | 92 | % | Hotel Valencia / Walgreens | |||||||||||
Lancaster | (7) | Lancaster, PA | 1980 | 12,836 | 4,907 | 127,000 | 94 | % | 75,000 | Giant Food | Michaels | |||||||
Shoppers' World | Charlottesville, VA | 2007 | 31,201 | 5,405 | 169,000 | 72 | % | Staples | ||||||||||
Shops at Willow Lawn | Richmond-Petersburg, VA | 1983 | 82,039 | 442,000 | 94 | % | 66,000 | Kroger | Old Navy / Staples / Ross Dress For Less | |||||||||
Total Other | 333,294 | 2,079,000 | 94 | % | ||||||||||||||
Grand Total | $ | 4,452,011 | $ | 806,321 | 19,219,000 | 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) | Portion of property subject to capital lease obligation. | |||||||||||||||||
(4) | The Trust has a controlling financial interest in this property. | |||||||||||||||||
(5) | All or a portion of the property is 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. | |||||||||||||||||
(6) | Includes a 100% owned, 8.1 acre land parcel to be used for future development. | |||||||||||||||||
(7) | Property subject to capital lease obligation. | |||||||||||||||||
(8) | 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. | |||||||||||||||||
18
Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||
Retail Leasing Summary (1) | ||||||||||||||||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
1st Quarter 2012 | 92 | 100 | % | 461,088 | $ | 31.66 | $ | 27.15 | $ | 2,081,753 | 17 | % | 24 | % | 7.2 | $ | 12,603,460 | $ | 27.33 | |||||||||||||||||||
4th Quarter 2011 | 74 | 100 | % | 231,394 | $ | 32.81 | $ | 29.80 | $ | 697,168 | 10 | % | 22 | % | 6.7 | $ | 1,641,570 | $ | 7.09 | |||||||||||||||||||
3rd Quarter 2011 | 88 | 100 | % | 353,309 | $ | 31.62 | $ | 29.24 | $ | 841,354 | 8 | % | 18 | % | 5.4 | $ | 3,932,532 | $ | 11.13 | |||||||||||||||||||
2nd Quarter 2011 | 86 | 100 | % | 369,685 | $ | 28.21 | $ | 26.64 | $ | 581,478 | 6 | % | 16 | % | 7.3 | $ | 4,396,887 | $ | 11.89 | |||||||||||||||||||
Total - 12 months | 340 | 100 | % | 1,415,476 | $ | 30.94 | $ | 27.97 | $ | 4,201,753 | 11 | % | 20 | % | 6.7 | $ | 22,574,449 | $ | 15.95 | |||||||||||||||||||
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. | |||||||||||||||||||||||||||
1st Quarter 2012 | 43 | 47 | % | 224,338 | $ | 34.23 | $ | 26.10 | $ | 1,824,154 | 31 | % | 40 | % | 9.2 | $ | 10,880,880 | $ | 48.50 | |||||||||||||||||||
4th Quarter 2011 | 27 | 36 | % | 91,350 | $ | 32.04 | $ | 28.56 | $ | 318,442 | 12 | % | 26 | % | 8.8 | $ | 1,601,990 | $ | 17.54 | |||||||||||||||||||
3rd Quarter 2011 | 37 | 42 | % | 161,822 | $ | 24.50 | $ | 24.22 | $ | 45,490 | 1 | % | 10 | % | 7.4 | $ | 3,846,699 | $ | 23.77 | |||||||||||||||||||
2nd Quarter 2011 | 29 | 34 | % | 136,062 | $ | 28.49 | $ | 25.47 | $ | 411,642 | 12 | % | 18 | % | 9.7 | $ | 4,326,647 | $ | 31.80 | |||||||||||||||||||
Total - 12 months | 136 | 40 | % | 613,572 | $ | 30.07 | $ | 25.83 | $ | 2,599,728 | 16 | % | 25 | % | 8.8 | $ | 20,656,216 | $ | 33.67 | |||||||||||||||||||
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. | |||||||||||||||||||||||||||
1st Quarter 2012 | 49 | 53 | % | 236,750 | $ | 29.23 | $ | 28.14 | $ | 257,599 | 4 | % | 10 | % | 4.9 | $ | 1,722,580 | $ | 7.28 | |||||||||||||||||||
4th Quarter 2011 | 47 | 64 | % | 140,044 | $ | 33.31 | $ | 30.60 | $ | 378,726 | 9 | % | 20 | % | 5.4 | $ | 39,580 | $ | 0.28 | |||||||||||||||||||
3rd Quarter 2011 | 51 | 58 | % | 191,487 | $ | 37.64 | $ | 33.48 | $ | 795,864 | 12 | % | 23 | % | 4.3 | $ | 85,833 | $ | 0.45 | |||||||||||||||||||
2nd Quarter 2011 | 57 | 66 | % | 233,623 | $ | 28.05 | $ | 27.32 | $ | 169,836 | 3 | % | 15 | % | 6.0 | $ | 70,240 | $ | 0.30 | |||||||||||||||||||
Total - 12 months | 204 | 60 | % | 801,904 | $ | 31.61 | $ | 29.61 | $ | 1,602,025 | 7 | % | 17 | % | 5.1 | $ | 1,918,233 | $ | 2.39 | |||||||||||||||||||
Total Lease Summary - Comparable and Non-comparable (2) (8) | ||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
1st Quarter 2012 | 97 | 472,501 | $ | 32.01 | 7.3 | $ | 13,008,316 | $ | 27.53 | |||||||||||||||||||||||||||||
4th Quarter 2011 | 82 | 254,557 | $ | 32.88 | 6.9 | $ | 2,921,575 | $ | 11.48 | |||||||||||||||||||||||||||||
3rd Quarter 2011 | 92 | 384,627 | $ | 30.28 | 5.7 | $ | 8,075,369 | $ | 21.00 | |||||||||||||||||||||||||||||
2nd Quarter 2011 | 92 | 395,874 | $ | 28.27 | 7.5 | $ | 6,304,341 | $ | 15.93 | |||||||||||||||||||||||||||||
Total - 12 months | 363 | 1,507,559 | $ | 30.73 | 6.9 | $ | 30,309,601 | $ | 20.11 | |||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
(8) Does not include leases completed for Phase 1 of Assembly Row or Phase 1 of Pike & Rose. The economic terms of those leases are included in the overall project return and cost summary shown on the “Summary of Development and Redevelopment Opportunities.” | ||||||||||||||||||||||||||||||||||||||
19
Federal Realty Investment Trust | |||||||||||||||||||||||
Lease Expirations | |||||||||||||||||||||||
March 31, 2012 | |||||||||||||||||||||||
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 (4) | % of Total SF | Minimum Rent PSF (2) | ||||||||||||||
2012 | 181,000 | 2 | % | $ | 23.20 | 623,000 | 8 | % | $ | 28.09 | 804,000 | 5 | % | $ | 26.99 | ||||||||
2013 | 934,000 | 9 | % | $ | 16.73 | 1,041,000 | 14 | % | $ | 32.36 | 1,974,000 | 11 | % | $ | 24.98 | ||||||||
2014 | 1,381,000 | 13 | % | $ | 15.77 | 874,000 | 12 | % | $ | 34.61 | 2,255,000 | 13 | % | $ | 23.07 | ||||||||
2015 | 879,000 | 9 | % | $ | 14.52 | 965,000 | 13 | % | $ | 31.83 | 1,843,000 | 10 | % | $ | 23.59 | ||||||||
2016 | 954,000 | 9 | % | $ | 16.50 | 1,122,000 | 15 | % | $ | 32.74 | 2,076,000 | 12 | % | $ | 25.27 | ||||||||
2017 | 1,438,000 | 14 | % | $ | 15.68 | 901,000 | 12 | % | $ | 32.94 | 2,339,000 | 13 | % | $ | 22.33 | ||||||||
2018 | 749,000 | 7 | % | $ | 11.60 | 402,000 | 5 | % | $ | 38.65 | 1,151,000 | 6 | % | $ | 21.05 | ||||||||
2019 | 586,000 | 6 | % | $ | 18.48 | 262,000 | 4 | % | $ | 34.82 | 848,000 | 5 | % | $ | 23.53 | ||||||||
2020 | 329,000 | 3 | % | $ | 21.69 | 340,000 | 5 | % | $ | 33.67 | 669,000 | 4 | % | $ | 27.78 | ||||||||
2021 | 544,000 | 5 | % | $ | 20.35 | 382,000 | 5 | % | $ | 37.92 | 927,000 | 5 | % | $ | 27.57 | ||||||||
Thereafter | 2,329,000 | 23 | % | $ | 16.49 | 511,000 | 7 | % | $ | 38.93 | 2,841,000 | 16 | % | $ | 20.52 | ||||||||
Total (3) | 10,304,000 | 100 | % | $ | 16.38 | 7,423,000 | 100 | % | $ | 33.55 | 17,727,000 | 100 | % | $ | 23.57 | ||||||||
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 (4) | % of Total SF | Minimum Rent PSF (2) | ||||||||||||||
2012 | 110,000 | 1 | % | $ | 22.74 | 416,000 | 6 | % | $ | 28.04 | 526,000 | 3 | % | $ | 26.93 | ||||||||
2013 | 157,000 | 2 | % | $ | 17.63 | 554,000 | 7 | % | $ | 32.50 | 711,000 | 4 | % | $ | 29.22 | ||||||||
2014 | 141,000 | 1 | % | $ | 12.18 | 539,000 | 7 | % | $ | 36.69 | 679,000 | 4 | % | $ | 31.66 | ||||||||
2015 | 109,000 | 1 | % | $ | 20.24 | 556,000 | 7 | % | $ | 31.84 | 665,000 | 4 | % | $ | 29.94 | ||||||||
2016 | 163,000 | 2 | % | $ | 15.09 | 552,000 | 7 | % | $ | 34.50 | 715,000 | 4 | % | $ | 30.07 | ||||||||
2017 | 175,000 | 2 | % | $ | 22.06 | 641,000 | 9 | % | $ | 32.66 | 816,000 | 5 | % | $ | 30.39 | ||||||||
2018 | 336,000 | 3 | % | $ | 13.95 | 451,000 | 6 | % | $ | 38.37 | 787,000 | 4 | % | $ | 27.95 | ||||||||
2019 | 400,000 | 4 | % | $ | 17.88 | 339,000 | 5 | % | $ | 34.54 | 738,000 | 4 | % | $ | 25.56 | ||||||||
2020 | 159,000 | 2 | % | $ | 27.80 | 363,000 | 5 | % | $ | 32.12 | 523,000 | 3 | % | $ | 30.74 | ||||||||
2021 | 161,000 | 2 | % | $ | 11.04 | 578,000 | 8 | % | $ | 33.24 | 740,000 | 4 | % | $ | 28.36 | ||||||||
Thereafter | 8,393,000 | 80 | % | $ | 16.11 | 2,434,000 | 33 | % | $ | 33.71 | 10,827,000 | 61 | % | $ | 20.07 | ||||||||
Total (3) | 10,304,000 | 100 | % | $ | 16.38 | 7,423,000 | 100 | % | $ | 33.55 | 17,727,000 | 100 | % | $ | 23.57 | ||||||||
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 March 31, 2012. | ||||||||||||||||||||||
(3) | Represents occupied square footage as of March 31, 2012. | ||||||||||||||||||||||
(4) | Individual items may not add up to total due to rounding. | ||||||||||||||||||||||
20
Federal Realty Investment Trust | |||||||||||||
Portfolio Leased Statistics | |||||||||||||
March 31, 2012 | |||||||||||||
Overall Portfolio Statistics (1) | As of March 31, 2012 | As of March 31, 2011 | |||||||||||
Type | Size | Leased | Leased % | Size | Leased | Leased % | |||||||
Retail Properties (2) (3) (sf) | 19,219,000 | 18,020,000 | 93.8 | % | 18,604,000 | 17,455,000 | 93.8 | % | |||||
Residential Properties (4) (units) | 1,011 | 962 | 95.2 | % | 903 | 869 | 96.2 | % | |||||
Same Center Statistics (1) | As of March 31, 2012 | As of March 31, 2011 | |||||||||||
Type | Size | Leased | Leased % | Size | Leased | Leased % | |||||||
Retail Properties (2) (5) (sf) | 16,440,000 | 15,504,000 | 94.3 | % | 16,532,000 | 15,609,000 | 94.4 | % | |||||
Residential Properties (4) (units) | 903 | 862 | 95.5 | % | 903 | 869 | 96.2 | % | |||||
Notes: | |||||||||||||
(1) See Glossary of Terms. | |||||||||||||
(2) Leasable square feet; excludes redevelopment square footage not yet placed in service. | |||||||||||||
(3) At March 31, 2012 leased percentage was 97.2% for anchor tenants and 89.4% for small shop tenants. | |||||||||||||
(4) Overall portfolio statistics at March 31, 2012 include Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row (including 108 residential units at Santana Row 6B) and Bethesda Row. Same center and 2011 overall statistics exclude the 108 unit residential building at Santana Row that opened in October 2011. | |||||||||||||
(5) Excludes properties purchased, sold or under redevelopment. | |||||||||||||
21
Federal Realty Investment Trust | ||||||||||||||
Summary of Top 25 Tenants | ||||||||||||||
March 31, 2012 | ||||||||||||||
Rank | Tenant Name | Annualized Base Rent | Percentage of Total Annualized Base Rent (4) | Tenant GLA | Percentage of Total GLA (4) | Number of Stores Leased | ||||||||
1 | Ahold USA, Inc. | $ | 10,360,000 | 2.48 | % | 680,000 | 3.54 | % | 12 | |||||
2 | Bed, Bath & Beyond, Inc. | $ | 10,342,000 | 2.48 | % | 658,000 | 3.42 | % | 15 | |||||
3 | TJX Companies | $ | 9,458,000 | 2.26 | % | 654,000 | 3.40 | % | 19 | |||||
4 | L.A. Fitness International LLC | $ | 8,522,000 | 2.04 | % | 463,000 | 2.41 | % | 12 | |||||
5 | Gap, Inc. | $ | 7,779,000 | 1.86 | % | 252,000 | 1.31 | % | 14 | |||||
6 | CVS Corporation | $ | 6,511,000 | 1.56 | % | 205,000 | 1.07 | % | 18 | |||||
7 | Safeway, Inc. | $ | 5,523,000 | 1.32 | % | 391,000 | 2.03 | % | 7 | |||||
8 | Best Buy Stores, L.P. | $ | 5,405,000 | 1.29 | % | 188,000 | 0.98 | % | 5 | |||||
9 | Barnes & Noble, Inc. | $ | 5,035,000 | 1.21 | % | 239,000 | 1.24 | % | 9 | |||||
10 | Dick's Sporting Good Inc. | $ | 4,328,000 | 1.04 | % | 206,000 | 1.07 | % | 5 | |||||
11 | DSW, Inc | $ | 3,980,000 | 0.95 | % | 150,000 | 0.78 | % | 6 | |||||
12 | Staples, Inc. | $ | 3,627,000 | 0.87 | % | 187,000 | 0.97 | % | 9 | |||||
13 | Ross Stores, Inc. | $ | 3,591,000 | 0.86 | % | 208,000 | 1.08 | % | 7 | |||||
14 | A.C. Moore, Inc. | $ | 3,558,000 | 0.85 | % | 187,000 | 0.97 | % | 8 | |||||
15 | OPNET Technologies, Inc. | $ | 3,429,000 | 0.82 | % | 83,000 | 0.43 | % | 2 | |||||
16 | Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food) | $ | 3,348,000 | 0.80 | % | 338,000 | 1.76 | % | 7 | |||||
17 | Container Store, Inc. | $ | 3,336,000 | 0.80 | % | 74,000 | 0.39 | % | 3 | |||||
18 | Whole Foods Market, Inc. | $ | 3,228,000 | 0.77 | % | 119,000 | 0.62 | % | 3 | |||||
19 | PETsMART, Inc. | $ | 3,162,000 | 0.76 | % | 150,000 | 0.78 | % | 6 | |||||
20 | Kohl's Corporation | $ | 3,089,000 | 0.74 | % | 322,000 | 1.68 | % | 3 | |||||
21 | Wells Fargo Bank, N.A. | $ | 3,027,000 | 0.72 | % | 51,000 | 0.27 | % | 14 | |||||
22 | Bank of America, N.A. | $ | 3,005,000 | 0.72 | % | 64,000 | 0.33 | % | 19 | |||||
23 | Dress Barn, Inc. | $ | 2,998,000 | 0.72 | % | 127,000 | 0.66 | % | 19 | |||||
24 | Michaels Stores, Inc. | $ | 2,941,000 | 0.70 | % | 214,000 | 1.11 | % | 9 | |||||
25 | Home Depot, Inc. | $ | 2,832,000 | 0.68 | % | 335,000 | 1.74 | % | 4 | |||||
Totals - Top 25 Tenants | $ | 122,414,000 | 29.30 | % | 6,545,000 | 34.04 | % | 235 | ||||||
Total: (1) | $ | 417,825,000 | (2) | 19,219,000 | (3) | 2,461 | ||||||||
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 aggregate, annualized in-place contractual (defined as cash-basis including adjustments for concessions) minimum rent for all occupied spaces as of March 31, 2012. | ||||||||||||
(3 | ) | Excludes redevelopment square footage not yet placed in service. | ||||||||||||
(4 | ) | Individual items may not add up to total due to rounding. | ||||||||||||
22
Federal Realty Investment Trust | |||||||
Reconciliation of Net Income to FFO Guidance | |||||||
March 31, 2012 | |||||||
2012 Guidance | |||||||
(Dollars in millions except | |||||||
per share amounts) (1) | |||||||
Funds from Operations available for common shareholders (FFO) | |||||||
Net income | $ | 152 | $ | 155 | |||
Net income attributable to noncontrolling interests | (5 | ) | (5 | ) | |||
Gain on sale of real estate in real estate partnership | (12 | ) | (12 | ) | |||
Depreciation and amortization of real estate & joint venture real estate assets | 125 | 125 | |||||
Amortization of initial direct costs of leases | 12 | 12 | |||||
Funds from operations | 273 | 276 | |||||
Dividends on preferred shares | (1 | ) | (1 | ) | |||
Income attributable to operating partnership units | 1 | 1 | |||||
Income attributable to unvested shares | (1 | ) | (1 | ) | |||
FFO | $ | 272 | $ | 275 | |||
Weighted average number of common shares, diluted | 64.1 | 64.1 | |||||
FFO per diluted share | $ | 4.24 | $ | 4.29 | |||
Note: | |||||||
(1) - Individual items may not add up to total due to rounding. | |||||||
23
Federal Realty Investment Trust | ||||||||
Summarized Income Statements and Balance Sheets - 30% Owned Joint Venture | ||||||||
March 31, 2012 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
(in thousands) | ||||||||
CONSOLIDATED INCOME STATEMENTS | ||||||||
Revenues | ||||||||
Rental income | $ | 4,571 | $ | 4,941 | ||||
Other property income | 18 | 27 | ||||||
4,589 | 4,968 | |||||||
Expenses | ||||||||
Rental | 771 | 1,317 | ||||||
Real estate taxes | 568 | 439 | ||||||
Depreciation and amortization | 1,376 | 1,278 | ||||||
2,715 | 3,034 | |||||||
Operating income | 1,874 | 1,934 | ||||||
Interest expense | (845 | ) | (848 | ) | ||||
Net income | $ | 1,029 | $ | 1,086 | ||||
March 31, | December 31, | |||||||
2012 | 2011 | |||||||
(in thousands) | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
ASSETS | ||||||||
Real estate, at cost | $ | 208,177 | $ | 207,987 | ||||
Less accumulated depreciation and amortization | (30,559 | ) | (29,294 | ) | ||||
Net real estate | 177,618 | 178,693 | ||||||
Cash and cash equivalents | 3,467 | 3,035 | ||||||
Other assets | 5,171 | 6,116 | ||||||
TOTAL ASSETS | $ | 186,256 | $ | 187,844 | ||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||
Liabilities | ||||||||
Mortgages payable | $ | 57,322 | $ | 57,376 | ||||
Other liabilities | 4,217 | 5,391 | ||||||
Total liabilities | 61,539 | 62,767 | ||||||
Partners' capital | 124,717 | 125,077 | ||||||
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ | 186,256 | $ | 187,844 | ||||
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Federal Realty Investment Trust | ||||||||||||||||
Summary of Outstanding Debt and Debt Maturities - 30% Owned Joint Venture | ||||||||||||||||
March 31, 2012 | ||||||||||||||||
Stated Interest Rate as of March 31, 2012 | ||||||||||||||||
Maturity | Balance | |||||||||||||||
(in thousands) | ||||||||||||||||
Mortgage Loans | ||||||||||||||||
Secured Fixed Rate | ||||||||||||||||
Plaza del Mercado | 7/5/2014 | 5.77 | % | (a) | $ | 12,437 | ||||||||||
Atlantic Plaza | 12/1/2014 | 5.12 | % | (b) | 10,500 | |||||||||||
Barcroft Plaza | 7/1/2016 | 5.99 | % | (b)(c) | 20,785 | |||||||||||
Greenlawn Plaza | 7/1/2016 | 5.90 | % | (b) | 13,600 | |||||||||||
Total Fixed Rate Debt | $ | 57,322 | ||||||||||||||
Debt Maturities | ||||||||||||||||
(in thousands) | ||||||||||||||||
Year | Scheduled Amortization | Maturities | Total | Percent of Debt Maturing | Cumulative Percent of Debt Maturing | |||||||||||
2012 | $ | 166 | $ | — | $ | 166 | 0.3 | % | 0.3 | % | ||||||
2013 | 233 | — | 233 | 0.4 | % | 0.7 | % | |||||||||
2014 | 142 | 22,396 | 22,538 | 39.3 | % | 40.0 | % | |||||||||
2015 | — | — | — | — | % | 40.0 | % | |||||||||
2016 | — | 34,385 | 34,385 | 60.0 | % | 100.0 | % | |||||||||
Total | $ | 541 | $ | 56,781 | $ | 57,322 | 100.0 | % | ||||||||
Notes:
(a) Effective July 5, 2007, principal and interest payments are due based on a 30-year amortization schedule.
(b) Interest only until maturity
(c) | The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents the 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%. |
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Federal Realty Investment Trust | ||||||||||||||||||
Real Estate Status Report | ||||||||||||||||||
March 31, 2012 | ||||||||||||||||||
Property Name | MSA Description | Year Acquired | Real Estate at Cost | Mortgage and/or Capital Lease Obligation | GLA | % Leased | Grocery Anchor GLA (1) | Grocery Anchor | Other Principal Tenants | |||||||||
(in thousands) | (in thousands) | |||||||||||||||||
Washington Metropolitan Area | ||||||||||||||||||
Barcroft Plaza | Washington, DC-MD-VA | 2006-2007 | $ | 34,340 | $ | 20,785 | 100,000 | 88 | % | 46,000 | Harris Teeter | Bank of America | ||||||
Free State Shopping Center | Washington, DC-MD-VA | 2007 | 66,493 | 279,000 | 86 | % | 73,000 | Giant Food | TJ Maxx / Ross Dress For Less / Office Depot | |||||||||
Plaza del Mercado | Washington, DC-MD-VA | 2004 | 21,614 | 12,437 | 96,000 | 64 | % | CVS | ||||||||||
Total Washington Metropolitan Area | 122,447 | 475,000 | 82 | % | ||||||||||||||
New York / New Jersey | ||||||||||||||||||
Greenlawn Plaza | Nassau-Suffolk, NY | 2006 | 20,575 | 13,600 | 106,000 | 97 | % | 46,000 | Waldbaum's | Tuesday Morning | ||||||||
Total New York / New Jersey | 20,575 | 106,000 | 97 | % | ||||||||||||||
New England | ||||||||||||||||||
Atlantic Plaza | Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 18,982 | 10,500 | 123,000 | 87 | % | 64,000 | Stop & Shop | Sears | ||||||||
Campus Plaza | Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 22,649 | 117,000 | 97 | % | 46,000 | Roche Bros. | Burlington Coat Factory | |||||||||
Pleasant Shops | Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 23,524 | 130,000 | 94 | % | 38,000 | Foodmaster | Marshalls | |||||||||
Total New England | 65,155 | 370,000 | 93 | % | ||||||||||||||
Grand Totals | $ | 208,177 | $ | 57,322 | 951,000 | 88 | % | |||||||||||
Note: | ||||||||||||||||||
(1) Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more. | ||||||||||||||||||
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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, gain or loss on deconsolidation of variable interest entity (“VIE”) 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 net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2012 and 2011 is as follows:
Three Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
(in thousands) | ||||||||
Net income | $ | 44,122 | $ | 32,384 | ||||
Depreciation and amortization | 36,571 | 30,569 | ||||||
Interest expense | 28,793 | 25,044 | ||||||
Early extinguishment of debt | — | (296 | ) | |||||
Other interest income | (207 | ) | (15 | ) | ||||
EBITDA | 109,279 | 87,686 | ||||||
Gain on sale of real estate in real estate partnership | (11,860 | ) | — | |||||
Adjusted EBITDA | $ | 97,419 | $ | 87,686 | ||||
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 real estate related depreciation and amortization and excluding extraordinary items, gains and losses on sale of real estate, and impairment write-downs of depreciable 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.
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