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, 2010
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 4, 2010, 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, 2010. 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, 2010 (including press release dated May 4, 2010) |
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 4, 2010 | /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, 2010 |
Exhibit 99.1
FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
March 31, 2010
TABLE OF CONTENTS
| 1. |
First Quarter 2010 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 17, 2010, 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; |
| • | 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 17, 2010.
| 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
FIRST QUARTER 2010 OPERATING RESULTS
ROCKVILLE, Md. (May 4, 2010) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2010.
Financial Results
For first quarter 2010, Federal Realty generated funds from operations available for common shareholders (FFO) of $57.8 million, or $0.94 per diluted share, and net income available for common shareholders of $29.1 million, or earnings per diluted share of $0.47. This compares to FFO of $37.8 million, or $0.64 per share, and net income available to common shareholders of $10.3 million, or earnings per diluted share of $0.17, for the quarter ended March 31, 2009. First quarter 2009 results included a provision for litigation of $20.6 million, or $0.35 per diluted share, related to a lawsuit involving a property adjacent to Santana Row. Excluding this litigation provision, FFO for first quarter 2009 was $58.3 million, or $0.99 per diluted share, and net income available for common shareholders was $31.0 million, or $0.52 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 is attached to this press release.
Portfolio Results
In first quarter 2010, same-center property operating income, excluding redevelopment and expansion properties, increased 2.9% over first quarter 2009. Including redevelopments and expansions, same-center property operating income increased 5.7% compared to first quarter 2009. The same-center results including redevelopments and expansions include $2.3 million of income resulting from the acceleration of the unamortized portion of a lease termination fee relating to our Flourtown Shopping Center in Pennsylvania. When the lease termination fee is excluded, same-center property operating income increased 3.1%.
3
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2010 OPERATING RESULTS
May 4, 2010
Page 2
The overall portfolio was 94.1% leased as of March 31, 2010, compared to 94.5% on December 31, 2009 and 94.2% on March 31, 2009. Federal Realty’s same-center portfolio was 94.6% leased as of March 31, 2010, compared to 94.6% on December 31, 2009 and 94.5% on March 31, 2009.
During first quarter 2010, the Trust signed 72 leases for 318,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 308,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 16%. The average contractual rent on this comparable space for the first year of the new lease is $29.19 per square foot compared to the average contractual rent of $25.11 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 27% for first quarter 2010. As of March 31, 2010, Federal Realty’s average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $22.38 per square foot.
“I’m very proud of our first quarter performance despite an economic recovery that still has a long way to go at the consumer level,” commented Donald C. Wood, president and chief executive officer of the Trust. “There really is no substitute for great quality real estate when it comes to a tenant’s decision to renew or expand, and our first quarter leasing results continue to validate that premise.”
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 on July 15, 2010 to common shareholders of record on June 24, 2010.
Guidance
Federal Realty raised 2010 guidance for FFO per diluted share to a range of $3.82 to $3.89 and earnings per diluted share is $1.92 to $1.99.
Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its first quarter 2010 earnings conference call, which is scheduled for May 5, 2010, at 11 a.m. Eastern Daylight Time. To participate, please call (866) 314-5050 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 4, 2010, by dialing (888) 286-8010 and using the passcode 59661908.
4
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2010 OPERATING RESULTS
May 4, 2010
Page 3
About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty’s portfolio (excluding joint venture properties) contains approximately 18.2 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 94.1% leased to national, regional, and local retailers as of March 31, 2010, 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.
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 17, 2010, 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; |
| • | risks that the number of properties we acquire for our own account, and therefore the amount of capital we invest in acquisitions, may be impacted by our real estate partnership; |
| • | risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate; |
| • | risks that our growth will be limited if we cannot obtain additional capital; |
| • | risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and |
| • | risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT. |
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of
5
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2010 OPERATING RESULTS
May 4, 2010
Page 4
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 17, 2010.
6
Federal Realty Investment Trust
Summarized Income Statements
March 31, 2010
| Three months ended March 31, |
||||||||
| 2010 | 2009 | |||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Revenue |
||||||||
| Rental income |
$ | 131,492 | $ | 127,206 | ||||
| Other property income |
5,912 | 2,603 | ||||||
| Mortgage interest income |
1,066 | 1,267 | ||||||
| Total revenue |
138,470 | 131,076 | ||||||
| Expenses |
||||||||
| Rental expenses |
30,003 | 28,697 | ||||||
| Real estate taxes |
15,104 | 13,832 | ||||||
| General and administrative |
5,375 | 5,145 | ||||||
| Litigation provision |
114 | 20,632 | ||||||
| Depreciation and amortization |
28,932 | 28,592 | ||||||
| Total operating expenses |
79,528 | 96,898 | ||||||
| Operating income |
58,942 | 34,178 | ||||||
| Other interest income |
182 | 90 | ||||||
| Interest expense |
(25,962 | ) | (23,583 | ) | ||||
| Early extinguishment of debt |
(2,801 | ) | 14 | |||||
| Income from real estate partnership |
193 | 202 | ||||||
| Income from continuing operations |
30,554 | 10,901 | ||||||
| Discontinued operations |
||||||||
| Income from discontinued operations |
— | 57 | ||||||
| Gain on sale of real estate from discontinued operations |
— | 915 | ||||||
| Results from discontinued operations |
— | 972 | ||||||
| Net income |
30,554 | 11,873 | ||||||
| Net income attributable to noncontrolling interests |
(1,334 | ) | (1,389 | ) | ||||
| Net income attributable to the Trust |
29,220 | 10,484 | ||||||
| Dividends on preferred shares |
(135 | ) | (135 | ) | ||||
| Net income available for common shareholders |
$ | 29,085 | $ | 10,349 | ||||
| EARNINGS PER COMMON SHARE, BASIC |
||||||||
| Continuing operations |
$ | 0.47 | $ | 0.16 | ||||
| Discontinued operations |
— | 0.01 | ||||||
| $ | 0.47 | $ | 0.17 | |||||
| Weighted average number of common shares, basic |
61,089 | 58,841 | ||||||
| EARNINGS PER COMMON SHARE, DILUTED |
||||||||
| Continuing operations |
$ | 0.47 | $ | 0.16 | ||||
| Discontinued operations |
— | 0.01 | ||||||
| $ | 0.47 | $ | 0.17 | |||||
| Weighted average number of common shares, diluted |
61,220 | 58,960 | ||||||
7
Federal Realty Investment Trust
Summarized Balance Sheets
March 31, 2010
| March 31, 2010 |
December 31, 2009 |
|||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Real estate, at cost |
||||||||
| Operating (including $86,554 and $68,643 of consolidated variable interest entities, respectively) |
$ | 3,650,711 | $ | 3,626,476 | ||||
| Construction-in-progress |
138,170 | 132,758 | ||||||
| 3,788,881 | 3,759,234 | |||||||
| Less accumulated depreciation and amortization (including $3,289 and $3,053 of consolidated variable interest entities, respectively) |
(963,173 | ) | (938,087 | ) | ||||
| Net real estate |
2,825,708 | 2,821,147 | ||||||
| Cash and cash equivalents |
22,594 | 135,389 | ||||||
| Accounts and notes receivable, net |
70,953 | 72,191 | ||||||
| Mortgage notes receivable, net |
41,762 | 48,336 | ||||||
| Investment in real estate partnership |
35,453 | 35,633 | ||||||
| Prepaid expenses and other assets |
99,874 | 109,613 | ||||||
| TOTAL ASSETS |
$ | 3,096,344 | $ | 3,222,309 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Liabilities |
||||||||
| Mortgages payable and capital lease obligations (including $23,262 and $23,417 of consolidated variable interest entities, respectively) |
$ | 599,087 | $ | 601,884 | ||||
| Notes payable |
11,694 | 261,745 | ||||||
| Senior notes and debentures |
1,079,906 | 930,219 | ||||||
| Accounts payable and other liabilities |
205,096 | 219,398 | ||||||
| Total liabilities |
1,895,783 | 2,013,246 | ||||||
| Shareholders’ equity |
||||||||
| Preferred shares |
9,997 | 9,997 | ||||||
| Common shares and other shareholders’ equity |
1,159,139 | 1,167,340 | ||||||
| Total shareholders’ equity of the Trust |
1,169,136 | 1,177,337 | ||||||
| Noncontrolling interests |
31,425 | 31,726 | ||||||
| Total shareholders’ equity |
1,200,561 | 1,209,063 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 3,096,344 | $ | 3,222,309 | ||||
8
Federal Realty Investment Trust
Funds From Operations / Summary of Capital Expenditures
March 31, 2010
| Three months ended March 31, | ||||||||
| 2010 | 2009 | |||||||
| (in thousands, except per share data) | ||||||||
| Funds from Operations available for common shareholders (FFO) (1) | ||||||||
| Net income (2) |
$ | 30,554 | $ | 11,873 | ||||
| Net income attributable to noncontrolling interests |
(1,334 | ) | (1,389 | ) | ||||
| Gain on sale of real estate |
— | (915 | ) | |||||
| Depreciation and amortization of real estate assets |
26,087 | 25,436 | ||||||
| Amortization of initial direct costs of leases |
2,236 | 2,667 | ||||||
| Depreciation of joint venture real estate assets |
351 | 354 | ||||||
| Funds from operations |
57,894 | 38,026 | ||||||
| Dividends on preferred shares |
(135 | ) | (135 | ) | ||||
| Income attributable to operating partnership units |
245 | — | ||||||
| Income attributable to unvested shares |
(192 | ) | (130 | ) | ||||
| FFO |
57,812 | 37,761 | ||||||
| Litigation provision, net of allocation to unvested shares |
114 | 20,565 | ||||||
| FFO excluding litigation provision |
$ | 57,926 | $ | 58,326 | ||||
| FFO per diluted share |
$ | 0.94 | $ | 0.64 | ||||
| Litigation provision per diluted share |
— | 0.35 | ||||||
| FFO per diluted share excluding litigation provision |
$ | 0.94 | $ | 0.99 | ||||
| Weighted average number of common shares, diluted |
61,591 | 58,960 | ||||||
| Summary of Capital Expenditures |
||||||||
| Non-maintenance capital expenditures |
||||||||
| Redevelopment and expansions |
$ | 9,392 | $ | 20,827 | ||||
| Tenant improvements and incentives |
2,388 | 3,767 | ||||||
| Total non-maintenance capital expenditures |
11,780 | 24,594 | ||||||
| Maintenance capital expenditures |
1,246 | 1,320 | ||||||
| Total capital expenditures |
$ | 13,026 | $ | 25,914 | ||||
| Dividends and Payout Ratios |
||||||||
| Regular common dividends declared |
$ | 40,479 | $ | 38,404 | ||||
| Dividend payout ratio as a percentage of FFO |
70 | % | 102 | % | ||||
| Dividend payout ratio as a percentage of FFO excluding litigation provision (2) |
70 | % | 66 | % | ||||
Notes:
| (1) | See Glossary of Terms. |
| (2) | Net income for 2010 includes certain charges related to the litigation and appeal process over a parcel of land adjacent to Santana Row and 2009 net income includes a $20.6 million charge for increasing the accrual for such litigation matter. We believe FFO excluding this litigation provision provides a more meaningful evaluation of operations, and therefore, have included FFO and FFO per share excluding the related charges. |
9
Federal Realty Investment Trust
Market Data
March 31, 2010
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| (in thousands, except per share data) | ||||||||
| Market data |
||||||||
| Common shares outstanding (1) |
61,341 | 59,081 | ||||||
| Market price per common share |
$ | 72.81 | $ | 46.00 | ||||
| Common equity market capitalization |
$ | 4,466,238 | $ | 2,717,726 | ||||
| Series 1 preferred shares outstanding (2) |
400 | 400 | ||||||
| Liquidation price per Series 1 preferred share |
$ | 25.00 | $ | 25.00 | ||||
| Series 1 preferred equity market capitalization |
$ | 10,000 | $ | 10,000 | ||||
| Equity market capitalization |
$ | 4,476,238 | $ | 2,727,726 | ||||
| Total debt (3) |
1,690,687 | 1,750,619 | ||||||
| Total market capitalization |
$ | 6,166,925 | $ | 4,478,345 | ||||
| Total debt to market capitalization at then current market price |
27 | % | 39 | % | ||||
| Total debt to market capitalization at constant common share price of $46.00 |
37 | % | 39 | % | ||||
| Fixed rate debt ratio: |
||||||||
| Fixed rate debt and capital lease obligations |
99 | % | 80 | % | ||||
| Variable rate debt |
1 | % | 20 | % | ||||
| 100 | % | 100 | % | |||||
Notes:
| (1) | Amounts do not include 371,260 and 373,260 Operating Partnership Units outstanding at March 31, 2010 and 2009, 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 $17.3 million and $24.4 million which is the Trust’s 30% share of the total mortgages payable of $57.7 million and $81.3 million at March 31, 2010 and 2009, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners. |
10
Federal Realty Investment Trust
Components of Rental Income
March 31, 2010
| Three months ended March 31, | ||||||
| 2010 | 2009 | |||||
| (in thousands) | ||||||
| Minimum rents |
||||||
| Retail and commercial (1) |
$ | 93,973 | $ | 93,517 | ||
| Residential (2) |
5,293 | 5,272 | ||||
| Cost reimbursements |
28,933 | 25,578 | ||||
| Percentage rents |
1,461 | 1,501 | ||||
| Other |
1,832 | 1,338 | ||||
| Total rental income |
$ | 131,492 | $ | 127,206 | ||
Notes:
| (1) | Minimum rents include $1.1 million and $1.4 million for the three months ended March 31, 2010 and 2009, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.4 million for the three months ended March 31, 2010 and 2009, 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. |
11
Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
March 31, 2010
| Stated Maturity date |
Stated interest rate as of March 31, 2010 |
Balance as of March 31, 2010 |
Weighted average effective rate at March 31, 2010 (g) |
||||||||||||
| (in thousands) | |||||||||||||||
| Mortgage loans (a) |
|||||||||||||||
| Secured fixed rate |
|||||||||||||||
| Federal Plaza |
06/01/11 | 6.75 | % | $ | 32,373 | ||||||||||
| Tysons Station |
09/01/11 | 7.40 | % | 5,853 | |||||||||||
| Courtyard Shops |
07/01/12 | 6.87 | % | 7,462 | |||||||||||
| Bethesda Row |
01/01/13 | 5.37 | % | 19,995 | |||||||||||
| Bethesda Row |
02/01/13 | 5.05 | % | 4,269 | |||||||||||
| White Marsh Plaza (b) |
04/01/13 | 6.04 | % | 9,791 | |||||||||||
| Crow Canyon |
08/11/13 | 5.40 | % | 20,709 | |||||||||||
| Idylwood Plaza |
06/05/14 | 7.50 | % | 16,732 | |||||||||||
| Leesburg Plaza |
06/05/14 | 7.50 | % | 29,114 | |||||||||||
| Loehmann’s Plaza |
06/05/14 | 7.50 | % | 37,647 | |||||||||||
| Pentagon Row |
06/05/14 | 7.50 | % | 54,045 | |||||||||||
| Melville Mall (c) |
09/01/14 | 5.25 | % | 23,609 | |||||||||||
| THE AVENUE at White Marsh |
01/01/15 | 5.46 | % | 58,661 | |||||||||||
| Barracks Road |
11/01/15 | 7.95 | % | 40,447 | |||||||||||
| Hauppauge |
11/01/15 | 7.95 | % | 15,248 | |||||||||||
| Lawrence Park |
11/01/15 | 7.95 | % | 28,669 | |||||||||||
| Wildwood |
11/01/15 | 7.95 | % | 25,200 | |||||||||||
| Wynnewood |
11/01/15 | 7.95 | % | 29,217 | |||||||||||
| Brick Plaza |
11/01/15 | 7.42 | % | 29,901 | |||||||||||
| Rollingwood Apartments |
05/01/19 | 5.54 | % | 23,799 | |||||||||||
| Shoppers’ World |
01/31/21 | 5.91 | % | 5,699 | |||||||||||
| Mount Vernon (d) |
04/15/28 | 5.66 | % | 11,210 | |||||||||||
| Chelsea |
01/15/31 | 5.36 | % | 7,912 | |||||||||||
| Subtotal |
537,562 | ||||||||||||||
| Net unamortized discount |
(433 | ) | |||||||||||||
| Total mortgage loans |
537,129 | 6.98 | % | ||||||||||||
| Notes payable |
|||||||||||||||
| Unsecured fixed rate |
|||||||||||||||
| Other |
04/01/12 | 6.50 | % | 1,415 | |||||||||||
| Perring Plaza renovation |
01/31/13 | 10.00 | % | 879 | |||||||||||
| Unsecured variable rate |
|||||||||||||||
| Revolving credit facility (e) |
07/27/11 | LIBOR + 0.425 | % | — | |||||||||||
| Escondido (Municipal bonds) (f) |
10/01/16 | 0.238 | % | 9,400 | |||||||||||
| Total notes payable |
11,694 | 2.54 | % (h) | ||||||||||||
| Senior notes and debentures |
|||||||||||||||
| Unsecured fixed rate |
|||||||||||||||
| 4.50% notes |
02/15/11 | 4.50 | % | 75,000 | |||||||||||
| 6.00% notes |
07/15/12 | 6.00 | % | 175,000 | |||||||||||
| 5.40% notes |
12/01/13 | 5.40 | % | 135,000 | |||||||||||
| 5.95% notes |
08/15/14 | 5.95 | % | 150,000 | |||||||||||
| 5.65% notes |
06/01/16 | 5.65 | % | 125,000 | |||||||||||
| 6.20% notes |
01/15/17 | 6.20 | % | 200,000 | |||||||||||
| 5.90% notes |
04/01/20 | 5.90 | % | 150,000 | |||||||||||
| 7.48% debentures |
08/15/26 | 7.48 | % | 29,200 | |||||||||||
| 6.82% medium term notes |
08/01/27 | 6.82 | % | 40,000 | |||||||||||
| Subtotal |
1,079,200 | ||||||||||||||
| Net unamortized premium |
706 | ||||||||||||||
| Total senior notes and debentures |
1,079,906 | 5.95 | % | ||||||||||||
| Capital lease obligations |
|||||||||||||||
| Various |
Various through 2106 | Various | 61,958 | 6.94 | % | ||||||||||
| Total debt and capital lease obligations |
$ | 1,690,687 | |||||||||||||
| Total fixed rate debt and capital lease obligations |
$ | 1,681,287 | 99 | % | 6.32 | % | |||||||||
| Total variable rate debt |
9,400 | 1 | % | 1.25 | % (h) | ||||||||||
| TOTAL DEBT AND CAPITAL LEASES OBLIGATIONS |
$ | 1,690,687 | 100 | % | 6.29 | % (h) | |||||||||
| Three months ended March 31, | ||||
| 2010 | 2009 | |||
| Operational Statistics |
||||
| Excluding litigation provision: |
||||
| Ratio of EBITDA to combined fixed charges and preferred share dividends (i) (j) |
2.82 x | 3.27 x | ||
| Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (i) (j) |
2.82 x | 3.23 x | ||
| Including litigation provision: |
||||
| Ratio of EBITDA to combined fixed charges and preferred share dividends (i) |
2.82 x | 2.46 x | ||
| Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (i) |
2.82 x | 2.42 x | ||
Notes:
| (a) | Mortgage loans do not include our 30% share ($17.3 million) of the $57.7 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 $4.4 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 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. |
| (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) | No amounts were outstanding under our revolving credit facility during the three months ended March 31, 2010. |
| (f) | The bonds bear interest at a variable rate determined weekly which would enable the bonds to be remarketed at 100% of their principal amount. |
| (g) | The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note h. |
| (h) | The weighted average effective interest rate excludes $0.2 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had a $0 balance on March 31, 2010. |
| (i) | 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 $0.9 million gain on sale for the three months ended March 31, 2009. Fixed charges include $2.8 million of early extinguishment of debt for the three months ended March 31, 2010 due to the write-off of unamortized debt fees related to the $250 million payoff of the term loan prior to its maturity date. Adjusted EBITDA is reconciled to net income attributable to the Trust in the Glossary of Terms. |
| (j) | Adjusted to exclude a $0.1 million and $20.6 million litigation provision charge for the three months March 31, 2010 and 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. |
12
Federal Realty Investment Trust
Summary of Debt Maturities
March 31, 2010
| DEBT MATURITIES | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Year |
Scheduled Amortization |
Maturities | Total | Percent of Debt Maturing |
Cumulative Percent of Debt Maturing |
||||||||||||
| 2010 |
$ | 9,195 | $ | — | $ | 9,195 | 0.6 | % | 0.6 | % | |||||||
| 2011 |
12,438 | 112,252 | (1) | 124,690 | 7.4 | % | 8.0 | % | |||||||||
| 2012 |
12,691 | 181,916 | 194,607 | 11.5 | % | 19.5 | % | ||||||||||
| 2013 |
11,853 | 196,893 | 208,746 | 12.4 | % | 31.9 | % | ||||||||||
| 2014 |
10,225 | 297,864 | 308,089 | 18.2 | % | 50.1 | % | ||||||||||
| 2015 |
6,858 | 198,391 | 205,249 | 12.1 | % | 62.2 | % | ||||||||||
| 2016 |
2,902 | 134,400 | 137,302 | 8.1 | % | 70.3 | % | ||||||||||
| 2017 |
3,110 | 200,000 | 203,110 | 12.0 | % | 82.3 | % | ||||||||||
| 2018 |
3,321 | — | 3,321 | 0.2 | % | 82.5 | % | ||||||||||
| Thereafter |
53,067 | 243,038 | 296,105 | 17.5 | % | 100.0 | % | ||||||||||
| Total |
$ | 125,660 | $ | 1,564,754 | $ | 1,690,414 | (2) | 100.0 | % | ||||||||
Notes:
| (1) | Our $300 million revolving credit facility matures on July 27, 2011. As of March 31, 2010, there was $0 drawn under this credit facility. |
| (2) | The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net discount or premium on certain mortgage loans, senior notes and debentures as of March 31, 2010. |
13
Federal Realty Investment Trust
Summary of Redevelopment Opportunities
March 31, 2010
Current Redevelopment Opportunities (1) ($ millions)
| Property |
Location |
Opportunity |
Projected ROI (2) |
Projected Cost (1) |
Cost to Date | ||||||||
| Projects Anticipated to Stabilize in 2010 (3) |
|||||||||||||
| Bethesda Row (Hampden Lane) |
Bethesda, MD | Construction of new three level building leased to fitness center and two additional ground level retail spaces. | 10 | % | $ | 14 | $ | 9 | |||||
| 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 | |||||
| Barracks Road |
Charlottesville, VA | Expansion of Bed, Bath and Beyond and creation of two additional small shop spaces, utilizing vacant anchor space. | 10 | % | $ | 3 | $ | 2 | |||||
| Lancaster |
Lancaster, PA | Renovation and expansion of existing grocer, new bank pad, and façade renovation | 10 | % | $ | 2 | $ | 1 | |||||
| Langhorne |
Levittown, PA | Pad site addition | 10 | % | $ | 2 | $ | 0 | |||||
| Subtotal: Projects Anticipated to Stabilize in 2010 (3) (4) |
12 | % | $ | 28 | $ | 17 | |||||||
| Projects Anticipated to Stabilize in 2011 (3) |
|||||||||||||
| Santana Row |
San Jose, CA | Five-story building with 15,000 square feet of ground level retail and 65,000 square feet of office space | 6 | % | $ | 44 | $ | 33 | |||||
| Laurel |
Laurel, MD | Pad preparation for new L.A. Fitness, replacing theater and small shop space. Reconfigure parking lot entrance. | 8 | % | $ | 9 | $ | 0 | |||||
| Crossroads |
Highland Park, IL | Combine four spaces in preparation for new fitness operator, replacing vacant anchor and small shop space. | 9 | % | $ | 3 | $ | 1 | |||||
| Atlantic Plaza (JV Property) (6) |
North Reading, MA | Property improvements, including façade renovation, in preparation for new lease with grocery store. | 12 | % | $ | 1 | $ | 0 | |||||
| 6 | % | $ | 57 | $ | 34 | ||||||||
| Total: Projects Anticipated to Stabilize in 2010 and 2011 (3) (4) (5) |
8 | % | $ | 85 | $ | 51 | |||||||
| 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 | |||||||||||
| Federal Plaza |
Rockville, MD | Pad building opportunities | |||||||||||
| Flourtown |
Flourtown, PA | Anchor re-tenanting, small shop renovation, and site improvements | |||||||||||
| Fresh Meadows |
Queens, NY | Potential conversion of 2nd floor office space to retail | |||||||||||
| 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 | |||||||||||
| Pike 7 |
Vienna, VA | 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 | |||||||||||
| Shoppers World |
Charlottesville, VA | Co-terminus leases create potential for remerchandising and reconfiguration of retail spaces | |||||||||||
| Town Center of New Britain |
New Britain, PA | Renovation and expansion of existing grocer | |||||||||||
| Troy |
Parsippany, NJ | Pad site addition | |||||||||||
| Willow Lawn |
Richmond, VA | Demo interior mall, relocate mall tenants, construct new exterior GLA | |||||||||||
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 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 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) | These future redevelopment opportunities are being explored by the Trust. There is no guaranty that the Trust will ultimately pursue or complete any or all of these opportunities. |
| (6) | ROI and costs for Atlantic Plaza, which is owned by our real estate partnership with a discretionary fund created and advised by ING Clarion, reflect our 30% share of the costs and revenue associated with the redevelopment. |
14
Federal Realty Investment Trust
Real Estate Status Report
March 31, 2010
| 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 |
Other Principal | |||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||
| Washington Metropolitan Area |
||||||||||||||||||||||||
| Bethesda Row |
(4 | ) | Washington, DC-MD-VA | 1993-2006/2008 | $ | 194,569 | $ | 25,296 | 520,000 | 97 | % | 40,000 | Giant Food | Barnes & Noble / Landmark Theater / Apple Computer | ||||||||||
| Congressional Plaza |
(5 | ) | Washington, DC-MD-VA | 1965 | 70,529 | 332,000 | 99 | % | 28,000 | Whole Foods | Buy Buy Baby / Container Store | |||||||||||||
| Courthouse Center |
Washington, DC-MD-VA | 1997 | 4,271 | 36,000 | 93 | % | ||||||||||||||||||
| Falls Plaza/Falls Plaza-East |
Washington, DC-MD-VA | 1967-1972 | 11,996 | 144,000 | 100 | % | 51,000 | Giant Food | CVS / Staples | |||||||||||||||
| Federal Plaza |
Washington, DC-MD-VA | 1989 | 62,321 | 32,373 | 248,000 | 87 | % | TJ Maxx / Micro Center / Ross / Trader Joe’s | ||||||||||||||||
| Friendship Center |
Washington, DC-MD-VA | 2001 | 33,454 | 118,000 | 66 | % | Borders / Maggiano’s | |||||||||||||||||
| Gaithersburg Square |
Washington, DC-MD-VA | 1993 | 24,084 | 209,000 | 78 | % | Bed, Bath & Beyond / Ross | |||||||||||||||||
| Idylwood Plaza |
Washington, DC-MD-VA | 1994 | 15,713 | 16,732 | 73,000 | 100 | % | 30,000 | Whole Foods | |||||||||||||||
| Laurel |
Washington, DC-MD-VA | 1986 | 47,947 | 386,000 | 97 | % | 61,000 | Giant Food | Marshalls | |||||||||||||||
| Leesburg Plaza |
(6 | ) | Washington, DC-MD-VA | 1998 | 34,531 | 29,114 | 236,000 | 98 | % | 55,000 | Giant Food | Petsmart / Pier One / Office Depot | ||||||||||||
| Loehmann’s Plaza |
Washington, DC-MD-VA | 1983 | 32,752 | 37,647 | 268,000 | 97 | % | 58,000 | Giant Food | Bally Total Fitness / Loehmann’s Dress Shop | ||||||||||||||
| Mid-Pike Plaza |
Washington, DC-MD-VA | 1982/2007 | 46,004 | 309,000 | 75 | % | Toys R Us / Bally Total Fitness / AC Moore | |||||||||||||||||
| Mount Vernon/South Valley/7770 Richmond Hwy |
(6 | ) | Washington, DC-MD-VA | 2003-2006 | 77,644 | 11,210 | 565,000 | 96 | % | 62,000 | Shoppers Food Warehouse | Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold’s Gym | ||||||||||||
| Old Keene Mill |
Washington, DC-MD-VA | 1976 | 5,970 | 92,000 | 95 | % | 24,000 | Whole Foods | Walgreens | |||||||||||||||
| Pan Am |
Washington, DC-MD-VA | 1993 | 28,341 | 227,000 | 100 | % | 63,000 | Safeway | Micro Center / Michaels | |||||||||||||||
| Pentagon Row |
Washington, DC-MD-VA | 1998 | 87,899 | 54,045 | 296,000 | 98 | % | 45,000 | Harris Teeter | Bally Total Fitness / Bed, Bath & Beyond / DSW | ||||||||||||||
| Pike 7 |
Washington, DC-MD-VA | 1997 | 34,884 | 164,000 | 100 | % | DSW / Staples / TJ Maxx | |||||||||||||||||
| Quince Orchard |
Washington, DC-MD-VA | 1993 | 21,598 | 248,000 | 69 | % | 24,000 | Magruders | Staples | |||||||||||||||
| Rockville Town Square |
Washington, DC-MD-VA | 2006-2007 | 37,369 | 182,000 | 97 | % | CVS / Gold’s Gym | |||||||||||||||||
| Rollingwood Apartments |
Washington, DC-MD-VA | 1971 | 7,758 | 23,799 | N/A | 96 | % | |||||||||||||||||
| Sam’s Park & Shop |
Washington, DC-MD-VA | 1995 | 12,243 | 49,000 | 100 | % | Petco | |||||||||||||||||
| Tower |
Washington, DC-MD-VA | 1998 | 20,279 | 112,000 | 91 | % | Talbots | |||||||||||||||||
| Tyson’s Station |
Washington, DC-MD-VA | 1978 | 3,684 | 5,853 | 49,000 | 100 | % | Trader Joe’s | ||||||||||||||||
| Village at Shirlington |
(4 | ) | Washington, DC-MD-VA | 1995 | 52,425 | 6,300 | 254,000 | 99 | % | 28,000 | Harris Teeter | AMC Loews / Carlyle Grand Café | ||||||||||||
| Wildwood |
Washington, DC-MD-VA | 1969 | 17,712 | 25,200 | 84,000 | 94 | % | 20,000 | Balducci’s | CVS | ||||||||||||||
| Total Washington Metropolitan Area | 985,977 | 5,201,000 | 93 | % | ||||||||||||||||||||
| Philadelphia Metropolitan Area |
||||||||||||||||||||||||
| Andorra |
Philadelphia, PA-NJ | 1988 | 23,306 | 267,000 | 94 | % | 24,000 | Acme Markets | Kohl’s / Staples / L.A. Fitness | |||||||||||||||
| Bala Cynwyd |
Philadelphia, PA-NJ | 1993 | 34,597 | 282,000 | 100 | % | 45,000 | Acme Markets | Lord & Taylor / L.A. Fitness | |||||||||||||||
| Ellisburg Circle |
Philadelphia, PA-NJ | 1992 | 27,728 | 268,000 | 98 | % | 47,000 | Genuardi’s | Buy Buy Baby / Stein Mart | |||||||||||||||
| Feasterville |
Philadelphia, PA-NJ | 1980 | 11,906 | 111,000 | 91 | % | 53,000 | Genuardi’s | OfficeMax | |||||||||||||||
| Flourtown |
Philadelphia, PA-NJ | 1980 | 15,670 | 164,000 | 49 | % | 42,000 | Genuardi’s | ||||||||||||||||
| Langhorne Square |
Philadelphia, PA-NJ | 1985 | 19,164 | 216,000 | 94 | % | 55,000 | Redner’s Warehouse Mkts. | Marshalls | |||||||||||||||
| Lawrence Park |
Philadelphia, PA-NJ | 1980 | 29,869 | 28,669 | 353,000 | 98 | % | 53,000 | Acme Markets | CHI / TJ Maxx / HomeGoods | ||||||||||||||
| Northeast |
Philadelphia, PA-NJ | 1983 | 22,826 | 284,000 | 89 | % | Burlington Coat / Marshalls | |||||||||||||||||
| Town Center of New Britain |
Philadelphia, PA-NJ | 2006 | 14,388 | 125,000 | 86 | % | 36,000 | Giant Food | Rite Aid | |||||||||||||||
| Willow Grove |
Philadelphia, PA-NJ | 1984 | 27,325 | 216,000 | 96 | % | Barnes & Noble / Marshalls | |||||||||||||||||
| Wynnewood |
Philadelphia, PA-NJ | 1996 | 36,675 | 29,217 | 255,000 | 97 | % | 98,000 | Genuardi’s | Bed, Bath & Beyond / Borders / Old Navy | ||||||||||||||
| Total Philadelphia Metropolitan Area | 263,454 | 2,541,000 | 92 | % | ||||||||||||||||||||
| California |
||||||||||||||||||||||||
| Colorado Blvd |
Los Angeles-Long Beach, CA | 1996-1998 | 16,633 | 69,000 | 96 | % | Pottery Barn / Banana Republic | |||||||||||||||||
| Crow Canyon |
San Ramon, CA | 2005-2007 | 65,079 | 20,709 | 242,000 | 91 | % | 58,000 | Lucky | Loehmann’s / Rite Aid | ||||||||||||||
| Escondido |
(7 | ) | San Diego, CA | 1996 | 28,798 | 222,000 | 94 | % | TJ Maxx / Toys R Us | |||||||||||||||
| Fifth Ave |
San Diego, CA | 1996-1997 | 12,969 | 51,000 | 93 | % | Urban Outfitters | |||||||||||||||||
| Hermosa Ave |
Los Angeles-Long Beach, CA | 1997 | 5,491 | 22,000 | 72 | % | ||||||||||||||||||
| Hollywood Blvd |
(8 | ) | Los Angeles-Long Beach, CA | 1999 | 37,701 | 153,000 | 75 | % | DSW / L.A. Fitness / Fresh & Easy | |||||||||||||||
| Kings Court |
(6 | ) | San Jose, CA | 1998 | 11,608 | 79,000 | 100 | % | 25,000 | Lunardi’s Super Market | CVS | |||||||||||||
| Old Town Center |
San Jose, CA | 1997 | 34,265 | 96,000 | 98 | % | Borders / Gap Kids / Banana Republic | |||||||||||||||||
| Santana Row |
San Jose, CA | 1997 | 536,962 | 582,000 | 98 | % | Crate & Barrel / Container Store / Best Buy / Borders / CineArts Theatre / Hotel Valencia | |||||||||||||||||
| Third St Promenade |
Los Angeles-Long Beach, CA | 1996-2000 | 77,955 | 209,000 | 98 | % | J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch | |||||||||||||||||
| Westgate |
San Jose, CA | 2004 | 116,370 | 645,000 | 95 | % | 38,000 | Safeway | Target / Burlington Coat Factory / Barnes & Noble / Ross / Michaels | |||||||||||||||
| 150 Post Street |
San Francisco, CA | 1997 | 37,530 | 101,000 | 97 | % | Brooks Brothers / H & M | |||||||||||||||||
| Total California | 981,361 | 2,471,000 | 94 | % | ||||||||||||||||||||
| New York / New Jersey |
||||||||||||||||||||||||
| Brick Plaza |
Monmouth-Ocean, NJ | 1989 | 57,095 | 29,901 | 409,000 | 97 | % | 66,000 | A&P | AMC Loews / Barnes & Noble / Sports Authority | ||||||||||||||
| Forest Hills |
New York, NY | 1997 | 8,100 | 46,000 | 96 | % | Midway Theatre | |||||||||||||||||
| Fresh Meadows |
New York, NY | 1997 | 69,397 | 405,000 | 99 | % | Kohl’s / AMC Loews | |||||||||||||||||
| Hauppauge |
Nassau-Suffolk, NY | 1998 | 27,968 | 15,248 | 133,000 | 100 | % | 61,000 | Shop Rite | AC Moore | ||||||||||||||
| Huntington |
Nassau-Suffolk, NY | 1988/2007 | 38,672 | 292,000 | 100 | % | Buy Buy Baby / Toys R Us / Bed, Bath & Beyond / Barnes & Noble / Michaels | |||||||||||||||||
| Melville Mall |
(9 | ) | Nassau-Suffolk, NY | 2006 | 68,643 | 23,609 | 248,000 | 100 | % | 54,000 | Waldbaum’s | Kohl’s / Marshalls | ||||||||||||
| Mercer Mall |
(4 | ) | Trenton, NJ | 2003 | 104,160 | 49,719 | 501,000 | 99 | % | 75,000 | Shop Rite | Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan | ||||||||||||
| Troy |
Newark, NJ | 1980 | 25,293 | 207,000 | 86 | % | 64,000 | Pathmark | L.A. Fitness | |||||||||||||||
| Total New York / New Jersey | 399,328 | 2,241,000 | 97 | % | ||||||||||||||||||||
15
Federal Realty Investment Trust
Real Estate Status Report
March 31, 2010
| Property Name |
MSA Description |
Year |
Real Estate at Cost |
Mortgage and/or Capital Lease Obligation (1) |
GLA (2) | % Leased |
Grocery Anchor GLA (3) |
Grocery |
Other Principal | |||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||
| New England |
||||||||||||||||||||||||
| Assembly Square |
Boston-Cambridge-Quincy, MA-NH | 2005-2009 | 173,430 | 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 | 29,832 | 7,912 | 222,000 | 99 | % | 16,000 | Sav-A-Lot | Home Depot | ||||||||||||||
| Dedham Plaza |
Boston-Cambridge-Quincy, MA-NH | 1993 | 32,276 | 242,000 | 91 | % | 80,000 | Star Market | ||||||||||||||||
| Linden Square |
Boston-Cambridge-Quincy, MA-NH | 2006 | 143,022 | 218,000 | 91 | % | 50,000 | Roche Brothers Supermarkets | 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 | 15,663 | 149,000 | 100 | % | 50,000 | Hannaford | TJ Maxx | |||||||||||||||
| Saugus Plaza |
Boston-Cambridge-Quincy, MA-NH | 1996 | 13,594 | 170,000 | 91 | % | 55,000 | Super Stop & Shop | Kmart | |||||||||||||||
| Total New England | 417,185 | 1,381,000 | 96 | % | ||||||||||||||||||||
| Baltimore |
||||||||||||||||||||||||
| Governor Plaza |
Baltimore, MD | 1985 | 22,130 | 267,000 | 100 | % | 16,500 | Aldi | Bally Total Fitness / Office Depot | |||||||||||||||
| Perring Plaza |
Baltimore, MD | 1985 | 27,125 | 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 | 94,555 | 58,661 | 298,000 | 100 | % | AMC Loews / Old Navy / Barnes & Noble / AC Moore | ||||||||||||||
| The Shoppes at Nottingham Square |
Baltimore, MD | 2007 | 27,569 | 53,000 | 100 | % | ||||||||||||||||||
| White Marsh Plaza |
Baltimore, MD | 2007 | 24,966 | 9,791 | 80,000 | 100 | % | 54,000 | Giant Food | |||||||||||||||
| White Marsh Other |
Baltimore, MD | 2007 | 28,858 | 49,000 | 100 | % | ||||||||||||||||||
| Total Baltimore | 225,203 | 1,148,000 | 99 | % | ||||||||||||||||||||
| Chicago |
||||||||||||||||||||||||
| Crossroads |
Chicago, IL | 1993 | 24,273 | 168,000 | 93 | % | Golfsmith / Guitar Center | |||||||||||||||||
| Finley Square |
Chicago, IL | 1995 | 31,838 | 315,000 | 99 | % | Bed, Bath & Beyond / Buy Buy Baby / Petsmart | |||||||||||||||||
| Garden Market |
Chicago, IL | 1994 | 12,028 | 140,000 | 96 | % | 63,000 | Dominick’s | Walgreens | |||||||||||||||
| North Lake Commons |
Chicago, IL | 1994 | 13,957 | 129,000 | 89 | % | 77,000 | Dominick’s | ||||||||||||||||
| Total Chicago |
82,096 | 752,000 | 95 | % | ||||||||||||||||||||
| South Florida |
||||||||||||||||||||||||
| Courtyard Shops |
Miami-Ft Lauderdale | 2008 | 38,945 | 7,462 | 130,000 | 92 | % | 49,000 | Publix | |||||||||||||||
| Del Mar Village |
Miami-Ft Lauderdale | 2008 | 54,608 | 178,000 | 93 | % | 44,000 | Winn Dixie | CVS | |||||||||||||||
| Total South Florida | 93,553 | 308,000 | 92 | % | ||||||||||||||||||||
| Other |
||||||||||||||||||||||||
| Barracks Road |
Charlottesville, VA | 1985 | 48,129 | 40,447 | 486,000 | 96 | % | 99,000 | Harris Teeter / Kroger | Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels | ||||||||||||||
| Bristol Plaza |
Hartford, CT | 1995 | 27,768 | 272,000 | 85 | % | 74,000 | Stop & Shop | TJ Maxx | |||||||||||||||
| Eastgate |
Raleigh-Durham-Chapel Hill, NC | 1986 | 26,082 | 153,000 | 100 | % | Stein Mart / Trader Joe’s | |||||||||||||||||
| Gratiot Plaza |
Detroit, MI | 1973 | 18,687 | 217,000 | 99 | % | 69,000 | Kroger | Bed, Bath & Beyond / Best Buy / DSW | |||||||||||||||
| Greenwich Avenue |
New Haven-Bridgeport-Stamford-Waterbury | 1995 | 13,969 | 36,000 | 100 | % | Saks Fifth Avenue | |||||||||||||||||
| Houston St |
San Antonio, TX | 1998 | 69,959 | 196,000 | 88 | % | Hotel Valencia / Walgreens | |||||||||||||||||
| Lancaster |
(11 | ) | Lancaster, PA | 1980 | 11,617 | 4,907 | 107,000 | 98 | % | 39,000 | Giant Food | Michaels | ||||||||||||
| Shoppers’ World |
Charlottesville, VA | 2007 | 30,072 | 5,699 | 169,000 | 94 | % | 28,000 | Whole Foods | Staples | ||||||||||||||
| Shops at Willow Lawn |
Richmond-Petersburg, VA | 1983 | 76,531 | 476,000 | 87 | % | 60,000 | Kroger | Old Navy / Staples / Ross | |||||||||||||||
| Total Other | 322,814 | 2,112,000 | 92 | % | ||||||||||||||||||||
| Grand Total |
$ | 3,770,971 | $ | 599,520 | 18,155,000 | 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. |
16
Federal Realty Investment Trust
Retail Leasing Summary (1)
March 31, 2010
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 2010 |
69 | 100 | % | 307,962 | $ | 29.19 | $ | 25.11 | $ | 1,255,084 | 16 | % | 27 | % | 6.5 | $ | 6,909,627 | $ | 22.44 | |||||||||||
| 4th Quarter 2009 |
82 | 100 | % | 360,218 | $ | 27.58 | $ | 26.64 | $ | 337,501 | 4 | % | 13 | % | 7.0 | $ | 4,550,199 | $ | 12.63 | |||||||||||
| 3rd Quarter 2009 |
90 | 100 | % | 334,690 | $ | 29.38 | $ | 27.00 | $ | 794,017 | 9 | % | 17 | % | 7.5 | $ | 3,684,641 | $ | 11.01 | |||||||||||
| 2nd Quarter 2009 |
69 | 100 | % | 315,214 | $ | 26.87 | $ | 23.25 | $ | 1,141,114 | 16 | % | 29 | % | 5.9 | $ | 1,194,192 | $ | 3.79 | |||||||||||
| Total -12 months |
310 | 100 | % | 1,318,084 | $ | 28.24 | $ | 25.56 | $ | 3,527,716 | 10 | % | 21 | % | 6.8 | $ | 16,338,659 | $ | 12.40 | |||||||||||
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 2010 |
29 | 42 | % | 157,619 | $ | 23.00 | $ | 20.98 | $ | 318,458 | 10 | % | 17 | % | 8.9 | $ | 6,828,877 | $ | 43.33 | ||||||||||||
| 4th Quarter 2009 |
32 | 39 | % | 176,966 | $ | 24.89 | $ | 24.77 | $ | 20,465 | 0 | % | 10 | % | 10.6 | $ | 4,328,199 | $ | 24.46 | ||||||||||||
| 3rd Quarter 2009 |
38 | 42 | % | 187,140 | $ | 27.25 | $ | 22.62 | $ | 866,840 | 20 | % | 30 | % | 9.8 | $ | 3,622,041 | $ | 19.35 | ||||||||||||
| 2nd Quarter 2009 |
26 | 38 | % | 73,693 | $ | 24.27 | $ | 27.68 | $ | (251,200 | ) | -12 | % | 6 | % | 6.8 | $ | 1,194,192 | $ | 16.20 | |||||||||||
| Total -12 months |
125 | 40 | % | 595,418 | $ | 25.05 | $ | 23.45 | $ | 954,563 | 7 | % | 17 | % | 9.5 | $ | 15,973,309 | $ | 26.83 | ||||||||||||
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 2010 |
40 | 58 | % | 150,343 | $ | 35.67 | $ | 29.44 | $ | 936,626 | 21 | % | 35 | % | 4.9 | $ | 80,750 | $ | 0.54 | ||||||||||||
| 4th Quarter 2009 |
50 | 61 | % | 183,252 | $ | 30.17 | $ | 28.44 | $ | 317,036 | 6 | % | 16 | % | 4.1 | $ | 222,000 | $ | 1.21 | ||||||||||||
| 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 | $ | — | $ | — | ||||||||||||
| Total -12 months |
185 | 60 | % | 722,666 | $ | 30.87 | $ | 27.30 | $ | 2,573,153 | 13 | % | 23 | % | 5.0 | $ | 365,350 | $ | 0.51 | ||||||||||||
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. | |||||||||
| 1st Quarter 2010 |
72 | 317,932 | $ | 28.62 | 6.5 | $ | 6,986,698 | $ | 21.98 | ||||||
| 4th Quarter 2009 |
89 | 396,709 | $ | 27.12 | 7.4 | $ | 4,900,788 | $ | 12.35 | ||||||
| 3rd Quarter 2009 |
94 | 356,624 | $ | 28.76 | 7.6 | $ | 4,703,184 | $ | 13.19 | ||||||
| 2nd Quarter 2009 |
71 | 318,703 | $ | 27.03 | 5.9 | $ | 1,503,836 | $ | 4.72 | ||||||
| Total - 12 months |
326 | 1,389,968 | $ | 27.86 | 6.9 | $ | 18,094,506 | $ | 13.02 | ||||||
Notes:
| (1) | Leases on this report represent retail activity only; office and residential leases are not included. |
| (2) | Comparable leases represent those leases signed on spaces for which there was a former tenant. |
| (3) | Contractual rent represents contractual minimum rent under the new lease for the first 12 months of the term. |
| (4) | Prior rent represents minimum rent and percentage rent, if any, paid by the prior tenant in the final 12 months of the term. |
| (5) | Weighted average is determined on the basis of square footage. |
| (6) | See Glossary of Terms. |
| (7) | Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new. |
17
Federal Realty Investment Trust
Lease Expirations
March 31, 2010
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) | |||||||||||||||
| 2010 |
181,000 | 2 | % | $ | 11.49 | 483,000 | 7 | % | $ | 28.08 | 665,000 | 4 | % | $ | 23.52 | |||||||||
| 2011 |
938,000 | 10 | % | $ | 14.30 | 1,144,000 | 16 | % | $ | 29.37 | 2,082,000 | 12 | % | $ | 22.58 | |||||||||
| 2012 |
978,000 | 10 | % | $ | 13.17 | 1,146,000 | 16 | % | $ | 31.02 | 2,124,000 | 13 | % | $ | 22.80 | |||||||||
| 2013 |
1,040,000 | 11 | % | $ | 15.30 | 1,008,000 | 13 | % | $ | 32.33 | 2,048,000 | 12 | % | $ | 23.68 | |||||||||
| 2014 |
1,398,000 | 15 | % | $ | 16.08 | 877,000 | 12 | % | $ | 33.53 | 2,276,000 | 13 | % | $ | 22.79 | |||||||||
| 2015 |
778,000 | 8 | % | $ | 14.21 | 766,000 | 10 | % | $ | 29.43 | 1,544,000 | 9 | % | $ | 21.76 | |||||||||
| 2016 |
508,000 | 5 | % | $ | 17.52 | 536,000 | 7 | % | $ | 30.49 | 1,044,000 | 6 | % | $ | 24.18 | |||||||||
| 2017 |
620,000 | 6 | % | $ | 17.25 | 429,000 | 6 | % | $ | 29.92 | 1,048,000 | 6 | % | $ | 22.45 | |||||||||
| 2018 |
672,000 | 7 | % | $ | 11.60 | 297,000 | 4 | % | $ | 34.58 | 969,000 | 6 | % | $ | 18.64 | |||||||||
| 2019 |
487,000 | 5 | % | $ | 17.27 | 202,000 | 3 | % | $ | 41.62 | 690,000 | 4 | % | $ | 24.38 | |||||||||
| Thereafter |
2,010,000 | 21 | % | $ | 17.11 | 461,000 | 6 | % | $ | 35.61 | 2,469,000 | 15 | % | $ | 20.58 | |||||||||
| Total (3) |
9,610,000 | 100 | % | $ | 15.40 | 7,349,000 | 100 | % | $ | 31.50 | 16,959,000 | 100 | % | $ | 22.38 | |||||||||
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) | |||||||||||||||
| 2010 |
107,000 | 1 | % | $ | 13.21 | 368,000 | 5 | % | $ | 27.57 | 476,000 | 3 | % | $ | 24.28 | |||||||||
| 2011 |
278,000 | 3 | % | $ | 12.25 | 658,000 | 9 | % | $ | 28.77 | 935,000 | 6 | % | $ | 23.89 | |||||||||
| 2012 |
185,000 | 2 | % | $ | 14.24 | 651,000 | 9 | % | $ | 31.71 | 837,000 | 5 | % | $ | 27.81 | |||||||||
| 2013 |
156,000 | 2 | % | $ | 15.34 | 526,000 | 7 | % | $ | 32.89 | 682,000 | 4 | % | $ | 28.88 | |||||||||
| 2014 |
225,000 | 2 | % | $ | 10.24 | 513,000 | 7 | % | $ | 35.98 | 739,000 | 4 | % | $ | 28.10 | |||||||||
| 2015 |
134,000 | 1 | % | $ | 18.90 | 465,000 | 6 | % | $ | 29.73 | 599,000 | 4 | % | $ | 27.31 | |||||||||
| 2016 |
205,000 | 2 | % | $ | 18.70 | 453,000 | 6 | % | $ | 29.74 | 658,000 | 4 | % | $ | 26.30 | |||||||||
| 2017 |
152,000 | 2 | % | $ | 24.97 | 534,000 | 7 | % | $ | 31.37 | 686,000 | 4 | % | $ | 29.96 | |||||||||
| 2018 |
305,000 | 3 | % | $ | 13.91 | 426,000 | 6 | % | $ | 36.64 | 731,000 | 4 | % | $ | 27.16 | |||||||||
| 2019 |
353,000 | 4 | % | $ | 19.06 | 353,000 | 5 | % | $ | 34.02 | 706,000 | 4 | % | $ | 26.54 | |||||||||
| Thereafter |
7,510,000 | 78 | % | $ | 15.28 | 2,402,000 | 33 | % | $ | 30.96 | 9,910,000 | 58 | % | $ | 19.08 | |||||||||
| Total (3) |
9,610,000 | 100 | % | $ | 15.40 | 7,349,000 | 100 | % | $ | 31.50 | 16,959,000 | 100 | % | $ | 22.38 | |||||||||
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, 2010. |
| (3) | Represents occupied square footage as of March 31, 2010. |
| (4) | Individual items may not add up to total due to rounding. |
18
Federal Realty Investment Trust
Portfolio Leased Statistics
March 31, 2010
Overall Portfolio Statistics (1)
| At March 31, 2010 | At March 31, 2009 | |||||||||||||
| Type |
Size | Leased | Leased % | Size | Leased | Leased % | ||||||||
| Retail Properties (2) (sf) |
18,155,000 | 17,092,000 | 94.1 | % | 18,142,000 | 17,098,000 | 94.2 | % | ||||||
| Residential Properties (3) (units) |
903 | 880 | 97.5 | % | 903 | 850 | 94.1 | % | ||||||
Same Center Statistics (1)
| At March 31, 2010 | At March 31, 2009 | |||||||||||||
| Type |
Size | Leased | Leased % | Size | Leased | Leased % | ||||||||
| Retail Properties (2) (4) (sf) |
17,498,000 | 16,545,000 | 94.6 | % | 17,500,000 | 16,542,000 | 94.5 | % | ||||||
| Residential Properties (3) (units) |
903 | 880 | 97.5 | % | 903 | 850 | 94.1 | % | ||||||
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 March 31, 2010 and 2009 include Rollingwood, The Crest at Congressional and the residential rental units at Santana Row and Bethesda Row. |
| (4) | Excludes properties purchased, sold or under redevelopment. |
19
Federal Realty Investment Trust
Summary of Top 25 Tenants
March 31, 2010
| 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 | Bed, Bath & Beyond, Inc. |
$ | 9,960,000 | 2.62 | % | 658,000 | 3.62 | % | 15 | ||||||||
| 2 | Ahold USA, Inc. |
$ | 8,818,000 | 2.32 | % | 592,000 | 3.26 | % | 11 | ||||||||
| 3 | TJX Companies, The |
$ | 7,649,000 | 2.02 | % | 540,000 | 2.97 | % | 15 | ||||||||
| 4 | Safeway, Inc. |
$ | 6,971,000 | 1.84 | % | 481,000 | 2.65 | % | 9 | ||||||||
| 5 | Gap, Inc., The |
$ | 6,737,000 | 1.78 | % | 220,000 | 1.21 | % | 11 | ||||||||
| 6 | CVS Corporation |
$ | 6,255,000 | 1.65 | % | 205,000 | 1.13 | % | 18 | ||||||||
| 7 | Barnes & Noble, Inc. |
$ | 4,725,000 | 1.24 | % | 201,000 | 1.11 | % | 8 | ||||||||
| 8 | OPNET Technologies, Inc. |
$ | 3,840,000 | 1.01 | % | 83,000 | 0.46 | % | 2 | ||||||||
| 9 | L.A. Fitness International LLC |
$ | 3,817,000 | 1.01 | % | 178,000 | 0.98 | % | 4 | ||||||||
| 10 | Best Buy Stores, L.P. |
$ | 3,502,000 | 0.92 | % | 99,000 | 0.55 | % | 3 | ||||||||
| 11 | Staples, Inc. |
$ | 3,479,000 | 0.92 | % | 187,000 | 1.03 | % | 9 | ||||||||
| 12 | DSW, Inc |
$ | 3,294,000 | 0.87 | % | 125,000 | 0.69 | % | 5 | ||||||||
| 13 | Wells Fargo Bank, N.A. (includes Wachovia Corporation) |
$ | 3,265,000 | 0.86 | % | 70,000 | 0.39 | % | 15 | ||||||||
| 14 | Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food) |
$ | 3,227,000 | 0.85 | % | 338,000 | 1.86 | % | 7 | ||||||||
| 15 | Bank of America, N.A. |
$ | 2,989,000 | 0.79 | % | 68,000 | 0.37 | % | 20 | ||||||||
| 16 | Ross Stores, Inc. |
$ | 2,895,000 | 0.76 | % | 149,000 | 0.82 | % | 5 | ||||||||
| 17 | Home Depot, Inc. |
$ | 2,832,000 | 0.75 | % | 335,000 | 1.85 | % | 4 | ||||||||
| 18 | Kohl’s Corporation |
$ | 2,793,000 | 0.74 | % | 322,000 | 1.77 | % | 3 | ||||||||
| 19 | Wakefern Food Corporation |
$ | 2,783,000 | 0.73 | % | 136,000 | 0.75 | % | 2 | ||||||||
| 20 | Toys R Us, Inc. |
$ | 2,708,000 | 0.71 | % | 198,000 | 1.09 | % | 5 | ||||||||
| 21 | Bally Total Fitness Corporation |
$ | 2,608,000 | 0.69 | % | 156,000 | 0.86 | % | 5 | ||||||||
| 22 | Great Atlantic & Pacific Tea Co |
$ |
2,517,000 |
|
0.66 | % | 217,000 | 1.20 | % | 4 | |||||||
| 23 | Container Store, Inc., The |
$ | 2,496,000 | 0.66 | % | 52,000 | 0.29 | % | 2 | ||||||||
| 24 | A.C. Moore, Inc. |
$ | 2,483,000 | 0.65 | % | 141,000 | 0.78 | % | 6 | ||||||||
| 25 | AMC Entertainment Inc. |
$ | 2,378,000 | 0.63 | % | 166,000 | 0.91 | % | 4 | ||||||||
| Totals - Top 25 Tenants |
$ | 105,021,000 | 27.68 | % | 5,917,000 | 32.60 | % | 192 | |||||||||
| Total: (1) |
$ | 379,525,000 | (2) | 18,155,000 | (3) | 2,415 | |||||||||||
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 March 31, 2010. |
| (3) | Excludes redevelopment square footage not yet placed in service. |
| (4) | Individual items may not add up to total due to rounding. |
20
Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance
March 31, 2010
| 2010 Guidance | ||||||||
| (Dollars in millions except per share amounts) (1) |
||||||||
| Funds from Operations available for common shareholders (FFO) |
||||||||
| Net income |
$ | 124 | $ | 128 | ||||
| Net income attributable to noncontrolling interests |
(5 | ) | (5 | ) | ||||
| Gain on sale of real estate |
— | — | ||||||
| Depreciation and amortization of real estate & real estate partnership assets |
108 | 108 | ||||||
| Amortization of initial direct costs of leases |
9 | 9 | ||||||
| Funds from operations |
235 | 240 | ||||||
| Dividends on preferred stock |
(1 | ) | (1 | ) | ||||
| Income attributable to operating partnership units |
1 | 1 | ||||||
| Income attributable to unvested shares |
(1 | ) | (1 | ) | ||||
| FFO |
235 | 239 | ||||||
| Litigation provision (2) |
1 | 1 | ||||||
| FFO excluding litigation provision |
$ | 236 | $ | 240 | ||||
| Weighted average number of common shares, diluted |
61.7 | 61.7 | ||||||
| FFO per diluted share |
$ | 3.81 | $ | 3.88 | ||||
| Litigation provision (2) |
0.01 | 0.01 | ||||||
| FFO per diluted share excluding litigation provision |
$ | 3.82 | $ | 3.89 | ||||
Notes:
| (1) | Individual items may not add up to total due to rounding. |
| (2) | Amount represents certain costs related to the litigation and appeal process over a parcel of land located adjacent to Santana Row. |
21
Federal Realty Investment Trust
Summarized Income Statements and Balance Sheets - Joint Venture
March 31, 2010
CONSOLIDATED INCOME STATEMENTS
| Three months ended March 31, | ||||||||
| 2010 | 2009 | |||||||
| (in thousands) | ||||||||
| Revenues |
||||||||
| Rental income |
$ | 4,643 | $ | 4,665 | ||||
| Other property income |
12 | 23 | ||||||
| 4,655 | 4,688 | |||||||
| Expenses |
||||||||
| Rental |
1,355 | 1,106 | ||||||
| Real estate taxes |
607 | 550 | ||||||
| Depreciation and amortization |
1,268 | 1,271 | ||||||
| 3,230 | 2,927 | |||||||
| Operating income |
1,425 | 1,761 | ||||||
| Interest expense |
(852 | ) | (1,133 | ) | ||||
| Net income |
$ | 573 | $ | 628 | ||||
| CONSOLIDATED BALANCE SHEETS |
||||||||
| March 31, 2010 |
December 31, 2009 |
|||||||
| (in thousands) | ||||||||
| ASSETS |
||||||||
| Real estate, at cost |
$ | 203,399 | $ | 203,122 | ||||
| Less accumulated depreciation and amortization |
(20,604 | ) | (19,365 | ) | ||||
| Net real estate |
182,795 | 183,757 | ||||||
| Cash and cash equivalents |
3,614 | 2,959 | ||||||
| Other assets |
6,574 | 6,853 | ||||||
| TOTAL ASSETS |
$ | 192,983 | $ | 193,569 | ||||
| LIABILITIES AND PARTNERS’ CAPITAL |
||||||||
| Liabilities |
||||||||
| Mortgages payable |
$ | 57,732 | $ | 57,780 | ||||
| Other liabilities |
6,108 | 6,101 | ||||||
| Total liabilities |
63,840 | 63,881 | ||||||
| Partners’ capital |
129,143 | 129,688 | ||||||
| TOTAL LIABILITIES AND PARTNERS’ CAPITAL |
$ | 192,983 | $ | 193,569 | ||||
22
Federal Realty Investment Trust
Summary of Outstanding Debt and Debt Maturities - Joint Venture
March 31, 2010
OUTSTANDING DEBT
| Maturity | Stated Interest Rate as of March 31, 2010 |
Balance | ||||||
| (in thousands) | ||||||||
| Mortgage Loans |
||||||||
| Secured Fixed Rate |
||||||||
| Plaza del Mercado |
07/05/14 | 5.77 | % (a) | $ | 12,847 | |||
| Atlantic Plaza |
12/01/14 | 5.12 | % (b) | 10,500 | ||||
| Barcroft Plaza |
07/01/16 | 5.99 | % (b)(c) | 20,785 | ||||
| Greenlawn Plaza |
07/01/16 | 5.90 | % (b) | 13,600 | ||||
| Total Fixed Rate Debt | $ | 57,732 | ||||||
Debt Maturities
(in thousands)
| Year |
Scheduled Amortization |
Maturities | Total | Percent of Debt Maturing |
Cumulative Percent of Debt Maturing |
||||||||||
| 2010 |
$ | 148 | $ | — | $ | 148 | 0.2 | % | 0.2 | % | |||||
| 2011 |
208 | — | 208 | 0.4 | % | 0.6 | % | ||||||||
| 2012 |
220 | — | 220 | 0.4 | % | 1.0 | % | ||||||||
| 2013 |
233 | — | 233 | 0.4 | % | 1.4 | % | ||||||||
| 2014 |
142 | 22,396 | 22,538 | 39.0 | % | 40.4 | % | ||||||||
| 2015 |
— | — | — | 0.0 | % | 40.4 | % | ||||||||
| 2016 |
— | 34,385 | 34,385 | 59.6 | % | 100.0 | % | ||||||||
| Total |
$ | 951 | $ | 56,781 | $ | 57,732 | 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 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%. |
23
Federal Realty Investment Trust
Real Estate Status Report - Joint Venture
March 31, 2010
| Property Name |
MSA Description |
Year Acquired |
Real Estate at Cost |
Mortgage or Capital Lease Obligation |
GLA | % Leased |
Grocery Anchor GLA (1) |
Grocery |
Other Principal | ||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||
| Washington Metropolitan Area |
|||||||||||||||||||||
| Barcroft Plaza |
Washington, DC-MD-VA | 2006- 2007 |
34,118 | $ | 20,785 | 101,000 | 88 | % | 46,000 | Harris Teeter | Bank of America | ||||||||||
| Free State Shopping Center |
Washington, DC-MD-VA | 2007 | 65,829 | 279,000 | 87 | % | 73,000 | Giant Food | TJ Maxx / Ross / Office Depot | ||||||||||||
| Plaza del Mercado |
Washington, DC-MD-VA | 2004 | 21,308 | 12,847 | 96,000 | 93 | % | 25,000 | Giant Food | CVS | |||||||||||
| Total Washington Metropolitan Area | 121,255 | 476,000 | 89 | % | |||||||||||||||||
| New York / New Jersey |
|||||||||||||||||||||
| Greenlawn Plaza |
Nassau-Suffolk, NY | 2006 | 20,020 | 13,600 | 106,000 | 99 | % | 46,000 | Waldbaum’s | Tuesday Morning | |||||||||||
| Total New York / New Jersey | 20,020 | 106,000 | 99 | % | |||||||||||||||||
| New England |
|||||||||||||||||||||
| Atlantic Plaza |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 16,922 | 10,500 | 123,000 | 39 | % | Sears | |||||||||||||
| Campus Plaza |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 22,196 | 116,000 | 95 | % | 46,000 | Roche Brothers | Burlington Coat Factory | ||||||||||||
| Pleasant Shops |
Boston-Worcester-Lawrence-Lowell-Brockton, MA | 2004 | 23,006 | 129,000 | 92 | % | 38,000 | Foodmaster | Marshalls | ||||||||||||
| Total New England | 62,124 | 368,000 | 75 | % | |||||||||||||||||
| Grand Totals |
$ | 203,399 | $ | 57,732 | 950,000 | 84 | % | ||||||||||||||
Note:
| (1) | Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more. |
24
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 net income attributable to the Trust to EBITDA and Adjusted EBITDA for the three months ended March 31, 2010 and 2009 is as follows:
| Three Months Ended March 31, |
||||||||
| 2010 | 2009 | |||||||
| (in thousands) | ||||||||
| Net income attributable to the Trust |
$ | 29,220 | $ | 10,484 | ||||
| Depreciation and amortization |
28,932 | 28,592 | ||||||
| Interest expense |
25,962 | 23,583 | ||||||
| Early extinguishment of debt |
2,801 | (14 | ) | |||||
| Other interest income |
(182 | ) | (90 | ) | ||||
| EBITDA |
86,733 | 62,555 | ||||||
| Gain on sale of real estate |
— | (915 | ) | |||||
| Adjusted EBITDA |
$ | 86,733 | $ | 61,640 | ||||
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.