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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2010	Oct. 29, 2010
Statement [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q3
Trading Symbol	FRT
Entity Registrant Name	FEDERAL REALTY INVESTMENT TRUST
Entity Central Index Key	0000034903
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		61,522,294

Consolidated Balance Sheets - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2010	Dec. 31, 2009
Real estate, at cost
Operating (including $97,265 and $68,643 of consolidated variable interest entities, respectively)	$ 3,688,805	$ 3,626,476
Construction-in-progress	158,060	132,758
Real Estate Investment Property, at Cost, Total	3,846,865	3,759,234
Less accumulated depreciation and amortization (including $3,803 and $3,053 of consolidated variable interest entities, respectively)	(1,011,975)	(938,087)
Net real estate	2,834,890	2,821,147
Cash and cash equivalents	9,174	135,389
Accounts and notes receivable, net	74,443	72,191
Mortgage notes receivable, net	43,828	48,336
Investment in real estate partnerships	51,769	35,633
Prepaid expenses and other assets	105,625	99,265
Debt issuance costs, net of accumulated amortization of $8,545 and $8,291, respectively	7,430	10,348
TOTAL ASSETS	3,127,159	3,222,309
Liabilities
Mortgages payable (including $22,946 and $23,417 of consolidated variable interest entities, respectively)	532,089	539,609
Capital lease obligations	61,306	62,275
Notes payable	47,940	261,745
Senior notes and debentures	1,079,854	930,219
Accounts payable and accrued expenses	112,490	109,061
Dividends payable	41,554	40,800
Security deposits payable	11,778	11,710
Other liabilities and deferred credits	53,272	57,827
Total liabilities	$ 1,940,283	$ 2,013,246
Commitments and contingencies (Note 7)
Shareholders' equity
Preferred shares, authorized 15,000,000 shares, $.01 par: 5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding	$ 9,997	$ 9,997
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 61,451,155 and 61,242,050 shares issued and outstanding, respectively	615	612
Additional paid-in capital	1,663,934	1,653,177
Accumulated dividends in excess of net income	(519,050)	(486,449)
Total shareholders' equity of the Trust	1,155,496	1,177,337
Noncontrolling interests	31,380	31,726
Total shareholders' equity	1,186,876	1,209,063
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,127,159	$ 3,222,309

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Operating, consolidated variable interest entities	$ 97,265	$ 68,643
Accumulated depreciation and amortization, consolidated variable interest entities	3,803	3,053
Debt issuance costs, accumulated amortization	8,545	8,291
Mortgages payable, consolidated variable interest entities	$ 22,946	$ 23,417
Preferred shares, authorized	15,000,000	15,000,000
Preferred shares, par	$ 0.01	$ 0.01
Preferred shares, liquidation preference	$ 25	$ 25
Preferred shares, shares issued	399,896	399,896
Preferred shares, shares outstanding	399,896	399,896
Common shares of beneficial interest, par	$ 0.01	$ 0.01
Common shares of beneficial interest, shares authorized	100,000,000	100,000,000
Common shares of beneficial interest, shares issued	61,451,155	61,242,050
Common shares of beneficial interest, shares outstanding	61,451,155	61,242,050

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009
REVENUE
Rental income	$ 130,144	$ 126,169	$ 391,892	$ 379,465
Other property income	2,825	3,714	11,245	9,258
Mortgage interest income	1,095	1,109	3,232	3,683
Total revenue	134,064	130,992	406,369	392,406
EXPENSES
Rental expenses	27,140	24,367	82,724	78,144
Real estate taxes	15,263	14,485	45,272	43,138
General and administrative	5,844	5,749	17,062	16,170
Litigation provision	60	330	347	21,087
Depreciation and amortization	29,591	28,410	89,701	86,635
Total operating expenses	77,898	73,341	235,106	245,174
OPERATING INCOME	56,166	57,651	171,263	147,232
Other interest income	18	924	233	1,274
Interest expense	(25,299)	(30,209)	(76,679)	(79,622)
Early extinguishment of debt			(2,801)	(968)
Income from real estate partnerships	125	473	506	1,074
INCOME FROM CONTINUING OPERATIONS	31,010	28,839	92,522	68,990
DISCONTINUED OPERATIONS
Discontinued operations-income				218
Discontinued operations-gain on sale of real estate			1,000	1,298
Results from discontinued operations			1,000	1,516
INCOME BEFORE GAIN ON SALE OF REAL ESTATE	31,010	28,839	93,522	70,506
Gain on sale of real estate			410
NET INCOME	31,010	28,839	93,932	70,506
Net income attributable to noncontrolling interests	(1,370)	(1,406)	(3,958)	(4,172)
NET INCOME ATTRIBUTABLE TO THE TRUST	29,640	27,433	89,974	66,334
Dividends on preferred shares	(136)	(136)	(406)	(406)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$ 29,504	$ 27,297	$ 89,568	$ 65,928
EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$ 0.48	$ 0.45	$ 1.43	$ 1.08
Discontinued operations			0.02	0.03
Gain on sale of real estate			0.01
Earnings Per Share, Basic, Total	0.48	0.45	1.46	1.11
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	0.48	0.45	1.42	1.07
Discontinued operations			0.02	0.03
Gain on sale of real estate			0.01
Earnings Per Share, Diluted, Total	$ 0.48	$ 0.45	$ 1.45	$ 1.10

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2010
Statement [Line Items]
Beginning balance		$ 1,209,063
Net income/Comprehensive income	$ 31,010	93,932
Dividends declared to common shareholders		(122,169)
Dividends declared to preferred shareholders		(406)
Distributions declared to noncontrolling interests		(4,249)
Common shares issued		11
Exercise of stock options		4,053
Shares issued under dividend reinvestment plan		1,933
Share-based compensation expense, net		4,845
Conversion and redemption of OP units		(137)
Ending balance	$ 1,186,876	$ 1,186,876
Preferred Shares
Statement [Line Items]
Beginning balance (in shares)		399,896
Beginning balance		$ 9,997
Ending balance (in shares)	399,896	399,896
Ending balance	$ 9,997	$ 9,997
Common Shares
Statement [Line Items]
Beginning balance (in shares)		61,242,050
Beginning balance		$ 612
Common shares issued (in shares)		142
Exercise of stock options (in shares)		107,493
Exercise of stock options		$ 2
Shares issued under dividend reinvestment plan (in shares)		26,964
Share-based compensation expense, net (in shares)		74,506
Share-based compensation expense, net		$ 1
Ending balance (in shares)	61,451,155	61,451,155
Ending balance	$ 615	$ 615
Additional Paid-in Capital
Statement [Line Items]
Beginning balance		1,653,177
Common shares issued		11
Exercise of stock options		4,051
Shares issued under dividend reinvestment plan		1,933
Share-based compensation expense, net		4,844
Conversion and redemption of OP units		(82)
Ending balance	1,663,934	1,663,934
Accumulated Dividends in Excess of Net Income
Statement [Line Items]
Beginning balance		(486,449)
Net income/Comprehensive income		89,974
Dividends declared to common shareholders		(122,169)
Dividends declared to preferred shareholders		(406)
Ending balance	(519,050)	(519,050)
Noncontrolling Interests
Statement [Line Items]
Beginning balance		31,726
Net income/Comprehensive income		3,958
Distributions declared to noncontrolling interests		(4,249)
Conversion and redemption of OP units		(55)
Ending balance	$ 31,380	$ 31,380

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009
OPERATING ACTIVITIES
Net income	$ 93,932	$ 70,506
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization, including discontinued operations	89,701	86,635
Litigation provision		20,632
Gain on sale of real estate	(1,410)	(1,298)
Early extinguishment of debt	2,801	968
Income from real estate partnerships	(506)	(1,074)
Other, net	1,554	4,140
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in accounts receivable	1,668	6,128
Increase in prepaid expenses and other assets	(4,056)	(2,460)
(Decrease) increase in accounts payable and accrued expenses	(1,840)	7,291
(Decrease) increase in security deposits and other liabilities	(2,159)	2,736
Net cash provided by operating activities	179,685	194,204
INVESTING ACTIVITIES
Acquisition of real estate	(17,582)
Capital expenditures-development and redevelopment	(34,775)	(57,739)
Capital expenditures-other	(21,873)	(16,627)
Proceeds from sale of real estate		2,122
Investment in real estate partnerships	(16,930)
Distribution from real estate partnership in excess of earnings	167	382
Leasing costs	(7,094)	(6,747)
Issuance of mortgage and other notes receivable, net	(13,218)	(1,733)
Net cash used in investing activities	(111,305)	(80,342)
FINANCING ACTIVITIES
Net borrowings (repayments) under revolving credit facility, net of costs	26,550	(123,500)
Issuance of senior notes, net of costs	148,457	147,534
Purchase and retirement of senior notes		(52,278)
Issuance of mortgages, capital leases and notes payable, net of costs	9,950	526,617
Repayment of mortgages, capital leases and notes payable	(259,342)	(212,424)
Issuance of common shares	5,997	113,694
Dividends paid to common and preferred shareholders	(121,823)	(115,593)
Distributions to noncontrolling interests	(4,384)	(4,707)
Net cash (used in) provided by financing activities	(194,595)	279,343
(Decrease) increase in cash and cash equivalents	(126,215)	393,205
Cash and cash equivalents at beginning of year	135,389	15,223
Cash and cash equivalents at end of period	$ 9,174	$ 408,428

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2010

Statement [Line Items]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business and Organization

Federal Realty Investment Trust (the “Trust”) is an equity real estate investment trust (“REIT”) specializing in the ownership, management, and redevelopment of retail and mixed-use properties. Our properties are located primarily in densely populated and affluent communities in strategically selected metropolitan markets in the Mid-Atlantic and Northeast regions of the United States, as well as in California. As of September 30, 2010, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 85 predominantly retail real estate projects.

We operate in a manner intended to enable us to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90% of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders. Therefore, federal income taxes on our taxable income have been and are generally expected to be immaterial. We are obligated to pay state taxes, generally consisting of franchise or gross receipts taxes in certain states. Such state taxes also have not been material.

Basis of Presentation

Our consolidated financial statements include the accounts of the Trust, its corporate subsidiaries, and all entities in which the Trust has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”). The equity interests of other investors are reflected as noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. We account for our interests in joint ventures, which we do not control or manage, using the equity method of accounting. Certain 2009 amounts have been reclassified to conform to current period presentation.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.

Consolidated Statements of Cash Flows—Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows:


	Nine Months Ended September 30,
	2010			2009
	(In thousands)
SUPPLEMENTAL DISCLOSURES:
Total interest costs incurred	$	81,272		$	83,815
Interest capitalized		(4,593	)		(4,193	)

Interest expense	$	76,679		$	79,622

Cash paid for interest, net of amounts capitalized	$	77,773		$	74,880

Cash paid for income taxes	$	240		$	808

Recently Adopted Accounting Pronouncements

In June 2009, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which provides certain changes to the evaluation of a VIE including requiring a qualitative rather than quantitative analysis to determine the primary beneficiary of a VIE, continuous assessments of whether an enterprise is the primary beneficiary of a VIE, and enhanced disclosures about an enterprise’s involvement with a VIE. Under the new standard, the primary beneficiary has both the power to direct the activities that most significantly impact economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

We adopted the standard effective January 1, 2010. The adoption did not have a material impact to our financial statements. The newly required balance sheet disclosures regarding assets and liabilities of a consolidated VIE have been parenthetically included in our balance sheet. These parenthetical amounts relate to Melville Mall in Huntington, New York, a shopping center and adjacent commercial building in Norwalk, Connecticut, which is further discussed in Note 3 below, and Huntington Square in East Northport, New York, which is further discussed in Note 2 below.

Although the adoption of this standard did not have a material impact to our financial statements, this standard could impact future consolidation of entities based on the specific facts and circumstances of those entities.

During the quarter ended March 31, 2010, the FASB issued an amendment eliminating the requirement to disclose the date through which subsequent events have been evaluated, which was effective upon issuance of the amendment. Consequently, this disclosure is no longer included in the notes to our financial statements.

Recently Issued Accounting Pronouncement

In July 2010, the FASB issued a new accounting standard that requires enhanced disclosures about financing receivables, including the allowance for credit losses, credit quality, and impaired loans. This standard is effective for fiscal years ending after December 15, 2010. We are currently evaluating the impact this standard will have on our consolidated financial statements.

REAL ESTATE	9 Months Ended
REAL ESTATE	Sep. 30, 2010
Statement [Line Items]
REAL ESTATE	NOTE 2—REAL ESTATE On August 16, 2010, we acquired the leasehold interest in Huntington Square located in East Northport, New York for a purchase price of $17.6 million. The property contains approximately 74,000 square feet of gross leasable area and is adjacent to a 194,000 square foot Sears department store. As part of the purchase price allocation, approximately $9.2 million of the net assets acquired were allocated to other assets for “above market leases” and a “below market ground lease” for which we are the lessee. Approximately $1.7 million of the net assets acquired were allocated to liabilities for “below market leases”. We incurred approximately $0.3 million of acquisition costs related to Huntington Square which are included in “general and administrative expenses”. In conjunction with the acquisition, we entered into a reverse Section 1031 like-kind exchange agreement with a qualified intermediary which is for a maximum of 180 days and allows us to defer gains on the sale of other properties sold within this period. Until the earlier of termination of this exchange agreement or February 12, 2011, the qualified intermediary is the legal owner of the property. However, we direct the activities that most significantly impact the property and have the obligation to absorb losses and the right to receive benefits from the property. Therefore, we have determined we are the primary beneficiary and consolidated the property and its operations as of August 16, 2010. We reached a settlement with the contractors responsible for performing defective work in previous years related to the conversion and sale of certain condominium units at Santana Row. The gain related to this settlement of $1.0 million is included in “discontinued operations - gain on sale of real estate”. The $0.4 million gain on sale of real estate relates to condemnation proceeds, net of costs, at one of our Northern Virginia properties in order to expand a local road.

MORTGAGE NOTES RECEIVABLE	9 Months Ended
MORTGAGE NOTES RECEIVABLE	Sep. 30, 2010
Statement [Line Items]
MORTGAGE NOTES RECEIVABLE	NOTE 3—MORTGAGE NOTES RECEIVABLE On March 30, 2010, we acquired the first mortgage loan on a shopping center located in Norwalk, Connecticut. The first mortgage loan bears interest at 7.25%, matures on September 1, 2032, and as of September 30, 2010, had an outstanding principal balance of $11.3 million. Since November 5, 2008, we have held the second mortgage on this shopping center and a first mortgage on an adjacent commercial building which had an outstanding balance of $7.4 million at September 30, 2010. All of these loans are currently in default and foreclosure proceedings have been filed. If we foreclose on the properties, we believe the fair value of the properties approximates our carrying amount of these loans which are on non-accrual status. Because the loans are in default, we have certain rights under the first mortgage loan agreement that gives us the ability to direct the activities that most significantly impact the shopping center. Although we are not currently exercising and do not expect to exercise those rights, the existence of those rights in the loan agreement results in the entity being a VIE. Additionally, given our investment in both the first and second mortgage on the property, the overall decline in fair market value since the loans were initiated, and the current default status of the loans, we also have the obligation to absorb losses or rights to receive benefits that could potentially be significant to the VIE. Consequently, we have determined we are the primary beneficiary of this VIE and consolidated the shopping center and adjacent building as of March 30, 2010. Therefore, our investment in the property is included in “real estate” in the consolidated balance sheet as of September 30, 2010. In July 2010, we reached an agreement with the borrower whereby the borrower must repay the loans by September 30, 2010, subject to a possible extension through December 30, 2010. If the borrower fails to repay the loans at that time, we will be entitled to receive a deed-in-lieu of foreclosure for both properties. The borrower has entered into a non-binding letter of intent which contemplates a transaction pursuant to which we would be paid the full carrying amount of our loans upon closing which is anticipated to be in December 2010.

REAL ESTATE PARTNERSHIPS

9 Months Ended

Sep. 30, 2010

Statement [Line Items]

REAL ESTATE PARTNERSHIPS

NOTE 4—REAL ESTATE PARTNERSHIPS

Federal/Lion Venture LP

We have a joint venture arrangement (“the Partnership”) with affiliates of a discretionary fund created and advised by ING Clarion Partners (“Clarion”). We own 30% of the equity in the Partnership and Clarion owns 70%. We hold a general partnership interest, however, Clarion also holds a general partnership interest and has substantive participating rights. We cannot make significant decisions without Clarion’s approval. Accordingly, we account for our interest in the Partnership using the equity method. As of September 30, 2010, the Partnership owned seven retail real estate properties. We are the manager of the Partnership and its properties, earning fees for acquisitions, dispositions, management, leasing, and financing. Intercompany profit generated from fees is eliminated in consolidation. We also have the opportunity to receive performance-based earnings through our Partnership interest. The Partnership is subject to a buy-sell provision which is customary for real estate joint venture agreements and the industry. Either partner may initiate these provisions at any time, which could result in either the sale of our interest or the use of available cash or borrowings to acquire Clarion’s interest.

The following tables provide summarized operating results and the financial position of the Partnership:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
	(In thousands)
OPERATING RESULTS
Revenue	$	4,510	$	5,027	$	13,688	$	14,523
Expenses
Other operating expenses		1,322		1,323		4,664		4,307
Depreciation and amortization		1,259		1,278		3,771		3,764
Interest expense		849		1,131		2,551		3,396

Total expenses		3,430		3,732		10,986		11,467

Net income	$	1,080	$	1,295	$	2,702	$	3,056

Our share of net income from real estate partnership	$	355	$	473	$	901	$	1,074


	September 30, 2010		December 31, 2009
	(In thousands)
BALANCE SHEETS
Real estate, net	$	182,161	$	183,757
Cash		3,291		2,959
Other assets		7,607		6,853

Total assets	$	193,059	$	193,569

Mortgages payable	$	57,634	$	57,780
Other liabilities		5,812		6,101
Partners’ capital		129,613		129,688

Total liabilities and partners’ capital	$	193,059	$	193,569

Our share of unconsolidated debt	$	17,290	$	17,334

Our investment in real estate partnership	$	35,577	$	35,633

Taurus Newbury Street JV II Limited Partnership

In May 2010, we formed Taurus Newbury Street JV II Limited Partnership (“Newbury Street Partnership”), a joint venture limited partnership with an affiliate of Taurus Investment Holdings, LLC (“Taurus”), which plans to acquire, operate and redevelop up to $200 million of properties located primarily in the Back Bay section of Boston, Massachusetts. We hold an 85% limited partnership interest in Newbury Street Partnership and Taurus holds a 15% limited partnership interest and serves as general partner. As general partner, Taurus is responsible for the operation and management of the properties, subject to our approval on major decisions. We have evaluated the entity and determined that it is not a VIE. Accordingly, given Taurus’ role as general partner, we account for our interest in Newbury Street Partnership using the equity method. During the second quarter 2010, we recorded expenses of approximately $0.2 million related to formation costs of Newbury Street Partnership.

Newbury Street Partnership is subject to a buy-sell provision which is customary for real estate joint venture agreements and the industry. The buy-sell can be exercised only in certain circumstances through May 2014 and may be initiated by either party at anytime thereafter which could result in either the sale of our interest or the use of available cash or borrowings to acquire Taurus’ interest.

On May 26, 2010, Newbury Street Partnership acquired the fee interest in two buildings located on Newbury Street in Boston, Massachusetts for a purchase price of $17.5 million. The properties include approximately 32,000 square feet of retail and office space. We contributed $7.8 million towards this acquisition and provided an $8.8 million interest-only loan secured by the two buildings. The loan matures in May 2012, subject to a one-year extension option, and bears interest at 30-day LIBOR plus 400 basis points. Intercompany profit generated from interest income on the loan is eliminated in consolidation. All amounts contributed and advanced to Newbury Street Partnership are included in “Investment in real estate partnerships” in the consolidated balance sheet. During the third quarter 2010, we recorded approximately $0.2 million related to our share of acquisition related costs.

Due to the timing of receiving financial information from the general partner, our share of operating earnings is recorded one quarter in arrears. Consequently, the following tables provide summarized operating results from formation through June 30, 2010, and the financial position of the Newbury Street Partnership as of June 30, 2010:


OPERATING RESULTS (in thousands)
Revenue	$	99
Expenses
Other operating expenses		74
Depreciation and amortization		27
Interest expense		38
Acquisition and formation expenses		486

Total expenses		625

Net income	$	(526	)

Our share of net income from real estate partnership	$	(395	)


BALANCE SHEET (in thousands)
Real estate, net	$	17,144
Cash		165
Other assets		668

Total assets	$	17,977

Mortgages payable	$	8,750
Other liabilities		380
Partners’ capital		8,847

Total liabilities and partners’ capital	$	17,977

Our investment in real estate partnership	$	16,192

DEBT	9 Months Ended
DEBT	Sep. 30, 2010
Statement [Line Items]
DEBT	NOTE 5—DEBT On January 28, 2010, we delivered notice exercising our option to extend the maturity date by one year to July 27, 2011 on our revolving credit facility, which bears interest at LIBOR plus 42.5 basis points. We paid an extension fee of $0.5 million which is being amortized over the remaining term of the revolving credit facility. On March 1, 2010, we issued $150.0 million of fixed rate senior notes that mature on April 1, 2020 and bear interest at 5.90%. The net proceeds from this note offering after issuance discounts, underwriting fees and other costs were $148.5 million. On various dates from February 25, 2010 to March 2, 2010, we repaid the remaining $250.0 million balance of our term loan. The term loan had an original maturity date of July 27, 2011, however, the loan agreement included an option to prepay the loan, in whole or in part, at any time without premium or penalty. Due to these repayments, approximately $2.8 million of unamortized debt fees were recorded as additional interest expense in 2010 and are included in “early extinguishment of debt” in the consolidated statement of operations. The term loan was repaid using cash on hand and cash from the $150.0 million note issuance. During the three and nine months ended September 30, 2010, the maximum amount of borrowings outstanding under our $300.0 million revolving credit facility was $42.0 million. The weighted average amount of borrowings outstanding was $24.6 million and $9.8 million for the three and nine months ended September 30, 2010, respectively. Our revolving credit facility had a weighted average interest rate, before amortization of debt fees, of 0.73% for the three and nine months ended September 30, 2010. At September 30, 2010, there was $27.0 million outstanding on our revolving credit facility. Our revolving credit facility and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders’ equity and debt coverage ratios and a maximum ratio of debt to net worth. As of September 30, 2010, we were in compliance with all loan covenants.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2010
Statement [Line Items]
COMMITMENTS AND CONTINGENCIES	NOTE 7—COMMITMENTS AND CONTINGENCIES We are currently a party to various legal proceedings. Other than as described below, we do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us (1) as owner of the properties due to certain matters relating to the operation of the properties by the tenant, and (2) where appropriate, due to certain matters relating to the ownership of the properties prior to their acquisition by us. In May 2003, a breach of contract action was filed against us in the United States District Court for the Northern District of California, San Jose Division, alleging that a one page document entitled “Final Proposal” constituted a ground lease of a parcel of property located adjacent to our Santana Row property and gave the plaintiff the option to require that we acquire the property at a price determined in accordance with a formula included in the “Final Proposal.” The “Final Proposal” explicitly stated that it was subject to approval of the terms and conditions of a formal agreement. A trial as to liability only was held in June 2006 and a jury rendered a verdict against us. A trial on the issue of damages was held in April 2008 and the court issued a tentative ruling in April 2009 awarding damages to the plaintiff of approximately $14.4 million plus interest. Accordingly, considering all the information available to us when we filed our March 31, 2009 Form 10-Q, our best estimate of damages, interest, and other costs was $21.4 million resulting in an increase in our accrual for this matter of $20.6 million. In June 2009, the court issued a final judgment awarding damages of $15.9 million (including interest) plus costs of suit and in July 2009, we and the plaintiff both filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit. In December 2009, the plaintiff filed an “appellee’s principal and response brief” providing additional information regarding the issues the plaintiff is appealing. Given the additional information regarding the appeal, we lowered our accrual to $16.4 million in the fourth quarter 2009, which reflects our best estimate of the litigation liability. The net increase in our accrual in 2009 is included in “litigation provision” in our consolidated statement of operations, and the $16.4 million accrual is included in the “accounts payable and accrued expenses” line item in our consolidated balance sheets. During 2009 and 2010, we incurred additional legal and other costs related to this lawsuit and appeal process which are also included in the “litigation provision” line item in the consolidated statements of operations. Oral arguments on the appeal are scheduled for late 2010. The enforcement of the judgment has been stayed until completion of the appeals. Furthermore, we continue to believe that the “Final Proposal” which included express language that it was subject to formal documentation was not a binding contract and that we should have no liability whatsoever, and will vigorously defend our position as part of the appeal process. In September 2008, we and a subsidiary of Post Properties, Inc. (“Post”) sued Vornado Realty Trust and related entities (“Vornado”) for breach of contract in the Circuit Court of Arlington County, Virginia. The breach of contract was a result of Vornado’s acquiring in transactions in 2005 and 2007 the fee interest in the land under our Pentagon Row project without first giving us and Post the opportunity to purchase the fee interest in that land as required by the right of first offer (“ROFO”) provisions included in the documentation relating to the Pentagon Row project. On April 30, 2010, the judge in this case issued a ruling that Vornado failed to comply with the ROFO and as a result, breached the contract, and ordered Vornado to sell to us and Post, collectively, the land under Pentagon Row for a net purchase price of approximately $14.7 million. Vornado has appealed the ruling, however, the appeal has not yet been accepted. We expect a ruling in late 2010 as to whether the appeal will be accepted. The judgment has been stayed until completion of the appeal process. Under the terms of certain partnership agreements, the partners have the right to exchange their operating partnership units for cash or the same number of our common shares, at our option. A total of 369,260 operating partnership units are outstanding which have a total fair value of $30.2 million, based on our closing stock price on September 30, 2010.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2010

Statement [Line Items]

EARNINGS PER SHARE

NOTE 11—EARNINGS PER SHARE

We have calculated earnings per share (“EPS”) under the two-class method. The two-class method is an earnings allocation methodology whereby EPS for each class of common stock and participating securities is calculated according to dividends declared and participation rights in undistributed earnings. For each of the three and nine months ended September 30, 2010 and 2009, we had approximately 0.2 million weighted average unvested shares outstanding which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS between common shares and unvested shares; the portion of earnings allocated to the unvested shares is reflected as “earnings allocated to unvested shares” in the reconciliation below.

In the dilutive EPS calculation, dilutive stock options were calculated using the treasury stock method consistent with prior periods; certain stock options have been excluded as they were anti-dilutive. The conversions of downREIT operating partnership units and Series 1 Preferred Shares are anti-dilutive for all periods presented and accordingly, have been excluded from the weighted average common shares used to compute diluted EPS.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
	(In thousands, except per share data)
NUMERATOR
Income from continuing operations	$	31,010		$	28,839		$	92,522		$	68,990
Less: Preferred share dividends		(136	)		(136	)		(406	)		(406	)
Less: Net income attributable to noncontrolling interests		(1,370	)		(1,406	)		(3,958	)		(4,172	)
Less: Earnings allocated to unvested shares		(136	)		(129	)		(404	)		(381	)

Income from continuing operations available for common shareholders		29,368			27,168			87,754			64,031
Results from discontinued operations		—			—			1,000			1,516
Gain on sale of real estate		—			—			410			—

Net income available for common shareholders, basic and diluted	$	29,368		$	27,168		$	89,164		$	65,547

DENOMINATOR
Weighted average common shares outstanding—basic		61,215			60,016			61,158			59,264
Effect of dilutive securities:
Stock options		144			124			139			123

Weighted average common shares outstanding—diluted		61,359			60,140			61,297			59,387

EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.48		$	0.45		$	1.43		$	1.08
Discontinued operations		—			—			0.02			0.03
Gain on sale of real estate		—			—			0.01			—

	$	0.48		$	0.45		$	1.46		$	1.11

EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.48		$	0.45		$	1.42		$	1.07
Discontinued operations		—			—			0.02			0.03
Gain on sale of real estate		—			—			0.01			—

	$	0.48		$	0.45		$	1.45		$	1.10

Income from continuing operations attributable to the Trust	$	29,640		$	27,433		$	88,564		$	64,818

SUBSEQUENT EVENT	9 Months Ended
SUBSEQUENT EVENT	Sep. 30, 2010
Statement [Line Items]
SUBSEQUENT EVENT	NOTE 12—SUBSEQUENT EVENT In October 2010, Donald C. Wood, our Chief Executive Officer, was granted approximately $5,000,000 of restricted stock, or 60,931 shares, which will vest on October 12, 2015. Additionally, Mr. Wood’s annual base pay was increased from $700,000 to $850,000 per year effective November 1, 2010, his target bonus was increased from 100% of his base salary to 150% of his base salary beginning with the 2010 bonus, and his target amount for potential equity to be issued in February 2011 under our Long-term Incentive Award Plan was increased from $2.0 million to $4.0 million. Grants under the Long-term Incentive Award Plan generally vest over three to five years. The Compensation Committee of the Board of Trustees determined that these compensation adjustments were prudent, consistent with the Trust’s compensation philosophy and in the best interest of the Trust’s shareholders after considering four primary factors: (a) the appropriate market value for Mr. Wood’s services after retaining a consultant to benchmark comparable real estate companies and make recommendations; (b) the historical outperformance of the Trust over the last decade in terms of shareholder value creation and the prospects for continued outperformance in the future; (c) the active recruiting for Mr. Wood’s services in the marketplace and the related strong desire to retain him and his senior management team at the Trust; and (d) the ability of the current senior management team to take advantage of future opportunities to increase shareholder value.