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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Feb. 09, 2011	Jun. 30, 2010
Document And Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 4,300,000,000
Entity Common Stock, Shares Outstanding		61,537,817

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2010	Dec. 31, 2009
ASSETS
Operating (including $97,157 and $68,643 of consolidated variable interest entities, respectively)	$ 3,726,223	$ 3,619,562
Construction-in-progress	163,200	132,758
Assets held for sale (discontinued operations)	6,519	6,914
Real Estate Investment Property, at Cost, Total	3,895,942	3,759,234
Less accumulated depreciation and amortization (including $4,431 and $3,053 of consolidated variable interest entities, respectively)	(1,035,204)	(938,087)
Net real estate	2,860,738	2,821,147
Cash and cash equivalents	15,797	135,389
Accounts and notes receivable, net	68,997	72,191
Mortgage notes receivable, net	44,813	48,336
Investment in real estate partnerships	51,606	35,633
Prepaid expenses and other assets	110,686	99,265
Debt issuance costs, net of accumulated amortization of $9,075 and $8,291, respectively	6,916	10,348
TOTAL ASSETS	3,159,553	3,222,309
Liabilities
Mortgages payable (including $22,785 and $23,417 of consolidated variable interest entities, respectively)	529,501	539,609
Capital lease obligations	59,940	62,275
Notes payable	97,881	261,745
Senior notes and debentures	1,079,827	930,219
Accounts payable and accrued expenses	102,574	109,061
Dividends payable	41,601	40,800
Security deposits payable	11,751	11,710
Other liabilities and deferred credits	55,348	57,827
Total liabilities	$ 1,978,423	$ 2,013,246
Commitments and contingencies (Note 8)
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, 61,526,418 and 61,242,050 issued and outstanding, respectively	615	612
Additional paid-in capital	1,666,803	1,653,177
Accumulated dividends in excess of net income	(527,582)	(486,449)
Total shareholders' equity of the Trust	1,149,833	1,177,337
Noncontrolling interests	31,297	31,726
Total shareholders' equity	1,181,130	1,209,063
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,159,553	$ 3,222,309

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
REVENUE
Rental income	$ 525,528	$ 512,725	$ 501,055
Other property income	14,545	12,850	14,008
Mortgage interest income	4,601	4,943	4,548
Total revenue	544,674	530,518	519,611
EXPENSES
Rental expenses	111,034	108,627	109,463
Real estate taxes	59,108	58,109	55,417
General and administrative	24,189	22,032	26,732
Litigation provision	330	16,355
Depreciation and amortization	119,539	114,812	110,748
Total operating expenses	314,200	319,935	302,360
OPERATING INCOME	230,474	210,583	217,251
Other interest income	256	1,894	916
Interest expense	(101,882)	(108,781)	(99,163)
Early extinguishment of debt	(2,801)	(2,639)
Income from real estate partnerships	1,060	1,322	1,612
INCOME FROM CONTINUING OPERATIONS	127,107	102,379	120,616
DISCONTINUED OPERATIONS
Discontinued operations-(loss) income	(280)	195	1,965
Discontinued operations-gain on sale of real estate	1,000	1,298	12,572
Results from discontinued operations	720	1,493	14,537
INCOME BEFORE GAIN ON SALE OF REAL ESTATE	127,827	103,872	135,153
Gain on sale of real estate	410
NET INCOME	128,237	103,872	135,153
Net income attributable to noncontrolling interests	(5,447)	(5,568)	(5,366)
NET INCOME ATTRIBUTABLE TO THE TRUST	122,790	98,304	129,787
Dividends on preferred shares	(541)	(541)	(541)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$ 122,249	$ 97,763	$ 129,246
EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$ 1.97	$ 1.60	$ 1.94
Discontinued operations	0.01	0.03	0.25
Gain on sale of real estate	0.01
Earnings Per Share, Basic, Total	$ 1.99	$ 1.63	$ 2.19
Weighted average number of common shares, basic	61,182	59,704	58,665
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$ 1.96	$ 1.60	$ 1.94
Discontinued operations	0.01	0.03	0.25
Gain on sale of real estate	0.01
Earnings Per Share, Diluted, Total	$ 1.98	$ 1.63	$ 2.19
Weighted average number of common shares, diluted	61,324	59,830	58,889

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning balance	$ 1,209,063	$ 1,146,954	$ 1,146,450
Net income/comprehensive income	128,237	103,872	135,153
Dividends declared to common shareholders	(163,382)	(157,638)	(148,444)
Dividends declared to preferred shareholders	(541)	(541)	(541)
Distributions declared to noncontrolling interests	(5,207)	(6,139)	(4,788)
Common shares issued	14	110,016	19
Exercise of stock options	4,052	2,758	8,008
Shares issued under dividend reinvestment plan	2,544	2,728	2,755
Share-based compensation expense, net	6,487	7,139	7,778
Conversion and redemption of OP units	(137)	(86)	(563)
Loans paid			803
Contributions by noncontrolling interests			324
Ending balance	$ 1,181,130	$ 1,209,063	$ 1,146,954
Preferred Shares
Statement [Line Items]
Beginning balance (in shares)	399,896	399,896	399,896
Beginning balance	$ 9,997	$ 9,997	$ 9,997
Net income/comprehensive income
Dividends declared to common shareholders
Dividends declared to preferred shareholders
Distributions declared to noncontrolling interests
Common shares issued (in shares)
Exercise of stock options (in shares)
Shares issued under dividend reinvestment plan (in shares)
Share-based compensation expense, net (in shares)
Conversion and redemption of OP units
Loans paid
Contributions by noncontrolling interests
Ending balance (in shares)	399,896	399,896	399,896
Ending balance	$ 9,997	$ 9,997	$ 9,997
Common Shares
Statement [Line Items]
Beginning balance (in shares)	61,242,050	58,985,678	58,645,665
Beginning balance	$ 612	$ 590	$ 586
Net income/comprehensive income
Dividends declared to common shareholders
Dividends declared to preferred shareholders
Distributions declared to noncontrolling interests
Common shares issued (in shares)	190	1,995,563	274
Common shares issued		$ 20
Exercise of stock options (in shares)	107,493	126,500	214,853
Exercise of stock options	$ 1	$ 1	$ 2
Shares issued under dividend reinvestment plan (in shares)	34,401	50,888	39,343
Share-based compensation expense, net (in shares)	135,338	83,421	85,543
Share-based compensation expense, net	$ 2	$ 1	$ 2
Conversion and redemption of OP units (in shares)	6,946
Conversion and redemption of OP units
Loans paid
Contributions by noncontrolling interests
Ending balance (in shares)	61,526,418	61,242,050	58,985,678
Ending balance	$ 615	$ 612	$ 590
Additional Paid-in Capital
Statement [Line Items]
Beginning balance	1,653,177	1,530,589	1,512,228
Net income/comprehensive income
Dividends declared to common shareholders
Dividends declared to preferred shareholders
Distributions declared to noncontrolling interests
Common shares issued	14	109,996	19
Exercise of stock options	4,051	2,757	8,006
Shares issued under dividend reinvestment plan	2,544	2,728	2,755
Share-based compensation expense, net	6,485	7,138	7,776
Conversion and redemption of OP units	532	(31)	(195)
Loans paid
Contributions by noncontrolling interests
Ending balance	1,666,803	1,653,177	1,530,589
Accumulated Dividends in Excess of Net Income
Statement [Line Items]
Beginning balance	(486,449)	(426,574)	(407,376)
Net income/comprehensive income	122,790	98,304	129,787
Dividends declared to common shareholders	(163,382)	(157,638)	(148,444)
Dividends declared to preferred shareholders	(541)	(541)	(541)
Distributions declared to noncontrolling interests
Common shares issued
Exercise of stock options
Shares issued under dividend reinvestment plan
Share-based compensation expense, net
Conversion and redemption of OP units
Loans paid
Contributions by noncontrolling interests
Ending balance	(527,582)	(486,449)	(426,574)
Notes Receivable From the Issuance of Common Shares
Statement [Line Items]
Beginning balance			(803)
Net income/comprehensive income
Dividends declared to common shareholders
Dividends declared to preferred shareholders
Distributions declared to noncontrolling interests
Common shares issued
Exercise of stock options
Shares issued under dividend reinvestment plan
Share-based compensation expense, net
Conversion and redemption of OP units
Loans paid			803
Contributions by noncontrolling interests
Ending balance
Noncontrolling Interests
Statement [Line Items]
Beginning balance	31,726	32,352	31,818
Net income/comprehensive income	5,447	5,568	5,366
Dividends declared to common shareholders
Dividends declared to preferred shareholders
Distributions declared to noncontrolling interests	(5,207)	(6,139)	(4,788)
Common shares issued
Exercise of stock options
Shares issued under dividend reinvestment plan
Share-based compensation expense, net
Conversion and redemption of OP units	(669)	(55)	(368)
Loans paid
Contributions by noncontrolling interests			324
Ending balance	$ 31,297	$ 31,726	$ 32,352

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
OPERATING ACTIVITIES
Net income	$ 128,237	$ 103,872	$ 135,153
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization, including discontinued operations	119,817	115,093	111,069
Litigation provision	(250)	15,690
Gain on sale of real estate	(1,410)	(1,298)	(12,572)
Early extinguishment of debt	2,801	2,639
Income from real estate partnerships	(1,060)	(1,322)	(1,612)
Other, net	4,099	5,265	1,585
Changes in assets and liabilities net of effects of acquisitions and dispositions:
Decrease (increase) in accounts receivable	7,461	7,079	(6,303)
(Increase) decrease in prepaid expenses and other assets	(2,824)	(716)	2,668
(Decrease) increase in accounts payable and accrued expenses	(879)	9,753	(4,329)
Increase in security deposits and other liabilities	743	710	2,626
Net cash provided by operating activities	256,735	256,765	228,285
INVESTING ACTIVITIES
Acquisition of real estate	(57,133)	(10,531)	(99,625)
Capital expenditures-development and redevelopment	(50,414)	(76,079)	(104,196)
Capital expenditures-other	(38,681)	(26,000)	(33,790)
Proceeds from sale of real estate		2,122	44,890
Investment in real estate partnerships	(16,930)	(7,020)
Distribution from real estate partnership in excess of earnings	237	594	363
Leasing costs	(10,272)	(8,924)	(9,921)
Issuance of mortgage and other notes receivable, net	(13,895)	(1,503)	(5,288)
Net cash used in investing activities	(187,088)	(127,341)	(207,567)
FINANCING ACTIVITIES
Net borrowings (repayment) under revolving credit facility, net of costs	76,550	(123,500)	123,500
Issuance of senior notes, net of costs	148,457	147,534
Purchase and retirement of senior notes/debentures		(175,867)	(20,800)
Issuance of mortgages, capital leases and notes payable, net of costs	9,950	526,617
Repayment of mortgages, capital leases and notes payable	(262,340)	(337,221)	(18,512)
Extension fee on term loan			(200)
Issuance of common shares	6,610	115,502	11,585
Dividends paid to common and preferred shareholders	(163,120)	(156,100)	(146,418)
Distributions to noncontrolling interests	(5,346)	(6,223)	(5,341)
Net cash used in financing activities	(189,239)	(9,258)	(56,186)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(119,592)	120,166	(35,468)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	135,389	15,223	50,691
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 15,797	$ 135,389	$ 15,223

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 December 31, 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.

Principles of Consolidation and Estimates

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.

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.

Reclassifications

Certain 2009 and 2008 amounts have been reclassified to conform to current period presentation.

Revenue Recognition and Accounts Receivable

Our leases with tenants are classified as operating leases. Substantially all such leases contain fixed escalations which occur at specified times during the term of the lease. Base rents are recognized on a straight-line basis from when the tenant controls the space through the term of the related lease, net of valuation adjustments, based on management's assessment of credit, collection and other business risk. Percentage rents, which represent additional rents based upon the level of sales achieved by certain tenants, are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved and the percentage rents are collectible. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees for which the tenant has relinquished control of the space are generally recognized on the termination date. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement.

We make estimates of the collectability of our accounts receivable related to minimum rents, straight-line rents, expense reimbursements and other revenue. Accounts receivable is carried net of this allowance for doubtful accounts. Our determination as to the collectability of accounts receivable and correspondingly, the adequacy of this allowance, is based primarily upon evaluations of individual receivables, current economic conditions, historical experience and other relevant factors. The allowance for doubtful accounts is increased or decreased through bad debt expense. Accounts receivable are written-off when they are deemed to be uncollectible and we are no longer actively pursuing collection.

In some cases, primarily relating to straight-line rents, the collection of accounts receivable extends beyond one year. Our experience relative to unbilled straight-line rents is that a portion of the amounts otherwise recognizable as revenue is never billed to or collected from tenants due to early lease terminations, lease modifications, bankruptcies and other factors. Accordingly, the extended collection period for straight-line rents along with our evaluation of tenant credit risk may result in the nonrecognition of a portion of straight-line rental income until the collection of such income is reasonably assured. If our evaluation of tenant credit risk changes indicating more straight-line revenue is reasonably collectible than previously estimated and realized, the additional straight-line rental income is recognized as revenue. If our evaluation of tenant credit risk changes i ndicating a portion of realized straight-line rental income is no longer collectible, a reserve and bad debt expense is recorded. At December 31, 2010 and 2009, accounts receivable include approximately $45.6 million and $41.8 million, respectively, related to straight-line rents. At December 31, 2010 and 2009, our allowance for doubtful accounts was $18.7 million and $16.1 million, respectively.

Real Estate

Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 35 years to a maximum of 50 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 3 to 20 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. In 2010, 2009 and 2008, real estate depreciation expense was $108.3 million , $103.7 million and $101.3 million, respectively, including amounts from discontinued operations and assets under capital lease obligations.

Sales of real estate are recognized only when sufficient down payments have been obtained, possession and other attributes of ownership have been transferred to the buyer and we have no significant continuing involvement. The application of this criteria can be complex and requires us to make assumptions. We believe this criteria was met for all real estate sold during 2010, 2009 and 2008.

Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and appraised values. When we acquire operating real estate properties, the purchase price is allocated to land, building, improvements, intangibles such as in-place leases, and to current assets and liabilities acquired, if any. The value allocated to in-place leases is amortized over the related lease term and reflected as rental income in the statement of operations. If the value of below market lease intangibles includes renewal option periods, we include such renewal periods in the amortization period utilized. If a tenant vacates its space prior to contractual termination of its lease, the unamortized balance of any in-place lease value is written off to rental income.

Effective January 1, 2009 with the adoption of a new accounting standard for business combinations, transaction costs, such as broker fees, transfer taxes, legal, accounting, valuation, and other professional and consulting fees, related to the acquisition of a business are expensed as incurred and included in "general and administrative expenses" in our consolidated statements of operations. The acquisition of an operating shopping center typically qualifies as a business. For acquisitions prior to January 1, 2009 and asset acquisitions not meeting the definition of a business, transaction costs are capitalized as part of the acquisition cost.

When applicable, as lessee, we classify our leases of land and building as operating or capital leases. We are required to use judgment and make estimates in determining the lease term, the estimated economic life of the property and the interest rate to be used in determining whether or not the lease meets the qualification of a capital lease and is recorded as an asset.

We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved. Additionally, we capitalize interest costs related to development and redevelopment activities. Capitalization of these costs begin when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine the development or redevelopment is no longer probable of completion, we expense all capitalized costs which are not recoverable.

We review for impairment on a property by property basis. Impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount at which time the property is written-down to fair value. Properties held for sale are recorded at the lower of the carrying amount or the expected sales price less costs to sell. The sale or disposal of a "component of an entity" is treated as discontinued operations. The operating properties sold by us typically meet the definition of a component of an entity and as such the revenues and expenses associated with sold properties are reclassified to discontinued operations for all periods presented.

Cash and Cash Equivalents

We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity under three months. Cash balances in individual banks may exceed the federally insured limit by the Federal Deposit Insurance Corporation (the "FDIC"). At December 31, 2010, we had $6.8 million in excess of the FDIC insured limit.

Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist primarily of lease costs, prepaid property taxes and acquired above market leases. Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place and include third party commissions and salaries and related costs of personnel directly related to time spent obtaining a lease. Capitalized lease costs are amortized over the life of the related lease. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any lease costs are written off. Other assets also include the premiums paid for split dollar life insurance covering several officers and former officers which were approximately $4.6 million at December 31, 2010 and 2009.

Debt Issuance Costs

Costs related to the issuance of debt instruments are capitalized and are amortized as interest expense over the estimated life of the related issue using the straight-line method which approximates the effective interest method. If a debt instrument is paid off prior to its original maturity date, the unamortized balance of debt issuance costs are written off to interest expense or, if significant, included in "early extinguishment of debt."

Derivative Instruments

As of December 31, 2010 and 2009, we had no outstanding hedging instruments. At times, we may use derivative instruments to manage exposure to variable interest rate risk. We generally enter into interest rate swaps to manage our exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. We enter into derivative instruments that qualify as cash flow hedges and do not enter into derivative instruments for speculative purposes.

Our cash flow hedges are recorded at fair value. We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of our cash flow hedges is recorded in other comprehensive income, and the ineffective portion of changes in fair value of our cash flow hedges is recognized in earnings in the period affected. In February 2008, we entered into interest swap agreements to fix the variable portion of our $200 million term loan at a combined fixed rate of 2.789% through November 6, 2008. Both swaps were designated and qualified as cash flow hedges and were recorded at fair value until the swaps ended on November 6, 2008. No hedge instruments were outstanding during 2010 and 2009. Hedge ineffectiveness did not have a significant impact on earnings in 2008, and we do not anticipate it will have a signifi cant effect in the future.

Mortgage Notes Receivable

We have made certain mortgage loans that, because of their nature, qualify as loan receivables. At the time the loans were made, we did not intend for the arrangement to be anything other than a financing and did not contemplate a real estate investment. We evaluate each investment to determine whether the loan arrangement qualifies as a loan, joint venture or real estate investment and the appropriate accounting thereon. Such determination affects our balance sheet classification of these investments and the recognition of interest income derived therefrom. On some of the loans we receive additional interest, however, we never receive in excess of 50% of the residual profit in the project, and because the borrower has either a substantial investment in the project or has guaranteed all or a portion of our loan (or a combination thereof), the loans qualify for loan accounting. The amou nts under these arrangements are presented as mortgage notes receivable at December 31, 2010 and 2009.

Mortgage notes receivable are recorded at cost, net of any valuation adjustments. Interest income is accrued as earned. Mortgage notes receivable are considered past due based on the contractual terms of the note agreement. On a quarterly basis, we evaluate the collectability of each mortgage note receivable based on various factors which may include payment history, expected fair value of the collateral securing the loan, internal and external credit information and/or economic trends. A loan is considered impaired when, based upon current information and events, it is probable that we will be unable to collect all amounts due under the existing contractual terms. When a loan is considered impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the mortgage note receivable to the present value of expected future cash flows. Since all of our loans ar e collateralized by either a first or second mortgage, the loans have risk characteristics similar to the risks in owning commercial real estate.

Share Based Compensation

We grant share based compensation awards to employees and trustees typically in the form of options, commons shares, and restricted common shares. We measure stock based compensation expense based on the grant date fair value of the award and recognize the expense ratably over the vesting period. See Note 14 for further discussion regarding our share based compensation plans and policies.

Variable Interest Entities

Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as VIEs. VIEs are required to be consolidated by their primary beneficiary. Effective January 1, 2010 with the adoption of a new accounting pronouncement, the primary beneficiary of a VIE 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. Prior to January 1, 2010, the primary beneficiary of a VIE was determined to be the party that absorbs a majority of the entity's expected losses, receives a majority of its expected returns, or both.

We have evaluated our investments in certain joint ventures including our real estate partnership with affiliates of a discretionary fund created and advised by ING Clarion Partners and our Taurus Newbury Street JV II Limited Partnership and determined that these joint ventures do not meet the requirements of a variable interest entity and, therefore, consolidation of these ventures is not required. These investments are accounted for using the equity method. We have also evaluated our mortgage loans receivable and determined that entities obligated under the mortgage loans are not VIEs except with respect to our first and second mortgage loans on a shopping center and adjacent building located in Norwalk, Connecticut as further discussed in Note 3. Our investment balances from our real estate partnerships and mortgage notes receivable are presented separately in our consolidated bala nce sheets.

On October 16, 2006, we acquired the leasehold interest in Melville Mall under a 20 year master lease. Additionally, we loaned the owner of Melville Mall $34.2 million secured by a second mortgage on the property. We have an option to purchase the shopping center on or after October 16, 2021 for a price of $5.0 million plus the assumption of the first mortgage and repayment of the second mortgage. If we fail to exercise our purchase option, the owner of Melville Mall has a put option which would require us to purchase Melville Mall in 2023 for $5 million and the assumption of the owner's debt. We have determined that this property is held in a variable interest entity for which we are the primary beneficiary. Accordingly, beginning October 16, 2006, we consolidated this property and its operations. As of December 31, 2010 and 2009, $22.8 million and $23.4 million, respectively, are included in mortgages payable (net of unamortized discounts) for the mortgage loan secured by Melville Mall, however, the loan is not our legal obligation. At December 31, 2010 and 2009, net real estate assets related to Melville Mall included in our consolidated balance sheet are approximately $64.8 million and $65.6 million, respectively.

In conjunction with the acquisitions of several of our properties, we entered into Reverse Section 1031 like-kind exchange agreements with a third party intermediary. The exchange agreements are for a maximum of 180 days and allow us, for tax purposes, to defer gains on sale of other properties sold within this period. Until the earlier of termination of the exchange agreements or 180 days after the respective acquisition dates, the third party intermediary is the legal owner of each property, although we control the activities that most significantly impact each property and retain all of the economic benefits and risks associated with each property. Each property is held by a third party intermediary in a variable interest entity for which we are the primary beneficiary. Accordingly, we consolidate these properties and their operations even during the period they are held by a third party intermediary. A summary of such properties is as follows:


*Property*	*Dates Held by a Third Party Intermediary*	*Date Consolidated*
Del Mar Village	May 30, 2008 to November 25, 2008	May 30, 2008
7015 & 7045 Beracasa Way	July 11, 2008 to January 7, 2009	July 11, 2008
Courtyard Shops	September 4, 2008 to March 2, 2009	September 4, 2008
Huntington Square(1)	August 16, 2010 to February 12, 2011	August 16, 2010

(1)	Quantitative and qualitative information regarding significant assets and liabilities are included in Note 2.

Income Taxes

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.

We have elected to treat certain of our subsidiaries as taxable REIT subsidiaries, which we refer to as a TRS. In general, a TRS may engage in any real estate business and certain non-real estate businesses, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the "Code"). A TRS is subject to federal and state income taxes. Other than the sales of condominiums at Santana Row, which occurred between August 2005 and August 2006, our TRS activities have not been material.

With few exceptions, we are no longer subject to U.S. federal, state, and local tax examinations by tax authorities for years before 2006. As of December 31, 2010 and 2009, we had no material unrecognized tax benefits. While we currently have no material unrecognized tax benefits, as a policy, we recognize penalties and interest accrued related to unrecognized tax benefits as income tax expense.

Segment Information

Our primary business is the ownership, management, and redevelopment of retail and mixed use properties. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. We evaluate financial performance using property operating income, which consists of rental income, other property income and mortgage interest income, less rental expenses and real estate taxes. No individual property constitutes more than 10% of our revenues or property operating income and we have no operations outside of the United States of America. Therefore, we have aggregated our properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies, are typically located in maj or metropolitan areas, and have similar tenant mixes.

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, and Huntington Square in East Northport, New York. 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.

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 adopted the standard in the fourth quarter 2010 and it did not have a material impact to our financial statements.

Consolidated Statements of Cash Flows – Supplemental Disclosures

The following table provides additional information related to the consolidated statements of cash flows:


	2010			2009			2008
	(In thousands)
SUPPLEMENTAL DISCLOSURES:
Total interest costs incurred	$	108,167		$	114,330		$	104,464
Interest capitalized		(6,285	)		(5,549	)		(5,301	)

Interest expense	$	101,882		$	108,781		$	99,163

Cash paid for interest, net of amounts capitalized	$	98,932		$	102,106		$	95,897

Cash paid for income taxes	$	255		$	324		$	444

NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Extinguishment of deferred ground rent liability	$	8,832		$	—		$	—
Extinguishment of capital lease obligations	$	1,031		$	—		$	11,545
Acquisition of real estate through exchange transaction	$	—		$	30,100		$	—
Proceeds from sale of real estate through exchange transaction	$	—		$	25,100		$	—
Liability assumed through exchange transaction	$	—		$	5,000		$	—
Mortgage loans assumed with acquisitions	$	—		$	—		$	32,452
Note payable issued with acquisitions	$	—		$	—		$	2,221

Capitalized lease costs are direct costs incurred which were essential to originate a lease and would not have been incurred had the leasing transaction not taken place. These costs include third party commissions and salaries and personnel costs related to obtaining a lease. Capitalized lease costs are amortized over the initial term of the related lease which generally ranges from three to ten years. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow and therefore, we classify cash outflows related to leasing costs as an investing activity in our consolidated statements of cash flows.

REAL ESTATE

12 Months Ended

Dec. 31, 2010

REAL ESTATE

REAL ESTATE

NOTE 2. REAL ESTATE

A summary of our real estate investments and related encumbrances is as follows:


	Cost		Accumulated Depreciation and Amortization			Encumbrances
	(In thousands)
December 31, 2010
Retail and mixed-use properties	$	3,758,960	$	(995,328	)	$	505,934
Retail properties under capital leases		108,381		(29,421	)		59,940
Residential		28,601		(10,455	)		23,567

	$	3,895,942	$	(1,035,204	)	$	589,441

December 31, 2009
Retail and mixed-use properties	$	3,615,514	$	(899,120	)	$	515,729
Retail properties under capital leases		115,813		(29,261	)		62,275
Residential		27,907		(9,706	)		23,880

	$	3,759,234	$	(938,087	)	$	601,884

Retail and mixed-use properties includes the residential portion of Santana Row and Bethesda Row. The residential property investments are comprised of our investments in Rollingwood Apartments and Crest Apartments at Congressional Plaza.

2010 Significant Acquisitions and Transactions

A summary of our significant acquisitions in 2010 is as follows:

Date

Property

City, State

Gross Leasable Area

Purchase Price

(In square feet)

(In millions)

August 16

Huntington Square

East Northport, NY

74,000

17.6

(1)

November 10

Former Mervyn's Parcel

(Escondido Promenade)

Escondido, CA

75,000

11.2

(2)

November 22

Pentagon Row

Arlington, VA

N/A

8.5

(3)

December 27

Bethesda Row

Bethesda, MD

N/A

9.4

(4)

Total

149,000

46.7

(1)

We acquired the leasehold interest in this property. Approximately $9.2 million of 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 net assets acquired were allocated to liabilities for "below market leases". We incurred approximately $0.3 million of acquisition costs which are included in "general and administrative expenses".

(2)	This property is adjacent to and operated as part of Escondido Promenade which is owned through a partnership in which we own the controlling interest.

(3)

We and a subsidiary of Post Properties, Inc. ("Post") purchased the fee interest in the land under Pentagon Row. The land was purchased as a result of a favorable outcome to litigation. In September 2008, we and 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. Vornado appealed the ruling, however, the appeal was denied in November 2010. As part of the acquisition of the land and termination of the respective ground lease, we were relieved of our deferred ground rent liability for approximately $8.8 million. The liability was offset against the purchase price with the excess of the liability over the purchase price of $0.3 million included in the statement of operations as an adjustment to rental expense.

(4)	We acquired the fee interest in approximately 2.1 acres of land under Bethesda Row. Prior to the transaction, the land parcel was owned pursuant to a ground lease and encumbered by a capital lease obligation which was terminated as part of the transaction.

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.

In December 2010, we committed to a plan of sale for two buildings on Fifth Avenue in San Diego, California. As the buildings met the criteria to be classified as held for sale, we recognized a $0.4 million loss to write down one of the buildings to its expected sales price less cost to sell. We expect the sales will be completed in 2011. The operations of the buildings have been reclassified as discontinued operations in the consolidated statements of operations for all years presented and included in "assets held for sale" in our consolidated balance sheets.

2009 Significant Acquisitions and Dispositions

On June 26, 2009, one of our tenants acquired from us our fee interest in a land parcel in White Marsh, Maryland, that was subject to a long-term ground lease. The ground lease included an option for the tenant to purchase the fee interest. The sales price was $2.1 million and resulted in a gain of $0.4 million.

On October 16, 2009, we acquired 16.6 acres of riverfront property at Assembly Row in Somerville, Massachusetts, for use in future development, in exchange for the sale of 12.4 acres of adjacent inland land, $3 million in cash, and the assumption of a $5 million liability. The purchase price of the riverfront parcel was determined to be $33.1 million based on current fair value calculations. The sale of the inland land resulted in no gain or loss on sale as the fair value of the consideration exchanged equaled the cost basis of the land sold.

REAL ESTATE PARTNERSHIPS

12 Months Ended

Dec. 31, 2010

REAL ESTATE PARTNERSHIPS

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 December 31, 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 the fees is eliminated in consolidation. We also have the opportunity to receive performance-based earnings through our P artnership 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. As of December 31, 2010, we have made total contributions of $42.1 million and received total distributions of $9.9 million. The following tables provide summarized operating results and the financial position of the Partnership:


	Year Ended December 31,
	2010		2009		2008
	(In thousands)
OPERATING RESULTS
Revenue	$	18,639	$	19,109	$	19,111
Expenses
Other operating expenses		6,149		6,019		5,185
Depreciation and amortization		5,046		4,998		4,792
Interest expense		3,400		4,430		4,537

Total expenses		14,595		15,447		14,514

Net income	$	4,044	$	3,662	$	4,597

Our share of net income from real estate partnership	$	1,449	$	1,322	$	1,612


	December 31,
	2010		2009
	(In thousands)
BALANCE SHEETS
Real estate, net	$	181,565	$	183,757
Cash		3,054		2,959
Other assets		7,336		6,853

Total assets	$	191,955	$	193,569

Mortgages payable	$	57,584	$	57,780
Other liabilities		5,439		6,101
Partners' capital		128,932		129,688

Total liabilities and partners' capital	$	191,955	$	193,569

Our share of unconsolidated debt	$	17,275	$	17,334

Our investment in real estate partnership	$	35,504	$	35,633

On December 1, 2009, the Partnership repaid $23.4 million of mortgage loans secured by two properties on their maturity dates. Both partners made additional capital contributions totaling $23.4 million to repay the mortgage loans, of which our contribution was $7.0 million.

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 2010, we recorded expenses of approximately $0.2 million related to our share of 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. A significant portion of the office space was vacant when the properties were acquired and is currently being leased up. 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 partne rships" in the consolidated balance sheet. During 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 September 30, 2010, and the financial position of the Newbury Street Partnership as of September 30, 2010:


OPERATING RESULTS (in thousands)
Revenue	$	371
Expenses
Other operating expenses		254
Depreciation and amortization		121
Interest expense		136
Acquisition and formation expenses		492

Total expenses		1,003

Net loss	$	(632	)

Our share of net loss from real estate partnership	$	(389	)


BALANCE SHEET (in thousands)
Real estate, net	$	17,140
Cash		375
Other assets		375

Total assets	$	17,890

Mortgages payable	$	8,750
Other liabilities		399
Partners' capital		8,741

Total liabilities and partners' capital	$	17,890

Our investment in real estate partnership	$	16,102

DEBT

12 Months Ended

Dec. 31, 2010

DEBT

DEBT

NOTE 6. DEBT

The following is a summary of our total debt outstanding as of December 31, 2010 and 2009:


	Principal Balance as of December 31,						Stated Interest Rate as of December 31, 2010			Stated Maturity Date
Description of Debt	2010			2009			Stated Interest Rate as of December 31, 2010			Stated Maturity Date
	(Dollars in thousands)
Mortgages payable
Federal Plaza	$	31,901		$	32,536			6.750	%	June 1, 2011
Tysons Station		5,713			5,898			7.400	%	September 1, 2011
Courtyard Shops		7,289			7,518			6.870	%	July 1, 2012
Bethesda Row		19,994			19,995			5.370	%	January 1, 2013
Bethesda Row		4,163			4,304			5.050	%	February 1, 2013
White Marsh Plaza		9,580			9,859			6.040	%	April 1, 2013
Crow Canyon		20,395			20,816			5.400	%	August 11, 2013
Idylwood Plaza		16,544			16,792			7.500	%	June 5, 2014
Leesburg Plaza		28,786			29,219			7.500	%	June 5, 2014
Loehmann's Plaza		37,224			37,783			7.500	%	June 5, 2014
Pentagon Row		53,437			54,240			7.500	%	June 5, 2014
Melville Mall		23,073			23,782			5.250	%	September 1, 2014
THE AVENUE at White Marsh		57,803			58,939			5.460	%	January 1, 2015
Barracks Road		39,850			40,639			7.950	%	November 1, 2015
Hauppauge		15,022			15,320			7.950	%	November 1, 2015
Lawrence Park		28,246			28,805			7.950	%	November 1, 2015
Wildwood		24,827			25,319			7.950	%	November 1, 2015
Wynnewood		28,785			29,355			7.950	%	November 1, 2015
Brick Plaza		29,429			30,053			7.415	%	November 1, 2015
Rollingwood Apartments		23,567			23,880			5.540	%	May 1, 2019
Shoppers' World		5,593			5,733			5.910	%	January 31, 2021
Mount Vernon		10,937			11,298			5.660	%	April 15, 2028
Chelsea		7,795			7,952			5.360	%	January 15, 2031

Subtotal		529,953			540,035
Net unamortized discount		(452	)		(426	)

Total mortgages payable		529,501			539,609

Notes payable
Revolving credit facility		77,000			—			LIBOR+0.425	%	July 27, 2011
Term loan		—			250,000			LIBOR+3.000	%	July 27, 2011
Various		11,481			2,345			3.57	%	Various through 2013
Escondido (Municipal bonds)		9,400			9,400			0.51	%	October 1, 2016

Total notes payable		97,881			261,745

Senior notes and debentures
4.50% notes		75,000			75,000			4.500	%	February 15, 2011
6.00% notes		175,000			175,000			6.000	%	July 15, 2012
5.40% notes		135,000			135,000			5.400	%	December 1, 2013
5.95% notes		150,000			150,000			5.950	%	August 15, 2014
5.65% notes		125,000			125,000			5.650	%	June 1, 2016
6.20% notes		200,000			200,000			6.200	%	January 15, 2017
5.90% notes		150,000			—			5.900	%	April 1, 2020
7.48% debentures		29,200			29,200			7.480	%	August 15, 2026
6.82% medium term notes		40,000			40,000			6.820	%	August 1, 2027

Subtotal		1,079,200			929,200
Net unamortized premium		627			1,019

Total senior notes and debentures		1,079,827			930,219

Capital lease obligations		59,940			62,275			Various		Various through 2106

Total debt and capital lease obligations	$	1,767,149		$	1,793,848

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.

On December 27, 2010, we acquired the fee interest in approximately 2.1 acres of land under our Bethesda Row property. Prior to the transaction, we had a capital lease obligation of $1.0 million on the land parcel which was extinguished as part of the transaction.

The maximum amount of borrowings outstanding under our $300 million revolving credit facility during 2010, 2009 and 2008 was $82.0 million, $172.5 million and $159.0 million, respectively. The weighted average amount of borrowings outstanding was $23.4 million, $47.7 million and $61.4 million for 2010, 2009 and 2008, respectively. Our revolving credit facility had a weighted average interest rate, before amortization of debt fees, of 0.7%, 1.4% and 3.0% for 2010, 2009 and 2008, respectively. Our revolving credit facility also had a weighted average interest rate, before amortization of debt fees, of 0.7% at December 31, 2010 and 0% at December 31, 2009 as there was no outstanding balance. In addition, we are required to pay an annual facility fee of $0.5 million. The loan matures on July 27, 2011.

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 December 31, 2010, we were in compliance with all loan covenants.

Scheduled principal payments on mortgages payable, notes payable, senior notes and debentures as of December 31, 2010 are as follows:


	Mortgages Payable			Notes Payable			Senior Notes and Debentures		Total Principal
	(In thousands)
Year ending December 31,
2011	$	47,349		$	77,724	(1)	$	75,000	$	200,073
2012		17,380			10,727			175,000		203,107
2013		72,107	(2)		30			135,000		207,137
2014		156,364			—			150,000		306,364
2015		203,398			—			—		203,398
Thereafter		33,355			9,400			544,200		586,955

	$	529,953		$	97,881		$	1,079,200	$	1,707,034	(3)

(1)	Our $300 million revolving credit facility matures on July 27, 2011. As of December 31, 2010, there was $77.0 drawn under this credit facility.

(2)	Includes the repayment of the outstanding mortgage payable balance on Mount Vernon. The lender has the option to call the loan on April 15, 2013 or any time thereafter.

(3)	The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain senior notes, debentures and mortgages payable.

Future minimum lease payments and their present value for property under capital leases as of December 31, 2010, are as follows:


	(In thousands)
Year ending December 31,
2011	$	5,475
2012		5,484
2013		5,488
2014		5,487
2015		5,488
Thereafter		137,920

		165,342
Less amount representing interest		(105,402	)

Present value	$	59,940

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2010

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 8. COMMITMENTS AND CONTINGENCIES

We are sometimes involved in lawsuits, warranty claims, and environmental matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.

We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. 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 liabili ties, 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 addition al information regarding the appeal, we lowered our accrual to $16.4 million in the fourth quarter 2009, which reflected our best estimate of the litigation liability. Oral arguments on the appeal were heard in December 2010. A final ruling on the appeal was issued in February 2011 which rejected both appeals and consequently, affirmed the final judgment against us. Therefore, in December 2010, we adjusted our accrual to $16.2 million which reflects the amount we expect to pay in first quarter 2011.

The net change in our accrual in 2010 and 2009 is included in "litigation provision" in our consolidated statements of operations. The litigation accrual of $16.2 million and $16.4 million at December 31, 2010 and 2009, respectively, is included in the "accounts payable and accrued expenses" line item in our consolidated balance sheets. During 2010 and 2009, 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.

We were also involved in a litigation matter relating to a shopping center in New Jersey where a former tenant alleged that we and our management agent acted improperly by failing to disclose a condemnation action at the property that was pending when the lease was signed. A trial as to liability only was concluded in April 2007, and in May 2008, a judgment was entered that ruled in our favor on certain legal issues and against us on other legal issues. In December 2008, we reached a settlement with the plaintiff of those matters where the court ruled against us and determined that we were liable. The total settlement amount was $3.3 million, including $1.0 million of the plaintiff's legal fees, of which we paid 50% and the third party management agent paid 50%. Our share of the total estimated settlement is included in "general and administrative expense" in the statement of operatio ns.

We reserve for estimated losses, if any, associated with warranties given to a buyer at the time real estate is sold or other potential liabilities relating to that sale, taking any insurance policies into account. These warranties may extend up to ten years and require significant judgment. If changes in facts and circumstances indicate that warranty reserves are understated, we will accrue additional reserves at such time a liability has been incurred and the costs can be reasonably estimated. Warranty reserves are released once the legal liability period has expired or all related work has been substantially completed. Any increases to our estimated warranty losses would usually result in a decrease in net income.

In 2005 and 2006, warranty reserves for condominium units sold at Santana Row were established to cover potential costs for materials, labor and other items associated with warranty-type claims that may arise within the ten-year statutorily mandated latent construction defect warranty period. In 2006 and 2007, we increased our warranty reserves by $2.5 million and $5.1 million, respectively, net of taxes, related to defective work done by third party contractors while upgrades were made to certain units being prepared for sale. During 2007 and 2008, we evaluated the potentially affected units, and as of December 31, 2008, had substantially completed the inspections and repairs. The extent of the damages encountered in the units and the resulting costs to repair varied considerably amongst the units. As a result, we adjusted the warranty reserve at December 31, 2008, to reflect the actual costs incurred related to these issues which is approximately $2.4 million, net of $1.5 million of taxes. The change in the reserve of $5.2 million is included in "Discontinued operations—gain on sale of real estate" in 2008. Due to the inherent uncertainty related to the recovery from insurance or the contractors, these amounts did not reflect any potential recoveries from insurance or the contractors responsible for the defective work.

In 2009, we entered into a settlement agreement with the insurance provider and recovered approximately $0.9 million. In 2010, we reached a settlement with the contractors responsible for performing the defective work for approximately $1.0 million. The settlements are included in "Discontinued operations—gain on sale of real estate" in 2009 and 2010.

We are self-insured for general liability costs up to predetermined retained amounts per claim, and we believe that we maintain adequate accruals to cover our retained liability. We currently do not maintain third party stop-loss insurance policies to cover liability costs in excess of predetermined retained amounts. Our accrual for self-insurance liability is determined by management and is based on claims filed and an estimate of claims incurred but not yet reported. Management considers a number of factors, including third-party actuarial analysis and future increases in costs of claims, when making these determinations. If our liability costs exceed these accruals, it will reduce our net income.

At December 31, 2010 and 2009, our reserves for warranties and general liability costs were $7.2 million and $8.0 million, respectively, and are included in "accounts payable and accrued expenses" in our consolidated balance sheets. Any potential losses which exceed our estimates would result in a decrease in our net income. During 2010 and 2009, we made payments from these reserves of $1.3 million and $1.0 million, respectively. Although we consider the reserve to be adequate, there can be no assurance that the reserve will prove to be adequate over-time to cover losses due to the difference between the assumptions used to estimate the reserve and actual losses.

At December 31, 2010, we had letters of credit outstanding of approximately $14.0 million which are collateral for existing indebtedness and other obligations of the Trust.

Under the terms of the Congressional Plaza partnership agreement, from and after January 1, 1986, an unaffiliated third party has the right to require us and the two other minority partners to purchase between one-half to all of its 29.47% interest in Congressional Plaza at the interest's then-current fair market value. Based on management's current estimate of fair market value as of December 31, 2010, our estimated maximum liability upon exercise of the put option would range from approximately $44 million to $51 million.

Under the terms of one other partnership which owns a project in southern California, if certain leasing and revenue levels are obtained for the property owned by the partnership, the other partner may require us to purchase their 10% partnership interest at a formula price based upon property operating income. The purchase price for the partnership interest will be paid using our common shares or, subject to certain conditions, cash. If the other partner does not redeem their interest, we may choose to purchase the partnership interest upon the same terms.

Under the terms of various other partnership agreements, the partners have the right to exchange their operating units for cash or the same number of our common shares, at our option. As of December 31, 2010, a total of 362,314 operating units are outstanding which have a total fair value of $28.2 million, based on our closing stock price on December 31, 2010.

A master lease for Mercer Mall includes a fixed purchase price option for $55 million in 2023. If we fail to exercise our purchase option, the owner of Mercer Mall has a put option which would require us to purchase Mercer Mall for $60 million in 2025.

A master lease for Melville Mall includes a fixed purchase price option in 2021 for $5 million and the assumption of the owner's debt which is $23.1 million at December 31, 2010. If we fail to exercise our purchase option, the owner of Melville Mall has a put option which would require us to purchase Melville Mall in 2023 for $5 million and the assumption of the owner's debt.

As of December 31, 2010 in connection with capital improvement, development, and redevelopment projects, the Trust has contractual obligations of approximately $54.4 million.

We are obligated under ground lease agreements on several shopping centers requiring minimum annual payments as follows, as of December 31, 2010:


	(In thousands)
Year ending December 31,
2011	$	1,467
2012		1,306
2013		1,314
2014		1,303
2015		1,253
Thereafter		53,281

	$	59,924

SHARE-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2010

SHARE-BASED COMPENSATION PLANS

SHARE-BASED COMPENSATION PLANS

NOTE 14. SHARE-BASED COMPENSATION PLANS

A summary of share-based compensation expense included in net income is as follows:


	Year Ended December 31,
	2010			2009			2008
	(In thousands)
Share-based compensation incurred
Grants of common shares	$	5,232		$	5,718		$	6,442
Grants of options		1,255			1,421			1,336

		6,487			7,139			7,778
Capitalized share-based compensation		(745	)		(945	)		(1,208	)

Share-based compensation expensed	$	5,742		$	6,194		$	6,570

As of December 31, 2010, we have grants outstanding under three share-based compensation plans. In May 2010, our shareholders approved the 2010 Performance Incentive Plan, as amended ("the 2010 Plan"), which authorized the grant of share options, common shares and other share-based awards for up to 2,450,000 common shares of beneficial interest. Our 2001 Long Term Incentive Plan (the "2001 Plan"), which expired in May 2010, authorized the grant of share options, common shares and other share-based awards of 3,250,000 common shares of beneficial interest. Our 1993 Long Term Incentive Plan (the "1993 Plan"), which expired in May 2003, authorized the grant of share options, common shares and other share-based awards for up to 5,500,000 common shares of beneficial interest.

Option awards under all three plans are required to have an exercise price at least equal to the closing trading price of our common shares on the date of grant. Options and restricted share awards under these plans generally vest over three to six years and option awards typically have a ten-year contractual term. We pay dividends on unvested shares. Certain options and share awards provide for accelerated vesting if there is a change in control. Additionally, the vesting on certain option and share awards can accelerate in part or in full upon retirement based on the age of the retiree or upon termination without cause.

As a result of the exercise of options, we had notes outstanding from our officers and employees for $0.8 million at December 31, 2007; the notes were fully repaid during 2008. Option awards made in 2001 and later do not provide for employees to be able to exercise their options with a loan from the Trust.

In October 2010, Donald C. Wood, our Chief Executive Officer, was granted 60,931 shares of restricted stock valued at approximately $5,000,000, 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 his 2010 bonus, and his target amount for potential equity to be issued in February 2011 under our 2010 Plan was increased from $2.0 million to $4.0 million.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities, term, dividend yields, employee exercises and estimated forfeitures are primarily based on historical data. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of each share award is determined based on the closing trading price of our common shares on the grant date.

The following table provides a summary of the weighted-average assumption used to value options:


	Year Ended December 31,
	2010			2008			2007
Volatility		30.0	%		28.6	%		21.4	%
Expected dividend yield		4.0	%		3.6	%		3.6	%
Expected term (in years)		4.3			4.9			5.4
Risk free interest rate		1.9	%		1.6	%		2.7	%

The following table provides a summary of option activity for 2010:


	Shares Under Option			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Outstanding at December 31, 2009		873,367		$	59.35
Granted		717			66.22
Exercised		(107,493	)		38.77
Forfeited or expired		(9,167	)		75.19

Outstanding at December 31, 2010		757,424		$	62.09		6.3	$	12,740

Exercisable at December 31, 2010		394,565		$	63.80		5.3	$	6,067

The weighted-average grant-date fair value of options granted during 2010, 2009 and 2008 was $11.77 per share, $7.62 per share and $10.46 per share, respectively. The total cash received from options exercised during 2010, 2009 and 2008 was $4.2 million, $2.9 million and $8.0 million, respectively. The total intrinsic value of options exercised during the year ended December 31, 2010, 2009 and 2008 was $4.2 million, $4.6 million and $9.3 million, respectively.

The following table provides a summary of restricted share activity for 2010:


	Shares			Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2009		200,254		$	65.81
Granted		135,833			73.51
Vested		(64,799	)		72.41
Forfeited		(495	)		89.06

Unvested at December 31, 2010		270,793		$	68.07

The weighted-average grant-date fair value of stock awarded in 2010, 2009 and 2008 was $73.51, $45.77 and $72.98, respectively. The total vesting-date fair value of shares vested during the year ended December 31, 2010, 2009 and 2008 was $4.3 million, $4.6 million and $5.9 million, respectively.

As of December 31, 2010, there was $14.0 million of total unrecognized compensation cost related to unvested share-based compensation arrangements (i.e. options and unvested shares) granted under our plans. This cost is expected to be recognized over the next 4.9 years with a weighted-average period of 3.1 years.

Subsequent to December 31, 2010, common shares were awarded under various compensation plans as follows:


Date	Award	Vesting Term	Beneficiary
February 10, 2011	86,681 Restricted shares	3 to 6 years	Officers and key employees
January 3, 2011	4,172 Shares	Immediate	Trustees

SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2010

SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION

SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION

FEDERAL REALTY INVESTMENT TRUST

SCHEDULE III

SUMMARY OF REAL ESTATE AND ACCUMULATED

DEPRECIATION

DECEMBER 31, 2010

(Dollars in thousands)


COLUMN A		COLUMN B		COLUMN C				COLUMN D			COLUMN E						COLUMN F		COLUMN G		COLUMN H		COLUMN I
Descriptions		Encumbrance		Initial cost to company				Cost Capitalized Subsequent to Acquisition			Gross amount at which carried at close of period						Accumulated Depreciation and Amortization		Date of Construction		Date Acquired		Life on which depreciation in latest income statements is computed
Descriptions		Encumbrance		Land		Building and Improvements		Cost Capitalized Subsequent to Acquisition			Land		Building and Improvements		Total		Accumulated Depreciation and Amortization		Date of Construction		Date Acquired
150 POST STREET (California)	CA	$	—	$	11,685	$	9,181	$	16,995		$	11,685	$	26,176	$	37,861	$	12,545		1908		10/23/97		35 years
ANDORRA (Pennsylvania)	PA		—		2,432		12,346		8,994			2,432		21,340		23,772		13,686		1953		01/12/88		35 years
ASSEMBLY SQUARE MARKETPLACE/ASSEMBLY ROW (Massachusetts)	MA		—		54,615		34,196		105,090			54,615		139,286		193,901		11,071		2005		2005-2010		35 years
THE AVENUE AT WHITE MARSH (Maryland)	MD		57,837		20,682		72,432		2,641			20,682		75,073		95,755		10,393		1997		03/08/07		35 years
BALA CYNWYD (Pennsylvania)	PA		—		3,565		14,466		15,625			3,566		30,090		33,656		11,551		1955		09/22/93		35 years
BARRACKS ROAD (Virginia)	VA		39,850		4,363		16,459		30,139			4,363		46,598		50,961		30,242		1958		12/31/85		35 years
BETHESDA ROW (Maryland)	MD		24,131		36,971		35,406		134,771			42,378		164,770		207,148		31,241		1945-2008		12/31/93, 1/20/06, 9/25/08, 9/30/08, & 12/27/10		35 -50 years
BRICK PLAZA (New Jersey)	NJ		29,429				24,715		33,228			3,923		54,020		57,943		35,659		1958		12/28/89		35 years
BRISTOL (Connecticut)	CT				3,856		15,959		8,456			3,856		24,415		28,271		10,655		1959		09/22/95		35 years
CHELSEA COMMONS (Massachusetts)	MA		7,440		9,417		19,466		1,385			9,396		20,872		30,268		2,289		1962/1969/2008		08/25/06, 1/30/07, & 7/16/08		35 years
COLORADO BLVD (California)	CA		—		5,262		4,071		7,371			5,262		11,442		16,704		6,576		1905/1915/1980's		12/31/96 & 8/14/98		35 years
CONGRESSIONAL PLAZA (Maryland)	MD		—		2,793		7,424		61,082			1,020		70,279		71,299		39,445		1965/2003		04/01/65		35 years
COURTHOUSE CENTER (Maryland)	MD		—		1,750		1,869		747			1,750		2,616		4,366		1,110		1975		12/17/97		35 years
COURTYARD SHOPS (Florida)	FL		7,388		16,862		21,851		1,004			16,894		22,823		39,717		1,906		1990/1998		09/04/08		35 years
CROSSROADS (Illinois)	IL				4,635		11,611		12,979			4,635		24,590		29,225		9,896		1959		07/19/93		35 years
CROW CANYON COMMONS (California)	CA		20,395		8,638		54,575		2,050			8,638		56,625		65,263		8,573		Late 1970's/2006		12/29/05 & 02/28/07		35 years
DEDHAM PLAZA (Massachusetts)	MA		—		12,287		12,918		7,803			12,287		20,721		33,008		9,900		1959		12/31/93		35 years
DEL MAR VILLAGE (Florida)	FL		—		14,218		39,559		1,103			14,180		40,700		54,880		3,509		1982/1984		5/30/08 & 7/11/08		35 years
EASTGATE (North Carolina)	NC		—		1,608		5,775		18,994			1,608		24,769		26,377		13,219		1963		12/18/86		35 years
ELLISBURG CIRCLE (New Jersey)	NJ		—		4,028		11,309		12,680			4,013		24,004		28,017		15,047		1959		10/16/92		35 years
ESCONDIDO PROMENADE (California)	CA		—		19,117		15,829		8,721			19,117		24,550		43,667		6,800		1987		12/31/96 & 11/10/10		35 years
FALLS PLAZA (Virginia)	VA		—		1,798		1,270		9,241			1,819		10,490		12,309		6,411		1960-1962		09/30/67 & 10/05/72		25 years
FEASTERVILLE (Pennsylvania)	PA		—		1,431		1,600		9,033			1,452		10,612		12,064		7,915		1958		07/23/80		20 years
FEDERAL PLAZA (Maryland)	MD		31,901		10,216		17,895		34,662			10,216		52,557		62,773		30,712		1970		06/29/89		35 years
FIFTH AVENUE (California) (4)	CA		—		3,844		1,352		7,378			3,874		8,700		12,574		4,147		1888-1995		1996-1997		35 years
FINLEY SQUARE (Illinois)	IL		—		9,252		9,544		13,679			9,252		23,223		32,475		12,820		1974		04/27/95		35 years
FLOURTOWN (Pennsylvania)	PA		—		1,345		3,943		10,542			1,470		14,360		15,830		7,074		1957		04/25/80		35 years
FOREST HILLS (New York)	NY		—		2,885		2,885		2,334			3,031		5,073		8,104		2,158		1937-1987		12/16/97		35 years
FRESH MEADOWS (New York)	NY		—		24,625		25,255		20,336			24,628		45,588		70,216		21,495		1946-1949		12/05/97		35 years
FRIENDSHIP CTR (District of Columbia)	DC		—		12,696		20,803		855			12,696		21,658		34,354		5,562		1998		09/21/01		35 years
GAITHERSBURG SQUARE (Maryland)	MD		—		7,701		5,271		12,012			5,973		19,011		24,984		12,785		1966		04/22/93		35 years
GARDEN MARKET (Illinois)	IL		—		2,677		4,829		4,866			2,677		9,695		12,372		4,845		1958		07/28/94		35 years
GOVERNOR PLAZA (Maryland)	MD		—		2,068		4,905		18,768			2,068		23,673		25,741		12,313		1963		10/01/85		35 years
GRATIOT PLAZA (Michigan)	MI		—		525		1,601		16,761			525		18,362		18,887		11,872		1964		03/29/73		25 3/4 years
GREENWICH AVENUE (Connecticut)	CT		—		7,484		5,445		1,040			7,484		6,485		13,969		2,813		1900-1993		1995		35 years
HAUPPAUGE (New York)	NY		15,022		8,791		15,262		3,930			8,791		19,192		27,983		7,053		1963		08/06/98		35 years
HERMOSA AVE. (California)	CA		—		1,116		280		4,213			1,368		4,241		5,609		1,798		1922		09/17/97		35 years
HOLLYWOOD BLVD. (California)	CA		—		8,300		16,920		13,956			8,300		30,876		39,176		6,021		1929/1991		3/22/99 & 6/18/99		35 years
HOUSTON STREET (Texas) (8)	TX		—		14,680		1,976		49,117			14,778		50,995		65,773		20,183		var		1998		35 years
HUNTINGTON (New York)	NY		—		—		16,008		22,776			11,713		27,071		38,784		8,079		1962		12/12/88 & 10/26/07		35 years
HUNTINGTON SQUARE (New York)	NY		—		—		10,075		4			—		10,079		10,079		131		1980/2004-2007		08/16/10		35 years
IDYLWOOD PLAZA (Virginia)	VA		16,544		4,308		10,026		1,637			4,308		11,663		15,971		5,620		1991		04/15/94		35 years
KINGS COURT (California)	CA		—		—		10,714		886			—		11,600		11,600		5,735		1960		08/24/98		26 years
LANCASTER (Pennsylvania)	PA		4,907		—		2,103		10,658			76		12,685		12,761		6,094		1958		04/24/80		22 years
LANGHORNE SQUARE (Pennsylvania)	PA		—		720		2,974		16,616			720		19,590		20,310		10,665		1966		01/31/85		35 years
LAUREL (Maryland)	MD		—		7,458		22,525		17,626			7,576		40,033		47,609		29,137		1956		08/15/86		35 years
LAWRENCE PARK (Pennsylvania)	PA		28,246		5,723		7,160		17,695			5,734		24,844		30,578		20,822		1972		07/23/80		22 years
LEESBURG PLAZA (Virginia)	VA		28,786		8,184		10,722		15,613			8,184		26,335		34,519		7,935		1967		09/15/98		35 years
LINDEN SQUARE (Massachusetts)	MA		—		79,382		19,247		46,072			79,269		65,432		144,701		5,854		1960-2008		08/24/06		35 years
LOEHMANN'S PLAZA (Virginia)	VA		37,224		1,237		15,096		16,301			1,248		31,386		32,634		20,397		1971		07/21/83		35 years
MELVILLE MALL (New York)	NY		22,785		35,622		32,882		263			35,622		33,145		68,767		4,000		1974		10/16/06		35 years
MERCER MALL (New Jersey)	NJ		48,706		4,488		70,076		30,528			5,032		100,060		105,092		25,291		1975		10/14/03		25 - 35 years
MID PIKE PLAZA (Maryland)	MD		—		—		10,335		37,339			7,517		40,157		47,674		6,367		1963		05/18/82 & 10/26/07		50 years
MOUNT VERNON/SOUTH VALLEY/7770 RICHMOND HWY. (Virginia)	VA		10,937		10,068		33,501		34,743			10,189		68,123		78,312		15,535		1972/1966/1974		03/31/03, 3/21/03, & 1/27/06		35 years
TOWN CENTER OF NEW BRITAIN (Pennsylvania)	PA		—		1,282		12,285		874			1,262		13,179		14,441		1,906		1969		06/29/06		35 years
NORTH DARTMOUTH (Massachusetts)	MA		—		27,214		—		(17,846	)		9,366		2		9,368		1		2004		08/24/06		—
NORTHEAST (Pennsylvania)	PA		—		1,152		10,596		11,374			1,153		21,969		23,122		15,369		1959		08/30/83		35 years
NORTH LAKE COMMONS (Illinois)	IL		—		2,782		8,604		2,749			2,628		11,507		14,135		5,407		1989		04/27/94		35 years
OLD KEENE MILL (Virginia)	VA		—		638		998		4,355			638		5,353		5,991		4,530		1968		06/15/76		33 1/3 years
OLD TOWN CENTER (California)	CA		—		3,420		2,765		28,127			3,420		30,892		34,312		14,771		1962, 1997-1998		10/22/97		35 years
PAN AM SHOPPING CENTER (Virginia)	VA		—		8,694		12,929		6,901			8,695		19,829		28,524		10,747		1979		02/05/93		35 years
PENTAGON ROW (Virginia)	VA		53,437		—		2,955		85,710			—		88,665		88,665		28,580		1999 - 2002		1998 & 11/22/10		35 years
PERRING PLAZA (Maryland)	MD		—		2,800		6,461		18,048			2,800		24,509		27,309		17,402		1963		10/01/85		35 years
PIKE 7 (Virginia)	VA		—		9,709		22,799		2,956			9,653		25,811		35,464		10,643		1968		03/31/97		35 years
QUEEN ANNE PLAZA (Massachusetts)	MA		—		3,319		8,457		3,883			3,319		12,340		15,659		6,871		1967		12/23/94		35 years
QUINCE ORCHARD PLAZA (Maryland)	MD		—		3,197		7,949		10,653			2,928		18,871		21,799		11,698		1975		04/22/93		35 years
ROCKVILLE TOWN SQUARE (Maryland)	MD		—		—		8,092		29,207			—		37,299		37,299		4,706		2005-2007		2006-2007		50 years
ROLLINGWOOD APTS. (Maryland)	MD		23,567		552		2,246		5,560			572		7,786		8,358		6,574		1960		01/15/71		25 years
SAM'S PARK & SHOP (District of Columbia)	DC		—		4,840		6,319		1,391			4,840		7,710		12,550		3,361		1930		12/01/95		35 years
SANTANA ROW (California)	CA		—		41,969		1,161		507,180			49,725		500,585		550,310		83,274		1999-2010		03/05/97		40 - 50 years
SAUGUS (Massachusetts)	MA				4,383		8,291		1,218			4,383		9,509		13,892		3,912		1976		10/01/96		35 years
VILLAGE AT SHIRLINGTON (Virginia)	VA		6,327		9,761		14,808		29,205			5,798		47,976		53,774		13,483		1940, 2006-2009		12/21/95		35 years
SHOPPERS WORLD (Virginia)	VA		5,551		10,211		18,863		1,147			10,225		19,996		30,221		2,519		1975-2001		05/30/07		35 years
THE SHOPPES AT NOTTINGHAM SQUARE (Maryland)	MD		—		27,029		12,849		(12,308	)		14,692		12,878		27,570		1,726		2005-2006		03/08/07		35 years
THIRD STREET PROMENADE (California) (9)	CA		—		22,645		12,709		41,193			25,125		51,422		76,547		22,083		1888-2000		1996- 2000		35 years
TOWER (Virginia)	VA		—		7,170		10,518		2,719			7,280		13,127		20,407		5,219		1953-1960		08/24/98		35 years
TROY (New Jersey)	NJ		—		3,126		5,193		16,992			4,028		21,283		25,311		15,840		1966		07/23/80		22 years
TYSON'S STATION (Virginia)	VA		5,713		388		453		3,082			475		3,448		3,923		3,025		1954		01/17/78		17 years
WESTGATE MALL (California)	CA		—		6,319		107,284		3,584			6,319		110,868		117,187		18,903		1960-1966		03/31/04		35 years
WHITE MARSH PLAZA (Maryland)	MD		9,706		3,478		21,413		131			3,478		21,544		25,022		3,052		1987		03/08/07		35 years
WHITE MARSH OTHER (Maryland)	MD		—		37,812		1,843		(10,772	)		27,009		1,874		28,883		278		1985		03/08/07		35 years
WILDWOOD (Maryland)	MD		24,827		9,111		1,061		7,836			9,111		8,897		18,008		7,584		1958		05/05/69		33 1/3 years
WILLOW GROVE (Pennsylvania)	PA		—		1,499		6,643		19,761			1,499		26,404		27,903		19,079		1953		11/20/84		35 years
SHOPS AT WILLOW LAWN (Virginia)	VA		—		3,192		7,723		66,786			7,790		69,911		77,701		42,496		1957		12/05/83		35 years
WYNNEWOOD (Pennsylvania)	PA		28,785		8,055		13,759		15,519			8,055		29,278		37,333		14,913		1948		10/29/96		35 years
MISCELLANEOUS INVESTMENTS			—		6,176		12,135		—			6,176		12,135		18,311		300

TOTALS		$	589,441	$	789,331	$	1,226,058	$	1,880,553		$	786,332	$	3,109,610	$	3,895,942	$	1,035,204

Three Years Ended December 31, 2010

Reconciliation of Total Cost

(In thousands)


Balance, December 31, 2007	$	3,452,847
Additions during period
Acquisitions		122,662
Improvements		144,192
Deduction during period—disposition and retirements of property		(46,016	)

Balance, December 31, 2008		3,673,685
Additions during period
Acquisitions		34,485
Improvements		93,304
Deduction during period—disposition and retirements of property		(42,240	)

Balance, December 31, 2009		3,759,234
Additions during period
Acquisitions		34,855
Consolidation of VIE		18,311
Improvements		97,129
Deduction during period—disposition and retirements of property		(13,587	)

Balance, December 31, 2010	$	3,895,942

(A)	For Federal tax purposes, the aggregate cost basis is approximately $3.4 billion as of December 31, 2010.

Three Years Ended December 31, 2010

Reconciliation of Accumulated

Depreciation and Amortization

(In thousands)


Balance, December 31, 2007	$	756,703
Additions during period—depreciation and amortization expense		101,321
Deductions during period—disposition and retirements of property		(11,766	)

Balance, December 31, 2008		846,258
Additions during period—depreciation and amortization expense		103,698
Deductions during period—disposition and retirements of property		(11,869	)

Balance, December 31, 2009		938,087
Additions during period—depreciation and amortization expense		108,261
Deductions during period—disposition and retirements of property		(11,144	)

Balance, December 31, 2010	$	1,035,204

MORTGAGE LOANS ON REAL ESTATE

12 Months Ended

Dec. 31, 2010

MORTGAGE LOANS ON REAL ESTATE

MORTGAGE LOANS ON REAL ESTATE

FEDERAL REALTY INVESTMENT TRUST

SCHEDULE IV

MORTGAGE LOANS ON REAL ESTATE

Year Ended December 31, 2010

(Dollars in thousands)


Column A	Column B	Column C	Column D	Column E			Column F			Column G			Column H
Description of Lien	Interest Rate	Maturity Date	Periodic Payment Terms	Prior Liens			Face Amount of Mortgages			Carrying Amount of Mortgages(1)			Principal Amount of Loans Subject to delinquent Principal or Interest
Mortgage on retail buildings in Philadelphia, PA	8% or 10% based on timing of draws, plus participation	May 2021	Interest only monthly; balloon payment due at maturity	$	—		$	20,113		$	20,113	(2)	$	—

Mortgage on retail buildings in Philadelphia, PA	10% plus participation	May 2021	Interest only monthly; balloon payment due at maturity		—			9,250			9,250			—

Second Mortgage on hotel in San Jose, CA	9%	August 2016	Principal and interest; balloon payment due at maturity(3)		36,000	(4)		15,030			11,818			—

Mortgage on restaurant in Rockville, MD	9%	December 2014	Interest only monthly through January 31, 2011; balloon payment due at maturity(5)		—			3,632			3,632			—

				$	36,000		$	48,025	(6)	$	44,813	(6)	$	—

(1)	For Federal tax purposes, the aggregate tax basis is approximately $48.0 million as of December 31, 2010.

(2)	This mortgage is available for up to $25.0 million.

(3)	This note was amended on August 4, 2006. The amended note decreased the interest from 14% to 9% per annum, and requires monthly payments of principal and interest based on 15-year amortization schedule.

(4)	We do not hold the first mortgage loan on this property. Accordingly, the amount of the prior lien at December 31, 2010 is estimated.

(5)	Beginning February 1, 2011, the note requires monthly payments of principal and interest based on a 30-year amortization schedule. The borrower has one, three-year extension option with an interest rate of 12% which increases 1% in each subsequent year of the extension term.

(6)

In 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 December 31, 2010, had an outstanding contractual 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 December 31, 2010. All of these loans are currently in default and foreclosure proceedings have been filed. As more fully described in Note 3 to the Consolidated Financial Statements, effective March 30, 2010, 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 of approximately $18.3 million is included in "real estate" in the consolidated balance sheet as of December 31, 2010.

Three Years Ended December 31, 2010

Reconciliation of Carrying Amount

(In thousands)


Balance, December 31, 2007	$	40,638
Additions during period:
Issuance of loans		5,612
Loan fee		(219	)
Deductions during period:
Collection and satisfaction of loans		(719	)
Amortization of discount/loan fee		468

Balance, December 31, 2008		45,780
Additions during period:
Issuance of loans		2,759
Loan fee		(15	)
Deductions during period:
Collection and satisfaction of loans		(728	)
Amortization of discount /loan fee		540

Balance, December 31, 2009		48,336
Additions during period:
Issuance of loans		14,787
Deductions during period:
Collection and satisfaction of loans		(464	)
Amortization of discount		465
Consolidation of VIE		(18,311	)

Balance, December 31, 2010	$	44,813

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2010	Dec. 31, 2009
Statement Of Financial Position
Operating, consolidated variable interest entities	$ 97,157	$ 68,643
Accumulated depreciation and amortization, consolidated variable interest entities	4,431	3,053
Debt issuance costs, accumulated amortization	9,075	8,291
Mortgages payable, consolidated variable interest entities	$ 22,785	$ 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	61,526,418	61,242,050
Common shares of beneficial interest, shares outstanding	61,526,418	61,242,050

MORTGAGE NOTES RECEIVABLE	12 Months Ended
MORTGAGE NOTES RECEIVABLE	Dec. 31, 2010
MORTGAGE NOTES RECEIVABLE
MORTGAGE NOTES RECEIVABLE	NOTE 3. MORTGAGE NOTES RECEIVABLE At December 31, 2010 and 2009, we had four mortgage notes receivable with an aggregate carrying amount of $44.8 million and $48.3 million, respectively. Approximately $33.0 million and $29.1 million of the loans are secured by first mortgages on retail buildings at December 31, 2010 and 2009, respectively. One of the loans, which is secured by a second mortgage on a hotel at our Santana Row property, was considered impaired when it was amended in August 2006. At December 31, 2010 and 2009, the loan has an outstanding face amount of $15.0 million and $ 15.5 million, respectively, and is carried net of a valuation allowance of $3.2 million and $3.7 million, respectively. At December 31, 2010 and 2009, our mortgages (excluding mortgages in default at the balance sheet date as further discussed below) had a we ighted average interest rate of 9.9%. Under the terms of certain of these mortgages, we receive additional interest based upon the gross income of the secured properties and upon sale, share in the appreciation of the properties. 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 December 31, 2010, had an outstanding contractual 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 December 31, 2010. All of these loans are currently in default and foreclosure proceedings have been filed. We reached an agreement with the borrower whereby the borrower would repay the loans by March 29, 2011, and are currently in negotiations with the borrower to modify the loans. If the loans are not modified or 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. If we acquire the properties through the exercise of the deed-in-lieu of foreclosure, 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 give 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 i n the property of approximately $18.3 million is included in "real estate" in the consolidated balance sheet as of December 31, 2010. However, given our position as lender, creditors of this VIE do not have recourse to our general credit.

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Dec. 31, 2010
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	NOTE 9. SHAREHOLDERS' EQUITY We have a Dividend Reinvestment Plan (the "Plan"), whereby shareholders may use their dividends and optional cash payments to purchase shares. In 2010, 2009 and 2008, 34,401 shares, 50,888 shares and 39,343 shares, respectively, were issued under the Plan. As of December 31, 2010, 2009, and 2008, we had 399,896 shares of 5.417% Series 1 Cumulative Convertible Preferred Shares ("Series 1 Preferred Shares") outstanding that have a liquidation preference of $25 per share and par value $0.01 per share. The Series 1 Preferred Shares accrue dividends at a rate of 5.417% per year and are convertible at any time by the holders to our common shares at a conversion rate of $104.69 per share. The Series 1 Preferred Shares are also convertible under certain circumstances at our election. The holders of the Series 1 Preferred Shares have no voting rights. On August 14, 2009, we issued 2.0 million common shares at $57.50 per share, for cash proceeds of approximately $110.0 million net of expenses of the offering.

SAVINGS AND RETIREMENT PLANS	12 Months Ended
SAVINGS AND RETIREMENT PLANS	Dec. 31, 2010
SAVINGS AND RETIREMENT PLANS
SAVINGS AND RETIREMENT PLANS	NOTE 15. SAVINGS AND RETIREMENT PLANS We have a savings and retirement plan in accordance with the provisions of Section 401(k) of the Code. Generally, employees can elect, at their discretion, to contribute a portion of their compensation up to a maximum of $16,500, $16,500 and $15,500 for 2010, 2009 and 2008, respectively. Under the plan, we contribute 50% of each employee's elective deferrals up to 5% of eligible earnings. In addition, we may make discretionary contributions within the limits of deductibility set forth by the Code. Our employees are immediately eligible to become plan participants. Employees are eligible to receive matching contributions immediately on their participation; however, these matching payments will not vest until their first anniversary of employment. Our expense for the years ended December 31, 2010, 2009 and 2008 was approximately $596,000, $282,000 and $397,000, respecti vely. A non-qualified deferred compensation plan for our officers and certain other employees was established in 1994 that allows the participants to defer a portion of their income. As of December 31, 2010 and 2009, we are liable to participants for approximately $5.7 million and $4.8 million, respectively, under this plan. Although this is an unfunded plan, we have purchased certain investments to match this obligation. Our obligation under this plan and the related investments are both included in the accompanying financial statements.

SUBSEQUENT EVENT	12 Months Ended
SUBSEQUENT EVENT	Dec. 31, 2010
SUBSEQUENT EVENT
SUBSEQUENT EVENT	NOTE 18. SUBSEQUENT EVENT On January 19, 2011, we acquired the fee interest in Tower Shops located in Davie, Florida for a net purchase price of approximately $66.1 million which includes the assumption of a mortgage loan of approximately $41.0 million. The mortgage loan bears interest at 6.52%, is interest only until July 2011 at which time it converts to a 30-year amortization schedule and matures in July 2015. The loan is pre-payable after June 2011 and we expect to repay the loan during 2011 which will include a 3% prepayment premium on the outstanding loan balance. The property contains approximately 372,000 square feet of gross leasable area and is shadow-anchored by Home Depot and Costco. The purchase price allocation will be finalized after certain valuation studies are complete.