View:
Download DOC
Download PDF
Download XLS
FRT-06.30.2014-8K DOC


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 30, 2014
 
Federal Realty Investment Trust
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
Maryland
 
1-07533
 
52-0782497
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
1626 East Jefferson Street, Rockville, Maryland
 
20852-4041
(Address of principal executive offices)
 
(Zip Code)
Registrant's telephone number including area code: 301/998-8100
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¬
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¬
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¬
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¬
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02. Results of Operations and Financial Condition.

The following information is being furnished under Item 2.02-Results of Operations and Financial Condition. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Exchange Act, regardless of any general incorporation language in such filing.

On August 7, 2014, Federal Realty Investment Trust issued supplemental data pertaining to its operations, as well as a press release, to report its financial results for the quarter ended June 30, 2014. The supplemental data and press release are furnished as Exhibit 99.1 hereto.

Item 9.01.     Financial Statements and Exhibits.

(c)    Exhibits

99.1    Supplemental information at June 30, 2014 (including press release dated August 7, 2014)

    

    
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 
 
 
FEDERAL REALTY INVESTMENT TRUST
 
 
 
 
Date:
August 7, 2014
 
 /s/ James M. Taylor, Jr.
 
 
 
 
 
 
 
James M. Taylor, Jr.
 
 
 
Executive Vice President-
 
 
 
Chief Financial Officer and Treasurer

EXHIBIT INDEX


Exh No.    Exhibit                                    
99.1        Supplemental Information at June 30, 2014    




FRT-06.30.2014-EX 99.1


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
June 30, 2014
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Second Quarter 2014 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Summarized Income Statements
 
 
Summarized Balance Sheets
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
Market Data
 
 
Components of Rental Income
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Capital Lease Obligations
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Redevelopment Opportunities
 
 
 
 
5
Pike & Rose and Assembly Row
 
 
 
 
6
Future Redevelopment Opportunities
 
 
 
 
7
2014 Significant Acquisition & Disposition
 
 
 
 
8
Real Estate Status Report
 
 
 
 
9
Retail Leasing Summary
 
 
 
 
10
Lease Expirations
 
 
 
 
11
Portfolio Leased Statistics
 
 
 
 
12
Summary of Top 25 Tenants
 
 
 
 
13
Reconciliation of Net Income to FFO Guidance
 
 
 
 
14
30% Owned Joint Venture Disclosure
 
 
 
Summarized Income Statements and Balance Sheets
 
 
Summary of Outstanding Debt and Debt Maturities
 
 
Real Estate Status Report
 
 
 
 
15
Glossary of Terms
 
 
 
 
 
 
 
 
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100

1



Safe Harbor Language
Certain matters discussed within this Supplemental Information may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2014, and include the following:

•
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
•
risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
•
risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
•
risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
•
risks that our growth will be limited if we cannot obtain additional capital;
•
risks associated with general economic conditions, including local economic conditions in our geographic markets;
•
risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and
•
risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Supplemental Information. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2014.



2



FOR IMMEDIATE RELEASE
Media Inquiries
Investor Inquiries
Andrea Simpson
Kristina Lennox
Director, Marketing
Investor Relations Manager
617/684-1511
301/998-8265
asimpson@federalrealty.com
klennox@federalrealty.com

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2014 OPERATING RESULTS

ROCKVILLE, Md. (August 7, 2014) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its second quarter ended June 30, 2014.

Financial Results
In the second quarter 2014, Federal Realty generated funds from operations available for common shareholders (FFO) of $83.6 million, or $1.23 per diluted share. This compares to FFO of $71.1 million, or $1.08 per diluted share, in second quarter 2013. For the six months ended June 30, 2014, Federal Realty reported FFO of $165.4 million, or $2.43 per diluted share, compared to $145.2 million, or $2.22 per diluted share for the same six month period in 2013. Excluding the debt prepayment charge in the second quarter 2013, FFO per diluted share was $1.14 in second quarter 2013 and $2.27 for the six months ended June 30, 2013.

Net income available for common shareholders was $43.4 million and earnings per diluted share was $0.64 for the quarter ended June 30, 2014 versus $37.4 million and $0.57, respectively, for second quarter 2013. Year-to-date, Federal Realty reported net income available for common shareholders of $82.0 million and earnings per diluted share of $1.22. This compares to net income available for common shareholders of $71.9 million and earnings per diluted share of $1.10 for the six months ended June 30, 2013.
    
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.

Portfolio Results
In second quarter 2014, same-center property operating income increased 4.2% including redevelopment and expansion properties. When redevelopment and expansion properties are excluded from same-center, property operating income for second quarter 2014 increased 4.0% compared to second quarter 2013.


3



FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2014 OPERATING RESULTS
August 7, 2014
Page 2

The overall portfolio was 95.3% leased as of June 30, 2014, compared to 95.6% on March 31, 2014 and 95.3% on June 30, 2013. Federal Realty’s same-center portfolio was 95.5% leased as of June 30, 2014, compared to 95.5% on March 31, 2014 and 95.4% on June 30, 2013.

During second quarter 2014, the Trust signed 128 leases for 622,916 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 536,819 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 16%. The weighted average contractual rent on this comparable space for the first year of the new lease is $34.93 per square foot compared to the weighted average contractual rent of $30.13 per square foot for the last year of the prior lease. The previous weighted average contractual rent is calculated by including both the minimum rent and any percentage rent actually paid during the last year of the lease term for the re-leased space. On a GAAP basis (i.e., including the impact of straight-line rents), rent increases per square foot for comparable retail space averaged 30% for second quarter 2014.

Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees increased the dividend rate on its common shares, declaring a regular quarterly cash dividend of $0.87 per share, resulting in an indicated annual rate of $3.48 per share. This $0.09 per share increase in the regular quarterly dividend is the largest increase in the Trust's history. The regular common dividend will be payable on October 15, 2014 to common shareholders of record on September 22, 2014. This increase represents the 47th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector, and amongst the longest such records for publicly traded companies in the US.

“Our team continued to deliver record bottom line results while also driving future value creation with the successful openings of the initial phases of Pike & Rose and Assembly Row, the delivery and stabilization of Misora at Santana Row and the ongoing execution of over $175 million of tactical redevelopment of our core,” commented Donald C. Wood, president and chief executive officer of Federal Realty. “The continued success and growth in our business supports our decision to raise our common dividend this year by 12%, marking it as the 47th consecutive year of increased dividends, the only REIT to have such record."

Summary of Other Quarterly Activities and Recent Developments
•
June 12, 2014 - Federal Realty was presented with three prestigious honors by the Alliance for Workplace Excellence (AWE). The Trust received the 2014 Workplace Excellence Seal of Approval Award, 2014 Health & Wellness Seal of Approval Award and 2014 EcoLeadership Award. 2014 marks the seventh consecutive year Federal Realty has won Workplace Excellence and Health & Wellness awards, and the fourth year it has won the EcoLeadership award.


4





FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2014 OPERATING RESULTS
August 7, 2014
Page 3

•
July 7, 2014 - Federal Realty announced Bank of America Merrill Lynch as the lead office tenant at Pike & Rose, the new transit-oriented, pedestrian-friendly, mixed-use neighborhood at the top of the White Flint District of North Bethesda.  Bank of America Merrill Lynch will occupy 40,000 square feet, half of the 80,000 square foot LEED certified, Class "A" office building at 11810 Grand Park Avenue in Phase 1 of Pike & Rose.
•
July 24, 2014 - Federal Realty’s partnership with a discretionary fund created and advised by ING Clarion Partners closed on the sale of Pleasant Shops in South Weymouth, Massachusetts for a sales price of $34.3 million.

Guidance
We have updated our 2014 guidance for FFO per diluted share to a range of $4.90 to $4.94. Our earnings per share guidance was updated to $2.55 to $2.61.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its second quarter 2014 earnings conference call, which is scheduled for August 8, 2014, at 11 a.m. Eastern Daylight Time. To participate, please call (877) 445-3230 five to ten minutes prior to the call start time and use the passcode 65481268 (required). Federal Realty will also provide an online webcast on the Company’s web site, www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available through August 15, 2014, by dialing (855) 859-2056 and using the passcode 65481268.

About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 20 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.3% leased to national, regional, and local retailers as of June 30, 2014, with no single tenant accounting for more than approximately 3.2% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 47 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.


5




FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2014 OPERATING RESULTS
August 7, 2014
Page 4

Safe Harbor Language
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2014, and include the following:

•
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
•
risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
•
risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
•
risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
•
risks that our growth will be limited if we cannot obtain additional capital;
•
risks associated with general economic conditions, including local economic conditions in our geographic markets;
•
risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and
•
risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.


Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 11, 2014.


6



Federal Realty Investment Trust
 
 
 
 
 
 
 
Summarized Income Statements
 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
Three Months Ended

Six Months Ended
 
June 30,

June 30,
 
2014

2013

2014
 
2013
 
(in thousands, except per share data)
 
(unaudited)
Revenue
 
 
 
 
 
 
 
Rental income
$
162,383

 
$
153,212

 
$
328,576

 
$
305,828

Other property income
4,325

 
2,913

 
7,725

 
6,181

Mortgage interest income
1,239

 
1,263

 
2,474

 
2,528

Total revenue
167,947

 
157,388

 
338,775

 
314,537

Expenses
 
 
 
 
 
 
 
Rental expenses
31,405

 
28,209

 
68,535

 
57,710

Real estate taxes
19,164

 
17,632

 
37,864

 
35,204

General and administrative
8,124

 
8,302

 
15,828

 
15,359

Depreciation and amortization
40,893

 
39,757

 
84,743

 
80,274

Total operating expenses
99,586

 
93,900

 
206,970

 
188,547

Operating income
68,361

 
63,488

 
131,805

 
125,990

Other interest income
18

 
65

 
43

 
95

Interest expense
(23,213
)
 
(27,147
)
 
(46,350
)
 
(54,552
)
Early extinguishment of debt
—

 
(3,399
)
 
—

 
(3,399
)
Income from real estate partnership
250

 
372

 
463

 
684

Income from continuing operations
45,416

 
33,379

 
85,961

 
68,818

Discontinued operations
 
 
 
 
 
 
 
Discontinued operations - income
—

 
424

 
—

 
827

Income before gain on sale of real estate
45,416

 
33,803

 
85,961

 
69,645

Gain on sale of real estate
—

 
4,994

 
—

 
4,994

Net income
45,416

 
38,797

 
85,961

 
74,639

   Net income attributable to noncontrolling interests
(1,871
)
 
(1,258
)
 
(3,663
)
 
(2,512
)
Net income attributable to the Trust
43,545

 
37,539

 
82,298

 
72,127

Dividends on preferred shares
(135
)
 
(135
)
 
(271
)
 
(271
)
Net income available for common shareholders
$
43,410

 
$
37,404

 
$
82,027

 
$
71,856

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Continuing operations
$
0.64

 
$
0.49

 
$
1.22

 
$
1.01

Discontinued operations
—

 
—

 
—

 
0.01

Gain on sale of real estate
—

 
0.08

 
—

 
0.08

 
$
0.64

 
$
0.57

 
$
1.22

 
$
1.10

 
 
 
 
 
 
 
 
Weighted average number of common shares, basic
67,110

 
65,149

 
66,858

 
64,922

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Continuing operations
$
0.64

 
$
0.49

 
$
1.22

 
$
1.01

Discontinued operations
—

 
—

 
—

 
0.01

Gain on sale of real estate
—

 
0.08

 
—

 
0.08

 
$
0.64

 
$
0.57

 
$
1.22

 
$
1.10

 
 
 
 
 
 
 
 
Weighted average number of common shares, diluted
67,277

 
65,311

 
67,021

 
65,080



7






Federal Realty Investment Trust
Summarized Balance Sheets
June 30, 2014
 
June 30,
 
December 31,
 
2014
 
2013
 
(in thousands)
 
(unaudited)
 
 
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $281,311 and $265,138 of consolidated variable interest entities, respectively)
$
5,004,993

 
$
4,618,258

Construction-in-progress
472,570

 
531,205

 
5,477,563

 
5,149,463

Less accumulated depreciation and amortization (including $22,840 and $19,086 of consolidated variable interest entities, respectively)
(1,417,376
)
 
(1,350,471
)
Net real estate
4,060,187

 
3,798,992

Cash and cash equivalents
41,312

 
88,927

Accounts and notes receivable, net
97,741

 
84,838

Mortgage notes receivable, net
54,932

 
55,155

Investment in real estate partnership
35,511

 
32,264

Prepaid expenses and other assets
141,802

 
159,118

TOTAL ASSETS
$
4,431,485

 
$
4,219,294

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Mortgages and capital lease obligations (including $188,739 and $202,782 of consolidated variable interest, entities respectively)
705,704

 
660,127

Notes payable
290,765

 
300,822

Senior notes and debentures
1,361,282

 
1,360,913

Accounts payable and other liabilities
344,990

 
321,710

Total liabilities
2,702,741

 
2,643,572

Redeemable noncontrolling interests
110,688

 
104,425

Shareholders' equity
 
 
 
Preferred shares
9,997

 
9,997

Common shares and other shareholders' equity
1,519,764

 
1,438,163

Total shareholders' equity of the Trust
1,529,761

 
1,448,160

    Noncontrolling interests
88,295

 
23,137

Total shareholders' equity
1,618,056

 
1,471,297

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
4,431,485

 
$
4,219,294




8



Federal Realty Investment Trust
 
 
 
 
 
 
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
 
 
 
 
Net income
 
$
45,416

 
$
38,797

 
$
85,961

 
$
74,639

Net income attributable to noncontrolling interests
 
(1,871
)
 
(1,258
)
 
(3,663
)
 
(2,512
)
Gain on sale of real estate
 
—

 
(4,994
)
 
—

 
(4,994
)
Depreciation and amortization of real estate assets
 
36,499

 
35,834

 
76,048

 
72,396

Amortization of initial direct costs of leases
 
2,947

 
2,639

 
5,778

 
5,407

Depreciation of joint venture real estate assets
 
441

 
370

 
850

 
746

Funds from operations
 
83,432

 
71,388

 
164,974

 
145,682

Dividends on preferred shares
 
(135
)
 
(135
)
 
(271
)
 
(271
)
Income attributable to operating partnership units
 
715

 
215

 
1,431

 
442

Income attributable to unvested shares
 
(377
)
 
(320
)
 
(752
)
 
(656
)
FFO
 
$
83,635

 
$
71,148

 
$
165,382

 
$
145,197

Early extinguishment of debt, net of allocation to unvested shares
 
—

 
3,383

 
—

 
3,383

       FFO excluding early extinguishment of debt
 
$
83,635

 
$
74,531

 
$
165,382

 
$
148,580

Weighted average number of common shares, diluted
 
68,194

 
65,605

 
67,939

 
65,383

 
 
 
 
 
 
 
 
 
FFO per diluted share
 
$
1.23

 
$
1.08

 
$
2.43

 
$
2.22

 
 
 
 
 
 
 
 
 
FFO excluding early extinguishment of debt, per diluted share
 
$
1.23

 
$
1.14

 
$
2.43

 
$
2.27

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
78,908

 
$
79,168

 
$
152,288

 
$
123,584

Tenant improvements and incentives
 
9,004

 
6,789

 
14,223

 
11,872

Total non-maintenance capital expenditures
 
87,912

 
85,957

 
166,511

 
135,456

Maintenance capital expenditures
 
3,629

 
5,113

 
5,155

 
5,948

Total capital expenditures
 
$
91,541

 
$
91,070

 
$
171,666

 
$
141,404

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
52,777

 
$
47,948

 
$
105,238

 
$
95,455

 
 
 
 
 
 
 
 
 
Dividend payout ratio as a percentage of FFO
 
63
%
 
67
%
 
64
%
 
66
%

Notes:
1)    See Glossary of Terms.

9



Federal Realty Investment Trust
Market Data
June 30, 2014
 
 
 
June 30,
 
 
 
2014
 
2013
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding (1)
 
67,712

 
65,687

 
Market price per common share
 
$
120.92

 
$
103.68

 
Common equity market capitalization
 
$
8,187,735

 
$
6,810,428

 
 
 
 
 
 
 
Series 1 preferred shares outstanding (2)
 
400

 
400

 
Liquidation price per Series 1 preferred share
 
$
25.00

 
$
25.00

 
Series 1 preferred equity market capitalization
 
$
10,000

 
$
10,000

 
 
 
 
 
 
 
Equity market capitalization
 
8,197,735

 
6,820,428

 
 
 
 
 
 
 
Total debt (3)
 
2,357,751

 
2,309,978

 
 
 
 
 
 
 
Total market capitalization
 
$
10,555,486

 
$
9,130,406

 
 
 
 
 
 
 
Total debt to market capitalization at the current market price
 
22
%
 
25
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations (4)
 
100
%
 
100
%
 
Variable rate debt
 
<1%

 
<1%

 
 
 
100
%
 
100
%
Notes:
1)
Amounts do not include 917,255 and 286,032 Operating Partnership Units outstanding at June 30, 2014 and 2013, respectively.
2)
These shares, issued March 8, 2007, are unregistered.
3)
Total debt includes capital leases, mortgages payable, notes payable, senior notes and debentures, net of premiums and discounts, from our consolidated balance sheet. It does not include $13.5 million and $17.1 million at June 30, 2014 and 2013 respectively, which is the Trust's 30% share of the total mortgages payable of $44.9 million and $57.0 million at June 30, 2014 and 2013, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners.
4)
Fixed rate debt includes our $275.0 million term loan as the rate is effectively fixed by two interest rate swap agreements.



10



Federal Realty Investment Trust
 
 
 
 
 
 
 
Components of Rental Income
 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Minimum rents
 
 
 
 
 
 
 
Retail and commercial (1)
$
116,840

 
$
112,669

 
$
232,905

 
$
222,700

Residential
8,532

 
7,190

 
16,354

 
14,329

Cost reimbursements
32,158

 
28,658

 
69,617

 
59,486

Percentage rent
2,045

 
1,963

 
4,168

 
4,124

Other
2,808

 
2,732

 
5,532

 
5,189

Total rental income
$
162,383

 
$
153,212

 
$
328,576

 
$
305,828


Notes:
1)
Minimum rents include $1.1 million and $1.8 million for the three months ended June 30, 2014 and 2013, and $2.2 million and $2.6 million for the six months ended June 30, 2014 and 2013, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.7 million and $0.8 million for the three months ended June 30, 2014 and 2013, and $1.2 million and $1.5 million for the six months ended June 30, 2014 and 2013, respectively, to recognize income from the amortization of in-place leases.



11



Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
June 30, 2014
 
 
As of June 30, 2014
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (5)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
THE AVENUE at White Marsh
1/1/2015
 
5.46%
 
53,418

 
 
 
 
 
 
Barracks Road
11/1/2015
 
7.95%
 
36,538

 
 
 
 
 
 
Hauppauge
11/1/2015
 
7.95%
 
13,774

 
 
 
 
 
 
Lawrence Park
11/1/2015
 
7.95%
 
25,898

 
 
 
 
 
 
Wildwood
11/1/2015
 
7.95%
 
22,764

 
 
 
 
 
 
Wynnewood
11/1/2015
 
7.95%
 
26,393

 
 
 
 
 
 
Brick Plaza
11/1/2015
 
7.42%
 
26,842

 
 
 
 
 
 
East Bay Bridge
3/1/2016
 
5.13%
 
61,474

 
 
 
 
 
 
Plaza El Segundo
8/5/2017
 
6.33%
 
175,000

 
 
 
 
 
 
The Grove at Shrewsbury (East)
10/1/2017
 
5.82%
 
44,980

 
 
 
 
 
 
The Grove at Shrewsbury (West)
3/1/2018
 
6.38%
 
11,346

 
 
 
 
 
 
Rollingwood Apartments
5/1/2019
 
5.54%
 
22,326

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
5,031

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
76,612

 
 
 
 
 
 
Brook 35
7/1/2029
 
4.65%
 
11,500

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
7,172

 
 
 
 
 
 
Subtotal
 
 
 
 
621,068

 
 
 
 
 
 
Net unamortized premium
 
 
 
 
12,977

 
 
 
 
 
 
Total mortgages payable
 
 
 
 
634,045

 
 
 
5.36%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Term loan (2)
11/21/2018
 
LIBOR + 1.30%
 
275,000

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
6,365

 
 
 
 
 
 
Unsecured variable rate
 
 
 
 
 
 
 
 
 
 
 
Escondido (Municipal bonds) (3)
10/1/2016
 
0.09%
 
9,400

 
 
 
 
 
 
Revolving credit facility (4)
4/21/2017
 
LIBOR + 0.90%
 
—

 
 
 
 
 
 
Total notes payable
 
 
 
 
290,765

 
 
 
3.30%
(6)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
5.65% notes
6/1/2016
 
5.65%
 
125,000

 
 
 
 
 
 
6.20% notes
1/15/2017
 
6.20%
 
200,000

 
 
 
 
 
 
5.90% notes
4/1/2020
 
5.90%
 
150,000

 
 
 
 
 
 
3.00% notes
8/1/2022
 
3.00%
 
250,000

 
 
 
 
 
 
2.75% notes
6/1/2023
 
2.75%
 
275,000

 
 
 
 
 
 
3.95% notes
1/15/2024
 
3.95%
 
300,000

 
 
 
 
 
 
7.48% debentures
8/15/2026
 
7.48%
 
29,200

 
 
 
 
 
 
6.82% medium term notes
8/1/2027
 
6.82%
 
40,000

 
 
 
 
 
 
Subtotal
 
 
 
 
1,369,200

 
 
 
 
 
 
Net unamortized discount
 
 
 
(7,918
)
 
 
 
 
 
 
Total senior notes and debentures
 
 
 
1,361,282

 
 
 
4.55%
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,659

 
 
 
8.04%
 
Total debt and capital lease obligations
 
 
 
 
$
2,357,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and capital lease obligations
 
 
 
$
2,348,351

 
100
%
 
4.73%
 
Total variable rate debt
 
 
 
9,400

 
<1%

 
1.29%
(6)
Total debt and capital lease obligations
 
 
 
$
2,357,751

 
100
%
 
4.72%
(6)

12



 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2014
2013
 
2014
2013
Operational Statistics
 
 
 
 
 
 
 
 
 
Excluding early extinguishment of 5.40% senior notes in 2013:
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (7) (8)
3.78

x
3.50

x
 
3.74

x
3.45

x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (7) (8)
3.78

x
3.34

x
 
3.74

x
3.37

x
Including early extinguishment of 5.40% senior notes in 2013:
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (7)
3.78

x
3.15

x
 
3.74

x
3.27

x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (7)
3.78

x
3.01

x
 
3.74

x
3.19

x

Notes:
1)
Mortgages payable do not include our 30% share ($13.5 million) of the $44.9 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.
2)
We entered into two interest rate swap agreements to fix the variable rate portion of our $275.0 million term loan at 1.72% through November 1, 2018. The swap agreements effectively fix the rate on the term loan at 3.02% and thus, the loan is included in fixed rate debt.
3)
The bonds require monthly interest only payments through maturity. The bonds bear interest at a variable rate determined weekly, which would enable the bonds to be remarketed at 100% of their principal amount. The property is not encumbered by a lien.
4)
The maximum amount drawn under our revolving credit facility during the six months ended June 30, 2014 was $19.0 million, and the weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.05%.
5)
The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note 6.
6)
The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had no balance on June 30, 2014. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 3.02% as the result of the interest rate swap agreements discussed in Note 2. The term loan is included in fixed rate debt.
7)
Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs and the portion of rent expense representing an interest factor. EBITDA includes a $5.0 million gain on sale for the three and six months ended June 30, 2013. Adjusted EBITDA is reconciled to net income in the Glossary of Terms.
8)
Fixed charges exclude the $3.4 million of early extinguishment of debt charge for the three and six months ended June 30, 2013, related to the make-whole premium paid as part of the early redemption of our 5.40% senior notes and the write-off of related unamortized debt fees.



13



Federal Realty Investment Trust
Summary of Debt Maturities
June 30, 2014
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (3)
 
 
(in thousands)
 
 
 
 
 
 
 
2014
$
5,522

 
$
—

 
$
5,522

 
0.2
%
 
0.2
%
 
—
%
 
2015
9,197

 
198,391

 
207,588

 
8.8
%
 
9.0
%
 
7.3
%
 
2016
4,493

 
194,013

 
198,506

 
8.4
%
 
17.4
%
 
4.5
%
 
2017
4,196

 
416,732

(1)
420,928

 
17.9
%
 
35.3
%
 
5.4
%
(4)
2018
3,366

 
285,502

 
288,868

 
12.3
%
 
47.6
%
 
3.2
%
 
2019
3,172

 
20,160

 
23,332

 
1.0
%
 
48.6
%
 
5.7
%
 
2020
3,176

 
150,000

 
153,176

 
6.5
%
 
55.1
%
 
6.0
%
 
2021
3,099

 
3,625

 
6,724

 
0.3
%
 
55.4
%
 
6.1
%
 
2022
1,226

 
313,618

 
314,844

 
13.4
%
 
68.8
%
 
3.5
%
 
2023
1,283

 
330,010

 
331,293

 
14.1
%
 
82.9
%
 
3.9
%
 
Thereafter
21,210

 
380,701

 
401,911

 
17.1
%
 
100.0
%
 
4.9
%
 
Total
$
59,940

 
$
2,292,752

 
$
2,352,692

(2)
100.0
%
 
 
 
 
 
Notes:
1)
Our $600.0 million unsecured revolving credit facility matures on April 21, 2017 subject to a one-year extension at our option. As of June 30, 2014, there was no balance outstanding on our revolving credit facility.
2)
The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net discount or premium on certain mortgage loans, senior notes and debentures as of June 30, 2014.
3)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
4)
The weighted average rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.



14




Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
The following redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust. (1)
Property
Location
Opportunity
Projected ROI (2)
Projected Cost (1)
Cost to Date
Anticipated Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
 
Santana Row - Lot 11
San Jose, CA
Addition of 6-story building with 225,500 square feet of office space, 1,500 square feet of retail space, and 670 parking spaces
7.5%-8.5%

$110-$120


$7

2017
The Point
El Segundo, CA
Addition of 90,000 square feet of retail, and 25,000 square feet of office space
8
%

$80


$42

2015
Santana Row - Lot 8B
San Jose, CA
Addition of a 5-story rental apartment building, which includes 212 residential units and associated parking
8
%

$75


$75

2014
Westgate Center
San Jose, CA
Façade and interior mall renovation, addition of food court and pad site
9
%

$20


$17

2014/2015
Tower Shops
Davie, FL
Addition of 50,000 square foot pad building
12
%

$14


$0

2016
Shops at Willow Lawn
Richmond, VA
Demo interior mall, relocate mall tenants, construct new exterior GLA, and gas station
10
%

$14


$10

2014/2015
Mercer Mall
Lawrenceville, NJ
Addition of 27,000 square feet of space including new in-line space, addition of bank pad and reconfiguration of existing pad site and anchor box
12
%

$12


$3

2015
Hollywood Blvd - Petersen Building
Hollywood, CA
Redevelop/retenant building including conversion of 2nd floor parking to retail space
17
%

$9


$4

2015
Quince Orchard
Gaithersburg, MD
Property repositioning through demo of non-functional small shop space, creation of new anchor box, rightsizing of national office products tenant, and creation of new visible small shop space
23
%

$6


$1

2015
East Bay Bridge
Emeryville, CA
Reconfigure two existing spaces consisting of 48,000 square feet to accommodate two new tenants, add two new restaurant tenants, and courtyard renovations
10
%

$4


$0

2015
Ellisburg
Cherry Hill, NJ
Property repositioning through retenanting, including new grocer and façade renovation
18
%

$4


$4

2014
Barracks Road
Charlottesville, VA
11,800 square foot multi-tenant pad building
13
%

$4


$4

2014
Flourtown
Flourtown, PA
New 75,000 square foot grocer and new 38,000 square foot movie theater
15
%

$3


$1

2015
Pentagon Row
Arlington, VA
Ice rink expansion and 1,500 square feet of new retail space
9
%

$2


$2

2014
Third Street Promenade
Santa Monica, CA
Building modified to convert second floor space to office to accommodate new first floor retail and second floor office tenants
25
%

$1


$1

2015
Brick
Brick, NJ
New restaurant pad building
18
%

$1


$0

2014
Huntington Square
East Northport, NY
Infrastructure investment to create additional restaurant capacity
10
%

$1


$1

2014
Total Active Redevelopment projects (4)
 
9
%
$360-$370


$172

 

Notes:
(1)
There is no guarantee that the Trust will ultimately complete any or all of these opportunities, that the Projected Return on Investment (ROI) or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected ROI and Projected Cost are management's best estimate based on current information and may change over time.
(2)
Projected ROI for redevelopment projects generally reflects only the deal specific cash, unleveraged incremental Property Operating Income (POI) generated by the redevelopment and is calculated as Incremental POI divided by incremental cost. Incremental POI is the POI generated by the redevelopment after deducting rent being paid or management's estimate of rent to be paid for the redevelopment space and any other space taken out of service to accommodate the redevelopment. Projected ROI for redevelopment projects does NOT include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.
(3)
Stabilization is the year in which 95% occupancy of the redeveloped space is achieved.
(4)
All subtotals and totals reflect cost weighted-average ROIs.


15



Federal Realty Investment Trust
 
 
 
 
 
 
 
Pike & Rose and Assembly Row
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property (1)
Location
Opportunity
Projected ROI (2)
Total Cost (3)
Costs to Date
Anticipated Stabilization
Expected Opening Timeframe
Anchor and other significant tenants
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose - Phase I
Rockville, MD
Ground up mixed use development. Phase I consists of 493 residential units, 151,000 square feet of retail, and 79,000 square feet of office space.
8% - 9%
$245 - $255

$173

2015/2016
•174 unit residential building now open •Grand Opening of Retail in Fall 2014 •Office and 319 unit residential building to deliver in 2015
iPic Theater, Sport & Health, Del Frisco's Grille, M Street Kitchen
Assembly Row - Phase I
Somerville, MA
Ground up mixed use development. Initial phase consists of 450 residential units (by AvalonBay), in addition to 98,000 square feet of office space and approximately 326,000 square feet of retail space (including a restaurant pad site). A new Orange Line T-Stop will also be constructed by Massachusetts Bay Transit Authority, as part of Phase I.
5% - 6%
$190 - $200

$172

2015
•Opened •T Station open Summer 2014
•Office to deliver in 2015
AMC Theatre, LEGOLAND Discovery Center, Saks Fifth Avenue Off 5th, Nike, Brooks Brothers, Legal C Bar, Earl's, Papagayo
 
 
 
 
 
 
 
 
 
 
 
Total Pike & Rose and Assembly Row
7%
$435-$455

$345

 
 
 


Notes:

(1)
Anticipated opening dates, total cost, projected return on investment (ROI), anticipated stabilization, and significant tenants for centers under development are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors.
(2)
Projected ROI for development projects reflects the deal specific cash, unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(3)
Projected costs include an allocation of infrastructure costs for the entire project.
 
 
 



16



Federal Realty Investment Trust
Future Redevelopment Opportunities
June 30, 2014
 
We have identified the following potential opportunities to create future shareholder value. Executing these opportunities could be subject to government approvals, tenant consents, market conditions, etc. Work on many of these new opportunities is in its preliminary stages and may not ultimately come to fruition. This list will change from time to time as we identify hurdles that cannot be overcome in the near term, and focus on those opportunities that are most likely to lead to the creation of shareholder value over time.
 
 
 
 
 
 
 
 
Pad Site Opportunities - Opportunities to add both single tenant and multi-tenant stand alone pad buildings at existing retail properties. Many of these opportunities are "by right" and construction is awaiting appropriate retailer demand.
 
THE AVENUE @ White Marsh
Baltimore, MD
 
Flourtown
Flourtown, PA
 
 
 
Bethesda Row
Bethesda, MD
 
Fresh Meadows
Queens, NY
 
 
 
Dedham Plaza
Dedham, MA
 
Melville Mall
Huntington, NY
 
 
 
Eastgate
Chapel Hill, NC
 
Mercer Mall
Lawrenceville, NJ
 
 
 
Escondido
Escondido, CA
 
Pan Am
Fairfax, VA
 
 
 
Federal Plaza
Rockville, MD
 
Troy
Parsippany, NJ
 
 
 
Finley Square
Downers Grove, IL
 
Wildwood
Bethesda, MD
 
 
 
 
 
 
 
 
 
 
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into additional retail GLA.
 
Assembly Row
Somerville, MA
 
Fresh Meadows
Queens, NY
 
 
 
Barracks Road
Charlottesville, VA
 
Mercer Mall
Lawrenceville, NJ
 
 
 
Bethedsa Row
Bethesda, MD
 
Montrose Crossing
Rockville, MD
 
 
 
Crossroads
Highland Park, IL
 
Third Street Promenade
Santa Monica, CA
 
 
 
Darien
Darien, CT
 
Wildwood
Bethesda, MD
 
 
 
 
 
 
 
 
 
 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Leesburg Plaza
Leesburg, VA
 
 
 
Congressional Plaza
Rockville, MD
 
Village at Shirlington
Arlington, VA
 
 
 
Del Mar Village
Boca Raton, FL
 
Towson land parcel
Towson, MD
 
 
 
 
 
 
 
 
 
 
Longer Term Mixed-Use Opportunities
 
Assembly Row (1)
Somerville, MA
 
Pike & Rose (2)
Rockville, MD
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Santana Row (3)
San Jose, CA
 
 
 
Pike 7
Vienna, VA
 
Santana Row - Winchester Theater site
San Jose, CA
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
Assembly Row
Remaining entitlements after Phase I include approximately 3.0 million square feet of commercial-use buildings, 1,393 residential units, and a 170 room hotel.
(2)
Pike & Rose
Remaining entitlements after Phase I include 1.5 million square feet of commercial-use buildings, and 1,090 residential units.
(3)
Santana Row
Current remaining entitlements for this property include 348 residential units and 69,000 square feet of commercial space for retail and office; we are currently seeking additional entitlements.

17



Federal Realty Investment Trust
 
2014 Significant Acquisition & Disposition
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014 Significant Acquisition
 
 
 
 
 
 
 
Date
Property
City/State
GLA
 
Purchase price
 
Principal Tenants
 
 
 
 
(in square feet)
 
(in millions)
 
 
 
January 1, 2014
The Grove at Shrewsbury/ Brook 35
Shrewsbury, NJ/ Sea Girt, NJ
286,000
 
$
161.0

(1)
Anthropologie / Banana Republic / Brooks Brothers / Coach / Pottery Barn / Williams-Sonoma
 
 
 
 
 
 
 
 
 
(1) Our effective economic interest approximates 84% and was funded by the assumption of our share of $68 million of mortgage debt, 632,000 downREIT operating partnership units, and $13 million of cash.
 
 
 
 
 
 
 
 
 
2014 Disposition - 30% Owned Joint Venture
 
 
 
 
 
 
Date
Property
City/State
GLA
 
Sales price
 
 
 
 
 
 
(in square feet)
 
(in millions)
 
 
 
July 24, 2014
Pleasant Shops
Weymouth, MA
131,000
 
$
34.3

 
 
 


18



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
GLA (2)
% Leased
 Grocery Anchor GLA
 
Grocery Anchor
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
  Washington Metropolitan Area
 
 
 
 
 
 
 
 
 
Bethesda Row

Washington, DC-MD-VA
1993-2006/2008/2010
$
222,103



533,000

99
%
40,000

 
Giant Food
Apple Computer / Barnes & Noble / Equinox / Landmark Theater
Congressional Plaza
(3)
Washington, DC-MD-VA
1965
78,271


328,000

99
%
25,000

 
Fresh Market
Buy Buy Baby / Container Store / Last Call Studio by Neiman Marcus
Courthouse Center

Washington, DC-MD-VA
1997
4,721


35,000

67
%

 
 
 
Falls Plaza/Falls Plaza-East

Washington, DC-MD-VA
1967/1972
12,866


144,000

100
%
51,000

 
Giant Food
CVS / Staples
Federal Plaza

Washington, DC-MD-VA
1989
65,760



248,000

100
%
14,000

 
Trader Joe's
TJ Maxx / Micro Center / Ross Dress For Less
Friendship Center

Washington, DC-MD-VA
2001
36,198


119,000

75
%

 
 
DSW / Maggiano's / Nordstrom Rack
Gaithersburg Square

Washington, DC-MD-VA
1993
25,717


207,000

91
%

 
 
Bed, Bath & Beyond / Ross Dress For Less
Idylwood Plaza

Washington, DC-MD-VA
1994
16,697



73,000

100
%
30,000

 
Whole Foods
 
Laurel

Washington, DC-MD-VA
1986
51,333


388,000

79
%
61,000

 
Giant Food
L.A. Fitness / Marshalls
Leesburg Plaza

Washington, DC-MD-VA
1998
35,364



236,000

95
%
55,000

 
Giant Food
Petsmart / Pier 1 Imports / Office Depot
Loehmann's Plaza

Washington, DC-MD-VA
1983
33,732



260,000

92
%
58,000

 
Giant Food
L.A. Fitness / Stein Mart
Pike & Rose
(4)
Washington, DC-MD-VA
1982/2007
251,194


11,000

100
%

 
 

Montrose Crossing
(3)
Washington, DC-MD-VA
2011/2013
152,806

76,612

364,000

99
%
73,000

 
Giant Food
Marshalls / Sports Authority / Barnes & Noble / A.C. Moore
Mount Vernon/South Valley/7770 Richmond Hwy
(5)
Washington, DC-MD-VA
2003/2006
79,858


572,000

93
%
62,000

 
Shoppers Food Warehouse
Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold's Gym / Staples
Old Keene Mill

Washington, DC-MD-VA
1976
6,603


92,000

100
%
24,000

 
Whole Foods
Walgreens
Pan Am

Washington, DC-MD-VA
1993
28,696



227,000

100
%
65,000

 
Safeway
Micro Center / Michaels
Pentagon Row

Washington, DC-MD-VA
1998/2010
97,361


299,000

97
%
45,000

 
Harris Teeter
L.A. Fitness / Bed, Bath & Beyond / DSW
Pike 7

Washington, DC-MD-VA
1997
36,188


164,000

100
%

 
 
DSW / Staples / TJ Maxx
Quince Orchard

Washington, DC-MD-VA
1993
29,394



263,000

86
%

 

L.A. Fitness / HomeGoods / Staples
Rockville Town Square
(6)
Washington, DC-MD-VA
2006-2007
50,244

4,516

187,000

96
%

 

CVS / Gold's Gym
Rollingwood Apartments

Washington, DC-MD-VA
1971
9,732

22,326

N/A

97
%

 
 
 
Sam's Park & Shop

Washington, DC-MD-VA
1995
12,673


48,000

81
%

 
 
Petco
Tower

Washington, DC-MD-VA
1998
21,235



112,000

95
%
26,000

 
L.A. Mart
Talbots
Tyson's Station

Washington, DC-MD-VA
1978
4,468



49,000

95
%
11,000

 
Trader Joe's
 
Village at Shirlington
(6)
Washington, DC-MD-VA
1995
59,106

6,468

261,000

98
%
28,000

 
Harris Teeter
AMC Loews / Carlyle Grand Café
Wildwood
 
Washington, DC-MD-VA
1969
18,270

22,764

84,000

91
%
20,000

 
Balducci's
CVS
 

Total Washington Metropolitan Area
1,440,590


5,304,000

94
%

 
 
 
  Philadelphia Metropolitan Area





 
 
 
 
Andorra

Philadelphia, PA-NJ
1988
25,562


265,000

95
%
24,000

 
Acme Markets
Kohl's / Staples / L.A. Fitness
Bala Cynwyd

Philadelphia, PA-NJ
1993
39,963


295,000

96
%
45,000

 
Acme Markets
Lord & Taylor / L.A. Fitness / Michaels
Ellisburg Circle

Philadelphia, PA-NJ
1992
33,307


267,000

90
%
47,000

 
Whole Foods
Buy Buy Baby / Stein Mart
Flourtown

Philadelphia, PA-NJ
1980
13,436


160,000

97
%
75,000

 
Giant Food
 
Langhorne Square

Philadelphia, PA-NJ
1985
21,241


219,000

99
%
55,000

 
Redner's Warehouse Mkts.
Marshalls
Lawrence Park

Philadelphia, PA-NJ
1980
31,631

25,898

355,000

97
%
53,000

 
Acme Markets
Kaplan Career Institute / TJ Maxx / HomeGoods
Northeast

Philadelphia, PA-NJ
1983
24,781


288,000

89
%

 
 
Burlington Coat Factory / Home Gallery / Marshalls
Town Center of New Britain

Philadelphia, PA-NJ
2006
14,721


124,000

87
%
36,000

 
Giant Food
Rite Aid
Willow Grove

Philadelphia, PA-NJ
1984
29,814


212,000

99
%

 
 
HomeGoods / Marshalls / Barnes & Noble
Wynnewood

Philadelphia, PA-NJ
1996
38,732

26,393

251,000

98
%
98,000

 
Giant Food
Bed, Bath & Beyond / Old Navy / DSW


Total Philadelphia Metropolitan Area
273,188


2,436,000

95
%

 
 
 
  California
 
 
 
 
 
 
 
 
 
Colorado Blvd

Los Angeles-Long Beach, CA
1996/1998
18,121


69,000

100
%
 
 
 
Pottery Barn / Banana Republic
Crow Canyon

San Ramon, CA
2005/2007
85,611


242,000

91
%
58,000

 
Sprouts
Rite Aid

19



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
GLA (2)
% Leased
 Grocery Anchor GLA
 
Grocery Anchor
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
East Bay Bridge

San Francisco-Oakland-Fremont, CA
2012
167,535

61,474

438,000

100
%
59,000


Pak-N-Save
Home Depot / Michaels / Target
Escondido
(3)
San Diego, CA
1996/2010
46,873


297,000

97
%


 
TJ Maxx / Toys R Us / Dick’s Sporting Goods / Ross Dress For Less
Hermosa Ave

Los Angeles-Long Beach, CA
1997
5,860


24,000

100
%




Hollywood Blvd
(3)
Los Angeles-Long Beach, CA
1999
44,083


155,000

100
%
15,000


Fresh & Easy
DSW / L.A. Fitness
Kings Court
(5)
San Jose, CA
1998
11,594


80,000

100
%
25,000


Lunardi's Super Market
CVS
Old Town Center

San Jose, CA
1997
37,595


96,000

94
%



Anthropologie / Banana Republic / Gap
Plaza El Segundo
(3)(7)
Los Angeles-Long Beach, CA
2011
237,294

175,000

381,000

99
%
66,000


Whole Foods
Anthropologie / Best Buy / Container Store / Dick's Sporting Goods / H&M / HomeGoods
Santana Row

San Jose, CA
1997
687,882


649,000

97
%


 
Crate & Barrel / Container Store / Best Buy / CineArts Theatre / Hotel Valencia / H&M
Third St Promenade

Los Angeles-Long Beach, CA
1996-2000
78,293


209,000

97
%



J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate Center
 
San Jose, CA
2004
135,358

 
636,000

96
%
38,000

 
Walmart Neighborhood Market
Target / Burlington Coat Factory / Ross Dress For Less / Michaels / Nordstrom Rack / Nike Factory
150 Post Street

San Francisco, CA
1997
37,107


103,000

100
%


 
Brooks Brothers / H&M
 
 
Total California
 
1,593,206

 
3,379,000

97
%
 
 
 
 
  NY Metro / New Jersey





 
 
 
 
Brick Plaza

Monmouth-Ocean, NJ
1989
59,743

26,842

416,000

87
%
66,000


A&P
AMC Loews / Barnes & Noble / Sports Authority
Brook 35
(5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
2014
45,546

11,500

98,000

100
%
 
 
 
Ann Taylor / Banana Republic / Coach / Williams-Sonoma
Darien
 
New Haven-Bridgeport-Stamford-Waterbury
2013
48,127

 
95,000

95
%
45,000

 
Stop & Shop
Equinox
Fresh Meadows

New York, NY
1997
79,600


404,000

100
%
15,000


Island of Gold
AMC Loews / Kohl's / Michaels / Modell's
Greenwich Avenue

New Haven-Bridgeport-Stamford-Waterbury
1995
13,969


36,000

100
%


 
Saks Fifth Avenue
Hauppauge

Nassau-Suffolk, NY
1998
28,076

13,774

134,000

100
%
61,000


Shop Rite
AC Moore
Huntington

Nassau-Suffolk, NY
1988/2007
43,758


279,000

100
%


 
Buy Buy Baby / Bed, Bath & Beyond / Michaels / Nordstrom Rack
Huntington Square

Nassau-Suffolk, NY
2010
11,979


74,000

93
%


 
Barnes & Noble
Melville Mall
(8)
Nassau-Suffolk, NY
2006
69,569



246,000

63
%
54,000


Waldbaum's
Dick’s Sporting Goods / Marshalls
Mercer Mall
(6)
Trenton, NJ
2003
111,047

55,768

502,000

99
%
75,000


Shop Rite
Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
The Grove at Shrewsbury
(5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
2014
119,965

56,326

188,000

100
%
 
 
 
Lululemon / Brooks Brothers / Anthropologie / Pottery Barn / J. Crew / Banana Republic / Williams-Sonoma
Troy

Newark, NJ
1980
30,283


207,000

99
%
64,000


Pathmark
L.A. Fitness


Total NY Metro/New Jersey
661,662


2,679,000

94
%


 
 
  New England







 
 
 
 
Assembly Row / Assembly Square Marketplace
(4)
Boston-Cambridge-Quincy, MA-NH
2005-2011
405,199


550,000

100
%


 
AMC Theatre / LEGOLAND Discovery Center / Saks Fifth Avenue Off 5th / AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons

Boston-Cambridge-Quincy, MA-NH
2006-2008
42,703

7,172

222,000

100
%
16,000


Sav-A-Lot
Home Depot / Planet Fitness
Dedham Plaza

Boston-Cambridge-Quincy, MA-NH
1993
34,618


241,000

98
%
80,000


Star Market
 
Linden Square

Boston-Cambridge-Quincy, MA-NH
2006
146,586


223,000

96
%
50,000


Roche Bros.
CVS
North Dartmouth

Boston-Cambridge-Quincy, MA-NH
2006
9,368


48,000

100
%
48,000


Stop & Shop
 
Queen Anne Plaza

Boston-Cambridge-Quincy, MA-NH
1994
18,058


149,000

100
%
50,000


Hannaford
TJ Maxx / HomeGoods
 
 
 
 
 
 
 
 
 
 
 
 

20



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
GLA (2)
% Leased
 Grocery Anchor GLA
 
Grocery Anchor
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
Saugus Plaza

Boston-Cambridge-Quincy, MA-NH
1996
14,815


168,000

100
%
55,000


Super Stop & Shop
Kmart


Total New England

671,347


1,601,000

99
%


 
 
  Baltimore







 
 
 
 
Governor Plaza

Baltimore, MD
1985
26,393


242,000

97
%
16,500


Aldi
Dick’s Sporting Goods
Perring Plaza

Baltimore, MD
1985
29,674


395,000

96
%
58,000


Shoppers Food Warehouse
Home Depot / Burlington Coat Factory / Jo-Ann Stores / Micro Center
THE AVENUE at White Marsh
(5)
Baltimore, MD
2007
97,328

53,418

298,000

100
%


 
AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square

Baltimore, MD
2007
17,347


32,000

100
%


 
 
White Marsh Plaza

Baltimore, MD
2007
25,092



80,000

98
%
54,000


Giant Food
 
White Marsh Other

Baltimore, MD
2007
36,199


70,000

100
%


 
 


Total Baltimore

232,033


1,117,000

98
%


 
 
  Chicago







 
 
 
 
Crossroads

Chicago, IL
1993
31,116


168,000

93
%


 
Golfsmith / Guitar Center / L.A. Fitness
Finley Square

Chicago, IL
1995
32,563


313,000

95
%


 
Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market

Chicago, IL
1994
12,406


140,000

95
%
63,000


Mariano's Fresh Market
Walgreens
North Lake Commons

Chicago, IL
1994
16,558


129,000

91
%
77,000


Jewel Osco
 


Total Chicago

92,643


750,000

94
%


 
 
  South Florida







 
 
 
 
Courtyard Shops

Miami-Ft Lauderdale
2008
40,704



130,000

95
%
49,000


Publix
 
Del Mar Village

Miami-Ft Lauderdale
2008
55,905


179,000

77
%
44,000


Winn Dixie
CVS
Tower Shops

Miami-Ft Lauderdale
2011
82,470


374,000

99
%


 
Best Buy / DSW / Old Navy / Ross Dress For Less / TJ Maxx / Ulta


Total South Florida

179,079


683,000

92
%


 
 
  Other







 
 
 
 
Barracks Road

Charlottesville, VA
1985
60,188

36,538

497,000

97
%
99,000


Harris Teeter / Kroger
Anthropologie / Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels / Ulta
Bristol Plaza

Hartford, CT
1995
29,398


267,000

93
%
74,000


Stop & Shop
TJ Maxx
Eastgate

Raleigh-Durham-Chapel Hill, NC
1986
26,891


153,000

98
%
13,000


Trader Joe's
Stein Mart
Gratiot Plaza

Detroit, MI
1973
19,215


217,000

99
%
69,000


Kroger
Bed, Bath & Beyond / Best Buy / DSW
Houston St

San Antonio, TX
1998
61,619


172,000

90
%


 
Hotel Valencia / Walgreens
Lancaster
(6)
Lancaster, PA
1980
13,543

4,907

127,000

97
%
75,000


Giant Food
Michaels
29th Place

Charlottesville, VA
2007
40,171

5,031

169,000

98
%


 
DSW / HomeGoods / Staples / Stein Mart
Shops at Willow Lawn

Richmond-Petersburg, VA
1983
82,790



444,000

90
%
66,000


Kroger
Old Navy / Staples / Ross Dress For Less


Total Other

333,815


2,046,000

95
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total



$
5,477,563

$
692,727

19,995,000

95
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1)
The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain mortgage payables.
(2)
Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.
(3)
The Trust has a controlling financial interest in this property.
(4)
Portion of property is currently under development. See further discussion in Pike & Rose and Assembly Row schedule.
(5)
All or a portion of the property is owned in a "downreit" partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units.
(6)
All or a portion of property subject to capital lease obligation.
(7)
Includes a 100% owned, 8.1 acre land parcel being used for The Point redevelopment.
(8)
On October 16, 2006, the Trust acquired control of Melville Mall through a 20 year master lease and secondary financing. Since the Trust controls this property and retains substantially all of the economic benefit and risks associated with it, we consolidate this property and its operations.

21




Federal Realty Investment Trust
 
Retail Leasing Summary (1)
 
June 30, 2014
 
 
 
Total Lease Summary - Comparable (2)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
2nd Quarter 2014
109

 
100
%
 
536,819

 
$
34.93

 
$
30.13

 
$
2,572,606

 
16
%
 
30
%
 
7.3

 
$
9,774,179

 
$
18.21

(7)
1st Quarter 2014
71

 
100
%
 
328,355

 
$
31.84

 
$
27.01

 
$
1,583,057

 
18
%
 
29
%
 
7.3

 
$
7,815,348

 
$
23.80

(7)
4th Quarter 2013
82

 
100
%
 
395,906

 
$
27.24

 
$
21.73

 
$
2,182,320

 
25
%
 
38
%
 
7.4

 
$
7,040,879

 
$
17.78

(7)
3rd Quarter 2013
89

 
100
%
 
273,505

 
$
39.12

 
$
32.66

 
$
1,767,856

 
20
%
 
34
%
 
7.1

 
$
5,355,091

 
$
19.58

(7)
Total - 12 months
351

 
100
%
 
1,534,585

 
$
33.03

 
$
27.75

 
$
8,105,839

 
19
%
 
32
%
 
7.3

 
$
29,985,497

 
$
19.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Lease Summary - Comparable (2)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
2nd Quarter 2014
37

 
34
%
 
224,858

 
$
32.65

 
$
25.06

 
$
1,706,360

 
30
%
 
50
%
 
9.0

 
$
9,260,234

 
$
41.18

(7)
1st Quarter 2014
26

 
37
%
 
176,649

 
$
25.73

 
$
22.16

 
$
629,580

 
16
%
 
27
%
 
10.2

 
$
7,649,978

 
$
43.31

(7)
4th Quarter 2013
27

 
33
%
 
109,673

 
$
31.45

 
$
23.43

 
$
878,831

 
34
%
 
52
%
 
9.6

 
$
6,458,712

 
$
58.89

(7)
3rd Quarter 2013
32

 
36
%
 
104,298

 
$
44.09

 
$
31.78

 
$
1,283,589

 
39
%
 
57
%
 
9.2

 
$
4,636,228

 
$
44.45

(7)
Total - 12 months
122

 
35
%
 
615,478

 
$
32.39

 
$
25.08

 
$
4,498,360

 
29
%
 
46
%
 
9.5

 
$
28,005,152

 
$
45.50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Lease Summary - Comparable (2) (8)
 
Quarter
Number of Leases Signed
 
% of Comparable Leases Signed
 
GLA Signed
 
Contractual Rent (3) Per Sq. Ft.
 
Prior Rent (4) Per Sq. Ft.
 
 Annual Increase in Rent
 
Cash Basis % Increase Over Prior Rent
 
Straight-lined Basis % Increase Over Prior Rent
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
2nd Quarter 2014
72

 
66
%
 
311,961

 
$
36.56

 
$
33.79

 
$
866,246

 
8
%
 
20
%
 
6.2

 
$
513,945

 
$
1.65


1st Quarter 2014
45

 
63
%
 
151,706

 
$
38.95

 
$
32.66

 
$
953,477

 
19
%
 
31
%
 
5.1

 
$
165,370

 
$
1.09


4th Quarter 2013
55

 
67
%
 
286,233

 
$
25.63

 
$
21.08

 
$
1,303,489

 
22
%
 
31
%
 
6.3

 
$
582,167

 
$
2.03

(7)
3rd Quarter 2013
57

 
64
%
 
169,207

 
$
36.06

 
$
33.19

 
$
484,267

 
9
%
 
20
%
 
5.6

 
$
718,863

 
$
4.25


Total - 12 months
229

 
65
%
 
919,107

 
$
33.46

 
$
29.54

 
$
3,607,479

 
13
%
 
25
%
 
5.9

 
$
1,980,345

 
$
2.15


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (2) (9)
 
Quarter
 
 
 
 
 
 
 
 
Number of Leases Signed
 
GLA Signed
 
 Contractual Rent (3) Per Sq. Ft.
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
2nd Quarter 2014
 
 
 
 
 
 
 
 
128

 
622,916
 
 
$
35.83

 
7.7

 
$
11,584,637

 
$
18.60

 
1st Quarter 2014
 
 
 
 
 
 
 
 
78

 
364,034
 
 
$
31.62

 
7.6

 
$
8,445,438

 
$
23.20

 
4th Quarter 2013
 
 
 
 
 
 
 
 
99

 
484,144
 
 
$
27.84

 
8.0

 
$
7,723,079

 
$
15.95

 
3rd Quarter 2013
 
 
 
 
 
 
 
 
102

 
398,637
 
 
$
34.20

 
8.4

 
$
6,813,820

 
$
17.09

 
Total - 12 months
 
 
 
 
 
 
 
 
407

 
1,869,731
 
 
$
32.59

 
7.9

 
$
34,566,974

 
$
18.49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Leases on this report represent retail activity only; office and residential leases are not included.
(2)
Comparable leases represent those leases signed on spaces for which there was a former tenant.
(3)
Contractual rent represents contractual minimum rent under the new lease for the first 12 months of the term.
(4)
Prior rent represents minimum rent and percentage rent, if any, paid by the prior tenant in the final 12 months of the term.
(5)
Weighted average is determined on the basis of contractual rent for the first 12 months of the term.
(6)
See Glossary of Terms.
(7)
Approximately $5.6 million ($7.30 per square foot) in 2nd Quarter 2014, $5.1 million ($12.38 per square foot) in 1st Quarter 2014, $1.5 million ($3.09 per square foot) in 4th Quarter 2013 and $2.5 million ($6.23 per square foot) in 3rd Quarter 2013 of the Tenant Improvements & Incentives are for properties under active redevelopment (e.g. Westgate Center, Willow Lawn, Hollywood Boulevard) and are included in the Projected Cost for those projects on the Summary of Redevelopment Opportunities.
(8)
Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(9)
The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq Ft and Weighted Average Lease Term columns include information for leases signed at our Assembly Row and Pike & Rose projects. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq Ft columns do not include information on leases signed for those projects; these amounts for leases signed for Assembly Row and Pike & Rose are included in the Projected Cost column for those projects shown on the Pike & Rose and Assembly Row schedule.


22



Federal Realty Investment Trust
Lease Expirations
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Assumes no exercise of lease options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anchor Tenants (1)
 
Small Shop Tenants
 
Total
Year
 Expiring SF
 % of Anchor SF
 Minimum Rent PSF (2)
 
 Expiring SF
 % of Small Shop SF
 Minimum Rent PSF (2)
 
 Expiring SF (4)
 % of Total SF
 Minimum Rent PSF (2)
2014
71,000

1
%
$
17.18

 
373,000

5
%
$
28.09

 
444,000

2
%
$
26.35

2015
671,000

6
%
$
14.46

 
873,000

11
%
$
33.31

 
1,545,000

8
%
$
25.11

2016
857,000

8
%
$
16.92

 
1,151,000

14
%
$
34.88

 
2,008,000

11
%
$
27.22

2017
1,393,000

13
%
$
16.83

 
1,176,000

15
%
$
35.86

 
2,569,000

14
%
$
25.54

2018
1,443,000

13
%
$
14.78

 
997,000

13
%
$
38.47

 
2,440,000

13
%
$
24.46

2019
1,761,000

16
%
$
17.94

 
761,000

10
%
$
35.48

 
2,522,000

13
%
$
23.24

2020
685,000

6
%
$
17.18

 
496,000

6
%
$
35.47

 
1,180,000

6
%
$
24.88

2021
643,000

6
%
$
19.95

 
472,000

6
%
$
39.27

 
1,115,000

6
%
$
28.13

2022
815,000

7
%
$
16.60

 
461,000

6
%
$
38.89

 
1,276,000

7
%
$
24.65

2023
444,000

4
%
$
21.96

 
468,000

6
%
$
37.32

 
912,000

5
%
$
29.85

Thereafter
2,151,000

20
%
$
18.59

 
650,000

8
%
$
41.00

 
2,801,000

15
%
$
23.79

Total (3)
10,934,000

100
%
$
17.35

 
7,878,000

100
%
$
36.23

 
18,812,000

100
%
$
25.25

 
 
 
 
 
 
 
 
 
 
 
 
Assumes all lease options are exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anchor Tenants (1)
 
Small Shop Tenants
 
Total
Year
 Expiring SF
 % of Anchor SF
 Minimum Rent PSF (2)
 
 Expiring SF
 % of Small Shop SF
 Minimum Rent PSF (2)
 
 Expiring SF (4)
 % of Total SF
 Minimum Rent PSF (2)
2014
47,000

0
%
$
17.49

 
294,000

4
%
$
27.08

 
341,000

2
%
$
25.76

2015
80,000

1
%
$
31.63

 
534,000

7
%
$
33.20

 
614,000

3
%
$
32.99

2016
61,000

1
%
$
17.07

 
575,000

7
%
$
37.53

 
636,000

4
%
$
35.57

2017
190,000

2
%
$
23.41

 
630,000

8
%
$
38.29

 
820,000

4
%
$
34.84

2018
317,000

3
%
$
15.70

 
505,000

6
%
$
41.88

 
822,000

4
%
$
31.78

2019
429,000

4
%
$
19.94

 
471,000

6
%
$
38.10

 
900,000

5
%
$
29.45

2020
143,000

1
%
$
19.89

 
460,000

6
%
$
33.70

 
603,000

3
%
$
30.42

2021
185,000

2
%
$
12.31

 
633,000

8
%
$
36.46

 
819,000

4
%
$
30.96

2022
135,000

1
%
$
24.05

 
513,000

6
%
$
33.51

 
648,000

4
%
$
31.54

2023
348,000

3
%
$
16.79

 
453,000

6
%
$
38.02

 
800,000

4
%
$
28.83

Thereafter
8,999,000

82
%
$
17.01

 
2,810,000

36
%
$
36.27

 
11,809,000

63
%
$
21.59

Total (3)
10,934,000

100
%
$
17.35

 
7,878,000

100
%
$
36.23

 
18,812,000

100
%
$
25.25

 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1)
Anchor is defined as a tenant leasing 15,000 square feet or more.
(2)
Minimum Rent reflects in-place contractual (cash-basis) rent as of June 30, 2014.
(3)
Represents occupied square footage as of June 30, 2014.
(4)
Individual items may not add up to total due to rounding.



23



Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
At June 30, 2014
 
At June 30, 2013
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (3) (4) (sf)
19,995,000

19,054,000

95.3
%
 
19,581,000

18,652,000

95.3
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,410

1,329

94.3
%
 
1,058

1,028

97.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Center Statistics (1)
At June 30, 2014
 
At June 30, 2013
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (4) (5) (sf)
16,771,000

16,015,000

95.5
%
 
16,764,000

15,998,000

95.4
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,058

1,020

96.4
%
 
1,058

1,028

97.2
%
 
 
 
 
 
 
 
 

Notes:
(1)
See Glossary of Terms.
(2)
Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)
At June 30, 2014 leased percentage was 98.2% for anchor tenants and 91.5% for small shop tenants.
(4)
Occupied percentage was 94.3% and 94.5% at June 30, 2014 and 2013, respectively, and same center occupied percentage was 95.0% and 94.6% at June 30, 2014 and 2013, respectively.
(5)
Excludes properties purchased, sold or under redevelopment.



24



Federal Realty Investment Trust
Summary of Top 25 Tenants
June 30, 2014
 
 
 
 
 
 
 
 
Rank

 
Tenant Name
Annualized Base Rent

Percentage of Total Annualized Base Rent (4)

Tenant GLA

Percentage of Total GLA (4)

Number of Stores Leased

 
 
 
 
 
 
 
 
1

 
Ahold USA, Inc.
$
15,256,000

3.21
%
898,000

4.49
%
15

2

 
Bed, Bath & Beyond, Inc.
$
12,754,000

2.68
%
736,000

3.68
%
20

3

 
TJX Companies
$
10,770,000

2.27
%
705,000

3.53
%
21

4

 
Gap, Inc.
$
9,648,000

2.03
%
294,000

1.47
%
19

5

 
L.A. Fitness International LLC
$
8,241,000

1.73
%
371,000

1.86
%
9

6

 
CVS Corporation
$
6,780,000

1.43
%
189,000

0.95
%
16

7

 
DSW, Inc.
$
5,922,000

1.25
%
200,000

1.00
%
9

8

 
Best Buy Stores, L.P.
$
5,858,000

1.23
%
212,000

1.06
%
6

9

 
Home Depot, Inc.
$
5,360,000

1.13
%
438,000

2.19
%
5

10

 
Barnes & Noble, Inc.
$
5,117,000

1.08
%
214,000

1.07
%
8

11

 
Michaels Stores, Inc.
$
4,636,000

0.98
%
266,000

1.33
%
11

12

 
Whole Foods Market, Inc.
$
4,425,000

0.93
%
167,000

0.84
%
4

13

 
Dick's Sporting Goods, Inc.
$
4,375,000

0.92
%
206,000

1.03
%
5

14

 
AMC Entertainment Inc.
$
4,294,000

0.90
%
229,000

1.15
%
5

15

 
Staples, Inc.
$
3,833,000

0.81
%
178,000

0.89
%
9

16

 
Riverbed Technology, Inc.
$
3,705,000

0.78
%
83,000

0.42
%
2

17

 
Ross Stores, Inc.
$
3,704,000

0.78
%
208,000

1.04
%
7

18

 
Kroger Co.
$
3,528,000

0.74
%
311,000

1.56
%
7

19

 
PETsMART, Inc.
$
3,246,000

0.68
%
150,000

0.75
%
6

20

 
Wells Fargo Bank, N.A.
$
3,223,000

0.68
%
51,000

0.26
%
13

21

 
Dress Barn, Inc.
$
3,223,000

0.68
%
133,000

0.67
%
19

22

 
Bank of America, N.A.
$
3,181,000

0.67
%
64,000

0.32
%
20

23

 
A.C. Moore, Inc.
$
3,107,000

0.65
%
161,000

0.81
%
7

24

 
Sports Authority Inc.
$
3,080,000

0.65
%
179,000

0.90
%
4

25

 
Container Store, Inc.
$
3,071,000

0.65
%
74,000

0.37
%
3

 
 
Totals - Top 25 Tenants
$
140,337,000

29.54
%
6,717,000

33.64
%
250

 
 
 
 
 
 
 
 
 
 
Total: (1)
$
475,392,000

(2)
19,995,000

(3)
2,604

 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
(1)
 
Does not include amounts related to leases these tenants have with our partnership with a discretionary fund created and advised by ING Clarion Partners.
(2)
 
Reflects aggregate, annualized in-place contractual (defined as cash-basis including adjustments for concessions) minimum rent for all occupied spaces as of June 30, 2014.
(3)
 
Excludes redevelopment square footage not yet placed in service.
(4)
 
Individual items may not add up to total due to rounding.



25



Federal Realty Investment Trust
 
 
 
Reconciliation of Net Income to FFO Guidance
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
2014 Guidance
 
(Dollars in millions except
 
 per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
 
 
 
Net income
$
181

 
$
185

Net income attributable to noncontrolling interests
(8
)
 
(8
)
Gain on sale of real estate
(5
)
 
(5
)
Depreciation and amortization of real estate & joint venture real estate assets
153

 
153

Amortization of initial direct costs of leases
11

 
11

Funds from operations
334

 
337

Dividends on preferred shares
(1
)
 
(1
)
Income attributable to operating partnership units
3

 
3

Income attributable to unvested shares
(1
)
 
(1
)
FFO
$
335

 
$
338

 
 
 
 
Weighted average number of common shares, diluted
68.3

 
68.3

 
 
 
 
FFO per diluted share
$
4.90

 
$
4.94


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


26



Federal Realty Investment Trust
Summarized Income Statements and Balance Sheets - 30% Owned Joint Venture
June 30, 2014
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
CONSOLIDATED INCOME STATEMENTS
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
   Rental income
$
4,455

 
$
4,524

 
$
9,463

 
$
9,444

   Other property income
14

 
100

 
24

 
129

 
4,469

 
4,624

 
9,487

 
9,573

Expenses
 
 
 
 
 
 
 
   Rental
787

 
703

 
2,284

 
1,907

   Real estate taxes
603

 
615

 
1,216

 
1,228

   Depreciation and amortization
1,590

 
1,361

 
3,077

 
2,730

 
2,980

 
2,679

 
6,577

 
5,865

   Operating income
1,489

 
1,945

 
2,910

 
3,708

Interest expense
(781
)
 
(841
)
 
(1,620
)
 
(1,683
)
Net income
$
708

 
$
1,104

 
$
1,290

 
$
2,025

 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
 
 
 
 
 
2014
 
2013
 
 
 
(in thousands)
CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Real estate, at cost


 
 
 
$
211,605

 
$
210,703

  Less accumulated depreciation and amortization
 
 
 
 
(42,412
)
 
(39,836
)
Net real estate

 


 
169,193

 
170,867

Cash and cash equivalents
 
 
 
 
3,046

 
2,210

Other assets
 
 
 
 
5,170

 
5,668

TOTAL ASSETS


 


 
$
177,409

 
$
178,745

 
 
 
 
 
 
 
 
LIABILITIES AND PARTNERS' CAPITAL
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
    Mortgages payable
 
 
 
 
$
44,885

 
$
56,922

    Other liabilities
 
 
 
 
3,937

 
4,100

Total liabilities


 


 
48,822

 
61,022

Partners' capital
 
 
 
 
128,587

 
117,723

TOTAL LIABILITIES AND PARTNERS' CAPITAL


 


 
$
177,409

 
$
178,745




27



Federal Realty Investment Trust
Summary of Outstanding Debt and Debt Maturities - 30% Owned Joint Venture
June 30, 2014
 
 
 
Stated Interest Rate as of June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity
 
Balance
 
 
 
 
 
 
(in thousands)
 
 
Mortgage Loans
 
 
 
 
 
 
Secured Fixed Rate
 
 
 
 
 
 
Atlantic Plaza
12/1/2014
5.12
%
 
10,500

 
 
Barcroft Plaza
7/1/2016
5.99
%
(a)
20,785

 
 
Greenlawn Plaza
7/1/2016
5.90
%
 
13,600

 
 
 
 
Total Fixed Rate Debt
 
 
$
44,885

 
 
 
 
 
 
 
 
 
 
Debt Maturities
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
Year

Scheduled Amortization
Maturities
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
2014

$
—

$
10,500

$
10,500

 
23.4
%
 
23.4
%
2015

—

—

—

 
—
%
 
23.4
%
2016

—

34,385

34,385

 
76.6
%
 
100
%
Total

$
—

$
44,885

$
44,885

 
100.0
%
 
 

Notes:
 
 
 
 
(a)
The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents a note of $16.6 million at a stated rate of 6.06% and a note of $4.2 million at a stated rate of 5.71%.


28




Federal Realty Investment Trust
Real Estate Status Report - 30% Owned Joint Venture
June 30, 2014
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage Obligation
GLA
% Leased
 Grocery Anchor GLA
 
Grocery Anchor
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
  Washington Metropolitan Area
 
 
 
 
 
 
 
 
 
Barcroft Plaza
 
Washington, DC-MD-VA
2006-2007
$
34,559

$
20,785

100,000

79
%
46,000

 
Harris Teeter
Bank of America
Free State Shopping Center
 
Washington, DC-MD-VA
2007
66,816


279,000

85
%
73,000

 
Giant Food
TJ Maxx / Ross Dress For Less / Office Depot
Plaza del Mercado
 
Washington, DC-MD-VA
2004
21,695


96,000

63
%

 

CVS
 
 
Total Washington Metropolitan Area

123,070


475,000

79
%

 


  New York / New Jersey
 
 
 
 
 
 
 
 
 
 
 
Greenlawn Plaza
 
Nassau-Suffolk, NY
2006
20,655

13,600

106,000

96
%
46,000

 
Waldbaum's
Tuesday Morning

 
Total New York / New Jersey

20,655


106,000

96
%

 


 New England
 
 
 
 
 
 
 
 
 
 
 
Atlantic Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
20,103

10,500

123,000

70
%
64,000

 
Stop & Shop

Campus Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
23,012


116,000

100
%
46,000

 
Roche Bros.
Burlington Coat Factory
Pleasant Shops (1)
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
24,765


131,000

90
%
38,000

 
Whole Foods
Marshalls

 
Total New England

67,880


370,000

87
%

 
 
 
Grand Totals
 
 
 
$
211,605

$
44,885

951,000

84
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
 
 
 
(1) On July 24, 2014, the property was sold for $34.3 million.
 


29



Glossary of Terms

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate, gain or loss on deconsolidation of variable interest entity (“VIE”) and impairments of real estate, if any. Adjusted EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2014 and 2013 is as follows:

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Net income
45,416

 
38,797

 
85,961

 
74,639

Depreciation and amortization
40,893

 
39,853

 
84,743

 
80,477

Interest expense
23,213

 
27,147

 
46,350

 
54,552

Early extinguishment of debt
—

 
3,399

 
—

 
3,399

Other interest income
(18
)
 
(65
)
 
(43
)
 
(95
)
EBITDA
109,504

 
109,131

 
217,011

 
212,972

Gain on sale of real estate
—

 
(4,994
)
 
—

 
(4,994
)
Adjusted EBITDA
$
109,504

 
$
104,137

 
$
217,011

 
$
207,978



Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization and excluding extraordinary items, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Property Operating Income: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes and excluding operating results from discontinued operations.

Overall Portfolio: Includes all operating properties owned in reporting period.    

Same Center: Information provided on a same center basis is provided for only those properties that were owned and operated for the entirety of both periods being compared, excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease and, except for redevelopments, may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.




30