View:
Download DOC
Download PDF
Download XLS
FRT-06.30.2015-8K 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, 2015
 
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 5, 2015, 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, 2015. 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, 2015 (including press release dated August 5, 2015)

    

    
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 5, 2015
 
 /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, 2015    




FRT-06.30.2015-EX 99.1


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
June 30, 2015
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Second Quarter 2015 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
2015 Significant Acquisitions & 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 10, 2015, 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 10, 2015.



2



FOR IMMEDIATE RELEASE
Investor Inquiries
Media Inquiries
Brittany Schmelz
Andrea Simpson
Investor Relations Coordinator
Director, Marketing
301/998-8265
617/684-1511
bschmelz@federalrealty.com
asimpson@federalrealty.com

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2015 OPERATING RESULTS

ROCKVILLE, Md. (August 5, 2015) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its second quarter ended June 30, 2015.

Financial Results
In the second quarter 2015, Federal Realty generated funds from operations available for common shareholders (FFO) excluding early extinguishment of debt of $92.9 million, or $1.33 per diluted share. This compares to FFO of $83.6 million, or $1.23 per diluted share, in second quarter 2014. FFO, which includes the $19.1 million early extinguishment of debt charge, was $73.9 million, or $1.06 per diluted share for the second quarter 2015. For the six months ended June 30, 2015, FFO excluding early extinguishment of debt was $180.2 million, or $2.59 per diluted share, compared to $165.4 million, or $2.43 per diluted share for the same six month period in 2014. FFO was $161.2 million, or $2.32 per diluted share, for the six months ended June 30, 2015.

Net income available for common shareholders was $43.5 million and earnings per diluted share was $0.63 for second quarter 2015, versus $43.4 million and $0.64, respectively, for second quarter 2014. Year-to-date, Federal Realty reported net income available for common shareholders of $89.5 million and earnings per diluted share of $1.30. This compares to net income available for common shareholders of $82.0 million and earnings per diluted share of $1.22 for the six months ended June 30, 2014.
    
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 2015, same-center property operating income increased 4.8% over the prior year when including properties that are being redeveloped and 3.0% when excluding those properties.


3



FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2015 OPERATING RESULTS
August 5, 2015
Page 2

The overall portfolio was 95.7% leased as of June 30, 2015, compared to 95.4% on March 31, 2015 and 95.3% on June 30, 2014. Federal Realty’s same center portfolio was 96.2% leased on June 30, 2015, compared to 96.0% leased on March 31, 2015 and 95.9% on June 30, 2014.

During second quarter 2015, Federal Realty signed 85 leases for 313,887 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 296,946 square feet at an average cash basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 15%. The average contractual rent on this comparable space for the first year of the new leases is $30.41 per square foot compared to the average contractual rent of $26.36 per square foot for the last year of the prior leases. The previous average contractual rent was 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 25% for second quarter 2015. As of June 30, 2015, Federal Realty’s average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $25.74 per square foot.

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 $0.94 per share, resulting in an indicated annual rate of $3.76 per share, an increase of 8.0%. The regular common dividend will be payable on October 15, 2015 to common shareholders of record on September 22, 2015. This increase represents the 48th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector, and among the longest such records for publicly traded companies in the US.

“We are thrilled to report another strong quarter, and importantly, our 48th consecutive annual dividend increase, extending our best in class track record of consistent growth,” commented Donald C. Wood, President and Chief Executive Officer of Federal Realty. “The continued performance of our core portfolio, coupled with the successful deliveries of redevelopment projects and the initial phases of Assembly Row and Pike & Rose, positions us exceptionally well for the future.”

Summary of Other Quarterly Activities and Recent Developments
•
April 24, 2015 - Federal Realty closed on the sale of its Houston St. property in San Antonio, Texas, for a sales price of $46.1 million, and realized a gain of $11.5 million.
•
May 4, 2015 - Federal Realty acquired an 80% interest in a 198,000 square foot lifestyle center in South Florida, based on a total value of $87.5 million. Situated in the resurgent Coconut Grove District, at the prominent intersection of Main Highway and Grand Avenue, CocoWalk is well located to serve the affluent, year round residents of Miami-Dade. On July 1, 2015 Federal Realty acquired partial interests in seven street retail buildings, also in the Coconut Grove District, for a total investment of $5.8 million.

4



FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2015 OPERATING RESULTS
August 5, 2015
Page 3

•
May 21, 2015 - Federal Realty was presented with three prestigious honors by the Alliance for Workplace Excellence (AWE). The Trust received the 2015 Workplace Excellence Seal of Approval Award, 2015 Health & Wellness Seal of Approval Award and 2015 EcoLeadership Award. 2015 marks the eighth consecutive year Federal Realty has won Workplace Excellence and Health & Wellness awards, and the fifth year it has won the EcoLeadership award.
•
August 3, 2015 - Federal Realty repaid at par $147 million of mortgage loans due November 2015, with an average interest rate of 7.9%.

Guidance
Federal Realty increased the midpoint of its 2015 guidance for FFO to $5.29 to $5.33 per diluted share excluding early extinguishment of debt, and updated earnings per diluted share to $2.78 to $2.82.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its second quarter 2015 earnings conference call, which is scheduled for August 6, 2015, at 10 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 68926054 (required). Federal Realty will also provide an online webcast on the Company’s web site, http://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 13, 2015, by dialing (855) 859-2056 and using the passcode 68926054.

About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, our mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Our expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty’s 90 properties include over 2,600 tenants, in approximately 21 million square feet, and 1500 residential units.

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 48 consecutive years, the longest record in the REIT industry. Federal Realty shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.FederalRealty.com.





5



FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 2015 OPERATING RESULTS
August 5, 2015
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 10, 2015, and include the following:

•
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
•
risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;
•
risks that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
•
risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that 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 10, 2015.



6



Federal Realty Investment Trust
 
 
 
 
 
 
 
Summarized Income Statements
 
 
 
 
 
 
 
June 30, 2015
 
 
 
 
 
 
 
 
Three Months Ended

Six Months Ended
 
June 30,

June 30,
 
2015

2014

2015
 
2014
 
(in thousands, except per share data)
 
(unaudited)
Revenue
 
 
 
 
 
 
 
Rental income
$
175,884

 
$
162,383

 
$
357,050

 
$
328,576

Other property income
4,420

 
4,325

 
6,885

 
7,725

Mortgage interest income
1,157

 
1,239

 
2,318

 
2,474

Total revenue
181,461

 
167,947

 
366,253

 
338,775

Expenses
 
 
 
 
 
 
 
Rental expenses
32,623

 
31,405

 
74,062

 
68,535

Real estate taxes
20,667

 
19,164

 
41,061

 
37,864

General and administrative
9,299

 
8,124

 
18,152

 
15,828

Depreciation and amortization
42,671

 
40,893

 
84,655

 
84,743

Total operating expenses
105,260

 
99,586

 
217,930

 
206,970

Operating income
76,201

 
68,361

 
148,323

 
131,805

Other interest income
74

 
18

 
103

 
43

Interest expense
(23,445
)
 
(23,213
)
 
(47,613
)
 
(46,350
)
Early extinguishment of debt
(19,072
)
 
—

 
(19,072
)
 
—

Income from real estate partnerships
406

 
250

 
626

 
463

Income from continuing operations
34,164

 
45,416

 
82,367

 
85,961

Gain on sale of real estate
11,509

 
—

 
11,509

 
—

Net income
45,673

 
45,416

 
93,876

 
85,961

   Net income attributable to noncontrolling interests
(2,041
)
 
(1,871
)
 
(4,058
)
 
(3,663
)
Net income attributable to the Trust
43,632

 
43,545

 
89,818

 
82,298

Dividends on preferred shares
(135
)
 
(135
)
 
(271
)
 
(271
)
Net income available for common shareholders
$
43,497

 
$
43,410

 
$
89,547

 
$
82,027

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Continuing operations
$
0.46

 
$
0.64

 
$
1.13

 
$
1.22

Gain on sale of real estate
0.17

 
—

 
0.17

 
—

 
$
0.63

 
$
0.64

 
$
1.30

 
$
1.22

 
 
 
 
 
 
 
 
Weighted average number of common shares, basic
68,531

 
67,110

 
68,449

 
66,858

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Continuing operations
$
0.46

 
$
0.64

 
$
1.13

 
$
1.22

Gain on sale of real estate
0.17

 
—

 
0.17

 
—

 
$
0.63

 
$
0.64

 
$
1.30

 
$
1.22

 
 
 
 
 
 
 
 
Weighted average number of common shares, diluted
68,713

 
67,277

 
68,638

 
67,021



7






Federal Realty Investment Trust
Summarized Balance Sheets
June 30, 2015
 
June 30,
 
December 31,
 
2015
 
2014
 
(in thousands)
 
(unaudited)
 
 
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $355,241 and $282,303 of consolidated variable interest entities, respectively)
$
5,336,688

 
$
5,128,757

Construction-in-progress
507,491

 
480,241

 
5,844,179

 
5,608,998

Less accumulated depreciation and amortization (including $30,099 and $26,618 of consolidated variable interest entities, respectively)
(1,508,397
)
 
(1,467,050
)
Net real estate
4,335,782

 
4,141,948

Cash and cash equivalents
22,175

 
47,951

Accounts and notes receivable, net
106,218

 
93,291

Mortgage notes receivable, net
50,677

 
50,988

Investment in real estate partnerships
37,748

 
37,457

Prepaid expenses and other assets
181,238

 
175,235

TOTAL ASSETS
$
4,733,838

 
$
4,546,870

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Mortgages and capital lease obligations (including $179,303 and $187,632 of consolidated variable interest entities, respectively)
$
648,079

 
$
635,345

Notes payable
396,911

 
290,519

Senior notes and debentures
1,494,515

 
1,483,813

Accounts payable and other liabilities
332,407

 
325,584

Total liabilities
2,871,912

 
2,735,261

Redeemable noncontrolling interests
120,360

 
119,053

Shareholders' equity
 
 
 
Preferred shares
9,997

 
9,997

Common shares and other shareholders' equity
1,625,575

 
1,594,404

Total shareholders' equity of the Trust
1,635,572

 
1,604,401

    Noncontrolling interests
105,994

 
88,155

Total shareholders' equity
1,741,566

 
1,692,556

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
4,733,838

 
$
4,546,870




8



Federal Realty Investment Trust
 
 
 
 
 
 
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
 
 
 
 
Net income
 
$
45,673

 
$
45,416

 
$
93,876

 
$
85,961

Net income attributable to noncontrolling interests
 
(2,041
)
 
(1,871
)
 
(4,058
)
 
(3,663
)
Gain on sale of real estate
 
(11,509
)
 
—

 
(11,509
)
 
—

Depreciation and amortization of real estate assets
 
37,390

 
36,499

 
74,344

 
76,048

Amortization of initial direct costs of leases
 
3,676

 
2,947

 
7,116

 
5,778

Depreciation of joint venture real estate assets
 
336

 
441

 
666

 
850

Funds from operations
 
73,525

 
83,432

 
160,435

 
164,974

Dividends on preferred shares
 
(135
)
 
(135
)
 
(271
)
 
(271
)
Income attributable to operating partnership units
 
808

 
715

 
1,641

 
1,431

Income attributable to unvested shares
 
(256
)
 
(377
)
 
(573
)
 
(752
)
FFO
 
$
73,942

 
$
83,635

 
$
161,232

 
$
165,382

Early extinguishment of debt, net of allocation to unvested shares
 
19,006

 
—

 
19,006

 
—

FFO excluding early extinguishment of debt
 
$
92,948

 
$
83,635

 
$
180,238

 
$
165,382

       Weighted average number of common shares, diluted
 
69,647

 
68,194

 
69,581

 
67,939

 
 
 
 
 
 
 
 
 
FFO per diluted share
 
$
1.06

 
$
1.23

 
$
2.32

 
$
2.43

 
 
 
 
 
 
 
 
 
FFO excluding early extinguishment of debt, per diluted share
 
$
1.33

 
$
1.23

 
$
2.59

 
$
2.43

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
73,023

 
$
78,908

 
$
128,628

 
$
152,288

Tenant improvements and incentives
 
6,475

 
9,004

 
10,786

 
14,223

Total non-maintenance capital expenditures
 
79,498

 
87,912

 
139,414

 
166,511

Maintenance capital expenditures
 
3,334

 
3,629

 
5,089

 
5,155

Total capital expenditures
 
$
82,832

 
$
91,541

 
$
144,503

 
$
171,666

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
60,043

 
$
52,777

 
$
119,795

 
$
105,238

 
 
 
 
 
 
 
 
 
Dividend payout ratio as a percentage of FFO
 
81
%
 
63
%
 
74
%
 
64
%
Dividend payout ratio as a percentage of FFO excluding early extinguishment of debt
 
65
%
 
63
%
 
66
%
 
64
%

Notes:
1)    See Glossary of Terms.

9



Federal Realty Investment Trust
Market Data
June 30, 2015
 
 
 
June 30,
 
 
 
2015
 
2014
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
70,055

 
68,630

 
Market price per common share
 
$
128.09

 
$
120.92

 
Common equity market capitalization including operating partnership units
 
$
8,973,345

 
$
8,298,740

 
 
 
 
 
 
 
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
 
$
8,983,345

 
$
8,308,740

 
 
 
 
 
 
 
Total debt (3)
 
2,539,505

 
2,357,751

 
 
 
 
 
 
 
Total market capitalization
 
$
11,522,850

 
$
10,666,491

 
 
 
 
 
 
 
Total debt to market capitalization at the current market price
 
22
%
 
22
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations (4)
 
95
%
 
100
%
 
Variable rate debt
 
5
%
 
<1%

 
 
 
100
%
 
100
%
Notes:
1)
Amounts include 934,405 and 917,255 operating partnership units outstanding at June 30, 2015 and 2014, 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 $10.3 million and $13.5 million at June 30, 2015 and 2014, respectively, which is the Trust's 30% share of the total mortgages payable of $34.4 million and $44.9 million at June 30, 2015 and 2014, 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, 2015
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Minimum rents
 
 
 
 
 
 
 
Retail and commercial (1)
$
125,688

 
$
116,840

 
$
250,001

 
$
232,905

Residential
10,554

 
8,532

 
20,941

 
16,354

Cost reimbursements
33,535

 
32,158

 
74,422

 
69,617

Percentage rent
2,503

 
2,045

 
5,267

 
4,168

Other
3,604

 
2,808

 
6,419

 
5,532

Total rental income
$
175,884

 
$
162,383

 
$
357,050

 
$
328,576


Notes:
1)
Minimum rents include $1.8 million and $1.1 million for the three months ended June 30, 2015 and 2014, respectively, and $3.1 million and $2.2 million for the six months ended June 30, 2015 and 2014, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.6 million and $0.7 million for the three months ended June 30, 2015 and 2014, respectively, and $1.3 million and $1.2 million for the six months ended June 30, 2015 and 2014, 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, 2015
 
 
As of June 30, 2015
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (6)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Barracks Road (2)
11/1/2015
 
7.95%
 
$
35,411

 
 
 
 
 
 
Hauppauge (2)
11/1/2015
 
7.95%
 
13,349

 
 
 
 
 
 
Lawrence Park (2)
11/1/2015
 
7.95%
 
25,099

 
 
 
 
 
 
Wildwood (2)
11/1/2015
 
7.95%
 
22,062

 
 
 
 
 
 
Wynnewood (2)
11/1/2015
 
7.95%
 
25,579

 
 
 
 
 
 
Brick Plaza (2)
11/1/2015
 
7.42%
 
25,971

 
 
 
 
 
 
San Antonio Center
1/1/2016
 
5.27%
 
18,353

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

 
 
 
 
 
 
The Grove at Shrewsbury (East)
10/1/2017
 
5.82%
 
44,045

 
 
 
 
 
 
The Grove at Shrewsbury (West)
3/1/2018
 
6.38%
 
11,135

 
 
 
 
 
 
Rollingwood Apartments
5/1/2019
 
5.54%
 
21,924

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
4,848

 
 
 
 
 
 
THE AVENUE at White Marsh
1/1/2022
 
3.35%
 
52,705

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
75,106

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

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
6,971

 
 
 
 
 
 
Subtotal
 
 
 
 
569,058

 
 
 
 
 
 
Net unamortized premium
 
 
 
 
7,388

 
 
 
 
 
 
Total mortgages payable
 
 
 
 
576,446

 
 
 
5.38%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Term loan (3)
11/21/2018
 
LIBOR + 0.90%
 
275,000

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
6,011

 
 
 
 
 
 
Unsecured variable rate
 
 
 
 
 
 
 
 
 
 
 
Escondido (Municipal bonds) (4)
10/1/2016
 
0.11%
 
9,400

 
 
 
 
 
 
Revolving credit facility (5)
4/21/2017
 
LIBOR + 0.90%
 
106,500

 
 
 
 
 
 
Total notes payable
 
 
 
 
396,911

 
 
 
2.45%
(7)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
4.50% notes
12/1/2044
 
4.50%
 
450,000

 
 
 
 
 
 
Subtotal
 
 
 
 
1,494,200

 
 
 
 
 
 
Net unamortized premium
 
 
 
315

 
 
 
 
 
 
Total senior notes and debentures
 
 
 
1,494,515

 
 
 
4.19%
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,633

 
 
 
8.04%
 
Total debt and capital lease obligations
 
 
 
 
$
2,539,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and capital lease obligations
 
 
 
$
2,423,605

 
95
%
 
4.45%
 
Total variable rate debt
 
 
 
115,900

 
5
%
 
1.10%
(7)
Total debt and capital lease obligations
 
 
 
$
2,539,505

 
100
%
 
4.30%
(7)

12



 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
2014
 
2015
2014
Operational Statistics
 
 
 
 
 
 
 
 
 
Excluding early extinguishment of debt:
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (8)(9)
4.57

x
3.78

x
 
4.23

x
3.74

x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (8)(9)
4.17

x
3.78

x
 
4.03

x
3.74

x
Including early extinguishment of debt:
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (8)
2.74

x
3.78

x
 
3.18

x
3.74

x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (8)
2.50

x
3.78

x
 
3.04

x
3.74

x

Notes:
1)
Mortgages payable do not include our 30% share ($10.3 million) of the $34.4 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.
2)
On August 3, 2015, these mortgage loans were repaid at par.
3)
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 2.62% and thus, the loan is included in fixed rate debt.
4)
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 Escondido Promenade property is not encumbered by a lien.
5)
The maximum amount drawn under our revolving credit facility during the three and six months ended June 30, 2015 was $173.5 million, and the weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.1% for the three and six months ended June 30, 2015.
6)
The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note 7.
7)
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 a $106.5 million balance on June 30, 2015. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 2.62% as the result of the interest rate swap agreements discussed in Note 3. The term loan is included in fixed rate debt.
8)
Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs, costs related to the early extinguishment of debt, and the portion of rent expense representing an interest factor. EBITDA includes a gain on sale of real estate of $11.5 million for the three and six months ended June 30, 2015. Adjusted EBITDA is reconciled to net income in the Glossary of Terms.
9)
Fixed charges for the three and six months ended June 30, 2015 exclude the $19.1 million early extinguishment of debt charge related to the make-whole premium paid as part of the early redemption of the 6.20% senior notes.

13



Federal Realty Investment Trust
Summary of Debt Maturities
June 30, 2015
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (4)
 
 
(in thousands)
 
 
 
 
 
 
 
2015
$
3,963

 
$
145,806

(1)
$
149,769

 
5.9
%
 
5.9
%
 
8.0
%
 
2016
4,210

 
27,497

 
31,707

 
1.3
%
 
7.2
%
 
2.3
%
 
2017
4,191

 
323,232

(2)
327,423

 
12.9
%
 
20.1
%
 
3.6
%
(5)
2018
3,361

 
285,502

 
288,863

 
11.4
%
 
31.5
%
 
2.9
%
 
2019
3,166

 
20,160

 
23,326

 
0.9
%
 
32.4
%
 
5.7
%
 
2020
3,168

 
150,000

 
153,168

 
6.0
%
 
38.4
%
 
6.0
%
 
2021
3,091

 
3,625

 
6,716

 
0.3
%
 
38.7
%
 
6.1
%
 
2022
1,216

 
366,323

 
367,539

 
14.5
%
 
53.2
%
 
3.5
%
 
2023
1,276

 
330,010

 
331,286

 
13.1
%
 
66.3
%
 
3.9
%
 
2024
1,052

 
300,000

 
301,052

 
11.9
%
 
78.2
%
 
4.2
%
 
Thereafter
20,253

 
530,700

 
550,953

 
21.8
%
 
100.0
%
 
4.9
%
 
Total
$
48,947

 
$
2,482,855

 
$
2,531,802

(3)
100.0
%
 
 
 
 
 
Notes:
1)
2015 maturities comprise six mortgage loans, which were repaid at par on August 3, 2015, prior to their original maturity date.
2)
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, 2015, there was a $106.5 million balance outstanding on our revolving credit facility.
3)
The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net premium on certain mortgage loans and senior notes as of June 30, 2015.
4)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
5)
The weighted average rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.



14




Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
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


$25

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

$85


$71

2016
Westgate Center
San Jose, CA
Façade and interior mall renovation, addition of food court and pad site
9
%

$21


$20

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

$14


$8

2016
Congressional Plaza
Rockville, MD
New 48 unit rental apartment building
7
%

$14


$6

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

$13


$13

Stabilized
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
13
%

$11


$11

Stabilized
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
21
%

$7


$6

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
%

$5


$3

2015
Willow Lawn
Richmond, VA
Construction of two new in-line retail spaces totaling 17,400 square feet
8
%

$5


$0

2016
Flourtown
Flourtown, PA
New 75,000 square foot grocer and new 38,000 square foot movie theater
14
%

$4


$3

2015
The AVENUE at White Marsh
White Marsh, MD
Addition of two new pad sites totaling 13,000 square feet and a drive up ATM
11
%

$3


$2

2016
Mercer Mall
Lawrenceville, NJ
Demolition of existing 3,000 square foot pad building to allow for construction of a multi-restaurant pad building totaling 5,600 square feet
10
%

$2


$0

2016
Pentagon Row
Arlington, VA
Ice rink expansion and 1,500 square feet of new retail space
9
%

$2


$2

2015
Wynnewood
Wynnewood, PA
Conversion of obsolete 2nd floor office space to residential
8
%

$2


$2

2015
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

Stabilized
Troy
Parsippany, NY
New 4,000 square foot pad building
20
%

$1


$1

Stabilized
Brick Plaza
Brick, NJ
New restaurant pad building
30
%

$1


$1

Stabilized
Finley Square
Downers Grove, IL
New 2,000 square foot pad building
17
%

$1


$0

Stabilized
Total Active Redevelopment projects (4)
 
9
%
 $302 - $312


$175

 

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, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property (1)
Location
Opportunity
Projected ROI (2)
 
Total Cost (3)
Costs to Date
 
Anticipated Stabilization
Expected Opening Timeframe
 
 
 
 
 
(in millions)
(in millions)
 
 
 
Phases delivered or delivering in 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose - Phase I
North Bethesda, MD
Phase I consists of 493 residential units, 157,000 square feet of retail, and 79,000 square feet of office space.
7% - 8%
 
$255 - $265

$247

 
2015/2016
•174 unit residential building opened late June 2014 and achieved stabilized occupancy in Q1 2015
•137,000 sf of retail open as of 6/30/15; retail 100% leased. Remaining retail to open in Q4 2015/ Q1 2016.
•40,000 sf of office space delivered as of 6/30/15; 70% leased; 97% leased/under LOI
•319 unit residential building initially opened in July 2015 with delivery of units through Q1 2016. Expected to achieve stabilized occupancy in Q4 2016.

Assembly Row - Phase I
Somerville, MA
Initial phase consists of 445 residential units (by AvalonBay), in addition to 98,000 square feet of office space and approximately 331,000 square feet of retail space (including a restaurant pad site). A new Orange Line T-Stop has been constructed by Massachusetts Bay Transit Authority, as part of Phase I.
5% - 6%
(4)
$190 - $200

$187

(4)
2015/2016
•Retail open and 97% leased as of 6/30/15
•33,000 sf of office space delivered as of 6/30/15; 67% leased; 100% leased/under LOI
•T Station opened September 2014
 
 
Total Phases delivered or delivering in 2015
6 - 7%
 
$445 - $465

$434

 
 
 
 
 
 
 
 
 
 
 
 
 
Phases commencing in 2015/2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose - Phase II
North Bethesda, MD
Ground up mixed use development. Phase II consists of 185,000 square feet of retail, 264 residential units, and a 177 room hotel.
7% - 8%
 
$195 - $200

$33

 
2018/2019
Projected opening - late 2017
 
North Bethesda, MD
104 for-sale condominium units
-
(5)
$53 - $58

$7

 
 
 
Assembly Row - Phase II
Somerville, MA
Second phase of development consists of 167,000 square feet of retail, 447 residential units, and a 155 room boutique hotel. Additionally, there will be approximately 700,000 square feet of office space constructed by Partners HealthCare.
7%
(4)
$270 - $285

$63

 
2018/2019
Projected opening - late 2017/2018
 
Somerville, MA
117 for-sale condominium units
-
(5)
$62 - $67

$7

 
 
 
 
 
Total Phases commencing in 2015/2016
7% - 7.5%
(5)
$580 - $610

$110

 
 
 

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 Trust. Refer to the Trust'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.
 
 
 
(4)
Costs are net of expected reimbursement by third parties and land sale proceeds from expected exercise of option. Phase II total costs include our 50% share of the costs of our investment in the hotel.
(5)
Condominiums shown at cost; the projected ROI for Phase II does not assume any incremental profit on the sale of condominium units; condominiums are assumed to be sold at cost.

16



Federal Realty Investment Trust
Future Redevelopment Opportunities
June 30, 2015
 
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.
 
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 Promenade
Escondido, CA
 
Pan Am
Fairfax, VA
 
 
 
Federal Plaza
Rockville, MD
 
Wildwood
Bethesda, MD
 
 
 
Flourtown
Flourtown, PA
 


 
 
 
 
 
 
 
 
 
 
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
 
Melville Mall
Huntington, NY
 
 
 
Bethesda Row
Bethesda, MD
 
Montrose Crossing
Rockville, MD
 
 
 
CocoWalk
Miami, FL
 
Northeast
Philadelphia, PA
 
 
 
Crossroads
Highland Park, IL
 
Third Street Promenade
Santa Monica, CA
 
 
 
Darien
Darien, CT
 
Wildwood
Bethesda, MD
 
 
 
Del Mar Village
Boca Raton, FL
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Village at Shirlington
Arlington, VA
 
 
 
Graham Park Plaza
Falls Church, VA
 
Towson land parcel
Towson, MD
 
 
 
Leesburg Plaza
Leesburg, VA
 


 
 
 
 
 
 
 
 
 
 
Longer Term Mixed-Use Opportunities
 
Assembly Row (1)
Somerville, MA
 
San Antonio Center
Mountain View, CA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Santana Row (3)
San Jose, CA
 
 
 
Pike 7 Plaza
Vienna, VA
 
Santana Row - Winchester Theater site
San Jose, CA
 
 
 
Pike & Rose (2)
North Bethesda, MD
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
Assembly Row
Remaining entitlements after Phase II include approximately 2 million square feet of commercial-use buildings and 834 residential units.
(2)
Pike & Rose
Remaining entitlements after Phase II include approximately 1 million square feet of commercial-use buildings, and 744 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
 
2015 Significant Acquisitions & Disposition
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
2015 Significant Acquisitions
 
 
 
 
 
 
 
Date
Property
City/State
GLA
 
Purchase Price
 
Principal Tenants
 
 
 
 
(in square feet)
 
(in millions)
 
 
 
January 2015
San Antonio Center
Mountain View, CA
376,000
 
$
62.2

(1)
Walmart / Kohl's / Trader Joe's / 24 Hour Fitness
May 4, 2015
CocoWalk
Miami, Florida
198,000
 
$
87.5

(2)
Cinepolis Theaters / Gap / Youfit Health Club
 
 
 
 
 
 
 
 
 
(1) Our effective interest approximates 80% and was funded by the assumption of our share of $19 million of mortgage debt, 58,000 downREIT operating partnership units, and approximately $27 million of cash.
(2) The acquisition was completed through a newly formed entity for which we own a preferred interest and an 80% common interest.
 
 
 
 
 
 
 
 
 
2015 Significant Disposition
 
 
 
 
 
 
 
Date
Property
City/State
GLA
 
Sales Price
 
Gain on Sale
 
 
 
 
 
(in square feet)
 
(in millions)
 
(in millions)
 
 
April 24, 2015
Houston Street
San Antonio, TX
172,000
 
$
46.1

 
$
11.5

 
 
 
 
 
 
 
 
 
 
 
 


18



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2015
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
$
223,411

$
—

533,000

98
%
40,000

 
Giant Food
Apple Computer / Barnes & Noble / Equinox / Landmark Theater
Congressional Plaza
(3)
Washington, DC-MD-VA
1965
83,747


325,000

97
%
25,000

 
The 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
13,016


144,000

100
%
51,000

 
Giant Food
CVS / Staples
Federal Plaza

Washington, DC-MD-VA
1989
65,870



248,000

99
%
14,000

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

Washington, DC-MD-VA
2001
37,492


119,000

100
%

 

DSW / Maggiano's / Nordstrom Rack / Marshalls
Gaithersburg Square

Washington, DC-MD-VA
1993
26,308


207,000

90
%

 

Bed, Bath & Beyond / Ross Dress For Less / Ashley Furniture HomeStore
Graham Park Plaza

Washington, DC-MD-VA
1983
33,947



260,000

93
%
58,000

 
Giant Food
L.A. Fitness / Stein Mart
Idylwood Plaza

Washington, DC-MD-VA
1994
16,730


73,000

100
%
30,000

 
Whole Foods

Laurel

Washington, DC-MD-VA
1986
53,723



389,000

80
%
61,000

 
Giant Food
L.A. Fitness / Marshalls
Leesburg Plaza

Washington, DC-MD-VA
1998
35,855



236,000

94
%
55,000

 
Giant Food
Petsmart / Pier 1 Imports / Office Depot
Montrose Crossing
(3)
Washington, DC-MD-VA
2011/2013
153,558

75,106

363,000

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
82,593



569,000

97
%
62,000

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

Washington, DC-MD-VA
1976
6,384


92,000

84
%
24,000

 
Whole Foods
Walgreens
Pan Am

Washington, DC-MD-VA
1993
28,804


227,000

100
%
65,000

 
Safeway
Micro Center / Michaels
Pentagon Row

Washington, DC-MD-VA
1998/2010
97,660



299,000

96
%
45,000

 
Harris Teeter
L.A. Fitness / Bed, Bath & Beyond / DSW
Pike & Rose
(4)
Washington, DC-MD-VA
1982/2007/2012
333,536


188,000

100
%

 

iPic Theaters / Gap / Gap Kids / Sport & Health
Pike 7 Plaza

Washington, DC-MD-VA
1997
36,366


164,000

99
%

 

DSW / Staples / TJ Maxx
Quince Orchard

Washington, DC-MD-VA
1993
34,200



267,000

94
%
19,000

 
Aldi
L.A. Fitness / HomeGoods / Staples
Rockville Town Square
(6)
Washington, DC-MD-VA
2006-2007
50,009

4,500

187,000

93
%

 

CVS / Gold's Gym
Rollingwood Apartments

Washington, DC-MD-VA
1971
9,950

21,924

N/A

97
%

 


Sam's Park & Shop

Washington, DC-MD-VA
1995
12,506


49,000

86
%

 

Petco
Tower Shopping Center

Washington, DC-MD-VA
1998
21,372



112,000

88
%
26,000

 
L.A. Mart
Talbots / Total Wine & More
Tyson's Station

Washington, DC-MD-VA
1978
4,572



49,000

96
%
11,000

 
Trader Joe's

Village at Shirlington
(6)
Washington, DC-MD-VA
1995
60,022

6,515

261,000

95
%
28,000

 
Harris Teeter
AMC Loews / Carlyle Grand Café
Wildwood
 
Washington, DC-MD-VA
1969
18,716

22,062

84,000

94
%
20,000

 
Balducci's
CVS
 

Total Washington Metropolitan Area
1,545,068


5,480,000

95
%

 
 
 
  Philadelphia Metropolitan Area





 
 
 
 
Andorra

Philadelphia, PA-NJ
1988
25,639


265,000

96
%
24,000

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

Philadelphia, PA-NJ
1993
40,456


295,000

98
%
45,000

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

Philadelphia, PA-NJ
1992
34,509


268,000

97
%
47,000

 
Whole Foods
Buy Buy Baby / Stein Mart
Flourtown

Philadelphia, PA-NJ
1980
15,438


160,000

96
%
75,000

 
Giant Food
 
Langhorne Square

Philadelphia, PA-NJ
1985
21,749


219,000

92
%
55,000

 
Redner's Warehouse Mkts.
Marshalls
Lawrence Park

Philadelphia, PA-NJ
1980
32,033

25,099

364,000

97
%
53,000

 
Acme Markets
Kaplan Career Institute / TJ Maxx / HomeGoods
Northeast

Philadelphia, PA-NJ
1983
24,825


288,000

89
%

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

Philadelphia, PA-NJ
2006
14,769


124,000

88
%
36,000

 
Giant Food
Rite Aid
Willow Grove

Philadelphia, PA-NJ
1984
29,971


211,000

99
%

 
 
HomeGoods / Marshalls / Barnes & Noble
Wynnewood

Philadelphia, PA-NJ
1996
41,647

25,579

251,000

99
%
98,000

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


Total Philadelphia Metropolitan Area
281,036


2,445,000

95
%

 
 
 
  California
 
 
 
 
 
 
 
 
 
Colorado Blvd

Los Angeles-Long Beach, CA
1996/1998
17,997


69,000

100
%

 

Pottery Barn / Banana Republic

19



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2015
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
GLA (2)
% Leased
 Grocery Anchor GLA
 
Grocery Anchor
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
Crow Canyon Commons

San Ramon, CA
2005/2007
87,025


241,000

99
%
32,000

 
Sprouts
Rite Aid / Sports Authority
East Bay Bridge

San Francisco-Oakland-Fremont, CA
2012
172,420


438,000

100
%
59,000


Pak-N-Save
Home Depot / Michaels / Target
Escondido Promenade
(3)
San Diego, CA
1996/2010
47,076


298,000

98
%


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

Los Angeles-Long Beach, CA
1997
5,901


24,000

100
%




Hollywood Blvd
(3)
Los Angeles-Long Beach, CA
1999
47,014


184,000

100
%
15,000


Fresh & Easy
DSW / L.A. Fitness / Marshalls / La La Land
Kings Court
(5)
San Jose, CA
1998
11,609


80,000

100
%
25,000


Lunardi's Super Market
CVS
Old Town Center

San Jose, CA
1997
37,741


95,000

100
%



Anthropologie / Banana Republic / Gap
Plaza El Segundo
(3) (7)
Los Angeles-Long Beach, CA
2011
264,960

175,000

381,000

98
%
66,000


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

San Jose, CA
1997
711,093


649,000

98
%


 
Crate & Barrel / Container Store / Best Buy / CineArts Theatre / Hotel Valencia / H&M
San Antonio Center
(3) (5)
San Francisco-Oakland-San Jose, CA
2015
72,449

18,353

376,000

96
%
11,000

 
Trader Joe's
Kohl's / Wal-mart / 24 Hour Fitness / Jo-Ann Stores
Third Street Promenade

Los Angeles-Long Beach, CA
1996-2000
78,463


209,000

100
%



J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate Center
 
San Jose, CA
2004
144,263

 
643,000

98
%
38,000

 
Walmart Neighborhood Market
Target / Burlington Coat Factory / Ross Dress For Less / Michaels / Nordstrom Rack / Nike Factory / J. Crew / Gap Factory Store
150 Post Street

San Francisco, CA
1997
36,527


105,000

82
%


 
H&M
 
 
Total California
 
1,734,538

 
3,792,000

98
%
 
 
 
 
  NY Metro / New Jersey





 
 
 
 
Brick Plaza

Monmouth-Ocean, NJ
1989
60,739

25,971

422,000

90
%
66,000


A&P
AMC Loews / Barnes & Noble / Sports Authority
Brook 35
(3) (5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
2014
46,558

11,500

98,000

98
%
 
 
 
Ann Taylor / Banana Republic / Coach / Williams-Sonoma
Darien
 
New Haven-Bridgeport-Stamford-Waterbury
2013
48,196

 
95,000

95
%
45,000

 
Stop & Shop
Equinox
Fresh Meadows

New York, NY
1997
80,186


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
28,478

13,349

134,000

99
%
61,000


Shop Rite
A.C. Moore
Huntington

Nassau-Suffolk, NY
1988/2007
43,760


279,000

99
%


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

Nassau-Suffolk, NY
2010
12,216


74,000

93
%


 
Barnes & Noble
Melville Mall

Nassau-Suffolk, NY
2006
71,178



247,000

76
%
54,000


Waldbaum's
Dick’s Sporting Goods / Marshalls
Mercer Mall
(6)
Trenton, NJ
2003
118,428

55,711

523,000

98
%
75,000


Shop Rite
Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan / Nordstrom Rack / REI
The Grove at Shrewsbury
(3) (5)
New York-Northern New Jersey-Long Island, NY-NJ-PA
2014
121,664

55,180

192,000

98
%
 
 
 
Lululemon / Brooks Brothers / Anthropologie / Pottery Barn / J. Crew / Banana Republic / Williams-Sonoma
Troy

Newark, NJ
1980
29,945


211,000

99
%
64,000


Pathmark
L.A. Fitness


Total NY Metro/New Jersey
675,317


2,715,000

95
%


 
 
  New England







 
 
 
 
Assembly Row / Assembly Square Marketplace
(4)
Boston-Cambridge-Quincy, MA-NH
2005-2011, 2013
455,254


696,000

99
%



AMC Theatres / LEGOLAND Discovery Center / Saks Fifth Avenue Off 5th / J. Crew / Nike Factory / Bed, Bath & Beyond / TJ Maxx / Legal on the Mystic
Chelsea Commons

Boston-Cambridge-Quincy, MA-NH
2006-2008
42,712

6,971

222,000

100
%
16,000


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

Boston-Cambridge-Quincy, MA-NH
1993
35,044


241,000

91
%
80,000


Star Market

Linden Square

Boston-Cambridge-Quincy, MA-NH
2006
146,854


223,000

95
%
50,000


Roche Bros.
CVS
North Dartmouth

Boston-Cambridge-Quincy, MA-NH
2006
9,366


48,000

100
%
48,000


Stop & Shop


20



Federal Realty Investment Trust
Real Estate Status Report
June 30, 2015
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)
 
 
 
 
 
 
Queen Anne Plaza

Boston-Cambridge-Quincy, MA-NH
1994
18,078


149,000

100
%
50,000


Hannaford
TJ Maxx / HomeGoods
Saugus Plaza

Boston-Cambridge-Quincy, MA-NH
1996
14,991


168,000

100
%
55,000


Super Stop & Shop
Kmart


Total New England

722,299


1,747,000

98
%


 
 
  Baltimore







 
 
 
 
Governor Plaza

Baltimore, MD
1985
26,866


243,000

100
%
16,500


Aldi
Dick’s Sporting Goods
Perring Plaza

Baltimore, MD
1985
30,049


395,000

100
%
58,000


Shoppers Food Warehouse
Home Depot / Burlington Coat Factory / Jo-Ann Stores / Micro Center
THE AVENUE at White Marsh
(5)
Baltimore, MD
2007
99,153

52,705

297,000

99
%


 
AMC Loews / Old Navy / Barnes & Noble / A.C. Moore
The Shoppes at Nottingham Square

Baltimore, MD
2007
17,441


32,000

100
%


 

White Marsh Plaza

Baltimore, MD
2007
25,149



80,000

100
%
54,000


Giant Food

White Marsh Other

Baltimore, MD
2007
36,869


73,000

100
%


 



Total Baltimore

235,527


1,120,000

100
%


 
 
  Chicago







 
 
 
 
Crossroads

Chicago, IL
1993
31,185


168,000

98
%


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

Chicago, IL
1995
34,001


315,000

91
%


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

Chicago, IL
1994
12,732


140,000

100
%
63,000


Mariano's Fresh Market
Walgreens
North Lake Commons

Chicago, IL
1994
16,609


129,000

89
%
77,000


Jewel Osco
 


Total Chicago

94,527


752,000

94
%


 
 
  South Florida







 
 
 
 
Cocowalk
(3)
Miami-Ft Lauderdale
2015
87,799



198,000

85
%



Cinepolis Theaters / Gap / Youfit Health Club
Courtyard Shops

Miami-Ft Lauderdale
2008
40,955



130,000

97
%
49,000


Publix
 
Del Mar Village

Miami-Ft Lauderdale
2008/2014
60,005


196,000

74
%
44,000


Winn Dixie
CVS
Tower Shops

Miami-Ft Lauderdale
2011/2014
90,353


376,000

98
%


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


Total South Florida

279,112


900,000

90
%


 
 
  Other







 
 
 
 
Barracks Road

Charlottesville, VA
1985
60,630

35,411

497,000

97
%
99,000


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

Hartford, CT
1995
29,681


266,000

91
%
74,000


Stop & Shop
TJ Maxx
Eastgate

Raleigh-Durham-Chapel Hill, NC
1986
27,718


153,000

93
%
13,000


Trader Joe's
Stein Mart
Gratiot Plaza

Detroit, MI
1973
19,237


217,000

99
%
69,000


Kroger
Bed, Bath & Beyond / Best Buy / DSW
Lancaster
(6)
Lancaster, PA
1980
13,547

4,907

127,000

97
%
75,000


Giant Food
Michaels
29th Place

Charlottesville, VA
2007
40,303

4,848

169,000

96
%


 
DSW / HomeGoods / Staples / Stein Mart
Willow Lawn

Richmond-Petersburg, VA
1983
85,639



445,000

92
%
66,000


Kroger
Old Navy / Staples / Ross Dress For Less


Total Other

276,755


1,874,000

95
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total



$
5,844,179

$
640,691

20,825,000

96
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 the 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.

21




Federal Realty Investment Trust
 
Retail Leasing Summary (1)
 
June 30, 2015
 
 
 
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 2015
77

 
100
%
 
296,946

 
$
30.41

 
$
26.36

 
$
1,203,298

 
15
%
 
25
%
 
7.9

 
$
8,780,682

 
$
29.57

(7)
1st Quarter 2015
75

 
100
%
 
249,295

 
$
37.50

 
$
33.70

 
$
947,399

 
11
%
 
22
%
 
7.1

 
$
5,721,362

 
$
22.95


4th Quarter 2014
70

 
100
%
 
306,860

 
$
33.27

 
$
27.76

 
$
1,691,334

 
20
%
 
32
%
 
6.9

 
$
3,414,377

 
$
11.13

(7)
3rd Quarter 2014
90

 
100
%
 
372,693

 
$
35.69

 
$
31.55

 
$
1,542,966

 
13
%
 
23
%
 
7.4

 
$
11,381,523

 
$
30.54

(7)
Total - 12 months
312

 
100
%
 
1,225,794

 
$
34.17

 
$
29.78

 
$
5,384,997

 
15
%
 
26
%
 
7.3

 
$
29,297,944

 
$
23.90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2015
35

 
45
%
 
147,114

 
$
30.96

 
$
26.98

 
$
585,589

 
15
%
 
29
%
 
9.3

 
$
6,812,702

 
$
46.31

(7)
1st Quarter 2015
27

 
36
%
 
100,934

 
$
40.69

 
$
35.13

 
$
560,791

 
16
%
 
23
%
 
9.0

 
$
5,563,472

 
$
55.12


4th Quarter 2014
16

 
23
%
 
125,838

 
$
24.62

 
$
15.62

 
$
1,131,869

 
58
%
 
65
%
 
10.7

 
$
3,323,715

 
$
26.41

(7)
3rd Quarter 2014
38

 
42
%
 
177,145

 
$
33.16

 
$
28.85

 
$
763,753

 
15
%
 
22
%
 
9.0

 
$
11,087,445

 
$
62.59

(7)
Total - 12 months
116

 
37
%
 
551,031

 
$
32.00

 
$
26.48

 
$
3,042,002

 
21
%
 
30
%
 
9.4

 
$
26,787,334

 
$
48.61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2015
42

 
55
%
 
149,832

 
$
29.87

 
$
25.75

 
$
617,709

 
16
%
 
21
%
 
6.4

 
$
1,967,980

 
$
13.13


1st Quarter 2015
48

 
64
%
 
148,361

 
$
35.34

 
$
32.73

 
$
386,608

 
8
%
 
21
%
 
5.6

 
$
157,890

 
$
1.06


4th Quarter 2014
54

 
77
%
 
181,022

 
$
39.28

 
$
36.19

 
$
559,465

 
9
%
 
22
%
 
5.3

 
$
90,662

 
$
0.50


3rd Quarter 2014
52

 
58
%
 
195,548

 
$
37.98

 
$
33.99

 
$
779,213

 
12
%
 
25
%
 
6.2

 
$
294,078

 
$
1.50


Total - 12 months
196

 
63
%
 
674,763

 
$
35.95

 
$
32.47

 
$
2,342,995

 
11
%
 
22
%
 
5.8

 
$
2,510,610

 
$
3.72


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2015
 
 
 
 
 
 
 
 
85

 
313,887
 
 
$
31.66

 
8.1

 
$
11,268,961

 
$
35.90

 
1st Quarter 2015
 
 
 
 
 
 
 
 
86

 
279,586
 
 
$
38.88

 
7.4

 
$
7,500,950

 
$
26.83

 
4th Quarter 2014
 
 
 
 
 
 
 
 
83

 
343,896
 
 
$
34.55

 
7.4

 
$
7,636,392

 
$
22.21

 
3rd Quarter 2014
 
 
 
 
 
 
 
 
108

 
434,165
 
 
$
36.22

 
7.7

 
$
14,045,241

 
$
32.35

 
Total - 12 months
 
 
 
 
 
 
 
 
362

 
1,371,534
 
 
$
35.30

 
7.6

 
$
40,451,544

 
$
29.49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 $0.5 million ($1.20 per square foot) in 2nd Quarter 2015, $0.4 million ($0.86 per square foot) in 4th Quarter 2014 and $6.1 million ($11.89 per square foot) in 3rd Quarter 2014 of the Tenant Improvements & Incentives are for properties under active redevelopment (e.g. Westgate Center, Willow Lawn, East Bay Bridge) 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 the tenant improvements and incentives 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, 2015
 
 
 
 
 
 
 
 
 
 
 
 
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)
2015
38,000

0
%
$
31.67

 
444,000

5
%
$
28.79

 
482,000

2
%
$
29.01

2016
648,000

6
%
$
16.75

 
945,000

11
%
$
36.44

 
1,593,000

8
%
$
28.43

2017
1,376,000

12
%
$
17.15

 
1,228,000

15
%
$
36.08

 
2,605,000

13
%
$
26.08

2018
1,478,000

13
%
$
14.59

 
993,000

12
%
$
39.97

 
2,471,000

13
%
$
24.78

2019
1,785,000

16
%
$
18.41

 
864,000

11
%
$
36.73

 
2,649,000

13
%
$
24.39

2020
1,093,000

9
%
$
15.40

 
875,000

11
%
$
36.45

 
1,968,000

10
%
$
24.76

2021
859,000

7
%
$
17.29

 
596,000

7
%
$
39.40

 
1,455,000

7
%
$
26.34

2022
815,000

7
%
$
16.56

 
473,000

6
%
$
39.95

 
1,288,000

7
%
$
25.16

2023
444,000

4
%
$
21.80

 
473,000

6
%
$
37.82

 
917,000

5
%
$
30.07

2024
519,000

5
%
$
17.25

 
484,000

6
%
$
43.11

 
1,003,000

5
%
$
29.73

Thereafter
2,466,000

21
%
$
19.56

 
820,000

10
%
$
35.79

 
3,285,000

17
%
$
23.61

Total (3)
11,521,000

100
%
$
17.55

 
8,195,000

100
%
$
37.26

 
19,716,000

100
%
$
25.74

 
 
 
 
 
 
 
 
 
 
 
 
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)
2015
15,000

0
%
$
56.00

 
354,000

4
%
$
28.12

 
369,000

2
%
$
29.25

2016
62,000

1
%
$
21.19

 
504,000

6
%
$
39.15

 
565,000

3
%
$
37.20

2017
210,000

2
%
$
23.97

 
650,000

8
%
$
38.79

 
860,000

4
%
$
35.17

2018
313,000

3
%
$
14.87

 
514,000

6
%
$
43.20

 
827,000

4
%
$
32.47

2019
453,000

4
%
$
20.71

 
491,000

6
%
$
39.72

 
945,000

5
%
$
30.60

2020
143,000

1
%
$
21.05

 
558,000

7
%
$
34.93

 
701,000

4
%
$
32.10

2021
185,000

2
%
$
12.54

 
594,000

7
%
$
39.12

 
780,000

4
%
$
32.80

2022
135,000

1
%
$
24.11

 
527,000

6
%
$
34.63

 
662,000

3
%
$
32.49

2023
348,000

3
%
$
16.81

 
451,000

6
%
$
39.13

 
798,000

4
%
$
29.41

2024
283,000

2
%
$
16.40

 
464,000

6
%
$
39.61

 
747,000

4
%
$
30.83

Thereafter
9,374,000

81
%
$
17.27

 
3,088,000

38
%
$
36.17

 
12,462,000

63
%
$
21.95

Total (3)
11,521,000

100
%
$
17.55

 
8,195,000

100
%
$
37.26

 
19,716,000

100
%
$
25.74

 
 
 
 
 
 
 
 
 
 
 
 
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, 2015.
(3)
Represents occupied square footage as of June 30, 2015
(4)
Individual items may not add up to total due to rounding.



23



Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
At June 30, 2015
 
At June 30, 2014
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (3) (4) (sf)
20,825,000

19,930,000

95.7
%
 
19,995,000

19,054,000

95.3
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,500

1,458

97.2
%
 
1,410

1,329

94.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Center Statistics (1)
At June 30, 2015
 
At June 30, 2014
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (4) (5) (sf)
16,533,000

15,911,000

96.2
%
 
16,507,000

15,838,000

95.9
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,114

1,084

97.3
%
 
1,114

1,075

96.5
%
 
 
 
 
 
 
 
 

Notes:
(1)
See Glossary of Terms.
(2)
Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)
At June 30, 2015 leased percentage was 98.7% for anchor tenants and 91.8% for small shop tenants.
(4)
Occupied percentage was 94.9% and 94.3% at June 30, 2015 and 2014, respectively, and same center occupied percentage was 95.6% and 95.4% at June 30, 2015 and 2014, respectively.
(5)
Excludes properties purchased, sold or under redevelopment or development.



24



Federal Realty Investment Trust
Summary of Top 25 Tenants
June 30, 2015
 
 
 
 
 
 
 
 
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.
$
15,302,000

3.01
%
898,000

4.31
%
15

2

 
Bed, Bath & Beyond, Inc.
$
12,805,000

2.52
%
736,000

3.53
%
20

3

 
TJX Companies, The
$
12,439,000

2.45
%
767,000

3.68
%
23

4

 
Gap, Inc., The
$
11,625,000

2.29
%
341,000

1.64
%
23

5

 
L.A. Fitness International LLC
$
8,395,000

1.65
%
371,000

1.78
%
9

6

 
CVS Corporation
$
7,299,000

1.44
%
189,000

0.91
%
16

7

 
DSW, Inc
$
6,105,000

1.20
%
214,000

1.03
%
10

8

 
Best Buy Stores, L.P.
$
5,483,000

1.08
%
188,000

0.90
%
5

9

 
Home Depot, Inc.
$
5,435,000

1.07
%
438,000

2.10
%
5

10

 
Michaels Stores, Inc.
$
5,147,000

1.01
%
286,000

1.37
%
12

11

 
Barnes & Noble, Inc.
$
5,117,000

1.01
%
214,000

1.03
%
8

12

 
Bank of America, N.A.
$
4,993,000

0.98
%
103,000

0.49
%
20

13

 
Nordstrom, Inc.
$
4,808,000

0.95
%
195,000

0.94
%
5

14

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

0.87
%
167,000

0.80
%
4

15

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

0.86
%
206,000

0.99
%
5

16

 
AMC Entertainment Inc.
$
4,276,000

0.84
%
229,000

1.10
%
5

17

 
Riverbed Technology, Inc.
$
3,837,000

0.76
%
83,000

0.40
%
2

18

 
Staples, Inc.
$
3,800,000

0.75
%
178,000

0.85
%
9

19

 
Ross Stores, Inc.
$
3,772,000

0.74
%
208,000

1.00
%
7

20

 
AB Acquisition LLC (Acme, Safeway)
$
3,648,000

0.72
%
404,000

1.94
%
8

21

 
Kroger Co., The
$
3,528,000

0.69
%
311,000

1.49
%
7

22

 
Sports Authority Inc., The
$
3,418,000

0.67
%
194,000

0.93
%
5

23

 
Wells Fargo Bank, N.A.
$
3,329,000

0.66
%
51,000

0.24
%
14

24

 
Dress Barn, Inc., The
$
3,293,000

0.65
%
133,000

0.64
%
19

25

 
PetSmart, Inc.
$
3,275,000

0.64
%
150,000

0.72
%
6

 
 
Totals - Top 25 Tenants
$
149,929,000

29.53
%
7,254,000

34.83
%
262

 
 
 
 
 
 
 
 
 
 
Total: (1)
$
507,765,000

(2)
20,825,000

(3)
2,689

 
 
 
 
 
 
 
 
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, 2015
(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, 2015
 
 
 
 
 
 
 
 
2015 Guidance
 
(Dollars in millions except
 
 per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
 
 
 
Net income
$
202

 
$
205

Net income attributable to noncontrolling interests
(8
)
 
(8
)
Gain on sale of real estate
(12
)
 
(12
)
Depreciation and amortization of real estate & joint venture real estate assets
154

 
154

Amortization of initial direct costs of leases
14

 
14

Funds from operations
350

 
353

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

 
3

Income attributable to unvested shares
(1
)
 
(1
)
FFO
$
352

 
$
355

Early extinguishment of debt, net of allocation to unvested shares
19

 
19

FFO excluding early extinguishment of debt
$
371

 
$
374

 
 
 
 
Weighted average number of common shares, diluted
70.1

 
70.1

 
 
 
 
FFO excluding early extinguishment of debt, per diluted share
$
5.29

 
$
5.33


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, 2015
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
CONSOLIDATED INCOME STATEMENTS
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
   Rental income
$
4,262

 
$
4,455

 
$
8,995

 
$
9,463

   Other property income
11

 
14

 
22

 
24

 
4,273

 
4,469

 
9,017

 
9,487

Expenses
 
 
 
 
 
 
 
   Rental
745

 
787

 
2,377

 
2,284

   Real estate taxes
497

 
603

 
994

 
1,216

   Depreciation and amortization
1,237

 
1,590

 
2,459

 
3,077

 
2,479

 
2,980

 
5,830

 
6,577

   Operating income
1,794

 
1,489

 
3,187

 
2,910

Interest expense
(517
)
 
(781
)
 
(1,036
)
 
(1,620
)
Net income
$
1,277

 
$
708

 
$
2,151

 
$
1,290

 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
 
 
 
 
 
2015
 
2014
 
 
 
(in thousands)
CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Real estate, at cost


 
 
 
$
188,179

 
$
187,507

  Less accumulated depreciation and amortization
 
 
 
 
(40,665
)
 
(38,304
)
Net real estate

 


 
147,514

 
149,203

Cash and cash equivalents
 
 
 
 
4,501

 
2,864

Other assets
 
 
 
 
5,709

 
5,346

TOTAL ASSETS


 


 
$
157,724

 
$
157,413

 
 
 
 
 
 
 
 
LIABILITIES AND PARTNERS' CAPITAL
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
    Mortgages payable
 
 
 
 
$
34,385

 
$
34,385

    Other liabilities
 
 
 
 
3,201

 
3,673

Total liabilities


 


 
37,586

 
38,058

Partners' capital
 
 
 
 
120,138

 
119,355

TOTAL LIABILITIES AND PARTNERS' CAPITAL


 


 
$
157,724

 
$
157,413




27



Federal Realty Investment Trust
Summary of Outstanding Debt and Debt Maturities - 30% Owned Joint Venture
June 30, 2015
 
 
 
Stated Interest Rate as of June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity
 
Balance
 
 
 
 
 
 
(in thousands)
 
 
Mortgage Loans
 
 
 
 
 
 
Secured Fixed Rate
 
 
 
 
 
 
Barcroft Plaza
7/1/2016
5.99
%
(a)
$
20,785

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

 
 
 
 
Total Fixed Rate Debt
 
 
$
34,385

 
 
 
 
 
 
 
 
 
 
Debt Maturities
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
Year

Scheduled Amortization
Maturities
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
2015

—

—

—

 
—
%
 
—
%
2016

—

34,385

34,385

 
100.0
%
 
100.0
%
Total

$
—

$
34,385

$
34,385

 
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, 2015
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
$
34,983

$
20,785

100,000

81
%
46,000

 
Harris Teeter
Bank of America
Free State Shopping Center
 
Washington, DC-MD-VA
2007
67,089


279,000

94
%
73,000

 
Giant Food
TJ Maxx / Ross Dress For Less / Office Depot
Plaza del Mercado
 
Washington, DC-MD-VA
2004
22,058


96,000

92
%

 

CVS
 
 
Total Washington Metropolitan Area

124,130


475,000

91
%

 


  New York / New Jersey
 
 
 
 
 
 
 
 
 
 
 
Greenlawn Plaza
 
Nassau-Suffolk, NY
2006
20,810

13,600

106,000

95
%
46,000

 
Waldbaum's
Tuesday Morning

 
Total New York / New Jersey

20,810


106,000

95
%

 


 New England
 
 
 
 
 
 
 
 
 
 
 
Atlantic Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
20,206


123,000

90
%
64,000

 
Stop & Shop

Campus Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
23,033


116,000

100
%
46,000

 
Roche Bros.
Burlington Coat Factory

 
Total New England

43,239


239,000

95
%

 
 
 
Grand Totals
 
 
 
$
188,179

$
34,385

820,000

93
%

 
 
 


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, 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, 2015 and 2014 is as follows:

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Net income
$
45,673

 
$
45,416

 
$
93,876

 
$
85,961

Depreciation and amortization
42,671

 
40,893

 
84,655

 
84,743

Interest expense
23,445

 
23,213

 
47,613

 
46,350

Early extinguishment of debt
19,072

 
—

 
19,072

 
—

Other interest income
(74
)
 
(18
)
 
(103
)
 
(43
)
EBITDA
130,787

 
109,504

 
245,113

 
217,011

Gain on sale of real estate
(11,509
)
 
—

 
(11,509
)
 
—

Adjusted EBITDA
$
119,278

 
$
109,504

 
$
233,604

 
$
217,011



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.

In addition to FFO, we have also included FFO excluding the "early extinguishment of debt" charge which relates to the early redemption of our 6.20% senior notes in 2015. We believe the unusual nature of this charge, being a make-whole payment on the remaining principal and interest on the redeemed notes, is worthy of separate evaluation and consequently have provided both relevant metrics.

Property Operating Income: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes.

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