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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) December 31, 2017
 
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 February 13, 2018, 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 December 31, 2017. 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 December 31, 2017 (including press release dated February 13, 2018)

    

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:
February 13, 2018
 
 /s/ Daniel Guglielmone
 
 
 
 
 
 
 
Daniel Guglielmone
 
 
 
Executive Vice President-
 
 
 
Chief Financial Officer and Treasurer




EXHIBIT INDEX


Exh No.    Exhibit                                    
99.1        Supplemental Information at December 31, 2017    




Exhibit


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
December 31, 2017
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Fourth Quarter and Full Year 2017 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Consolidated Income Statements
 
 
Consolidated Balance Sheets
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
Market Data
 
 
Components of Rental Income
 
 
Comparable Property Information
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Capital Lease Obligations
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Redevelopment Opportunities
 
 
 
 
5
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
6
Assembly Row and Pike & Rose Site Plans
 
 
 
 
7
Future Redevelopment Opportunities
 
 
 
 
8
2017 Significant Acquisitions and Dispositions
 
 
 
 
9
Real Estate Status Report
 
 
 
 
10
Retail Leasing Summary
 
 
 
 
11
Lease Expirations
 
 
 
 
12
Portfolio Leased Statistics
 
 
 
 
13
Summary of Top 25 Tenants
 
 
 
 
14
Reconciliation of FFO Guidance
 
 
 
 
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 13, 2018, 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 not perform as planned, 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 13, 2018.



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NEWS RELEASE
www.federalrealty.com
 
 
FOR IMMEDIATE RELEASE
 
 
 
Investor Inquiries:
Media Inquiries:
Leah Andress
Andrea Simpson
Investor Relations Associate
Vice President, Marketing
301.998.8265
617.684.1511
landress@federalrealty.com
asimpson@federalrealty.com

Federal Realty Investment Trust Announces Operating Results for the Year and Quarter Ended
December 31, 2017
- Reports 13% comparable lease rollover and 3.4% same-center POI growth for the year -
ROCKVILLE, Md. (February 13, 2018) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its year and quarter ended December 31, 2017. Highlights of the full year and quarter include:

•
Generated earnings per diluted share of $3.97 for the year compared to $3.50 in 2016. For the fourth quarter, generated earnings per diluted share of $0.67 compared to $0.80 for the fourth quarter 2016.
•
Generated FFO per diluted share of $5.74 for the year ($5.91 excluding prepayment premium) compared to $5.65 in 2016. For the fourth quarter, generated FFO per diluted share of $1.30 ($1.47 excluding prepayment premium) compared to $1.45 for the fourth quarter 2016.
•
Generated same-center property operating income growth of 3.4% for the year ended 2017. For the fourth quarter, same-center growth was 2.6%.
•
Signed leases for 300,511 sf of comparable space in the fourth quarter at an average rent of $34.75 psf and achieved cash basis rollover growth on those comparable spaces of 15%.
•
Introduced 2018 FFO per diluted share guidance range of $6.08 to $6.24.

"We remain focused on the future as we navigate through this transitional time in the retail real estate space,” said Donald C. Wood, President and Chief Executive Officer of Federal Realty. “Through thoughtful positioning of our portfolio over the last decade, there are more arrows in our quiver than ever before. Federal Realty is the only shopping center company to grow NAREIT-defined FFO year-over-year for the entirety of the current real estate cycle, and we remain confident that retail-based real estate in the best locations, with flexible formats and carefully created environments will be the future of retail and will thrive in the years to come.”


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Financial Results
For the full year 2017, Federal Realty reported net income available for common shareholders of $287.5 million and earnings per diluted share of $3.97. This compares to net income available for common shareholders of $249.4 million and earnings per diluted share of $3.50 for the full year 2016. Net income available for common shareholders was $48.6 million and earnings per diluted share was $0.67 for the fourth quarter 2017 versus $57.9 million and $0.80, respectively, for the fourth quarter 2016.
For the full year 2017, Federal Realty generated funds from operations available for common shareholders (FFO) of $420.0 million, or $5.74 per diluted share. Excluding the $12.3 million early extinguishment of debt charge in the fourth quarter 2017, FFO per diluted share for the full year 2017 would have been $5.91. This compares to FFO of $406.4 million, or $5.65 per diluted share, for the full year 2016. For the fourth quarter 2017, FFO was $95.5 million, or $1.30 per diluted share ($1.47 if the early extinguishment of debt charge was excluded), compared to $104.9 million, or $1.45 per diluted share for the fourth quarter 2016.
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
For the year 2017, same-center property operating income increased 3.4% when including properties that are being redeveloped and 0.7% when excluding those properties. In fourth quarter 2017, same-center property operating income increased 2.6% when including properties that are being redeveloped and 1.0% when excluding those properties. As anticipated, the Trust’s proactive releasing initiatives throughout the portfolio negatively impacted the year end and quarterly results.
The overall portfolio was 95.3% leased as of December 31, 2017, compared to 94.4% on December 31, 2016. Federal Realty’s same center portfolio was 96.3% leased on December 31, 2017, compared to 95.9% on December 31, 2016.
For the year 2017, Federal Realty signed 406 leases for 1.8 million square feet of retail space. On a comparable basis (i.e., spaces for which there was a former tenant), Federal Realty leased 1.6 million square feet at an average cash-basis contractual rent increase (i.e., excluding the impact of straight-line rents) of 13%. The average contractual rent on this comparable space for the first year of the new leases is $38.31 per square foot compared to the average contractual rent of $33.79 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 for comparable retail space averaged 26% for the year ended 2017.
During fourth quarter 2017, Federal Realty signed 91 leases for 344,768 square feet of retail space. On a comparable space basis, Federal Realty leased 300,511 square feet at an average cash basis contractual rent increase of 15% and 27% on a GAAP basis. The average contractual rent on this comparable space for the first year of the new leases is$34.75 per square foot compared to the average contractual rent of $30.19 per square foot for the last year of the prior leases.

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Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.00 per common share, resulting in an indicated annual rate of $4.00 per common share. The regular common dividend will be payable on April 16, 2018 to common shareholders of record as of March 14, 2018.
Federal Realty’s Board of Trustees also declared a quarterly cash dividend with respect to the Trust’s Series C Preferred Shares. All dividends on the preferred shares will be payable on April 16, 2018 to preferred shareholders of record as of April 2, 2018.

Summary of Other Quarterly Activities and Recent Developments
February 12, 2018 - Federal Realty announced promotions within its finance, operating and development Ranks. Melissa Solis was promoted to Senior Vice President - Chief Accounting Officer. Christian Fleming was promoted to Vice President - Asset Management. Patrick McMahon was promoted to Vice President - Development.
December 21, 2017 - Federal Realty issued $175 million aggregate principal amount of 3.25% senior unsecured notes due 2027. The notes were offered at 99.404% of the principal amount with a re-offer yield of 3.323%. The notes have the same terms and are of the same series as the notes that Federal Realty issued on June 23, 2017. Federal Realty has a total of $475 million of such notes outstanding. Federal Realty used the net proceeds from the offering to redeem all of its outstanding 5.90% Notes due 2020, incurring a $12.3 million prepayment charge, and for general corporate purposes.

Guidance
Federal Realty introduced 2018 guidance for FFO per diluted share of $6.08 to $6.24 and 2018 earnings per diluted share guidance of $3.01 to $3.17.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its fourth quarter and year end 2017 earnings conference call, which is scheduled for Wednesday, February 14, 2018 at 9:00AM ET. To participate, please call 877.445.3230 five to ten minutes prior to the call start time and use the passcode 5292449 (required). A replay of the webcast will be available on Federal Realty’s website at www.federalrealty.com. A telephonic replay of the conference call will also be available through February 21, 2018 by dialing 855.859.2056; Passcode: 5292449.

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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 104 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,300 residential units. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 50 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.

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 13, 2018, 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 not perform as planned, 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 13, 2018.

6


Federal Realty Investment Trust
Consolidated Income Statements
December 31, 2017
 
Three Months Ended

Year Ended
 
December 31,

December 31,
 
2017

2016

2017

2016
 
(in thousands, except per share data)
 
 
REVENUE
 
 
 
 
 
 
 
Rental income
$
220,720

 
$
200,871

 
$
841,461

 
$
786,583

Other property income
2,396

 
2,456

 
12,825

 
11,015

Mortgage interest income
841

 
782

 
3,062

 
3,993

Total revenue
223,957

 
204,109

 
857,348

 
801,591

EXPENSES
 
 
 
 
 
 
 
Rental expenses
45,403

 
39,941

 
164,890

 
158,326

Real estate taxes
28,735

 
24,122

 
107,839

 
95,286

General and administrative
10,268

 
8,121

 
36,281

 
33,399

Depreciation and amortization
56,394

 
48,448

 
216,050

 
193,585

Total operating expenses
140,800

 
120,632

 
525,060

 
480,596

OPERATING INCOME
83,157

 
83,477

 
332,288

 
320,995

Other interest income
222

 
89

 
475

 
374

Interest expense
(26,173
)
 
(23,851
)
 
(100,125
)
 
(94,994
)
Early extinguishment of debt
(12,273
)
 
—

 
(12,273
)
 
—

(Loss) income from real estate partnerships
(121
)
 
9

 
(417
)
 
50

INCOME FROM CONTINUING OPERATIONS
44,812

 
59,724

 
219,948

 
226,425

Gain on sale of real estate and change in control of interests, net
7,973

 
—

 
77,922

 
32,458

NET INCOME
52,785

 
59,724

 
297,870

 
258,883

     Net income attributable to noncontrolling interests
(2,129
)
 
(1,687
)
 
(7,956
)
 
(8,973
)
NET INCOME ATTRIBUTABLE TO THE TRUST
50,656

 
58,037

 
289,914

 
249,910

Dividends on preferred shares
(2,011
)
 
(135
)
 
(2,458
)
 
(541
)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$
48,645

 
$
57,902

 
$
287,456

 
$
249,369

EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.67

 
$
0.81

 
$
3.97

 
$
3.51

Weighted average number of common shares, basic
72,515

 
71,628

 
72,117

 
70,877

EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.67

 
$
0.80

 
$
3.97

 
$
3.50

Weighted average number of common shares, diluted
72,598

 
71,785

 
72,233

 
71,049



7


Federal Realty Investment Trust
Consolidated Balance Sheets
December 31, 2017
 
December 31,
 
2017
 
2016
 
(in thousands, except share and
 
per share data)
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $1,639,486 and $1,211,605 of consolidated variable interest entities, respectively)
$
6,950,188

 
$
6,125,957

Construction-in-progress (including $43,393 and $15,313 of consolidated variable interest entities, respectively)
684,873

 
599,260

Assets held for sale
—

 
33,856

 
7,635,061

 
6,759,073

Less accumulated depreciation and amortization (including $247,410 and $209,239 of consolidated variable interest entities, respectively)
(1,876,544
)
 
(1,729,234
)
Net real estate
5,758,517

 
5,029,839

Cash and cash equivalents
15,188

 
23,368

Accounts and notes receivable
209,877

 
116,749

Mortgage notes receivable, net
30,429

 
29,904

Investment in real estate partnerships
23,941

 
14,864

Prepaid expenses and other assets
237,803

 
208,555

TOTAL ASSETS
$
6,275,755

 
$
5,423,279

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Mortgages payable (including $460,372 and $439,120 of consolidated variable interest entities, respectively)
$
491,505

 
$
471,117

Capital lease obligations
71,556

 
71,590

Notes payable
320,265

 
279,151

Senior notes and debentures
2,401,440

 
1,976,594

Accounts payable and other liabilities
196,332

 
201,756

Dividends payable
75,931

 
71,440

Security deposits payable
16,667

 
16,285

Other liabilities and deferred credits
169,388

 
115,817

Total liabilities
3,743,084

 
3,203,750

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
141,157

 
143,694

Shareholders’ equity
 
 
 
Preferred shares, authorized 15,000,000 shares, $.01 par:
 
 
 
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 and 0 shares issued and outstanding, respectively
150,000

 
—

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding
9,997

 
9,997

Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 73,090,877 and 71,995,897 shares issued and outstanding, respectively
733

 
722

Additional paid-in capital
2,855,321

 
2,718,325

Accumulated dividends in excess of net income
(749,367
)
 
(749,734
)
Accumulated other comprehensive income (loss)
22

 
(2,577
)
Total shareholders’ equity of the Trust
2,266,706

 
1,976,733

Noncontrolling interests
124,808

 
99,102

Total shareholders’ equity
2,391,514

 
2,075,835

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
6,275,755

 
$
5,423,279


8


Federal Realty Investment Trust
Funds From Operations / Summary of Capital Expenditures
December 31, 2017
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
 
 
 
 
Net income
 
$
52,785

 
$
59,724

 
$
297,870

 
$
258,883

Net income attributable to noncontrolling interests
 
(2,129
)
 
(1,687
)
 
(7,956
)
 
(8,973
)
Gain on sale of real estate and change in control of interests, net
 
(7,973
)
 
—

 
(77,632
)
 
(31,133
)
Depreciation and amortization of real estate assets
 
49,607

 
42,392

 
188,719

 
169,198

Amortization of initial direct costs of leases
 
4,594

 
4,146

 
19,124

 
16,875

Funds from operations
 
96,884

 
104,575

 
420,125

 
404,850

Dividends on preferred shares (2)
 
(1,876
)
 
(135
)
 
(1,917
)
 
(541
)
Income attributable to operating partnership units
 
788

 
748

 
3,143

 
3,145

Income attributable to unvested shares
 
(310
)
 
(267
)
 
(1,374
)
 
(1,095
)
FFO (3)
 
$
95,486

 
$
104,921

 
$
419,977

 
$
406,359

Weighted average number of common shares, diluted (2)
 
73,481

 
72,549

 
73,122

 
71,869

FFO per diluted share (3)
 
$
1.30

 
$
1.45

 
$
5.74

 
$
5.65

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
92,963

 
$
133,136

 
$
419,471

 
$
428,669

Tenant improvements and incentives
 
13,413

 
10,206

 
44,632

 
34,610

Total non-maintenance capital expenditures
 
106,376

 
143,342

 
464,103

 
463,279

Maintenance capital expenditures
 
14,776

 
13,227

 
32,695

 
29,357

Total capital expenditures
 
$
121,152

 
$
156,569

 
$
496,798

 
$
492,636

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
73,052

 
$
70,512

 
287,006

 
$
274,402

 
 
 
 
 
 
 
 
 
Dividend payout ratio as a percentage of FFO (3)
 
77
%
 
67
%
 
68
%
 
68
%

Notes:
(1)
See Glossary of Terms.
(2)
For the three months and year ended December 31, 2017, dividends on our Series 1 preferred stock are not deducted in the calculation of FFO available to common shareholders, as the related shares are dilutive and included in "weighted average common shares, diluted."
(3)
If the $12.3 million early extinguishment of debt charge incurred in the fourth quarter of 2017 was excluded, our FFO, FFO per diluted share, and dividend payout ratio as a percentage of FFO would have been:

 
 
Three Months Ended
 
Year Ended
 
 
December 31, 2017
 
December 31, 2017
 
 
(in thousands, except per share data)
FFO
 
$
107,719

 
$
432,210

FFO per diluted share
 
$
1.47

 
$
5.91

Dividend payout ratio as a percentage of FFO
 
68
%
 
66
%


9


Federal Realty Investment Trust
Market Data
December 31, 2017
 
 
 
December 31,
 
 
 
2017
 
2016
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
73,879

 
72,760

 
Market price per common share
 
$
132.81

 
$
142.11

 
Common equity market capitalization including operating partnership units
 
$
9,811,870

 
$
10,339,924

 
 
 
 
 
 
 
Series C preferred shares outstanding
 
6

 
—

 
Liquidation price per Series C preferred share
 
$
25,000.00

 
$
—

 
Series C preferred equity market capitalization
 
$
150,000

 
$
—

 
 
 
 
 
 
 
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
 
$
9,971,870

 
$
10,349,924

 
 
 
 
 
 
 
Total debt (3)
 
3,284,766

 
2,798,452

 
 
 
 
 
 
 
Total market capitalization
 
$
13,256,636

 
$
13,148,376

 
 
 
 
 
 
 
Total debt to market capitalization
 
25
%
 
21
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations (4)
 
99
%
 
100
%
 
Variable rate debt
 
1
%
 
—
%
 
 
 
100
%

100
%
Notes:
1)
Amounts include 787,962 and 763,797 operating partnership units outstanding at December 31, 2017 and 2016, 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/discounts and debt issuance costs from our consolidated balance sheet.
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
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
 
(in thousands)
Minimum rents (1)
 
 
 
 
 
 
 
Retail and commercial
$
150,788

 
$
140,525

 
$
585,178

 
$
549,552

Residential
14,635

 
12,989

 
55,416

 
49,465

Cost reimbursements
46,531

 
39,038

 
171,528

 
158,042

Percentage rents
3,624

 
3,111

 
11,148

 
10,977

Other
5,142

 
5,208

 
18,191

 
18,547

Total rental income
$
220,720

 
$
200,871

 
$
841,461

 
$
786,583


Notes:
1)
Minimum rents include $1.6 million and $1.9 million for the three months ended December 31, 2017 and 2016, respectively, and $12.9 million and $8.1 million for the years ended December 31, 2017 and 2016, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $1.4 million and $0.6 million for the three months ended December 31, 2017 and 2016, respectively, and $4.7 million and $1.8 million for the years ended December 31, 2017 and 2016, respectively, to recognize income from the amortization of in-place leases.

11


Federal Realty Investment Trust
 
 
 
 
Comparable Property Information
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
The following information is being provided for “Comparable Properties.” Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets excluded from Comparable Properties in Q4 include: 500 Santana Row, Assembly Row - Phase 2, CocoWalk, Pike & Rose, The Point at Plaza El Segundo, The Shops at Sunset Place, Towson Residential, and all properties acquired or disposed of from Q4 2016 to Q4 2017. Comparable Property property operating income (“Comparable Property POI”) is a non-GAAP measure used by management in evaluating the operating performance of our properties period over period.
 
 
 
 
 
Reconciliation of GAAP operating income to Comparable Property POI
 
Three Months Ended
 
 
December 31,
 
 
2017
 
2016
 
 
(in thousands)
 
Operating Income
83,157

 
83,477

 
Add:
 
 
 
 
Depreciation and amortization
56,394

 
48,448

 
General and administrative
10,268

 
8,121

 
Property operating income (POI)
149,819

 
140,046

 
Less: Non-comparable POI - acquisitions/dispositions
(6,911
)
 
(1,002
)
 
Less: Non-comparable POI - redevelopment, development & other
(10,477
)
 
(8,844
)
 
Comparable Property POI
$
132,431

 
$
130,200

 
 
 
 
 
 
Additional information regarding the components of Comparable Property POI
 
Three Months Ended
 
 
December 31,
 
 
2017
 
2016
% Change
 
(in thousands)
 
Rental income
$
189,611

 
$
183,668

 
Non-rental income
2,314

 
2,505

 
 
191,925

 
186,173

 
 
 
 
 
 
Rental expenses
(36,034
)
 
(33,703
)
 
Real estate taxes
(23,460
)
 
(22,270
)
 
 
(59,494
)
 
(55,973
)
 
 
 
 
 
 
Comparable Property POI
$
132,431

 
$
130,200

1.7
%
 
 
 
 
 
Comparable Property POI as a percentage of total POI
88
%
 
93
%
 
 
 
 
 
 
Comparable Property - Occupancy Statistics (1)
 
At December 31,
 
 
2017
 
2016
 
GLA - comparable retail properties
21,048,000

 
21,034,000

 
Leased % - comparable retail properties
95.8
%
 
94.8
%
 
Occupancy % - comparable retail properties
94.2
%
 
93.7
%
 
 
 
 
 
 
Comparable Property - Summary of Capital Expenditures (2)
 
Three Months Ended
 
 
December 31,
 
 
2017
 
2016
 
 
(in thousands)
 
Redevelopment and tenant improvements and incentives
$
29,493

 
$
34,185

 
Maintenance capital expenditures
13,423

 
11,703

 
 
$
42,916

 
$
45,888

 
Notes:
 
(1)
See page 28 for entire portfolio occupancy statistics.
(2)
See page 9 for "Summary of Capital Expenditures" for our entire portfolio.

12


Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
December 31, 2017
 
 
As of December 31, 2017
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (3)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
The Grove at Shrewsbury (West)
3/1/2018
 
6.38%
 
$
10,545

 
 
 
 
 
 
Rollingwood Apartments
5/1/2019
 
5.54%
 
20,820

 
 
 
 
 
 
The Shops at Sunset Place
9/1/2020
 
5.62%
 
66,603

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
4,341

 
 
 
 
 
 
Sylmar Towne Center
6/6/2021
 
5.39%
 
17,362

 
 
 
 
 
 
Plaza Del Sol
12/1/2021
 
5.23%
 
8,579

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

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
71,054

 
 
 
 
 
 
Azalea
11/1/2025
 
3.73%
 
40,000

 
 
 
 
 
 
Bell Gardens
8/1/2026
 
4.06%
 
13,184

 
 
 
 
 
 
Plaza El Segundo
6/5/2027
 
3.83%
 
125,000

 
 
 
 
 
 
The Grove at Shrewsbury (East)
9/1/2027
 
3.77%
 
43,600

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

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
6,268

 
 
 
 
 
 
Subtotal
 
 
 
 
491,561

 
 
 
 
 
 
Net unamortized premium and debt issuance costs
 
 
 
(56
)
 
 
 
 
 
 
Total mortgages payable
 
 
 
 
491,505

 
 
 
4.11
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Term Loan (1)
11/21/2018
 
LIBOR + 0.90%
 
275,000

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
4,819

 
 
 
 
 
 
Unsecured variable rate
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility (2)
4/20/2020
 
LIBOR + 0.825%
 
41,000

 
 
 
 
 
 
Subtotal
 
 
 
 
320,819

 
 
 
 
 
 
Net unamortized debt issuance costs
 
 
 
(554
)
 
 
 
 
 
 
Total notes payable
 
 
 
 
320,265

 
 
 
2.90
%
(4)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
2.55% notes
1/15/2021
 
2.55%
 
250,000

 
 
 
 
 
 
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

 
 
 
 
 
 
3.25% notes
7/15/2027
 
3.25%
 
475,000

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

 
 
 
 
 
 
4.50% notes
12/1/2044
 
4.50%
 
550,000

 
 
 
 
 
 
3.625% notes
8/1/2046
 
3.625%
 
250,000

 
 
 
 
 
 
Subtotal
 
 
 
 
2,419,200

 
 
 
 
 
 
Net unamortized discount and debt issuance costs
 
 
 
(17,760
)
 
 
 
 
 
 
Total senior notes and debentures
 
 
 
2,401,440

 
 
 
3.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,556

 
 
 
8.04
%
 
Total debt and capital lease obligations
 
 
 
 
$
3,284,766

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and capital lease obligations
 
 
 
$
3,243,766

 
99
%
 
3.84
%
 
Total variable rate debt
 
 
 
41,000

 
1
%
 
2.39
%
(4)
Total debt and capital lease obligations
 
 
 
$
3,284,766

 
100
%
 
3.82
%
(4)

13


 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
2016
 
2017
2016
Operational Statistics
 
 
 
 
 
Excluding early extinguishment of debt:
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (5)(6)
4.13x
4.45x
 
4.84x
4.76x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (5)(6)
3.93x
4.45x
 
4.22x
4.48x
Including early extinguishment of debt:
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (5)
3.08x
4.45x
 
4.42x
4.76x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (5)
2.92x
4.45x
 
3.86x
4.48x

Notes:
1)
Our $275.0 million term loan is subject to a one year extension, at our option, which would extend the maturity date to November 21, 2019. We also 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.
2)
The maximum amount drawn under our revolving credit facility during the three months and year ended December 31, 2017 was $123.0 million and $344.0 million, respectively. The weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, for the three months and year ended December 31, 2017 was 2.1% and 1.9%, respectively.
3)
The weighted average effective interest rate includes the amortization of any debt issuance costs and discounts and premiums if applicable, except as described in Note 4.
4)
The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and debt fee amortization on our revolving credit facility which had $41.0 million outstanding on December 31, 2017. 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 1. The term loan is included in fixed rate debt.
5)
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 gain on sale of real estate and change in control of interests of $7.4 million and $79.3 million for the three months and year ended December 31, 2017, respectively, and $32.5 million for the year ended December 31, 2016. Adjusted EBITDA is reconciled to net income in the Glossary of Terms.
6)
Fixed charges for the three months and year ended December 31, 2017 exclude the $12.3 million early extinguishment of debt charge related to the make-whole premium paid as part of the early redemption of the 5.90% senior notes in the fourth quarter of 2017.

14


Federal Realty Investment Trust
Summary of Debt Maturities
December 31, 2017
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (4)
 
 
(in thousands)
 
 
 
 
 
 
 
2018
$
6,273

 
$
285,502

(1)
$
291,775

 
8.8
%
 
8.8
%
 
2.9
%
 
2019
6,265

 
20,160

 
26,425

 
0.8
%
 
9.6
%
 
5.7
%
 
2020
5,616

 
101,593

(2)
107,209

 
3.3
%
 
12.9
%
 
3.3
%
(5)
2021
3,740

 
277,546

 
281,286

 
8.5
%
 
21.4
%
 
2.9
%
 
2022
1,522

 
366,323

 
367,845

 
11.1
%
 
32.5
%
 
3.5
%
 
2023
1,550

 
330,010

 
331,560

 
10.1
%
 
42.6
%
 
3.9
%
 
2024
1,333

 
300,000

 
301,333

 
9.1
%
 
51.7
%
 
4.2
%
 
2025
904

 
40,000

 
40,904

 
1.3
%
 
53.0
%
 
3.9
%
 
2026
688

 
39,886

 
40,574

 
1.2
%
 
54.2
%
 
6.6
%
 
2027
573

 
683,600

 
684,173

 
20.7
%
 
74.9
%
 
3.8
%
 
Thereafter
18,552

 
811,500

 
830,052

 
25.1
%
 
100.0
%
 
4.3
%
 
Total
$
47,016

 
$
3,256,120

 
$
3,303,136

(3)
100.0
%
 
 
 
 
 
Notes:
1)
Our $275.0 million unsecured term loan matures on November 21, 2018, subject to a one-year extension at our option.
2)
Our $800.0 million revolving credit facility matures on April 20, 2020, subject to two six-month extensions at our option. As of December 31, 2017, there was $41.0 million outstanding balance under this credit facility.
3)
The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net premium/discount and debt issuance costs on certain mortgage loans, note payable, and senior notes as of December 31, 2017.
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 debt fee amortization on our revolving credit facility.



15


Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
 
 
Projected
Projected
Cost to
Anticipated
Property
Location
Opportunity
ROI (2)
Cost (1)
Date
Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
Projects Stabilized in 2017
 
 
 
 
The Point
El Segundo, CA
Addition of 90,000 square feet of retail and 25,000 square feet of office space
7
%
$88
$87
Stabilized
Tower Shops
Davie, FL
Addition of 50,000 square foot pad building
12
%
$15
$14
Stabilized
Plaza Del Mercado
Silver Spring, MD
Demolition of former grocery anchor space to construct spaces for new grocery anchor and fitness center tenants
8
%
$15
$15
Stabilized
Santana Row
San Jose, CA
Addition of two retail kiosks and open air plaza upgrades
8
%
$5
$5
Stabilized
The AVENUE at White Marsh
White Marsh, MD
Addition of two new pad sites totaling 13,000 square feet, a new 3,600 square foot restaurant building, and a drive up ATM
13
%
$4
$4
Stabilized
Free State Shopping Center
Bowie, MD
Demolition of 26,000 square foot vacant building to allow for construction of new 12,500 square foot pad building for new daycare tenant
8
%
$4
$4
Stabilized
Eastgate Crossing
Chapel Hill, NC
New 7,400 square foot multi-tenant pad building on site of existing gas station
9
%
$3
$3
Stabilized
Total Projects Stabilized in 2017 (3) (4)
8
%
$134
$132
 
 
 
 
 
 
Active Redevelopment Projects
 
 
 
 
Cocowalk
Coconut Grove, FL
Shopping center redevelopment to include demolition of three story east wing of the property and construction of a 77,000 square foot 5-story office building with an additional 13,000 square feet of ground floor retail
6%-7%

$73 - $77
$9
2020
Towson Residential
Towson, MD
New 105 unit 5-story apartment building with above grade parking
6
%
$20
$20
2018
Del Mar Village
Boca Raton, FL
Demolition of small shop spaces and relocation of tenants to accommodate new 37,000 square foot fitness center tenant
7
%
$11
$6
2018
Montrose Crossing
Rockville, MD
Demolition of 10,000 square foot restaurant building to construct an 18,000 square foot multi-tenant pad building
11
%
$10
$6
2018
Willow Lawn
Richmond, VA
Demolition of small shop and mini anchor spaces to construct new 49,000 square foot anchor space to accommodate new sporting goods retailer and new 17,000 square foot building for relocation of existing tenant
7
%
$10
$4
2018
Pike 7 Plaza
Vienna, VA
Addition of 8,300 square foot multi-tenant retail pad building
7
%
$10
$5
2019
Mercer Mall
Lawrenceville, NJ
Redevelopment of recently acquired office building pre-leased to a single tenant user
7
%
$9
$5
2018
Wildwood
Bethesda, MD
4,900 square foot south end building expansion and site improvements
7
%
$6
$1
2019
Dedham Plaza
Dedham, MA
New 4,000 square foot pad site for restaurant tenant
8
%
$2
$2
2018
Willow Lawn
Richmond, VA
Conversion of vacant 5,000 square foot pad building to retail use to accommodate new 3,500 square foot fast casual restaurant tenant. Remainder of pad building to be demolished to construct new 2,200 square foot Starbucks pad site
8
%
$2
$0
2019
Total Active Redevelopment projects (4)
7
%
$153 - $157
$58
 
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 generally the year in which 95% physical occupancy of the redeveloped space is achieved. Economic stabilization may occur at a later point in time.
(4)
All subtotals and totals reflect cost weighted-average ROIs.

16


Federal Realty Investment Trust
 
 
 
 
 
 
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected POI Delivered
 
 
 
 
 
 
 
 
 
 
 
(as a % of Total)
 
 
 
 
 
 
Projected
 
Total
Costs to
 
For Year Ended December 31, (2)
 
 
Property (1)
Location
Opportunity
 
ROI (3)
 
Cost (4)
Date
 
2018
2019
 
Expected Opening Timeframe
 
 
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
Assembly Row
Somerville, MA
 
 
 
 
 
 
 
 
 
 
 
Phase II
 
 - 161,000 SF of retail
 
7%
 (5)
$280 - 295
$274
 
50%
90%
 
49,000 square feet of retail has opened, remaining tenants projected to open through 2018
 
 
 - 447 residential units
 
 
 
 
 
 
 
 
 
 
 
 - 158 boutique hotel rooms
 
 
 
 
 
 
 
 
 
Residential building opened in September 2017 with deliveries expected through 2Q 2018.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
741,500 SF Partners Healthcare office space (built by Partners) opened in 2016
 
 
 - 122 for-sale condominium units
 
—
 (6)
$74 - 79
$64
 
 
 
 
Projected closings to commence 2Q 2018
Future Phases
 
 - 2M SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 826 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose
North Bethesda, MD
 
 
 
 
 
 
 
 
 
 
 
Phase I
 
 - 159,000 SF of retail
 
6-7%

$270
Complete
 
95%
100%
 
Retail & office open
 
 
 - 80,000 SF of office
 
 
 
 
 
 
 
 
 
Residential opened in 2014 (174 units) and
 
 
 - 493 residential units
 
 
 
 
 
 
 
 
 
2015/16 (319 units)
Phase II
 
 - 216,000 SF of retail
 
6-7%
 (5)
$200 - 207
$180
 
60%
85%
 
151,000 square feet of retail has opened, remaining tenants projected to open through 2018
 
 
 - 272 residential units
 
 
 
 
 
 
 
 
 
 
 
 - 177 boutique hotel rooms
 
 
 
 
 
 
 
 
 
Residential building opened in August 2017 with deliveries expected through 2Q 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 99 for-sale condominium units
 
—
 (6)
$53 - 58
$54
 
 
 
 
Projected closings to commence 2Q 2018
Future Phases
 
 - 1M SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 741 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Santana Row
San Jose, CA
 
 
 
 
 
 
 
 
 
 
 
700 Santana Row
 
 - 284,000 SF of office
 
7%
 
$205 - 215
$61
 
—
TBD
 
Commenced construction 4Q 2016
 
 
 - 29,000 SF of retail & 1,300 parking spaces
 
 
 
 
 
 
 
 
Opening projected 2019
Future Phases
 
 - 321,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 
 - 395 residential units
 
 
 
 
 
 
 
 
 
 

Notes:
(1)
Anticipated opening dates, total cost, projected return on investment (ROI), and projected POI percentages 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)
Percentage figures reflect (i) the projected POI (herein defined) for the stated year divided by (ii) the current projected annual stabilized POI for the Property. These percentages are projections only and we cannot give any assurances that these amounts will actually be achieved.
(3)
Projected ROI for development projects reflects the unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(4)
Projected costs for Assembly Row and Pike & Rose include an allocation of infrastructure costs for the entire project.
(5)
Costs are net of expected reimbursement by third parties and land sale proceeds. Phase II total costs include our share of the costs in the hotel.
(6)
Condominiums shown at cost; the projected ROI for Phase II does not assume any incremental profit on the sale of condominium units; for return calculation purposes, condominiums are assumed to be sold at cost.

17


Federal Realty Investment Trust
Assembly Row Site Plan
December 31, 2017
https://cdn.kscope.io/a7b47fd624d81a197884cae8f0e5e33f-arowsiteplan3q17.jpg

18


Federal Realty Investment Trust
Pike & Rose Site Plan
December 31, 2017https://cdn.kscope.io/a7b47fd624d81a197884cae8f0e5e33f-pikenrose4q21.jpg


19


Federal Realty Investment Trust
Future Redevelopment Opportunities
December 31, 2017
 
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.
 
Escondido Promenade
Escondido, CA
 
Melville Mall
Huntington, NY
 
 
Federal Plaza
Rockville, MD
 
Mercer Mall
Lawrenceville, NJ
 
 
Flourtown
Flourtown, PA
 
Pan Am
Fairfax, VA
 
 
Fresh Meadows
Queens, NY
 


 
 


 


 
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into more productive uses for the property.
 
Barracks Road
Charlottesville, VA
 
Fresh Meadows
Queens, NY
 
 
Bethesda Row
Bethesda, MD
 
Hastings Ranch Plaza
Pasadena, CA
 
 
Brick Plaza
Brick, NJ
 
Northeast
Philadelphia, PA
 
 
Crossroads
Highland Park, IL
 
Riverpoint Center
Chicago, IL
 
 
Darien
Darien, CT
 
The Shops at Sunset Place
South Miami, FL
 
 
Dedham Plaza
Dedham, MA
 
Third Street Promenade
Santa Monica, CA
 
 
Fourth Street
Berkeley, CA
 
Wildwood
Bethesda, MD
 
 


 


 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Graham Park Plaza
Falls Church, VA
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Village at Shirlington
Arlington, 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 826 residential units.
(2)
Pike & Rose
Remaining entitlements after Phase II include 1 million square feet of commercial-use buildings and 741 residential units.
(3)
Santana Row
Remaining entitlements include approximately 321,000 square feet of commercial space and 395 residential units.

20


Federal Realty Investment Trust
 
2017 Significant Acquisitions and Dispositions
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 Significant Acquisitions 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Date
 
Property
 
City/State
 
GLA
 
Purchase Price
 
Principal Tenants
 
 
 
 
 
 
 
(in square feet)
 
(in millions)
 
 
 
February 1, 2017
 
Hastings Ranch Plaza
 
Pasadena, California
 
274,000
 
$
29.5

 
Marshalls / HomeGoods / CVS / Sears
(1)
March 31, 2017
 
Riverpoint Center
 
Chicago, Illinois
 
211,000
 
$
107.0

 
Jewel Osco / Marshalls / Old Navy
 
May 19, 2017
 
Fourth Street
 
Berkeley, California
 
71,000
 
$
23.9

 
CB2 / Ingram Book Group
(2)
(1)
We acquired the leasehold interest in Hastings Ranch Plaza. The land is controlled under a long-term ground lease that expires on April 30, 2054.
(2)
The acquisition was completed through a newly formed entity for which we own a 90% interest.

On August 2, 2017, we acquired an approximately 90% interest in a joint venture that owns six shopping centers in Los Angeles County, California based on a gross value of $357 million, including the assumption of $79.4 million of mortgage debt. That joint venture also acquired a 24.5% interest in La Alameda, a shopping center in Walnut Park, California for $19.8 million. The property has $41.0 million of mortgage debt, of which the joint venture's share is approximately $10 million. Additional information on the properties is listed below:
Property
 
City/State
 
GLA
 
 
 
 
 
(in square feet)
 
Azalea
 
South Gate, CA
 
222,000
Marshalls / Ross Dress for Less / Ulta / CVS
Bell Gardens
 
Bell Gardens, CA
 
330,000
Marshalls / Ross Dress for Less / Petco / Food4Less
La Alameda
 
Walnut Park, CA
 
245,000
Marshalls / Ross Dress for Less / CVS / Petco
Olivo at Mission Hills (1)
 
Mission Hills, CA
 
155,000
Target / 24 Hour Fitness / Ross Dress for Less (Pre-leased)
Plaza Del Sol
 
South El Monte, CA
 
48,000
Marshalls / Starbucks
Plaza Pacoima
 
Pacoima, CA
 
204,000
Costco / Best Buy
Sylmar Towne Center
 
Sylmar, CA
 
148,000
CVS / Food4Less
 
 
 
 
1,352,000
 
 
 
 
 
 
 
(1) Property is currently being redeveloped. GLA reflects approximate square footage once the property is fully open and operating. Approximately 105,000 square feet is currently occupied.

2017 Significant Dispositions
On April 4, 2017 and June 28, 2017, the sale transactions at our Assembly Row property in Somerville, Massachusetts related to the purchase options on our Partners HealthCare and AvalonBay ground lease parcels, respectively, closed. The total sales price was $53.3 million, which resulted in a gain of $15.4 million. During the third quarter of 2017, the following sale transactions closed:
Date
Property
City/State
GLA
Sales Price
Total Gain
 
 
 
(in square feet)
(in millions)
(in millions)
August 25, 2017
150 Post Street
San Francisco, California
105,000
$
69.3

$
45.2

September 25, 2017
North Lake Commons
Lake Zurich, Illinois
129,000
$
15.6

$
4.9


21


Federal Realty Investment Trust
Real Estate Status Report
December 31, 2017
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
GLA (2)
% Leased (2)
% Occupied (2)
Average Rent PSF (3)
Residential Units
 Grocery Anchor GLA
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
  Washington Metropolitan Area












Barcroft Plaza

Washington, DC-MD-VA
$
45,499



10

115,000

90
%
88
%

$24.18


46,000

Harris Teeter

Bethesda Row

Washington, DC-MD-VA
226,074


17

534,000

96
%
96
%
51.05

180

40,000

Giant Food
Apple / Equinox / Multiple Restaurants
Congressional Plaza
(4)
Washington, DC-MD-VA
102,321


21

325,000

98
%
97
%
41.07

194

25,000

The Fresh Market
Buy Buy Baby / Saks Fifth Avenue Off 5th / Container Store / Last Call Studio by Neiman Marcus
Courthouse Center

Washington, DC-MD-VA
5,151


2

36,000

66
%
66
%
23.08





Falls Plaza/Falls Plaza-East

Washington, DC-MD-VA
14,011


10

144,000

94
%
94
%
35.09


51,000

Giant Food
CVS / Staples
Federal Plaza

Washington, DC-MD-VA
69,880


18

249,000

99
%
99
%
36.50


14,000

Trader Joe's
TJ Maxx / Micro Center / Ross Dress For Less
Free State Shopping Center

Washington, DC-MD-VA
64,777


29

264,000

92
%
92
%
17.57


73,000

Giant Food
TJ Maxx / Ross Dress For Less / Office Depot
Friendship Center

Washington, DC-MD-VA
38,115



1

119,000

100
%
100
%
29.71




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

Washington, DC-MD-VA
27,440


16

207,000

96
%
96
%
27.98




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

Washington, DC-MD-VA
35,207


19

260,000

89
%
89
%
26.40


58,000

Giant Food
CVS / Stein Mart
Idylwood Plaza

Washington, DC-MD-VA
16,913



7

73,000

95
%
95
%
47.24


30,000

Whole Foods

Laurel

Washington, DC-MD-VA
57,327


26

389,000

87
%
87
%
22.54


61,000

Giant Food
Marshalls / L.A. Fitness
Leesburg Plaza

Washington, DC-MD-VA
36,488



26

236,000

93
%
93
%
22.80


55,000

Giant Food
Petsmart / Gold's Gym / Office Depot
Montrose Crossing
(4)
Washington, DC-MD-VA
160,121

71,054

36

364,000

94
%
94
%
30.33


73,000

Giant Food
Marshalls / Old Navy / Barnes & Noble / Bob's Discount Furniture
Mount Vernon/South Valley/7770 Richmond Hwy
(6)
Washington, DC-MD-VA
84,701


29

570,000

95
%
95
%
17.91


62,000

Shoppers Food Warehouse
TJ Maxx / Home Depot / Bed, Bath & Beyond / Results Fitness
Old Keene Mill

Washington, DC-MD-VA
7,848



10

92,000

97
%
94
%
39.08


24,000

Whole Foods
Walgreens / Planet Fitness
Pan Am

Washington, DC-MD-VA
29,233


25

227,000

100
%
98
%
25.37


65,000

Safeway
Micro Center / CVS / Michaels
Pentagon Row

Washington, DC-MD-VA
103,324


14

299,000

87
%
86
%
36.25


45,000

Harris Teeter
TJ Maxx / Bed, Bath & Beyond / DSW
Pike & Rose
(5)
Washington, DC-MD-VA
585,290



24

402,000

98
%
98
%
36.81

690



iPic Theater / Porsche / H & M / REI / Pinstripes / Multiple Restaurants
Pike 7 Plaza

Washington, DC-MD-VA
44,698


13

164,000

100
%
100
%
46.10




TJ Maxx / DSW / Crunch Fitness / Staples
Plaza del Mercado

Washington, DC-MD-VA
46,187


10

117,000

93
%
93
%
30.30


18,000

Aldi
CVS / L.A. Fitness
Quince Orchard

Washington, DC-MD-VA
38,918



16

267,000

96
%
96
%
23.21


19,000

Aldi
HomeGoods / L.A. Fitness / Staples
Rockville Town Square
(7)
Washington, DC-MD-VA
51,102

4,455

12

187,000

94
%
92
%
27.93


25,000

Dawson's Market
CVS / Gold's Gym / Multiple Restaurants
Rollingwood Apartments

Washington, DC-MD-VA
10,786

20,820

14

N/A

97
%
95
%
N/A

282




Sam's Park & Shop

Washington, DC-MD-VA
12,838


1

49,000

88
%
83
%
45.02




Petco
Tower Shopping Center

Washington, DC-MD-VA
21,928



12

112,000

88
%
88
%
25.73


26,000

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

Washington, DC-MD-VA
4,666



5

50,000

87
%
87
%
46.32


11,000

Trader Joe's

Village at Shirlington
(7)
Washington, DC-MD-VA
64,987

6,646

16

266,000

90
%
90
%
38.57


28,000

Harris Teeter
AMC / Carlyle Grand Café
Wildwood

Washington, DC-MD-VA
20,463


12

83,000

98
%
98
%
99.04


20,000

Balducci's
CVS
Total Washington Metropolitan Area
2,026,293


451

6,200,000

94
%
94
%
32.64



















  California


















Azalea
(4)
Los Angeles-Long Beach-Anaheim, CA
107,340

40,000

22

222,000

100
%
100
%
27.43




Marshalls / Ross Dress for Less / Ulta / CVS
Bell Gardens
(4)
Los Angeles-Long Beach-Anaheim, CA
100,650

13,184

29

330,000

100
%
100
%
20.37


67,000

Food 4 Less
Marshalls / Ross Dress for Less / Petco
Colorado Blvd

Los Angeles-Long Beach-Anaheim, CA
19,517


1

69,000

100
%
100
%
45.04




Pottery Barn / Banana Republic
Crow Canyon Commons

San Ramon, CA
90,345


22

241,000

94
%
94
%
28.16


32,000

Sprouts
Orchard Supply Hardware / Rite Aid / Total Wine & More
East Bay Bridge

San Francisco-Oakland-Fremont, CA
178,886


32

439,000

100
%
100
%
18.42


59,000

Pak-N-Save
Home Depot / Target / Nordstrom Rack

22


Federal Realty Investment Trust
Real Estate Status Report
December 31, 2017
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
GLA (2)
% Leased (2)
% Occupied (2)
Average Rent PSF (3)
Residential Units
 Grocery Anchor GLA
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
Escondido Promenade
(4)
San Diego, CA
49,476


18

299,000

99
%
99
%
25.29




TJ Maxx / Dick’s Sporting Goods / Ross Dress For Less / Toys R Us
Fourth Street
(4)
San Francisco-Oakland-San Jose, CA
23,876


3

71,000

55
%
55
%
28.14




CB2 / Ingram Book Group
Hastings Ranch Plaza

Los Angeles-Long Beach-Anaheim, CA
22,629


15

273,000

98
%
98
%
7.21




Marshalls / HomeGoods / CVS / Sears
Hermosa Avenue

Los Angeles-Long Beach-Anaheim, CA
6,044


<1

23,000

81
%
81
%
49.18





Hollywood Blvd

Los Angeles-Long Beach-Anaheim, CA
46,939


3

180,000

91
%
91
%
30.01




Marshalls / DSW / L.A. Fitness / La La Land
Kings Court
(6)
San Jose, CA
11,668


8

80,000

100
%
100
%
32.55


31,000

Lunardi's Super Market
CVS
Old Town Center

San Jose, CA
37,182


8

98,000

99
%
99
%
41.40




Anthropologie / Banana Republic / Gap
Olivo at Mission Hills
(4) (9)
Los Angeles-Long Beach-Anaheim, CA
72,138


12

105,000

100
%
100
%
30.05




Target / 24 Hour Fitness / Fallas Stores
Plaza Del Sol
(4)
Los Angeles-Long Beach-Anaheim, CA
17,936

8,579

4

48,000

100
%
100
%
23.01




Marshalls
Plaza Pacoima
(4)
Los Angeles-Long Beach-Anaheim, CA
50,365


18

204,000

99
%
99
%
14.33




Costco / Best Buy
Plaza El Segundo / The Point
(4)
Los Angeles-Long Beach-Anaheim, CA
281,020

125,000

50

495,000

95
%
94
%
44.71


66,000

Whole Foods
Anthropologie / HomeGoods / Dick's Sporting Goods / Multiple Restaurants
Santana Row

San Jose, CA
862,233


45

885,000

98
%
98
%
52.42

662



Crate & Barrel / H&M / Container Store / Multiple Restaurants
San Antonio Center
(6)
San Francisco-Oakland-San Jose, CA
73,720


33

376,000

97
%
96
%
13.74


11,000

Trader Joe's
Wal-mart / Kohl's / 24 Hour Fitness
Sylmar Towne Center
(4)
Los Angeles-Long Beach-Anaheim, CA
43,534

17,362

12

148,000

91
%
91
%
14.56


43,000

Food 4 Less
CVS
Third Street Promenade

Los Angeles-Long Beach-Anaheim, CA
78,663


2

209,000

98
%
92
%
79.66




Banana Republic / Old Navy / J. Crew / Abercrombie & Fitch
Westgate Center

San Jose, CA
153,329


44

647,000

99
%
93
%
17.78


38,000

Walmart Neighborhood Market
Target / Nordstrom Rack / Nike Factory / Burlington


Total California
2,327,490


381

5,442,000

97
%
96
%
30.51
























  NY Metro/New Jersey


















Brick Plaza

New York-Northern New Jersey-Long Island, NY-NJ-PA
76,472


46

422,000

77
%
64
%
21.40




AMC / Barnes & Noble / Ulta / DSW
Brook 35
(4) (6)
New York-Northern New Jersey-Long Island, NY-NJ-PA
47,526

11,500

11

98,000

99
%
99
%
36.09




Banana Republic / Gap / Coach / Williams-Sonoma
Darien

New Haven-Bridgeport-Stamford-Waterbury
49,973


9

95,000

96
%
96
%
28.47


45,000

Stop & Shop
Equinox
Fresh Meadows

New York, NY
90,275


17

404,000

99
%
98
%
32.35


15,000

Island of Gold
AMC / Kohl's / Michaels
Greenlawn Plaza

Nassau-Suffolk, NY
31,704


13

106,000

96
%
96
%
18.07


46,000

Greenlawn Farms
Tuesday Morning
Greenwich Avenue

New Haven-Bridgeport-Stamford-Waterbury
14,127


1

36,000

100
%
100
%
70.15




Saks Fifth Avenue
Hauppauge

Nassau-Suffolk, NY
29,071


15

134,000

100
%
100
%
28.72


61,000

Shop Rite
A.C. Moore
Huntington

Nassau-Suffolk, NY
47,346


21

279,000

99
%
99
%
25.36




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

Nassau-Suffolk, NY
12,181


18

74,000

85
%
85
%
27.96




Barnes & Noble
Melville Mall

Nassau-Suffolk, NY
88,600


21

251,000

95
%
95
%
26.14


53,000

Uncle Giuseppe's Marketplace
Marshalls / Dick's Sporting Goods / Field & Stream / Macy's Backstage

23


Federal Realty Investment Trust
Real Estate Status Report
December 31, 2017
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
GLA (2)
% Leased (2)
% Occupied (2)
Average Rent PSF (3)
Residential Units
 Grocery Anchor GLA
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
Mercer Mall
(7)
Trenton, NJ
126,742

55,548

50

530,000

98
%
98
%
24.71


75,000

Shop Rite
TJ Maxx / Nordstrom Rack / Bed, Bath & Beyond / REI
The Grove at Shrewsbury
(4) (6)
New York-Northern New Jersey-Long Island, NY-NJ-PA
125,017

54,145

21

193,000

98
%
98
%
46.49




Lululemon / Anthropologie / Pottery Barn / Williams-Sonoma
Troy

Newark, NJ
36,743


19

211,000

99
%
98
%
22.45




L.A. Fitness / Michaels

Total NY Metro/New Jersey
775,777


262

2,833,000

95
%
93
%
28.34

























  Philadelphia Metropolitan Area
















Andorra

Philadelphia, PA-NJ
25,939


22

264,000

89
%
89
%
14.82


24,000

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

Philadelphia, PA-NJ
41,474


23

294,000

100
%
100
%
24.84


45,000

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

Philadelphia, PA-NJ
34,548



28

268,000

93
%
93
%
16.35


47,000

Whole Foods
Buy Buy Baby / Stein Mart
Flourtown

Philadelphia, PA-NJ
16,954


24

156,000

99
%
99
%
22.05


75,000

Giant Food
Movie Tavern
Langhorne Square

Philadelphia, PA-NJ
22,126


21

227,000

98
%
98
%
16.90


55,000

Redner's Warehouse Mkts.
Marshalls / Planet Fitness
Lawrence Park

Philadelphia, PA-NJ
35,165


29

374,000

97
%
97
%
20.85


53,000

Acme Markets
TJ Maxx / HomeGoods / Barnes & Noble
Northeast

Philadelphia, PA-NJ
30,427


19

288,000

85
%
85
%
13.68




Marshalls / Burlington / Ulta / A.C. Moore
Town Center of New Britain

Philadelphia, PA-NJ
15,246



17

124,000

90
%
90
%
10.07


36,000

Giant Food
Rite Aid / Dollar Tree
Willow Grove

Philadelphia, PA-NJ
30,257


13

211,000

96
%
96
%
19.28




Marshalls / HomeGoods / Barnes & Noble
Wynnewood

Philadelphia, PA-NJ
42,906


14

251,000

100
%
100
%
27.83


98,000

Giant Food
Bed, Bath & Beyond / Old Navy / DSW
Total Philadelphia Metropolitan Area
295,042


210

2,457,000

95
%
95
%
19.32





 
 
 
 
 
 
 
 
 
 
 
 
 
 
  New England


















Assembly Row / Assembly Square Marketplace
(5)
Boston-Cambridge-Quincy, MA-NH
691,525


65

810,000

99
%
92
%
24.97

141

18,000

Trader Joe's
TJ Maxx / AMC / LEGOLAND Discovery Center / Multiple Restaurants & Outlets
Atlantic Plaza

Boston-Worcester-Lawrence-Lowell-Brockton, MA
25,727


13

123,000

96
%
96
%
16.43


64,000

Stop & Shop

Campus Plaza

Boston-Worcester-Lawrence-Lowell-Brockton, MA
30,551


15

116,000

98
%
98
%
16.13


46,000

Roche Bros.
Burlington
Chelsea Commons

Boston-Cambridge-Quincy, MA-NH
42,898

6,268

37

222,000

99
%
99
%
12.32

56



Home Depot / Planet Fitness
Dedham Plaza

Boston-Cambridge-Quincy, MA-NH
41,076


19

241,000

96
%
91
%
16.75


80,000

Star Market
Planet Fitness
Linden Square

Boston-Cambridge-Quincy, MA-NH
148,703


19

223,000

96
%
96
%
48.82



50,000

Roche Bros.
CVS
North Dartmouth

Boston-Cambridge-Quincy, MA-NH
9,369


28

48,000

100
%
100
%
15.31



48,000

Stop & Shop

Queen Anne Plaza

Boston-Cambridge-Quincy, MA-NH
18,295


17

149,000

100
%
100
%
17.77



50,000

Big Y Foods
TJ Maxx / HomeGoods
Saugus Plaza

Boston-Cambridge-Quincy, MA-NH
15,262


15

169,000

100
%
100
%
12.24



55,000

Super Stop & Shop
Kmart


Total New England
1,023,406


228

2,101,000

98
%
95
%
22.36


























  South Florida













Cocowalk
(4) (8)
Miami-Ft Lauderdale
116,420



3

194,000

74
%
74
%
32.78




Gap / Cinepolis Theaters / Youfit Health Club
Del Mar Village

Miami-Ft Lauderdale
65,393



17

196,000

91
%
72
%
16.43


44,000

Winn Dixie
CVS
The Shops at Sunset Place
(4)
Miami-Ft Lauderdale
123,512

66,603

10

523,000

77
%
77
%
20.17




AMC / L.A. Fitness / Barnes & Noble / Restoration Hardware Outlet
Tower Shops

Miami-Ft Lauderdale
97,549


67

426,000

98
%
97
%
23.45


12,000

Trader Joe's
TJ Maxx / Ross Dress For Less / Best Buy / DSW


Total South Florida
402,874


97

1,339,000

86
%
82
%
22.60






24


Federal Realty Investment Trust
Real Estate Status Report
December 31, 2017
Property Name
 
MSA Description
Real Estate at Cost
Mortgage and/or Capital Lease Obligation (1)
Acreage
GLA (2)
% Leased (2)
% Occupied (2)
Average Rent PSF (3)
Residential Units
 Grocery Anchor GLA
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
  Baltimore


















Governor Plaza

Baltimore, MD
27,292


24

242,000

98
%
98
%
19.44


16,500

Aldi
Dick's Sporting Goods / A.C. Moore
Perring Plaza

Baltimore, MD
31,097



29

396,000

100
%
100
%
14.63


58,000

Shoppers Food Warehouse
Home Depot / Micro Center / Burlington
THE AVENUE at White Marsh
(6)
Baltimore, MD
116,128

52,705

35

315,000

100
%
100
%
23.87




AMC / Ulta / Old Navy / Barnes & Noble
The Shoppes at Nottingham Square

Baltimore, MD
17,544


4

32,000

100
%
100
%
50.29





Towson Residential (Flats @ 703)

Baltimore, MD
22,376


1

4,000

100
%
100
%
71.41

105




White Marsh Plaza

Baltimore, MD
25,536


7

80,000

98
%
96
%
22.31


54,000

Giant Food

White Marsh Other

Baltimore, MD
33,936


21

69,000

97
%
97
%
30.32







Total Baltimore
273,909


121

1,138,000

99
%
99
%
20.88



















  Chicago


















Crossroads

Chicago, IL
33,128



14

168,000

99
%
83
%
23.12




L.A. Fitness / Binny's / Guitar Center
Finley Square

Chicago, IL
38,400


21

278,000

87
%
87
%
15.70




Bed, Bath & Beyond / Buy Buy Baby / Petsmart / Portillo's
Garden Market

Chicago, IL
14,415


2

140,000

100
%
99
%
13.26


63,000

Mariano's Fresh Market
Walgreens
Riverpoint Center

Chicago, IL
120,079


17

211,000

96
%
96
%
22.38


86,000

Jewel Osco
Marshalls / Old Navy


Total Chicago
206,022


54

797,000

94
%
90
%
18.55





 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Other











.






Barracks Road

Charlottesville, VA
67,910


40

498,000

98
%
98
%
27.37


99,000

Harris Teeter / Kroger
Anthropologie / Nike / Bed, Bath & Beyond / Old Navy
Bristol Plaza

Hartford, CT
31,664


22

266,000

97
%
97
%
13.97


74,000

Stop & Shop
TJ Maxx
Eastgate Crossing

Raleigh-Durham-Chapel Hill, NC
34,364



17

159,000

95
%
95
%
26.94


13,000

Trader Joe's
Ulta / Stein Mart / Petco
Gratiot Plaza

Detroit, MI
19,828


20

217,000

100
%
100
%
12.15


69,000

Kroger
Bed, Bath & Beyond / Best Buy / DSW
Lancaster
(7)
Lancaster, PA
14,113

4,907

11

127,000

98
%
98
%
18.41


75,000

Giant Food
Michaels
29th Place

Charlottesville, VA
41,047

4,341

15

169,000

97
%
97
%
18.25




HomeGoods / DSW / Stein Mart / Staples
Willow Lawn

Richmond-Petersburg, VA
95,322


37

463,000

99
%
88
%
19.61


66,000

Kroger
Old Navy / Ross Dress For Less / Gold's Gym / DSW


Total Other
304,248


162

1,899,000

98
%
95
%
20.40



















Grand Total


$
7,635,061

$
563,117

1,966

24,206,000

95
%
94
%
$
26.90

2,310





Notes:
(1
)
The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount, premium, and/or debt issuance costs on certain mortgages payable.
(2
)
Represents the GLA and the percentage leased and percentage occupied of the commercial portion of the property. Some of our properties include office space which is included in this square footage. Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.
(3
)
Calculated as the aggregate, annualized in-place contractual (defined as cash basis excluding rent abatements) minimum rent for all occupied spaces divided by the aggregate GLA of all occupied spaces.
(4
)
The Trust has a controlling financial interest in this property.
(5
)
Portion of property is currently under development. See further discussion in the Assembly Row and Pike & Rose schedules.
(6
)
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.
(7
)
All or a portion of property subject to capital lease obligation.
(8
)
This property includes interests in five buildings in addition to our initial acquisition.
(9
)
Property under redevelopment; see further discussion on page 21.

25


Federal Realty Investment Trust
 
Retail Leasing Summary (1)
 
December 31, 2017
 
 
 
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.
 
4th Quarter 2017
80

 
100
%
 
300,511

 
$
34.75

 
$
30.19

 
$
1,369,494

 
15
%
 
27
%
 
6.2

 
$
9,763,062

 
$
32.49


3rd Quarter 2017
82

 
100
%
 
399,619

 
$
38.24

 
$
33.43

 
$
1,922,439

 
14
%
 
27
%
 
7.4

 
$
10,411,714

 
$
26.05


2nd Quarter 2017
100

 
100
%
 
397,555

 
$
45.55

 
$
40.16

 
$
2,144,347

 
13
%
 
27
%
 
9.6

 
$
18,524,282

 
$
46.60


1st Quarter 2017
102

 
100
%
 
523,869

 
$
34.91

 
$
31.31

 
$
1,884,636

 
11
%
 
23
%
 
8.1

 
$
19,672,170

 
$
37.55

(7)
Total - 12 months
364

 
100
%
 
1,621,554

 
$
38.31

 
$
33.79

 
$
7,320,916

 
13
%
 
26
%
 
8.0

 
$
58,371,228

 
$
36.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
4th Quarter 2017
39

 
49
%
 
158,213

 
$
32.66

 
$
27.27

 
$
853,245

 
20
%
 
31
%
 
7.9

 
$
9,545,231

 
$
60.33


3rd Quarter 2017
36

 
44
%
 
165,289

 
$
40.97

 
$
33.19

 
$
1,285,427

 
23
%
 
36
%
 
8.4

 
$
8,563,714

 
$
51.81


2nd Quarter 2017
37

 
37
%
 
161,605

 
$
34.63

 
$
29.36

 
$
850,568

 
18
%
 
31
%
 
8.9

 
$
10,708,134

 
$
66.26


1st Quarter 2017
45

 
44
%
 
288,388

 
$
35.45

 
$
30.21

 
$
1,509,806

 
17
%
 
31
%
 
10.2

 
$
19,226,044

 
$
66.67

(7)
Total - 12 months
157

 
43
%
 
773,495

 
$
35.89

 
$
30.07

 
$
4,499,046

 
19
%
 
32
%
 
9.1

 
$
48,043,123

 
$
62.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Lease Summary - Comparable (2) (9)
 
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.
 
4th Quarter 2017
41

 
51
%
 
142,298

 
$
37.07

 
$
33.44

 
$
516,249

 
11
%
 
23
%
 
4.6

 
$
217,831

 
$
1.53

 
3rd Quarter 2017
46

 
56
%
 
234,330

 
$
36.31

 
$
33.59

 
$
637,012

 
8
%
 
20
%
 
6.7

 
$
1,848,000

 
$
7.89

 
2nd Quarter 2017
63

 
63
%
 
235,950

 
$
53.04

 
$
47.55

 
$
1,293,779

 
12
%
 
25
%
 
9.8

 
$
7,816,148

 
$
33.13

(8)
1st Quarter 2017
57

 
56
%
 
235,481

 
$
34.24

 
$
32.65

 
$
374,830

 
5
%
 
14
%
 
5.4

 
$
446,126

 
$
1.89

 
Total - 12 months
207

 
57
%
 
848,059

 
$
40.52

 
$
37.19

 
$
2,821,870

 
9
%
 
21
%
 
7.2

 
$
10,328,105

 
$
12.18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (2) (10)
 
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.
 
4th Quarter 2017
 
 
 
 
 
 
 
 
91

 
344,768
 
 
$
35.68

 
6.8

 
$
10,887,204

 
$
31.58

 
3rd Quarter 2017
 
 
 
 
 
 
 
 
90

 
424,492
 
 
$
39.33

 
7.6

 
$
12,087,142

 
$
28.47

 
2nd Quarter 2017
 
 
 
 
 
 
 
 
111

 
432,164
 
 
$
46.16

 
9.5

 
$
19,131,023

 
$
44.27

 
1st Quarter 2017
 
 
 
 
 
 
 
 
114

 
591,765
 
 
$
34.87

 
8.3

 
$
24,718,054

 
$
41.77

 
Total - 12 months
 
 
 
 
 
 
 
 
406

 
1,793,189
 
 
$
38.80

 
8.2

 
$
66,823,423

 
$
37.27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 $3.5 million ($2.28 per square foot) in 1st Quarter 2017 of the Tenant Improvements & Incentives are for properties under active redevelopment (e.g. Montrose Crossing and Willow Lawn) and are included in the Projected Cost for those projects on the Summary of Redevelopment Opportunities.
(8)
 
Approximately $7.5 million of the Tenant Improvements & Incentives is attributable to one 20 year anchor tenant renewal; total Tenant Improvements & Incentives without this lease would be $1.58 per square foot.
(9)
 
Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(10)
 
The Number of Leases Signed, GLA Signed, Contractual Rent Per Square Foot 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 Square Foot 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 Assembly Row and Pike & Rose schedule.


26


Federal Realty Investment Trust
Lease Expirations
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
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)
2018
1,008,000

7
%
$
17.28

 
841,000

12
%
$
35.62

 
1,849,000

8
%
$
25.63

2019
2,193,000

14
%
$
18.83

 
849,000

12
%
$
38.34

 
3,042,000

13
%
$
24.28

2020
1,401,000

9
%
$
17.11

 
939,000

13
%
$
40.95

 
2,339,000

10
%
$
26.68

2021
1,708,000

11
%
$
22.02

 
893,000

12
%
$
43.98

 
2,601,000

12
%
$
29.56

2022
2,081,000

13
%
$
17.84

 
964,000

13
%
$
41.81

 
3,045,000

13
%
$
25.43

2023
1,294,000

8
%
$
20.05

 
663,000

9
%
$
43.56

 
1,958,000

9
%
$
28.01

2024
1,000,000

6
%
$
16.25

 
523,000

7
%
$
45.96

 
1,523,000

7
%
$
26.45

2025
883,000

6
%
$
23.13

 
463,000

7
%
$
40.65

 
1,346,000

6
%
$
29.16

2026
562,000

4
%
$
25.88

 
358,000

5
%
$
44.56

 
921,000

4
%
$
33.15

2027
757,000

5
%
$
33.28

 
426,000

6
%
$
45.42

 
1,183,000

5
%
$
37.65

Thereafter
2,589,000

17
%
$
18.62

 
272,000

4
%
$
52.23

 
2,861,000

13
%
$
21.81

Total (3)
15,476,000

100
%
$
19.90

 
7,191,000

100
%
$
41.97

 
22,668,000

100
%
$
26.90

 
 
 
 
 
 
 
 
 
 
 
 
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)
2018
500,000

3
%
$
18.38

 
615,000

9
%
$
34.20

 
1,115,000

5
%
$
27.10

2019
554,000

4
%
$
20.33

 
557,000

8
%
$
38.17

 
1,111,000

5
%
$
29.27

2020
234,000

2
%
$
18.76

 
601,000

8
%
$
40.43

 
836,000

4
%
$
34.35

2021
382,000

2
%
$
26.79

 
513,000

7
%
$
47.45

 
896,000

4
%
$
38.63

2022
347,000

2
%
$
22.69

 
565,000

8
%
$
40.45

 
912,000

4
%
$
33.69

2023
381,000

2
%
$
20.94

 
436,000

6
%
$
42.18

 
816,000

3
%
$
32.27

2024
535,000

3
%
$
20.72

 
354,000

5
%
$
44.63

 
889,000

4
%
$
30.25

2025
383,000

3
%
$
22.67

 
412,000

6
%
$
41.68

 
795,000

3
%
$
32.52

2026
465,000

3
%
$
26.48

 
380,000

5
%
$
42.17

 
845,000

4
%
$
33.54

2027
694,000

5
%
$
19.08

 
470,000

6
%
$
45.74

 
1,164,000

5
%
$
29.84

Thereafter
11,001,000

71
%
$
19.25

 
2,288,000

32
%
$
43.32

 
13,289,000

59
%
$
23.39

Total (3)
15,476,000

100
%
$
19.90

 
7,191,000

100
%
$
41.97

 
22,668,000

100
%
$
26.90

 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1)
Anchor is defined as a tenant leasing 10,000 square feet or more.
(2)
Minimum Rent reflects in-place contractual (defined as cash-basis excluding rent abatements) rent as of December 31, 2017.
(3)
Represents occupied square footage as of December 31, 2017.
(4)
Individual items may not add up to total due to rounding.



27


Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
At December 31, 2017
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
Type
 
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
 
Retail Properties (2) (3) (4) (sf)
24,206,000

23,066,000

95.3
%
 
22,630,000

21,356,000

94.4
%
 
 
 
 
 
 
 
 
 
Residential Properties (units)
2,310

2,164

93.7
%
 
1,867

1,792

96.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Center Statistics (1)
At December 31, 2017
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
Type
 
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
 
Retail Properties (2) (4) (5) (sf)
18,625,000

17,935,000

96.3
%
 
18,636,000

17,864,000

95.9
%
 
 
 
 
 
 
 
 
 
Residential Properties (units) (5)
1,326

1,282

96.7
%
 
1,326

1,270

95.8
%
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
(1)
See Glossary of Terms.
(2)
Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)
At December 31, 2017 leased percentage was 98.1% for anchor tenants and 89.8% for small shop tenants.
(4)
Occupied percentage was 93.9% and 93.3% at December 31, 2017 and 2016, respectively, and same center occupied percentage was 95.3% at both December 31, 2017 and 2016.
(5)
Excludes properties purchased, sold or under redevelopment or development.



28


Federal Realty Investment Trust
Summary of Top 25 Tenants
December 31, 2017
 
 
 
 
 
 
 
 
 
Rank

 
Tenant Name
Credit Ratings (S&P/Moody's/Fitch) (1)
Annualized Base Rent

Percentage of Total Annualized Base Rent (3)

Tenant GLA

Percentage of Total GLA (3)

Number of Stores Leased

 
 
 
 
 
 
 
 
 
1

 
Ahold Delhaize
BBB / Baa2 / BBB
$
17,500,000

2.87
%
1,036,000

4.28
%
17

2

 
TJX Companies, The
A+ / A2 / NR
$
17,335,000

2.84
%
973,000

4.02
%
30

3

 
Gap, Inc., The
BB+ / Baa2 / BB+
$
13,309,000

2.18
%
366,000

1.51
%
27

4

 
Bed, Bath & Beyond, Inc.
BBB / Baa1 / NR
$
13,217,000

2.17
%
736,000

3.04
%
20

5

 
Splunk, Inc.
NR / NR / NR
$
10,585,000

1.74
%
235,000

0.97
%
1

6

 
L.A. Fitness International LLC
B+ / B2 / NR
$
9,833,000

1.61
%
426,000

1.76
%
10

7

 
CVS Corporation
BBB+ / Baa1 / NR
$
9,214,000

1.51
%
248,000

1.02
%
19

8

 
AMC Entertainment Inc.
B+ / B1 / B
$
6,850,000

1.12
%
317,000

1.31
%
6

9

 
Best Buy Co., Inc.
BBB- / Baa1 / BBB-
$
6,633,000

1.09
%
231,000

0.95
%
5

10

 
Dick's Sporting Goods, Inc.
NR / NR / NR
$
6,208,000

1.02
%
257,000

1.06
%
6

11

 
Ascena Retail Group, Inc. (Dress Barn, Loft, Lou & Grey, Ann Taylor, Catherine's, Justice, Lane Bryant)
B+ / Ba3 / NR
$
6,193,000

1.02
%
198,000

0.82
%
33

12

 
Kroger Co., The
BBB / Baa1 / BBB
$
6,032,000

0.99
%
529,000

2.19
%
11

13

 
Home Depot, Inc.
A / A2 / A
$
5,757,000

0.94
%
438,000

1.81
%
5

14

 
Michaels Stores, Inc.
BB- / Ba2 / NR
$
5,724,000

0.94
%
307,000

1.27
%
13

15

 
DSW, Inc
NR / NR / NR
$
5,607,000

0.92
%
243,000

1.00
%
12

16

 
Bank of America, N.A.
A- / A3 / A
$
5,577,000

0.91
%
105,000

0.43
%
23

17

 
Barnes & Noble, Inc.
NR / NR / NR
$
5,535,000

0.91
%
244,000

1.01
%
9

18

 
Hudson's Bay Company (Saks, Lord & Taylor)
B / B2 / NR
$
5,380,000

0.88
%
220,000

0.91
%
4

19

 
Ross Stores, Inc.
A- / A3 / NR
$
5,239,000

0.86
%
295,000

1.22
%
10

20

 
Nordstrom, Inc.
BBB+ / Baa1 / BBB+
$
5,038,000

0.83
%
195,000

0.81
%
5

21

 
Whole Foods Market, Inc.
A+ / Baa1 / NR
$
4,642,000

0.76
%
167,000

0.69
%
4

22

 
Starbucks Corporation
A- / A3 / A-
$
4,198,000

0.69
%
69,000

0.29
%
42

23

 
AB Acquisition LLC (Acme, Safeway)
B+ / B1 / NR
$
4,164,000

0.68
%
412,000

1.70
%
7

24

 
Ulta Beauty, Inc.
NR / NR / NR
$
4,154,000

0.68
%
117,000

0.48
%
11

25

 
Wells Fargo Bank, N.A.
A / A2 / A+
$
4,106,000

0.67
%
52,000

0.21
%
16

 
 
Totals - Top 25 Tenants
 
$
188,030,000

30.84
%
8,416,000

34.77
%
346

 
 
 
 
 
 
 
 
 
 
 
Total:
 
$
609,783,000

(2)
24,206,000

(4)
2,983

 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
 
Credit Ratings are as of December 31, 2017. Subsequent rating changes have not been reflected.
(2)
 
Reflects aggregate, annualized in-place contractual (defined as cash-basis excluding rent abatements) minimum rent for all occupied spaces as of December 31, 2017.
(3)
 
Individual items may not add up to total due to rounding.
(4)
 
Excludes redevelopment square footage not yet placed in service.



29


Federal Realty Investment Trust
 
 
 
Reconciliation of FFO Guidance
 
 
 
December 31, 2017
 
 
 
 
 
 
 
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2018. Estimates do not include the impact from potential acquisitions or potential dispositions which have not closed as of February 13, 2018.
 
 
 
 
 
Full Year 2018 Guidance Range
 
 
 
Low
 
High
Estimated net income available to common shareholders, per diluted share
$
3.01

 
$
3.17

Adjustments:
 
 
 
Estimated depreciation and amortization
3.07

 
3.07

Estimated FFO per diluted share
$
6.08

 
$
6.24


Note:
See Glossary of Terms. Individual items may not add up to total due to rounding.

30


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 months and year ended December 31, 2017 and 2016 is as follows:

 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
 
(in thousands)
 
(in thousands)
Net income
$
52,785

 
$
59,724

 
$
297,870

 
$
258,883

Depreciation and amortization
56,394

 
48,448

 
216,050

 
193,585

Interest expense
26,173

 
23,851

 
100,125

 
94,994

Early extinguishment of debt
12,273

 
—

 
12,273

 
—

(Benefit) provision for income tax (1)
(24
)
 
—

 
1,813

 
—

Other interest income
(222
)
 
(89
)
 
(475
)
 
(374
)
EBITDA
147,379

 
131,934

 
627,656

 
547,088

Gain on sale of real estate and change in control of interests
(7,398
)
 
—

 
(79,345
)
 
(32,458
)
Adjusted EBITDA
$
139,981

 
$
131,934

 
$
548,311

 
$
514,630

(1) (Benefit) provision for income tax for both the three months and year ended December 31, 2017 primarily relates to condominium sales gains.

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 and 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.

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, operated, and consolidated 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. Same center growth statistics are calculated on a GAAP basis.

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.

31