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) November 04, 2021
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number including area code: 301 /998-8100
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| $.01 par value per share, with associated Common Share Purchase Rights | ||||||||
| of 5.00% Series C Cumulative Redeemable Preferred Stock, $.01 par value per share | ||||||||
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)) | |||||
| Emerging growth company | |||||
| ☐ | If an emerging growth company, indicate by checkmark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
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 November 4, 2021, 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 September 30, 2021. 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 September 30, 2021 (including press release dated November 4, 2021)
104 Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).
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: | November 4, 2021 | /s/ Daniel Guglielmone | |||||||||
| Daniel Guglielmone | |||||||||||
| Executive Vice President- | |||||||||||
| Chief Financial Officer and Treasurer | |||||||||||
EXHIBIT INDEX
| Exhibit Number | Description | |||||||
| Supplemental Information at September 30, 2021 | ||||||||
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL Document | |||||||
| FEDERAL REALTY INVESTMENT TRUST | |||||||||||
| SUPPLEMENTAL INFORMATION | |||||||||||
| September 30, 2021 | |||||||||||
| TABLE OF CONTENTS | |||||||||||
| 1 | Third Quarter 2021 Earnings Press Release | ||||||||||
| 2 | Financial Highlights | ||||||||||
| Consolidated Income Statements | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| Funds From Operations / Other Supplemental Information | |||||||||||
| COVID-19 Collectibility Related Impacts | |||||||||||
| Components of Rental Income | |||||||||||
| Comparable Property Information | |||||||||||
| Market Data | |||||||||||
| 3 | Summary of Debt | ||||||||||
| Summary of Outstanding Debt | |||||||||||
| Summary of Debt Maturities | |||||||||||
| 4 | Summary of Redevelopment Opportunities | ||||||||||
| 5 | Assembly Row, Pike & Rose, and Santana Row | ||||||||||
| 6 | Future Redevelopment Opportunities | ||||||||||
| 7 | Property Acquisitions, Disposition, and Other Transactions | ||||||||||
| 8 | Real Estate Status Report | ||||||||||
| 9 | Retail Leasing Summary | ||||||||||
| 10 | Lease Expirations | ||||||||||
| 11 | Portfolio Leased Statistics | ||||||||||
| 12 | Summary of Top 25 Tenants | ||||||||||
| 13 | Tenant Diversification by Category | ||||||||||
| 14 | Reconciliation of FFO Guidance | ||||||||||
| 15 | Glossary of Terms | ||||||||||
| 909 Rose Avenue, Suite 200 | |||||||||||
| North Bethesda, Maryland 20852 | |||||||||||
| 301/998-8100 | |||||||||||
1
Safe Harbor Language
Certain matters discussed within this Supplemental Information may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2021 and subsequent quarterly reports on Form 10-Q, and include the following:
•risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
•risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
•risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
•risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
•risks that our growth will be limited if we cannot obtain additional capital;
•risks associated with general economic conditions, including local economic conditions in our geographic markets;
•risks of financing 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;
•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; and
•risks related to natural disasters, climate change and public health crises (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Supplemental Information. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2021 and subsequent quarterly reports on Form 10-Q.
2
| NEWS RELEASE | www.federalrealty.com | ||||
FOR IMMEDIATE RELEASE | |||||
| Investor and Media Inquiries: | |||||
| Brenda Pomar | |||||
| Director, Corporate Communications | |||||
| 301.998.8316 | |||||
| bpomar@federalrealty.com | |||||
Federal Realty Investment Trust Announces Third Quarter 2021 Operating Results
NORTH BETHESDA, Md. (November 4, 2021) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2021. For the three months ended September 30, 2021 and 2020, net income (loss) available for common shareholders was $0.64 per diluted share and ($0.41) per diluted share, respectively.
Highlights for the quarter and subsequent events include:
•Generated funds from operations available to common shareholders (FFO) per diluted share of $1.51 for the quarter compared to $1.12 for the third quarter 2020.
•Strong levels of leasing activity with 119 signed leases for 430,234 square feet of comparable space during third quarter and 346 signed leases for 1.5 million square feet of comparable space through the first nine months of 2021.
•Federal Realty’s portfolio was 90.2% occupied, a sequential increase of 60 basis points.
◦260 basis point spread between leased and occupied
•Acquired Twinbrooke Shopping Centre in Fairfax, Virginia, bringing the COVID-era, off-market acquisitions total to 5 properties, 1.9 million square feet and 135 acres.
•Increased 2021 earnings per diluted share guidance to $2.30 to $2.35 and increased 2021 FFO per diluted share guidance to $5.45 to $5.50.
•Increased 2022 earnings per diluted share guidance to $2.25 to $2.45 and increased 2022 FFO per diluted share guidance to $5.65 to $5.85.
“Strong results from all facets of our business were on full display in the third quarter,” said Donald C. Wood, Chief Executive Officer. “Collections have improved dramatically, new and exciting retail and office tenants are committing to long term leases at a very brisk pace, and our development and acquisition pipeline have never been more active. We’re more confident than ever that the places we create and the markets that we’re in are spot on in a post COVID world.”
3
Financial Results
Net income (loss) available for common shareholders was $50.1 million and earnings per diluted share was $0.64 for third quarter 2021 versus ($30.3) million and ($0.41) which includes the $50.7 million net impairment charge relating to The Shops at Sunset Place for third quarter 2020.
In the third quarter 2021, Federal Realty generated FFO of $118.0 million, or $1.51 per diluted share. This compares to FFO of $85.0 million, or $1.12 per diluted share, in third quarter 2020.
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.
Operational Update
The portfolio was 90.2% occupied as of September 30, 2021, a sequential increase of 60 basis points over the second quarter 2021, and a spread of 260 basis points versus our leased percentage, 92.8%, at the end of the third quarter.
During the third quarter 2021, Federal Realty signed 124 leases for 481,607 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 119 leases for 430,234 square feet at an average rent of $40.73 per square foot compared to the average contractual rent of $38.13 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 7%, 16% on a straight-line basis. Additionally, as of November 2, 2021, Federal Realty signed 19 leases for approximately 224,000 square feet of office space during and subsequent to the third quarter 2021.
As of October 29, 2021, the Company has collected approximately 96% of total third quarter 2021 billed recurring rents. Including rent deferral and abatement agreements, total addressed recurring rent was 99%.
With $178 million of cash and cash equivalents as of September 30, 2021, Federal Realty has approximately $1.2 billion of liquidity in cash and undrawn availability under its $1 billion revolving credit facility.
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.07 per common share, resulting in an indicated annual rate of $4.28 per common share. The regular common dividend will be payable on January 18, 2022 to common shareholders of record as of January 3, 2022.
Federal Realty’s Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on January 18, 2022 to shareholders of record as of January 3, 2022.
4
Summary of Other Quarterly Activities and Recent Developments
September 2021 – Federal Realty acquired an 100% interest in Twinbrooke Shopping Centre, a 109,000 square foot grocery anchored neighborhood shopping center on 10 acres located in Fairfax, Virginia. Federal sourced the acquisition off-market for a purchase price of $33.8 million cash. In 2021, Federal Realty has acquired 5 properties totaling 1.9 million square feet and 135 acres at a gross value of $441 million of which Federal has an average 82% ownership interest.
Guidance
Federal Realty increased its 2021 guidance for earnings per diluted share to $2.30 to $2.35 and 2021 FFO per diluted share guidance to $5.45 to $5.50.
Additionally, Federal Realty increased its 2022 guidance for earnings per diluted share to $2.25 to $2.45 and 2022 FFO per diluted share guidance to $5.65 to $5.85.
Conference Call Information
Federal Realty’s management team will present an in-depth discussion of Federal Realty’s operating performance on its third quarter 2021 earnings conference call, which is scheduled for Thursday, November 4, 2021 at 5:00 PM ET. To participate, please call 877.407.9208 five to ten minutes prior to the call start time and use the passcode 13723057 (required). The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. 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 November 18, 2021 by dialing 844.512.2921; Passcode: 13723057.
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, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its 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 106 properties include approximately 3,100 tenants, in 25 million square feet, and approximately 3,200 residential units Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry.
Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
5
Safe Harbor Language
Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2021, and include the following:
•risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
•risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
•risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
•risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
•risks that our growth will be limited if we cannot obtain additional capital;
•risks associated with general economic conditions, including local economic conditions in our geographic markets;
•risks of financing 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;
•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; and
•risks related to natural disasters, climate change and public health crises (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.
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 required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2021 and subsequent quarterly reports on Form 10-Q.
6
| Federal Realty Investment Trust | |||||||||||||||||||||||
| Consolidated Income Statements | |||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||
| Rental income | $ | 247,024 | $ | 207,410 | $ | 694,954 | $ | 613,687 | |||||||||||||||
| Mortgage interest income | 260 | 787 | 2,116 | 2,294 | |||||||||||||||||||
| Total revenue | 247,284 | 208,197 | 697,070 | 615,981 | |||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Rental expenses | 49,318 | 41,832 | 141,474 | 122,561 | |||||||||||||||||||
| Real estate taxes | 29,529 | 30,520 | 88,272 | 90,183 | |||||||||||||||||||
| General and administrative | 12,253 | 9,308 | 35,357 | 29,373 | |||||||||||||||||||
| Depreciation and amortization | 70,611 | 65,631 | 202,160 | 190,603 | |||||||||||||||||||
| Total operating expenses | 161,711 | 147,291 | 467,263 | 432,720 | |||||||||||||||||||
| Impairment charge | — | (57,218) | — | (57,218) | |||||||||||||||||||
| Gain on sale of real estate and change in control of interest | — | — | 17,428 | 11,682 | |||||||||||||||||||
| OPERATING INCOME | 85,573 | 3,688 | 247,235 | 137,725 | |||||||||||||||||||
| OTHER INCOME/(EXPENSE) | |||||||||||||||||||||||
| Other interest income | 88 | 538 | 701 | 1,355 | |||||||||||||||||||
| Interest expense | (32,249) | (36,228) | (95,511) | (98,746) | |||||||||||||||||||
| Income (loss) from partnerships | 1,129 | (1,621) | (86) | (6,657) | |||||||||||||||||||
| NET INCOME (LOSS) | 54,541 | (33,623) | 152,339 | 33,677 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (2,419) | 5,334 | (5,777) | 3,304 | |||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE TRUST | 52,122 | (28,289) | 146,562 | 36,981 | |||||||||||||||||||
| Dividends on preferred shares | (2,010) | (2,010) | (6,031) | (6,031) | |||||||||||||||||||
| NET INCOME (LOSS) AVAILABLE FOR COMMON SHAREHOLDERS | $ | 50,112 | $ | (30,299) | $ | 140,531 | $ | 30,950 | |||||||||||||||
| EARNINGS PER COMMON SHARE, BASIC: | |||||||||||||||||||||||
| Net income (loss) available for common shareholders | $ | 0.64 | $ | (0.41) | $ | 1.81 | $ | 0.40 | |||||||||||||||
| Weighted average number of common shares | 77,485 | 75,404 | 77,269 | 75,386 | |||||||||||||||||||
| EARNINGS PER COMMON SHARE, DILUTED: | |||||||||||||||||||||||
| Net income (loss) available for common shareholders | $ | 0.64 | $ | (0.41) | $ | 1.81 | $ | 0.40 | |||||||||||||||
| Weighted average number of common shares | 77,575 | 75,404 | 77,287 | 75,386 | |||||||||||||||||||
7
| Federal Realty Investment Trust | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| September 30, 2021 | |||||||||||
| September 30, | December 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| (in thousands, except share and per share data) | |||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Real estate, at cost | |||||||||||
| Operating (including $2,188,736 and $1,703,202 of consolidated variable interest entities, respectively) | $ | 8,730,079 | $ | 7,771,981 | |||||||
| Construction-in-progress (including $28,277 and $44,896 of consolidated variable interest entities, respectively) | 662,643 | 810,889 | |||||||||
| 9,392,722 | 8,582,870 | ||||||||||
| Less accumulated depreciation and amortization (including $374,970 and $335,735 of consolidated variable interest entities, respectively) | (2,501,622) | (2,357,692) | |||||||||
| Net real estate | 6,891,100 | 6,225,178 | |||||||||
| Cash and cash equivalents | 177,591 | 798,329 | |||||||||
| Accounts and notes receivable, net | 159,840 | 159,780 | |||||||||
| Mortgage notes receivable, net | 9,521 | 39,892 | |||||||||
| Investment in partnerships | 12,079 | 22,128 | |||||||||
| Operating lease right of use assets | 91,836 | 92,248 | |||||||||
| Finance lease right of use assets | 50,153 | 51,116 | |||||||||
| Prepaid expenses and other assets | 242,322 | 218,953 | |||||||||
| TOTAL ASSETS | $ | 7,634,442 | $ | 7,607,624 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
| Mortgages payable, net (including $388,489 and $413,681 of consolidated variable interest entities, respectively) | $ | 457,203 | $ | 484,111 | |||||||
| Notes payable, net | 301,462 | 402,776 | |||||||||
| Senior notes and debentures, net | 3,405,685 | 3,404,488 | |||||||||
| Accounts payable and accrued expenses | 244,272 | 228,641 | |||||||||
| Dividends payable | 85,680 | 83,839 | |||||||||
| Security deposits payable | 24,933 | 20,388 | |||||||||
| Operating lease liabilities | 73,609 | 72,441 | |||||||||
| Finance lease liabilities | 72,037 | 72,049 | |||||||||
| Other liabilities and deferred credits | 210,429 | 152,424 | |||||||||
| Total liabilities | 4,875,310 | 4,921,157 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interests | 212,950 | 137,720 | |||||||||
| 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 shares issued and outstanding | 150,000 | 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, 77,774,645 and 76,727,394 shares issued and outstanding, respectively | 782 | 771 | |||||||||
| Additional paid-in capital | 3,398,851 | 3,297,305 | |||||||||
| Accumulated dividends in excess of net income | (1,095,741) | (988,272) | |||||||||
| Accumulated other comprehensive loss | (2,726) | (5,644) | |||||||||
| Total shareholders’ equity of the Trust | 2,461,163 | 2,464,157 | |||||||||
| Noncontrolling interests | 85,019 | 84,590 | |||||||||
| Total shareholders’ equity | 2,546,182 | 2,548,747 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 7,634,442 | $ | 7,607,624 | |||||||
8
| Federal Realty Investment Trust | ||||||||||||||||||||||||||
| Funds From Operations / Other Supplemental Information | ||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||
| Funds from Operations available for common shareholders (FFO) (1) | ||||||||||||||||||||||||||
| Net income (loss) | $ | 54,541 | $ | (33,623) | $ | 152,339 | $ | 33,677 | ||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (2,419) | 5,334 | (5,777) | 3,304 | ||||||||||||||||||||||
| Gain on sale of real estate and change in control of interest | — | — | (17,428) | (11,682) | ||||||||||||||||||||||
| Impairment charge, net (2) | — | 50,728 | — | 50,728 | ||||||||||||||||||||||
| Depreciation and amortization of real estate assets | 61,236 | 58,224 | 174,770 | 170,878 | ||||||||||||||||||||||
| Amortization of initial direct costs of leases | 6,202 | 5,853 | 20,127 | 15,562 | ||||||||||||||||||||||
| Funds from operations | 119,560 | 86,516 | 324,031 | 262,467 | ||||||||||||||||||||||
| Dividends on preferred shares (3) | (1,875) | (2,010) | (6,031) | (6,031) | ||||||||||||||||||||||
| Income attributable to operating partnership unit | 742 | 790 | 2,267 | 2,362 | ||||||||||||||||||||||
| Income attributable to unvested shares | (438) | (265) | (1,156) | (806) | ||||||||||||||||||||||
| FFO | $ | 117,989 | $ | 85,031 | $ | 319,111 | $ | 257,992 | ||||||||||||||||||
| Weighted average number of common shares, diluted (3)(4) | 78,365 | 76,149 | 77,997 | 76,133 | ||||||||||||||||||||||
| FFO per diluted share | $ | 1.51 | $ | 1.12 | $ | 4.09 | $ | 3.39 | ||||||||||||||||||
| Dividends and Payout Ratios | ||||||||||||||||||||||||||
| Regular common dividends declared | $ | 83,212 | $ | 80,170 | $ | 248,000 | $ | 238,980 | ||||||||||||||||||
| Dividend payout ratio as a percentage of FFO | 71 | % | 94 | % | 78 | % | 93 | % | ||||||||||||||||||
| Summary of Capital Expenditures | ||||||||||||||||||||||||||
| Non-maintenance capital expenditures | ||||||||||||||||||||||||||
| Development, redevelopment and expansions | $ | 81,262 | $ | 110,478 | $ | 283,139 | $ | 317,796 | ||||||||||||||||||
| Tenant improvements and incentives | 8,780 | 15,013 | 35,632 | 37,662 | ||||||||||||||||||||||
| Total non-maintenance capital expenditures | 90,042 | 125,491 | 318,771 | 355,458 | ||||||||||||||||||||||
| Maintenance capital expenditures | 1,523 | 2,758 | 10,735 | 8,773 | ||||||||||||||||||||||
| Total capital expenditures | $ | 91,565 | $ | 128,249 | $ | 329,506 | $ | 364,231 | ||||||||||||||||||
| Noncontrolling Interests Supplemental Information (5) | ||||||||||||||||||||||||||
| Property operating income (1) | $ | 4,728 | $ | 2,554 | $ | 10,462 | $ | 7,134 | ||||||||||||||||||
| Impairment charge | — | (6,490) | — | (6,490) | ||||||||||||||||||||||
| Depreciation and amortization | (2,599) | (1,553) | (5,555) | (4,488) | ||||||||||||||||||||||
| Interest expense | (453) | (635) | (1,398) | (1,822) | ||||||||||||||||||||||
| Net income (loss) | $ | 1,676 | $ | (6,124) | $ | 3,509 | $ | (5,666) | ||||||||||||||||||
Notes:
1)See Glossary of Terms.
2)Impairment charge relates to The Shops at Sunset Place. Amount is net of the allocation to noncontrolling interests. See our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.
3)For the three months ended September 30, 2021, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and included in "weighted average common shares, diluted."
4)The weighted average common shares used to compute FFO per diluted common share includes operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted share but is anti-dilutive for the computation of dilutive EPS for these periods.
5)Amounts reflect the components of "net (income) loss attributable to noncontrolling interests," but exclude "income attributable to operating partnership units."
9
| Federal Realty Investment Trust | |||||||||||
| COVID-19 Collectibility Related Impacts | |||||||||||
| September 30, 2021 | |||||||||||
The following provides supplemental information regarding our collectibility related impacts resulting from COVID-19 for the three months ended September 30, 2021. The primary drivers of our collectibility impacts in the quarter include COVID-19 abatements and the impacts of cash basis tenants who did not make full contractual rent payments. These increases to collectibility charges were partially offset by the collection of rents due from previous quarters. We change a tenant to a cash basis of accounting when we determine collection of substantially all lease payments during the lease term is not considered probable; revenue is then limited to the lesser of revenue recognized under accrual accounting or cash received. Our full revenue recognition policy with respect to leases can be found in Note 2 of our December 31, 2020 Annual Report on Form 10-K.
Collectibility Impacts for the Quarter Ended September 30, 2021
| Accounts Receivable Impact | Straight-Line Rent Receivable Impact | Total | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Total collectibility impact (1) | $ | 334 | $ | 279 | $ | 613 | |||||||||||
| Note: | |||||
| 1) | Includes approximately $5 million related to the abatement of Q3 2021 contractual rents due to COVID-19 and is offset by the collection of approximately $8 million of rents due from previous quarters. | ||||
Other Information on Cash Basis Tenants
| As of September 30, 2021 | |||||||||||
| Total | % Recognized on a Cash Basis | ||||||||||
| Active commercial tenant leases | 3,055 | 35% | |||||||||
| Annualized base rent from commercial tenants (in millions) (2) | $ | 673 | 26% | ||||||||
Rent Deferrals and Rent Abatements
| Cumulative contractual rent deferred (in millions) (3) | $ | 45 | ||||||
| Cumulative deferral payments collected through September 30, 2021 (in millions) (4) | $ | 22 | ||||||
| Contractual rent abated (in millions) (5) | $ | 22 | ||||||
| Notes: | |||||
| 2) | See Glossary of Terms. | ||||
| 3) | Total contractual rent for April 2020 through September 2021 that has been deferred pursuant to modification agreements signed through September 30, 2021. Accrual basis tenants comprise approximately 50% of this cumulative deferred rent for executed agreements in place as of September 30, 2021. | ||||
| 4) | Deferral payments collected to date represent approximately 90% of the amounts agreed to be repaid by September 30, 2021. | ||||
| 5) | Total contractual rent abated related to the nine months ended September 30, 2021. | ||||
Collection Rates - Q3 2021 Billed Recurring Rents (6)
| Collection rate - recurring rents | 96 | % | ||||||
| Executed abatement/deferral agreements | 3 | % | ||||||
| Total addressed - recurring rent | 99 | % | ||||||
| Note: | |||||
| 6) | Billed recurring rents are primarily composed of base rent and cost reimbursements. Amounts are as of October 29, 2021. | ||||
10
| Federal Realty Investment Trust | ||||||||||||||||||||||||||
| Components of Rental Income (1) | ||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Minimum rents (2) | ||||||||||||||||||||||||||
| Commercial | $ | 169,495 | $ | 158,560 | $ | 486,796 | $ | 468,939 | ||||||||||||||||||
| Residential | 21,210 | 20,134 | 59,911 | 61,124 | ||||||||||||||||||||||
| Cost reimbursements | 43,262 | 44,253 | 131,510 | 129,838 | ||||||||||||||||||||||
| Percentage rents | 2,677 | 1,497 | 5,541 | 4,009 | ||||||||||||||||||||||
| Other (3) | 10,714 | 10,616 | 32,286 | 26,242 | ||||||||||||||||||||||
| Collectibility related impact | (334) | (27,650) | (21,090) | $ | (76,465) | |||||||||||||||||||||
| Total rental income | $ | 247,024 | $ | 207,410 | $ | 694,954 | $ | 613,687 | ||||||||||||||||||
Notes:
1)All income from tenant leases is reported as a single line item called "rental income." We have provided the above supplemental information with a breakout of the contractual components of the rental income line, however, these breakouts are provided for informational purposes only and should be considered a non-GAAP presentation.
2)In total, minimum rents include the following:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Straight-line rents | $ | 6.1 | $ | 2.3 | $ | 13.0 | $ | 2.8 | ||||||||||||||||||
| Amortization of in-place leases | $ | 3.5 | $ | 1.2 | $ | 6.2 | $ | 3.1 | ||||||||||||||||||
3)For the nine months ended September 30, 2021, other rental income includes a $2.8 million net lease termination fee related to a tenant who vacated early in Q2 2021; the $2.8 million is net of the write-off of $8.8 million of a straight-line rent receivable.
11
| Federal Realty Investment Trust | ||||||||||||||
| Comparable Property Information | ||||||||||||||
| September 30, 2021 | ||||||||||||||
| 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 Q3 include: Assembly Row Phase 3, Cocowalk, Darien Commons, Pike & Rose Phase 3, Freedom Plaza, Huntington Shopping Center, and all properties acquired or disposed of from Q3 2020 to Q3 2021. 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. However, given the impacts of COVID-19, management believes this metric is less relevant in the current environment, and is not necessarily indicative of our results. | ||||||||||||||
| Reconciliation of GAAP operating income to Comparable Property POI | ||||||||||||||
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (in thousands) | ||||||||||||||
| Operating income | $ | 85,573 | $ | 3,688 | ||||||||||
| Add: | ||||||||||||||
| Depreciation and amortization | 70,611 | 65,631 | ||||||||||||
| General and administrative | 12,253 | 9,308 | ||||||||||||
| Impairment charge | — | 57,218 | ||||||||||||
| Property operating income (POI) | 168,437 | 135,845 | ||||||||||||
| Less: Non-comparable POI - acquisitions/dispositions | (8,845) | (991) | ||||||||||||
| Less: Non-comparable POI - redevelopment, development & other | (5,382) | (1,730) | ||||||||||||
| Comparable property POI | $ | 154,210 | $ | 133,124 | ||||||||||
| Additional information regarding the components of Comparable Property POI | ||||||||||||||
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2021 | 2020 | % Change | ||||||||||||
| (in thousands) | ||||||||||||||
| Rental income | $ | 224,093 | $ | 200,755 | ||||||||||
| Rental expenses | (42,926) | (38,524) | ||||||||||||
| Real estate taxes | (26,957) | (29,107) | ||||||||||||
| (69,883) | (67,631) | |||||||||||||
| Comparable property POI | $ | 154,210 | $ | 133,124 | 15.8 | % | ||||||||
| Comparable Property - Summary of Capital Expenditures (1) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (in thousands) | ||||||||||||||
| Redevelopment and tenant improvements and incentives | $ | 32,421 | $ | 32,441 | ||||||||||
| Maintenance capital expenditures | 1,131 | 2,261 | ||||||||||||
| $ | 33,552 | $ | 34,702 | |||||||||||
| Comparable Property - Occupancy Statistics (2) | ||||||||||||||
| At September 30, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| GLA - comparable commercial properties | 22,665,000 | 22,689,000 | ||||||||||||
| Leased % - comparable commercial properties | 92.7 | % | 92.2 | % | ||||||||||
| Occupancy % - comparable commercial properties | 90.0 | % | 90.9 | % | ||||||||||
| Notes: | |||||
| 1) | See page 9 for "Summary of Capital Expenditures" for our entire portfolio. | ||||
| 2) | See page 27 for entire portfolio occupancy statistics. | ||||
12
| Federal Realty Investment Trust | |||||||||||||||||
| Market Data | |||||||||||||||||
| September 30, 2021 | |||||||||||||||||
| September 30, | |||||||||||||||||
| 2021 | 2020 | ||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Market Data | |||||||||||||||||
| Common shares outstanding and operating partnership units (1) | 78,469 | 76,386 | |||||||||||||||
| Market price per common share | $ | 117.99 | $ | 73.44 | |||||||||||||
| Common equity market capitalization including operating partnership units | $ | 9,258,557 | $ | 5,609,788 | |||||||||||||
| Series C preferred shares outstanding | 6 | 6 | |||||||||||||||
| Liquidation price per Series C preferred share | $ | 25,000 | 25,000 | ||||||||||||||
| Series C preferred equity market capitalization | $ | 150,000 | $ | 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 | $ | 9,418,557 | $ | 5,769,788 | |||||||||||||
| Total debt | $ | 4,164,350 | $ | 4,460,849 | |||||||||||||
| Less: cash and cash equivalents | (177,591) | (863,279) | |||||||||||||||
| Total net debt (3) | $ | 3,986,759 | $ | 3,597,570 | |||||||||||||
| Total market capitalization | $ | 13,405,316 | $ | 9,367,358 | |||||||||||||
| Total net debt to market capitalization at market price per common share | 30 | % | 38 | % | |||||||||||||
Notes:
1)Amounts include 694,133 and 744,617 operating partnership units outstanding at September 30, 2021 and 2020, respectively.
2)These shares, issued March 8, 2007, are unregistered.
3)Total net debt includes mortgages payable, notes payable, senior notes and debentures, net of premiums/discounts and debt issuance costs and net of cash and cash equivalents from our consolidated balance sheet.
13
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Summary of Outstanding Debt | |||||||||||||||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||||||||||||||
| As of September 30, 2021 | |||||||||||||||||||||||||||||||||||
| Stated maturity date | Stated interest rate | Balance | Weighted average effective rate (9) | ||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Mortgages Payable (1) | |||||||||||||||||||||||||||||||||||
| Secured fixed rate | |||||||||||||||||||||||||||||||||||
| The AVENUE at White Marsh | 1/1/2022 (2) | 3.35% | $ | 52,705 | |||||||||||||||||||||||||||||||
| Montrose Crossing | 1/10/2022 (3) | 4.20% | 64,121 | ||||||||||||||||||||||||||||||||
| Azalea | 11/1/2025 | 3.73% | 40,000 | ||||||||||||||||||||||||||||||||
| Bell Gardens | 8/1/2026 | 4.06% | 12,199 | ||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||
| Hoboken (24 Buildings) (4) | 12/15/2029 | LIBOR + 1.95% | 56,450 | ||||||||||||||||||||||||||||||||
| Various Hoboken (14 Buildings) | Various through 2029 | Various (5) | 32,043 | ||||||||||||||||||||||||||||||||
| Chelsea | 1/15/2031 | 5.36% | 4,948 | ||||||||||||||||||||||||||||||||
| Hoboken (1 Building) (6) | 7/1/2042 | 3.75% | 16,317 | ||||||||||||||||||||||||||||||||
| Subtotal | 458,883 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (1,680) | ||||||||||||||||||||||||||||||||||
| Total mortgages payable, net | 457,203 | 3.95% | |||||||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||||||||
| Revolving credit facility (7) | 1/19/2024 | LIBOR + 0.775% | — | ||||||||||||||||||||||||||||||||
| Term loan | 4/16/2024 | LIBOR + 0.80% | 300,000 | ||||||||||||||||||||||||||||||||
| Various | Various through 2028 | 11.31% | 2,755 | ||||||||||||||||||||||||||||||||
| Subtotal | 302,755 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs | (1,293) | ||||||||||||||||||||||||||||||||||
| Total notes payable, net | 301,462 | 1.15% | (10) | ||||||||||||||||||||||||||||||||
| Senior notes and debentures | |||||||||||||||||||||||||||||||||||
| Unsecured fixed rate | |||||||||||||||||||||||||||||||||||
| 2.75% notes | 6/1/2023 | 2.75% | 275,000 | ||||||||||||||||||||||||||||||||
| 3.95% notes | 1/15/2024 | 3.95% | 600,000 | ||||||||||||||||||||||||||||||||
| 1.25% notes | 2/15/2026 | 1.25% | 400,000 | ||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||
| 3.20% notes | 6/15/2029 | 3.20% | 400,000 | ||||||||||||||||||||||||||||||||
| 3.50% notes | 6/1/2030 | 3.50% | 400,000 | ||||||||||||||||||||||||||||||||
| 4.50% notes | 12/1/2044 | 4.50% | 550,000 | ||||||||||||||||||||||||||||||||
| 3.625% notes | 8/1/2046 | 3.63% | 250,000 | ||||||||||||||||||||||||||||||||
| Subtotal | 3,419,200 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (13,515) | ||||||||||||||||||||||||||||||||||
| Total senior notes and debentures, net | 3,405,685 | 3.49% | |||||||||||||||||||||||||||||||||
| Total debt, net | $ | 4,164,350 | (8) | ||||||||||||||||||||||||||||||||
| Total fixed rate debt, net | $ | 3,865,595 | 93 | % | 3.55% | ||||||||||||||||||||||||||||||
| Total variable rate debt, net | 298,755 | 7 | % | 1.05% | (10) | ||||||||||||||||||||||||||||||
| Total debt, net | $ | 4,164,350 | 100 | % | 3.37% | (10) | |||||||||||||||||||||||||||||
14
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Operational Statistics | |||||||||||||||||||||||
| Ratio of EBITDAre to combined fixed charges and preferred share dividends (11) | 3.89x | 2.79x | 3.52x | 2.94x | |||||||||||||||||||
Notes:
1)Mortgages payable does not include our share of debt on our unconsolidated real estate partnerships. At September 30, 2021, our share of unconsolidated debt was approximately $28.7 million. At September 30, 2021, our noncontrolling interests' share of mortgages payable was $44.8 million.
2)This mortgage loan was repaid, at par, on November 2, 2021.
3)This mortgage loan was repaid, at par, on October 12, 2021.
4)We have two interest rate swap agreements that fix the interest rate on the mortgage loan at 3.67%.
5)The interest rates on these mortgages range from 3.91% to 5.00%.
6)The mortgage loan has a fixed interest rate; however, the rate resets every five years until maturity. The current rate is fixed until July 1, 2022, and the loan is prepayable at par anytime after this date.
7)During the three months ended September 30, 2021, there were no borrowings on our $1.0 billion revolving credit facility.
8)The weighted average remaining term on our mortgages payable, notes payable, and senior notes and debentures is approximately 8 years.
9)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 10.
10)The weighted average effective interest rate excludes $0.6 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.
11)Fixed charges consist of interest on borrowed funds and finance leases (including capitalized interest), amortization of debt discount/premium and debt costs, and the portion of rent expense representing an interest factor. EBITDAre is reconciled to net income in the Glossary of Terms.
15
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||
| Summary of Debt Maturities | ||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||||||||
| Year | Scheduled Amortization | Maturities | Total | Percent of Debt Maturing | Cumulative Percent of Debt Maturing | Weighted Average Rate (4) | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||
| 2021 | $ | 914 | $ | 116,519 | (1) | $ | 117,433 | 2.8 | % | 2.8 | % | 3.9 | % | |||||||||||||||||||||||||
| 2022 | 4,134 | — | 4,134 | 0.1 | % | 2.9 | % | — | % | |||||||||||||||||||||||||||||
| 2023 | 4,314 | 275,000 | 279,314 | 6.7 | % | 9.6 | % | 3.0 | % | |||||||||||||||||||||||||||||
| 2024 | 4,344 | 900,000 | (2) | 904,344 | 21.6 | % | 31.2 | % | 2.8 | % | (5) | |||||||||||||||||||||||||||
| 2025 | 4,068 | 44,298 | 48,366 | 1.2 | % | 32.4 | % | 3.9 | % | |||||||||||||||||||||||||||||
| 2026 | 3,465 | 452,450 | 455,915 | 10.9 | % | 43.3 | % | 2.1 | % | |||||||||||||||||||||||||||||
| 2027 | 3,048 | 690,570 | 693,618 | 16.6 | % | 59.9 | % | 3.8 | % | |||||||||||||||||||||||||||||
| 2028 | 2,934 | — | 2,934 | 0.1 | % | 60.0 | % | 6.3 | % | |||||||||||||||||||||||||||||
| 2029 | 2,770 | 458,099 | 460,869 | 11.0 | % | 71.0 | % | 3.3 | % | |||||||||||||||||||||||||||||
| 2030 | 1,141 | 400,000 | 401,141 | 9.6 | % | 80.6 | % | 3.8 | % | |||||||||||||||||||||||||||||
| Thereafter | 6,871 | 805,899 | 812,770 | 19.4 | % | 100.0 | % | 4.2 | % | |||||||||||||||||||||||||||||
| Total | $ | 38,003 | $ | 4,142,835 | $ | 4,180,838 | (3) | 100.0 | % | |||||||||||||||||||||||||||||
Notes:
1)We repaid two mortgage loans, at par, on October 12, 2021 and November 2, 2021 representing the $116.5 million of 2021 maturities.
2)Our $300.0 million term loan matures on April 16, 2024, plus two one-year extensions at our option.
3)The total debt maturities differ from the total reported on the consolidated balance sheet due to the debt issuance costs and unamortized net premium/discount on certain mortgage loans, notes payable, and senior notes as of September 30, 2021.
4)The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
5)The weighted average rate excludes $0.6 million in quarterly financing fees and quarterly debt fee amortization on our $1.0 billion revolving credit facility, which had no balance outstanding at September 30, 2021. Our revolving credit facility matures on January 19, 2024, plus two six-month extensions at our option.
16
| Federal Realty Investment Trust | ||||||||||||||||||||
| Summary of Redevelopment Opportunities | ||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||
| 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) | ||||||||||||||||||||
| Impacts of Current Environment: | ||||||||||||||||||||
| Information provided below reflects management’s best estimate based on current available information, however the completion of construction, final costs, return on investment, and timing of stabilization may be impacted by the current environment, including the impacts of COVID-19 and supply chain disruptions currently affecting the broader economy. | ||||||||||||||||||||
| Property | Location | Opportunity | Projected ROI (2) | Projected Cost (1) | Cost to Date | Anticipated Stabilization (3) | ||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||
| Darien Commons | Darien, CT | Demolition of a 45,000 square foot anchor space to construct 75,000 square feet of new retail space, 122 rental apartments, and 720 parking spaces | 6 | % | $110 - $120 | $48 | 2023 | |||||||||||||
| Cocowalk | Coconut Grove, FL | Entire shopping center redevelopment to include: demolition of three story east wing of the property and construction of a 106,000 square foot 5-story office/retail building with 24,000 square feet of retail; complete renovation of the west wing. | 6 | % | $93 - $97 | $87 | 2021 | |||||||||||||
| Huntington | Huntington, NY | Demolition of the obsolete main two level building to construct 102,000 square feet of new ground floor anchor and small shop retail space | 7 | % | $80 - $85 | $3 | 2024 | |||||||||||||
| Freedom Plaza (5) | Los Angeles, CA | Development of a new 113,000 square foot single-story grocery anchored neighborhood shopping center | 7 | % | $40 | $34 | Stabilized | |||||||||||||
| Bala Cynwyd | Bala Cynwyd, PA | New 87 unit residential apartment building to be constructed on underutilized land behind our existing shopping center | 6 | % | $22 | $22 | Stabilized | |||||||||||||
| Lawrence Park | Broomall, PA | Full shopping center redevelopment to include expansion of Main Line Health into vacant lower level space, creation of 17,800 square feet of small shop space converted from vacated anchor space, a new 2,000 square foot bank pad building, and a façade renovation for the entire center | 8 | % | $15 | $9 | 2022 | |||||||||||||
| 7021 Hollywood Blvd | Los Angeles, CA | Renovation of the center to accommodate a new 39,000 square foot anchor tenant | 7 | % | $14 | $14 | Stabilized | |||||||||||||
| Melville Mall | Huntington, NY | Development of a new 15,000 square foot pad site consisting of two multi-tenant retail buildings | 8 | % | $11 | $10 | Stabilized | |||||||||||||
| Azalea | Southgate, CA | Development of a new 3,000 square foot single tenant pad building | 7 | % | $3 | $0 | 2022 | |||||||||||||
| Sylmar Towne Center | Sylmar, CA | Development of a new 3,800 square foot two-tenant pad building | 6 | % | $3 | $2 | Stabilized | |||||||||||||
| Flourtown | Flourtown, PA | Development of a new 2,450 square foot bank pad building | 7 | % | $2 | $0 | 2022 | |||||||||||||
| Total Active Redevelopment projects (4) | 6 | % | $393 - $412 | $229 | ||||||||||||||||
| Active Property Improvement Projects (6) | ||||||||||||||||||||
| Various Properties | Ongoing improvements at 18 properties to better position properties to capture a disproportionate amount of retail demand post-COVID | 7% - 13% | $ | 80 | $ | 29 | ||||||||||||||
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 generally 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 but may for certain property improvement projects.
(3)Stabilization is generally the year in which 90% 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.
(5)Cost to date and projected cost are net of the proceeds we will receive from our New Market Tax Credit structure. See Note 3 of our December 31, 2019 Form 10-K for additional information.
(6)Property improvement projects generally consist of façade renovations, site improvements, landscaping, improved outdoor amenity spaces, and other upgrades to improve the overall look and environment of the property. These projects improve overall tenant and customer experiences, improve market rents, drive leasing demand, and/or provide outdoor spaces critical to meeting the needs of the current environment. Returns on these projects are typically seen over one to five years, however, some projects could extend beyond that. Projected ROI range reflects management's best estimate of the long term expected return on cost of these investments.
17
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||
| Assembly Row, Pike & Rose, and Santana Row | ||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||
| Impacts of Current Environment: | ||||||||||||||||||||||||||||||||
| Information provided below reflects management’s best estimate based on current available information, however the completion of construction, final costs, return on investment, and timing of stabilization may be impacted by the current environment, including the impacts of COVID-19 and supply chain disruptions affecting the broader economy. | ||||||||||||||||||||||||||||||||
| Projected | Total | Costs to | ||||||||||||||||||||||||||||||
| Property (1) | Opportunity | ROI (2) | Cost (3) | Date | Expected Opening Timeframe | |||||||||||||||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||||||||||||||
Assembly Row, Somerville, MA | ||||||||||||||||||||||||||||||||
| Phase III | - 277,000 SF of office - 500 residential units - 56,000 SF of retail | 6% | $465 - 485 | $440 | 150,000 square feet of office space delivered | |||||||||||||||||||||||||||
| 367 residential units delivered as of September 30, 2021 | ||||||||||||||||||||||||||||||||
| First retail tenants opened in Q2 2021 | ||||||||||||||||||||||||||||||||
| Future Phases | - 1.5M SF of commercial - 329 residential units | TBD | TBD | |||||||||||||||||||||||||||||
Pike & Rose, North Bethesda, MD | ||||||||||||||||||||||||||||||||
| Phase III | -212,000 SF of office -7,000 SF of retail | 6-7% | $128 - 135 | $116 | (4) | Opening began in Q3 2020 185,000 square feet leased | ||||||||||||||||||||||||||
| Future Phases (5) | - 740,000 SF of commercial - 741 residential units | TBD | TBD | |||||||||||||||||||||||||||||
Santana Row, San Jose, CA | ||||||||||||||||||||||||||||||||
| Santana West | - 376,000 SF of office - 1,750 parking spaces | 6-7% | $250 - 270 | $185 | Opening projected to begin in 2022 | |||||||||||||||||||||||||||
| Future Phases | -321,000 SF of commercial -395 residential units -604,000 SF of commercial at Santana West | TBD | TBD | |||||||||||||||||||||||||||||
Notes:
| (1) | Anticipated opening dates, total cost, and projected return on investment (ROI) are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors. | |||||||||||||||||||
| (2) | Projected ROI for development projects reflects the unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost. | |||||||||||||||||||
| (3) | Projected costs for Assembly Row and Pike & Rose include an allocation of infrastructure costs for the entire project. Phase I of Santana West includes an allocation of infrastructure for the Santana West site. | |||||||||||||||||||
| (4) | Federal Realty Investment Trust is leasing 45,000 square feet of office space at a market rent in Pike & Rose Phase III, which delivered in August 2020. Revenue related to this rent will be eliminated in the consolidated financial statements. | |||||||||||||||||||
| (5) | We are currently finalizing development plans for 915 Meeting Street at Pike & Rose which we expect to be a new 276,000 square foot office building, of which 105,000 square feet is pre-leased. Construction is expected to commence in late 2021/early 2022. | |||||||||||||||||||
18
| Federal Realty Investment Trust | |||||||||||||||||||||||
| Future Redevelopment Opportunities | |||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||
| 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 | Pan Am | Fairfax, VA | ||||||||||||||||||||
| Fresh Meadows | Queens, NY | Pike 7 Plaza | Vienna, VA | ||||||||||||||||||||
| Mercer Mall | Lawrenceville, NJ | Sylmar Towne Center | Sylmar, CA | ||||||||||||||||||||
| 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 | Grossmont Center | La Mesa, CA | ||||||||||||||||||||
| Bethesda Row | Bethesda, MD | Hastings Ranch Plaza | Pasadena, CA | ||||||||||||||||||||
| Dedham Plaza | Dedham, MA | Huntington | Huntington, NY | ||||||||||||||||||||
| Fairfax Junction | Fairfax, VA | Riverpoint Center | Chicago, IL | ||||||||||||||||||||
| Fourth Street | Berkeley, CA | Wildwood | Bethesda, MD | ||||||||||||||||||||
| Fresh Meadows | Queens, NY | Willow Grove | Willow Grove, PA | ||||||||||||||||||||
| Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties. | |||||||||||||||||||||||
| Barracks Road | Charlottesville, VA | Federal Plaza | Rockville, MD | ||||||||||||||||||||
| Bala Cynwyd | Bala Cynwyd, PA | Village at Shirlington | Arlington, VA | ||||||||||||||||||||
| Longer Term Mixed-Use Opportunities | |||||||||||||||||||||||
| Assembly Row (1) | Somerville, MA | Pike & Rose (2) | North Bethesda, MD | ||||||||||||||||||||
| Bala Cynwyd | Bala Cynwyd, PA | Santana Row (3) | San Jose, CA | ||||||||||||||||||||
| Pike 7 Plaza | Vienna, VA | Santana Row - Santana West (3) | San Jose, CA | ||||||||||||||||||||
| Notes: | |||||||||||||||||||||||
| (1) | Assembly Row | Remaining entitlements after Phase III include approximately 1.5 million square feet of commercial-use buildings and 329 residential units. | |||||||||||||||||||||
| (2) | Pike & Rose | Remaining entitlements after Phase III include approximately 740,000 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, as well as approximately 604,000 square feet of commercial space at Santana West. | |||||||||||||||||||||
19
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Property Acquisitions, Disposition, and Other Transactions | |||||||||||||||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||||||||||||||
Property Acquisitions
| Date | Property | City/State | GLA | Ownership % | Gross Value | Principal Tenants | ||||||||||||||||||||||||||||||||
| (in square feet) | (in millions) | |||||||||||||||||||||||||||||||||||||
| April 30, 2021 | Chesterbrook (1) | McLean, Virginia | 90,000 | 80% | $ | 32.1 | Safeway / Walgreens | |||||||||||||||||||||||||||||||
| June 1, 2021 | Grossmont Center (1) | La Mesa, California | 933,000 | 60% | $ | 175.0 | Target / Walmart / Macy’s / CVS | |||||||||||||||||||||||||||||||
| June 14, 2021 | Camelback Colonnade (1) | Phoenix, Arizona | 642,000 | 98% | $ | 162.5 | Fry's Food & Drug / Floor & Décor / Marshalls / Old Navy / Best Buy / Michaels / Nordstrom Last Chance / Bed Bath & Beyond / Ulta | |||||||||||||||||||||||||||||||
| June 14, 2021 | Hilton Village (1) (2) | Scottsdale, Arizona | 93,000 | 98% | $ | 37.5 | CVS / Houston's | |||||||||||||||||||||||||||||||
| September 2, 2021 | Twinbrooke Shopping Centre | Fairfax, Virginia | 109,000 | 100% | $ | 33.8 | Safeway / Walgreens | |||||||||||||||||||||||||||||||
(1)These acquisitions were completed through newly formed joint ventures, for which we own the controlling interest listed above, and therefore, these properties are consolidated in our financial statements.
(2)The land is controlled under a long-term ground lease that expires on December 31, 2076.
Disposition
| Date | Property | City/State | Sales Price | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| March 19, 2021 | Graham Park Plaza (portion) | Falls Church, Virginia | $ | 20.3 | |||||||||||||||||||
Other Transactions
On May 11, 2021, two of our outstanding mortgage notes receivable were repaid. Including interest, the net proceeds were $33.8 million. As a result of the transaction, our mortgage notes receivable, net of valuation allowance, decreased $30.3 million.
| Date | Type | Property | City/State | Purchase Price | ||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| January 4, 2021 | Acquisition of partner interest | Pike & Rose (hotel) | North Bethesda, Maryland | $ | 2.3 | (3) | ||||||||||||||||||||||||||
| February 22, 2021 | Acquisition of fee interest (24 acres) | Mount Vernon Plaza | Alexandria, Virginia | $ | 5.6 | (4) | ||||||||||||||||||||||||||
(3)We acquired our partner's 20% interest; and consequently, now own 100% of the hotel and consolidated the asset. Additionally, we repaid the $31.5 million mortgage loan encumbering the hotel.
(4)We now own the entire fee interest on this property.
20
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | ||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | ||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
| California | ||||||||||||||||||||||||||||||||||||||||||||
| Azalea | (4) | Los Angeles-Long Beach-Anaheim, CA | $ | 107,571 | $ | 40,000 | 22 | 223,000 | 99 | % | Marshalls / Ross Dress for Less / Ulta / Michaels | |||||||||||||||||||||||||||||||||
| Bell Gardens | (4) | Los Angeles-Long Beach-Anaheim, CA | 111,465 | 12,199 | 32 | 330,000 | 92 | % | 67,000 | Food 4 Less | Marshalls / Ross Dress for Less / Bob's Discount Furniture | |||||||||||||||||||||||||||||||||
| Colorado Blvd | Los Angeles-Long Beach-Anaheim, CA | 13,316 | 1 | 42,000 | 88 | % | Banana Republic / True Food Kitchen | |||||||||||||||||||||||||||||||||||||
| Crow Canyon Commons | San Francisco-Oakland-Hayward, CA | 90,631 | 22 | 243,000 | 94 | % | 32,000 | Sprouts | Total Wine & More / Rite Aid | |||||||||||||||||||||||||||||||||||
| East Bay Bridge | San Francisco-Oakland-Hayward, CA | 179,457 | 32 | 440,000 | 99 | % | 59,000 | Pak-N-Save | Home Depot / Target / Nordstrom Rack | |||||||||||||||||||||||||||||||||||
| Escondido Promenade | (4) | San Diego-Carlsbad, CA | 54,594 | 18 | 298,000 | 96 | % | TJ Maxx / Dick’s Sporting Goods / Ross Dress For Less / Bob's Discount Furniture | ||||||||||||||||||||||||||||||||||||
| Fourth Street | (4) | San Francisco-Oakland-Hayward, CA | 27,226 | 3 | 71,000 | 78 | % | CB2 | ||||||||||||||||||||||||||||||||||||
| Freedom Plaza | (4) | Los Angeles-Long Beach-Anaheim, CA | 41,464 | 9 | 102,000 | 100 | % | 31,000 | Smart & Final | Nike / Blink Fitness / Ross Dress For Less | ||||||||||||||||||||||||||||||||||
| Grossmont Center | (4) | San Diego-Carlsbad, CA | 175,865 | 64 | 933,000 | 99 | % | Target / Walmart / Macy’s / CVS | ||||||||||||||||||||||||||||||||||||
| Hastings Ranch Plaza | Los Angeles-Long Beach-Anaheim, CA | 25,471 | 15 | 273,000 | 100 | % | Marshalls / HomeGoods / CVS / Sears | |||||||||||||||||||||||||||||||||||||
| Hollywood Blvd | Los Angeles-Long Beach-Anaheim, CA | 61,848 | 3 | 181,000 | 86 | % | Target / Marshalls / L.A. Fitness | |||||||||||||||||||||||||||||||||||||
| Kings Court | (6) | San Jose-Sunnyvale-Santa Clara, CA | 11,610 | 8 | 81,000 | 100 | % | 31,000 | Lunardi's | CVS | ||||||||||||||||||||||||||||||||||
| Old Town Center | San Jose-Sunnyvale-Santa Clara, CA | 38,711 | 8 | 97,000 | 90 | % | Anthropologie / Banana Republic / Gap | |||||||||||||||||||||||||||||||||||||
| Olivo at Mission Hills | (4) | Los Angeles-Long Beach-Anaheim, CA | 82,015 | 12 | 155,000 | 96 | % | Target / 24 Hour Fitness / Ross Dress For Less | ||||||||||||||||||||||||||||||||||||
| Plaza Del Sol | (4) | Los Angeles-Long Beach-Anaheim, CA | 17,867 | 4 | 48,000 | 96 | % | Marshalls | ||||||||||||||||||||||||||||||||||||
| Plaza El Segundo / The Point | (4) | Los Angeles-Long Beach-Anaheim, CA | 298,201 | 125,000 | 50 | 500,000 | 92 | % | 66,000 | Whole Foods | Nordstrom Rack / HomeGoods / Dick's Sporting Goods / Multiple Restaurants | |||||||||||||||||||||||||||||||||
| San Antonio Center | (6) | San Jose-Sunnyvale-Santa Clara, CA | 47,955 | 22 | 212,000 | 98 | % | 14,000 | Trader Joe's | Walmart / 24 Hour Fitness | ||||||||||||||||||||||||||||||||||
| Santana Row | San Jose-Sunnyvale-Santa Clara, CA | 1,232,067 | 45 | 1,201,000 | 95 | % | 662 | Crate & Barrel / H&M / Best Buy / Multiple Restaurants | ||||||||||||||||||||||||||||||||||||
| Sylmar Towne Center | (4) | Los Angeles-Long Beach-Anaheim, CA | 46,169 | 12 | 148,000 | 93 | % | 43,000 | Food 4 Less | CVS | ||||||||||||||||||||||||||||||||||
| Third Street Promenade | Los Angeles-Long Beach-Anaheim, CA | 84,911 | 2 | 207,000 | 75 | % | adidas / J. Crew / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| Westgate Center | San Jose-Sunnyvale-Santa Clara, CA | 158,491 | 44 | 648,000 | 97 | % | Target / Nordstrom Rack / Nike Factory / TJ Maxx | |||||||||||||||||||||||||||||||||||||
| Total California | 2,906,905 | 428 | 6,433,000 | 95 | % | |||||||||||||||||||||||||||||||||||||||
| Washington Metropolitan Area | ||||||||||||||||||||||||||||||||||||||||||||
| Barcroft Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 49,722 | 10 | 113,000 | 94 | % | 46,000 | Harris Teeter | ||||||||||||||||||||||||||||||||||||
| Bethesda Row | Washington-Arlington-Alexandria, DC-VA-MD-WV | 248,154 | 17 | 529,000 | 94 | % | 180 | 40,000 | Giant Food | Apple / Equinox / Anthropologie / Multiple Restaurants | ||||||||||||||||||||||||||||||||||
| Birch & Broad | Washington-Arlington-Alexandria, DC-VA-MD-WV | 21,793 | 10 | 144,000 | 96 | % | 51,000 | Giant Food | CVS / Staples | |||||||||||||||||||||||||||||||||||
| Chesterbrook | (4) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 37,947 | 9 | 90,000 | 85 | % | 35,000 | Safeway | Walgreens / Starbucks | ||||||||||||||||||||||||||||||||||
| Congressional Plaza | (4) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 107,202 | 21 | 324,000 | 91 | % | 194 | 25,000 | The Fresh Market | Buy Buy Baby / Ulta / Barnes & Noble | |||||||||||||||||||||||||||||||||
| Courthouse Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 7,107 | 2 | 37,000 | 76 | % | ||||||||||||||||||||||||||||||||||||||
| Fairfax Junction | (6) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 41,457 | 11 | 124,000 | 93 | % | 23,000 | Aldi | CVS / Planet Fitness | ||||||||||||||||||||||||||||||||||
| Federal Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 71,176 | 18 | 249,000 | 95 | % | 14,000 | Trader Joe's | TJ Maxx / Micro Center / Ross Dress For Less | |||||||||||||||||||||||||||||||||||
21
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | ||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | ||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
| Friendship Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 36,441 | 1 | 119,000 | 66 | % | Marshalls / DSW / Maggiano's | |||||||||||||||||||||||||||||||||||||
| Gaithersburg Square | Washington-Arlington-Alexandria, DC-VA-MD-WV | 35,291 | 16 | 208,000 | 93 | % | Marshalls / Ross Dress For Less / Ashley Furniture HomeStore / CVS | |||||||||||||||||||||||||||||||||||||
| Graham Park Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 21,956 | 10 | 132,000 | 90 | % | 58,000 | Giant Food | ||||||||||||||||||||||||||||||||||||
| Idylwood Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 17,508 | 7 | 73,000 | 100 | % | 30,000 | Whole Foods | ||||||||||||||||||||||||||||||||||||
| Laurel | Washington-Arlington-Alexandria, DC-VA-MD-WV | 60,065 | 26 | 364,000 | 93 | % | 61,000 | Giant Food | Marshalls / L.A. Fitness / HomeGoods | |||||||||||||||||||||||||||||||||||
| Leesburg Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 38,393 | 26 | 235,000 | 94 | % | 55,000 | Giant Food | Petsmart / Office Depot | |||||||||||||||||||||||||||||||||||
| Montrose Crossing | Washington-Arlington-Alexandria, DC-VA-MD-WV | 166,166 | 64,121 | 36 | 368,000 | 100 | % | 73,000 | Giant Food | Marshalls / Home Depot Design Center / Old Navy / Bob's Discount Furniture | ||||||||||||||||||||||||||||||||||
| Mount Vernon/South Valley/7770 Richmond Hwy | (6) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 93,042 | 29 | 565,000 | 96 | % | 62,000 | Shoppers Food Warehouse | TJ Maxx / Home Depot / Bed, Bath & Beyond / Results Fitness | ||||||||||||||||||||||||||||||||||
| Old Keene Mill | Washington-Arlington-Alexandria, DC-VA-MD-WV | 13,100 | 10 | 91,000 | 95 | % | 24,000 | Whole Foods | Walgreens / Planet Fitness | |||||||||||||||||||||||||||||||||||
| Pan Am | Washington-Arlington-Alexandria, DC-VA-MD-WV | 30,301 | 25 | 228,000 | 95 | % | 65,000 | Safeway | Micro Center / CVS / Michaels | |||||||||||||||||||||||||||||||||||
| Pentagon Row | Washington-Arlington-Alexandria, DC-VA-MD-WV | 107,314 | 14 | 297,000 | 99 | % | 45,000 | Harris Teeter | TJ Maxx / DSW / Ulta | |||||||||||||||||||||||||||||||||||
| Pike & Rose | (5) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 714,966 | 24 | 574,000 | 98 | % | 765 | Porsche / Uniqlo / REI / H&M / L.L. Bean / Multiple Restaurants | |||||||||||||||||||||||||||||||||||
| Pike 7 Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 49,814 | 13 | 172,000 | 95 | % | TJ Maxx / DSW / Crunch Fitness / Staples | |||||||||||||||||||||||||||||||||||||
| Plaza del Mercado | Washington-Arlington-Alexandria, DC-VA-MD-WV | 46,947 | 10 | 116,000 | 95 | % | 18,000 | Aldi | CVS / L.A. Fitness | |||||||||||||||||||||||||||||||||||
| Quince Orchard | Washington-Arlington-Alexandria, DC-VA-MD-WV | 40,762 | 16 | 268,000 | 91 | % | 19,000 | Aldi | HomeGoods / L.A. Fitness / Staples | |||||||||||||||||||||||||||||||||||
| Rockville Town Square | (7) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 49,604 | 4,374 | 12 | 187,000 | 81 | % | 25,000 | Dawson's Market | CVS / Gold's Gym / Multiple Restaurants | |||||||||||||||||||||||||||||||||
| Rollingwood Apartments | Washington-Arlington-Alexandria, DC-VA-MD-WV | 12,626 | 14 | N/A | 100 | % | 282 | |||||||||||||||||||||||||||||||||||||
| Tower Shopping Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 22,750 | 12 | 111,000 | 88 | % | 26,000 | L.A. Mart | Talbots / Total Wine & More | |||||||||||||||||||||||||||||||||||
| Twinbrooke Shopping Centre | Washington-Arlington-Alexandria, DC-VA-MD-WV | 35,365 | 10 | 109,000 | 87 | % | 35,000 | Safeway | Walgreens | |||||||||||||||||||||||||||||||||||
| Tyson's Station | Washington-Arlington-Alexandria, DC-VA-MD-WV | 5,811 | 5 | 50,000 | 90 | % | 15,000 | Trader Joe's | ||||||||||||||||||||||||||||||||||||
| Village at Shirlington | (7) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 70,185 | 6,886 | 16 | 267,000 | 84 | % | 28,000 | Harris Teeter | CVS / AMC / Carlyle Grand Café | |||||||||||||||||||||||||||||||||
| Wildwood Shopping Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 27,329 | 12 | 88,000 | 96 | % | 20,000 | Balducci's | CVS / Flower Child | |||||||||||||||||||||||||||||||||||
| Total Washington Metropolitan Area | 2,280,294 | 442 | 6,232,000 | 93 | % | |||||||||||||||||||||||||||||||||||||||
| NY Metro/New Jersey | ||||||||||||||||||||||||||||||||||||||||||||
| Brick Plaza | New York-Newark-Jersey City, NY-NJ-PA | 103,527 | 46 | 408,000 | 93 | % | 14,000 | Trader Joe's | AMC / HomeGoods / Ulta / Burlington | |||||||||||||||||||||||||||||||||||
| Brook 35 | (4) (6) | New York-Newark-Jersey City, NY-NJ-PA | 49,966 | 11,500 | 11 | 99,000 | 92 | % | Banana Republic / Gap / Williams-Sonoma | |||||||||||||||||||||||||||||||||||
| Darien Commons | Bridgeport-Stamford-Norwalk, CT | 97,499 | 9 | 59,000 | 89 | % | 2 | Equinox / Walgreens | ||||||||||||||||||||||||||||||||||||
| Fresh Meadows | New York-Newark-Jersey City, NY-NJ-PA | 93,877 | 17 | 409,000 | 95 | % | 15,000 | Island of Gold | AMC / Kohl's / Michaels | |||||||||||||||||||||||||||||||||||
| Georgetowne Shopping Center | New York-Newark-Jersey City, NY-NJ-PA | 83,893 | 9 | 146,000 | 88 | % | 43,000 | Foodway | Five Below / IHOP | |||||||||||||||||||||||||||||||||||
| Greenlawn Plaza | New York-Newark-Jersey City, NY-NJ-PA | 32,389 | 13 | 103,000 | 92 | % | 46,000 | Greenlawn Farms | Tuesday Morning | |||||||||||||||||||||||||||||||||||
| Greenwich Avenue | Bridgeport-Stamford-Norwalk, CT | 23,748 | 1 | 35,000 | 100 | % | Saks Fifth Avenue | |||||||||||||||||||||||||||||||||||||
| Hauppauge | New York-Newark-Jersey City, NY-NJ-PA | 32,087 | 15 | 133,000 | 70 | % | 61,000 | Shop Rite | ||||||||||||||||||||||||||||||||||||
| Hoboken | (4) (8) | New York-Newark-Jersey City, NY-NJ-PA | 216,203 | 104,810 | 3 | 171,000 | 96 | % | 129 | CVS / New York Sports Club / Sephora / Multiple Restaurants | ||||||||||||||||||||||||||||||||||
| Huntington | New York-Newark-Jersey City, NY-NJ-PA | 47,509 | 21 | 212,000 | 83 | % | Petsmart / Buy Buy Baby / Michaels / Ulta | |||||||||||||||||||||||||||||||||||||
| Huntington Square | New York-Newark-Jersey City, NY-NJ-PA | 13,621 | 18 | 74,000 | 81 | % | Barnes & Noble | |||||||||||||||||||||||||||||||||||||
22
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | ||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | ||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
| Melville Mall | New York-Newark-Jersey City, NY-NJ-PA | 104,020 | 21 | 247,000 | 100 | % | 53,000 | Uncle Giuseppe's Marketplace | Marshalls / Dick's Sporting Goods / Field & Stream / Macy's Backstage | |||||||||||||||||||||||||||||||||||
| Mercer Mall | (7) | Trenton, NJ | 129,082 | 55,228 | 50 | 551,000 | 89 | % | 75,000 | Shop Rite | Ross Dress For Less / Nordstrom Rack / REI | |||||||||||||||||||||||||||||||||
| The Grove at Shrewsbury | (4) (6) | New York-Newark-Jersey City, NY-NJ-PA | 128,298 | 43,600 | 21 | 193,000 | 98 | % | Lululemon / Anthropologie / Pottery Barn / Williams-Sonoma | |||||||||||||||||||||||||||||||||||
| Troy | New York-Newark-Jersey City, NY-NJ-PA | 41,126 | 19 | 211,000 | 100 | % | Target / L.A. Fitness / Michaels | |||||||||||||||||||||||||||||||||||||
| Total NY Metro/New Jersey | 1,196,845 | 274 | 3,051,000 | 92 | % | |||||||||||||||||||||||||||||||||||||||
| Philadelphia Metropolitan Area | ||||||||||||||||||||||||||||||||||||||||||||
| Andorra | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 32,126 | 22 | 270,000 | 87 | % | 24,000 | Acme Markets | TJ Maxx / Kohl's / L.A. Fitness | |||||||||||||||||||||||||||||||||||
| Bala Cynwyd | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 66,146 | 23 | 174,000 | 96 | % | 87 | 45,000 | Acme Markets | Michaels / L.A. Fitness | ||||||||||||||||||||||||||||||||||
| Ellisburg | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 35,625 | 28 | 260,000 | 87 | % | 47,000 | Whole Foods | Buy Buy Baby | |||||||||||||||||||||||||||||||||||
| Flourtown | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 17,087 | 24 | 156,000 | 95 | % | 75,000 | Giant Food | Movie Tavern | |||||||||||||||||||||||||||||||||||
| Langhorne Square | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 23,434 | 21 | 223,000 | 99 | % | 55,000 | Redner's Warehouse Markets | Marshalls / Planet Fitness | |||||||||||||||||||||||||||||||||||
| Lawrence Park | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 48,357 | 29 | 359,000 | 90 | % | 53,000 | Acme Markets | TJ Maxx / HomeGoods / Barnes & Noble | |||||||||||||||||||||||||||||||||||
| Northeast | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 34,289 | 15 | 227,000 | 82 | % | Marshalls / Ulta / Skechers / Crunch Fitness | |||||||||||||||||||||||||||||||||||||
| Town Center of New Britain | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 16,701 | 17 | 124,000 | 87 | % | 36,000 | Giant Food | Rite Aid / Dollar Tree | |||||||||||||||||||||||||||||||||||
| Willow Grove | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 32,305 | 13 | 183,000 | 58 | % | Marshalls | |||||||||||||||||||||||||||||||||||||
| Wynnewood | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 42,597 | 14 | 249,000 | 96 | % | 9 | 98,000 | Giant Food | Bed, Bath & Beyond / Old Navy / DSW | ||||||||||||||||||||||||||||||||||
| Total Philadelphia Metropolitan Area | 348,667 | 206 | 2,225,000 | 88 | % | |||||||||||||||||||||||||||||||||||||||
| New England | ||||||||||||||||||||||||||||||||||||||||||||
| Assembly Row / Assembly Square Marketplace | (5) | Boston-Cambridge-Newton, MA-NH | 1,059,709 | 65 | 1,057,000 | 95 | % | 814 | 18,000 | Trader Joe's | TJ Maxx / AMC / LEGOLAND Discovery Center / Multiple Restaurants | |||||||||||||||||||||||||||||||||
| Campus Plaza | Boston-Cambridge-Newton, MA-NH | 30,529 | 15 | 114,000 | 96 | % | 46,000 | Roche Bros. | Burlington | |||||||||||||||||||||||||||||||||||
| Chelsea Commons | Boston-Cambridge-Newton, MA-NH | 30,498 | 4,948 | 37 | 222,000 | 93 | % | Home Depot / Planet Fitness | ||||||||||||||||||||||||||||||||||||
| Dedham Plaza | Boston-Cambridge-Newton, MA-NH | 47,444 | 19 | 245,000 | 88 | % | 80,000 | Star Market | Planet Fitness | |||||||||||||||||||||||||||||||||||
| Linden Square | Boston-Cambridge-Newton, MA-NH | 151,240 | 19 | 220,000 | 92 | % | 7 | 50,000 | Roche Bros. | CVS | ||||||||||||||||||||||||||||||||||
| North Dartmouth | Providence-Warwick, RI-MA | 9,369 | 28 | 48,000 | 100 | % | 48,000 | Stop & Shop | ||||||||||||||||||||||||||||||||||||
| Queen Anne Plaza | Boston-Cambridge-Newton, MA-NH | 18,584 | 17 | 149,000 | 99 | % | 50,000 | Big Y Foods | TJ Maxx / HomeGoods | |||||||||||||||||||||||||||||||||||
| Saugus Plaza | Boston-Cambridge-Newton, MA-NH | 17,082 | 15 | 166,000 | 97 | % | 55,000 | Super Stop & Shop | Floor & Décor | |||||||||||||||||||||||||||||||||||
| Total New England | 1,364,455 | 215 | 2,221,000 | 95 | % | |||||||||||||||||||||||||||||||||||||||
| Baltimore | ||||||||||||||||||||||||||||||||||||||||||||
| Governor Plaza | Baltimore-Columbia-Towson, MD | 26,346 | 24 | 242,000 | 79 | % | 16,500 | Aldi | Dick's Sporting Goods | |||||||||||||||||||||||||||||||||||
| Perring Plaza | Baltimore-Columbia-Towson, MD | 34,611 | 29 | 397,000 | 88 | % | 58,000 | Shoppers Food Warehouse | Home Depot / Micro Center / Burlington | |||||||||||||||||||||||||||||||||||
| THE AVENUE at White Marsh | (6) | Baltimore-Columbia-Towson, MD | 122,951 | 52,705 | 35 | 315,000 | 87 | % | AMC / Ulta / Old Navy / Barnes & Noble | |||||||||||||||||||||||||||||||||||
| The Shoppes at Nottingham Square | Baltimore-Columbia-Towson, MD | 18,467 | 4 | 32,000 | 96 | % | ||||||||||||||||||||||||||||||||||||||
| Towson Residential (Flats @ 703) | Baltimore-Columbia-Towson, MD | 22,402 | 1 | 4,000 | 100 | % | 105 | |||||||||||||||||||||||||||||||||||||
| White Marsh Plaza | Baltimore-Columbia-Towson, MD | 26,506 | 7 | 80,000 | 96 | % | 54,000 | Giant Food | ||||||||||||||||||||||||||||||||||||
23
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | ||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | ||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
| White Marsh Other | Baltimore-Columbia-Towson, MD | 31,729 | 18 | 70,000 | 97 | % | ||||||||||||||||||||||||||||||||||||||
| Total Baltimore | 283,012 | 118 | 1,140,000 | 87 | % | |||||||||||||||||||||||||||||||||||||||
| South Florida | ||||||||||||||||||||||||||||||||||||||||||||
| Cocowalk | (4) (9) | Miami-Fort Lauderdale-West Palm Beach, FL | 192,762 | 3 | 246,000 | 98 | % | Cinepolis Theaters / Youfit Health Club / Planta Restaurant | ||||||||||||||||||||||||||||||||||||
| Del Mar Village | Miami-Fort Lauderdale-West Palm Beach, FL | 73,929 | 17 | 187,000 | 95 | % | 44,000 | Winn Dixie | CVS / L.A. Fitness | |||||||||||||||||||||||||||||||||||
| Tower Shops | Miami-Fort Lauderdale-West Palm Beach, FL | 100,849 | 67 | 430,000 | 96 | % | 12,000 | Trader Joe's | TJ Maxx / Ross Dress For Less / Best Buy / Ulta | |||||||||||||||||||||||||||||||||||
| Total South Florida | 367,540 | 87 | 863,000 | 96 | % | |||||||||||||||||||||||||||||||||||||||
| Chicago | ||||||||||||||||||||||||||||||||||||||||||||
| Crossroads | Chicago-Naperville-Elgin, IL-IN-WI | 35,987 | 14 | 168,000 | 92 | % | L.A. Fitness / Ulta / Binny's / Ferguson's Bath, Kitchen & Lighting Gallery | |||||||||||||||||||||||||||||||||||||
| Finley Square | Chicago-Naperville-Elgin, IL-IN-WI | 41,426 | 21 | 280,000 | 90 | % | Bed, Bath & Beyond / Buy Buy Baby / Michaels / Portillo's | |||||||||||||||||||||||||||||||||||||
| Garden Market | Chicago-Naperville-Elgin, IL-IN-WI | 14,722 | 11 | 139,000 | 99 | % | 63,000 | Mariano's Fresh Market | Walgreens | |||||||||||||||||||||||||||||||||||
| Riverpoint Center | Chicago-Naperville-Elgin, IL-IN-WI | 121,558 | 17 | 211,000 | 91 | % | 86,000 | Jewel Osco | Marshalls / Old Navy | |||||||||||||||||||||||||||||||||||
| Total Chicago | 213,693 | 63 | 798,000 | 92 | % | |||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||
| Barracks Road | Charlottesville, VA | 69,875 | 40 | 498,000 | 92 | % | 99,000 | Harris Teeter / Kroger | Anthropologie / Nike / Bed, Bath & Beyond / Old Navy | |||||||||||||||||||||||||||||||||||
| Bristol Plaza | Hartford-West Hartford-East Hartford, CT | 35,053 | 22 | 264,000 | 83 | % | 74,000 | Stop & Shop | TJ Maxx / Burlington | |||||||||||||||||||||||||||||||||||
| Camelback Colonnade | (4) | Phoenix-Mesa-Chandler, AZ | 179,326 | 41 | 643,000 | 88 | % | 82,000 | Fry's Food & Drug | Floor & Décor / Marshalls / Nordstrom Last Chance / Best Buy | ||||||||||||||||||||||||||||||||||
| Gratiot Plaza | Detroit-Warren-Dearborn, MI | 20,102 | 20 | 215,000 | 100 | % | 69,000 | Kroger | Bed, Bath & Beyond / Best Buy / DSW | |||||||||||||||||||||||||||||||||||
| Hilton Village | (4) | Phoenix-Mesa-Chandler, AZ | 40,028 | 11 | 93,000 | 96 | % | CVS / Houston's | ||||||||||||||||||||||||||||||||||||
| Lancaster | (7) | Lancaster, PA | 13,296 | 5,549 | 11 | 126,000 | 96 | % | 75,000 | Giant Food | ||||||||||||||||||||||||||||||||||
| 29th Place | Charlottesville, VA | 39,865 | 15 | 168,000 | 98 | % | 32,000 | Lidl | HomeGoods / DSW / Staples | |||||||||||||||||||||||||||||||||||
| Willow Lawn | Richmond, VA | 105,625 | 37 | 464,000 | 96 | % | 66,000 | Kroger | Old Navy / Ross Dress For Less / Gold's Gym / Dick's Sporting Goods | |||||||||||||||||||||||||||||||||||
| Total Other | 503,170 | 197 | 2,471,000 | 92 | % | |||||||||||||||||||||||||||||||||||||||
| Grand Total | $ | 9,464,581 | $ | 530,920 | 2,030 | 25,434,000 | 93 | % | 3,236 | |||||||||||||||||||||||||||||||||||
| Notes: | |||||
| (1) | Includes "Finance lease right of use assets." | ||||
| (2) | The mortgage or finance lease liabilities 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. | ||||
| (3) | Represents the GLA and the percentage leased 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. | ||||
| (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 the property is subject to finance lease liabilities. | ||||
| (8) | This property includes 39 buildings primarily along Washington Street and 14th Street in Hoboken, New Jersey. | ||||
| (9) | This property includes interests in five buildings in addition to our initial acquisition. | ||||
24
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail Leasing Summary (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Lease Summary - Comparable (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) Per Sq. Ft. (PSF) | Prior Rent (4) PSF | Annual Increase (Decrease) in Rent | Cash Basis % Increase (Decrease)Over Prior Rent | Straight-lined Basis % Increase Over Prior Rent | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2021 | 119 | 100 | % | 430,234 | $ | 40.73 | $ | 38.13 | $ | 1,119,874 | 7 | % | 16 | % | 6.8 | $ | 15,214,700 | $ | 35.36 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 124 | 100 | % | 558,490 | $ | 37.34 | $ | 34.72 | $ | 1,460,996 | 8 | % | 18 | % | 8.4 | $ | 28,679,057 | $ | 51.35 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2021 | 103 | 100 | % | 506,307 | $ | 36.58 | $ | 33.64 | $ | 1,488,763 | 9 | % | 17 | % | 7.7 | $ | 16,231,682 | $ | 32.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 96 | 100 | % | 449,783 | $ | 32.16 | $ | 31.95 | $ | 93,635 | 1 | % | 11 | % | 6.0 | $ | 12,945,573 | $ | 28.78 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 442 | 100 | % | 1,944,814 | $ | 36.69 | $ | 34.55 | $ | 4,163,268 | 6 | % | 16 | % | 7.3 | $ | 73,071,012 | $ | 37.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Lease Summary - Comparable (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) PSF | Prior Rent (4) PSF | Annual Increase (Decrease) in Rent | Cash Basis % Increase (Decrease)Over Prior Rent | Straight-lined Basis % Increase Over Prior Rent | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2021 | 56 | 47 | % | 219,614 | $ | 39.12 | $ | 36.43 | $ | 592,684 | 7 | % | 15 | % | 8.4 | $ | 14,322,727 | $ | 65.22 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 75 | 60 | % | 414,602 | $ | 36.09 | $ | 32.60 | $ | 1,447,345 | 11 | % | 20 | % | 9.7 | $ | 28,140,419 | $ | 67.87 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2021 | 54 | 52 | % | 220,014 | $ | 39.70 | $ | 33.62 | $ | 1,337,437 | 18 | % | 23 | % | 8.5 | $ | 14,773,582 | $ | 67.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 39 | 41 | % | 156,262 | $ | 35.65 | $ | 37.27 | $ | (253,720) | (4) | % | 8 | % | 9.1 | $ | 12,731,293 | $ | 81.47 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 224 | 51 | % | 1,010,492 | $ | 37.47 | $ | 34.38 | $ | 3,123,746 | 9 | % | 18 | % | 9.0 | $ | 69,968,021 | $ | 69.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Renewal Lease Summary - Comparable (2) (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) PSF | Prior Rent (4) PSF | Annual Increase (Decrease) 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 PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2021 | 63 | 53 | % | 210,620 | $ | 42.40 | $ | 39.90 | $ | 527,190 | 6 | % | 16 | % | 5.3 | $ | 891,973 | $ | 4.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 49 | 40 | % | 143,888 | $ | 40.92 | $ | 40.82 | $ | 13,651 | — | % | 12 | % | 5.2 | $ | 538,638 | $ | 3.74 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2021 | 49 | 48 | % | 286,293 | $ | 34.18 | $ | 33.65 | $ | 151,326 | 2 | % | 11 | % | 7.0 | $ | 1,458,100 | $ | 5.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 57 | 59 | % | 293,521 | $ | 30.30 | $ | 29.12 | $ | 347,355 | 4 | % | 13 | % | 4.0 | $ | 214,280 | $ | 0.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 218 | 49 | % | 934,322 | $ | 35.85 | $ | 34.74 | $ | 1,039,522 | 3 | % | 13 | % | 5.4 | $ | 3,102,991 | $ | 3.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Lease Summary - Comparable and Non-comparable (2) (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | GLA Signed | Contractual Rent (3) PSF | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2021 | 124 | 481,607 | $ | 39.87 | 7.1 | $ | 24,145,403 | $ | 50.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2021 | 133 | 576,782 | $ | 37.57 | 8.5 | $ | 29,473,951 | $ | 51.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2021 | 110 | 514,636 | $ | 36.94 | 7.7 | $ | 17,005,312 | $ | 33.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2020 | 103 | 468,901 | $ | 32.67 | 6.1 | $ | 13,430,989 | $ | 28.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 470 | 2,041,926 | $ | 36.83 | 7.5 | $ | 84,055,655 | $ | 41.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes: | |||||
| (1) | Information reflects activity in retail spaces only; office and residential spaces are not included. See Glossary of Terms for further discussion of information included above. | ||||
| (2) | Comparable leases represent those leases signed on spaces for which there was a former tenant. | ||||
| (3) | Contractual rent represents annual market rent under the new lease. | ||||
| (4) | Prior rent represents contractual rent from the prior tenant in the final 12 months of the term. | ||||
| (5) | Weighted average is determined on the basis of contractual rent for the lease. | ||||
| (6) | See Glossary of Terms. | ||||
| (7) | Approximately $2.3 million ($3.42 per square foot) in 3rd Quarter 2021, $2.9 million ($1.75 per square foot) in 2nd Quarter 2021, and $0.1 million ($0.03 per square foot) in 4th Quarter 2020 of the Tenant Improvements & Incentives are for properties under active redevelopment and are included in the Projected Cost for those properties on the Summary of Redevelopment Opportunities. | ||||
| (8) | Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new. | ||||
| (9) | The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq. Ft. and Weighted Average Lease Term columns include information for leases signed at Phase 3 of both of our Assembly Row and Pike & Rose projects. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq. Ft. columns do not include the tenant improvements and incentives on leases signed for those projects; these amounts for leases signed for Phase 3 of Assembly Row and Pike & Rose are included in the Projected Cost column for those projects shown on the Assembly Row and Pike & Rose schedule. | ||||
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| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Lease Expirations | |||||||||||||||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||||||||||||||
| 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) | ||||||||||||||||||||||||||
| 2021 | 160,000 | 1 | % | $ | 13.41 | 226,000 | 3 | % | $ | 31.51 | 386,000 | 2 | % | $ | 24.01 | ||||||||||||||||||||
| 2022 | 903,000 | 6 | % | $ | 19.48 | 805,000 | 11 | % | $ | 42.96 | 1,708,000 | 7 | % | $ | 30.54 | ||||||||||||||||||||
| 2023 | 1,524,000 | 10 | % | $ | 19.97 | 1,044,000 | 14 | % | $ | 43.30 | 2,567,000 | 11 | % | $ | 29.46 | ||||||||||||||||||||
| 2024 | 2,600,000 | 17 | % | $ | 18.06 | 979,000 | 14 | % | $ | 46.77 | 3,579,000 | 16 | % | $ | 25.91 | ||||||||||||||||||||
| 2025 | 2,125,000 | 14 | % | $ | 18.98 | 1,020,000 | 14 | % | $ | 41.42 | 3,145,000 | 14 | % | $ | 26.25 | ||||||||||||||||||||
| 2026 | 1,310,000 | 8 | % | $ | 21.88 | 793,000 | 11 | % | $ | 48.60 | 2,103,000 | 9 | % | $ | 31.95 | ||||||||||||||||||||
| 2027 | 1,448,000 | 9 | % | $ | 25.50 | 632,000 | 9 | % | $ | 50.77 | 2,080,000 | 9 | % | $ | 33.19 | ||||||||||||||||||||
| 2028 | 1,085,000 | 7 | % | $ | 20.02 | 436,000 | 6 | % | $ | 53.11 | 1,521,000 | 7 | % | $ | 29.50 | ||||||||||||||||||||
| 2029 | 1,016,000 | 6 | % | $ | 27.91 | 415,000 | 6 | % | $ | 47.16 | 1,431,000 | 6 | % | $ | 33.50 | ||||||||||||||||||||
| 2030 | 830,000 | 5 | % | $ | 18.00 | 272,000 | 4 | % | $ | 50.30 | 1,103,000 | 5 | % | $ | 25.97 | ||||||||||||||||||||
| Thereafter | 2,744,000 | 17 | % | $ | 28.03 | 584,000 | 8 | % | $ | 44.41 | 3,329,000 | 14 | % | $ | 30.91 | ||||||||||||||||||||
| Total (3) | 15,745,000 | 100 | % | $ | 21.91 | 7,206,000 | 100 | % | $ | 45.51 | 22,952,000 | 100 | % | $ | 29.32 | ||||||||||||||||||||
| 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) | ||||||||||||||||||||||||||
| 2021 | 160,000 | 1 | % | $ | 13.41 | 227,000 | 3 | % | $ | 32.44 | 387,000 | 2 | % | $ | 24.58 | ||||||||||||||||||||
| 2022 | 672,000 | 4 | % | $ | 16.67 | 695,000 | 10 | % | $ | 40.72 | 1,367,000 | 6 | % | $ | 28.90 | ||||||||||||||||||||
| 2023 | 404,000 | 3 | % | $ | 19.59 | 678,000 | 9 | % | $ | 41.69 | 1,082,000 | 5 | % | $ | 33.44 | ||||||||||||||||||||
| 2024 | 613,000 | 4 | % | $ | 21.01 | 535,000 | 7 | % | $ | 45.46 | 1,148,000 | 5 | % | $ | 32.39 | ||||||||||||||||||||
| 2025 | 742,000 | 5 | % | $ | 16.49 | 686,000 | 10 | % | $ | 37.96 | 1,428,000 | 6 | % | $ | 26.80 | ||||||||||||||||||||
| 2026 | 382,000 | 2 | % | $ | 23.61 | 420,000 | 6 | % | $ | 49.29 | 801,000 | 4 | % | $ | 37.05 | ||||||||||||||||||||
| 2027 | 547,000 | 3 | % | $ | 21.34 | 407,000 | 6 | % | $ | 52.13 | 955,000 | 4 | % | $ | 34.47 | ||||||||||||||||||||
| 2028 | 828,000 | 5 | % | $ | 16.74 | 404,000 | 6 | % | $ | 48.25 | 1,232,000 | 5 | % | $ | 27.07 | ||||||||||||||||||||
| 2029 | 798,000 | 5 | % | $ | 24.29 | 398,000 | 5 | % | $ | 44.23 | 1,196,000 | 5 | % | $ | 30.93 | ||||||||||||||||||||
| 2030 | 552,000 | 4 | % | $ | 19.30 | 346,000 | 5 | % | $ | 46.37 | 898,000 | 4 | % | $ | 29.74 | ||||||||||||||||||||
| Thereafter | 10,047,000 | 64 | % | $ | 23.29 | 2,410,000 | 33 | % | $ | 49.20 | 12,458,000 | 54 | % | $ | 28.30 | ||||||||||||||||||||
| Total (3) | 15,745,000 | 100 | % | $ | 21.91 | 7,206,000 | 100 | % | $ | 45.51 | 22,952,000 | 100 | % | $ | 29.32 | ||||||||||||||||||||
| Notes: | |||||
| (1) | Anchor is defined as a commercial tenant leasing 10,000 square feet or more. | ||||
| (2) | Minimum Rent reflects in-place contractual (defined as rents on a cash-basis without taking the impacts of rent abatements into account) rent as of September 30, 2021. | ||||
| (3) | Represents occupied square footage of the commercial portion of our portfolio as of September 30, 2021. | ||||
| (4) | Individual items may not add up to total due to rounding. | ||||
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| Federal Realty Investment Trust | |||||||||||||||||||||||
| Portfolio Leased Statistics | |||||||||||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||
| Overall Portfolio Statistics (1) | At September 30, 2021 | At September 30, 2020 | |||||||||||||||||||||
| Type | Size | Leased | Leased % | Size | Leased | Leased % | |||||||||||||||||
| Commercial Properties (2) (3) (4) (SF) | 25,434,000 | 23,608,000 | 92.8 | % | 24,060,000 | 22,021,000 | 91.5 | % | |||||||||||||||
| Residential Properties (5) (units) | 2,869 | 2,809 | 97.9 | % | 2,869 | 2,640 | 92.0 | % | |||||||||||||||
| Comparable Property Statistics (1) | At September 30, 2021 | At September 30, 2020 | |||||||||||||||||||||
| Type | Size | Leased | Leased % | Size | Leased | Leased % | |||||||||||||||||
| Commercial Properties (2) (3) (SF) | 22,665,000 | 21,002,000 | 92.7 | % | 22,689,000 | 20,920,000 | 92.2 | % | |||||||||||||||
| Residential Properties (units) | 2,867 | 2,807 | 97.9 | % | 2,867 | 2,638 | 92.0 | % | |||||||||||||||
Notes
| (1) | See Glossary of Terms. | ||||
| (2) | Occupied percentage was 90.2% and 90.0% at September 30, 2021 and 2020, respectively, and comparable property occupied percentage was 90.0% and 90.9% at September 30, 2021 and 2020, respectively. | ||||
| (3) | Leasable square feet excludes redevelopment square footage not yet placed in service. | ||||
| (4) | At September 30, 2021, leased percentage was 96.3% for anchor tenants and 86.1% for small shop tenants. | ||||
| (5) | Our residential metrics exclude "Miscela," our new residential building that opened at Assembly Row in 3Q21, and is currently in the process of being completed and leased-up for the first time. If these units were included, our total residential units would be 3,236 and our percentage leased would be 93.7%. | ||||
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| Federal Realty Investment Trust | ||||||||||||||||||||||||||
| Summary of Top 25 Tenants | ||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||
| 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 Locations Leased | |||||||||||||||||||
| 1 | TJX Companies, The | A / A2 / NR | $ | 20,574,000 | 2.69 | % | 1,044,000 | 3.67 | % | 33 | ||||||||||||||||
| 2 | Ahold Delhaize | BBB / Baa1 / NR | $ | 15,259,000 | 2.00 | % | 852,000 | 3.00 | % | 14 | ||||||||||||||||
| 3 | NetApp, Inc. | BBB+ / Baa2 / NR | $ | 13,927,000 | 1.82 | % | 304,000 | 1.07 | % | 1 | ||||||||||||||||
| 4 | Splunk, Inc. | NR / NR / NR | $ | 11,566,000 | 1.51 | % | 235,000 | 0.83 | % | 1 | ||||||||||||||||
| 5 | Gap, Inc., The | BB / Ba2 / NR | $ | 10,832,000 | 1.42 | % | 304,000 | 1.07 | % | 28 | ||||||||||||||||
| 6 | CVS Corporation | BBB / Baa2 / NR | $ | 10,831,000 | 1.42 | % | 300,000 | 1.06 | % | 22 | ||||||||||||||||
| 7 | L.A. Fitness International LLC | CCC+ / Caa1 / NR | $ | 10,490,000 | 1.37 | % | 415,000 | 1.46 | % | 10 | ||||||||||||||||
| 8 | Home Depot, Inc. | A / A2 / A | $ | 7,285,000 | 0.95 | % | 478,000 | 1.68 | % | 6 | ||||||||||||||||
| 9 | Bed, Bath & Beyond, Inc. | B+ / Ba3 / NR | $ | 7,037,000 | 0.92 | % | 475,000 | 1.67 | % | 12 | ||||||||||||||||
| 10 | Kroger Co., The | BBB / Baa1 / NR | $ | 7,029,000 | 0.92 | % | 611,000 | 2.15 | % | 12 | ||||||||||||||||
| 11 | Michaels Stores, Inc. | B / B1 / NR | $ | 6,876,000 | 0.90 | % | 347,000 | 1.22 | % | 15 | ||||||||||||||||
| 12 | Bank of America, N.A. | A- / A2 / AA- | $ | 6,811,000 | 0.89 | % | 118,000 | 0.42 | % | 27 | ||||||||||||||||
| 13 | Puma North America, Inc. | NR / NR / NR | $ | 6,801,000 | 0.89 | % | 155,000 | 0.55 | % | 2 | ||||||||||||||||
| 14 | Ross Stores, Inc. | BBB+ / A2 / NR | $ | 6,591,000 | 0.86 | % | 315,000 | 1.11 | % | 11 | ||||||||||||||||
| 15 | Best Buy Co., Inc. | BBB+ / A3 / NR | $ | 6,496,000 | 0.85 | % | 233,000 | 0.82 | % | 5 | ||||||||||||||||
| 16 | Albertsons Companies, Inc. (Acme, Balducci's, Safeway) | BB / Ba2 / NR | $ | 6,486,000 | 0.85 | % | 502,000 | 1.77 | % | 10 | ||||||||||||||||
| 17 | Dick's Sporting Goods, Inc. | NR / NR / NR | $ | 6,318,000 | 0.83 | % | 289,000 | 1.02 | % | 6 | ||||||||||||||||
| 18 | DSW, Inc. | NR / NR / NR | $ | 5,720,000 | 0.75 | % | 224,000 | 0.79 | % | 11 | ||||||||||||||||
| 19 | Ulta Beauty, Inc. | NR / NR / NR | $ | 5,643,000 | 0.74 | % | 161,000 | 0.57 | % | 15 | ||||||||||||||||
| 20 | AMC Entertainment Inc. | CCC+ / Caa3 / NR | $ | 5,424,000 | 0.71 | % | 233,000 | 0.82 | % | 5 | ||||||||||||||||
| 21 | Target Corporation | A / A2 / A | $ | 5,356,000 | 0.70 | % | 593,000 | 2.09 | % | 6 | ||||||||||||||||
| 22 | Wells Fargo Bank, N.A. | BBB+ / A1 / A+ | $ | 5,055,000 | 0.66 | % | 66,000 | 0.23 | % | 16 | ||||||||||||||||
| 23 | Hudson's Bay Company (Saks) | NR / NR / NR | $ | 5,042,000 | 0.66 | % | 100,000 | 0.35 | % | 3 | ||||||||||||||||
| 24 | JPMorgan Chase Bank | A- / A2 / AA- | $ | 4,966,000 | 0.65 | % | 85,000 | 0.30 | % | 19 | ||||||||||||||||
| 25 | Whole Foods Market, Inc. | AA- / A1 / NR | $ | 4,772,000 | 0.62 | % | 167,000 | 0.59 | % | 4 | ||||||||||||||||
| Totals - Top 25 Tenants | $ | 203,187,000 | 26.61 | % | 8,606,000 | 30.28 | % | 294 | ||||||||||||||||||
| Total (5): | $ | 763,575,000 | (2) | 28,418,000 | (4) | |||||||||||||||||||||
| Notes: | ||||||||||||||||||||||||||
| (1) | Credit Ratings are as of September 30, 2021. Subsequent rating changes have not been reflected. | |||||||||||||||||||||||||
| (2) | See Glossary of Terms. | |||||||||||||||||||||||||
| (3) | Individual items may not add up to total due to rounding. | |||||||||||||||||||||||||
| (4) | Excludes redevelopment square footage not yet placed in service. | |||||||||||||||||||||||||
| (5) | Totals reflect both the commercial and residential portions of our properties. | |||||||||||||||||||||||||
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| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||
| Tenant Diversification by Category | ||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||
The below reflects the breakout of our Annualized Base Rent1 as of September 30, 2021 by type of tenant:
| 25% of Annualized Base Rent comes from Essential Retail | ||||||||
| 22% of Annualized Base Rent comes from Office and Residential | ||||||||
Notes:
| (1) | See Glossary of Terms. Excludes redevelopment square footage not yet placed in service. | |||||||
| (2) | Communications & Home Office includes: Telecommunications, Electronics, and Office Supply. | |||||||
| (3) | Other Essential includes: Auto, Liquor, Home Improvement, Pets, and Medical. | |||||||
| (4) | Total Restaurants comprise full service (8%) and quick service (8%). | |||||||
| (5) | Experiential includes: Activity, Cinema, and Entertainment. | |||||||
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| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||
| Reconciliation of FFO Guidance | ||||||||||||||||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2021 and 2022. Estimates do not include the impact from potential acquisitions or dispositions which have not closed as of September 30, 2021.
| Full Year 2021 Guidance Range | |||||||||||
| Low | High | ||||||||||
| Estimated net income available to common shareholders, per diluted share | $ | 2.30 | $ | 2.35 | |||||||
| Adjustments: | |||||||||||
| Estimated gain on sale of real estate, net | (0.22) | (0.22) | |||||||||
| Estimated depreciation and amortization | 3.37 | 3.37 | |||||||||
| Estimated FFO per diluted share (1) | $ | 5.45 | $ | 5.50 | |||||||
| Full Year 2022 Guidance Range | |||||||||||
| Low | High | ||||||||||
| Estimated net income available to common shareholders, per diluted share | $ | 2.25 | $ | 2.45 | |||||||
| Adjustments: | |||||||||||
| Estimated depreciation and amortization | 3.40 | 3.40 | |||||||||
| Estimated FFO per diluted share (1) | $ | 5.65 | $ | 5.85 | |||||||
Note:
(1) See Glossary of Terms. Individual items may not add up to total due to rounding.
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Glossary of Terms
EBITDA for Real Estate ("EBITDAre"): EBITDAre is a non-GAAP measure that the National Association of Real Estate Investment Trusts ("NAREIT") defines as: net income computed in accordance with GAAP plus net interest expense, income tax expense, depreciation and amortization, gain or loss on sale of real estate, impairments of real estate and change in control of interest, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We calculate EBITDAre consistent with the NAREIT definition. As EBITDA is a widely known and understood measure of performance, management believes EBITDAre represents an additional non-GAAP performance measure, independent of a company's capital structure, that will provide investors with a uniform basis to measure the enterprise value of a company. EBITDAre also 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 EBITDAre for the three and nine months ended September 30, 2021 and 2020 is as follows:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Net income (loss) | $ | 54,541 | $ | (33,623) | $ | 152,339 | $ | 33,677 | |||||||||||||||
| Interest expense | 32,249 | 36,228 | 95,511 | 98,746 | |||||||||||||||||||
| Other interest income | (88) | (538) | (701) | (1,355) | |||||||||||||||||||
| Income tax provision (benefit) | 64 | 154 | (3) | (318) | |||||||||||||||||||
| Depreciation and amortization | 70,611 | 65,631 | 202,160 | 190,603 | |||||||||||||||||||
| Gain on sale of real estate and change in control of interest | — | — | (17,428) | (11,682) | |||||||||||||||||||
| Impairment charge | — | 57,218 | — | 57,218 | |||||||||||||||||||
| Adjustments of EBITDAre of unconsolidated affiliates | 905 | 1,557 | 2,779 | 4,900 | |||||||||||||||||||
| EBITDAre | $ | 158,282 | $ | 126,627 | $ | 434,657 | $ | 371,789 | |||||||||||||||
Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, 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 and mortgage interest income, less rental expenses and real estate taxes.
Overall Portfolio: Includes all operating properties owned in reporting period.
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. Comparable property growth statistics are calculated on a GAAP basis.
Annualized Base Rent (ABR): Represents aggregate, annualized in-place contractual (defined as rents billed on a cash basis without taking the impact of rent abatements into account) minimum rent for all occupied spaces as of the reporting period.
Retail Leasing Summary - Lease Rollover Calculation: The rental increases associated with comparable spaces generally include all leases signed for retail space in arms-length transactions reflecting market leverage between landlords and tenants during the period. The comparison between average rent for expiring leases and new leases is determined by including contractual rent on the expiring lease and annual market rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgement as to how to most effectively reflect the comparability of rents reported in the calculation. As a result of accommodations made to certain tenants to help them stay open during and after the COVID-19 pandemic, we have found it necessary to exercise more judgement in 2020 and 2021 than in prior years in order to appropriately reflect the comparability of rents in the calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, capital investment made in the space and the specific lease structure. Rent abatement and short term rent restructuring agreements that are a result of COVID-19 impacts are not included in this calculation.
Tenant Improvements and Incentives: Represents the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.
31