BACK
- Press Release
Federal Realty Investment Trust Announces Fourth Quarter and Year-End 2008 Operating Results
Federal Realty Investment Trust Announces Fourth Quarter and Year-End 2008 Operating Results
ROCKVILLE, Md.,
(Logo: http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO )
Financial Results
Federal Realty generated funds from operations available for common shareholders (FFO) of
Net income available for common shareholders was
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
Portfolio Results
In fourth quarter 2008, same-center property operating income, including redevelopment and expansion properties, increased 5.5% over fourth quarter 2007. When redevelopment and expansion properties are excluded from same-center results, property operating income for fourth quarter 2008 increased 1.7% over fourth quarter 2007. On an annual basis, same-center property operating income in 2008 increased 4.2% including redevelopments and expansions, and 1.2% excluding redevelopments and expansions.
The overall portfolio was 95.0% leased as of
During fourth quarter 2008, the Trust signed 78 leases for 334,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 330,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 13%. The average contractual rent on this comparable space for the first year of the new lease is
For all of 2008, Federal Realty signed 300 leases representing 1.2 million square feet of comparable retail space at an average cash-basis contractual rent increase per square foot of 21%, and 36% on a GAAP-basis. The average cash-basis contractual rent on this comparable space for the first year of the new lease is
"We are very pleased with our performance in fourth quarter and for full year 2008, particularly given the recessionary environment," commented
Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees left the regular dividend rate on its common shares unchanged, declaring a regular quarterly cash dividend of
Guidance
Federal Realty established guidance for 2009 FFO per diluted share at a range of
Conference Call Information
Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its fourth quarter and year-end 2008 earnings conference call, which is scheduled for
About Federal Realty
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
-- risks that our tenants will not pay rent or that we may be unable to
renew leases or re-let space at favorable rents as leases expire;
-- risks that we may not be able to proceed with or obtain necessary
approvals for any redevelopment or renovation project, and that
completion of anticipated or ongoing property redevelopments or
renovations may cost more, take more time to complete, or fail to
perform as expected;
-- risks that the number of properties we acquire for our own account,
and therefore the amount of capital we invest in acquisitions, may be
impacted by our real estate partnership;
-- 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
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 of financing, such as our ability to consummate additional
financings or obtain replacement financing on terms which are
acceptable to us, our ability to meet existing financial covenants and
the limitations imposed on our operations by those covenants, and the
possibility of increases in interest rates that would result in
increased interest expense; and
-- risks related to our status as a real estate investment trust,
commonly referred to as a REIT, for federal income tax purposes, such
as the existence of complex tax regulations relating to our status as
a REIT, the effect of future changes in REIT requirements as a result
of new legislation, and the adverse consequences of the failure to
qualify as a REIT.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed
Federal Realty Investment Trust
Summarized Balance Sheets
December 31, 2008
December 31,
2008 2007
---- ----
(in thousands)
ASSETS (unaudited)
Real estate, at cost
Operating $3,567,035 $3,265,020
Construction-in-progress 106,650 147,925
Assets held for sale (discontinued
operations) - 39,902
--- ------
3,673,685 3,452,847
Less accumulated depreciation and
amortization (846,258) (756,703)
-------- --------
Net real estate 2,827,427 2,696,144
Cash and cash equivalents 15,223 50,691
Accounts and notes receivable 73,688 61,108
Mortgage notes receivable 45,780 40,638
Investment in real estate partnership 29,252 29,646
Prepaid expenses and other assets 101,406 111,070
------- -------
TOTAL ASSETS $3,092,776 $2,989,297
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable and capital lease
obligations $452,810 $450,084
Notes payable 336,391 210,820
Senior notes and debentures 956,584 977,556
Accounts payable and other liabilities 200,037 204,387
------- -------
Total liabilities 1,945,822 1,842,847
Minority interests 32,352 31,818
Shareholders' equity
Preferred stock 9,997 9,997
Common shares and other shareholders'
equity 1,104,605 1,104,635
--------- ---------
Total shareholders' equity 1,114,602 1,114,632
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,092,776 $2,989,297
========== ==========
Federal Realty Investment Trust
Summarized Income Statements
December 31, 2008
Three months Year ended
ended December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
(in thousands, except per share data)
(unaudited)
Revenue
Rental income $130,432 $122,128 $501,964 $465,728
Other property income 1,998 3,284 14,013 12,834
Mortgage interest income 1,206 1,174 4,548 4,560
----- ----- ----- -----
Total revenue 133,636 126,586 520,525 483,122
------- ------- ------- -------
Expenses
Rental expenses 28,724 26,354 109,718 99,363
Real estate taxes 14,408 13,154 55,714 46,897
General and administrative 7,281 7,687 26,732 26,581
Depreciation and amortization 29,218 26,215 111,022 101,633
------ ------ ------- -------
Total operating expenses 79,631 73,410 303,186 274,474
------ ------ ------- -------
Operating income 54,005 53,176 217,339 208,648
Other interest income 254 298 916 921
Interest expense (24,997) (27,118) (99,163) (111,365)
Income from real estate
partnership 432 275 1,612 1,395
--- --- ----- -----
Income from continuing
operations before minority
interests 29,694 26,631 120,704 99,599
Minority interests (1,310) (1,281) (5,366) (5,590)
------ ------ ------ ------
Income from continuing
operations 28,384 25,350 115,338 94,009
Discontinued operations
Income from discontinued
operations 207 999 1,877 6,760
Gain on sale of real estate
from discontinued operations
5,134 95,819 12,572 94,768
----- ------ ------ ------
Results from discontinued
operations 5,341 96,818 14,449 101,528
----- ------ ------ -------
Net income 33,725 122,168 129,787 195,537
Dividends on preferred stock (135) (135) (541) (442)
Net income available for
common shareholders $33,590 $122,033 $129,246 $195,095
======= ======== ======== ========
EARNINGS PER COMMON SHARE, BASIC
Continuing operations $0.48 $0.45 $1.96 $1.67
Discontinued operations 0.09 1.71 0.24 1.81
$0.57 $2.16 $2.20 $3.48
===== ===== ===== =====
Weighted average number of
common shares, basic 58,789 56,526 58,665 56,108
====== ====== ====== ======
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations $0.48 $0.44 $1.95 $1.65
Discontinued operations 0.09 1.70 0.24 1.80
$0.57 $2.14 $2.19 $3.45
===== ===== ===== =====
Weighted average number of
common shares, diluted 58,951 56,955 58,914 56,543
====== ====== ====== ======
Federal Realty Investment Trust
Funds From Operations
December 31, 2008
Three months Year ended
ended December 31, December 31,
----------------- ------------
2008 2007 2008 2007
---- ---- ---- ----
Funds from Operations available
for common shareholders (FFO) (1) (in thousands, except per share data)
-------------------------------
Net income $33,725 $122,168 $129,787 $195,537
Gain on sale of real estate (5,134) (95,819) (12,572) (94,768)
Depreciation and amortization of
real estate assets 27,413 23,656 101,450 95,565
Amortization of initial direct
costs of leases 2,330 2,361 8,771 8,473
Depreciation of joint venture real
estate assets 339 326 1,331 1,241
--- --- ----- -----
Funds from operations 58,673 52,692 228,767 206,048
Dividends on preferred stock (135) (135) (541) (442)
Income attributable to operating
partnership units 243 232 950 1,156
--- --- --- -----
FFO $58,781 $52,789 $229,176 $206,762
======= ======= ======== ========
FFO per diluted share (2) $0.99 $0.92 $3.87 $3.63
===== ===== ===== =====
Weighted average number of
common shares, diluted 59,325 57,336 59,292 56,999
====== ====== ====== ======
Notes:
------
(1) See Glossary of Terms.
(2) Excluding a $1.6 million charge associated with the settlement of
a litigation matter, FFO per diluted share for the three months
and year ended December 31, 2008 was $1.02 and $3.89 ,
respectively.
Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance
December 31, 2008
2008 Guidance
-------------
($ millions except
per share amounts)
(1)(2)
Net income $114 to $122
Gain on sale of real estate 0 0
Depreciation and amortization of real estate & real
estate partnership assets 103 103
Amortization of initial direct costs of leases 8 8
--- ---
Funds from operations 226 233
Dividends on preferred stock (1) (1)
Income attributable to operating partnership units 1 1
--- ---
Funds from operations available for common
shareholders 226 to 233
=== ===
Weighted Average Shares (diluted) 59.6
----
Funds from operations available for common
shareholders per diluted share $3.80 $3.92
===== =====
Note:
-----
(1) Individual items may not add up to total due to rounding.
(2) Guidance for 2009 assumes an $8 million to $9 million ($0.13 to
$0.15 diluted per share) impact of addressing our fourth quarter
2009 debt maturities significantly prior to the actual maturity
dates. The Trust's 2009 guidance does not include potential
damages associated with the lawsuit related to a property adjacent
to Santana Row as further described in Note E (Commitments and
Contingencies) of the Trust's most recent form 10-Q.
SOURCEFederal Realty Investment Trust -0-02/18/2009 /CONTACT:Gina Birdsall , Investor Relations, +1-301-998-8265, gbirdsall@federalrealty.com, orJanelle Stevenson , Corporate Communications, +1-301-998-8185, jmstevenson@federalrealty.com, both ofFederal Realty Investment Trust / /Photo: http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web Site: http://www.federalrealty.com / (FRT) CO:Federal Realty Investment Trust ST:Maryland IN: RLT RRL REA CHM FIN SU: ERN ERP DIV CCA PR -- PH72570 -- 637002/18/2009 16:45 EST http://www.prnewswire.com
