- Press Release
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 SheetsDecember 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 StatementsDecember 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 OperationsDecember 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 endedDecember 31, 2008 was$1.02 and$3.89 , respectively.Federal Realty Investment Trust Reconciliation of Net Income to FFO GuidanceDecember 31, 2008 2008 Guidance ------------- ($ 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 toSantana 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