Federal Realty Investment Trust (FRT) 8-K Results of Operations and Financial Condition

FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
June 30, 2014
TABLE OF CONTENTS
1	Second Quarter 2014 Earnings Press Release		3
2	Financial Highlights
		Summarized Income Statements	7
		Summarized Balance Sheets	8
		Funds From Operations / Summary of Capital Expenditures	9
		Market Data	10
		Components of Rental Income	11
3	Summary of Debt
		Summary of Outstanding Debt and Capital Lease Obligations	12
		Summary of Debt Maturities	14
4	Summary of Redevelopment Opportunities		15
5	Pike & Rose and Assembly Row		16
6	Future Redevelopment Opportunities		17
7	2014 Significant Acquisition & Disposition		18
8	Real Estate Status Report		19
9	Retail Leasing Summary		22
10	Lease Expirations		23
11	Portfolio Leased Statistics		24
12	Summary of Top 25 Tenants		25
13	Reconciliation of Net Income to FFO Guidance		26
14	30% Owned Joint Venture Disclosure
		Summarized Income Statements and Balance Sheets	27
		Summary of Outstanding Debt and Debt Maturities	28
		Real Estate Status Report	29
15	Glossary of Terms		30
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100

1

Safe Harbor Language

Certain matters discussed within this Supplemental Information may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2014, and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;

• risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;

• risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;

• risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;

• risks that our growth will be limited if we cannot obtain additional capital;

• risks associated with general economic conditions, including local economic conditions in our geographic markets;

• risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and

• risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Supplemental Information. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2014.

2

FOR IMMEDIATE RELEASE

Media Inquiries	Investor Inquiries
Andrea Simpson	Kristina Lennox
Director, Marketing	Investor Relations Manager
617/684-1511	301/998-8265
asimpson@federalrealty.com	klennox@federalrealty.com

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2014 OPERATING RESULTS

ROCKVILLE, Md. (August 7, 2014) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its second quarter ended June 30, 2014.

Financial Results

In the second quarter 2014, Federal Realty generated funds from operations available for common shareholders (FFO) of $83.6 million, or $1.23 per diluted share. This compares to FFO of $71.1 million, or $1.08 per diluted share, in second quarter 2013. For the six months ended June 30, 2014, Federal Realty reported FFO of $165.4 million, or $2.43 per diluted share, compared to $145.2 million, or $2.22 per diluted share for the same six month period in 2013. Excluding the debt prepayment charge in the second quarter 2013, FFO per diluted share was $1.14 in second quarter 2013 and $2.27 for the six months ended June 30, 2013.

Net income available for common shareholders was $43.4 million and earnings per diluted share was $0.64 for the quarter ended June 30, 2014 versus $37.4 million and $0.57, respectively, for second quarter 2013. Year-to-date, Federal Realty reported net income available for common shareholders of $82.0 million and earnings per diluted share of $1.22. This compares to net income available for common shareholders of $71.9 million and earnings per diluted share of $1.10 for the six months ended June 30, 2013.

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.

Portfolio Results

In second quarter 2014, same-center property operating income increased 4.2% including redevelopment and expansionproperties. When redevelopment and expansion properties are excluded from same-center, property operating income for second quarter 2014 increased 4.0% compared to second quarter 2013.

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2014 OPERATING RESULTS

August 7, 2014

Page 2

The overall portfolio was 95.3% leased as of June 30, 2014, compared to 95.6% on March 31, 2014 and 95.3% on June 30, 2013. Federal Realty’s same-center portfolio was 95.5% leased as of June 30, 2014, compared to 95.5% on March 31, 2014 and 95.4% on June 30, 2013.

During second quarter 2014, the Trust signed 128 leases for 622,916 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 536,819 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 16%. The weighted average contractual rent on this comparable space for the first year of the new lease is $34.93 per square foot compared to the weighted average contractual rent of $30.13 per square foot for the last year of the prior lease. The previous weighted average contractual rent is calculated by including both the minimum rent and any percentage rent actually paid during the last year of the lease term for the re-leased space. On a GAAP basis (i.e., including the impact of straight-line rents), rent increases per square foot for comparable retail space averaged 30% for second quarter 2014.

Regular Quarterly Dividends

Federal Realty announced today that its Board of Trustees increased the dividend rate on its common shares, declaring a regular quarterly cash dividend of $0.87 per share, resulting in an indicated annual rate of $3.48 per share. This $0.09 per share increase in the regular quarterly dividend is the largest increase in the Trust's history. The regular common dividend will be payable on October 15, 2014 to common shareholders of record on September 22, 2014. This increase represents the 47th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector, and amongst the longest such records for publicly traded companies in the US.

“Our team continued to deliver record bottom line results while also driving future value creation with the successful openings of the initial phases of Pike & Rose and Assembly Row, the delivery and stabilization of Misora at Santana Row and the ongoing execution of over $175 million of tactical redevelopment of our core,” commented Donald C. Wood, president and chief executive officer of Federal Realty. “The continued success and growth in our business supports our decision to raise our common dividend this year by 12%, marking it as the 47^th consecutive year of increased dividends, the only REIT to have such record."

Summary of Other Quarterly Activities and Recent Developments

• June 12, 2014 - Federal Realty was presented with three prestigious honors by the Alliance for Workplace Excellence (AWE). The Trust received the 2014 Workplace Excellence Seal of Approval Award, 2014 Health & Wellness Seal of Approval Award and 2014 EcoLeadership Award. 2014 marks the seventh consecutive year Federal Realty has won Workplace Excellence and Health & Wellness awards, and the fourth year it has won the EcoLeadership award.

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2014 OPERATING RESULTS

August 7, 2014

Page 3

• July 7, 2014 - Federal Realty announced Bank of America Merrill Lynch as the lead office tenant at Pike & Rose, the new transit-oriented, pedestrian-friendly, mixed-use neighborhood at the top of the White Flint District of North Bethesda.  Bank of America Merrill Lynch will occupy 40,000 square feet, half of the 80,000 square foot LEED certified, Class "A" office building at 11810 Grand Park Avenue in Phase 1 of Pike & Rose.

• July 24, 2014 - Federal Realty’s partnership with a discretionary fund created and advised by ING Clarion Partners closed on the sale of Pleasant Shops in South Weymouth, Massachusetts for a sales price of $34.3 million.

Guidance

We have updated our 2014 guidance for FFO per diluted share to a range of $4.90 to $4.94. Our earnings per share guidance was updated to $2.55 to $2.61.

Conference Call Information

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its second quarter 2014 earnings conference call, which is scheduled for August 8, 2014, at 11 a.m. Eastern Daylight Time. To participate, please call (877) 445-3230 five to ten minutes prior to the call start time and use the passcode 65481268 (required). Federal Realty will also provide an online webcast on the Company’s web site, www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available through August 15, 2014, by dialing (855) 859-2056 and using the passcode 65481268.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 20 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.3% leased to national, regional, and local retailers as of June 30, 2014, with no single tenant accounting for more than approximately 3.2% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 47 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

SECOND QUARTER 2014 OPERATING RESULTS

August 7, 2014

Page 4

Safe Harbor Language

Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 11, 2014, and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;

• risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;

• risk that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;

• risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;

• risks that our growth will be limited if we cannot obtain additional capital;

• risks associated with general economic conditions, including local economic conditions in our geographic markets;

• risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and

• risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 11, 2014.

6

Federal Realty Investment Trust
Summarized Income Statements
June 30, 2014
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(in thousands, except per share data)
	(unaudited)
Revenue
Rental income	$	162,383		$	153,212		$	328,576		$	305,828
Other property income	4,325			2,913			7,725			6,181
Mortgage interest income	1,239			1,263			2,474			2,528
Total revenue	167,947			157,388			338,775			314,537
Expenses
Rental expenses	31,405			28,209			68,535			57,710
Real estate taxes	19,164			17,632			37,864			35,204
General and administrative	8,124			8,302			15,828			15,359
Depreciation and amortization	40,893			39,757			84,743			80,274
Total operating expenses	99,586			93,900			206,970			188,547
Operating income	68,361			63,488			131,805			125,990
Other interest income	18			65			43			95
Interest expense	(23,213		)	(27,147		)	(46,350		)	(54,552		)
Early extinguishment of debt	—			(3,399		)	—			(3,399		)
Income from real estate partnership	250			372			463			684
Income from continuing operations	45,416			33,379			85,961			68,818
Discontinued operations
Discontinued operations - income	—			424			—			827
Income before gain on sale of real estate	45,416			33,803			85,961			69,645
Gain on sale of real estate	—			4,994			—			4,994
Net income	45,416			38,797			85,961			74,639
Net income attributable to noncontrolling interests	(1,871		)	(1,258		)	(3,663		)	(2,512		)
Net income attributable to the Trust	43,545			37,539			82,298			72,127
Dividends on preferred shares	(135		)	(135		)	(271		)	(271		)
Net income available for common shareholders	$	43,410		$	37,404		$	82,027		$	71,856
EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.64		$	0.49		$	1.22		$	1.01
Discontinued operations	—			—			—			0.01
Gain on sale of real estate	—			0.08			—			0.08
	$	0.64		$	0.57		$	1.22		$	1.10
Weighted average number of common shares, basic	67,110			65,149			66,858			64,922
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.64		$	0.49		$	1.22		$	1.01
Discontinued operations	—			—			—			0.01
Gain on sale of real estate	—			0.08			—			0.08
	$	0.64		$	0.57		$	1.22		$	1.10
Weighted average number of common shares, diluted	67,277			65,311			67,021			65,080

7

Federal Realty Investment Trust
Summarized Balance Sheets
June 30, 2014
	June 30,			December 31,
	2014			2013
	(in thousands)
	(unaudited)
ASSETS
Real estate, at cost
Operating (including $281,311 and $265,138 of consolidated variable interest entities, respectively)	$	5,004,993		$	4,618,258
Construction-in-progress	472,570			531,205
	5,477,563			5,149,463
Less accumulated depreciation and amortization (including $22,840 and $19,086 of consolidated variable interest entities, respectively)	(1,417,376		)	(1,350,471		)
Net real estate	4,060,187			3,798,992
Cash and cash equivalents	41,312			88,927
Accounts and notes receivable, net	97,741			84,838
Mortgage notes receivable, net	54,932			55,155
Investment in real estate partnership	35,511			32,264
Prepaid expenses and other assets	141,802			159,118
TOTAL ASSETS	$	4,431,485		$	4,219,294
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages and capital lease obligations (including $188,739 and $202,782 of consolidated variable interest, entities respectively)	705,704			660,127
Notes payable	290,765			300,822
Senior notes and debentures	1,361,282			1,360,913
Accounts payable and other liabilities	344,990			321,710
Total liabilities	2,702,741			2,643,572
Redeemable noncontrolling interests	110,688			104,425
Shareholders' equity
Preferred shares	9,997			9,997
Common shares and other shareholders' equity	1,519,764			1,438,163
Total shareholders' equity of the Trust	1,529,761			1,448,160
Noncontrolling interests	88,295			23,137
Total shareholders' equity	1,618,056			1,471,297
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,431,485		$	4,219,294

8

Federal Realty Investment Trust
Funds From Operations / Summary of Capital Expenditures
June 30, 2014
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income	$	45,416		$	38,797		$	85,961		$	74,639
Net income attributable to noncontrolling interests	(1,871		)	(1,258		)	(3,663		)	(2,512		)
Gain on sale of real estate	—			(4,994		)	—			(4,994		)
Depreciation and amortization of real estate assets	36,499			35,834			76,048			72,396
Amortization of initial direct costs of leases	2,947			2,639			5,778			5,407
Depreciation of joint venture real estate assets	441			370			850			746
Funds from operations	83,432			71,388			164,974			145,682
Dividends on preferred shares	(135		)	(135		)	(271		)	(271		)
Income attributable to operating partnership units	715			215			1,431			442
Income attributable to unvested shares	(377		)	(320		)	(752		)	(656		)
FFO	$	83,635		$	71,148		$	165,382		$	145,197
Early extinguishment of debt, net of allocation to unvested shares	—			3,383			—			3,383
FFO excluding early extinguishment of debt	$	83,635		$	74,531		$	165,382		$	148,580
Weighted average number of common shares, diluted	68,194			65,605			67,939			65,383
FFO per diluted share	$	1.23		$	1.08		$	2.43		$	2.22
FFO excluding early extinguishment of debt, per diluted share	$	1.23		$	1.14		$	2.43		$	2.27
Summary of Capital Expenditures
Non-maintenance capital expenditures
Development, redevelopment and expansions	$	78,908		$	79,168		$	152,288		$	123,584
Tenant improvements and incentives	9,004			6,789			14,223			11,872
Total non-maintenance capital expenditures	87,912			85,957			166,511			135,456
Maintenance capital expenditures	3,629			5,113			5,155			5,948
Total capital expenditures	$	91,541		$	91,070		$	171,666		$	141,404
Dividends and Payout Ratios
Regular common dividends declared	$	52,777		$	47,948		$	105,238		$	95,455
Dividend payout ratio as a percentage of FFO	63		%	67		%	64		%	66		%

Notes:

1)    See Glossary of Terms.

9

Federal Realty Investment Trust
Market Data
June 30, 2014
		June 30,
		2014			2013
		(in thousands, except per share data)
Market Data
	Common shares outstanding (1)	67,712			65,687
	Market price per common share	$	120.92		$	103.68
	Common equity market capitalization	$	8,187,735		$	6,810,428
	Series 1 preferred shares outstanding (2)	400			400
	Liquidation price per Series 1 preferred share	$	25.00		$	25.00
	Series 1 preferred equity market capitalization	$	10,000		$	10,000
	Equity market capitalization	8,197,735			6,820,428
	Total debt (3)	2,357,751			2,309,978
	Total market capitalization	$	10,555,486		$	9,130,406
	Total debt to market capitalization at the current market price	22		%	25		%
	Fixed rate debt ratio:
	Fixed rate debt and capital lease obligations (4)	100		%	100		%
	Variable rate debt	<1%			<1%
		100		%	100		%

Notes:

1) Amounts do not include 917,255 and 286,032 Operating Partnership Units outstanding at June 30, 2014 and 2013, respectively.

2) These shares, issued March 8, 2007, are unregistered.

3) Total debt includes capital leases, mortgages payable, notes payable, senior notes and debentures, net of premiums and discounts, from our consolidated balance sheet. It does not include $13.5 million and $17.1 million at June 30, 2014 and 2013 respectively, which is the Trust's 30% share of the total mortgages payable of $44.9 million and $57.0 million at June 30, 2014 and 2013, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners.

4) Fixed rate debt includes our $275.0 million term loan as the rate is effectively fixed by two interest rate swap agreements.

10

Federal Realty Investment Trust
Components of Rental Income
June 30, 2014
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(in thousands)
Minimum rents
Retail and commercial (1)	$	116,840	$	112,669	$	232,905	$	222,700
Residential	8,532		7,190		16,354		14,329
Cost reimbursements	32,158		28,658		69,617		59,486
Percentage rent	2,045		1,963		4,168		4,124
Other	2,808		2,732		5,532		5,189
Total rental income	$	162,383	$	153,212	$	328,576	$	305,828

Notes:

1) Minimum rents include $1.1 million and $1.8 million for the three months ended June 30, 2014 and 2013, and $2.2 million and $2.6 million for the six months ended June 30, 2014 and 2013, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.7 million and $0.8 million for the three months ended June 30, 2014 and 2013, and $1.2 million and $1.5 million for the six months ended June 30, 2014 and 2013, respectively, to recognize income from the amortization of in-place leases.

11

Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
June 30, 2014
		As of June 30, 2014
		Stated maturity date	Stated interest rate	Balance					Weighted average effective rate (5)
				(in thousands)
Mortgages Payable (1)
	Secured fixed rate
	THE AVENUE at White Marsh	1/1/2015	5.46%	53,418
	Barracks Road	11/1/2015	7.95%	36,538
	Hauppauge	11/1/2015	7.95%	13,774
	Lawrence Park	11/1/2015	7.95%	25,898
	Wildwood	11/1/2015	7.95%	22,764
	Wynnewood	11/1/2015	7.95%	26,393
	Brick Plaza	11/1/2015	7.42%	26,842
	East Bay Bridge	3/1/2016	5.13%	61,474
	Plaza El Segundo	8/5/2017	6.33%	175,000
	The Grove at Shrewsbury (East)	10/1/2017	5.82%	44,980
	The Grove at Shrewsbury (West)	3/1/2018	6.38%	11,346
	Rollingwood Apartments	5/1/2019	5.54%	22,326
	29th Place	1/31/2021	5.91%	5,031
	Montrose Crossing	1/10/2022	4.20%	76,612
	Brook 35	7/1/2029	4.65%	11,500
	Chelsea	1/15/2031	5.36%	7,172
	Subtotal			621,068
	Net unamortized premium			12,977
	Total mortgages payable			634,045					5.36%
Notes payable
	Unsecured fixed rate
	Term loan (2)	11/21/2018	LIBOR + 1.30%	275,000
	Various	Various through 2028	11.31%	6,365
	Unsecured variable rate
	Escondido (Municipal bonds) (3)	10/1/2016	0.09%	9,400
	Revolving credit facility (4)	4/21/2017	LIBOR + 0.90%	—
	Total notes payable			290,765					3.30%	(6)
Senior notes and debentures
	Unsecured fixed rate
	5.65% notes	6/1/2016	5.65%	125,000
	6.20% notes	1/15/2017	6.20%	200,000
	5.90% notes	4/1/2020	5.90%	150,000
	3.00% notes	8/1/2022	3.00%	250,000
	2.75% notes	6/1/2023	2.75%	275,000
	3.95% notes	1/15/2024	3.95%	300,000
	7.48% debentures	8/15/2026	7.48%	29,200
	6.82% medium term notes	8/1/2027	6.82%	40,000
	Subtotal			1,369,200
	Net unamortized discount			(7,918		)
	Total senior notes and debentures			1,361,282					4.55%
Capital lease obligations
	Various	Various through 2106	Various	71,659					8.04%
Total debt and capital lease obligations				$	2,357,751
Total fixed rate debt and capital lease obligations				$	2,348,351		100	%	4.73%
Total variable rate debt				9,400			<1%		1.29%	(6)
Total debt and capital lease obligations				$	2,357,751		100	%	4.72%	(6)

12

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Operational Statistics
Excluding early extinguishment of 5.40% senior notes in 2013:
Ratio of EBITDA to combined fixed charges and preferred share dividends (7) (8)	3.78	x	3.50	x	3.74	x	3.45	x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (7) (8)	3.78	x	3.34	x	3.74	x	3.37	x
Including early extinguishment of 5.40% senior notes in 2013:
Ratio of EBITDA to combined fixed charges and preferred share dividends (7)	3.78	x	3.15	x	3.74	x	3.27	x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (7)	3.78	x	3.01	x	3.74	x	3.19	x

Notes:

1) Mortgages payable do not include our 30% share ($13.5 million) of the $44.9 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.

2) We entered into two interest rate swap agreements to fix the variable rate portion of our $275.0 million term loan at 1.72% through November 1, 2018. The swap agreements effectively fix the rate on the term loan at 3.02% and thus, the loan is included in fixed rate debt.

3) The bonds require monthly interest only payments through maturity. The bonds bear interest at a variable rate determined weekly, which would enable the bonds to be remarketed at 100% of their principal amount. The property is not encumbered by a lien.

4) The maximum amount drawn under our revolving credit facility during the six months ended June 30, 2014 was $19.0 million, and the weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.05%.

5) The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note 6.

6) The weighted average effective interest rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had no balance on June 30, 2014. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 3.02% as the result of the interest rate swap agreements discussed in Note 2. The term loan is included in fixed rate debt.

7) Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs and the portion of rent expense representing an interest factor. EBITDA includes a $5.0 million gain on sale for the three and six months ended June 30, 2013. Adjusted EBITDA is reconciled to net income in the Glossary of Terms.

8) Fixed charges exclude the $3.4 million of early extinguishment of debt charge for the three and six months ended June 30, 2013, related to the make-whole premium paid as part of the early redemption of our 5.40% senior notes and the write-off of related unamortized debt fees.

13

Federal Realty Investment Trust
Summary of Debt Maturities
June 30, 2014
Year	Scheduled Amortization		Maturities			Total			Percent of Debt Maturing		Cumulative Percent of Debt Maturing		Weighted Average Rate (3)
	(in thousands)
2014	$	5,522	$	—		$	5,522		0.2	%	0.2	%	—	%
2015	9,197		198,391			207,588			8.8	%	9.0	%	7.3	%
2016	4,493		194,013			198,506			8.4	%	17.4	%	4.5	%
2017	4,196		416,732		(1)	420,928			17.9	%	35.3	%	5.4	%	(4)
2018	3,366		285,502			288,868			12.3	%	47.6	%	3.2	%
2019	3,172		20,160			23,332			1.0	%	48.6	%	5.7	%
2020	3,176		150,000			153,176			6.5	%	55.1	%	6.0	%
2021	3,099		3,625			6,724			0.3	%	55.4	%	6.1	%
2022	1,226		313,618			314,844			13.4	%	68.8	%	3.5	%
2023	1,283		330,010			331,293			14.1	%	82.9	%	3.9	%
Thereafter	21,210		380,701			401,911			17.1	%	100.0	%	4.9	%
Total	$	59,940	$	2,292,752		$	2,352,692	(2)	100.0	%

Notes:

1) Our $600.0 million unsecured revolving credit facility matures on April 21, 2017 subject to a one-year extension at our option. As of June 30, 2014, there was no balance outstanding on our revolving credit facility.

2) The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net discount or premium on certain mortgage loans, senior notes and debentures as of June 30, 2014.

3) The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.

4) The weighted average rate excludes $0.5 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.

14

Federal Realty Investment Trust
Summary of Redevelopment Opportunities
June 30, 2014
The following redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust. (1)
Property	Location	Opportunity	Projected ROI (2)		Projected Cost (1)		Cost to Date		Anticipated Stabilization (3)
					(in millions)		(in millions)
Santana Row - Lot 11	San Jose, CA	Addition of 6-story building with 225,500 square feet of office space, 1,500 square feet of retail space, and 670 parking spaces	7.5%-8.5%		$110-$120			$7	2017
The Point	El Segundo, CA	Addition of 90,000 square feet of retail, and 25,000 square feet of office space	8	%		$80		$42	2015
Santana Row - Lot 8B	San Jose, CA	Addition of a 5-story rental apartment building, which includes 212 residential units and associated parking	8	%		$75		$75	2014
Westgate Center	San Jose, CA	Façade and interior mall renovation, addition of food court and pad site	9	%		$20		$17	2014/2015
Tower Shops	Davie, FL	Addition of 50,000 square foot pad building	12	%		$14		$0	2016
Shops at Willow Lawn	Richmond, VA	Demo interior mall, relocate mall tenants, construct new exterior GLA, and gas station	10	%		$14		$10	2014/2015
Mercer Mall	Lawrenceville, NJ	Addition of 27,000 square feet of space including new in-line space, addition of bank pad and reconfiguration of existing pad site and anchor box	12	%		$12		$3	2015
Hollywood Blvd - Petersen Building	Hollywood, CA	Redevelop/retenant building including conversion of 2nd floor parking to retail space	17	%		$9		$4	2015
Quince Orchard	Gaithersburg, MD	Property repositioning through demo of non-functional small shop space, creation of new anchor box, rightsizing of national office products tenant, and creation of new visible small shop space	23	%		$6		$1	2015
East Bay Bridge	Emeryville, CA	Reconfigure two existing spaces consisting of 48,000 square feet to accommodate two new tenants, add two new restaurant tenants, and courtyard renovations	10	%		$4		$0	2015
Ellisburg	Cherry Hill, NJ	Property repositioning through retenanting, including new grocer and façade renovation	18	%		$4		$4	2014
Barracks Road	Charlottesville, VA	11,800 square foot multi-tenant pad building	13	%		$4		$4	2014
Flourtown	Flourtown, PA	New 75,000 square foot grocer and new 38,000 square foot movie theater	15	%		$3		$1	2015
Pentagon Row	Arlington, VA	Ice rink expansion and 1,500 square feet of new retail space	9	%		$2		$2	2014
Third Street Promenade	Santa Monica, CA	Building modified to convert second floor space to office to accommodate new first floor retail and second floor office tenants	25	%		$1		$1	2015
Brick	Brick, NJ	New restaurant pad building	18	%		$1		$0	2014
Huntington Square	East Northport, NY	Infrastructure investment to create additional restaurant capacity	10	%		$1		$1	2014
Total Active Redevelopment projects (4)			9	%	$360-$370			$172

Notes:

(1) There is no guarantee that the Trust will ultimately complete any or all of these opportunities, that the Projected Return on Investment (ROI) or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected ROI and Projected Cost are management's best estimate based on current information and may change over time.

(2) Projected ROI for redevelopment projects generally reflects only the deal specific cash, unleveraged incremental Property Operating Income (POI) generated by the redevelopment and is calculated as Incremental POI divided by incremental cost. Incremental POI is the POI generated by the redevelopment after deducting rent being paid or management's estimate of rent to be paid for the redevelopment space and any other space taken out of service to accommodate the redevelopment. Projected ROI for redevelopment projects does NOT include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.

(3) Stabilization is the year in which 95% occupancy of the redeveloped space is achieved.

(4) All subtotals and totals reflect cost weighted-average ROIs.

15

Federal Realty Investment Trust
Pike & Rose and Assembly Row
June 30, 2014
Property (1)	Location	Opportunity	Projected ROI (2)	Total Cost (3)	Costs to Date		Anticipated Stabilization	Expected Opening Timeframe	Anchor and other significant tenants
				(in millions)	(in millions)
Pike & Rose - Phase I	Rockville, MD	Ground up mixed use development. Phase I consists of 493 residential units, 151,000 square feet of retail, and 79,000 square feet of office space.	8% - 9%	$245 - $255		$173	2015/2016	•174 unit residential building now open •Grand Opening of Retail in Fall 2014 •Office and 319 unit residential building to deliver in 2015	iPic Theater, Sport & Health, Del Frisco's Grille, M Street Kitchen
Assembly Row - Phase I	Somerville, MA	Ground up mixed use development. Initial phase consists of 450 residential units (by AvalonBay), in addition to 98,000 square feet of office space and approximately 326,000 square feet of retail space (including a restaurant pad site). A new Orange Line T-Stop will also be constructed by Massachusetts Bay Transit Authority, as part of Phase I.	5% - 6%	$190 - $200		$172	2015	•Opened •T Station open Summer 2014 •Office to deliver in 2015	AMC Theatre, LEGOLAND Discovery Center, Saks Fifth Avenue Off 5th, Nike, Brooks Brothers, Legal C Bar, Earl's, Papagayo
		Total Pike & Rose and Assembly Row	7%	$435-$455		$345

Notes:

(1)	Anticipated opening dates, total cost, projected return on investment (ROI), anticipated stabilization, and significant tenants for centers under development are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the 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 deal specific cash, unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(3)	Projected costs include an allocation of infrastructure costs for the entire project.

16

Federal Realty Investment Trust
Future Redevelopment Opportunities
June 30, 2014
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.
	THE AVENUE @ White Marsh	Baltimore, MD	Flourtown	Flourtown, PA
	Bethesda Row	Bethesda, MD	Fresh Meadows	Queens, NY
	Dedham Plaza	Dedham, MA	Melville Mall	Huntington, NY
	Eastgate	Chapel Hill, NC	Mercer Mall	Lawrenceville, NJ
	Escondido	Escondido, CA	Pan Am	Fairfax, VA
	Federal Plaza	Rockville, MD	Troy	Parsippany, NJ
	Finley Square	Downers Grove, IL	Wildwood	Bethesda, MD
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into additional retail GLA.
	Assembly Row	Somerville, MA	Fresh Meadows	Queens, NY
	Barracks Road	Charlottesville, VA	Mercer Mall	Lawrenceville, NJ
	Bethedsa Row	Bethesda, MD	Montrose Crossing	Rockville, MD
	Crossroads	Highland Park, IL	Third Street Promenade	Santa Monica, CA
	Darien	Darien, CT	Wildwood	Bethesda, MD
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
	Barracks Road	Charlottesville, VA	Leesburg Plaza	Leesburg, VA
	Congressional Plaza	Rockville, MD	Village at Shirlington	Arlington, VA
	Del Mar Village	Boca Raton, FL	Towson land parcel	Towson, MD
Longer Term Mixed-Use Opportunities
	Assembly Row (1)	Somerville, MA	Pike & Rose (2)	Rockville, MD
	Bala Cynwyd	Bala Cynwyd, PA	Santana Row (3)	San Jose, CA
	Pike 7	Vienna, VA	Santana Row - Winchester Theater site	San Jose, CA
Notes:
(1)	Assembly Row	Remaining entitlements after Phase I include approximately 3.0 million square feet of commercial-use buildings, 1,393 residential units, and a 170 room hotel.
(2)	Pike & Rose	Remaining entitlements after Phase I include 1.5 million square feet of commercial-use buildings, and 1,090 residential units.
(3)	Santana Row	Current remaining entitlements for this property include 348 residential units and 69,000 square feet of commercial space for retail and office; we are currently seeking additional entitlements.

17

Federal Realty Investment Trust
2014 Significant Acquisition & Disposition
June 30, 2014
2014 Significant Acquisition
Date	Property	City/State	GLA	Purchase price			Principal Tenants
			(in square feet)	(in millions)
January 1, 2014	The Grove at Shrewsbury/ Brook 35	Shrewsbury, NJ/ Sea Girt, NJ	286,000	$	161.0	(1)	Anthropologie / Banana Republic / Brooks Brothers / Coach / Pottery Barn / Williams-Sonoma
(1) Our effective economic interest approximates 84% and was funded by the assumption of our share of $68 million of mortgage debt, 632,000 downREIT operating partnership units, and $13 million of cash.
2014 Disposition - 30% Owned Joint Venture
Date	Property	City/State	GLA	Sales price
			(in square feet)	(in millions)
July 24, 2014	Pleasant Shops	Weymouth, MA	131,000	$	34.3

18

Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name		MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)	GLA (2)	% Leased		Grocery Anchor GLA	Grocery Anchor	Other Principal Tenants
				(in thousands)		(in thousands)
Washington Metropolitan Area
Bethesda Row		Washington, DC-MD-VA	1993-2006/2008/2010	$	222,103		533,000	99	%	40,000	Giant Food	Apple Computer / Barnes & Noble / Equinox / Landmark Theater
Congressional Plaza	(3)	Washington, DC-MD-VA	1965	78,271			328,000	99	%	25,000	Fresh Market	Buy Buy Baby / Container Store / Last Call Studio by Neiman Marcus
Courthouse Center		Washington, DC-MD-VA	1997	4,721			35,000	67	%
Falls Plaza/Falls Plaza-East		Washington, DC-MD-VA	1967/1972	12,866			144,000	100	%	51,000	Giant Food	CVS / Staples
Federal Plaza		Washington, DC-MD-VA	1989	65,760			248,000	100	%	14,000	Trader Joe's	TJ Maxx / Micro Center / Ross Dress For Less
Friendship Center		Washington, DC-MD-VA	2001	36,198			119,000	75	%			DSW / Maggiano's / Nordstrom Rack
Gaithersburg Square		Washington, DC-MD-VA	1993	25,717			207,000	91	%			Bed, Bath & Beyond / Ross Dress For Less
Idylwood Plaza		Washington, DC-MD-VA	1994	16,697			73,000	100	%	30,000	Whole Foods
Laurel		Washington, DC-MD-VA	1986	51,333			388,000	79	%	61,000	Giant Food	L.A. Fitness / Marshalls
Leesburg Plaza		Washington, DC-MD-VA	1998	35,364			236,000	95	%	55,000	Giant Food	Petsmart / Pier 1 Imports / Office Depot
Loehmann's Plaza		Washington, DC-MD-VA	1983	33,732			260,000	92	%	58,000	Giant Food	L.A. Fitness / Stein Mart
Pike & Rose	(4)	Washington, DC-MD-VA	1982/2007	251,194			11,000	100	%
Montrose Crossing	(3)	Washington, DC-MD-VA	2011/2013	152,806		76,612	364,000	99	%	73,000	Giant Food	Marshalls / Sports Authority / Barnes & Noble / A.C. Moore
Mount Vernon/South Valley/7770 Richmond Hwy	(5)	Washington, DC-MD-VA	2003/2006	79,858			572,000	93	%	62,000	Shoppers Food Warehouse	Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold's Gym / Staples
Old Keene Mill		Washington, DC-MD-VA	1976	6,603			92,000	100	%	24,000	Whole Foods	Walgreens
Pan Am		Washington, DC-MD-VA	1993	28,696			227,000	100	%	65,000	Safeway	Micro Center / Michaels
Pentagon Row		Washington, DC-MD-VA	1998/2010	97,361			299,000	97	%	45,000	Harris Teeter	L.A. Fitness / Bed, Bath & Beyond / DSW
Pike 7		Washington, DC-MD-VA	1997	36,188			164,000	100	%			DSW / Staples / TJ Maxx
Quince Orchard		Washington, DC-MD-VA	1993	29,394			263,000	86	%			L.A. Fitness / HomeGoods / Staples
Rockville Town Square	(6)	Washington, DC-MD-VA	2006-2007	50,244		4,516	187,000	96	%			CVS / Gold's Gym
Rollingwood Apartments		Washington, DC-MD-VA	1971	9,732		22,326	N/A	97	%
Sam's Park & Shop		Washington, DC-MD-VA	1995	12,673			48,000	81	%			Petco
Tower		Washington, DC-MD-VA	1998	21,235			112,000	95	%	26,000	L.A. Mart	Talbots
Tyson's Station		Washington, DC-MD-VA	1978	4,468			49,000	95	%	11,000	Trader Joe's
Village at Shirlington	(6)	Washington, DC-MD-VA	1995	59,106		6,468	261,000	98	%	28,000	Harris Teeter	AMC Loews / Carlyle Grand Café
Wildwood		Washington, DC-MD-VA	1969	18,270		22,764	84,000	91	%	20,000	Balducci's	CVS
		Total Washington Metropolitan Area		1,440,590			5,304,000	94	%
Philadelphia Metropolitan Area
Andorra		Philadelphia, PA-NJ	1988	25,562			265,000	95	%	24,000	Acme Markets	Kohl's / Staples / L.A. Fitness
Bala Cynwyd		Philadelphia, PA-NJ	1993	39,963			295,000	96	%	45,000	Acme Markets	Lord & Taylor / L.A. Fitness / Michaels
Ellisburg Circle		Philadelphia, PA-NJ	1992	33,307			267,000	90	%	47,000	Whole Foods	Buy Buy Baby / Stein Mart
Flourtown		Philadelphia, PA-NJ	1980	13,436			160,000	97	%	75,000	Giant Food
Langhorne Square		Philadelphia, PA-NJ	1985	21,241			219,000	99	%	55,000	Redner's Warehouse Mkts.	Marshalls
Lawrence Park		Philadelphia, PA-NJ	1980	31,631		25,898	355,000	97	%	53,000	Acme Markets	Kaplan Career Institute / TJ Maxx / HomeGoods
Northeast		Philadelphia, PA-NJ	1983	24,781			288,000	89	%			Burlington Coat Factory / Home Gallery / Marshalls
Town Center of New Britain		Philadelphia, PA-NJ	2006	14,721			124,000	87	%	36,000	Giant Food	Rite Aid
Willow Grove		Philadelphia, PA-NJ	1984	29,814			212,000	99	%			HomeGoods / Marshalls / Barnes & Noble
Wynnewood		Philadelphia, PA-NJ	1996	38,732		26,393	251,000	98	%	98,000	Giant Food	Bed, Bath & Beyond / Old Navy / DSW
		Total Philadelphia Metropolitan Area		273,188			2,436,000	95	%
California
Colorado Blvd		Los Angeles-Long Beach, CA	1996/1998	18,121			69,000	100	%			Pottery Barn / Banana Republic
Crow Canyon		San Ramon, CA	2005/2007	85,611			242,000	91	%	58,000	Sprouts	Rite Aid

19

Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name		MSA Description	Year Acquired	Real Estate at Cost	Mortgage and/or Capital Lease Obligation (1)	GLA (2)	% Leased		Grocery Anchor GLA	Grocery Anchor	Other Principal Tenants
				(in thousands)	(in thousands)
East Bay Bridge		San Francisco-Oakland-Fremont, CA	2012	167,535	61,474	438,000	100	%	59,000	Pak-N-Save	Home Depot / Michaels / Target
Escondido	(3)	San Diego, CA	1996/2010	46,873		297,000	97	%			TJ Maxx / Toys R Us / Dick’s Sporting Goods / Ross Dress For Less
Hermosa Ave		Los Angeles-Long Beach, CA	1997	5,860		24,000	100	%
Hollywood Blvd	(3)	Los Angeles-Long Beach, CA	1999	44,083		155,000	100	%	15,000	Fresh & Easy	DSW / L.A. Fitness
Kings Court	(5)	San Jose, CA	1998	11,594		80,000	100	%	25,000	Lunardi's Super Market	CVS
Old Town Center		San Jose, CA	1997	37,595		96,000	94	%			Anthropologie / Banana Republic / Gap
Plaza El Segundo	(3)(7)	Los Angeles-Long Beach, CA	2011	237,294	175,000	381,000	99	%	66,000	Whole Foods	Anthropologie / Best Buy / Container Store / Dick's Sporting Goods / H&M / HomeGoods
Santana Row		San Jose, CA	1997	687,882		649,000	97	%			Crate & Barrel / Container Store / Best Buy / CineArts Theatre / Hotel Valencia / H&M
Third St Promenade		Los Angeles-Long Beach, CA	1996-2000	78,293		209,000	97	%			J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate Center		San Jose, CA	2004	135,358		636,000	96	%	38,000	Walmart Neighborhood Market	Target / Burlington Coat Factory / Ross Dress For Less / Michaels / Nordstrom Rack / Nike Factory
150 Post Street		San Francisco, CA	1997	37,107		103,000	100	%			Brooks Brothers / H&M
		Total California		1,593,206		3,379,000	97	%
NY Metro / New Jersey
Brick Plaza		Monmouth-Ocean, NJ	1989	59,743	26,842	416,000	87	%	66,000	A&P	AMC Loews / Barnes & Noble / Sports Authority
Brook 35	(5)	New York-Northern New Jersey-Long Island, NY-NJ-PA	2014	45,546	11,500	98,000	100	%			Ann Taylor / Banana Republic / Coach / Williams-Sonoma
Darien		New Haven-Bridgeport-Stamford-Waterbury	2013	48,127		95,000	95	%	45,000	Stop & Shop	Equinox
Fresh Meadows		New York, NY	1997	79,600		404,000	100	%	15,000	Island of Gold	AMC Loews / Kohl's / Michaels / Modell's
Greenwich Avenue		New Haven-Bridgeport-Stamford-Waterbury	1995	13,969		36,000	100	%			Saks Fifth Avenue
Hauppauge		Nassau-Suffolk, NY	1998	28,076	13,774	134,000	100	%	61,000	Shop Rite	AC Moore
Huntington		Nassau-Suffolk, NY	1988/2007	43,758		279,000	100	%			Buy Buy Baby / Bed, Bath & Beyond / Michaels / Nordstrom Rack
Huntington Square		Nassau-Suffolk, NY	2010	11,979		74,000	93	%			Barnes & Noble
Melville Mall	(8)	Nassau-Suffolk, NY	2006	69,569		246,000	63	%	54,000	Waldbaum's	Dick’s Sporting Goods / Marshalls
Mercer Mall	(6)	Trenton, NJ	2003	111,047	55,768	502,000	99	%	75,000	Shop Rite	Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
The Grove at Shrewsbury	(5)	New York-Northern New Jersey-Long Island, NY-NJ-PA	2014	119,965	56,326	188,000	100	%			Lululemon / Brooks Brothers / Anthropologie / Pottery Barn / J. Crew / Banana Republic / Williams-Sonoma
Troy		Newark, NJ	1980	30,283		207,000	99	%	64,000	Pathmark	L.A. Fitness
		Total NY Metro/New Jersey		661,662		2,679,000	94	%
New England
Assembly Row / Assembly Square Marketplace	(4)	Boston-Cambridge-Quincy, MA-NH	2005-2011	405,199		550,000	100	%			AMC Theatre / LEGOLAND Discovery Center / Saks Fifth Avenue Off 5th / AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons		Boston-Cambridge-Quincy, MA-NH	2006-2008	42,703	7,172	222,000	100	%	16,000	Sav-A-Lot	Home Depot / Planet Fitness
Dedham Plaza		Boston-Cambridge-Quincy, MA-NH	1993	34,618		241,000	98	%	80,000	Star Market
Linden Square		Boston-Cambridge-Quincy, MA-NH	2006	146,586		223,000	96	%	50,000	Roche Bros.	CVS
North Dartmouth		Boston-Cambridge-Quincy, MA-NH	2006	9,368		48,000	100	%	48,000	Stop & Shop
Queen Anne Plaza		Boston-Cambridge-Quincy, MA-NH	1994	18,058		149,000	100	%	50,000	Hannaford	TJ Maxx / HomeGoods

20

Federal Realty Investment Trust
Real Estate Status Report
June 30, 2014
Property Name		MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)		GLA (2)	% Leased		Grocery Anchor GLA	Grocery Anchor	Other Principal Tenants
				(in thousands)		(in thousands)
Saugus Plaza		Boston-Cambridge-Quincy, MA-NH	1996	14,815				168,000	100	%	55,000	Super Stop & Shop	Kmart
		Total New England		671,347				1,601,000	99	%
Baltimore
Governor Plaza		Baltimore, MD	1985	26,393				242,000	97	%	16,500	Aldi	Dick’s Sporting Goods
Perring Plaza		Baltimore, MD	1985	29,674				395,000	96	%	58,000	Shoppers Food Warehouse	Home Depot / Burlington Coat Factory / Jo-Ann Stores / Micro Center
THE AVENUE at White Marsh	(5)	Baltimore, MD	2007	97,328		53,418		298,000	100	%			AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square		Baltimore, MD	2007	17,347				32,000	100	%
White Marsh Plaza		Baltimore, MD	2007	25,092				80,000	98	%	54,000	Giant Food
White Marsh Other		Baltimore, MD	2007	36,199				70,000	100	%
		Total Baltimore		232,033				1,117,000	98	%
Chicago
Crossroads		Chicago, IL	1993	31,116				168,000	93	%			Golfsmith / Guitar Center / L.A. Fitness
Finley Square		Chicago, IL	1995	32,563				313,000	95	%			Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market		Chicago, IL	1994	12,406				140,000	95	%	63,000	Mariano's Fresh Market	Walgreens
North Lake Commons		Chicago, IL	1994	16,558				129,000	91	%	77,000	Jewel Osco
		Total Chicago		92,643				750,000	94	%
South Florida
Courtyard Shops		Miami-Ft Lauderdale	2008	40,704				130,000	95	%	49,000	Publix
Del Mar Village		Miami-Ft Lauderdale	2008	55,905				179,000	77	%	44,000	Winn Dixie	CVS
Tower Shops		Miami-Ft Lauderdale	2011	82,470				374,000	99	%			Best Buy / DSW / Old Navy / Ross Dress For Less / TJ Maxx / Ulta
		Total South Florida		179,079				683,000	92	%
Other
Barracks Road		Charlottesville, VA	1985	60,188		36,538		497,000	97	%	99,000	Harris Teeter / Kroger	Anthropologie / Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels / Ulta
Bristol Plaza		Hartford, CT	1995	29,398				267,000	93	%	74,000	Stop & Shop	TJ Maxx
Eastgate		Raleigh-Durham-Chapel Hill, NC	1986	26,891				153,000	98	%	13,000	Trader Joe's	Stein Mart
Gratiot Plaza		Detroit, MI	1973	19,215				217,000	99	%	69,000	Kroger	Bed, Bath & Beyond / Best Buy / DSW
Houston St		San Antonio, TX	1998	61,619				172,000	90	%			Hotel Valencia / Walgreens
Lancaster	(6)	Lancaster, PA	1980	13,543		4,907		127,000	97	%	75,000	Giant Food	Michaels
29th Place		Charlottesville, VA	2007	40,171		5,031		169,000	98	%			DSW / HomeGoods / Staples / Stein Mart
Shops at Willow Lawn		Richmond-Petersburg, VA	1983	82,790				444,000	90	%	66,000	Kroger	Old Navy / Staples / Ross Dress For Less
		Total Other		333,815				2,046,000	95	%
Grand Total				$	5,477,563	$	692,727	19,995,000	95	%
Notes:
(1)	The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain mortgage payables.
(2)	Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.
(3)	The Trust has a controlling financial interest in this property.
(4)	Portion of property is currently under development. See further discussion in Pike & Rose and Assembly Row schedule.
(5)	All or a portion of the property is owned in a "downreit" partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units.
(6)	All or a portion of property subject to capital lease obligation.
(7)	Includes a 100% owned, 8.1 acre land parcel being used for The Point redevelopment.
(8)	On October 16, 2006, the Trust acquired control of Melville Mall through a 20 year master lease and secondary financing. Since the Trust controls this property and retains substantially all of the economic benefit and risks associated with it, we consolidate this property and its operations.

21

Federal Realty Investment Trust
Retail Leasing Summary (1)
June 30, 2014
Total Lease Summary - Comparable (2)
Quarter	Number of Leases Signed	% of Comparable Leases Signed		GLA Signed	Contractual Rent (3) Per Sq. Ft.		Prior Rent (4) Per Sq. Ft.		Annual Increase in Rent		Cash Basis % Increase Over Prior Rent		Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)	Tenant Improvements & Incentives (6)		Tenant Improvements & Incentives Per Sq. Ft.
2nd Quarter 2014	109	100	%	536,819	$	34.93	$	30.13	$	2,572,606	16	%	30		%	7.3	$	9,774,179	$	18.21	(7)
1st Quarter 2014	71	100	%	328,355	$	31.84	$	27.01	$	1,583,057	18	%	29		%	7.3	$	7,815,348	$	23.80	(7)
4th Quarter 2013	82	100	%	395,906	$	27.24	$	21.73	$	2,182,320	25	%	38		%	7.4	$	7,040,879	$	17.78	(7)
3rd Quarter 2013	89	100	%	273,505	$	39.12	$	32.66	$	1,767,856	20	%	34		%	7.1	$	5,355,091	$	19.58	(7)
Total - 12 months	351	100	%	1,534,585	$	33.03	$	27.75	$	8,105,839	19	%	32		%	7.3	$	29,985,497	$	19.54
New Lease Summary - Comparable (2)
Quarter	Number of Leases Signed	% of Comparable Leases Signed		GLA Signed	Contractual Rent (3) Per Sq. Ft.		Prior Rent (4) Per Sq. Ft.		Annual Increase in Rent		Cash Basis % Increase Over Prior Rent		Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)	Tenant Improvements & Incentives (6)		Tenant Improvements & Incentives Per Sq. Ft.
2nd Quarter 2014	37	34	%	224,858	$	32.65	$	25.06	$	1,706,360	30	%	50		%	9.0	$	9,260,234	$	41.18	(7)
1st Quarter 2014	26	37	%	176,649	$	25.73	$	22.16	$	629,580	16	%	27		%	10.2	$	7,649,978	$	43.31	(7)
4th Quarter 2013	27	33	%	109,673	$	31.45	$	23.43	$	878,831	34	%	52		%	9.6	$	6,458,712	$	58.89	(7)
3rd Quarter 2013	32	36	%	104,298	$	44.09	$	31.78	$	1,283,589	39	%	57		%	9.2	$	4,636,228	$	44.45	(7)
Total - 12 months	122	35	%	615,478	$	32.39	$	25.08	$	4,498,360	29	%	46		%	9.5	$	28,005,152	$	45.50
Renewal Lease Summary - Comparable (2) (8)
Quarter	Number of Leases Signed	% of Comparable Leases Signed		GLA Signed	Contractual Rent (3) Per Sq. Ft.		Prior Rent (4) Per Sq. Ft.		Annual Increase in Rent		Cash Basis % Increase Over Prior Rent		Straight-lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)	Tenant Improvements & Incentives (6)		Tenant Improvements & Incentives Per Sq. Ft.
2nd Quarter 2014	72	66	%	311,961	$	36.56	$	33.79	$	866,246	8	%	20		%	6.2	$	513,945	$	1.65
1st Quarter 2014	45	63	%	151,706	$	38.95	$	32.66	$	953,477	19	%	31		%	5.1	$	165,370	$	1.09
4th Quarter 2013	55	67	%	286,233	$	25.63	$	21.08	$	1,303,489	22	%	31		%	6.3	$	582,167	$	2.03	(7)
3rd Quarter 2013	57	64	%	169,207	$	36.06	$	33.19	$	484,267	9	%	20		%	5.6	$	718,863	$	4.25
Total - 12 months	229	65	%	919,107	$	33.46	$	29.54	$	3,607,479	13	%	25		%	5.9	$	1,980,345	$	2.15
Total Lease Summary - Comparable and Non-comparable (2) (9)
Quarter							Number of Leases Signed		GLA Signed				Contractual Rent (3) Per Sq. Ft.			Weighted Average Lease Term (5)	Tenant Improvements & Incentives (6)		Tenant Improvements & Incentives Per Sq. Ft.
2nd Quarter 2014							128		622,916				$	35.83		7.7	$	11,584,637	$	18.60
1st Quarter 2014							78		364,034				$	31.62		7.6	$	8,445,438	$	23.20
4th Quarter 2013							99		484,144				$	27.84		8.0	$	7,723,079	$	15.95
3rd Quarter 2013							102		398,637				$	34.20		8.4	$	6,813,820	$	17.09
Total - 12 months							407		1,869,731				$	32.59		7.9	$	34,566,974	$	18.49
Notes:
(1)	Leases on this report represent retail activity only; office and residential leases are not included.
(2)	Comparable leases represent those leases signed on spaces for which there was a former tenant.
(3)	Contractual rent represents contractual minimum rent under the new lease for the first 12 months of the term.
(4)	Prior rent represents minimum rent and percentage rent, if any, paid by the prior tenant in the final 12 months of the term.
(5)	Weighted average is determined on the basis of contractual rent for the first 12 months of the term.
(6)	See Glossary of Terms.
(7)	Approximately $5.6 million ($7.30 per square foot) in 2nd Quarter 2014, $5.1 million ($12.38 per square foot) in 1st Quarter 2014, $1.5 million ($3.09 per square foot) in 4th Quarter 2013 and $2.5 million ($6.23 per square foot) in 3rd Quarter 2013 of the Tenant Improvements & Incentives are for properties under active redevelopment (e.g. Westgate Center, Willow Lawn, Hollywood Boulevard) and are included in the Projected Cost for those projects on the Summary of Redevelopment Opportunities.
(8)	Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(9)	The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq Ft and Weighted Average Lease Term columns include information for leases signed at our Assembly Row and Pike & Rose projects. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq Ft columns do not include information on leases signed for those projects; these amounts for leases signed for Assembly Row and Pike & Rose are included in the Projected Cost column for those projects shown on the Pike & Rose and Assembly Row schedule.

22

Federal Realty Investment Trust
Lease Expirations
June 30, 2014
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)
2014	71,000	1	%	$	17.18	373,000	5	%	$	28.09	444,000	2	%	$	26.35
2015	671,000	6	%	$	14.46	873,000	11	%	$	33.31	1,545,000	8	%	$	25.11
2016	857,000	8	%	$	16.92	1,151,000	14	%	$	34.88	2,008,000	11	%	$	27.22
2017	1,393,000	13	%	$	16.83	1,176,000	15	%	$	35.86	2,569,000	14	%	$	25.54
2018	1,443,000	13	%	$	14.78	997,000	13	%	$	38.47	2,440,000	13	%	$	24.46
2019	1,761,000	16	%	$	17.94	761,000	10	%	$	35.48	2,522,000	13	%	$	23.24
2020	685,000	6	%	$	17.18	496,000	6	%	$	35.47	1,180,000	6	%	$	24.88
2021	643,000	6	%	$	19.95	472,000	6	%	$	39.27	1,115,000	6	%	$	28.13
2022	815,000	7	%	$	16.60	461,000	6	%	$	38.89	1,276,000	7	%	$	24.65
2023	444,000	4	%	$	21.96	468,000	6	%	$	37.32	912,000	5	%	$	29.85
Thereafter	2,151,000	20	%	$	18.59	650,000	8	%	$	41.00	2,801,000	15	%	$	23.79
Total (3)	10,934,000	100	%	$	17.35	7,878,000	100	%	$	36.23	18,812,000	100	%	$	25.25
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)
2014	47,000	0	%	$	17.49	294,000	4	%	$	27.08	341,000	2	%	$	25.76
2015	80,000	1	%	$	31.63	534,000	7	%	$	33.20	614,000	3	%	$	32.99
2016	61,000	1	%	$	17.07	575,000	7	%	$	37.53	636,000	4	%	$	35.57
2017	190,000	2	%	$	23.41	630,000	8	%	$	38.29	820,000	4	%	$	34.84
2018	317,000	3	%	$	15.70	505,000	6	%	$	41.88	822,000	4	%	$	31.78
2019	429,000	4	%	$	19.94	471,000	6	%	$	38.10	900,000	5	%	$	29.45
2020	143,000	1	%	$	19.89	460,000	6	%	$	33.70	603,000	3	%	$	30.42
2021	185,000	2	%	$	12.31	633,000	8	%	$	36.46	819,000	4	%	$	30.96
2022	135,000	1	%	$	24.05	513,000	6	%	$	33.51	648,000	4	%	$	31.54
2023	348,000	3	%	$	16.79	453,000	6	%	$	38.02	800,000	4	%	$	28.83
Thereafter	8,999,000	82	%	$	17.01	2,810,000	36	%	$	36.27	11,809,000	63	%	$	21.59
Total (3)	10,934,000	100	%	$	17.35	7,878,000	100	%	$	36.23	18,812,000	100	%	$	25.25
Notes:
(1)	Anchor is defined as a tenant leasing 15,000 square feet or more.
(2)	Minimum Rent reflects in-place contractual (cash-basis) rent as of June 30, 2014.
(3)	Represents occupied square footage as of June 30, 2014.
(4)	Individual items may not add up to total due to rounding.

23

Federal Realty Investment Trust
Portfolio Leased Statistics
June 30, 2014
Overall Portfolio Statistics (1)	At June 30, 2014				At June 30, 2013
Type	Size	Leased	Leased %		Size	Leased	Leased %
Retail Properties (2) (3) (4) (sf)	19,995,000	19,054,000	95.3	%	19,581,000	18,652,000	95.3	%
Residential Properties (units)	1,410	1,329	94.3	%	1,058	1,028	97.2	%
Same Center Statistics (1)	At June 30, 2014				At June 30, 2013
Type	Size	Leased	Leased %		Size	Leased	Leased %
Retail Properties (2) (4) (5) (sf)	16,771,000	16,015,000	95.5	%	16,764,000	15,998,000	95.4	%
Residential Properties (units)	1,058	1,020	96.4	%	1,058	1,028	97.2	%

Notes:

(1)	See Glossary of Terms.
(2)	Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)	At June 30, 2014 leased percentage was 98.2% for anchor tenants and 91.5% for small shop tenants.
(4)	Occupied percentage was 94.3% and 94.5% at June 30, 2014 and 2013, respectively, and same center occupied percentage was 95.0% and 94.6% at June 30, 2014 and 2013, respectively.
(5)	Excludes properties purchased, sold or under redevelopment.

24

Federal Realty Investment Trust
Summary of Top 25 Tenants
June 30, 2014
Rank	Tenant Name	Annualized Base Rent		Percentage of Total Annualized Base Rent (4)		Tenant GLA	Percentage of Total GLA (4)		Number of Stores Leased
1	Ahold USA, Inc.	$	15,256,000	3.21	%	898,000	4.49	%	15
2	Bed, Bath & Beyond, Inc.	$	12,754,000	2.68	%	736,000	3.68	%	20
3	TJX Companies	$	10,770,000	2.27	%	705,000	3.53	%	21
4	Gap, Inc.	$	9,648,000	2.03	%	294,000	1.47	%	19
5	L.A. Fitness International LLC	$	8,241,000	1.73	%	371,000	1.86	%	9
6	CVS Corporation	$	6,780,000	1.43	%	189,000	0.95	%	16
7	DSW, Inc.	$	5,922,000	1.25	%	200,000	1.00	%	9
8	Best Buy Stores, L.P.	$	5,858,000	1.23	%	212,000	1.06	%	6
9	Home Depot, Inc.	$	5,360,000	1.13	%	438,000	2.19	%	5
10	Barnes & Noble, Inc.	$	5,117,000	1.08	%	214,000	1.07	%	8
11	Michaels Stores, Inc.	$	4,636,000	0.98	%	266,000	1.33	%	11
12	Whole Foods Market, Inc.	$	4,425,000	0.93	%	167,000	0.84	%	4
13	Dick's Sporting Goods, Inc.	$	4,375,000	0.92	%	206,000	1.03	%	5
14	AMC Entertainment Inc.	$	4,294,000	0.90	%	229,000	1.15	%	5
15	Staples, Inc.	$	3,833,000	0.81	%	178,000	0.89	%	9
16	Riverbed Technology, Inc.	$	3,705,000	0.78	%	83,000	0.42	%	2
17	Ross Stores, Inc.	$	3,704,000	0.78	%	208,000	1.04	%	7
18	Kroger Co.	$	3,528,000	0.74	%	311,000	1.56	%	7
19	PETsMART, Inc.	$	3,246,000	0.68	%	150,000	0.75	%	6
20	Wells Fargo Bank, N.A.	$	3,223,000	0.68	%	51,000	0.26	%	13
21	Dress Barn, Inc.	$	3,223,000	0.68	%	133,000	0.67	%	19
22	Bank of America, N.A.	$	3,181,000	0.67	%	64,000	0.32	%	20
23	A.C. Moore, Inc.	$	3,107,000	0.65	%	161,000	0.81	%	7
24	Sports Authority Inc.	$	3,080,000	0.65	%	179,000	0.90	%	4
25	Container Store, Inc.	$	3,071,000	0.65	%	74,000	0.37	%	3
	Totals - Top 25 Tenants	$	140,337,000	29.54	%	6,717,000	33.64	%	250
	Total: (1)	$	475,392,000	(2)		19,995,000	(3)		2,604
Notes:
(1)	Does not include amounts related to leases these tenants have with our partnership with a discretionary fund created and advised by ING Clarion Partners.
(2)	Reflects aggregate, annualized in-place contractual (defined as cash-basis including adjustments for concessions) minimum rent for all occupied spaces as of June 30, 2014.
(3)	Excludes redevelopment square footage not yet placed in service.
(4)	Individual items may not add up to total due to rounding.

25

Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance
June 30, 2014
	2014 Guidance
	(Dollars in millions except
	per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income	$	181		$	185
Net income attributable to noncontrolling interests	(8		)	(8		)
Gain on sale of real estate	(5		)	(5		)
Depreciation and amortization of real estate & joint venture real estate assets	153			153
Amortization of initial direct costs of leases	11			11
Funds from operations	334			337
Dividends on preferred shares	(1		)	(1		)
Income attributable to operating partnership units	3			3
Income attributable to unvested shares	(1		)	(1		)
FFO	$	335		$	338
Weighted average number of common shares, diluted	68.3			68.3
FFO per diluted share	$	4.90		$	4.94

Note:

(1) - Individual items may not add up to total due to rounding.

26

Federal Realty Investment Trust
Summarized Income Statements and Balance Sheets - 30% Owned Joint Venture
June 30, 2014
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(in thousands)
CONSOLIDATED INCOME STATEMENTS
Revenues
Rental income	$	4,455		$	4,524		$	9,463		$	9,444
Other property income	14			100			24			129
	4,469			4,624			9,487			9,573
Expenses
Rental	787			703			2,284			1,907
Real estate taxes	603			615			1,216			1,228
Depreciation and amortization	1,590			1,361			3,077			2,730
	2,980			2,679			6,577			5,865
Operating income	1,489			1,945			2,910			3,708
Interest expense	(781		)	(841		)	(1,620		)	(1,683		)
Net income	$	708		$	1,104		$	1,290		$	2,025
							June 30,			December 31,
							2014			2013
							(in thousands)
CONSOLIDATED BALANCE SHEETS
ASSETS
Real estate, at cost							$	211,605		$	210,703
Less accumulated depreciation and amortization							(42,412		)	(39,836		)
Net real estate							169,193			170,867
Cash and cash equivalents							3,046			2,210
Other assets							5,170			5,668
TOTAL ASSETS							$	177,409		$	178,745
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Mortgages payable							$	44,885		$	56,922
Other liabilities							3,937			4,100
Total liabilities							48,822			61,022
Partners' capital							128,587			117,723
TOTAL LIABILITIES AND PARTNERS' CAPITAL							$	177,409		$	178,745

27

Federal Realty Investment Trust
Summary of Outstanding Debt and Debt Maturities - 30% Owned Joint Venture
June 30, 2014
					Stated Interest Rate as of June 30, 2014
			Maturity						Balance
									(in thousands)
Mortgage Loans
Secured Fixed Rate
Atlantic Plaza			12/1/2014		5.12		%		10,500
Barcroft Plaza			7/1/2016		5.99		%	(a)	20,785
Greenlawn Plaza			7/1/2016		5.90		%		13,600
			Total Fixed Rate Debt						$	44,885
Debt Maturities
(in thousands)
Year	Scheduled Amortization		Maturities		Total				Percent of Debt Maturing			Cumulative Percent of Debt Maturing
2014	$	—	$	10,500	$	10,500			23.4		%	23.4	%
2015	—		—		—				—		%	23.4	%
2016	—		34,385		34,385				76.6		%	100	%
Total	$	—	$	44,885	$	44,885			100.0		%

Notes:
(a)	The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents a note of $16.6 million at a stated rate of 6.06% and a note of $4.2 million at a stated rate of 5.71%.

28

Federal Realty Investment Trust
Real Estate Status Report - 30% Owned Joint Venture
June 30, 2014
Property Name	MSA Description	Year Acquired	Real Estate at Cost		Mortgage Obligation		GLA	% Leased		Grocery Anchor GLA	Grocery Anchor	Other Principal Tenants
			(in thousands)		(in thousands)
Washington Metropolitan Area
Barcroft Plaza	Washington, DC-MD-VA	2006-2007	$	34,559	$	20,785	100,000	79	%	46,000	Harris Teeter	Bank of America
Free State Shopping Center	Washington, DC-MD-VA	2007	66,816				279,000	85	%	73,000	Giant Food	TJ Maxx / Ross Dress For Less / Office Depot
Plaza del Mercado	Washington, DC-MD-VA	2004	21,695				96,000	63	%			CVS
	Total Washington Metropolitan Area		123,070				475,000	79	%
New York / New Jersey
Greenlawn Plaza	Nassau-Suffolk, NY	2006	20,655		13,600		106,000	96	%	46,000	Waldbaum's	Tuesday Morning
	Total New York / New Jersey		20,655				106,000	96	%
New England
Atlantic Plaza	Boston-Worcester-Lawrence-Lowell-Brockton, MA	2004	20,103		10,500		123,000	70	%	64,000	Stop & Shop
Campus Plaza	Boston-Worcester-Lawrence-Lowell-Brockton, MA	2004	23,012				116,000	100	%	46,000	Roche Bros.	Burlington Coat Factory
Pleasant Shops (1)	Boston-Worcester-Lawrence-Lowell-Brockton, MA	2004	24,765				131,000	90	%	38,000	Whole Foods	Marshalls
	Total New England		67,880				370,000	87	%
Grand Totals			$	211,605	$	44,885	951,000	84	%
Note:
(1) On July 24, 2014, the property was sold for $34.3 million.

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Glossary of Terms

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that means net income or loss plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate, gain or loss on deconsolidation of variable interest entity (“VIE”) and impairments of real estate, if any. Adjusted EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2014 and 2013 is as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(in thousands)
Net income	45,416			38,797			85,961			74,639
Depreciation and amortization	40,893			39,853			84,743			80,477
Interest expense	23,213			27,147			46,350			54,552
Early extinguishment of debt	—			3,399			—			3,399
Other interest income	(18		)	(65		)	(43		)	(95		)
EBITDA	109,504			109,131			217,011			212,972
Gain on sale of real estate	—			(4,994		)	—			(4,994		)
Adjusted EBITDA	$	109,504		$	104,137		$	217,011		$	207,978

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization and excluding extraordinary items, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Property Operating Income: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes and excluding operating results from discontinued operations.

Overall Portfolio: Includes all operating properties owned in reporting period.    

Same Center: Information provided on a same center basis is provided for only those properties that were owned and operated for the entirety of both periods being compared, excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease and, except for redevelopments, may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.

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