FEDERAL REALTY INVESTMENT TRUST
Supplemental Information
March 31, 2000
TABLE OF CONTENTS
1. Debt Summary...................................................... E-2
2. Occupancy
Percentage Leased........................................... E-3
Regional Breakdown.......................................... E-4
3. Sales/Occupancy Cost.............................................. E-5
4. Leases Signed Analysis
Comparable and Non-Comparable............................... E-6
5. Street Retail Operating & Development Overview.................... E-7
6. Development Pipeline.............................................. E-8
7. First Quarter Earnings Press Release, May 4, 2000................. E-9
8. Glossary of Terms................................................. E-12
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (excluding capital leases and interest rate swaps)
March 31, 2000
- --------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
-------- ---- --------------
Mortgages
Leesburg Plaza 10/01/08 6.10% $ 9,900
Federal Plaza 03/10/01 8.95% 27,057
Tysons Station 09/01/01 9.875% 4,049
Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400
--------------
$ 50,406
==============
Notes payable
Revolving credit facilities libor +.65% $184,100
Term note with banks libor +.75% 125,000
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 901
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,579
Note issued in connection with land purchase 08/14/00 libor + 1.5% 3,400
Other various various 141
--------------
$316,121
==============
Unsecured Public Debt
5 1/4% Convertible subordinated 04/30/02 5.250% $ 289
debentures
5 1/4% Convertible subordinated 10/28/03 5.250% 75,000
debentures
8% Notes (fixed) 04/21/02 8.000% 25,000
6 5/8% Notes (fixed) 12/01/05 6.625% 40,000
7.48% Debentures 08/15/26 7.480% 50,000
6.82% Medium Term Notes 08/01/27 6.820% 40,000
6.74% Medium Term Notes (b) 03/10/04 6.370% 39,500
6.99% Medium Term Notes (b) 03/10/06 6.894% 40,500
8.75% Notes 12/01/09 8.750% 175,000
--------------
$485,289
==============
Total fixed rate debt $529,916 62.21%
Total variable rate debt 321,900 37.79%
-------------- ---------
Total debt $851,816 100.00%
============== =========
Weighted average interest rate:
------------------------------
Fixed rate debt 7.45%
Variable on revolving facilities 6.68% (c)
Variable on muncipal bonds (a)
(a) The bonds bear interest at a variable rate determined weekly to be the
interest rate which would enable the bonds to be remarketed at 100% of
their principal amount.
(b) The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
(c) Weighted average interest rate on revolving credit facilities for three
months ended March 31, 2000.
E-2
Federal Realty Investment Trust
Percentage Leased Analysis
March 31, 2000
- ----------------------------------------------------------------------------------------------------------------------------------
Overall Operating Occupancy
(Quarter to Quarter Analysis) At March 31, 2000 At March 31, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ------------------------------------------ ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,171,079 13,506,203 95% 14,563,620 13,839,142 95%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
Overall Operating Occupancy
(Rolling 12 Months) At March 31, 2000 At December 31, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,171,079 13,506,203 95% 14,037,093 13,494,066 96%
Rollingwood Apartments (# of units) 282 282 100% 282 278 98%
Overall Operating Occupancy
(Rolling 12 Months) At September 30, 1999 At June 30, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,348,626 13,658,207 95% 14,541,750 13,797,209 95%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
- ------------------------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) At March 31, 2000 At March 31, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,066,413 13,418,914 95% 13,844,380 13,233,178 96%
Rollingwood Apartments (# of units) 282 282 100% 282 278 99%
Same Center Occupancy
(Rolling 12 Months) At March 31, 2000 At December 31, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,066,413 13,418,914 95% 13,865,499 13,345,911 96%
Rollingwood Apartments (# of units) 282 282 100% 282 278 98%
Same Center Occupancy
(Rolling 12 Months) At September 30, 1999 At June 30, 1999
--------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ---------- ------------- ------------ ---------- -------------
Retail Properties (leasable square feet) 14,304,720 13,613,931 95% 13,622,710 12,891,283 95%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
E-3
Federal Realty Investment Trust
Regional Occupancy Analysis
March 31, 2000
- --------------------------------------------------------------------
Total Square Occupancy
Region Footage 03/31/00
- --------------------------------------------------------------------
Northeast 7,041,792 96%
Mid-Atlantic 5,922,127 94%
West Coast 1,207,160 94%
- --------------------------------------------------------------------
Total Square Occupancy
Region Footage 03/31/00
- --------------------------------------------------------------------
Northeast
Anchor 4,317,789 98%
Small Shops 2,724,003 93%
Mid-Atlantic
Anchor 2,731,889 96%
Small Shops 3,190,238 93%
West
Anchor 274,915 100%
Small Shops 932,245 92%
E-4
Federal Realty Investment Trust
1999 Sales/Occupancy Costs
Average Average
Average Occupancy Occupancy Costs
Sales Per Cost per as Percentage
Square Foot Square Foot of Sales
----------- ----------- ---------------
Reporting Tenants $308.35 $16.98 5.5%
Reporting Anchor Tenants $323.73 $12.42 3.8%
Reporting Small Shop Tenants $282.48 $24.64 8.7%
E-5
Federal Realty Investment Trust
Retail Leasing Activity
March 31, 2000
- ---------------------------------------------------------------------------------------------------------------------------------
Comparable Estimated
Weighted Average Prior Average Current Percentage Tenant
Number of Square Average Lease Rent Per Rent Per Annualized Increase over Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent Prior Rent Costs
- ----------------- ------------- --------- ------------- ------------- --------------- ---------------- ------------- -----------
1st Quarter 2000 64 297,054 9.1 $16.38 $18.89 $ 746,945 15% $ 5,128,000
4th Quarter 1999 79 270,278 8.7 $20.14 $24.32 $1,129,625 21% $ 2,710,000
3rd Quarter 1999 87 324,332 7.3 $16.02 $20.34 $1,401,643 27% $ 3,799,000
2nd Quarter 1999 74 237,065 5.9 $18.03 $21.70 $ 871,258 20% $ 1,799,000
Total 304 1,128,729 8.4 $17.52 $21.20 $4,149,471 21% $13,436,000
Non-Comparable Weighted Estimated
Average Annualized Tenant
Number of Square Lease Average Rent Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs
- ------------------- --------------- -------- -------------- --------------- ---------- -------------
1st Quarter 2000 10 50,126 12.8 $24.07 $1,206,432 $1,026,000
4th Quarter 1999 9 39,545 8.7 $18.13 $ 717,011 $ 389,000
3rd Quarter 1999 12 105,948 10.2 $20.32 $2,153,331 $ 521,000
2nd Quarter 1999 7 11,592 7.9 $43.30 $ 501,908 $ 91,000
Total 38 207,211 9.6 $22.10 $4,578,682 $2,027,000
E-6
Federal Realty Investment Trust
Street Retail Operating & Development Overview
March 31, 2000
For the year ended December 31, March 31,
(in thousands, except sf data) 1996 1997 1998 1999 2000
-----------------------------------------------------------------------------
Real Estate Assets (1) $ 164,931 $ 288,020 $ 365,874 $ 449,182 $ 475,000
Revenues $ 20,555 $ 31,998 $ 42,643 $ 50,288 $ 13,924
Net Operating Income $ 12,538 $ 20,345 $ 28,660 $ 34,774 $ 10,134
Square Feet (2) 1,122,737 1,502,807 1,601,849 1,691,593 1,715,244
(1) At March 31, 2000, includes $111 million related to new development in
process. The balance is comprised of both stabilized assets and assets
which are in various stages of redevelopment.
(2) Excludes new development square footage
NORTHEAST Square Feet MID-ATLANTIC Square Feet
Connecticut Virginia
Greenwich Avenue/4 80,791 Pentagon Row N/A (2)
West Hartford/7 125,347 Village at Shirlington 203,359
Westport/2 26,408
WESTERN
Massachusetts Arizona
Coolidge Corner/1 13,101 Mill Avenue/2 39,532
New Jersey California
Central Avenue/1 11,208 Colorado Boulevard/2 67,382
Fifth Avenue/5 66,962
New York Hermosa Beach/1 5,930
Forest Hills/4 91,593 Post Street/1 98,670
Old Town Center 101,000
Santana Row N/A (2)
MID-ATLANTIC Third Street Promenade/8 152,597
District of Columbia Hollywood Blvd./3 198,464
Sam's Park N Shop 49,706
Illinois
Florida Evanston/2 18,813
Winter Park/2 28,446 Oak Street/1 5,000
Maryland Texas
Bethesda Row 330,935 (2) Houston Street/10 N/A (2)
E-7
FEDERAL REALTY INVESTMENT TRUST
Development Pipeline
March 31, 2000
Total Expected
Cost Estimate To Complete Completed Stabilized Principal
Project Specifications To Date 2000 2001 2002 Cost Return Tenants
- ----------------------------------------------------------------------------------------------------------------------------------
COMPLETED DEVELOPMENTS
Bethesda Row - Elm Street 15,000 sf retail $ 8 $ 1 $ 9 11% Cafe Deluxe
Bethesda, Maryland 30,000 sf office Vitamin Superstore
Three Dog Bakery
Prudential
Long & Foster
- -----------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS
Bethesda Row - Woodmont East 60,000 sf retail $ 13 $ 15 $ 4 $ 32 11% Landmark Theatres
Bethesda, Maryland 80,000 sf office
Pentagon Row 300,000 sf retail (1) $ 12 $ 48 $ 8 $ 68 11% Harris Teeter
Arlington, Virginia 500 apartment units Bed, Bath & Beyond
----- ------ ----- ----- ----- Bally's Fitness
Hudson Trail
$ 25 $ 63 $ 12 $ 0 $ 100 Outfitters
- ----------------------------------------------------------------------------------------------------------------------------------
TO DEVELOP
Houston Street 165,000 sf retail $ 22
San Antonio, Texas 80,000 sf office
500 hotel rooms (2)
Santana Row 680,000 sf retail $ 63
San Jose, California 1,200 residential units
200 hotel rooms (2)
The Shops at Tanasbourne 300,000 sf retail $ 12
Portland, Oregon 12,000 sf office
Lindbergh Center 300,000 sf retail (1) $ 1
Atlanta, Georgia 320 apartments
120 hotel rooms
290 condominiums
1.3 million sf office
-----
$ 98
- -----------------------------------------------------------------------------------------------------------------------------------
Total $ 131
=====
(1) Federal Realty will develop only the retail component of this project.
(2) Federal Realty will not develop the hotel component of this project.
E-8
[LOGO]
[LETTERHEAD OF FEDERAL REALTY INVESTMENT TRUST]
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 2000 OPERATING RESULTS
May 4, 2000
Rockville, Maryland
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the first quarter of 2000 increased 5.9% to $25.1 million from
$23.7 million in the first quarter of 1999. On a per share basis, funds from
operations rose 6.9% to $.62 in the first quarter of 2000 from $.58 in the
comparable quarter of 1999.
A comparison of property operations for the first quarter of 2000 versus
the first quarter of 1999 shows the following:
. Rental income increased 8.1% to $64.2 million in 2000 from $59.4
million in 1999. When adjusted to exclude properties acquired, sold
and developed during 1999 and 2000, rental income increased 7.2% to
$62.6 million in 2000 from $58.4 million in 1999.
. Net operating income increased 9.2% to $45.9 million in the first
quarter of 2000 from $42.0 million in 1999. When adjusted to exclude
properties acquired, sold and developed during 1999 and 2000, net
operating income increased 8.1% to $44.7 million in 2000 from $41.4
million in 1999.
. During the first quarter of 2000, the Trust signed leases for a total
347,000 square feet of retail space. On a same space basis, the Trust
re-leased 297,000 square feet of retail space at an average increase
in rent per square foot of 15%. The weighted average rent on these
leases was $18.89 per square foot compared to the previous average
rent of $16.38 per square foot.
. At March 31, 2000, the Trust's overall portfolio was 95.3% leased
compared to 95.0% a year ago. Same property occupancy was 95.4% leased
at March 31, 2000 compared to 95.6% a year ago.
E-9
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "We are pleased with our first quarter results. While rising
interest rates will likely put pressure on our funds from operation growth over
the next 12 to 18 months, our high quality core portfolio should continue to
generate above average internal growth as the Trust continues to execute its
mixed-use development strategy. Construction is proceeding apace on Phase IV of
our Bethesda Row master plan development in Bethesda, Maryland and we are on
target for a spring 2001 opening. Likewise, we are making excellent progress on
our Pentagon Row project in Arlington, Virginia. The project is presently 85%
pre-leased with a targeted opening in the second half of 2001."
Federal Realty is an equity real estate investment trust specializing in
the ownership, management and redevelopment of prime retail properties. The
Trust's real estate portfolio contains 124 retail properties, consisting of
neighborhood and community shopping centers and main street retail properties,
located in strategic metropolitan markets across the United States. These
markets include Boston, New York, Philadelphia, Washington D.C., Chicago, San
Antonio, Portland, San Francisco, Los Angeles, San Jose and San Diego.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962 and has increased its dividend rate for
32 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol:FRT.
###
E-10
Financial Highlights
(in thousands, except per share data)
Three Months Ended
March 31,
(Unaudited)
OPERATING RESULTS 2000 1999
- ----------------- ---- ----
Revenues
Rental income $ 64,232 $ 59,433
Other property income 2,765 2,272
Interest income 2,107 1,878
---------- ----------
69,104 63,583
Expenses
Rental 14,620 13,648
Real estate taxes 6,457 6,012
Interest 16,493 15,133
Administrative 2,922 2,254
Depreciation and amortization 12,655 12,281
---------- ----------
53,147 49,328
---------- ----------
Operating income before investors' share of operations 15,957 14,255
Investor's share of operations (1,818) (701)
---------- ----------
Net income $ 14,139 $ 13,554
Dividends on preferred stock (1,988) (1,988)
---------- ----------
Net income a vailable for common shareholders $12,151 $11,566
========== ==========
Earnings per common share, basic $0.31 $0.29
========== ==========
Earnings per common share, diluted $0.31 $0.29
========== ==========
Weighted average shares outstanding, basic 39,444 39,435
Weighted average shares outstanding, diluted 40,595 40,545
Funds from Operations
Net income available for common shareholders $ 12,151 $ 11,566
Add: depreciation and amortization of real estate assets 11,487 11,128
Add: amortization of initial direct costs of leases 830 718
Add: income attributable to operating partnership units 613 264
---------- ----------
Funds from operations, diluted $ 25,081 $ 23,676
========== ==========
Funds from operations per share, diluted $0.62 $0.58
========== ==========
March 31, December 31,
BALANCE SHEET DATA 2000 1999
- ------------------ ---- ----
Assets (Unaudited)
Real estate, at cost $1,760,541 $1,721,459
Accumulated depreciation and amortization (327,847) (317,921)
---------- ----------
1,432,694 1,403,538
Mortgage notes receivable 56,943 53,495
Cash and investments 13,711 11,738
Receivables 19,961 23,130
Other assets 38,793 42,147
---------- ----------
Total assets $1,562,102 $1,534,048
========== ==========
Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $ 172,333 $ 172,573
Notes payable 316,121 162,768
Senior Notes 410,000 510,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 110,362 111,591
Shareholders' Equity 477,997 501,827
---------- ----------
$1,562,102 $1,534,048
========== ==========
E-11
Glossary of Terms
Average occupancy costs: Includes rent, common area maintenance expense, real
estate taxes, merchant association dues and other charges
Economic occupancy: The square footage generating rental income expressed as a
percentage of its total rentable square feet.
Leases signed - comparable: Represents leases signed on spaces for which there
was a former tenant.
Leases signed - noncomparable: Represents leases signed on spaces for which
there was no previous tenant, i.e. expansion space or space that was previously
non-leasable.
Leases signed - prior rent: Total rent paid by the previous tenant; includes
minimum and percentage rent.
Net Operating Income: Gross revenues, including interest income, less rental
expenses and real estate taxes.
Occupancy: The currently leased portion of a property expressed as a percentage
of its total rentable square feet; includes square feet covered by leases for
stores not yet opened.
Overall occupancy: Occupancy for the entire portfolio -- includes all operating
properties owned in reporting period.
Same center occupancy: Occupancy for only those properties owned and operating
in the periods being compared. Excludes centers purchased or sold as well as
properties under redevelopment and development.
Tenant improvement costs: Represents the total dollars committed for the
improvement (fit-out) of a space as relates to a specific lease. The amounts
shown represent not only the estimated cost to fit-out the tenant space, but may
also include base building costs (i.e. expansion, escalators or new entrances)
which are required to make the space leasable.
E-12