Exhibit 99.2
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FOR IMMEDIATE RELEASE
MARCH 11, 2002
Investor Inquiries Media Inquiries
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Andrew Blocher Kristine Warner
Vice President, Investor Relations & Finance Director, Corporate Communications
301/998-8166 301/998-8212
ablocher@federalrealty.com kwarner@federalrealty.com
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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SUCCESSION PLAN
ROCKVILLE, MD (March 11, 2002) Federal Realty Investment Trust (NYSE:FRT)
announced today that it intends to appoint Donald C. Wood, president and chief
operating officer, to the position of chief executive officer following Steven
J. Guttman's planned retirement in March 2003. Mr. Guttman is currently chairman
of the board and chief executive officer and will retain his position as
chairman of the board after his retirement.
Upon his retirement as chief executive officer, Mr. Guttman intends to form a
venture dedicated to the planning and development of urban mixed-use
communities. "While I firmly believe in the long-term value creation of
pedestrian-friendly, street retail communities," said Mr. Guttman, " the markets
have proven that mixing investment strategies with significantly different time
horizons, risks and rewards has made it more difficult to appropriately value
Federal Realty."
Following Mr. Guttman's retirement, the Trust expects to enter into an agreement
on arms-length terms with Mr. Guttman's new venture to provide leasing and
management services for Santana Row and Bethesda Row. The Trust does not
contemplate investing in Mr. Guttman's venture. All aspects of the agreement
will be subject to approval by a special committee of independent trustees
created for this sole purpose.
In choosing Don Wood to succeed him, Steven Guttman stated, "After more than 20
years of running a public company, I am pleased to have identified someone with
Don's talents. Don's leadership role in all aspects of our business and his
operational strengths have been a driving force behind the success of our
company and the superior performance of the core portfolio for the last several
years. Federal Realty has great assets and great people, and I am confident in
Don's ability to lead the Trust to the next level."
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Federal Realty Announces Succession Plan
March 11, 2002
Page 2
Mr. Wood joined the Trust in 1998 as chief financial officer and was promoted to
senior vice president and chief operating officer in 1999. In 2001, Mr. Wood was
named president and chief operating officer of the Trust, the position he
currently holds. Prior to joining Federal Realty, Mr. Wood was senior vice
president and chief financial officer of Caesars World, Inc., a wholly owned
subsidiary of ITT Corporation. In this position, he was responsible for all
aspects of finance throughout the company including strategic planning and
forecasting, process reengineering and capital allocation.
"I am honored to have been selected to lead the Trust over the coming years,"
commented Don Wood. "For the past three decades, Steve has been a leader and
innovator in the retail real estate industry. Under his leadership, Federal
Realty has assembled one of the most productive and highest quality retail
portfolios in the country. With this solid foundation, I believe the Trust is
well positioned to produce consistently improving results for our shareholders
and am excited to build on the Trust's 40-year history of increasing
profitability."
An employee of Federal Realty Investment Trust since 1972, Mr. Guttman was named
chief operating officer of the Trust in 1975. He became managing trustee of
Federal Realty in 1979, and was named president, chief executive officer and
trustee in 1980. Since Mr. Guttman assumed leadership in 1979, Federal Realty's
assets grew from $41 million to $2.1 billion; funds from operations grew at a
compound annual growth rate of 7.5% and the dividend rate has increased each
year, growing at a compound annual rate of 6.8% from $.45 in 1979 to the current
rate of $1.92. Over the next year, Mr. Guttman will focus his efforts primarily
on the successful opening and operation of Santana Row, the Trust's mixed-used
development project in San Jose, California.
Federal Realty
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Federal Realty Investment Trust is an equity real estate investment trust
specializing in the ownership, management, development and re-development of
shopping centers and street retail properties. Federal Realty's portfolio
contains 15.2 million square feet located in major metropolitan markets across
the United States. The operating portfolio is currently 96% leased to over 2,100
national, regional and local retailers with no single tenant accounting for more
than 2.7% of rental revenue. Federal Realty has paid quarterly dividends to its
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Federal Realty Announces Succession Plan
March 11, 2002
Page 3
shareholders continuously since its founding in 1962, and has increased its
dividend rate for 34 consecutive years. Shares of Federal Realty are traded on
the New York Stock Exchange under the symbol FRT. Additional information about
Federal Realty can be found on the Internet at www.federalrealty.com.
Safe Harbor Language
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Certain matters discussed within this press release may be deemed to be forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Although Federal Realty Investment Trust believes the
expectations reflected in such forward looking statements are based on
reasonable assumptions, it can give no assurance that its expectations will be
attained. Factors that could cause actual results to differ materially from
Federal Realty's expectations are detailed from time to time in the Company's
SEC reports and filings, including its annual report on Form 10-K. Federal
Realty assumes no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events.
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