FEDERAL REALTY INVESTMENT TRUST
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Supplemental Information
March 31, 1999
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TABLE OF CONTENTS
1. Debt Summary...............................................................E-2
2. Occupancy
Percentage Leased....................................................E-3
Economic Occupancy...................................................E-4
Regional Breakdown...................................................E-5
3. Leases Signed Analysis
Comparable and Non-Comparable........................................E-6
4. Sales/Occupancy Cost
Overall, Anchor & Small Shop.........................................E-7
5. 1st Quarter Earnings Press Release, April 28, 1999.........................E-8
6. Glossary of Terms..........................................................E--11
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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, 1999
- --------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
Mortgages
Leesburg Plaza 10/01/08 6.10% $9,900
Federal Plaza 03/10/01 8.95% 27,528
Tysons Station 09/01/01 9.875% 4,123
Escondido (Municipal bonds) 10/01/16 Variable ## 9,400
$50,951
=========
Notes payable
Revolving credit facilities libor +.65% $163,000
Term note with banks libor +.75% 125,000
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,011
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,673
Other various various 191
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$291,875
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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 7/8% Notes (fixed) 01/15/00 8.875% 75,000
8 7/8% Notes (fixed) * 01/15/00 7.530% 25,000
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 * 03/10/04 6.370% 39,500
6.99% Medium Term Notes * 03/10/06 6.894% 40,500
$410,289
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Total fixed rate debt $455,715 60.51%
Total variable rate debt 297,400 39.49%
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Total debt $753,115 100.00%
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Weighted average interest rate:
------------------------
Fixed rate debt 7.19%
Variable on revolving facilities 5.80%**
Variable on muncipal bonds ##
* The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
** Weighted average interest rate on revolving credit facilities for three
months ended March 31, 1999.
## 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.
Federal Realty Investment Trust
Percentage Leased Analysis
31-Mar-99
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Overall Occupancy
(Quarter to Quarter Analysis) March 31, 1999 March 31, 1998
---------------------------------------- --------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ ----------
Retail Properties (leasable square feet) 14,563,620 13,839,142 95% 13,518,261 12,923,203 96%
Rollingwood Apartments (# of units) 282 278 99% 282 280 99%
Overall Occupancy
(Rolling 12 Months) March 31, 1999 December 31, 1998
--------------------------------------- -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ------------ ------------ ----------- ------------ ------------ ---------
Retail Properties (leasable square feet) 14,563,620 13,839,142 95% 14,497,898 13,803,336 95%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
Overall Occupancy
(Rolling 12 Months) September 30, 1998 June 30, 1998
------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ----------------------------------------- ------------ ------------ --------- ------------- ------------ ----------
Retail Properties (leasable square feet) 14,419,458 13,739,610 95% 13,658,940 12,989,036 95%
Rollingwood Apartments (# of units) 282 282 100% 282 281 99%
- ------------------------------------------------------------------------------------------------------------------------------------
Same Center Occupancy
(Quarter to Quarter Comparison) March 31, 1999 March 31, 1998
--------------------------------------- -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ ---------
Retail Properties (leasable square feet) 13,091,729 12,404,610 95% 12,977,817 12,408,061 96%
Rollingwood Apartments (# of units) 282 278 99% 282 280 99%
Same Center Occupancy
(Rolling 12 Months) At March 31, 1999 At December 31, 1998
--------------------------------------- -------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ ----------- ------------ ------------ ---------
Retail Properties (leasable square feet) 13,091,729 12,404,610 95% 13,102,582 12,451,743 95%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
Same Center Occupancy
(Rolling 12 Months) At September 30, 1998 At June 30, 1998
------------------------------------- -----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ------------ ------------ --------- ----------- ------------ ---------
Retail Properties (leasable square feet) 12,056,443 11,459,514 95% 11,938,810 11,358,594 95%
Rollingwood Apartments (# of units) 282 282 100% 282 281 99%
Federal Realty Investment Trust
Economic Occupancy Analysis
March 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------
Overall Economic Occupancy
(Quarter to Quarter Analysis) March 31, 1999 March 31, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- -------------- --------- ------------- ---------- -------------
Retail Properties (leasable square feet) 14,563,620 13,594,814 93% 13,518,261 12,619,318 93%
Rollingwood Apartments (# of units) 282 278 99% 282 280 99%
Overall Economic Occupancy
(Rolling 12 Months) March 31, 1999 December 31, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- -------------- --------- ----------- -------------- ---------
Retail Properties (leasable square feet) 14,563,620 13,594,814 93% 14,497,898 13,626,536 94%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
Overall Economic Occupancy
(Rolling 12 Months) September 30, 1998 June 30, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- --------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 14,419,458 13,578,116 94% 13,658,940 12,778,700 94%
Rollingwood Apartments (# of units) 282 282 100% 282 274 97%
- ---------------------------------------------------------------------------------------------------------------------------
Same Center Economic Occupancy
(Quarter to Quarter Comparison) March 31, 1999 March 31, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- -------------- --------- ------------- --------------- ---------
Retail Properties (leasable square feet) 13,091,729 12,170,282 93% 12,977,817 12,104,176 93%
Rollingwood Apartments (# of units) 282 278 99% 282 280 99%
Same Center Economic Occupancy
(Rolling 12 Months) At March 31, 1999 At December 31, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- -------------- --------- ---------- --------------- ---------
Retail Properties (leasable square feet) 13,091,729 12,170,282 93% 13,102,582 12,274,943 94%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
Same Center Economic Occupancy
(Rolling 12 Months) At September 30, 1998 At June 30, 1998
-------------------------------------- ---------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ------------- --------------- --------- ---------- --------------- ---------
Retail Properties (leasable square feet) 12,056,443 11,315,875 94% 11,938,810 11,167,083 94%
Rollingwood Apartments (# of units) 282 282 100% 282 274 97%
Federal Realty Investment Trust
Regional Occupancy Analysis
March 31, 1999
- ----------------------- -------------- -------------
Total Square Occupancy
Region Footage 03/31/99
- ----------------------- -------------- -------------
Northeast 6,207,060 95.5%
Mid-Atlantic 5,687,041 96.7%
Mid-West 921,549 94.4%
Southeast 635,890 74.5%
West Coast 1,072,505 96.1%
Southwest 39,575 92.3%
- ----------------------- -------------- -------------
Total Square Occupancy
Region Footage 03/31/99
- ----------------------- -------------- -------------
Northeast 6,207,060 95.5%
Anchor 3,757,950 97.5%
Small Shops 2,449,110 92.6%
Mid-Atlantic 5,687,041 96.7%
Anchor 2,760,806 98.8%
Small Shops 2,926,235 94.7%
Mid-West 921,549 94.4%
Anchor 585,651 97.7%
Small Shops 335,898 88.6%
Southeast 635,890 74.5%
Anchor 304,894 67.5%
Small Shops 330,996 80.9%
West Coast 1,072,505 96.1%
Anchor 232,338 100.0%
Small Shops 840,167 95.0%
Southwest 39,575 92.3%
Anchor 0 0%
Small Shops 39,575 92.3%
Federal Realty Investment Trust
Leasing Activity
March 31, 1999
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Comparable
Weighted Average Prior
Number of Square Average Lease Rent Per
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot
- ---------------------- -------------- ----------- --------------- ------------------
1st Quarter 1999 56 199,197 6.0 $16.88
4th Quarter 1998 59 314,603 7.2 $15.52
3rd Quarter 1998 59 230,114 5.9 $14.04
2nd Quarter 1998 68 241,132 7.8 $15.33
Total 242 985,046 6.4 $15.40
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Estimated
Average Current Percentage Tenant
Rent Per Annualized Increase Improvement
Square Foot Increase in Rent over Prior Rent Costs
- ------------------- ----------------- ---------------- ------------
$20.27 $675,482 20% $935,000
$17.45 $607,238 12% $588,000
$15.47 $330,680 10% $333,000
$20.14 $1,160,247 31% $933,000
$18.22 $2,773,647 18% $2,789,000
Non-Comparable Weighted
Average
Number of Square Lease Average Rent
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot
- ---------------------- -------------- ----------- --------------- ------------------
1st Quarter 1999 13 120,121 14.7 $20.91
4th Quarter 1998 19 130,798 10.6 $21.47
3rd Quarter 1998 7 57,613 16.9 $22.15
2nd Quarter 1998 15 63,474 9.3 $14.30
Total 54 372,006 13.6 $20.17
Estimated
Annualized Tenant
Current Improvement
Rent Costs
- --------------------- ----------------
$2,511,594 $494,000
$2,808,414 $280,000
$1,276,091 $121,000
$907,455 $78,000
$7,503,554 $973,000
Federal Realty Investment Trust
1998 Sales/Occupancy Costs
Average Average
Average Occupancy Occupancy Costs
Sales Per Cost per as Percentage
Square Foot Square Foot of Sales
--------------- ------------- ----------------
Reporting Tenants* $280.67 $15.61 5.5%
Reporting Anchor Tenants $289.44 $10.79 3.7%
Reporting Small Shop Tenants $265.78 $23.82 9.0%
* Includes only those tenants that have 12 months of reported sales in 1998.
Kathy Klein
Vice President
Corporate Communications
301/998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
FIRST QUARTER 1999 OPERATING RESULTS
April 28, 1999
Rockville, Maryland
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the first quarter of 1999 increased 11% to $23.7 million from
$21.2 million in the first quarter of 1998. On a per share basis, funds from
operations rose 9% to $.58 in the first quarter of 1999 from $.53 in the
comparable quarter of 1998.
A comparison of property operations for the first quarter of 1999 versus
the first quarter of 1998 shows the following:
. Rental income increased 13% to $59.4 million in 1999 from $52.5 million
in 1998. When adjusted to exclude properties acquired and sold during
1998 and 1999, rental income increased 7% to $56.2 million in 1999 from
$52.5 million in 1998.
. During the first quarter of 1999, the Trust signed leases for a total
319,318 square feet of retail space. On a same space basis, the Trust
re-leased 199,197 square feet of retail space at an average increase in
rent per square foot of 20%. The weighted average rent on these leases
was $20.27 per square foot compared to the previous average rent of
$16.88 per square foot.
. At March 31, 1999, the Trust's overall portfolio was 95.0% leased
compared to 95.6% a year ago. Same property occupancy was 94.8% leased
at March 31, 1999 compared to 95.6% a year ago.
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "We are pleased with our strong first quarter results. The 9.4%
increase in funds from operations per share reflects solid revenue and income
growth from our core portfolio combined with tight operating expense control
resulting from our comprehensive reengineering efforts."
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 121 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
31 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol:FRT.
###
Financial Highlights
(in thousands, except per share data)
Three Months Ended
March 31,
OPERATING RESULTS 1999 1998
- ----------------- ---- ----
Revenues
Rental Income $ 59,433 $ 52,481
Other property income 2,272 2,102
Interest income 1,878 1,594
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63,583 56,177
Expenses
Rental 13,648 11,922
Real estate taxes 6,012 5,472
Interest 15,133 12,693
Administrative 2,254 1,841
Depreciation and amortization 12,281 10,769
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49,328 42,697
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Operating income before investors' share of operations 14,255 13,480
Investor's share of operations (701) (786)
Net income $ 13,554 $ 12,694
Dividends on preferred stock (1,988) (1,988)
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Net income available for common shareholders $ 11,566 $ 10,706
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Earnings per common share, basic $ 0.29 $ 0.27
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Earnings per common share, diluted $ 0.29 $ 0.27
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Weighted average shares outstanding, basic 39,435 38,949
Weighted average shares outstanding, diluted 40,545 39,870
Funds from Operations
Net income available for common shareholders $ 11,566 $ 10,706
Add: depreciation and amortization of real estate assets 11,128 9,738
Add: amortization of initial direct costs of leases 718 593
Add: income attributable to operating partnership units 264 207
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Funds from operations, diluted $ 23,676 $ 21,244
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Funds from operations per share, diluted $ 0.58 $ 0.53
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March 31, December 31,
BALANCE SHEET DATA 1999 1998
- ------------------ ---- ----
Assets
Real estate, at cost $1,676,270 $1,642,136
Accumulated depreciation and amortization (297,221) (286,053)
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1,379,049 1,356,083
Mortgage notes receivable 55,551 51,154
Cash and investments 12,547 17,230
Receivables 17,492 17,873
Other assets 38,457 41,977
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Total assets $1,503,096 $1,484,317
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Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $ 173,262 $ 173,480
Notes payable 291,875 263,159
Senior Notes 335,000 335,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 102,378 107,442
Shareholders' Equity 525,292 529,947
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$1,503,096 $1,484,317
========== ==========
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.
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 centers
owned in reporting period.
Same center occupancy: Occupancy for only those centers owned and operating in
the periods being compared. Excludes centers purchased or sold as well as
properties under redevelopment.
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.