ROCKVILLE, Md., Aug. 4 /PRNewswire-FirstCall/ -- Federal Realty
Investment Trust (NYSE:FRT) today reported operating results for
its second quarter ended June 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO ) Financial
Results Federal Realty reported funds from operations available for
common shareholders (FFO) of $57.4 million or $0.97 per diluted
share, and net income available for common shareholders of $28.3
million or earnings per diluted share of $0.48 for the second
quarter 2009. For the six months ended June 30, 2009, Federal
Realty reported FFO of $95.4 million, or $1.61 per diluted share.
Net income available for common shareholders was $38.6 million and
earnings per diluted share was $0.65 for the six months ended June
30, 2009. Excluding the litigation provision, year-to-date FFO was
$116.1 million, or $1.95 per diluted share, versus $111.7 million,
or $1.89 per diluted share, for the same six-month period in 2008.
Net income available for common shareholders excluding the
litigation provision was $59.4 million and earnings per diluted
share was $1.00 for the six months ended June 30, 2009 versus $58.7
million and $0.99, respectively, for the same six-month period in
2008. 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 attributable to the Trust is
attached to this press release. Portfolio Results In second quarter
2009, same-center property operating income increased 1.6% over
second quarter 2008. When redevelopment and expansion properties
are excluded from same-center results, property operating income
for second quarter 2009 decreased 1.4% compared to second quarter
2008. The overall portfolio was 94.0% leased as of June 30, 2009,
compared to 94.2% on March 31, 2009 and 95.8% on June 30, 2008.
Federal Realty's same-center portfolio was 94.2% leased on June 30,
2009, compared to 94.5% on March 31, 2009 and 96.1% on June 30,
2009. During the second quarter of 2009, Federal Realty signed 71
leases for 319,000 square feet of retail space. On a comparable
space basis (i.e., spaces for which there was a former tenant), the
Trust leased 315,000 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 average contractual rent
on this comparable space for the first year of the new leases is
$26.87 per square foot, compared to the average contractual rent of
$23.25 per square foot for the last year of the prior leases. The
previous average contractual rent was 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 29%
for second quarter 2009. As of June 30, 2009, Federal Realty's
average contractual, cash basis minimum rent for retail and
commercial space in its portfolio was $21.93 per square foot.
Regular Quarterly Dividends Federal Realty also announced today
that its Board of Trustees increased the dividend rate on its
common shares, declaring a regular quarterly cash dividend of $0.66
per share, resulting in an indicated annual rate of $2.64 per
share, an increase of $0.04 annually or 1.5%. The regular common
dividend will be payable on October 15, 2009, to common
shareholders of record as of September 23, 2009. This increase
represents the 42nd consecutive year that Federal Realty has
increased its common dividend, the longest record of consecutive
annual dividend increases in the REIT sector. "We believe that a
cash dividend is essential to most REIT investors and we are proud
to not only continue to pay a quarterly dividend in cash, but to
increase that dividend for the 42nd consecutive year," said Donald
C. Wood, president and chief executive officer of the Trust. "We
would not be able to continue this record without a consistent
earnings stream which comes from owning the highest quality
properties with a steady focus on core operations. In addition, we
have demonstrated significant access to capital which has
strengthened our balance sheet and provides us the ability to
pursue future growth opportunities." Guidance Federal Realty
narrowed guidance, excluding the provision for litigation, for 2009
FFO per diluted share to a range of $3.82 to $3.87, and provided
2009 earnings per diluted share guidance of $1.91 to $1.96. Summary
of Other Quarterly Activities and Recent Developments -- June 4,
2009 - Completed a cash tender offer for its outstanding 8.75%
Notes due 2009 (CUSIP No.313747AG2), purchasing an aggregate of
$40,266,000 principal amount of the Securities (representing 24.6%
of the outstanding Securities). The consideration paid for the
Securities was $1,020 per $1,000 in principal amount, plus accrued
and unpaid interest to, but not including, June 4, 2009. The
aggregate consideration paid for the Securities tendered, exclusive
of accrued interest and transaction costs, was approximately $41.1
million. -- June 4, 2009 - Closed on a $139 million five-year loan
secured by four retail assets located in Northern Virginia at an
effective annual rate of 7.7%. -- May 4, 2009 - Closed a new $372
million unsecured term loan, proceeds of which were utilized to
retire the Trust's outstanding $200 million unsecured term loan,
pay down the outstanding balance on our revolving credit facility,
and provide capital to retire the 8.75% Notes due December 1, 2009.
The term loan, which bears interest at an annual rate of LIBOR
(subject to a 1.5% floor) plus 300 basis points, will mature in
July 2011. The term loan was increased from its initial size of
$200 million, reflecting significant demand from high-quality
financial institutions for the Trust's credit at market leading
terms. -- April 14, 2009 - Closed a $24.1 million, ten-year loan
secured by Rollingwood Apartments in Silver Spring, Maryland at an
effective annual interest rate of 5.7%. Conference Call Information
Federal Realty's management team will present an in-depth
discussion of the Trust's operating performance on its second
quarter 2009 earnings conference call, which is scheduled for
August 5, 2009, at 11 a.m. Eastern Daylight Time. To participate,
please call (866) 783-2143 five to ten minutes prior to the call
start time and use the passcode FRT EARNINGS (required). Federal
Realty will also provide an online Webcast on the Company's Web
site, http://www.federalrealty.com/, which will remain available
for 30 days following the call. A telephone recording of the call
will also be available through September 3, 2009, by dialing (888)
286-8010 and using the passcode 10487453. About Federal Realty
Federal Realty Investment Trust is an equity real estate investment
trust specializing in the ownership, management and redevelopment
of high quality retail assets. Federal Realty's portfolio
(excluding joint venture properties) contains approximately 18.2
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 94.0% leased to
national, regional, and local retailers as of June 30, 2009, with
no single tenant accounting for more than approximately 2.6% 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 42 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. For more information, please visit
http://www.federalrealty.com/. 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 26, 2009 and amended on June 25, 2009, and include the
following: -- risks that our tenants will not pay rent or that we
may be unable to renew leases or re-let space at favorable rents as
leases expire; -- risks that we may not be able to proceed with or
obtain necessary approvals for any redevelopment or renovation
project, and that completion of anticipated or ongoing property
redevelopments or renovations may cost more, take more time to
complete, or fail to perform as expected; -- risks that the number
of properties we acquire for our own account, and therefore the
amount of capital we invest in acquisitions, may be impacted by our
real estate partnership; -- risks normally associated with the real
estate industry, including risks that occupancy levels at our
properties and the amount of rent that we receive from our
properties may be lower than expected, that new acquisitions may
fail to perform as expected, that competition for acquisitions
could result in increased prices for acquisitions, that
environmental issues may develop at our properties and result in
unanticipated costs, and, because real estate is illiquid, that we
may not be able to sell properties when appropriate; -- risks that
our growth will be limited if we cannot obtain additional capital;
-- risks of financing, such as our ability to consummate additional
financings or obtain replacement financing on terms which are
acceptable to us, our ability to close any pending financing
activities, 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 February 26, 2009 and amended on June 25,
2009. Investor and Media Inquiries Gina Birdsall Janelle Stevenson
Investor Relations Corporate Communications 301/998-8265
301/998-8185 Federal Realty Investment Trust Summarized Balance
Sheets June 30, 2009 June 30, December 31, 2009 2008 ---- ---- (in
thousands) ASSETS (unaudited) Real estate, at cost Operating
$3,576,472 $3,567,035 Construction-in- progress 131,506 106,650
------- ------- 3,707,978 3,673,685 Less accumulated depreciation
and amortization (889,316) (846,258) -------- -------- Net real
estate 2,818,662 2,827,427 Cash and cash equivalents 170,059 15,223
Accounts and notes receivable 68,726 73,688 Mortgage notes
receivable 48,464 45,780 Investment in real estate partnership
28,801 29,252 Prepaid expenses and other assets 100,244 101,406
------- ------- TOTAL ASSETS $3,234,956 $3,092,776 ==========
========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities
Mortgages payable and capital lease obligations $607,291 $452,810
Notes payable 383,828 336,391 Senior notes and debentures 905,114
956,584 Accounts payable and other liabilities 223,994 200,037
------- ------- Total liabilities 2,120,227 1,945,822 Shareholders'
equity Preferred stock 9,997 9,997 Common shares and other
shareholders' equity 1,072,919 1,104,605 --------- --------- Total
shareholders' equity of the Trust 1,082,916 1,114,602
Noncontrolling interest 31,813 32,352 ------ ------ Total
shareholders' equity 1,114,729 1,146,954 --------- --------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $3,234,956 $3,092,776
========== ========== Federal Realty Investment Trust Summarized
Income Statements June 30, 2009 Three months Six months ended ended
June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- (in
thousands, except per share data) (unaudited) Revenue Rental income
$126,090 $122,970 $253,296 $244,710 Other property income 2,941
4,624 5,544 8,010 Mortgage interest income 1,307 1,118 2,574 2,234
----- ----- ----- ----- Total revenue 130,338 128,712 261,414
254,954 ------- ------- ------- ------- Expenses Rental expenses
25,080 26,183 53,777 53,446 Real estate taxes 14,821 14,112 28,653
26,440 General and administrative 5,276 7,118 10,421 14,060
Litigation provision 125 - 20,757 - Depreciation and amortization
29,633 27,784 58,225 53,174 ------ ------ ------ ------ Total
operating expenses 74,935 75,197 171,833 147,120 ------ ------
------- ------- Operating income 55,403 53,515 89,581 107,834 Other
interest income 260 208 350 547 Interest expense (25,830) (24,476)
(49,413) (48,829) Early extinguishment of senior notes (982) -
(968) - Income from real estate partnership 399 442 601 773 --- ---
--- --- Income from continuing operations 29,250 29,689 40,151
60,325 Discontinued operations Income from discontinued operations
161 694 218 1,376 Gain on sale of real estate from discontinued
operations 383 - 1,298 - --- - ----- - Results from discontinued
operations 544 694 1,516 1,376 --- --- ----- ----- Net income
29,794 30,383 41,667 61,701 Net income attributable to
noncontrolling interests (1,377) (1,409) (2,766) (2,741) ------
------ ------ ------ Net income attributable to the Trust 28,417
28,974 38,901 58,960 Dividends on preferred stock (135) (135) (271)
(271) ---- ---- ---- ---- Net income available for common
shareholders $28,282 $28,839 $38,630 $58,689 ======= =======
======= ======= EARNINGS PER COMMON SHARE, BASIC Continuing
operations $0.47 $0.48 $0.62 $0.98 Discontinued operations 0.01
0.01 0.03 0.02 $0.48 $0.49 $0.65 $1.00 ===== ===== ===== =====
Weighted average number of common shares, basic 58,917 58,636
58,882 58,570 ====== ====== ====== ====== EARNINGS PER COMMON
SHARE, DILUTED Continuing operations $0.47 $0.48 $0.62 $0.97
Discontinued operations 0.01 0.01 0.03 0.02 $0.48 $0.49 $0.65 $0.99
===== ===== ===== ===== Weighted average number of common shares,
diluted 59,042 58,906 59,004 58,843 ====== ====== ====== ======
Federal Realty Investment Trust Funds From Operations June 30, 2009
Three months Six months ended ended June 30, June 30,
--------------- ---------------- 2009 2008 2009 2008 ---- ---- ----
---- Funds from Operations (in thousands, except per share data)
available for common shareholders (FFO) (1) ---------------------
Net income attributable to the Trust $28,417 $28,974 $38,901
$58,960 Gain on sale of real estate (383) - (1,298) - Depreciation
and amortization of real estate assets 26,563 25,050 51,999 48,000
Amortization of initial direct costs of leases 2,515 2,283 5,182
4,305 Depreciation of joint venture real estate assets 337 331 691
661 --- --- --- --- Funds from operations 57,449 56,638 95,475
111,926 Dividends on preferred stock (135) (135) (271) (271) Income
attributable to operating partnership units 241 231 484 463 Income
attributable to unvested shares (189) (201) (314) (389) ---- ----
---- ---- FFO (2) 57,366 56,533 95,374 111,729 Litigation
provision, net of allocation to unvested shares (2) 124 - 20,689 -
--- - ------ - FFO excluding litigation provision (2) $57,490
$56,533 $116,063 $111,729 ======= ======= ======== ======== FFO per
diluted share (3) $0.97 $0.95 $1.61 $1.89 Litigation provision per
diluted share (2) - - 0.34 - - - ---- - FFO per diluted share
excluding litigation provision (2) (3) $0.97 $0.95 $1.95 $1.89
===== ===== ===== ===== Weighted average number of common shares,
diluted 59,414 59,284 59,377 59,222 ====== ====== ====== ======
Notes: ------ (1) See Glossary of Terms. (2) For the three and six
months ended June 30, 2009, FFO includes a $0.1 million and a $20.8
million, respectively, charge for litigation regarding a parcel of
land located adjacent to Santana Row as well as other costs related
to the litigation and appeal process. FFO excluding litigation
provision excludes this charge. (3) Effective January 1, 2009, we
adopted FSP EITF No. 03-6-1, "Determining Whether Instruments
Granted in Share-Based Payment Transactions are Participating
Securities", and consequently have calculated FFO per diluted share
under the two-class method, as defined in SFAS No. 128, for all
periods presented. The implementation resulted in a decrease of
$0.01 to FFO per diluted share for the three months ended June 30,
2008. Federal Realty Investment Trust Reconciliation of Net Income
to FFO Guidance June 30, 2009 2009 Guidance ------------- (Dollars
in millions except per share amounts)(1) Funds from Operations
available for common shareholders (FFO) --------------------- Net
income attributable to the Trust $93 $96 Gain on sale of real
estate (1) (1) Depreciation and amortization of real estate &
real estate partnership assets 105 105 Amortization of initial
direct costs of leases 9 9 --- --- Funds from operations 206 209
Dividends on preferred stock (1) (1) Income attributable to
operating partnerships units 1 1 Income attributable to unvested
shares (1) (1) --- --- FFO 206 209 Litigation provision (2) 21 21
--- --- FFO excluding litigation provision $227 $230 ==== ====
Weighted average number of common shares, diluted 59.4 59.4 FFO per
diluted share $3.47 $3.52 Litigation provision (2) 0.35 0.35 ----
---- FFO per diluted share excluding litigation provision $3.82
$3.87 ===== ===== Notes: ------ (1) Individual items may not add up
to total due to rounding. (2) Amount represents a charge for
litigation regarding a parcel of land located adjacent to Santana
Row as well as other costs related to the litigation and appeal
process. http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO
http://photoarchive.ap.org/ DATASOURCE: Federal Realty Investment
Trust CONTACT: Gina Birdsall, Investor Relations, +1-301-998-8265,
, or Janelle Stevenson, Corporate Communications, +1-301-998-8185,
, both of Federal Realty Investment Trust Web Site:
http://www.federalrealty.com/
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