EX-99.1 2 frt-09302012xex991x01.htm EXHIBIT 99.1 FRT-09.30.2012-EX 99.1 - 01


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
September 30, 2012
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Third Quarter 2012 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Summarized Income Statements
 
 
Summarized Balance Sheets
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
Market Data
 
 
Components of Rental Income
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Capital Lease Obligations
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Development and Redevelopment Opportunities
 
 
 
 
5
Future Development Opportunities
 
 
 
 
6
Real Estate Status Report
 
 
 
 
7
Retail Leasing Summary
 
 
 
 
8
Lease Expirations
 
 
 
 
9
Portfolio Leased Statistics
 
 
 
 
10
Summary of Top 25 Tenants
 
 
 
 
11
Reconciliation of Net Income to FFO Guidance
 
 
 
 
12
30% Owned Joint Venture Disclosure
 
 
 
Real Estate Status & Debt Summary Report
 
 
 
 
13
Glossary of Terms
 
 
 
 
 
 
 
 
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 16, 2012, 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 16, 2012.



2


FOR IMMEDIATE RELEASE

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

            
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES THIRD QUARTER 2012 OPERATING RESULTS

ROCKVILLE, Md. (November 1, 2012) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2012.

Financial Results
In the third quarter 2012, Federal Realty generated funds from operations available for common shareholders (FFO) of $72.1 million, or $1.12 per diluted share. This compares to FFO of $63.9 million, or $1.01 per diluted share, in third quarter 2011.  For the nine months ended September 30, 2012, Federal Realty reported FFO of $205.5 million, or $3.20 per diluted share, compared to $189.5 million, or $3.02 per diluted share for the same nine-month period in 2011.

Net income available for common shareholders was $38.5 million and earnings per diluted share was $0.60 for the quarter ended September 30, 2012 versus $46.9 million and $0.74, respectively, for third quarter 2011.  Year-to-date, Federal Realty reported net income available for common shareholders of $113.8 million and earnings per diluted share of $1.77.  This compares to net income available for common shareholders of $112.6 million and earnings per diluted share of $1.80 for the nine months ended September 30, 2011.

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 third quarter 2012, same-center property operating income increased 10.3% (4.0% excluding the lease termination fee from Safeway described below) over third quarter 2011.  When redevelopment and expansion properties are excluded from same-center results, property operating income for third quarter 2012 increased 10.4% (3.5% excluding the lease termination fee from Safeway described below) compared to third quarter 2011. 



3


FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER 2012 OPERATING RESULTS
November 1, 2012
Page 2

The overall portfolio was 95.1% leased as of September 30, 2012, compared to 94.2% on June 30, 2012 and 93.3% on September 30, 2011.  Federal Realty's same-center portfolio was 95.0% leased on September 30, 2012, compared to 94.8% on June 30, 2012 and 94.3% on September 30, 2011.

During the third quarter of 2012, Federal Realty signed 109 leases for 531,573 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 504,082 square feet at an average cash basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 11%. The average contractual rent on this comparable space for the first year of the new leases is $28.43 per square foot, compared to the average contractual rent of $25.63 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 25% for third quarter 2012. As of September 30, 2012, Federal Realty's average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $23.95 per square foot.

Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees declared a regular quarterly cash dividend of $0.73 per share, resulting in an indicated annual rate of $2.92 per share. The regular common dividend will be payable on January 15, 2013, to common shareholders of record as of January 2, 2013.

Guidance
Federal Realty updated its guidance for 2012 FFO per diluted share to a range of $4.29 to $4.31 and 2012 earnings per diluted share guidance of $2.35 to $2.37. In addition, Federal Realty provided initial 2013 FFO per diluted share guidance of $4.50 to $4.56 and 2013 earnings per diluted share guidance of $2.39 to $2.45. 

“We delivered a record quarter driven by strong leasing, improving occupancy and increasing rents, all of which were further augmented by larger lease termination fees,” commented Don Wood, president and chief executive officer of Federal Realty.  “Looking forward, we expect to see continued strong performance in our core portfolio, complemented by our active development/redevelopment pipeline and potential acquisitions.”

Summary of Other Quarterly Activities and Recent Developments
•
October 2012 - Federal Realty announced that Harold Nafash has joined the Trust as senior director of acquisitions, northeast.  Mr. Nafash will be based out of New Jersey, and will source and underwrite retail acquisitions in the Trust's core markets within the Northeast region, including metropolitan New York, Boston, and Philadelphia.




4


FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER 2012 OPERATING RESULTS
November 1, 2012
Page 3

•
August 2012 - As previously announced, Mr. James M. Taylor succeeded Mr. Andrew Blocher as chief financial officer effective August 15, 2012.  Following a transition, Mr. Blocher left the Trust effective September 30, 2012.  The Company incurred approximately $2.1 million in costs associated with the CFO transition
•
July 2012 - As previously announced, Federal Realty received an approximately $6 million termination fee from Safeway in connection with the termination of its Genuardi's lease at our Ellisburg property.

Conference Call Information
Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its third quarter 2012 earnings conference call, which is scheduled for November 2, 2012, at 11 a.m. Eastern Daylight Time.  To participate, please call (866) 271-0675 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 website, www.federalrealty.com, which will remain available for 30 days following the call.  A telephone recording of the call will also be available through December 2, 2012, by dialing (888) 286-8010 and using the passcode 67340939.

About Federal Realty
In 2012, Federal Realty celebrates 50 years of being a proven leader in the ownership, operation, and redevelopment of high quality retail real estate in the country's best markets.  Federal Realty's portfolio (excluding joint venture properties) contains approximately 19.1 million square feet located primarily in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, 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 95.1% leased to national, regional, and local retailers as of September 30, 2012, with no single tenant accounting for more than approximately 3.1% 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 45 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 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 16, 2012, 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 redevelopments or renovations may cost more, take more time to complete, or fail to perform as expected;
•
risks 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;



5


FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER 2012 OPERATING RESULTS
November 1, 2012
Page 4


•
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 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 16, 2012.




6


Federal Realty Investment Trust
 
 
 
 
 
 
 
Summarized Income Statements
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
Three Months Ended

Nine Months Ended
 
September 30,

September 30,
 
2012

2011

2012

2011
 
(in thousands, except per share data)
 
(unaudited)
Revenue
 
 
 
 
 
 
 
Rental income
$
147,515

 
$
134,014

 
$
429,972

 
$
401,452

Other property income
9,008

 
2,341

 
17,848

 
6,577

Mortgage interest income
1,282

 
1,309

 
3,834

 
3,564

Total revenue
157,805

 
137,664

 
451,654

 
411,593

Expenses
 
 
 
 
 
 
 
Rental expenses
29,679

 
26,595

 
82,695

 
81,130

Real estate taxes
17,320

 
15,047

 
49,914

 
46,001

General and administrative
8,751

 
7,197

 
22,894

 
19,643

Depreciation and amortization
34,932

 
32,068

 
106,702

 
94,355

Total operating expenses
90,682

 
80,907

 
262,205

 
241,129

Operating income
67,123

 
56,757

 
189,449

 
170,464

Other interest income
261

 
136

 
580

 
171

Interest expense
(28,218
)
 
(23,795
)
 
(85,744
)
 
(72,744
)
Early extinguishment of debt
—

 
—

 
—

 
296

Income from real estate partnerships
490

 
434

 
1,229

 
1,201

Income from continuing operations
39,656

 
33,532

 
105,514

 
99,388

Discontinued operations
 
 
 
 
 
 
 
Discontinued operations - income
—

 
13

 
—

 
943

Discontinued operations - gain on deconsolidation of VIE
—

 
—

 
—

 
2,026

Discontinued operations - gain on sale of real estate
—

 
14,757

 
—

 
14,800

Results from discontinued operations
—

 
14,770

 
—

 
17,769

Income before gain on sale of real estate
39,656

 
48,302

 
105,514

 
117,157

Gain on sale of real estate in real estate partnership
—

 
—

 
11,860

 
—

Net income
39,656

 
48,302

 
117,374

 
117,157

   Net income attributable to noncontrolling interests
(1,012
)
 
(1,249
)
 
(3,141
)
 
(4,161
)
Net income attributable to the Trust
38,644

 
47,053

 
114,233

 
112,996

Dividends on preferred shares
(136
)
 
(136
)
 
(406
)
 
(406
)
Net income available for common shareholders
$
38,508

 
$
46,917

 
$
113,827

 
$
112,590

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Continuing operations
$
0.60

 
$
0.51

 
$
1.59

 
$
1.52

Discontinued operations
—

 
0.23

 
—

 
0.28

Gain on sale of real estate
—

 
—

 
0.19

 
—

 
$
0.60

 
$
0.74

 
$
1.78

 
$
1.80

 
 
 
 
 
 
 
 
Weighted average number of common shares, basic
64,014

 
62,818

 
63,711

 
62,172

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Continuing operations
$
0.60

 
$
0.51

 
$
1.58

 
$
1.52

Discontinued operations
—

 
0.23

 
—

 
0.28

Gain on sale of real estate
—

 
—

 
0.19

 
—

 
$
0.60

 
$
0.74

 
$
1.77

 
$
1.80

 
 
 
 
 
 
 
 
Weighted average number of common shares, diluted
64,202

 
62,990

 
63,891

 
62,341



7





Federal Realty Investment Trust
Summarized Balance Sheets
September 30, 2012
 
September 30,
 
December 31,
 
2012
 
2011
 
(in thousands)
 
(unaudited)
 
 
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $263,664 and $263,570 of consolidated variable interest entities, respectively)
$
4,276,146

 
$
4,232,608

Construction-in-progress
264,982

 
193,836

 
4,541,128

 
4,426,444

Less accumulated depreciation and amortization (including $10,253 and $4,991 of consolidated variable interest entities, respectively)
(1,195,336
)
 
(1,127,588
)
Net real estate
3,345,792

 
3,298,856

Cash and cash equivalents
147,680

 
67,806

Accounts and notes receivable, net
82,152

 
75,921

Mortgage notes receivable, net
55,661

 
55,967

Investment in real estate partnership
33,871

 
34,352

Prepaid expenses and other assets
139,183

 
133,308

TOTAL ASSETS
$
3,804,339

 
$
3,666,210

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Liabilities
 
 
 
Mortgages and capital lease obligations (including $205,907 and $207,683 of consolidated variable interest entities, respectively)
$
802,341

 
$
810,616

Notes payable
299,618

 
295,159

Senior notes and debentures
1,076,456

 
1,004,635

Accounts payable and other liabilities
232,151

 
229,871

Total liabilities
2,410,566

 
2,340,281

Redeemable noncontrolling interests
81,851

 
85,325

Shareholders' equity
 
 
 
    Preferred shares
9,997

 
9,997

    Common shares and other shareholders' equity
1,277,700

 
1,206,095

Total shareholders' equity of the Trust
1,287,697

 
1,216,092

    Noncontrolling interests
24,225

 
24,512

Total shareholders' equity
1,311,922

 
1,240,604

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
3,804,339

 
$
3,666,210




8


Federal Realty Investment Trust
 
 
 
 
 
 
 
 
Funds From Operations / Summary of Capital Expenditures
 
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
 
 
 
 
 
 
 
 
Net income
 
$
39,656

 
$
48,302

 
$
117,374

 
$
117,157

Net income attributable to noncontrolling interests
 
(1,012
)
 
(1,249
)
 
(3,141
)
 
(4,161
)
Gain on sale of real estate
 
—

 
(14,757
)
 
—

 
(14,800
)
Gain on sale of real estate in real estate partnership
 
—

 
—

 
(11,860
)
 
—

Gain on deconsolidation of VIE
 
—

 
—

 
—

 
(2,026
)
Depreciation and amortization of real estate assets
 
30,556

 
28,671

 
94,328

 
84,723

Amortization of initial direct costs of leases
 
2,724

 
2,684

 
8,330

 
7,737

Depreciation of joint venture real estate assets
 
377

 
446

 
1,133

 
1,304

Funds from operations
 
72,301

 
64,097

 
206,164

 
189,934

Dividends on preferred shares
 
(136
)
 
(136
)
 
(406
)
 
(406
)
Income attributable to operating partnership units
 
236

 
249

 
707

 
733

Income attributable to unvested shares
 
(340
)
 
(285
)
 
(970
)
 
(793
)
FFO
 
$
72,061

 
$
63,925

 
$
205,495

 
$
189,468

FFO per diluted share
 
$
1.12

 
$
1.01

 
$
3.20

 
$
3.02

Weighted average number of common shares, diluted
 
64,526

 
63,350

 
64,227

 
62,702

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
48,757

 
$
27,657

 
$
96,218

 
$
62,313

Tenant improvements and incentives
 
8,716

 
4,228

 
23,527

 
18,346

Total non-maintenance capital expenditures
 
57,473

 
31,885

 
119,745

 
80,659

Maintenance capital expenditures
 
4,039

 
6,182

 
10,766

 
12,750

Total capital expenditures
 
$
61,512

 
$
38,067

 
$
130,511

 
$
93,409

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
47,182

 
$
43,809

 
$
135,500

 
$
127,488

 
 
 
 
 
 
 
 
 
Dividend payout ratio as a percentage of FFO
 
65
%
 
69
%
 
66
%
 
67
%

Notes:
1)    See Glossary of Terms.

9


Federal Realty Investment Trust
Market Data
September 30, 2012
 
 
 
September 30,
 
 
 
2012
 
2011
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding (1)
 
64,621

 
63,494

 
Market price per common share
 
$
105.30

 
$
82.41

 
Common equity market capitalization
 
$
6,804,591

 
$
5,232,541

 
 
 
 
 
 
 
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
 
6,814,591

 
5,242,541

 
 
 
 
 
 
 
Total debt (3)
 
2,178,415

 
1,730,875

 
 
 
 
 
 
 
Total market capitalization
 
$
8,993,006

 
$
6,973,416

 
 
 
 
 
 
 
Total debt to market capitalization at then current market price
 
24
%
 
25
%
 
 
 
 
 
 
 
Total debt to market capitalization at constant common share price of $82.41
 
29
%
 
25
%
 
 
 
 
 
 
 
Fixed rate debt ratio:
 
 
 
 
 
Fixed rate debt and capital lease obligations (4)
 
100
%
 
90
%
 
Variable rate debt
 
<1%

 
10
%
 
 
 
100
%
 
100
%
Notes:
1)
Amounts do not include 324,140 and 360,314 Operating Partnership Units outstanding at September 30, 2012 and 2011, 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 $17.2 million at September 30, 2012 and 2011, which is the Trust's 30% share of the total mortgages payable of $57.2 million and $57.4 million at September 30, 2012 and 2011, 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
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
 
(in thousands)
Minimum rents
 
 
 
 
 
 
 
Retail and commercial (1)
$
106,344

 
$
98,654

 
$
313,934

 
$
293,622

Residential (2)
7,116

 
5,746

 
20,467

 
16,958

Cost reimbursements
29,171

 
25,714

 
82,603

 
80,083

Percentage rent
1,667

 
1,673

 
5,167

 
4,598

Other
3,217

 
2,227

 
7,801

 
6,191

Total rental income
$
147,515

 
$
134,014

 
$
429,972

 
$
401,452


Notes:
1)
Minimum rents include $1.8 million and $1.6 million for the three months ended September 30, 2012 and 2011, and $3.9 million for the nine months ended September 30, 2012 and 2011 to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.3 million for the three months ended September 30, 2012 and 2011, and $0.8 million and $1.0 million for the nine months ended September 30, 2012 and 2011, respectively, to recognize income from the amortization of in-place leases.
2)
Residential minimum rents consist of the rental amounts for residential units at Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row and Bethesda Row.




11


Federal Realty Investment Trust
Summary of Outstanding Debt and Capital Lease Obligations
September 30, 2012
 
 
As of September 30, 2012
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (9)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Bethesda Row
1/1/2013
 
5.37%
 
$
19,992

 
 
 
 
 
 
Bethesda Row
2/1/2013
 
5.05%
 
3,900

 
 
 
 
 
 
White Marsh Plaza (2)
4/1/2013
 
6.04%
 
9,050

 
 
 
 
 
 
Crow Canyon
8/11/2013
 
5.40%
 
19,605

 
 
 
 
 
 
Idylwood Plaza
6/5/2014
 
7.50%
 
16,062

 
 
 
 
 
 
Leesburg Plaza
6/5/2014
 
7.50%
 
27,947

 
 
 
 
 
 
Loehmann's Plaza
6/5/2014
 
7.50%
 
36,139

 
 
 
 
 
 
Pentagon Row
6/5/2014
 
7.50%
 
51,879

 
 
 
 
 
 
Melville Mall (3)
9/1/2014
 
5.25%
 
21,737

 
 
 
 
 
 
THE AVENUE at White Marsh
1/1/2015
 
5.46%
 
55,659

 
 
 
 
 
 
Barracks Road
11/1/2015
 
7.95%
 
38,309

 
 
 
 
 
 
Hauppauge
11/1/2015
 
7.95%
 
14,441

 
 
 
 
 
 
Lawrence Park
11/1/2015
 
7.95%
 
27,153

 
 
 
 
 
 
Wildwood
11/1/2015
 
7.95%
 
23,867

 
 
 
 
 
 
Wynnewood
11/1/2015
 
7.95%
 
27,672

 
 
 
 
 
 
Brick Plaza
11/1/2015
 
7.42%
 
28,219

 
 
 
 
 
 
Plaza El Segundo
8/5/2017
 
6.33%
 
175,000

 
 
 
 
 
 
Rollingwood Apartments
5/1/2019
 
5.54%
 
22,980

 
 
 
 
 
 
Shoppers' World
1/31/2021
 
5.91%
 
5,327

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
79,099

 
 
 
 
 
 
Mount Vernon (4)
4/15/2028
 
5.66%
 
10,253

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
7,498

 
 
 
 
 
 
Subtotal
 
 
 
 
721,788

 
 
 
 
 
 
Net unamortized premium
 
 
 
 
8,855

 
 
 
 
 
 
Total mortgages payable
 
 
 
 
730,643

 
 
 
6.23%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
Various (5)
Various through 2027
 
5.41%
 
15,218

 
 
 
 
 
 
Term loan (6)
11/21/2018
 
LIBOR + 1.45%
 
275,000

 
 
 
 
 
 
Unsecured variable rate
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility (7)
7/6/2015
 
LIBOR + 1.15%
 
—

 
 
 
 
 
 
Escondido (municipal bonds) (8)
10/1/2016
 
0.19%
 
9,400

 
 
 
 
 
 
Total notes payable
 
 
 
 
299,618

 
 
 
3.44%
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
5.40% notes
12/1/2013
 
5.40%
 
135,000

 
 
 
 
 
 
5.95% notes
8/15/2014
 
5.95%
 
150,000

 
 
 
 
 
 
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

 
 
 
 
 
 
7.48% debentures
8/15/2026
 
7.48%
 
29,200

 
 
 
 
 
 
6.82% medium term notes
8/1/2027
 
6.82%
 
40,000

 
 
 
 
 
 
Subtotal
 
 
 
 
1,079,200

 
 
 
 
 
 
Net unamortized discount
 
 
 
(2,744
)
 
 
 
 
 
 
Total senior notes and debentures
 
 
 
1,076,456

 
 
 
5.43%
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
71,698

 
 
 
8.05%
 
Total debt and capital lease obligations
 
 
 
 
$
2,178,415

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

12


Total fixed rate debt and capital lease obligations
 
 
 
$
2,169,015

 
100
%
 
5.52%
 
Total variable rate debt
 
 
 
9,400

 
<1%

 
1.80%
(10
)
Total debt and capital lease obligations
 
 
 
$
2,178,415

 
100
%
 
5.51%
(10
)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
2011
 
2012
2011
 
Operational Statistics
 
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to combined fixed charges and preferred share dividends (11)
3.31

x
3.96

 x
 
3.28

x
3.59

 x
 
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (11)
3.31

x
3.40

 x
 
3.16

x
3.38

 x

Notes:
1)
Mortgages payable do not include our 30% share ($17.2 million) of the $57.2 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.
2)
The interest rate of 6.04% represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents an interest only loan of $4.4 million at a stated rate of 6.18% and the remaining balance at a stated rate of 5.96%.
3)
We acquired control of Melville Mall through a 20-year master lease and secondary financing. Because we control the activities that most significantly impact this property and retain substantially all of the economic benefit and risk associated with it, this property is consolidated and the mortgage loan is reflected on the balance sheet, though it is not our legal obligation.
4)
We repaid the loan at par on October 22, 2012.
5)
The interest rate of 5.41% represents the weighted average interest rate for ten unsecured fixed rate notes payable. These notes mature from November 1, 2012 to June 27, 2027.
6)
We entered into two interest rate swap agreements to fix the variable rate portion of our $275.0 million term loan at 1.72% from December 1, 2011 through November 1, 2018. The swap agreements effectively fix the rate on the term loan at 3.17% and thus, the loan is included in fixed rate debt.
7)
The maximum amount drawn under our revolving credit facility during the three and nine months ended September 30, 2012 was $186.0 million, and the weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.42%.
8)
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.
9)
The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable, except as described in Note 10.
10)
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 outstanding balance on September 30, 2012. In addition, the weighted average effective interest rate is calculated using the fixed rate on our term loan of 3.17% as the result of the interest rate swap agreements discussed in Note 6. The term loan is included in fixed rate debt.
11)
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. Fixed charges for the nine months ended September 30, 2011 include $0.3 million of income from early extinguishment of debt due to the write-off of the unamortized debt premium net of a 3% prepayment premium and unamortized debt fees related to the payoff of our mortgage loan on Tower Shops prior to its contractual prepayment date. Adjusted EBITDA is reconciled to net income in the Glossary of Terms.



13


Federal Realty Investment Trust
Summary of Debt Maturities
September 30, 2012
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (4)
 
 
(in thousands)
 
 
 
 
 
 
 
2012
$
2,906

 
$
20,218

(1)
$
23,124

 
1.1
%
 
1.1
%
 
5.4
%
 
2013
11,780

 
186,884

 
198,664

 
9.1
%
 
10.2
%
 
5.5
%
 
2014
10,263

 
297,864

 
308,127

 
14.2
%
 
24.4
%
 
6.9
%
 
2015
6,864

 
198,391

(2)
205,255

 
9.4
%
 
33.8
%
 
7.3
%
(5)
2016
2,872

 
134,400

 
137,272

 
6.3
%
 
40.1
%
 
5.5
%
 
2017
3,044

 
375,000

 
378,044

 
17.4
%
 
57.5
%
 
5.7
%
 
2018
3,215

 
275,000

 
278,215

 
12.8
%
 
70.3
%
 
3.3
%
 
2019
3,050

 
20,160

 
23,210

 
1.1
%
 
71.4
%
 
5.7
%
 
2020
3,041

 
150,000

 
153,041

 
7.0
%
 
78.4
%
 
6.0
%
 
2021
2,950

 
3,625

 
6,575

 
0.3
%
 
78.7
%
 
6.1
%
 
Thereafter
22,948

 
437,829

 
460,777

 
21.3
%
 
100.0
%
 
4.8
%
 
Total
$
72,933

 
$
2,099,371

 
$
2,172,304

(3)
100.0
%
 
 
 
 
 
Notes:
1)
Includes the repayment of the outstanding mortgage payable balance on Mount Vernon. The lender had the option to call the loan on April 15, 2013 or any time thereafter, however, we could prepay the loan at any time after October 14, 2012 at par. We repaid the loan on October 22, 2012.
2)
Our $400.0 million unsecured revolving credit facility matures on July 6, 2015, subject to a one-year extension at our option. As of September 30, 2012, there was $0 drawn under this credit facility.
3)
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 September 30, 2012.
4)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
5)
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 Development and Redevelopment Opportunities
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following development and redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust (1) ($ millions)
 
Property
Location
Opportunity
Redevelopment/Development
Projected ROI (2)
Projected Cost (1)
Cost to Date
Anticipated Stabilization (3)
Active projects which are expected to stabilize in 2012 and beyond
 
 
 
 
 
Westgate Mall
San Jose, CA
Façade and interior mall renovation, addition of food court and pad site
R
9
%

$20


$2

2014/2015
Chelsea Commons
Chelsea, MA
Ground up development of a 56 unit apartment building with above grade parking
D
8
%

$12


$0

2013
Shops at Willow Lawn
Richmond, VA
Demo interior mall, relocate mall tenants, construct new exterior GLA, and gas station
R
10
%

$10


$8

2012
Bala Cynwyd
Bala Cynwyd, PA
Construction of two retail pad buildings
D
12
%

$6


$6

2012
Shoppers' World
Charlottesville, VA
Renovate canopy and reconfigure anchor spaces to accommodate new tenants
R
10
%

$6


$2

2013
Fresh Meadows
Queens, NY
Conversion of 2nd floor office space for new sporting goods retailer.
R
9
%

$4


$4

2012
Barracks Road
Charlottesville, VA
11,800 sf. multi-tenant pad building
D
12
%

$4


$0

2014
 
 
 
 
 
 
 
 
Mixed Use Projects
 
 
 
 
 
Pike & Rose (Mid-Pike) (5)
Rockville, MD
Ground up mixed use development on site of existing Mid-Pike Shopping Center. Phase I of development involves demolition of roughly 25% of existing GLA, and construction of 493 residential units, 151,000 square feet of retail, and 79,000 square feet of office space.
D
8% - 9%

 $245 - $255


$18

2015/2016
Assembly Row - Phase I (5)
Somerville, MA
Ground up mixed use development. Initial phase consists of 575 residential units (by AvalonBay) and 323,000 square feet of retail space (including restaurant pad site). A new Orange Line T-Stop will also be constructed by Massachusetts Bay Transit Authority, as part of Phase I.
D
5% - 7%

 $145 - $160


$33

2015
Santana Row - Lot 8B
San Jose, CA
Ground up development of a 5-story rental apartment building, which will include 212 residential units and associated parking.
D
7% - 8%

 $70 - $75


$13

2014
Santana Row - Lot 6B
San Jose, CA
108 unit residential building
D
9
%

$35


$35

2012
Total: Mixed Use Projects Anticipated to Stabilize in 2012 and beyond (4)
 
7% - 8%

 $557 - $587


$121

 

Notes:
1)
There is no guaranty 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 development projects reflects the deal specific cash, unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost. Projected ROI for development and 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.
5)
Projected costs include an allocation of infrastructure costs for future phases.

15


Federal Realty Investment Trust
Future Development Opportunities
September 30, 2012
 
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
 
Federal Plaza
Rockville, MD
 
 
 
Brick Plaza
Brick, NJ
 
Flourtown
Flourtown, PA
 
 
 
Congressional Plaza
Rockville, MD
 
Melville Mall
Huntington, NY
 
 
 
Dedham Plaza
Dedham, MA
 
Mercer Mall
Lawrenceville, NJ
 
 
 
Eastgate
Chapel Hill, NC
 
Troy
Parsippany, NJ
 
 
 
Escondido
Escondido, CA
 
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.
 
Fresh Meadows
Queens, NY
 
Plaza El Segundo (Land)
El Segundo, CA
 
 
 
Hollywood Blvd
Hollywood, CA
 
Third Street Promenade
Santa Monica, CA
 
 
 
Mercer Mall
Lawrenceville, NJ
 
Tower Shops
Davie, FL
 
 
 
Montrose Crossing
Rockville, MD
 
Wildwood
Bethesda, MD
 
 
 
Pentagon Row
Arlington, VA
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Village of Shirlington
Arlington, VA
 
 
 
Del Mar Village
Boca Raton, FL
 
 
 
 
 
 
 
 
 
 
 
 
 
Longer Term Mixed-Use Opportunities
 
Assembly Row (1)
Somerville, MA
 
Pike 7
Vienna, VA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Pike & Rose (Mid-Pike) (2)
Rockville, MD
 
 
 
Forest Hills
Forest Hills, NY
 
Santana Row (3)
San Jose, CA
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1
)
Assembly Row
Remaining entitlements after Phase 1 include 2 million square feet of commercial-use buildings, 1,525 residential units, and a 200 room hotel.
(2
)
Pike & Rose (Mid-Pike)
Remaining entitlements after Phase 1 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 200,000 square feet of commercial space for retail and office. Final approval is pending for entitlements for an additional 105,000 square feet of commercial space for retail and office.


16



Federal Realty Investment Trust
Real Estate Status Report
September 30, 2012
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
$
216,903

$
23,892

531,000

96
%
40,000

 
Giant Food
Landmark Theater / Apple Computer / Barnes & Noble
Congressional Plaza
(4)
Washington, DC-MD-VA
1965
73,899


329,000

100
%
25,000

 
Fresh Market
Buy Buy Baby / Container Store / Last Call Studio by Neiman Marcus
Courthouse Center

Washington, DC-MD-VA
1997
4,702


36,000

93
%

 
 
 
Falls Plaza/Falls Plaza-East

Washington, DC-MD-VA
1967-1972
12,634


144,000

100
%
51,000

 
Giant Food
CVS / Staples
Federal Plaza

Washington, DC-MD-VA
1989
64,302



248,000

98
%
14,000

 
Trader Joe's
TJ Maxx / Micro Center / Ross Dress For Less
Friendship Center

Washington, DC-MD-VA
2001
35,443


119,000

100
%

 
 
Maggiano's / Nordstrom Rack
Gaithersburg Square

Washington, DC-MD-VA
1993
25,263


207,000

78
%

 
 
Bed, Bath & Beyond / Ross Dress For Less
Idylwood Plaza

Washington, DC-MD-VA
1994
16,485

16,062

73,000

100
%
30,000

 
Whole Foods
 
Laurel

Washington, DC-MD-VA
1986
51,253


388,000

84
%
61,000

 
Giant Food
L.A. Fitness / Marshalls
Leesburg Plaza

Washington, DC-MD-VA
1998
35,214

27,947

236,000

98
%
55,000

 
Giant Food
Petsmart / Pier 1 Imports / Office Depot
Loehmann's Plaza

Washington, DC-MD-VA
1983
33,032

36,139

258,000

94
%
58,000

 
Giant Food
L.A. Fitness / Loehmann's Dress Shop
Mid-Pike Plaza

Washington, DC-MD-VA
1982/2007
78,919


139,000

100
%

 
 
Toys R Us / L.A. Fitness
Montrose Crossing
(4)
Washington, DC-MD-VA
2011
140,656

79,099

357,000

100
%
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
78,760

10,253

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
6,461


92,000

100
%
24,000

 
Whole Foods
Walgreens
Pan Am

Washington, DC-MD-VA
1993
28,555



227,000

100
%
63,000

 
Safeway
Micro Center / Michaels
Pentagon Row

Washington, DC-MD-VA
1998/2010
89,229

51,879

296,000

99
%
45,000

 
Harris Teeter
L.A. Fitness / Bed, Bath & Beyond / DSW
Pike 7

Washington, DC-MD-VA
1997
35,767


164,000

100
%

 
 
DSW / Staples / TJ Maxx
Quince Orchard

Washington, DC-MD-VA
1993
26,364



248,000

77
%
24,000

 
Magruders
L.A. Fitness / Staples
Rockville Town Square
(3)
Washington, DC-MD-VA
2006-2007
49,775

4,542

181,000

96
%
25,000

 
Dawson's Market
CVS / Gold's Gym
Rollingwood Apartments

Washington, DC-MD-VA
1971
8,929

22,980

N/A

99
%

 
 
 
Sam's Park & Shop

Washington, DC-MD-VA
1995
12,848


49,000

100
%

 
 
Petco
Tower

Washington, DC-MD-VA
1998
21,150



112,000

89
%

 
 
Talbots
Tyson's Station

Washington, DC-MD-VA
1978
4,043



49,000

96
%
11,000

 
Trader Joe's
 
Village at Shirlington
(3)
Washington, DC-MD-VA
1995
57,341

6,393

261,000

95
%
28,000

 
Harris Teeter
AMC Loews / Carlyle Grand Café
Wildwood
 
Washington, DC-MD-VA
1969
18,302

23,867

84,000

96
%
20,000

 
Balducci's
CVS
 

Total Washington Metropolitan Area
1,226,229


5,400,000

94
%

 
 
 
  Philadelphia Metropolitan Area





 
 
 
 
Andorra

Philadelphia, PA-NJ
1988
25,170


267,000

96
%
24,000

 
Acme Markets
Kohl's / Staples / L.A. Fitness
Bala Cynwyd

Philadelphia, PA-NJ
1993
39,283


292,000

98
%
45,000

 
Acme Markets
Lord & Taylor / L.A. Fitness / Michaels
Ellisburg Circle

Philadelphia, PA-NJ
1992
29,618


267,000

74
%

 

Buy Buy Baby / Stein Mart
Flourtown

Philadelphia, PA-NJ
1980
15,974


160,000

97
%
42,000

 
Giant Food
 
Langhorne Square

Philadelphia, PA-NJ
1985
20,388


219,000

93
%
55,000

 
Redner's Warehouse Mkts.
Marshalls
Lawrence Park

Philadelphia, PA-NJ
1980
30,976

27,153

353,000

98
%
53,000

 
Acme Markets
Kaplan Career Institute / TJ Maxx / HomeGoods
Northeast

Philadelphia, PA-NJ
1983
24,053


288,000

97
%

 
 
Burlington Coat Factory / Home Gallery / Marshalls
Town Center of New Britain

Philadelphia, PA-NJ
2006
14,472


124,000

87
%
36,000

 
Giant Food
Rite Aid
Willow Grove

Philadelphia, PA-NJ
1984
28,888


212,000

97
%

 
 
HomeGoods / Marshalls / Barnes & Noble
Wynnewood

Philadelphia, PA-NJ
1996
36,739

27,672

252,000

87
%
98,000

 
Giant Food
Bed, Bath & Beyond / Old Navy


Total Philadelphia Metropolitan Area
265,561


2,434,000

93
%

 
 
 
 
 
 
 
 
 
 
 
 
 

17


Federal Realty Investment Trust
Real Estate Status Report
September 30, 2012
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)
 
 
 
 
 
 
  California
 
 
 
 
 
 
 
 
 
Colorado Blvd

Los Angeles-Long Beach, CA
1996-1998
18,270


69,000

100
%
 
 
 
Pottery Barn / Banana Republic
Crow Canyon

San Ramon, CA
2005-2007
70,152

19,605

242,000

94
%
58,000

 
Lucky
Loehmann's Dress Shop / Rite Aid
Escondido
(4)
San Diego, CA
1996/2010
45,329


297,000

97
%


 
TJ Maxx / Toys R Us / Dick’s Sporting Goods / Ross Dress For Less
Fifth Ave

San Diego, CA
1996
6,056


17,000

100
%


 
Urban Outfitters
Hermosa Ave

Los Angeles-Long Beach, CA
1997
5,545


22,000

100
%


 
 
Hollywood Blvd
(4)
Los Angeles-Long Beach, CA
1999
37,847


140,000

91
%
15,000


Fresh & Easy
DSW / L.A. Fitness
Kings Court
(5)
San Jose, CA
1998
11,680


78,000

94
%
25,000


Lunardi's Super Market
CVS
Old Town Center

San Jose, CA
1997
36,395


96,000

86
%


 
Anthropologie / Banana Republic / Gap
Plaza El Segundo
(4)(6)
Los Angeles-Long Beach, CA
2011
212,056

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
609,249


647,000

97
%


 
Crate & Barrel / Container Store / Best Buy / CineArts Theatre / Hotel Valencia / H&M
Third St Promenade

Los Angeles-Long Beach, CA
1996-2000
79,272


210,000

99
%


 
J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate

San Jose, CA
2004
122,294


639,000

93
%
38,000


Walmart
Target / Burlington Coat Factory / Ross Dress For Less / Michaels / Nordstrom Rack
150 Post Street
 
San Francisco, CA
1997
37,712

 
102,000

97
%
 
 
 
Brooks Brothers / H&M


Total California

1,291,857


2,940,000

96
%


 
 
  New York / New Jersey





 
 
 
 
Brick Plaza

Monmouth-Ocean, NJ
1989
61,617

28,219

414,000

91
%
66,000


A&P
AMC Loews / Barnes & Noble / Sports Authority
Forest Hills

New York, NY
1997
8,411


48,000

100
%


 
Midway Theatre
Fresh Meadows

New York, NY
1997
77,055


407,000

98
%


 
AMC Loews / Kohl's / Modell's
Hauppauge

Nassau-Suffolk, NY
1998
28,046

14,441

133,000

100
%
61,000


Shop Rite
AC Moore
Huntington

Nassau-Suffolk, NY
1988/2007
41,627


279,000

98
%


 
Buy Buy Baby / Bed, Bath & Beyond / Michaels / Nordstrom Rack
Huntington Square

Nassau-Suffolk, NY
2010
10,638


74,000

93
%


 
Barnes & Noble
Melville Mall
(8)
Nassau-Suffolk, NY
2006
68,991

21,737

246,000

100
%
54,000


Waldbaum's
Dick’s Sporting Goods / Kohl's / Marshalls
Mercer Mall
(3)
Trenton, NJ
2003
110,198

55,856

500,000

96
%
75,000


Shop Rite
Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
Troy

Newark, NJ
1980
29,157


207,000

99
%
64,000


Pathmark
L.A. Fitness


Total New York / New Jersey

435,740


2,308,000

97
%


 
 
  New England







 
 
 
 
Assembly Square Marketplace/Assembly Row

Boston-Cambridge-Quincy, MA-NH
2005-2011
242,751


334,000

100
%


 
AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons

Boston-Cambridge-Quincy, MA-NH
2006-2008
30,669

7,498

222,000

99
%
16,000


Sav-A-Lot
Home Depot / Planet Fitness
Dedham Plaza

Boston-Cambridge-Quincy, MA-NH
1993
33,844


243,000

92
%
80,000


Star Market
 
Linden Square

Boston-Cambridge-Quincy, MA-NH
2006
146,426


224,000

94
%
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
15,788


149,000

94
%
50,000


Hannaford
TJ Maxx / HomeGoods
Saugus Plaza

Boston-Cambridge-Quincy, MA-NH
1996
14,641


170,000

96
%
55,000


Super Stop & Shop
Kmart


Total New England

493,487


1,390,000

96
%


 
 
  Baltimore







 
 
 
 
Governor Plaza

Baltimore, MD
1985
26,536


267,000

100
%
16,500


Aldi
L.A. Fitness / Dick’s Sporting Goods
Perring Plaza

Baltimore, MD
1985
28,363


395,000

95
%
58,000


Shoppers Food Warehouse
Home Depot / Burlington Coat Factory / Jo-Ann Stores

18


Federal Realty Investment Trust
Real Estate Status Report
September 30, 2012
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)
 
 
 
 
 
 
THE AVENUE at White Marsh
(5)
Baltimore, MD
2007
96,611

55,659

298,000

99
%


 
AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square

Baltimore, MD
2007
17,326


32,000

100
%


 
 
White Marsh Plaza

Baltimore, MD
2007
25,053

9,050

80,000

100
%
54,000


Giant Food
 
White Marsh Other

Baltimore, MD
2007
36,191


70,000

94
%


 
 


Total Baltimore

230,080


1,142,000

98
%


 
 
  Chicago







 
 
 
 
Crossroads

Chicago, IL
1993
30,903


168,000

91
%


 
Golfsmith / Guitar Center / L.A. Fitness
Finley Square

Chicago, IL
1995
32,489


315,000

99
%


 
Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market

Chicago, IL
1994
12,427


140,000

95
%
63,000


Dominick's
Walgreens
North Lake Commons

Chicago, IL
1994
14,579


129,000

96
%
77,000


Dominick's
 


Total Chicago

90,398


752,000

96
%


 
 
  South Florida







 
 
 
 
Courtyard Shops

Miami-Ft Lauderdale
2008
40,125



130,000

86
%
49,000


Publix
 
Del Mar Village

Miami-Ft Lauderdale
2008
55,600


179,000

88
%
44,000


Winn Dixie
CVS
Tower Shops

Miami-Ft Lauderdale
2011
75,617


369,000

100
%


 
Best Buy / DSW / Old Navy / Ross Dress For Less / TJ Maxx


Total South Florida

171,342


678,000

94
%


 
 
  Other







 
 
 
 
Barracks Road

Charlottesville, VA
1985
55,519

38,309

487,000

99
%
99,000


Harris Teeter / Kroger
Anthropologie / Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels / Ulta
Bristol Plaza

Hartford, CT
1995
28,188


266,000

94
%
74,000


Stop & Shop
TJ Maxx
Eastgate

Raleigh-Durham-Chapel Hill, NC
1986
26,575


153,000

100
%
13,000


Trader Joe's
Stein Mart
Gratiot Plaza

Detroit, MI
1973
19,016


217,000

99
%
69,000


Kroger
Bed, Bath & Beyond / Best Buy / DSW
Greenwich Avenue

New Haven-Bridgeport-Stamford-Waterbury
1995
13,969


36,000

100
%


 
Saks Fifth Avenue
Houston St

San Antonio, TX
1998
65,652


183,000

90
%


 
Hotel Valencia / Walgreens
Lancaster
(7)
Lancaster, PA
1980
12,895

4,907

127,000

97
%
75,000


Giant Food
Michaels
Shoppers' World

Charlottesville, VA
2007
34,626

5,327

169,000

81
%


 
Staples
Shops at Willow Lawn

Richmond-Petersburg, VA
1983
79,994


440,000

95
%
66,000


Kroger
Old Navy / Staples / Ross Dress For Less


Total Other

336,434


2,078,000

95
%


 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total



$
4,541,128

$
793,486

19,122,000

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)
Portion of property subject to capital lease obligation.
(4)
The Trust has a controlling financial interest in this property.
(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)
Includes a 100% owned, 8.1 acre land parcel to be used for future development.
(7)
Property subject to capital lease obligation.
(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.



19



Federal Realty Investment Trust
Retail Leasing Summary (1)
September 30, 2012
 
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.
3rd Quarter 2012
100

 
100
%
 
504,082

 
$
28.43

 
$
25.63

 
$
1,411,774

 
11
 %
 
25
%
 
8.1

 
$
8,591,532

 
$
17.04

2nd Quarter 2012
106

 
100
%
 
355,527

 
$
36.08

 
$
32.64

 
$
1,222,494

 
11
 %
 
21
%
 
6.9

 
$
5,296,003

 
$
14.90

1st Quarter 2012
92

 
100
%
 
461,088

 
$
31.66

 
$
27.15

 
$
2,081,753

 
17
 %
 
24
%
 
7.2

 
$
12,603,460

 
$
27.33

4th Quarter 2011
74

 
100
%
 
231,394

 
$
32.81

 
$
29.80

 
$
697,168

 
10
 %
 
22
%
 
6.7

 
$
1,641,570

 
$
7.09

Total - 12 months
372

 
100
%
 
1,552,091

 
$
31.79

 
$
28.31

 
$
5,413,189

 
12
 %
 
23
%
 
7.3

 
$
28,132,565

 
$
18.13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
3rd Quarter 2012
49

 
49
%
 
271,280

 
$
27.41

 
$
21.91

 
$
1,493,101

 
25
 %
 
36
%
 
10.9

 
$
8,428,716

 
$
31.07

2nd Quarter 2012
43

 
41
%
 
194,503

 
$
33.08

 
$
28.84

 
$
825,333

 
15
 %
 
24
%
 
8.7

 
$
5,076,993

 
$
26.10

1st Quarter 2012
43

 
47
%
 
224,338

 
$
34.23

 
$
26.10

 
$
1,824,154

 
31
 %
 
40
%
 
9.2

 
$
10,880,880

 
$
48.50

4th Quarter 2011
27

 
36
%
 
91,350

 
$
32.04

 
$
28.56

 
$
318,442

 
12
 %
 
26
%
 
8.8

 
$
1,601,990

 
$
17.54

Total - 12 months
162

 
44
%
 
781,471

 
$
31.32

 
$
25.62

 
$
4,461,030

 
22
 %
 
33
%
 
9.5

 
$
25,988,579

 
$
33.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Lease Summary - Comparable (2) (7)
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.
3rd Quarter 2012
51

 
51
%
 
232,802

 
$
29.61

 
$
29.96

 
$
(81,327
)
 
(1
)%
 
15
%
 
5.1

 
$
162,816

 
$
0.70

2nd Quarter 2012
63

 
59
%
 
161,024

 
$
39.69

 
$
37.23

 
$
397,161

 
7
 %
 
18
%
 
5.1

 
$
219,010

 
$
1.36

1st Quarter 2012
49

 
53
%
 
236,750

 
$
29.23

 
$
28.14

 
$
257,599

 
4
 %
 
10
%
 
4.9

 
$
1,722,580

 
$
7.28

4th Quarter 2011
47

 
64
%
 
140,044

 
$
33.31

 
$
30.60

 
$
378,726

 
9
 %
 
20
%
 
5.4

 
$
39,580

 
$
0.28

Total - 12 months
210

 
56
%
 
770,620

 
$
32.27

 
$
31.03

 
$
952,159

 
4
 %
 
15
%
 
5.1

 
$
2,143,986

 
$
2.78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (including deals signed for development projects) (2) (8)
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.
3rd Quarter 2012
 
 
 
 
 
 
 
 
109

 
531,573
 
 
$
28.89

 
8.3

 
$
11,667,533

 
$
21.95

2nd Quarter 2012
 
 
 
 
 
 
 
 
111

 
368,795
 
 
$
36.47

 
7.0

 
$
6,058,163

 
$
16.43

1st Quarter 2012
 
 
 
 
 
 
 
 
99

 
579,118
 
 
$
32.36

 
9.2

 
$
31,040,121

 
$
53.60

4th Quarter 2011
 
 
 
 
 
 
 
 
82

 
254,557
 
 
$
32.88

 
6.9

 
$
2,921,575

 
$
11.48

Total - 12 months
 
 
 
 
 
 
 
 
401

 
1,734,043
 
 
$
32.25

 
8.1

 
$
51,687,392

 
$
29.81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (excluding deals signed for development projects) (2)
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.
3rd Quarter 2012
 
 
 
 
 
 
 
 
106

 
517,194
 
 
$
28.56

 
8.3

 
$
9,127,719

 
$
17.65

2nd Quarter 2012
 
 
 
 
 
 
 
 
110

 
363,375
 
 
$
36.34

 
7.0

 
$
5,516,163

 
$
15.18

1st Quarter 2012
 
 
 
 
 
 
 
 
97

 
472,501
 
 
$
32.01

 
7.3

 
$
13,008,316

 
$
27.53

4th Quarter 2011
 
 
 
 
 
 
 
 
82

 
254,557
 
 
$
32.88

 
6.9

 
$
2,921,575

 
$
11.48

Total - 12 months
 
 
 
 
 
 
 
 
395

 
1,607,627
 
 
$
32.02

 
7.4

 
$
30,573,773

 
$
19.02

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 square footage.
(6) See Glossary of Terms.
(7) Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(8) The economic terms of leases signed for development projects are also included in the overall project return and cost summary shown on the "Summary of Development and Redevelopment Opportunities."


20


Federal Realty Investment Trust
Lease Expirations
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
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)
2012
70,000

1
%
$
19.29

 
292,000

4
%
$
24.06

 
362,000

2
%
$
23.14

2013
458,000

4
%
$
18.01

 
792,000

10
%
$
31.36

 
1,250,000

7
%
$
26.47

2014
1,349,000

13
%
$
15.24

 
889,000

12
%
$
35.10

 
2,238,000

12
%
$
23.13

2015
879,000

9
%
$
14.60

 
980,000

13
%
$
31.98

 
1,859,000

10
%
$
23.76

2016
954,000

9
%
$
16.89

 
1,107,000

15
%
$
33.28

 
2,061,000

12
%
$
25.69

2017
1,483,000

14
%
$
16.10

 
1,075,000

14
%
$
34.60

 
2,558,000

14
%
$
23.88

2018
1,250,000

12
%
$
13.17

 
594,000

8
%
$
38.77

 
1,843,000

10
%
$
21.43

2019
643,000

6
%
$
19.20

 
340,000

4
%
$
31.16

 
984,000

6
%
$
23.31

2020
329,000

3
%
$
21.69

 
350,000

5
%
$
33.70

 
678,000

4
%
$
27.92

2021
544,000

5
%
$
20.35

 
397,000

5
%
$
37.25

 
942,000

5
%
$
27.45

Thereafter
2,552,000

24
%
$
17.19

 
730,000

10
%
$
41.00

 
3,282,000

18
%
$
22.48

Total (3)
10,511,000

100
%
$
16.54

 
7,546,000

100
%
$
34.27

 
18,057,000

100
%
$
23.95

 
 
 
 
 
 
 
 
 
 
 
 
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)
2012
70,000

1
%
$
19.29

 
210,000

3
%
$
22.64

 
280,000

1
%
$
21.80

2013
126,000

1
%
$
16.07

 
474,000

6
%
$
32.45

 
600,000

3
%
$
29.01

2014
166,000

2
%
$
12.16

 
558,000

7
%
$
36.65

 
724,000

4
%
$
31.03

2015
125,000

1
%
$
31.39

 
575,000

8
%
$
31.94

 
700,000

4
%
$
31.84

2016
163,000

2
%
$
15.82

 
545,000

7
%
$
35.30

 
708,000

4
%
$
30.81

2017
200,000

2
%
$
21.23

 
674,000

9
%
$
35.24

 
874,000

5
%
$
32.04

2018
362,000

3
%
$
14.49

 
492,000

7
%
$
38.11

 
854,000

5
%
$
28.09

2019
400,000

4
%
$
17.88

 
332,000

4
%
$
35.03

 
732,000

4
%
$
25.66

2020
143,000

1
%
$
19.41

 
376,000

5
%
$
31.77

 
518,000

3
%
$
28.42

2021
161,000

1
%
$
11.04

 
560,000

8
%
$
34.02

 
722,000

4
%
$
28.85

Thereafter
8,595,000

82
%
$
16.38

 
2,750,000

36
%
$
34.64

 
11,345,000

63
%
$
20.80

Total (3)
10,511,000

100
%
$
16.54

 
7,546,000

100
%
$
34.27

 
18,057,000

100
%
$
23.95

 
 
 
 
 
 
 
 
 
 
 
 
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 September 30, 2012.
(3)
Represents occupied square footage as of September 30, 2012.
(4)
Individual items may not add up to total due to rounding.



21


Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
As of September 30, 2012
 
As of September 30, 2011
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (3) (sf)
19,122,000

18,179,000

95.1
%
 
18,557,000

17,323,000

93.3
%
 
 
 
 
 
 
 
 
Residential Properties (4) (units)
1,027

994

96.8
%
 
903

871

96.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Center Statistics (1)
As of September 30, 2012
 
As of September 30, 2011
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Retail Properties (2) (5) (sf)
16,460,000

15,637,000

95.0
%
 
16,509,000

15,567,000

94.3
%
 
 
 
 
 
 
 
 
Residential Properties (4) (units)
903

873

96.7
%
 
903

871

96.5
%
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
(1) See Glossary of Terms.
(2) Leasable square feet; excludes redevelopment square footage not yet placed in service.
(3)At September 30, 2012 leased percentage was 98.6% for anchor tenants and 90.6% for small shop tenants.
(4) Overall portfolio statistics at September 30, 2012 include Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row and Bethesda Row. Same center and 2011 overall statistics exclude 124 residential units at Santana Row.
(5) Excludes properties purchased, sold or under redevelopment.



22


Federal Realty Investment Trust
Summary of Top 25 Tenants
September 30, 2012
 
 
 
 
 
 
 
 
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.
$
13,454,000

3.12
%
819,000

4.28
%
14

2

 
Bed, Bath & Beyond, Inc.
$
10,342,000

2.40
%
658,000

3.44
%
15

3

 
TJX Companies
$
9,515,000

2.20
%
654,000

3.42
%
19

4

 
L.A. Fitness International LLC
$
8,572,000

1.99
%
463,000

2.42
%
12

5

 
Gap, Inc.
$
7,877,000

1.82
%
252,000

1.32
%
14

6

 
CVS Corporation
$
6,607,000

1.53
%
205,000

1.07
%
18

7

 
Best Buy Stores, L.P.
$
5,405,000

1.25
%
188,000

0.98
%
5

8

 
DSW, Inc
$
5,064,000

1.17
%
174,000

0.91
%
7

9

 
Barnes & Noble, Inc.
$
4,857,000

1.13
%
239,000

1.25
%
9

10

 
Dick's Sporting Good Inc.
$
4,328,000

1.00
%
206,000

1.08
%
5

11

 
Michaels Stores, Inc.
$
4,078,000

0.94
%
242,000

1.27
%
10

12

 
Staples, Inc.
$
3,627,000

0.84
%
187,000

0.98
%
9

13

 
Ross Stores, Inc.
$
3,591,000

0.83
%
208,000

1.09
%
7

14

 
OPNET Technologies, Inc.
$
3,456,000

0.80
%
83,000

0.43
%
2

15

 
Whole Foods Market, Inc.
$
3,425,000

0.79
%
119,000

0.62
%
3

16

 
Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food)
$
3,379,000

0.78
%
338,000

1.77
%
7

17

 
Container Store, Inc.
$
3,336,000

0.77
%
74,000

0.39
%
3

18

 
PETsMART, Inc.
$
3,176,000

0.74
%
150,000

0.78
%
6

19

 
Wells Fargo Bank, N.A.
$
3,132,000

0.73
%
51,000

0.27
%
14

20

 
Kohl's Corporation
$
3,110,000

0.72
%
322,000

1.68
%
3

21

 
Bank of America, N.A.
$
3,038,000

0.70
%
64,000

0.33
%
19

22

 
Dress Barn, Inc.
$
3,035,000

0.70
%
127,000

0.66
%
19

23

 
A.C. Moore, Inc.
$
2,993,000

0.69
%
161,000

0.84
%
7

24

 
Home Depot, Inc.
$
2,832,000

0.66
%
335,000

1.75
%
4

25

 
Wakefern Food Corporation
$
2,783,000

0.64
%
136,000

0.71
%
2

 
 
Totals - Top 25 Tenants
$
125,012,000

28.94
%
6,455,000

33.74
%
233

 
 
 
 
 
 
 
 
 
 
Total: (1)
$
431,627,000

(2)
19,122,000

(3)
2,484

 
 
 
 
 
 
 
 
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 September 30, 2012.
(3
)
 
Excludes redevelopment square footage not yet placed in service.
(4
)
 
Individual items may not add up to total due to rounding.



23


Federal Realty Investment Trust
 
 
 
Reconciliation of Net Income to FFO Guidance
 
 
 
September 30, 2012
 
 
 
 
 
 
 
 
2012 Guidance
 
(Dollars in millions except
 
 per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
 
 
 
Net income
$
156

 
$
158

Net income attributable to noncontrolling interests
(4
)
 
(4
)
Gain on sale of real estate in real estate partnership
(12
)
 
(12
)
Depreciation and amortization of real estate & joint venture real estate assets
126

 
126

Amortization of initial direct costs of leases
11

 
11

Funds from operations
277

 
278

Dividends on preferred shares
(1
)
 
(1
)
Income attributable to operating partnership units
1

 
1

Income attributable to unvested shares
(1
)
 
(1
)
FFO
$
276

 
$
278

 
 
 
 
Weighted average number of common shares, diluted
64.4

 
64.4

 
 
 
 
FFO per diluted share
$
4.29

 
$
4.31


 
2013 Guidance
 
(Dollars in millions except
 
 per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
 
 
 
Net income
$
163

 
$
167

Net income attributable to noncontrolling interests
(5
)
 
(5
)
Gain on sale of real estate in real estate partnership
—

 
—

Depreciation and amortization of real estate & joint venture real estate assets
128

 
128

Amortization of initial direct costs of leases
11

 
11

Funds from operations
297

 
301

Dividends on preferred shares
(1
)
 
(1
)
Income attributable to operating partnership units
1

 
1

Income attributable to unvested shares
(1
)
 
(1
)
FFO
$
297

 
$
300

 
 
 
 
Weighted average number of common shares, diluted
65.9

 
65.9

 
 
 
 
FFO per diluted share
$
4.50

 
$
4.56

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


24



Federal Realty Investment Trust
Real Estate Status & Debt Summary Report - 30% Owned Joint Venture
September 30, 2012
Property Name
 
MSA Description
 Year Acquired
Real Estate at Cost
Mortgage and/or Capital Lease Obligation
Stated Interest Rate
 
Maturity Date
GLA
% Leased
 Grocery Anchor GLA (1)
 
Grocery Anchor (1)
Other Principal Tenants
 
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
  Washington Metropolitan Area
 
 
 
 
 
 
 
 
 
 
 
 
Barcroft Plaza
 
Washington, DC-MD-VA
2006-2007
$
34,444

$
20,785

5.99
%
(3)(4)
7/1/2016
100,000

89
%
46,000

 
Harris Teeter
Bank of America
Free State Shopping Center
 
Washington, DC-MD-VA
2007
66,571


 
 
 
279,000

86
%
73,000

 
Giant Food
TJ Maxx / Ross Dress For Less / Office Depot
Plaza del Mercado
 
Washington, DC-MD-VA
2004
21,633

12,327

5.77
%
(2)
7/5/2014
96,000

65
%

 

CVS
 
 
Total Washington Metropolitan Area

122,648


 
 
 
475,000

82
%

 


  New York / New Jersey
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Greenlawn Plaza
 
Nassau-Suffolk, NY
2006
20,587

13,600

5.90
%
(3)
7/1/2016
106,000

99
%
46,000

 
Waldbaum's
Tuesday Morning

 
Total New York / New Jersey

20,587


 
 
 
106,000

99
%

 


 New England
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
19,122

10,500

5.12
%
(3)
12/1/2014
123,000

91
%
64,000

 
Stop & Shop
Sears
Campus Plaza
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
22,649


 
 
 
117,000

97
%
46,000

 
Roche Bros.
Burlington Coat Factory
Pleasant Shops
 
Boston-Worcester-Lawrence-Lowell-Brockton, MA
2004
23,576


 
 
 
130,000

93
%
38,000

 
Foodmaster
Marshalls

 
Total New England

65,347


 
 
 
370,000

93
%

 
 
 
Grand Totals
 
 
 
$
208,582

$
57,212

 
 
 
951,000

89
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more.
 
 
 
(2) Effective July 5, 2007, principal and interest payments are due based on a 30-year amortization schedule.
 
 
 
(3) Interest only until maturity.
 
 
 
(4) The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents the 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%.
 
 
 


25


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 nine months ended September 30, 2012 and 2011 is as follows:

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
 
(in thousands)
Net income
$
39,656

 
$
48,302

 
$
117,374

 
$
117,157

Depreciation and amortization
34,932

 
32,083

 
106,702

 
94,715

Interest expense
28,218

 
23,795

 
85,744

 
72,744

Early extinguishment of debt
—

 
—

 
—

 
(296
)
Other interest income
(261
)
 
(136
)
 
(580
)
 
(171
)
EBITDA
102,545

 
104,044

 
309,240

 
284,149

Gain on deconsolidation of VIE
—

 
—

 
—

 
(2,026
)
Gain on sale of real estate
—

 
(14,757
)
 
—

 
(14,800
)
Gain on sale of real estate in real estate partnership
—

 
—

 
(11,860
)
 
—

Adjusted EBITDA
$
102,545

 
$
89,287

 
$
297,380

 
$
267,323



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 but 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.




26