EX-99.1 2 frt-09302019xex991.htm EXHIBIT 99.1 Exhibit


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
September 30, 2019
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Third Quarter 2019 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Consolidated Income Statements
 
 
Consolidated Balance Sheets
 
 
Funds From Operations / Other Supplemental Information
 
 
Market Data
 
 
Components of Rental Income
 
 
Comparable Property Information
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Finance Lease Liabilities
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Redevelopment Opportunities
 
 
 
 
5
Assembly Row, Pike & Rose, and Santana Row
 
 
 
6
Future Redevelopment Opportunities
 
 
 
 
7
2019 Significant Property Acquisitions, Dispositions, and Other Transactions
 
 
 
 
8
Real Estate Status Report
 
 
 
 
9
Retail Leasing Summary
 
 
 
 
10
Lease Expirations
 
 
 
 
11
Portfolio Leased Statistics
 
 
 
 
12
Summary of Top 25 Tenants
 
 
 
 
13
Reconciliation of FFO Guidance
 
 
 
 
14
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 13, 2019, 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 13, 2019.



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NEWS RELEASE
www.federalrealty.com
 
 
FOR IMMEDIATE RELEASE
 
 
 
Investor Inquiries:
Media Inquiries:
Leah Andress Brady
Brenda Pomar
Investor Relations Senior Manager
Corporate Communications Manager
301.998.8265
301.998.8316
lbrady@federalrealty.com
bpomar@federalrealty.com


Federal Realty Investment Trust Announces Third Quarter 2019 Operating Results

ROCKVILLE, Md. (October 30, 2019) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2019. For the three months ended September 30, 2019 and 2018, net income available for common shareholders was $0.84 per diluted share and $0.82 per diluted share, respectively.
Highlights of the quarter include:
Generated funds from operations available for common shareholders (FFO) per diluted share of $1.43 for the quarter ($1.59 excluding the charge related to the buyout of the Kmart lease at Assembly) compared to $1.58 in the third quarter 2018.
Generated comparable property operating income (POI) growth of 2.1% for the third quarter.
Signed leases for 468,643 sf of comparable space in the third quarter at an average rent of $38.93 psf and achieved cash basis rollover growth on those comparable spaces of 7%.
Opportunistically issued $100 million aggregate principal of Notes due 2029 at an effective yield of 2.744%.

“An overall solid operating quarter for the Company made even better by numerous strategic initiatives that will benefit the future,” said Donald C. Wood, President and Chief Executive Officer. “Opportunities that availed themselves to us in the third quarter like the targeted acquisition of the Kmart parcel at Assembly and important lease recaptures elsewhere enable future development that pave the way for a clear path to further value enhancement.”

Financial Results
Net income available for common shareholders was $63.5 million and earnings per diluted share was $0.84 for third quarter 2019 versus $60.5 million and $0.82, respectively, for third quarter 2018.
In the third quarter 2019, Federal Realty generated FFO of $108.0 million, or $1.43 per diluted share ($1.59 excluding the $11.9 million charge related to the buyout of the Kmart lease at Assembly). This compares to FFO of $117.3 million, or $1.58 per diluted share, in the third quarter 2018.

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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
The overall portfolio was 94.2% leased as of September 30, 2019, and the comparable portfolio was 94.9% leased. In the third quarter 2019, comparable property POI increased 2.1%. Comparable property POI represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. Additionally, the charge related to the buyout of the Kmart lease at Assembly is excluded.
During the third quarter 2019, Federal Realty signed 103 leases for 491,414 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 468,643 square feet at an average rent of $38.93 per square foot compared to the average contractual rent of $36.31 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 7%.

Regular Quarterly Dividends
Federal Realty's Board of Trustees declared a regular quarterly cash dividend of $1.05 per common share, resulting in an indicated annual rate of $4.20 per common share. The regular common dividend will be payable on January 15, 2020, to common shareholders of record as of January 2, 2020.
Federal Realty’s Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on January 15, 2020 to shareholders of record as of January 2, 2020.

Summary of Other Quarterly Activities and Recent Developments
August 12, 2019 - Federal Realty acquired the Kmart lease at Assembly for $14.5 million, unlocking significant value creation potential on a 6 acre parcel of land at its highly successful Assembly Row project.
August 21, 2019 - Federal Realty issued $100 million aggregate principal amount of Notes due 2029 at an effective yield of 2.744%. The notes have the same terms and are of the same series as the notes that Federal Realty issued on June 7, 2019. Federal Realty used the net proceeds from the offering to reduce amounts outstanding under its revolving credit facility and for general corporate purposes.
October 11, 2019 - Federal Realty closed on the sale of Plaza Pacoima for $51.3 million. Plaza Pacoima is a 204,000 square foot Costco and Best Buy anchored power center located in Pacoima, California. The property was part of the Primestor Joint Venture formed in 2017 and was planned for sale as part of that acquisition. Year-to-date, Federal Realty has completed $149 million of dispositions.

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Guidance
Federal Realty revised its 2019 guidance for FFO per diluted share to a range of $6.16 to $6.22 ($6.32 to $6.38 excluding the charge related to the buyout of the Kmart lease at Assembly) and 2019 earnings per diluted share guidance to $3.48 to $3.54.

Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its third quarter 2019 earnings conference call, which is scheduled for Thursday October 31, 2019 at 10:00AM ET. To participate, please call 877.407.9208 five to ten minutes prior to the call start time and use the passcode 13694901 (required). A replay of the webcast will be available on Federal Realty’s website at www.federalrealty.com. A telephonic replay of the conference call will also be available through November 14, 2019 by dialing 844.512.2921; Passcode: 13694901.

About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty’s mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,000 tenants, in 24 million square feet, and over 2,600 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 52 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, 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 13, 2019, 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 renovation projects that we do pursue 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 not perform as planned, 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

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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 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 13, 2019.


6




Federal Realty Investment Trust
 
 
 
 
 
 
 
Consolidated Income Statements
 
 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
Three Months Ended

Nine Months Ended
 
September 30,

September 30,
 
2019

2018

2019
 
2018
 
(in thousands, except per share data)
 
(unaudited)
REVENUE
 
 
 
 
 
 
 
Rental income
$
233,212

 
$
228,960

 
$
694,435

 
$
677,776

Mortgage interest income
735

 
793

 
2,204

 
2,284

Total revenue
233,947

 
229,753

 
696,639

 
680,060

EXPENSES
 
 
 
 
 
 
 
Rental expenses
54,484

 
41,909

 
140,182

 
126,587

Real estate taxes
29,030

 
29,086

 
81,883

 
85,841

General and administrative
11,060

 
7,638

 
32,047

 
23,980

Depreciation and amortization
59,648

 
60,778

 
178,327

 
177,269

Total operating expenses
154,222

 
139,411

 
432,439

 
413,677

 
 
 
 
 
 
 
 
Gain on sale of real estate, net of tax
14,293

 
3,125

 
30,490

 
10,413

 
 
 
 
 
 
 
 
OPERATING INCOME
94,018

 
93,467

 
294,690

 
276,796

 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
Other interest income
389

 
319

 
755

 
657

Interest expense
(27,052
)
 
(28,166
)
 
(82,567
)
 
(82,116
)
Loss from partnerships
(249
)
 
(1,440
)
 
(1,302
)
 
(2,693
)
NET INCOME
67,106

 
64,180

 
211,576

 
192,644

   Net income attributable to noncontrolling interests
(1,641
)
 
(1,622
)
 
(5,065
)
 
(5,244
)
NET INCOME ATTRIBUTABLE TO THE TRUST
65,465

 
62,558

 
206,511

 
187,400

Dividends on preferred shares
(2,010
)
 
(2,010
)
 
(6,031
)
 
(6,031
)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$
63,455

 
$
60,548

 
$
200,480

 
$
181,369

EARNINGS PER COMMON SHARE, BASIC:
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.84

 
$
0.82

 
$
2.68

 
$
2.47

Weighted average number of common shares
74,832

 
73,400

 
74,584

 
73,100

EARNINGS PER COMMON SHARE, DILUTED:
 
 
 
 
 
 
 
Net income available for common shareholders
$
0.84

 
$
0.82

 
$
2.68

 
2.47

Weighted average number of common shares
74,832

 
73,408

 
74,584

 
73,136



7




Federal Realty Investment Trust
Consolidated Balance Sheets
September 30, 2019
 
September 30,
 
December 31,
 
2019
 
2018
 
(in thousands, except share and per share data)
 
(unaudited)
 
 
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $1,536,443 and $1,701,804 of consolidated variable interest entities, respectively)
$
7,302,912

 
$
7,307,622

Construction-in-progress (including $97,922 and $51,313 of consolidated variable interest entities, respectively)
691,989

 
495,274

Assets held for sale
49,835

 
16,576

 
8,044,736

 
7,819,472

Less accumulated depreciation and amortization (including $289,739 and $292,374 of consolidated variable interest entities, respectively)
(2,190,486
)
 
(2,059,143
)
Net real estate
5,854,250

 
5,760,329

Cash and cash equivalents
162,543

 
64,087

Accounts and notes receivable, net
143,855

 
142,237

Mortgage notes receivable, net
30,429

 
30,429

Investment in partnerships
30,017

 
26,859

Operating lease right of use assets
94,271

 

Finance lease right of use assets
52,723

 

Prepaid expenses and other assets
239,477

 
265,703

TOTAL ASSETS
$
6,607,565

 
$
6,289,644

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Mortgages payable, net (including $389,523 and $444,388 of consolidated variable interest entities, respectively)
$
466,600

 
$
474,379

Capital lease obligations

 
71,519

Notes payable, net
3,889

 
279,027

Senior notes and debentures, net
2,806,422

 
2,404,279

Accounts payable and accrued expenses
221,781

 
177,922

Dividends payable
81,477

 
78,207

Security deposits payable
20,354

 
17,875

Operating lease liabilities
74,032

 

Finance lease liabilities
72,065

 

Other liabilities and deferred credits
165,542

 
182,898

Total liabilities
3,912,162

 
3,686,106

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
122,282

 
136,208

Shareholders’ equity
 
 
 
Preferred shares, authorized 15,000,000 shares, $.01 par:
 
 
 
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding
150,000

 
150,000

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding
9,997

 
9,997

Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 75,494,931 and 74,249,633 shares issued and outstanding, respectively
758

 
745

Additional paid-in capital
3,167,460

 
3,004,442

Accumulated dividends in excess of net income
(857,152
)
 
(818,877
)
Accumulated other comprehensive loss
(1,135
)
 
(416
)
Total shareholders’ equity of the Trust
2,469,928

 
2,345,891

Noncontrolling interests
103,193

 
121,439

Total shareholders’ equity
2,573,121

 
2,467,330

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
6,607,565

 
$
6,289,644


8




Federal Realty Investment Trust
 
 
 
 
 
 
 
 
Funds From Operations / Other Supplemental Information
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1) (2)
 
 
 
 
 
 
Net income
 
$
67,106

 
$
64,180

 
$
211,576

 
$
192,644

Net income attributable to noncontrolling interests
 
(1,641
)
 
(1,622
)
 
(5,065
)
 
(5,244
)
Gain on sale of real estate, net
 
(14,293
)
 
(3,125
)
 
(30,490
)
 
(10,413
)
Depreciation and amortization of real estate assets
 
53,441

 
54,132

 
160,253

 
157,494

Amortization of initial direct costs of leases
 
4,878

 
5,232

 
14,165

 
14,534

Funds from operations
 
109,491

 
118,797

 
350,439

 
349,015

Dividends on preferred shares
 
(1,875
)
 
(1,875
)
 
(5,625
)
 
(5,625
)
Income attributable to operating partnership units
 
658

 
765

 
2,048

 
2,299

Income attributable to unvested shares
 
(314
)
 
(353
)
 
(1,004
)
 
(1,139
)
FFO (3)
 
$
107,960

 
$
117,334

 
$
345,858

 
$
344,550

Weighted average number of common shares, diluted
 
75,554

 
74,254

 
75,342

 
73,992

FFO per diluted share (3)
 
$
1.43

 
$
1.58

 
$
4.59

 
$
4.66

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
125,794

 
$
67,800

 
$
272,049

 
$
208,965

Tenant improvements and incentives
 
14,746

 
11,251

 
40,221

 
34,709

Total non-maintenance capital expenditures
 
140,540

 
79,051

 
312,270

 
243,674

Maintenance capital expenditures
 
6,226

 
4,294

 
11,101

 
10,751

Total capital expenditures
 
$
146,766

 
$
83,345

 
$
323,371

 
$
254,425

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
79,102

 
$
75,224

 
$
231,657

 
$
221,623

Dividend payout ratio as a percentage of FFO (3)
 
73
%
 
64
%
 
67
%
 
64
%
 
 
 
 
 
 
 
 
 
Noncontrolling Interests Supplemental Information (4)
 
 
 
 
 
 
 
 
Property operating income (1)
 
$
2,997

 
$
3,093

 
$
9,191

 
$
9,651

Depreciation and Amortization
 
(1,490
)
 
(1,614
)
 
(4,477
)
 
(4,902
)
Interest Expense
 
(524
)
 
(622
)
 
(1,697
)
 
(1,804
)
Net income
 
$
983

 
$
857

 
$
3,017

 
$
2,945


Notes:
1)
See Glossary of Terms.
2)
In connection with the adoption of the new lease accounting standard, effective January 1, 2019, certain internal and external legal leasing costs no longer qualify for capitalization. As a result, capitalized leasing costs excluding external commissions decreased to $0.7 million and $1.7 million for the three and nine months ended September 30, 2019, respectively, from $1.7 million and $5.3 million for the three and nine months ended September 30, 2018, respectively.
3)
Funds from operations available for common shareholders includes an $11.9 million charge related to the buyout of the Kmart lease at Assembly Row Marketplace. If this charge was excluded, our FFO, FFO per diluted share, and dividend payout ratio as a percentage of FFO would have been:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2019
 
September 30, 2019
 
 
(in thousands, except per share data)
FFO
 
$
119,837

 
$
357,735

FFO per diluted share
 
$
1.59

 
$
4.75

Dividend payout ratio as a percentage of FFO
 
66
%
 
65
%
4)
Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to operating partnership units."

9




Federal Realty Investment Trust
Market Data
September 30, 2019
 
 
 
September 30,
 
 
 
2019
 
2018
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
76,122

 
74,599

 
Market price per common share
 
$
136.14

 
$
126.47

 
Common equity market capitalization including operating partnership units
 
$
10,363,249

 
$
9,434,536

 
 
 
 
 
 
 
Series C preferred shares outstanding
 
6

 
6

 
Liquidation price per Series C preferred share
 
$
25,000

 
25,000

 
Series C preferred equity market capitalization
 
$
150,000

 
$
150,000

 
 
 
 
 
 
 
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
 
$
10,523,249

 
$
9,594,536

 
 
 
 
 
 
 
Total debt (3)
 
3,276,911

 
3,185,105

 
 
 
 
 
 
 
Total market capitalization
 
$
13,800,160

 
$
12,779,641

 
 
 
 
 
 
 
Total debt to market capitalization at market price per common share
 
24
%
 
25
%

Notes:
1)
Amounts include 626,619 and 739,287 operating partnership units outstanding at September 30, 2019 and 2018, respectively.
2)
These shares, issued March 8, 2007, are unregistered.
3)
Total debt includes mortgages payable, notes payable, senior notes and debentures, net of premiums/discounts and debt issuance costs from our consolidated balance sheet. The previously reported 2018 balance has been adjusted to exclude capital lease obligations, as finance lease liabilities are no longer included in debt upon the adoption of the new lease accounting standard. See Note 2 of our September 30, 2019 Form 10-Q for additional information regarding the adoption.



10




Federal Realty Investment Trust
 
 
 
 
 
 
 
Components of Rental Income
 
 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2019, we adopted the accounting guidance in ASU 2016-2, Leases (Topic 842), which resulted in several presentation changes with respect to our 2019 Consolidated Income Statements. 
l
All income from tenant leases are reported as a single line item called “Rental Income.” We have provided below supplemental information with a breakout of the contractual components of the rental income line, however, these breakouts are provided for informational purposes only and should be considered a non-GAAP presentation.
l
Real estate taxes paid directly to the taxing authority by our tenants are no longer presented gross as “real estate tax expense” and “rental income” (this amount was approximately $1 million and $4 million for the three and nine months ended September 30, 2018, respectively). This change is only reflected in the 2019 results.
l
Bad debt expense is no longer reflected in “rental expenses” but instead is a direct reduction of “rental income.” This change is reflected in the 2019 results only, and is a reduction of rental income of approximately $1 million and $3 million, respectively, for the three and nine months ended September 30, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in thousands)
Minimum rents (1)
 
 
 
 
 
 
 
Commercial
$
157,562

 
$
153,923

 
$
470,962

 
$
459,496

Residential
19,864

 
18,746

 
58,601

 
51,866

Cost reimbursements
44,026

 
44,044

 
128,585

 
131,779

Percentage rents
2,652

 
2,392

 
6,681

 
7,873

Other
9,108

 
9,855

 
29,606

 
26,762

Total rental income
$
233,212

 
$
228,960

 
$
694,435

 
$
677,776


Notes:
1)
Minimum rents include $1.7 million and $1.4 million for the three months ended September 30, 2019 and 2018, respectively, and $6.0 million and $4.7 million for the nine months ended September 30, 2019 and 2018, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $1.9 million and $2.0 million for the three months ended September 30, 2019 and 2018, respectively, and $5.1 million and $3.8 million for the nine months ended September 30, 2019 and 2018, respectively, to recognize income from the amortization of in-place leases.

11




Federal Realty Investment Trust
 
 
 
 
Comparable Property Information
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
The following information is being provided for “Comparable Properties.” Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets excluded from Comparable Properties in Q3 include: Assembly Row - Phase 2, CocoWalk, Olivo at Mission Hills, Pike & Rose, The Shops at Sunset Place, Towson Residential, 700 Santana Row, Jordan Downs Plaza, a portion of Graham Park Plaza, and all properties acquired or disposed of from Q3 2018 to Q3 2019. Additionally, in Q3 2019, the $11.9 million charge related to the buyout of the Kmart lease at Assembly Row Marketplace is excluded from Comparable Property property operating income ("Comparable Property POI"). Comparable Property POI is a non-GAAP measure used by management in evaluating the operating performance of our properties period over period.
 
 
 
 
 
Reconciliation of GAAP operating income to Comparable Property POI
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
 
 
(in thousands)
 
Operating Income
$
94,018

 
$
93,467

 
Add:
 
 
 
 
Depreciation and amortization
59,648

 
60,778

 
General and administrative
11,060

 
7,638

 
Gain on sale of real estate, net of tax
(14,293
)
 
(3,125
)
 
Property operating income (POI)
150,433

 
158,758

 
Less: Non-comparable POI - acquisitions/dispositions
(439
)
 
(1,732
)
 
Less: Non-comparable POI - redevelopment, development & other
(2,720
)
 
(12,749
)
 
Comparable Property POI
$
147,274

 
$
144,277

 
 
 
 
 
 
Additional information regarding the components of Comparable Property POI
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
% Change
 
(in thousands)
 
Rental income
$
208,823

 
$
204,908

 
 
 
 
 
 
Rental expenses
(35,527
)
 
(34,805
)
 
Real estate taxes
(26,022
)
 
(25,826
)
 
 
(61,549
)
 
(60,631
)
 
 
 
 
 
 
Comparable Property POI
$
147,274

 
$
144,277

2.1
%
 
 
 
 
 
Comparable Property - Occupancy Statistics (1)
 
At September 30,
 
 
2019
 
2018
 
GLA - comparable commercial properties
22,355,000

 
22,367,000

 
Leased % - comparable commercial properties
94.9
%
 
95.5
%
 
Occupancy % - comparable commercial properties
93.5
%
 
94.4
%
 
 
 
 
 
 
Comparable Property - Summary of Capital Expenditures (2)
 
Three Months Ended
 
 
September 30,
 
 
2019
 
2018
 
 
(in thousands)
 
Redevelopment and tenant improvements and incentives
$
31,318

 
$
26,175

 
Maintenance capital expenditures
5,608

 
4,198

 
 
$
36,926

 
$
30,373

 
Notes:
 
1)
See page 26 for entire portfolio occupancy statistics.
2)
See page 9 for "Summary of Capital Expenditures" for our entire portfolio.

12




Federal Realty Investment Trust
Summary of Outstanding Debt and Finance Lease Liabilities
September 30, 2019
 
 
As of September 30, 2019
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (5)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages Payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
The Shops at Sunset Place
9/1/2020
 
5.62%
 
$
62,761

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
3,939

 
 
 
 
 
 
Sylmar Towne Center
6/6/2021
 
5.39%
 
16,727

 
 
 
 
 
 
Plaza Del Sol
12/1/2021
 
5.23%
 
8,275

 
 
 
 
 
 
The AVENUE at White Marsh
1/1/2022
 
3.35%
 
52,705

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
67,954

 
 
 
 
 
 
Azalea
11/1/2025
 
3.73%
 
40,000

 
 
 
 
 
 
Bell Gardens
8/1/2026
 
4.06%
 
12,743

 
 
 
 
 
 
Plaza El Segundo
6/5/2027
 
3.83%
 
125,000

 
 
 
 
 
 
The Grove at Shrewsbury (East)
9/1/2027
 
3.77%
 
43,600

 
 
 
 
 
 
Brook 35
7/1/2029
 
4.65%
 
11,500

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
5,684

 
 
 
 
 
 
Hoboken (2)
7/1/2042
 
3.75%
 
16,951

 
 
 
 
 
 
Subtotal
 
 
 
 
467,839

 
 
 
 
 
 
Net unamortized premium and debt issuance costs
 
 
 
(1,239
)
 
 
 
 
 
 
Total mortgages payable, net
 
 
 
 
466,600

 
 
 
4.01%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility (3)
1/19/2024
 
LIBOR + 0.775%
 

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
3,953

 
 
 
 
 
 
Subtotal
 
 
 
 
3,953

 
 
 
 
 
 
Net unamortized debt issuance costs
 
 
 
(64
)
 
 
 
 
 
 
Total notes payable, net
 
 
 
 
3,889

 
 
 
11.70%
(6)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
2.55% notes
1/15/2021
 
2.55%
 
250,000

 
 
 
 
 
 
3.00% notes
8/1/2022
 
3.00%
 
250,000

 
 
 
 
 
 
2.75% notes
6/1/2023
 
2.75%
 
275,000

 
 
 
 
 
 
3.95% notes
1/15/2024
 
3.95%
 
300,000

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

 
 
 
 
 
 
3.25% notes
7/15/2027
 
3.25%
 
475,000

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

 
 
 
 
 
 
3.20% notes
6/15/2029
 
3.20%
 
400,000

 
 
 
 
 
 
4.50% notes
12/1/2044
 
4.50%
 
550,000

 
 
 
 
 
 
3.625% notes
8/1/2046
 
3.63%
 
250,000

 
 
 
 
 
 
Subtotal
 
 
 
 
2,819,200

 
 
 
 
 
 
Net unamortized discount and debt issuance costs
 
 
 
(12,778
)
 
 
 
 
 
 
Total senior notes and debentures, net
 
 
 
2,806,422

 
 
 
3.67%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net debt
 
3,276,911

 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finance lease liabilities
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
72,065

 
 
 
8.03%
 
Total debt and finance lease liabilities
 
 
 
 
$
3,348,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and finance lease liabilities, net
 
 
 
$
3,348,976

 
100
%
 
3.82%
 
Total variable rate debt
 
 
 

 
%
 
—%
 
Total debt and finance lease liabilites, net
 
 
 
$
3,348,976

 
100
%
 
3.82%
(6)

13




 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Operational Statistics
 
 
 
 
 
 
 
Including lease buyout charge
 
 
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (7)
3.93x
 
4.28x
 
4.15x
 
4.20x
Excluding lease buyout charge
 
 
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (7) (8)
4.26x
 
4.28x
 
4.26x
 
4.20x

Notes:
1)
Mortgages payable does not include our share of the debt on our unconsolidated real estate partnerships. At September 30, 2019, our share was approximately $54.1 million. At September 30, 2019, our noncontrolling interests share of mortgages payable was $51.1 million.
2)
The mortgage loan has a fixed interest rate; however, the rate resets every five years until maturity. The current rate is fixed until July 1, 2022, and the loan is prepayable at par anytime after this date.
3)
The maximum amount drawn under our revolving credit facility during the three and nine months ended September 30, 2019 was $47.0 million and $116.5 million, respectively. The weighted average interest rate on borrowings under our revolving credit facility, before amortization of debt fees, for the three and nine months ended September 30, 2019 was 3.0% and 3.2%, respectively. On July 25, 2019, we amended our revolving credit facility to increase our borrowing capacity to $1.0 billion and extend the maturity date to January 19, 2024. We also lowered the spread over LIBOR to 77.5 basis points.
4)
The weighted average remaining term on our debt is 11 years.
5)
The weighted average effective interest rate includes the amortization of any debt issuance costs and discounts and premiums, if applicable, except as described in Note 6.
6)
The weighted average effective interest rate excludes $0.6 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had no outstanding balance on September 30, 2019.
7)
Fixed charges consist of interest on borrowed funds and finance leases (including capitalized interest), amortization of debt discount/premium and debt costs, and the portion of rent expense representing an interest factor. EBITDAre is reconciled to net income in the Glossary of Terms.
8)
Fixed charges for the three and nine months ended September 30, 2019 excludes the $11.9 million charge related to the buyout of the Kmart lease at Assembly Square Marketplace.

14




Federal Realty Investment Trust
Summary of Debt Maturities
September 30, 2019
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (2)
 
 
(in thousands)
 
 
 
 
 
 
 
2019
$
1,564

 
$

 
$
1,564

 
%
 
%
 
%
 
2020
5,873

 
60,593

 
66,466

 
2.0
%
 
2.0
%
 
3.9
%
 
2021
4,004

 
277,546

 
281,550

 
8.6
%
 
10.6
%
 
2.9
%
 
2022
1,793

 
366,323

 
368,116

 
11.2
%
 
21.8
%
 
3.4
%
 
2023
1,870

 
275,000

 
276,870

 
8.4
%
 
30.2
%
 
3.0
%
 
2024
1,820

 
300,000

 
301,820

 
9.2
%
 
39.4
%
 
4.2
%
(3)
2025
1,406

 
40,000

 
41,406

 
1.3
%
 
40.7
%
 
3.9
%
 
2026
1,149

 
39,886

 
41,035

 
1.2
%
 
41.9
%
 
6.6
%
 
2027
1,028

 
683,600

 
684,628

 
20.8
%
 
62.7
%
 
3.8
%
 
2028
1,036

 

 
1,036

 
%
 
62.7
%
 
11.8
%
 
Thereafter
9,102

 
1,217,399

 
1,226,501

 
37.3
%
 
100.0
%
 
3.9
%
 
Total
$
30,645

 
$
3,260,347

 
$
3,290,992

(1)
100.0
%
 
 
 
 
 
Notes:
1)
The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized net premium/discount and debt issuance costs on certain mortgage loans, notes payable, and senior notes as of September 30, 2019.
2)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
3)
The weighted average rate excludes $0.6 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility, which had no outstanding balance at September 30, 2019. Our revolving credit facility matures on January 19, 2024, plus two six month extensions at our option.


15




Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
The following redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust. (1)
 
 
 
 
 
 
 
Property
Location
Opportunity
Projected ROI (2)
Projected Cost (1)
Cost to Date
Anticipated Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
 
Darien
Darien, CT
Demolition of a 45,000 square foot anchor space to construct 75,000 square feet of new retail space, 122 rental apartments, and 720 parking spaces
6
%
 $110 - $120
$6
2023
CocoWalk
Coconut Grove, FL
Entire shopping center redevelopment to include: demolition of three story east wing of the property and construction of a 106,000 square foot 5-story office/retail building with 24,000 square feet of retail; complete renovation of the west wing.
6%-7%

$85 - $90
$43
2021
Jordan Downs Plaza (5)
Los Angeles, CA
Development of a new 113,000 square foot single-story grocery anchored neighborhood shopping center
7
%
 $38 - $42
$35
2020
Brick Plaza
Brick, NJ
Redevelopment and repositioning of anchor tenant and small shop spaces to transform property into a market dominant center
7
%
$30
$25
2019
Bala Cynwyd
Bala Cynwyd, PA
New 87 unit residential apartment building to be constructed on underutilized land behind our existing shopping center
6
%
$23
$11
2021
7021 Hollywood Blvd
Los Angeles, CA
Renovation of the center and three vacant spaces to accommodate a new 39,000 square foot anchor tenant
9
%
$19
$3
2021
Melville Mall
Huntington, NY
Development of a new 15,000 square foot pad site consisting of two multi-tenant retail buildings
8
%
$11
$4
2020
Montrose Crossing
Rockville, MD
Demolition of 10,000 square foot restaurant building to construct an 18,000 square foot multi-tenant pad building
11
%
$10
$8
2019
Lawrence Park
Broomall, PA
Full shopping center redevelopment to include expansion of Main Line Health into vacant lower level space, creation of 17,800 square feet of small shop space converted from vacated anchor space, and a façade renovation for the entire center
8
%
$10
$0
2021
Pike 7 Plaza
Vienna, VA
Addition of 8,300 square foot multi-tenant retail pad building
7
%
$10
$9
Stabilized
Wildwood
Bethesda, MD
4,900 square foot south end building expansion and site improvements
7
%
$6
$5
2020
Willow Lawn
Richmond, VA
Conversion of vacant 5,000 square foot pad building to retail use to accommodate new 3,500 square foot fast casual restaurant tenant. Remainder of pad building to be demolished to construct new 2,200 square foot Starbucks pad site.
9
%
$2
$2
Stabilized
Total Active Redevelopment projects (4)
 
7
%
 $354 - $373

$151

 

Notes:
(1)
There is no guarantee 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 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 generally the year in which 90% physical occupancy of the redeveloped space is achieved. Economic stabilization may occur at a later point in time.
(4)
All subtotals and totals reflect cost weighted-average ROIs.
(5)
Projected cost is net of the proceeds we will receive from our New Market Tax Credit structure. See Note 3 of our December 31, 2018 Form 10-K for additional information.


16




Federal Realty Investment Trust
 
 
 
 
 
 
 
 
 
 
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected POI Delivered
 
 
 
 
 
 
 
 
 
 
(as a % of Total)
 
 
 
 
 
Projected
 
Total
Costs to
 
For Year Ended December 31, (2)
 
 
Property (1)
Opportunity
 
ROI (3)
 
Cost (4)
Date
 
2019
2020
 
Expected Opening Timeframe
 
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
Assembly Row, Somerville, MA
 
 
 
 
 
 
 
 
 
 
Phase II
- 161,000 SF of retail
- 447 residential units
- 158 boutique hotel rooms
 
7%
 (5)
$290 - 305
$294
 
90%
Stabilized
 
132,000 square feet of retail has opened, remaining
tenants projected to open through 2019/2020

 




 


 
Residential building opened in September 2017 with
deliveries through 3Q 2018

 
 




 


 
741,500 SF Partners Healthcare office space (built by Partners) opened in 2016
 
 
 
 
 
 
 
 
 
 
 
Hotel opened in 3Q18

- 122 for-sale condominium units
 
 (6)
$81
$81
 


 
All condominium units have been sold
Phase III
- 277,000 SF of office
- 500 residential units
- 56,000 SF of retail
 
6%
 
$465 - 485
145
 
 
150,000 square feet of office space pre-leased
 
 
 
 
 
 
 
 
 
 
Openings projected to begin in 2022
 
 
 
 
 
 
 
 
 
 
 
Future Phases
- 1.5M SF of commercial
- 329 residential units
 
TBD

TBD

 


 


 




 


 



 




 


 

Pike & Rose, North Bethesda, MD
 




 


 

Phase II
- 216,000 SF of retail
- 272 residential units
- 177 boutique hotel rooms
 
6%
 (5)
$200 - 207
$204
 
80%
Stabilized
 
196,000 square feet of retail has opened, remaining
tenants projected to open through 2019

 




 


 
Residential building opened in August 2017 with
deliveries through 2Q 2018
 
 
 
 
 
 
 
 
 
 
Hotel opened in 1Q18

- 99 for-sale condominium units
 
 (6)
$62
$62
 


 
95 condominium units have been sold
Phase III
- 212,000 SF of office
- 4,000 SF of retail
 
6-7%
 
$128 - 135
$67
 
 
Opening projected to begin in 2021
Future Phases
- 740,000 SF of commercial
- 741 residential units
 
TBD

TBD

 


 



 




 
 
 
 

Santana Row, San Jose, CA
 
 
 
 
 
 
 
 
 

700 Santana Row
- 301,000 SF of office
- 18,000 SF of retail & 1,300 parking spaces
- Redevelopment of Santana Row Park including the installation of a new retail pavilion
 
7-8%
 
$210 - 220
$185
 
90%
 
Commenced construction 4Q 2016
 
 
 
 
 
 
 
 
 
 
Retail openings in late 2019
 
 
 
 
 
 
 
 
 
 
Office 100% pre-leased, opening in 2020
Santana West - Phase I
- 360,000 SF of office
- 1,750 parking spaces
 
6-7%
 
$250 - 270
$31
 
 
Openings projected to begin in 2021
Future Phases
- 321,000 SF of commercial
- 395 residential units
- 620,000 SF of commercial across from Santana Row
 
TBD
 
TBD

 
 
 
 
 
Notes
(1)
Anticipated opening dates, total cost, projected return on investment (ROI), and projected POI percentages are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors.
(2)
Percentage figures reflect (i) the projected POI (herein defined) for the stated year divided by (ii) the current projected annual stabilized POI for the Property. These percentages are projections only and we cannot give any assurances that these amounts will actually be achieved.
(3)
Projected ROI for development projects reflects the unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(4)
Projected costs for Assembly Row and Pike & Rose include an allocation of infrastructure costs for the entire project. Phase I of Santana West includes an allocation of infrastructure for the Santana West site.
(5)
Costs are net of expected reimbursement by third parties and land sale proceeds. Phase II total costs and costs to date include our share of the costs in the hotel.
(6)
Condominiums shown at cost; the projected ROI for Phase II does not assume any incremental profit on the sale of condominium units; for return calculation purposes, condominiums are assumed to be sold at cost.

17




Federal Realty Investment Trust
Future Redevelopment Opportunities
September 30, 2019
 
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.
 
Escondido Promenade
Escondido, CA
 
Mercer Mall
Lawrenceville, NJ
 
 
 
Federal Plaza
Rockville, MD
 
Pan Am
Fairfax, VA
 
 
 
Flourtown
Flourtown, PA
 
Sylmar Towne Center
Sylmar, CA
 
 
 
Fresh Meadows
Queens, NY
 


 
 
 


 


 
 
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into more productive uses for the property.
 
Barracks Road
Charlottesville, VA
 
Plaza El Segundo
El Segundo, CA
 
 
 
Bethesda Row
Bethesda, MD
 
Riverpoint Center
Chicago, IL
 
 
 
Dedham Plaza
Dedham, MA
 
The Shops at Sunset Place
South Miami, FL
 
 
 
Fourth Street
Berkeley, CA
 
Third Street Promenade
Santa Monica, CA
 
 
 
Fresh Meadows
Queens, NY
 
Wildwood
Bethesda, MD
 
 
 
Hastings Ranch Plaza
Pasadena, CA
 
Willow Grove
Willow Grove, PA
 
 
 
Huntington
Huntington, NY
 


 
 
 
 
 
 
 
 
 
 
Residential Opportunities - Opportunity to add residential units to existing retail and mixed-use properties.
 
Barracks Road
Charlottesville, VA
 
Graham Park Plaza
Falls Church, VA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Village at Shirlington
Arlington, VA
 
 
 
 
 
 
 
 
 
 
Longer Term Mixed-Use Opportunities
 
Assembly Row (1)
Somerville, MA
 
San Antonio Center
Mountain View, CA
 
 
 
Bala Cynwyd
Bala Cynwyd, PA
 
Santana Row (3)
San Jose, CA
 
 
 
Pike 7 Plaza
Vienna, VA
 
Santana Row - Santana West (3)
San Jose, CA
 
 
 
Pike & Rose (2)
North Bethesda, MD
 


 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
Assembly Row
Remaining entitlements after Phase II include approximately 1.5 million square feet of commercial-use buildings and 329 residential units.
(2)
Pike & Rose
Remaining entitlements after Phase II include approximately 740,000 square feet of commercial-use buildings, and 741 residential units.
(3)
Santana Row
Remaining entitlements include approximately 321,000 square feet of commercial space and 395 residential units, as well as approximately 620,000 square feet of commercial space on land we control across from Santana Row.

18




Federal Realty Investment Trust
 
2019 Significant Property Acquisitions, Dispositions, and Other Transactions
 
September 30, 2019
 



2019 Significant Acquisitions
Date
Property
City/State
GLA
Purchase Price
Principal Tenants
 
 
 
 
(in square feet)
(in millions)
 
 
February 8, 2019
Fairfax Junction
Fairfax, Virginia
75,000

$
22.5

CVS / Planet Fitness
 
September 18, 2019
Hoboken (210 14th Street)
Hoboken, New Jersey
42,000

$
30.9

CVS / New York Sports Club
(1)
(1) The acquisition was completed through a newly formed joint venture, in which we own a 90% interest. The purchase price includes the assumption of $17.0 million of mortgage debt.

2019 Significant Dispositions
Date
Property
City/State
Sales Price
 
 
 
 
(in millions)
 
May 28, 2019
Free State Shopping Center
Bowie, Maryland
$
72.0

 
May 29, 2019
Northeast (Parcel)
Philadelphia, Pennsylvania
$
7.7

 
August 5, 2019
Hermosa Avenue
Hermosa Beach, California
$
18.0

 
October 11, 2019
Plaza Pacoima
Pacoima, California
$
51.3

 

2019 Other Transactions
Type
Property
City/State
Purchase Price
 
 
 
 
(in millions)
 
Lease Buyout
Assembly Square Marketplace
Sommerville, Massachusetts
$
14.5

 
Partner Buyout
Montrose Crossing
Rockville, Maryland
$
10.0

 


19




Federal Realty Investment Trust
Real Estate Status Report
September 30, 2019
Property Name
 
MSA Description
Real Estate at Cost (1)
Mortgage/Finance Lease Liabilities (2)
Acreage
GLA (3)
 
% Leased (3)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
  Washington Metropolitan Area
 
 
 
 
 
 
 
 
 
 
 
 
Barcroft Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
$
48,403



10

 
115,000

 
95
%


46,000

 
Harris Teeter

Bethesda Row

Washington-Arlington-Alexandria, DC-VA-MD-WV
230,342



17

 
536,000

 
96
%
180

40,000

 
Giant Food
Apple / Equinox / Anthropologie / Multiple Restaurants
Congressional Plaza
(4)
Washington-Arlington-Alexandria, DC-VA-MD-WV
103,952



21

 
324,000

 
96
%
194

25,000

 
The Fresh Market
Buy Buy Baby / Container Store / Ulta
Courthouse Center

Washington-Arlington-Alexandria, DC-VA-MD-WV
6,680



2

 
38,000

 
81
%


 


Fairfax Junction

Washington-Arlington-Alexandria, DC-VA-MD-WV
21,560

 
7

 
75,000

 
100
%
 
23,000

 
Aldi
CVS / Planet Fitness
Falls Plaza/Falls Plaza-East

Washington-Arlington-Alexandria, DC-VA-MD-WV
14,182



10

 
144,000

 
92
%

51,000

 
Giant Food
CVS / Staples
Federal Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
70,293



18

 
250,000

 
96
%

14,000

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

Washington-Arlington-Alexandria, DC-VA-MD-WV
38,150



1

 
119,000

 
100
%


 

Marshalls / Nordstrom Rack / DSW / Maggiano's
Gaithersburg Square

Washington-Arlington-Alexandria, DC-VA-MD-WV
28,527



16

 
207,000

 
96
%


 

Bed, Bath & Beyond / Ross Dress For Less / Ashley Furniture HomeStore / CVS
Graham Park Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
36,748



19

 
132,000

 
94
%

58,000

 
Giant Food
CVS
Idylwood Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
17,103



7

 
73,000

 
98
%

30,000

 
Whole Foods

Laurel

Washington-Arlington-Alexandria, DC-VA-MD-WV
57,896



26

 
389,000

 
84
%

61,000

 
Giant Food
Marshalls / L.A. Fitness
Leesburg Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
36,986



26

 
236,000

 
87
%

55,000

 
Giant Food
Petsmart / Office Depot
Montrose Crossing

Washington-Arlington-Alexandria, DC-VA-MD-WV
162,271

67,954

36

 
371,000

 
99
%

73,000

 
Giant Food
Marshalls / Old Navy / Barnes & Noble / Bob's Discount Furniture
Mount Vernon/South Valley/7770 Richmond Hwy
(5)
Washington-Arlington-Alexandria, DC-VA-MD-WV
85,689



29

 
569,000

 
96
%

62,000

 
Shoppers Food Warehouse
TJ Maxx / Home Depot / Bed, Bath & Beyond / Results Fitness
Old Keene Mill

Washington-Arlington-Alexandria, DC-VA-MD-WV
11,774



10

 
92,000

 
97
%

24,000

 
Whole Foods
Walgreens / Planet Fitness
Pan Am

Washington-Arlington-Alexandria, DC-VA-MD-WV
29,439



25

 
227,000

 
98
%

65,000

 
Safeway
Micro Center / CVS / Michaels
Pentagon Row

Washington-Arlington-Alexandria, DC-VA-MD-WV
106,227



14

 
298,000

 
96
%

45,000

 
Harris Teeter
TJ Maxx / Bed, Bath & Beyond / DSW
Pike & Rose
(6)
Washington-Arlington-Alexandria, DC-VA-MD-WV
607,642



24

 
447,000

 
99
%
765


 

iPic Theater / Porsche / Uniqlo / REI / Pinstripes / Multiple Restaurants
Pike 7 Plaza

Washington-Arlington-Alexandria, DC-VA-MD-WV
48,762



13

 
172,000

 
95
%


 

TJ Maxx / DSW / Crunch Fitness / Staples
Plaza del Mercado

Washington-Arlington-Alexandria, DC-VA-MD-WV
46,697



10

 
117,000

 
98
%

18,000


Aldi
CVS / L.A. Fitness
Quince Orchard

Washington-Arlington-Alexandria, DC-VA-MD-WV
40,737



16

 
265,000

 
94
%

19,000

 
Aldi
HomeGoods / L.A. Fitness / Staples
Rockville Town Square
(7)
Washington-Arlington-Alexandria, DC-VA-MD-WV
52,166

4,420

12

 
186,000

 
87
%

25,000

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

Washington-Arlington-Alexandria, DC-VA-MD-WV
11,258



14

 
N/A

 
98
%
282


 


Sam's Park & Shop

Washington-Arlington-Alexandria, DC-VA-MD-WV
13,962



1

 
51,000

 
89
%


 

Target
Tower Shopping Center

Washington-Arlington-Alexandria, DC-VA-MD-WV
22,294



12

 
112,000

 
91
%

26,000

 
L.A. Mart
Talbots / Total Wine & More
Tyson's Station

Washington-Arlington-Alexandria, DC-VA-MD-WV
4,897



5

 
50,000

 
100
%

11,000

 
Trader Joe's

Village at Shirlington
(7)
Washington-Arlington-Alexandria, DC-VA-MD-WV
68,089

6,750

16

 
260,000

 
91
%

28,000

 
Harris Teeter
AMC / Carlyle Grand Café
Wildwood

Washington-Arlington-Alexandria, DC-VA-MD-WV
25,531



12

 
87,000

 
94
%

20,000

 
Balducci's
CVS / Flower Child
 

Total Washington Metropolitan Area
2,048,257



429

 
5,942,000

 
95
%


 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  California
 
 
 
 


 
 
 
 

 
 
 
 
Azalea
(4)
Los Angeles-Long Beach-Anaheim, CA
107,485

40,000

22

 
223,000

 
100
%

 
 
 
Marshalls / Ross Dress for Less / Ulta
Bell Gardens
(4)
Los Angeles-Long Beach-Anaheim, CA
110,504

12,743

32

 
330,000

 
93
%


67,000

 
Food 4 Less
Marshalls / Ross Dress for Less / Petco / Bob's Discount Furniture
Colorado Blvd

Los Angeles-Long Beach-Anaheim, CA
19,561



1

 
61,000

 
100
%
12





Pottery Barn / Banana Republic

20




Federal Realty Investment Trust
Real Estate Status Report
September 30, 2019
Property Name
 
MSA Description
Real Estate at Cost (1)
Mortgage/Finance Lease Liabilities (2)
Acreage
GLA (3)
 
% Leased (3)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
Crow Canyon Commons

San Francisco-Oakland-Hayward, CA
90,166

 
22

 
241,000

 
87
%


32,000


Sprouts
Total Wine & More / Rite Aid
East Bay Bridge

San Francisco-Oakland-Hayward, CA
178,943

 
32

 
441,000

 
100
%
 
59,000

 
Pak-N-Save
Home Depot / Target / Nordstrom Rack
Escondido Promenade
(4)
San Diego-Carlsbad, CA
51,581

 
18

 
297,000

 
98
%


 
 
 
TJ Maxx / Dick’s Sporting Goods / Ross Dress For Less / Bob's Discount Furniture
Fourth Street
(4)
San Francisco-Oakland-Hayward, CA
25,636

 
3

 
71,000

 
73
%





CB2 / Ingram Book Group
Hastings Ranch Plaza

Los Angeles-Long Beach-Anaheim, CA
22,819

 
15

 
273,000

 
99
%





Marshalls / HomeGoods / CVS / Sears
Hollywood Blvd

Los Angeles-Long Beach-Anaheim, CA
48,788

 
3

 
179,000

 
93
%





Marshalls / L.A. Fitness / La La Land
Jordan Downs Plaza
(4)
Los Angeles-Long Beach-Anaheim, CA
33,803



9

 
N/A

 
N/A

 
 
 
 

Kings Court
(5)
San Jose-Sunnyvale-Santa Clara, CA
11,580



8

 
80,000

 
100
%


31,000


Lunardi's
CVS
Old Town Center

San Jose-Sunnyvale-Santa Clara, CA
35,763

 
8

 
98,000

 
81
%





Anthropologie / Banana Republic / Gap
Olivo at Mission Hills
(4)
Los Angeles-Long Beach-Anaheim, CA
78,648

 
12

 
137,000

 
100
%






Target / 24 Hour Fitness / Ross Dress For Less
Plaza Del Sol
(4)
Los Angeles-Long Beach-Anaheim, CA
17,936

8,275

4

 
48,000

 
100
%





Marshalls
Plaza El Segundo / The Point
(4)
Los Angeles-Long Beach-Anaheim, CA
290,347

125,000

50

 
502,000

 
94
%


66,000


Whole Foods
Nordstrom Rack / HomeGoods / Dick's Sporting Goods / Multiple Restaurants
Plaza Pacoima
(4) (8)
Los Angeles-Long Beach-Anaheim, CA
49,557



18

 
204,000

 
100
%



 

Costco / Best Buy
San Antonio Center
(5)
San Jose-Sunnyvale-Santa Clara, CA
80,975



35

 
382,000

 
97
%


11,000

 
Trader Joe's
Walmart / Kohl's / 24 Hour Fitness
Santana Row

San Jose-Sunnyvale-Santa Clara, CA
1,019,765



45

 
889,000

 
99
%
662


 

Crate & Barrel / H&M / Container Store / Multiple Restaurants
Sylmar Towne Center
(4)
Los Angeles-Long Beach-Anaheim, CA
43,561

16,727

12

 
148,000

 
89
%


43,000

 
Food 4 Less
CVS
Third Street Promenade

Los Angeles-Long Beach-Anaheim, CA
81,508



2

 
209,000

 
100
%



 

Adidas / Banana Republic / Old Navy / J. Crew
Westgate Center

San Jose-Sunnyvale-Santa Clara, CA
157,418



44

 
653,000

 
99
%



 

Target / Nordstrom Rack / Nike Factory / TJ Maxx
 
 
Total California
2,556,344



395

 
5,466,000

 
96
%


 
 
 
 
 
 
 
 
 


 
 
 
 


 
 
 
 
  NY Metro/New Jersey






 


 
 


 
 
 
 
Brick Plaza

New York-Newark-Jersey City, NY-NJ-PA
94,164



46

 
409,000

 
82
%


14,000

 
Trader Joe's
AMC / HomeGoods / Ulta / L.A. Fitness
Brook 35
(4) (5)
New York-Newark-Jersey City, NY-NJ-PA
48,261

11,500

11

 
99,000

 
96
%



 

Banana Republic / Gap / Williams-Sonoma
Darien

Bridgeport-Stamford-Norwalk, CT
55,890



9

 
92,000

 
92
%
2

45,000

 
Stop & Shop
Equinox / Walgreens
Fresh Meadows

New York-Newark-Jersey City, NY-NJ-PA
92,503



17

 
404,000

 
99
%


15,000

 
Island of Gold
AMC / Kohl's / Michaels
Greenlawn Plaza

New York-Newark-Jersey City, NY-NJ-PA
31,853



13

 
106,000

 
97
%


46,000

 
Greenlawn Farms
Tuesday Morning
Greenwich Avenue

Bridgeport-Stamford-Norwalk, CT
23,748



1

 
35,000

 
100
%



 

Saks Fifth Avenue
Hauppauge

New York-Newark-Jersey City, NY-NJ-PA
29,195



15

 
133,000

 
80
%


61,000

 
Shop Rite

Hoboken
(4)
New York-Newark-Jersey City, NY-NJ-PA
36,115

16,951

<1

 
42,000

 
100
%



 

CVS / New York Sports Club
Huntington

New York-Newark-Jersey City, NY-NJ-PA
46,865



21

 
263,000

 
81
%



 

Nordstrom Rack / Buy Buy Baby / Michaels / Ulta
Huntington Square

New York-Newark-Jersey City, NY-NJ-PA
13,188



18

 
74,000

 
93
%



 

Barnes & Noble
Melville Mall

New York-Newark-Jersey City, NY-NJ-PA
96,995



21

 
251,000

 
95
%


53,000

 
Uncle Giuseppe's Marketplace
Marshalls / Dick's Sporting Goods / Field & Stream / Macy's Backstage
Mercer Mall
(7)
Trenton, NJ
128,351

55,411

50

 
551,000

 
97
%


75,000

 
Shop Rite
Ross Dress For Less / Nordstrom Rack / Bed, Bath & Beyond / REI
The Grove at Shrewsbury
(4) (5)
New York-Newark-Jersey City, NY-NJ-PA
126,049

43,600

21

 
192,000

 
98
%


 

Lululemon / Anthropologie / Pottery Barn / Williams-Sonoma
Troy Hills

New York-Newark-Jersey City, NY-NJ-PA
40,959



19

 
211,000

 
100
%


 

Target / L.A. Fitness / Michaels


Total NY Metro/New Jersey
864,136



262

 
2,862,000

 
93
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

21




Federal Realty Investment Trust
Real Estate Status Report
September 30, 2019
Property Name
 
MSA Description
Real Estate at Cost (1)
Mortgage/Finance Lease Liabilities (2)
Acreage
GLA (3)
 
% Leased (3)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
  Philadelphia Metropolitan Area
 
 


 
 
 
 

 
 
 
 
Andorra

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
26,214



22

 
264,000

 
87
%

24,000

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

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
52,439



23

 
294,000

 
98
%

45,000

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

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
34,449



28

 
268,000

 
90
%

47,000

 
Whole Foods
Buy Buy Baby / Stein Mart
Flourtown

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
17,034



24

 
156,000

 
99
%

75,000

 
Giant Food
Movie Tavern
Langhorne Square

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
22,674



21

 
227,000

 
98
%

55,000

 
Redner's Warehouse Markets
Marshalls / Planet Fitness
Lawrence Park

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
33,721



29

 
375,000

 
98
%

53,000

 
Acme Markets
TJ Maxx / HomeGoods / Barnes & Noble
Northeast

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
31,187



15

 
228,000

 
77
%


 

Marshalls / Ulta / A.C. Moore
Town Center of New Britain

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
15,399



17

 
124,000

 
86
%

36,000

 
Giant Food
Rite Aid / Dollar Tree
Willow Grove

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
30,231



13

 
211,000

 
92
%


 

Marshalls / HomeGoods / Barnes & Noble
Wynnewood

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
43,068



14

 
251,000

 
100
%
9

98,000

 
Giant Food
Bed, Bath & Beyond / Old Navy / DSW


Total Philadelphia Metropolitan Area
306,416



206

 
2,398,000

 
93
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  New England








 


 



 
 
 
 
Assembly Row / Assembly Square Marketplace
(6)
Boston-Cambridge-Newton, MA-NH
776,470



65

 
893,000

 
98
%
447

18,000

 
Trader Joe's
TJ Maxx / AMC / LEGOLAND Discovery Center / Multiple Restaurants & Outlets
Campus Plaza

Boston-Cambridge-Newton, MA-NH
30,436



15

 
116,000

 
97
%


46,000

 
Roche Bros.
Burlington
Chelsea Commons

Boston-Cambridge-Newton, MA-NH
29,808

5,684

37

 
222,000

 
91
%




 

Home Depot / Planet Fitness
Dedham Plaza

Boston-Cambridge-Newton, MA-NH
45,252



19

 
246,000

 
91
%


80,000

 
Star Market
Planet Fitness
Linden Square

Boston-Cambridge-Newton, MA-NH
150,267



19

 
223,000

 
97
%
7

50,000

 
Roche Bros.
CVS
North Dartmouth

Providence-Warwick, RI-MA
9,369



28

 
48,000

 
100
%


48,000

 
Stop & Shop

Queen Anne Plaza

Boston-Cambridge-Newton, MA-NH
18,303



17

 
149,000

 
100
%


50,000

 
Big Y Foods
TJ Maxx / HomeGoods
Saugus Plaza

Boston-Cambridge-Newton, MA-NH
16,625



15

 
169,000

 
100
%


55,000

 
Super Stop & Shop
Floor & Decor


Total New England
1,076,530



215

 
2,066,000

 
97
%


 
 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  South Florida








 


 



 
 
 
 
Cocowalk
(4) (9)
Miami-Fort Lauderdale-West Palm Beach, FL
148,964



3

 
168,000

 
70
%


 

Cinepolis Theaters / Youfit Health Club
Del Mar Village

Miami-Fort Lauderdale-West Palm Beach, FL
72,228



17

 
191,000

 
92
%

44,000

 
Winn Dixie
CVS / L.A. Fitness
The Shops at Sunset Place
(4)
Miami-Fort Lauderdale-West Palm Beach, FL
124,057

62,761

10

 
523,000

 
63
%


 

AMC / L.A. Fitness / Barnes & Noble / Restoration Hardware Outlet
Tower Shops

Miami-Fort Lauderdale-West Palm Beach, FL
98,212



67

 
426,000

 
98
%

12,000

 
Trader Joe's
TJ Maxx / Ross Dress For Less / Best Buy / Ulta


Total South Florida
443,461



97

 
1,308,000

 
80
%

 
 
 
 
 
 
 
 
 


 
 
 
 

 
 
 
 
  Baltimore








 


 



 
 
 
 
Governor Plaza

Baltimore-Columbia-Towson, MD
27,315



24

 
243,000

 
98
%

16,500

 
Aldi
Dick's Sporting Goods / A.C. Moore
Perring Plaza

Baltimore-Columbia-Towson, MD
31,493



29

 
396,000

 
99
%

58,000

 
Shoppers Food Warehouse
Home Depot / Micro Center / Burlington
THE AVENUE at White Marsh
(5)
Baltimore-Columbia-Towson, MD
121,498

52,705

35

 
314,000

 
97
%


 

AMC / Ulta / Old Navy / Barnes & Noble
The Shoppes at Nottingham Square

Baltimore-Columbia-Towson, MD
17,983



4

 
32,000

 
87
%


 


Towson Residential (Flats @ 703)
 
Baltimore-Columbia-Towson, MD
22,366



1

 
4,000

 
100
%
105

 
 
 
 

22




Federal Realty Investment Trust
Real Estate Status Report
September 30, 2019
Property Name
 
MSA Description
Real Estate at Cost (1)
Mortgage/Finance Lease Liabilities (2)
Acreage
GLA (3)
 
% Leased (3)
Residential Units
 Grocery Anchor GLA
 
Grocery Anchor
Other Retail Tenants
 
 
 
(in thousands)
 (in thousands)
 
 
 
 
 
 
 
 
 
 
White Marsh Plaza

Baltimore-Columbia-Towson, MD
25,830



7

 
80,000

 
100
%

54,000

 
Giant Food

White Marsh Other

Baltimore-Columbia-Towson, MD
31,714



18

 
70,000

 
97
%


 




Total Baltimore
278,199



118

 
1,139,000

 
98
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
  Chicago








 


 



 
 
 
 
Crossroads

Chicago-Naperville-Elgin, IL-IN-WI
35,584



14

 
168,000

 
91
%


 

L.A. Fitness / Ulta / Binny's / Ferguson's Bath, Kitchen & Lighting Gallery
Finley Square

Chicago-Naperville-Elgin, IL-IN-WI
39,476



21

 
278,000

 
98
%




 

Bed, Bath & Beyond / Buy Buy Baby / Michaels / Portillo's
Garden Market

Chicago-Naperville-Elgin, IL-IN-WI
14,756



11

 
140,000

 
99
%

63,000

 
Mariano's Fresh Market
Walgreens
Riverpoint Center

Chicago-Naperville-Elgin, IL-IN-WI
121,743

 
17

 
211,000

 
93
%
 
86,000

 
Jewel Osco
Marshalls / Old Navy


Total Chicago
211,559



63

 
797,000

 
95
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
  Other








 


 



 
 
 
 
Barracks Road

Charlottesville, VA
69,460



40

 
500,000

 
97
%

99,000

 
Harris Teeter / Kroger
Anthropologie / Nike / Bed, Bath & Beyond / Old Navy
Bristol Plaza

Hartford-West Hartford-East Hartford, CT
31,525



22

 
267,000

 
89
%

74,000

 
Stop & Shop
TJ Maxx
Eastgate Crossing

Durham-Chapel Hill, NC
34,593



17

 
159,000

 
89
%

13,000

 
Trader Joe's
Ulta / Stein Mart / Petco
Gratiot Plaza

Detroit-Warren-Dearborn, MI
20,101



20

 
217,000

 
100
%

69,000

 
Kroger
Bed, Bath & Beyond / Best Buy / DSW
Lancaster
(7)
Lancaster, PA
13,044

5,484

11

 
126,000

 
82
%

75,000

 
Giant Food

29th Place

Charlottesville, VA
41,028

3,939

15

 
169,000

 
98
%


 

HomeGoods / DSW / Stein Mart / Staples
Willow Lawn

Richmond, VA
103,974



37

 
463,000

 
97
%

66,000

 
Kroger
Old Navy / Ross Dress For Less / Gold's Gym / Dick's Sporting Goods


Total Other
313,725



162

 
1,901,000

 
94
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grand Total
 
 
$
8,098,627

$
539,904

1,947

 
23,879,000

 
94
%
2,665

 
 
 
 
Notes:
 
(1)
Includes "Finance lease right of use assets."
(2)
The mortgage or finance lease liabilities differ from the total reported on the consolidated balance sheet due to the unamortized discount, premium, and/or debt issuance costs on certain mortgages payable.
(3)
Represents the GLA and the percentage leased of the commercial portion of the property. Some of our properties include office space which is included in this square footage. Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.
(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)
Portion of property is currently under development. See further discussion in the Assembly Row and Pike & Rose schedules.
(7)
All or a portion of the property is subject to finance lease liabilities.
(8)
On October 11, 2019, we sold this shopping center for $51.3 million, which is included as "assets held for sale" on our consolidated balance sheet.
(9)
This property includes interests in five buildings in addition to our initial acquisition.


23




Federal Realty Investment Trust
 
Retail Leasing Summary (1)
 
September 30, 2019
 
 
 
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
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
3rd Quarter 2019
 
95

 
100
%
 
468,643

 
$
38.93

 
$
36.31

 
$
1,230,724

 
7
%
 
8.9

 
$
21,650,073

 
$
46.20

(7)
2nd Quarter 2019
 
113

 
100
%
 
378,756

 
$
42.68

 
$
39.75

 
$
1,109,393

 
7
%
 
6.8

 
$
12,545,948

 
$
33.12

(7)
1st Quarter 2019
 
72

 
100
%
 
247,331

 
$
45.07

 
$
41.03

 
$
1,000,716

 
10
%
 
7.7

 
$
13,596,205

 
$
54.97

(7)
4th Quarter 2018
 
107

 
100
%
 
573,923

 
$
32.16

 
$
27.96

 
$
2,409,987

 
15
%
 
7.6

 
$
14,280,002

 
$
24.88

(7)
Total - 12 months
 
387

 
100
%
 
1,668,653

 
$
38.36

 
$
34.92

 
$
5,750,820

 
10
%
 
7.8

 
$
62,072,228

 
$
37.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
3rd Quarter 2019
 
52

 
55
%
 
316,916

 
$
32.74

 
$
30.85

 
$
598,230

 
6
%
 
11.0

 
$
21,167,910

 
$
66.79

(7)
2nd Quarter 2019
 
49

 
43
%
 
135,840

 
$
43.21

 
$
37.07

 
$
833,706

 
17
%
 
8.7

 
$
12,059,702

 
$
88.78

(7)
1st Quarter 2019
 
34

 
47
%
 
128,283

 
$
50.56

 
$
43.25

 
$
937,974

 
17
%
 
10.1

 
$
13,443,495

 
$
104.80

(7)
4th Quarter 2018
 
50

 
47
%
 
237,691

 
$
33.94

 
$
25.16

 
$
2,086,574

 
35
%
 
9.2

 
$
13,537,346

 
$
56.95

(7)
Total - 12 months
 
185

 
48
%
 
818,730

 
$
37.62

 
$
32.18

 
$
4,456,484

 
17
%
 
9.9

 
$
60,208,453

 
$
73.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewal Lease Summary - Comparable (2) (8)
 
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
 
Weighted Average Lease Term (5)
 
Tenant Improvements & Incentives (6)
 
Tenant Improvements & Incentives Per Sq. Ft.
 
3rd Quarter 2019
 
43

 
45
%
 
151,727

 
$
51.87

 
$
47.70

 
$
632,494

 
9
%
 
6.1

 
$
482,163

 
$
3.18


2nd Quarter 2019
 
64

 
57
%
 
242,916

 
$
42.38

 
$
41.25

 
$
275,687

 
3
%
 
5.7

 
$
486,246

 
$
2.00


1st Quarter 2019
 
38

 
53
%
 
119,048

 
$
39.16

 
$
38.63

 
$
62,742

 
1
%
 
4.3

 
$
152,710

 
$
1.28

(7)
4th Quarter 2018
 
57

 
53
%
 
336,232

 
$
30.90

 
$
29.93

 
$
323,413

 
3
%
 
6.4

 
$
742,656

 
$
2.21


Total - 12 months
 
202

 
52
%
 
849,923

 
$
39.08

 
$
37.56

 
$
1,294,336

 
4
%
 
5.8

 
$
1,863,775

 
$
2.19


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Lease Summary - Comparable and Non-comparable (2) (9)
 
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 2019
 
 
 
 
 
 
 
 
 
103

 
491,414

 
$
39.73

 
9.1

 
$
22,620,379

 
$
46.03

 
2nd Quarter 2019
 
 
 
 
 
 
 
 
 
115

 
382,656

 
$
42.61

 
6.8

 
$
12,852,603

 
$
33.59

 
1st Quarter 2019
 
 
 
 
 
 
 
 
 
79

 
305,724

 
$
43.28

 
8.0

 
$
14,529,265

 
$
47.52

 
4th Quarter 2018
 
 
 
 
 
 
 
 
 
114

 
622,234

 
$
32.72

 
7.9

 
$
18,728,152

 
$
30.10

 
Total - 12 months
 
 
 
 
 
 
 
 
 
411

 
1,802,028

 
$
38.52

 
8.0

 
$
68,730,399

 
$
38.14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
(1)
Information reflects activity in retail spaces only; office and residential spaces 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 contractual rent for the first 12 months of the term.
(6)
See Glossary of Terms.
(7)
Approximately $7.0 million ($3.21 per square foot) in 3rd Quarter 2019, $4.4 million ($10.25 per square foot) in 2nd Quarter 2019, $3.9 million ($9.59 per square foot) in 1st Quarter 2019, and $4.1 million ($5.48 per square foot) in 4th Quarter 2018 of the Tenant Improvements & Incentives are for properties under active redevelopment and are included in either the Projected Cost for those properties on the Summary of Redevelopment Opportunities or was included in the cost to complete estimate at acquisition.
(8)
Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.
(9)
The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq. Ft. and Weighted Average Lease Term columns include information for leases signed at Phase 2 and Phase 3 of both of our Assembly Row and Pike & Rose projects. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq. Ft. columns do not include the tenant improvements and incentives on leases signed for those projects; these amounts for leases signed for Phase 2 and Phase 3 of Assembly Row and Pike & Rose are included in the Projected Cost column for those projects shown on the Assembly Row and Pike & Rose schedule.


24




Federal Realty Investment Trust
Lease Expirations
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
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)
2019
353,000

2
%
$
12.73

 
283,000

4
%
$
31.44

 
636,000

3
%
$
21.05

2020
1,059,000

7
%
$
19.00

 
809,000

12
%
$
39.35

 
1,868,000

8
%
$
27.81

2021
1,562,000

10
%
$
22.11

 
853,000

12
%
$
43.89

 
2,415,000

11
%
$
29.80

2022
2,015,000

13
%
$
18.31

 
930,000

14
%
$
43.67

 
2,945,000

13
%
$
26.32

2023
1,659,000

11
%
$
21.00

 
866,000

13
%
$
45.79

 
2,525,000

11
%
$
29.50

2024
2,374,000

16
%
$
17.82

 
859,000

12
%
$
45.84

 
3,233,000

15
%
$
25.26

2025
1,209,000

8
%
$
21.16

 
595,000

9
%
$
42.07

 
1,803,000

8
%
$
28.06

2026
641,000

4
%
$
26.62

 
368,000

5
%
$
49.84

 
1,009,000

5
%
$
35.09

2027
821,000

6
%
$
33.63

 
449,000

6
%
$
47.75

 
1,271,000

6
%
$
38.62

2028
771,000

5
%
$
22.01

 
399,000

6
%
$
52.14

 
1,169,000

5
%
$
32.29

Thereafter
2,772,000

18
%
$
21.45

 
452,000

7
%
$
47.97

 
3,224,000

15
%
$
25.17

Total (3)
15,236,000

100
%
$
20.99

 
6,863,000

100
%
$
44.46

 
22,098,000

100
%
$
28.28

 
 
 
 
 
 
 
 
 
 
 
 
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)
2019
353,000

2
%
$
12.73

 
283,000

4
%
$
31.44

 
636,000

3
%
$
21.05

2020
358,000

2
%
$
21.07

 
613,000

9
%
$
38.72

 
971,000

4
%
$
32.22

2021
382,000

2
%
$
20.55

 
505,000

7
%
$
46.90

 
887,000

4
%
$
35.56

2022
268,000

2
%
$
23.25

 
559,000

8
%
$
43.65

 
826,000

4
%
$
37.04

2023
460,000

3
%
$
23.43

 
525,000

8
%
$
42.49

 
985,000

4
%
$
33.58

2024
590,000

4
%
$
22.33

 
432,000

6
%
$
45.47

 
1,023,000

5
%
$
32.11

2025
397,000

3
%
$
20.84

 
409,000

6
%
$
42.44

 
806,000

4
%
$
31.80

2026
481,000

3
%
$
25.62

 
349,000

5
%
$
44.51

 
830,000

4
%
$
33.56

2027
709,000

5
%
$
20.07

 
445,000

7
%
$
45.86

 
1,154,000

5
%
$
30.01

2028
612,000

4
%
$
18.06

 
398,000

6
%
$
48.48

 
1,010,000

4
%
$
30.06

Thereafter
10,626,000

70
%
$
21.07

 
2,345,000

34
%
$
46.85

 
12,970,000

59
%
$
25.73

Total (3)
15,236,000

100
%
$
20.99

 
6,863,000

100
%
$
44.46

 
22,098,000

100
%
$
28.28

 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1)
Anchor is defined as a commercial tenant leasing 10,000 square feet or more.
(2)
Minimum Rent reflects in-place contractual (defined as cash-basis excluding rent abatements) rent as of September 30, 2019.
(3)
Represents occupied square footage of the commercial portion of our portfolio as of September 30, 2019.
(4)
Individual items may not add up to total due to rounding.



25




Federal Realty Investment Trust
 
 
 
 
 
 
 
Portfolio Leased Statistics
 
 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall Portfolio Statistics (1)
At September 30, 2019
 
At September 30, 2018
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Commercial Properties (2) (3) (4) (sf)
23,879,000

22,487,000

94.2
%
 
24,263,000

22,996,000

94.8
%
 
 
 
 
 
 
 
 
Residential Properties (units)
2,665

2,595

97.4
%
 
2,669

2,557

95.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comparable Property Statistics (1)
At September 30, 2019
 
At September 30, 2018
 
 
 
 
 
 
 
 
Type
Size

Leased

Leased %

 
Size

Leased

Leased %

 
 
 
 
 
 
 
 
Commercial Properties (2) (4) (sf)
22,355,000

21,210,000

94.9
%
 
22,367,000

21,354,000

95.5
%
 
 
 
 
 
 
 
 
Residential Properties (units)
1,346

1,311

97.4
%
 
1,350

1,300

96.3
%
 
 
 
 
 
 
 
 

Notes:
(1)
See Glossary of Terms.
(2)
Leasable square feet excludes redevelopment square footage not yet placed in service.
(3)
At September 30, 2019 leased percentage was 97.2% for anchor tenants and 88.1% for small shop tenants.
(4)
Occupied percentage was 92.8% and 93.7% at September 30, 2019 and 2018, respectively, and comparable property occupied percentage was 93.5% and 94.4% at September 30, 2019 and 2018, respectively.



26




Federal Realty Investment Trust
Summary of Top 25 Tenants
September 30, 2019
 
 
 
 
 
 
 
 
 
Rank

 
Tenant Name
Credit Ratings (S&P/Moody's/Fitch) (1)
Annualized Base Rent

Percentage of Total Annualized Base Rent (3)

Tenant GLA

Percentage of Total GLA (3)

Number of Locations Leased

 
 
 
 
 
 
 
 
 
1

 
TJX Companies, The
A+ / A2 / NR
$
18,386,000

2.60
%
991,000

3.75
%
31

2

 
Ahold Delhaize
BBB / Baa1 / BBB+
$
15,766,000

2.23
%
898,000

3.40
%
15

3

 
Gap, Inc., The
BB+ / Baa2 / NR
$
12,716,000

1.80
%
334,000

1.26
%
26

4

 
Bed, Bath & Beyond, Inc.
BB+ / Baa3 / NR
$
11,220,000

1.59
%
643,000

2.43
%
17

5

 
L.A. Fitness International LLC
B+ / B2 / NR
$
11,020,000

1.56
%
465,000

1.76
%
11

6

 
Splunk, Inc.
NR / NR / NR
$
10,902,000

1.54
%
235,000

0.89
%
1

7

 
CVS Corporation
BBB / Baa2 / NR
$
9,554,000

1.35
%
254,000

0.96
%
19

8

 
AMC Entertainment Inc.
B / B2 / NR
$
7,239,000

1.03
%
317,000

1.20
%
6

9

 
Best Buy Co., Inc.
BBB / Baa1 / BBB
$
6,633,000

0.94
%
231,000

0.87
%
5

10

 
Dick's Sporting Goods, Inc.
NR / NR / NR
$
6,425,000

0.91
%
289,000

1.09
%
6

11

 
Hudson's Bay Company (Saks, Lord & Taylor)
B / B3 / NR
$
6,249,000

0.89
%
220,000

0.83
%
4

12

 
Kroger Co., The
BBB / Baa1 / NR
$
6,066,000

0.86
%
529,000

2.00
%
11

13

 
Home Depot, Inc.
A / A2 / A
$
6,014,000

0.85
%
440,000

1.67
%
5

14

 
Bank of America, N.A.
A- / A2 / A+
$
5,974,000

0.85
%
105,000

0.40
%
23

15

 
Michaels Stores, Inc.
BB- / Ba2 / NR
$
5,963,000

0.84
%
310,000

1.17
%
13

16

 
Nordstrom, Inc.
BBB+ / Baa1 / BBB+
$
5,933,000

0.84
%
218,000

0.83
%
6

17

 
Ross Stores, Inc.
A- / A2 / NR
$
5,861,000

0.83
%
291,000

1.10
%
10

18

 
DSW, Inc
NR / NR / NR
$
5,567,000

0.79
%
222,000

0.84
%
11

19

 
Ascena Retail Group, Inc. (Dress Barn, Loft, Lou & Grey, Ann Taylor, Catherine's, Justice, Lane Bryant)
CCC+ / B3 / NR
$
5,495,000

0.78
%
164,000

0.62
%
29

20

 
Ulta Beauty, Inc.
NR / NR / NR
$
5,187,000

0.73
%
150,000

0.57
%
14

21

 
Whole Foods Market, Inc.
A+ / A3 / NR
$
4,772,000

0.68
%
167,000

0.63
%
4

22

 
Barnes & Noble, Inc.
NR / NR / NR
$
4,603,000

0.65
%
207,000

0.78
%
8

23

 
Starbucks Corporation
BBB+ / Baa1 / BBB+
$
4,238,000

0.60
%
68,000

0.26
%
40

24

 
Wells Fargo Bank, N.A.
A- / A2 / A+
$
4,199,000

0.59
%
51,000

0.19
%
16

25

 
AB Acquisition LLC (Acme, Safeway)
B+ / B1 / NR
$
4,192,000

0.59
%
412,000

1.56
%
7

 
 
Totals - Top 25 Tenants
 
$
190,174,000

26.94
%
8,211,000

31.09
%
338

 
 
 
 
 
 
 
 
 
 
 
Total (5):
 
$
705,821,000

(2)
26,408,000

(4)


 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
(1)
 
Credit Ratings are as of September 30, 2019. Subsequent rating changes have not been reflected.
(2)
 
Reflects aggregate, annualized in-place contractual (defined as cash-basis excluding rent abatements) minimum rent for all occupied spaces as of September 30, 2019.
(3)
 
Individual items may not add up to total due to rounding.
(4)
 
Excludes redevelopment square footage not yet placed in service.
(5)
 
Totals reflect both the commercial and residential portions of our properties.



27




Federal Realty Investment Trust
 
 
 
Reconciliation of FFO Guidance
 
 
 
September 30, 2019
 
 
 
 
 
 
 
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2019. Estimates do not include the impact from potential acquisitions or dispositions which have not closed as of October 30, 2019.
 
 
 
 
 
 
 
 
 
Full Year 2019 Guidance Range
 
 
 
Low
 
High
Estimated net income available to common shareholders, per diluted share
$
3.48

 
$
3.54

Adjustments:
 
 
 
Estimated gain on sale of real estate, net
(0.40
)
 
(0.40
)
Estimated depreciation and amortization
3.08

 
3.08

Estimated FFO per diluted share (1)
$
6.16

 
$
6.22


Note:
(1) Estimated FFO per diluted share includes an $11.9 million charge related to the buyout of the Kmart lease at Assembly Square Marketplace. If this charge was excluded, our estimated FFO per diluted share range would be as follows:
 
Low
 
High
Estimated FFO per diluted share
$
6.32

 
$
6.38


See Glossary of Terms. Individual items may not add up to total due to rounding.

28




Glossary of Terms

EBITDA for Real Estate ("EBITDAre"): EBITDAre is a non-GAAP measure that the National Association of Real Estate Investment Trusts ("NAREIT") defines as: net income computed in accordance with GAAP plus net interest expense, income tax expense, depreciation and amortization, gain or loss on sale of real estate, impairments of real estate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We calculate EBITDAre consistent with the NAREIT definition. As EBITDA is a widely known and understood measure of performance, management believes EBITDAre represents an additional non-GAAP performance measure, independent of a company's capital structure, that will provide investors with a uniform basis to measure the enterprise value of a company. EBITDAre also 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 EBITDAre for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands)
Net income
$
67,106

 
$
64,180

 
$
211,576

 
$
192,644

Interest expense
27,052

 
28,166

 
82,567

 
82,116

Other interest income
(389
)
 
(319
)
 
(755
)
 
(657
)
Provision (benefit) for income tax (1)
237

 
(24
)
 
531

 
1,642

Depreciation and amortization
59,648

 
60,778

 
178,327

 
177,269

Gain on sale of real estate
(14,149
)
 
(3,136
)
 
(30,501
)
 
(12,075
)
Adjustments of EBITDAre of unconsolidated affiliates
1,884

 
1,575

 
5,187

 
3,213

EBITDAre (2)
$
141,389

 
$
151,220

 
$
446,932

 
$
444,152

(1) For the three and nine months ended September 30, 2018, the (benefit) provision for income tax primarily relates to condominium sales gains.
(2) Excluding the charge related to the buyout of the Kmart lease at Assembly Square Marketplace, our EBITDAre would have been $153.3 million and $458.8 million, respectively, for the three and nine months ended September 30, 2019.

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization and excluding gains and losses on the sale of real estate or changes in control, net of tax, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. 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.
Overall Portfolio: Includes all operating properties owned in reporting period.
Comparable Properties: Represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. Comparable property growth statistics are calculated on a GAAP basis.
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 and, except for redevelopments, 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. Costs related to redevelopments require judgment by management in determining what reflects base building cost and thus, is not included in the "tenant improvements and incentives" amount.

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