-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GHo2o7QxeStoNYr4Amqba1NQOg6r1kWdUukY1CaLsZNhe8j0h2FJVLLqPmNj1ujI 4uIanMXRxen2iahxAjtxkg== /in/edgar/work/20001103/0000928385-00-002937/0000928385-00-002937.txt : 20001106 0000928385-00-002937.hdr.sgml : 20001106 ACCESSION NUMBER: 0000928385-00-002937 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERAL REALTY INVESTMENT TRUST CENTRAL INDEX KEY: 0000034903 STANDARD INDUSTRIAL CLASSIFICATION: [6798 ] IRS NUMBER: 520782497 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07533 FILM NUMBER: 752543 BUSINESS ADDRESS: STREET 1: 1626 EAST JEFFERSON STREET CITY: ROCKVILLE STATE: MD ZIP: 20852-4041 BUSINESS PHONE: 3019988100 MAIL ADDRESS: STREET 1: 1625 EAST JEFFERSON STREET CITY: ROCKVILLE STATE: MD ZIP: 20852-4041 8-K 1 0001.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) September 30, 2000 Federal Realty Investment Trust ------------------------------- (Exact name of registrant as specified in its charter) Maryland 1-7533 52-0782497 - ---------------------------- ----------- ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1626 East Jefferson Street, Rockville, Maryland 20852-4041 - ----------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code: 301/998-8100 ------------ Exhibit Index appears on Page 3. Item 5. Other Events Federal Realty Investment Trust hereby files as exhibit 99 the following supplemental data pertaining to its portfolio of properties at September 30, 2000. Item 7. Financial Statements and Exhibits (c) Exhibits. 99 Supplemental portfolio information at September 30, 2000 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FEDERAL REALTY INVESTMENT TRUST Date: November 3, 2000 ____________________________________ Cecily A. Ward Vice President, Chief Financial Officer and Treasurer -2- EXHIBIT INDEX Exh No. Exhibit Page No. - ------- ------- -------- 99 Supplemental portfolio information at September 30, 2000 4 -3- EX-99 2 0002.txt SUPPLEMENTAL POSTFOLIO INFORMATION 9-30-2000 FEDERAL REALTY INVESTMENT TRUST Supplemental Information September 30, 2000 TABLE OF CONTENTS 1. Debt Summary............................................................................. E-2 2. Occupancy Percentage Leased................................................................... E-3 Regional Breakdown.................................................................. E-4 3. Leases Signed Analysis Comparable and Non-Comparable....................................................... E-5 4. Street Retail Operating & Development Overview........................................... E-6 5. Development Pipeline..................................................................... E-7 6. Second Quarter Earnings Press Release, November 3, 2000.................................. E-8 7. Glossary of Terms........................................................................ E-11
1626 East Jefferson Street Rockville, Maryland 20852-4041 301/998-8100 FEDERAL REALTY INVESTMENT TRUST DEBT ANALYSIS (excluding capital leases and interest rate swaps) September 30, 2000 - --------------------------------------------------------------------------------
Balance Maturity Rate (in thousands) -------- ---- -------------- Mortgages Leesburg Plaza 10/01/08 6.10% $ 9,900 Federal Plaza 03/10/01 8.95% 26,805 Tysons Station 09/01/01 9.875% 4,009 164 E Houston Street 10/06/08 7.500% 345 Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400 --------- $50,459 =========
On October 23, 2000, the Trust placed a $152 million mortgage on five (5) properties. The mortgage bears interest at 7.95% and matures on November 1, 2015. The mortgage was placed as follows (in thousands): Barracks Road $ 44,300 Hauppauge 16,700 Lawrence Park 31,400 Wildwood 27,600 Wynnewood 32,000 -------- $152,000 ======== Notes payable Revolving credit facilities libor +.80%(b) $186,300 Term note with banks libor +.95%(c) 125,000 Construction loan on Woodmont East {may be extended to 8/29/04} 08/29/02 libor + 1.35% 12,747 Note issued in connection with renovation of Perring Plaza 01/31/13 10.00% 2,528 Note issued in connection with land purchase 08/14/00 libor + 1.5% 3,400 Other various various 116 --------- $330,091 ========= Unsecured Public Debt 5 1/4% Convertible subordinated 04/30/02 5.250% $ 289 debentures 5 1/4% Convertible subordinated 10/28/03 5.250% 75,000 debentures 8% Notes (fixed) 04/21/02 8.000% 25,000 6.625% Notes (fixed) 12/01/05 6.625% 40,000 7.48% Debentures 08/15/26 7.480% 50,000 6.82% Medium Term Notes 08/01/27 6.820% 40,000 6.74% Medium Term Notes (d) 03/10/04 6.370% 39,500 6.99% Medium Term Notes (d) 03/10/06 6.894% 40,500 8.75% Notes 12/01/09 8.750% 175,000 --------- $485,289 ========= Total fixed rate debt $528,992 61.10% Total variable rate debt 336,847 38.90% --------- ------ Total debt $865,839 100.00% ========= ====== Weighted average interest rate: ------------------------------ Fixed rate debt 7.44% Variable on revolving credit facilities and term note 7.01% (e) Variable on muncipal bonds (a)
(a) The bonds bear interest at a variable rate determined weekly to be the interest rate which would enable the bonds to be remarketed at 100% of their principal amount. (b) Effective July 17, 2000 interest rate increased to LIBOR + .80% from LIBOR +.65% (c) Effective July 17, 2000 interest rate increased to LIBOR + .95% from LIBOR +.75% (d) The Trust purchased interest rate swaps or hedges on these notes, thereby decreasing the effective interest. (e) Weighted average interest rate on revolving credit facilities and term note for nine months ended September 30, 2000. Federal Realty Investment Trust Percentage Leased Analysis September 30, 2000 - --------------------------------------------------------------------------------
Overall Operating Occupancy (Quarter to Quarter Analysis) At September 30, 2000 At September 30, 1999 ---------------------------------------- ------------------------------------ Type Size Leased Occupancy Size Leased Occupancy - ---------------------------------- ---------- ---------- ------------- --------- ---------- ----------- Retail Properties (leasable square feet) 13,929,402 13,397,528 96% 14,348,626 13,658,207 95% Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
Overall Operating Occupancy (Rolling 12 Months) At September 30, 2000 At June 30, 2000 ---------------------------------------- ------------------------------------ Type Size Leased Occupancy Size Leased Occupancy - -------------------------- ----------- ---------- ------------- --------- ---------- ----------- Retail Properties (leasable square feet) 13,929,402 13,397,528 96% 14,179,596 13,619,718 96% Rollingwood Apartments (# of units) 282 282 100% 282 276 98% Overall Operating Occupancy (Rolling 12 Months) At March 31, 2000 At December 31, 1999 --------------------------------------- ------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - -------------------------- ----------- ---------- ------------- ---------- ---------- ------------ Retail Properties (leasable square feet) 14,171,079 13,506,203 95% 14,037,093 13,494,066 96% Rollingwood Apartments (# of units) 282 282 100% 282 278 99%
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Same Center Occupancy (Quarter to Quarter Comparison) At September 30, 2000 At September 30, 1999 ------------------------------------ -------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - --------------------------------- ---------- ---------- ----------- ---------- ---------- ---------- Retail Properties (leasable square feet) 13,563,527 13,038,704 96% 13,544,498 13,010,974 96% Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
Same Center Occupancy (Rolling 12 Months) At September 30, 2000 At June 30, 2000 ------------------------------------ -------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------- ---------- ---------- ----------- ----------- ----------- ----------- Retail Properties (leasable square feet) 13,563,527 13,038,704 96% 14,074,930 13,521,971 96% Rollingwood Apartments (# of units) 282 282 100% 282 276 98% Same Center Occupancy (Rolling 12 Months) At March 31, 2000 At December 31, 1999 ---------------------------------- ------------------------------------- Type Size Leased Occupancy Size Leased Occupancy - ------------------------------------- -------- ----------- ---------- --------- ---------- ------------- Retail Properties (leasable square feet) 14,066,413 13,418,914 95% 13,865,499 13,345,911 96% Rollingwood Apartments (# of units) 282 282 100% 282 278 99%
Federal Realty Investment Trust Regional Occupancy Analysis September 30, 2000 ====================================================== Total Square Occupancy Region Footage 09/30/00 - ------------------- ------------ ---------- Northeast 7,058,808 96% Mid-Atlantic 5,914,162 96% West Coast 956,432 97% ====================================================== Total Square Occupancy Region Footage 09/30/00 - ------------------- ----------- ---------- Northeast Anchor 4,282,413 98% Small Shops 2,776,395 92% Mid-Atlantic Anchor 2,765,866 99% Small Shops 3,148,296 94% West Anchor 171,181 100% Small Shops 785,251 97% Federal Realty Investment Trust Retail Leasing Activity September 30, 2000
- ----------------------------------------------------------------------------------------------------------------------------------- Comparable Average Estimated Weighted Average Prior Current Percentage Tenant Number of Square Average Lease Rent Per Rent Per Annualized Increase Improvement Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent over Prior Rent Costs - ------------------ ------------- -------- ------------- ------------ ----------- ---------------- --------------- ------------ 3rd Quarter 2000 52 282,354 10.3 $12.85 $15.29 $ 687,804 19% $ 1,727,000 2nd Quarter 2000 67 214,111 5.8 $16.97 $18.85 $ 402,991 11% $ 866,000 1st Quarter 2000 64 297,054 9.1 $16.38 $18.89 $ 746,945 15% $ 5,128,000 4th Quarter 1999 79 270,278 8.7 $20.14 $24.32 $1,129,625 21% $ 2,710,000 Total 262 1,063,797 8.4 $16.52 $19.31 $2,967,365 17% $10,431,000
Non-Comparable Weighted Estimated Average Annualized Tenant Number of Square Lease Average Rent Current Improvement Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs - ------------------ ------------- ------- ------------ --------------- ---------- ----------- 3rd Quarter 2000 26 138,794 17.0 $30.05 $4,170,745 $ 116,000 2nd Quarter 2000 16 84,287 11.7 $29.37 $2,475,607 $ 248,000 1st Quarter 2000 10 50,126 12.8 $24.07 $1,206,432 $1,026,000 4th Quarter 1999 9 39,545 8.7 $18.13 $ 717,011 $ 389,000 Total 61 312,752 14.4 $27.40 $8,569,795 $1,779,000
Federal Realty Investment Trust Street Retail Operating & Development Overview September 30, 2000
For nine months ended For the year ended December 31, September 30, (in thousands, except sf data) 1996 1997 1998 1999 2000 ----------------------------------------------------------------- Real Estate Assets (1) $ 164,931 $ 288,020 $ 365,874 $ 449,182 $ 546,146 Revenues $ 20,555 $ 31,998 $ 42,643 $ 50,288 $ 41,728 Net Operating Income $ 12,538 $ 20,345 $ 28,660 $ 34,774 $ 29,837 Square Feet (2) 1,123,000 1,503,000 1,602,000 1,692,000 1,781,000
(1) At September 30, 2000, includes $146 million related to new development in process. The balance is comprised of both stabilized assets and assets which are in various stages of redevelopment. (2) Excludes new development square footage NORTHEAST Square Feet MID-ATLANTIC Square Feet Connecticut Virginia Greenwich Avenue/4 81,000 Pentagon Row N/A (2) West Hartford/7 125,000 Village at Shirlington 203,000 Westport/2 26,000 WESTERN Massachusetts Arizona Coolidge Corner/1 13,000 Mill Avenue/2 40,000 New Jersey California Central Avenue/1 11,000 Colorado Boulevard/2 69,000 Fifth Avenue/5 67,000 New York Hermosa Beach/1 25,000 Forest Hills/4 91,000 Post Street/1 99,000 Old Town Center 101,000 Santana Row N/A (2) MID-ATLANTIC Third Street Promenade/8 169,000 District of Columbia Hollywood Blvd./3 199,000 Sam's Park N Shop 50,000 214 Wilshire Blvd 29,000 Illinois Florida Evanston/2 19,000 Winter Park/2 28,000 Oak Street/1 5,000 Maryland Texas Bethesda Row 331,000 (2) Houston Street/11 N/A (2) FEDERAL REALTY INVESTMENT TRUST Development Pipeline September 30, 2000
Total Expected Cost Estimate To Complete Completed Stabilized Principal Project Specifications To Date 2000 2001 Cost Return Tenants - ------------------------------------------------------------------------------------------------------------------------- ($ i n m i l l i o n s) DEVELOPMENT IN PROGRESS Bethesda Row - Woodmont East 52,000 sf retail $ 22 $ 6 $ 4 $ 32 11.0% Angelo & Maxi Bethesda, Maryland 78,000 sf office Landmark Theatres Jaleo Restaurant OpNet Technologies Pentagon Row 300,000 sf retail (1) $ 29 $ 15 $ 27 $ 71 10.5% Harris Teeter Arlington, Virginia 500 apartment units Bed, Bath & Beyond ---- ----- ----- ----- Bally's Fitness $ 51 $ 21 $ 31 $ 103 Hudson Trail Outfitters
- -------------------------------------------------------------------------------- FUTURE DEVELOPMENT Santana Row 710,000 sf retail $ 81 San Jose, California 1,300 residential units 200 hotel rooms (2) (Full Entitlements) The Shops at Tanasbourne 400,000 sf retail $ 13 Portland, Oregon 12,000 sf office Lindbergh City Center 300,000 sf retail (1) $ 1 Atlanta, Georgia 320 apartments 120 hotel rooms 290 condominiums 1.3 million sf office ----- $ 95 - -------------------------------------------------------------------------------- Total New Development and Construction in Progress $146 ==== (1) Federal Realty will develop only the retail component of this project. (2) Federal Realty will not develop the hotel component of this project. (3) Does not include redevelopment projects, such as Houston Street. Contact: Kris Warner Director, Corporate Communications 301/998-8212 FOR IMMEDIATE RELEASE November 3, 2000 FEDERAL REALTY INVESTMENT TRUST ANNOUNCES THIRD QUARTER 2000 OPERATING RESULTS -Trust Shows an 8% increase in FFO per Share- Rockville, MD (November 3, 2000) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for the third quarter ended September 30, 2000. . Funds from operations increased 8% to $.65 per common share . 96% occupancy for overall portfolio . $152 million raised in mortgage financing Financial Results - ----------------- For the quarter ended September 30, 2000 funds from operations increased 6% to $25.8 million from $24.4 million in the third quarter of 1999. On a per share basis, funds from operations rose 8% to $.65 in the third quarter of 2000 from $.60 in the third quarter of 1999. Funds from operations also improved for the first nine months of 2000 increasing 6% to $76.5 million from $72.3 million in the first nine months of 1999. On a per share basis, funds from operations advanced 7% to $1.91 per share for the first nine months of 2000 compared to $1.78 for the comparable period of 1999. Increases from the core operating portfolio, bolstered by recently redeveloped and re-tenanted properties, and a decrease in administrative expense more than offset increased interest costs. "Cash flow from our operating portfolio continues to improve with higher rents and improved occupancy driving results" said Steven J. Guttman, president and chief executive officer. "The strength and quality of our core portfolio continues to serve as an excellent foundation as we execute our mixed-use development strategy." Portfolio Results - ----------------- During the quarter, more than 470,000 square feet of retail, office and residential space was leased. On a comparable space basis, 282,000 square feet of retail leases were signed during the quarter at an average rental increase of 19% over the prior leases. The average rent on new retail leases was $15.29 per square foot compared to $12.85 for the previous leases. Overall occupancy increased to 96.2% at September 30, 2000 vs. 95.2% at September 30, 1999. On a same center basis, occupancy remained high at 96.1% at September 30, 2000 and 1999. Rental income increased 3% to $64.1 million in 2000 from $62.0 million in 1999 and net operating income increased 2% to $48.8 million in 2000 from $47.8 million in 1999. On a same center basis, which removes the effect of property dispositions, rental income increased 7% and net operating income including interest income, increased 5.8%, primarily due to recently re-developed and re- tenanted properties. Development Activities - ---------------------- At Bethesda Row, the 130,000 square foot Woodmont East building, which is phase IV of a master plan development, is nearing completion on time and on budget. Grand opening is anticipated for spring 2001. In Arlington, Virginia, construction continues on Pentagon Row with the first buildings anticipated to open during the first quarter of 2001 with full retail occupancy by the end of 2001. Pentagon Row is presently 88% pre-leased, including leases out for signature. At Santana Row in San Jose, California, demolition of the existing structure is now complete. Site work is currently underway to prepare for construction as the Trust is working with a number of lenders to finalize construction financing for Santana Row. Leasing activity is proceeding as interest continues to be strong from national and local retailers. Financing Activities - -------------------- On October 23, 2000, Federal Realty closed a $152 million mortgage secured by five shopping center properties bearing interest at 7.95%. Proceeds from the financing were used to pay down the Trust's existing unsecured revolving credit facility, thereby providing additional funds for the Trust's development pipeline. Conference Call - --------------- Federal Realty's third quarter conference call is scheduled for 11:00 a.m. Monday November 6, 2000. Please call 719/457-2661 5-10 minutes prior to the start time. Federal Realty will also provide an online Web Simulcast on the company's web site, www.federalrealty.com. For those interested parties who are --------------------- unable to participate in the conference call, a re-broadcast will be available online at www.federalrealty.com beginning at 2:00 p.m. on November 6. A --------------------- telephone recording of the call can also be heard by dialing 719/457-0820. The pass-code for this replay is 532591. Federal Realty is an equity real estate investment trust specializing in the ownership, management, development and redevelopment of prime retail and urban mixed-use districts. The Trust's real estate portfolio contains more than 120 properties consisting of community and neighborhood shopping centers, urban mixed-use main street retail and apartment properties located in strategic metropolitan markets across the United States. These markets include Boston, New York, Philadelphia, Washington D.C., Chicago, San Antonio, Portland, San Francisco, Los Angeles, San Jose and San Diego. The Trust is nationally recognized for both its main street revitalization and value-added urban development programs. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962 and has increased its dividend rate for 33 consecutive years. Shares of the Trust are traded on the New York Stock Exchange under the symbol:FRT. Certain matters discussed within this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Federal Realty Investment Trust believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors of a general nature that could cause actual results to differ materially from Federal's expectations are detailed from time to time in the company's SEC reports and filings, including its annual report on Form 10-K. Federal assumes no obligation to update or supplement forward looking statements that become untrue because of subsequent events. Financial Highlights (in thousands, except per share data) ( unaudited)
Three Months Ended Nine Months Ended September 30, September 30, OPERATING RESULTS 2000 1999 2000 1999 - ----------------- ---- ---- ---- ---- Revenues Rental income $ 64,101 $ 61,971 $ 192,584 $ 181,078 Other property income 2,683 3,349 8,148 8,176 Interest and other income 1,797 1,935 5,759 5,779 --------- --------- ----------- ---------- 68,581 67,255 206,491 195,033 Expenses Rental 13,015 12,950 41,057 39,054 Real estate taxes 6,741 6,477 19,720 18,344 Interest 15,992 14,989 49,521 45,507 Administrative 3,245 5,474 9,035 10,888 Depreciation and amortization 13,440 12,381 39,433 37,313 --------- --------- ----------- ---------- 52,433 52,271 158,766 151,106 --------- --------- ----------- ---------- Operating income before investors' share of operations 16,148 14,984 47,725 43,927 Investor's share of operations (1,727) (798) (4,772) (2,322) --------- --------- ----------- ---------- Income before gain (loss) on sale of real estate 14,421 14,186 42,953 41,605 Gain (Loss) on sale of real estate - - 3,681 (7,050) --------- --------- ----------- ---------- Net Income $ 14,421 $ 14,186 $ 46,634 $ 34,555 Dividends on preferred stock (1,988) (1,988) (5,963) (5,963) --------- --------- ----------- ---------- Net income available for common shareholders $ 12,433 $ 12,198 $ 40,671 $ 28,592 ========= ========= =========== ========== Earnings per common share, basic $ 0.32 $ 0.31 $ 1.05 $ 0.72 ========= ========= =========== ========== Earnings per common share, diluted $ 0.32 $ 0.30 $ 1.04 $ 0.72 ========= ========= =========== ========== Weighted average shares outstanding, basic 38,695 39,634 38,812 39,534 Weighted average shares outstanding, diluted 39,774 40,701 39,949 40,639 Funds from Operations Net income available for common shareholders $ 12,433 $ 12,198 $ 40,671 $ 28,592 Add: (gain) loss on sale of real estate 0 0 (3,681) 7,050 Add: depreciation and amortization of real estate assets 12,229 11,232 35,852 33,849 Add: amortization of initial direct costs of leases 897 775 2,597 2,235 Add: income attributable to operating partnership units 278 191 1,022 552 --------- --------- ----------- ---------- Funds from operations $ 25,837 $ 24,396 $ 76,461 $ 72,278 ========= ========= =========== ========== Funds from operations per share, diluted $ 0.65 $ 0.60 $ 1.91 $ 1.78 ========= ========= =========== ==========
September 30, December 31, 2000 1999 ---- ---- BALANCE SHEET DATA - ------------------ Assets Real estate, at cost $ 1,804,186 $1,721,459 Accumulated depreciation and amortization (349,822) (317,921) ----------- ---------- 1,454,364 1,403,538 Mortgage notes receivable 46,089 53,495 Cash and investments 13,726 11,738 Receivables 20,585 23,130 Other assets 44,275 42,147 ----------- ---------- Total assets $ 1,579,039 $1,534,048 =========== ========== Liabilities and Shareholders' Equity Obligations under capital leases & mortgages payable $ 172,178 $ 172,573 Notes payable 330,091 162,768 Senior Notes 410,000 510,000 5 1/4% Convertible subordinated debentures 75,289 75,289 Other liabilities 117,966 111,591 Shareholders' Equity 473,515 501,827 ------------ ----------- $ 1,579,039 $ 1,534,048 ============ ===========
Glossary of Terms Average occupancy costs: Includes rent, common area maintenance expense, real estate taxes, merchant association dues and other charges Economic occupancy: The square footage generating rental income expressed as a percentage of its total rentable square feet. Leases signed - comparable: Represents leases signed on spaces for which there was a former tenant. Leases signed - noncomparable: Represents leases signed on spaces for which there was no previous tenant, i.e. expansion space or space that was previously non-leasable. Leases signed - prior rent: Total rent paid by the previous tenant; includes minimum and percentage rent. Net Operating Income: Gross revenues, including interest income, less rental expenses and real estate taxes. Occupancy: The currently leased portion of a property expressed as a percentage of its total rentable square feet; includes square feet covered by leases for stores not yet opened. Overall occupancy: Occupancy for the entire portfolio -- includes all operating properties owned in reporting period. Same center occupancy: Occupancy for only those properties owned and operating in the periods being compared. Excludes centers purchased or sold as well as properties under redevelopment and development. Tenant improvement costs: Represents the total dollars committed for the improvement (fit-out) of a space as relates to a specific lease. The amounts shown represent not only the estimated cost to fit-out the tenant space, but may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. -----END PRIVACY-ENHANCED MESSAGE-----