ROCKVILLE, Md., Nov. 4 /PRNewswire-FirstCall/ -- Federal Realty
Investment Trust (NYSE:FRT) today reported operating results for
its third quarter ended September 30, 2009. Financial Results For
third quarter 2009 Federal Realty reported funds from operations
available for common shareholders (FFO) of $55.6 million, or $0.92
per diluted share, compared to FFO of $58.1 million or $0.98 per
diluted share for the third quarter 2008. For the quarter ending
September 30, 2009, net income available for common shareholders
was $27.3 million, or earnings per diluted share of $0.45, versus
$37.0 million and $0.63, respectively, for third quarter 2008.
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For the nine months ended September 30, 2009, Federal Realty
reported FFO of $151.0 million, or $2.53 per diluted share, and net
income available for common shareholders of $65.9 million, or
earnings per diluted share of $1.10. Excluding the litigation
provision related to a previously disclosed lawsuit involving a
property adjacent to Santana Row, year-to-date FFO was $172.0
million, or $2.88 per diluted share, and net income available for
common shareholders was $87.0 million, or $1.46 per diluted share.
For the nine months ended September 30, 2008, the Trust reported
FFO of $169.8 million, or $2.87 per diluted share, and net income
available for common shareholders of $95.7 million or $1.62 per
diluted share. FFO is a non-GAAP supplemental earnings measure
which the Trust considers meaningful in measuring its operating
performance. A reconciliation of FFO to net income attributable to
the Trust is attached to this press release. Portfolio Results In
third quarter 2009, same-center property operating income increased
2.6% over third quarter 2008. When redevelopment and expansion
properties are excluded from same-center results, property
operating income for third quarter 2009 increased 1.8% compared to
third quarter 2008. The overall portfolio was 94.2% leased as of
September 30, 2009, compared to 94.0% on June 30, 2009 and 95.5% on
September 30, 2008. Federal Realty's same-center portfolio was
94.4% leased on September 30, 2009, compared to 94.2% on June 30,
2009 and 95.8% on September 30, 2008. During the third quarter of
2009, Federal Realty signed 94 leases for 357,000 square feet of
retail space. On a comparable space basis (i.e., spaces for which
there was a former tenant), the Trust leased 335,000 square feet at
an average cash-basis contractual rent increase per square foot
(i.e., excluding the impact of straight-line rents) of 9%. The
average contractual rent on this comparable space for the first
year of the new leases is $29.38 per square foot, compared to the
average contractual rent of $27.00 per square foot for the last
year of the prior leases. The previous average contractual rent was
calculated by including both the minimum rent and any percentage
rent actually paid during the last year of the lease term for the
re-leased space. On a GAAP basis (i.e., including the impact of
straight-line rents), rent increases per square foot for comparable
retail space averaged 17% for third quarter 2009. As of September
30, 2009, Federal Realty's average contractual, cash basis minimum
rent for retail and commercial space in its portfolio was $22.01
per square foot. "Our 2009 results and outlook for 2010 reflect
consistent performance during this challenging economic
environment," said Don Wood, president and chief executive officer
of Federal Realty Investment Trust. "This level of stability is a
testament to the quality of our assets, our locations, and our
focused operating strategy." Regular Quarterly Dividends Federal
Realty also announced today that its Board of Trustees left the
regular dividend rate on its common shares unchanged, declaring a
regular quarterly cash dividend of $0.66 per share on its common
shares, resulting in an indicated annual rate of $2.64 per share.
The regular common dividend will be payable in cash on January 15,
2010 to common shareholders of record on January 4, 2010. Guidance
Federal Realty increased its guidance, excluding the provision for
litigation, for 2009 FFO per diluted share to a range of $3.75 to
$3.77 and 2009 earnings per diluted share guidance of $1.87 to
$1.89. The Trust also established guidance for 2010 FFO per diluted
share at a range of $3.80 to $3.88 and 2010 earnings per diluted
share guidance of $1.92 to $2.00. Summary of Other Quarterly
Activities and Recent Developments -- October 19, 2009 - Completed
the land exchange between Swedish home furnishings retailer IKEA
and Federal Realty at Assembly Square in Somerville, Mass. As a
result of the exchange, Federal Realty now owns an additional 16.6
acres of riverfront property for the proposed development of
Assembly Square, while IKEA owns an 11.9 acre inland site approved
for a 340,000-square-foot store. -- October 1, 2009 - Announced
that Don Briggs, senior vice president, development, would become
head of the Trust's Boston office effective October 5. Mr. Briggs
has led Federal Realty's development efforts with respect to
Assembly Square, in Somerville, Mass. since the Trust acquired the
property in 2005 and will continue to be responsible for all
aspects of the development of Assembly Square. In addition, Mr.
Briggs will take on operational responsibilities for Federal
Realty's 2 million square foot portfolio in New England. -- August
17, 2009 - Announced the closing of $265 million of capital raising
activities, comprised of $150 million of 5.95% five-year senior
unsecured notes and $115 million of common shares of beneficial
interest, including the underwriters' over-allotment option.
Federal Realty intends to utilize the proceeds to pursue
acquisition opportunities, fund its redevelopment pipeline, pay
down its $372 million term loan, and/or for general corporate
purposes. Conference Call Information Federal Realty's management
team will present an in-depth discussion of the Trust's operating
performance on its third quarter 2009 earnings conference call,
which is scheduled for November 5, 2009, at 11 a.m. Eastern
Standard Time. To participate, please call (866) 761-0748 five to
ten minutes prior to the call start time and use the passcode FRT
EARNINGS (required). Federal Realty will also provide an online
webcast on the Company's web site, http://www.federalrealty.com/,
which will remain available for 30 days following the call. A
telephone recording of the call will also be available through
December 3, 2009, by dialing (888) 286-8010 and using the passcode
40216191. About Federal Realty Federal Realty Investment Trust is
an equity real estate investment trust specializing in the
ownership, management and redevelopment of high quality retail
assets. Federal Realty's portfolio (excluding joint venture
properties) contains approximately 18.2 million square feet located
primarily in strategically selected metropolitan markets in the
Northeast, Mid-Atlantic, and California. In addition, the Trust has
an ownership interest in approximately 1.0 million square feet of
retail space through a joint venture in which the Trust has a 30%
interest. Our operating portfolio (excluding joint venture
properties) was 94.2% leased to national, regional, and local
retailers as of September 30, 2009, with no single tenant
accounting for more than approximately 2.6% of annualized base
rent. Federal Realty has paid quarterly dividends to its
shareholders continuously since its founding in 1962, and has
increased its dividend rate for 42 consecutive years, the longest
record in the REIT industry. Federal Realty is an S&P MidCap
400 company and its shares are traded on the NYSE under the symbol
FRT. For more information, please visit
http://www.federalrealty.com/. Safe Harbor Language Certain matters
discussed within this press release may be deemed to be
forward-looking statements within the meaning of the federal
securities laws. Although Federal Realty believes the expectations
reflected in the forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. These factors include, but are not limited to, the risk
factors described in our Annual Report on Form 10-K filed on
February 26, 2009 and amended on June 25, 2009, and include the
following: -- risks that our tenants will not pay rent, may vacate
early or may file for bankruptcy or that we may be unable to renew
leases or re-let space at favorable rents as leases expire; --
risks that we may not be able to proceed with or obtain necessary
approvals for any redevelopment or renovation project, and that
completion of anticipated or ongoing property redevelopments or
renovations may cost more, take more time to complete, or fail to
perform as expected; -- risks that the number of properties we
acquire for our own account, and therefore the amount of capital we
invest in acquisitions, may be impacted by our real estate
partnership; -- risks normally associated with the real estate
industry, including risks that occupancy levels at our properties
and the amount of rent that we receive from our properties may be
lower than expected, that new acquisitions may fail to perform as
expected, that competition for acquisitions could result in
increased prices for acquisitions, that environmental issues may
develop at our properties and result in unanticipated costs, and,
because real estate is illiquid, that we may not be able to sell
properties when appropriate; -- risks that our growth will be
limited if we cannot obtain additional capital; -- risks of
financing, such as our ability to consummate additional financings
or obtain replacement financing on terms which are acceptable to
us, our ability to meet existing financial covenants and the
limitations imposed on our operations by those covenants, and the
possibility of increases in interest rates that would result in
increased interest expense; and -- risks related to our status as a
real estate investment trust, commonly referred to as a REIT, for
federal income tax purposes, such as the existence of complex tax
regulations relating to our status as a REIT, the effect of future
changes in REIT requirements as a result of new legislation, and
the adverse consequences of the failure to qualify as a REIT. Given
these uncertainties, readers are cautioned not to place undue
reliance on any forward-looking statements that we make, including
those in this press release. Except as may be required by law, we
make no promise to update any of the forward-looking statements as
a result of new information, future events or otherwise. You should
carefully review the risks and risk factors included in our Annual
Report on Form 10-K filed February 26, 2009 and amended on June 25,
2009. Investor and Media Inquiries Gina Birdsall Janelle Stevenson
Investor Relations Corporate Communications 301/998-8265
301/998-8185 Federal Realty Investment Trust Summarized Balance
Sheets September 30, 2009 September 30, December 31, 2009 2008 ----
---- (in thousands) ASSETS (unaudited) Real estate, at cost
Operating $3,643,592 $3,567,035 Construction-in-progress 84,172
106,650 ------ ------- 3,727,764 3,673,685 Less accumulated
depreciation and amortization (913,939) (846,258) -------- --------
Net real estate 2,813,825 2,827,427 Cash and cash equivalents
408,428 15,223 Accounts and notes receivable 72,188 73,688 Mortgage
notes receivable 48,401 45,780 Investment in real estate
partnership 28,826 29,252 Prepaid expenses and other assets 108,617
101,406 ------- ------- TOTAL ASSETS $3,480,285 $3,092,776
========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities Mortgages payable and capital lease obligations
$604,613 $452,810 Notes payable 383,788 336,391 Senior notes and
debentures 1,053,816 956,584 Accounts payable and other liabilities
223,803 200,037 ------- ------- Total liabilities 2,266,020
1,945,822 Shareholders' equity Preferred stock 9,997 9,997 Common
shares and other shareholders' equity 1,172,423 1,104,605 ---------
--------- Total shareholders' equity of the Trust 1,182,420
1,114,602 Noncontrolling interest 31,845 32,352 ------ ------ Total
shareholders' equity 1,214,265 1,146,954 --------- --------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $3,480,285 $3,092,776
========== ========== Federal Realty Investment Trust Summarized
Income Statements September 30, 2009 Three months ended Nine months
ended September 30, September 30, 2009 2008 2009 2008 ---- ----
---- ---- (in thousands, except per share data) (unaudited) Revenue
Rental income $126,169 $126,594 $379,465 $371,304 Other property
income 3,714 4,005 9,258 12,015 Mortgage interest income 1,109
1,108 3,683 3,342 ----- ----- ----- ----- Total revenue 130,992
131,707 392,406 386,661 ------- ------- ------- ------- Expenses
Rental expenses 24,367 27,547 78,144 80,993 Real estate taxes
14,485 14,692 43,138 41,132 General and administrative 5,749 5,391
16,170 19,451 Litigation provision 330 - 21,087 - Depreciation and
amortization 28,410 28,631 86,635 81,805 ------ ------ ------
------ Total operating expenses 73,341 76,261 245,174 223,381
------ ------ ------- ------- Operating income 57,651 55,446
147,232 163,280 Other interest income 924 115 1,274 662 Interest
expense (30,209) (25,337) (79,622) (74,166) Early extinguishment of
senior notes - - (968) - Income from real estate partnership 473
407 1,074 1,180 --- --- ----- ----- Income from continuing
operations 28,839 30,631 68,990 90,956 Discontinued operations
Income from discontinued operations - 348 218 1,724 Gain on sale of
real estate from discontinued operations - 7,438 1,298 7,438 -
----- ----- ----- Results from discontinued operations - 7,786
1,516 9,162 --- ----- ----- ----- Net income 28,839 38,417 70,506
100,118 Net income attributable to noncontrolling interests (1,406)
(1,315) (4,172) (4,056) ------ ------ ------ ------ Net income
attributable to the Trust 27,433 37,102 66,334 96,062 Dividends on
preferred stock (136) (136) (406) (406) ---- ---- ---- ---- Net
income available for common shareholders $27,297 $36,966 $65,928
$95,656 ======= ======= ======= ======= EARNINGS PER COMMON SHARE,
BASIC Continuing operations $0.45 $0.50 $1.08 $1.47 Discontinued
operations - 0.13 0.03 0.16 - ---- ---- ---- $0.45 $0.63 $1.11
$1.63 ===== ===== ===== ===== Weighted average number of common
shares, basic 60,016 58,720 59,264 58,624 ====== ====== ======
====== EARNINGS PER COMMON SHARE, DILUTED Continuing operations
$0.45 $0.50 $1.07 $1.46 Discontinued operations - 0.13 0.03 0.16 -
---- ---- ---- $0.45 $0.63 $1.10 $1.62 ===== ===== ===== =====
Weighted average number of common shares, diluted 60,140 58,921
59,387 58,873 ====== ====== ====== ====== Federal Realty Investment
Trust Funds From Operations September 30, 2009 Three months ended
Nine months ended September 30, September 30, 2009 2008 2009 2008
---- ---- ---- ---- (in thousands, except per share data) Funds
from Operations available for common shareholders (FFO) (1)
---------------------------------- Net income attributable to the
Trust $27,433 $37,102 $66,334 $96,062 Gain on sale of real estate -
(7,438) (1,298) (7,438) Depreciation and amortization of real
estate assets 25,682 26,037 77,681 74,037 Amortization of initial
direct costs of leases 2,196 2,136 7,378 6,441 Depreciation of
joint venture real estate assets 355 331 1,046 992 --- --- -----
--- Funds from operations 55,666 58,168 151,141 170,094 Dividends
on preferred stock (136) (136) (406) (406) Income attributable to
operating partnership units 245 244 729 707 Income attributable to
unvested shares (180) (198) (494) (584) ---- ---- ---- ---- FFO (2)
55,595 58,078 150,970 169,811 Litigation provision, net of
allocation to unvested shares (2) 329 - 21,018 - --- --- ------ ---
FFO excluding litigation provision (2) $55,924 $58,078 $171,988
$169,811 ======= ======= ======== ======== FFO per diluted share
(3) $0.92 $0.98 $2.53 $2.87 Litigation provision per diluted share
(2) - - 0.35 - --- --- ---- --- FFO per diluted share excluding
litigation provision (2)(3) $0.92 $0.98 $2.88 $2.87 ===== =====
===== ===== Weighted average number of common shares, diluted
60,511 59,298 59,759 59,251 ====== ====== ====== ====== Notes:
------ (1) See Glossary of Terms. (2) For the three and nine months
ended September 30, 2009, FFO includes a $0.3 million and a $21.1
million, respectively, charge for litigation regarding a parcel of
land located adjacent to Santana Row as well as other costs related
to the litigation and appeal process. FFO excluding litigation
provision excludes this charge. (3) Effective January 1, 2009, we
adopted a new accounting standard which requires us to calculate
FFO per diluted share for all periods presented using the two-class
method. The implementation resulted in no change to FFO per share
for the three and nine months ended September 30, 2008. Federal
Realty Investment Trust Reconciliation of Net Income to FFO
Guidance September 30, 2009 2009 Guidance ------------- (Dollars in
millions except per share amounts) (1) Funds from Operations
available for common shareholders (FFO)
------------------------------------------ Net income attributable
to the Trust $92 $93 Gain on sale of real estate (1) (1)
Depreciation and amortization of real estate & real estate
partnership assets 105 105 Amortization of initial direct costs of
leases 9 9 - - Funds from operations 205 206 Dividends on preferred
stock (1) (1) Income attributable to operating partnership units 1
1 Income attributable to unvested shares (1) (1) -- -- FFO 204 206
Litigation provision (2) 21 21 -- -- FFO excluding litigation
provision $226 $227 ==== ==== Weighted average number of common
shares, diluted 60.2 60.2 FFO per diluted share $3.40 $3.42
Litigation provision (2) 0.35 0.35 ---- ---- FFO per diluted share
excluding litigation provision $3.75 $3.77 ===== ===== 2010
Guidance ------------- (Dollars in millions except per share
amounts) (1) Funds from Operations available for common
shareholders (FFO) ------------------------------------------ Net
income attributable to the Trust $118 $123 Gain on sale of real
estate - - Depreciation and amortization of real estate & real
estate partnership assets 107 107 Amortization of initial direct
costs of leases 9 9 - - Funds from operations 234 239 Dividends on
preferred stock (1) (1) Income attributable to operating
partnership units 1 1 Income attributable to unvested shares (1)
(1) -- -- FFO 233 238 Litigation provision (2) 1 1 - - FFO
excluding litigation provision $234 $239 ==== ==== Weighted average
number of common shares, diluted 61.6 61.6 FFO per diluted share
$3.79 $3.87 Litigation provision (2) 0.01 0.01 ---- ---- FFO per
diluted share excluding litigation provision $3.80 $3.88 =====
===== Notes: ------ (1) Individual items may not add up to total
due to rounding. (2) Amount represents a charge for litigation
regarding a parcel of land located adjacent to Santana Row as well
as other costs related to the litigation and appeal process.
http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO
http://photoarchive.ap.org/ DATASOURCE: Federal Realty Investment
Trust CONTACT: Gina Birdsall, Investor Relations, +1-301-998-8265,
; or Janelle Stevenson, Corporate Communications, +1-301-998-8185,
Web Site: http://www.federalrealty.com/
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