FEDERAL REALTY INVESTMENT TRUST 
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-- Funds from operations available for common shareholders (FFO) per
diluted share was
-- FFO per diluted share was
-- Same-center property operating income for second quarter 2008 increased 4.1% including redevelopments and expansions, and 3.6% excluding redevelopments and expansions, over second quarter 2007.
-- Rent increases on lease rollovers of comparable retail space for second quarter 2008 were 25% on a cash-basis and 42% on a GAAP-basis.
-- Federal Realty increased its common dividend for the 41st consecutive
year from an annualized rate of
-- Guidance for 2008 FFO per diluted share was narrowed to $3.89 to $3.92.
Financial Results
In second quarter 2008, Federal Realty generated FFO of
Net income available for common shareholders was
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO and FFO per diluted share to net income is attached to this press release.
Portfolio Results
In second quarter 2008, same-center property operating income, including redevelopment and expansion properties, increased 4.1% over second quarter 2007. When redevelopment and expansion properties are excluded from same-center results, property operating income for second quarter 2008 increased 3.6% compared to second quarter 2007.
The Trust's overall portfolio was 95.8% leased as of
During second quarter 2008, the Trust signed 90 leases for 253,000 square
feet of retail space. On a comparable space basis (i.e., spaces for which
there was a former tenant), the Trust leased 239,000 square feet at an average
cash-basis contractual rent increase per square foot (i.e., excluding the
impact of straight-line rents) of 25%. The average contractual rent on this
comparable space for the first year of the new lease is
"The performance of our portfolio reflects continued demand by tenants for
high quality assets in our strong retail locations, despite the inevitable
impact of these difficult economic conditions," commented
Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees increased
the regular dividend on its common shares, declaring a regular quarterly cash
dividend of
"We are pleased to be able to increase our common dividend for the 41st
consecutive year, particularly given the current economic environment," stated
Guidance
Federal Realty narrowed its guidance range for 2008 FFO per diluted share
to
Summary of Other Quarterly Activities and Recent Developments
--
Conference Call Information
Federal Realty's management team will present an in-depth discussion of
the Trust's operating performance on its second quarter earnings conference
call, which is scheduled for
About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust
specializing in the ownership, management, development, and redevelopment of
high quality retail assets. Federal Realty's portfolio (excluding joint
venture properties) contains approximately 18.4 million square feet located
primarily in strategically selected metropolitan markets in the Northeast,
Mid-Atlantic and
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
-- risks that our tenants will not pay rent or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
-- risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovations may cost more, take more time to complete, or fail to perform as expected;
-- risks that the number of properties we acquire for our own account, and therefore the amount of capital we invest in acquisitions, may be impacted by our real estate partnership;
-- risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
-- risks that our growth will be limited if we cannot obtain additional capital;
-- risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to 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
Investor and Media Inquiries
Andrew Blocher Gina Birdsall
Senior Vice President, Investor Relations Coordinator
Capital Markets and Investor Relations 301/998-8265
301/998-8166 gbirdsall@federalrealty.com
ablocher@federalrealty.com
Federal Realty Investment Trust
Summarized Balance Sheets
June 30, 2008
June 30, December 31,
2008 2007
(in thousands)
ASSETS (unaudited)
Real estate, at cost
Operating $3,458,460 $3,304,922
Construction-in-progress 110,929 147,925
3,569,389 3,452,847
Less accumulated depreciation and
amortization (801,752) (756,703)
Net real estate 2,767,637 2,696,144
Cash and cash equivalents 20,281 50,691
Accounts and notes receivable 66,431 61,108
Mortgage notes receivable 40,488 40,638
Investment in real estate partnership 29,400 29,646
Prepaid expenses and other assets 102,310 111,070
TOTAL ASSETS $3,026,547 $2,989,297
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable and capital lease
obligations $446,531 $450,084
Notes payable 241,933 210,820
Senior notes and debentures 977,470 977,556
Accounts payable and other
liabilities 217,332 204,387
Total liabilities 1,883,266 1,842,847
Minority interests 32,037 31,818
Shareholders' equity
Preferred stock 9,997 9,997
Common shares and other
shareholders' equity 1,101,247 1,104,635
Total shareholders' equity 1,111,244 1,114,632
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $3,026,547 $2,989,297
Federal Realty Investment Trust
Summarized Income Statements
June 30, 2008
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
(in thousands, except per share data)
(unaudited)
Revenue
Rental income $123,952 $115,281 $246,673 $227,045
Other property income 4,624 2,546 8,010 4,916
Mortgage interest income 1,118 1,127 2,234 2,257
Total revenue 129,694 118,954 256,917 234,218
Expenses
Rental expenses 26,306 23,501 53,633 47,799
Real estate taxes 14,346 11,215 26,909 21,783
General and administrative 7,039 6,114 13,973 11,722
Depreciation and amortization 27,795 25,493 53,195 50,405
Total operating expenses 75,486 66,323 147,710 131,709
Operating income 54,208 52,631 109,207 102,509
Other interest income 209 207 550 432
Interest expense (24,476) (28,178) (48,829) (55,515)
Income from real estate
partnership 442 363 773 647
Income from continuing operations
before minority interests 30,383 25,023 61,701 48,073
Minority interests (1,409) (1,384) (2,741) (2,681)
Income from continuing operations 28,974 23,639 58,960 45,392
Discontinued operations
Income from discontinued
operations - 1,230 - 2,613
Gain on sale of real estate from
discontinued operations - 1,849 - 1,849
Results from discontinued
operations - 3,079 - 4,462
Net income 28,974 26,718 58,960 49,854
Dividends on preferred stock (135) (135) (271) (171)
Net income available for common
shareholders $28,839 $26,583 $58,689 $49,683
EARNINGS PER COMMON SHARE, BASIC
Continuing operations $0.49 $0.42 $1.00 $0.81
Discontinued operations - 0.05 - 0.08
$0.49 $0.47 $1.00 $0.89
Weighted average number of common
shares, basic 58,636 56,168 58,570 55,797
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations $0.49 $0.42 $1.00 $0.80
Discontinued operations - 0.05 - 0.08
$0.49 $0.47 $1.00 $0.88
Weighted average number of common
shares, diluted 58,934 56,591 58,872 56,258
Federal Realty Investment Trust
Funds From Operations
June 30, 2008
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
(in thousands, except per share data)
Funds from Operations available for
common shareholders (FFO) (1)
Net income 28,974 26,718 $58,960 $49,854
Gain on sale of real estate - (1,849) - (1,849)
Depreciation and amortization of
real estate assets 25,050 24,317 48,000 48,259
Amortization of initial direct costs
of leases 2,283 2,107 4,305 4,177
Depreciation of joint venture real
estate assets 331 323 661 591
Funds from operations 56,638 51,616 111,926 101,032
Dividends on preferred stock (135) (135) (271) (171)
Income attributable to operating
partnership units 231 399 463 644
FFO $56,734 $51,880 $112,118 $101,505
FFO per diluted share $0.96 $0.91 $1.89 $1.79
Weighted average number of common
shares, diluted 59,311 57,149 59,251 56,750
Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance
June 30, 2008
2008 Guidance
($ millions except per
share amounts) (1)
Net income $123 to $125
Gain on sale of real estate 0 0
Depreciation and amortization of
real estate & real estate
partnership assets 99 99
Amortization of initial direct
costs of leases 9 9
Funds from operations 231 232
Income attributable to operating
partnership units 1 1
Dividends on preferred stock (1) (1)
Funds from operations available
for common shareholders 231 to 233
Weighted Average Shares (diluted) 59.3
Funds from operations available
for common shareholders per
diluted share $3.89 $3.92
Note:
(1) Individual items may not add up to total due to rounding.
SOURCE Federal Realty Investment Trust
