Exhibit 99.1

FEDERAL REALTY INVESTMENT TRUST

SUPPLEMENTAL INFORMATION

December 31, 2009

TABLE OF CONTENTS

 

1.		Fourth Quarter and Year Ended 2009 Earnings Press Release		3
2.		Financial Highlights
		Summarized Income Statements		7
		Summarized Balance Sheets		8
		Funds From Operations / Summary of Capital Expenditures		9
		Market Data		10
		Components of Rental Income		11
3.		Summary of Debt
		Summary of Outstanding Debt and Capital Lease Obligations		12
		Summary of Debt Maturities		13
4.		Summary of Redevelopment Opportunities		14
5.		Real Estate Status Report		15
6.		Retail Leasing Summary		17
7.		Lease Expirations		18
8.		Portfolio Leased Statistics		19
9.		Summary of Top 25 Tenants		20
10.		Reconciliation of Net Income to FFO Guidance		21
11.		Joint Venture Disclosure
		Summarized Income Statements and Balance Sheets		22
		Summary of Outstanding Debt and Debt Maturities		23
		Real Estate Status Report		24
12.		Glossary of Terms		25

1626 East Jefferson Street

Rockville, Maryland 20852-4041

301/998-8100

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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 17, 2010, 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 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 17, 2010.

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FOR IMMEDIATE RELEASE

 

Investor and Media Inquiries
Gina Birdsall		Janelle Stevenson
Investor Relations		Corporate Communications
301/998-8265		301/998-8185
gbirdsall@federalrealty.com		jmstevenson@federalrealty.com

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FOURTH QUARTER AND YEAR-END 2009 OPERATING RESULTS

ROCKVILLE, Md. (February 17, 2010) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its fourth quarter and year-ended December 31, 2009.

Financial Results

For fourth quarter 2009, Federal Realty generated funds from operations available for common shareholders (FFO) of $60.1 million, or $0.98 per diluted share, and net income available for common shareholders of $31.8 million, or earnings per diluted share of $0.52. The Trust’s FFO and net income include a positive $4.7 million ($0.08 per diluted share) adjustment to the litigation provision related to a previously disclosed lawsuit involving a property adjacent to Santana Row resulting from additional information in the appeal process. Excluding the litigation provision, FFO for fourth quarter 2009 was $55.4 million, or $0.90 per share, compared to FFO of $58.6 million, or $0.99 per diluted share, for fourth quarter 2008. In addition, net income available for common shareholders was $27.1 million, and earnings per diluted share was $0.44 for the quarter excluding the litigation provision. This compares to net income of $33.6 million and earnings per diluted share of $0.57 for the fourth quarter 2008.

For the year ending December 31, 2009, Federal Realty reported FFO of $211.1 million, or $3.51 per diluted share, and net income available for common shareholders of $97.8 million, or earnings per diluted share of $1.63. Excluding the full year impact of the litigation provision of $16.4 million, or $0.27 per diluted share, year-to-date FFO was $227.4 million, or $3.78 per diluted share, and net income available for common shareholders was $114.1 million, or $1.90 per diluted share. For the year ending December 31, 2008, the Trust reported FFO of $228.4 million, or $3.85 per diluted share, and net income available for common shareholders of $129.2 million, or $2.19 per diluted share.

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FOURTH QUARTER AND

YEAR-END 2009 OPERATING RESULTS

February 17, 2010

Page 2

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.

Portfolio Results

In fourth quarter 2009, same-center property operating income, both including and excluding redevelopment and expansion properties, increased 1.0% over fourth quarter 2008. On an annual basis, same-center property operating income in 2009 increased 1.6% including redevelopments and expansions, and decreased 0.3% excluding redevelopments and expansions.

The overall portfolio was 94.5% leased as of December 31, 2009, compared to 94.2% on September 30, 2009 and 95.0% on December 31, 2008. Federal Realty’s same-center portfolio was 94.6% leased on December 31, 2009, compared to 94.4% on September 30, 2009 and 95.3% on December 31, 2008.

During fourth quarter 2009, the Trust signed 89 leases for 397,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 360,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 4%. The average contractual rent on this comparable space for the first year of the new lease is $27.58 per square foot compared to the average contractual rent of $26.64 per square foot for the last year of the prior lease. The previous average contractual rent is 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 13% for fourth quarter 2009.

For all of 2009, Federal Realty signed 309 leases representing 1.2 million square feet of comparable retail space at an average cash-basis contractual rent increase per square foot of 10%, and 20% on a GAAP-basis. The average cash-basis contractual rent on this comparable space for the first year of the new lease is $28.60 per square foot compared to the average cash-basis contractual rent of $25.94 per square foot for the last year of the prior lease. As of December 31, 2009, Federal Realty’s average contractual minimum rent for retail and commercial space in its portfolio is $22.14 per square foot, as compared to $21.75 on December 31, 2008

“We are pleased to report solid year-end operating results despite 2009 being one of the most challenging years for commercial real estate in recent history,” commented Donald C. Wood, president and chief executive officer of Federal Realty Investment Trust. “Our consistent performance is reflective of owning and operating high-quality real estate assets in the strongest markets in the country married with a sound balance sheet and a simple and transparent business strategy.”

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FOURTH QUARTER AND

YEAR-END 2009 OPERATING RESULTS

February 17, 2010

Page 3

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 on April 15, 2010 to common shareholders of record on March 17, 2010.

Guidance

Federal Realty 2010 guidance for FFO per diluted share remained unchanged at a range of $3.80 to $3.88 and earnings per diluted share of $1.92 to $2.00.

Conference Call Information

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its fourth quarter and year-end 2009 earnings conference call, which is scheduled for February 18, 2010, at 10 a.m. Eastern Standard Time. To participate, please call (800) 901-5241 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, www.federalrealty.com, which will remain available for 30 days following the call. A telephone recording of the call will also be available through March 18, 2010, by dialing (888) 286-8010 and using the passcode 27967317.

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 18.2 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 94.5% leased to national, regional, and local retailers as of December 31, 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.

 

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FEDERAL REALTY INVESTMENT TRUST ANNOUNCES FOURTH QUARTER AND

YEAR-END 2009 OPERATING RESULTS

February 17, 2010

Page 4

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 17, 2010, 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 17, 2010.

 

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Federal Realty Investment Trust

Summarized Income Statements

December 31, 2009

 

 

 

		Three months ended December 31,								Year ended December 31,
		2009				2008				2009				2008
		(in thousands, except per share data)
		(unaudited)
Revenue
Rental income		$	133,755			$	130,323			$	513,220			$	501,627
Other property income			3,598				1,998				12,856				14,013
Mortgage interest income			1,260				1,206				4,943				4,548
Total revenue			138,613				133,527				531,019				520,188
Expenses
Rental expenses			30,662				28,724				108,806				109,718
Real estate taxes			15,035				14,349				58,173				55,481
General and administrative			5,862				7,281				22,032				26,732
Litigation provision			(4,732	)			—				16,355				—
Depreciation and amortization			28,458				29,218				115,093				111,022
Total operating expenses			75,285				79,572				320,459				302,953
Operating income			63,328				53,955				210,560				217,235
Other interest income			620				254				1,894				916
Interest expense			(29,159	)			(24,997	)			(108,781	)			(99,163	)
Early extinguishment of debt			(1,671	)			—				(2,639	)			—
Income from real estate partnership			248				432				1,322				1,612
Income from continuing operations			33,366				29,644				102,356				120,600
Discontinued operations
Income from discontinued operations			—				257				218				1,981
Gain on sale of real estate from discontinued operations			—				5,134				1,298				12,572
Results from discontinued operations			—				5,391				1,516				14,553
Net income			33,366				35,035				103,872				135,153
Net income attributable to noncontrolling interests			(1,396	)			(1,310	)			(5,568	)			(5,366	)
Net income attributable to the Trust			31,970				33,725				98,304				129,787
Dividends on preferred shares			(135	)			(135	)			(541	)			(541	)
Net income available for common shareholders		$	31,835			$	33,590			$	97,763			$	129,246
EARNINGS PER COMMON SHARE, BASIC
Continuing operations		$	0.52			$	0.48			$	1.60			$	1.94
Discontinued operations			—				0.09				0.03				0.25
		$	0.52			$	0.57			$	1.63			$	2.19
Weighted average number of common shares, basic			61,008				58,789				59,704				58,665
EARNINGS PER COMMON SHARE, DILUTED
Continuing operations		$	0.52			$	0.48			$	1.60			$	1.94
Discontinued operations			—				0.09				0.03				0.25
		$	0.52			$	0.57			$	1.63			$	2.19
Weighted average number of common shares, diluted			61,142				58,935				59,830				58,889

 

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Federal Realty Investment Trust

Summarized Balance Sheets

December 31, 2009

 

 

 

		December 31,
		2009				2008
		(in thousands)
ASSETS
Real estate, at cost
Operating		$	3,626,476			$	3,537,790
Construction-in-progress			132,758				115,189
Assets held for sale			—				20,706
			3,759,234				3,673,685
Less accumulated depreciation and amortization			(938,087	)			(846,258	)
Net real estate			2,821,147				2,827,427
Cash and cash equivalents			135,389				15,223
Accounts and notes receivable, net			72,191				73,688
Mortgage notes receivable, net			48,336				45,780
Investment in real estate partnership			35,633				29,252
Prepaid expenses and other assets			109,613				101,406
TOTAL ASSETS		$	3,222,309			$	3,092,776
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Mortgages payable and capital lease obligations		$	601,884			$	452,810
Notes payable			261,745				336,391
Senior notes and debentures			930,219				956,584
Accounts payable and other liabilities			219,398				200,037
Total liabilities			2,013,246				1,945,822
Shareholders’ equity
Preferred shares			9,997				9,997
Common shares and other shareholders’ equity			1,167,340				1,104,605
Total shareholders’ equity of the Trust			1,177,337				1,114,602
Noncontrolling interests			31,726				32,352
Total shareholders’ equity			1,209,063				1,146,954
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	3,222,309			$	3,092,776

 

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Federal Realty Investment Trust

Funds From Operations / Summary of Capital Expenditures

December 31, 2009

 

 

 

		Three months ended December 31,								Year ended December 31,
		2009				2008				2009				2008
		(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income		$	33,366			$	35,035			$	103,872			$	135,153
Net income attributable to noncontrolling interests			(1,396	)			(1,310	)			(5,568	)			(5,366	)
Gain on sale of real estate			—				(5,134	)			(1,298	)			(12,572	)
Depreciation and amortization of real estate assets			25,423				27,413				103,104				101,450
Amortization of initial direct costs of leases			2,443				2,330				9,821				8,771
Depreciation of joint venture real estate assets			342				339				1,388				1,331
Funds from operations			60,178				58,673				211,319				228,767
Dividends on preferred shares			(135	)			(135	)			(541	)			(541	)
Income attributable to operating partnership units			245				243				974				950
Income attributable to unvested shares			(193	)			(184	)			(687	)			(779	)
FFO (2)			60,095				58,597				211,065				228,397
Litigation provision, net of allocation to unvested shares (2)			(4,718	)			—				16,301				—
FFO excluding litigation provision (2)		$	55,377			$	58,597			$	227,366			$	228,397
FFO per diluted share (3)		$	0.98			$	0.99			$	3.51			$	3.85
Litigation provision per diluted share (2)			(0.08	)			—				0.27				—
FFO per diluted share excluding litigation provision (2)(3)		$	0.90			$	0.99			$	3.78			$	3.85
Weighted average number of common shares, diluted			61,513				59,309				60,201				59,266
Summary of Capital Expenditures
Non-maintenance capital expenditures
Redevelopment and expansions		$	13,792			$	29,432			$	68,481			$	105,512
Tenant improvements and incentives			3,486				3,254				11,965				18,227
Total non-maintenance capital expenditures			17,278				32,686				80,446				123,739
Maintenance capital expenditures			7,138				5,753				14,629				14,716
Total capital expenditures		$	24,416			$	38,439			$	95,075			$	138,455
Dividends and Payout Ratios
Regular common dividends declared		$	40,416			$	38,340			$	157,638			$	148,444
Dividend payout ratio as a percentage of FFO			67	%			65	%			75	%			65	%
Dividend payout ratio as a percentage of FFO excluding litigation provision (2)			73	%			65	%			69	%			65	%

 

Notes:

(1)	See Glossary of Terms.

(2)

FFO and FFO per diluted share for 2009, includes a ($4.7) million and $16.4 million litigation provision charge for the three months and year ended December 31, 2009, respectively, related to 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 months ended December 31, 2008 and a decrease to reported FFO per diluted share from $3.87 to $3.85 for the year ended December 31, 2008.

 

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Federal Realty Investment Trust

Market Data

December 31, 2009

 

 

 

		December 31,
		2009				2008
		(in thousands, except per share data)
Market data
Common shares outstanding (1)			61,242				58,986
Market price per common share		$	67.72			$	62.08
Common equity market capitalization		$	4,147,308			$	3,661,851
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		$	4,157,308			$	3,671,851
Total debt (3)			1,793,848				1,745,785
Total market capitalization		$	5,951,156			$	5,417,636
Total debt to market capitalization at then current market price			30	%			32	%
Total debt to market capitalization at constant common share price of $62.08			32	%			32	%
Fixed rate debt ratio:
Fixed rate debt and capital lease obligations			86	%			81	%
Variable rate debt			14	%			19	%
			100	%			100	%

 

Notes:

(1)	Amounts do not include 371,260 and 373,260 Operating Partnership Units outstanding at December 31, 2009 and 2008, respectively.

(2)	These shares, issued March 8, 2007, are unregistered.

(3)

Total debt includes capital leases, mortgages payable, notes payable, senior notes and debentures, net of premiums and discounts from our consolidated balance sheet. It does not include the $17.3 million and $24.4 million which is the Trust's 30% share of the total mortgages payable of $57.8 million and $81.4 million at December 31, 2009 and 2008, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners.

 

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Federal Realty Investment Trust

Components of Rental Income

December 31, 2009

 

 

 

 

		Three months ended December 31,						Year ended December 31,
		2009			2008			2009			2008
		(in thousands)						(in thousands)
Minimum rents
Retail and commercial (1)		$	93,836		$	93,443		$	373,920		$	366,277
Residential (2)			5,175			5,356			21,093			18,326
Cost reimbursements			29,856			27,262			104,133			103,147
Percentage rents			2,697			2,987			6,508			8,415
Other			2,191			1,275			7,566			5,462
Total rental income		$	133,755		$	130,323		$	513,220		$	501,627

 

Notes:

(1)

Minimum rents include $1.4 million and $1.6 million for the three months ended December 31, 2009 and 2008, respectively, and $5.3 million and $5.9 million for the year ended December 31, 2009 and 2008, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.6 million and $0.3 million for the three months ended December 31, 2009 and 2008, respectively, and $1.7 million and $2.2 million for the year ended December 31, 2009 and 2008, respectively, to recognize income from the amortization of in-place leases.

(2)	Residential minimum rents consist of the rental amounts for residential units at Rollingwood Apartments, the Crest at Congressional Plaza Apartments, Santana Row, and Arlington East (Bethesda Row). The first rental units at Arlington East were delivered and became rent paying in May 2008.

 

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Federal Realty Investment Trust

Summary of Outstanding Debt and Capital Lease Obligations

December 31, 2009

 

 

 

		Stated Maturity date		Stated interest rate as of December 31, 2009			Balance as of December 31, 2009							Weighted average effective rate at December 31, 2009 (h)
							(in thousands)
Mortgage loans (a)
Secured fixed rate
Federal Plaza		06/01/11		6.750	%		$	32,536
Tysons Station		09/01/11		7.400	%			5,898
Courtyard Shops		07/01/12		6.870	%			7,518
Bethesda Row		01/01/13		5.370	%			19,995
Bethesda Row		02/01/13		5.050	%			4,304
White Marsh Plaza (b)		04/01/13		6.040	%			9,859
Crow Canyon		08/11/13		5.400	%			20,816
Idylwood Plaza		06/05/14		7.500	%			16,792
Leesburg Plaza		06/05/14		7.500	%			29,219
Loehmann’s Plaza		06/05/14		7.500	%			37,783
Pentagon Row		06/05/14		7.500	%			54,240
Melville Mall (c)		09/01/14		5.250	%			23,782
THE AVENUE at White Marsh		01/01/15		5.460	%			58,939
Barracks Road		11/01/15		7.950	%			40,639
Hauppauge		11/01/15		7.950	%			15,320
Lawrence Park		11/01/15		7.950	%			28,805
Wildwood		11/01/15		7.950	%			25,319
Wynnewood		11/01/15		7.950	%			29,355
Brick Plaza		11/01/15		7.415	%			30,053
Rollingwood Apartments		05/01/19		5.540	%			23,880
Shoppers’ World		01/31/21		5.910	%			5,733
Mount Vernon (d)		04/15/28		5.660	%			11,298
Chelsea		01/15/31		5.360	%			7,952
Subtotal								540,035
Net unamortized discount								(426	)
Total mortgage loans								539,609						6.98	%
Notes payable
Unsecured fixed rate
Other		04/01/12		6.500	%			1,400
Perring Plaza renovation		01/31/13		10.000	%			945
Unsecured variable rate
Revolving credit facility (e)		07/27/11		LIBOR + 0.425	%			—
Term loan (f)		07/27/11		LIBOR + 3.000	%			250,000
Escondido (Municipal bonds) (g)		10/01/16		0.379	%			9,400
Total notes payable								261,745						5.31	%		(i	)
Senior notes and debentures
Unsecured fixed rate
4.50% notes		02/15/11		4.500	%			75,000
6.00% notes		07/15/12		6.000	%			175,000
5.40% notes		12/01/13		5.400	%			135,000
5.95% notes		08/15/14		5.950	%			150,000
5.65% notes		06/01/16		5.650	%			125,000
6.20% notes		01/15/17		6.200	%			200,000
7.48% debentures		08/15/26		7.480	%			29,200
6.82% medium term notes		08/01/27		6.820	%			40,000
Subtotal								929,200
Net unamortized premium								1,019
Total senior notes and debentures								930,219						5.94	%
Capital lease obligations
Various		2028 through 2106		Various				62,275						6.94	%
Total debt and capital lease obligations							$	1,793,848
Total fixed rate debt and capital lease obligations							$	1,534,448			86	%		6.35	%
Total variable rate debt								259,400			14	%		5.29	%		(i	)
TOTAL DEBT AND CAPITAL LEASES OBLIGATIONS							$	1,793,848			100	%		6.19	%		(i	)

 

		Three months ended December 31,				Year ended December 31,
		2009		2008		2009		2008
Operational Statistics
Excluding litigation provision:
Ratio of EBITDA to combined fixed charges and preferred share dividends (j) (k)		2.63x		3.29x		2.85x		3.17x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (j) (k)		2.63x		3.09x		2.84x		3.05x
Including litigation provision:
Ratio of EBITDA to combined fixed charges and preferred share dividends (j)		2.77x		3.29x		2.71x		3.17x
Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (j)		2.77x		3.09x		2.70x		3.05x

 

Notes:

(a)	Mortgage loans do not include our 30% share ($17.3 million) of the $57.8 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners.

(b)	The interest rate of 6.04% represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents an interest-only loan of $4.35 million at a stated rate of 6.18% and the remaining balance at a stated rate of 5.96%.

(c)

We acquired control of Melville Mall through a 20-year master lease and secondary financing. Because we control this property and retain substantially all of the economic benefit and risk associated with it, this property is consolidated and the mortgage loan is reflected on the balance sheet though it is not our legal obligation.

(d)	The interest rate is fixed at 5.66% for the first ten years and then will be reset to a market rate in 2013. The lender has the option to call the loan on April 15, 2013 or anytime thereafter.

(e)

The maximum amount drawn under our revolving credit facility during 2009 was $172.5 million, and the weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 1.37%. The revolving credit facility was scheduled to mature on July 27, 2010, subject to a one-year extension at our option. On January 28, 2010, we delivered notice to our lender exercising our option to extend the maturity date one year to July 27, 2011.

(f)

The term loan bears interest at LIBOR, subject to a 1.5% floor, plus 300 basis points. The weighted average effective interest rate, before amortization of debt fees, was 4.62% for the period from the inception of the loan of May 4, 2009 through December 31, 2009. On October 27, 2009 and December 21, 2009, we repaid $100 million and $22 million, respectively, of our term loan. Due to the repayments, approximately $1.7 million of unamortized debt fees were recorded as additional interest expense in 2009 and are included in “early extinguishment of debt” in the summarized income statement.

(g)	The bonds bear interest at a variable rate determined weekly which would enable the bonds to be remarketed at 100% of their principal amount.

(h)	The weighted average effective interest rate includes the amortization of any deferred financing fees, discounts and premiums, if applicable.

(i)	The weighted average effective interest rate excludes $0.1 million in quarterly financing fees on our revolving credit facility which had a $0 balance on December 31, 2009.

(j)

Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount or premium and expense and the portion of rent expense representing an interest factor. EBITDA includes a $1.3 million gain on sale for the year ended December 31, 2009. Fixed charges includes $1.7 million and $2.6 million of early extinguishment of debt for the three months and year ended December 31, 2009, respectively, primarily related to the write-off of debt fees related to the paydown of the term loan and the cash tender offer for our 8.75% senior notes. Adjusted EBITDA is reconciled to net income attributable to the Trust in the Glossary of Terms.

(k)	Adjusted to exclude a ($4.7) million and $16.4 million litigation provision charge for the three months and year ended December 31, 2009, related to litigation regarding a parcel of land located adjacent to Santana Row as well as other costs related to the litigation and the appeal process.

 

12

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Federal Realty Investment Trust

Summary of Debt Maturities

December 31, 2009

 

 

DEBT MATURITIES

(in thousands)

 

Year		Scheduled Amortization			Maturities				Total				Percent of Debt Maturing			Cumulative Percent of Debt Maturing
2010		$	12,036		$	—			$	12,036			0.7	%		0.7	%
2011			12,438			362,252	(1)			374,690			20.9	%		21.6	%
2012			12,691			181,916				194,607			10.9	%		32.5	%
2013			11,853			196,893				208,746			11.6	%		44.1	%
2014			10,225			297,864				308,089			17.2	%		61.3	%
2015			6,858			198,391				205,249			11.4	%		72.7	%
2016			2,902			134,400				137,302			7.7	%		80.4	%
2017			3,110			200,000				203,110			11.3	%		91.7	%
2018			3,321			—				3,321			0.2	%		91.9	%
Thereafter			53,067			93,038				146,105			8.1	%		100.0	%
Total		$	128,501		$	1,664,754			$	1,793,255	(2)		100.0	%

 

Notes:

(1)	Our $300 million revolving credit facility matures on July 27, 2011. As of December 31, 2009, there was $0 drawn under this credit facility.

(2)	The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net discount or premium on certain mortgage loans, senior notes and debentures as of December 31, 2009.

 

13

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Federal Realty Investment Trust

Summary of Redevelopment Opportunities

December 31, 2009

 

 

Current Redevelopment Opportunities (1) ($ millions)

 

Property		Location		Opportunity		Projected ROI (2)			Projected Cost (1)			Cost to Date
Projects Stabilized in 2009 (3)
Hollywood Galaxy Building		Hollywood, CA		Re-tenanting three level entertainment center and converting project into urban neighborhood community center		12	%		$	16		$	14
Houston Street		San Antonio, TX		Construction of a new building with ground level leased to Walgreen’s pharmacy and office above		9	%		$	8		$	8
Crossroads		Highland Park, IL		Bank pad addition		9	%		$	1		$	1
Subtotal: Projects Stabilized in 2009 (3) (4)						11	%		$	25		$	23
Projects Anticipated to Stabilize in 2010 (3)
Bethesda Row (Hampden Lane)		Bethesda, MD		Construction of new three level building leased to fitness center and additional ground level retail spaces.		10	%		$	14		$	6
Village of Shirlington - Phase III & IV		Arlington, VA		Ground lease to hotel operator and ground floor retail as part of office building development (by others)		16	%		$	7		$	5
Barracks Road		Charlottesville, VA		Expansion of Bed, Bath and Beyond and creation of two additional small shop spaces, utilizing vacant anchor space.		10	%		$	3		$	1
Lancaster		Lancaster, PA		Renovation and expansion of existing grocer, new bank pad, and façade renovation		10	%		$	2		$	1
Langhorne		Levittown, PA		Pad site addition		10	%		$	2		$	0
Subtotal: Projects Anticipated to Stabilize in 2010 (3) (4)						12	%		$	28		$	13
Projects Anticipated to Stabilize in 2011 (3)
Santana Row		San Jose, CA		Five-story building with 15,000 square feet of ground level retail and 65,000 square feet of office space		6	%		$	44		$	33
Laurel		Laurel, MD		Pad preparation for new LA Fitness, replacing theater and small shop space. Reconfigure parking lot entrance.		8	%		$	9		$	0
						6	%		$	53		$	33
Total: Projects Anticipated to Stabilize in 2009, 2010 and 2011 (3) (4)						9	%		$	106		$	69
Potential future redevelopment pipeline includes (5):
Property		Location		Opportunity
Assembly Square		Somerville, MA		Potential substantial transit oriented mixed-use development
Assembly Square Mall		Somerville, MA		Pad site addition
Bala Cynwyd		Bala Cynwyd, PA		Potential redevelopment of nine acres of land for a transit oriented mixed-use project or retail center
Brick Plaza		Brick, NJ		Redevelopment and expansion of existing pad site, plus additional pad site
Federal Plaza		Rockville, MD		Pad building opportunities
Flourtown		Flourtown, PA		Anchor re-tenanting, small shop renovation, and site improvements
Hollywood Peterson Building		Hollywood, CA		Co-terminus leases create potential for property redevelopment and expansion
Huntington		Huntington, NY		Pad site additions
Linden Square		Wellesley, MA		Additional phases of infill redevelopment
Mercer Mall		Lawrenceville, NJ		Construction of new outparcel
Mid-Pike Plaza		Rockville, MD		Co-terminus leases create potential for retail redevelopment or transit oriented mixed-use development
Pike 7		Vienna, VA		Co-terminus leases create potential for retail redevelopment or transit oriented mixed-use development
Santana Row		San Jose, CA		Future phases of mixed-use development
Shoppers’ World		Charlottesville, VA		Co-terminus leases create potential for remerchandising and reconfiguration of retail spaces
Town Center of New Britain		New Britain, PA		Renovation and expansion of existing grocer
Troy		Parsippany, NJ		Pad site addition
Willow Lawn		Richmond, VA		Demo interior mall, relocate mall tenants, construct new exterior GLA

 

Notes:

 

(1)

These current redevelopment opportunities are being pursued by the Trust. There is no guaranty that the Trust will ultimately complete any or all of these opportunities, that the Projected Return on Investment (ROI) or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected ROI and Projected Cost are management’s best estimate based on current information and may change over time.

(2)

Projected ROI 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 does NOT include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property.

(3)	Stabilization is the year in which 95% occupancy of the redeveloped space is achieved.

(4)	All subtotals and totals reflect cost weighted-average ROIs.

(5)	These future redevelopment opportunities are being explored by the Trust. There is no guaranty that the Trust will ultimately pursue or complete any or all of these opportunities.

 

14

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Federal Realty Investment Trust

Real Estate Status Report

December 31, 2009

 

 

 

Property Name				MSA Description		Year Acquired		Real Estate at Cost			Mortgage and/or Capital Lease Obligation (1)			GLA (2)		% Leased			% Occupied			Average Rent PSF			Grocery Anchor GLA (3)		Grocery Anchor (3)		Other Principal Tenants
								(in thousands)			(in thousands)
Washington Metropolitan Area
Bethesda Row		(4)		Washington, DC-MD-VA		1993-2006/2008		$	192,014		$	25,330		519,000		96	%		91	%		$	42.32		40,000		Giant Food		Barnes & Noble / Landmark Theater
Congressional Plaza		(5)		Washington, DC-MD-VA		1965			70,467					332,000		100	%		100	%			30.78		28,000		Whole Foods		Buy Buy Baby / Container Store
Courthouse Center				Washington, DC-MD-VA		1997			4,263					36,000		89	%		89	%			16.98
Falls Plaza/Falls Plaza-East				Washington, DC-MD-VA		1967-1972			11,982					144,000		100	%		98	%			26.84		51,000		Giant Food		CVS / Staples
Federal Plaza				Washington, DC-MD-VA		1989			62,203			32,536		248,000		94	%		91	%			29.88						TJ Maxx / Micro Center / Ross / Trader Joe’s
Friendship Center				Washington, DC-MD-VA		2001			33,415					118,000		66	%		66	%			33.33						Borders / Maggiano’s
Gaithersburg Square				Washington, DC-MD-VA		1993			24,406					209,000		76	%		76	%			25.46						Bed, Bath & Beyond / Ross
Idylwood Plaza				Washington, DC-MD-VA		1994			15,707			16,792		73,000		89	%		89	%			42.83		30,000		Whole Foods
Laurel				Washington, DC-MD-VA		1986			47,903					386,000		97	%		97	%			17.29		61,000		Giant Food		Marshalls
Leesburg Plaza		(6)		Washington, DC-MD-VA		1998			34,521			29,219		236,000		98	%		98	%			22.35		55,000		Giant Food		Petsmart / Pier One / Office Depot
Loehmann’s Plaza				Washington, DC-MD-VA		1983			32,735			37,783		268,000		96	%		96	%			25.33		58,000		Giant Food		Bally Total Fitness / Loehmann’s / Dress Shop
Mid-Pike Plaza				Washington, DC-MD-VA		1982/2007			45,316					309,000		85	%		85	%			27.31						Toys R Us / Bally Total Fitness / AC Moore
Mount Vernon/South Valley/7770 Richmond Hwy		(6)		Washington, DC-MD-VA		2003-2006			77,565			11,298		565,000		95	%		95	%			15.25		62,000		Shoppers Food Warehouse		Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold’s Gym
Old Keene Mill				Washington, DC-MD-VA		1976			6,014					92,000		95	%		95	%			31.08		24,000		Whole Foods		Walgreens
Pan Am				Washington, DC-MD-VA		1993			28,431					227,000		100	%		100	%			18.13		63,000		Safeway		Micro Center / Michaels
Pentagon Row				Washington, DC-MD-VA		1998			87,951			54,240		296,000		99	%		99	%			33.80		45,000		Harris Teeter		Bally Total Fitness / Bed, Bath & Beyond / DSW
Pike 7				Washington, DC-MD-VA		1997			34,865					164,000		100	%		95	%			33.08						DSW / Staples / TJ Maxx
Quince Orchard				Washington, DC-MD-VA		1993			21,525					248,000		70	%		70	%			20.21		24,000		Magruders		Staples
Rockville Town Square				Washington, DC-MD-VA		2006-2007			37,340					182,000		97	%		97	%			29.98						CVS / Gold’s Gym
Rollingwood Apartments				Washington, DC-MD-VA		1971			7,736			23,880		N/A		93	%		92	%			N/A
Sam’s Park & Shop				Washington, DC-MD-VA		1995			12,239					49,000		100	%		93	%			36.28						Petco
Tower				Washington, DC-MD-VA		1998			20,271					112,000		91	%		91	%			23.96						Talbots
Tyson’s Station				Washington, DC-MD-VA		1978			3,672			5,898		49,000		100	%		100	%			38.84						Trader Joe’s
Village at Shirlington		(4)		Washington, DC-MD-VA		1995			52,197			6,292		254,000		97	%		95	%			31.88		28,000		Harris Teeter		AMC Loews / Carlyle Grand Café
Wildwood				Washington, DC-MD-VA		1969			17,706			25,319		84,000		97	%		97	%			80.89		20,000		Balducci’s		CVS
				Total Washington Metropolitan Area					982,444					5,200,000		93	%		92	%			28.13
Philadelphia Metropolitan Area
Andorra				Philadelphia, PA-NJ		1988			23,298					267,000		93	%		93	%			13.59		24,000		Acme Markets		Kohl’s / Staples / L.A. Fitness
Bala Cynwyd				Philadelphia, PA-NJ		1993			34,564					282,000		100	%		100	%			17.08		45,000		Acme Markets		Lord & Taylor / L.A. Fitness
Ellisburg Circle				Philadelphia, PA-NJ		1992			27,895					268,000		100	%		100	%			15.09		47,000		Genuardi’s		Buy Buy Baby / Stein Mart
Feasterville				Philadelphia, PA-NJ		1980			11,889					111,000		91	%		89	%			13.81		53,000		Genuardi’s		OfficeMax
Flourtown				Philadelphia, PA-NJ		1980			15,570					192,000		84	%		42	%			22.15		42,000		Genuardi’s
Langhorne Square				Philadelphia, PA-NJ		1985			19,107					216,000		94	%		94	%			14.06		55,000		Redner’s Warehouse Mkts.		Marshalls
Lawrence Park				Philadelphia, PA-NJ		1980			29,855			28,805		353,000		98	%		98	%			17.95		53,000		Acme Markets		CHI / TJ Maxx / HomeGoods
Northeast				Philadelphia, PA-NJ		1983			23,082					285,000		91	%		90	%			11.79						Burlington Coat / Marshalls
Town Center of New Britain				Philadelphia, PA-NJ		2006			14,384					125,000		81	%		81	%			9.78		36,000		Giant Food		Rite Aid
Willow Grove				Philadelphia, PA-NJ		1984			27,330					216,000		97	%		97	%			19.10						Barnes & Noble / Marshalls
Wynnewood				Philadelphia, PA-NJ		1996			36,658			29,355		255,000		97	%		97	%			24.03		98,000		Genuardi’s		Bed, Bath & Beyond / Borders / Old Navy
				Total Philadelphia Metropolitan Area					263,632					2,570,000		95	%		91	%			16.40
California
Colorado Blvd				Los Angeles-Long Beach, CA		1996-1998			16,633					69,000		97	%		97	%			37.07						Pottery Barn / Banana Republic
Crow Canyon				San Ramon, CA		2005-2007			64,997			20,816		242,000		92	%		92	%			19.24		58,000		Lucky		Loehmann’s / Rite Aid
Escondido		(7)		San Diego, CA		1996			28,621					222,000		94	%		94	%			23.24						TJ Maxx / Toys R Us
Fifth Ave				San Diego, CA		1996-1997			12,969					51,000		91	%		91	%			27.50						Urban Outfitters
Hermosa Ave				Los Angeles-Long Beach, CA		1997			5,478					22,000		72	%		72	%			33.98
Hollywood Blvd		(8)		Los Angeles-Long Beach, CA		1999			39,176					153,000		75	%		75	%			21.84						DSW / L.A. Fitness / Fresh & Easy
Kings Court		(6)		San Jose, CA		1998			11,605					79,000		100	%		100	%			28.27		25,000		Lunardi’s Super Market		CVS
Old Town Center				San Jose, CA		1997			34,126					96,000		97	%		97	%			29.88						Borders / Gap Kids / Banana Republic
Santana Row				San Jose, CA		1997			535,804					565,000		98	%		98	%			42.97						Crate & Barrel / Container Store / Best Buy / Borders / CineArts Theatre / Hotel Valencia
Third St Promenade				Los Angeles-Long Beach, CA		1996-2000			76,474					211,000		97	%		96	%			60.44						J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate				San Jose, CA		2004			116,288					645,000		95	%		95	%			13.14		38,000		Safeway		Target / Burlington Coat Factory / Barnes & Noble / Ross / Michaels
150 Post Street				San Francisco, CA		1997			37,575					101,000		99	%		99	%			42.75						Brooks Brothers / H & M
				Total California					979,746					2,456,000		94	%		94	%			29.88
New York / New Jersey
Brick Plaza				Monmouth-Ocean, NJ		1989			57,041			30,053		409,000		98	%		98	%			15.07		66,000		A&P		AMC Loews / Barnes & Noble / Sports Authority
Forest Hills				New York, NY		1997			8,098					46,000		100	%		100	%			23.29						Midway Theatre
Fresh Meadows				New York, NY		1997			69,299					405,000		98	%		98	%			24.91						Kohl’s / AMC Loews
Hauppauge				Nassau-Suffolk, NY		1998			27,967			15,320		133,000		99	%		99	%			24.22		61,000		Shop Rite		AC Moore
Huntington				Nassau-Suffolk, NY		1988/2007			38,671					292,000		100	%		100	%			18.57						Buy Buy Baby / Toys R Us / Bed, Bath & Beyond / Barnes & Noble / Michaels
Melville Mall		(9)		Nassau-Suffolk, NY		2006			68,643			23,782		248,000		100	%		100	%			17.96		54,000		Waldbaum’s		Kohl’s / Marshalls
Mercer Mall		(4)		Trenton, NJ		2003			104,087			50,045		501,000		99	%		99	%			19.71		75,000		Shop Rite		Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
Troy				Newark, NJ		1980			25,278					207,000		86	%		86	%			16.16		64,000		Pathmark		L.A. Fitness
				Total New York / New Jersey					399,084					2,241,000		98	%		98	%			19.52

 

15

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Federal Realty Investment Trust

Real Estate Status Report

December 31, 2009

 

 

 

Property Name				MSA Description		Year Acquired		Real Estate at Cost			Mortgage and/or Capital Lease Obligation (1)			GLA (2)		% Leased			% Occupied			Average Rent PSF			Grocery Anchor GLA (3)		Grocery Anchor (3)		Other Principal Tenants
								(in thousands)			(in thousands)
New England
Assembly Square				Boston-Cambridge-Quincy, MA-NH		2005-2009			169,891					332,000		100	%		100	%			16.25						AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons				Boston-Cambridge-Quincy, MA-NH		2006-2008			29,293			7,952		222,000		97	%		89	%			10.16		16,000		Sav-A-Lot		Home Depot
Dedham Plaza				Boston-Cambridge-Quincy, MA-NH		1993			32,111					242,000		91	%		89	%			15.03		80,000		Star Market
Linden Square				Boston-Cambridge-Quincy, MA-NH		2006			142,623					217,000		93	%		86	%			41.75		50,000		Roche Brothers Supermarkets		CVS
North Dartmouth				Boston-Cambridge-Quincy, MA-NH		2006			9,368					48,000		100	%		100	%			13.80		48,000		Stop & Shop
Queen Anne Plaza				Boston-Cambridge-Quincy, MA-NH		1994			15,661					149,000		100	%		100	%			15.04		50,000		Hannaford		TJ Maxx
Saugus Plaza				Boston-Cambridge-Quincy, MA-NH		1996			13,589					171,000		91	%		91	%			10.57		55,000		Super Stop & Shop		Kmart
				Total New England					412,536					1,381,000		96	%		93	%			17.99
Baltimore
Governor Plaza				Baltimore, MD		1985			21,883					267,000		100	%		100	%			15.34		16,500		Aldi		Bally Total Fitness / Office Depot
Perring Plaza				Baltimore, MD		1985			27,111					401,000		98	%		98	%			12.22		58,000		Shoppers Food Warehouse		Home Depot / Burlington Coat Factory / Jo-Ann Stores
THE AVENUE at White Marsh		(10)		Baltimore, MD		2007			94,527			58,939		298,000		94	%		94	%			20.92						AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square				Baltimore, MD		2007			27,569					53,000		100	%		100	%			31.61
White Marsh Plaza				Baltimore, MD		2007			24,957			9,859		80,000		98	%		98	%			19.37		54,000		Giant Food
White Marsh Other				Baltimore, MD		2007			28,857					49,000		100	%		100	%			34.00
				Total Baltimore					224,904					1,148,000		97	%		97	%			17.48
Chicago
Crossroads				Chicago, IL		1993			23,962					168,000		94	%		72	%			20.81						Golfsmith / Guitar Center
Finley Square				Chicago, IL		1995			31,807					315,000		99	%		99	%			10.59						Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market				Chicago, IL		1994			12,028					140,000		96	%		96	%			12.45		63,000		Dominick’s		Walgreens
North Lake Commons				Chicago, IL		1994			13,939					129,000		89	%		89	%			13.25		77,000		Dominick’s
				Total Chicago					81,736					752,000		96	%		91	%			13.23
South Florida
Courtyard Shops				Miami-Ft Lauderdale		2008			38,891			7,518		130,000		92	%		92	%			18.21		49,000		Publix
Del Mar Village				Miami-Ft Lauderdale		2008			54,449					178,000		95	%		94	%			16.93		44,000		Winn Dixie		CVS
				Total South Florida					93,340					308,000		94	%		93	%			17.45
Other
Barracks Road				Charlottesville, VA		1985			47,911			40,639		487,000		96	%		93	%			20.47		99,000		Harris Teeter / Kroger		Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels
Bristol Plaza				Hartford, CT		1995			27,585					272,000		85	%		84	%			12.32		74,000		Stop & Shop		TJ Maxx
Eastgate				Raleigh-Durham-Chapel Hill, NC		1986			26,033					153,000		99	%		99	%			20.07						Stein Mart / Trader Joe’s
Gratiot Plaza				Detroit, MI		1973			18,687					217,000		99	%		99	%			11.57		69,000		Kroger		Bed, Bath & Beyond / Best Buy / DSW
Greenwich Avenue				New Haven-Bridgeport-Stamford-Waterbury		1995			13,972					36,000		100	%		100	%			53.00						Saks Fifth Avenue
Houston St				San Antonio, TX		1998			69,797					196,000		82	%		82	%			20.35						Hotel Valencia / Walgreens
Lancaster		(11)		Lancaster, PA		1980			11,427			4,907		107,000		98	%		98	%			16.35		39,000		Giant Food		Michaels
Shoppers’ World				Charlottesville, VA		2007			30,050			5,733		169,000		95	%		95	%			11.64		28,000		Whole Foods		Staples
Shops at Willow Lawn				Richmond-Petersburg, VA		1983			76,350					476,000		87	%		87	%			16.07		60,000		Kroger		Old Navy / Staples / Ross
				Total Other					321,812					2,113,000		92	%		91	%			17.19
Grand Total								$	3,759,234		$	602,310		18,169,000		95	%		93	%		$	22.14

 

Notes:

(1)	The mortgage or capital lease obligations differ from the total reported on the consolidated balance sheet due to the unamortized discount or premium on certain mortgage payables.

(2)	Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage.

(3)	Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more.

(4)	Portion of property subject to capital lease obligation.

(5)	The Trust has a 64.1% ownership interest in the property.

(6)	Property 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.

(7)	The Trust has a 70% ownership interest in the property.

(8)	The Trust has a 90% ownership interest in the property.

(9)	On October 16, 2006, the Trust acquired control of Melville Mall through a 20 year master lease and secondary financing. Since the Trust controls this property and retains substantially all of the economic benefit and risks associated with it, we consolidate this property and its operations.

(10)	50% of the ownership of this property is 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.

(11)	Property subject to capital lease obligation.

 

16

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Federal Realty Investment Trust

Retail Leasing Summary (1)

December 31, 2009

 

 

Total Lease Summary - Comparable (2)

 

Quarter		Number of Leases Signed		% of Comparable Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent			Cash Basis % Increase Over Prior Rent			Straight- lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements & Incentives (6)			Tenant Improvements & Incentives Per Sq. Ft.
4th Quarter 2009		82		100	%		360,218		$	27.58		$	26.64		$	337,501		4	%		13	%		7.0		$	4,550,199		$	12.63
3rd Quarter 2009		90		100	%		334,690		$	29.38		$	27.00		$	794,017		9	%		17	%		7.5		$	3,684,641		$	11.01
2nd Quarter 2009		69		100	%		315,214		$	26.87		$	23.25		$	1,141,114		16	%		29	%		5.9		$	1,194,192		$	3.79
1st Quarter 2009		68		100	%		232,105		$	31.42		$	26.99		$	1,029,234		16	%		26	%		6.1		$	2,413,756		$	10.40
Total - 12 months		309		100	%		1,242,227		$	28.60		$	25.94		$	3,301,866		10	%		20	%		6.7		$	11,842,788		$	9.53

New Lease Summary - Comparable (2)

 

Quarter		Number of Leases Signed		% of Comparable Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent				Cash Basis % Increase Over Prior Rent			Straight- lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements & Incentives (6)			Tenant Improvements & Incentives Per Sq. Ft.
4th Quarter 2009		32		39	%		176,966		$	24.89		$	24.77		$	20,465			0	%		10	%		10.6		$	4,328,199		$	24.46
3rd Quarter 2009		38		42	%		187,140		$	27.25		$	22.62		$	866,840			20	%		30	%		9.8		$	3,622,041		$	19.35
2nd Quarter 2009		26		38	%		73,693		$	24.27		$	27.68		$	(251,200	)		-12	%		6	%		6.8		$	1,194,192		$	16.20
1st Quarter 2009		24		35	%		73,535		$	32.54		$	32.28		$	19,630			1	%		12	%		9.2		$	2,398,456		$	32.62
Total - 12 months		120		39	%		511,334		$	26.76		$	25.48		$	655,735			5	%		16	%		9.6		$	11,542,888		$	22.57

Renewal Lease Summary - Comparable (2) (7)

 

Quarter		Number of Leases Signed		% of Comparable Leases Signed			GLA Signed		Contractual Rent (3) Per Sq. Ft.			Prior Rent (4) Per Sq. Ft.			Annual Increase in Rent				Cash Basis % Increase Over Prior Rent			Straight- lined Basis % Increase Over Prior Rent			Weighted Average Lease Term (5)		Tenant Improvements & Incentives (6)			Tenant Improvements & Incentives Per Sq. Ft.
4th Quarter 2009		50		61	%		183,252		$	30.17		$	28.44		$	317,036			6	%		16	%		4.1		$	222,000		$	1.21
3rd Quarter 2009		52		58	%		147,550		$	32.08		$	32.57		$	(72,823	)		-2	%		5	%		5.1		$	62,600		$	0.42
2nd Quarter 2009		43		62	%		241,521		$	27.66		$	21.89		$	1,392,314			26	%		38	%		5.6		$	—		$	—
1st Quarter 2009		44		65	%		158,570		$	30.90		$	24.53		$	1,009,604			26	%		35	%		4.6		$	15,300		$	0.10
Total - 12 months		189		61	%		730,893		$	29.88		$	26.26		$	2,646,131			14	%		23	%		4.9		$	299,900		$	0.41

Total Lease Summary - Comparable and Non-comparable (2)

 

Quarter		Number of Leases Signed		GLA Signed		Contractual Rent (3) Per Sq. Ft.			Weighted Average Lease Term (5)		Tenant Improvements & Incentives (6)			Tenant Improvements & Incentives Per Sq. Ft.
4th Quarter 2009		89		396,709		$	27.12		7.4		$	4,900,788		$	12.35
3rd Quarter 2009		94		356,624		$	28.76		7.6		$	4,703,184		$	13.19
2nd Quarter 2009		71		318,703		$	27.03		5.9		$	1,503,836		$	4.72
1st Quarter 2009		69		233,172		$	31.35		6.1		$	2,430,940		$	10.43
Total - 12 months		323		1,305,208		$	28.30		6.8		$	13,538,748		$	10.37

 

Notes:

(1)	Leases on this report represent retail activity only; office and residential leases are not included.

(2)	Comparable leases represent those leases signed on spaces for which there was a former tenant.

(3)	Contractual rent represents contractual minimum rent under the new lease for the first 12 months of the term.

(4)	Prior rent represents minimum rent and percentage rent, if any, paid by the prior tenant in the final 12 months of the term.

(5)	Weighted average is determined on the basis of square footage.

(6)	See Glossary of Terms.

(7)	Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new.

 

17

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Federal Realty Investment Trust

Lease Expirations

December 31, 2009

 

 

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)
2010		250,000		3	%		$	12.73		733,000		10	%		$	27.57		983,000		6	%		$	23.80
2011		901,000		9	%		$	13.99		1,110,000		15	%		$	29.99		2,011,000		12	%		$	22.82
2012		978,000		10	%		$	13.17		1,150,000		16	%		$	30.65		2,128,000		13	%		$	22.62
2013		1,067,000		11	%		$	15.30		996,000		13	%		$	32.27		2,063,000		12	%		$	23.49
2014		1,398,000		15	%		$	16.08		858,000		12	%		$	33.29		2,257,000		13	%		$	22.61
2015		778,000		8	%		$	13.86		659,000		9	%		$	28.46		1,437,000		8	%		$	20.56
2016		508,000		5	%		$	17.52		506,000		7	%		$	31.00		1,014,000		6	%		$	24.25
2017		620,000		7	%		$	17.24		415,000		6	%		$	29.97		1,034,000		6	%		$	22.37
2018		672,000		7	%		$	11.56		296,000		4	%		$	34.55		968,000		6	%		$	18.59
2019		487,000		5	%		$	17.27		198,000		3	%		$	41.12		685,000		4	%		$	24.17
Thereafter		1,953,000		20	%		$	16.32		364,000		5	%		$	36.90		2,317,000		14	%		$	19.55
Total (3)		9,612,000		100	%		$	15.18		7,285,000		100	%		$	31.31		16,897,000		100	%		$	22.14

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)
2010		144,000		1	%		$	11.31		517,000		7	%		$	27.63		661,000		4	%		$	24.07
2011		241,000		3	%		$	10.35		619,000		9	%		$	29.46		860,000		5	%		$	24.11
2012		218,000		2	%		$	16.15		660,000		9	%		$	31.51		878,000		5	%		$	27.70
2013		173,000		2	%		$	16.00		519,000		7	%		$	32.77		692,000		4	%		$	28.58
2014		225,000		2	%		$	10.24		527,000		7	%		$	34.72		752,000		5	%		$	27.40
2015		134,000		1	%		$	18.04		441,000		6	%		$	28.39		575,000		3	%		$	25.98
2016		205,000		2	%		$	18.70		463,000		6	%		$	30.20		668,000		4	%		$	26.67
2017		152,000		2	%		$	24.93		530,000		7	%		$	31.16		683,000		4	%		$	29.73
2018		305,000		3	%		$	13.91		426,000		6	%		$	36.21		731,000		4	%		$	26.91
2019		353,000		4	%		$	19.06		346,000		5	%		$	33.95		699,000		4	%		$	26.43
Thereafter		7,462,000		78	%		$	15.03		2,237,000		31	%		$	30.98		9,698,000		58	%		$	18.71
Total (3)		9,612,000		100	%		$	15.18		7,285,000		100	%		$	31.31		16,897,000		100	%		$	22.14

 

Notes:

(1)	Anchor is defined as a tenant leasing 15,000 square feet or more.

(2)	Minimum Rent reflects in-place contractual (cash-basis) rent as of December 31, 2009.

(3)	Represents occupied square footage as of December 31, 2009.

(4)	Individual items may not add up to total due to rounding.

 

18

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Federal Realty Investment Trust

Portfolio Leased Statistics

December 31, 2009

 

 

Overall Portfolio Statistics (1)

 

		At December 31, 2009							At December 31, 2008
Type		Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties (2) (sf)		18,169,000		17,167,000		94.5	%		18,119,000		17,220,000		95.0	%
Residential Properties (3) (units)		903		867		96.0	%		903		857		94.9	%
Same Center Statistics (1)
		At December 31, 2009							At December 31, 2008
Type		Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties (2) (4) (sf)		17,502,000		16,557,000		94.6	%		17,493,000		16,676,000		95.3	%
Residential Properties (3) (units)		723		689		95.3	%		723		687		95.0	%

 

Notes:

(1)	See Glossary of Terms.

(2)	Leasable square feet; excludes redevelopment square footage not yet placed in service.

(3)

Overall portfolio and Same Center statistics at December 31, 2009 and 2008 include Rollingwood, The Crest at Congressional and the residential rental units at Santana Row. Overall portfolio statistics as of December 31, 2009 and 2008 include the 180 residential units at Arlington East (Bethesda Row) which were first delivered in May 2008 and continued to be delivered through 2008.

(4)	Excludes properties purchased, sold or under redevelopment.

 

19

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Federal Realty Investment Trust

Summary of Top 25 Tenants

December 31, 2009

 

 

 

Rank		Tenant Name		Annualized Base Rent				Percentage of Total Annualized Base Rent (4)			Tenant GLA			Percentage of Total GLA (4)			Number of Stores Leased
1		Bed, Bath & Beyond, Inc.		$	9,751,000			2.61	%		647,000			3.56	%		15
2		Ahold USA, Inc.		$	8,407,000			2.25	%		571,000			3.14	%		11
3		TJX Companies		$	7,029,000			1.88	%		540,000			2.97	%		15
4		Safeway, Inc.		$	6,751,000			1.81	%		481,000			2.65	%		9
5		Gap, Inc.		$	6,664,000			1.78	%		220,000			1.21	%		11
6		CVS Corporation		$	6,219,000			1.66	%		205,000			1.13	%		18
7		Barnes & Noble, Inc.		$	4,725,000			1.26	%		201,000			1.11	%		8
8		OPNET Technologies, Inc.		$	3,754,000			1.00	%		83,000			0.46	%		2
9		Staples, Inc.		$	3,479,000			0.93	%		187,000			1.03	%		9
10		Best Buy Stores, L.P.		$	3,455,000			0.92	%		99,000			0.54	%		3
11		DSW, Inc		$	3,294,000			0.88	%		125,000			0.69	%		5
12		Wells Fargo Bank, N.A. (includes Wachovia Corporation)		$	3,241,000			0.87	%		70,000			0.39	%		15
13		Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food)		$	3,227,000			0.86	%		338,000			1.86	%		7
14		L.A. Fitness International LLC		$	3,144,000			0.84	%		178,000			0.98	%		4
15		Ross Stores, Inc.		$	2,895,000			0.77	%		149,000			0.82	%		5
16		Home Depot, Inc.		$	2,832,000			0.76	%		335,000			1.84	%		4
17		Bank of America, N.A.		$	2,821,000			0.75	%		64,000			0.35	%		19
18		Kohl's Corporation		$	2,793,000			0.75	%		322,000			1.77	%		3
19		Wakefern Food Corporation		$	2,783,000			0.74	%		136,000			0.75	%		2
20		Bally Total Fitness Corporation		$	2,608,000			0.70	%		156,000			0.86	%		5
21		Great Atlantic & Pacific Tea Co		$	2,517,000			0.67	%		217,000			1.19	%		4
22		Container Store, Inc.		$	2,496,000			0.67	%		52,000			0.29	%		2
23		A.C. Moore, Inc.		$	2,483,000			0.66	%		141,000			0.78	%		6
24		AMC Entertainment Inc.		$	2,378,000			0.64	%		166,000			0.91	%		4
25		Dollar Tree Stores, Inc.		$	2,357,000			0.63	%		158,000			0.87	%		14
		Totals – Top 25 Tenants		$	102,103,000			27.31	%		5,841,000			32.15	%		200
		Total: (1)		$	373,910,000	(2)					18,169,000	(3)					2,434

 

Notes:

(1)	Does not include amounts related to leases these tenants have with our partnership with a discretionary fund created and advised by ING Clarion Partners.

(2)	Reflects annual in-place contractual (cash-basis) rent as of December 31, 2009.

(3)	Excludes redevelopment square footage not yet placed in service.

(4)	Individual items may not add up to total due to rounding.

 

20

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Federal Realty Investment Trust

Reconciliation of Net Income to FFO Guidance

December 31, 2009

 

 

 

		2010 Guidance
		(Dollars in million except per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income		$	123			$	128
Net income attributable to noncontrolling interests			(5	)			(5	)
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 shares			(1	)			(1	)
Income attributable to operating partnership units			1				1
Income attributable to unvested shares			(1	)			(1	)
FFO			233				239
Litigation provision (2)			1				1
FFO excluding litigation provision		$	234			$	239
Weighted average number of common shares, diluted			61.7				61.7
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.

 

21

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Federal Realty Investment Trust

Summarized Income Statements and Balance Sheets—Joint Venture

December 31, 2009

 

 

CONSOLIDATED INCOME STATEMENTS

 

		Three months ended December 31,								Year ended December 31,
		2009				2008				2009				2008
		(in thousands)								(in thousands)
Revenues
Rental income		$	4,577			$	4,789			$	18,409			$	18,896
Other property income			9				49				700				215
			4,586				4,838				19,109				19,111
Expenses
Rental			1,114				917				3,760				3,181
Real estate taxes			598				521				2,259				2,004
Depreciation and amortization			1,234				1,222				4,998				4,792
			2,946				2,660				11,017				9,977
Operating income			1,640				2,178				8,092				9,134
Interest expense			(1,034	)			(1,133	)			(4,430	)			(4,537	)
Net income		$	606			$	1,045			$	3,662			$	4,597

CONSOLIDATED BALANCE SHEETS

 

		December 31, 2009				December 31, 2008
		(in thousands)
ASSETS
Real estate, at cost		$	203,122			$	202,519
Less accumulated depreciation and amortization			(19,365	)			(14,609	)
Net real estate			183,757				187,910
Cash and cash equivalents			2,959				2,604
Other assets			6,853				7,066
TOTAL ASSETS		$	193,569			$	197,580
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities
Mortgages payable		$	57,780			$	81,365
Other liabilities			6,101				7,363
Total liabilities			63,881				88,728
Partners’ capital			129,688				108,852
TOTAL LIABILITIES AND PARTNERS’ CAPITAL		$	193,569			$	197,580

 

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Federal Realty Investment Trust

Summary of Outstanding Debt and Debt Maturities - Joint Venture

December 31, 2009

 

 

OUTSTANDING DEBT

 

		Maturity		Stated Interest Rate as of December 31, 2009			Balance
							(in thousands)
Mortgage Loans
Secured Fixed Rate
Plaza del Mercado		07/05/14		5.770	%(a)		$	12,895
Atlantic Plaza		12/01/14		5.120	%(b)			10,500
Barcroft Plaza		07/01/16		5.990	%(b)(c)			20,785
Greenlawn Plaza		07/01/16		5.900	%(b)			13,600
		Total Fixed Rate Debt					$	57,780

Debt Maturities

(in thousands)

 

Year		Scheduled Amortization			Maturities			Total			Percent of Debt Maturing			Cumulative Percent of Debt Maturing
2010		$	196		$	—		$	196		0.3	%		0.3	%
2011			208			—			208		0.4	%		0.7	%
2012			220			—			220		0.4	%		1.1	%
2013			233			—			233		0.4	%		1.5	%
2014			142			22,396			22,538		39.0	%		40.5	%
2015			—			—			—		0.0	%		40.5	%
2016			—			34,385			34,385		59.5	%		100.0	%
Total		$	999		$	56,781		$	57,780		100.0	%

 

Notes:

(a)	Effective July 5, 2007, principal and interest payments are due based on a 30-year amortization schedule.

(b)	Interest only until maturity.

(c)	The stated interest rate represents the weighted average interest rate for two mortgage loans secured by this property. The loan balance represents a note of $16.6 million at a stated rate of 6.06% and a note of $4.2 million at a stated rate of 5.71%.

 

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Federal Realty Investment Trust

Real Estate Status Report - Joint Venture

December 31, 2009

 

 

 

Property Name		MSA Description		Year Acquired		Real Estate at Cost			Mortgage or Capital Lease Obligation			GLA		% Leased			% Occupied			Average Rent PSF			Grocery Anchor GLA (1)		Grocery Anchor (1)		Other Principal Tenants
						(in thousands)			(in thousands)
Washington Metropolitan Area
Barcroft Plaza		Washington, DC-MD-VA		2006-2007			34,118		$	20,785		101,000		88	%		88	%		$	21.43		46,000		Harris Teeter		Bank of America
Free State Shopping Center		Washington, DC-MD-VA		2007			65,829					279,000		89	%		89	%			15.78		73,000		Giant Food		TJ Maxx / Ross / Office Depot
Plaza del Mercado		Washington, DC-MD-VA		2004			21,308			12,895		96,000		93	%		93	%			18.93		25,000		Giant Food		CVS
		Total Washington Metropolitan Area					121,255					476,000		89	%		89	%			17.58
New York / New Jersey
Greenlawn Plaza		Nassau-Suffolk, NY		2006			20,020			13,600		106,000		99	%		99	%			15.80		46,000		Waldbaum’s		Tuesday Morning
		Total New York / New Jersey					20,020					106,000		99	%		99	%			15.80
New England
Atlantic Plaza		Boston-Worcester-Lawrence- Lowell-Brockton, MA		2004			16,645			10,500		123,000		39	%		39	%			19.37						Sears
Campus Plaza		Boston-Worcester-Lawrence- Lowell-Brockton, MA		2004			22,196			—		116,000		95	%		95	%			12.30		46,000		Roche Brothers		Burlington Coat Factory
Pleasant Shops		Boston-Worcester-Lawrence- Lowell-Brockton, MA		2004			23,006			—		129,000		93	%		93	%			11.99		38,000		Foodmaster		Marshalls
		Total New England					61,847					368,000		76	%		76	%			13.42
Grand Totals						$	203,122		$	57,780		950,000		85	%		85	%		$	15.91

 

Note:

(1)	Grocery anchor is defined as a grocery tenant leasing 15,000 square feet or more.

 

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Glossary of Terms

Adjusted EBITDA: Adjusted EBITDA is a non-GAAP measure that means net income or loss attributable to the Trust plus depreciation and amortization, net interest expense, income taxes, gain or loss on sale of real estate and impairments of real estate, if any. Adjusted EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income attributable to the Trust to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2009 and 2008 is as follows:

 

		Three Months Ended December 31,								Year Ended December 31,
		2009				2008				2009				2008
		(in thousands)								(in thousands)
Net income attributable to the Trust		$	31,970			$	33,725			$	98,304			$	129,787
Depreciation and amortization			28,458				29,230				115,093				111,068
Interest expense			29,159				24,997				108,781				99,163
Early extinguishment of debt			1,671				—				2,639				—
Other interest income			(620	)			(253	)			(1,894	)			(919	)
EBITDA			90,638				87,699				322,923				339,099
Gain on sale of real estate			—				(5,134	)			(1,298	)			(12,572	)
Adjusted EBITDA		$	90,638			$	82,565			$	321,625			$	326,527

Funds From Operations (FFO): FFO is a supplemental measure of real estate companies’ operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as follows: net income, computed in accordance with GAAP plus depreciation and amortization of real estate assets and excluding extraordinary items and gains and losses on sale of real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

Property Operating Income: Rental income, other property income and mortgage interest income, less rental expenses and real estate taxes and excluding operating results from discontinued operations.

Overall Portfolio: Includes all operating properties owned in reporting period.

Same Center: Information provided on a same center basis is provided for only those properties that were owned and operated for the entirety of both periods being compared, excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared.

Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.

 

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