FEDERAL REALTY INVESTMENT TRUST - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8K - FEDERAL REALTY INVESTMENT TRUST	d8k.htm

Exhibit 99.1

FEDERAL REALTY INVESTMENT TRUST

SUPPLEMENTAL INFORMATION

September 30, 2010

TABLE OF CONTENTS


1.	Third Quarter 2010 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.	30% Owned 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

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 redevelopment or renovation projects that we do pursue 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 partnerships;

•

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.

LOGO


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 THIRD QUARTER 2010 OPERATING RESULTS

ROCKVILLE, Md. (November 3, 2010) – Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its third quarter ended September 30, 2010.

Financial Results

In the third quarter 2010, Federal Realty generated funds from operations available for common shareholders (FFO) of $58.8 million or $0.95 per diluted share. This compares to FFO of $55.6 million, or $0.92 per diluted share, in third quarter 2009. For the nine months ended September 30, 2010, Federal Realty reported FFO of $177.0 million, or $2.87 per diluted share, compared to $151.0 million, or $2.53 per diluted share for the same nine-month period in 2009.

Net income available for common shareholders was $29.5 million and earnings per diluted share was $0.48 for the quarter ended September 30, 2010 versus $27.3 million and $0.45, respectively, for third quarter 2009. Year-to-date, Federal Realty reported net income available for common shareholders of $89.6 million and earnings per diluted share of $1.45. This compares to net income available for common shareholders of $65.9 million and earnings per diluted share of $1.10 for the nine months ended September 30, 2009.

2009 results include a litigation provision related to a lawsuit involving a property adjacent to Santana Row. Excluding this litigation provision, FFO was $172.0 million, or $2.88 per diluted share for the nine months ended September 30, 2009; net income available for common shareholders was $87.0 million and earnings per diluted share was $1.46.

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.

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2010 OPERATING RESULTS

November 3, 2010

Page 2

Portfolio Results

For third quarter 2010, same-center property operating income was flat compared to third quarter 2009. When redevelopment and expansion properties are included in same-center results, property operating income for third quarter 2010 decreased -0.9% compared to third quarter 2009. For the nine months ended September 30, 2010, same-center property operating income increased 2.2%, and increased 2.6% including redevelopment and expansion properties.

The overall portfolio was 93.9% leased as of September 30, 2010, compared to 94.2% on June 30, 2010 and 94.2% on September 30, 2009. Federal Realty’s same-center portfolio was 94.4% leased on September 30, 2010, compared to 94.7% on June 30, 2010 and 94.4% on September 30, 2009.

During the third quarter of 2010, Federal Realty signed 77 leases for 396,000 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 349,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 6%. The average contractual rent on this comparable space for the first year of the new leases is $25.17 per square foot, compared to the average contractual rent of $23.83 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 2010. As of September 30, 2010, Federal Realty’s average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $22.64 per square foot.

“Our ability to produce consistent results in a continuously challenging economic environment is a true reflection of the stability of our company,” said Don Wood, president and chief executive officer of Federal Realty Investment Trust. “We continue to focus on a low-risk business strategy of producing growth through the smart leasing of our assets, completion of redevelopment projects at excellent risk-adjusted returns, and sourcing acquisitions in our core markets.”

Regular Quarterly Dividends

Federal Realty also announced today that its Board of Trustees declared a regular quarterly cash dividend of $0.67 per share on its common shares, resulting in an indicated annual rate of $2.68 per share. The regular common dividend will be payable in cash on January 18, 2011 to common shareholders of record on January 3, 2011.

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2010 OPERATING RESULTS

November 3, 2010

Page 3

Guidance

Federal Realty increased its guidance for 2010 FFO per diluted share to a range of $3.85 to $3.87 and 2010 earnings per diluted share guidance of $1.96 to $1.98. The Trust also established guidance for 2011 FFO per diluted share at a range of $3.95 to $4.02 and 2011 earnings per diluted share guidance of $2.02 to $2.09. 2011 guidance reflects record expectations for funds from operations per share.

Primary assumptions in our 2011 FFO per diluted share guidance include:

•

No material changes in portfolio occupancy,

•

A $5 million decrease in lease termination fees, principally driven by a significant decline at Flourtown Shopping Center,

•

Same-store property operating income growth of 1%, despite the significant decline in lease termination fees, and

•

No FFO impact associated with 2011 acquisition activity.

Summary of Other Quarterly Activities and Recent Developments

•

August 16, 2010 – Acquired Huntington Square on Long Island in East Northport, New York for $17.6 million. Huntington Square is a 268,000 square foot community center comprised of 74,000 square feet of multi-tenant gross leasable area leased to national retailers such as Barnes & Noble, Brinker International, Lane Bryant and Chase and shadow-anchored by a 194,000 square foot Sears department store.

Conference Call Information

Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its third quarter 2010 earnings conference call, which is scheduled for November 4, 2010, at 1:00 p.m. Eastern Daylight Time. To participate, please call (866) 202-1971 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 December 3, 2010, by dialing (888) 286-8010 and using the passcode 46509598.

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

FEDERAL REALTY INVESTMENT TRUST ANNOUNCES

THIRD QUARTER 2010 OPERATING RESULTS

November 3, 2010

Page 4

(excluding joint venture properties) was 93.9% leased to national, regional, and local retailers as of September 30, 2010, with no single tenant accounting for more than approximately 2.7% 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 43 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 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 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 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 partnerships;

•

risks that our growth will be limited if we cannot obtain additional capital;

•

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.

Federal Realty Investment Trust

Summarized Income Statements

September 30, 2010


	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
	(in thousands, except per share data) (unaudited)
Revenue
Rental income	$	130,144		$	126,169		$	391,892		$	379,465
Other property income		2,825			3,714			11,245			9,258
Mortgage interest income		1,095			1,109			3,232			3,683

Total revenue		134,064			130,992			406,369			392,406

Expenses
Rental expenses		27,140			24,367			82,724			78,144
Real estate taxes		15,263			14,485			45,272			43,138
General and administrative		5,844			5,749			17,062			16,170
Litigation provision		60			330			347			21,087
Depreciation and amortization		29,591			28,410			89,701			86,635

Total operating expenses		77,898			73,341			235,106			245,174

Operating income		56,166			57,651			171,263			147,232
Other interest income		18			924			233			1,274
Interest expense		(25,299	)		(30,209	)		(76,679	)		(79,622	)
Early extinguishment of debt		—			—			(2,801	)		(968	)
Income from real estate partnerships		125			473			506			1,074

Income from continuing operations		31,010			28,839			92,522			68,990

Discontinued operations
Discontinued operations - income		—			—			—			218
Discontinued operations - gain on sale of real estate		—			—			1,000			1,298

Results from discontinued operations		—			—			1,000			1,516

Income before gain on sale of real estate		31,010			28,839			93,522			70,506
Gain on sale of real estate		—			—			410			—

Net income		31,010			28,839			93,932			70,506
Net income attributable to noncontrolling interests		(1,370	)		(1,406	)		(3,958	)		(4,172	)

Net income attributable to the Trust		29,640			27,433			89,974			66,334
Dividends on preferred shares		(136	)		(136	)		(406	)		(406	)

Net income available for common shareholders	$	29,504		$	27,297		$	89,568		$	65,928

EARNINGS PER COMMON SHARE, BASIC
Continuing operations	$	0.48		$	0.45		$	1.43		$	1.08
Discontinued operations		—			—			0.02			0.03
Gain on sale of real estate		—			—			0.01			—

	$	0.48		$	0.45		$	1.46		$	1.11

Weighted average number of common shares, basic		61,215			60,016			61,158			59,264

EARNINGS PER COMMON SHARE, DILUTED
Continuing operations	$	0.48		$	0.45		$	1.42		$	1.07
Discontinued operations		—			—			0.02			0.03
Gain on sale of real estate		—			—			0.01			—

	$	0.48		$	0.45		$	1.45		$	1.10

Weighted average number of common shares, diluted		61,359			60,140			61,297			59,387

Federal Realty Investment Trust

Summarized Balance Sheets

September 30, 2010


	September 30, 2010			December 31, 2009
	(in thousands)
	(unaudited)
ASSETS

Real estate, at cost
Operating (including $97,265 and $68,643 of consolidated variable interest entities, respectively)	$	3,688,805		$	3,626,476
Construction-in-progress		158,060			132,758

		3,846,865			3,759,234
Less accumulated depreciation and amortization (including $3,803 and $3,053 of consolidated variable interest entities, respectively)		(1,011,975	)		(938,087	)

Net real estate		2,834,890			2,821,147

Cash and cash equivalents		9,174			135,389
Accounts and notes receivable, net		74,443			72,191
Mortgage notes receivable, net		43,828			48,336
Investment in real estate partnerships		51,769			35,633
Prepaid expenses and other assets		113,055			109,613

TOTAL ASSETS	$	3,127,159		$	3,222,309

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities
Mortgages payable (including $22,946 and $23,417 of consolidated variable interest entities, respectively) and capital lease obligations	$	593,395		$	601,884
Notes payable		47,940			261,745
Senior notes and debentures		1,079,854			930,219
Accounts payable and other liabilities		219,094			219,398

Total liabilities		1,940,283			2,013,246

Shareholders’ equity
Preferred shares		9,997			9,997
Common shares and other shareholders’ equity		1,145,499			1,167,340

Total shareholders’ equity of the Trust		1,155,496			1,177,337
Noncontrolling interests		31,380			31,726

Total shareholders’ equity		1,186,876			1,209,063

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,127,159		$	3,222,309

Federal Realty Investment Trust

Funds From Operations / Summary of Capital Expenditures

September 30, 2010


	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
	(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income (2)	$	31,010		$	28,839		$	93,932		$	70,506
Net income attributable to noncontrolling interests		(1,370	)		(1,406	)		(3,958	)		(4,172	)
Gain on sale of real estate		—			—			(1,410	)		(1,298	)
Depreciation and amortization of real estate assets		26,491			25,682			80,375			77,681
Amortization of initial direct costs of leases		2,429			2,196			7,226			7,378
Depreciation of joint venture real estate assets		368			355			1,064			1,046

Funds from operations		58,928			55,666			177,229			151,141
Dividends on preferred shares		(136	)		(136	)		(406	)		(406	)
Income attributable to operating partnership units		247			245			736			729
Income attributable to unvested shares		(197	)		(180	)		(590	)		(494	)

FFO		58,842			55,595			176,969			150,970
Litigation provision, net of allocation to unvested shares		59			329			346			21,018

FFO excluding litigation provision	$	58,901		$	55,924		$	177,315		$	171,988

FFO per diluted share	$	0.95		$	0.92		$	2.87		$	2.53
Litigation provision per diluted share		—			—			0.01			0.35

FFO per diluted share excluding litigation provision	$	0.95		$	0.92		$	2.88		$	2.88

Weighted average number of common shares, diluted		61,729			60,511			61,667			59,759

Summary of Capital Expenditures
Non-maintenance capital expenditures
Redevelopment and expansions	$	20,500		$	14,724		$	44,224		$	54,689
Tenant improvements and incentives		5,290			3,402			11,285			8,479

Total non-maintenance capital expenditures		25,790			18,126			55,509			63,168
Maintenance capital expenditures		7,577			4,306			11,470			7,491

Total capital expenditures	$	33,367		$	22,432		$	66,979		$	70,659

Dividends and Payout Ratios
Regular common dividends declared	$	41,166		$	40,374		$	122,169		$	117,222

Dividend payout ratio as a percentage of FFO		70	%		73	%		69	%		78	%
Dividend payout ratio as a percentage of FFO excluding litigation provision (2)		70	%		72	%		69	%		68	%

Notes:

(1)	See Glossary of Terms.

(2)

Net income includes certain costs related to the litigation and appeal process over a parcel of land adjacent to Santana Row; net income for the nine months ended September 30, 2009 also includes a $20.6 million charge for increasing the accrual for such litigation matter. We believe FFO excluding this litigation provision provides a more meaningful evaluation of operations, and therefore, have included FFO and FFO per share excluding the related charges.

Federal Realty Investment Trust

Market Data

September 30, 2010


	September 30,
	2010			2009
	(in thousands, except per share data)
Market data
Common shares outstanding (1)		61,451			61,176
Market price per common share	$	81.66		$	61.37

Common equity market capitalization	$	5,018,089		$	3,754,371

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	$	5,028,089		$	3,764,371

Total debt (3)		1,721,189			2,042,217

Total market capitalization	$	6,749,278		$	5,806,588

Total debt to market capitalization at then current market price		26	%		35	%

Total debt to market capitalization at constant common share price of $61.37		31	%		35	%

Fixed rate debt ratio:
Fixed rate debt and capital lease obligations		98	%		81	%
Variable rate debt		2	%		19	%

		100	%		100	%

Notes:

(1)	Amounts do not include 369,260 and 371,260 Operating Partnership Units outstanding at September 30, 2010 and 2009, 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 $57.6 million and $81.2 million at September 30, 2010 and 2009, respectively, of the partnership with a discretionary fund created and advised by ING Clarion Partners. It also excludes the $8.8 million mortgage loan on our Newbury Street Partnership for which we are the lender.

Federal Realty Investment Trust

Components of Rental Income

September 30, 2010


	Three months ended September 30,				Nine months ended September 30,
	2010		2009		2010		2009
	(in thousands)				(in thousands)
Minimum rents
Retail and commercial (1)	$	95,035	$	93,312	$	284,266	$	280,084
Residential (2)		5,475		5,301		16,125		15,918
Cost reimbursements		26,039		24,304		81,184		74,277
Percentage rents		1,313		1,164		3,778		3,811
Other		2,282		2,088		6,539		5,375

Total rental income	$	130,144	$	126,169	$	391,892	$	379,465

Notes:

(1)

Minimum rents include $1.1 million and $1.3 million for the three months ended September 30, 2010 and 2009, respectively, and $3.6 million and $3.9 million for the nine months ended September 30, 2010 and 2009, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $0.4 million the three months ended September 30, 2010 and 2009, and $1.3 million and $1.1 million for the nine months ended September 30, 2010 and 2009, 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 Bethesda Row.

Federal Realty Investment Trust

Summary of Outstanding Debt and Capital Lease Obligations

September 30, 2010


	Stated maturity date		Stated interest rate as of September 30, 2010			Balance as of September 30, 2010					Weighted average effective rate at September 30, 2010 (h)
						(in thousands)
Mortgages Payable (a)
Secured fixed rate
Federal Plaza		06/01/11		6.75	%	$	32,059
Tysons Station		09/01/11		7.40	%		5,761
Courtyard Shops		07/01/12		6.87	%		7,348
Bethesda Row		01/01/13		5.37	%		19,994
Bethesda Row		02/01/13		5.05	%		4,199
White Marsh Plaza (b)		04/01/13		6.04	%		9,651
Crow Canyon		08/11/13		5.40	%		20,503
Idylwood Plaza		06/05/14		7.50	%		16,608
Leesburg Plaza		06/05/14		7.50	%		28,898
Loehmann’s Plaza		06/05/14		7.50	%		37,368
Pentagon Row		06/05/14		7.50	%		53,643
Melville Mall (c)		09/01/14		5.25	%		23,254
THE AVENUE at White Marsh		01/01/15		5.46	%		58,093
Barracks Road		11/01/15		7.95	%		40,053
Hauppauge		11/01/15		7.95	%		15,099
Lawrence Park		11/01/15		7.95	%		28,390
Wildwood		11/01/15		7.95	%		24,954
Wynnewood		11/01/15		7.95	%		28,932
Brick Plaza		11/01/15		7.42	%		29,589
Rollingwood Apartments		05/01/19		5.54	%		23,648
Shoppers’ World		01/31/21		5.91	%		5,628
Mount Vernon (d)		04/15/28		5.66	%		11,029
Chelsea		01/15/31		5.36	%		7,833

Subtotal							532,534
Net unamortized discount							(445	)

Total mortgages payable							532,089					6.98	%

Notes payable
Unsecured fixed rate
Various (e)		Various thru 2013		3.61	%		11,540
Unsecured variable rate
Revolving credit facility (f)		07/27/11		LIBOR + 0.425	%		27,000
Escondido (Municipal bonds) (g)		10/01/16		0.39	%		9,400

Total notes payable							47,940					1.55	% (i)

Senior notes and debentures
Unsecured fixed rate
4.50% notes		02/15/11		4.50	%		75,000
6.00% notes		07/15/12		6.00	%		175,000
5.40% notes		12/01/13		5.40	%		135,000
5.95% notes		08/15/14		5.95	%		150,000
5.65% notes		06/01/16		5.65	%		125,000
6.20% notes		01/15/17		6.20	%		200,000
5.90% notes		04/01/20		5.90	%		150,000
7.48% debentures		08/15/26		7.48	%		29,200
6.82% medium term notes		08/01/27		6.82	%		40,000

Subtotal							1,079,200
Net unamortized premium							654

Total senior notes and debentures							1,079,854					5.95	%

Capital lease obligations
Various		Various through 2106		Various			61,306					6.94	%

Total debt and capital lease obligations						$	1,721,189

Total fixed rate debt and capital lease obligations						$	1,684,789		98	%		6.30	%
Total variable rate debt							36,400		2	%		0.83	% (i)

TOTAL DEBT AND CAPITAL LEASES OBLIGATIONS						$	1,721,189		100	%		6.18	% (i)

Three months ended
September 30,

Nine months ended
September 30,

2010

2009

2010

2009

Operational Statistics

Excluding litigation provision:

Ratio of EBITDA to combined fixed charges and preferred share dividends (j) (k)

3.08x

2.67x

3.03x

2.94x

Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (j) (k)

3.08x

2.67x

3.01x

2.92x

Including litigation provision:

Ratio of EBITDA to combined fixed charges and preferred share dividends (j)

3.08x

2.66x

3.02x

2.69x

Ratio of adjusted EBITDA to combined fixed charges and preferred share dividends (j)

3.08x

2.66x

3.01x

2.68x

Notes:

(a)	Mortgage loans do not include our 30% share ($17.3 million) of the $57.6 million debt of the partnership with a discretionary fund created and advised by ING Clarion Partners. It also excludes the $8.8 million mortgage loan on our Newbury Street Partnership for which we are the lender.

(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 $4.4 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 the activities that most significantly impact 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 interest rate of 3.61% represents the weighted average interest rate for three unsecured fixed rate notes payable. These notes mature between April 1, 2012 and January 31, 2013.

(f)

The maximum amount drawn under our revolving credit facility for the three and nine months ended September 30, 2010 was $42.0 million, and the weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 0.73% for the three and nine months ended September 30, 2010.

(g)	The bonds require monthly interest only payments through maturity. The bonds bear interest at a variable rate determined weekly which would enable the bonds to be remarketed at 100% of their principal amount. The property is not encumbered by a lien.

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

(i)	The weighted average effective interest rate excludes $0.2 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility which had a $27.0 million balance on September 30, 2010.

(j)

Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount/premium and debt costs and the portion of rent expense representing an interest factor. EBITDA includes a $1.4 million and $1.3 million gain on sale for the nine months ended September 30, 2010 and 2009, respectively. Fixed charges include $2.8 million of early extinguishment of debt for the nine months ended September 30, 2010 due to the write-off of unamortized debt fees related to the $250 million payoff of the term loan prior to its maturity date. Fixed charges include a $1.0 million net loss on early extinguishment of debt for the nine months ended September 30, 2009, primarily related to 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 $0.1 million and $0.3 million litigation provision charge for the three months ended September 30, 2010 and 2009, respectively, and $0.3 million and $21.1 million litigation provision charge for the nine months ended September 30, 2010 and 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 the appeal process.

Federal Realty Investment Trust

Summary of Debt Maturities

September 30, 2010



DEBT MATURITIES

(in thousands)
Year	Scheduled Amortization		Maturities			Total			Percent of Debt Maturing			Cumulative Percent of Debt Maturing			Weighted Average Rate (3)
2010	$	2,761	$	—		$	2,761			0.2	%		0.2	%		—
2011		12,438		139,252	(1)		151,690			8.8	%		9.0	%		4.5	%(4)
2012		12,691		191,916			204,607			11.9	%		20.9	%		5.8	%
2013		11,853		196,893			208,746			12.1	%		33.0	%		5.5	%
2014		10,225		297,864			308,089			17.9	%		50.9	%		6.9	%
2015		6,858		198,391			205,249			11.9	%		62.8	%		7.3	%
2016		2,902		134,400			137,302			8.0	%		70.8	%		5.4	%
2017		3,110		200,000			203,110			11.8	%		82.6	%		6.1	%
2018		3,321		—			3,321			0.2	%		82.8	%		—
Thereafter		53,067		243,038			296,105			17.2	%		100.0	%		6.4	%

Total	$	119,226	$	1,601,754		$	1,720,980	(2)		100.0	%

Notes:

(1)	Our $300 million revolving credit facility matures on July 27, 2011. As of September 30, 2010, there was $27.0 million outstanding on our revolving 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 September 30, 2010.

(3)	The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.

(4)	The weighted average rate excludes $0.2 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.

Federal Realty Investment Trust

Summary of Redevelopment Opportunities

September 30, 2010

Current Redevelopment Opportunities (1) ($ millions)


Property	Location		Opportunity	Projected ROI (2)			Projected Cost (1)		Cost to Date
Projects Anticipated to Stabilize in 2010 (3)
Bethesda Row (Hampden Lane)		Bethesda, MD	Construction of new three level building leased to fitness center and two additional ground level retail spaces.		10	%	$	14	$	12
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)		18	%	$	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	$	3
Lancaster		Lancaster, PA	Renovation and expansion of existing grocer, new bank pad, and façade renovation		10	%	$	2	$	1
Langhorne		Levittown, PA	Pad site addition		15	%	$	1	$	1
Brick		Brick, NJ	Redevelopment and expansion of existing pad site		14	%	$	1	$	0

Subtotal: Projects Anticipated to Stabilize in 2010 (3) (4)					12	%	$	28	$	22

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	$	35
Laurel		Laurel, MD	Pad preparation for new fitness operator, replacing theater and small shop space. Reconfigure parking lot entrance.		8	%	$	9	$	0
Crossroads		Highland Park, IL	Combine four spaces in preparation for new fitness operator, replacing vacant anchor and small shop space.		9	%	$	3	$	2
Atlantic Plaza (JV Property) (6)		North Reading, MA	Property improvements, including façade renovation, in preparation for new lease with grocery store		12	%	$	1	$	0

					6	%	$	57	$	37

Total: Projects Anticipated to Stabilize in 2010 and 2011 (3) (4) (5)					8	%	$	85	$	59



Potential future redevelopment pipeline includes (6):

Property	Location		Opportunity
Assembly Row		Somerville, MA	Potential substantial transit oriented mixed-use development
Assembly Square Marketplace		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	Pad site opportunity
Federal Plaza		Rockville, MD	Pad building opportunities
Flourtown		Flourtown, PA	Anchor re-tenanting, small shop renovation, and site improvements
Fresh Meadows		Queens, NY	Potential conversion of 2nd floor office space to retail
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
Santana Row		San Jose, CA	109 unit residential building under construction; expected to stabilize in 2012
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
Shops at 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.

(6)	ROI and costs for Atlantic Plaza reflect our 30% JV interest in the costs and revenue associated with the redevelopment.

Federal Realty Investment Trust

Real Estate Status Report

September 30, 2010


Property Name			MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)		GLA (2)		% Leased			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	$	199,735	$	25,224		520,000		96	%		40,000	Giant Food	Barnes & Noble / Landmark Theater / Apple Computer
Congressional Plaza	(5	)	Washington, DC-MD-VA	1965		70,648				332,000		100	%		28,000	Whole Foods	Buy Buy Baby / Container Store
Courthouse Center			Washington, DC-MD-VA	1997		4,365				36,000		85	%
Falls Plaza/Falls Plaza-East			Washington, DC-MD-VA	1967-1972		12,307				144,000		100	%		51,000	Giant Food	CVS / Staples
Federal Plaza			Washington, DC-MD-VA	1989		62,589		32,059		248,000		87	%				TJ Maxx / Micro Center / Ross / Trader Joe’s
Friendship Center			Washington, DC-MD-VA	2001		33,451				119,000		100	%				Borders / Maggiano’s
Gaithersburg Square			Washington, DC-MD-VA	1993		24,627				209,000		78	%				Bed, Bath & Beyond / Ross
Idylwood Plaza			Washington, DC-MD-VA	1994		15,931		16,608		73,000		100	%		30,000	Whole Foods
Laurel			Washington, DC-MD-VA	1986		47,569				388,000		86	%		61,000	Giant Food	Marshalls
Leesburg Plaza	(6	)	Washington, DC-MD-VA	1998		34,509		28,898		236,000		96	%		55,000	Giant Food	Petsmart / Pier One / Office Depot
Loehmann’s Plaza			Washington, DC-MD-VA	1983		32,635		37,368		268,000		97	%		58,000	Giant Food	Bally Total Fitness / Loehmann’s Dress Shop
Mid-Pike Plaza			Washington, DC-MD-VA	1982/2007		47,267				309,000		75	%				Toys R Us / Bally Total Fitness / AC Moore
Mount Vernon/South Valley/7770 Richmond Hwy	(6	)	Washington, DC-MD-VA	2003-2006		78,179		11,029		565,000		95	%		62,000	Shoppers Food Warehouse	Bed, Bath & Beyond / Michaels / Home Depot / TJ Maxx / Gold’s Gym
Old Keene Mill			Washington, DC-MD-VA	1976		5,973				92,000		95	%		24,000	Whole Foods	Walgreens
Pan Am			Washington, DC-MD-VA	1993		28,508				227,000		100	%		63,000	Safeway	Micro Center / Michaels
Pentagon Row			Washington, DC-MD-VA	1998		88,645		53,643		296,000		99	%		45,000	Harris Teeter	Bally Total Fitness / Bed, Bath & Beyond / DSW
Pike 7			Washington, DC-MD-VA	1997		35,509				164,000		100	%				DSW / Staples / TJ Maxx
Quince Orchard			Washington, DC-MD-VA	1993		21,582				248,000		63	%		24,000	Magruders	Staples
Rockville Town Square			Washington, DC-MD-VA	2006-2007		37,218				182,000		96	%				CVS / Gold’s Gym
Rollingwood Apartments			Washington, DC-MD-VA	1971		8,117		23,648		N/A		97	%
Sam’s Park & Shop			Washington, DC-MD-VA	1995		12,451				49,000		100	%				Petco
Tower			Washington, DC-MD-VA	1998		20,387				112,000		89	%				Talbots
Tyson’s Station			Washington, DC-MD-VA	1978		3,728		5,761		49,000		100	%				Trader Joe’s
Village at Shirlington	(4	)	Washington, DC-MD-VA	1995		53,014		6,318		255,000		99	%		28,000	Harris Teeter	AMC Loews / Carlyle Grand Café
Wildwood			Washington, DC-MD-VA	1969		17,970		24,954		85,000		97	%		20,000	Balducci’s	CVS

			Total Washington Metropolitan Area			996,914				5,206,000		92	%

Philadelphia Metropolitan Area
Andorra			Philadelphia, PA-NJ	1988		23,512				267,000		95	%		24,000	Acme Markets	Kohl’s / Staples / L.A. Fitness
Bala Cynwyd			Philadelphia, PA-NJ	1993		34,591				282,000		99	%		45,000	Acme Markets	Lord & Taylor / L.A. Fitness
Ellisburg Circle			Philadelphia, PA-NJ	1992		27,752				267,000		94	%		47,000	Genuardi’s	Buy Buy Baby / Stein Mart
Feasterville			Philadelphia, PA-NJ	1980		12,003				111,000		91	%		53,000	Genuardi’s	OfficeMax
Flourtown			Philadelphia, PA-NJ	1980		15,748				166,000		48	%		42,000	Genuardi’s
Langhorne Square			Philadelphia, PA-NJ	1985		20,201				219,000		94	%		55,000	Redner’s Warehouse Mkts.	Marshalls
Lawrence Park			Philadelphia, PA-NJ	1980		30,182		28,390		353,000		98	%		53,000	Acme Markets	CHI / TJ Maxx / HomeGoods
Northeast			Philadelphia, PA-NJ	1983		23,018				285,000		88	%				Burlington Coat / Marshalls
Town Center of New Britain			Philadelphia, PA-NJ	2006		14,429				124,000		87	%		36,000	Giant Food	Rite Aid
Willow Grove			Philadelphia, PA-NJ	1984		27,006				216,000		89	%				Barnes & Noble / Marshalls
Wynnewood			Philadelphia, PA-NJ	1996		37,259		28,932		255,000		97	%		98,000	Genuardi’s	Bed, Bath & Beyond / Borders / Old Navy

			Total Philadelphia Metropolitan Area			265,701				2,545,000		91	%

California
Colorado Blvd			Los Angeles-Long Beach, CA	1996-1998		16,643				69,000		100	%				Pottery Barn / Banana Republic
Crow Canyon			San Ramon, CA	2005-2007		65,151		20,503		242,000		89	%		58,000	Lucky	Loehmann’s / Rite Aid
Escondido	(7	)	San Diego, CA	1996		29,027				222,000		99	%				TJ Maxx / Toys R Us
Fifth Ave			San Diego, CA	1996-1997		12,969				51,000		95	%				Urban Outfitters
Hermosa Ave			Los Angeles-Long Beach, CA	1997		5,500				23,000		100	%
Hollywood Blvd	(8	)	Los Angeles-Long Beach, CA	1999		37,701				153,000		75	%				DSW / L.A. Fitness / Fresh & Easy
Kings Court	(6	)	San Jose, CA	1998		11,600				79,000		97	%		25,000	Lunardi’s Super Market	CVS
Old Town Center			San Jose, CA	1997		34,461				96,000		99	%				Borders / Gap Kids / Banana Republic
Santana Row			San Jose, CA	1997		545,355				592,000		98	%				Crate & Barrel / Container Store / Best Buy / Borders / CineArts Theatre / Hotel Valencia

Third St Promenade			Los Angeles-Long Beach, CA	1996-2000		77,955				209,000		99	%				J. Crew / Banana Republic / Old Navy / Abercrombie & Fitch
Westgate			San Jose, CA	2004		116,748				645,000		95	%		38,000	Safeway	Target / Burlington Coat Factory / Barnes & Noble / Ross / Michaels
150 Post Street			San Francisco, CA	1997		37,842				101,000		97	%				Brooks Brothers / H & M

			Total California			990,952				2,482,000		95	%

New York / New Jersey
Brick Plaza			Monmouth-Ocean, NJ	1989		58,046		29,589		409,000		98	%		66,000	A&P	AMC Loews / Barnes & Noble / Sports Authority
Forest Hills			New York, NY	1997		8,103				46,000		93	%				Midway Theatre
Fresh Meadows			New York, NY	1997		69,846				405,000		97	%				Kohl’s / AMC Loews
Hauppauge			Nassau-Suffolk, NY	1998		27,899		15,099		133,000		99	%		61,000	Shop Rite	AC Moore
Huntington			Nassau-Suffolk, NY	1988/2007		38,661				292,000		99	%				Buy Buy Baby / Toys R Us / Bed, Bath & Beyond / Barnes & Noble / Michaels
Huntington Square			Nassau-Suffolk, NY	2010		10,075				74,000		89	%				Barnes & Noble
Melville Mall	(9	)	Nassau-Suffolk, NY	2006		68,879		23,254		248,000		100	%		54,000	Waldbaum’s	Kohl’s / Marshalls
Mercer Mall	(4	)	Trenton, NJ	2003		104,964		49,050		499,000		99	%		75,000	Shop Rite	Bed, Bath & Beyond / DSW / TJ Maxx / Raymour & Flanigan
Troy			Newark, NJ	1980		25,337				207,000		88	%		64,000	Pathmark	L.A. Fitness

			Total New York / New Jersey			411,810				2,313,000		97	%

Federal Realty Investment Trust

Real Estate Status Report

September 30, 2010


Property Name			MSA Description	Year Acquired	Real Estate at Cost		Mortgage and/or Capital Lease Obligation (1)		GLA (2)		% Leased			Grocery Anchor GLA (3)		Grocery Anchor (3)	Other Principal Tenants
					(in thousands)		(in thousands)

New England
Assembly Square Marketplace/Assembly Row			Boston-Cambridge-Quincy, MA-NH	2005-2009		189,755				332,000		100	%				AC Moore / Bed, Bath & Beyond / Christmas Tree Shops / Kmart / Staples / Sports Authority / TJ Maxx
Chelsea Commons			Boston-Cambridge-Quincy, MA-NH	2006-2008		30,486		7,833		222,000		100	%		16,000	Sav-A-Lot	Home Depot
Dedham Plaza			Boston-Cambridge-Quincy, MA-NH	1993		32,683				244,000		93	%		80,000	Star Market
Linden Square			Boston-Cambridge-Quincy, MA-NH	2006		143,596				218,000		91	%		50,000	Roche Brothers Supermarkets	CVS
Newbury Street	(10	)	Boston-Cambridge-Quincy, MA-NH	2010		17,171				32,000		42	%				Pierre Deux / Jonathan Adler
North Dartmouth			Boston-Cambridge-Quincy, MA-NH	2006		9,368				48,000		100	%		48,000	Stop & Shop
Queen Anne Plaza			Boston-Cambridge-Quincy, MA-NH	1994		15,658				149,000		100	%		50,000	Hannaford	TJ Maxx
Saugus Plaza			Boston-Cambridge-Quincy, MA-NH	1996		13,635				170,000		92	%		55,000	Super Stop & Shop	Kmart

	(11	)	Total New England			435,181				1,383,000		96	%

Baltimore
Governor Plaza			Baltimore, MD	1985		24,099				267,000		100	%		16,500	Aldi	Bally Total Fitness / Office Depot
Perring Plaza			Baltimore, MD	1985		27,128				401,000		98	%		58,000	Shoppers Food Warehouse	Home Depot / Burlington Coat Factory / Jo-Ann Stores
THE AVENUE at White Marsh	(12	)	Baltimore, MD	2007		95,328		58,093		298,000		100	%				AMC Loews / Old Navy / Barnes & Noble / AC Moore
The Shoppes at Nottingham Square			Baltimore, MD	2007		27,569				53,000		100	%
White Marsh Plaza			Baltimore, MD	2007		25,021		9,651		80,000		100	%		54,000	Giant Food
White Marsh Other			Baltimore, MD	2007		28,860				49,000		100	%

			Total Baltimore			228,005				1,148,000		99	%

Chicago
Crossroads			Chicago, IL	1993		26,461				168,000		95	%				Golfsmith / Guitar Center
Finley Square			Chicago, IL	1995		31,841				315,000		99	%				Bed, Bath & Beyond / Buy Buy Baby / Petsmart
Garden Market			Chicago, IL	1994		12,155				140,000		96	%		63,000	Dominick’s	Walgreens
North Lake Commons			Chicago, IL	1994		14,047				129,000		89	%		77,000	Dominick’s

			Total Chicago			84,504				752,000		96	%

South Florida
Courtyard Shops			Miami-Ft Lauderdale	2008		39,621		7,348		130,000		88	%		49,000	Publix
Del Mar Village			Miami-Ft Lauderdale	2008		54,826				178,000		94	%		44,000	Winn Dixie	CVS

			Total South Florida			94,447				308,000		91	%

Other
Barracks Road			Charlottesville, VA	1985		49,558		40,053		486,000		98	%		99,000	Harris Teeter / Kroger	Anthropologie / Bed, Bath & Beyond / Barnes & Noble / Old Navy / Michaels / Ulta
Bristol Plaza			Hartford, CT	1995		28,003				269,000		84	%		74,000	Stop & Shop	TJ Maxx
Eastgate			Raleigh-Durham-Chapel Hill, NC	1986		26,362				153,000		100	%				Stein Mart / Trader Joe’s
Gratiot Plaza			Detroit, MI	1973		18,887				217,000		99	%		69,000	Kroger	Bed, Bath & Beyond / Best Buy / DSW
Greenwich Avenue			New Haven-Bridgeport-Stamford-Waterbury	1995		13,969				36,000		100	%				Saks Fifth Avenue
Houston St			San Antonio, TX	1998		64,020				196,000		83	%				Hotel Valencia / Walgreens
Lancaster	(13	)	Lancaster, PA	1980		12,570		4,907		107,000		100	%		39,000	Giant Food	Michaels
Shoppers’ World			Charlottesville, VA	2007		30,200		5,628		169,000		94	%		28,000	Whole Foods	Staples
Shops at Willow Lawn			Richmond-Petersburg, VA	1983		77,471				476,000		87	%		60,000	Kroger	Old Navy / Staples / Ross

			Total Other			321,040				2,109,000		93	%

Grand Total	(11	)			$	3,828,554	$	593,840		18,246,000		94	%

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)	The Trust has an 85% ownership interest in the property which is accounted for on the equity method.

(11)	Aggregate information is calculated on a GLA weighted-average basis, excluding properties acquired through the Taurus Newbury Street JV II Limited Partnership.

(12)	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.

(13)	Property subject to capital lease obligation.

Federal Realty Investment Trust

Retail Leasing Summary (1)

September 30, 2010

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.
3rd Quarter 2010		75		100	%		349,489	$	25.17	$	23.83	$	467,613		6	%		17	%		7.1	$	6,199,555	$	17.74
2nd Quarter 2010		80		100	%		307,567	$	27.62	$	26.64	$	301,098		4	%		13	%		7.4	$	4,431,806	$	14.41
1st Quarter 2010		69		100	%		307,962	$	29.19	$	25.11	$	1,255,084		16	%		27	%		6.5	$	6,919,627	$	22.47
4th Quarter 2009		82		100	%		360,218	$	27.58	$	26.64	$	337,501		4	%		13	%		7.0	$	4,550,199	$	12.63

Total - 12 months		306		100	%		1,325,236	$	27.33	$	25.54	$	2,361,296		7	%		17	%		7.0	$	22,101,187	$	16.68

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.
3rd Quarter 2010		29		39	%		132,033	$	27.10	$	25.79	$	172,909		5	%		16	%		8.2	$	6,089,555	$	46.12
2nd Quarter 2010		31		39	%		149,562	$	25.01	$	23.20	$	270,375		8	%		16	%		9.4	$	4,409,306	$	29.48
1st Quarter 2010		29		42	%		157,619	$	23.00	$	20.98	$	318,458		10	%		17	%		8.9	$	6,828,877	$	43.33
4th Quarter 2009		32		39	%		176,966	$	24.89	$	24.77	$	20,465		0	%		10	%		10.6	$	4,328,199	$	24.46

Total - 12 months		121		40	%		616,180	$	24.91	$	23.64	$	782,207		5	%		14	%		9.4	$	21,655,937	$	35.15

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.
3rd Quarter 2010		46		61	%		217,456	$	23.99	$	22.64	$	294,704		6	%		18	%		6.3	$	110,000	$	0.51
2nd Quarter 2010		49		61	%		158,005	$	30.09	$	29.90	$	30,723		1	%		11	%		5.8	$	22,500	$	0.14
1st Quarter 2010		40		58	%		150,343	$	35.67	$	29.44	$	936,626		21	%		35	%		4.9	$	90,750	$	0.60
4th Quarter 2009		50		61	%		183,252	$	30.17	$	28.44	$	317,036		6	%		16	%		4.1	$	222,000	$	1.21

Total - 12 months		185		60	%		709,056	$	29.43	$	27.20	$	1,579,089		8	%		20	%		5.3	$	445,250	$	0.63

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.
3rd Quarter 2010		77		395,649	$	24.44		7.3	$	8,891,735	$	22.47
2nd Quarter 2010		82		318,931	$	28.20		7.5	$	5,978,306	$	18.74
1st Quarter 2010		72		317,932	$	28.62		6.5	$	6,996,698	$	22.01
4th Quarter 2009		89		396,709	$	27.12		7.4	$	4,900,788	$	12.35

Total - 12 months		320		1,429,221	$	26.95		7.2	$	26,767,527	$	18.73

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.

Federal Realty Investment Trust

Lease Expirations

September 30, 2010

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		62,000		1	%	$	12.50		193,000		3	%	$	25.66		255,000		1	%	$	22.46
2011		725,000		8	%	$	14.58		980,000		13	%	$	29.42		1,705,000		10	%	$	23.11
2012		995,000		10	%	$	13.25		1,189,000		16	%	$	30.69		2,184,000		13	%	$	22.74
2013		1,042,000		11	%	$	15.45		1,012,000		13	%	$	32.71		2,054,000		12	%	$	23.95
2014		1,378,000		14	%	$	16.07		866,000		12	%	$	33.81		2,243,000		13	%	$	22.93
2015		826,000		9	%	$	13.94		939,000		13	%	$	29.59		1,766,000		10	%	$	22.25
2016		610,000		6	%	$	16.89		668,000		9	%	$	30.49		1,277,000		8	%	$	24.02
2017		620,000		6	%	$	17.28		442,000		6	%	$	29.98		1,062,000		6	%	$	22.57
2018		657,000		7	%	$	11.66		298,000		4	%	$	34.70		955,000		6	%	$	18.85
2019		487,000		5	%	$	17.41		239,000		3	%	$	39.46		726,000		4	%	$	24.67
Thereafter		2,197,000		23	%	$	17.18		635,000		8	%	$	36.49		2,833,000		17	%	$	21.50

Total (3)		9,599,000		100	%	$	15.54		7,461,000		100	%	$	31.76		17,060,000		100	%	$	22.64


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		37,000		0	%	$	12.11		160,000		2	%	$	24.69		196,000		1	%	$	22.44
2011		278,000		3	%	$	12.43		583,000		8	%	$	28.88		861,000		5	%	$	23.57
2012		172,000		2	%	$	13.47		676,000		9	%	$	30.95		849,000		5	%	$	27.37
2013		156,000		2	%	$	15.34		500,000		7	%	$	33.20		656,000		4	%	$	28.95
2014		205,000		2	%	$	9.64		517,000		7	%	$	36.00		722,000		4	%	$	28.52
2015		109,000		1	%	$	20.24		539,000		7	%	$	29.57		648,000		4	%	$	28.00
2016		182,000		2	%	$	19.92		482,000		7	%	$	30.37		663,000		4	%	$	27.54
2017		152,000		1	%	$	25.03		534,000		7	%	$	31.49		686,000		4	%	$	30.06
2018		290,000		3	%	$	14.79		447,000		6	%	$	36.52		737,000		4	%	$	27.97
2019		353,000		4	%	$	19.06		330,000		4	%	$	34.82		684,000		4	%	$	26.64
Thereafter		7,665,000		80	%	$	15.39		2,693,000		36	%	$	31.51		10,358,000		61	%	$	19.58

Total (3)		9,599,000		100	%	$	15.54		7,461,000		100	%	$	31.76		17,060,000		100	%	$	22.64

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 September 30, 2010.

(3)	Represents occupied square footage as of September 30, 2010.

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

Federal Realty Investment Trust

Portfolio Leased Statistics

September 30, 2010

Overall Portfolio Statistics (1)


	At September 30, 2010							At September 30, 2009
Type	Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties (2) (sf)		18,246,000		17,139,000		93.9	%		18,164,000		17,110,000		94.2	%
Residential Properties (3) (units)		903		874		96.8	%		903		840		93.0	%

Same Center Statistics (1)

	At September 30, 2010							At September 30, 2009
Type	Size		Leased		Leased %			Size		Leased		Leased %
Retail Properties (2) (4) (sf)		17,535,000		16,550,000		94.4	%		17,537,000		16,557,000		94.4	%
Residential Properties (3) (units)		903		874		96.8	%		903		840		93.0	%

Notes:

(1)	See Glossary of Terms.

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

(3)	Includes Rollingwood, The Crest at Congressional and the residential rental units at Santana Row and Bethesda Row.

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

Federal Realty Investment Trust

Summary of Top 25 Tenants

September 30, 2010


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.	$	10,236,000			2.65	%		658,000			3.61	%		15
2	Ahold USA, Inc.	$	8,820,000			2.28	%		592,000			3.24	%		11
3	TJX Companies	$	7,677,000			1.99	%		540,000			2.96	%		15
4	Safeway, Inc.	$	6,971,000			1.81	%		481,000			2.64	%		9
5	Gap, Inc.	$	6,737,000			1.74	%		220,000			1.21	%		11
6	CVS Corporation	$	6,357,000			1.65	%		205,000			1.12	%		18
7	Barnes & Noble, Inc.	$	5,370,000			1.39	%		230,000			1.26	%		9
8	L.A. Fitness International LLC	$	4,283,000			1.11	%		222,000			1.22	%		5
9	OPNET Technologies, Inc.	$	3,866,000			1.00	%		83,000			0.45	%		2
10	Best Buy Stores, L.P.	$	3,502,000			0.91	%		99,000			0.54	%		3
11	Staples, Inc.	$	3,429,000			0.89	%		187,000			1.02	%		9
12	Wells Fargo Bank, N.A. (includes Wachovia Corporation)	$	3,306,000			0.86	%		70,000			0.38	%		15
13	DSW, Inc	$	3,294,000			0.85	%		125,000			0.69	%		5
14	Supervalu Inc. (Acme/Sav-A-Lot/Star Mkt/Shoppers Food)	$	3,227,000			0.84	%		338,000			1.85	%		7
15	Bank of America, N.A.	$	3,096,000			0.80	%		68,000			0.37	%		20
16	Ross Stores, Inc.	$	2,842,000			0.74	%		148,000			0.81	%		5
17	Home Depot, Inc.	$	2,832,000			0.73	%		335,000			1.84	%		4
18	Kohl’s Corporation	$	2,793,000			0.72	%		322,000			1.76	%		3
19	Wakefern Food Corporation	$	2,783,000			0.72	%		136,000			0.75	%		2
20	Bally Total Fitness Corporation	$	2,618,000			0.68	%		156,000			0.85	%		5
21	Great Atlantic & Pacific Tea Co	$	2,517,000			0.65	%		217,000			1.19	%		4
22	Container Store, Inc.	$	2,496,000			0.65	%		52,000			0.28	%		2
23	A.C. Moore, Inc.	$	2,483,000			0.64	%		141,000			0.77	%		6
24	Dress Barn, Inc.	$	2,379,000			0.62	%		103,000			0.56	%		14
25	AMC Entertainment Inc.	$	2,378,000			0.62	%		166,000			0.91	%		4

	Totals - Top 25 Tenants	$	106,292,000			27.54	%		5,894,000			32.28	%		203

	Total: (1)	$	386,178,000	(2)					18,246,000	(3)					1,739

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 September 30, 2010.

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

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

Federal Realty Investment Trust

Reconciliation of Net Income to FFO Guidance

September 30, 2010


	2010 Guidance
	(Dollars in millions except
	per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income	$	126		$	127
Net income attributable to noncontrolling interests		(5	)		(5	)
Gain on sale of real estate		(1	)		(1	)
Depreciation and amortization of real estate & joint venture real estate assets		109			109
Amortization of initial direct costs of leases		9			9

Funds from operations		237			239
Dividends on preferred shares		(1	)		(1	)
Income attributable to operating partnership units		1			1
Income attributable to unvested shares		(1	)		(1	)

FFO		237			238
Litigation provision (2)		1			1

FFO excluding litigation provision	$	238		$	239


Weighted average number of common shares, diluted		61.7			61.7

FFO per diluted share	$	3.84		$	3.86
Litigation provision		0.01			0.01

FFO per diluted share excluding litigation provision	$	3.85		$	3.87


	2011 Guidance
	(Dollars in millions except
	per share amounts) (1)
Funds from Operations available for common shareholders (FFO)
Net income	$	131		$	135
Net income attributable to noncontrolling interests		(5	)		(5	)
Gain on sale of real estate		—			—
Depreciation and amortization of real estate & joint venture real estate assets		111			111
Amortization of initial direct costs of leases		9			9

Funds from operations		245			250
Dividends on preferred shares		(1	)		(1	)
Income attributable to operating partnership units		1			1
Income attributable to unvested shares		(1	)		(1	)

FFO	$	245		$	249


Weighted average number of common shares, diluted		61.9			61.9

FFO per diluted share	$	3.95		$	4.02

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.

Federal Realty Investment Trust

Summarized Income Statements and Balance Sheets - 30% Owned Joint Venture

September 30, 2010

CONSOLIDATED INCOME STATEMENTS


	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
Revenues
Rental income	$	4,499		$	4,377		$	13,637		$	13,832
Other property income		11			650			51			691

		4,510			5,027			13,688			14,523
Expenses
Rental		741			734			2,894			2,646
Real estate taxes		581			589			1,770			1,661
Depreciation and amortization		1,259			1,278			3,771			3,764

		2,581			2,601			8,435			8,071

Operating income		1,929			2,426			5,253			6,452
Interest expense		(849	)		(1,131	)		(2,551	)		(3,396	)

Net income	$	1,080		$	1,295		$	2,702		$	3,056



CONSOLIDATED BALANCE SHEETS

	September 30, 2010			December 31, 2009
	(in thousands)
ASSETS
Real estate, at cost	$	205,205		$	203,122
Less accumulated depreciation and amortization		(23,044	)		(19,365	)

Net real estate		182,161			183,757
Cash and cash equivalents		3,291			2,959
Other assets		7,607			6,853

TOTAL ASSETS	$	193,059		$	193,569

LIABILITIES AND PARTNERS’ CAPITAL
Liabilities
Mortgages payable	$	57,634		$	57,780
Other liabilities		5,812			6,101

Total liabilities		63,446			63,881
Partners’ capital		129,613			129,688

TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	193,059		$	193,569

Federal Realty Investment Trust

Summary of Outstanding Debt and Debt Maturities - 30% Owned Joint Venture

September 30, 2010

OUTSTANDING DEBT

Maturity

Stated
Interest Rate as of
September 30, 2010

Balance

(in thousands)

Mortgage Loans

Secured Fixed Rate

Plaza del Mercado

07/05/14

5.77

% (a)

12,749

Atlantic Plaza

12/01/14

5.12

% (b)

10,500

Barcroft Plaza

07/01/16

5.99

% (b)(c)

20,785

Greenlawn Plaza

07/01/16

5.90

% (b)

13,600

Total Fixed Rate Debt

57,634

Debt Maturities

(in thousands)


Year	Scheduled Amortization		Maturities		Total		Percent of Debt Maturing			Cumulative Percent of Debt Maturing
2010	$	50	$	—	$	50		0.1	%		0.1	%
2011		208		—		208		0.4	%		0.5	%
2012		220		—		220		0.4	%		0.9	%
2013		233		—		233		0.4	%		1.3	%
2014		142		22,396		22,538		39.1	%		40.4	%
2015		—		—		—		0.0	%		40.4	%
2016		—		34,385		34,385		59.6	%		100.0	%

Total	$	853	$	56,781	$	57,634		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%.

Federal Realty Investment Trust

Real Estate Status Report - 30% Owned Joint Venture

September 30, 2010


Property Name	MSA Description	Year Acquired		Real Estate at Cost		Mortgage or Capital Lease Obligation		GLA		% Leased			Grocery Anchor GLA (1)		Grocery Anchor	Other Principal Tenants
				(in thousands)		(in thousands)
Washington Metropolitan Area
Barcroft Plaza	Washington, DC-MD-VA		2006-2007	$	34,225	$	20,785		101,000		88	%		46,000	Harris Teeter	Bank of America
Free State Shopping Center	Washington, DC-MD-VA		2007		65,888				279,000		88	%		73,000	Giant Food	TJ Maxx / Ross/ Office Depot
Plaza del Mercado	Washington, DC-MD-VA		2004		21,490		12,749		96,000		93	%		25,000	Giant Food	CVS

	Total Washington Metropolitan Area				121,603				476,000		89	%
New York / New Jersey
Greenlawn Plaza	Nassau-Suffolk, NY		2006		20,020		13,600		106,000		99	%		46,000	Waldbaum’s	Tuesday Morning

	Total New York / New Jersey				20,020				106,000		99	%
New England
Atlantic Plaza	Boston-Worcester-Lawrence-Lowell-Brockton, MA		2004		18,324		10,500		123,000		91	%				Sears
Campus Plaza	Boston-Worcester-Lawrence-Lowell-Brockton, MA		2004		22,212				117,000		94	%		46,000	Roche Brothers	Burlington Coat Factory
Pleasant Shops	Boston-Worcester-Lawrence-Lowell-Brockton, MA		2004		23,046				129,000		92	%		38,000	Foodmaster	Marshalls

	Total New England				63,582				369,000		92	%

Grand Totals				$	205,205	$	57,634		951,000		91	%

Note:

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

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 and nine months ended September 30, 2010 and 2009 is as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
Net income attributable to the Trust	$	29,640		$	27,433		$	89,974		$	66,334
Depreciation and amortization		29,591			28,410			89,701			86,635
Interest expense		25,299			30,209			76,679			79,622
Early extinguishment of debt		—			—			2,801			968
Other interest income		(18	)		(924	)		(233	)		(1,274	)

EBITDA		84,512			85,128			258,922			232,285
Gain on sale of real estate		—			—			(1,410	)		(1,298	)

Adjusted EBITDA	$	84,512		$	85,128		$	257,512		$	230,987

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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