<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 30, 1998
Federal Realty Investment Trust
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
District of Columbia 1-7533 52-0782497
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1626 East Jefferson Street, Rockville, Maryland 20852-4041
----------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: 301/998-8100
------------
Exhibit Index appears on Page 3.
<PAGE>
Item 5. Other Events
Federal Realty Investment Trust hereby files as exhibit 99 the
following supplemental data pertaining to its portfolio of properties at
June 30, 1998.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at June 30, 1998
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FEDERAL REALTY INVESTMENT TRUST
Date: August 6, 1998 /s/ Cecily A. Ward
-------------------------------
Cecily A. Ward
Vice President, Controller
-2-
<PAGE>
EXHIBIT INDEX
Exh No. Exhibit
- ------- ------- Page No.
--------
99 Supplemental portfolio information at June 30, 1998 4
-3-
<PAGE>
FEDERAL REALTY INVESTMENT TRUST
================================================================================
Supplemental Information
June 30, 1998
================================================================================
TABLE OF CONTENTS
1. Debt Summary............................................................E-2
2. Occupancy
Percentage Leased.................................................E-3
Economic Occupancy................................................E-4
Regional Breakdown................................................E-5
3. Leases Signed Analysis
Comparable and Non-Comparable.....................................E-6
4. Press Release...........................................................E-7
5. Glossary of Terms......................................................E-10
================================================================================
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100
<PAGE>
FEDERAL REALTY INVESTMENT TRUST
DEBT ANALYSIS (excluding capital leases and interest rate swaps)
June 30, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance
Maturity Rate (in thousands)
Mortgages
Loehmanns Plaza 07/21/98 9.75% 6,274
Federal Plaza 03/10/01 8.95% 27,854
Tysons Station 09/01/01 9.875% 4,174
Bristol 08/01/98 9.65% 10,674
Escondido (Municipal bonds) purchased 12/31/96 10/01/16 Variable ## 9,400
--------
$ 58,376
========
Notes payable
Revolving credit facilities libor +.65% $121,000
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,112
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,738
Other various various 229
--------
$125,079
========
Unsecured Public Debt
5 1/4% Convertible subordinated 04/30/02 5.250% $ 289
debentures
5 1/4% Convertible subordinated 10/28/03 5.250% 75,000
debentures
8 7/8% Notes (fixed) 01/15/00 8.875% 75,000
8 7/8% Notes (fixed) * 01/15/00 7.530% 25,000
8% Notes (fixed) 04/21/02 8.000% 25,000
6 5/8% Notes (fixed) 12/01/05 6.625% 40,000
7.48% Debentures 08/15/26 7.480% 50,000
6.82% Medium Term Notes 08/01/27 6.820% 40,000
6.74% Medium Term Notes * 03/10/06 6.370% 39,500
6.99% Medium Term Notes * 03/10/06 6.894% 40,500
--------
$410,289
========
Total fixed rate debt $463,344 78.04%
Total variable rate debt 130,400 21.96%
------- ------
Total debt $593,744 100.00%
======== ======
Weighted average interest rate:
-------------------------------
Fixed rate debt 7.30%
Variable on revolving facilities 6.20%**
Variable on municipal bonds ##
</TABLE>
* The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
** Weighted average interest rate on revolving credit facilities for six months
ended June 30,1998.
## The bonds bear interest at a variable rate determined weekly to be the
interest rate which would enable the bonds to be remarketed at 100% of
their principal amount.
<PAGE>
FEDERAL REALTY INVESTMENT TRUST
PERCENTAGE LEASED ANALYSIS
JUNE 30, 1998
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Overall Occupancy
(Quarter to Quarter Analysis) June 30, 1998 June 30, 1997
------------------------------- ---------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- ----------- ----------- ----------- ---------
Retail Properties (leasable square feet) 13,658,940 12,989,036 95% 12,770,492 11,986,868 94%
Rollingwood Apartments (# of units) 282 281 99% 282 280 99%
Overall Occupancy
(Rolling 12 Months) June 30, 1998 March 31, 1998
----------------------------------- ---------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- ----------- ----------- ----------- ---------
Retail Properties (leasable square feet) 13,658,940 12,989,036 95% 13,518,261 12,923,203 96%
Rollingwood Apartments (# of units) 282 281 99% 282 280 99%
Overall Occupancy
(Rolling 12 Months) December 31, 1997 September 30, 1997
------------------------------------ -----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Retail Properties (leasable square feet) 13,518,197 12,919,532 96% 12,856,798 12,202,952 95%
Rollingwood Apartments (# of units) 282 279 99% 282 282 100%
Same Center Occupancy
(Quarter to Quarter Comparison) June 30, 1998 June 30, 1997
----------------------------------- ---------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- ----------- ----------- ----------- ---------
Retail Properties (leasable square feet) 11,938,810 11,358,594 95% 11,821,443 11,186,570 95%
Rollingwood Apartments (# of units) 282 281 99% 282 280 99%
Same Center Occupancy
(Rolling 12 Months) At June 30, 1998 At March 31, 1998
----------------------------------- ---------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- ----------- ----------- ----------- ---------
Retail Properties (leasable square feet) 11,938,810 11,358,594 95% 11,652,173 11,119,804 95%
Rollingwood Apartments (# of units) 282 281 99% 282 280 99%
Same Center Occupancy
(Rolling 12 Months) At December 31, 1997 At September 30, 1997
------------------------------------ -----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------- ----------- ----------- --------- ----------- ----------- ---------
Retail Properties (leasable square feet) 12,188,308 11,639,769 95% 11,096,212 10,577,015 95%
Rollingwood Apartments (# of units) 282 279 99% 282 282 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FEDERAL REALTY INVESTMENT TRUST
ECONOMIC OCCUPANCY ANALYSIS
JUNE 30, 1998
Overall Economic Occupancy
(Quarter to Quarter Analysis) June 30, 1998 June 30, 1997
-------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 13,658,940 12,778,700 94% 12,770,492 11,724,538 92%
Rollingwood Apartments (# of units) 282 274 97% 282 280 99%
Overall Economic Occupancy
(Rolling 12 Months) June 30, 1998 March 31, 1998
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 13,658,940 12,778,700 94% 13,518,261 12,619,318 93%
Rollingwood Apartments (# of units) 282 274 97% 282 280 99%
December 31, 1997 September 30, 1997
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 13,518,197 12,757,485 94% 12,856,798 12,056,781 94%
Rollingwood Apartments (# of units) 282 279 99% 282 276 98%
Same Center Economic Occupancy
(Quarter to Quarter Comparison) June 30, 1998 June 30, 1997
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 11,938,810 11,167,083 94% 11,821,443 10,937,511 93%
Rollingwood Apartments (# of units) 282 274 97% 282 280 99%
Same Center Economic Occupancy
(Rolling 12 Months) June 30, 1998 At March 31, 1998
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 11,938,810 11,167,083 94% 11,652,173 10,819,572 93%
Rollingwood Apartments (# of units) 282 274 97% 282 280 99%
At December 31, 1997 At September 30, 1997
-------------------------------------- ---------------------------------------
Leases Leases
Generating Economic Generating Economic
Type Size Income Occupancy Size Income Occupancy
- ------------------------------- ----------- -------------- --------- ----------- --------------- ---------
Retail Properties (leasable square feet) 12,188,308 11,486,609 94% 11,096,212 10,433,345 94%
Rollingwood Apartments (# of units) 282 279 99% 282 276 98%
</TABLE>
<PAGE>
FEDERAL REALTY INVESTMENT TRUST
REGIONAL OCCUPANCY ANALYSIS
JUNE 30, 1998
- ------------------------------------------------------
Total Square Occupancy
Region Footage 06/30/98
- ----------------------- -------------- -------------
Northeast 6,010,804 96%
Mid-Atlantic 5,301,511 97%
Mid-West 842,401 94%
Southeast 634,076 76%
West Coast 830,573 94%
Southwest 39,575 95%
- ------------------------------------------------------
Total Square Occupancy
Region Footage 06/30/98
- ----------------------- -------------- -------------
Northeast
Anchor 3,645,394 97%
Small Shops 2,365,410 94%
Mid-Atlantic
Anchor 2,562,251 100%
Small Shops 2,739,260 94%
Mid-West
Anchor 517,014 97%
Small Shops 325,387 88%
Southeast
Anchor 302,245 67%
Small Shops 331,831 85%
West Coast
Anchor 88,095 100%
Small Shops 742,478 93%
Southwest
Anchor 0 0%
Small Shops 39,575 95%
<PAGE>
<TABLE>
<CAPTION>
Federal Realty Investment Trust
Leasing Activity
June 30, 1998
COMPARABLE
<S> <C> <C> <C> <C> <C>
Weighted Average Prior Average Current
Number of Square Average Lease Rent Per Rent Per
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot
- ---------------------- -------------- ----------- --------------- ------------------ ---------------
2nd Quarter 1998 68 241,132 7.8 $15.33 $20.14
1st Quarter 1998 78 304,204 7.0 $15.38 $17.43
4th Quarter 1997 72 272,820 9.2 $17.07 $19.60
3rd Quarter 1997 69 270,550 7.9 $14.21 $16.12
Total 287 1,088,706 8.0 $15.50 $18.25
</TABLE>
<TABLE>
<S> <C> <C> <C>
Estimated
Percentage Tenant
Annualized Increase Improvement
Rolling 12 Months Increase in Rent over Prior Rent Costs
- ---------------------- ---------------- --------------- -------------
2nd Quarter 1998 $1,160,247 31% $933,000
1st Quarter 1998 $623,425 13% $990,000
4th Quarter 1997 $690,291 15% $923,000
3rd Quarter 1997 $518,342 13% $1,269,000
Total $2,992,305 18% $4,115,000
</TABLE>
<TABLE>
NON-COMPARABLE
<S> <C> <C> <C> <C> <C> <C>
Weighted Estimated
Average Annualized Tenant
Number of Square Lease Average Rent Current Improvement
Rolling 12 Months Leases Signed Feet Term (Years) Per Square Foot Rent Costs
- ---------------------- -------------- ----------- --------------- ------------------ --------------- ----------------
2nd Quarter 1998 15 63,474 9.3 $14.30 $907,455 $78,000
1st Quarter 1998 10 55,877 12.1 $22.49 $1,256,594 $585,000
4th Quarter 1997 10 40,744 11.9 $21.03 $857,046 $90,000
3rd Quarter 1997 15 99,537 10.0 $18.60 $1,851,254 $133,000
Total 50 259,632 10.8 $18.77 $4,872,349 $886,000
</TABLE>
<PAGE>
GLOSSARY OF TERMS
AVERAGE OCCUPANCY COSTS: Includes rent, common area maintenance expense, real
estate taxes, merchant association dues and other charges
ECONOMIC OCCUPANCY: The square footage generating rental income expressed as a
percentage of its total rentable square feet.
LEASES SIGNED - COMPARABLE: Represents leases signed on spaces for which there
was a former tenant.
LEASES SIGNED - NONCOMPARABLE: Represents leases signed on spaces for which
there was no previous tenant, i.e. expansion space or space that was previously
non-leasable.
LEASES SIGNED - PRIOR RENT: Total rent paid by the previous tenant; includes
minimum and percentage rent.
OCCUPANCY: The currently leased portion of a property expressed as a percentage
of its total rentable square feet; includes square feet covered by leases for
stores not yet opened.
OVERALL OCCUPANCY: Occupancy for the entire portfolio -- includes all centers
owned in reporting period.
SAME CENTER OCCUPANCY: Occupancy for only those centers owned and operating in
the periods being compared. Excludes centers purchased or sold as well as
properties under redevelopment.
TENANT IMPROVEMENT COSTS: Represents the total dollars committed for the
improvement (fit-out) of a space as relates to a specific lease. The amounts
shown represent not only the estimated cost to fit-out the tenant space, but may
also include base building costs (i.e. expansion, escalators or new entrances)
which are required to make the space leasable.
<PAGE>
Kathy Klein
Vice President
Corporate Communications
301/998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
SECOND QUARTER 1998 OPERATING RESULTS
August 5, 1998
Rockville, Maryland
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the second quarter of 1998 increased 5% to $20.9 million from
$19.9 million in the second quarter of 1997. On a per share basis, funds from
operations rose 2% to $.52 in the second quarter of 1998 from $.51 in the
comparable quarter of 1997. Excluding the impact of prospective changes in
accounting policies (EITF 97-11) requiring that internal acquisition costs be
expensed rather than capitalized and acquisition write-offs, funds from
operations per share for the second quarter would have increased 8% to $.55 in
1998 from $.51 in the second quarter of 1997.
A comparison of property operations for the second quarter of 1998 versus
the second quarter of 1997 shows the following:
. Rental income increased 15% to $54.1 million in 1998 from $47.1 million in
1997. When adjusted to exclude properties acquired and sold during 1997 and
1998, rental income increased 4% to $46.1 million in 1998 from $44.2
million in 1997.
. Net operating income increased 19% to $40.0 million in 1998 from $33.7
million in 1997. When adjusted to exclude properties acquired and sold
during 1997 and 1998, net operating income increased 9% to $34.6 million in
1998 from $31.7 million in 1997.
-MORE-
<PAGE>
. During the second quarter of 1998, the Trust signed leases for a total
305,000 square feet of retail space. On a same space basis, the Trust
re-leased 241,000 square feet of retail space at an average increase in
rent per square foot of 31%. The weighted average rent on these leases was
$20.14 per square foot compared to the previous average rent of $15.33 per
square foot.
. Same property occupancy stood at 95% at both June 30, 1998 and 1997. At
June 30, 1998, the Trust's overall portfolio was 95% leased compared to 94%
a year ago.
Funds from operations also improved for the first six months of 1998
increasing 8% to $42.2 million or from $38.9 million in the first half of 1997.
On a per share basis, funds from operations advanced 4% to $1.05 per share for
the first six months of 1998 compared to $1.01 for the comparable period of
1997. If adjusted to exclude the impact of accounting changes and acquisition
write-offs, funds from operations per share for the first six months of 1998
would have increased 8% to $1.09 from $1.01 for the first half of 1997.
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "While recent market conditions have made it difficult to
acquire assets that add long-term value at attractive prices, we continue to
focus keenly on improving margins in our existing portfolio and on creating a
development pipeline of unique street retail assets. Federal's core portfolio
continues to perform well and with a comprehensive reengineering effort
currently in progress, is expected to continue to improve during the balance of
this year and into 1999."
Federal Realty is an equity real estate investment trust specializing in
the ownership, management and redevelopment of prime retail properties. The
Trust's real estate portfolio contains 116 retail properties, consisting of
neighborhood and community shopping centers and main street retail properties,
located in strategic metropolitan markets across the United States. These
markets include Boston, New York, Philadelphia, Washington D.C., Chicago, San
Antonio, Portland, San Francisco, Los Angeles, San Jose and San Diego.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962 and has increased its dividend rate for
30 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol:FRT.
###
<PAGE>
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
Operating Results 1998 1997 1998 1997
- ----------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues
Rental income $54,127 $ 47,061 $ 106,608 $ 90,981
Interest and other income 1,341 1,448 2,935 2,948
Other property income 2,934 2,293 5,036 5,520
------- -------- ---------- ----------
58,402 50,802 114,579 99,449
Expenses
Rental 11,347 10,789 23,269 21,005
Real estate taxes 5,745 4,892 11,217 9,466
Interest 13,404 11,999 26,097 23,988
Administrative 3,995 2,493 5,836 4,594
Depreciation and amortization 11,203 10,404 21,972 20,528
------- -------- ---------- ----------
45,694 40,577 88,391 79,581
------- -------- ---------- ----------
Operating income before investors' share of
operations and gain on sale of real estate 12,708 10,225 26,188 19,868
investor's share of operations (745) (249) (1,531) (581)
------- -------- ---------- ----------
Income before gain on sale of real estate 11,963 9,976 24,657 19,287
Gain on sale of real estate - 7,034 - 7,034
------- -------- ---------- ----------
Net income $11,963 $ 17,010 $ 24,657 $ 26,321
Dividends on preferred stock (1,987) - (3,975) -
------- -------- ---------- ----------
Net income available for common shareholders $ 9,976 $ 17,010 $ 20,682 $ 26,321
======= ======== ========== ==========
Earnings per common share, basic $ 0.26 $ 0.44 $ 0.53 $ 0.69
======= ======== ========== ==========
Earnings per common share, diluted $ 0.25 $ 0.43 $ 0.53 $ 0.68
======= ======== ========== ==========
Weighted average shares outstanding, basic 39,122 38,754 39,057 38,126
Weighted average shares outstanding, diluted 39,900 39,200 39,896 38,616
Funds From Operations
Net income available for common shareholders $ 9,976 $ 17,010 $ 20,682 $ 26,321
Less: gain on sale of real estate - (7,034) - (7,034)
Add: depreciation and amortization
of real estate assets 10,168 9,354 19,906 18,418
Add: amortization of initial direct
costs of leases 588 564 1,181 1,148
Add: income attributable to operating
partnership units 207 - 414 -
------- -------- ---------- ----------
Funds from operations, diluted $20,939 $ 19,894 $ 42,183 $ 38,853
======= ======== ========== ==========
Funds from operations per share, diluted $ 0.52(1) $ 0.51 $ 1.05 $ 1.01
======= ======== ========== ==========
</TABLE>
(1) FFO per share for the second quarter was $.55 or 8% better than the 1997
second quarter when excluding the impact of prospective changes in
accounting policies (EITF 97-11) and acquisition write-offs.
<TABLE>
<CAPTION>
Balance Sheet Data 1998 1997
- ------------------ ---------- ------------
<S> <C> <C>
Assets
Real estate, at cost $1,513,127 $1,453,639
Accumulated depreciation and amortization (265,622) (247,497)
---------- ----------
1,247,505 1,206,142
Mortgage notes receivable 34,883 38,360
Cash and investments 13,554 17,043
Receivables 17,711 18,794
Other assets 38,025 36,234
---------- ----------
Total Assets $1,351,678 $1,316,573
========== ==========
Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $ 180,949 $ 221,573
Notes payable 125,079 119,028
Senior Notes 335,000 255,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 90,552 91,873
Shareholders' Equity 544,809 553,810
---------- ----------
Total Liabilities and Shareholders' Equity $1,351,678 $1,316,573
========== ==========
</TABLE>
