<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) September 30, 1999
Federal Realty Investment Trust
-------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C> <C>
Maryland 1-7533 52-0782497
-------------------- ----------- ---------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
</TABLE>
1626 East Jefferson Street, Rockville, Maryland 20852-4041
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(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
September 30, 1999.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 Supplemental portfolio information at September 30, 1999
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: November 3, 1999 //Cecily A. Ward//
------------------
Cecily A. Ward
Vice President, Controller
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exh No. Exhibit Page
- ------- ------- -----
<S> <C> <C>
99 Supplemental portfolio information at September 30, 1999 4
</TABLE>
-3-
<PAGE>
FEDERAL REALTY INVESTMENT TRUST
Supplemental Information
September 30, 1999
TABLE OF CONTENTS
<TABLE>
<S> <C> <C>
1. Debt Summary......................................................... E-2
2. Occupancy
Percentage Leased.............................................. E-3
Regional Breakdown............................................. E-4
3. Leases Signed Analysis
Comparable and Non-Comparable.................................. E-5
4. Street Retail Operating & Development Overview....................... E-6
5. 3rd Quarter Earnings Press Release, November 3, 1999................. E-7
6. Glossary of Terms.................................................... E-10
</TABLE>
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)
September 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Balance
Maturity Rate (in thousands)
------------------ ------------- ------------------
<S> <C> <C> <C> <C>
Mortgages
Leesburg Plaza 10/01/08 6.10% $ 9,900
Federal Plaza 03/10/01 8.95% 27,297
Tysons Station 09/01/01 9.875% 4,087
Escondido (Municipal bonds) 10/01/16 Variable (a) 9,400
$ 50,684
Notes payable
Revolving credit facilities libor +.65% $213,000
Term note with banks libor +.75% 125,000
Note issued in connection with
tenant buyout at Queen Anne Plaza 01/15/06 8.875% 1,011
Note issued in connection with
renovation of Perring Plaza 01/31/13 10.00% 2,628
Other various various 166
$341,805
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) (b) 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 (b) 03/10/04 6.370% 39,500
6.99% Medium Term Notes (b) 03/10/06 6.894% 40,500
$410,289
Total fixed rate debt $455,378 56.73%
Total variable rate debt 347,400 43.27%
------------ ---------
Total debt $802,778 100.00%
============ =========
Weighted average interest rate:
-------------------------------
Fixed rate debt 7.19%
Variable on revolving facilities 5.80% (c)
Variable on muncipal bonds (a)
</TABLE>
(a) 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.
(b) The Trust purchased interest rate swaps or hedges on these notes, thereby
decreasing the effective interest.
(c) Weighted average interest rate on revolving credit facilities for nine
months ended September 30, 1999.
<PAGE>
Federal Realty Investment Trust
Percentage Leased Analysis
September 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Overall Operating Occupancy
(Quarter to Quarter Analysis) September 30, 1999 September 30, 1998
---------------------------------------------- -----------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- ----------- --------------- -------------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 14,348,626 13,658,207 95.2% 14,419,458 13,739,610 95.3%
Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
<CAPTION>
Overall Operating Occupancy
(Rolling 12 Months) September 30, 1999 June 30, 1999
--------------------------------------------- ---------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- -------------- ------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 14,348,626 13,658,207 95.2% 14,541,750 13,797,209 94.9%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
<CAPTION>
Overall Operating Occupancy
(Rolling 12 Months) March 31, 1999 December 31, 1998
--------------------------------------------- ----------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- -------------- ------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 14,563,620 13,839,142 95% 14,497,898 13,803,336 95%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Same Center Occupancy
(Quarter to Quarter Comparison) September 30, 1999 September 30, 1998
Type Size Leased Occupancy Size Leased Occupancy
--------------------------------------- ---------- --------- -------------- -------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 14,304,720 13,613,931 95.2% 14,078,641 13,412,232 95.3%
Rollingwood Apartments (# of units) 282 282 100% 282 282 100%
<CAPTION>
Same Center Occupancy
(Rolling 12 Months) September 30, 1999 June 30, 1999
--------------------------------------------------------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- --------------------------------------- ------------- ----------- -------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 14,304,720 13,613,931 95.2% 13,622,710 12,891,283 94.6%
Rollingwood Apartments (# of units) 282 282 100% 282 280 99%
<CAPTION>
Same Center Occupancy
(Rolling 12 Months) March 31, 1999 December 31, 1998
---------------------------------------------------------------------------------------
Type Size Leased Occupancy Size Leased Occupancy
- ---------------------------------------- --------------- ---------- ------------ ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail Properties (leasable square feet) 13,091,729 12,404,610 95% 13,102,582 12,451,743 95%
Rollingwood Apartments (# of units) 282 278 99% 282 281 99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Federal Realty Investment Trust
Regional Occupancy Analysis
September 30, 1999
- ----------------------------------------------------------------------------------
Total Square Occupancy
<S> <C> <C>
Region Footage 09/30/99
- ------------------------------- --------------------- --------------------
Northeast 6,052,089 96.0%
Mid-Atlantic 5,688,578 96.6%
Mid-West 988,206 94.2%
Southeast 635,890 74.6%
West Coast 944,331 96.2%
Southwest 39,532 100.0%
- ----------------------------------------------------------------------------------
Total Square Occupancy
Region Footage 09/30/99
- ------------------------------- --------------------- --------------------
Northeast 6,052,089 96.0%
Anchor 3,450,429 98.3%
Small Shops 2,601,660 92.9%
Mid-Atlantic 5,688,578 96.6%
Anchor 2,772,082 100.0%
Small Shops 2,916,496 93.4%
Mid-West 988,206 94.2%
Anchor 585,978 97.7%
Small Shops 402,228 89.0%
Southeast 635,890 74.6%
Anchor 304,894 67.6%
Small Shops 330,996 81.1%
West Coast 944,331 96.2%
Anchor 192,292 100.0%
Small Shops 752,039 95.2%
Southwest 39,532 100.0%
Anchor 0 0%
Small Shops 39,532 100.0%
</TABLE>
<PAGE>
Federal Realty Investment Trust
Retail Leasing Activity
September 30, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Comparable
Weighted Average Prior Average Current
Number of Square Average Lease Rent Per Rent Per Annualized
Rolling 12 Months Leases Signed Feet Term (Years) Square Foot Square Foot Increase in Rent
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
3rd Quarter 1999 87 324,332 7.3 $16.02 $ 20.34 $1,401,643
2nd Quarter 1999 74 237,065 5.9 $18.03 $ 21.70 $ 871,258
1st Quarter 1999 56 199,197 6.0 $16.88 $ 20.27 $ 675,482
4th Quarter 1998 59 314,603 7.2 $15.52 $ 17.45 $ 607,238
Total 276 1,075,197 6.4 $16.47 $ 19.78 $3,555,621
<CAPTION>
Estimated
Percentage Tenant
Increase Improvement
Rolling 12 Months over Prior Rent Costs
- ---------------------------------------------------------------------
<S>
3rd Quarter 1999 27% $3,799,000
2nd Quarter 1999 20% $1,799,000
1st Quarter 1999 20% $ 935,000
4th Quarter 1998 12% $ 588,000
Total 20% $7,121,000
</TABLE>
<TABLE>
<CAPTION>
Non-Comparable 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
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
3rd Quarter 1999 12 105,948 10.2 $20.32 $2,153,331 $ 521,000
2nd Quarter 1999 7 11,592 7.9 $43.30 $ 501,908 $ 91,000
1st Quarter 1999 13 120,121 14.7 $20.91 $2,511,594 $ 494,000
4th Quarter 1998 19 130,798 10.6 $21.47 $2,808,414 $ 280,000
Total 51 368,459 12.3 $21.64 $7,975,247 $1,386,000
</TABLE>
<PAGE>
Federal Realty Investment Trust
Street Retail Operating & Development Overview
September 30, 1999
<TABLE>
<CAPTION>
Nine Months ended
December 31, September 30,
(in thousands) 1995 1996 1997 1998 1999
------------------------------------------------------------------ ---------------------
<S> <C> <C> <C> <C> <C> <C>
Real Estate Assets (1) $107,910 $164,931 $288,020 $365,874 $432,580
Revenues $9,310 $20,555 $31,998 $42,643 $37,000
Net Operating Income $3,994 $12,538 $20,345 $28,660 $25,341
Square Feet (2) 532,944 1,122,737 1,502,807 1,601,849 1,798,181
</TABLE>
(1) At September 30, 1999, includes $98 million related to new development in
process. The balance is comprised of both stabilized assets and assets which
are in various stages of redevelopment.
(2) Excludes new development square footage
<TABLE>
<CAPTION>
NORTHEAST Square Feet MID-ATLANTIC Square Feet
<S> <C> <C> <C>
Connecticut Virginia
Greenwich Avenue/4 80,791 Pentagon Row N/A (2)
West Hartford/7 103,426 Village at Shirlington 362,141
Westport/2 26,408
WESTERN
Massachusetts Arizona
Coolidge Corner/1 13,101 Mill Avenue/2 39,532
New Jersey California
Central Avenue/1 11,208 Colorado Boulevard/2 67,382
Fifth Avenue/5 64,269
New York Hermosa Beach/1 5,930
Forest Hills/4 91,593 Post Street/1 96,547
Old Town Center 101,000
Santana Row N/A (2)
MID-ATLANTIC Third Street Promenade/9 152,597
District of Columbia Hollywood Blvd./3 196,332
Sam's Park N Shop 49,706
Illinios
Florida Evanston/2 18,813
Winter Park/2 28,446 Oak Street/1 5,000
Maryland Texas
Bethesda Row 283,959 (2) Houston Street/10 N/A (2)
</TABLE>
<PAGE>
Kathy Klein
Vice President
Corporate Communications
301/998-8211
FEDERAL REALTY INVESTMENT TRUST ANNOUNCES
THIRD QUARTER 1999 OPERATING RESULTS
November 3, 1999
Rockville, Maryland
Federal Realty Investment Trust (NYSE:FRT) reported today that funds from
operations for the third quarter of 1999 increased 14% to $24.4 million from
$21.4 million in the third quarter of 1998. On a per share basis, funds from
operations rose 11% to $.60 in the third quarter of 1999 from $.54 in the
comparable quarter of 1998.
A comparison of property operations for the third quarter of 1999 versus
the third quarter of 1998 shows the following:
* Rental income increased 12% to $62.0 million in 1999 from $55.4 million in
1998. When adjusted to exclude properties acquired and sold during 1998 and
1999, rental income increased 7% to $57.9 million in 1999 from $54.2 million in
1998.
* Net operating income increased 17% to $47.8 million in 1999 from $40.9
million in 1998. On a same center basis, net operating income increased 11% to
$44.4 million in 1999 from $39.9 million in 1998.
* During the third quarter of 1999, the Trust signed leases for a total
430,000 square feet of retail space. On a same space basis, the Trust re-leased
324,000 square feet of retail space at an average increase in rent per square
foot of 27%. The weighted average rent on these leases was $20.34 per square
foot compared to the previous average rent of $16.02 per square foot.
* At September 30, 1999 and 1998, the Trust's overall occupancy was 95%.
Same center occupancy was 95% at September 30, 1999 and 1998. In October, the
Trust sold Northeast Plaza Shopping Center in Atlanta, Georgia for $19.6
million in cash. The sale resulted in a 1% gain in portfolio-wide occupancy to
96%.
-MORE-
<PAGE>
Funds from operations also improved for the first nine months of 1999
increasing 14% to $72.3 million from $63.6 million in 1998. On a per share
basis, funds from operations advanced 12% to $1.78 per share for the first nine
months of 1999 compared to $1.59 for the comparable period of 1998.
Commenting on the results, Steven Guttman, President and Chief Executive
Officer stated, "1999 continues to be a year of strong operational performance
and execution. During the first nine months we have significantly accelerated
FFO growth, improved operating margins in our core portfolio and reduced the
costs of administrating the Trust. We are extremely pleased with the progress
we've made in achieving our 1999 operating goals."
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 123 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
32 consecutive years. Shares of the Trust are traded on the New York Stock
Exchange under the symbol:FRT.
###
<PAGE>
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30, 1999
------------------ ------------------
OPERATING RESULTS 1999 1998 1999 1998
- ----------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues
Rental Income $61,971 $55,433 $181,078 $162,041
Other property income 3,349 2,577 8,176 7,613
Interest and other income 1,935 993 5,779 3,928
------- ------- -------- --------
67,255 59,003 195,033 173,582
Expenses
Rental 12,950 12,005 39,054 35,274
Real estate taxes 6,477 6,058 18,344 17,275
Interest 14,989 13,639 45,507 39,736
Administrative 5,474 7,585 10,888 13,401
Depreciation and amortization 12,381 11,412 37,313 33,384
------- ------ ------ -------
52,271 50,679 151,106 139,070
------- ------ ------- -------
Operating income before investors' share operations 14,984 8,324 43,927 34,512
Investor's share of operations (798) (804) (2,322) (2,335)
------- ------ ------- -------
Income before loss on real estate to be sold 14,186 7,520 41,605 32,177
Loss on real estate to be sold -- -- (7,050) --
-------- ------- -------- -------
Net income $14,186 $7,520 $34,555 $32,177
Dividends on preferred stock (1,988) (1,988) (5,983) (5,963)
------- ------ ------- -------
Net income available for common shareholders $12,198 $5,532 $28,592 $26,214
------- ------ ------- -------
Earnings per common share, basic $0.31 $0.14 $0.72 $0.67
------- ------ ------- -------
Earnings per common share, diluted $0.30 $0.14 $0.72 $ 0.67
------- ------ ------- -------
Weighted average shares outstanding, basic 39,634 39,223 39,534 39,115
Weighted average shares outstanding, diluted 40,701 40,067 40,639 39,953
Funds from Operations
Net income available for common shareholders $12,198 $5,532 $28,592 $26,214
Add: loss on sale of real estate -- -- 7,050 --
Add: nonrecurring charge -- 4,665 -- 4,665
Add: depreciation and amortization of real estate assets 11,232 10,323 33,849 30,229
Add: amortization of initial direct costs of leases 775 646 2,235 1,837
Add: income attributable to operating partnership units 191 268 552 682
Funds from operations $24,396 $21,434 $72,278 $63,617
------- ------ ------- -------
Funds from operations per share, diluted $0.60 $0.54 $1.78 $1.59
------- ------ ------- -------
<CAPTION>
September 30, December 31,
BALANCE SHEET DATA 1999 1998
- ------------------ ------------- ------------
<S> <C> <C>
Assets
Real estate, at cost $1,729,174 $1,642,136
Accumulated depreciation and amortization (319,959) (286,053)
---------- ----------
1,409,215 1,356,083
Mortgage notes receivable 58,330 51,154
Cash and investments 15,090 17,230
Receivables 18,216 17,873
Other assets 41,031 41,977
---------- ----------
Total Assets $1,541,882 $1,484,317
---------- ----------
Liabilities and Shareholders' Equity
Obligations under capital leases & mortgages payable $ 172,808 $ 173,480
Notes payable 341,805 263,159
Senior Notes 335,000 335,000
5 1/4% Convertible subordinated debentures 75,289 75,289
Other liabilities 107,271 107,442
Shareholders' Equity 509,709 529,947
---------- ----------
Total Liabilities and Shareholders Equity $1,541,882 $1,484,317
</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.
Net Operating Income: Gross revenues, including interest income, less rental
expenses and real estate taxes.
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 operating
properties owned in reporting period.
Same center occupancy: Occupancy for only those properties owned and operating
in the periods being compared. Excludes center 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.
