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, 1998
First Washington Realty Trust, Inc.
___________________________________
(Exact name of registrant as specified in its charter)
Maryland 0-25230 52-1879972
____________________________ _____________ ___________________
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4350 East-West Highway, Suite 400, Bethesda, Maryland 20814
_____________________________________________________ _____
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: 301-907-7800
____________
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
________________________________________________________________
SUPPLEMENTAL FINANCIAL INFORMATION
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS
PRESS RELEASE..........................................................1
BALANCE SHEET..........................................................3
STATEMENT OF OPERATIONS................................................4
QUARTERLY HISTORY OF NET INCOME AND FFO................................5
KEY STATISTICS.........................................................6
FUNDS FROM OPERATIONS AND CAPITAL EXPENDITURES RECONCILIATIONS.........7
ANALYSIS OF OUTSTANDING DEBT...........................................8
CAPITALIZATION TABLE..................................................10
RECENT ACQUISITIONS...................................................11
PROPERTY TABLE........................................................12
TENANT INFORMATION....................................................14
LEASE EXPIRATION TABLE................................................15
INVESTOR INFORMATION..................................................16
________________________________________________________________
4350 East-West Highway, Suite 400
Bethesda, Maryland 20814
301-907-7800
<PAGE>
FOR IMMEDIATE RELEASE
FIRST WASHINGTON REALTY TRUST, INC.
ANNOUNCES
THIRD QUARTER OPERATING RESULTS
REIT Continues to Post Strong Earnings Growth
BETHESDA, MD, October 26, 1998 -- First Washington Realty Trust, Inc.
(NYSE: FRW; FRW Pr) today announced its third quarter operating results.
For the quarter ended September 30, 1998, funds from operations (FFO),
a standard measure of operating performance for real estate investment trusts,
on a fully diluted basis, increased 54.2% to $9.1 million as compared to $5.9
million for the third quarter of 1997. On a per share basis, FFO increased 9.8%
to $0.56 as compared to $0.51 for the same period last year. Total revenues for
the quarter increased 31.9% to $18.6 million as compared to $14.1 million for
the third quarter of 1997. Net income for the third quarter increased 147.6% to
$5.2 million, or $0.34 per share, as compared to $2.1 million, or $0.20 per
share, for the same period last year.
In addition, for the first nine months of 1998, the Company reported
increases over the same period in 1997 in its overall financial performance: FFO
increased 49.4% to $24.8 million [$1.63 per share] from $16.6 million [$1.50 per
share]; total revenues increased 35.3% to $53.3 million from $39.4 million; and
net income increased 163.0% to $14.2 million [$1.02 per share] from $5.4 million
[$0.49 per share].
Stuart D. Halpert, Chairman, commented: "The 1998 third quarter has
been one of continued strong earnings growth for First Washington.
Notwithstanding the volitility and uncertainty in the capital markets, First
Washington has continued to experience strong property performance at the
operating level. The occupancy level for our properties averages 96%, and our
portfolio continues to experience year-over-year increases in average rental
rates. Moreover, we continue what we think to be a prudent and consistent
acquisition program with the purchase of selected neighborhood shopping centers
for acquisition prices we believe to be attractive." Since January 1, 1998 First
Washington has purchased five neighborhood shopping centers for an aggregate
purchase price of approximately $57 million.
The Board of Directors has declared a quarterly distribution of $0.6094
per share to preferred shareholders for the period August 16, 1998, through
November 15, 1998, and a quarterly distribution of $0.4875 per share to common
shareholders. The distributions are payable on November 15, 1998, to
shareholders of record as of November 1, 1998.
First Washington Realty Trust, Inc. is a publicly-traded real estate
investment trust which owns and operates 52 investment properties. The Company
plans to continue its strategy to selectively acquire principally
supermarket-anchored neighborhood shopping centers throughout the Mid-Atlantic
states, as well as in other metropolitan markets which the Company determines to
be both attractive and conveniently accessible.
Contacts: Stuart D. Halpert, Chairman - 301/907-7800
William J. Wolfe, President and CEO - 301/907-7800
James G. Blumenthal, Chief Financial Officer - 301/907-7800
TABLE FOLLOWS
<PAGE>
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
<TABLE>
Three Months Ended
September 30,
___________________
<S> <C> <C>
Operating Results 1998 1997
------ -------
Funds from operations:
Net income before distributions and minority interest $5,151 2,072
Add: Depreciation of real estate assets 3,606 2,631
Add: Amortization of leasing costs 160 119
Add: Compensation paid in company stock - -
Add: Loss on early extinguishment of debt - 561
Less:Gain on sale of property (335) -
Add: Conversion of exchangeable debentures 516 516
------ -------
Funds From Operations (1) $9,098 $5,899
====== =======
Weighted average shares outstanding (1) 16,182 11,426
Dilutive effect of stock options 54 75
------ -------
Weighted average shares outstanding - Diluted (1) 16,236 11,501
====== =======
FFO per share - Diluted $0.56 $0.51
====== =======
Revenues:
Minimum rents $14,707 $10,984
Tenant reimbursements 3,360 2,499
Percentage rents 170 263
Other income 326 370
------ -------
Total revenues 18,563 14,116
------ -------
Expenses:
Property operating and maintenance 4,254 3,452
General and administrative 857 611
Interest 4,811 4,747
Depreciation and amortization 3,766 2,750
------ -------
Total expenses 13,688 11,560
------ -------
Income before income from Management Company 4,875 2,556
Gain on sale of property 335 -
Income (loss) from Management Company (59) 77
------ -------
Net income before extraordinary item $5,151 $2,633
Extraordinary item-loss on early extinguishment of debt - (561)
------ -------
Net income before distributions and minority interest (2) $5,151 $2,072
====== =======
Weighted average shares outstanding (2) 14,900 10,144
Dilutive effect of stock options 54 75
------ -------
Weighted average shares outstanding - Diluted (2) 14,954 10,219
====== =======
Net income per share- Diluted (2) $0.34 $0.20
====== =======
</TABLE>
(1) Assumes that all outstanding operating partnership units , all outstanding
preferred stock, and the exchangeable debentures have been converted to common
stock equivalents.
(2) Assumes that all outstanding operating partnership units and preferred stock
have been converted to common stock equivalents.
# # #
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
<TABLE>
Nine Months Ended
September 30,
___________________
<S> <C> <C>
Operating Results 1998 1997
------ -------
Funds from operations:
Net income before distributions and minority interest $14,240 $ 5,377
Add: Depreciation of real estate assets 10,231 7,658
Add: Amortization of leasing costs 456 209
Add: Compensation paid in company stock - 1,119
Add: Loss on early extinguishment of debt 358 695
Less:Gain on sale of property (2,018) (45)
Add: Conversion of exchangeable debentures 1,546 1,548
------ -------
Funds From Operations (1) $24,813 $16,561
====== =======
Weighted average shares outstanding (1) 15,116 10,958
Dilutive effect of stock options 78 65
------ -------
Weighted average shares outstanding - Diluted (1) 15,194 11,023
====== =======
FFO per share - Diluted $1.63 $1.50
====== =======
Revenues:
Minimum rents $41,689 $30,891
Tenant reimbursements 9,847 6,730
Percentage rents 925 836
Other income 854 906
------ -------
Total revenues 53,315 39,363
------ -------
Expenses:
Property operating and maintenance 12,838 9,419
General and administrative 2,709 2,751
Interest 14,782 13,675
Depreciation and amortization 10,687 7,867
------ -------
Total expenses 41,016 33,712
------ -------
Income before income from Management Company 12,299 5,651
Gain on sale of property 2,018 45
Income (loss) from Management Company 281 376
------ -------
Net income before extraordinary item 14,598 6,072
Extraordinary item-loss on early extinguishment of debt (358) (695)
------ -------
Net income before distributions and minority interest(2) $14,240 $5,377
====== =======
Weighted average shares outstanding (2) 13,834 10,958
Dilutive effect of stock options 78 65
------ -------
Weighted average shares outstanding - Diluted (2) 13,912 11,023
====== =======
Net income per share- Diluted (2) $ 1.02 $ 0.49
====== =======
</TABLE>
(1) Assumes that all outstanding operating partnership units , all outstanding
preferred stock, and the exchangeable debentures have been converted to common
stock equivalents.
(2) Assumes that all outstanding operating partnership units and preferred stock
have been converted to common stock equivalents.
# # #
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
<TABLE>
<S> <C> <C>
September 30, DECEMBER 31,
1998 1997
_____________ _____________
ASSETS
Real Estate
Land $99,557 $89,042
Building and improvements 408,567 367,756
_______ _______
508,124 456,798
Accumulated depreciation (48,045) (40,839)
_______ _______
Rental properties, net 460,079 415,959
Cash and equivalents 2,868 3,142
Tenant receivables, net 7,680 7,274
Deferred financing costs, net 2,260 2,734
Other assets 14,931 10,032
________ ________
Total assets $487,818 $439,141
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $218,296 $212,030
Exchangeable Debentures 25,000 25,000
Accounts payable and accrued expenses 9,920 10,914
_______ _______
Total liabilities 253,216 247,944
Minority interest 52,500 38,255
Stockholder's Equity:
Convertible preferred stock $.01 par value,
3,800,000 shares designated; 2,314,189
shares issued and outstanding 23 23
Common stock $.01 par value, 90,000,000
shares authorized; 8,556,985 and 7,291,732
shares issued and outstanding 86 72
Additional paid-in capital 212,935 179,356
Accumulated distributions in excess of
earnings (30,942) (26,509)
_______ _______
Total stockholders' equity 182,102 152,942
_______ _______
Total liabilities and
stockholders' equity $487,818 $439,141
======== ========
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
<TABLE>
<S> <C> <C> <C> <C>
For three months ended Year Ended
September 30, % December 31,
1998 1997 Change 1997
______________________ _______ ____________
Revenues:
Minimum rents $14,707 $10,984 33.9% $43,857
Tenant reimbursements 3,360 2,499 34.5% 9,506
Percentage rents 170 263 (35.3%) 1,060
Other income 326 370 (11.9%) 1,211
_______ ______ _______ ________
Total revenues 18,563 $14,116 31.5% 55,634
_______ ______ _______ ________
Expenses:
Property operating
and maintenance 4,254 3,452 23.2% 13,522
General and administrative 857 611 40.3% 3,363
Interest 4,811 4,747 1.3% 18,416
Depreciation and amortization 3,766 2,750 36.9% 11,172
_______ ______ _______ ________
Total expenses 13,688 11,560 18.4% 46,473
_______ ______ _______ ________
Income before gain on sale of
properties,income (loss)
from Management Company,
extraordinary item,
minority interest and
distributions to
Preferred Stockholders 4,875 2,556 90.7% 9,161
Gain on sale of properties 335 0 0.0% 549
Income (loss) from Management Company (59) 77 (176.7%) 433
_______ ______ _______ ________
Income before extraordinary item,
minority interest
and distributions to
Preferred Stockholders 5,151 2,633 95.6% 10,143
Extraordinary item - Loss on early
extinguishment of debt 0 (561) (100.0%) (954)
_______ ______ _______ ________
Income before minority interest and
distributions to
Preferrred Stockholders 5,151 2,072 148.6% 9,189
Income allocated to minority interest (1,116) (339) 229.0% (1,579)
_______ ______ _______ ________
Income before distributions to
preferred stockholders 4,035 1,733 132.9% 7,610
Distributions to preferred
stockholders (1,410) (1,410) 0.0% (5,641)
_______ ______ _______ ________
Income allocated to common
stockholders $2,625 $323 712.7% 1,969
======= ====== ======= ========
Net Income per Common
Share - Basic $0.31 $0.06 415.6% $0.35
======= ====== ======= ========
Net Income per Common
Share - Diluted $0.31 $0.06 419.5% $0.34
======= ====== ======= ========
Shares of Common Stock, in
thousands - Basic 8,506 5,396 57.6% 5,663
======= ====== ======= ========
Shares of Common Stock, in
thousands - Diluted 8,560 5,471 56.5% 5,730
======= ====== ======= ========
Distributions per share $0.4875 $0.4875 0.0% $1.9500
======= ====== ======= ========
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST
QUARTERLY HISTORY OF NET INCOME AND FFO
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1998
YTD
Actual 1st QTR 2nd QTR 3rd QTR 4th QTR Total
Revenues:
________
Minimum rents $41,689 $12,928 $14,054 $14,707 $ 0 $41,689
Tenant reimbursements 9,847 3,088 3,399 3,360 0 9,847
Percentage rents 925 396 359 170 0 925
Other rents 854 228 300 326 0 854
_______ _______ _______ _______ ______ ________
Total revenues 53,315 16,640 18,112 18,563 0 53,315
_______ _______ _______ _______ ______ ________
Expenses:
________
Property operating and
maintenance 12,838 4,143 4,441 4,254 0 12,838
General and administrative 2,709 837 1,015 857 0 2,709
Interest 14,782 4,851 5,120 4,811 0 14,782
Depreciation of real
estate assets 10,231 3,132 3,493 3,606 0 10,231
Amortization of leasing
costs 456 133 163 160 0 456
_______ _______ _______ _______ ______ ________
Total expenses 41,016 13,095 14,233 13,688 0 41,016
_______ _______ _______ _______ ______ ________
Income before income (loss)
from Management Company 12,299 3,545 3,879 4,875 (0) 12,299
Gain on sale of property 2,018 1,683 0 335 0 2,018
Income (loss) from Management
Company 281 280 60 (59) 0 281
_______ _______ _______ _______ ______ ________
Net income before
extraordinary item 14,598 5,508 3,939 5,151 (0) 14,598
Extraordinary item-loss
on early extinguishment
of debt (358) (358) 0 0 0 (358)
_______ _______ _______ _______ ______ ________
Net income (loss) before
distributions and
minority interest (2) $14,240 $5,150 $3,939 $ 5,151 $ (0) $14,240
======= ======== ======= ======= ======= =========
Weighted Average Shares
O/S - Basic 13,834 13,097 13,492 14,900 0 13,834
Stock Options 78 101 83 54 0 78
_______ _______ _______ _______ ______ ________
Weighted Average Shares
O/S - Dilutive 13,912 13,198 13,574 14,954 0 13,912
======= ======== ======== ======= ====== ========
Net income per
share - Basic $ 1.03 $ 0.39 $ 0.29 $ 0.35 $ 0.00 $ 1.03
======= ======== ======== ======= ====== ========
Net income per
share - Diluted $ 1.02 $ 0.39 $ 0.29 $ 0.34 $ 0.00 $ 1.02
======= ======== ======== ======= ====== ========
FUNDS FROM OPERATIONS
RECONCILIATION:
_____________________
Net income (loss) before
distribution and
minority interest $14,240 $ 5,150 $3,939 $ 5,151 $ 0 $14,240
Add: Depreciation and
amortization 10,687 3,265 3,656 3,766 0 10,687
Add: Compensation paid
in company stock 0 0 0 0 0 0
Add: Loss on early
extinguishment of debt 358 358 0 0 0 358
Less: Gain on sale of
property (2,018) (1,683) 0 (335) 0 (2,018)
_______ _______ _______ _______ ______ ________
Funds from operations -
Basic $23,267 $ 7,090 $7,596 $ 8,582 $ 0 $23,267
======= ======= ====== ======== ====== ========
Conversion of Debentures 1,546 515 515 516 0 1,546
_______ _______ ______ ________ ______ ________
Funds from operations -
Diluted $24,813 $ 7,605 $8,111 $ 9,098 $ 0 $24,813
======= ======= ====== ======== ====== ========
Weighted Average Shares
O/S - Basic 13,834 13,097 13,942 14,900 0 13,834
Conversion of Debentures 1,282 1,282 1,282 1,282 0 1,282
Stock Options 78 101 83 54 0 78
_______ _______ _______ _______ ______ ________
Weighted Average Shares
O/S - Diluted 15,195 14,480 14,857 16,236 0 15,195
======= ======= ======= ======= ====== ========
FFO/SHARE - BASIC $ 1.68 $ 0.54 $ 0.56 $ 0.58 $ 0.00 $ 1.68
======= ======= ======= ======= ====== ========
FFO/SHARE - DILUTED $ 1.63 $ 0.53 $ 0.55 $ 0.56 $ 0.00 $ 1.63
======= ======= ======= ======= ====== ========
RATIOS:
______
TR's as a % of O&M 76.7% 74.5% 76.5% 79.0%
Property O&M as a % of
Revenues 24.1% 24.9% 24.5% 22.9%
G&A as a % of revenues 5.1% 5.0% 5.6% 4.6%
Total Expenses as a% of
Revenues 29.2% 29.9% 30.1% 27.5%
EBITDA/Revenues
(excluding Management
Company income) 70.8% 70.1% 69.9% 72.5%
EBITDA/Interest expense 2.6 2.5 2.5 2.8%
FFO/Revenues
(excluding Management
Company income) 46.0% 44.0% 44.4% 49.3%
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1997
YTD
Actual 1st QTR 2nd QTR 3rd QTR 4th QTR Total
Revenues:
________
Minimum rents $43,857 $ 9,632 $10,275 $10,984 $12,966 $43,857
Tenant reimbursements 9,506 2,123 2,108 2,499 2,776 9,506
Percentage rents 1,060 328 245 263 224 1,060
Other rents 1,211 276 260 370 305 1,211
_______ _______ _______ _______ ______ ________
Total revenues 55,634 12,359 12,888 14,116 16,271 55,634
_______ _______ _______ _______ ______ ________
Expenses:
________
Property operating and
maintenance 13,522 3,054 2,913 3,452 4,103 13,522
General and administrative 3,363 858 1,282 611 612 3,363
Interest 18,416 4,372 4,556 4,747 4,741 18,416
Depreciation of real
estate assets 10,719 2,356 2,552 2,631 3,180 10,719
Amortization of leasing
costs 453 105 104 119 125 453
_______ _______ _______ _______ ______ ________
Total expenses 46,473 10,745 11,407 11,560 12,761 46,473
_______ _______ _______ _______ ______ ________
Income before income from
Management Company 9,161 1,614 1,481 2,556 3,510 9,161
Gain on sale of property 549 45 0 0 504 549
Income from Management
Company 433 163 136 77 57 433
_______ _______ _______ _______ ______ ________
Net income before
extraordinary item 10,143 1,822 1,617 2,633 4,071 10,143
Extraordinary item-loss
on early extinguishment
of debt (954) (134) 0 (561) (259) (954)
_______ _______ _______ _______ ______ ________
Net income before
distributions and
minority interest (2) $ 9,189 $1,688 $1,617 $ 2,072 $ 3,812 $ 9,189
======= ======== ======= ======= ======= =========
Weighted Average Shares
O/S - Basic 10,474 9,400 9,480 10,144 12,840 10,474
Stock Options 67 51 69 75 101 67
_______ _______ _______ _______ ______ ________
Weighted Average Shares
O/S - Dilutive 10,541 9,451 9,549 10,219 12,941 10,541
======= ======== ======== ======= ====== ========
Net income per
share - Basic $ 0.88 $ 0.18 $ 0.17 $ 0.20 $ 0.30 $ 0.88
======= ======== ======== ======= ====== ========
Net income per
share - Diluted $ 0.87 $ 0.18 $ 0.17 $ 0.20 $ 0.29 $ 0.87
======= ======== ======== ======= ====== ========
FUNDS FROM OPERATIONS
RECONCILIATION:
_____________________
Net income (loss) before
distribution and
minority interest $ 9,189 $ 1,688 $1,617 $ 2,072 $3,812 $ 9,189
Add: Depreciation and
amortization 11,172 2,461 2,656 2,750 3,305 11,172
Add: Compensation paid
in company stock 1,119 540 579 0 0 1,119
Add: Loss on early
extinguishment of debt 954 134 0 561 259 954
Less: Gain on sale of
property (549) (45) 0 0 (504) (549)
_______ _______ _______ _______ ______ ________
Funds from operations -
Basic $21,885 $ 4,778 $4,852 $ 5,383 $6,872 $21,885
======= ======= ====== ======== ====== ========
Conversion of Debentures 2,062 515 515 516 516 2,062
_______ _______ ______ ________ ______ ________
Funds from operations -
Diluted $23,947 $ 5,293 $5,367 $ 5,899 $7,388 $23,947
======= ======= ====== ======== ====== ========
Weighted Average Shares
O/S - Basic 10,474 9,400 9,480 10,144 12,841 10,474
Conversion of Debentures 1,282 1,282 1,282 1,282 1,282 1,282
Stock Options 67 51 69 75 101 67
_______ _______ _______ _______ ______ ________
Weighted Average Shares
O/S - Diluted 11,823 10,733 10,831 11,501 14,224 11,823
======= ======= ======= ======= ====== ========
FFO/SHARE - BASIC $ 2.09 $ 0.51 $ 0.51 $ 0.53 $ 0.54 $ 2.09
======= ======= ======= ======= ====== ========
FFO/SHARE - DILUTED $ 2.03 $ 0.49 $ 0.50 $ 0.51 $ 0.52 $ 2.03
======= ======= ======= ======= ====== ========
RATIOS:
______
TR's as a % of O&M 70.3% 69.5% 72.4% 72.4% 67.7% 70.3%
Property O&M as a % of
Revenues 24.3% 24.7% 22.6% 24.5% 25.2% 24.3%
G&A as a % of revenues 6.0% 6.9% 9.9% 4.3% 3.8% 6.0%
Total Expenses as a% of
Revenues 30.4% 31.7% 32.5% 28.8% 29.0% 30.4%
EBITDA/Revenues
(excluding Management
Company income) 69.6% 68.3% 67.5% 71.2% 71.0% 69.6%
EBITDA/Interest expense 2.1 2.0 1.9 2.1 2.4 2.1
FFO/Revenues
(excluding Management
Company income) 42.3% 41.5% 40.6% 41.2% 45.1% 42.3%
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
KEY STATISTICS
<TABLE>
<S> <C> <C> <C>
AS OF AS OF AS OF
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
1998 1997 1997
_________ _________ ____________
PORTFOLIO INFORMATION:
______________________
Total square feet of retail
properties 5,568,514 4,059,347 4,992,770
No. of properties owned 52 41 49
Occupancy at end of period 96.0% 95.1% 96.2%
Average population within three miles
of properties 106,000
FINANCIAL STATISTICS:
Interest coverage ration (EBITDA/
Interest Expense) 2.8 2.1 2.1
Total debt to total market
capitalization ratio 36.2% 36.8% 35.2%
Weighted average interest rate 7.8% 8.3% 7.9%
% of Fixed rate debt 93.6% 93.7% 91.9%
% of Variable rate debt 6.4% 6.3% 8.1%
Weighted average term to maturity
of debt 3.7 yrs
Weighted average term to maturity
of debt-incl. int. rate
protection 6.1 yrs
Return on real estate investments
(EBITDA/average undepreciated
book value) 10.6% 10.6% 10.2%
General & administrative expenses/
total revenues 4.6% 4.3% 6.0%
Recoveries as a percentage of
operating and maintenance expenses 79.0% 70.9% 70.3%
FFO payout ratio 87.1% 95.6% 96.3%
OTHER INFORMATION:
__________________
Management ownership-common shares only 5.7%
Management ownership-fully diluted 3.1%
Management ownership-fully diluted 5.6%
(including options)
Stock price at end of period:
03/31/98 $23.75
12/31/97 $27.50
12/31/96 $23.50
12/31/95 $18.13
12/31/94 $15.00
Classification of dividend payments-1997
Ordinary income 52.5%
Capital Gains (20%) 2.6%
Return of Capital 44.9%
------
100.0%
------
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
FUNDS FROM OPERATIONS AND CAPITAL EXPENDITURES
(dollars in thousands, except share data)
<TABLE>
<S> <C> <C> <C> <C>
QUARTER QUARTER YEAR
ENDED ENDED ENDED
SEPT 30, SEPT 30, % DECEMBER 31,
1998 1997 CHANGE 1997
_________ _________ ______ ____________
FFO RECONCILIATION:
Net income (1) $5,151 $2,072 148.6% $9,189
Depreciation of real estate assets 3,606 2,631 37.1% 10,719
Amortization of leasing costs 160 119 34.1% 453
Compensation paid in company stock - - 0.0% 1,119
Loss on early extinguishment of debt - 561 (100.0%) 954
Gain on sale of properties (335) - 0.0% (549)
Interest on Exchangeable Debentures 516 516 0.0% 2,064
_________ _________ ______ ____________
Funds from Operations-diluted $9,098 $5,899 54.2% $23,949
========= ========= ====== ============
Common stock equivalents (2) 16,182 11,426 11,756
Dilutive effect of stock options 54 75 67
_________ _________ ______ ____________
Total shares outstanding-diluted 16,236 11,501 11,823
========= ========= ======= ============
FFO per share $0.56 $0.51 9.8% $2.03
========= ========= ======= ============
Dividends paid per share $0.4875 $0.4875 $1.95
========= ========= ======= ============
FFO payout ratio 87.1% 95.6% 96.1%
========= ========= ======= ============
OTHER INFORMATION:
Straight-line rental income $403 $291 $1,337
Recurring non-revenue generating
capital expenditures $319 n/a $798
SUMMARY OF CAPITAL EXPENDITURES:
Building expansions $538 n/a $3,273
Property renovations 525 n/a 1,185
Tenant improvements-Anchors 233 n/a 1,387
Tenant improvements-Non anchors 1,863 n/a 880
Recurring non-revenue generating cap-ex 387 n/a 798
________ _______
Subtotal 3,546 7,523
Leasing commissions-Anchors 142 n/a 1,019
Leasing commissions-Non Anchors 765 n/a 725
________ _______
Subtotal 907 1,744
________ _______
Total capital expenditures $4,453 $9,267
======== =======
</TABLE>
(1) Assumes conversion of all partnership units and preferred stock to common
stock equivalents.
(2) Assumes conversion of all partnership units, preferred stock and debentures
to common stock equivalents.
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
SUMMARY OF OUTSTANDING DEBT
<TABLE>
<S> <C> <C> <C> <C> <C>
INTEREST MATURITY BALANCE (2)
PROPERTY LENDER RATE (1) DATE 09/30/98 12/31/97
- ----------------- ------------ --------- ---------- -------- --------
FIXED RATE LOANS:
Allen St. &
Stefko Boulevard Nomura 8.40% 01/31/06 $5,842 $5,913
Bowie Plaza Aid Assoc. for
Lutherans 6.64% 01/01/05 5,130 0
Broadmoor Apts(3) Firstrust Bank 0 3,826
Chesapeake Bagel
Building Citizens Bank 6.59% 07/01/01 735 735
City Avenue Equitable Life
Insurance Co 8.13% 10/18/05 9,792 9,909
Cloppers Mill Jackson National
Life 7.37% 03/21/06 13,951 14,132
Elkridge Corners Provident
Mutual 6.82% 11/01/10 6,594 0
Festival at
Woodholme Aetna 9.83% 04/30/00 11,407 11,489
Firstfield AAF Mutual Aid
Association 7.53% 12/01/05 2,452 2,472
Georgetown Shops(3) First National
Bank 0 411
Kings Park Aid Assoc. for
Lutherans 7.93% 11/01/14 4,665 4,783
McHenry Commons State Farm
Insurance 7.07% 03/01/99 6,428 6,643
Mallard Creek Nationwide
Insurance 7.07% 02/10/99 11,538 11,823
Mitchellville Nationwide
Insurance 7.21% 06/24/05 15,214 15,764
Northway Shopping
Center Crown Life
Inc. Co 7.94% 01/01/07 6,198 6,282
Northway Shopping
Center Crown Life
Inc. Co 8.80% 08/01/99 1,777 1,827
Parkville Shopping Northern Life
Center Insurance 7.01% 03/01/08 3,478 0
Pheasant Hill Nationwide
Insurance 7.19% 07/15/00 7,909 8,128
Potomac Plaza Citizens Bank 7.03% 07/01/99 3,656 3,656
Riverside/Edge Nationwide
Insurance 7.05% 07/10/99 2,415 2,505
Shoppes Of Kildaire Nationwide
Insurance 7.89% 05/31/06 7,626 7,774
Southside Morgan Stanley 8.77% 08/01/05 7,946 7,999
Stonebrook Nationwide
Insurance 7.22% 07/15/00 6,059 6,226
The Oaks LaSalle Bank 7.39% 05/01/03 9,818 10,144
Valley Centre Tal Hong &
Ki Kwang 7.75% 06/30/07 589 700
Various/UDRT Lutheran
Brotherhood 8.76% 10/31/05 13,047 13,282
Various Properties Nomura 8.92% 07/01/99 38,500 38,500
--------- --------- --------- --------
Subtotal Mortgages 7.99% 202,766 194,925
Penn Station &
Fox Mill Exchangeable
Debentures 8.25% 06/27/99 25,000 25,000
________ _________ _________
SUBTOTAL 8.02% 227,766 219,925
--------- --------- ---------
% OF TOTAL DEBT: 93.6% 92.8%
_________ _________
VARIABLE RATE LOANS:
Ashburn Farms First
National
Bank of
Md. L+1.5% 7.13% 01/01/01 6,660 6,730
Mayfair Shopping
Center Industrial
Revenue
Bonds (4) 5.88% 06/24/10 6,870 7,075
Various properties
(line of credit) Union Bank
of
Switzerland
L+1.0% 7.05% 02/01/01 2,000 3,300
--------- --------- ---------
SUBTOTAL 6.80% 15,530 17,105
--------- --------- ---------
6.4% 7.2%
_________ _________
TOTAL 7.84% $243,296 $237,030
========= ========= =========
</TABLE>
(1) The effective interest rate includes the amortization of deferred financing
costs and premiums over the terms of the respective loans.
(2) Includes premiums on the assumption of mortgage debt.
(3) Properties sold in first quarter 1998.
(4) Includes a letter of credit enhancer fee of 2.0%.
<TABLE>
<S> <C> <C> <C> <C> <C>
SCHEDULE OF MATURITIES: Principal Amort of Balloon
Curtailment Premiums Amount Total %
------------ --------- -------- ----- -------
1998 $ 759 $ 440 $ 0 $ 1,199 0.5%
1999 3,317 1,202 88,932 93,451 38.4%
2000 3,269 848 24,381 28,498 11.7%
2001 3,460 658 9,186 13,304 5.5%
2002 3,767 640 0 4,407 1.8%
2003 3,638 563 7,615 11,816 4.9%
2004 3,953 478 0 4,431 1.8%
2005 2,436 237 38,156 40,829 16.8%
2006 + 8,558 623 36,180 45,361 18.6%
-------- --------- ---------- --------- --------
Totals $33,157 $5,689 $204,450 $243,296 100.0%
======== ========= ========== ========= ========
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
OTHER DEBT INFORMATION
<TABLE>
<S> <C> <C> <C>
SUMMARY OF LINES OF CREDIT:
UNION BANK FIRST
OF SWITZ UNION TOTAL
---------- ----- --------
TOTAL COMMITMENT $45,000,000 $5,775,000 $50,775,000
EXPIRATION DATE 02/01/01 10/15/98
COLLATERAL- # OF PROPERTIES 6 1 7
CURRENT AMOUNT OUSTANDING $ 2,000 0 $ 2,000
INTEREST RATE L + 1.0% L + 2.0%
SUMMARY OF INTEREST RATE PROTECTION AGREEMENTS:
TYPE OF NOTIONAL PERIOD OF DATE OF
HEDGE AMOUNT CONTRACT AGREE STRIKE
---------- ---------- ----------- -------- --------
CAP $38,500,000 07/01/94-07/01/99 06/22/94 5.700%
CAP $6,200,000 01/01/96-01/01/01 12/29/95 9.000%
SWAP $38,500,000 07/01/96-07/01/99 12/19/95 5.090%
FWD SWAP $38,500,000 07/01/99-12/01/03 12/19/95 6.375%
FWD SWAP $20,000,000 03/01/99-03/01/04 08/01/97 6.438%
FWD SWAP $15,000,000 06/01/99-06/01/04 11/07/97 6.180%
FWD SWAP $24,000,000 05/01/00-05/02/05 01/12/98 5.855%
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
CAPITALIZATION TABLE
<TABLE>
<S> <C> <C> <C> <C> <C>
Sept 30, Dec 31, Dec 31, Dec 31, Dec 31,
1998 1997 1996 1995 1994
PREFERRED STOCK
Original issue 1,920,000 1,920,000 1,920,000 1,920,000 1,920,000
Issued for property
purchases 394,189 394,189 394,189 394,189 0
--------- --------- -------- -------- ---------
Total outstanding shares 2,314,189 2,314,189 2,314,189 2,314,189 1,920,000
========= ========= ========= ========= =========
Common Equivalents at
1.282051 conversion rate 2,966,908 2,966,908 2,966,908 2,966,908 2,461,538
========= ========= ========= ========= =========
PREFERRED UNITS
Original issue for
property purchases 352,000 352,000 352,000 352,000 352,000
Subsequently Issued for
property purchases 77,147 77,147 67,609 0 0
-------- -------- ------- ------- -------
Total outstanding units 429,147 429,147 419,609 352,000 352,000
======== ======== ======= ======== =======
Common Equivalents at
1.282051 conversion rate 550,188 550,188 537,960 451,282 451,282
======== ======== ======= ======= =======
COMMON STOCK
Original issue 1,574,359 1,574,359 1,574,359 1,574,359 1,574,359
Subsequent public
offerings 6,403,393 5,253,393 3,183,393 1,528,393 0
Private offerings 85,562 85,562 0 0 0
Exercise of stock options 5,875 2,956 0 0 0
Restricted stock grants 110,762 99,664 84,280 0 0
Unrestricted stock grants 210,780 200,000 66,666 66,666 0
Exchange of partnership
units 166,254 75,798 37,547 20,131 0
---------- ---------- --------- --------- ---------
Total outstanding shares 8,556,985 7,291,732 4,946,245 3,189,549 1,574,359
========== ========== ========= ========= =========
COMMON UNITS
Original issue 347,056 347,056 347,056 347,056 347,056
Subsequent property
purchases 2,696,026 1,849,831 472,851 95,877 0
Exchange of partnership
units (166,254) (75,798) (37,547) (20,131) 0
---------- --------- -------- -------- --------
Total outstanding units 2,876,828 2,121,089 782,360 422,802 347,056
======== ======== ======== ======== ========
Total common share
equivalents-basic 14,950,909 12,929,918 9,233,473 7,030,541 4,834,235
Conversion of
Exchangeable Debentures 1,282,051 1,282,051 1,282,051 1,282,051 1,282,051
---------- ---------- --------- --------- ---------
Total common share
equivalents-diluted 16,232,960 14,211,969 10,515,524 8,312,592 6,116,286
========== ========== ========== ========= =========
Market capitalization
(in 000's):
Equity capitalization
based on closing stock
price $385,533 $390,829 $247,115 $150,666 $91,744
Outstanding debt
(with Debentures as
equity) 218,296 212,030 167,047 116,182 89,858
---------- --------- -------- -------- -------
Total market
capitalization $603,829 $602,859 $414,162 $266,848 $181,602
========== ========== ======== ======== ========
Debt to total market
capitalization 36.2% 35.2% 40.3% 43.5% 49.5%
========== ========== ======== ======== ========
Closing stock price $23.75 $27.50 $23.50 $18.13 $15.00
========== ========== ======== ======== ========
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
1998 ACQUISITIONS
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
All-in Projected
Date Property Land Year Costs NOI
Acquired Name Location S.F. Area Built (in 000's) Yield Occupancy
-------- ------------- ----- ---------- -------- ------ ---------
01/98 Bowie
Plaza Bowie, MD 104,836 10.8 1966 $12,135 (2) 10.3% 98.3%
03/98 Watkins
Park
Plaza Mitchellville,
MD 112,143 12.8 1985 14,662 10.2% 98.7%
04/98 Parkville
Shopping
Center Baltimore, MD 140,925 12.7 1961 8,388 (2) 10.8% 100.0%
06/98 Elkridge
Corners Baltimore, MD 73,529 8.4 1990 8,873 (2) 10.0% 97.8%
06/98 Village
Center Richmond, VA 110,885 11.7 1948 13,305 (2) 10.0% 99.4%
------- ------- -----
Totals 542,318 $57,363 10.2%
======= ======= =====
</TABLE>
(2) These acquisitions were structured as contribution to First Washington
Realty Limited Partnership (FWRLP) in exchange for operating units of
FWRLP.
<TABLE>
<S> <C>
Property
Name Anchor Tenant (lease expiration)
------------- --------------------------------
Bowie Plaza Giant (2002), CVS (2003)
Watkins Park Plaza Safeway (2007), CVS (2001)
Parkville Shopping Center A&P Superfresh (2003),Rite Aid (2001)
Elkridge Corners A&P Superfresh (2015), Rite Aid (2005)
Village Center Ukrop's Super Market (2019), CVS (2003)
</TABLE>
Note:The Company sold its two multi-family properties in March 1998 for
$8,050,000 and one of the Georgetown properties for $750,000 . Net proceeds
of $4,200,000 were used to acquire Watkins Park Plaza in a Section 1031 tax
free exchange.
<PAGE>
FIRST WASHINGTON REALTY TRUST INC
PROPERTY SUMMARY TABLE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
MARYLAND:-
Bowie Plaza Bowie, MD 104,836 10.8 1966 1998 98.3% 100.0%
Bryans Road
Shopping
Center Bryans Road,
MD 118,676 11.8 1972 1990 89.2% 86.7%
Capital
Corner
Shopping
Center Landover, MD 42,625 4.1 1987 1987 100.0% 91.6%
Clinton
Square
Shopping
Center Clinton, MD 18,961 2.0 1979 1984 68.7% 68.7%
Cloppers
Mills Germantown,
MD 137,035 14.2 1995 1996 100.0% 98.2%
Elkridge
Corners Baltimore,
MD 73,529 8.4 1990 1998 100.0% 97.8%
Festival at
Woodholme Baltimore,
MD 81,027 7.1 1986 1995 100.0% 100.0%
Firstfield
Shopping
Center Gaithersburg,
MD 22,327 2.4 1978 1995 100.0% 100.0%
Mitchellville
Plaza Mitchellville,
MD 155,674 14.5 1991 1997 97.3% 98.6%
Northway
Shopping
Center Millersville,
MD 98,016 9.6 1987 1996 93.1% 100.0%
P.G. County
Commercial
Park Beltsville,
MD 146,422 9.7 1988 1985 95.6% 98.0%
Parkville
Shopping
Center (1) Baltimore,MD 140,925 12.7 1961 1998 99.1% 100.0%
Penn Station
Shopping
Center (2) District
Heights,MD 334,970 22.5 1989 1987 96.3% 98.4%
Rosecroft
Shopping
Center Temple Hills,
MD 119,010 8.3 1963 1985 79.3% 87.4%
Southside
Marketplace Baltimore,
MD 126,646 9.1 1990 1996 84.7% 88.2%
Takoma Park Takoma Park,
MD 108,168 9.8 1960 1996 90.5% 88.8%
Valley Centre Owings Mills,
MD 251,928 33.0 1987 1994 97.5% 99.0%
Watkins Park
Plaza Mitchellville,
MD 112,143 12.8 1985 1998 96.5% 98.7%
---------
2,192,918
---------
39.4%
==========
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
Bowie Plaza Giant (2002), CVS (2003)
Bryans Road Shopping Center Safeway (2014), CVS (2001)
Capital Corner Shopping Center
Clinton Square Shopping Center
Clopper's Mill Shoppers Food Warehouse (2015), CVS (2006
Elkridge Corners A&P Superfresh (2003), Rite Aid (2001)
Festival at Woodholme Sutton Place (2006)
Firstfield Shopping Center
Mitchellville Shopping Center Food Lion (2016)
Northway Shopping Center Metro Foods (2007), Rite Aid (1999)
P.G. County Commercial Park
Parkville Shopping Center (1) A&P Superfresh (2003), Rite Aid (2001)
Penn Station Shopping Center (2) Safeway (n/a), Service Merchandise (2006)
Rosecroft Shopping Center Food Lion (2015)
Southside Marketplace Metro Foods (2016), Rite Aid (2001)
Takoma Park Shoppers Food Warehouse (2011)
Valley Centre Weis Markets (2002), TJ Maxx (2007),
Sony Theatres (2005)
Watkins Park Plaza Safeway (2007), CVS (2001)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
VIRGINIA:-
Ashburn Farm
Village
Center Ashburn,VA 88,917 10.2 1996 1997 100.0% 100.0%
Brafferton
Center Garrisonville,
VA 94,731 9.4 1974 1994 97.9% 94.2%
Centre Ridge
Marketplace Centreville,
VA 104,154 10.9 1996 1996 98.8% 100.0%
Chesapeake
Bagel
Building Alexandria,
VA 11,288 0.1 1800's 1983 100.0% 100.0%
Davis Ford
Crossing Manassas,VA 149,917 20.8 1988 1994 91.1% 95.2%
Four Mile
Fork Shopping
Center Fredericksburg,
VA 101,360 10.3 1975 1997 88.6% 84.6%
Fox Mill
Shopping
Center Reston, VA 103,269 14.0 1977 1994 98.1% 96.1%
Glen Lea
Shopping
Center Richmond,VA 77,603 9.2 1969 1995 100.0% 100.0%
Hanover
Village
Shopping
Center Mechanicsville,
VA 96,146 9.5 1971 1995 98.3% 98.3%
Kings Park Burke, VA 78,712 8.6 1966 1996 88.6% 100.0%
Laburnum Park Richmond, VA 113,992 9.3 1988 1995 98.7% 100.0%
Laburnum
Square (3) Richmond, VA 109,405 11.4 1975 1995 94.1% 95.4%
Potomac Plaza Woodbridge,VA 85,400 5.4 1963 1986 94.2% 88.3%
Village
Center Richmond, VA 110,885 11.7 1948 1998 99.0% 99.4%
---------
1,325,779
---------
23.8%
=========
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
Ashburn Farm Village Center A&P Superfresh (2016)
Brafferton Center Giant Food (2009)
Centre Ridge Marketplace A&P Superfresh (2016), Sears Paint &
Hardware (2007
Chesapeake Bagel Building
Davis Ford Crossing Weis Markets (2010), CVS (2000)
Four Mile Fork Shopping Center Safeway (2000), CVS (2001)
Fox Mill Shopping Center Giant Food (2016)
Glen Lea Shopping Center Winn Dixie (2005), Eckerd Drug (2000)
Hanover Village Shopping Center Rack 'N Sack (2008), Rite Aid (2003)
Kings Park Giant (2013), CVS (2003)
Laburnum Park Ukrops Supermarket (n/a), Rite Aid (2007)
Laburnum Square (3) Hannaford Brothers Supermarket (2013),
CVS (1999)
Potomac Plaza
Village Center Ukrop's Super Market (2019), CVS (2003)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
PENNSYLVANIA:-
Allen Street Allentown,PA 46,503 4.1 1958 1996 98.1% 95.5%
City Avenue
Shopping
Center Philadelphia,
PA 161,454 12.2 1950-60's 1997 97.1% 95.0%
Colonial
Square
Shopping
Center York, PA 29,208 2.9 1955 1990 89.6% 89.0%
Kenhorst
Plaza
Shopping
Center Kenhorst,PA 161,424 19.2 1990 1995 97.5% 98.0%
Mayfair
Shopping
Center Philadelphia,
PA 115,027 5.7 1988 1994 99.0% 100.0%
Newtown
Square
Shopping
Center Newtown
Square, PA 137,566 14.4 1960-70's 1996 99.1% 98.0%
Stefko
Boulevard
Shopping
Center Bethlehem,PA 135,864 10.3 1958-60-75 1996 95.1% 98.8%
-------
787,046
-------
14.1%
=======
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
Allen Street Lanecor (2003), Eckerd Drug (2004)
City Avenue Shopping Center Acme Supermarkets (1999), Eckerd
Drug (1999), T.J. Maxx (2001)
Colonial Square Shopping Center Minnichs Pharmacy (1999)
Kenhorst Plaza Shopping Center Redners (2009), Rite Aid (2000), Sears
Paint & Hardware (2007)
Mayfair Shopping Center Shop 'N Bag Supermarket (2013), Eckerd
Drug (2006)
Newtown Square Shopping Center Acme Supermarkets (2014),Eckerd Drug (1999)
Stefko Boulevard Shopping Center Laneco (2003)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
ILLINOIS:-
McHenry
Commons McHenry, IL 100,526 11.5 1988 1997 98.0% 98.6%
Mallard Creek Round Lake
Beach, IL 143,759 14.9 1987 1997 94.6% 98.9%
Pheasant Hill
Plaza Bolingbrook,IL 111,190 14.4 1983 1997 98.9% 100.0%
Riverside
Square/
River's Edge Chicago, IL 169,435 17.7 1986 1997 94.6% 90.0%
Stonebrook
Plaza Merrionette
Park, IL 95,825 8.1 1984 1997 100.0% 95.3%
The Oaks Des Plaines,IL 138,274 16.7 1983 1997 100.0% 92.2%
-------
759,009
-------
13.6%
=======
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
McHenry Commons Dominick's Finer Foods (2018)
Mallard Creek Dominick's Finer Foods (2008)
Pheasant Hill Plaza Dominick's Finer Foods (2005)
Riverside Square/River's Edge Dominick's Finer Foods (2017)
Stonebrook Plaza Dominick's Finer Foods (2005)
The Oaks Dominick's Finer Foods (2017)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
DELAWARE:-
First State
Plaza New Castle,DE 164,569 21.0 1988 1994 95.6% 100.0%
Shoppes of
Graylyn Wilmington,DE 65,746 5.0 1971 1997 97.7% 97.7%
--------
230,315
--------
4.1%
========
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
First State Plaza Shop Rite Supermarket (2009), Cinemark
USA (2011)
Shoppes of Graylyn Rite Aid (2016)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
NORTH CAROLINA:-
Shoppes of
Kildaire Cary, NC 148,204 14.0 1986 1986 99.5% 100.0%
-------
148,204
-------
2.7%
=======
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
Shoppes of Kildaire Winn Dixie (2006)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
SOUTH CAROLINA:-
James Island
Shopping
Center Charleston,SC 88,557 6.5 1967 1990 100.0% 98.9%
------
88,557
------
1.6%
======
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
James Island Shopping Center Piggly Wiggly (2010), Kerr Drug (2002)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Land Percent Percent
Area Year Year Leased Leased
Property Location GLA (Acres) Built Acquired 09/30/98 12/31/97
- -------------------------------------------------------------------------------
WASHINGTON D.C.:-
The Georgetown
Shops (4) Washington,DC 13,152 0.3 Late
1800's 1981-1989 100.0% 100.0%
Connecticut
Avenue Shops Washington,DC 3,000 0.1 1954 1986 100.0% 100.0%
Spring Valley
Shopping
Center Washington,DC 16,834 0.9 1930 1997 100.0% 100.0%
------
32,986
------
0.6%
======
</TABLE>
<TABLE>
<S> <C>
Property Significant Tenants (lease expiration date)
- ------------------------ ------------------------------------------
The Georgetown Shops (3)
Connecticut Avenue Shops
Spring Valley Shopping Center CVS (1999)
Total/Average 5,568,514 543.3 96.0% 96.2%
========= ===== ==== ====
100.0%
=========
</TABLE>
(1) Includes Safeway (50,000 sq.ft) and Bowling alley (40,000 sq.ft) pad sites
owned by others.
(2) Includes Ukrops Supermarket (49,000 sq.ft ) pad site not owned by the
Company.
(3) Represents three (3) historic retail shops all clustered in close proximity
in the central shopping district in Georgetown, Washington D.C.
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
TENANT INFORMATION
TOP 20 TENANTS BY BASE RENT
<TABLE>
<S> <C> <C> <C> <C>
% of
Number Annualized Aggregate
GLA Of Minimum Anualized
Tenant (Sq Ft.) Properties Rent Minimum Rents
____________________ ________ ____________ ___________ _______________
1. Safeway /
Dominick's 577,090 10 5,186,369 9.09%
2. Richfood /
Shoppers Food /
Metro Foods /
Rack 'N Sack 261,565 5 2,151,067 3.77%
3. A&P Superfresh 170,489 4 1,549,330 2.71%
4. Blockbuster
Video 54,149 9 933,625 1.64%
5. Rite Aid 87,754 8 816,658 1.43%
6. CVS/Pharmacy 113,430 10 811,000 1.42%
7. Fashion Bug 73,273 9 804,832 1.41%
8. Weis Markets 94,960 2 786,200 1.38%
9. Food Lion 78,100 2 677,500 1.19%
10. Sears Paint &
Hardware 65,816 3 669,596 1.17%
11. Giant Food 143,268 4 650,240 1.14%
12. First Union Bank 17,643 7 587,921 1.01%
13. Ukrops 88,003 2 545,564 0.96%
14. T.J. Maxx 54,686 2 500,211 0.88%
15. Acme Markets 86,226 2 500,000 0.88%
16. Winn Dixie 79,000 2 481,500 0.84%
17. Shop Rite
Supermarket 57,333 1 458,552 0.80%
18. Eckerd Drug 45,572 5 431,191 0.76%
19. Hollywood Video 22,366 3 424,520 0.74%
20. Render's
Supermarket 52,070 1 416,560 0.73%
--------- ---------- -------
TOTAL 2,222,972 19,382,436 33.95%
========= ========== =======
TENANT MIX S.F. BASE RENT
-------- --------
ANCHOR (1) 41.9% 30.2%
NON-ANCHOR 58.1% 69.8%
-------- --------
100.0% 100.0%
======== ========
</TABLE>
(1) Anchor tenants are defined as Supermarkets, Drug Stores and any tenant in
excess of 35,000 Sq. Ft.
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
LEASE EXPIRATIONS
AS OF SEPTEMBER 30, 1998
<TABLE>
<S> <C> <C> <C> <C> <C>
Percent Average
of Total Annual
Number Future Percent of Total Annualized Annualized Minimum
Of GLA In GLA Represented Minimum Minimum Rent per
Year Leases Square Feet By Expiring Leases Rent Rent Square Foot
____ _______ ___________ __________________ _________ _________ ___________
(in 000's) (in 000's)
1998 75 158 3.1% $1,739 3.0% $11.01
1999 167 482 9.5% 5,306 9.1% 11.01
2000 178 484 9.5% 5,728 9.9% 11.83
2001 183 551 10.9% 6,865 11.8% 12.46
2002 137 392 7.7% 5,408 9.3% 13.80
2003 143 582 11.5% 6,901 11.9% 11.86
2004 27 98 1.9% 1,307 2.2% 13.34
2005 41 350 6.9% 4,133 7.1% 11.81
2006 42 263 5.2% 3,483 6.0% 13.24
2007 27 314 6.2% 3,267 5.6% 10.40
Thereafter 62 1,399 27.6% 13,962 24.1% 9.98
----- ----- ------ ------- ------ ------
Total 1,082 5,073 100.0% $58,199 100.0% $11.47
===== ===== ====== ======= ====== ======
</TABLE>
<PAGE>
FIRST WASHINGTON REALTY TRUST, INC.
INVESTOR INFORMATION
Contacts: Stuart D.Halpert 301-907-7800 or 301-961-1866
Jim Blumenthal 301-907-7800 or 301-961-1862
E-mail: [email protected]
Company address: 4350 East-West Highway Suite 400
Bethesda, Maryland 20814
Research Coverage:
BT Alex. Brown Kevin Comer 212-250-5941
Friedman, Billings, Ramsey & Co. Charles Post 703-312-9616
Tucker Anthony Jeffrey Caira 617-725-2058
CIBC Oppenheimer Jeffrey Olson 212-667-8116
Raymond James & Associates Mark Foushee 813-573-3800
Paine Webber Gary Boston 212-713-4765
Ticker Symbol:
Common shares FRW
Preferred Shares FRW pr
Quarterly Results:
The company plans to announce quarterly results
according to the following schedule:
4Q 1998 February 8, 1999
1Q 1999 April 26, 1999
Transfer Agent: American Stock Transfer & Trust Co.
Auditor: PricewaterhouseCoopers
Counsel: Latham & Watkins
