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8-K - 8-K - FEDERAL REALTY INVESTMENT TRUSTfrt-123120198xkdocument.htm


FEDERAL REALTY INVESTMENT TRUST
SUPPLEMENTAL INFORMATION
December 31, 2019
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
1
Fourth Quarter and Full Year 2019 Earnings Press Release
 
 
 
 
2
Financial Highlights
 
 
 
Consolidated Income Statements
 
 
Consolidated Balance Sheets
 
 
Funds From Operations / Other Supplemental Information
 
 
Market Data
 
 
Components of Rental Income
 
 
Comparable Property Information
 
 
 
 
3
Summary of Debt
 
 
 
Summary of Outstanding Debt and Finance Lease Liabilities
 
 
Summary of Debt Maturities
 
 
 
 
4
Summary of Redevelopment Opportunities
 
 
 
 
5
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
6
Future Redevelopment Opportunities
 
 
 
 
7
Significant Property Acquisitions, Dispositions, and Other Transactions
 
 
 
 
8
Real Estate Status Report
 
 
 
 
9
Retail Leasing Summary
 
 
 
 
10
Lease Expirations
 
 
 
 
11
Portfolio Leased Statistics
 
 
 
 
12
Summary of Top 25 Tenants
 
 
 
 
13
Reconciliation of FFO Guidance
 
 
 
 
14
Glossary of Terms
 
 
 
 
 
 
 
 
1626 East Jefferson Street
Rockville, Maryland 20852-4041
301/998-8100

1



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 10, 2020, 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;
risk that we are investing a significant amount in ground-up development projects that may not perform as planned, may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
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 costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, 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 associated with general economic conditions, including local economic conditions in our geographic markets;
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 10, 2020.



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NEWS RELEASE
www.federalrealty.com
 
 
FOR IMMEDIATE RELEASE
 
 
 
Investor Inquiries:
Media Inquiries:
Leah Andress Brady
Brenda Pomar
Investor Relations Senior Manager
Corporate Communications Manager
301.998.8265
301.998.8316
lbrady@federalrealty.com
bpomar@federalrealty.com

Federal Realty Investment Trust Announces Operating Results for the Year and Quarter Ended
December 31, 2019
ROCKVILLE, Md. (February 10, 2020) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its year and quarter ended December 31, 2019. For the year ended December 31, 2019 and 2018, net income available for common shareholders was $4.61 per diluted share and $3.18 per diluted share, respectively. For the three months ended December 31, 2019 and 2018, net income available for common shareholders was $1.92 per diluted share and $0.71 per diluted share, respectively.

Key Highlights of the full year and quarter include:

Generated funds from operations available for common shareholders (FFO) per diluted share of $6.17 for the year ($6.33 excluding the charge related to the buyout of the Kmart lease at Assembly) compared to $6.23 in 2018. For the fourth quarter, generated FFO per diluted share of $1.58 compared to $1.57 for the fourth quarter 2018.
Generated comparable property operating income (POI) growth of 2.9% for the year ended 2019. For the fourth quarter, comparable property POI growth was 2.4%.
Signed leases for 461,952 square feet of comparable space in the fourth quarter at an average rent of $37.78 psf and achieved cash basis rollover growth on those comparable spaces of 7%.
Sold three properties and two land parcels for $304 million in 2019 including the sale under threat of condemnation of an 11.7-acre portion of San Antonio Center, located in Mountain View, California, for $155 million in the fourth quarter.
Purchased three properties in 2019 totaling 380,000 square feet and 123 apartment units for $295 million. Purchased one property subsequent to quarter end totaling 49,000 square feet for $22 million.
Introduced 2020 FFO per diluted share guidance range of $6.40 to $6.58.

“With over a billion dollars invested in 2019 acquisitions and construction currently in progress at our established properties, we’re committed to maintaining and growing our leadership position in some of the best retail-centric real

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estate in the country,” said Donald C. Wood, Federal Realty’s President and Chief Executive Officer. “To be able to make that level of investment while also growing current earnings is a testament to the quality of our real estate and the diversity of our income streams.”

Financial Results
For the full year 2019, Federal Realty reported net income available for common shareholders of $345.8 million and earnings per diluted share of $4.61. This compares to net income available for common shareholders of $233.9 million and earnings per diluted share of $3.18 for the full year 2018. Net income available for common shareholders was $145.3 million and earnings per diluted share was $1.92 for the fourth quarter 2019 versus $52.5 million and $0.71, respectively, for the fourth quarter 2018.
For the full year 2019, Federal Realty generated funds from operations available for common shareholders (FFO) of $465.8 million, or $6.17 per diluted share ($6.33 excluding the $11.9 million charge related to the buyout of the Kmart lease at Assembly). This compares to FFO of $461.8 million, or $6.23 per diluted share, for the full year 2018. For the fourth quarter 2019, FFO was $120.0 million, or $1.58 per diluted share, compared to $117.2 million, or $1.57 per diluted share for the fourth quarter 2018.
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.

Portfolio Results
The overall portfolio was 94.2% leased as of December 31, 2019, and the comparable portfolio was 94.9% leased. Comparable property POI increased 2.9% for the year 2019 and 2.4% in the fourth quarter. Comparable property POI represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. Additionally, the charge related to the buyout of the Kmart lease at Assembly is excluded.
For the year 2019, Federal Realty signed 409 leases for 1.7 million square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 1.6 million square feet at an average rent of $40.48 per square foot compared to the average contractual rent of $37.63 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 8%.
During fourth quarter 2019, Federal Realty signed 112 leases for 494,768 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 461,952 square feet at an average rent of $37.78 per square foot compared to the average contractual rent of $35.41 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 7%.


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Regular Quarterly Dividends
Federal Realty’s Board of Trustees declared a regular quarterly cash dividend of $1.05 per common share, resulting in an indicated annual rate of $4.20 per common share. The regular common dividend will be payable on April 15, 2020 to common shareholders of record as of March 16, 2020.
Federal Realty’s Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on April 15, 2020 to shareholders of record as of April 1, 2020.

Summary of Other Quarterly Activities and Recent Developments
December 11, 2019 - Federal Realty announced the sale under threat of condemnation of an 11.7-acre portion of San Antonio Center, located in Mountain View, California, for $155 million. The land sold under the condemnation threat is needed for the eventual construction of a school by the Los Altos School District. Tenants on the sold portion of the property include Kohl’s, 24 Hour Fitness, Jo-Ann, and various small shop tenants. Tenant condemnation awards, yet to be finalized, will be paid out of Federal Realty’s sale proceeds. Federal Realty purchased San Antonio Center, which totals 33 acres, in 2015 for $62.2 million.
November 15, 2019 - Federal Realty acquired Georgetowne Shopping Center, a 147,000 square foot grocery anchored neighborhood shopping center with surface parking on 9 acres in Brooklyn, New York, for $83.7 million cash. The Property is located in Brooklyn’s Georgetown neighborhood.
Third & Fourth Quarter 2019 - Federal Realty acquired 37 mixed-use buildings in Hoboken, New Jersey totaling 158,000 square feet and 123 apartments for $189.2 million. The properties are located along historic Washington Street and 14th Street, two of Hoboken’s main commercial thoroughfares. The Trust acquired the properties through a newly formed joint venture in which the Trust owns 90%. Two additional buildings are expected to close in 2020.
January 10, 2020 - Federal Realty acquired a 49,000 square foot shopping center adjacent to the Trust’s Fairfax Junction property in Fairfax, Virginia for $22.3 million. Combined, the properties total 124,000 square feet and 11 acres and have over 1,000 feet of frontage along Lee Highway in Fairfax.

Guidance
Federal Realty introduced 2020 guidance for FFO per diluted share of $6.40 to $6.58 and 2020 earnings per diluted share guidance of $3.21 to $3.40.


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Conference Call Information
Federal Realty’s management team will present an in-depth discussion of the Trust’s operating performance on its fourth quarter and year end 2019 earnings conference call, which is scheduled for Tuesday, February 11, 2020 at 9:00AM ET. To participate, please call 877.407.9208 five to ten minutes prior to the call start time and use the passcode 13697618 (required). A replay of the webcast will be available on Federal Realty’s website at www.federalrealty.com. A telephonic replay of the conference call will also be available through February 25, 2020 by dialing 844.512.2921; Passcode: 13697618.

About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty’s mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,000 tenants, in 24 million square feet, and over 2,700 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 52 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, 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 10, 2020, and include the following:
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;
risks that we are investing a significant amount in ground-up development projects that may not perform as planned, may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
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 costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, 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 associated with general economic conditions, including local economic conditions in our geographic markets;
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

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risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 10, 2020.

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Federal Realty Investment Trust
Consolidated Income Statements
December 31, 2019
 
Three Months Ended

Year Ended
 
December 31,

December 31,
 
2019

2018

2019

2018
 
(in thousands, except per share data)
 
 
REVENUE
 
 
 
 
 
 
 
Rental income
$
238,303

 
$
234,511

 
$
932,738

 
$
912,287

Mortgage interest income
846

 
865

 
3,050

 
3,149

Total revenue
239,149

 
235,376

 
935,788

 
915,436

EXPENSES
 
 
 
 
 
 
 
Rental expenses
47,649

 
46,507

 
187,831

 
173,094

Real estate taxes
29,044

 
28,935

 
110,927

 
114,776

General and administrative
10,707

 
9,620

 
42,754

 
33,600

Depreciation and amortization
61,431

 
66,976

 
239,758

 
244,245

Total operating expenses
148,831

 
152,038

 
581,270

 
565,715

 
 
 
 
 
 
 
 
Gain on sale of real estate, net
85,903

 
1,502

 
116,393

 
11,915

 
 
 
 
 
 
 
 
OPERATING INCOME
176,221

 
84,840

 
470,911

 
361,636

 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
Other interest income
511

 
285

 
1,266

 
942

Interest expense
(27,056
)
 
(28,038
)
 
(109,623
)
 
(110,154
)
Loss from partnerships
(710
)
 
(705
)
 
(2,012
)
 
(3,398
)
NET INCOME
148,966

 
56,382

 
360,542

 
249,026

     Net income attributable to noncontrolling interests
(1,611
)
 
(1,875
)
 
(6,676
)
 
(7,119
)
NET INCOME ATTRIBUTABLE TO THE TRUST
147,355

 
54,507

 
353,866

 
241,907

Dividends on preferred shares
(2,011
)
 
(2,011
)
 
(8,042
)
 
(8,042
)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$
145,344

 
$
52,496

 
$
345,824

 
$
233,865

EARNINGS PER COMMON SHARE, BASIC
 
 
 
 
 
 
 
Net income available for common shareholders
$
1.92

 
$
0.71

 
$
4.61

 
$
3.18

Weighted average number of common shares, basic
75,305

 
73,790

 
74,766

 
73,274

EARNINGS PER COMMON SHARE, DILUTED
 
 
 
 
 
 
 
Net income available for common shareholders
$
1.92

 
$
0.71

 
$
4.61

 
$
3.18

Weighted average number of common shares, diluted
75,305

 
73,796

 
74,766

 
73,302



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Federal Realty Investment Trust
Consolidated Balance Sheets
December 31, 2019
 
December 31,
 
2019
 
2018
 
(in thousands, except share and
 
per share data)
ASSETS
 
 
 
Real estate, at cost
 
 
 
Operating (including $1,676,866 and $1,701,804 of consolidated variable interest entities, respectively)
$
7,535,983

 
$
7,307,622

Construction-in-progress (including $102,583 and $51,313 of consolidated variable interest entities, respectively)
760,420

 
495,274

Assets held for sale
1,729

 
16,576

 
8,298,132

 
7,819,472

Less accumulated depreciation and amortization (including $296,165 and $292,374 of consolidated variable interest entities, respectively)
(2,215,413
)
 
(2,059,143
)
Net real estate
6,082,719

 
5,760,329

Cash and cash equivalents
127,432

 
64,087

Accounts and notes receivable
152,572

 
142,237

Mortgage notes receivable, net
30,429

 
30,429

Investment in partnerships
28,604

 
26,859

Operating lease right of use assets
93,774

 

Finance lease right of use assets
52,402

 

Prepaid expenses and other assets
227,060

 
265,703

TOTAL ASSETS
$
6,794,992

 
$
6,289,644

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Mortgages payable, net (including $469,184 and $444,388 of consolidated variable interest entities, respectively)
$
545,679

 
$
474,379

Capital lease obligations

 
71,519

Notes payable
3,781

 
279,027

Senior notes and debentures
2,807,134

 
2,404,279

Accounts payable and other liabilities
255,503

 
177,922

Dividends payable
81,676

 
78,207

Security deposits payable
21,701

 
17,875

Operating lease liabilities
73,628

 

Finance lease liabilities
72,062

 

Other liabilities and deferred credits
157,938

 
182,898

Total liabilities
4,019,102

 
3,686,106

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
139,758

 
136,208

Shareholders’ equity
 
 
 
Preferred shares, authorized 15,000,000 shares, $.01 par:
 
 
 
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding
150,000

 
150,000

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 399,896 shares issued and outstanding
9,997

 
9,997

Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 75,540,804 and 74,249,633 shares issued and outstanding, respectively
759

 
745

Additional paid-in capital
3,166,522

 
3,004,442

Accumulated dividends in excess of net income
(791,124
)
 
(818,877
)
Accumulated other comprehensive loss
(813
)
 
(416
)
Total shareholders’ equity of the Trust
2,535,341

 
2,345,891

Noncontrolling interests
100,791

 
121,439

Total shareholders’ equity
2,636,132

 
2,467,330

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
6,794,992

 
$
6,289,644


9



Federal Realty Investment Trust
Funds From Operations / Other Supplemental Information
December 31, 2019
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1) (2)
 
 
 
 
 
 
Net income
 
$
148,966

 
$
56,382

 
$
360,542

 
$
249,026

Net income attributable to noncontrolling interests
 
(1,611
)
 
(1,875
)
 
(6,676
)
 
(7,119
)
Gain on sale of real estate, net
 
(85,903
)
 
(1,502
)
 
(116,393
)
 
(11,915
)
Depreciation and amortization of real estate assets
 
54,886

 
55,604

 
215,139

 
213,098

Amortization of initial direct costs of leases
 
5,194

 
10,069

 
19,359

 
24,603

Funds from operations
 
121,532

 
118,678

 
471,971

 
467,693

Dividends on preferred shares
 
(1,875
)
 
(1,875
)
 
(7,500
)
 
(7,500
)
Income attributable to operating partnership units
 
655

 
754

 
2,703

 
3,053

Income attributable to unvested shares
 
(351
)
 
(330
)
 
(1,355
)
 
(1,469
)
FFO (3)
 
$
119,961

 
$
117,227

 
$
465,819

 
$
461,777

Weighted average number of common shares, diluted
 
76,024

 
74,630

 
75,514

 
74,153

FFO per diluted share (3)
 
$
1.58

 
$
1.57

 
$
6.17

 
$
6.23

 
 
 
 
 
 
 
 
 
Summary of Capital Expenditures
 
 
 
 
 
 
 
 
Non-maintenance capital expenditures
 
 
 
 
 
 
 
 
Development, redevelopment and expansions
 
$
89,241

 
$
73,234

 
$
361,290

 
$
282,199

Tenant improvements and incentives
 
19,256

 
11,154

 
59,477

 
45,863

Total non-maintenance capital expenditures
 
108,497

 
84,388

 
420,767

 
328,062

Maintenance capital expenditures
 
12,549

 
8,670

 
23,650

 
19,421

Total capital expenditures
 
$
121,046

 
$
93,058

 
$
444,417

 
$
347,483

 
 
 
 
 
 
 
 
 
Dividends and Payout Ratios
 
 
 
 
 
 
 
 
Regular common dividends declared
 
$
79,316

 
$
75,724

 
$
310,973

 
$
297,347

Dividend payout ratio as a percentage of FFO (3)
 
66
%
 
65
%
 
67
%
 
64
%
 
 
 
 
 
 
 
 
 
Noncontrolling Interests Supplemental Information (4)
 
 
 
 
 
 
 
 
Property operating income (1)
 
$
2,961

 
$
3,395

 
$
12,152

 
$
13,046

Depreciation and amortization
 
(1,467
)
 
(1,678
)
 
(5,944
)
 
(6,580
)
Interest expense
 
(538
)
 
(596
)
 
(2,235
)
 
(2,400
)
Net income
 
$
956

 
$
1,121

 
$
3,973

 
$
4,066

Notes:
1)
See Glossary of Terms.
2)
In connection with the adoption of the new lease accounting standard, effective January 1, 2019, certain internal and external legal leasing costs no longer qualify for capitalization. As a result, capitalized leasing costs excluding external commissions decreased to $0.5 million and $2.2 million for the three months and year ended December 31, 2019, respectively, from $2.2 million and $7.5 million for the three months and year ended December 31, 2018, respectively.
3)
For the year ended December 31, 2019, FFO includes an $11.9 million charge related to the buyout of the Kmart lease at Assembly Row Marketplace. If this charge was excluded, our FFO, FFO per diluted share, and dividend payout ratio as a percentage of FFO would have been:
 
 
Year Ended
 
 
December 31, 2019
 
 
(in thousands, except per share data)
FFO
 
$
477,696

FFO per diluted share
 
$
6.33

Dividend payout ratio as a percentage of FFO
 
65
%
4)
Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to operating partnership units."

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Federal Realty Investment Trust
Market Data
December 31, 2019
 
 
 
December 31,
 
 
 
2019
 
2018
 
 
 
(in thousands, except per share data)
Market Data
 
 
 
 
 
Common shares outstanding and operating partnership units (1)
 
76,150

 
74,988

 
Market price per common share
 
$
128.73

 
$
118.04

 
Common equity market capitalization including operating partnership units
 
$
9,802,790

 
$
8,851,584

 
 
 
 
 
 
 
Series C preferred shares outstanding
 
6

 
6

 
Liquidation price per Series C preferred share
 
$
25,000.00

 
$
25,000.00

 
Series C preferred equity market capitalization
 
$
150,000

 
$
150,000

 
 
 
 
 
 
 
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
 
$
9,962,790

 
$
9,011,584

 
 
 
 
 
 
 
Total debt (3)
 
3,356,594

 
3,157,685

 
 
 
 
 
 
 
Total market capitalization
 
$
13,319,384

 
$
12,169,269

 
 
 
 
 
 
 
Total debt to market capitalization at market price per common share
 
25
%
 
26
%
Notes:
1)
Amounts include 609,584 and 738,423 operating partnership units outstanding at December 31, 2019 and 2018, respectively.
2)
These shares, issued March 8, 2007, are unregistered.
3)
Total debt includes mortgages payable, notes payable, senior notes and debentures, net of premiums/discounts and debt issuance costs from our consolidated balance sheet. The previously reported 2018 balance has been adjusted to exclude capital lease obligations, as finance lease liabilities are no longer included in debt upon the adoption of the new lease accounting standard. See Note 2 of our December 31, 2019 Form 10-K for additional information regarding the adoption.


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Federal Realty Investment Trust
 
 
 
 
 
 
 
Components of Rental Income
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2019, we adopted the accounting guidance in ASU 2016-2, Leases (Topic 842), which resulted in several presentation changes with respect to our 2019 Consolidated Income Statements. 
l
All income from tenant leases are reported as a single line item called “Rental Income.” We have provided below supplemental information with a breakout of the contractual components of the rental income line, however, these breakouts are provided for informational purposes only and should be considered a non-GAAP presentation.
l
Real estate taxes paid directly to the taxing authority by our tenants are no longer presented gross as “real estate tax expense” and “rental income” (this amount was approximately $2 million and $6 million for the three months and year ended December 31, 2018, respectively). This change is only reflected in the 2019 results.
l
Bad debt expense is no longer reflected in “rental expenses” but instead is a direct reduction of “rental income.” This change is reflected in the 2019 results only, and is a reduction of rental income of approximately $1 million and $3 million, respectively, for the three months and year ended December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
 
 
(in thousands)
Minimum rents (1)
 
 
 
 
 
 
 
Commercial
$
158,269

 
$
156,641

 
$
629,231

 
$
616,137

Residential
20,248

 
19,135

 
78,849

 
71,001

Cost reimbursements
46,351

 
46,554

 
174,936

 
178,333

Percentage rents
2,641

 
3,368

 
9,322

 
11,241

Other
10,794

 
8,813

 
40,400

 
35,575

Total rental income
$
238,303

 
$
234,511

 
$
932,738

 
$
912,287


Notes:
1)
Minimum rents include $1.7 million and $0.3 million for the three months ended December 31, 2019 and 2018, respectively, and $7.6 million and $5.0 million for the years ended December 31, 2019 and 2018, respectively, to recognize minimum rents on a straight-line basis. In addition, minimum rents include $1.2 million and $3.0 million for the three months ended December 31, 2019 and 2018, respectively, and $6.4 million and $6.8 million for the years ended December 31, 2019 and 2018, respectively, to recognize income from the amortization of in-place leases.

12



Federal Realty Investment Trust
 
 
 
 
 
 
 
 
 
Comparable Property Information
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following information is being provided for “Comparable Properties.” Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets excluded from Comparable Properties in Q4 include: Assembly Row - Phase 2, CocoWalk, Olivo at Mission Hills, Pike & Rose, The Shops at Sunset Place, Towson Residential, 700 Santana Row, Freedom Plaza, a portion of Graham Park Plaza, and all properties acquired or disposed of from Q4 2018 to Q4 2019. Comparable Property property operating income ("Comparable Property POI") is a non-GAAP measure used by management in evaluating the operating performance of our properties period over period. The amounts shown below for the years ended December 31, 2019 and 2018 reflect the summation of our reported quarterly results during 2019.
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP operating income to Comparable Property POI
 
 
 
 
 
 
Three Months Ended
 
 
Year Ended
 
 
December 31,
 
 
December 31,
 
 
2019
 
2018
 
 
2019
 
2018
 
 
(in thousands)
 
 
(in thousands)
 
Operating Income
$
176,221

 
$
84,840

 
 
$
470,911

 
$
361,636

 
Add:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
61,431

 
66,976

 
 
239,758

 
244,245

 
General and administrative
10,707

 
9,620

 
 
42,754

 
33,600

 
Gain on sale of real estate, net of tax
(85,903
)
 
(1,502
)
 
 
(116,393
)
 
(11,915
)
 
Property operating income (POI)
162,456

 
159,934

 
 
637,030

 
627,566

 
Less: Non-comparable POI - acquisitions/dispositions
(2,381
)
 
(2,990
)
 
 
(3,847
)
 
(6,975
)
 
Less: Non-comparable POI - redevelopment, development & other
(14,714
)
 
(14,962
)
 
 
(45,219
)
 
(49,025
)
 
Comparable Property POI
$
145,361

 
$
141,982

 
 
$
587,964

 
$
571,566

 
 
 
 
 
 
 
 
 
 
 
Additional information regarding the components of Comparable Property POI
 
 
 
 
 
 
Three Months Ended
 
 
Year Ended
 
 
December 31,
 
 
December 31,
 
 
2019
 
2018
% Change
 
2019
 
2018
% Change
 
(in thousands)
 
 
(in thousands)
 
Rental income
$
210,841

 
$
206,493

 
 
$
834,517

 
$
820,055

 
 
 
 
 
 
 
 
 
 
 
Rental expenses
(39,925
)
 
(39,215
)
 
 
(147,686
)
 
(145,736
)
 
Real estate taxes
(25,555
)
 
(25,296
)
 
 
(98,867
)
 
(102,753
)
 
 
(65,480
)
 
(64,511
)
 
 
(246,553
)
 
(248,489
)
 
 
 
 
 
 
 
 
 
 
 
Comparable Property POI
$
145,361

 
$
141,982

2.4
%
 
$
587,964

 
$
571,566

2.9
%
 
 
 
 
 
 
 
 
 
 
Comparable Property POI as a percentage of total POI
89
%
 
89
%
 
 
92
%
 
91
%
 
 
 
 
 
 
 
 
 
 
 
Comparable Property - Summary of Capital Expenditures (1)
 
 
 
 
 
 
Three Months Ended
 
 
Year Ended
 
 
December 31,
 
 
December 31,
 
 
2019
 
2018
 
 
2019
 
2018
 
 
(in thousands)
 
 
(in thousands)
 
Redevelopment and tenant improvements and incentives
$
40,688

 
$
28,097

 
 
$
123,112

 
$
102,494

 
Maintenance capital expenditures
12,347

 
8,280

 
 
22,508

 
18,711

 
 
$
53,035

 
$
36,377

 
 
$
145,620

 
$
121,205

 
 
 
 
 
 
 
 
 
 
 
Comparable Property - Occupancy Statistics (2)
 
 
 
 
 
 
 
 
 
At December 31,
 
 
 
 
 
 
 
2019
 
2018
 
GLA - comparable commercial properties
 
 
 
 
 
21,825,000

 
22,028,000

 
Leased % - comparable commercial properties
 
 
 
 
 
94.9
%
 
95.1
%
 
Occupancy % - comparable commercial properties
 
 
 
 
 
93.3
%
 
94.0
%
 
Notes:
(1)
See page 10 for "Summary of Capital Expenditures" for our entire portfolio.
(2)
See page 28 for entire portfolio occupancy statistics.

13



Federal Realty Investment Trust
Summary of Outstanding Debt and Finance Lease Liabilities
December 31, 2019
 
 
As of December 31, 2019
 
 
Stated maturity date
 
Stated interest rate
 
Balance
 
 
 
Weighted average effective rate (7)
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
Mortgages payable (1)
 
 
 
 
 
 
 
 
 
 
 
Secured fixed rate
 
 
 
 
 
 
 
 
 
 
 
The Shops at Sunset Place
9/1/2020
 
5.62%
 
$
61,987

 
 
 
 
 
 
29th Place
1/31/2021
 
5.91%
 
3,878

 
 
 
 
 
 
Sylmar Towne Center
6/6/2021
 
5.39%
 
16,630

 
 
 
 
 
 
Plaza Del Sol
12/1/2021
 
5.23%
 
8,230

 
 
 
 
 
 
THE AVENUE at White Marsh
1/1/2022
 
3.35%
 
52,705

 
 
 
 
 
 
Montrose Crossing
1/10/2022
 
4.20%
 
67,492

 
 
 
 
 
 
Azalea
11/1/2025
 
3.73%
 
40,000

 
 
 
 
 
 
Bell Gardens
8/1/2026
 
4.06%
 
12,677

 
 
 
 
 
 
Plaza El Segundo
6/5/2027
 
3.83%
 
125,000

 
 
 
 
 
 
The Grove at Shrewsbury (East)
9/1/2027
 
3.77%
 
43,600

 
 
 
 
 
 
Brook 35
7/1/2029
 
4.65%
 
11,500

 
 
 
 
 
 
Hoboken (24 Buildings) (2)
12/15/2029
 
LIBOR + 1.95%
 
56,450

 
 
 
 
 
 
Various Hoboken (12 Buildings)
Various through 2029
 
Various (4)
 
24,627

 
 
 
 
 
 
Chelsea
1/15/2031
 
5.36%
 
5,597

 
 
 
 
 
 
Hoboken (1 Building) (3)
7/1/2042
 
3.75%
 
16,874

 
 
 
 
 
 
Subtotal
 
 
 
 
547,247

 
 
 
 
 
 
Net unamortized premium and debt issuance costs
 
 
 
(1,568
)
 
 
 
 
 
 
Total mortgages payable, net
 
 
 
 
545,679

 
 
 
3.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility (5)
1/19/2024
 
LIBOR + 0.775%
 

 
 
 
 
 
 
Various
Various through 2028
 
11.31%
 
3,843

 
 
 
 
 
 
Subtotal
 
 
 
 
3,843

 
 
 
 
 
 
Net unamortized debt issuance costs
 
 
 
(62
)
 
 
 
 
 
 
Total notes payable, net
 
 
 
 
3,781

 
 
 
11.71
%
(8)
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes and debentures
 
 
 
 
 
 
 
 
 
 
 
Unsecured fixed rate
 
 
 
 
 
 
 
 
 
 
 
2.55% notes
1/15/2021
 
2.55%
 
250,000

 
 
 
 
 
 
3.00% notes
8/1/2022
 
3.00%
 
250,000

 
 
 
 
 
 
2.75% notes
6/1/2023
 
2.75%
 
275,000

 
 
 
 
 
 
3.95% notes
1/15/2024
 
3.95%
 
300,000

 
 
 
 
 
 
7.48% debentures
8/15/2026
 
7.48%
 
29,200

 
 
 
 
 
 
3.25% notes
7/15/2027
 
3.25%
 
475,000

 
 
 
 
 
 
6.82% medium term notes
8/1/2027
 
6.82%
 
40,000

 
 
 
 
 
 
3.20% notes
6/15/2029
 
3.20%
 
400,000

 
 
 
 
 
 
4.50% notes
12/1/2044
 
4.50%
 
550,000

 
 
 
 
 
 
3.625% notes
8/1/2046
 
3.63%
 
250,000

 
 
 
 
 
 
Subtotal
 
 
 
 
2,819,200

 
 
 
 
 
 
Net unamortized discount and debt issuance costs
 
 
 
(12,066
)
 
 
 
 
 
 
Total senior notes and debentures, net
 
 
 
2,807,134

 
 
 
3.67
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total mortgages payable, notes payable, and senior notes and debentures, net
 
3,356,594

 
(6)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finance lease liabilities
 
 
 
 
 
 
 
 
 
 
 
Various
Various through 2106
 
Various
 
72,062

 
 
 
8.03
%
 
Total debt and finance lease liabilities
 
 
 
 
$
3,428,656

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed rate debt and finance lease liabilities, net
 
 
 
$
3,428,656

 
100
%
 
3.82
%
 
Total variable rate debt
 
 
 

 
%
 
%
(8)
Total debt and finance lease liabilities, net
 
 
 
$
3,428,656

 
100
%
 
3.82
%
(8)

14



 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
Operational Statistics
 
 
 
 
 
 
 
Including lease buyout charge
 
 
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (9)
4.17x
 
4.28x
 
4.16x
 
4.22x
Excluding lease buyout charge
 
 
 
 
 
 
 
Ratio of EBITDAre to combined fixed charges and preferred share dividends (9) (10)
4.17x
 
4.28x
 
4.24x
 
4.22x

Notes:
1)
Mortgage payable does not include our share of debt on our unconsolidated real estate partnerships. At December 31, 2019, our share was approximately $54.0 million. At December 31, 2019, our noncontrolling interests' share of mortgages payable was $59.0 million.
2)
On November 26, 2019, we entered into two interest rate swap agreements that fix the interest rate on the mortgage loan at 3.67%.
3)
This mortgage loan has a fixed interest rate, however, the rate resets every five years until maturity. The current interest rate is fixed until July 1, 2022 and the loan is prepayable at par anytime after this date.
4)
The interest rates on these mortgages range from 3.91% to 5.00%.
5)
Our revolving credit facility has a borrowing capacity of $1.0 billion. The maximum amount drawn under our revolving credit facility during the three months and year ended December 31, 2019 was $40.5 million and $116.5 million, respectively. The weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, for the three months and year ended December 31, 2019 was 2.5% and 3.2%, respectively.
6)
The weighted average remaining term on our mortgages payable, notes payable, and senior notes and debentures, is 10 years.
7)
The weighted average effective interest rate includes the amortization of any debt issuance costs and discounts and premiums if applicable, except as described in Note 8.
8)
The weighted average effective interest rate excludes $0.6 million in quarterly financing fees and debt fee amortization on our revolving credit facility which had no outstanding balance on December 31, 2019.
9)
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. EBITDAre is reconciled to net income in the Glossary of Terms.
10)
The ratio of EBITDAre to combined fixed charges and preferred share dividends for the year ended December 31, 2019 excludes the $11.9 million charge related to the buyout of the Kmart lease at Assembly Square Marketplace.

15



Federal Realty Investment Trust
Summary of Debt Maturities
December 31, 2019
Year
Scheduled Amortization
 
Maturities
 
Total
 
Percent of Debt Maturing
 
Cumulative Percent of Debt Maturing
 
Weighted Average Rate (2)
 
 
(in thousands)
 
 
 
 
 
 
 
2020
$
6,272

 
$
60,593

 
$
66,865

 
2.0
%
 
2.0
%
 
3.9
%
 
2021
4,653

 
277,546

 
282,199

 
8.4
%
 
10.4
%
 
2.9
%
 
2022
3,893

 
366,323

 
370,216

 
11.0
%
 
21.4
%
 
3.4
%
 
2023
4,068

 
275,000

 
279,068

 
8.3
%
 
29.7
%
 
3.0
%
 
2024
4,086

 
300,000

(3)
304,086

 
9.0
%
 
38.7
%
 
4.2
%
(3)
2025
3,717

 
44,298

 
48,015

 
1.4
%
 
40.1
%
 
3.9
%
 
2026
3,166

 
52,450

 
55,616

 
1.6
%
 
41.7
%
 
5.9
%
 
2027
2,911

 
683,600

 
686,511

 
20.4
%
 
62.1
%
 
3.8
%
 
2028
2,934

 

 
2,934

 
0.1
%
 
62.2
%
 
7.0
%
 
2029
2,770

 
458,099

 
460,869

 
13.7
%
 
75.9
%
 
3.3
%
 
Thereafter
8,012

 
805,899

 
813,911

 
24.1
%
 
100.0
%
 
4.2
%
 
Total
$
46,482

 
$
3,323,808

 
$
3,370,290

(1)
100.0
%
 
 
 
 
 
Notes:
1)
The total debt maturities differs from the total reported on the consolidated balance sheet due to the unamortized net premium/discount and debt issuance costs on certain mortgage loans, note payable, and senior notes as of December 31, 2019.
2)
The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
3)
The weighted average rate excludes $0.6 million in quarterly financing fees and debt fee amortization on our revolving credit facility, which had no outstanding balance at December 31, 2019. Our $1.0 billion revolving credit facility matures on January 19, 2024, plus two six month extensions at our option.



16



Federal Realty Investment Trust
 
 
 
 
 
Summary of Redevelopment Opportunities
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
The following redevelopment opportunities have received or will shortly receive all necessary approvals to proceed and are actively being worked on by the Trust (1)
 
 
 
Projected
Projected
Cost to
Anticipated
Property
Location
Opportunity
ROI (2)
Cost (1)
Date
Stabilization (3)
 
 
 
 
(in millions)
(in millions)
 
Projects Stabilized in 2019
 
 
 
 
Brick Plaza
Brick, NJ
Redevelopment and repositioning of anchor tenant and small shop spaces to transform property into a market dominant center
7
%
$30
$28
Stabilized
Montrose Crossing
Rockville, MD
Demolition of 10,000 square foot restaurant building to construct an 18,000 square foot multi-tenant pad building
13
%
$9
$9
Stabilized
Pike 7 Plaza
Vienna, VA
Addition of 8,300 square foot multi-tenant retail pad building
8
%
$10
$9
Stabilized
Willow Lawn
Richmond, VA
Conversion of vacant 5,000 square foot pad building to retail use to accommodate new 3,500 square foot fast casual restaurant tenant. Remainder of pad building to be demolished to construct new 2,200 square foot Starbucks pad site.
9
%
$2
$2
Stabilized
Total Projects Stabilized in 2019 (3) (4)
9
%
$51
$48
 
 
 
 
 
 
Active Redevelopment Projects
 
 
 
 
Darien
Darien, CT
Demolition of a 45,000 square foot anchor space to construct 75,000 square feet of new retail space, 122 rental apartments, and 720 parking spaces
6
%
 $110 - $120
$8
2023
CocoWalk
Coconut Grove, FL
Entire shopping center redevelopment to include: demolition of three story east wing of the property and construction of a 106,000 square foot 5-story office/retail building with 24,000 square feet of retail; complete renovation of the west wing
6%-7%

 $85 - $90
$47
2021
Freedom Plaza (5)
Los Angeles, CA
Development of a new 113,000 square foot single-story grocery anchored neighborhood shopping center
7
%
 $38 - $42
$30
2020
Bala Cynwyd
Bala Cynwyd, PA
New 87 unit residential apartment building to be constructed on underutilized land behind our existing shopping center
6
%
$23
$16
2021
7021 Hollywood Blvd.
Los Angeles, CA
Renovation of the center and three vacant spaces to accommodate a new 39,000 square foot anchor tenant
9
%
$19
$6
2021
Melville Mall
Huntington, NY
Development of a new 15,000 square foot pad site consisting of two multi-tenant retail buildings
8
%
$11
$6
2021
Lawrence Park
Broomall, PA
Full shopping center redevelopment to include expansion of Main Line Health into vacant lower level space, creation of 17,800 square feet of small shop space converted from vacated anchor space, and a façade renovation for the entire center
8
%
$10
$1
2021
Wildwood
Bethesda, MD
4,900 square foot south end building expansion and site improvements
7
%
$6
$5
2020
Flourtown
Flourtown, PA
Development of a new 4,550 square foot two-tenant pad building
7
%
$3
$0
2021
Total Active Redevelopment projects (4)
6
%
 $305 - $324
$119
 
Notes:
(1)
There is no guarantee 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 for redevelopment projects 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 for redevelopment projects 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 generally the year in which 90% physical occupancy of the redeveloped space is achieved. Economic stabilization may occur at a later point in time.
(4)
All subtotals and totals reflect cost weighted-average ROIs.
(5)
Project formerly known as Jordan Downs Plaza. Cost to date and projected cost are net of the proceeds we will receive from our New Market Tax Credit structure. See Note 3 of our December 31, 2019 Form 10-K for additional information.

17



Federal Realty Investment Trust
 
 
 
 
 
 
Assembly Row, Pike & Rose, and Santana Row
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected POI Delivered
 
 
 
 
 
 
 
 
 
 
(as a % of Total)
 
 
 
 
 
Projected
 
Total
Costs to
 
For Year Ended December 31, (2)
 
 
Property (1)
Opportunity
 
ROI (3)
 
Cost (4)
Date
 
2019
2020
 
Expected Opening Timeframe
 
 
 
 
 
(in millions)
(in millions)
 
 
 
 
 
Assembly Row, Somerville, MA
 
 
 
 
 
 
 
 
 
 
Phase II
- 161,000 SF of retail
- 447 residential units
- 158 boutique hotel rooms
 
7%
 (5)
$298 - 302
$294
 
90%
Stabilized
 
140,000 square feet of retail has opened, remaining tenants projected to open in 2020
 
 
 
 
 
 
 
 
 
 
Residential building opened in September 2017 with deliveries through 3Q 2018
 
 
 
 
 
 
 
 
 
 
 
741,500 SF Partners Healthcare office space (built by Partners) opened in 2016
 
 
 
 
 
 
 
 
 
 
 
Hotel opened in 3Q 2018
 
 - 122 for-sale condominium units
 
 (6)
$81
$81
 
 
 
 
All condominium units have been sold
Phase III
 - 277,000 SF of office
 
6%
 
$465 - 485
$185
 
 
150,000 square feet of office space pre-leased
 
 - 500 residential units
 
 
 
 
 
 
 
 
 
Openings projected to begin in 2021
 
 - 56,000 SF of retail
 
 
 
 
 
 
 
 
 
 
Future Phases
 - 1.5M SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 - 329 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pike & Rose, North Bethesda, MD
 
 
 
 
 
 
 
 
 
 
Phase II
- 219,000 SF of retail
- 272 residential units
- 177 boutique hotel rooms
 
6%
 (5)
$208
$206
 
90%
Stabilized
 
All of the retail space has opened
 
 
 
 
 
 
 
 
 
 
Residential building opened in August 2017 with deliveries through 2Q 2018
 
 
 
 
 
 
 
 
 
 
 
Hotel opened in 1Q 2018
 
 - 99 for-sale condominium units
 
 (6)
$62
$62
 
 
 
 
97 condominium units have been sold
Phase III
 - 212,000 SF of office
 
6-7%
 
$128 - 135
$76
(7)
10%
 
Openings projected to begin in 2020
 
 - 4,000 SF of retail
 
 
 
 
 
 
 
 
 
 
Future Phases
 - 740,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
 - 741 residential units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Santana Row, San Jose, CA
 
 
 
 
 
 
 
 
 
 
 
700 Santana Row
- 301,000 SF of office
 
7-8%
 
$210 - 220
$198
 
90%
 
Commenced construction 4Q 2016
 
- 20,000 SF of retail & 1,300 parking spaces
 
 
 
 
 
 
 
 
Office 100% pre-leased, opening in 2020
 
- Redevelopment of Santana Row Park including the installation of a new retail pavilion
 
 
 
 
 
 
 
 
 
11,000 square feet of retail has opened
Santana West
- 376,000 SF of office
 
7%
 
$250 - 270
$51
 
 
Openings projected to begin in 2022
 
- 1,750 parking spaces
 
 
 
 
 
 
 
 
 
 
Future Phases
- 321,000 SF of commercial
 
TBD
 
TBD

 
 
 
 
 
 
- 395 residential units
 
 
 
 
 
 
 
 
 
 
 
- 604,000 SF of commercial across from Santana Row
 
 
 
 
 
 
 
 
 
 
Notes:
(1)
Anticipated opening dates, total cost, projected return on investment (ROI), and projected POI percentages are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors.
(2)
Percentage figures reflect (i) the projected POI (herein defined) for the stated year divided by (ii) the current projected annual stabilized POI for the Property. These percentages are projections only and we cannot give any assurances that these amounts will actually be achieved.
(3)
Projected ROI for development projects reflects the unleveraged Property Operating Income (POI) generated by the development and is calculated as POI divided by cost.
(4)
Projected costs for Assembly Row and Pike & Rose include an allocation of infrastructure costs for the entire project. Phase I of Santana West includes an allocation of infrastructure for the Santana West site.
(5)
Costs are net of expected reimbursement by third parties and land sale proceeds. Phase II total costs and costs to date include our share of the costs in the hotel.
(6)
Condominiums shown at cost; the projected ROI for Phase II does not assume any incremental profit on the sale of condominium units; for return calculation purposes, condominiums are assumed to be sold at cost.
(7)
Federal Realty Investment Trust is leasing 45,000 square feet of office space at a market rent in Pike & Rose Phase III. Approximately half of the revenue included in "Projected POI Delivered" in 2020 relates to this rent and will be eliminated in the consolidated financial statements.

18



Federal Realty Investment Trust
Future Redevelopment Opportunities
December 31, 2019
 
We have identified the following potential opportunities to create future shareholder value. Executing these opportunities could be subject to government approvals, tenant consents, market conditions, etc. Work on many of these new opportunities is in its preliminary stages and may not ultimately come to fruition. This list will change from time to time as we identify hurdles that cannot be overcome in the near term, and focus on those opportunities that are most likely to lead to the creation of shareholder value over time.
 
 
 
 
 
 
 
Pad Site Opportunities - Opportunities to add both single tenant and multi-tenant stand alone pad buildings at existing retail properties. Many of these opportunities are "by right" and construction is awaiting appropriate retailer demand.
 
Escondido Promenade
Escondido, CA
 
Mercer Mall
Lawrenceville, NJ
 
 
Federal Plaza
Rockville, MD
 
Pan Am
Fairfax, VA
 
 
Fresh Meadows
Queens, NY
 
Sylmar Towne Center
Sylmar, CA
 
 


 


 
Property Expansion or Conversion - Opportunities at successful retail properties to convert previously underutilized land into new GLA and to convert other existing uses into more productive uses for the property.
 
Barracks Road
Charlottesville, VA
 
Huntington
Huntington, NY
 
 
Bethesda Row
Bethesda, MD