Federal Realty Investment Trust Announces Pricing of $150 Million Senior Unsecured Notes Offering

ROCKVILLE, Md., Feb. 24 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the pricing of its public offering of $150 million of 10-year senior unsecured notes. The 5.90% notes are due April 1, 2020 and were offered at 99.812% of par.  

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Banc of America Securities LLC and Wells Fargo Securities, LLC acted as joint book-running managers for the offering.  Citigroup Global Markets Inc., Goldman, Sachs & Co., PNC Capital Markets LLC, RBC Capital Markets Corporation, Capital One Southcoast, Inc., Sandler O'Neill & Partners, L.P. and SunTrust Robinson Humphrey, Inc. acted as co-managers.  Subject to customary conditions, the offering is expected to close on or about March 1, 2010.

Federal Realty intends to use the net proceeds to fund potential acquisition opportunities, fund its redevelopment pipeline, reduce amounts outstanding under its $250 million term loan, and/or for general corporate purposes.

A copy of the final prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting Banc of America Securities LLC, Attention: Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, New York 10001, 1-800-294-1322, email: [email protected] and Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attn: Syndicate Operations, 1-800-326-5897, email: [email protected].

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, and redevelopment of high quality retail and mixed use properties. Federal Realty's portfolio (excluding joint venture properties) contains approximately 18.2 million square feet located primarily in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California. In addition, Federal Realty has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which Federal Realty has a 30% interest. Our operating portfolio (excluding joint venture properties) was 94.5% leased as of December 31, 2009, with no single tenant accounting for more than approximately 2.6% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962 and has increased its dividends per common share for 42 consecutive years. Federal Realty is an S&P MidCap 400 company, and its shares are traded on the NYSE under the symbol FRT.

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 Federal Realty's Annual Report on Form 10-K filed on February 17, 2010 and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy, or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
• risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopment or renovation project may cost more, take more time to complete or fail to perform as expected;
• risks that the number of properties we acquire for our own account, and therefore the amount of capital we invest in acquisitions, may be impacted by our real estate partnership;
• 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,
  • new acquisitions may fail to perform as expected,
  • competition for acquisitions could result in increased prices for acquisitions,
  • environmental issues may develop at our properties and result in unanticipated costs, and
  • because real estate is illiquid, we may not be able to sell properties when appropriate;
• risks that our growth will be limited if we cannot obtain additional capital;
• risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms that 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, or REIT, for U.S. 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 Federal Realty makes, including those in this press release. Except as may be required by law, Federal Realty makes 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 Federal Realty's Annual Report on Form 10-K filed February 17, 2010.

SOURCE Federal Realty Investment Trust