Federal Realty Sees Operating Income, Occupancy Increase in Q3

Federal Realty released its third quarter earnings report on Wednesday, which showed that same-center property operating income increased 2.6 percent over third quarter 2008. In addition, the portfolio was 94.2% leased as of September 30, 2009, compared to 94.0% on June 30th, 2009 with an average cash-basis contractual rent increase per square foot (excluding the impact of straight-line rents) of 9 percent.

When redevelopment and expansion properties are excluded from same-center results, property operating income for third quarter 2009 increased 1.8% compared to third quarter 2008.

The overall portfolio was 94.2% leased as of September 30, 2009, compared to 94.0% on June 30, 2009 and 95.5% on September 30, 2008. Federal Realty’s same-center portfolio was 94.4% leased on September 30, 2009, compared to 94.2% on June 30, 2009 and 95.8% on September 30, 2008.

During the third quarter of 2009, Federal Realty signed 94 leases for 357,000 square feet of retail space.

On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 335,000 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 9%. The average contractual rent on this comparable space for the first year of the new leases is $29.38 per square foot, compared to the average contractual rent of $27.00 per square foot for the last year of the prior leases. The previous average contractual rent was calculated by including both the minimum rent and any percentage rent actually paid during the last year of the lease term for the re-leased space.

On a GAAP basis (i.e., including the impact of straight-line rents), rent increases per square foot for comparable retail space averaged 17% for third quarter 2009. As of September 30, 2009, Federal Realty’s average contractual, cash basis minimum rent for retail and commercial space in its portfolio was $22.01 per square foot.

“Our 2009 results and outlook for 2010 reflect consistent performance during this challenging economic environment,” said Don Wood, president and chief executive officer of Federal Realty Investment Trust. “This level of stability is a testament to the quality of our assets, our locations, and our focused operating strategy.”

The conference call for third quarter earnings will be Thursday, Nov. 5 at 11:00 a.m. Eastern Standard Time (EST). Conference call access information is as follows:

Toll Free Number:    (866) 761-0748
Pass Code:           FRT EARNINGS

A live webcast of the conference call will be available at www.federalrealty.com.