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 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%.

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.

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.