Federal Realty Investment Trust Prices $400 Million of new 3.50% Notes due 2030 and $300 million Reopening of its 3.95% Notes due 2024

ROCKVILLE, Md., May 7, 2020 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the pricing of its public offering of $400 million aggregate principal amount of 3.50% Notes due 2030 (the "2030 Notes") at an effective yield of 3.630% and an additional $300 million aggregate principal amount of 3.95% Notes due 2024 (the "2024 Notes") at an effective yield of 2.944%. The 2024 Notes will have the same terms and be of the same series as the notes that Federal Realty first issued on December 9, 2013 and, upon consummation of this offering, Federal Realty will have a total of $600 million of such series of notes outstanding.

The offering of the 2030 Notes and 2024 Notes is expected to close on May 11, 2020, subject to the satisfaction of customary closing conditions.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Regions Securities LLC, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC acted as joint book-running managers for the offering and J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. acted as co-managers for the offering.

Federal Realty intends to use the net proceeds from this offering to reduce amounts outstanding under its revolving credit facility and for general corporate purposes.

The offering is being made only by means of a prospectus supplement and an effective registration statement (including a prospectus), which have been filed with the SEC. A copy of the prospectus supplement and accompanying prospectus for the offering may be obtained by contacting (i) Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by email at [email protected] or by telephone: 1-800-831-9146, (ii) Deutsche Bank Securities Inc., 60 Wall Street, New York, NY 10005, Attention: Prospectus Group, or by calling 1-800-503-4611 or by email at [email protected], (iii) Jefferies LLC, 520 Madison Avenue, New York, NY 10022, Attention: Debt Capital Markets, or by calling: 1-877-877-0696, or by email:   [email protected], or (iv) Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, or by calling 1-800-645-3751 or by email at [email protected]. Alternatively, you may get these documents for free by visiting the SEC's website at www.sec.gov.

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.

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 subsequent quarterly reports on Form 10-Q, and include the following:

• natural disasters, climate change and public health crises, including the COVID-19 pandemic, could have an adverse impact on our cash flow and operating results;
• 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 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 press release.  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 and subsequent quarterly reports on Form 10-Q.

SOURCE Federal Realty Investment Trust

Related Links

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