Federal Realty Investment Trust Prices Offering Of 3.95% Senior Unsecured Notes

ROCKVILLE, Md., Dec. 4, 2013 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT)  today announced the pricing of its public offering of $300 million aggregate principal amount of 3.95% senior unsecured notes due January 15, 2024. The notes were offered at 99.018% of the principal amount with a yield to maturity of 4.069%. Interest on the notes will be payable on January 15 and July 15 of each year, beginning July 15, 2014. The offering is expected to close on December 9, 2013, subject to customary closing conditions.

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

Federal Realty intends to use the net proceeds from this offering to redeem all of its outstanding 5.95% Notes due 2014, to pay off an expected balance of $72 million outstanding under its revolving credit facility due to the repayment in full of its 7.50% mortgage notes and for general corporate purposes, which may include without limitation funding potential acquisition opportunities or funding its redevelopment pipeline.

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 Wells Fargo Securities, LLC, Attention: Capital Markets Client Support, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, by email at [email protected], or by phone at 1-800-326-5897 or Citigroup Global Markets Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at [email protected] or by phone at 1-800-831-9146 or J.P. Morgan Securities LLC, Attention: High Grade Syndicate Desk - 3rd Floor 383 Madison Avenue, New York, NY 10179 or by collect call at 1-212-834-4533. Alternatively, you may get these documents for free by visiting the SEC's website at www.sec.gov

This press release 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.

About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 20 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.3% leased to national, regional, and local retailers as of September 30, 2013, with no single tenant accounting for more than approximately 3.4% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 46 consecutive years, the longest record in the REIT industry. 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 our Annual Report on Form 10-K filed on February 12, 2013, 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 renovations 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 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 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 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 12, 2013.

SOURCE Federal Realty Investment Trust