Federal Realty Investment Trust Announces Fourth Q
Federal Realty Investment Trust Announces Fourth Quarter And Year-End 2012 Operating Results
ROCKVILLE, Md., Feb. 12, 2013 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its fourth quarter and year-ended December 31, 2012.
Financial Results
Federal Realty generated funds from operations available for common shareholders (FFO) of $71.7 million, or $1.11 per diluted share for fourth quarter 2012. This compares to FFO of $62.1 million, or $0.97 per diluted share, in fourth quarter 2011. For the year ending December 31, 2012, Federal Realty reported FFO of $277.2 million, or $4.31 per diluted share. This compares to $251.6 million, or $4.00 per diluted share, for the year ending December 31, 2011.
Net income available for common shareholders was $37.6 million and earnings per diluted share was $0.58 for fourth quarter 2012 versus $30.8 million and $0.48, respectively, for fourth quarter 2011. For the year ending December 31, 2012, Federal Realty reported net income available for common shareholders of $151.4 million and earnings per diluted share of $2.35. This compares to net income available for shareholders of $143.4 million and earnings per diluted share of $2.28 for the year ending December 31, 2011.
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
Same-center property operating income in 2012 increased 6.1% including redevelopments and expansions (4.5% if you exclude the lease termination fee from Safeway), and 5.6% excluding redevelopments and expansions (3.9% if you exclude the lease termination fee from Safeway), compared to 2011. On a quarterly-basis, same-center property operating income in fourth quarter 2012 increased 5.4% including redevelopment and expansion properties, and 4.2% excluding redevelopment and expansion properties, compared to fourth quarter 2011.
The overall portfolio was 95.3% leased as of December 31, 2012, compared to 95.1% on September 30, 2012 and 93.4% on December 31, 2011. Federal Realty's same-center portfolio was 95.0% leased on December 31, 2012, unchanged from September 30, 2012 and compared to 94.2% on December 31, 2011.
During fourth quarter 2012, the Trust signed 98 leases for 485,215 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), the Trust leased 478,913 square feet at an average cash-basis contractual rent increase per square foot (i.e., excluding the impact of straight-line rents) of 12%. The average contractual rent on this comparable space for the first year of the new lease is $32.17 per square foot compared to the average contractual rent of $28.71 per square foot for the last year of the prior lease. The previous average contractual rent is 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 20% for fourth quarter 2012.
For all of 2012, Federal Realty signed 394 leases representing 1.8 million square feet of comparable retail space at an average cash-basis contractual rent increase per square foot of 13%, and 23% on a GAAP-basis. The average cash-basis contractual rent on this comparable space for the first year of the new lease is $31.76 per square foot compared to the average cash-basis contractual rent of $28.22 per square foot for the last year of the prior lease. As of December 31, 2012, Federal Realty's average contractual minimum rent for retail and commercial space in its portfolio is $23.83 per square foot, as compared to $23.37 per square foot on December 31, 2011.
"The fundamental strength of our operating portfolio and balance sheet were evident in 2012 as we achieved record setting FFO and FFO per share, strong same center POI growth and record levels of leasing at double digit rent increases on average," commented Donald C. Wood, president and chief executive officer of Federal Realty Investment Trust. "When you combine that fundamental strength with our ability to acquire great assets like East Bay Bridge and the progress we've made on our development and redevelopment pipeline, we're well positioned to continue to deliver strong results in 2013."
Summary of Other Quarterly Activities and Recent Developments
December 21, 2012 – Acquired East Bay Bridge shopping center, a 438,000 square foot, grocery-anchored power center spanning two municipalities, Emeryville and Oakland, California. The Trust paid cash consideration of $53.7 million and assumed an existing $62.9 million mortgage loan secured by the property.
Regular Quarterly Dividends
Federal Realty also announced today that its Board of Trustees left the regular dividend rate on its common shares unchanged, declaring a regular quarterly cash dividend of $0.73 per share on its common shares, resulting in an indicated annual rate of $2.92 per share. The regular common dividend will be payable on April 15, 2013 to common shareholders of record on March 14, 2013.
Guidance
We have increased our 2013 guidance for FFO per diluted share to a range of $4.53 to $4.58 to reflect the impact of our acquisition of East Bay Bridge. Our updated earnings per diluted share guidance is $2.12 to $2.17.
Conference Call Information
Federal Realty's management team will present an in-depth discussion of the Trust's operating performance on its fourth quarter and year-end 2012 earnings conference call, which is scheduled for February 13, 2013, at 11 a.m. Eastern