Federal Realty Investment Trust Closes on $265 Million of Opportunistic Capital Raising

Federal Realty Investment Trust Closes on $265 Million of Opportunistic
Capital Raising

ROCKVILLE, Md., Aug. 17 /PRNewswire-FirstCall/ -- Federal Realty Investment
Trust (NYSE: FRT) today announced that it had closed on $265 million of
previously announced capital raising activities, comprised of $150 million of
5.95% senior unsecured notes and $115 million of common shares of beneficial
interest, which includes the underwriters' over-allotment option. Federal
Realty intends to utilize the proceeds to pursue acquisition opportunities,
fund its redevelopment pipeline, pay down its $372 million term loan, and/or
for general corporate purposes.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO )

"The manageable size of these capital raises reflects the measured and
balanced approach that we take in running our business while recognizing the
uncertainties associated with the current economic condition," said Donald
Wood, president and chief executive officer of Federal Realty. "We were able
to act quickly to take advantage of favorable market conditions in the debt
market, which along with the common equity issuance positions us to capitalize
on opportunities that arise."

"Both the unsecured notes and common equity offering were significantly
oversubscribed at very favorable terms, demonstrating continued strong demand
for Federal Realty securities from both fixed income and equity investors,"
said Andrew Blocher, senior vice president and chief financial officer for the
Trust. "Our strong property performance, effectively executed business
strategy and management credibility has enabled us to raise $800 million of
proceeds in 2009, despite the very difficult capital markets environment."

Federal Realty is revising its 2009 FFO per diluted share guidance to reflect
the receipt of proceeds from both the unsecured notes and common equity
offering. The new guidance of FFO per diluted share of $3.72 to $3.77,
excluding the previously announced litigation charge, assumes the Trust holds
the proceeds in cash through the end of 2009.

About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust
specializing in the ownership, management and redevelopment of high-quality
retail and mixed-use properties located primarily in densely populated and
affluent communities in strategically selected metropolitan markets in the
Northeast, Mid-Atlantic, and California. As of June 30, 2009, Federal Realty
owned or had a majority interest in community and neighborhood shopping
centers and mixed-use properties which are operated as 84 predominantly retail
real estate projects comprising approximately 18.2 million square feet. In
total, the real estate properties were 94.0% leased and 93.2% occupied at June
30, 2009. A joint venture in which Federal Realty owns a 30% interest owned
seven retail real estate projects totaling approximately 1.0 million square
feet as of June 30, 2009. In total, the joint venture properties in which
Federal Realty owns an interest were 96.2% leased and occupied at June 30,
2009. 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 26, 2009 and amended on June 25, 2009, and include the
following:

-- risks that our tenants will not pay rent 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 the number of properties we acquire for our own account,
and
therefore the amount of capital we invest in acquisitions, may be
impacted by our real estate partnership;
-- 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 of financing, such as our ability to consummate additional
financings or obtain replacement financing on terms which are
acceptable
to us, our ability to close any pending financing activities, 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 February 26, 2009 and amended on June
25, 2009.

Investor and Media Inquiries
Gina Birdsall Janelle Stevenson
Investor Relations Corporate Communications
301/998-8265 301/998-8185
gbirdsall@federalrealty.com jmstevenson@federalrealty.com

Federal Realty Investment Trust
Reconciliation of Net Income to FFO Guidance

2009 Guidance
---------------
(Dollars in
millions except
per share
amounts)(1)

Funds from Operations available for common shareholders (FFO)
-------------------------------------------------------------
Net income attributable to the Trust $90 $93
Gain on sale of real estate (1) (1)
Depreciation and amortization of real estate & real estate
partnership assets 105 105
Amortization of initial direct costs of leases 9 9
----- -----
Funds from operations 203 206
Dividends on preferred stock (1) (1)
Income attributable to operating partnerships units 1 1
Income attributable to unvested shares (1) (1)
----- -----
FFO 203 206
Litigation provision (2) 21 21
----- -----
FFO excluding litigation provision $224 $227
===== =====

Weighted average number of common shares, diluted 60.2 60.2

FFO per diluted share $3.37 $3.42
Litigation provision (2) 0.35 0.35
----- -----
FFO per diluted share excluding litigation provision $3.72 $3.77
===== =====

Notes:
------
(1) Individual items may not add up to total due to rounding.
(2) Amount represents a charge for litigation regarding a parcel of
land located adjacent to Santana Row as well as other costs related
to the litigation and appeal process.

SOURCE Federal Realty Investment Trust

Gina Birdsall, Investor Relations, +1-301-998-8265,
gbirdsall@federalrealty.com, or Janelle Stevenson, Corporate Communications,
+1-301-998-8185, jmstevenson@federalrealty.com, both of Federal Realty
Investment Trust