Leasing, Redevelopment Produce Strong Year for Federal Realty
By Barbra Murray
Last updated: February 23, 2006 10:35am

ROCKVILLE, MD-Federal Realty Investment Trust offered up details on its strong performance, claiming a continuation of a 38-year streak of increasing annual dividend rates to its shareholders. During an earnings call yesterday, company officials pointed to leasing and redevelopment endeavors as the backbone of its successes in 2005.

Across the board, the numbers tell the same story, the executives pointed out. During the final quarter of '05, FFO was $.78 per-diluted share, compared to $.70 in the fourth quarter of '04. For 2005, FFO was $3.06, and earnings were $1.94, overshadowing 2004's $2.85 and $1.41.

Net income available for common shareholders was $32.3 million for the last three months of 2005, and $103.1 million for the year; those number in 2004 were $19 million and $72.7 million, respectively.

Additionally, Federal Realty's portfolio's leasing increased to 96.3% by yearend 2005 from 95.1% at yearend '04. Operating income, taking into consideration redevelopments and expansions, went up 6.1%.

"Our continued strong internal growth, as well as a significant pipeline of redevelopment opportunities, provides the foundation for Federal Realty to produce consistent and reliable growth in earnings in 2006 and beyond," said company president and CEO Donald C. Wood in a prepared statement. During the conference, he added that, "Santana Row on the West Coast and now Assembly Square on the East Coast, along with several other underutilized properties that we control, rise above all others in terms of significant value creation yet to be extracted."