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Federal Realty Investment Trust Reports Operating Results (10-Q)

August 04, 2010 | About:
10qk

10qk

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Federal Realty Investment Trust (FRT) filed Quarterly Report for the period ended 2010-06-30.

Federal Realty Investment Trust has a market cap of $4.97 billion; its shares were traded at around $80.96 with and P/S ratio of 9.4. The dividend yield of Federal Realty Investment Trust stocks is 3.2%. Federal Realty Investment Trust had an annual average earning growth of 2% over the past 10 years. GuruFocus rated Federal Realty Investment Trust the business predictability rank of 4-star.FRT is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Chris Davis of Davis Selected Advisers, Pioneer Investments, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

Additionally, we continue to invest in the development at Assembly Square which is a long-term development project we expect to be involved in over the coming years. The project currently has zoning entitlements to build 2.3 million square feet of commercial-use buildings, 2,100 residential units, and a 200 room hotel. We expect that we will structure any future development in a manner designed to mitigate our risk which may include transfers of entitlements or co-developing with other real estate companies. Continuing in 2010, we will be completing certain infrastructure work as well as continuing our current pre-development work. We received $10 million of public funding in April 2010, which is included in notes payable in the consolidated balance sheet, related to the infrastructure work we have completed and we expect the Commonwealth of Massachusetts will complete certain additional infrastructure work using government stimulus funds. We expect to invest between $10 million and $30 million related to the development in 2010, net of expected public funding.

Rental expenses increased $0.5 million, or 2.0%, to $25.6 million in the three months ended June 30, 2010 compared to $25.1 million in the three months ended June 30, 2009. This increase is due to an increase of $0.3 million in other operating costs due primarily to higher demolition costs at same-center properties and an increase of $0.2 million in bad debt expense.

Income from real estate partnerships decreased $0.2 million, or 52.9%, to $0.2 million for the three months ended June 30, 2010 compared to $0.4 million in the three months ended June 30, 2009. The decrease is due primarily to $0.2 million of expenses in 2010 related to the formation of our new joint venture partnership.

Gross interest costs were $26.9 million and $27.4 million in the three months ended June 30, 2010 and 2009, respectively. Capitalized interest was $1.5 million and $1.6 million in the three months ended June 30, 2010 and 2009, respectively.

General and administrative expense increased $0.6 million, or 10.7%, to $5.8 million in the three months ended June 30, 2010 compared to $5.3 million in the three months ended June 30, 2009. The increase is primarily due to higher personnel related costs.

Depreciation and amortization expense increased $1.5 million, or 5.2%, to $31.2 million in the three months ended June 30, 2010 from $29.6 million in the three months ended June 30, 2009. This increase is due primarily to capital improvements at same-center and redevelopment properties and accelerated depreciation related to the change in use of certain redevelopment buildings.

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10qk
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