Federal Realty Investment Trust Announces Acquisition of Kingstowne Towne Center in Northern Virginia

Rhea-AI Summary

Federal Realty Investment Trust (NYSE: FRT) is acquiring Kingstowne Towne Center in Kingstowne, Virginia, for a total of $200 million. The acquisition will occur in two phases, with phase one completed for $100 million and phase two expected in July 2022. The property encompasses 410,000 square feet of retail space and is 97% leased, featuring tenants like Safeway, Giant, and T.J. Maxx. This addition strengthens Federal Realty's Northern Virginia portfolio, enhancing its presence in a high-traffic retail area that attracts approximately 8.3 million visitors annually.

Positive

• Acquisition of Kingstowne Towne Center for $200 million enhances market presence.
• The property is 97% leased, indicating strong tenant demand.
• Location near TSA's new headquarters and 5,200 homes provides growth potential.
• Anticipated value increase through remerchandising and capital investment.

Negative

• None.

Best-in-class REIT accelerates growth in core market with addition of Safeway and Giant-anchored property.

NORTH BETHESDA, Md., April 21, 2022 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) is acquiring Kingstowne Towne Center in Kingstowne, Virginia for a total purchase price of $200 million. The acquisition will close in two phases. Federal Realty has closed on phase one of the acquisition for $100 million and expects to close on phase two for $100 million in July, subject to customary closing conditions. Combined, the property comprises 410,000 square feet of retail space on 45 acres of land.

Located in Virginia's Fairfax County near TSA's new headquarters, Kingstowne Towne Center is surrounded by 5,200 homes, four commercial office buildings, and a planned multifamily development, and is part of a one million-square-foot regional retail node that attracts approximately 8.3 million visits annually—amongst the most visited retail destinations in Virginia.

The combined property is 97% leased and features a diversified tenant lineup that includes grocery anchors Safeway and Giant, national retailers T.J. Maxx, Ross and HomeGoods, and fast-casual concepts &pizza and Cava, among others. Federal Realty anticipates increasing the asset's value over time through remerchandising and incremental capital investment. Kingstowne Towne Center is comparable to other large, market-dominant Federal Realty assets such as the double grocery-anchored center, Barracks Road.

"Kingstowne Towne Center has afforded us a rare opportunity to own 45 acres of land in one of the country's most desirable markets," said Jeff Berkes, President and Chief Operating Officer for Federal Realty. "The large property, which boasts attractive demographics and significant barriers to entry, is a valuable addition to our expanding Northern Virginia portfolio and further demonstrates our corporate commitment to investing in value-enhancing acquisitions."

The Kingstowne acquisition is the latest addition to Federal Realty's growing investment in its Northern Virginia portfolio which includes the recent acquisitions of Twinbrooke Shopping Centre in Fairfax and Chesterbrook in McLean and the recent renovation of Birch & Broad in Falls Church. With the addition of Kingstowne Towne Center, Federal Realty owns and operates over 4 million square feet of real estate in Virginia.

About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,100 tenants in 25 million square feet, and approximately 3,400 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

Investor Inquiries:
Leah Andress Brady
Vice President, Investor Relations
301.998.8265
lbrady@federalrealty.com

Media Inquiries:
Brenda Pomar
Director, Corporate Communications
301.998.8316
bpomar@federalrealty.com

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SOURCE Federal Realty Investment Trust

FAQ

What is Federal Realty's acquisition of Kingstowne Towne Center about?

Federal Realty is acquiring Kingstowne Towne Center for $200 million, aiming to enhance its Northern Virginia portfolio.

When will the Kingstowne Towne Center acquisition be completed?

The acquisition will close in two phases, with the first phase completed and the second expected in July 2022.

What is the value of the Kingstowne Towne Center property?

The total purchase price for Kingstowne Towne Center is $200 million.

How much retail space does the Kingstowne Towne Center property have?

The property comprises 410,000 square feet of retail space.

What tenants are located at Kingstowne Towne Center?

Key tenants include Safeway, Giant, T.J. Maxx, and Ross.

What is the expected impact of the acquisition on Federal Realty's business?

The acquisition is expected to enhance Federal Realty's market position and increase asset value over time.