ROCKVILLE, Md., Sept. 25, 2017 /PRNewswire/ -- Federal Realty
Investment Trust (NYSE: FRT) today announced that it has priced an
underwritten public offering of 6,000,000 depositary shares, each
representing a 1/1000 fractional interest in a share of the Trust's
5.000% Series C Cumulative Redeemable Preferred Shares of
Beneficial Interest for a gross public offering price of
$150 million. As part of the
offering, the Trust granted the underwriters a 30-day option to
purchase an additional 400,000 depositary shares. The depositary
shares, priced at $25.00 per
depositary share, entitle holders of each depositary share to a
5.000% cumulative dividend, or $1.250
per annum, are not convertible into common stock and are redeemable
at par at the option of the company on and after September 29, 2022. The offering is expected to
close on September 29, 2017, subject
to customary closing conditions. The Trust intends to apply to list
the depositary shares on the New York Stock Exchange under the
symbol "FRTPRC". If its application is approved, the Trust
expects trading of the depositary shares on the New York Stock
Exchange to commence within the 30-day period after the initial
delivery of the depositary shares.
The Trust intends to use the net proceeds from this offering to
reduce amounts outstanding under its revolving credit facility and
for general corporate purposes.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS
Securities LLC and Wells Fargo Securities, LLC served as joint
book-running managers for the offering. Raymond James & Associates, Inc., Citigroup
Global Markets Inc., Jefferies LLC and J.P. Morgan Securities LLC
served as joint lead-managers for the offering.
The offering was made pursuant to an effective shelf
registration statement, prospectus and related prospectus
supplement. Copies of the prospectus supplement and the base
prospectus, when available, may be obtained by contacting (i)
Merrill Lynch, Pierce, Fenner & Smith Incorporated,
NCI-004-03-43, 200 North College Street, 3rd Floor,
Charlotte, North Carolina
28255-0001, Attention: Prospectus Department or by email at
dg.prospectus_requests@baml.com; (ii) UBS Securities LLC, 1285
Avenue of the Americas, New York, New
York 10019, Attention: Prospectus Department or by telephone
1-888-827-7275; or (iii) Wells Fargo Securities, LLC, 608 2nd
Avenue South, Suite 1000, Minneapolis,
Minnesota 55402, Attention: WFS Customer Service, or by
calling 1-800-645-3751 or by email at
wfscustomerservice@wellsfargo.com. Investors may also obtain these
documents for free by visiting EDGAR on the Securities and Exchange
Commission's website at www.sec.gov.
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, our mission is
to deliver long term, sustainable growth through investing in
densely populated, affluent communities where retail demand exceeds
supply. Our 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 over 2,800 tenants, in approximately 24
million square feet, and over 1,800 residential units.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962, and has increased its
dividend rate for 50 consecutive years, the longest record in the
REIT industry. Federal Realty 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 13, 2017, and
include the following:
- risks that our tenants will not pay rent, may vacate early
or may file for bankruptcy 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 renovation projects that we do pursue may cost
more, take more time to complete, or fail to perform as
expected;
- risks that we are investing a significant amount in
ground-up development projects that may be dependent on third
parties to deliver critical aspects of certain projects, requires
spending a substantial amount upfront in infrastructure, and
assumes receipt of public funding which has been committed but not
entirely funded;
- 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 costs associated with the
periodic maintenance and repair or renovation of space, insurance
and other operations may increase, 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 associated with general economic conditions, including
local economic conditions in our geographic markets;
- 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 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 with the
Securities and Exchange Commission on February 13, 2017.
Investor
Inquires:
|
Media
Inquiries:
|
Leah
Andress
|
Andrea
Simpson
|
Investor Relations
Associate
|
Vice President,
Marketing
|
301.998.8265
|
617.684.1511
|
landress@federalrealty.com
|
asimpson@federalrealty.com
|
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SOURCE Federal Realty Investment Trust