34903--3/3/2006--FEDERAL_REALTY_INVESTMENT

related topics

{loan, real, estate}

{investment, property, distribution}

{tax, income, asset}

{debt, indebtedness, cash}

{regulation, change, law}

{acquisition, growth, future}

{stock, price, share}

{loss, insurance, financial}

{provision, law, control}

{regulation, government, change}

{cost, regulation, environmental}

Revenue from our properties may be reduced or limited if the retail operations of our tenants are not successful. Our net income depends on the success and continued presence of our anchor tenants. We may experience difficulty or delay in renewing leases or re-leasing space. The amount of debt we have and the restrictions imposed by that debt could adversely affect our business and financial condition. We are obligated to comply with financial and other covenants in our debt that could restrict our operating activities, and the failure to comply with such covenants could result in defaults that accelerate payment under our debt. Our development activities are inherently risky Redevelopments and acquisitions may fail to perform as expected. Our ability to grow will be limited if we cannot obtain additional capital. Rising interest rates could adversely affect our cash flow and the market price of our outstanding debt and preferred shares. Our performance and value are subject to general risks associated with the real estate industry. Many real estate costs are fixed, even if income from our properties decreases. Competition may limit our ability to purchase new properties and generate sufficient income from tenants. We may be unable to sell properties when appropriate because real estate investments are illiquid. Our insurance coverage on our properties may be inadequate. We may have limited flexibility in dealing with our jointly owned investments. Environmental laws and regulations could reduce the value or profitability of our properties. The Americans with Disabilities Act of 1990 could require us to take remedial steps with respect to existing or newly acquired properties. The revenues generated by our tenants could be negatively affected by various federal, state and local laws to which they are subject. Failure to qualify as a REIT for federal income tax purposes would cause us to be taxed as a corporation, which would substantially reduce funds available for payment of distributions. We may be required to incur additional debt to qualify as a REIT. To maintain our status as a REIT, we limit the amount of shares any one shareholder can own. We cannot assure you we will continue to pay dividends at historical rates. Certain tax and anti-takeover provisions of our declaration of trust and bylaws may inhibit a change of our control. We may amend or revise our business policies without your approval, and we have adopted a business plan that involves changes in our operational policies.

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34903--3/3/2006--FEDERAL_REALTY_INVESTMENT_TRUST