Tuesday, December 2, 2014
Federal Realty Investment Trust: A Real Estate Investment Trust
The properties owned and managed by the Federal Realty Investment Trust are high quality retail estates that are mostly located in the best markets in the country. Founded in 1962, the business is registered as a real estate investment trust that has been strongly engaged in the ownership, development, redevelopment and management of properties that are categorized as retail and mixed-use ownership.
Currently, the company has properties that are located in 14 states, including the District of Columbia. It is always on the prowl for possible takeover of assets that have the probable higher return of investment due to its location. The majority of these assets are sitused in the states of California, Florida and the Northeast and Mid-Atlantic regions of the country. The company’s calculated approach in the acquisition of properties has always been grounded on the solid demographics, stable resources and broad experience. These three considerations have led the company to greater success when it comes to turning these locations into exciting destination retail centers.
The development and redevelopment strategies of the company have also created very high shareholder value. Through this approach, they are able to create potential opportunities from already existing properties. This business strategy entails that the company follows some guidelines that are set by the government, market conditions and tenant consents. Current opportunities created by Federal Realty include pad site opportunities, where they create single and or multi-tenant stand alone pad buildings within the perimeter of existing retail properties. Property expansion or conversion is another strategy that the business uses in order to maximize the space they currently operate. They also see residential opportunities that they inject in existing retail and mixed-use properties and at the same time, create mixed opportunities from these ownerships.
Since Federal Realty Investment Trust operates as a REIT, it has created a company that is devoid of any liabilities to federal income tax. This is granting that the business continues to distribute at least 90% of its generated revenue back to its shareholders.
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