Heritage Property Investment Trust, Inc. Announces Third Quarter Leasing and Investment Activity

Confirms Third Quarter Earnings Conference Call for Wednesday, November 9, 2005 


BOSTON, Nov. 1  /PRNewswire-FirstCall/ -- Heritage Property Investment Trust, Inc. (NYSE:HTG) ("Heritage" or the "Company"), today reported recent investment activity and certain operational highlights for the quarter ended September 30, 2005.

  Highlights included:
  * Acquired three additional shopping centers located in Connecticut, New
    Jersey and South Carolina
  * Completed acquisition of 40% minority partnership interest in shopping
    center located in Franklin, Tennessee
  * Entered into joint venture for the development of shopping center to be
    anchored by Cabela's

  PORTFOLIO OVERVIEW

  General


As of September 30, 2005, Heritage had a shopping center portfolio of 171 properties, located in 30 states and totaling approximately 34.9 million square feet of total gross leasable area, of which 28.7 million square feet is company-owned gross leasable area.

Leasing Activity

During the third quarter of 2005, the Company executed 200 leases (new and renewed), for 719,000 square feet in the Company's shopping center portfolio. In doing so, the Company achieved a 4.8% increase over prior rents on a cash basis from $12.18 per square foot to $12.76 per square foot.  For the first nine months of 2005, the Company has signed 499 leases (new and renewed), for 1.8 million square feet in the Company's shopping center portfolio.  In doing so, the Company achieved a 6.6% increase over prior rents on a cash basis from $11.86 per square foot to $12.64 per square foot.

At September 30, 2005, the percentage of the Company's portfolio leased was 92.5%, an increase of 0.4% from the same period last year.  At June 30, 2005, the Company's portfolio was 92.5% leased.

  INVESTMENT ACTIVITY

  Acquisitions


During the third quarter, Heritage completed the acquisition of three additional shopping centers located in Simpsonville, South Carolina; Parlin/Old Bridge Township, New Jersey; and Manchester, Connecticut.  As a result of these acquisitions, the Company added over 700,000 square feet of gross leasable area to its portfolio.  The aggregate purchase price paid by the Company for these three shopping centers was approximately $142 million, including approximately $29 million of assumed mortgage indebtedness and approximately $6 million of operating partnership units in one of the Company's operating subsidiaries.

In addition, on August 2, 2005, Heritage completed the acquisition of the 40% minority partnership interest in Williamson Square Shopping Center, located in Franklin, Tennessee, held by Heritage's joint venture limited partner.  As a result, Heritage owns 100% of the partnership interests in Williamson Square.  The purchase price, which was based on a formula set forth in the partnership agreement, was $2.9 million and was funded with borrowings under the Company's line of credit.  Heritage also repaid upon maturity the previously outstanding mortgage indebtedness encumbering Williamson Square. As a result, Williamson Square is now unencumbered.

Development Joint Ventures

Heritage also announced that it has entered into a joint venture for the development and construction of a new 625,000 square foot shopping center to be located in La Vista, Nebraska, part of the greater Omaha metro area.  The new center is expected to be anchored by Cabela's, a leading specialty retailer, of hunting, fishing, camping and related outdoor merchandise.  If ongoing negotiations for the project conclude successfully, Heritage expects that Cabela's will open its new, approximately 125,000 square foot location as early as fall 2006.  The La Vista retail store would be Cabela's third store in Nebraska, the company's home state.

Capital Raising Joint Venture

As previously announced, Heritage has been exploring capital raising joint venture opportunities involving an initial contribution of certain of its existing assets and the funding of future shopping center acquisitions. Although no agreement regarding any transaction has been entered into, Heritage is pleased to report that it has tentatively selected a joint venture partner and is currently negotiating the principal terms of the joint venture. Assuming an agreement is reached, the Company anticipates completing the joint venture during the late fourth quarter of 2005 or early first quarter of 2006.

3rd QUARTER EARNINGS RELEASE AND CONFERENCE CALL

As previously announced, Heritage will release its financial results for the third quarter on November 8, 2005 and members of Heritage's senior management will host a conference call on Wednesday, November 9, 2005, at 10:00 a.m., ET, to discuss the Company's third quarter results.  Stockholders, analysts and other interested parties may participate in this conference call by dialing 800-867-0448 and 303-262-2191 at least five minutes before the scheduled start time.  Investors can also access the call via the Internet at the Company's website, http://www.heritagerealty.com/.  To listen to a live broadcast, access this site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

A replay of the conference call will be available after the call through November 16, 2005 by accessing the Company's website at http://www.heritagerealty.com/ or by dialing 800-405-2236 and 303-590-3000, passcode 11040071.

ABOUT HERITAGE PROPERTY INVESTMENT TRUST, INC.

Heritage is a fully integrated, self-administered and self-managed REIT traded on the New York Stock Exchange under the symbol "HTG".  Heritage is one of the largest owners and operators of neighborhood and community shopping centers in the United States.  Heritage focuses on grocer-anchored shopping centers with multiple anchors.  Heritage is headquartered in Boston Massachusetts and has an additional 16 regional offices located in the Eastern, Midwestern and Southwestern United States.  For more information about Heritage, please refer to Heritage's website, http://www.heritagerealty.com/. 

DATASOURCE: Heritage Property Investment Trust, Inc.



CONTACT:  Patrick O'Sullivan, Vice President, Finance and Accounting of

Heritage Property Investment Trust, Inc., [phone],

; or Claire Koeneman, Analyst Info,

[phone], or Joe Calabrese, General Info, [phone], both of

Financial Relations Board for Heritage Property Investment Trust, Inc.



Web site:  http://www.heritagerealty.com/ 

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