Federal Realty Investment Trust · NYSE:FRT
Federal Realty Investment Trust — Q1 2025 Earnings Presentation
41 slides from Federal Realty Investment Trust's earnings presentation, May 8, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation FIRST QUARTER 2025
Slide 2: Financial Update
Financial Update
Slide 3: 1Q 2025 Overview
1Q 2025 Overview FFO per share of $1.70 for the quarter, grew 3.7% y/y Expanded ~$785 million of redevelopment and expansion pipeline delivering over the next few years with only ~$200 million of remaining spend Strong comparable POI growth excluding lease termination fees and prior period ren
Slide 4: 2025 Guidance
2025 Guidance Revised Previous Considerations Earnings per diluted share $3.00 - $3.12 $3.00 - $3.12 NAREIT FFO per diluted share $7.11 - $7.23 $7.10 - $7.22 Growth over 2024 ~5.0% - 6.8% Growth of ~6% at the midpoint of revised range Key Assumptions Revised Previous Comparable POI growth 3% - 4% 3%
Slide 5: Strong Comparable POI Growth in 2025
Strong Comparable Record leasing, continued occupancy gains and POI Growth in 2025 limited troubled retailer exposure fuel 2025 comparable growth. Record Leasing in Continued Limited exposure Expected Strong 2024 with solid rent Occupancy Gains to troubled 3–4% Comparable increases and strong with A
Slide 6: SNO Pipeline & Rent Commencement Timing
SNO Pipeline & Rent Comparable SNO Pipeline Total Rent Commencement Timing Commencement Timing3 86% 49% 12% Federal’s signed-not-occupied (SNO) pipeline represents about $46 million of incremental total rent 1 and is made up of two 2Q25 2H25 1H26 components: Comparable SNO pipeline represents ~$25
Slide 7: Occupancy Resilient with Room for Additional Upside
Occupancy Resilient with Room for Additional Upside Record comparable leasing in 2024, 98.0% with additional occupancy growth expected 97.0% Leased Rate 20-Year High 96.7% 100 bps below 20-year high 96.0% Occupancy Rate 20-Year High 95.4% Occupancy rate expected to trend Leased 95.7% 95.0% towar
Slide 8: Limited Troubled Retailer Exposure
Limited Troubled Struggling retailers making headlines today have Retailer Exposure minimal impact on our portfolio. Exposure to Retailer Tenants in Bankruptcy (% of ABR)1 2.50% ~60 bps of ABR exposure to bankrupt tenants1 1.97% 2.00% 1.90% 1.70% 2025 guidance includes 75 – 100 basis points of c
Slide 9: Select Redevelopment and Expansions Underway
Select Redevelopment and Expansions Underway Redevelopment and Santana West | San Jose, CA 915 Meeting Street | North Bethesda, MD Bala Cynwyd on City Ave | Bala Cynwyd, PA expansion pipeline Mixed Use Expansion Mixed Use Expansion Residential Over Retail Redevelopment expected to be driver of Pro
Slide 10: Financial Considerations as We Look Beyond 2025
Financial Considerations as We Look Beyond 2025 Growth Drivers Additional Considerations Incremental Net Comparable POI Contributions from Future Headwinds / Growth Redevelopment and Acquisitions Tailwinds Expansion Pipeline 2025E Comparable POI: ~$15 million of Expected source of ~$13 milli
Slide 11: Federal's Acquisition Advantage
Federal’s Acquisition Advantage
Slide 12: Federal's Investment Strategy & Thesis
Federal’s Investment Strategy & Thesis Dominant assets in Affluent consumer in their respective retail-underserved communities markets Upside & Growth Accretive Economics Under-leased Under-merchandised FFO accretive in Year 1 Under-managed Long-term unlevered IRR Under-invested above lo
Slide 13: Federal's Core Competencies
Federal’s Core Competencies Long-standing Proven Differentiated Ability to densify retailer redevelopment approach to asset when prudent relationships and placemaking management Adding mixed-use Preferential and deep expertise Creating environments components where it makes sense capitalizing
Slide 14: Acquisition Activity since Mid-2021
Acquisition Activity since Mid-2021 Neighborhood Community $1.5 billion of gross acquisition investment $1.4 billion net Chesterbrook Twinbrooke McLean, VA Fairfax, VA 17 separate transactions Kingstowne Camelback Colonnade Towne Center Phoenix, AZ Alexandria, VA 5 million SF Power Center King
Slide 15: Leasing Upside
Leasing Upside Kingstowne Towne The Shops at Virginia Center Pembroke Gardens Gateway Acquired in 2022 Acquired in 2022 Acquired in 2024 10 new leases 20 new leases 10 new leases 27% 1 above 38% 1 above 28% 1 above acquisition acquisition acquisition underwriting underwriting underwriting 15 renewal
Slide 16: Federal Realty Overview
Federal Realty Overview
Slide 17: Federal Realty Investment Trust
Federal Realty Strategically selected metro markets Investment Trust CHICAGO NEW YORK BOSTON PHILADELPHIA SILICON VALLEY WASHINGTON, DC SOUTHERN CALIFORNIA Fully integrated US retail real estate-based PHOENIX company focused on risk-adjusted capital allocation Own, manage and re/develop mixed-us
Slide 18: Best-in-Class Demographics
Best-in-Class Income matters in an inflationary environment Demographics $115,000 $110,000 FRT $105,000 MEDIAN HOUSEHOLD INCOME (3-MILE) REG In a landscape marked by cautious consumer spending, FRT’s targeted $100,000 investment in high-income markets not only differentiates us but also $95,000 an
Slide 19: Cycle-Tested Business Plan
Cycle-Tested Cumulative change in Nareit FFO per share since 2005 Business Plan vs. large-cap, national peers Global Inflation/ FRT COVID-19 Financial Crisis Recession? REG 160% KIM 140% FRT, 134% 120% Business plan and balance sheet built to manage through various 100% economic cycles 80% 60% H
Slide 20: Cycle-Tested Business Plan (cont.)
Cycle-Tested Business Plan (cont.) TRACK RECORD MATTERS Global Financial Crisis (2008 – 2012) COVID-19 Pandemic We believe our outperformance in the Global Financial Crisis was driven by: Disproportionally affected by COVID-19 due to Our sector-leading demographics consumers in our markets were be
Slide 21: Investment Highlights
Investment Highlights S&P BBB+ Open-air properties located in Strong balance sheet with ample drivable close-in suburbs of 9 liquidity and a visible path to pre- MOODY’S major metropolitan markets, Baa1 pandemic leverage metrics. with high barriers to entry. $ $ Diverse income stream by 57 YEAR CAGR
Slide 22: 1st Ring Suburbs of Affluent, High-Barrier Markets
1st Ring Suburbs of Affluent, High-Barrier Markets PORTFOLIO OVERVIEW 103 open-air properties located primarily in 1st ring suburbs of 9 major high-barrier markets Drivable markets with public transit access BOSTON Regional Office 7 Properties • 103 properties include: CHICAGO NEW YORK 4 Propert
Slide 23: Diversified Income Stream
Diversified Income Stream By Format PERCENT OF 2025E POI1 By Market Santana Row 1,2 PERCENT OF 2025E POI Mixed Use Centers 36% Plaza El Segundo Grocery-Anchored Community Centers BOSTON 12% of POI 30% NEW YORK CHICAGO 12% of POI 2% of POI PHILADELPHIA Wildwood Shopping Center SILICON VALLEY Gr
Slide 24: Diversified Revenue Stream
Diversified Revenue Stream Top 10 Tenants by ABR2 3.0 % Portfolio Composition by ABR1 2.6 % 2.5 % • 79% Retail • 12% Residential, less on a POI basis • 10% Mixed-Use Office, less on a POI 2.0 % 1.9 % basis 1.6 % 1.5 % Mixed Use 1.5 % Office 1.3 % 1.2 % 10% 1.0 % Residential 1.0 % 0.9 % 0.9 % 0.9 % 1
Slide 25: Contractual Rent Bumps Matter
Contractual Rent Bumps Matter New Initial Rent Square Rollover Lease Total Rent Rent Bump(s) Term Feet Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Required Rent over Term Lease A 3% 10 3% Rent Bumps $20.00 10,000 $20.00 $20.60 $21.22 $21.85 $22.51 $23.19 $23.88 $24.60 $25.
Slide 26: Residential Portfolio
Residential Portfolio MAXIMIZING REAL ESTATE VALUE Assembly Row 947 units Hoboken Overall Portfolio as of 1Q25* 129 units BOSTON + 45 units underway Total Units 3,104 NEW YORK CHICAGO Darien Commons Leased 94.9% PHILADELPHIA 124 units Santana Row SILICON VALLEY 662 units WASHINGTON, DC *all units co
Slide 27: Mixed-Use Office Portfolio
Mixed-Use Office Portfolio MAXIMIZING REAL ESTATE VALUE Existing Portfolio 1.8 MSF of amenitized Class A office space in our mixed-use Total SF 1.8 million SF portfolio % of Total ABR 10% • 98% leased • Representative of 10% of total ABR, less on a POI basis Leased (as of 3/31/25) 98% WAVG Lease T
Slide 28: Mixed-Use Office Portfolio
Mixed-Use Office Portfolio Leading Office Roster MAXIMIZING REAL ESTATE VALUE Assembly Row 373k SF Bethesda Row BOSTON 184k SF NEW YORK Pike & Rose CHICAGO 485k SF PHILADELPHIA + 73k SF Near Completion (2) Santana Row SILICON VALLEY 703k SF WASHINGTON, DC + 340k SF Near Completion (1) SOUTHERN CALIF
Slide 29: In-Process Mixed-Use Expansion Pipeline
In-Process Mixed-Use Expansion Pipeline ~$515 MILLION OF MIXED-USED EXPANSION PROJECTS IN PROCESS Projects located in the 1st ring suburbs of major metro markets with significant demand drivers Near job centers with continued growth Established places Amenitized environments 915 Meeting Stre
Slide 30: In-Process Strategic Redevelopment Pipeline
In-Process Strategic Redevelopment Pipeline ~$270 MILLION OF PROJECTS IN PROCESS Integrated team focused on real estate expansion and 7 total redevelopment projects underway in 2025, stabilizing over redevelopment projects the next few years Successful track record of completing complex redeve
Slide 31: Entitlements
Entitlements PIPELINE OF ADDITIONAL DENSIFICATION OPPORTUNITIES ~1 million SF and 300+ residential units shovel ready ~7 million SF and 1,000+ residential units of additional (i.e. entitled and designed) expansions vested entitlements Pike & Rose, Assembly Row and Santana Row Primarily in ou
Slide 32: Balance Sheet Snapshot
Balance Sheet Snapshot Credit Ratings Ample Liquidity & Financial Flexibility 1Q25 Balance Sheet Update $1.5+ billion of total liquidity in cash, credit 5.7x annualized consolidated net debt to facility and forward equity EBITDA. Target inside 5.5x • $1.25 billion revolving credit facility large
Slide 33: Cycle-Tested Management Team
Cycle-Tested Management Team Average 20+ years at Federal Realty and 25+ years of real estate experience, including managing through difficult real estate and DON WOOD economic cycles. CEO Joined 1998 Lean and nimble corporate structure enables management to be closer to the real estate and the
Slide 34: 57 Consecutive Years of Increased Dividends
57 Consecutive Years of Increased Dividends 1 OF 51 PUBLICLY TRADED COMPANIES CONSIDERED A DIVIDEND KING (50+ YEARS OF INCREASES) Covid-19 pandemic 2020 $4.40 * Global financial crisis Inflation hits 40 -year 2009 low of 1.1% Asian and Russian financial crisis 2004 1998 Inflation in the OPEC imposes
Slide 35: Sustainability Snapshot
Sustainability Snapshot Advance Decarbonization Strengthen Resiliency Minimize the carbon footprint of our company and Invest in and manage our assets to protect value our assets. from increasing frequency and severity of weather- related events and other hazards of climate Our sustainability prog
Slide 36: Connect Communities, Empower Teams, Govern Responsibly
Connect Communities Empower Teams Govern Responsibly Use our real estate to contribute to social and Create a work environment that is diverse, Establish foundation to run the company ethically economic prosperity of the community and advance engaging and helps employees grow personally with appropr
Slide 37: Awards & Recognition
Awards & Recognition More information about our sustainability program can be found in our 2024 Sustainability Report, which provides additional detailed information in alignment with the frameworks established by the Global Reporting Initiative, Task Force for Climate Related Financial Disclosure
Slide 38: Appendix
Appendix
Slide 39: Reconciliation of FFO Guidance as of March 31, 2025
Appendix Reconciliation of FFO Guidance as of March 31, 2025 The following tables provide a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2025. Full Year 2025 Guidance Range Low High Estimated net income available to common s
Slide 40: Safe Harbor and Non-GAAP Information
Safe Harbor and Non-GAAP Information Certain matters included in this presentation may be forward looking statements within the meaning of federal securities laws. These statements may be identified by use of terms such as “may,” “estimate,” “expect,” “intend,” “potential” and similar terms or the n
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