Federal Realty Investment Trust · NYSE:FRT
Federal Realty Investment Trust — Q2 2024 Earnings Presentation
28 slides from Federal Realty Investment Trust's earnings presentation, Aug 1, 2024
Slide 1: Investor Presentation Second Quarter 2024
Investor Presentation SECOND QUARTER 2024
Slide 2: Federal Realty Investment Trust
Federal Realty Strategically selected first-ring suburbs of nine metro markets with high barriers to entry 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 c
Slide 3: 2Q 2024 Overview
2Q 2024 Overview FFO per share of $1.69 for the quarter Expanded ~$840 million of redevelopment and expansions in process delivering over the next few years 2.9% comparable POI growth 2Q 2024 over 2Q 2023 excluding lease termination fees and prior period rents Acquired 2 assets totaling 880,
Slide 4: 2024 Guidance
2024 Guidance Revised Previous Considerations Earnings per diluted share $3.33 - $3.51 $2.74 - $2.94 NAREIT FFO per diluted share $6.70 - $6.88 $6.67 - $6.87 Growth over 2023 ~2.3% - 5% ~1.8% - 5% Growth of ~3.7% at the midpoint of revised range Key Assumptions Revised Previous Comparable POI growth
Slide 5: 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 on high-income markets not only differentiates us but also $95,000 an
Slide 6: 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 140% KIM 120% FRT, 122% Business plan and balance sheet 100% built to manage through various economic cycles 80% 60% Histor
Slide 7: 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 8: 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 9: 1st Ring Suburbs of Strategic High-Barrier Markets
1st Ring Suburbs of 9 Strategic High-Barrier Markets PORTFOLIO OVERVIEW 102 open-air properties located in 1st ring suburbs of 9 major high-barrier markets Drivable markets with public transit access BOSTON Regional Office • 102 properties include: 7 Properties • ~3,400 commercial tenants CHICAG
Slide 10: Diversified Income Stream
Diversified Income Stream By Format PERCENT OF 2024E POI1 By Market Santana Row 1,2 PERCENT OF 2024E POI Mixed Use Centers 36% Plaza El Segundo Community Centers BOSTON 28% 12% of POI NEW YORK CHICAGO 12% of POI 2% of POI PHILADELPHIA Wildwood Shopping Center SILICON VALLEY 6% of POI Neighborh
Slide 11: Diversified Income Stream
Diversified Income Stream Top 10 Tenants by ABR2 3.0 % Portfolio Composition by ABR1 2.7 % 2.5 % • 77% Retail • 12% Residential, less on a POI basis 1.9 % • 11% Mixed-Use Office, less on a POI 2.0 % basis 1.7 % 1.7 % 1.5 % Residential 1.3 % 1.3 % 12% 1.1 % Mixed Use 1.0 % 1.0 % 0.9 % 0.8 % Office 11
Slide 12: 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 13: Residential Portfolio
Residential Portfolio MAXIMIZING REAL ESTATE VALUE Assembly Row 947 units Existing as of 2Q24 Total Units 3,104 Hoboken BOSTON 129 units Leased 97.6% NEW YORK Darien Commons CHICAGO 124 units PHILADELPHIA Comparable as of 2Q24 Santana Row SILICON VALLEY 662 units WASHINGTON, DC Total Units 2,980 SOU
Slide 14: Mixed-Use Office Portfolio
Mixed-Use Office Portfolio MAXIMIZING REAL ESTATE VALUE Existing Portfolio Total SF 2.0 million SF % of Total ABR 11% 2.0 million SF of amenitized Class A office space in our mixed-use portfolio Leased (as of 6/30/24) 97% • Representative of 11% of total ABR, less on a POI basis WAVG Lease Term2 7
Slide 15: 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 456k SF PHILADELPHIA + 92k SF underway (2) Santana Row SILICON VALLEY 705k SF WASHINGTON, DC + 340k SF underway (1) SOUTHERN CALIFORNIA CocoWalk
Slide 16: 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 17: In-Process Strategic Redevelopment Pipeline
In-Process Strategic Redevelopment Pipeline ~$330 MILLION OF PROJECTS IN PROCESS Integrated team focused on real estate expansion and 8 total redevelopment projects underway in 2024, stabilizing over redevelopment projects the next few years Successful track record of completing complex redeve
Slide 18: Entitlements
Entitlements PIPELINE OF ADDITIONAL DENSIFICATION OPPORTUNITIES ~1 million SF and 250+ residential units shovel ready ~7 million SF and 2,000+ residential units of additional (i.e. entitled and designed) expansions vested entitlements Pike & Rose, Assembly Row and Santana Row Primarily in ou
Slide 19: Balance Sheet Snapshot
Balance Sheet Snapshot Credit Ratings Ample Liquidity & Financial Flexibility 2Q24 Balance Sheet Update $1.3 billion of total liquidity in cash and credit 5.8x annualized net debt to EBITDA facility • Target a ratio in the mid 5x over the next S&P • $1.25 billion revolving credit facility largel
Slide 20: 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 JEFF BERKES CEO EVP, President & COO economic cycles. Joined 1998 Joined 2000 Lean and nimble corporate structure enables manage
Slide 21: 57 Consecutive Years of Increased Dividends
57 Consecutive Years of Increased Dividends 1 OF 56 PUBLICLY TRADED COMPANIES CONSIDERED A DIVIDEND KING Covid-19 pandemic 2020 $4.40 * Financial crisis Inflation hits 40 -year 2009 low of 1.1% Asian and Russian financial crisis 2004 1998 Inflation in the OPEC imposes oil US hits 14.8% embargo on th
Slide 22: Environmental, Social and Governance
Environmental, Social and Governance 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 O
Slide 23: 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 24: Awards & Recognition
Awards & Recognition More information about our ESG program can be found in our 2023 Environmental Social and Governance Report, which provides additional detailed information in alignment with the frameworks established by the Global Reporting Initiative, Task Force for Climate Related Financial
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Slide 26: Appendix: Reconciliation of FFO Guidance
Appendix Reconciliation of FFO Guidance as of June 30, 2024 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 2024. Full Year 2024 Guidance Range Low High Estimated net income available to common sh
Slide 27: 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. Actual future performance and results may differ materially from those included in forward looking statements. Please refer to our most
Slide 28: ir.federalrealty.com
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Federal Realty Investment Trust — Q2 2024 Earnings Presentation on 6ix