Federal Realty Investment Trust · NYSE:FRT
Federal Realty Investment Trust — Q1 2023 Earnings Presentation
35 slides from Federal Realty Investment Trust's earnings presentation, May 4, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation FIRST QUARTER 2023
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: 1Q 2023 Overview
1Q 2023 Overview FFO per share of $1.59 for the quarter, an ~$250 million of spend remaining on ~$750 increase of 6% year-over-year million of redevelopment and expansions in process delivering over the next few years 3.6% comparable POI growth over 1Q 2022 2023 FFO per share guidance reflec
Slide 4: Comparable POI
Comparable POI 1Q23 & FULL YEAR 2023E Change Change Full Year 2023 v. Prior Year Quarter v. Prior Full Year 2022 1Q23 2023E GAAP Based Comparable POI Growth 3.6% 2% – 4% Cash Based Comparable POI Growth 4.3% 2% - 4% Comparable POI Growth excluding term fees 4.4% Comparable POI Growth excluding prior
Slide 5: 2023 Guidance
2023 Guidance Current Earnings per diluted share $2.59 - $2.79 NAREIT FFO per diluted share $6.38 - $6.58 Growth over 2021 ~1% - ~4% Growth of ~2.5% at the midpoint Key Assumptions Current Comparable POI growth 2% - 4% Comparable POI growth excluding prior period 3% - 5% rents and term fees Includes
Slide 6: Best-in-Class Demographics
Best-in-Class Income matters in an inflationary environment Demographics “Consumers are still spending, but headwinds are getting $115,000 increasingly fierce…. [our] lower-income shoppers – those with household incomes of $75,000 or less – are trading $110,000 down to less expensive items while mid
Slide 7: Cycle-Tested Business Plan
Cycle-Tested Cumulative change in Nareit FFO per share since 2005 Business Plan vs. large-cap, national peers FRT Global Financial Crisis COVID-19 Recession? REG 150% KIM SITC FRT, 111.8% 100% Business plan and balance sheet built to manage through various economic cycles 50% History of managing
Slide 8: 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 9: Investment Highlights
Investment Highlights S&P BBB+ Open-air properties located in Strong balance sheet with ample drivable first-ring suburbs of 9 MOODY’S Baa1 liquidity and a visible path to pre- major metropolitan markets, pandemic leverage metrics. with high barriers to entry. $ $ Diverse income stream by 55 YEAR CA
Slide 10: 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 • ~3,200 commercial tenants CHICAG
Slide 11: Diversified Income Stream
Diversified Income Stream By Format PERCENT OF 2023E POI 1 By Market Santana Row 1, 2 PERCENT OF 2023E POI Mixed Use 37% Plaza El Segundo Super Regional BOSTON 27% 12% of POI NEW YORK CHICAGO 12% of POI 2% of POI PHILADELPHIA Wildwood Shopping Center SILICON VALLEY 6% of POI Grocery Anchored 1
Slide 12: Diversified Income Stream: Top Tenants by ABR
Diversified Income Stream Top 10 Tenants by ABR 3.0 % 2.7 % 2.5 % 2.0 % 1.8 % No tenant greater than 2.8% of ABR 1.7 % 1.5 % 1.5 % 1.3 % 1.3 % 1.3 % Only 8 tenants with greater than 1% 1.0 % exposure 1.0 % 0.9 % 0.9 % 0.5 % ~3,200 total tenants in 102 commercial properties 0.0 % S&P A BBB+ BBB
Slide 13: Diversified Income Stream
Diversified Income Stream Portfolio Composition by ABR Portfolio Composition by Category Grocery / Pharmacy 10% Limited-Service Restaurants 8% Full-Service Restaurants 8% Office Apparel / Accessories 7% 12% Off-Price 7% Home 4% Residential Anchors Fitness 4% 12% (>10k SF) Banks / Financial Services
Slide 14: Contractual Rent Bumps Matter
Contractual Rent Bumps Lease A 3% Rent Bumps Annually Lease B 2% Rent Bumps Annually Lease C 10% Rent Bump in Year 5 Matter Initial Rent $ 20.00 Initial Rent $ 20.00 Initial Rent $ 20.00 Rent Bump(s) 3% annually Rent Bump(s) 2% annually Rent Bump(s) 10% in Year 6 Term 10 years Term 10 years Term 10
Slide 15: Residential Portfolio
Residential Portfolio MAXIMIZING REAL ESTATE VALUE Assembly Row 947 units Existing as of 1Q231 Hoboken BOSTON 129 units Total Units 2,982 NEW YORK Darien Commons CHICAGO 123 units delivered Leased 96.4% PHILADELPHIA Santana Row SILICON VALLEY 662 units WASHINGTON, DC Comparable as of 1Q23 SOUTHERN C
Slide 16: Mixed-Use Office Portfolio
Mixed-Use Office Portfolio MAXIMIZING REAL ESTATE VALUE Existing Portfolio Total SF 1.8 million SF % of Total ABR 9% Leased (as of 12/31/22) 97% 1.8 million SF of amenitized Class A office space in our mixed- use portfolio WAVG Lease Term1 8 years • Representative of 9% of total ABR Ability to r
Slide 17: Mixed-Use Office Portfolio
Mixed-Use Office Portfolio Leading Office Roster MAXIMIZING REAL ESTATE VALUE Assembly Row 355k SF Bethesda Row BOSTON 183k SF NEW YORK Pike & Rose CHICAGO 266k SF PHILADELPHIA + 266k SF underway Santana Row SILICON VALLEY 676k SF WASHINGTON, DC + 376k SF underway SOUTHERN CALIFORNIA CocoWalk PHOENI
Slide 18: 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 19: In-Process Strategic Redevelopment Pipeline
In-Process Strategic Redevelopment Pipeline $230 MILLION OF PROJECTS IN PROCESS 7 additional redevelopment projects ~$55 million of remaining redevelopment underway in 2023, stabilizing over the spend over the next 2 years next 2 years DARIEN COMMONS | Darien, CT HUNTINGTON | Huntington, NY 5 AD
Slide 20: 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 21: Kingstowne Towne Center
Kingstowne Towne Center RECENT ACQUISITIONS Overview Demographics* 3-MILE RADIUS Super regional shopping center Value creation through remerchandising & incremental capital investment over time Population Avg HHI 410,000 SF on 45 acres of land 124,052 $159,576 95% leased $200 million total purchase
Slide 22: The Shops at Pembroke Gardens
The Shops at Pembroke Gardens RECENT ACQUISITIONS DOWNTOWN FT. LAUDERDALE Overview Demographics* 34 MILES 3-MILE RADIUS 75 Super regional shopping center Value creation through remerchandising, $1.7M increasing rents & incremental capital Population Avg HHI MEDIAN HOME VALUE 133,259 $141,427 investm
Slide 23: Acquisition of the Chandler Portfolio
Acquisition of the Chandler Portfolio CHANDLER FESTIVAL AND CHANDLER GATEWAY DOWNTOWN Overview PHOENIX 14 MILES Demographics* Two regional community centers 3-MILE RADIUS Value creation through remerchandising shops and pads and increasing below- market rents Population Avg HHI 617,000 SF on 62 acre
Slide 24: Balance Sheet Snapshot
Balance Sheet Snapshot Credit Ratings Ample Liquidity & Financial Flexibility 1Q23 Balance Sheet Update $1.3 billion of total liquidity in cash and ~6x annualized net debt to EBITDA undrawn credit facility as of 3/31/2023 • Comfortably within the range for our S&P • $100 million of cash availabl
Slide 25: 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 26: 55 Consecutive Years of Increased Dividends
55 Consecutive Years of Increased Dividends 1 OF 44 PUBLICLY TRADED COMPANIES CONSIDERED A DIVIDEND KING 55 Year CAGR: 7% *4Q annualized dividend per share 26
Slide 27: 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 28: 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 29: Awards & Recognition
Awards & Recognition More information about our ESG program can be found in our 2022 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
Slide 30: [FEDERAL|
[FEDERAL| 1962 30
Slide 31: Appendix: Reconciliation of FFO Guidance
Appendix Reconciliation of FFO Guidance as of December 31, 2022 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 2023. Estimates do not include the impact from potential acquisitions or disposition
Slide 32: Appendix: Reconciliation of Comparable Property POI
Appendix Reconciliation of Comparable Property POI to Cash Based Comparable Property POI as of December 31, 2022 ($ in millions) Q1 2023 Q1 2022 % Change Operating Income $ 95.8 $ 86.0 Add: Depreciation and amortization 78.6 71.7 General and administrative 12.5 12.3 Gain on sale of real estate (1.7)
Slide 33: Appendix: Reconciliation of Comparable POI Guidance
Appendix Reconciliation of GAAP Based Comparable Property POI Guidance to Cash Based Comparable POI Guidance Low High GAAP Based Comparable Property POI Growth 2% 4% Less: Straight-line rent/amortization of in place leases 0% 0% Cash Based Comparable Property POI 2% 4% Less: Lease Termination Fees a
Slide 34: 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 35: ir.federalrealty.com
[FEDERAL| 1962 irfederalrealty.com
Federal Realty Investment Trust — Q1 2023 Earnings Presentation on 6ix