Federal Realty Investment Trust · NYSE:FRT
Federal Realty Investment Trust — Q4 2024 Earnings Presentation
41 slides from Federal Realty Investment Trust's earnings presentation, Feb 13, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation FOURTH QUARTER 2024
Slide 2: Financial Update
Financial Update
Slide 3: Full Year & 4Q 2024 Overview
Full Year & 4Q 2024 Overview FFO per share of $6.77 for the year and $1.73 for the Commercial portfolio is 94.1% occupied and quarter 96.2% leased at year-end Continued strong small shop leasing, ending the quarter at 93.6% leased, +290 Strong comparable POI growth excluding lease bps y/y te
Slide 4: 2025 Guidance
2025 Guidance Guidance Considerations Earnings per diluted share $3.00 - $3.12 NAREIT FFO per diluted share $7.10 - $7.22 FY 2025 - Items to consider which impact comparability: • +$0.14 - $0.15 benefit from revenues earned through new market tax credit • -$0.10 - $0.11 FFO impact from Santana West
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 96% 72% 27% Federal’s signed-not-occupied (SNO) pipeline represents about $41 million of incremental total rent 1 and is made up of two 1H25 2H25 1H26 components: Comparable SNO pipeline represents ~$25
Slide 7: Continued Occupancy Gains with Additional Upside
Continued Occupancy Gains with Additional Upside Record comparable leasing in 2024, 98.0% with additional occupancy growth expected 97.0% Leased Rate 20-Year High 96.7% 50 bps below 20-year high 96.0% Occupancy Rate 20-Year High 95.4% Leased 96.2% Occupancy rate expected trend 95.0% toward 95% b
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: Acquisitions
Acquisitions ~$400 MILLION OF TOTAL INVESTMENT 2024 – 2025 YTD • Acquired two assets in 2024 for a total investment of $275 million in 2024 with strong initial yields (low 7s going-in cap rates) • Acquired one asset year-to-date for a total investment of $124 million • We do not include acquisitions
Slide 11: 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 12: Del Monte Shopping Center Acquisition
Del Monte Shopping Center Acquisition
Slide 13: Del Monte Shopping Center
Del Monte Shopping Center 674,000 SF regional retail hub spanning 47 acres Market-dominant retail destination on the Monterey Peninsula 83% leased with significant lease- up potential Anchored by Whole Foods and features high-performing retailers such as Apple, Sephora, Lululemon, Pottery Ba
Slide 14: Unique-to-Market Tenancy
Unique-to-Market Tenancy Aspirational Tenant Lineup: High- performing anchors alongside sought- after, experience-driven brands Occupancy Upside: At 83% leased, opportunity to attract complementary, top-tier retailers though Federal’s deep relationships Proven Demand: Strong recent leasing to
Slide 15: Location Overview
Location Overview Prime Highway 1 Location with Regional Draw Gateway to Monterey Peninsula: 1,800 feet of Highway 1 frontage; visibility to 65,000+ vehicles/day Affluent Trade Area: $136K avg. household income (5- mile radius) Affluent leisure destination: Near Pebble Beach, Cannery Row, and
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 9 Strategic High-Barrier Markets
1st Ring Suburbs of 9 Strategic High-Barrier Markets PORTFOLIO OVERVIEW 102 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 • 102 properties include: CHICAGO NEW YORK 4 Prope
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 29% NEW YORK CHICAGO 13% 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 % • 77% Retail • 12% Residential, less on a POI basis 1.9 % • 10% Mixed-Use Office, less on a POI 2.0 % basis 1.7 % 1.5 % Mixed Use 1.5 % Office 1.2 % 1.2 % 10% 1.0 % Residential 1.0 % 0.9 % 0.9 % 0.8 % 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 4Q24* 129 units BOSTON + 45 units underway Total Units 3,104 NEW YORK CHICAGO Darien Commons Leased 95.2% 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 Total SF 1.8 million SF % of Total ABR 10% 1.8 million SF of amenitized Class A office space in our mixed- use portfolio Leased (as of 12/31/24) 97% • Representative of 10% of total ABR, less on a POI basis WAVG Lease Term2
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 456k SF PHILADELPHIA + 92k 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 4Q24 Balance Sheet Update $1.4+ billion of total liquidity in cash, credit 5.5x annualized consolidated net debt to facility and forward equity EBITDA • $1.25 billion revolving credit facility largely S&P undrawn 3.8
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: 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 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 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
Slide 38: Appendix
Appendix
Slide 39: Reconciliation of FFO Guidance
Appendix Reconciliation of FFO Guidance as of December 31, 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 2025. Full Year 2025 Guidance Range Low High Estimated net income available to commo
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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