Federal Realty Investment Trust · NYSE:FRT
Federal Realty Investment Trust — Q2 2020 Earnings Presentation
22 slides from Federal Realty Investment Trust's earnings presentation, Aug 6, 2020
Slide 1: Investor Presentation & Business Update, Second Quarter 2020
Investor Presentation & Business Update SECOND QUARTER 2020
Slide 2: Federal Realty Investment Trust
Federal Realty Investment Trust NYSE: FRT • Fully integrated US retail real estate based Strategically selected 1st ring suburbs of 8 major metropolitan markets company focused on risk adjusted capital allocation • Own, manage and re/develop urban, mixed- use properties and high-quality open air BOS
Slide 3: Investment Highlights
Investment Highlights FEDERAL REALTY INVESTMENT TRUST 1/ 1st Ring 2/ 3/ Assembly Row Somerville, MA Suburbs Santana Row San Jose, CA Pike & Rose N. Bethesda, MD Open air properties located in drivable first- Diverse income stream by market, region, De-risked development pipeline of new ring suburbs
Slide 4: 1st Ring Suburbs of 8 Strategic Metropolitan Markets
1st Ring Suburbs of 8 Strategic Metropolitan Markets PORTFOLIO OVERVIEW 104 open-air properties located in 1st ring suburbs of 8 major metropolitan BOSTON markets Regional Office Drivable markets with public CHICAGO 8 Properties NEW YORK transit access SILICON VALLEY 4 Properties 15 Properties R
Slide 5: Tenant Demand Drivers
Tenant Demand Drivers Open Air Format A Reliable Partner to Our Tenants Innovative Thinking Flexible format Reputation of being a well-capitalized partner to “The Pick-Up” concept rolled out across our our tenants – more important now than ever portfolio with the long-term vision of being a
Slide 6: Diversified Income Stream
Diversified Income Stream Percent of 2019 POI by market(1) Percent of 2019 POI by format BOSTON 9% of POI CHICAGO NEW YORK 13% of POI SILICON 2% of POI 35% 24% VALLEY PHILADELPHIA 16% of POI WASHINGTON, DC 7% of POI Mixed Use/Urban Grocery-Anchored Maryland 22% of POI Santana Row Wildwood Shopping C
Slide 7: Diversified Income Stream: Tenant Diversification
Diversified Income Stream TENANT DIVERSIFICATION By category(1) By tenant • 21% of ABR comes from office & residential • No retail tenant greater than 2.6% of ABR • 24% of ABR comes from essential retail • Top 25 tenants only account for 28% of ABR • 15% of ABR comes from restaurants • ~2,900 total
Slide 8: COVID-19 Operating Update
COVID-19 Operating Update Open & Operating All 104 of our shopping centers have remained open and operating throughout the COVID-19 pandemic Q1 Earnings NAREIT Q2 Earnings May 1 June 1 July 31(2) % of Tenants Open & Operating(1) 47% → 54% → 92% Collections We continue to see improved collections
Slide 9: COVID-19 Operating Update: 2Q 2020 Collection Rates by Category
COVID-19 Operating Update 2Q 2020 COLLECTION RATES BY CATEGORY 2Q 2020 Billed Recurring Rents(1) Collected ABR Collection Rate Banks/Financial Services 4% 100% Grocery & Drug 9% 99% Residential 11% 98% Communications & Home Office 4% 97% Office 10% 96% General Merchandise 2% 94% Other Essential 6% 8
Slide 10: Portfolio Composition
Portfolio Composition COVID-19 BUSINESS UPDATE Annualized Base Rent GLA Office Office 10% 7% Residential 10% Residential 11% Anchors (>10k SF) Local Small Shop 38% (<5k SF) 7% Local Small Shop (<5k SF) 11% National/Regional Small Anchors (>10k SF) Shop (<5k SF) 56% 10% National/Regional Small Shop (
Slide 11: Mixed Use Development Pipeline
Mixed Use Development Pipeline DEMAND DRIVERS Projects located in the 1st ring suburbs of major metro markets with significant demand drivers Near job centers with continued growth Drivable markets with public transit access Established places ASSEMBLY ROW PHASE 3 PIKE & ROSE PHASE 3 ONE SAN
Slide 12: Strategic Redevelopment Pipeline
Strategic Redevelopment Pipeline 9 additional redevelopment projects underway at various stages of development, delivering over the next 3 years DARIEN – Darien, CT COCOWALK– Coconut Grove, FL FREEDOM PLAZA – Los Angeles, CA Commercial space is ~66% pre- 75,000 SF of retail, 122 apartments $98 m
Slide 13: A-Rated Balance Sheet
A -Rated Balance Sheet BALANCE SHEET SNAPSHOT Credit ratings(1) Capital structure as of 6/30/20 Ample Liquidity Net Debt to Total Market Cap 34% MOODY’S ~$2 billion of total liquidity as of 6/30 TTM Net Debt to EBITDAre(2) 6.5x A3 TTM Fixed Charge Coverage(3) 3.6x $980 million cash on hand Fixed
Slide 14: Recent Capital Markets Activity
Recent Capital Markets Activity COVID-19 UPDATE May 6, 2020 – Completed $400 million unsecured term loan to enhance liquidity at LIBOR plus 135 bps (at A- rating) which matures on May 6, 2021 and has a 1-year extension option to May 6, 2022. May 9, 2020 - Closed on $400 million of 3.50% Notes du
Slide 15: Cycle-Tested Management Team
Cycle-Tested Management Team PROVEN ABILITY TO EXECUTE Executive Leadership • Average 18+ years at Federal Realty and 25+ years of real estate experience with experience managing through difficult real estate and economic cycles. • Lean and nimble corporate structure enables management to be closer
Slide 16: 53 Consecutive Years of Increased Dividends
53 Consecutive Years of Increased Dividends 1 OF 30 PUBLICLY TRADED COMPANIES CONSIDERED A DIVIDEND KING *3Q annualized dividend per share / 16
Slide 17: Cycle-Tested Growth
Cycle-Tested Growth TRACK RECORD MATTERS Cumulative change in Nareit FFO per share since 2005 vs. large-cap, national peers Business plan and balance sheet built to manage through various FRT REG KIM WRI SITC 150% economic cycles Global Financial Crisis COVID-19 FRT, 107% History of managing thr
Slide 18: A Sustainable Mindset
A Sustainable Mindset INCREASING VALUE AND LONG-TERM SUCCESS THROUGH ESG PRACTICES Investing in the Future From the reimagining of existing properties to small facelifts, we create memorable, resilient, and immersive gathering places that support efficient operations and resonate with the community.
Slide 19: Our Response to COVID-19
Our Response to COVID-19 Supporting Our Tenants Established a dedicated senior team to serve as a point-of-contact for every tenant in our portfolio. Comprehensive marketing campaigns to promote businesses through social posts and paid ads, as well as on-site signage. Launched “The Pick-Up,” “
Slide 20: History of Strong Corporate Governance
History of Strong Corporate Governance COMMITMENT TO PRACTICES AND POLICIES THAT BEST SERVE OUR SHAREHO LDERS Don Wood Joe Vassalluzzo Gail Steinel Jon Bortz Liz Holland David Faeder Mark Ordan President & CEO of Non-executive Principal of Executive President, CEO and CEO of Abbell Managing Partner
Slide 21: Safe Harbor and Non-GAAP Information
Safe Harbor and Non-GAAP Information FEDERAL REALTY INVESTMENT TRUST Certain matters included in this presentation may be forward looking statements within the meaning of federaI securities laws. Actual future performance and results may differ materially from those included in forward looking state
Slide 22: ir.federalrealty.com
[FEDERAL| 1962 ir.federalrealty.com
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