Federal Realty Announces Pricing of $400 Million of Exchangeable Senior Notes

About this update from Federal Realty Investment Trust

NORTH BETHESDA, Md., Aug. 7, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) ("Federal Realty") announced today that on August 6, 2026, its operating partnership, Federal Realty OP LP (the "Partnership"), priced the previously announced offering (the "Offering") of $400 million aggregate principal amount of 3.500% exchangeable senior notes due 2031 (the "notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The Partnership also granted the initial purchasers of the notes an option to purchase, during a 13-day period beginning on, and including, the first date on which the notes are issued, up to an additional $60 million aggregate principal amount of notes. The Offering is expected to close on August 11, 2026, subject to customary closing conditions.The notes will be the Partnership's senior unsecured obligations and will accrue interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2027, at a rate of 3.500% per year. The notes will mature on August 15, 2031 (the "Maturity Date"), unless earlier exchanged, purchased or redeemed.Prior to the close of business on the business day immediately preceding May 15, 2031, the notes will be exchangeable at the option of holders only upon certain circumstances and during certain periods. On or after May 15, 2031, the notes will be exchangeable at the option of the holders at any time prior to the close of business on the second scheduled trading day preceding the Maturity Date. The Partnership will settle exchanges of notes by delivering cash up to the principal amount of the notes exchanged and, in respect of the remainder of the exchange value, if any, in excess thereof, cash or common shares of beneficial interest, par value $.01 per share, of Federal Realty (the "common shares"), or a combination thereof, at the election of the Partnership. The exchange rate will initially equal 7.2179 common shares per $1,000 principal amount of notes (equivalent to an exchange price of approximately $138.54 per common share and an exchange premium of approximately 17.5% based on the closing price of $117.91 per common share on August 6, 2026). The exchange rate will be subject to adjustment upon the occurrence of certain ...

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