Group 1 - Federal Realty (NYSE: FRT) has underperformed over the past year, losing nearly 8% of its value due to its premium valuation, which has limited its ability to withstand market pressures [1] - The company has a history of making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [1]

Supplemental Disclosure Quarter Ended March 31, 2025 f e d eralre alty.c o m FEDERAL REALTY INVESTMENT TRUST SUPPLEMENTAL INFORMATION March 31, 2025 TABLE OF CONTENTS | 1 | First Quarter 2025 Earnings Press Release | 3 | | --- | --- | --- | | 2 | Financial Highlights | | | | Consolidated Income Statements | 7 | | | Consolidated Balance Sheets | 8 | | | Funds From Operations / Other Supplemental Information | 9 | | | Components of Rental Income | 10 | | | Comparable Property Information | 11 | | | Market Dat ...

Core Insights - Federal Realty Investment Trust (FRT) reported a revenue of $309.15 million for the quarter ended March 2025, reflecting a 6.1% increase year-over-year and a surprise of +0.72% over the Zacks Consensus Estimate of $306.93 million [1] - The earnings per share (EPS) for the quarter was $1.70, significantly higher than the $0.66 reported in the same quarter last year, with an EPS surprise of +0.59% compared to the consensus estimate of $1.69 [1] Revenue Breakdown - Rental income was reported at $302.29 million, slightly below the estimated $305.73 million, marking a year-over-year increase of +3.9% [4] - Mortgage interest income remained stable at $0.28 million, matching the estimate but showing a -1.1% decline from the previous year [4] - Percentage rents from rental income were reported at $4.46 million, below the $4.70 million estimate, representing a -6.7% change year-over-year [4] - Cost reimbursement from rental income was $63.27 million, exceeding the estimated $57.62 million, with an increase of +11.9% compared to the year-ago quarter [4] - Other rental income was reported at $12.34 million, slightly below the $12.56 million estimate, showing a +0.9% change year-over-year [4] - Net Earnings Per Share (Diluted) was $0.72, surpassing the average estimate of $0.68 from five analysts [4] Stock Performance - Over the past month, shares of Federal Realty Investment Trust have returned +5.3%, while the Zacks S&P 500 composite has seen a +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Federal Realty Investment Trust (FRT) reported quarterly funds from operations (FFO) of $1.70 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and up from $1.64 per share a year ago, representing an FFO surprise of 0.59% [1] - The company posted revenues of $309.15 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.72%, compared to year-ago revenues of $291.32 million [2] - Over the last four quarters, the company has surpassed consensus FFO estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 15% since the beginning of the year, while the S&P 500 declined by -4.3% [3] - The current consensus FFO estimate for the coming quarter is $1.73 on revenues of $308.92 million, and for the current fiscal year, it is $7.16 on $1.26 billion in revenues [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - The reported NAREIT FFO per share for Q1 2025 was $1.70, representing almost 4% growth on a per share basis [23] - Revenues increased by 6% year over year, while comparable POI grew by 2.8%, exceeding previous forecasts [23][29] - Comparable base rents rose by 3%, and total revenues were up 4% year over year [24] Business Line Data and Key Metrics Changes - The comparable portfolio ended the quarter at 95.9% leased, a 160 basis point increase from the previous year [16] - Executed 91 retail leases totaling 430,000 square feet, with a modest rent rollover of 6% for the quarter [16][17] - Office leasing showed positive momentum with 118,000 square feet of total leases signed, indicating strong demand [24] Market Data and Key Metrics Changes - Year-over-year foot traffic increased by 6% in the Washington DC MSA and 11% in Boston properties [9] - Consumer behavior remained resilient despite economic uncertainties, with no significant negative impacts observed [9][10] Company Strategy and Development Direction - The company aims to grow through acquisitions and development of retail real estate while also considering stock buybacks when advantageous [14][28] - A focus on tenant diversity and high household income areas is central to the company's strategy to mitigate risks associated with economic fluctuations [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment remains unpredictable, but they have not seen negative impacts on leasing or consumer behavior [9][10] - The company is optimistic about occupancy growth in the second half of 2025, driven by a strong pipeline of leasing activity [29] Other Important Information - The company refinanced a $600 million term loan, extending its maturity and improving liquidity to approximately $1.5 billion [25][26] - A $300 million common share repurchase program was authorized in response to market volatility [28] Q&A Session Summary Question: Clarification on the mix of deals executed in the quarter - Management indicated that the 2% rate on new lease rates was primarily due to timing, with some deals executed after the quarter ended [32][33] Question: Factors driving acceleration of same-store NOI growth - The primary driver for achieving the 3% to 4% guidance range will be continued gains in occupancy throughout the year [37] Question: Insights on concessions and tenant improvements - Elevated tenant improvements were driven by a specific deal with Lifetime Fitness, which was considered a strong addition to the portfolio [40][42] Question: Performance in the DC area - Management noted that while winter was soft, spring brought increased traffic and expected sales growth, emphasizing the resilience of the DC market [50][52] Question: Acquisition pipeline and transaction market changes - The transaction market remains strong, with ongoing deal flow, although some sellers are becoming more cautious due to economic uncertainties [66][68] Question: Impact of consumer downturn on portfolio segments - Management stated that the health of operators and occupancy ratios are more critical than specific segments when assessing potential impacts from economic downturns [86][88]

Financial Data and Key Metrics Changes - The reported NAREIT FFO per share for Q1 2025 was $1.70, representing almost 4% growth on a per share basis [22] - Revenues increased by 6% year over year, while POI rose nearly 5% [22] - Comparable POI growth, excluding prior period rents and term fees, was 2.8%, better than the mid-two percent range forecasted [22][29] - Comparable base rents increased by 3%, and total revenues were up 4% year over year [22] Business Line Data and Key Metrics Changes - The comparable portfolio ended the quarter at 95.9% leased, 160 basis points higher than the previous year [16] - Executed 91 retail leases representing 430,000 square feet for the quarter, with a rent rollover rate of 6% [16][17] - Contractual bumps for the quarter were 2.4%, indicating strong demand for retail space [18] Market Data and Key Metrics Changes - Year-over-year foot traffic increased by 6% in the Washington DC MSA, 3% at Santana Row, and 11% in Boston [8] - The company has minimal exposure to retail bankruptcies, indicating resilience in its tenant base [16] Company Strategy and Development Direction - The company aims to grow through acquisitions and development of retail real estate while also considering stock buybacks when the spread between investment opportunities widens [14][28] - The focus remains on maintaining a diverse tenant base to insulate against economic fluctuations [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that there has been no negative impact on property leasing or consumer behavior due to recent economic uncertainties [8] - The company is optimistic about continued growth, expecting occupancy levels to increase in the second half of 2025 [29] Other Important Information - The company refinanced a $600 million term loan, extending its maturity and improving liquidity to approximately $1.5 billion [25] - The board authorized a $300 million common share repurchase program in response to market volatility [28] Q&A Session Summary Question: Clarification on the mix of deals executed in the quarter - Management indicated that the 2% rate on new lease rates was primarily due to timing, with some deals executed after the quarter [32][34] Question: Factors driving acceleration of same-store NOI growth - The primary driver for achieving the 3% to 4% guidance range will be continued gains in occupancy throughout the year [37] Question: Insights on concessions and tenant improvements - Elevated tenant improvements were driven by a specific deal with Lifetime Fitness, not indicative of a broader trend [39][40] Question: Performance in the DC area - Management expressed confidence in the DC market, noting strong foot traffic and expected sales growth as spring arrived [50][54] Question: Acquisition pipeline and transaction market changes - The transaction market remains strong, with ongoing deal flow, although some sellers are cautious due to recent economic uncertainties [66] Question: Capital allocation strategy between acquisitions and share buybacks - Management emphasized the importance of long-term growth and IRR when considering capital allocation, rather than just immediate yields [78]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial statements and related disclosures for the Trust and Operating Partnership [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for both Federal Realty Investment Trust and Federal Realty OP LP for the three months ended March 31, 2025, including balance sheets, income statements, and cash flow statements [Federal Realty Investment Trust Financial Statements](index=5&type=section&id=Federal%20Realty%20Investment%20Trust%20Financial%20Statements) This subsection details the consolidated financial statements of Federal Realty Investment Trust, including its balance sheet, income statement, and cash flow statement Balance Sheet Summary (in thousands) | Financial Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $8,621,850 | $8,524,757 | | **Total Liabilities** | $5,176,245 | $5,100,327 | | **Total Shareholders' Equity** | $3,264,266 | $3,244,144 | Income Statement Summary (in thousands) | Income Statement Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $309,154 | $291,323 | | **Operating Income** | $108,133 | $100,194 | | **Net Income** | $66,578 | $58,016 | | **Net Income Attributable to the Trust** | $63,768 | $56,736 | | **EPS (Basic and Diluted)** | $0.72 | $0.66 | Cash Flow Summary (in thousands) | Cash Flow Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $179,044 | $141,160 | | **Net Cash used in Investing Activities** | ($181,766) | ($66,942) | | **Net Cash used in Financing Activities** | ($10,018) | ($229,401) | | **Decrease in Cash** | ($12,740) | ($155,183) | [Federal Realty OP LP Financial Statements](index=10&type=section&id=Federal%20Realty%20OP%20LP%20Financial%20Statements) This subsection presents the financial statements for Federal Realty OP LP, noting its consolidated relationship with the Trust - The **Operating Partnership's assets and liabilities are identical to the Parent Company's (the Trust)**, as the Trust consolidates the Operating Partnership and its only material asset is its investment in the Operating Partnership[13](index=13&type=chunk)[30](index=30&type=chunk) Income Statement Summary (in thousands) | Income Statement Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | $309,154 | $291,323 | | **Operating Income** | $108,133 | $100,194 | | **Net Income Attributable to the Partnership** | $63,768 | $56,736 | | **EPU (Basic and Diluted)** | $0.72 | $0.66 | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This subsection provides detailed notes explaining the significant accounting policies, transactions, and events impacting the consolidated financial statements - As of March 31, 2025, the company owned or had a majority interest in **103 predominantly retail real estate projects** located in major metropolitan markets across the Mid-Atlantic, Northeast, California, and South Florida[38](index=38&type=chunk) - On February 25, 2025, the company acquired the fee interest in Del Monte Shopping Center in Monterey, California for **$123.5 million**[48](index=48&type=chunk) - On March 20, 2025, the company amended and restated its **$600.0 million unsecured term loan**, extending the maturity date to March 20, 2028, with two optional one-year extensions[50](index=50&type=chunk) - In January 2024, the Operating Partnership issued **$485.0 million of 3.25% Exchangeable Senior Notes due 2029**, entering into capped call transactions to reduce potential dilution with a cap price of approximately **$143.26 per share**[53](index=53&type=chunk)[57](index=57&type=chunk) - On April 10, 2025, the Board of Trustees approved a new common share repurchase program, authorizing the purchase of up to **$300.0 million of outstanding common shares**[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 financial performance, highlighting revenue and net income increases, operational metrics, acquisitions, financing, and the business outlook amidst macroeconomic uncertainties [Overview and Outlook](index=22&type=section&id=Overview%20and%20Outlook) This subsection provides an overview of the company's portfolio performance, long-term growth strategy, and management's perspective on macroeconomic risks and development projects - As of March 31, 2025, the company's portfolio of **103 retail real estate projects was 95.7% leased and 93.6% occupied**[78](index=78&type=chunk) - The company's long-term growth strategy focuses on comparable property portfolio growth, expansion through acquisitions, and growth from redevelopments and expansions[95](index=95&type=chunk) - Management acknowledges macroeconomic risks including inflation and high interest rates, but believes the strong demographics and infill nature of its properties provide a strategic advantage[79](index=79&type=chunk)[93](index=93&type=chunk) - Key development projects are underway, including Phase IV at Pike & Rose (**276,000 sq ft office**) and Santana West (**369,000 sq ft office**), with significant portions already leased[96](index=96&type=chunk) [Lease Rollovers](index=25&type=section&id=Lease%20Rollovers) This subsection details the company's leasing activity for the quarter, including square footage and average rental increases for comparable space leases Leasing Activity (Q1 2025) | Leasing Activity (Q1 2025) | Square Feet | Avg. Rental Increase (Cash Basis) | | :--- | :--- | :--- | | **Total Retail Leases Signed** | 430,000 | N/A | | Comparable Space Leases | 369,000 | 6% | | - New Leases | 175,000 | 2% | | - Renewals | 194,000 | 8% | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This subsection analyzes the company's financial performance for the quarter, detailing changes in revenue, expenses, and net income Financial Performance (in thousands) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total property revenue** | $309,154 | $291,323 | $17,831 | 6.1% | | **Total property expenses** | $104,371 | $95,719 | $8,652 | 9.0% | | **Property operating income** | $204,783 | $195,604 | $9,179 | 4.7% | | **Operating income** | $108,133 | $100,194 | $7,939 | 7.9% | | **Net income** | $66,578 | $58,016 | $8,562 | 14.8% | - The **$17.8 million increase in property revenue** was driven by an **$11.0 million increase from comparable properties** (due to higher occupancy and rental rates), a **$9.4 million contribution from acquisitions**, and a **$1.7 million increase from non-comparable properties**[108](index=108&type=chunk)[114](index=114&type=chunk) - The **$8.7 million increase in property expenses** was primarily due to a **$4.7 million increase at comparable properties** (higher snow removal, utilities) and a **$2.1 million increase from acquisitions**[110](index=110&type=chunk)[111](index=111&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the company's current liquidity position, available capital, debt maturities, and estimated costs for ongoing development projects - As of March 31, 2025, the company had **$109.2 million in cash and cash equivalents** and **$44.6 million outstanding on its $1.25 billion revolving credit facility**; it also has capacity to issue up to **$750.0 million in common shares** under its ATM program[124](index=124&type=chunk) - The company has **$644.6 million of debt maturing in the next twelve months**, including a **$200.0 million mortgage loan** with two one-year extension options[123](index=123&type=chunk) - Remaining costs for development and redevelopment projects in progress are estimated at **$204 million**, with the majority expected to be incurred in the next two years[125](index=125&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $179,044 | $141,160 | | Net cash used in investing activities | ($181,766) | ($66,942) | | Net cash used in financing activities | ($10,018) | ($229,401) | [Funds From Operations (FFO)](index=34&type=section&id=Funds%20From%20Operations%20%28FFO%29) This subsection provides a reconciliation of net income to Funds From Operations (FFO), a key metric for real estate investment trusts FFO Reconciliation (in thousands) | FFO Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Income (in thousands)** | $66,578 | $58,016 | | **FFO (in thousands)** | $148,172 | $138,411 | | **FFO available for common shareholders (in thousands)** | $146,476 | $136,725 | | **FFO per diluted share** | $1.70 | $1.64 | [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risk, primarily interest rate fluctuations on its debt, and provides a sensitivity analysis - The company's primary market risk is from **interest rate fluctuations on its debt**[144](index=144&type=chunk)[146](index=146&type=chunk) - As of March 31, 2025, the company had **$3.9 billion of fixed-rate debt**; a hypothetical **1.0% increase in market interest rates** would decrease the fair value of this debt by approximately **$153.0 million**[148](index=148&type=chunk) - The company had **$644.6 million of variable-rate debt outstanding**; a hypothetical **1.0% increase in market interest rates** would increase annual interest expense by approximately **$6.4 million**[149](index=149&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes to internal controls over financial reporting - Management, including the CEO and CFO, concluded that the **disclosure controls and procedures for both the Trust and the Operating Partnership were effective** as of March 31, 2025[150](index=150&type=chunk)[152](index=152&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[151](index=151&type=chunk)[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other required disclosures, including updates on risk factors, equity sales, and other miscellaneous items [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section states there have been no material changes to the risk factors previously disclosed in the company's latest annual report - There have been **no material changes to the risk factors** previously disclosed in the company's 2024 Form 10-K[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section discloses the approval of a new common share repurchase program and the redemption of operating partnership units for common shares - On April 10, 2025, the Board of Trustees approved a new common share repurchase program for up to **$300.0 million**; no shares have been repurchased under this program as of May 8, 2025[157](index=157&type=chunk) - During the three months ended March 31, 2025, the company redeemed **1,158 downREIT operating partnership units for common shares**[158](index=158&type=chunk) [Other Items (Defaults, Mine Safety, Other Info, Exhibits)](index=37&type=section&id=Other%20Items) This section confirms no defaults on senior securities, no applicable mine safety disclosures, and lists exhibits filed with the report - The company reported **no defaults upon senior securities** for the period[160](index=160&type=chunk)

FEDERAL REALTY INVESTMENT TRUST SUPPLEMENTAL INFORMATION March 31, 2025 TABLE OF CONTENTS | 1 | First Quarter 2025 Earnings Press Release | 3 | | --- | --- | --- | | 2 | Financial Highlights | | | | Consolidated Income Statements | 7 | | | Consolidated Balance Sheets | 8 | | | Funds From Operations / Other Supplemental Information | 9 | | | Components of Rental Income | 10 | | | Comparable Property Information | 11 | | | Market Data, Debt Metrics, and Senior Notes and Debentures Covenants | 12 | | 3 | Summa ...

Core Insights - Federal Realty Investment Trust reported strong financial results for Q1 2025, with net income available for common shareholders increasing to $61.8 million or $0.72 per diluted share, compared to $54.7 million or $0.66 per diluted share in Q1 2024 [3][22] - The company experienced a growth in Funds From Operations (FFO), reaching $146.5 million or $1.70 per diluted share, up from $136.7 million or $1.64 per diluted share in the same period last year [4][23] - Federal Realty's CEO expressed confidence in the company's resilience against economic cycles, highlighting strong foot traffic and a diverse tenant base in affluent markets [2] Financial Results - Net income for Q1 2025 was $61.8 million, an increase of 12.9% from $54.7 million in Q1 2024 [3] - Operating income rose to $108.1 million from $100.2 million year-over-year [1][22] - Total revenue for Q1 2025 was $309.2 million, compared to $291.3 million in Q1 2024, reflecting a year-over-year increase [22] Operational Update - The comparable portfolio occupancy rate was reported at 93.6%, up 180 basis points year-over-year, while the leased rate was 95.9%, an increase of 160 basis points [5][6] - The small shop leased rate improved to 93.5%, marking a 210 basis point increase year-over-year [6] - The company extended its $600 million unsecured term loan maturity to March 2028, enhancing its liquidity position to nearly $1.5 billion [5][14] Leasing Activity - In Q1 2025, Federal Realty signed 91 leases for a total of 429,865 square feet, with an average rent of $40.63 per square foot, representing a 6% cash basis rollover growth compared to the previous leases [8] - Comparable leases accounted for 96% of total leases signed during the quarter [8] Acquisitions - The company completed the acquisition of Del Monte Shopping Center in Monterey, California for $123.5 million on February 25, 2025 [9][5] Financing Activity - Federal Realty declared a regular quarterly cash dividend of $1.10 per common share, resulting in an indicated annual rate of $4.40 per share [10] - The company has consistently increased its quarterly dividends for 57 consecutive years, the longest record in the REIT industry [16] 2025 Guidance - The company maintained its earnings per diluted share guidance for 2025 at $3.00 to $3.12 and raised its FFO per share guidance to $7.11 to $7.23, indicating a 6% growth at the midpoint year-over-year [12]

Company Overview - Federal Realty Investment Trust (FRT) is a leading real estate investment trust (REIT) focused on retail properties, set to report its first-quarter 2025 results on May 8, after market close [1] - In the last reported quarter, FRT met the Zacks Consensus Estimate for FFO of $1.73 per share, reflecting healthy leasing activity and significant occupancy gains [2] U.S. Retail Real Estate Market - The U.S. shopping center market experienced a pullback in net absorption in Q1 2025, with a total decline of 5.9 million square feet, marking the largest single-quarter decline since Q3 2020 [4] - The national vacancy rate increased by 20 basis points to 5.5% year over year, remaining near historical lows, with minimal new construction [3][5] - Asking rents for U.S. shopping centers grew by 2.3% year over year to $24.76 per square foot in Q1 2025 [5] Factors Influencing FRT's Performance - FRT is likely to benefit from its premium retail assets located in affluent communities, particularly in major coastal markets [6] - A well-located portfolio with 80% of its centers having a grocery component is expected to aid stable revenue generation [7] - The focus on developing urban mixed-use assets is anticipated to contribute positively to revenue growth [7] Projections for FRT - FRT's leasing rate is estimated at 95.7%, down 50 basis points sequentially, while rent per square foot is projected to grow by 1.9% year over year [8] - The Zacks Consensus Estimate for quarterly revenues is $306.93 million, indicating a 5.4% increase from the year-ago period [8] - Rental income from minimum rents is projected at $207.76 million, up from $192.94 million in the prior year [9] Analyst Sentiment - The Zacks Consensus Estimate for FRT's first-quarter FFO per share has been revised downward to $1.69, suggesting a 3.1% year-over-year increase [10] - FRT currently has an Earnings ESP of -0.82% and a Zacks Rank of 4 (Sell), indicating a lack of confidence among analysts [11]