Federal Realty Investment Trust (FRT) investor relations material

Opening remarks and company positioning

• Management emphasized differentiation through high-quality assets and long-term value creation.

• Focus remains on income growth and leveraging long-standing coastal relationships.

• Expansion into new markets is driven by post-COVID shifts in work habits and geographic migration.

• The company aims to maintain a premium product, avoiding commoditization.

Expansion and acquisition strategy

• Recent acquisitions in Kansas City and Omaha mark a strategic move into central U.S. markets.

• A major acquisition, expected to close within 60-90 days, will add nearly $0.5B in assets and 3M sq ft of retail, targeting 5%+ NOI growth over five years.

• Asset sales on the coasts fund new investments in a non-dilutive manner, capitalizing on favorable cap rate spreads.

• The company leverages coastal tenant relationships to accelerate leasing and value creation in new markets.

Portfolio management and capital recycling

• Dispositions fall into three buckets: monetizing mixed-use residential, selling low/no-growth assets, and divesting mature but stable properties.

• Capital is redeployed into higher IRR opportunities, targeting 8.5-9.5% unlevered IRRs over five years.

• Asset sales are typically of properties with 200-300 bps lower growth than new acquisitions.

• The company maintains a balance between expansion and retaining strong coastal assets.