Federal Realty Investment Trust : 2024 Q3 Supplemental Disclosure

Supplemental Disclosure

Quarter Ended September 30, 2024

federalrealty.com

	FEDERAL REALTY INVESTMENT TRUST
	SUPPLEMENTAL INFORMATION
	September 30, 2024
	TABLE OF CONTENTS
1	Third Quarter 2024 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

• Summary of Debt

	Summary of Outstanding Debt	13
	Summary of Debt Maturities	14
4	Summary of Redevelopment and Expansion Opportunities	15
5	Future Redevelopment and Expansion Opportunities	16
6	2024 Transactions	17
7	Real Estate Status Report	18
8	Retail Leasing Summary	23
9	Lease Expirations	24
10	Portfolio Leased Statistics	25
11	Summary of Top 25 Tenants	26
12	Reconciliation of FFO Guidance	27
13	Glossary of Terms	28

909 Rose Avenue, Suite 200

North Bethesda, Maryland 20852

301-998-8100

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Safe Harbor Language

Certain matters discussed within this Supplemental Information may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2024, and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;
• risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment, or renovation project, and that completion of anticipated or ongoing property development, redevelopment, or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
• risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
• risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;
• risks associated with general economic conditions, including inflation and local economic conditions in our geographic markets;
• risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;
• risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and
• risks related to natural disasters, climate change and public health crises (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Supplemental Information. Except as required by law, we make no promise to update any of the forward- looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2024 and subsequent quarterly reports on Form 10-Q.

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NEWS RELEASE	www.federalrealty.com
FOR IMMEDIATE RELEASE
Investor Inquiries:	Media Inquiries:
Leah Andress Brady	Brenda Pomar
Vice President, Investor Relations	Senior Director, Corporate Communications
301.998.8265	301.998.8316
[e-mail]	[e-mail]

Federal Realty Investment Trust Announces Third Quarter 2024 Operating Results

NORTH BETHESDA, Md. (October 30, 2024) - Federal Realty Investment Trust(NYSE:FRT) today reported operating results for its third quarter ended September 30, 2024. For the three months ended September 30, 2024 and 2023, net income available for common shareholders was $0.70 per diluted share and $0.67 per diluted share, respectively. For the three months ended September 30, 2024 and 2023, operating income was $105.8 million and $100.1 million, respectively.

Highlights for the third quarter include:

• Generated funds from operations available to common shareholders (FFO) per diluted share of $1.71 for the quarter, compared to $1.65 for the third quarter of 2023.
• Signed 126 leases for 580,977 square feet of comparable retail space at a cash basis rollover growth of 14% and 26% on a straight-line basis.
• Generated comparable property operating income (POI) growth of 2.9% for the third quarter, excluding lease termination fees and prior period rents collected.
• Reported portfolio occupancy of 94.0% and a leased rate of 95.9% at quarter end, representing an increase of:
• • +90 basis points of occupancy and +60 basis points of leased rate quarter-over-quarter
  • +170 basis points of occupancy and +190 basis points of leased rate year-over-year
• Continued strong small shop leasing, ending the quarter at 93.1% leased, with an increase of +60 basis points quarter-over-quarter and +240 basis points year-over-year.
• Acquired Pinole Vista Crossing in Pinole, California, a grocery-anchored shopping center, comprising 216,000 square feet on 19 acres of land, for a purchase price of $60 million.
• Tightened and raised 2024 earnings per diluted share guidance to $3.40 - $3.50 and 2024 FFO per diluted share guidance to $6.76 - $6.86.

"Federal Realty delivered another strong quarter, driven by record FFO, elevated leasing activity, and significant occupancy gains," said Donald C. Wood, Chief Executive Officer. "The demographics of our properties continue to be

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our greatest asset. Looking ahead, we are confident that Federal Realty is well-positioned for continued success, thanks to our exposure to affluent and resilient shoppers who frequent our best-in-class properties."

Financial Results

Net Income

For the third quarter 2024, net income available for common shareholders was $58.9 million and earnings per diluted share was $0.70 versus $55.0 million and $0.67, respectively, for the third quarter 2023.

FFO

For the third quarter 2024, FFO was $144.6 million, or $1.71 per diluted share, compared to $135.3 million, or $1.65 per diluted share for the third quarter 2023.

FFO is a non-GAAP supplemental earnings measure which the trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.

Operational Update

Occupancy

As of September 30, 2024, the portfolio was 94.0% occupied, an increase of 90 basis points quarter-over-quarter and 170 basis points year-over-year. The portfolio was 95.9% leased, an increase of 60 basis points quarter-over-quarter and 190 basis points year-over-year.

Small shop leased rate was 93.1% as of September 30, 2024, an increase of 60 basis points quarter-over-quarter and 240 basis points year-over-year.

The anchor tenant leased rate was 97.3%, reflecting an increase of 60 basis points quarter-over-quarter and 150 basis points year-over-year.

Additionally, residential properties were 97.5% leased as of September 30, 2024.

Leasing Activity

During the third quarter 2024, Federal Realty signed 129 leases for 592,527 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 126 leases for 580,977 square feet at an average rent of $34.94 per square foot compared to the average contractual rent of $30.51 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 14%, 26% on a straight-line basis. Comparable leases represented 98% of total comparable and non- comparable retail leases signed during the third quarter 2024.

Transaction Activity

• July 31, 2024 - Acquired Pinole Vista Crossing, a dominant 216,000-square-foot,19-acre regional open-airgrocery-anchored community center located along I-80 in Pinole, CA, 13 miles north of Federal Realty's East

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Bay Bridge Shopping Center, for $60 million, expanding the company's presence in Northern California's East Bay sub-market.

Regular Quarterly Dividends

Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.10 per common share, resulting in an indicated annual rate of $4.40 per common share. The regular common dividend will be payable on January 15, 2025 to common shareholders of record as of January 2, 2025.

Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on January 15, 2025 to shareholders of record as of January 2, 2025.

2024 Guidance

Federal Realty has updated its 2024 guidance, as summarized in the table below:

Full Year 2024 Guidance	Revised Guidance	Prior Guidance
2024	Earnings per diluted share	$3.40 to $3.50	$3.33 to $3.51
2024	FFO per diluted share	$6.76 to $6.86	$6.70 to $6.88

Conference Call Information

Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its third quarter 2024 earnings conference call, which is scheduled for Wednesday, October 30, 2024 at 5:00 PM ET. To participate, please call 1-844-826-3035 or 1-412-317-5195 five to ten minutes prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through November 13, 2024 by dialing 1-844-512-2921 or 1-412-317-6671; Passcode: 10192360.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-qualityretail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,500 tenants, in 27 million commercial square feet, and approximately 3,100 residential units.

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Federal Realty has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

Safe Harbor Language

Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2024 and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;
• risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment, or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
• risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
• risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;
• risks associated with general economic conditions, including inflation and local economic conditions in our geographic markets;
• risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;
• risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and
• risks related to natural disasters, climate change and public health crises (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2024 and subsequent quarterly reports on Form 10-Q.

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Federal Realty Investment Trust

Consolidated Income Statements

September 30, 2024

		Three Months Ended			Nine Months Ended
		September 30,			September 30,
		2024			2023			2024			2023
		(in thousands, except per share data)
					(unaudited)
REVENUE
Rental income	$	303,352	$	286,323	$	890,172	$	839,509
Mortgage interest income		281			281			836			833
Total revenue		303,633			286,604			891,008			840,342
EXPENSES
Rental expenses		63,898			58,595			184,448			169,410
Real estate taxes		36,053			33,045			105,402			97,992
General and administrative		10,822			13,149			34,920			37,607
Depreciation and amortization		87,028			81,731			255,481			239,342
Total operating expenses		197,801			186,520			580,251			544,351
Gain on sale of real estate		-			-			52,280			1,702
OPERATING INCOME		105,832			100,084			363,037			297,693
OTHER INCOME/(EXPENSE)
Other interest income		978			721			3,512			3,775
Interest expense		(44,237)			(42,726)			(132,242)			(124,835)
Income from partnerships		888			1,313			1,825			3,494
NET INCOME		63,461			59,392			236,132			180,127
Net income attributable to noncontrolling interests		(2,508)			(2,344)			(6,461)			(7,245)
NET INCOME ATTRIBUTABLE TO THE TRUST		60,953			57,048			229,671			172,882
Dividends on preferred shares		(2,008)			(2,008)			(6,024)			(6,024)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$	58,945	$	55,040	$	223,647	$	166,858
EARNINGS PER COMMON SHARE, BASIC AND DILUTED:
Net income available for common shareholders	$	0.70	$	0.67	$	2.68	$	2.04
Weighted average number of common shares
	83,994			81,274			83,180			81,210

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Federal Realty Investment Trust

Consolidated Balance Sheets

September 30, 2024

	September 30,		December 31,
		2024			2023
	(in thousands,	except share and
		per share data)
		(unaudited)
ASSETS
Real estate, at cost
Operating (including $1,822,143 and $2,021,622 of consolidated variable interest	$	10,355,292	$	9,932,891
entities, respectively)
Construction-in-progress (including $8,352 and $8,677 of consolidated variable interest		524,707			613,296
entities, respectively)
		10,879,999			10,546,187
Less accumulated depreciation and amortization (including $414,128 and $416,663 of		(3,115,910)			(2,963,519)
consolidated variable interest entities, respectively)
Net real estate		7,764,089			7,582,668
Cash and cash equivalents		97,023			250,825
Accounts and notes receivable, net		206,513			201,733
Mortgage notes receivable, net		9,157			9,196
Investment in partnerships		33,008			34,870
Operating lease right of use assets, net		86,415			86,993
Finance lease right of use assets, net		6,685			6,850
Prepaid expenses and other assets		276,328			263,377
TOTAL ASSETS	$	8,479,218		$	8,436,512
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable, net (including $187,311 and $189,286 of consolidated variable	$	515,012	$	516,936
interest entities, respectively)
Notes payable, net		601,307			601,945
Senior notes and debentures, net		3,356,298			3,480,296
Accounts payable and accrued expenses		201,066			174,714
Dividends payable		95,849			92,634
Security deposits payable		30,284			30,482
Operating lease liabilities		75,409			75,870
Finance lease liabilities		12,754			12,670
Other liabilities and deferred credits		224,693			225,443
Total liabilities		5,112,672			5,210,990
Commitments and contingencies		180,946			183,363
Redeemable noncontrolling interests
Shareholders' equity
Preferred shares, authorized 15,000,000 shares, $.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation		150,000			150,000
preference $25,000 per share), 6,000 shares issued and outstanding
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation		9,822			9,822
preference $25 per share), 392,878 shares issued and outstanding
Common shares of beneficial interest, $.01 par, 200,000,000 shares authorized,
respectively, 84,952,538 and 82,775,286 shares issued and outstanding, respectively		855			833
Additional paid-in capital		4,160,451			3,959,276
Accumulated dividends in excess of net income		(1,211,833)			(1,160,474)
Accumulated other comprehensive income		2,172			4,052
Total shareholders' equity of the Trust		3,111,467			2,963,509
Noncontrolling interests		74,133			78,650
Total shareholders' equity		3,185,600			3,042,159
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	8,479,218		$	8,436,512

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Federal Realty Investment Trust

Funds From Operations / Other Supplemental Information

September 30, 2024

		Three Months Ended			Nine Months Ended
		September 30,			September 30,
		2024			2023			2024				2023
		(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO) (1)
Net income	$	63,461	$	59,392	$	236,132			$	180,127
Net income attributable to noncontrolling interests		(2,508)			(2,344)			(6,461)				(7,245)
Gain on sale of real estate		-			-			(52,280)				(1,702)
Depreciation and amortization of real estate assets		76,581			71,802			225,676				212,792
Amortization of initial direct costs of leases		8,757			8,116			24,673				23,468
Funds from operations		146,291			136,966			427,740				407,440
Dividends on preferred shares (2)		(1,875)			(1,875)			(5,625)				(5,625)
Income attributable to downREIT operating partnership units		688			693			2,068				2,074
Income attributable to unvested shares		(506)			(494)			(1,524)				(1,481)
FFO	$	144,598	$	135,290	$	422,659			$	402,408
Weighted average number of common shares, diluted (2)(3)
	84,714			82,004			83,904				81,942
FFO per diluted share (3)	$	1.71	$	1.65	$	5.04			$	4.91
Dividends and Payout Ratios
Regular common dividends declared	$	93,442	$	88,958	$	275,006			$	265,022
Dividend payout ratio as a percentage of FFO		65 %			66 %			65%				66%
Summary of Capital Expenditures
Non-maintenance capital expenditures
Development, redevelopment and expansions	$	39,563	$	56,514	$	108,398			$	161,928
Tenant improvements and incentives		16,744			16,965			64,438				55,383
Total non-maintenance capital expenditures		56,307			73,479			172,836				217,311
Maintenance capital expenditures		5,670			5,034			13,530				13,715
Total capital expenditures	$	61,977	$	78,513	$	186,366			$	231,026
Other Information
Leasing costs	$	4,150	$	7,071	$	17,235			$	16,624
Share-based compensation expense (non-cash)	$	3,514	$	3,386	$	11,153			$	10,831
Noncontrolling Interests Supplemental Information (4)
Property operating income (1)	$	3,647	$	3,641	$	10,024			$	11,158
Depreciation and amortization		(1,667)			(1,827)			(5,146)				(5,496)
Interest expense		(161)			(163)			(485)				(491)
Net income	$	1,819		$	1,651		$	4,393			$	5,171

Notes:

1. See Glossary of Terms.
2. For the three and nine months ended September 30, 2024 and 2023, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average number of common shares, diluted."
3. The weighted average common shares used to compute FFO per diluted common share includes downREIT operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted share, but is anti-dilutive for the computation of dilutive EPS for the three and nine months ended September 30, 2024 and 2023.
4. Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to downREIT operating partnership units."

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