Federal Realty Investment Trust (FRT) investor relations material

Portfolio performance and growth drivers

• Properties in affluent, supply-constrained markets are delivering strong NOI growth, with Westgate and Old Town Los Gatos each projecting 14% NOI CAGR from 2025 to 2030, and Del Monte targeting 60% NOI growth from 2025 to 2030.

• Santana Row serves as a flagship, driving best practices and brand equity across the portfolio, with lessons applied to other assets for long-term value creation.

• Portfolio-wide, properties average 53% higher visits and 20% longer dwell times than peers, supporting higher tenant sales and rents.

• Strategic investments in property enhancements yield 10% average returns and 17% better rent rollovers, with 19 such projects completed.

• Ancillary income streams, including sponsorships and paid parking, are expected to grow from $30 million to $50 million by 2030.

Capital allocation and acquisition strategy

• Capital recycling targets $1.5 billion in dispositions over 3–4 years, redeploying proceeds into higher-yielding acquisitions with a 150–200 basis point yield spread.

• Acquisitions focus on dominant centers in affluent, high-density markets, with a $1.4 billion pipeline and plans to enter three to five new markets.

• Targeted acquisition IRRs are 8–10%, with development projects aiming for 10–14% IRRs and 6–7% returns on cost.

• Development pipeline includes over 2,400 entitled residential units and another 4,000 in process, with a disciplined cadence of 1–2 deliveries per year.

• Balance sheet remains strong, with net debt to EBITDA forecasted to improve and refinancing headwinds estimated at 75–125 basis points.

Financial guidance and outlook

• 2026 core FFO guidance is $7.46–$7.55 per share, representing 6.3% growth; 2027–2028 FFO growth is projected at 5–7.5% annually, with AFFO growth of 7–10%.

• Comparable NOI growth is expected at 3–4% GAAP and 3.5–4.5% cash annually for 2027–2028, driven by contractual increases, rent rollovers, and occupancy.

• Incremental development and redevelopment are projected to add $10 million in POI annually in 2027–2028, contributing 1.5% to FFO growth.

• Capital recycling and acquisitions are expected to add 1–1.5% to FFO growth, with overall FFO growth algorithmically modeled at 5–7.5%.

• Dividend growth is anticipated to continue, maintaining status as the only REIT sector dividend king.