Federal Realty Investment Trust Q2 FY2025 earnings call

• Quarter Results: Reported FFO per share of $1.91 with beat and raise results, near-record leasing, an acquisition, and dispositions. - Acquisition Strategy: Focus on dominant, high-quality retail properties in affluent submarkets, expanding geography with inbound inquiries increasing. - Disposition Strategy: Pruning assets limiting long-term growth and selling peripheral residential/office assets. - Development Strategy: Residential development for accretion, with projects in Pennsylvania, New Jersey, and California. - Leasing: Strong leasing volume with 644,000 square feet leased, 1.5 million square feet in pipeline, and focus on best-in-class locations. - Office Leasing: Lease-up of portfolio with amenitized mixed-use at 96% leased.

Reported FFO per share was $1.91, which included $0.15 from the development of Freedom Plaza shopping center in Los Angeles. Excluding the tax credit impact, FFO was $1.76 per share. Comparable property-level operating income grew roughly 5% in the second quarter excluding tax credit. Retail leasing was very strong with 644,000 square feet leased, near an all-time quarterly record. Office leasing saw 141,000 square feet of total office leases signed for the quarter, and the amenitized mixed-use portfolio was 96% leased with a weighted average remaining lease term of 8 years.

• Raised 2025 NAREIT-defined FFO per share guidance to $7.16 to $7.26 per share. - Revised comparable POI growth to 3.25% to 4%. - Targeted occupancy to climb from 93.6% to low 94s by year-end. - Increased quarterly common dividend by $0.03 per share to $1.13 quarterly.

• Forward-looking statements may differ from actual performance. - Risk factors in financial documents such as earnings release, 10-K, etc., affect financial condition and operational results.

Q: Touch on potential acquisitions in the pipeline and cap rates?

A: Don Wood mentions acquisitions in new geographies, with cap rates in the high 6s to low 7s and IRR around 9%.

Q: Update on leasing of bankrupt tenant spaces?

A: Wendy Seher says deals will execute over next 3 quarters, with openings in fall '26 and spring '27.

Q: Environment in Washington, D.C. restaurants?

A: Wendy Seher states restaurants are resilient, with traffic up in April/May, down in June, but overall solid in July.

Q: Development pipeline yields?

A: Don Wood says development includes retail redevelopment and residential with exit cap rates lower than retail, targeting 7% and higher.