FRT 8-K
Federal Realty Investment Trust (FRT)
8-K
2023-05-04
For: 2023-05-04
View Original
Added on
April 09, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 4, 2023
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number including area code: 301 /998-8100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Federal Realty Investment Trust | ||||||||
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| $.01 par value per share, with associated Common Share Purchase Rights | ||||||||
| of 5.00% Series C Cumulative Redeemable Preferred Stock, $.01 par value per share | ||||||||
Federal Realty OP LP | ||||||||
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| None | N/A | N/A | ||||||
| Indicate by check mark whether the registrant is an emerging growth company, as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | ||||||||
Federal Realty Investment Trust Yes | Federal Realty OP LP Yes | |||||||
| If an emerging growth company, indicate by checkmark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||
| Federal Realty Investment Trust ☐ | Federal Realty OP LP ☐ | |||||||
Item 2.02. Results of Operations and Financial Condition.
The following information is being furnished under Item 2.02-Results of Operations and Financial Condition. This information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Exchange Act, regardless of any general incorporation language in such filing.
On May 4, 2023, Federal Realty Investment Trust issued supplemental data pertaining to its operations, as well as a press release, to report its financial results for the quarter ended March 31, 2023. The supplemental data and press release are furnished as Exhibit 99.1 hereto.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 Supplemental information at March 31, 2023 (including press release dated May 4, 2023)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| FEDERAL REALTY INVESTMENT TRUST | |||||||||||
| FEDERAL REALTY OP LP | |||||||||||
| Date: | May 4, 2023 | /s/ Daniel Guglielmone | |||||||||
| Daniel Guglielmone | |||||||||||
| Executive Vice President- | |||||||||||
| Chief Financial Officer and Treasurer | |||||||||||
EXHIBIT INDEX
| Exhibit Number | Description | |||||||
Supplemental Information at March 31, 2023 | ||||||||
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document) | |||||||
| FEDERAL REALTY INVESTMENT TRUST | |||||||||||
| SUPPLEMENTAL INFORMATION | |||||||||||
| March 31, 2023 | |||||||||||
| TABLE OF CONTENTS | |||||||||||
| 1 | First Quarter 2023 Earnings Press Release | ||||||||||
| 2 | Financial Highlights | ||||||||||
| Consolidated Income Statements | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| Funds From Operations / Other Supplemental Information | |||||||||||
| Components of Rental Income | |||||||||||
| Comparable Property Information | |||||||||||
| Market Data and Leverage and Liquidity Ratios | |||||||||||
| 3 | Summary of Debt | ||||||||||
| Summary of Outstanding Debt | |||||||||||
| Summary of Debt Maturities | |||||||||||
| 4 | Summary of Redevelopment and Expansion Opportunities | ||||||||||
| 5 | Future Redevelopment and Expansion Opportunities | ||||||||||
| 6 | Property Acquisition, Disposition, & Other Transaction | ||||||||||
| 7 | Real Estate Status Report | ||||||||||
| 8 | Retail Leasing Summary | ||||||||||
| 9 | Lease Expirations | ||||||||||
| 10 | Portfolio Leased Statistics | ||||||||||
| 11 | Summary of Top 25 Tenants | ||||||||||
| 12 | Reconciliation of FFO Guidance | ||||||||||
| 13 | Glossary of Terms | ||||||||||
| 909 Rose Avenue, Suite 200 | |||||||||||
| North Bethesda, Maryland 20852 | |||||||||||
| 301-998-8100 | |||||||||||
1
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 8, 2023, 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 8, 2023.
2
| NEWS RELEASE | www.federalrealty.com | ||||
FOR IMMEDIATE RELEASE | |||||
| Investor Inquiries: | Media Inquiries: | ||||
| Leah Andress Brady | Brenda Pomar | ||||
| Vice President, Investor Relations | Director, Corporate Communications | ||||
| 301.998.8265 | 301.998.8316 | ||||
| [email protected] | [email protected] | ||||
Federal Realty Investment Trust Announces First Quarter 2023 Operating Results
NORTH BETHESDA, Md. (May 4, 2023) - Federal Realty Investment Trust (NYSE:FRT) today reported operating results for its first quarter ended March 31, 2023. For the three months ended March 31, 2023 and 2022, net income available for common shareholders was $0.65 per diluted share and $0.63 per diluted share, respectively. For the three months ended March 31, 2023 and 2022, operating income was $95.8 million and $86.0 million, respectively.
Highlights for the first quarter and subsequent to quarter-end include:
•Generated funds from operations available to common shareholders (FFO) per diluted share of $1.59 for the quarter, compared to $1.50 for the first quarter 2022, an increase of 6% year-over-year.
•Generated comparable property operating income (POI) growth of 3.6% for the first quarter.
•Continued robust levels of leasing with 101 signed leases for 504,502 square feet of comparable space in the first quarter at a cash basis rollover of 11%, the second consecutive quarter of double-digit cash basis rollover.
•Federal Realty’s portfolio was 92.6% occupied and 94.2% leased, representing year-over-year increases of 140 basis points and 50 basis points, respectively.
•Subsequent to quarter end, issued, as a green bond, $350.0 million of fixed rate senior unsecured notes that mature on May 1, 2028 and bear interest at 5.375%. The notes were offered at 99.590% of the principal amount with a yield to maturity of 5.468%.
“Strong start to 2023, the strongest first quarter in Federal Realty’s 60-year history,” said Donald C. Wood, Federal Realty’s Chief Executive Officer. “Leasing volume has remained strong exceeding pre-pandemic levels by 20 – 30%. The retail demand for the product that Federal Realty offers is in lock step with what today’s consumers and retailers demand in the affluent first ring suburbs of major metropolitan areas in which we operate.”
Financial Results
Net Income
For the first quarter 2023, net income available for common shareholders was $53.3 million and earnings per diluted share was $0.65 versus $50.0 million and $0.63, respectively, for the first quarter 2022.
3
FFO
For the first quarter 2023, FFO was $130.3 million, or $1.59 per diluted share, compared to $119.1 million, or $1.50 per diluted share for the first quarter 2022.
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
The portfolio was 92.6% occupied as of March 31, 2023, an increase of 140 basis points year-over-year. The portfolio was 94.2% leased as of March 31, 2023, an increase of 50 basis points year-over-year.
Additionally, our comparable residential properties were 96.9% leased as of March 31, 2023.
Leasing Activity
During the first quarter 2023, Federal Realty signed 107 leases for 524,286 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 101 leases for 504,502 square feet at an average rent of $34.72 per square foot compared to the average contractual rent of $31.20 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 11%, 24% on a straight-line basis.
Transaction Activity
During the first quarter, Federal Realty acquired the remaining portions of Huntington Square in East Northport, New York, for $35.5 million. The acquisition included a 168,000 square foot parcel and the entire fee interest of the property giving us full control of the entirety of this 243,000 square foot property located in the heart of Suffolk County’s retail corridor.
In the first quarter, Federal Realty sold one retail property for a total sales price of $13.2 million.
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.08 per common share, resulting in an indicated annual rate of $4.32 per common share. The regular common dividend will be payable on July 17, 2023 to common shareholders of record as of June 22, 2023.
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 July 17, 2023 to shareholders of record as of July 3, 2023.
4
Guidance
Federal Realty maintained its 2023 guidance for earnings per diluted share of $2.59 to $2.79 and 2023 FFO per diluted share of $6.38 to $6.58.
Conference Call Information
Federal Realty’s management team will present an in-depth discussion of Federal Realty’s operating performance on its first quarter 2023 earnings conference call, which is scheduled for Thursday, May 4, 2023 at 5:00 PM ET. To participate, please call 1-844-826-3035 five to ten minutes prior to the call start time and use the passcode 8664992 (required). 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 May 25, 2023 by dialing 1-844-512-2921; Passcode: 10177310.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. 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 3,200 tenants, in 26 million square feet, and approximately 3,100 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 55 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 8, 2023, 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
5
•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 8, 2023.
6
| Federal Realty Investment Trust | |||||||||||
| Consolidated Income Statements | |||||||||||
| March 31, 2023 | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| (in thousands, except per share data) | |||||||||||
| (unaudited) | |||||||||||
| REVENUE | |||||||||||
| Rental income | $ | 272,798 | $ | 256,507 | |||||||
| Mortgage interest income | 261 | 264 | |||||||||
| Total revenue | 273,059 | 256,771 | |||||||||
| EXPENSES | |||||||||||
| Rental expenses | 55,205 | 56,211 | |||||||||
| Real estate taxes | 32,566 | 30,560 | |||||||||
| General and administrative | 12,545 | 12,342 | |||||||||
| Depreciation and amortization | 78,637 | 71,674 | |||||||||
| Total operating expenses | 178,953 | 170,787 | |||||||||
| Gain on sale of real estate | 1,702 | — | |||||||||
| OPERATING INCOME | 95,808 | 85,984 | |||||||||
| OTHER INCOME/(EXPENSE) | |||||||||||
| Other interest income | 632 | 120 | |||||||||
| Interest expense | (39,225) | (31,573) | |||||||||
| Income from partnerships | 516 | 197 | |||||||||
| NET INCOME | 57,731 | 54,728 | |||||||||
| Net income attributable to noncontrolling interests | (2,396) | (2,744) | |||||||||
| NET INCOME ATTRIBUTABLE TO THE TRUST | 55,335 | 51,984 | |||||||||
| Dividends on preferred shares | (2,008) | (2,010) | |||||||||
| NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ | 53,327 | $ | 49,974 | |||||||
| EARNINGS PER COMMON SHARE, BASIC: | |||||||||||
| Net income available for common shareholders | $ | 0.65 | $ | 0.63 | |||||||
| Weighted average number of common shares | 81,141 | 78,446 | |||||||||
| EARNINGS PER COMMON SHARE, DILUTED: | |||||||||||
| Net income available for common shareholders | $ | 0.65 | $ | 0.63 | |||||||
| Weighted average number of common shares | 81,141 | 78,543 | |||||||||
7
| Federal Realty Investment Trust | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| March 31, 2023 | |||||||||||
| March 31, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| (in thousands, except share and per share data) | |||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Real estate, at cost | |||||||||||
Operating (including $2,002,163 and $1,997,583 of consolidated variable interest entities, respectively) | $ | 9,532,332 | $ | 9,441,945 | |||||||
Construction-in-progress (including $12,174 and $8,477 of consolidated variable interest entities, respectively) | 664,184 | 662,554 | |||||||||
| 10,196,516 | 10,104,499 | ||||||||||
Less accumulated depreciation and amortization (including $376,441 and $362,921 of consolidated variable interest entities, respectively) | (2,771,150) | (2,715,817) | |||||||||
| Net real estate | 7,425,366 | 7,388,682 | |||||||||
| Cash and cash equivalents | 99,449 | 85,558 | |||||||||
| Accounts and notes receivable, net | 200,512 | 197,648 | |||||||||
| Mortgage notes receivable, net | 9,443 | 9,456 | |||||||||
| Investment in partnerships | 143,464 | 145,205 | |||||||||
| Operating lease right of use assets, net | 88,831 | 94,569 | |||||||||
| Finance lease right of use assets | 45,179 | 45,467 | |||||||||
| Prepaid expenses and other assets | 257,050 | 267,406 | |||||||||
| TOTAL ASSETS | $ | 8,269,294 | $ | 8,233,991 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
Mortgages payable, net (including $191,193 and $191,827 of consolidated variable interest entities, respectively) | $ | 319,910 | $ | 320,615 | |||||||
| Notes payable, net | 661,391 | 601,077 | |||||||||
| Senior notes and debentures, net | 3,408,104 | 3,407,701 | |||||||||
| Accounts payable and accrued expenses | 196,092 | 190,340 | |||||||||
| Dividends payable | 90,436 | 90,263 | |||||||||
| Security deposits payable | 28,351 | 28,508 | |||||||||
| Operating lease liabilities | 77,442 | 77,743 | |||||||||
| Finance lease liabilities | 67,658 | 67,660 | |||||||||
| Other liabilities and deferred credits | 237,316 | 237,699 | |||||||||
| Total liabilities | 5,086,700 | 5,021,606 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interests | 178,353 | 178,370 | |||||||||
| Shareholders’ equity | |||||||||||
Preferred shares, authorized 15,000,000 shares, $0.01 par: | |||||||||||
| 5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding | 150,000 | 150,000 | |||||||||
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 392,878 shares issued and outstanding | 9,822 | 9,822 | |||||||||
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 81,511,204 and 81,342,959 shares issued and outstanding, respectively | 820 | 818 | |||||||||
| Additional paid-in capital | 3,828,930 | 3,821,801 | |||||||||
| Accumulated dividends in excess of net income | (1,068,892) | (1,034,186) | |||||||||
| Accumulated other comprehensive income | 4,546 | 5,757 | |||||||||
| Total shareholders’ equity of the Trust | 2,925,226 | 2,954,012 | |||||||||
| Noncontrolling interests | 79,015 | 80,003 | |||||||||
| Total shareholders’ equity | 3,004,241 | 3,034,015 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 8,269,294 | $ | 8,233,991 | |||||||
8
| Federal Realty Investment Trust | ||||||||||||||
| Funds From Operations / Other Supplemental Information | ||||||||||||||
| March 31, 2023 | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||
| Funds from Operations available for common shareholders (FFO) (1) | ||||||||||||||
| Net income | $ | 57,731 | $ | 54,728 | ||||||||||
| Net income attributable to noncontrolling interests | (2,396) | (2,744) | ||||||||||||
| Gain on sale of real estate | (1,702) | — | ||||||||||||
| Depreciation and amortization of real estate assets | 70,504 | 62,977 | ||||||||||||
| Amortization of initial direct costs of leases | 7,785 | 5,793 | ||||||||||||
| Funds from operations | 131,922 | 120,754 | ||||||||||||
| Dividends on preferred shares (2) | (1,875) | (1,875) | ||||||||||||
| Income attributable to downREIT operating partnership units | 693 | 706 | ||||||||||||
| Income attributable to unvested shares | (482) | (436) | ||||||||||||
| FFO | $ | 130,258 | $ | 119,149 | ||||||||||
| Weighted average number of common shares, diluted (2)(3) | 81,877 | 79,299 | ||||||||||||
| FFO per diluted share (3) | $ | 1.59 | $ | 1.50 | ||||||||||
| Dividends and Payout Ratios | ||||||||||||||
| Regular common dividends declared | $ | 88,033 | $ | 84,196 | ||||||||||
| Dividend payout ratio as a percentage of FFO | 68% | 71% | ||||||||||||
| Summary of Capital Expenditures | ||||||||||||||
| Non-maintenance capital expenditures | ||||||||||||||
| Development, redevelopment and expansions | $ | 55,854 | $ | 71,643 | ||||||||||
| Tenant improvements and incentives | 19,995 | 16,969 | ||||||||||||
| Total non-maintenance capital expenditures | 75,849 | 88,612 | ||||||||||||
| Maintenance capital expenditures | 4,277 | 5,423 | ||||||||||||
| Total capital expenditures | $ | 80,126 | $ | 94,035 | ||||||||||
| Noncontrolling Interests Supplemental Information (4) | ||||||||||||||
| Property operating income (1) | $ | 3,691 | $ | 4,820 | ||||||||||
| Depreciation and amortization | (1,825) | (2,344) | ||||||||||||
| Interest expense | (164) | (439) | ||||||||||||
| Net income | $ | 1,702 | $ | 2,037 | ||||||||||
Notes:
(1)See Glossary of Terms.
(2)For the three months ended March 31, 2023 and 2022, 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 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 these periods.
(4)Amounts reflect the components of "net income attributable to noncontrolling interests," but excludes "income attributable to downREIT operating partnership units."
9
| Federal Realty Investment Trust | ||||||||||||||
| Components of Rental Income | ||||||||||||||
| March 31, 2023 | ||||||||||||||
| Components of Rental Income (1) | Three Months Ended | |||||||||||||
| March 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| (in thousands) | ||||||||||||||
| Minimum rents (2) | ||||||||||||||
| Commercial | $ | 181,342 | $ | 169,631 | ||||||||||
| Residential | 24,550 | 23,061 | ||||||||||||
| Cost reimbursements | 50,724 | 50,312 | ||||||||||||
| Percentage rents | 4,536 | 3,635 | ||||||||||||
| Other (3) | 12,040 | 10,034 | ||||||||||||
| Collectibility related impact (4) | (394) | (166) | ||||||||||||
| Total rental income | $ | 272,798 | $ | 256,507 | ||||||||||
Notes:
(1)All income from tenant leases is reported as a single line item called "rental income." We have provided the above supplemental information with a breakout of the contractual components of the rental income line, however, these breakouts are provided for informational purposes only and should be considered a non-GAAP presentation.
(2)Minimum rents include the following:
| Three Months Ended | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| (in millions) | |||||||||||||||||
| Straight-line rents | $ | 2.5 | $ | 5.0 | |||||||||||||
| Amortization of in-place leases | $ | 3.1 | $ | 2.8 | |||||||||||||
(3)Includes lease termination fees of $1.6 million and $1.5 million, respectively, for the three months ended March 31, 2023 and 2022.
(4)For the three months ended March 31, 2023 and 2022, our collectability related impact includes the collection of approximately $1.5 million and $2.6 million, respectively, of prior period rents which were contractually deferred or payment renegotiated specifically related to the COVID-19 pandemic.
10
| Federal Realty Investment Trust | |||||||||||||||||
| Comparable Property Information | |||||||||||||||||
| March 31, 2023 | |||||||||||||||||
| The following information is being provided for “Comparable Properties.” Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets excluded from Comparable Properties in Q1 include: Assembly Row Phase 3, CocoWalk, Darien Commons, Friendship Center, Huntington Shopping Center, Pike & Rose Phase 3, Willow Grove Shopping Center, and all properties acquired, disposed of, or deconsolidated from Q1 2022 to Q1 2023. Comparable Property property operating income ("Comparable Property POI") is a non-GAAP measure used by management in evaluating the operating performance of our properties period over period. | |||||||||||||||||
| Reconciliation of GAAP operating income to Comparable Property POI | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| (in thousands) | |||||||||||||||||
| Operating income | $ | 95,808 | $ | 85,984 | |||||||||||||
| Add: | |||||||||||||||||
| Depreciation and amortization | 78,637 | 71,674 | |||||||||||||||
| General and administrative | 12,545 | 12,342 | |||||||||||||||
| Gain on sale of real estate | (1,702) | — | |||||||||||||||
| Property operating income (POI) | 185,288 | 170,000 | |||||||||||||||
| Less: Non-comparable POI - acquisitions/dispositions | (6,998) | (1,645) | |||||||||||||||
| Less: Non-comparable POI - redevelopment, development & other | (13,134) | (8,984) | |||||||||||||||
| Comparable property POI | $ | 165,156 | $ | 159,371 | |||||||||||||
| Additional information regarding the components of Comparable Property POI | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2023 | 2022 | % Change | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Minimum rent (1) | $ | 183,667 | $ | 177,662 | |||||||||||||
| Cost reimbursements | 45,920 | 47,259 | |||||||||||||||
| Other (2) | 11,005 | 10,606 | |||||||||||||||
| Collectibility related impacts (3) | (175) | 144 | |||||||||||||||
| 240,417 | 235,671 | ||||||||||||||||
| Rental expenses | (46,390) | (48,344) | |||||||||||||||
| Real estate taxes | (28,871) | (27,956) | |||||||||||||||
| (75,261) | (76,300) | ||||||||||||||||
| Comparable property POI | $ | 165,156 | $ | 159,371 | 3.6% | ||||||||||||
| Comparable Property - Summary of Capital Expenditures (4) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| (in thousands) | |||||||||||||||||
| Redevelopment and tenant improvements and incentives | $ | 32,441 | $ | 28,092 | |||||||||||||
| Maintenance capital expenditures | 3,926 | 5,190 | |||||||||||||||
| $ | 36,367 | $ | 33,282 | ||||||||||||||
| Comparable Property - Occupancy Statistics (4) | |||||||||||||||||
| At March 31, | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| GLA - comparable commercial properties | 23,315,000 | 23,330,000 | |||||||||||||||
| Leased % - comparable commercial properties | 94.0% | 93.8% | |||||||||||||||
| Occupancy % - comparable commercial properties | 92.5% | 91.7% | |||||||||||||||
Notes:
(1)For the three months ended March 31, 2023 and 2022, amount includes straight-line rents of $1.6 million and $2.2 million and amortization of in-place leases of $2.5 million and $2.7 million, respectively.
(2)For both the three months ended March 31, 2023 and 2022, amount includes lease termination fees of $1.4 million.
(3)For the three months ended March 31, 2023 and 2022, our collectability related impact includes the collection of approximately $1.3 million and $2.4 million, respectively, of prior period rents which were contractually deferred or payment renegotiated specifically related to the COVID-19 pandemic.
(4)See page 9 for "Summary of Capital Expenditures" and page 25 for portfolio occupancy statistics for our entire portfolio.
11
| Federal Realty Investment Trust | |||||||||||||||||
| Market Data and Leverage and Liquidity Ratios | |||||||||||||||||
| March 31, 2023 | |||||||||||||||||
| March 31, | |||||||||||||||||
| 2023 | 2022 | ||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Market Data | |||||||||||||||||
| Common shares outstanding and downREIT operating partnership units (1) | 82,148 | 80,074 | |||||||||||||||
| Market price per common share | $ | 98.83 | $ | 122.07 | |||||||||||||
| Common equity market capitalization including downREIT operating partnership units | $ | 8,118,687 | $ | 9,774,633 | |||||||||||||
| Series C preferred shares outstanding | 6 | 6 | |||||||||||||||
| Liquidation price per Series C preferred share | $ | 25,000 | $ | 25,000 | |||||||||||||
| Series C preferred equity market capitalization | $ | 150,000 | $ | 150,000 | |||||||||||||
| Series 1 preferred shares outstanding (2) | 393 | 400 | |||||||||||||||
| Liquidation price per Series 1 preferred share | $ | 25.00 | $ | 25.00 | |||||||||||||
| Series 1 preferred equity market capitalization | $ | 9,825 | $ | 10,000 | |||||||||||||
| Equity market capitalization | $ | 8,278,512 | $ | 9,934,633 | |||||||||||||
| Total debt | $ | 4,389,405 | $ | 4,047,267 | |||||||||||||
| Less: cash and cash equivalents | (99,449) | (157,944) | |||||||||||||||
| Total net debt (3) | $ | 4,289,956 | $ | 3,889,323 | |||||||||||||
| Total market capitalization | $ | 12,568,468 | $ | 13,823,956 | |||||||||||||
| Leverage and Liquidity Ratios | |||||||||||||||||
| Total net debt to market capitalization at market price per common share | 34% | 28% | |||||||||||||||
| Total net debt to market capitalization at a constant common share price of $122.07 | 30% | 28% | |||||||||||||||
| Ratio of EBITDAre to combined fixed charges and preferred share dividends (4)(5) | 3.6x | 4.0x | |||||||||||||||
Notes:
(1)Amounts include 637,031 and 656,824 downREIT operating partnership units outstanding at March 31, 2023 and 2022, respectively.
(2)These shares, issued March 8, 2007, are unregistered.
(3)Total net debt includes mortgages payable, notes payable, senior notes and debentures, net of premiums/discounts and debt issuance costs and net of cash and cash equivalents from our consolidated balance sheet.
(4)EBITDAre is reconciled to net income in the Glossary of Terms.
(5)Fixed charges consist of interest on borrowed funds and finance leases (including capitalized interest), amortization of debt discount/premium and debt costs, and the portion of rent expense representing an interest factor.
12
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Summary of Outstanding Debt | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||
| As of March 31, 2023 | |||||||||||||||||||||||||||||||||||
| Stated maturity date | Stated interest rate | Balance | Weighted average effective rate (8) | ||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Mortgages Payable (1) | |||||||||||||||||||||||||||||||||||
| Secured fixed rate | |||||||||||||||||||||||||||||||||||
| Azalea | 11/1/2025 | 3.73% | $ | 40,000 | |||||||||||||||||||||||||||||||
| Bell Gardens | 8/1/2026 | 4.06% | 11,761 | ||||||||||||||||||||||||||||||||
| Plaza El Segundo | 6/5/2027 | 3.83% | 125,000 | ||||||||||||||||||||||||||||||||
| The Grove at Shrewsbury (East) | 9/1/2027 | 3.77% | 43,600 | ||||||||||||||||||||||||||||||||
| Brook 35 | 7/1/2029 | 4.65% | 11,500 | ||||||||||||||||||||||||||||||||
| Hoboken (24 Buildings) (2) | 12/15/2029 | LIBOR + 1.95% | 54,699 | ||||||||||||||||||||||||||||||||
| Various Hoboken (14 Buildings) | Various through 2029 | Various (3) | 30,626 | ||||||||||||||||||||||||||||||||
| Chelsea | 1/15/2031 | 5.36% | 4,340 | ||||||||||||||||||||||||||||||||
| Subtotal | 321,526 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (1,616) | ||||||||||||||||||||||||||||||||||
| Total mortgages payable, net | 319,910 | 4.01% | |||||||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||||||||
| Term Loan (4) | 4/16/2024 | SOFR + 0.85% | 600,000 | ||||||||||||||||||||||||||||||||
| Revolving Credit Facility (4)(5) | 4/5/2027 | SOFR + 0.775% | 60,000 | ||||||||||||||||||||||||||||||||
| Various | Various through 2059 | Various (6) | 2,913 | ||||||||||||||||||||||||||||||||
| Subtotal | 662,913 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs | (1,522) | ||||||||||||||||||||||||||||||||||
| Total notes payable, net | 661,391 | 5.89% | (9) | ||||||||||||||||||||||||||||||||
| Senior notes and debentures | |||||||||||||||||||||||||||||||||||
| Unsecured fixed rate | |||||||||||||||||||||||||||||||||||
| 2.75% notes | 6/1/2023 | 2.75% | 275,000 | ||||||||||||||||||||||||||||||||
| 3.95% notes | 1/15/2024 | 3.95% | 600,000 | ||||||||||||||||||||||||||||||||
| 1.25% notes | 2/15/2026 | 1.25% | 400,000 | ||||||||||||||||||||||||||||||||
| 7.48% debentures | 8/15/2026 | 7.48% | 29,200 | ||||||||||||||||||||||||||||||||
| 3.25% notes | 7/15/2027 | 3.25% | 475,000 | ||||||||||||||||||||||||||||||||
| 6.82% medium term notes | 8/1/2027 | 6.82% | 40,000 | ||||||||||||||||||||||||||||||||
| 3.20% notes | 6/15/2029 | 3.20% | 400,000 | ||||||||||||||||||||||||||||||||
| 3.50% notes | 6/1/2030 | 3.50% | 400,000 | ||||||||||||||||||||||||||||||||
| 4.50% notes | 12/1/2044 | 4.50% | 550,000 | ||||||||||||||||||||||||||||||||
| 3.625% notes | 8/1/2046 | 3.63% | 250,000 | ||||||||||||||||||||||||||||||||
| Subtotal | 3,419,200 | ||||||||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (11,096) | ||||||||||||||||||||||||||||||||||
| Total senior notes and debentures, net | 3,408,104 | 3.49% | |||||||||||||||||||||||||||||||||
| Total debt, net | $ | 4,389,405 | (7) | ||||||||||||||||||||||||||||||||
| Total fixed rate debt, net | $ | 3,730,890 | 85% | 3.54% | |||||||||||||||||||||||||||||||
| Total variable rate debt, net | 658,515 | 15% | 5.88% | (9) | |||||||||||||||||||||||||||||||
| Total debt, net | $ | 4,389,405 | 100% | 3.89% | (9) | ||||||||||||||||||||||||||||||
Notes:
(1)Mortgages payable does not include our share of debt on our unconsolidated real estate partnerships. At March 31, 2023, our share of unconsolidated debt was approximately $61.9 million. At March 31, 2023, our noncontrolling interests' share of mortgages payable was $15.6 million.
(2)We have two interest rate swap agreements that fix the interest rate on the mortgage loan at 3.67%.
(3)The interest rates on these mortgages range from 3.91% to 5.00%.
(4)Our revolving credit facility SOFR loans bear interest at Daily Simple SOFR or Term SOFR and our term loan bears interest at Term SOFR as defined in the respective credit agreements, plus 0.10%, plus a spread, based on our current credit rating.
(5)The maximum amount drawn under our $1.25 billion revolving credit facility during the three months ended March 31, 2023 was $80.5 million. The weighted average interest rate on borrowings under our credit facility, before amortization of debt fees, for the three months ended March 31, 2023 was 5.4%.
(6)The interest rates on these notes payable range from 3.00% to 11.31%.
(7)The weighted average remaining term on our mortgages payable, notes payable, and senior notes and debentures is approximately 7 years.
(8)The weighted average effective interest rate includes the amortization of any debt issuance costs and discounts and premiums, if applicable, except as described in Note 9.
(9)The weighted average effective interest rate excludes $0.9 million in quarterly financing fees and quarterly debt fee amortization on our revolving credit facility.
13
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||
| Summary of Debt Maturities | ||||||||||||||||||||||||||||||||
| March 31, 2023 | ||||||||||||||||||||||||||||||||
| Year | Scheduled Amortization | Maturities | Total | Percent of Debt Maturing | Weighted Average Rate (4) | |||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| 2023 | $ | 3,058 | $ | 275,000 | $ | 278,058 | 6.3 | % | 3.0 | % | ||||||||||||||||||||||
| 2024 | 3,970 | 600,000 | 603,970 | 13.7 | % | 3.7 | % | |||||||||||||||||||||||||
| 2025 | 3,750 | 44,298 | 48,048 | 1.1 | % | 3.9 | % | |||||||||||||||||||||||||
| 2026 | 3,066 | 1,052,450 | (1) | 1,055,516 | 24.0 | % | 4.3 | % | ||||||||||||||||||||||||
| 2027 | 2,633 | 690,682 | 693,315 | 15.7 | % | 3.8 | % | |||||||||||||||||||||||||
| 2028 | 2,509 | 60,000 | (2) | 62,509 | 1.4 | % | 5.7 | % | (5) | |||||||||||||||||||||||
| 2029 | 2,327 | 458,105 | 460,432 | 10.5 | % | 3.3 | % | |||||||||||||||||||||||||
| 2030 | 681 | 400,000 | 400,681 | 9.1 | % | 3.7 | % | |||||||||||||||||||||||||
| 2031 | 110 | — | 110 | — | % | 6.0 | % | |||||||||||||||||||||||||
| 2032 | — | — | — | — | % | — | % | |||||||||||||||||||||||||
| Thereafter | — | 801,000 | 801,000 | 18.2 | % | 4.2 | % | |||||||||||||||||||||||||
| Total | $ | 22,104 | $ | 4,381,535 | $ | 4,403,639 | (3) | 100.0 | % | |||||||||||||||||||||||
Notes:
The above table assumes all extension options are exercised.
(1)Our $600.0 million term loan matures on April 16, 2024, plus two one-year extensions at our option to April 16, 2026.
(2)Our $1.25 billion revolving credit facility matures on April 5, 2027, plus two six-month extensions at our option to April 5, 2028. As of March 31, 2023, there was $60.0 million outstanding under this credit facility.
(3)The total debt maturities differ from the total reported on the consolidated balance sheet due to the debt issuance costs and unamortized net premium/discount on certain mortgage loans, notes payable, and senior notes as of March 31, 2023.
(4)The weighted average rate reflects the weighted average interest rate on debt maturing in the respective year.
(5)The weighted average rate excludes $0.9 million in quarterly financing fees and quarterly debt fee amortization on our $1.25 billion revolving credit facility.
14
| Federal Realty Investment Trust | ||||||||||||||||||||
| Summary of Redevelopment and Expansion Opportunities | ||||||||||||||||||||
| March 31, 2023 | ||||||||||||||||||||
| The following redevelopment opportunities are actively being worked on by the Trust. (1) | ||||||||||||||||||||
| Active Mixed-Use Redevelopment/Expansion Projects | ||||||||||||||||||||
| Property (1) | Location | Opportunity | Projected ROI (2) | Projected Cost (1) | Cost to Date | Projected 2023 POI Delivered(2) | ||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||
| Santana West (3) | San Jose, CA | Development of a 376,000 square foot office building | 6 | % | $315 - $330 | $210 | — | |||||||||||||
| Pike & Rose - 915 Meeting Street (3) | North Bethesda, MD | Development of a 266,000 square foot office building with 10,000 square feet of retail space. 157,000 square feet of office and 5,000 square feet of retail space pre-leased. | 6 | % | $185 - $200 | $111 | — | |||||||||||||
| Darien Commons | Darien, CT | Demolition of a 45,000 square foot anchor space to construct 75,000 square feet of new retail space, 122 rental apartments, and 720 parking spaces | 6 | % | $110 - $120 | $104 | 50 - 60 % | |||||||||||||
| Total Active Mixed-Use Redevelopment/Expansion Projects | 6 | % | $610 - $650 | $425 | ||||||||||||||||
| Active Redevelopment/Expansion Projects | ||||||||||||||||||||
| Property | Location | Opportunity | Projected ROI (4) | Projected Cost (1) | Cost to Date | Anticipated Stabilization (5) | ||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||
| Huntington | Huntington, NY | Demolition of the main two level building consisting of 161,000 square feet of anchor and small shop space to construct 102,000 square feet of new ground-level anchor and small shop retail space | 7 - 8 % | $80 - $85 | $49 | 2024 | ||||||||||||||
| Lawrence Park | Broomall, PA | Full shopping center redevelopment to include expansion of Main Line Health into vacant lower level space, creation of 17,800 square feet of small shop space converted from vacated anchor space, a new 2,000 square foot bank pad building, and a façade renovation for the entire center | 8 | % | $15 | $15 | 2023 | |||||||||||||
| Willow Grove | Willow Grove, PA | Development of a new 17,000 square foot multi-tenant pad building | 7 | % | $11 | $2 | 2024 | |||||||||||||
| Pike 7 Plaza | Vienna, VA | Development of a new 3,200 square foot pad building pre-leased to a restaurant tenant | 8 | % | $3 | $1 | 2024 | |||||||||||||
| Flourtown | Flourtown, PA | Development of a new 2,450 square foot bank pad building | 7 | % | $2 | $2 | Stabilized | |||||||||||||
| Dedham | Dedham, MA | Development of a new 4,000 square foot pad building with drive-thru pre-leased to a restaurant tenant | 7 | % | $2 | $2 | 2023 | |||||||||||||
| Total Active Redevelopment/Expansion Projects | 7 - 8 % | $113 - $118 | $71 | |||||||||||||||||
| Active Property Improvement Projects (6) | ||||||||||||||||||||
| Various Properties | Ongoing improvements at 15 properties to better position those properties to capture a disproportionate amount of retail demand | 6% - 13% | $76 | $46 | ||||||||||||||||
Notes:
(1)There is no guarantee that the Trust will ultimately complete any or all of these opportunities, that the ROI or Projected Costs will be the amounts shown or that stabilization will occur as anticipated. The projected returns on investment (ROI) and Projected Cost are management's best estimate based on current information and may change over time. Anticipated total cost, and projected ROI, and projected POI delivered are subject to adjustment as a result of factors inherent in the development process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for other risk factors.
(2)Projected ROI for mixed-use redevelopment/expansion projects reflects the unleveraged Property Operating Income (POI) generated by the project and is calculated as POI divided by cost. Projected POI delivered includes straight line rent.
(3)Projected costs for Pike & Rose include an allocation of infrastructure costs for the entire project. Santana West includes an allocation of infrastructure for the Santana West site.
(4)Projected ROI for redevelopment projects generally reflects only the deal specific cash, unleveraged incremental POI generated by the redevelopment and is calculated as Incremental POI divided by incremental cost. Incremental POI is the POI generated by the redevelopment after deducting rent being paid or management's estimate of rent to be paid for the redevelopment space and any other space taken out of service to accommodate the redevelopment. Projected ROI for redevelopment projects generally does not include peripheral impacts, such as the impact on future lease rollovers at the property or the impact on the long-term value of the property but may for certain property improvement projects.
(5)Stabilization is generally the year in which 90% physical occupancy of the redeveloped space is achieved. Economic stabilization may occur at a later point in time.
(6)Property improvement projects generally consist of façade renovations, site improvements, landscaping, improved outdoor amenity spaces, and other upgrades to improve the overall look and environment of the property. These projects improve overall tenant and customer experiences, improve market rents, drive leasing demand, and/or provide outdoor spaces critical to meeting the needs of the current environment. Returns on these projects are typically seen over one to five years, however, some projects could extend beyond that. Projected ROI range reflects management's best estimate of the long term expected return on cost of these investments.
15
| Federal Realty Investment Trust | |||||||||||||||||
| Future Redevelopment and Expansion Opportunities | |||||||||||||||||
| March 31, 2023 | |||||||||||||||||
| We have identified the following potential opportunities to create future shareholder value. Executing these opportunities could be subject to government approvals, tenant consents, market conditions, etc. Work on many of these opportunities is in its preliminary stages and may not ultimately come to fruition. This list will change from time to time as we identify hurdles that cannot be overcome in the near term, and focus on those opportunities that are most likely to lead to the creation of shareholder value over time. | |||||||||||||||||
| Redevelopment Opportunities | |||||||||||||||||
| Property | Location | Expansion/Conversion (4) | Residential (5) | Mixed Use - Long Term | |||||||||||||
| Assembly Row (1) | Somerville, MA | ü | |||||||||||||||
| Bala Cynwyd | Bala Cynwyd, PA | ü | ü | ||||||||||||||
| Barracks Road | Charlottesville, VA | ü | ü | ||||||||||||||
| Bethesda Row | Bethesda, MD | ü | ü | ||||||||||||||
| Camelback Colonnade | Phoenix, AZ | ü | ü | ||||||||||||||
| Chelsea Commons | Chelsea, MA | ü | |||||||||||||||
| Dedham Plaza | Dedham, MA | ü | |||||||||||||||
| Escondido Promenade | Escondido, CA | ü | |||||||||||||||
| Fairfax Junction | Fairfax, VA | ü | ü | ||||||||||||||
| Federal Plaza | Rockville, MD | ü | |||||||||||||||
| Fresh Meadows | Queens, NY | ü | |||||||||||||||
| Friendship Center | Washington, DC | ü | ü | ||||||||||||||
| Grossmont Center | La Mesa, CA | ü | |||||||||||||||
| Hoboken | Hoboken, NJ | ü | |||||||||||||||
| Huntington | Huntington, NY | ü | |||||||||||||||
| Mercer Mall | Lawrenceville, NJ | ü | |||||||||||||||
| Pan Am | Fairfax, VA | ü | ü | ||||||||||||||
| Pike & Rose (2) | North Bethesda, MD | ü | |||||||||||||||
| Pike 7 Plaza | Vienna, VA | ü | |||||||||||||||
| Riverpoint Center | Chicago, IL | ü | |||||||||||||||
| Santana Row (3) | San Jose, CA | ü | |||||||||||||||
| Santana Row - Santana West (3) | San Jose, CA | ü | |||||||||||||||
| The AVENUE at White Marsh | White Marsh, MD | ü | |||||||||||||||
| Village at Shirlington | Arlington, VA | ü | |||||||||||||||
| Willow Grove | Willow Grove, PA | ü | ü | ||||||||||||||
| Willow Lawn | Richmond, VA | ü | |||||||||||||||
Notes:
(1)Remaining entitlements at Assembly Row include approximately 1.5 million square feet of commercial-use buildings and 326 residential units.
(2)Remaining entitlements at Pike & Rose include approximately 530,000 square feet of commercial-use buildings and 741 residential units.
(3)Remaining entitlements at Santana Row include approximately 321,000 square feet of commercial space and 395 residential units, as well as approximately 604,000 square feet of commercial space across from Santana Row.
(4)Property expansion/conversion includes opportunities at successful retail properties to convert previously underutilized land into new GLA, to convert other existing uses into more productive uses for the property, and/or to add both single tenant and muti-tenant stand alone pad buildings.
(5)Residential includes opportunities to add residential units to existing retail and mixed-use properties.
16
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Property Acquisition, Disposition, & Other Transaction | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||
Property Acquisition
| Date | Property | City/State | GLA | Purchase Price | Principal Tenants | |||||||||||||||||||||||||||
| (in square feet) | (in millions) | |||||||||||||||||||||||||||||||
| January 31, 2023 | Huntington Square (1) | East Northport, New York | 168,000 | $ | 35.5 | At Home / AMC | ||||||||||||||||||||||||||
(1)The purchase price includes the acquisition of the portions of the property not previously owned, as well as the acquisition of the fee interest in the land underneath the portion of Huntington Square shopping center which we control under a long-term ground lease.
Property Disposition
| Date | Property | City/State | Sales Price | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| February 15, 2023 | Town Center of New Britain | New Britain, Pennsylvania | $ | 13.2 | |||||||||||||||||||
Other Transaction
On April 12, 2023, we issued $350.0 million of fixed rate senior unsecured notes that mature on May 1, 2028 and bear interest at 5.375%. The notes were offered at 99.590% of the principal amount with a yield to maturity of 5.468%.
17
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | |||||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| California | |||||||||||||||||||||||||||||||||||||||||||||||
| Azalea | (4) | Los Angeles-Long Beach-Anaheim, CA | $ | 109,257 | $ | 40,000 | 22 | 226,000 | 100 | % | Marshalls / Ross Dress for Less / Ulta / Michaels | ||||||||||||||||||||||||||||||||||||
| Bell Gardens | (4) | Los Angeles-Long Beach-Anaheim, CA | 118,552 | 11,761 | 32 | 330,000 | 98 | % | 67,000 | Food 4 Less | Marshalls / Ross Dress for Less / Bob's Discount Furniture | ||||||||||||||||||||||||||||||||||||
| Colorado Blvd | Los Angeles-Long Beach-Anaheim, CA | 13,962 | 1 | 42,000 | 73 | % | Banana Republic / True Food Kitchen | ||||||||||||||||||||||||||||||||||||||||
| Crow Canyon Commons | San Francisco-Oakland-Hayward, CA | 91,138 | 22 | 243,000 | 99 | % | 32,000 | Sprouts | Total Wine & More / Rite Aid / Alamo Ace Hardware | ||||||||||||||||||||||||||||||||||||||
| East Bay Bridge | San Francisco-Oakland-Hayward, CA | 179,760 | 32 | 440,000 | 100 | % | 59,000 | Pak-N-Save | Home Depot / Target / Nordstrom Rack | ||||||||||||||||||||||||||||||||||||||
| Escondido Promenade | (7) | San Diego-Carlsbad, CA | 135,151 | 18 | 298,000 | 99 | % | TJ Maxx / Dick’s Sporting Goods / Ross Dress For Less / Bob's Discount Furniture | |||||||||||||||||||||||||||||||||||||||
| Fourth Street | (4) | San Francisco-Oakland-Hayward, CA | 27,899 | 3 | 71,000 | 81 | % | CB2 | |||||||||||||||||||||||||||||||||||||||
| Freedom Plaza | (4) | Los Angeles-Long Beach-Anaheim, CA | 44,096 | 9 | 114,000 | 97 | % | 31,000 | Smart & Final | Nike / Blink Fitness / Ross Dress For Less | |||||||||||||||||||||||||||||||||||||
| Grossmont Center | (4) | San Diego-Carlsbad, CA | 176,501 | 64 | 932,000 | 98 | % | Target / Walmart / Macy's / CVS | |||||||||||||||||||||||||||||||||||||||
| Hastings Ranch Plaza | Los Angeles-Long Beach-Anaheim, CA | 25,717 | 15 | 273,000 | 100 | % | Marshalls / HomeGoods / CVS / Sears | ||||||||||||||||||||||||||||||||||||||||
| Hollywood Blvd | Los Angeles-Long Beach-Anaheim, CA | 61,933 | 3 | 181,000 | 86 | % | Target / Marshalls / L.A. Fitness | ||||||||||||||||||||||||||||||||||||||||
| Kings Court | (5) | San Jose-Sunnyvale-Santa Clara, CA | 11,631 | 8 | 81,000 | 100 | % | 31,000 | Lunardi's | CVS | |||||||||||||||||||||||||||||||||||||
| Old Town Center | San Jose-Sunnyvale-Santa Clara, CA | 41,031 | 8 | 99,000 | 87 | % | Anthropologie / Sephora / Teleferic Barcelona | ||||||||||||||||||||||||||||||||||||||||
| Olivo at Mission Hills | (4) | Los Angeles-Long Beach-Anaheim, CA | 82,845 | 12 | 155,000 | 100 | % | Target / 24 Hour Fitness / Ross Dress For Less | |||||||||||||||||||||||||||||||||||||||
| Plaza Del Sol | (4) | Los Angeles-Long Beach-Anaheim, CA | 17,955 | 4 | 48,000 | 96 | % | Marshalls | |||||||||||||||||||||||||||||||||||||||
| Plaza El Segundo / The Point | Los Angeles-Long Beach-Anaheim, CA | 306,469 | 125,000 | 50 | 501,000 | 86 | % | 66,000 | Whole Foods | Nordstrom Rack / HomeGoods / Dick's Sporting Goods / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| San Antonio Center | (5) | San Jose-Sunnyvale-Santa Clara, CA | 51,803 | 22 | 213,000 | 99 | % | 14,000 | Trader Joe's | Walmart / 24 Hour Fitness | |||||||||||||||||||||||||||||||||||||
| Santana Row | San Jose-Sunnyvale-Santa Clara, CA | 1,285,738 | 45 | 1,206,000 | 99 | % | 662 | Crate & Barrel / Container Store / H&M / Best Buy / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||||
| Sylmar Towne Center | (4) | Los Angeles-Long Beach-Anaheim, CA | 46,450 | 12 | 148,000 | 93 | % | 43,000 | Food 4 Less | CVS | |||||||||||||||||||||||||||||||||||||
| Third Street Promenade | Los Angeles-Long Beach-Anaheim, CA | 90,224 | 2 | 207,000 | 74 | % | adidas / Patagonia / Multiple Restaurants | ||||||||||||||||||||||||||||||||||||||||
| Westgate Center | San Jose-Sunnyvale-Santa Clara, CA | 157,282 | 44 | 648,000 | 90 | % | Target / Nordstrom Rack / Nike Factory / TJ Maxx | ||||||||||||||||||||||||||||||||||||||||
| Total California | 3,075,394 | 428 | 6,456,000 | 95 | % | ||||||||||||||||||||||||||||||||||||||||||
| Washington Metropolitan Area | |||||||||||||||||||||||||||||||||||||||||||||||
| Barcroft Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 50,904 | 10 | 113,000 | 98 | % | 46,000 | Harris Teeter | |||||||||||||||||||||||||||||||||||||||
| Bethesda Row | Washington-Arlington-Alexandria, DC-VA-MD-WV | 259,616 | 17 | 529,000 | 95 | % | 180 | 40,000 | Giant Food | Apple / Equinox / Anthropologie / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| Birch & Broad | Washington-Arlington-Alexandria, DC-VA-MD-WV | 26,062 | 10 | 144,000 | 100 | % | 51,000 | Giant Food | CVS / Staples | ||||||||||||||||||||||||||||||||||||||
| Chesterbrook | (4) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 43,286 | 9 | 89,000 | 72 | % | 35,000 | Safeway | Starbucks | |||||||||||||||||||||||||||||||||||||
| Congressional Plaza | (4) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 109,871 | 21 | 324,000 | 90 | % | 194 | 25,000 | The Fresh Market | Buy Buy Baby / Ulta / Barnes & Noble / Container Store | ||||||||||||||||||||||||||||||||||||
| Courthouse Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 7,289 | 2 | 38,000 | 69 | % | |||||||||||||||||||||||||||||||||||||||||
| Fairfax Junction | (5) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 45,599 | 11 | 124,000 | 92 | % | 23,000 | Aldi | CVS / Planet Fitness | |||||||||||||||||||||||||||||||||||||
| Federal Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 73,075 | 18 | 249,000 | 87 | % | 14,000 | Trader Joe's | TJ Maxx / Micro Center / Ross Dress For Less | ||||||||||||||||||||||||||||||||||||||
18
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | |||||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| Friendship Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 37,074 | 1 | 54,000 | 100 | % | Marshalls / Maggiano's | ||||||||||||||||||||||||||||||||||||||||
| Gaithersburg Square | Washington-Arlington-Alexandria, DC-VA-MD-WV | 39,225 | 16 | 208,000 | 95 | % | Marshalls / Ross Dress For Less / Ashley Furniture HomeStore / CVS | ||||||||||||||||||||||||||||||||||||||||
| Graham Park Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 25,412 | 10 | 133,000 | 90 | % | 58,000 | Giant Food | |||||||||||||||||||||||||||||||||||||||
| Idylwood Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 18,188 | 7 | 73,000 | 84 | % | 30,000 | Whole Foods | |||||||||||||||||||||||||||||||||||||||
| Kingstowne Towne Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 210,301 | 45 | 410,000 | 99 | % | 66,000 | Giant Food / Safeway | TJ Maxx / HomeGoods / Five Below / Ross Dress For Less | ||||||||||||||||||||||||||||||||||||||
| Laurel | Washington-Arlington-Alexandria, DC-VA-MD-WV | 61,505 | 26 | 364,000 | 99 | % | 61,000 | Giant Food | Marshalls / L.A. Fitness / HomeGoods | ||||||||||||||||||||||||||||||||||||||
| Montrose Crossing | Washington-Arlington-Alexandria, DC-VA-MD-WV | 172,401 | 36 | 368,000 | 100 | % | 73,000 | Giant Food | Marshalls / Home Depot Design Center / Old Navy / Burlington | ||||||||||||||||||||||||||||||||||||||
| Mount Vernon/South Valley/7770 Richmond Hwy | (5) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 95,069 | 29 | 565,000 | 97 | % | 62,000 | Shoppers Food Warehouse | TJ Maxx / Home Depot / Old Navy / Petsmart | |||||||||||||||||||||||||||||||||||||
| Old Keene Mill | Washington-Arlington-Alexandria, DC-VA-MD-WV | 13,840 | 10 | 91,000 | 95 | % | 24,000 | Whole Foods | Walgreens / Planet Fitness | ||||||||||||||||||||||||||||||||||||||
| Pan Am | Washington-Arlington-Alexandria, DC-VA-MD-WV | 31,907 | 25 | 228,000 | 95 | % | 65,000 | Safeway | Micro Center / CVS / Michaels | ||||||||||||||||||||||||||||||||||||||
| Pike & Rose | Washington-Arlington-Alexandria, DC-VA-MD-WV | 821,674 | 24 | 669,000 | 100 | % | 765 | Porsche / Uniqlo / REI / H&M / L.L Bean / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||||
| Pike 7 Plaza | Washington-Arlington-Alexandria, DC-VA-MD-WV | 53,482 | 13 | 172,000 | 100 | % | TJ Maxx / DSW / Ulta | ||||||||||||||||||||||||||||||||||||||||
| Plaza del Mercado | Washington-Arlington-Alexandria, DC-VA-MD-WV | 46,882 | 10 | 116,000 | 96 | % | 18,000 | Aldi | CVS / L.A. Fitness | ||||||||||||||||||||||||||||||||||||||
| Quince Orchard | Washington-Arlington-Alexandria, DC-VA-MD-WV | 41,265 | 16 | 271,000 | 81 | % | 19,000 | Aldi | HomeGoods / L.A. Fitness / Staples | ||||||||||||||||||||||||||||||||||||||
| Tower Shopping Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 23,158 | 12 | 111,000 | 94 | % | 26,000 | L.A. Mart | Talbots / Total Wine & More | ||||||||||||||||||||||||||||||||||||||
| Twinbrooke Shopping Centre | Washington-Arlington-Alexandria, DC-VA-MD-WV | 35,773 | 10 | 101,000 | 91 | % | 35,000 | Safeway | Walgreens | ||||||||||||||||||||||||||||||||||||||
| Tyson's Station | Washington-Arlington-Alexandria, DC-VA-MD-WV | 6,678 | 5 | 48,000 | 88 | % | 15,000 | Trader Joe's | |||||||||||||||||||||||||||||||||||||||
| Village at Shirlington | (6) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 76,023 | 7,000 | 16 | 265,000 | 87 | % | 28,000 | Harris Teeter | CVS / AMC / Multiple Restaurants | ||||||||||||||||||||||||||||||||||||
| Westpost (formerly Pentagon Row) | Washington-Arlington-Alexandria, DC-VA-MD-WV | 114,352 | 14 | 297,000 | 98 | % | 45,000 | Harris Teeter | Target / TJ Maxx / Ulta / Walgreens | ||||||||||||||||||||||||||||||||||||||
| Wildwood Shopping Center | Washington-Arlington-Alexandria, DC-VA-MD-WV | 27,952 | 12 | 88,000 | 100 | % | 20,000 | Balducci's | CVS / Multiple Restaurants | ||||||||||||||||||||||||||||||||||||||
| Total Washington Metropolitan Area | 2,567,863 | 435 | 6,242,000 | 95 | % | ||||||||||||||||||||||||||||||||||||||||||
| NY Metro/New Jersey | |||||||||||||||||||||||||||||||||||||||||||||||
| Brick Plaza | New York-Newark-Jersey City, NY-NJ-PA | 107,229 | 46 | 408,000 | 95 | % | 14,000 | Trader Joe's | AMC / HomeGoods / Ulta / Burlington | ||||||||||||||||||||||||||||||||||||||
| Brook 35 | (4) (5) | New York-Newark-Jersey City, NY-NJ-PA | 51,112 | 11,500 | 11 | 98,000 | 87 | % | Banana Republic / Gap / Williams-Sonoma | ||||||||||||||||||||||||||||||||||||||
| Darien Commons | Bridgeport-Stamford-Norwalk, CT | 142,816 | 9 | 67,000 | 91 | % | 123 | Equinox / Walgreens | |||||||||||||||||||||||||||||||||||||||
| Fresh Meadows | New York-Newark-Jersey City, NY-NJ-PA | 95,303 | 17 | 408,000 | 96 | % | 15,000 | Island of Gold | AMC / Kohl's | ||||||||||||||||||||||||||||||||||||||
19
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | |||||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| Georgetowne Shopping Center | New York-Newark-Jersey City, NY-NJ-PA | 86,225 | 9 | 146,000 | 87 | % | 43,000 | Foodway | Five Below / IHOP | ||||||||||||||||||||||||||||||||||||||
| Greenlawn Plaza | New York-Newark-Jersey City, NY-NJ-PA | 33,824 | 13 | 103,000 | 89 | % | 46,000 | Greenlawn Farms | Planet Fitness | ||||||||||||||||||||||||||||||||||||||
| Greenwich Avenue | Bridgeport-Stamford-Norwalk, CT | 23,748 | 1 | 35,000 | 100 | % | Saks Fifth Avenue | ||||||||||||||||||||||||||||||||||||||||
| Hauppauge | New York-Newark-Jersey City, NY-NJ-PA | 35,769 | 15 | 134,000 | 86 | % | 61,000 | Shop Rite | |||||||||||||||||||||||||||||||||||||||
| Hoboken | (4) (8) | New York-Newark-Jersey City, NY-NJ-PA | 227,581 | 85,325 | 4 | 171,000 | 99 | % | 129 | Nike Live / CVS / New York Sports Club / Sephora / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| Huntington | New York-Newark-Jersey City, NY-NJ-PA | 88,745 | 21 | 116,000 | 90 | % | Petsmart / Michaels / Ulta | ||||||||||||||||||||||||||||||||||||||||
| Huntington Square | New York-Newark-Jersey City, NY-NJ-PA | 49,463 | 18 | 243,000 | 97 | % | Barnes & Noble / At Home / AMC | ||||||||||||||||||||||||||||||||||||||||
| Melville Mall | New York-Newark-Jersey City, NY-NJ-PA | 105,099 | 21 | 253,000 | 100 | % | 53,000 | Uncle Giuseppe's Marketplace | Marshalls / Dick's Sporting Goods / Macy's Backstage / Public Lands | ||||||||||||||||||||||||||||||||||||||
| Mercer Mall | (6) | Trenton, NJ | 132,681 | 55,068 | 50 | 551,000 | 89 | % | 75,000 | Shop Rite | Nike / Ross Dress for Less / Nordstrom Rack / REI / Tesla | ||||||||||||||||||||||||||||||||||||
| The Grove at Shrewsbury | (4) (5) | New York-Newark-Jersey City, NY-NJ-PA | 130,443 | 43,600 | 21 | 193,000 | 95 | % | Lululemon / Anthropologie / Pottery Barn / Williams-Sonoma | ||||||||||||||||||||||||||||||||||||||
| Troy | New York-Newark-Jersey City, NY-NJ-PA | 41,506 | 19 | 211,000 | 99 | % | Target / L.A. Fitness / Michaels | ||||||||||||||||||||||||||||||||||||||||
| Total NY Metro/New Jersey | 1,351,544 | 275 | 3,137,000 | 94 | % | ||||||||||||||||||||||||||||||||||||||||||
| New England | |||||||||||||||||||||||||||||||||||||||||||||||
| Assembly Row / Assembly Square Marketplace | Boston-Cambridge-Newton, MA-NH | 1,122,761 | 65 | 1,183,000 | 99 | % | 947 | 18,000 | Trader Joe's | TJ Maxx / AMC / Nike / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| Campus Plaza | Boston-Cambridge-Newton, MA-NH | 30,969 | 15 | 114,000 | 94 | % | 46,000 | Roche Bros. | Burlington | ||||||||||||||||||||||||||||||||||||||
| Chelsea Commons | Boston-Cambridge-Newton, MA-NH | 32,375 | 4,340 | 36 | 222,000 | 100 | % | Home Depot / Planet Fitness / CVS | |||||||||||||||||||||||||||||||||||||||
| Dedham Plaza | Boston-Cambridge-Newton, MA-NH | 50,587 | 20 | 249,000 | 88 | % | 80,000 | Star Market | Planet Fitness | ||||||||||||||||||||||||||||||||||||||
| Linden Square | Boston-Cambridge-Newton, MA-NH | 158,239 | 19 | 224,000 | 97 | % | 7 | 50,000 | Roche Bros. | CVS / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||
| North Dartmouth | Providence-Warwick, RI-MA | 9,369 | 28 | 48,000 | 100 | % | 48,000 | Stop & Shop | |||||||||||||||||||||||||||||||||||||||
| Queen Anne Plaza | Boston-Cambridge-Newton, MA-NH | 19,421 | 17 | 149,000 | 99 | % | 50,000 | Big Y Foods | TJ Maxx / HomeGoods | ||||||||||||||||||||||||||||||||||||||
| Total New England | 1,423,721 | 200 | 2,189,000 | 97 | % | ||||||||||||||||||||||||||||||||||||||||||
| Philadelphia Metropolitan Area | |||||||||||||||||||||||||||||||||||||||||||||||
| Andorra | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 33,551 | 22 | 270,000 | 88 | % | 24,000 | Acme Markets | TJ Maxx / Kohl's / L.A. Fitness / Five Below | ||||||||||||||||||||||||||||||||||||||
| Bala Cynwyd | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 73,564 | 23 | 174,000 | 94 | % | 87 | 45,000 | Acme Markets | Michaels / L.A. Fitness | |||||||||||||||||||||||||||||||||||||
| Ellisburg | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 37,946 | 28 | 260,000 | 96 | % | 47,000 | Whole Foods | Buy Buy Baby / RH Outlet | ||||||||||||||||||||||||||||||||||||||
| Flourtown | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 19,255 | 24 | 156,000 | 96 | % | 75,000 | Giant Food | Movie Tavern | ||||||||||||||||||||||||||||||||||||||
| Langhorne Square | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 24,876 | 21 | 223,000 | 100 | % | 55,000 | Redner's Warehouse Markets | Marshalls / Planet Fitness | ||||||||||||||||||||||||||||||||||||||
20
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | |||||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| Lawrence Park | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 62,628 | 29 | 357,000 | 98 | % | 53,000 | Acme Markets | TJ Maxx / HomeGoods / Barnes & Noble | ||||||||||||||||||||||||||||||||||||||
| Northeast | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 35,502 | 15 | 214,000 | 82 | % | Marshalls / Ulta / Skechers / Crunch Fitness | ||||||||||||||||||||||||||||||||||||||||
| Willow Grove | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 40,701 | 13 | 105,000 | 94 | % | Marshalls / Five Below | ||||||||||||||||||||||||||||||||||||||||
| Wynnewood | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 43,880 | 14 | 246,000 | 73 | % | 9 | 98,000 | Giant Food | Old Navy / DSW | |||||||||||||||||||||||||||||||||||||
| Total Philadelphia Metropolitan Area | 371,903 | 189 | 2,005,000 | 91 | % | ||||||||||||||||||||||||||||||||||||||||||
| South Florida | |||||||||||||||||||||||||||||||||||||||||||||||
| CocoWalk | (4) (9) | Miami-Fort Lauderdale-West Palm Beach, FL | 201,973 | 3 | 277,000 | 100 | % | Cinepolis Theaters / Youfit Health Club / Multiple Restaurants | |||||||||||||||||||||||||||||||||||||||
| Del Mar Village | Miami-Fort Lauderdale-West Palm Beach, FL | 75,203 | 17 | 187,000 | 98 | % | 44,000 | Winn Dixie | CVS / L.A. Fitness | ||||||||||||||||||||||||||||||||||||||
| The Shops at Pembroke Gardens | Miami-Fort Lauderdale-West Palm Beach, FL | 180,976 | 41 | 391,000 | 93 | % | Nike Factory / Old Navy / DSW / Barnes & Noble | ||||||||||||||||||||||||||||||||||||||||
| Tower Shops | Miami-Fort Lauderdale-West Palm Beach, FL | 102,359 | 67 | 430,000 | 100 | % | 12,000 | Trader Joe's | TJ Maxx / Ross Dress For Less / Best Buy / Ulta | ||||||||||||||||||||||||||||||||||||||
| Total South Florida | 560,511 | 128 | 1,285,000 | 98 | % | ||||||||||||||||||||||||||||||||||||||||||
| Baltimore | |||||||||||||||||||||||||||||||||||||||||||||||
| Governor Plaza | Baltimore-Columbia-Towson, MD | 34,531 | 24 | 243,000 | 100 | % | 16,500 | Aldi | Dick's Sporting Goods / Ross Dress for Less / Petco | ||||||||||||||||||||||||||||||||||||||
| Perring Plaza | Baltimore-Columbia-Towson, MD | 35,470 | 29 | 398,000 | 71 | % | 58,000 | Shoppers Food Warehouse | Home Depot / Micro Center | ||||||||||||||||||||||||||||||||||||||
| THE AVENUE at White Marsh | (5) | Baltimore-Columbia-Towson, MD | 128,239 | 35 | 315,000 | 95 | % | AMC / Ulta / Old Navy / Nike | |||||||||||||||||||||||||||||||||||||||
| The Shoppes at Nottingham Square | Baltimore-Columbia-Towson, MD | 19,513 | 4 | 33,000 | 100 | % | |||||||||||||||||||||||||||||||||||||||||
| White Marsh Plaza | Baltimore-Columbia-Towson, MD | 27,062 | 7 | 80,000 | 100 | % | 54,000 | Giant Food | |||||||||||||||||||||||||||||||||||||||
| White Marsh Other | Baltimore-Columbia-Towson, MD | 27,921 | 16 | 56,000 | 87 | % | |||||||||||||||||||||||||||||||||||||||||
| Total Baltimore | 272,736 | 115 | 1,125,000 | 88 | % | ||||||||||||||||||||||||||||||||||||||||||
| Chicago | |||||||||||||||||||||||||||||||||||||||||||||||
| Crossroads | Chicago-Naperville-Elgin, IL-IN-WI | 36,638 | 14 | 168,000 | 91 | % | L.A. Fitness / Ulta / Binny's / Ferguson's Bath, Kitchen & Lighting Gallery | ||||||||||||||||||||||||||||||||||||||||
| Finley Square | Chicago-Naperville-Elgin, IL-IN-WI | 42,329 | 21 | 281,000 | 92 | % | Bed, Bath & Beyond / Buy Buy Baby / Michaels / Portillo's | ||||||||||||||||||||||||||||||||||||||||
| Garden Market | Chicago-Naperville-Elgin, IL-IN-WI | 15,611 | 11 | 139,000 | 96 | % | 63,000 | Mariano's Fresh Market | Walgreens | ||||||||||||||||||||||||||||||||||||||
| Riverpoint Center | Chicago-Naperville-Elgin, IL-IN-WI | 122,201 | 17 | 211,000 | 94 | % | 86,000 | Jewel Osco | Marshalls / Old Navy | ||||||||||||||||||||||||||||||||||||||
| Total Chicago | 216,779 | 63 | 799,000 | 93 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||||||||
| Barracks Road | Charlottesville, VA | 74,532 | 40 | 497,000 | 96 | % | 99,000 | Harris Teeter / Kroger | Anthropologie / Bed, Bath & Beyond / Old Navy / Ulta | ||||||||||||||||||||||||||||||||||||||
| Bristol Plaza | Hartford-West Hartford-East Hartford, CT | 36,368 | 22 | 264,000 | 85 | % | 74,000 | Stop & Shop | TJ Maxx / Burlington | ||||||||||||||||||||||||||||||||||||||
| Camelback Colonnade | (4) | Phoenix-Mesa-Chandler, AZ | 180,257 | 41 | 642,000 | 90 | % | 82,000 | Fry's Food & Drug | Floor & Décor / Marshalls / Nordstrom Last Chance / Best Buy | |||||||||||||||||||||||||||||||||||||
21
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Status Report | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Property Name | MSA Description | Real Estate at Cost (1) | Mortgage/Finance Lease Liabilities (2) | Acreage | GLA (3) | % Leased (3) | Residential Units | Grocery Anchor GLA | Grocery Anchor | Other Retail Tenants | |||||||||||||||||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gratiot Plaza | Detroit-Warren-Dearborn, MI | 20,702 | 20 | 215,000 | 100 | % | 69,000 | Kroger | Bed, Bath & Beyond / Best Buy / DSW | ||||||||||||||||||||||||||||||||||||||
| Hilton Village | (4) | Phoenix-Mesa-Chandler, AZ | 86,313 | 18 | 305,000 | 91 | % | CVS / Houston's | |||||||||||||||||||||||||||||||||||||||
| Lancaster | (6) | Lancaster, PA | 13,635 | 5,590 | 11 | 126,000 | 99 | % | 75,000 | Giant Food | AutoZone | ||||||||||||||||||||||||||||||||||||
| 29th Place | Charlottesville, VA | 40,855 | 15 | 168,000 | 99 | % | 32,000 | Lidl | HomeGoods / DSW / Staples | ||||||||||||||||||||||||||||||||||||||
| Willow Lawn | Richmond, VA | 105,857 | 37 | 463,000 | 96 | % | 66,000 | Kroger | Old Navy / Ross Dress For Less / Gold's Gym / Dick's Sporting Goods | ||||||||||||||||||||||||||||||||||||||
| Total Other | 558,519 | 204 | 2,680,000 | 93 | % | ||||||||||||||||||||||||||||||||||||||||||
| Grand Total | $ | 10,398,970 | $ | 389,184 | 2,037 | 25,918,000 | 94 | % | 3,103 | ||||||||||||||||||||||||||||||||||||||
| Notes: | |||||
| (1) | Includes "Finance lease right of use assets." | ||||
| (2) | The mortgage or finance lease liabilities differ from the total reported on the consolidated balance sheet due to the unamortized discount, premium, and/or debt issuance costs on certain mortgages payable. | ||||
| (3) | Represents the GLA and the percentage leased of the commercial portion of the property. Some of our properties include office space which is included in this square footage. Excludes newly created redevelopment square footage not yet in service, as well as residential and hotel square footage. | ||||
| (4) | The Trust has a controlling financial interest in this property. | ||||
| (5) | All or a portion of the property is owned in a "downREIT" partnership, of which a wholly owned subsidiary of the Trust is the sole general partner, with third party partners holding operating partnership units. | ||||
| (6) | All or a portion of the property is subject to finance lease liabilities. | ||||
| (7) | Amounts represent 100% of the property - we own a 77.7% TIC interest. Real estate at cost represents the fair value of the property at the time of the TIC arrangement, plus subsequent real estate related additions. | ||||
| (8) | This property includes 40 buildings primarily along Washington Street and 14th Street in Hoboken, New Jersey. | ||||
| (9) | This property includes CocoWalk and interests in four buildings in Coconut Grove. | ||||
22
| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail Leasing Summary (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Lease Summary - Comparable (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) Per Sq. Ft. (PSF) | Prior Rent (4) PSF | Annual Increase in Rent | Cash Basis % Increase Over Prior Rent | Straight-lined Basis % Increase Over Prior Rent | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2023 | 101 | 100 | % | 504,502 | $ | 34.72 | $ | 31.20 | $ | 1,777,121 | 11 | % | 24 | % | 8.8 | $ | 19,911,347 | $ | 39.47 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2022 | 105 | 100 | % | 415,519 | $ | 43.52 | $ | 39.60 | $ | 1,624,898 | 10 | % | 21 | % | 7.0 | $ | 12,991,578 | $ | 31.27 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2022 | 119 | 100 | % | 562,859 | $ | 34.57 | $ | 33.61 | $ | 540,007 | 3 | % | 13 | % | 6.4 | $ | 14,564,905 | $ | 25.88 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2022 | 132 | 100 | % | 562,111 | $ | 35.86 | $ | 34.29 | $ | 885,669 | 5 | % | 13 | % | 7.0 | $ | 20,791,119 | $ | 36.99 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 457 | 100 | % | 2,044,991 | $ | 36.78 | $ | 34.42 | $ | 4,827,695 | 7 | % | 17 | % | 7.3 | $ | 68,258,949 | $ | 33.38 | |||||||||||||||||||||||||||||||||||||||||||||||||
| New Lease Summary - Comparable (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) PSF | Prior Rent (4) PSF | Annual Increase in Rent | Cash Basis % Increase Over Prior Rent | Straight-lined Basis % Increase Over Prior Rent | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2023 | 40 | 40 | % | 242,022 | $ | 35.60 | $ | 32.66 | $ | 710,823 | 9 | % | 23 | % | 11.9 | $ | 19,167,487 | $ | 79.20 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2022 | 35 | 33 | % | 146,428 | $ | 43.39 | $ | 37.01 | $ | 934,794 | 17 | % | 32 | % | 10.1 | $ | 10,896,153 | $ | 74.41 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2022 | 45 | 38 | % | 215,351 | $ | 35.81 | $ | 35.71 | $ | 21,602 | — | % | 10 | % | 8.6 | $ | 13,415,915 | $ | 62.30 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2022 | 61 | 46 | % | 218,493 | $ | 44.90 | $ | 42.52 | $ | 518,577 | 6 | % | 14 | % | 8.7 | $ | 18,658,319 | $ | 85.40 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 181 | 40 | % | 822,294 | $ | 39.51 | $ | 36.85 | $ | 2,185,796 | 7 | % | 19 | % | 9.8 | $ | 62,137,874 | $ | 75.57 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Renewal Lease Summary - Comparable (2) (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | % of Comparable Leases Signed | GLA Signed | Contractual Rent (3) PSF | Prior Rent (4) PSF | Annual Increase in Rent | Cash Basis % Increase Over Prior Rent | Straight-lined Basis % Increase Over Prior Rent | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2023 | 61 | 60 | % | 262,480 | $ | 33.92 | $ | 29.85 | $ | 1,066,298 | 14 | % | 24 | % | 5.8 | $ | 743,860 | $ | 2.83 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2022 | 70 | 67 | % | 269,091 | $ | 43.58 | $ | 41.02 | $ | 690,104 | 6 | % | 15 | % | 5.4 | $ | 2,095,425 | $ | 7.79 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2022 | 74 | 62 | % | 347,508 | $ | 33.80 | $ | 32.31 | $ | 518,405 | 5 | % | 14 | % | 5.0 | $ | 1,148,990 | $ | 3.31 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2022 | 71 | 54 | % | 343,618 | $ | 30.12 | $ | 29.05 | $ | 367,092 | 4 | % | 11 | % | 5.4 | $ | 2,132,800 | $ | 6.21 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 276 | 60 | % | 1,222,697 | $ | 34.94 | $ | 32.78 | $ | 2,641,899 | 7 | % | 16 | % | 5.4 | $ | 6,121,075 | $ | 5.01 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Lease Summary - Comparable and Non-comparable (2) (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter | Number of Leases Signed | GLA Signed | Contractual Rent (3) PSF | Weighted Average Lease Term (5) | Tenant Improvements & Incentives (6) | Tenant Improvements & Incentives PSF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1st Quarter 2023 | 107 | 524,286 | $ | 35.05 | 8.8 | $ | 20,974,263 | $ | 40.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4th Quarter 2022 | 110 | 425,159 | $ | 43.76 | 7.1 | $ | 13,601,431 | $ | 31.99 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3rd Quarter 2022 | 126 | 584,949 | $ | 35.28 | 6.6 | $ | 16,825,343 | $ | 28.76 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2nd Quarter 2022 | 137 | 577,338 | $ | 35.97 | 7.1 | $ | 20,922,719 | $ | 36.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total - 12 months | 480 | 2,111,732 | $ | 37.12 | 7.4 | $ | 72,323,756 | $ | 34.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes: | |||||
| (1) | Information reflects activity in retail spaces only for consolidated properties and Escondido Promenade; office and residential spaces are not included. Contractual option exercises are not included. See Glossary of Terms for further discussion of information included above. | ||||
| (2) | Comparable leases represent those leases signed on spaces for which there was a former tenant. | ||||
| (3) | Contractual rent represents annual rent under the new lease. | ||||
| (4) | Prior rent represents contractual rent, including percentage rent, from the prior tenant in the final 12 months of the term. | ||||
| (5) | Weighted average is determined on the basis of contractual rent for the lease. | ||||
| (6) | See Glossary of Terms. | ||||
| (7) | Renewal leases represent expiring leases rolling over with the same tenant in the same location. All other leases are categorized as new. | ||||
| (8) | The Number of Leases Signed, GLA Signed, Contractual Rent Per Sq. Ft. and Weighted Average Lease Term columns include information for leases signed at Phase 3 of both of our Assembly Row and Pike & Rose projects and Phase 4 of Pike & Rose. The Tenant Improvements & Incentives and Tenant Improvements & Incentives Per Sq. Ft. columns do not include the tenant improvements and incentives on leases signed for those projects; these amounts for leases signed are included in the projected costs for the respective projects. | ||||
23
| Federal Realty Investment Trust | |||||||||||||||||||||||||||||||||||
| Lease Expirations | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | |||||||||||||||||||||||||||||||||||
| Assumes no exercise of lease options | |||||||||||||||||||||||||||||||||||
| Anchor Tenants (1) | Small Shop Tenants | Total | |||||||||||||||||||||||||||||||||
| Year | Expiring SF | % of Anchor SF | Minimum Rent PSF (2) | Expiring SF | % of Small Shop SF | Minimum Rent PSF (2) | Expiring SF (4) | % of Total SF | Minimum Rent PSF (2) | ||||||||||||||||||||||||||
| 2023 | 489,000 | 3 | % | $ | 22.79 | 533,000 | 7 | % | $ | 37.53 | 1,022,000 | 4 | % | $ | 30.48 | ||||||||||||||||||||
| 2024 | 2,026,000 | 13 | % | $ | 19.39 | 1,061,000 | 14 | % | $ | 47.37 | 3,087,000 | 13 | % | $ | 29.00 | ||||||||||||||||||||
| 2025 | 2,309,000 | 14 | % | $ | 19.09 | 1,177,000 | 15 | % | $ | 41.73 | 3,486,000 | 15 | % | $ | 26.74 | ||||||||||||||||||||
| 2026 | 1,295,000 | 8 | % | $ | 21.17 | 909,000 | 12 | % | $ | 48.70 | 2,204,000 | 9 | % | $ | 32.52 | ||||||||||||||||||||
| 2027 | 1,976,000 | 12 | % | $ | 25.76 | 991,000 | 13 | % | $ | 51.07 | 2,968,000 | 12 | % | $ | 34.21 | ||||||||||||||||||||
| 2028 | 1,676,000 | 11 | % | $ | 20.07 | 901,000 | 11 | % | $ | 50.07 | 2,576,000 | 11 | % | $ | 30.56 | ||||||||||||||||||||
| 2029 | 1,334,000 | 8 | % | $ | 28.16 | 539,000 | 7 | % | $ | 47.01 | 1,873,000 | 8 | % | $ | 33.58 | ||||||||||||||||||||
| 2030 | 710,000 | 4 | % | $ | 20.09 | 316,000 | 4 | % | $ | 52.28 | 1,026,000 | 4 | % | $ | 30.01 | ||||||||||||||||||||
| 2031 | 629,000 | 4 | % | $ | 25.87 | 430,000 | 5 | % | $ | 45.23 | 1,059,000 | 5 | % | $ | 33.73 | ||||||||||||||||||||
| 2032 | 1,615,000 | 10 | % | $ | 28.03 | 588,000 | 7 | % | $ | 44.90 | 2,203,000 | 9 | % | $ | 32.53 | ||||||||||||||||||||
| Thereafter | 2,020,000 | 13 | % | $ | 24.66 | 425,000 | 5 | % | $ | 43.77 | 2,445,000 | 10 | % | $ | 27.98 | ||||||||||||||||||||
| Total (3) | 16,079,000 | 100 | % | $ | 22.99 | 7,870,000 | 100 | % | $ | 46.47 | 23,949,000 | 100 | % | $ | 30.70 | ||||||||||||||||||||
| Assumes all lease options are exercised | |||||||||||||||||||||||||||||||||||
| Anchor Tenants (1) | Small Shop Tenants | Total | |||||||||||||||||||||||||||||||||
| Year | Expiring SF | % of Anchor SF | Minimum Rent PSF (2) | Expiring SF | % of Small Shop SF | Minimum Rent PSF (2) | Expiring SF (4) | % of Total SF | Minimum Rent PSF (2) | ||||||||||||||||||||||||||
| 2023 | 362,000 | 2 | % | $ | 21.70 | 514,000 | 6 | % | $ | 37.33 | 876,000 | 4 | % | $ | 30.87 | ||||||||||||||||||||
| 2024 | 703,000 | 4 | % | $ | 20.94 | 630,000 | 8 | % | $ | 46.48 | 1,333,000 | 6 | % | $ | 33.01 | ||||||||||||||||||||
| 2025 | 813,000 | 5 | % | $ | 15.95 | 751,000 | 10 | % | $ | 39.15 | 1,564,000 | 7 | % | $ | 27.09 | ||||||||||||||||||||
| 2026 | 325,000 | 2 | % | $ | 22.09 | 511,000 | 6 | % | $ | 48.65 | 835,000 | 3 | % | $ | 38.32 | ||||||||||||||||||||
| 2027 | 464,000 | 3 | % | $ | 21.19 | 526,000 | 7 | % | $ | 51.28 | 990,000 | 4 | % | $ | 37.17 | ||||||||||||||||||||
| 2028 | 492,000 | 3 | % | $ | 19.07 | 475,000 | 6 | % | $ | 47.18 | 967,000 | 4 | % | $ | 32.89 | ||||||||||||||||||||
| 2029 | 841,000 | 5 | % | $ | 23.98 | 463,000 | 6 | % | $ | 44.00 | 1,304,000 | 5 | % | $ | 31.08 | ||||||||||||||||||||
| 2030 | 477,000 | 3 | % | $ | 23.73 | 397,000 | 5 | % | $ | 48.59 | 874,000 | 4 | % | $ | 35.02 | ||||||||||||||||||||
| 2031 | 389,000 | 3 | % | $ | 21.33 | 364,000 | 5 | % | $ | 48.85 | 754,000 | 3 | % | $ | 34.63 | ||||||||||||||||||||
| 2032 | 346,000 | 2 | % | $ | 31.44 | 453,000 | 6 | % | $ | 50.91 | 799,000 | 3 | % | $ | 42.49 | ||||||||||||||||||||
| Thereafter | 10,867,000 | 68 | % | $ | 23.65 | 2,786,000 | 35 | % | $ | 47.76 | 13,653,000 | 57 | % | $ | 28.57 | ||||||||||||||||||||
| Total (3) | 16,079,000 | 100 | % | $ | 22.99 | 7,870,000 | 100 | % | $ | 46.47 | 23,949,000 | 100 | % | $ | 30.70 | ||||||||||||||||||||
| Notes: | |||||
| (1) | Anchor is defined as a commercial tenant leasing 10,000 square feet or more. | ||||
| (2) | Minimum Rent reflects in-place contractual (defined as rents on a cash-basis without taking the impacts of rent abatements into account) rent as of March 31, 2023. | ||||
| (3) | Represents occupied square footage of the commercial portion of our portfolio as of March 31, 2023 and includes our 77.7% pro-rata share of Escondido Promenade. | ||||
| (4) | Individual items may not add up to total due to rounding. | ||||
24
| Federal Realty Investment Trust | |||||||||||||||||
| Portfolio Leased Statistics | |||||||||||||||||
| March 31, 2023 | |||||||||||||||||
| As of: | |||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||
| Commercial Properties | |||||||||||||||||
| Overall Portfolio (1)(2)(3) | |||||||||||||||||
| Gross Leasable Area (GLA) | 25,852,000 | 25,810,000 | 24,936,000 | ||||||||||||||
| Leased % | 94.2 | % | 94.5 | % | 93.7 | % | |||||||||||
| Occupied % | 92.6 | % | 92.8 | % | 91.2 | % | |||||||||||
| Leased % - anchor tenants | 96.5 | % | 96.9 | % | 96.4 | % | |||||||||||
| Leased % - small shop tenants | 90.0 | % | 90.0 | % | 88.7 | % | |||||||||||
| Comparable Properties (1) | |||||||||||||||||
| GLA | 23,315,000 | 23,313,000 | 23,330,000 | ||||||||||||||
| Leased % | 94.0 | % | 94.3 | % | 93.8 | % | |||||||||||
| Occupied % | 92.5 | % | 92.6 | % | 91.7 | % | |||||||||||
| Residential Properties | |||||||||||||||||
| Overall Portfolio (1)(3)(4) | |||||||||||||||||
| Residential units | 2,982 | 2,982 | 3,369 | ||||||||||||||
| Leased % | 96.4 | % | 96.1 | % | 93.0 | % | |||||||||||
| Comparable Properties (1) | |||||||||||||||||
| Residential units | 2,480 | 2,480 | 2,480 | ||||||||||||||
| Leased % | 96.9 | % | 96.3 | % | 97.3 | % | |||||||||||
| Notes: | |||||
| (1) | See Glossary of terms. | ||||
| (2) | Includes our 77.7% pro-rata share of Escondido Promenade. | ||||
| (3) | Excludes redevelopment square footage and residential units not yet placed in service. | ||||
| (4) | Excludes our new residential building at Darien Commons that opened in 4Q22 and is currently in the process of being leased-up for the first time. If these units were included, our total residential units would be 3,103 and 3,039, respectively, and our percentage leased would be 95.0% and 95.7%, respectively, at March 31, 2023 and December 31, 2022. | ||||
25
| Federal Realty Investment Trust | ||||||||||||||||||||||||||
| Summary of Top 25 Tenants (1) | ||||||||||||||||||||||||||
| March 31, 2023 | ||||||||||||||||||||||||||
| Rank | Tenant Name | Credit Ratings (S&P/Moody's/Fitch) (2) | Annualized Base Rent | Percentage of Total Annualized Base Rent (4) | Tenant GLA | Percentage of Total GLA (4) | Number of Locations Leased | |||||||||||||||||||
| 1 | TJX Companies, The | A / A2 / NR | $ | 22,761,000 | 2.72 | % | 1,125,000 | 3.91 | % | 36 | ||||||||||||||||
| 2 | Ahold Delhaize | BBB+ / Baa1 / NR | $ | 14,885,000 | 1.78 | % | 775,000 | 2.70 | % | 12 | ||||||||||||||||
| 3 | NetApp, Inc. | BBB+ / Baa2 / NR | $ | 14,339,000 | 1.71 | % | 304,000 | 1.06 | % | 1 | ||||||||||||||||
| 4 | Splunk, Inc. | NR / NR / NR | $ | 12,271,000 | 1.47 | % | 235,000 | 0.82 | % | 1 | ||||||||||||||||
| 5 | CVS Corporation | BBB / Baa2 / NR | $ | 11,016,000 | 1.32 | % | 288,000 | 1.00 | % | 21 | ||||||||||||||||
| 6 | Gap, Inc., The | BB / Ba3 / NR | $ | 11,001,000 | 1.32 | % | 320,000 | 1.11 | % | 29 | ||||||||||||||||
| 7 | L.A. Fitness International LLC | B- / B3 / NR | $ | 10,807,000 | 1.29 | % | 415,000 | 1.44 | % | 10 | ||||||||||||||||
| 8 | Albertsons Companies Inc. (Acme, Balducci's, Safeway) | BB / Ba2 / NR | $ | 8,455,000 | 1.01 | % | 568,000 | 1.98 | % | 11 | ||||||||||||||||
| 9 | Ross Stores, Inc. | BBB+ / A2 / NR | $ | 7,452,000 | 0.89 | % | 359,000 | 1.25 | % | 13 | ||||||||||||||||
| 10 | Home Depot, Inc. | A / A2 / A | $ | 7,386,000 | 0.88 | % | 478,000 | 1.66 | % | 6 | ||||||||||||||||
| 11 | Kroger Co., The | BBB / Baa1 / NR | $ | 7,166,000 | 0.86 | % | 611,000 | 2.13 | % | 12 | ||||||||||||||||
| 12 | AMC Entertainment Inc. | CCC+ / Caa2 / NR | $ | 7,105,000 | 0.85 | % | 287,000 | 1.00 | % | 6 | ||||||||||||||||
| 13 | Bank of America, N.A. | A- / A2 / AA- | $ | 6,940,000 | 0.83 | % | 118,000 | 0.41 | % | 24 | ||||||||||||||||
| 14 | PUMA North America, Inc. | NR / NR / NR | $ | 6,807,000 | 0.81 | % | 155,000 | 0.54 | % | 2 | ||||||||||||||||
| 15 | Target Corporation | A / A2 / A | $ | 6,310,000 | 0.75 | % | 627,000 | 2.18 | % | 7 | ||||||||||||||||
| 16 | Dick's Sporting Goods, Inc. | BBB / Baa3 / NR | $ | 6,190,000 | 0.74 | % | 279,000 | 0.97 | % | 6 | ||||||||||||||||
| 17 | Ulta Beauty, Inc. | NR / NR / NR | $ | 5,780,000 | 0.69 | % | 169,000 | 0.59 | % | 16 | ||||||||||||||||
| 18 | Michaels Stores, Inc. | B- / B2 / NR | $ | 5,733,000 | 0.69 | % | 316,000 | 1.10 | % | 14 | ||||||||||||||||
| 19 | Bed, Bath & Beyond, Inc. | CCC- / Ca / NR | $ | 5,225,000 | 0.62 | % | 348,000 | 1.21 | % | 9 | ||||||||||||||||
| 20 | Wells Fargo Bank, N.A. | BBB+ / A1 / A+ | $ | 5,167,000 | 0.62 | % | 66,000 | 0.23 | % | 16 | ||||||||||||||||
| 21 | Hudson's Bay Company (Saks) | NR / NR / NR | $ | 5,155,000 | 0.62 | % | 100,000 | 0.35 | % | 3 | ||||||||||||||||
| 22 | Whole Foods Market, Inc. | AA- / A1 / NR | $ | 5,016,000 | 0.60 | % | 167,000 | 0.58 | % | 4 | ||||||||||||||||
| 23 | Starbucks Corporation | BBB+ / Baa1 / NR | $ | 4,874,000 | 0.58 | % | 73,000 | 0.25 | % | 41 | ||||||||||||||||
| 24 | DSW, Inc | NR / NR / NR | $ | 4,870,000 | 0.58 | % | 215,000 | 0.75 | % | 11 | ||||||||||||||||
| 25 | Best Buy Co., Inc. | BBB+ / A3 / NR | $ | 4,837,000 | 0.58 | % | 188,000 | 0.65 | % | 4 | ||||||||||||||||
| Totals - Top 25 Tenants | $ | 207,548,000 | 24.82 | % | 8,586,000 | 29.87 | % | 315 | ||||||||||||||||||
| Total (6): | $ | 836,249,000 | (3) | 28,741,000 | (5) | |||||||||||||||||||||
| Notes: | ||||||||||||||||||||||||||
| (1) | Number of leased locations is based on the gross number of locations. All other top tenant data is reported including our 77.7% share of Escondido Promenade. | |||||||||||||||||||||||||
| (2) | Credit Ratings are as of March 31, 2023. Subsequent rating changes have not been reflected. | |||||||||||||||||||||||||
| (3) | See Glossary of Terms. | |||||||||||||||||||||||||
| (4) | Individual items may not add up to total due to rounding. | |||||||||||||||||||||||||
| (5) | Excludes redevelopment square footage not yet placed in service. | |||||||||||||||||||||||||
| (6) | Totals reflect both the commercial and residential portions of our properties. | |||||||||||||||||||||||||
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| Federal Realty Investment Trust | ||||||||||||||||||||||||||||||||
| Reconciliation of FFO Guidance | ||||||||||||||||||||||||||||||||
| March 31, 2023 | ||||||||||||||||||||||||||||||||
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated FFO per diluted share for the full year 2023. Estimates do not include the impact from potential acquisitions or dispositions which have not closed as of April 30, 2023.
| Full Year 2023 Guidance Range | |||||||||||
| Low | High | ||||||||||
| Estimated net income available to common shareholders, per diluted share | $ | 2.59 | $ | 2.79 | |||||||
| Adjustments: | |||||||||||
| Estimated gain on sale of real estate, net | (0.02) | (0.02) | |||||||||
| Estimated depreciation and amortization | 3.81 | 3.81 | |||||||||
| Estimated FFO per diluted share | $ | 6.38 | $ | 6.58 | |||||||
Note:
See Glossary of Terms. Individual items may not add up to total due to rounding.
| Guidance Assumptions (1): | |||||
| Comparable properties growth | 2% - 4% | ||||
| Comparable properties growth excluding prior period rents and term fees | 3% - 5% | ||||
| Incremental redevelopment/expansion POI (2) | $15 - $18 million | ||||
| General and administrative expenses | $52 - $56 million (annual) | ||||
| 2022 Dispositions POI | $5 million | ||||
| Development/redevelopment capital | $175 - $200 million (annual) | ||||
| Equity to be issued | $150 - $200 million (annual) | ||||
| Capitalized interest | $20 - $22 million (annual) | ||||
Notes:
(1)Does not assume any material changes of tenants moving to or from a cash basis of accounting.
(2)Includes the expected additional POI to be recognized in 2023 compared to the amount recognized in 2022 from all of the redevelopments listed on pages 16 and 17 of our supplemental information document filed on Form 8-K on February 8, 2023. Does not include any additional POI from "Active Property Improvement Projects."
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Glossary of Terms
EBITDA for Real Estate ("EBITDAre"): EBITDAre is a non-GAAP measure that the National Association of Real Estate Investment Trusts ("NAREIT") defines as: net income computed in accordance with GAAP plus net interest expense, income tax expense, depreciation and amortization, gain or loss on sale of real estate, impairments of real estate and change in control of interest, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We calculate EBITDAre consistent with the NAREIT definition. As EBITDA is a widely known and understood measure of performance, management believes EBITDAre represents an additional non-GAAP performance measure, independent of a company's capital structure, that will provide investors with a uniform basis to measure the enterprise value of a company. EBITDAre also approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of net income to EBITDAre for the three months ended March 31, 2023 and 2022 is as follows:
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| (in thousands) | |||||||||||
| Net income | $ | 57,731 | $ | 54,728 | |||||||
| Interest expense | 39,225 | 31,573 | |||||||||
| Other interest income | (632) | (120) | |||||||||
| Income tax provision | 64 | 304 | |||||||||
| Depreciation and amortization | 78,637 | 71,674 | |||||||||
| Gain on sale of real estate | (1,702) | — | |||||||||
| Adjustments of EBITDAre of unconsolidated affiliates | 3,454 | 921 | |||||||||
| EBITDAre | $ | 176,777 | $ | 159,080 | |||||||
Funds From Operations (FFO): FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.
Property Operating Income: Rental income and mortgage interest income, less rental expenses and real estate taxes.
Overall Portfolio: Includes all operating properties owned in reporting period.
Comparable Properties: Represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. Comparable property growth statistics are calculated on a GAAP basis.
Annualized Base Rent (ABR): Represents aggregate, annualized in-place contractual (defined as rents billed on a cash basis without taking the impact of rent abatements into account) minimum rent for all occupied spaces as of the reporting period.
Retail Leasing Summary - Lease Rollover Calculation: The rental increases associated with comparable spaces generally include all leases signed for retail space in arms-length transactions reflecting market leverage between landlords and tenants during the period. The comparison between the rent for expiring leases and new leases is determined by including contractual rent on the expiring lease, including percentage rent, and the comparable annual rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgement as to how to most effectively reflect the comparability of rents reported in the calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, capital investment made in the space and the specific lease structure.
Tenant Improvements and Incentives: Represents the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements.
General: Property related statistics are the for the consolidated property portfolio except where noted.
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