Federal Realty Investment Trust Third Quarter 2016 1 The Ultimate - - PowerPoint PPT Presentation

Federal Realty Investment Trust

Third Quarter 2016

1

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail

destinations

• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

TACTICAL REDEVELOPMENT

• Extensive

remerchandising

• Residential
• pportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth 0.0 – 1.0% GROWTH

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered,

low cost

• Equity judiciously

raised

2

 Generate average of 3.25% of recurring core NOI growth ∙ Same Center POI (including redevelopment) of 4.1% on average over the last three years (better than forecasted in our 10- year business plan) ∙ 2016 expected to be ~3% which is impacted by our active repositioning of larger box space to unlock upside potential  Invest $50M annually in redevelopment, at an 8% yield ∙ Completed and stabilized redevelopments totaling $152M at a weighted average return of 11% creating $150 - $180M of value over our investment, YTD since 2013 ∙ Pipeline of $246 million with a projected weighted average return of 8%  Invest $200M annually in strategic redevelopment at 7% yield ∙ Invested $464 million in the 1st phase of Assembly Row and Pike & Rose which are open and operating ∙ Under construction on Phase 2 of Assembly Row and Pike & Rose totaling $481 million  Strategically acquire $125M annually, at an initial yield of 5% ∙ Since 2014, acquired 5 properties – totaling $420M at an average cap rate of 5.5% ∙ Acquired remaining 70% interest in 6 shopping centers in January 2016 – totaling $154M  Deliver FFO Growth (excluding prepayment premiums) of 7+% on average over a 10 year period ∙ Expect to deliver an average of ~7% FFO growth from 2013 through year end 2016, FFO growth expected to slow for 2017 as we continue to unlock value across the portfolio in order to meet our long term goals

Business Plan Update & Outlook

Visibility on NOI Growth: The Next Decade

1 Future results may differ from forecasts due to a variety of factors

We continue to deliver on our October 2013 plan to double NOI in 10 years.

The Ultimate Balanced Business Plan

Delivering On Our Plan

Acquisitions Future Mixed-Use Current Mixed-Use Redevelopment SSNOI Baseline NOI

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail

destinations

• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

5 TACTICAL REDEVELOPMENT

• Extensive

remerchandising

• Residential
• pportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth 0.0 – 1.0% GROWTH

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered,

low cost

• Equity judiciously

raised

Anchor Rollover Unlocks Significant Value(1)

Short term earnings dilution leads to long term value creation

6 Total Square Feet Vacant 730,000 Average Prior Rent PSF $19.75 Percent Released 42% Rollover Percentage 37% Expected Rollover on Remaining SF 15 – 20% Average Downtime ~12 - 24 months

Executed Leases Rent Commencement Schedule(2) Leasing Update

(1) Reflects space vacant during 3Q 2016 (2) Reflects managements current estimates, actual results may differ.

High Quality Tenants

$1.2 $1.3 $1.5 $1.7 $1.9 $1.9 $2.1 $2.1 $8.4 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Annual 2019

Core Markets

Strategic Metropolitan Markets

SOUTH FLORIDA SAN JOSE / SAN FRANCISCO LOS ANGELES BOSTON NEW YORK WASHINGTON, DC BALTIMORE PHILADELPHIA

7

Source: Bank of America-Merrill Lynch Research, May 2016

Exposure to the Nation’s Top Twenty Markets

(1) Metropolitan Statistical Area

8

77.1% 63.1% 61.9% 59.4% 55.5% 44.3% 39.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% FRT REG EQY KIM WRI BRX DDR Exposure to Top 20 MSAs

Peer Group Average: 53.9%

FRT has the greatest concentration of assets in the nation’s top 20 markets(1), which comprise 37% of U.S. retail expenditures…

How Will Our Core Perform?

As Always, Location Matters Unmatched combination of density and affluence sets our centers apart

Source: Bank of America-Merrill Lynch Research, May 2016

9

DDR EQY FRT KIM REG WRI BRX Peer Average National Average $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Median Household Income in a 3 Mile Radius Households Per Square Mile

Demographic Case Studies

3-Mile Radius

10

Population

1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row Bethesda, MD Third Street Promenade Santa Monica, CA Population Growth 141,179 125,526 129,375 122,404 5.9% 147,475 158,858 150,852 133,333 12.5% 1.2% 151,659 156,943 4.7%

Source: ESRI

Average Household Income

1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row Bethesda, MD Third Street Promenade Santa Monica, CA 14.5% $116,752 379.7% $24,341 $60,532 $89,043 $101,963 $195,224 372.1% Average Household Income Growth 26.6% $41,352 $89,612 $134,115 $154,156

Premier Operating Portfolio

Our portfolio achieves the highest cash rents in the sector, ~60% higher than our peer group average…

Source: Company Filings

11

$26.67 $20.80 $19.78 $17.72 $14.94 $14.92 $12.90 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 FRT EQY REG WRI KIM DDR BRX Peer Group Average: $16.84

Superior Visibility on Growth

How does recent leasing compare to in-place rents? Average Rent of New Leases vs. Average In-Place Rents 2011 – YTD 2016

12

Source: Company Filings Note: BRX excluded due to insufficient historical data.

$0 $5 $10 $15 $20 $25 $30 $35 FRT REG EQY WRI DDR KIM Avg In Place Avg New Lease 31.9% 14.6% 6.4% 7.0% 12.1% 12.4%

Proven History of Outperformance

Superior Rollover Growth Compared to Peer Group …and significantly higher rollover growth than our peers.

Source: Company filings (1) Only included in peer group results for periods in which data was reported (2) BRX data available as of 2013

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17% 22% 14% 16% 13% 15% 18% 22% 18% 20% 21% 10% 8% 9% 13% 20% 16% 17% 13% 16% 8% 18% 13% 12% 9% 8% 10% 9% 10% 14% 12% 0%

• 1%

2% 6% 10% 10% 11% 13% 9%

• 5%

0% 5% 10% 15% 20% 25% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 '98-YTD '16 Avg Average Increase Over Prior Year Rent Federal Realty Peer Group Average: DDR, REG, WRI(1), KIM(1), EQY, BRX(2)

Proven History of Outperformance

Superior Same Store Growth Compared to Peer Group Average Same Store Growth: 2005 – YTD 2016

Source: Company Filings Note: Same store growth figures include redevelopments. BRX excluded due to insufficient historical data.

14

3.8% 2.5% 2.3% 2.2% 2.0% 1.8% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% FRT WRI EQY KIM REG DDR

TACTICAL REDEVELOPMENT

• Extensive remerchandising
• Residential opportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

15 SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth 0.0 – 1.0% GROWTH

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered,

low cost

• Equity judiciously

raised

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail

destinations

• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

• Approximately $152 million
• f redevelopment completed

from 2013 through 2016 creating $150-180 million of value over our investment

• $246 million of tactical

redevelopment currently underway with a projected weighted average return of 8%

Chelsea Commons Residential Westgate

16

Enhancing The Core: Redevelopment

Delivering On Our Plan

Current Tactical Redevelopment Pipeline

17

Projected Projected Cost to Anticipated Property Location ROI Cost Date Stabilization The Point El Segundo, CA 8% $88 $84 2017 Congressional Plaza Rockville, MD 7% $23 $22 2016 Westgate Center San Jose, CA 9% $21 $21 Stabilized Towson Residential Towson, MD 6% $20 $5 2018 Plaza Del Mercado Silver Spring, MD 8% $16 $8 2017 Tower Shops Davie, FL 12% $15 $13 2017 Melville Mall Huntington, NY 6% $15 $11 Stabilized Del Mar Village Boca Raton, FL 7% $11 $3 2018 Montrose Crossing Rockville, MD 11% $10 $0 2018 Santana Row San Jose, CA 7% $5 $4 2017 The AVENUE at White Marsh White Marsh, MD 10% $5 $3 2017 Willow Lawn Richmond, VA 8% $5 $4 Stabilized Eastgate Crossing Chapel Hill, NC 8% $4 $1 2017 Free State Shopping Center Bowie, MD 8% $4 $3 2017 Mercer Mall Lawrenceville, NJ 10% $2 $1 2016 Wynnewood Wynnewood, PA 7% $2 $2 Stabilized Total Active Redevelopment projects 8% $246 $185 Façade and interior mall renovation, addition of food court and pad site New 105 unit 5-story apartment building with above grade parking Demolition of former grocery anchor space to construct spaces for new grocery anchor and fitness center tenants Opportunity Addition of 90,000 square feet of retail and 25,000 square feet of office space New 48 unit rental apartment building and conversion of office space into 39,000 square feet of retail anchor space to accommodate new tenant Demolition of 10,000 square foot restaurant building to construct an 18,000 square foot multi-tenant pad building Addition of two retail kiosks and open air plaza upgrades Addition of two new pad sites totaling 13,000 square feet, a new 3,600 square foot restaurant building, and a drive up ATM Construction of two new in-line retail spaces totaling 17,400 square feet Addition of 50,000 square foot pad building Redevelopment of 92,000 square foot vacant anchor space to convert into two anchor spaces for a value retailer and a sporting goods tenant and revamp current anchor space Demolition of small shop spaces and relocation of tenants to accommodate new 37,000 square foot fitness center tenant New 7,400 square foot multi-tenant pad building on site of existing gas station Demolition of 26,000 square foot vacant building to allow for construction of new 12,500 square foot pad building for new daycare tenant Demolition of existing 3,000 square foot pad building to allow for construction of a multi-restaurant pad building totaling 5,600 square feet Conversion of obsolete 2nd floor office space to residential

1.5 Miles les t to Manh anhat attan B n Beac ach MANHATTAN BEACH

18

The Point at Plaza El Segundo

El Segundo, CA

Value Delivered Now

Plaza El Segundo & The Point at Plaza El Segundo

19

Before Redevelopment Redevelopment After Redevelopment Total Combined Investment $209 million + $75 million = $284 million Total Combined NOI $12 million + $8 million = $20 million Incremental Value Creation*: $100 million

*Assumes 4.5% cap rate

PLAZA EL SEGUNDO THE POINT

Rosecrans Avenue

20

The Point at Plaza El Segundo

El Segundo, CA

• Additional 115,000 square feet of retail

and office space

• Ideally

located at the prominent intersection

• f

Rosecrans Ave & Sepulveda Blvd. in El Segundo, CA

• Expected to stabilize in 2017
• Tenants open include:

Lucky Brand Soul Cycle Mendocino Farms North Italia Michael Stars ShopHouse True Food Kitchen Lou & Grey Athleta

Enhancing The Core: Redevelopment

Tower Shops & Mercer Mall

21

Before Redevelopment Redevelopment After Redevelopment Total Combined Investment $175 million + $40 million = $215 million Total Combined NOI $14 million + $7 million = $21 million Incremental Value Creation*: $100 million

*Assumes no cap rate compression

Tower Shops in Davie, FL 394,000 square feet Acquired 2011 Mercer Mall in Lawrenceville, NJ 528,000 square feet Acquired 2003

Tower Shops

Enhancing The Core: Redevelopment

22

• Implemented remerchandising

strategy

• Canopy renovations and site

improvements

• Created & leased pad site on

the back of the Property (A)

• New 50,000 square feet

building built with Trader Joe’s as the anchor (B)

• Additional opportunities

possible for the future….

A B B

Tower Shops

Enhancing The Core: Redevelopment

23

AFTER BEFORE AFTER

Mercer Mall

Enhancing The Core: Redevelopment

• Began implemented

remerchandising strategy in 2009

• Installed 1.5 megawatt solar

roof and parking panel system

• Developed pad site for PNC

Bank

• Replaced Office Depot with

Nordstrom Rack and hhgregg with REI which opened in 2015 and improved overall merchandising for the property

• Additional construction and

development currently underway to add 2 new restaurants

Mercer Mall

Enhancing The Core: Redevelopment

25

BEFORE AFTER

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail destinations
• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

26 TACTICAL REDEVELOPMENT

• Extensive

remerchandising

• Residential
• pportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth 0.0 – 1.0% GROWTH

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered,

low cost

• Equity judiciously

raised

Mixed-Use Investment Underway

A Robust Pipeline that Delivers Near Term

27

(1) See filed 8-k for additional disclosure and footnotes Projected Total Costs to Property ROI Cost Date 2016 2017 2018 2019 Expected Opening Timeframe Assembly Row Phase I 5-6% $196 Complete 90% 100% 100% 100% Phase II 7% $270 - 285 $175

• 50%

90% Opening projected 3Q 2017 through 2Q 2018 741,500 SF Partners Healthcare office space (built by Partners) opened in 2016 Condos

• $70 - 75

$21 Projected closings to commence 2Q 2018 Pike & Rose Phase I 6-7% $265-270 $264 50% 75% 90% 100% Retail & office open Residential opened in 2014 (174 units) and 2015/16 (319 units) Phase II 6-7% $200 - 207 $81

• 65%

85% Opening projected 3Q 2017 through 2Q 2018 Condos

• $53 - 58

$19 Projected closings to commence 2Q 2018 Santana Row 700 Santana Row 7% $205 - 215 $14

• TBD

Commencing construction 4Q 2016 Opening projected 2019 Projected POI Delivered (as a % of Total) For Year Ended December 31,

Phase II Residential Projects

The Henri & The Montaje

28

THE HENRI at Pike & Rose 272 Apartment Units 45,000 SF of Retail THE MONTAJE at Assembly Row 447 Apartment Units 40,000 SF of Retail

719 residential units delivering in the second half of 2017… …Which will be drag on 2017 NOI but creates long term value

Mixed Use Value Creation

Santana Row Since 2012

29

Levare

108 Unit Residential Building

Misora

212 Unit Residential Building

Splunk Building

Class A Office Building

Total Cost $35 million $76 million $113 million ROI 9% 8% 9% Incremental Value Creation $35 million $60 million $100 million

(1)

(1) Value of NOI less Cost. Assumes at 4.5% cap rate.

The last three projects at Santana Row have created $195 million of incremental value for the property… … This is not possible without the creation of the “right street”

30

Assembly Row

Somerville, MA

Assembly Row

Somerville, MA

31

Project Totals:

• 824,000 SF Total Retail
• 98,000 SF Total Office
• 447 Residential Units
• 122 For Sale Condos
• 159 Hotel Rooms
• 445 AvalonBay Owned Residential Units
• 741,500 SF Partners Healthcare Owned Office

Assembly Row

Update

32

 100% of Phase 1 retail GLA occupied

∙ Tenants significantly exceeding sales targets

 Office space 100% occupied  All-in there will be over 6,000 employees at Assembly Row by mid 2017

∙ Partners HealthCare has moved ~2,000 of 4,500 employees into their new building, additional ~2,500+ employees on track to move in by early 2017

 Broke ground on $280 million Phase 2 with an expected return of 7%...

Assembly Row

Update

33

 100% of Phase 1 retail GLA occupied

∙ Tenants significantly exceeding sales targets

 Office space 100% occupied  All-in there will be over 6,000 employees at Assembly Row by mid 2017

∙ Partners HealthCare has moved ~2,000 of 4,500 employees into their new building, additional ~2,500+ employees on track to move in by early 2017

 Broke ground on $280 million Phase 2 with an expected return of 7%...

Assembly Row

Phase 2 Underway

34

• 161K SF of retail
• 447 luxury residences
• 159-room boutique hotel
• 122 for-sale condominiums
• 741K SF of office space

(Partners’ Healthcare Building)

• Projected opening: late

2017/2018

Projected ROI: 7% Total Cost: $270–$285M

35

Assembly Row

Somerville, MA

Pike & Rose

Phase 2 Underway

36

Pike & Rose

North Bethesda, MD

37

Project Totals:

• 387,000 SF Total Retail
• 80,000 SF Total Office
• 765 Total Residential Units
• 99 For Sale Condos
• 177 Hotel Rooms

Pike & Rose

Update

 Retail 100% occupied  Office space is 100% occupied ∙ Achieved average rents of $43  Broke ground on Phase 2 ∙ Additional 450 parking spaces delivered in Q4 2015  319 unit high-rise Pallas delivered in Q2 2016  Phase 1 residential is 90% leased  Retailers include:

Del Frisco’s Grille Carluccio’s Summer House & Stella Barra iPic Theaters AMP by Strathmore Francesca’s Gap / GapKids Roti La Madeleine Sport & Health Seasons Olive Oil Lucky Brand ShopHouse &Pizza Nike

38

Pike & Rose Residential Premiums

39

Despite softness in the Montgomery County residential market, Pike & Rose residential is still commanding a 10 – 15% premium to the market.

Pike & Rose

Phase 2 Underway

40

• 216K SF of retail
• Signed anchors REI, H&M

Pinstripes

• Pre-leased Porsche dealership

building

• 177-room Canopy by Hilton lifestyle

brand hotel

• 272 luxury residences
• 99 for-sale condominiums
• Projected opening: late 2017/2018

Projected ROI: 6 – 7% Total Cost: $200–$207M

Apple Google Stanford Santa Clara Sunnyvale 500 Santana Row 41

Santana Row

700 Santana Row

Santana Row

700 Santana Row

42

1 Value of NOI less capital. Assumes a 4.5% cap rate.

• 284,000 square foot class-A office building
• 1,300 parking spaces
• 29,000 square feet of retail
• $205 - 215 million total investment at expected return of 7%
• $115 million of total value creation1

43

Santana Row

500 Santana Row

1 Value of NOI less capital. Assumes a 4.5% cap rate.

• 234,500 square foot class-A office building, with 670 parking

spaces

• 100% pre-leased to Splunk, Inc. (SPLK) in August 2015
• $110-115 million total investment at expected return of 9%
• $100 million of total value creation1

44

Santana Row

San Jose, CA

Lot 11

• ffice/retail

Lot 9

• ffice/retail

Lot 12 residential Future Development Development Underway

Santana West

SANTANA ROW & SANTANA WEST FUTURE

Santana Row Santana West Potential Future Investment: $200M - $250M 1 $400M - $500M 1 Remaining Entitlements: Zoning Envelope:

• 321K SF commercial

▪ 950,000 SF

• 395 residential units

▪ Retail, hotel, office, residential ▪ 12 acres ▪ In process of obtaining entitlements

45

Santana Row & Santana West

Future Opportunities

1 Represents an estimate of future phases. Actual investment may differ.

Shadow Pipeline of Mixed-Use Opportunities

Infill Locations Support Even More Value Creation

46

Future Property Location Acreage Commercial Residential Hotel Potential SF1 Assembly Row Somerville, MA 44 597,000 447 apts 160 rms 2.5M Bethesda Row Bethesda, MD 12 534,000 180 apts

• 420k

Pike & Rose North Bethesda, MD 24 430,000 765 apts 177 rms 1.7M Santana Row San Jose, CA 56 510,000 662 apts 215 rms 1.6M Village at Shirlington Arlington, VA 30 261,000

• 200k

Federal Plaza Rockville, MD 18 251,000

• 1.5M

Pan Am Fairfax, VA 25 227,000

• 500k

Pike 7 Tysons Corner, VA 13 164,000

• 2.0M

Rollingwood Silver Spring, MD 14

• 282 apts
• 670k

CocoWalk Coconut Grove, FL 3 198,000

• 80k

Darien Darien, CT 9 95,000

• 220k

Montrose Crossing North Bethesda, MD 35 363,000

• 2.5M

San Antonio Center Mountain View, CA 31 365,000

• 2.7M

Shops at Sunset Place South Miami, FL 10 515,000

• 200k

Total 15 Properties 324 4,510,000 2,336 apts 552 rms 17M Current/In Process SF

1 Potential SF are estimates. Actual SF could differ significantly when final redevelopment plans are completed.

Our mixed-use development pipeline consists of over 300 acres of land, with $3.5 - $4.5 billion of re/development potential over the next 15 years....

CocoWalk & The Shops at Sunset Place

Pipeline of Mixed Use Development

47 SOUT OUTH MIAMI MI CORAL G L GABLE LES COCONUT ONUT G GROV OVE CORA ORAL W WAY WEST F FLAGL GLER ER LITTL TTLE H HAVANA THE R HE ROADS BRI BRICKELL DOW OWNT NTOWN VIR IRGINIA IA K KEY KEY B BISC ISCAYNE THE S HE SHOPS A AT SUNSE SET P PLACE CE CO COCO COWALK

• Occupies 3 acres at the prominent

intersection of Main Highway, McFarlane Road and Grand Avenue ∙ Approximately 4 miles from downtown Miami ∙ Located in the Grove District – one of the densest and most authentic neighborhoods in Miami-Dade

• Year-round South Florida demographics

(3 miles): ∙ Population: 140,171 ∙ Average HHI: $89,122 ∙ Daytime Population: 94,998

48

1 Represents an estimate of future phases. Actual investment may differ.

CocoWalk

Pipeline of Mixed-Use Development

• Planned mixed-use redevelopment buildable as-of-right.
• Lease encumbers site through 2023 (negotiations underway to gain control early).

• Located on Route 1 in South Florida

∙ Superior location and visibility next to mass transit and the University of Miami

• Year-round South Florida demographics (3

miles): ∙ Population: 100,389 ∙ Average HHI: $118,806 ∙ Daytime Population: 80,009

• Planning discussions underway for mixed-use

entitlements.

• Lease encumbers site through 2024

(negotiations underway to gain control early).

49

1 Represents an estimate of future phases. Actual investment may differ.

The Shops at Sunset Place

Pipeline of Mixed-Use Development

• AERIAL

50

Darien

Pipeline of Mixed-Use Development

• Located at Exit 10 of I-95 in Darien, Fairfield County, Connecticut
• 9 acres
• Directly across from Noroton Heights train station (services more than 300,000

passengers annually)

• Demographics (3 miles):
• Population: 100,161
• Average HHI: $136,761
• Daytime Population: 86,490
• Zoning approval received in August for ground floor retail with 2 floors of residential

above

• Potential Future Investment: $70M - $95M1
• Lease encumbers site through 2024 (negotiations underway with tenant to gain

control early)

51

1 Represents an estimate of future phases. Actual investment may differ.

Pipeline of Mixed-Use Development

Darien

SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth

0.0 – 1.0% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

52

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered,

low cost

• Equity judiciously

raised

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail

destinations

• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

TACTICAL REDEVELOPMENT

• Extensive

remerchandising

• Residential
• pportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

Acquired: October 2015 515,000 sf lifestyle center / 10 acres

Shops at Sunset Place

Seeing Beyond the Acquisition

Delivering on our Plan

Acquisitions generate accretion, visible income growth and potential for long term value creation.

Acquired: May 2015 198,000 sf lifestyle center / 3 acres

CocoWalk

53

Acquired: January 2015 376,000 sf neighborhood center / 33 acres

San Antonio Center

Seeing Beyond the Acquisition

Clarion Acquisition

54

Current Redevelopment Opportunities Transaction Overview

• Acquired Clarion’s 70% interest in the

partnership in January 2016

• 6 shopping centers – 820,000 SF total:
• Barcroft Plaza, Falls Church, VA
• Free State Shopping Center, Bowie, MD
• Plaza del Mercado, Silver Spring, MD
• Greenlawn Plaza, Greenlawn, NY
• Atlantic Plaza, North Reading, MA
• Campus Plaza, Bridgewater, MA

Plaza Del Mercado

Cost: $16 million ROI: 8% Demolition of former grocery anchor space to construct spaces for new grocery anchor and fitness center tenants

Free State Shopping Center

Cost: $4 million ROI: 8% Demolition of 26k SF vacant building to allow for construction of new 12.5k SF pad building for new daycare tenant

STRATEGIC REDEVELOPMENT

• Larger scale
• Proven retail

destinations

• Often mixed-use
• In our control today

1.5 – 2.0% GROWTH

The Ultimate Balanced Business Plan

…With A Clear Path To Value Added Growth

55 TACTICAL REDEVELOPMENT

• Extensive

remerchandising

• Residential
• pportunities
• Additional GLA
• Pad opportunities

0.5 – 0.75% GROWTH

CONSERVATIVE LOW COST OF CAPITAL STRUCTURE

• Low leverage
• Long track record
• Debt: fixed, laddered, low

cost

• Equity judiciously raised

SELECTIVE ACQUISITIONS

• Future raw material
• Only the best locations
• Leasing and

redevelopment growth 0.0 – 1.0% GROWTH

SAME CENTER SHOPPING CENTER PORTFOLIO

• Best in the business
• Significant “mark to market”

upside

• Raw material for

redevelopment

• Careful pruning of bottom

10%

“THE CENTER OF THE UNIVERSE”

3.0 – 3.5% GROWTH

Growth with Solid Foundation

Conservative Capital Structure Supports Growth Strategy

• Debt to market cap of 20%
• Net debt to EBITDA of 5.2x and fixed charge coverage of 4.6x
• Well laddered maturity schedule with a weighted average tenor of over 11 years
• Continue to retire mortgages as they mature to increase property level flexibility
• In July 2016, opportunistically issued $250 million of 30-year senior unsecured notes at a

coupon of 3.625% and an effective rate of 3.750%

• Raised $150 million of common equity in an overnight offering in March 2016
• In April 2016, upsized revolving credit facility to $800 million, extended to April 2020, and pricing

lowered to LIBOR + 82.5 bps in April 2016

• Funding future capital needs through a combination of excess cash flow, unsecured notes, and

moderate equity through our ATM all while maintaining consistent debt to EBITDA and interest coverage metrics

• Maximizing flexibility by phasing and conservatively funding our mixed-use investments

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Conservative Capital Structure

How does Federal Realty compare to its peers?

57

Source: Company Filings, SNL Financial

Debt to Market Cap Net Debt to EBITDA

20% 31% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% FRT Peers 5.2x 5.9x 4.4x 4.6x 4.8x 5.0x 5.2x 5.4x 5.6x 5.8x 6.0x FRT Peers

Well Laddered Maturity Schedule

How does Federal Realty compare to its peers?

58

Source: Company Filings, SNL Financial

FRT

BRX DDR KIM WRI SPG BXP EQR FRT 3/31/14

Peer Group Average

3.60 3.80 4.00 4.20 4.40 4.60 4.80 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Weighted Average Interest Rate (%) Weighted Average Debt Maturity

History of Stability

Stable Balance Sheet Offers Maximum Flexibility

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Source: Company Filings

Fixed Charge Coverage vs. % Variable Debt

4.6x 4.4x 3.6x 3.6x 3.5x 2.5x 0% 5% 10% 15% 20% 25% 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x FRT EQY REG WRI BRX DDR Fixed Charge Ratio % Variable Debt

Consistent Results

Consistent Bottom Line Results Throughout Volatile Market Environments

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Source: Company Filings, SNL Financial 1) 3Q 2016 Annualized.

6.1%

• 0.9%
• 1.6%
• 1.9%
• 2.8%
• 9.9%

60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0% 74.0% 76.0%

• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% FRT REG KIM WRI EQY DDR Dividend CAGR (2005 - 2016(1)) 2016 FFO Payout Ratio

Proven History of Outperformance

Solid Foundation with Property Level Outperformance Delivers to the Bottom Line

Cumulative Change in FFO per Share Since 2005

Source: SNL Financial, Company Filings

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84.6%

• 24.9%
• 23.4%
• 31.0%
• 16.9%
• 61.2%
• 100%
• 80%
• 60%
• 40%
• 20%

0% 20% 40% 60% 80% 100% 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016E FRT REG EQY KIM WRI DDR

$0.12 $3.92

1967 2016

49 Consecutive Years of Increased Annual Dividends

The Longest Record in the REIT Industry Current Annualized Dividend Per Share: $3.92

DIVIDENDS

Dividend Growth

1967 – 2016

62

Asian and Russian financial crisis

1998

Inflation in U.S. hits 14.8%

1980

Inflation hits 40- year low of 1.1%

2004

Great Recession

2009

OPEC imposes

• il embargo on

the U.S.

1973

Safe Harbor Language

Federal Realty Investment Trust

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

• n Form 10-K filed on February 9, 2016, 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;

• risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of

anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;

• risks that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical

aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;

• 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;
• risks associated with general economic conditions, including local economic conditions in our geographic markets;
• risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us,
• ur 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; and

• 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
• f 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. 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 may be 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 carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 9, 2016.

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CORPORATE HEADQUARTERS

1626 East Jefferson Street Rockville, MD 20852-4041 PH 301.998.8100 FX 301.998.3700

REGIONAL OFFICES

BOSTON 450 Artisan Way, Suite 320 Somerville, MA 02145 PH 617.684.1500 FX 617.623.3601 LOS ANGELES 710-B South Allied Way El Segundo, CA 90245 PH 310.414.5280 FX 310.333.0766 PHILADELPHIA 50 East Wynnewood Road, Suite 200 Wynnewood, PA19096 PH 610.896.5870 FX 610.896.5876 SAN JOSE 356 Santana Row, Suite 1005 San Jose, CA 95128 PH 408.551.4600 FX 408.551.4616

www.federalrealty.com