On this page of StockholderLetter.com we present the latest annual shareholder letter from FEDERAL REALTY INVESTMENT TRUST — ticker symbol FRT. Reading current and past FRT letters to shareholders can bring important insights into the investment thesis.

Dear Fellow Shareholders, The technological leaps being made around artificial intelligence (AI) are impr essive, and its application is being broadly applied across nearly every business. Ours is no exception . From simplifying the abstracting of leases to speeding up the architectural design of tenant spaces to improving the efficiency of building HVAC and other systems, AI is flexing its muscles in ways we only dreamed about a few years ago. So when my team suggested using AI tools to write this letter to you, I said, "Sure! Let's see what it can come up with." And that's where its limitations were exposed. The result was perfect grammar, wonderful sentence composition, and lots of factual statements. I was struck by the notion that the letter could apply to many companies . In other words, it was pretty darn generic. I couldn't he lp but draw a parallel with the shopping center business. As you travel from city to city and suburb to suburb around the country and look for a place to buy groceries, shop for a new pai r of jeans, get a meal, or even a cup of coffee, it's not hard to imagine the oft-repeated feeling of deja vu . The reality is that most shopping centers across the country feel very similar. Generic if you will. The same retailers and restaurants offering the same products and services in the same clinical way. It's what has happened over the last 30 years in retail, and it is efficient, just like AI. But what if you believe, as we at Federal Realty do, that being a lb it different and a bit more special can make for a more valuable shopping center? to create a great shopping center , and that's where Federal Realty comes in. At Federal, the combination of a strong anchor system, unique best-in-class restaurant and retail operators in the adj acent spaces, and placemaking expertise that creates a fami l iar and comfortable environment to spend time in all work together to create a shopping experience different from others. In othe r words, not generic. We've refined t hese attributes over our 60-plus-year history, and it has resulted in a reputation for excellence and confidence in execution from retailers, brokers, and others that is both the envy of our i ndustry and can serve as a springboard into new markets and opportunities that we've just begun to explore. New acquisitions like Virginia Gateway in Gainesville, Virgin ia; The Shops at Pembroke Gardens in Pembro ke Pines, Florida; and our latest, De l Monte Shopping Center in Monterey, Californiia, all reflect that vision. Under-managed, under-tenanted shopping centers that could be so much more based on the demographics of the customer that they are (or cou ld be) serving. The common thread is one of a more affluent but underserved customer in a dominant, well-located shopping center, now in the hands of Federal Realty, with its long-proven track record of creating best-in-class retail destinations. That formu la led to a very successful 2024. The chain retailers that dominate the retail landscape are enor mously important to the viabill ity and traffic generation of a retail destination, and it's why the TJX Companies (TJ Maxx, Marshalls, HomeGoods, and Sierra Trad i ng) and grocer Ahold Delhaize (Giant Food, Stop & Shop and others) are our largest and second-largest tenants, respectively. These great operators serve as important ancho rs for the shopping center and generate increased traffic from their loyal customer bases . But it takes more than a great anchor FED ERA L REALTY I AN N U A L R E P 0 R T 2024
INDUSTRY-LEADING CONSISTENCY 57 consecutive years of increased dividends. $ 4 .40 . 2 : ~ i 11111111111111111111111111 2024 1967 *Annualized dividends per share A lo o k Back 2024 was an extremely successful year for the company with strong results across the board . We delivered funds from operations per common share of $6.77, a company record. 1 We completed leases for nearly 2.4 million squar e feet of comparable space, a company record . We hit leased occupancy of 96.2% and physiical occupancy of 94.1 %, levels we haven't seen in nearly 20 years. We stabilized four redevelopments while progressing work on our remaining $785 million redevelopment pipeline. We saw the benefit of the return-tooffice movement with increased demand for our remaining office mixed-use product and ended the year with 1 Santana West and 91 5 Meeting Street at Pike & Rose at 82% and 91 % committed, respectively, under signed leases and heavily negotiated LOis. We acquired two new assets, Virgin ia Gateway in Gainesville, Virg inia and Pinole Vista Crossing in Pinole, Cal ifornia, investing $275 million at a combined return in the low 7% range, a return 1 well in excess of what those prope rties would trade at today and well in excess of our cost of capital , even with today' s elevated interest rates. We lowered our leverage through opportunistic ATM issuances, which funded accretive acquisitions, selective asset sales, and growing free cash flow, and ended the year with $ 1.4 billii on of liquidity to support our growth in 2025. You get the point. Our multi-faceted business plan delivered results across all fronts in 2024. And of course, what I believe to be our most remarkable achievement-increasing our dividend to common shareholders for the 57th consecutive year. No other REIT comes close (the next highest is 3 1 years), and only 1 3 publ icly traded S&P 500 companies surpass this record , many of which are household names in industrial and consumer goods. Unlike industrial and consumer goods compan ies that can raise prices with inflation, real estate-built on long-term , fixed-rent contracts-demands a different strategy. Our FFO is a non-GAAP financial measure. See page 46 of our Form 10-K f or information on FFO and FFO per share. FEDE R AL REALTY I AN N UAL REP 0 R T 2 0 24
ability to consistently grow dividends year after year stems from the strength of our super ior real estate. Real estate that allows us to capture higher rents as tenant leases expire and to negotiate str ong rent increases during the lease terms. And real estat e that is supported by a resilient balance sheet that allows for growth through multiple economic cycles- a true testament t o our foundation that has been built over the past si x decades. looking Ahead For the past 20 years, our goal has remained the same : deliver a steady stream of growing cash flow through the inevitable highs and lows of economic cycles. What has evolved is how we adjust our playbook to address those cycles. We've purposefully maintained multiple growth strategies through the years- acquiring new assets, developing from the ground up, and redeveloping existing assets. In 2025, we plan to draw on all of these strategies to drive conti nued growth. On the acquisition f ront, we're off to a strong start with the recent acquisition of Del Monte Shopping Center, a 674,000-square foot grocery-anchored lif estyle center in Monterey, California. We saw in Del Monte a unique opportunity to acquire the dominant propert y in an affluent trade area where the quality of avai lable retail doesn't satisfy the consumer demand. There was nothing better than getting confirmation of that thesis during the due di ligence process when a local broker said there were tenants who had not considered this property or the Monterey market in gener al, but would do so now because Federal owns the property. Not only a validation of our thes is on the opportunity at this property, but a wonderful reminder of Federal's stellar reputation among retail tenants and the brokerage community. We look forward to better serving that affluent Monterey consumer and see a lot of additional opportunities in 202 5 to explore other affluent markets where we can acquire the domi nant retail property and use our un ique skill sets to ensure that the property better services its affl uent consumer. On the development front, we recently announced the start of a $45 million ground-up development of residential over ret ail at one of our properties in Hoboken, New Jersey, and hope to be able to announce at least one other residential project at an existing property later this year. Through our redevelopment capab ilities, we focus on keeping existing assets relevant for today's retailers and consu mers, and you can see that at the recently announced re-tenanting and reimagination of a portion of our Andorra Shopping Center in Phi ladelphia, Pennsylvania, and the soon to be completed total redo of Huntington Shopping Center in Huntington, New York. The com mon denominator for all of these projects is t hat they start with welllocated properties-properties that can support vertical densification and properties where there is sufficient consumer and tenant demand to support the rents needed for development and redevelopment. And , as importantly, they can all be created and executed by an internal team with a wide range of expertise, a competitive advantage that few other companies can match. As we head into 2025 , challenges remainpersistent inflation, higher but historically normal interest rates, and an economy supported largely by the spending of more affluent consumers. A new administration in Washington has shaken things up in its initial mont hs in office, and that is adding uncertainty into ithe mix with very little clarity at this point for what the impacts-both positive and negative-of that shake-up may be. Through it all, our management team remains focused and nimble, with one clear goal in mind: creating real estate value for our shareholders. FED E R A L REALTY I AN N U A L R E P 0 R T 2024
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 FRT Stockholder Letter
 • stockholder letter icon 3/22/2024 FRT Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon FRT Benford's Law Stock Score = 96


FRT Shareholder/Stockholder Letter Transcript:



Dear Fellow
Shareholders,
The technological leaps being made around
artificial intelligence (AI) are impr essive, and
its application is being broadly applied across
nearly every business. Ours is no exception .
From simplifying the abstracting of leases to
speeding up the architectural design of tenant
spaces to improving the efficiency of building
HVAC and other systems, AI is flexing its
muscles in ways we only dreamed about a few
years ago. So when my team suggested using
AI tools to write this letter to you, I said,
"Sure! Let's see what it can come up with."
And that's where its limitations were exposed.
The result was perfect grammar, wonderful
sentence composition, and lots of factual
statements. I was struck by the notion that
the letter could apply to many companies . In
other words, it was pretty darn generic. I
couldn't he lp but draw a parallel with the
shopping center business. As you travel from
city to city and suburb to suburb around the
country and look for a place to buy groceries,
shop for a new pai r of jeans, get a meal, or
even a cup of coffee, it's not hard to imagine
the oft-repeated feeling of deja vu . The reality
is that most shopping centers across the
country feel very similar. Generic if you will.
The same retailers and restaurants offering
the same products and services in the same
clinical way. It's what has happened over the
last 30 years in retail, and it is efficient, just
like AI. But what if you believe, as we at
Federal Realty do, that being a lb it different
and a bit more special can make for a more
valuable shopping center?
to create a great shopping center , and that's
where Federal Realty comes in.
At Federal, the combination of a strong
anchor system, unique best-in-class restaurant
and retail operators in the adj acent spaces,
and placemaking expertise that creates a
fami l iar and comfortable environment to
spend time in all work together to create a
shopping experience different from others. In
othe r words, not generic. We've refined t hese
attributes over our 60-plus-year history, and it
has resulted in a reputation for excellence and
confidence in execution from retailers,
brokers, and others that is both the envy of
our i ndustry and can serve as a springboard
into new markets and opportunities that
we've just begun to explore.
New acquisitions like Virginia Gateway in
Gainesville, Virgin ia; The Shops at Pembroke
Gardens in Pembro ke Pines, Florida; and our
latest, De l Monte Shopping Center in
Monterey, Californiia, all reflect that vision.
Under-managed, under-tenanted shopping
centers that could be so much more based on
the demographics of the customer that they
are (or cou ld be) serving. The common thread
is one of a more affluent but underserved
customer
in
a
dominant,
well-located
shopping center, now in the hands of Federal
Realty, with its long-proven track record of
creating best-in-class retail destinations.
That formu la led to a very successful 2024.
The chain retailers that dominate the retail
landscape are enor mously important to the
viabill ity and traffic generation of a retail
destination, and it's why the TJX Companies
(TJ Maxx, Marshalls, HomeGoods, and Sierra
Trad i ng) and grocer Ahold Delhaize (Giant
Food, Stop & Shop and others) are our largest
and second-largest tenants, respectively.
These great operators serve as important
ancho rs for the shopping center and generate
increased traffic from their loyal customer
bases . But it takes more than a great anchor
FED ERA L REALTY
I
AN N U A L R E P 0 R T 2024

INDUSTRY-LEADING CONSISTENCY
57 consecutive years
of increased dividends.
$ 4 .40 .
2  :  ~ i 11111111111111111111111111
2024
1967
*Annualized dividends per share
A lo o k Back
2024 was an extremely successful year for the
company with strong results across the board .
We delivered funds from operations per
common share of $6.77, a company record. 1
We completed leases for nearly 2.4 million
squar e feet of comparable space, a company
record . We hit leased occupancy of 96.2% and
physiical occupancy of 94.1 %, levels we
haven't seen in nearly 20 years. We stabilized
four redevelopments while progressing work
on our remaining $785 million redevelopment
pipeline. We saw the benefit of the return-tooffice movement with increased demand for
our remaining office mixed-use product and
ended the year with 1 Santana West and 91 5
Meeting Street at Pike & Rose at 82% and 91 %
committed, respectively, under signed leases
and heavily negotiated LOis. We acquired two
new assets, Virgin ia Gateway in Gainesville,
Virg inia and Pinole Vista Crossing in Pinole,
Cal ifornia, investing $275 million at a
combined return in the low 7% range, a return
1
well in excess of what those prope rties would
trade at today and well in excess of our cost
of capital , even with today' s elevated interest
rates. We lowered our leverage through
opportunistic ATM issuances, which funded
accretive acquisitions, selective asset sales,
and growing free cash flow, and ended the
year with $ 1.4 billii on of liquidity to support
our growth in 2025. You get the point. Our
multi-faceted business plan delivered results
across all fronts in 2024.
And of course, what I believe to be our most
remarkable
achievement-increasing
our
dividend to common shareholders for the 57th
consecutive year. No other REIT comes close
(the next highest is 3 1 years), and only 1 3
publ icly traded S&P 500 companies surpass
this record , many of which are household
names in industrial and consumer goods.
Unlike industrial
and
consumer goods
compan ies that can raise prices with inflation,
real estate-built on long-term , fixed-rent
contracts-demands a different strategy. Our
FFO is a non-GAAP financial measure. See page 46 of our Form 10-K f or information on FFO and
FFO per share.
FEDE R AL REALTY
I
AN N UAL REP 0 R T 2 0 24

ability to consistently grow dividends year
after year stems from the strength of our
super ior real estate. Real estate that allows us
to capture higher rents as tenant leases expire
and to negotiate str ong rent increases during
the lease terms. And real estat e that is
supported by a resilient balance sheet that
allows for growth through multiple economic
cycles- a true testament t o our foundation
that has been built over the past si x decades.
looking Ahead
For the past 20 years, our goal has remained
the same : deliver a steady stream of growing
cash flow through the inevitable highs and
lows of economic cycles. What has evolved is
how we adjust our playbook to address those
cycles. We've purposefully maintained multiple
growth strategies through the years- acquiring
new assets, developing from the ground up,
and redeveloping existing assets. In 2025, we
plan to draw on all of these strategies to drive
conti nued growth.
On the acquisition f ront, we're off to a strong
start with the recent acquisition of Del Monte
Shopping
Center, a 674,000-square  foot
grocery-anchored lif estyle center in Monterey,
California. We saw in Del Monte a unique
opportunity to acquire the dominant propert y
in an affluent trade area where the quality of
avai lable retail doesn't satisfy the consumer
demand. There was nothing better than getting
confirmation of that thesis during the due
di ligence process when a local broker said
there were tenants who had not considered
this property or the Monterey market in
gener al, but would do so now because Federal
owns the property. Not only a validation of
our thes is on the opportunity at this property,
but a wonderful reminder of Federal's stellar
reputation among retail tenants and the
brokerage community. We look forward to
better serving that affluent Monterey consumer
and see a lot of additional opportunities in
202 5 to explore other affluent markets where
we can acquire the domi nant retail property
and use our un ique skill sets to ensure that the
property better services its affl uent consumer.
On the development front, we recently
announced the start of a $45 million ground-up
development of residential over ret ail at one of
our properties in Hoboken, New Jersey, and
hope to be able to announce at least one other
residential project at an existing property later
this
year. Through our redevelopment
capab ilities, we focus on keeping existing
assets relevant for today's retailers and
consu mers, and you can see that at the
recently
announced
re-tenanting
and
reimagination of a portion of our Andorra
Shopping Center in Phi ladelphia, Pennsylvania,
and the soon to be completed total redo of
Huntington Shopping Center in Huntington,
New York. The com mon denominator for all of
these projects is t hat they start with welllocated properties-properties that can support
vertical densification and properties where
there is sufficient consumer and tenant
demand to support the rents needed for
development and redevelopment. And , as
importantly, they can all be created and
executed by an internal team with a wide range
of expertise, a competitive advantage that few
other companies can match.
As we head into 2025 , challenges remainpersistent inflation, higher but historically
normal interest rates, and an economy
supported largely by the spending of more
affluent consumers. A new administration in
Washington has shaken things up in its initial
mont hs in office, and that is adding uncertainty
into ithe mix with very little clarity at this point
for what the impacts-both positive and
negative-of that shake-up may be. Through it
all, our management team remains focused
and nimble, with one clear goal in mind:
creating real estate value for our shareholders.
FED E R A L REALTY
I
AN N U A L R E P 0 R T 2024



shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 

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