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.
FEDERAL REALTY INVESTMENT TRUST 2025 Annual Report Form 10-K & Proxy Statement
Dear Fellow Shareholders, If the past several years have taught us anything, it is that predicting the direction of markets, politics, or headlines has become increasingly difficult. 2025 may have been the clearest example yet. A new administration in Washington, shifting geopolitical dynamics, and intense investor focus on artificial intelligence created a steady stream of noise and uncertainty. Equity markets reached new highs as capital flowed heavily toward companies tied to AI, driving strong performance in a narrow group of sectors while leaving many others, including real estate, largely overlooked. Yet amid constant change, in our business some things remain remarkably consistent. That reality was tested directly within several of our core markets during 2025. Workforce reductions tied to government-related employment created periods of uncertainty across portions of the Washington, D.C. metropolitan area (the DMV), a region representing a meaningful part of our portfolio. Periods of disruption like these reinforce the principles that have guided Federal Realty for decades: What distinguishes retail real estate from nearly every other property type is that value is shaped not only by who occupies a space, but by the quality and balance of the surrounding tenancy. Thoughtful merchandising drives traffic, extends customer visits, and strengthens long-term performance. This focus has been refined at Federal Realty over decades and remains a core competitive advantage. As consumers increasingly prioritize experience, connection, and quality, well-merchandised retail environments continue to serve as important gathering places within the communities they serve. Public markets often gravitate toward what feels shiny and new in the short term, but real value is built over time. Federal Realty has applied these same principles for more than six decades, and 2025 served as another reminder that long-term success in real estate comes from applying consistent discipline even as markets and opportunities evolve. Owning high-quality real estate in affluent, supply-constrained communities; Actively curating tenancy to drive long-term performance; and Maintaining a strong balance sheet that enables us to invest consistently through cycles. Even amid this disruption, our DMV properties continued to generate strong traffic and sales performance, underscoring the resilience of the communities we serve. Well-located real estate in affluent communities continues to outperform. FEDERAL REALTY | A N N U A L R E P O R T 2025
INDUSTRY-LEADING CONSISTENCY 58 consecutive years of increased dividends. $4.52 * $0.12 * 1967 2025 *Annualized dividend per share. A Look Back: Execution Matters Against that backdrop, Federal Realty delivered another year of excellent operational and financial progress in 2025, reflecting the continued strength of our business model and disciplined execution across the portfolio. NAREIT funds from operations per share grew approximately 6.6% year-over-year to a record $7.22 per common share1. Core funds from operations per share grew approximately 4.3%. Growth was driven by strong leasing execution, embedded rent escalators, and continued operational discipline. Our ability to capture contractual rent growth and bring tenants into operation more quickly contributed meaningfully to results and reinforced the durability of our income stream. 1 Operationally, 2025 was one of the strongest leasing years in our company s history. We completed nearly 2.5 million square feet of retail leasing activity, increasing occupancy to 94.1% and leased occupancy to 96.1%. The breadth and durability of leasing demand across all categories have remained strong. Comparable rent spreads reached their highest level in more than a decade at 15% on a cash basis and 27% on a straight-line basis. While the industry experienced renewed bankruptcy headlines involving several national retailers, the impact on Federal Realty was limited. Our focus on strong operators resulted in manageable bad debt levels and rapid backfilling opportunities. Simply put, better real estate attracts better tenants, especially during periods of disruption. Nareit funds from operations and Core funds from operations are non-GAAP fiancial measures. See pages 46-47 of our Form 10-K for information on these metrics. FEDERAL REALTY | A N N U A L R E P O R T 2025
And of course, what remains central to our identity as a company is the consistency of our dividend. In 2025, we increased our common dividend for the 58th consecutive year, extending the longest record of annual dividend increases in the REIT industry and maintaining our standing among the small group of public companies known as Dividend Kings. Unlike many businesses that can adjust pricing quickly, real estate operates through long-term lease structures that require patience, discipline, and superior asset quality to generate consistent growth. Our ability to increase dividends year after year reflects the strength of our real estate, the durability of our cash flows, and the resilience of a balance sheet built to perform across economic cycles. Capital Deployment: Multiple Levers for Growth A hallmark of Federal Realty s long-term success has been evolving the portfolio while remaining selective about where and how we grow. 2025 was an active year for capital deployment, with more than $750 million of acquisitions completed, alongside nearly $500 million of dispositions executed during the year and into early 2026. We also invested nearly $200 million in redevelopment more on that below. These actions reflect our ongoing effort to recycle capital toward opportunities with stronger longterm growth potential while maintaining balance sheet flexibility. We expanded into new markets that meet our disciplined investment criteria: strong demographics, limited retail supply paired with proven retailer success, and dominant properties capable of significant operational improvement. Our acquisitions in markets such as Kansas City and Omaha reflect confidence that Federal Realty s operating platform and reputation can unlock value in underserved but highly attractive trade areas. Redevelopment and densification remain equally important drivers of external growth. During the year, both 915 Meeting Street at Pike & Rose and Santana West at Santana Row became 100% committed, marking an important milestone for our mixed-use portfolio and reflecting improving demand for well-located and highly amenitized office environments. Since the start of 2024, we advanced multiple residential developments at our existing retail centers across the portfolio, including projects in Hoboken, New Jersey; Bala Cynwyd and Willow Grove, Pennsylvania; and Santana Row s Lot 12 in San Jose, California. We also added new retail redevelopment projects at Andorra Shopping Center in suburban Philadelphia and Grossmont Center near San Diego. In many cases, the highest return opportunity is not acquiring new assets, but improving what we already own, a skillset that remains a defining advantage for Federal Realty. Looking Ahead As we enter 2026, the fundamental conditions supporting our business remain firmly in place, with limited new retail supply and a strong balance sheet allowing us to remain patient and opportunistic as conditions evolve. In an environment where high-quality space is increasingly scarce, well-located properties serving affluent communities remain positioned for sustained demand. Perhaps most importantly, Federal Realty s business model remains intentionally adaptable. Whether opportunities arise through acquisitions, expansions, or redevelopment within our existing portfolio, our objective remains the same: allocate capital toward the opportunities that create the greatest long-term value. We look forward to sharing more about this strategy and the opportunities throughout the year. FEDERAL REALTY | A N N U A L R E P O R T 2025
 • shareholder letter icon 3/27/2026 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 3/28/2025 FRT Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon FRT Benford's Law Stock Score = 86


FRT Shareholder/Stockholder Letter Transcript:

FEDERAL REALTY INVESTMENT TRUST
2025 Annual Report
Form 10-K & Proxy Statement


Dear Fellow
Shareholders,
If the past several years have taught us
anything, it is that predicting the direction of
markets, politics, or headlines has become
increasingly difficult. 2025 may have been the
clearest example yet. A new administration in
Washington, shifting geopolitical dynamics,
and intense investor focus on artificial
intelligence created a steady stream of noise
and uncertainty. Equity markets reached new
highs as capital flowed heavily toward
companies tied to AI, driving strong
performance in a narrow group of sectors
while leaving many others, including real
estate, largely overlooked.
Yet amid constant change, in our business
some things remain remarkably consistent.
That reality was tested directly within several
of our core markets during 2025. Workforce
reductions
tied
to
government-related
employment created periods of uncertainty
across portions of the Washington, D.C.
metropolitan area (the DMV), a region
representing a meaningful part of our
portfolio. Periods of disruption like these
reinforce the principles that have guided
Federal Realty for decades:
What distinguishes retail real estate from
nearly every other property type is that value
is shaped not only by who occupies a space,
but by the quality and balance of the
surrounding
tenancy.
Thoughtful
merchandising
drives
traffic,
extends
customer visits, and strengthens long-term
performance. This focus has been refined at
Federal Realty over decades and remains a
core competitive advantage. As consumers
increasingly prioritize experience, connection,
and
quality,
well-merchandised
retail
environments continue to serve as important
gathering places within the communities they
serve.
Public markets often gravitate toward what
feels shiny and new in the short term, but real
value is built over time. Federal Realty has
applied these same principles for more than
six decades, and 2025 served as another
reminder that long-term success in real estate
comes from applying consistent discipline
even as markets and opportunities evolve.
    Owning high-quality real estate in affluent,
supply-constrained communities;
    Actively curating tenancy to drive long-term
performance; and
    Maintaining a strong balance sheet that
enables us to invest consistently through
cycles.
Even amid this disruption, our DMV properties
continued to generate strong traffic and sales
performance, underscoring the resilience of
the communities we serve. Well-located real
estate in affluent communities continues to
outperform.
FEDERAL REALTY |
A N N U A L R E P O R T 2025

INDUSTRY-LEADING CONSISTENCY
58 consecutive years
of increased dividends.
$4.52 *
$0.12 *
1967
2025
*Annualized dividend per share.
A Look Back: Execution
Matters
Against that backdrop, Federal Realty
delivered
another
year
of
excellent
operational and financial progress in 2025,
reflecting the continued strength of our
business model and disciplined execution
across the portfolio.
NAREIT funds from operations per share grew
approximately 6.6% year-over-year to a record
$7.22 per common share1. Core funds from
operations per share grew approximately
4.3%. Growth was driven by strong leasing
execution, embedded rent escalators, and
continued operational discipline. Our ability to
capture contractual rent growth and bring
tenants
into
operation
more
quickly
contributed meaningfully to results and
reinforced the durability of our income stream.
1
Operationally, 2025 was one of the strongest
leasing years in our company   s history. We
completed nearly 2.5 million square feet of
retail leasing activity, increasing occupancy to
94.1% and leased occupancy to 96.1%. The
breadth and durability of leasing demand
across all categories have remained strong.
Comparable rent spreads reached their
highest level in more than a decade at 15% on
a cash basis and 27% on a straight-line basis.
While the industry experienced renewed
bankruptcy
headlines
involving
several
national retailers, the impact on Federal Realty
was limited. Our focus on strong operators
resulted in manageable bad debt levels and
rapid backfilling opportunities. Simply put,
better real estate attracts better tenants,
especially during periods of disruption.
Nareit funds from operations and Core funds from operations are non-GAAP fiancial measures.
See pages 46-47 of our Form 10-K for information on these metrics.
FEDERAL REALTY |
A N N U A L R E P O R T 2025

And of course, what remains central to our
identity as a company is the consistency of
our dividend. In 2025, we increased our
common dividend for the 58th consecutive
year, extending the longest record of annual
dividend increases in the REIT industry and
maintaining our standing among the small
group of public companies known as Dividend
Kings. Unlike many businesses that can adjust
pricing quickly, real estate operates through
long-term lease structures that require
patience, discipline, and superior asset quality
to generate consistent growth. Our ability to
increase dividends year after year reflects the
strength of our real estate, the durability of
our cash flows, and the resilience of a balance
sheet built to perform across economic cycles.
Capital Deployment:
Multiple Levers for Growth
A hallmark of Federal Realty   s long-term success
has been evolving the portfolio while remaining
selective about where and how we grow.
2025 was an active year for capital deployment,
with more than $750 million of acquisitions
completed, alongside nearly $500 million of
dispositions executed during the year and into
early 2026. We also invested nearly $200 million
in redevelopment   more on that below. These
actions reflect our ongoing effort to recycle
capital toward opportunities with stronger longterm growth potential while maintaining balance
sheet flexibility. We expanded into new markets
that meet our disciplined investment criteria:
strong demographics, limited retail supply
paired with proven retailer success, and
dominant properties capable of significant
operational improvement. Our acquisitions in
markets such as Kansas City and Omaha reflect
confidence that Federal Realty   s operating
platform and reputation can unlock value in
underserved but highly attractive trade areas.
Redevelopment and densification remain equally
important drivers of external growth. During the
year, both 915 Meeting Street at Pike & Rose and
Santana West at Santana Row became 100%
committed, marking an important milestone for
our mixed-use portfolio and reflecting improving
demand for well-located and highly amenitized
office environments. Since the start of 2024, we
advanced multiple residential developments at
our existing retail centers across the portfolio,
including projects in Hoboken, New Jersey; Bala
Cynwyd and Willow Grove, Pennsylvania; and
Santana Row   s Lot 12 in San Jose, California. We
also added new retail redevelopment projects at
Andorra
Shopping
Center
in
suburban
Philadelphia and Grossmont Center near San
Diego. In many cases, the highest return
opportunity is not acquiring new assets, but
improving what we already own, a skillset that
remains a defining advantage for Federal Realty.
Looking Ahead
As we enter 2026, the fundamental conditions
supporting our business remain firmly in place,
with limited new retail supply and a strong
balance sheet allowing us to remain patient and
opportunistic as conditions evolve. In an
environment where high-quality space is
increasingly scarce, well-located properties
serving affluent communities remain positioned
for sustained demand.
Perhaps most importantly, Federal Realty   s
business model remains intentionally adaptable.
Whether
opportunities
arise
through
acquisitions, expansions, or redevelopment
within our existing portfolio, our objective
remains the same: allocate capital toward the
opportunities that create the greatest long-term
value.
We look forward to sharing more about this
strategy and the opportunities throughout the
year.
FEDERAL REALTY |
A N N U A L R E P O R T 2025


shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 

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