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

Federal Realty Investment Trust Third Quarter 2016 1

The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth TACTICAL STRATEGIC REDEVELOPMENT REDEVELOPMENT • Extensive • Larger scale “THE CENTER OF THE UNIVERSE” remerchandising • Proven retail • Residential destinations opportunities • Often mixed-use • Additional GLA • In our control today • Pad opportunities SAME CENTER 0.5 – 0.75% GROWTH 1.5 – 2.0% GROWTH SHOPPING CENTER PORTFOLIO • Best in the business • Significant “mark to market” upside • Raw material for redevelopment • Careful pruning of bottom SELECTIVE CONSERVATIVE LOW 10% ACQUISITIONS COST OF CAPITAL 3.0 – 3.5% GROWTH STRUCTURE • Future raw material • Low leverage • Only the best locations • Long track record • Leasing and • Debt: fixed, laddered, redevelopment growth low cost • Equity judiciously 0.0 – 1.0% GROWTH raised 2

Business Plan Update & Outlook Visibility on NOI Growth: The Next Decade  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 1 st 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

The Ultimate Balanced Business Plan Delivering On Our Plan Acquisitions Future Mixed-Use Current Mixed-Use Redevelopment SSNOI Baseline NOI We continue to deliver on our October 2013 plan to double NOI in 10 years. 1 Future results may differ from forecasts due to a variety of factors

The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth TACTICAL STRATEGIC REDEVELOPMENT REDEVELOPMENT • Extensive • Larger scale “THE CENTER OF THE UNIVERSE” remerchandising • Proven retail • Residential destinations opportunities • Often mixed-use • Additional GLA • In our control today • Pad opportunities SAME CENTER 0.5 – 0.75% GROWTH 1.5 – 2.0% GROWTH SHOPPING CENTER PORTFOLIO • Best in the business • Significant “mark to market” upside • Raw material for redevelopment • Careful pruning of bottom SELECTIVE CONSERVATIVE LOW 10% ACQUISITIONS COST OF CAPITAL 3.0 – 3.5% GROWTH STRUCTURE • Future raw material • Low leverage • Only the best locations • Long track record • Leasing and • Debt: fixed, laddered, redevelopment growth low cost • Equity judiciously 0.0 – 1.0% GROWTH raised 5

Anchor Rollover Unlocks Significant Value (1) Short term earnings dilution leads to long term value creation Executed Leases Rent Commencement Schedule (2) Leasing Update Total Square Feet Vacant 730,000 $8.4 Average Prior Rent PSF $19.75 Percent Released 42% $2.1 $2.1 $1.9 $1.9 $1.7 $1.5 Rollover Percentage 37% $1.3 $1.2 Expected Rollover on Remaining SF 15 – 20% Average Downtime ~12 - 24 months 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Annual 2019 High Quality Tenants (1) Reflects space vacant during 3Q 2016 6 (2) Reflects managements current estimates, actual results may differ.

Core Markets Strategic Metropolitan Markets BOSTON NEW YORK PHILADELPHIA SAN JOSE / BALTIMORE SAN FRANCISCO WASHINGTON, DC LOS ANGELES SOUTH FLORIDA 7

Exposure to the Nation’s Top Twenty Markets FRT has the greatest concentration of assets in the nation’s top 20 markets (1) , which comprise 37% of U.S. retail expenditures… 90% 77.1% 80% Peer Group Average: 53.9% 70% 63.1% 61.9% Exposure to Top 20 MSAs 59.4% 60% 55.5% 50% 44.3% 39.3% 40% 30% 20% 10% 0% FRT REG EQY KIM WRI BRX DDR 8 Source: Bank of America-Merrill Lynch Research, May 2016 (1) Metropolitan Statistical Area

How Will Our Core Perform? As Always, Location Matters Unmatched combination of density and affluence sets our centers apart $90,000 $85,000 Median Household Income in a 3 Mile Radius FRT $80,000 REG $75,000 $70,000 KIM EQY $65,000 DDR Peer $60,000 Average WRI BRX $55,000 National Average $50,000 $45,000 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Households Per Square Mile 9 Source: Bank of America-Merrill Lynch Research, May 2016

Demographic Case Studies 3-Mile Radius Average Household Income Average Household Income Growth 1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row $41,352 $89,612 $134,115 $154,156 $195,224 372.1% 26.6% Bethesda, MD Third Street Promenade $24,341 $60,532 $89,043 $101,963 $116,752 379.7% 14.5% Santa Monica, CA Population Population Growth 1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row 125,526 122,404 129,375 133,333 141,179 12.5% 5.9% Bethesda, MD Third Street Promenade 151,659 150,852 147,475 156,943 158,858 4.7% 1.2% Santa Monica, CA Source: ESRI 10

Premier Operating Portfolio Our portfolio achieves the highest cash rents in the sector, ~60% higher than our peer group average… $30.00 Peer Group Average: $16.84 $26.67 $25.00 $20.80 $19.78 $20.00 $17.72 $14.94 $14.92 $15.00 $12.90 $10.00 $5.00 $0.00 FRT EQY REG WRI KIM DDR BRX 11 Source: Company Filings

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 Avg In Place Avg New Lease $35 31.9% $30 $25 14.6% $20 6.4% 7.0% 12.1% 12.4% $15 $10 $5 $0 FRT REG EQY WRI DDR KIM Source: Company Filings 12 Note: BRX excluded due to insufficient historical data.

Proven History of Outperformance Superior Rollover Growth Compared to Peer Group …and significantly higher rollover growth than our peers. Federal Realty Peer Group Average: DDR, REG, WRI (1) , KIM (1) , EQY, BRX (2) 25% 22% 22% 21% 20% 20% 20% 18% 18% 18% 17% 17% 16% Average Increase Over Prior Year Rent 16% 16% 15% 15% 14% 14% 13% 13% 13% 13% 13% 12% 12% 11% 10% 10% 10% 10% 10% 10% 9% 9% 9% 9% 8% 8% 8% 6% 5% 2% 0% 0% -1% -5% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 '98-YTD '16 Avg Source: Company filings (1) Only included in peer group results for periods in which data was reported 13 (2) BRX data available as of 2013

Proven History of Outperformance Superior Same Store Growth Compared to Peer Group Average Same Store Growth: 2005 – YTD 2016 4.0% 3.8% 3.5% 3.0% 2.5% 2.5% 2.3% 2.2% 2.0% 2.0% 1.8% 1.5% 1.0% 0.5% 0.0% FRT WRI EQY KIM REG DDR Source: Company Filings 14 Note: Same store growth figures include redevelopments. BRX excluded due to insufficient historical data.

The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth STRATEGIC TACTICAL REDEVELOPMENT • Larger scale REDEVELOPMENT • Proven retail “THE CENTER OF THE UNIVERSE” destinations • Extensive remerchandising • Often mixed-use • In our control today • Residential opportunities • Additional GLA 1.5 – 2.0% GROWTH • Pad opportunities SAME CENTER SHOPPING CENTER 0.5 – 0.75% GROWTH PORTFOLIO • Best in the business • Significant “mark to market” upside • Raw material for SELECTIVE redevelopment ACQUISITIONS • Careful pruning of bottom CONSERVATIVE LOW 10% COST OF CAPITAL • Future raw material 3.0 – 3.5% GROWTH STRUCTURE • Only the best locations • Leasing and • Low leverage redevelopment growth • Long track record • Debt: fixed, laddered, 0.0 – 1.0% GROWTH low cost • Equity judiciously raised 15

Enhancing The Core: Redevelopment Delivering On Our Plan Chelsea Commons Residential  Approximately $152 million of redevelopment completed from 2013 through 2016 creating $150-180 million of value over our investment Westgate  $246 million of tactical redevelopment currently underway with a projected weighted average return of 8% 16