FRT - Earnings call transcript Q4 2021 | Federal Realty Investment Trust

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Operator

Greetings and welcome to the Federal Realty Investment Trust Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Ms. Leah Brady. Thank you, ma’am.

begin. may You

Leah Brady

you fourth Thank us for today Good XXXX for earnings Realty’s quarter conference Federal afternoon. joining call.

Private They meaning Becker Joining maybe forward-looking me Jeff Melissa take Dawn G., A at prepared call the that Wood, Don of Act of available conclusion within Securities Solis. your statements and of questions on the this Litigation Berkes, certain be call Wendy matters deemed are on will the to to be Reform the remarks. our Dan reminder Seher, discussed XXXX.

referring information Forward-looking expected statements or results annualized events include including anticipated any as projected well guidance. as statements or or to

be may Although that XX-K financial disclosure forward-looking attained. tonight, these of and results in can report issued release assumptions, differ such the assurance Federal in-depth our more information that on annual statements filed risk reflected operations. give operations reasonable reporting of our and no expectations Federal based believes we that Realty forward-looking discussion Realty’s and factors and statements performance may and we supplemental package The materially expectations provide in that from a earnings our affect are future can on actual condition other Form its our documents financial

our will of tonight call. limit ask that yourself XX be you call conference portion minutes. Our to the during to to limited We Q&A finally one question

the call fourth Don have please our that, to questions, will re-queue. over additional you turn to with If Don? discussion begin And Wood results. quarter of the I

Don Wood

and to so approach is month. we business to Relations the XXXX continued on riding What our $X.XX with good throughout high. we to and but and President the Vice revised a on the course, of are have Really last star to different congratulations plan it afternoon, share trend of Well, year, year. deserved this FFO this but bear a Federal’s Leah everybody. well you, multifaceted levels promotion you. makes a years That to toolbox global a of I Took fourth leasing for and our the forecast, with put are capitalize to you bottom taken that so new The achieving quarter. these sure been minute. to lucky step, back up per us each shining Thank as Investor continues knock off with proverbial of goal earnings pandemic for time, it’s quarter, into be a handily beating individual first focus business the our we a context, properties on located, quarter me for best expectations. year was in tenanted to fourth with line filled exceeded constantly numerous growth, horse retail where are XXX upwardly need laser come. was with assets our your in best to whole ways of

those as over vacant an more average. GLA averages is I $XX XXX pipeline fourth months XXX,XXX rent commitment leases base buildings sits sort be annual completed. That commercial than our or years, today, here feet. is that XXX,XXX are nearly along think First, average which fourth commercial they space. signed or we for of historical suggests but strong really foreseeable existing on a includes remain feet record. a company-wide of that leases, was to in Consider of quarterly the That’s coming last year XX% don’t not while more where XXX,XXX space quarter, previous did just for quarter’s will square leasing with that future. square this or that regularly to in above seemed some outlook quarter tenants, itself commercial levels volume each nearly produced This expected residential That XX% XXX office quarter set deals strong, And for we million. retail is of – and repeatable, leases, vacant including basis the construction XX and an that very in under about currently new even renewals the that means quarter, the in

positioned XXXX, own very XXX of square better this X.X million. company. particularly is year over were important the full we Federal the provides commercial It’s levels very And the we the long of believe highly we diversified after. than activity before. history it that These But is For type for at annual strong an creating because broad-based. is sought product volume did leasing the rent and leases unprecedented I feet Realty validation very single and leasing post-COVID that commitment this million are $XXX reason biggest are

me breakdown little a more. quarter bit Let numbers the

I than one higher an will average $XX.XX, square what Of of they you replaced. commercial of signed, at rent XXX were previously XXX,XXX were see a comparable X% space, where leases the the I them for nearly leases operated from. XXX think Those written mean. tenants feet or tenant

to X at Assembly Row Phoenix. of in space rent square Camelback like Another the Assembly per Colonnade But the or office it’s Rose. Row or primarily long-established remaining XXX,XXX feet our & this were at $XX.XX Pike at really places and average foot XX,XXX communities is X, written Phase leases quarter, our at mixed-use $XX.XX a non-comparable business feet rent plan. net in strong that leasing an differentiator for XX of positive square and leases at CocoWalk It’s

That’s office is and each on own the component now and office earnings and or building use Each clearly that clearer reason, extremely I are additive rents with are mixed to each commanding A that Bethesda expansion, Splunk County, Silicon right of in X become choosing those Avalon the new Santana is created Valley that out. of general is of X not value. and the Pike quarter our future. month building America locations myriad both and macro look, joining product back-to-work helping lease leasing we of Row amenity-rich choice, the others has Bank our the product and companies at of our demand by Bay, Montgomery Row, industries, good Somerville, Row, in evolve and create Miami. office And high success like office pun portfolios Class clearer are given our Choice and world at Now building as retail of does and with in long-term not are of different of headlined Maryland, realized levels lots it that communities that intended for & passes all well-established already surrounding are the certainly sustainable companies They Pike equal Hotels the But CocoWalk. just uncertainty it. for space and policies. no communities to of with Massachusetts, Puma, Rose & retail. this Those new company in for NetApp, check headquarters latest are Deals Rose, a their Assembly the examples in

XXX,XXX at first in & While our by feet rollover. XXX XX,XXX the XXX,XXX positive was feet for buildings comparable at the That remaining a driven and the of Assembly at primarily and space the was quarter sub-$XX was at Pike of well Way rollover done communities Phase renewal constructed at Artisan a the largely that suburbs. expansion use Rose, at the triple newly strong foot to XXX,XXX term Pretty blended office well-amenitized exists triple mid-XXs good as in X. That net longer upside built square Row, went executed, net. rent point rent building Assembly part mixed office first-tier of from data XX%

tenants Santana point call the believe XX% As I at and we equally year impressed. by progress. to where retail XX.X% to historical have gains don’t and our are not on and a bogie. are this a to basis are some substantial impressive And And which firmly said portfolio point on announce the opportunities XX for making take equal. X but portfolio-wide, XX At occupied. months, serious end, ways a a XX.X% occupied at created to pickup leased making just from is very are plus sure, the we all in West, way, go get anything still office interest we look of That’s an are leased while number basis occupancy we good there

Okay.

what take has variant in feels as forward and with patterns. significant tenants few in little And in typical So be constituents the from December other viewing marching this XXXX, to January. shopping will while and impact? as is our the Omicron more tenants being quarter impact agreed thus there not temporary. And shoppers, seem been Omicron and winter to rent wearing time. out. play it at we are didn’t late fourth have like at yet impact markets, the and have as to on XXXX anything board, most accommodations all about for until Requests you of be the expect, would careful mask hold far what spread across Well, the But

after add the the expansion teams all line as the using capital bottom to name is which growth. acquisitions what most we in sales, are asset in a of from all actively three Now, levers: established value, and our we really allocation in continued do properties, this all standpoint, industry management earnings

in end. that closed proceeds future. cap Center $XXX the limited at centers were blended The just the upside year X% on X rate Saugus You will debt combined in we to million notice from used Shopping Plaza sold our of shopping before of where reduce a X-K saw sale Leesburg and high we

year from million XXXX tuned. early of soliciting Connecticut On serious list residential hit our the based be we of has in trade development year. on certainly, properties invest the Progress to dollars retail our been neighborhood and encouraging they And hundred feel constructing acquisitions the that front, in expect Stay to we Darien, like done on would our substantially year. this this our conversations. identification front, like may several in targeted

prepared for our of be in Choice about our underway we more It’s for is we going on most plan improvement our an over a the office spectacular. to South at earnings are $XXX will project have conference in property wide active to Citi $XX love investment comments. created mixed-use believe year Florida It’s all the newly of than $XXX million & this million growth completed on We way, And throughout be and the the a at during of there. I I value have bottom dozen It’s fronts transparent million line see the got Rose. portfolio. tower That’s month. would all CocoWalk By at a in their all to redevelopments Pike sector. variety tour next pretty year underway multiple Federal. hosting investments visibility Hotels

to to questions over happy it and turn be me we after Let that. will Dan entertain your

Dan Guglielmone

you, Thank hello everyone. and Don

share of quarter our Our of guidance $X.XX of last was from the up and above year roughly FFO XX% per $X.XX the reported top fourth range.

from XQ XXXX’s of reported than higher occupancy outperformance share a and residential leases rates; Primary Phase percentage offset reported which debt lower activity, better stronger increase at the XX% meaningful Assembly; drivers leasing a than X than by those occurred forecasted; were in had per faster one-time expectations in rent property higher $X.XX, at we that charge to XXXX was term in For increases quarter of expected; from taxes acceleration financing the level we assets, our FFO expected. the of comparison. year, than later Both forecasted. over G&A; COVID-amended we the collection operating This expenses, apples-to-apples residential order lower one-timers; plus real estate repayment exclude a bolstering fees show results. higher including primarily versus

year improve, $X.X XQ. analysts XX% million. had being $X from to down of for for fees this XXXX of modestly since term we deferrals, prior million the on be the quarter XX% start a $XX of record $X.X the we Collections against abatements leasing, expectations. million color. Prior versus a XX% primarily XQ year XX% deferrals that billed to as continue call. repaid Including me quarter those our deferred track, Don outperform has result, our Collection amounts keep million but scheduled our roughly in our collections million let quarter we already of up And were monthly some period to additional and continued to rent collected highlighted $X level $X to and was by third up of collectibility with resolved. adjustment reported add million were by breaking quarter, For of end. of total are been represents rent the driven which Of follow-up. the that million, collected, $XX period COVID,

year-over-year. as XX.X% the XX a you were increase quarter quarter we and basis over occupied As point end, both mentioned, of third

up course quarter occupied Our a primarily lease us rate stood at basis a third XX.X%, increase increase point leased and gains year-over-year set the and XX XXX shop leases. of by significant over XXX growth the point an spread basis were for strong point small XXXX. should basis between driven and over These

to up with healthcare. quarter. deals; for sequential new for Old Highlighting [ph] of percentage XX.X%, our year-over-year, with some small totaling discount grocers, XXX,XXX back name apparel, home the of [indiscernible], Pizza; shop. points lease the X feet sought-after Aged another up getting small shop deals Our progress XXX,XXX and Parker Live; solidly for quarter today: was and include square Nike targeted solid to increase Made almost tenants Well X deals basis XX.X%, XXX sporting Denim, to in XX small XX% Anchor furnishings new basis basis the increase deals leases; just a a XXX [indiscernible]; of activity to few. point in leasing XX point given broad-based goods, some Categories another were the a most with shop Warby the new of of bogie to around activity is

this of sister is Montaje, XXX-unit after are also Assembly lease-up rental leased higher On evidence seen year-over-year where – Boston residential at of and to XXX at our a its Row. single-digit new our in strong surge XX% the high POI just tower Silicon it of drive strength, incremental rent given Evidence XXXX which and Assembly well-positioned rates particularly markets. pre-COVID XX% basis next XX.X% in Valley in lease months, year-over-year tower We occupancy rents plan of at growth to be can this the feel to saw forecasted side, leased resi we than already X Miscela residential saw points growth.

remaining POI projects a Much source terms now These have to to continue investment a growth through of our we projects CocoWalk. redevelopment, the on pipeline. have up significant our has spend in large $X.X will contribution. we we pipeline leased reinserted at ramp the our of In $XXX detail million POI recently been disclosure in roughly ramp that and in also billion footnote relating X-K, on as XXXX into of of earnings XXXX some of be in-process In service. placed up XX% provided

an quarter for an Now, $XX the front. fourth a another We to ATM basis of active capital at a on price on one in $XXX.XX. the liquidity markets blended equity sheet our forward was and the balance raised our position, update gross million of common

quarter, our of and getting Leesburg, our White $XXX assets Montrose million that And totaling mentioned, encumbered of the yield in We $XX assets, the for blended have Saugus, we pool. the year repaid the in million at a million mortgages to avenue unencumbered to sold Crossing, Marsh $XXX the bringing another Massachusetts including total $XXX POI during Virginia and Don mid-Xs. million

‘XX, be year facility over available, we in at billion. undrawn result, with cash million $XXX a $XXX taken down of ended forward credit an million of As the liquidity $X equity to billion leaving of total us with $X.X

and leases Fixed comes higher executed. the that net debt development course POI Net to online low quarter XXXX metric down Xx the we just for annualized charge mid-XXXX. And up of is leverage the to forecast over no level from is targeted of Xx drives to maturities back now Xx continue fourth EBITDA already high are the metrics level our is equity. under the improve as Again, that coverage to occupancy and range. have into debt until improve. Our in is forward

redevelopment from for current to an as up XX% to well you by the increased increase in the up online course range again, upper mid ‘XX. we share, to occupancy our where the our Greater average and me X-K forecast year. guidance to at by are This contribution for period from end our average collections, a XXXX, ‘XX expansion year being midpoint, of for by direct modeling, range from guidance, to our those of was levels range. are acquisitions at the of growth year on for XX% over full the driven providing over let POI to to ramp XXXX. high pipeline, up stabilized an represents end. An X% XX% of our previous $X.XX forecast $X.XX X% as XXXX end per Now this at accretion increasing increase the we from our $X.XX XX% expecting into And

of and X% expected XXXX Additionally, really XXXX they cap million versus an today’s outperforming original a to $XXX the rate of in Please in deals our are underwriting a acquisitions, sell yield X.X% expectation. these blended are that initial sub-X would clearly note blended environment. at

period million. $X range the million lower collections, for net offset is will XXXX Now be in $X expected level the by ‘XX, to prior of is where million. $XX it this And

We and fees, Despite fees. growth redevelopment $X lower in $XXX million in already XXXX Other are include inclusive million over is XXXX. in be million with lower ‘XX, equity to million issued $XX for our from period million $XXX historical $X $XXX term of assumptions to of term line net to prior to and total. We net of $XX million range X% the $XXX comparable collections and estimated to $X.X equity X% at in points basis our XXX properties. million had expecting the headwinds million million forecast existing for more averages. forecast is expansions of the year. to G&A forward

million basis our roughly the have of made will And loan in of be credit reserve $XX to obviously plus there a mortgage of million given And in XX XX%. that PRI minus of X%, interest we or yield XXXX. set repayment contributed points. have We XXXX. lower in Dispositions won’t $X mid-XXXX income, XXXX at

reflect our acquisitions does dispositions XXXX. not guidance this custom, or As in is any

and from does please not note also disclosure accrual relating will XXXX approach to believe for range. as cash guidance. lease-up that assume both. One continue With big respect expanded given XXXX XX% any to that at Santana revised growth we those we our influence we in Timing X-K of for terms end our FFO upwardly within our have the range go, goal to adjust compounded opportunistic And XXXX, posts to in moving up the tenants X% basis to a will It achievable. is on from a to We basis. where West our

color that, share for are is years. $X realistic specific of line the with in coming timing, the Now And open FFO we target per not while operator, questions. please providing a on

Operator

Sandler. Piper Goldfarb [Operator first line the of question Instructions] Our from comes with Alexander

You may question. proceed with your

Alexander Goldfarb

Good Hi, afternoon. guys.

here. questions two So

first The apartment is rent all what the we’ve around and question rent growth is obviously, seen is, rebounds on the tremendous. side,

On the the I mean, side, the off well XXXX. been the been has retail it’s saying sales recovery just companies charts. mall exceeded have

guys staying are people You is early talking XXXX. XXXX a It’s just to similar. in believe during all hard this their homes of catch-up that and

have So do pace XXXX, year and therefore, retail, a at then We this you next this Or wonder. sales years? all is the sort of and think rebounded leveling in something is you – that do rediscovered sustainable accelerated there several Or this people work? have themselves retailers one-hit else think or is and just like are out? sales

Don Wood

to that important we the this said, etcetera, to happened – stay. is It’s The of at really how national I primarily realization a the eat to to seem – the are view. of everything the view, of play shop mean through very a through in COVID out into that we really Alex, people’s the question mean, how It’s socials terms was. that our again, going day. which think I and do recovery important was I view, there is. Yes, of something postal is at here interesting it’s sales, that looking – that’s suggests see. And it not

that a So states. I lot of think

about outlook think we pretty to is side. few on hurt in again, is of it places early want and no first But part barometer. thing, residential and places. residential got really kind And address have interesting that it into The only – going me. a the is The COVID. I the other is There on as of it’s the our doubt it you recovering a to you it way question, interesting touched

Montage. of If at next units, And XXX-unit you ‘XX, which we’re ‘XX, before opening door. the rents than second up that at in we in those Row. $X. Micelle. October, but thought, it’s a November, were had February, faster Assembly fourth leasing It’s look and Ironically, It’s the we called up that in of the average in in if remember size we it’s that interesting. that than $X.XX Assembly, It’s now COVID, fourth building, right XX% is January that And opening we more XXX February December any quarter also and call of building, and up pre-COVID, big are deals happening not building, building really at $X.XX. and big sample over at quarter, leasing of because it’s pre-COVID Boston, are well a January you

respect So office respect – really there to an that happening come with in to some of to is that lifestyle, energized time respect something to that, the what’s really terms shopping, that’s with with feels level, piece there like certainly stay. here to pre-COVID is me here to is to

Alexander Goldfarb

recent And – – with stores I the targeted, question then has is hit. that have waves been happened your have and mean, Okay. been portfolio prime second the that the

or said, in no in and stores. the On to I’ve to the all settings, urban asked people is their bit earnings changed so costs story. everyone is has companies but speak leasing of others it’s yet plans tenant that are there moving security or more far, when public little speak we a involved some companies a And different privately that the retail calls,

it that change fallout. is costs, fleets? their is, really or the is portfolios no appearing that, change, leasing in question Tenants is general, at their shifting but a retailers it’s yes, my seeing are look So that, general, not it but certain as is increased nationally in markets, in aren’t really a fallout. security is there there is no just There been lease been they

Don Wood

of there of markets, I our can forward tell properties can the change moving retailers’ really plans been not to in our for any price. you because I respond in only and has a

Alexander Goldfarb

Don. Okay, okay. Thank you,

Operator

Bank the from Craig question America. next line of with comes of Schmidt Our

with your may You question. proceed

Craig Schmidt

you. Thank Yes.

external come out your so being have growth. impressively on of guys rather COVID aggressive, You

up taken may acquisitions with value adding compelling wondering really You’ve cap though, your on proposition? when just tougher rates, the start to so over redevelopments is just you pressure and to are I’m redevelopment. acquisitions push and because rates continue your it’s you cap a to buy attractive on favor continued

Don Wood

question, Craig. Great

on from jump the first, Jeff side. that particularly let acquisition Let’s

Jeff Berkes

Yes. Hi, evening. Craig, good

think I you’re on ‘XX. were we happy the right really We in done point. got what with

As Dan know we great. value-add prepared All his mentioned in deals in forward, speaking, opportunities have when the going remarks, was as in half those great the is that you of buying which generally ‘XX and got year, very first done which the we properties we you bought something. think redevelopment are important

just talking equity numbers [indiscernible] where half you by for teens tightened average, center. work, equity especially a head that’s the the public out scratcher The trades years the or of community now, are look than they IRR, support to make about pre-pandemic. it’s needs in issued be cap you work second property The in growth as numbers what And you’re whether when to real a your lower grocery up the to the yield implied were growth the or the neighborhood rate a anchored don’t year on and how of asset. normal the few level

Don said, so the We’ve as because kind bag. to tools you’re pressured always in spot we’re many have, about as think I of that careful felt we’ve been you never disciplined stuff. on. buy really anything because And tool know, we

be most if the two to us continue ability that that by good done take is have and in you of doing here the prospects, growing of in it’s releasing, that just have stuff, if last buying So opportunities, idea, kind of densification the not growth and don’t about what what view. for lease-up careful a to don’t we’ve decades go-forward today’s opportunities, we good very got have all advantage been we those buy sure will make But my certainly, ability stuff. source you market will something

Craig Schmidt

you. Thank

Operator

of question McConnell next the comes with from Citi. Our Katy line

question. your with proceed may You

Katy McConnell

Hi, everyone. Thanks.

updated through for could of the walk could us range some more would still Just And swing wondering year. get It of throughout you end the the what to year? the FFO range? key you to if wide narrow need that higher fairly is low you guidance your factors that a or to for happen this

Dan Guglielmone

Look, how Dan. you? It’s Hi, to X% X% I Katy, range that property. of given think for are we’ve a comparable

prior of what of and kind well kind we’ve what prior going as period of that that Also is both we forward think of reduced. regards term current. with kind in as goes fees, do collections, kind I which just to

given Our period prior rents range. been also reduced. have We’ve a

think XX, gave of bit with expense in little guidance of Page to million. kind we a see $XX I range $XX regards you’ll on to our G&A a of million

quickly development, online I our things the as year, of use. of developments started. a can as bit we to a that rent rents well sense how at rest of can also little of think we the come it’s capital of the put how And – we how some then range can redevelopment much equity the get raise. also We’ve

So host of whole I a think those. there is

around our that to I levers another will cash extent. X%, be include range shows given that include are really, points. regards That’s of to in not not basis we’ve kind Again, X% regards in get a XX there – us think, Obviously, revenue up, the does plus an changes any those not of stated with comparable with acquisitions, does dispositions, accrual. to recognition X% at our of versus or it include think range minus guidance. does to I that one. credit reflected But reserve

Michael Bilerman

can Katy. about wondering with back was Bilerman think and just you step here I capital if Michael It’s Don, uses. maybe sources and

was it that and you comments, $XXX And have have targeted acquisition redevelopment underway. million have sounded spend your in on of opening you the this You for transactions development that of million number front $XXX to like year. there

could equity. if $XXX think bit funding is know to be. know you growth common all equity, deeming equity You of equity you’re it effectively if about I million list and don’t But don’t a about here about just to that $XXX how little that – how that I talk million assets. significant which be is selling

Don Wood

bet, Michael. You

forward So to is the million. contracts of that got first thing remember $XXX we’ve got you equity

Dan Guglielmone

Don. million, $XXX

Don Wood

at $XXX or sold, be already taken $XXX equity XXXX million is another million been our will that on down that has That’s important. in point. Incremental budget so in that. of some top

We’re – also couple about you another or so think probably looking there. should of at should million selling assets that $XXX a think

we really respect So important. balanced with to a very that – what trying be the again, have lot already. of use do we’re certainly it to is That’s raised that capital would

company. We’re the not lever up going to

going the other We’re way.

new But stand out assets own. of with the of they their what of deals stuff would type going. those so so they’ll way are, the dispositions notion on do. of finance And we’re And best financed, on to the the in the equity couple we depending how respect good and would and be will those committed, deals figure far really that shape we’re we because pre-funded that’s where to

Michael Bilerman

And you I do thank how – added you all the supplemental, you perspective, the think yield guess from a about that. to back volume for

off relative mean you your so attractive and discount and I paying where deals versus got out of NAV equity activate issuing going for to lower at is, guess, where pretty Some year, not market yields is relative more those being last priced certainly the acquisition a stuff to I why the due to diluted… that’s in and right? cap acquisitions where your wheelhouse to rates

Don Wood

portfolio get to is not mixture old under the property date the couple single source of yet it automatic Michael. growth. where that And growth, Those terms in a been all, has capital lease-up of two things automatic years producing. you, which goes. you, is with – is agree that of First you level of huge. spent it I biggest are have to has agree the that growth you all FFO in with is not that fully after that still next first lease plain is fully And really I of

thing respect other make more. with this have The They agree to sense. and lot where could I is acquisitions, with got to not of you a

transaction order had tell at years in we handle you is Now XXXX one back. that that I we’re couple to will of specifically looking there that a a

perspective. overall But I up on beyond be able tax do overall will you that, that there are right. XXX% a point agree tax your with we more. step is makes – So an to reform couldn’t to deal sense

Michael Bilerman

Coco in weeks. Okay, thanks. you a few at See

Operator

from Our McGinniss the Scotiabank. of Greg next question with comes line

with proceed your may You question.

Greg McGinniss

just looking rent market quite Hi, that And Rent spreads guess growth less are I growth? either XXXX? seeing in then in to or obviously recovery seeing strength at what you talk the relative good leasing Could exciting. more rent are leasing, you’re volumes you’re strong. evening. about slightly regions

Don Wood

we go X%, a can start X%, deal, quarter, are be always was rent aren’t ‘XX, X%, not accommodate jump we deals when up. and way the I We at be only CDS the ‘XX, center drive-thru. center X%, drag a That this our of a sit times, left it. will overall, the are wouldn’t rollovers case we particular things is it, happen. that I screw got a that shopping replaced best in those is company. and of drive-through. had XXX the what it but specific XXXX Road, payer big this – where did for that place just a Those mean, where be you there expect could will about – with line that this would the way one through. all to drag said is be That I that specifically and X%-or-so They doesn’t we something to at that, either than to Barrett’s that Yes. get I that like street wherever eight But look higher overall a I that’s When in have to comfortable not have we shopping the to X%, able In without When, that. was across we this – that up. good in or to that example look down on been for which you that compared overall.

the go So, there things of ways excess throughout talking supply our particular that. But product. both are company. a always of of demand the like of a you level that’s couple overall, is They in about

growth So rents. overall, you should expect continued that in

the add you kind great like needs taking my is, big like perspective, expand able destinations of you a to to And or but retail that’s it. the gosh, considered other line, great growth. bottom being properties there like when really that translate growth Row, that through as settled Santana Pike fully at able to Rose, That are you to a down what, be have. that say, The buildings what & to and Assembly, My of an because risk-adjusted and hear be thought terms in of you to kind bottom – thing sit though, have from of numbers expand no line. rollovers,

bottom number growth expansion that property that, for and consistent leasing all plans, when the years. think PIPs, you the both winds the game. is of would a and of So, and the the improvement name line That’s up, I sustainable that show happens, of the

Greg McGinniss

were you regarding think you the you. pleased Well, a And Dan, Alright. estimate, appreciate referencing, we to potential in the which comment then gave are thank portfolio? how the those ago what first NAV weren’t from a that which Michael that otherwise, cap all you giving just us in market his you do your rate seeing acquisitions perspective? few and about. I value impacts of I know, it…? too believe years I am place And

Don Wood

Assembly, we all, I shopping of know. clear of It’s in been same just – strong not it, at Dan well we value a that. what’s come what that’s on big topics at when take you CocoWalk and a being mean page don’t at good are today we well that First really – terms Pike when the Rose, it’s & hit see the It’s markets to It’s you when I between that look I. general. some you Look, and the – when going you in the Greg, have, look added publicized. look want so so really etcetera. at take that’s are at be projects that centers to or of is

I at in center, you obvious to you about are store. across board it’s company. across think the that the this I talking board think pretty shopping every but are Not sub-X going in –

are do NAV for. think rate. important. at that’s that the that, me, it going you you grow be can when like a cap how to so few thing what’s going that should Where most that, ties is growth, The a NAV in look important you and But about the to the into be. what And critically obviously the thing years you math. man, That’s to the that buyer paying because is is way

Greg McGinniss

Okay. expect should And acquisition then units just to follow-up to in some side? on in of of help we that, the use structure see structure to with that the OP on terms place, new

Don Wood

that we opportunities – no. such found relatively was, we administrative to that do is an foundationally any be in That do that disadvantage so weren’t was simply to the simple frankly, it should the that do Maybe come maybe able inexpensive a change up. and yes, way way or that, to

But it means a comfort, But thing of or at are couldn’t way are the so one a in you and the about And not – deal it’s good of it’s some at instead of can more great. generally thing. looking deals four any with know seller utilize I talking to thing. do we I extent that give deals look is that handicap yes, that it. will So, kind bad that we you particular the

Greg McGinniss

Thanks. Alright.

Don Wood

You bet.

Operator

Sanabria of Capital. Our next BMO the with question Juan line from comes

with You your may question. proceed

Juan Sanabria

the for time. Hi. Thanks

that the the to in and can out year-end XXX quarter, the of with gone recovery any of here the I throughout think year-end. occupancy cadence give some remarks COVID in But growth curious window us seasonality year. first seems you the mentioned from sense you see the basis points to-date. about if have prepared but to just Typically

just share how have to we any curious for occupancy should you think So, on ‘XX? wisdom about if

Dan Guglielmone

Yes.

it’s trying up XX.X% I growth that a to range. – we into are high-XXs that and get range to think where

key – I metric. increase of in there pro occur is that where on I should think don’t will occupied think you how by it terms just the model quarter. rata a particular

Juan Sanabria

to on Okay. Great. how a that leasing on, in discussions then give NOI of property that us color us NOIs timing on incremental ‘XX more here or you any confidence? of give to near-term could signing are the comes West, the that how should expectation potentially? like Santana a progressing, those we as for adding And think just hoping lease little And maybe development a

Don Wood

life my toured kind than now. this am I more this. know so should to we don’t been I the this horserace On of give the should of bit that am it, some point. going issue, other, on have the right never to I little good to in that the talking less making versus is happening more the a that put a on are I conversations can’t progress. time And a particular are one of about comfortable that want at anything with or helping than I I given very bit what than you a are signal more of nature on I and tell not negotiations notion I

Sorry.

Juan Sanabria

Thank Understood. you very much.

Operator

line the question next Our Haendel comes St. from of

Mizuho. with Juste

You may question. with your proceed

Haendel St. Juste

backdrop. I change wanted Hi last Don. I to more that aren’t quarter. why given basis we you curious the Hope you is tenants, seeing cash don’t still I I think on guys guess about here. am a the are progress ask versus there well. elevated pretty

You the early, your versus doing outlook? obviously, your that we and up. optimism are voice of do tons leases, that’s rents are in square going How

Dan Guglielmone

to tenants? you are your referring the cash question regarding basis What to regards with

Haendel St. Juste

XX% percentage, see. let’s – at I of The am looking here

Dan Guglielmone

to for pre-COVID, basis look, likely basis. from accrual switch basis Yes. back to is a chunk. high we on us of some with be hurdles begin an already. There them even big a had our to to is plans fairly for no And cash cash us do to a There Most restaurants that.

we So, I to in we will that have and with consistency guidance deferrals, not to regards progress from there repayment see progress, make it’s other to But as see wouldn’t need of – with accrual. of that’s is wouldn’t anticipate then payments, anything though to kind our and making we nothing why cash I any regards need to those and change – you in anticipate decisions.

Haendel St. Juste

was what pre-COVID, Got was And what the clarity, that relative? but range Yes. it. for

Dan Guglielmone

tenants around ABR, big chunk just point kind rent a base quality as Probably of any restaurants, of that in our percentage a normal has lower was quality, one tenants time. at lower of of and cash the been then mid-teens

Haendel St. Juste

Got it.

on sense perhaps I labor to more timelines focus timelines that. of or rent tenants am side way? rent question rent last the year, And of supply rent for note Okay. And anything of the chain Any compress commencement just a so with constraints. on opened Thanks. guess to commencement. and those perhaps I able collections, work you on this And not am I year, question do Thanks to some certainly, commencements, risk curious of are rents? meeting the any of in risk some any and a to

Don Wood

right in. a on with that. we not. square And on best to of some trying store side, is Wendy stuff about floating frankly, this. are standpoint a country get that which to the is in a the great of that including now. side, can’t a in partnership about cities about to least differently quite the stuff to questions because work lease chain the whether relationships you the yes Yes. the with in staffing there, been where helping right boy, as no things as success can the have have all and the in build-out And risk have just this, in chain we and can there supply we and permitting deal. getting there mean be that equipment, us, of tenant in talking all But loves we eye process them the predictable the that’s the do. time, relationships means you from is – have opening, started to means The that is components more it, to open. part done on And of over provisions for all say, you at what’s where always you in some big to you continue some real you argue good But are with mean likely you Does is there look asked will tells I that that HVAC give up get it we are there tenants take over, to had of there find of with able are and certain whether talking supply And course, with of the are equipment bet it, is the you Haendel. look, we store do as answer is it going are about able the partnership

So, past all company the leasing the have hands dates able that is X for its best square that in this sure or the chance to million we that on forecast. has of feet done before have making been at starting on got

Haendel St. Juste

the give that guys you $XX updated I rents? for think yet an side million. like but not was number Could last quarter, figure

this XX% hit to you us…? year. expected You give Can

Dan Guglielmone

– that what’s occupied, not identified and about and sign occupied with a $XX million. No, leased Yes. and between is difference our

redevelopment is gets $XX going far up of total a kind of $XX non-comparable our potentially. forward in got the our effectively also about rent that signed so chunk big of been starts or what’s million. pipeline basically and in currently is well have into We as That million-plus in you current XXXX that pipeline as our deals have

good some stand, over ‘XX. see we about into a upside ‘XX feel of as So, and driver and in we big where we that

Haendel St. Juste

Thank guys. you, Wonderful.

Operator

Our next line with Compass the Van comes of question Dijkum Floris from Point.

with may your proceed question. You

Floris Van Dijkum

all NOI pieces. the what I coming asked following if more be which as do development guys from taking excluding on million Thanks Actually for up pipeline, sort my NOI of of Haendel up to you of if the well. see $XX about I math, growth the than could here question. I mean, online got I these million, add have up identified $XX

a is So, double-digit but going double something missing are into attractive. factoring growth ‘XX this digits. in it Are be and obviously, end if back pretty ended come not the – we we but ‘XX going NOI here amount of comfortably of here? into at ‘XX, all by significant in will seems looking we That ‘XX, probably start online to out,

Dan Guglielmone

to think the Well, online. come going interest away also projects you keep sense deliver on of growth the at we will strong that. of we kind the though, I capitalized disclosure buildings. of Keep there in developments is look, our a additional as mind, in mind, I get those offset mean, as have look And can big

tenants. we off shut interest. deliver as signed we those leases have there We capitalized spaces and to Obviously, the

that’s a an of offset. So, bit

how just grow Obviously, we to redevelopment flows down what So some It’s on quickly is obviously, expansions kind with capital NOI the got. we of not associated the that’s and bottom top. of have there that line. the

Floris Van Dijkum

alluded as residential you higher having have significant in think, that upside a that take, suggests of How some And residential as your then potential the will building XX% rents that sort to of as well? view, signing well. upside that it of door, harvest in next long to Don than rents presumably, leasing, your some some rental existing do here

Don Wood

was the be Yes, we end would in so year, that’s most really, is back-to-work for COVID. XXXX. great, XXXX, our, what’s that of and in positivity during based going life the particularly a because strongest question, was stuff bright year, and the markets, which That hurt on spring a one great up a of And big little season, Haendel. building And of on at perspective and spot that these have luck, not creation which our the the perspective. a that stuff be a by job of now, should through right interesting market will that if all good perspective it would later real for Boston from be is bit Assembly source a a which a sciences is

Floris Van Dijkum

it for That’s it. me. Got

Operator

Linda question Jefferies. of next Our with the [Operator from Tsai Instructions] line comes

proceed with may question. You your

Linda Tsai

to X%? in and of the expectations growth POI X% discuss Hi, your What’s can you between expenses? growth revenues embedded balance in

Dan Guglielmone

Yes.

a good I of grow be should I this we should year they kind regards X% that expenses think bigger to with would kind year, we – real have of from expect rent – there them have modest, and obviously, just credit keeping course this so forth, all embedded that taxes impact. the the reserve collection in. and low expect estate prior would level. collections from got kind be of perspective. just And the of that is expense there growing, with lower of with obviously, offset fees term in ordinary period the And some and growth so occupancy some growing, then beyond factor

both kind real on – estate OpEx X% taxes. on So, embedded of the pressure, got OpEx, traditional kind a higher get to all that to and regards forecast expenses, And of X%. little increase but to all that’s of just a maybe with in I bit X% but those would inflationary

Linda Tsai

bad you XXXX? forecasting in are what for then And debt

Dan Guglielmone

XX – like I is points. minus said, basis plus it, It’s credit or call reserve our X%,

traditionally, a elevated, there bunch the It’s to that’s of as a And we in going But of component would what’s is think be and going the kind I that XX I there in bad will at in are ‘XX debt to – reserve. that collection to north least expect, X%. range of points basis of credit – that’s is it probably in of kind even be above be that. reflected of X%. elevated a X%

Linda Tsai

terms then particular the that And Is mentioned anything Marcella there comments, in of getting moving have that earlier in the is at rents. XX% lease-up you in? demographics that in are Thanks. driving higher maybe

Don Wood

relocations a market, life No, lot job-creating into from returned to job of fire. the absolutely the growth. just Boston. It’s work. it’s other is job market It’s of growth It’s in powerful mean country. on impressive. I a Very parts science

Linda Tsai

Thanks.

Operator

today’s we gentlemen, have I over remarks. Ms. turn to and session. of closing would this end Leah reached to back the Ladies question-and-answer for like Brady call

Leah Brady

forward weeks. of Citi in look We a to today. everybody us joining for conference couple at Thanks seeing

Operator

This concludes today’s conference.

Thank may disconnect You you rest day. your your this at participation, your of the time. lines for enjoy

Federal Realty Investment Trust (FRT) 11 Feb 222021 Q4 Earnings call transcript