Federal Realty: Investor day preview: Clarifying the narrative, valuation and growth algorithm

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Federal Realty: Investor day preview: Clarifying the narrative, valuation and growth algorithm

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Federal Realty

Investor day preview: Clarifying the

narrative, valuation and growth algorithm

Reiterate Rating: BUY | PO: 125.00 USD | Price: 114.13 USD

Entering higher growth phase as past headwinds subside 14 May 2026

FRT appears set for outsized growth vs shopping center peers, now that several prior Equity

headwinds have been resolved. Over the past several years, FRT’s growth profile has

been constrained by office leasing uncertainty, capitalized interest drags, and Samir Khanal

refinancing headwinds stemming from higher rates. With these pressures now largely Research Analyst

BofAS

behind the company, the story appears meaningfully cleaner. We forecast FRT to deliver +1 646 855 1497

core FFO growth of 6.8% and 6.5% in 2026 and 2027, respectively, positioning it among samir.khanal@bofa.com

the higher-growth names within the shopping center peer group. Jeffrey Spector

Research Analyst

+1 646 855 1363Internal and external engines driving outsized FFO growth jeff.spector@bofa.com

FRT’s growth profile is driven by both internal and external levers. The internal growth Andrew Reale

algorithm in an occupancy neutral environment is supported by 2.3-2.4% blended annual Research Analyst

rent bumps, ~11% annual lease turnover (next 5 yrs.) with spreads in the HSD-LDD BofAS +1 646 855 1272

range. Longer term, we believe FRT can deliver annual SS NOI growth of ~4% including andrew.reale@bofa.com

redevelopments. Externally, capital recycling is underway, with over $330mn of asset REITs Team

sales since 1Q25 at a blended cap rate in the 5% range. Proceeds are being redeployed BofAS

into a redevelopment pipeline with yields near 7%, and strategic acqs.