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Who is Federal Realty Investment Trust? One of the oldest publicly - - PowerPoint PPT Presentation
Who is Federal Realty Investment Trust? One of the oldest publicly - - PowerPoint PPT Presentation
Retail REITs Andy Blocher Senior Vice President, CFO and Treasurer Gina Birdsall Investor Relations Coordinator Who is Federal Realty Investment Trust? One of the oldest publicly traded equity Real Estate Investment Trusts (REIT) Shares are
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Core Markets
Federal Realty’s assets are located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, South Florida and California. Federal Realty’s assets are located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, South Florida and California.
SAN JOSE / SAN FRANCISCO LOS ANGELES BOSTON NEW YORK PHILADELPHIA WASHINGTON, DC
Core Markets Represent 28.3%
- f U.S. Retail
Expenditures
BALTIMORE Source: Merrill Lynch Research SOUTH FLORIDA
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Washington Metropolitan Area Properties: 27 Cost: $1.09 Billion
- Avg. 3 Mile Population: 126,000
- Avg. 3 Mile HH Income: $124,000
Demographic data provided by ESRI.
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Types of Retail
Neighborhood and Community Centers
- Grocery anchor
- Typically necessity
based small shop tenant mix
- Strip center format
with large parking lot and bank or restaurant pad sites
- Trade area of 1 to 5
miles
Trade area data provided by Merrill Lynch.
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Types of Retail
Power Center
- Big Box or “category
killer” retailers
- Little to no small shop
space
- Trade area of 5 to 10
miles
Trade area data provided by Merrill Lynch.
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Types of Retail
Mixed Use and Lifestyle Centers
- Restaurant or
entertainment anchors
- Small shop mix a
collection of boutiques, restaurants, gift shops, coffee shops, etc.
- Often includes a
plaza or community space, gives a “town center” feel
- Trade area of 5 to 10
miles
Trade area data provided by Merrill Lynch.
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Challenges facing Retail REITs
- Slowdown in consumer spending, many consumers are “trading down”
- Tenant bankruptcies, unexpected increases in vacancy
- Tenants have more leverage when negotiating new deals
- Retailers are finding it difficult to obtain loans in order to grow or open
new businesses
- Rent relief requests to landlords
- Capital Markets are highly constrained – some REITs are unable to
refinance debt, transactions market has slowed down, valuation has become difficult
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Retail Categories
- Salon / Spa
- Clothing Boutique
- Dry Cleaners
- Fast-Casual Dining
- Pharmacies
- Restaurants
- Grocers
Popular Perception Category
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Retail Differentiation
Center #1 Center #2
Mainstream Grocer Gourmet Grocer Drugstore Collection of diverse restaurants Hair Salon Upscale Spa Pizza Restaurant Boutiques Dollar Store Luxury Shops
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Retail Differentiation
Center #1 Center #2
Mainstream Grocer Gourmet Grocer Drugstore Collection of diverse restaurants Hair Salon Upscale Spa Pizza Restaurant Boutiques Dollar Store Luxury Shops
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Retail Differentiation
Center #1 Center #2
Mainstream Grocer Gourmet Grocer Drugstore Collection of diverse restaurants Hair Salon Upscale Spa Pizza Restaurant Boutiques Dollar Store Luxury Shops Toledo, Ohio Bethesda, Md.
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Key Considerations for a Changing Economic Environment
Federal Realty:
- Locations have the best supply and demand characteristics
- No tenant accounts for more than 2.6% of our revenue base
- Percentage rent comprises less than 2.0% of our rental stream
- Not dependent on acquisitions to grow
- Debt maturities are well-laddered
- Very low leverage
- Development pipeline is very manageable to its size and its
profile
- In-place leases are still significantly under market