Q4 2025 Federal Realty Investment Trust Earnings Call [BACKUP]

February 12, 2026

Donald C. Wood: $7.42 to $7.52 per share, with no one-time adjustments in the forecast. At the midpoint of $7.47 per share, this represents about 5.8% growth for core when compared to 2025, and 3.5% for NAREIT-defined. 2025 core FFO is $7.06 per share, and NAREIT FFO is $7.22 per share, with the material difference being the $0.15 of New Market Tax Credit income. Guidance drivers through 2026 include comparable POI growth forecasted at 3% to 3.5%. This assumes the trajectory of occupancy in the first half of 2026 moves into the mid-93% range before returning above the current 94% level and up into the mid- and upper-94% range by year-end 2026. As a result, we are set up well for a strong 2027 on a comparable basis.

Donald C. Wood: Comparable lease rollovers are forecast in the low to mid-teens. Incremental POI contributions from our development and expansion pipeline is forecast in the $13 to 15 million range. Please see some additional disclosure that we've added in our 8-K, at the bottom of page 29, with respect to the quarterly cadence of POI for 2026, from the development pipeline. Guidance reflects a full year's contribution from the $750 million of dominant high-quality assets acquired in 2025, at roughly a 7% blended cash cap rate and a 7.5% GAAP cap rate. We are assuming our 1.25% unsecured notes are refinanced at a 4.25% to 4.5% interest rate under our available bank facilities.

Donald C. Wood: Please note that this represents a 170 to 180 basis point financing headwind, without which our midpoint core FFO for 2026 would be growing at roughly 7.5%. We've assumed a total credit reserve of roughly 60 to 85 basis points of rental income in 2026, given our limited exposure to credit issues. Additional guidance assumptions that we usually talk about here are outlined for capitalized interest, redevelopment spend, G&A, and term fees on page 29 of our 8-K supplement. This guidance does not include any acquisitions in 2026. None are probable enough at the moment. With respect to asset sales, it assumes only the dispositions announced last week, the Sora and Courthouse Center. For all other acquisitions and dispositions, we will adjust our guidance, likely upwards, as we go.

Donald C. Wood: With respect to quarterly cadence of FFO in 2026, the first quarter will start with a range of $1.80 to $1.83, with the normal Q1 seasonality and asset recycling activity impacting sequential cadence from Q4. The second and third quarter will be in the mid-$1.80s, and the fourth quarter in the mid-$1.90s per share. And with that, operator, please open the line for questions.

Operator: Thank you. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. At any time your question has been addressed and you would like to withdraw your question, please press star then two. We ask that you please limit yourself to one question and rejoin the queue if you have any further questions. The first question comes from Michael Griffin with Evercore ISI. Please go ahead.

Steve Sakwa: Great, thanks. Maybe just turning to the investment pipeline. Don, or maybe Jan, can you give us a sense of, you know, what deals in the hopper are looking like today? You know, I realize you're not guiding to anything this year, but is this more of what we've seen at Town Center in Kansas City or at the Village Pointe in Omaha? You know, is it stuff in kind of your core coastal markets? You know, what are you really targeting, I guess? And, you know, do you have a feeling that we could see some deals close, you know, at some point this year?

Michael Griffin: Great, thanks. Maybe just turning to the investment pipeline. Don, or maybe Jan, can you give us a sense of, you know, what deals in the hopper are looking like today? You know, I realize you're not guiding to anything this year, but is this more of what we've seen at Town Center in Kansas City or at the Village Pointe in Omaha? You know, is it stuff in kind of your core coastal markets? You know, what are you really targeting, I guess? And, you know, do you have a feeling that we could see some deals close, you know, at some point this year?

Donald C. Wood: Hi, Michael. Jan. Well, thanks for the question. Look, we're still targeting large, dominant shopping centers. We're focused on new markets in the middle of the country. We're still also trying to acquire, you know, in the coasts, in our existing markets. So, you know, right now there's a couple of acquisitions that we're working on. We expect to see a lot more opportunities coming in the next several months, larger transactions. So, you know, some real reason to be, to be optimistic. It's a little too early to kind of forecast what, you know, how much we'll be able to buy this year. But based on where we are today, and, you know, similar to last year, I would expect that the bulk of our activity will occur in the second half of this year.

Donald C. Wood: So from my perspective, reasons to be optimistic.

Operator: The next question comes from Cooper Clark with Wells Fargo. Please go ahead.

Dori Kesten: Great. Thanks for taking the question. I wanted to talk about the multifamily development and also ongoing recycling plan. Curious how much more peripheral multifamily you could potentially market for sale this year if you're able to source attractive opportunities on the acquisition side, and also where yields stand today on the entitled multifamily development pipeline?

Cooper Clark: Great. Thanks for taking the question. I wanted to talk about the multifamily development and also ongoing recycling plan. Curious how much more peripheral multifamily you could potentially market for sale this year if you're able to source attractive opportunities on the acquisition side, and also where yields stand today on the entitled multifamily development pipeline?

Donald C. Wood: Sure, Michael, let me start with you on that, or Cooper rather, sorry. Let me start on that. You know, it's such a kind of unique thing that we have here by having that value in there. There are still opportunities for us to monetize some residential product. And, I'm not gonna go into the specific ones right now, but you could probably guess. Again, they're peripheral to our primary mixed-use assets and our shopping center assets. But, you know, that stuff is at 5% or lower in terms of those cap rates, and that's just, you know, it's just a real advantage.

Donald C. Wood: Now, in total, there's probably another $400 or 500 million to be able to do of that ilk. Not sure that we will do that. We don't have them in the marketplace yet, but I'm pushing hard, frankly, to start doing that come the Q2, Q3, and Q4 of this year, to the extent we find the assets that Jan was just talking about a minute ago. You have one other - you had a, a follow... You had a backup question, Pat. I don't remember what it was. Anybody?

Nicholas Yulico: Yields on development pipelines.

Greg McGinniss: Yields on development pipelines.

Donald C. Wood: What's that?

Nicholas Yulico: Yields on residential development pipelines.

Greg McGinniss: Yields on residential development pipelines.

Donald C. Wood: And on the rest, basically, we're able to underwrite the new development pipeline somewhere between 6.5 and 7%, on most of them. The reality is those are low 5s cap rate assets today. If what happens as what I think will happen is while we enter into it, 6.5 and 7%, you'll see strong growth in those assets. But the one thing that is crystal clear is at fully amenitized shopping centers, those rents are higher, they tend to have more retention, and they tend to grow faster. So I'm just real encouraged about this program, which I don't think anybody's got the expertise that we do, on the shopping center side to be able to do this kind of stuff. We've been doing it for a long time.

Donald C. Wood: I think you should look hard at that portfolio, and we'll be talking to you more about that as the quarters come.

Operator: The next question comes from Andrew Reale with Bank of America. Please go ahead.

[Analyst] (Bank of America): Hi, good afternoon. Thanks for taking my question. Wendy highlighted that 2025 delivered the strongest rent spreads, and I believe over a decade. I'm just wondering, is that pricing power being driven by any specific property types or regions, or is that really truly broad-based? And do you view these levels of pricing power across the portfolio as sustainable throughout 2026?

Andrew Reale: Hi, good afternoon. Thanks for taking my question. Wendy highlighted that 2025 delivered the strongest rent spreads, and I believe over a decade. I'm just wondering, is that pricing power being driven by any specific property types or regions, or is that really truly broad-based? And do you view these levels of pricing power across the portfolio as sustainable throughout 2026?

Wendy Seher: Thank you for the question, Andrew. I do consider them broad-based. You know, it's a good time to be in a COO position with this high demand that we're having across the board, and limited supply, and the kind of premier properties that we own. So, you know, it doesn't get any better than right now. I will say that what you're seeing on being able to drive rents, if you look at our last three years, we are consistently overall driving rents higher and higher percentage-wise every year for the last three years. So I'm really thrilled with that.

Wendy Seher: Then, when you look at, you know, the demand on the anchor side, you're gonna see that our occupancy is going to be kind of driving up as we head into the latter part of the year. So yes, all metrics are good right now. And I do think, although Dan's gonna look at me, I do think, given what I know of today, and we look at our rollover for next year, we should be able to be equal to where we are today.

Operator: The next question comes from Greg McGinniss with Scotiabank. Please go ahead.

Nicholas Yulico: Hey, thanks for taking the question. Dan, I was just hoping that you could kind of give us the breakdown on the same-store NOI growth, and then the primary pieces that are kind of adding on top of that to get to the 6% growth. That'd be appreciated. And if there's anything in the term fee, which is bigger this year than last year, that's like known and in particular, it'd be appreciated. Thank you.

Greg McGinniss: Hey, thanks for taking the question. Dan, I was just hoping that you could kind of give us the breakdown on the same-store NOI growth, and then the primary pieces that are kind of adding on top of that to get to the 6% growth. That'd be appreciated. And if there's anything in the term fee, which is bigger this year than last year, that's like known and in particular, it'd be appreciated. Thank you.

Donald C. Wood: Yeah. No, with regards to kind of getting to the 6% FFO growth, you know, roughly, and as I've been talking to folks, the 3% to 3.5% that I've been talking to folks about over the course of 2025, roughly about $0.30 of growth there represents probably a good, you know, more than half of the growth in FFO drivers there. You know, and then with probably net from acquisitions and net from redevelopment, you've got about $0.12 each there. So very, very consistent with kind of, you know, the guidance we've been giving. The refi headwind is roughly kind of roughly $0.12 in terms of refinancing the 1.25% bonds, the way we're planning them out.

Donald C. Wood: That gets you to kind of almost that 6% FFO drive. And, yeah, our comparable growth is pretty broad-based. It's rent bumps, it is rollover, it is parking, it is across the spectrum of, of kind of what we, you know, create in terms of a, a comprehensive shopping center growth profile. You know, nothing stands out there. And with regards to term fees, it's slightly higher than last year. We're just under $6 million. We're guiding to $7 to 8 million. And we kind of feel like, you know, there's some things that are identified. You know, we'll see how that comes out. That's an estimate, and that's why we give a range. But, you know, kind of in line, our 20-year history is probably in and around $7 or 8 million.

Donald C. Wood: The last 10 years, probably more in the $5 to $6 million. So, you know, you are kind of right in line with the historical levels on term fees.

Operator: The next question comes from Craig Mailman with Citi. Please go ahead.

[Analyst] (Citi): Hey, everyone. Just curious, Don, as you guys ramp up the sales here and acquisitions take a little bit longer or more back-end weighted in a given year, just from a timing perspective, do you have enough cushion in the dividend to either ten thirty-one these from a timing perspective or absorb some of the gains? Or could there be a bit of a special potential here as we move on later through the year?

Craig Mailman: Hey, everyone. Just curious, Don, as you guys ramp up the sales here and acquisitions take a little bit longer or more back-end weighted in a given year, just from a timing perspective, do you have enough cushion in the dividend to either ten thirty-one these from a timing perspective or absorb some of the gains? Or could there be a bit of a special potential here as we move on later through the year?

Donald C. Wood: I think, I think, Craig, that that you can count on us, on us, managing tax efficiently through the, through the, dividend and, and sales of gains and ten thirty-ones. All of those tools are available to us to manage our taxable income and our, our dividend in, in line with what we've been doing for a bunch of years. That's what you should, that's what you should expect, not, not a special dividend.

Operator: The next question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

Alexander Goldfarb: Hey, good evening. Don, you were among the standouts sticking with the NAREIT FFO, not going to core. Real estate, you know, has a lot of-- Yeah, there's a lot of cost, there's a lot of benefits, right? Sometimes you win on revenue, sometimes there's added costs from various things. But as you run the company and look at your team, you don't judge them and say, "Oh, well, take out these items, take out those items. I'll give you-- You know, I'll let you hit your number." You judge your team based on, you know, how they perform.

Alexander Goldfarb: So when you switch to the core, I get it that there's volatility, but at the same time, isn't the whole point to judge the company based on the results they deliver, you know, as sort of the ball lies, not where, you know, you'd like it to be?

Donald C. Wood: Alex, adding on a Core FFO metric is truly simply a tool that's aimed not having anything to do with this team at all, but everything to do with being able to better analyze the financial results of the company. Making it easier for you to see, kind of missing some of the missteps that we've had in the past with simply using NAREIT FFO. And so that is completely what this is all about. What is important, in our view, is that this is not used as a nickel and diming, if you will, of the NAREIT FFO result, but rather, big items, consequential items that just plain old distort the operating results of the company. That's all that's about.

Donald C. Wood: This team is judged on their performance based on what they do day in and day out, and changing to a Core FFO metric will have no impact on that whatsoever.

Operator: The next question comes from Michael Goldsmith with UBS. Please go ahead.

[Analyst] (UBS): Good afternoon. Thanks a lot for taking my question. Comparable POI growth in 2025 of 3.8%, initial guidance for 2026 of 3 to 3.5%. So just a couple questions on this. Can you bridge the gap from 2025 to 2026, any headwinds that would drive a deceleration? And then is that 3 to 3.5%, is that the right way to think about this steady state runway rate of the business? Or as you continue to reposition the portfolio to higher growth assets, can it accelerate from here? Thanks.

Michael Goldsmith: Good afternoon. Thanks a lot for taking my question. Comparable POI growth in 2025 of 3.8%, initial guidance for 2026 of 3 to 3.5%. So just a couple questions on this. Can you bridge the gap from 2025 to 2026, any headwinds that would drive a deceleration? And then is that 3 to 3.5%, is that the right way to think about this steady state runway rate of the business? Or as you continue to reposition the portfolio to higher growth assets, can it accelerate from here? Thanks.

Donald C. Wood: Yeah. The big driver in terms of the deceleration is just, you know, we will be turning over, as Lindy alluded to in her comments, a significant amount of anchor space that's already leased at much higher rents. But there will be downtime as leases end, and we position the spaces to give to the incoming tenants at higher rent. That's about a 75 basis point drag of comparable POI. So the 3 to 3.5 is about 75 basis points of drag from that temporary disruption in occupancy. And so we'll see a spike in SNO as a result over the course of the year. So, you know, we're at 200 basis points. It's been increasing as both metrics increase, occupied and leased.

Donald C. Wood: So we expect that to balloon a bit in the middle of the year, and then come back down by the end of the year as occupancy levels get up into the nine-- back up into the 94%, mid-94s, upper 94s from the 94% level today. That's probably the biggest driver. The second question?

[Analyst] (UBS): Um-

Michael Goldsmith: Um-

Donald C. Wood: Steady state. Yeah, I would say, look, I think historically, when you look back, we're in the 3% to 4% range. I think with some of the acquisitions, $2 billion of acquisitions, and we're seeing that we're operating these assets, I think, better than we had expected, and with growth rates that are higher than the kind of 3% to 4% that we've historically seen in our portfolio. I would hope that that would move up into the upper end of kind of the 3% to 4% range. And, you know, I think next year, 2027, we're well positioned to kind of be in and around that 4% level, from where we sit today.

With no one time adjustments in the forecast at.

At the mid point of $7 47 per share. This represents about five 8% growth for core when compared to 2025 and three 5% for NAREIT defined <unk>.

2025 core <unk> is $7 <unk> per share and NAREIT <unk> is $7 22 per share with the material difference being the 15th of new market tax credits.

Guidance drivers through 2026 include.

Comparable POI growth forecasted at 3% to three 5%.

Operator: The next question comes from Ravi Vaidya with Mizuho. Please go ahead.

This assumes the trajectory of occupancy in the first half of 2026 moves into the mid 93% range before returning above the current 94% level and up into the mid and upper 94% range by year end 2026.

Haendel St. Juste: Hi there. Hope you guys are doing well. I wanted to ask about tenant credit. Seems like the reserves are a bit conservative. Can you provide a bit more color here? What was the amount realized in full year 25, and are there any tenants or categories that are on your watch list? Can you add color on the mark-to-market opportunity for some of the recent bankruptcies, Container Store-

As a result, we are set up well for a strong 2027 on a comparable basis.

Comparable lease rollovers are forecast in the low to mid teens.

Donald C. Wood: Oh, well, one-

Incremental contributions from our development and expansion pipeline is forecast in the $13 million to $15 million range. Please.

Haendel St. Juste: Sure.

Donald C. Wood: Sure. I'll copy that. There were too many questions in there, so let me just start here with regards to the tenant credit. You know, 60 to 85 is lower than we were at the start of the year. Last year, it was 75 to 100. We were about 80-ish, finishing up the year. You know, kind of in that ballpark. It's not a very precise number, but yeah, that's kind of where we end up, kind of 80 to 85 in 2025. The 60 to 85, we don't have a lot of exposure to tenant credit issues. We just don't. We do have Saks. Saks has got two exceptionally strong locations.

Please see some additional disclosure that we've added.

In our 8-K.

At the bottom of page 29.

With respect to the quarterly cadence.

For 2026 from the development pipeline.

And guidance reflects a full year's contribution from $750 million of dominant high quality assets acquired in 2025 at roughly a 7% blended cash cap rate and a seven 5% GAAP cap rate.

Donald C. Wood: One we're getting back or expect to get back, or it's closed for going out of business sales. And Saks OFF 5TH at Assembly Row, which is a gray box facing the power center right on a corner. It's probably got a 100% roll-up in rent from its current rent to where market rent is, so it's a huge opportunity. And the other location is a Saks Fifth Avenue store, a flagship location on Greenwich Avenue. Hugely productive in the uber affluent submarket of Greenwich, Connecticut. Arguably, one of the best pieces of real estate in the portfolio. So yeah, we'll see how that all plays out, but you know, really, really great real estate with respect to that. The other thing that we keep an eye on is, and we've talked about it, is Container Store.

We are assuming our 100 a quarter percent unsecured notes are refinanced at a four and a quarter to four 5% interest rate.

Under our available bank facilities.

Please note that this represents a 170 to 180 basis point financing headwinds.

Without which our midpoint core <unk> for 2026 would be growing at roughly seven 5%.

We've assumed a total credit reserve of roughly 60 to 85 basis points of rental income in 2026, given our limited exposure to credit issues.

And additional guidance assumptions that.

But we usually talk about here are outlines for capitalized interest redevelopment spend G&A in term fees on page 29 of our 8-K supplement.

This guidance does not include any acquisitions in 2026.

Donald C. Wood: Both, you know, all, all five locations paying rent, all five locations we feel good about. You know, I think that that's kind of the color we can give there. And we'll see how this all plays out. I think we're well covered in the 60 to 85 basis point range that we've given.

None are probable enough at the moment with respect to asset sales and assumes only the discipline dispositions announced last week <unk> courthouse them.

For all other acquisitions and dispositions, we will adjust our guidance likely upwards as we go.

With respect to quarterly cadence of <unk> in 2026.

Operator: The next question comes from Rich Hightower with Barclays. Please go ahead.

First quarter, we will start with a range of $1 80 to 183 with the normal <unk> seasonality and asset recycling activity impacting sequential cadence from <unk>.

Richard Hightower: Hi, good evening, guys. I want to go back to one of the comments Wendy made in the prepared commentary about California being especially robust, I guess, enough to make it into the comments. So just tell us what's going on there. I guess we're hearing that from other property types as well. So, perhaps it's all sort of singing the same chord, but I'd like to hear what you guys are seeing.

Rich Hightower: Hi, good evening, guys. I want to go back to one of the comments Wendy made in the prepared commentary about California being especially robust, I guess, enough to make it into the comments. So just tell us what's going on there. I guess we're hearing that from other property types as well. So, perhaps it's all sort of singing the same chord, but I'd like to hear what you guys are seeing.

The second and third quarter will be in the mid one <unk>.

In the fourth quarter in the mid 190 <unk>.

For sure.

And with that operator.

Please open the line for questions.

Thank you.

I ask a question you May press Star then one on your telephone keypad.

Donald C. Wood: Can we tee up Jeff Kreshek to answer that? Jeff, I'd love you... Jeff runs our West Coast operations, as our president. Jeff, I'd love you to talk about that.

Using a speakerphone please pick up your handset before pressing the keys.

But anytime Youre question has been addressed and you would like to try a question. Please press Star then two.

Jeff Kreshek: Yeah, sure. Rich, thanks for the question. Simply put, California is gonna be our largest source of growth for the next few years, given the backlog of leasing and development activity and the strategic capital recycling we're seeing out of Santana Row and Grossmont. So California is gonna be a big, big contributor going forward for a number of years.

We ask that you please limit yourself to one question and rejoin the queue. If you have any color at that question.

The first question comes from Michael Griffin with Evercore ISI. Please go ahead.

Great. Thanks, maybe just turning to the investment pipeline, Don or maybe Jan can you give us a sense of.

Operator: Next question comes from Linda Tsai with Jefferies. Please go ahead.

What deals in the Hopper are looking like today, you know I realize youre not guiding to anything this year, but is this more of what we've seen at town center in Kansas City or at the village point in Omaha.

Donald C. Wood: Hi, just a question on timing. In terms of the $13 to 15 million for the development expansion pipeline, what's the timing of that? Yeah, we've given some additional disclosure that hopefully will make it easy for everybody to understand. At the bottom of page 29 in the our 8-K supplement, at the bottom of the guidance page, there is sequential quarterly cadence of the increase over the course of the year. It'll be pretty pro rata. It'll be pretty close each quarter, and you'll see the ramp up from the $17 million coming from the properties in the development pipeline up to roughly a midpoint range. It gets you to kind of 30 to 32 or a 31 midpoint. And so that $14 million, the cadence is outlined there.

Is it stuff and kind of your core coastal markets. What are you really targeting I guess and you know do.

Do you have a feeling that that we could see some deals close at some point this year.

Hi, Michael Yon.

Well thanks for the question.

But we're still targeting large dominant shopping centers were focused on new markets in the middle of the country still also trying to acquire the coast.

In our existing markets. So right now Theres a couple of acquisitions that we're working on we expect to see a lot more opportunities coming in the next several months larger transactions.

So some real reasons.

It's a little too early to kind of forecast.

We will be able to buy this year.

Donald C. Wood: Anybody have any questions with regards to this additional disclosure that I think would be welcome by most of you? Feel free to give me or Jill a call, we'll walk you through it.

But based on where we are today and similar to last year I would expect that the bulk of our activity will occur in the second half of this year. So.

From my perspective reasons to be optimal.

Operator: The next question comes from Floris van Dijkum with Ladenburg. Please go ahead.

The next question comes from Costar Clark with Wells Fargo. Please go ahead.

[Analyst] (Green Street): Hey, guys, thanks for taking my question. So it seems like, you know, some people, based on the questions you've had, the comp NOI growth, you know, perhaps is understating the true growth that you expect to get from this portfolio and, and, and from this portfolio in 2026. Maybe, and I know that in the past, your comp NOI as a percentage of overall NOI was actually pretty robust and pretty high. It... What percentage of your NOI is being captured in your comp pool today? And how does that impact the SNO pipeline as well?

Great. Thanks for taking the question I wanted to talk about the multifamily development and is also ongoing recycling plan curious how much more peripheral multifamily you could potentially market for sale. This year, if youre able to source attractive opportunities on the acquisition side and also where yields stand today on the entitled multifamily development pipeline.

Sure Michael Let me, let me start with you on that or Puke, rather sorry, let me start on that.

It's such a kind of unique.

The thing that we have here by by having that value in there. There is there are still opportunities for us to monetize.

Residential product and.

Im not going to go into the specific ones right now, but but you could probably guess.

Donald C. Wood: ... Yeah, I would estimate that kind of what's in the comp pipe, the comparable pool is probably 85-90%. We can kind of refine that, but that feels about right. You know, with regards to-- Yeah. Oh, SNO. Yeah, sorry. With regards to SNO, our SNO within the existing pipeline is growing, and significantly growing. With the commencement of the PwC lease and getting to recognize that in Q4, what's coming from the development portfolio is not gonna be as high as it was in this. So SNO is probably around $27 million in the existing portfolio, and another $5 or $6 million in the development portfolio.

Again their peripheral to our our primary mixed use assets.

Our our shopping center assets, but you know that stuff is is at 5% or lower.

In terms of those cap rates and that's just.

It's.

It's just a real advantage now in total there is probably another $4 million to $500 million to be able to do.

Of that.

Of that ilk.

Not sure.

That we will do that we don't have them in the marketplace yet but.

Im pushing hard frankly to.

Start doing that come the second quarter third quarter and fourth quarter of this year to the extent, we find the assets that <unk>.

Donald C. Wood: So, you know, the cadence, about 75% of that will come on next year, so roughly call it about $25 million. It'll be roughly kind of $10 to 11 million in the first half of the year, and call it 14 to 15 million in the second half. And then the balance in 2027.

<unk> was just talking about a minute ago.

You have one other you had you had a backup question I don't remember what it was anyway.

Yields on development pipeline within non residential development pipeline.

And on the.

Basically we're able to underwrite the new development pipeline is somewhere between six five and 7%.

Operator: The next question comes from Juan Sanabria with GMO Capital Markets. Please go ahead.

Hi.

Most of them.

The reality is as those are low fives.

Cap rate assets today, if what happens.

Jill Sawyer: Hi, good afternoon. Just hoping you could talk a little bit about the anchor movement, kind of what's driving that. Is that proactive by you, or is that something else that's going on? And then you kind of mentioned a one-time hit that otherwise you would have hit your expectations related to Saks. If you could just quantify that dollar amount, that'd be helpful. Thank you.

What I think will happen is while we enter into at $6 happen and 7%, let's say strong growth in that was that the one thing that is crystal clear is at fully amendatory shopping centers. Those rents are higher they tend to have more retention and they tend to grow faster. So I'm just really encouraged about this program, which.

I don't think anybody has got the expertise that we do.

Donald C. Wood: Yeah, Juan, first of all, on the anchors, it's simply timing. The way the expirations were working, particularly on the West Coast assets, there were expirations that were coming due a lot last year and in the first half of this year, et cetera. So we've been on top of that to try to make sure that we've got either new tenants coming in. Grossmont is basically a redevelopment of the entire asset there, that's happening. Best Buy at Santana Row, which you may remember going out after an extremely productive period of time, for a new Lifetime deal there. It's simply the timing that, you know, we've got all leased up, but there'll be, you know, a hit in the meantime.

On the shopping center side to be able to do this kind of stuff we've been doing it for a long time I think you should should look hard at.

At that portfolio and we'll be talking to you more about that the quarters to come.

The next question comes from Andrew <unk> with Bank of America. Please go ahead.

Hi, good afternoon, Thanks for taking my question.

Wendy highlighted that 2025 delivered the strongest rent spreads and I believe over a decade.

Just wondering is that pricing power being driven by any specific property types or regions or is that really truly broad based.

And do you view these levels of pricing power across the portfolio as sustainable throughout 2026.

Thank you for the question, Andrew I do consider than broad based.

Donald C. Wood: We're plowing right through that, and it's still gonna grow, hopefully at 6%, next year. That's what's going on with respect to the anchors, nothing more than timing. What was the last one?

It's a good time to be.

And our CLO position with this high demand that we're having are possible and limited supply and that kind of premier properties that we own so.

Dan Guglielmone: The Saks charge was a non-cash charge, writing off straight-line rent at roughly around $0.03 a share.

It doesn't get any better than right now.

I will say that that's what you're seeing on being able to drive rents. If you look at our last three years, we have consistently overall driving rents higher and higher percentage wise every year for the last three years, so I'm really thrilled with that.

Operator: The next question comes from Paulina Rojas with Green Street. Please go ahead. Good afternoon. My question is about acquisitions. So while acquisitions are shaped really by what comes to market, if you had full discretion, would you cap your exposure to new secondary or tertiary markets, or are you truly taking a fully market-agnostic approach, assuming property quality meets your standards?

And then when you look at them.

Demand on the anchor side, you're going to see that.

Our occupancy is going to be kind of driving up as we head into the latter part of the year. So yes. All metrics are good right now and I do think about and kind of look at me I do think given what I know today and we look at our rollover for next year.

You'd be able to be equal to where we are today.

Donald C. Wood: Yeah, first of all, Paulina, I love that you started this off with, "Of course, it depends on how much supply is available," because that's a really important point. You know, acquisitions get lumpy. We are so completely committed to the plan that we talked about last year, which is a combination of the new markets that we talked about, and I think you've seen our buy box of what markets effectively apply to that. You know, it's 1 million people in a marketplace and very affluent, all of the stuff that we've talked about. But yes, I would be the agnostic to whether we find those assets in those places or in our existing market set that we have, because real estate is local, and it really comes down to the sub-market.

The next question comes from Greg Mcginniss with Scotiabank. Please go ahead.

Hey, Thanks for taking the question.

And Dan I was just hoping that you could kind of give us the breakdown on the same store NOI growth and then the primary pieces that are kind of adding on top of that to get to the 6% growth.

We appreciate it and if there's anything in the term fee, which is bigger this year than last year.

Known and in particular I appreciate it thank you.

Yes, so with regards to kind of getting to the 6% <unk> growth roughly and as I've been talking to folks a three to three 5%, but I've been talking to folks about over the course of 2025, roughly about 30 30.

<unk> of.

Growth there represents probably a good more than half of the growth in <unk> and <unk>.

Donald C. Wood: So to the extent we find those opportunities in places that we know inside now. And we're looking at some right now, frankly, that are adjacent to our existing assets. Love that kind of stuff. In addition to the new markets that fit the buy box, yes, we're agnostic as to which of those opportunities come to fruition. I hope that helps.

Drivers there.

And then with probably net from acquisitions and net from redevelopment you've got about 12.

Each there so very very consistent with kind of the.

The guidance, we've been given the refi headwind.

Is is roughly.

It's kind of roughly 12.

Operator: Once again, if you have a question, please press star then 1. The next question comes from Mike Mueller with JP Morgan. Please go ahead.

In terms of refinancing the 1.25% bonds. The way, we're planning them out that gets you to kind of almost at 6% of <unk> drive.

[Analyst] (JPMorgan): Yeah, hi. I think you mentioned you had another $400 to 500 million of non-peripheral residential left that you can sell to fund acquisitions. It seems like the acquisition opportunity is greater than that, so what's next on the pecking order after those remaining resi assets?

Mike Mueller: Yeah, hi. I think you mentioned you had another $400 to 500 million of non-peripheral residential left that you can sell to fund acquisitions. It seems like the acquisition opportunity is greater than that, so what's next on the pecking order after those remaining resi assets?

Drive and our comparable growth is pretty broad based it's rent bumps. It is rollover it is.

Harking it is across the spectrum of that.

What we are.

Create in terms of a comprehensive shopping center growth profile.

Donald C. Wood: Oh, no question, and it's not even next, it's in conjunction with Michael. It would be those assets, retail assets, where we've done all we can. And to the extent we've done all we can, we can get a strong price for those retail assets, we'll use those to recycle into better growth opportunities. So having the opportunity to have both resi and strong assets, strong retail assets that have limited growth opportunities, all of those things are considered. So it's not which one is it, it's not using up the resi and then moving to those. It's a combination based on market conditions and, you know, what it is that we can where we think we can effectively get paid best for. So you should see a combination of both as we move forward.

Nothing stands out there.

And with regards to term fees.

It's slightly higher than last year were just under $6 million.

We're guiding to 7%.

Eight.

And we kind of feel like yes, there's some things that are identified.

We'll see how that comes out that's an estimate and that's why we give a range.

But kind.

Kind of in line, our 20 year history is probably in and around.

Seven or $8 million the.

The last 10 years, probably more in the $5 million to $6 million.

So you are kind of right in line.

With historical levels on term fees.

The next question comes from Craig Mailman with Citi. Please go ahead.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jill Sawyer for any closing remarks. Please go ahead.

Hey, everyone. Just just curious Don as you guys ramp up.

Jill Sawyer: Thanks for joining us today. We look forward to seeing many of you in Florida in a few weeks.

The sales here and in acquisitions take a little bit longer or more backend weighted in the given year.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Just from a timing perspective do you have enough cushion in the dividend to either 10 31 is from a timing perspective or absorb some of the games or could there be a.

A bit of a special.

Potential here as we move on later through the year.

I think I.

I think Craig that you can count on us managing tax efficiently through the through the dividend and sales of gains and 10 30 ones all of those tools are.

Are available to us to manage our taxable income and our dividend in line with what we've been doing for a bunch of years. That's what you should that's what you should expect not a special dividend.

The next question comes from Alexander Goldfarb with Piper Sandler. Please go ahead.

Hey, Good evening, Dan you were among the standouts sticking with the NAREIT <unk> not going to core real estate has a lot of there's a lot of cost there is a lot of benefits right. Sometimes you win on revenue, sometimes there's added costs from various things.

But as you run the company and look at your team you don't judge them and say Oh, we'll take out these items take out those items I'll give you I'll, let you hit your number you judge your team based on how they perform so when you switch to the core I get it that theres volatility, but at the same time isn't the whole point to judge the company based on the results.

Deliver.

<unk> as sort of a ball lives not where you'd like it to be.

Alex the.

<unk>.

Adding on a core <unk> metric is truly simply a tool that that's aimed not having anything to do with this team at all but everything to do with with being able to better analyze the financial results of the company.

Making it easier for you to see kind of missing some of the steps missteps that we've had with in the past with with the simply using NAREIT.

<unk> and so that is completely what this is all about what is important.

Our view is that this is not used as a nickel and diming. If you will of the NAREIT <unk> a result, but rather.

Big items.

Consequential items that just plain old historic.

The operating results of the company. That's all that's about this team is judged on their performance.

Based on on what they do day in and day out.

And changing to a core <unk> metric will have no impact on that whatsoever.

The next question comes from Michael Goldsmith with UBS. Please go ahead.

Okay.

Good afternoon, Thanks for taking my question.

Comparable <unk> growth in 2025, and three 8% initial guidance for 2026 of three to three 5%. So just a couple of questions. On this can you bridge the gap from 25 to 2026 any headwinds that would drive a deceleration and then is that three to three 5% is that the right way to think about.

This steady state run rate right of the business or as you continue to reposition the portfolio into higher growth assets.

Salary from here thanks.

Yes, the big driver in terms of the deceleration is just we will be altering over as Andy alluded to.

In her comments a significant amount of anchor space that's already leased.

At much higher rents, but there'll be downtime as leases and we positioned the spaces to give to the incoming tenants at higher rents that's about a 75 basis point drag.

Comparable Oi, so the three to three and a half as Scott 75 basis points of drag from that temporary disruption in occupancy and so we will see a spike in S. N O as a result over the course of the year.

So.

We're at 200 basis points, it's been increasing as bulk metrics increase occupied and leased so we expect that to.

Balloon a bit in the middle of the year and then come back down by the end of the year as occupancy levels get up into the 90 back up into the 94% mid 94 is upper 94 from the 94% level today, that's probably the biggest driver.

The second question.

No.

Steady state Yeah, I would say look I think historically when you look back where in the 3% to 4% range.

I think with some of the acquisitions $2 billion of acquisitions and were seeing that were operating these assets I think better than we had expected and with growth rates that are higher than the kind of 3% to 4% that we've historically seen in our portfolio I would hope that that would move up.

And so the upper end of kind of the 3% to 4% range.

Think next year 2027, we are well positioned to kind of be in and around that 4% level from where we sit today.

The next question comes from Ravi Razzia with Mizuho. Please go ahead.

Hi, There hope you guys are doing well I wanted to ask about tenant credit.

The reserves are a bit conservative can you provide a bit more color here what was the amount realized at FLIR 25, and are there any tenants or cat or categories on your watch list.

Can you add color on the mark to market opportunity for some of the recent bankruptcies container store.

<unk>.

Sure.

Basically there were too many there were too many questions in there. So let me just.

Let me just start here with regards to the tenant credit Yes, 60 to 85 is lower than we were let's start the year last year at 75 to 100, we were about 80 ish finished.

Finishing up the year kind of in that ballpark, it's not a precise number but that's kind of where we ended up kind of 80 to 85.

In 2025 to $60 to 85, we don't have a lot of exposure to tenant credit issues. We just don't we.

We do have sacks.

Saks has got two exceptionally strong locations.

One, we're getting back or expect to get back or close or going out of business sales.

And off fifth at.

<unk> sat at Assembly row.

Which is a great box facing the power center right on a corner.

It's probably got a 100% roll up in rent from what's current rent to where market rent is so it's a huge opportunity in.

And the other location is.

Saks Fifth Avenue store.

Our flagship location on Greenwich Avenue hugely productive.

Overall affluence Submarket in Greenwich, Connecticut.

Arguably one of the best pieces of real estate in the portfolio.

So, yes, we will see how that all plays out but.

Really really great real estate with respect to that.

Other thing that we keep an eye on is and we've talked about in the container store.

Both yes.

All five locations paying rents all five locations we feel good about.

I think that that's kind of the color we can give there.

So we'll see how this all plays out I think we're well covered in the 60 to 85 basis point range that we'd given.

The next question comes from Rich Hightower with Barclays. Please go ahead.

Hi, good evening guys.

I want to go back to one of the comments <unk> made in the prepared commentary about California, being especially robust.

Guess enough to make it into the comments.

So Todd just tell us what's going on there I guess, we're hearing that from other.

Property types as well so.

Perhaps it's all sort of singing the same cord, but I'd like to hear with what you guys are seeing.

We tier tier, but Jeff <unk> to answer that Jeff I'd Love you, Jeff runs our West Coast operations as our President Jeff.

Jeff I'd Love you had talked about that yes.

Yeah sure rich thanks for the question.

Simply put California is going to be our largest source of growth for the next few years, given the backlog of leasing and development activity and the strategic capital recycling, we're seeing out of Santana row, and gross might so, California is going to be a big contributor going forward for a number of years.

Yeah.

Next question comes from Linda Tsai with Jefferies. Please go ahead.

Hi, just a question on timing.

In terms of the 13 to 15 million for this development expansion pipeline, what's the timing of that.

Yes, we've given some additional disclosure.

That hopefully will make it easy for everybody to understand at the bottom of page 29.

The our 8-K supplement at the bottom of the guidance page.

There is sequential orderly cadence of the increase over the course of the year it'll be pretty pro rata would be pretty close each quarter.

You'll see the ramp up from $17 million coming from our properties in the development pipeline up to roughly a mid point range. It gets you that kind of 30% to 32 or 31 midpoint and so that $14 million. The cadence is outlined there.

Anybody have any questions with regards to this additional disclosure, but I think it would be welcomed by most of you.

Feel free to give me your jello call walk you through it.

The next question comes from clients and <unk> with <unk>. Please go ahead.

Hey, guys. Thanks for taking my question. So it seems like Ah Ah.

Some people based on the questions you've had.

The comp.

NOI growth.

Perhaps is understating the true growth that you expect to get from this portfolio and from this portfolio in 'twenty, six maybe and I know that in the past your your comp NOI as a percentage of overall NOI was was actually a pretty robust and pretty high.

What percentage of your NOI is being captured.

In your in your comp pool today, and how does that impact the the ethanol pipeline as well.

Yeah I would.

I would estimate that kind of what's in the <unk>.

The comparable pool is probably.

80, 590%.

We can kind of refine that but that feels feels about right.

With regards to.

Yeah.

Ill start.

With regards to <unk>.

Our <unk> within the existing.

Our pipeline is growing and significantly growing with the commencement of the Pwc lease.

And are beginning to recognize that in the fourth quarter, what's coming from the development portfolio is not going to be as high as it wasn't bad.

So <unk> is probably around $27 million in the existing portfolio, another five or $6 million and the development portfolio.

And so.

Yes, the cadence about 75% of that will come on.

Next year, so roughly call about $25 million.

Roughly.

$10 million to $11 million in the first half of the year and call it $14 million to $15 million in the second half and then the balance in 'twenty seven.

The next question comes from Juan Sanabria with BMO capital.

Michael Please go ahead.

Hi, Good afternoon, just hoping you could talk a little bit about the anchor movement.

Kind of what's driving that is that proactive by you or is that.

Is that something else that's going on and then you kind of mentioned a.

The onetime hit otherwise you would have hit your expectations related to Sox. If you could just quantify that dollar amount that would be helpful. Thank you.

Yeah, one first of all on the anchors.

Simply timing.

The way the explorations were working particularly on the west coast assets.

There was there were explorations that were coming due a lot last year and in the first half of this year et cetera. So we've been on top of that to try to make sure that we've got.

Either new tenants coming in.

Gross margin is basically a redevelopment aussie and tire asset there.

Thats happening best buy at Santana row, which you may remember going out after an extremely productive period of time.

For our new lifetime.

Deal there.

It's simply the timing that.

You know, we've got all leased up but there'll be there'll be a hit in the in the meantime, but we're plowing right through that and it's still going to grow.

Hopefully, 6% next year. So that's what's going on with respect to the anchor is nothing more than timing and what was the latter the saks charge. There was a noncash charge writing off straight line rent.

Roughly around the <unk> a share.

The next question comes from quality narrow Hudson clean State. Please go ahead.

Good afternoon.

My question is about acquisitions and so while acquisitions are shaped really by what comes to market. If you have full discretion.

Or do you tap your exposure to new secondary or tertiary markets or are you truly.

Taking a fully market agnostic approach assuming property quality meet your standards.

Yes first of all totally and I Love that you started this off with of course it depends on how much supply is available because that's a really important point.

Acquisitions get lumpy, we are so completely committed to the plan that we talked about last year, which is a combination.

Of the new markets that we talked about and I think you've seen our buy box of what markets effectively.

Applied to that and you know, it's a million people in.

In a marketplace and very affluent all of the stuff that we've talked about but yes, I would be agnostic to whether we find those assets in those places.

We are in our existing.

Market set that we have because real estate is local and it really comes down to the sub market and so to the extent we find those opportunities in places that we know inside now.

And we're looking at some right now frankly that are adjacent to our existing asset love that kind of stuff.

In addition to the new markets that fit our buy box, yes, we're agnostic as to which of those opportunities come up come to fruition I hope that helps.

Once again, if you have a question. Please press Star then one the next question comes from Mike Mueller with JP Morgan. Please go ahead.

Yes, hi, Thank you mentioned you had another 4% to $500 million of non peripheral residential left that you can go to fund acquisitions and it seems like the acquisition opportunities greater than that so what what's next on the pecking order after those remaining resi assets.

Oh, no question and it's not even next it's in conjunction with Michael It would be those assets retail assets, where we've done all we can.

And to the extent, we've done all we can and and we.

We can get a strong price for.

For those those retail assets, we will use those to recycle into better growth opportunities. So having the opportunity to have both <unk> and <unk>.

Strong assets strong retail assets that have limited growth opportunities all of those things are considered so it's about which one is it is not using up the resi and then moving to those it's a combination based on market conditions and you know what it is that we get where we think we can.

We get paid best for so you should see a combination of both as we move forward.

Yeah.

This concludes our question and answer session I would like to turn the conference back over to Jill Sawyer for any closing remarks. Please go ahead.

Thanks for joining us today or are you seeing many of you in Florida in a few weeks.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Yeah.

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