Slides
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Kansas City Investor Tour Town Center Plaza & Crossing | Leawood, KS
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Agenda Proven Track Record of V alue Creation Don Wood, President & CEO Leawood: A City Invested in Federal’s Success Marc Elkins, Mayor Diane Stoddard, City Administrator Julie Hurley, Director of Planning Roadmap to Strong Growth Bob Franz, VP, Asset Management Stu Biel, SVP, Leasing Looking Ahead Don Wood, President & CEO Q&A Don Wood, President & CEO Dan Guglielmone, EVP, CFO & Treasurer Wendy Seher, EVP, Eastern Region President & COO Jan Sweetnam, EVP, CIO Stu Biel, SVP, Leasing Bob Franz, VP, Asset Management *See appendix for details on the various metrics and other financial information provided in this presentation. 2
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Proven Track Record of V alue Creation Don Wood, President & CEO
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Gainesville, VA Acquired: 2024 | Price: $215M Size: 664K SF | 110 Acres Yr 1 ROI: ~ 7% Current Yield: ~7.5% 10-Yr Unlevered IRR: ~9.5% 10-Yr Treasury at Acq: 4.6% Pembroke Pines, FL Acquired: 2022 | Price: $181M Size: 391K SF | 41 Acres Yr 1 ROI: ~5% Current Yield: ~6.5% 10-Yr Unlevered IRR: ~10.0% 10-Yr Treasury at Acq: 2.9% Alexandria, VA Acquired: 2022 | Price: $200M Size: 411K SF | 45 Acres Yr 1 ROI: ~ 5% Current Yield: ~6% 10-Yr Unlevered IRR: ~8.0% 10-Yr Treasury at Acq: 2.7% Overview of Recent Dominant Acquisitions Camelback Colonnade Kingstowne Towne Center Shops at Pembroke Gardens Virginia Gateway Grocery Anchored Phoenix, AZ Acquired: 2021 | Price: $163M Size: 642K SF | 41 Acres Yr 1 ROI: ~6% Current Yield: ~7% 10-Yr Unlevered IRR: ~8.5% 10-yr Treasury at Acq: 1.6% Grocery Anchored Grocery Anchored 4
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$760M across four dominant assets, delivering above-underwriting performance. Successful Acquisitions Enhancing NOI Growth 4 Assets | 2.1M SF 237 Acres Dominant regional centers acquired 2021 -24 ~9% 10-Year Unlevered IRRs (~100 bps above acquisition) ~5% Avg. Annual NOI Growth (CAGR since acquisition) ~35% Cash Basis Rollover on Comparable Leases (Base rents ~20%> underwritten) 5
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Driving Stronger Rents Camelback Colonnade Virginia Gateway 10% 16% vs. underwriting vs. prior rents 14 deals / 94K SF 25% 66% vs. underwriting vs. prior rents 29 deals / 120K SF Shops at Pembroke Gardens 22% 43% vs. underwriting vs. prior rents 28 deals / 60K SF Kingstowne Towne Center 14% 16% vs. underwriting vs. prior rents 25 deals / 140K SF 6
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Accelerating NOI Growth Camelback Colonnade Kingstowne Towne Center Shops at Pembroke Gardens Virginia Gateway $9.4 $10.5 $13.6 2019 NOI 2025 NOI 2030 NOI $10.8 $11.3 $16.4 2019 NOI 2025 NOI 2030 NOI $14.0 $15.5 $18.9 2019 NOI 2025 NOI 2030 NOI Projected 5 -Year CAGR: 5.2% $9.0 $11.1 $13.6 2019 NOI 2025 NOI 2030 NOI 7
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1.5% 2.5% Before After Improving Contractual Rent Increases 1.5% 3% Before After 1.5% 2.5% Before After 1% 2% Before After Camelback Colonnade Kingstowne Towne Center Shops at Pembroke Gardens Virginia Gateway 8
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Enhancing Investment Returns (IRRs) Camelback Colonnade Kingstowne Towne Center Shops at Pembroke Gardens Virginia Gateway 9 Initial Current 7.8% 8.4% Initial Current 8.1% 9.9% Initial Current 8.6% 9.4% Initial Current 7.2% 8.1%
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Price $289M Yr 1 ROI 6.7% Yr 1 GAAP Yield 7.2% 5-Yr NOI CAGR 4.5% 10-Yr Unlevered IRR ~9% T own Center Plaza & Crossing Deal Economics 10
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$16.5 $19.3 $24.0 2019 NOI 2025 NOI 2030 NOI T own Center Plaza & Crossing Roadmap to 2030 4.5% Projected NOI CAGR 2.6% 2019 NOI CAGR 11
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Why T own Center Plaza & Crossing Fit the Federal Playbook 12 Top Metros 1M+ Population and Dynamic Job Base Dominance 250K+ SF GLA and 10+ Mile Trade Area Affluence Submarket HHIs of $150,000+ Unmet Retail Demand Consumers Underserved by High -Quality Retail Proven Retailer Success Demonstrated Existing Retailer Sales Volumes Strategic Acquisition Lens
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Leawood: A City Invested in Federal’s Success Marc Elkins, Mayor Stephen Powell, Asst. City Administrator
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Roadmap to 4.5% Growth Bob Franz, VP, Asset Management Stu Biel, SVP, Leasing
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Density ~650K mobile trade area population 130K+ 3-mile daytime population 1.1% 10-yr population growth CAGR in Johnson County — ~2x higher than US Market Strength: Why Leawood, KS Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Average HHI by Block Group $218K – 568K $132K – 218K $77K – 132K $0 – 77K 3 miles Johnson County 15 Town Center Plaza & Crossing 10 miles
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Affluence $183K median HHI in Leawood — over 2x US median 76% college - educated adults — supports premium retailer demand Market Strength: Why Leawood, KS Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Average HHI by Block Group $218K – 568K $132K – 218K $77K – 132K $0 – 77K 3 miles Johnson County 16 Town Center Plaza & Crossing 10 miles
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Market Strength: Why Leawood, KS Supply-Demand Gap The dominant high -quality lifestyle center in Kansas City metro • No direct competitor in trade area Barriers to entry • High land costs within trade area • Limited competitive large sites Average HHI by Block Group $218K – 568K $132K – 218K $77K – 132K $0 – 77K 3 miles Johnson County 17 Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Town Center Plaza & Crossing 10 miles
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Corporate Employment Base Drives Spending Power Recent Announcements Fiserv investing $175M, bringing 2K high- paying jobs to new Aspiria hub Black & Veatch investing $1B+ in HQ redevelopment Seaboard HQ | 15-MIN DRIVE Fiserv | <5-MIN DRIVE Black & Veatch HQ | 5-MIN DRIVE AMC Entertainment HQ | 1-MIN DRIVE Town Center Plaza & Crossing Garmin US HQ | 20-MIN DRIVE Oracle -Cerner Campus | 15-MIN DRIVE Downtown Kansas City | 25-MIN DRIVE Within 3 miles 5,100 residential units 3,300 hotel rooms 16 million SF of office Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success 18
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Asset Overview: T own Center Plaza & Crossing Dominant Retail Node in KC 59 acres ~8M annual visits 550K SF of retail Previously Under-Managed Merchandising upside Under-invested in Below market rents Densification opportunities Prime Location Minutes from Aspiria Campus, major employers, and I -435 Access to affluent Leawood and surrounding suburbs 19 Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success
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Unlocking V alue Town Center Crossing Town Center Plaza 20 Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success New Leasing 18,000 square feet $55 PSF ABR 32,500 square feet $30 PSF ABR New Leasing New Leasing
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Unlocking V alue Town Center Crossing Town Center Plaza New Leasing 21 Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Renewal 45,000 square feet 20-25% mark to market 50,000 square feet 15-20% mark to market Renewal Renewal
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Unlocking V alue Town Center Crossing Town Center Plaza New Leasing Renewal Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Remerchandising 5,000 square feet 20-30% mark to market 77,000 square feet 10-15% mark to market Remerchandising Remerchandising 22
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Unlocking V alue Town Center Crossing Town Center Plaza Remerchandising New Leasing Renewal Activations 23
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Unlocking V alue Town Center Crossing Town Center Plaza Activations Creative Solutions Remerchandising New Leasing Renewal 24
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First & Only Location in KC Baseline T enancy Reflects Strong Retail Dynamics Town Center Plaza & Crossing Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success 26
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Strong Early Response from T op Retailers Expansion Coming Soon 80,000 square feet 26% rollover vs. prior rents on signed & pending leases Town Center Plaza & Crossing 27 Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success
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Top Metros Dominance Affluence Unmet Retail Demand Proven Retailer Success Next Phase: Targeted & In Conversation Town Center Plaza & Crossing 28
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Shops at Pembroke Gardens, Pembroke Pines, FL Case Study
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Retailer V alidation In Action Shops at Pembroke Gardens 30 At Acquisition Temp Tenant
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~10% revised unlevered IRR ~7% NOI CAGR since acquisition 66% rollover vs. prior rents 25% stronger rents vs. underwriting Retailer V alidation In Action Shops at Pembroke Gardens 31 Under FRT Ownership TBA – Premium Home Brand 2 TBA – Premium Home Brand 1 TBA – Premium Home Brand 3
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Looking Ahead Don Wood, President & CEO
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Price $289M Yr 1 ROI 6.7% Yr 1 GAAP Yield 7.2% 5-Yr NOI CAGR 4.5% 10-Yr Unlevered IRR ~9% T own Center Plaza & Crossing Deal Economics 33
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Camelot Court: Strong Institutional Demand at T own Center’s Intersection 34
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Broadening Our Field of Opportunity 35 Top Metros 1M+ Population and Dynamic Job Base Dominance 250K+ SF GLA and 10+ Mile Trade Area Affluence Submarket HHIs of $150,000+ Unmet Retail Demand Consumers Underserved by High -Quality Retail Proven Retailer Success Demonstrated Existing Retailer Sales Volumes Strategic Acquisition Lens
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Proven Third-Party Operating Model in New Markets Large revenue base of initial acquisition provides scale for efficient market entry NOI margin similar to comparable FRT assets FRT decentralized asset management model facilitates effective operations Same leasing velocity as FRT-managed centers Wendy Seher | Jeff Kreshek Regional Presidents Bob Franz Asset Management Property Management Accounting Legal Marketing Stu Biel Leasing Leasing Associate Local Broker Patrick Dillon Development Tenant Coordination In House In House In House In House In House In House In House Third Party Third Party In House 36
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Appendix
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This page contains information describing in more detail the metrics and other statistics included throughout this presentati on. Information is grouped under the title of each slide for which additional information is provided. Page 4 | Overview of Recent Dominant Acquisitions “Yr. 1 ROI” is calculated using NOI and projected capital investment in the first year of ownership as underwritten at the time of acquisition. “NOI” means rental income and other property income, less rental expenses and real estate taxes, excluding straight -line rent an d amortization of in -place leases. “Current Yield” is calculated using the company’s projected NOI and total capital investment for 2026. “10-Yr. Unlevered IRR” is calculated using the company’s currently projected NOI and invested capital over the 10 -year period fo llowing acquisition and applying a terminal capitalization rate approximately equal to the initial yield. Page 5 | Successful Acquisitions Enhancing NOI Growth Metrics are based on averages for these four acquisitions weighted by NOI and period of ownership. Average annual growth is bas ed on underwritten and forecasted results through 2026. 10 year unlevered IRRS are calculated based on actual results from acquisition through June 30, 2025 and forecasted results through the remainder of the 10 -year hold period for each property. Comparable leases reflect new and renewal leases signed through June 30, 2025 and those that are in active negotiations on spaces for which there was a former tenant. Cash basis rollover includes leases signed for retail space in arms -length transactions reflecting market leverage betw een landlords and tenants during the period and compares contractual rent on the expiring lease, including percentage rent considered to be part of base rent, and the comparable annual rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgement as to how to most effectively reflect the comparability of rents reported in the calculation. Page 6 | Driving Stronger Rents Reflects percentage change in rents calculated as described below for new and renewal leases with those tenants that are part of the long -term merchandising plans for the applicable property (“Long- Term Tenants”) that were have been signed since acquisition or are currently in lease negotiations. “Vs. underwriting” compares the annual base rent actually achieved with a Long -Term Tenant against the annual base rent assumed at the time of acquisition for the space that will be occupied by such Long -Term Tenant. “Vs. prior rents” compares the annual base rent actually achieved with a Long -Term Tenant against the annual base rent contractually obligated to be paid by the tenant occupying the applicable space at the time of or immediately preceding acquisition. Appendix | Supporting Information 38
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Page 7 | Accelerating NOI Growth 2025 and 2030 NOI represent the company’s current forecasted NOI for the specified calendar years. 2019 NOI reflects the mos t r easonably comparable information on financial statements provided by the seller of each of the properties and there can be no guarantee that such seller’s methodology of c alculating that number is the same as the methodology used by the company in calculating 2025 and 2030 NOI. The “Projected 5 -Year CAGR” is a weighted average of the individual prope rty CAGRs shown on the slide, weighted by 2025 NOI. Page 8 | Improving Contractual Rent Increases Percentages reflect the annual contractual rent bumps in leases for those spaces where we have signed a new or renewal lease with a Long -Term Tenant from the date of acquisition through 9/30/2025. “Before” reflects the estimated contractual rent increases in place under the leases for those spaces at acquisition and “After” reflects the contractual rent increases provided for in the new lease documents that the company executed. Page 9 | Enhancing Investment Returns (IRRs) All percentages reflect the unlevered 10 -Year Unlevered IRRs calculated based on expected NOI and invested capital at the start and end of the 10 -year period beginning at the acquisition of the applicable property (“IRR Period”) using an estimated terminal capitalization rate. “Initial” IRR reflect s t he IRR for the IRR Period at the time of acquisition and “Revised” IRR reflects the company’s currently projected IRR for the IRR Period applying the same estimated terminal capitalizat ion rate for both calculations. Page 10 | Town Center Plaza & Crossing Deal Economics “Yr. 1 GAAP Yield” is calculated using NOI plus straight -line rents and amortization of in -place leases and projected capital in vestment as underwritten at the time of acquisition. Page 11 | Town Center Plaza & Crossing Roadmap to 2030 2025 and 2030 NOI represent the company’s current forecasted NOI for these calendar years. 2019 NOI reflects the most reason ably comparable property level financial information provided by the seller which may not be fully comparable to the company’s calculations of 2025 and 2030 NOI. Page 15 -17 | Market Strength: Why Leawood, KS Source: Placer.ai (trailing 12 months through September 2025) for trade area definition; ESRI (August 2025) for demographic data . Appendix | Supporting Information | Continued 39
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Page 18 | Corporate Employment Base Drives Spending Power Source: 3 -mile radius data provided by Eastdil Secured; Fiserv and Black & Veatch announcements from publicly available press releases and local business media coverage. Page 19 | Asset Overview: Town Center Plaza & Crossing Source: Placer.ai (trailing 12 months through September 2025); total combined visits to Town Center Plaza & Crossing. Page 20 -24 | Town Center Plaza & Crossing Unlocking Value Square footages represent the total square footage for spaces whose leases expire through 2030 with no extension options where w e expect to enter into leases with Long- Term Tenants to lease up vacant space, renew with the existing tenants in place or enter into a lease with a new tenant to upgrade the merchandising of the property. Mark to market is our projected range of the average increase in annual base rent we expect to achieve versus current annual base rent when we com plete the aforesaid renewals and new leases. Annualized Base Rent (ABR): Represents aggregate, annualized in -place contractual (defined as rents billed on a cash basis without taking the impact of rent abatements into account) minimum rent for all occupied spaces as of the reporting period. For purposes of this slide, the ABR is what Federal expects to achieve on new leasing at Town Center Plaza & Crossing. Page 27 | Strong Early Response from Top Retailers Square footages represent the total square footage for new and renewal leases signed or currently in lease negotiation with L ong-Term Tenants since acquisition of the properties. Percentage rollover represents the relative change in annual base rent between the annual base rent achieved in such new or renewal lease and the last annual base rent in place for the space covered by such new and renewal leases. Page 31 | Retailer Validation In Action All metrics are described under the following earlier slides: Driving Stronger Returns, Accelerating NOI Growth and Enhancing Investment Returns. Appendix | Supporting Information | Continued 40
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Certain matters included in this presentation may be forward looking statements within the meaning of federal securities laws . These statements may be identified by use of terms such as “may,” “estimate,” “expect,” “intend,” “potential,” “forecast” and similar terms or the negative of such terms, and incl ude statements regarding the expected future leasing and other performance of Camelback Colonnade, Shops at Pembroke Gardens, Kingstowne Towne Center, Virginia Gateway, Town Center P laza and Town Center Crossing. Actual future performance and results may differ materially from those included in forward looking statements and past performance of these assets is not a guarantee of future performance. Factors that may cause such a difference include, without limitation, risks and uncertainties related to our ability to complete leases, our ability to fill vacancies at acceptable rents, the amount of required capital investment in these assets, our ability to deliver spaces to tenants when projected, our tenan ts’ ability to pay rent and economic conditions in these geographic markets that may affect the demand for these properties or performance of tenants at these properties. More inform ation about the risks and uncertainties we face is contained in the section captioned “Risk Factors” in our SEC filings, including our Annual Report on Form 10 -K for the fiscal ye ar ended December 31, 2024. Forward looking statements contained in this presentation are as of the date of this presentation, and, except as required by law, we do not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise. This presentation includes non -GAAP property level operating measures that the company considers meaningful measures of operatin g performance at the property level. These metrics may be calculated differently than similar metrics that may be provided at the company level in our SEC filings. Appendix | Safe Harbor and Non-GAAP Information 41