Federal Realty Investment Trust

Good day and welcome to the Federal Realty Investment Trust First Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. We do ask that you limit yourself to one question, and then you can re-queue if you have additional. Please also note, today's event is being recorded. I would now like to turn the conference over to Jill Sawyer, Senior Vice President, Investor Relations. Please go ahead.

Thanks, Rocco, and good morning, everyone. Thank you for joining us today for Federal Realty's first quarter of 2026 earnings conference call. Joining me on the call are Don Woods, Federal's Chief Executive Officer, Dan Gugliamone, Chief Financial Officer, Wendy Sears, Eastern Region President and Chief Operating Officer, and Jan Sweetnam, Chief Investment Officer, as well as other members of our executive team that are available to take your questions at the conclusion of our prepared remarks. A reminder that certain matters discussed on this call may be deemed to be forward-looking statements. Overlooking statements include any annualized or projected information, as well as statements referring to expected or anticipated events or results, including guidance. Although Federal Realty believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Federal Realty's future operations and its actual performance may differ materially from the information in our forward-looking statements, and we can give no assurance that these expectations can be attained. The earnings release and supplemental reporting package that we issued this morning, our annual report filed on Form 10-K, and our other financial disclosure documents provide a more in-depth discussion of risk factors that may affect our financial condition and operational results. Given the number of participants on the call, we kindly ask that you limit yourself to one question during the Q&A portion. If you have additional questions, please re-queue. And with that, I will turn the call over to Don Wood.

Well, thanks, Jill, and good morning, everybody. You know, the combination of stepped-up capital recycling portfolio-wide, the strong incremental cash flow, the result of near-record leasing in terms of both volume and rate over the past 18 months, and the beginnings of meaningful incremental contributions from previous years' development spend are showing up in bottom-line results with FFO per share of $1.88, besting a year ago's quarter by 10.6%. setting the stage for this quarter's earnings beat and enabling us to raise guidance for the balance of the year. More details from Dan in a few minutes. Lease termination fees, direct results, strong landlord-oriented leases, and an important part of our business were higher this quarter compared to a year ago by $2.8 million, although higher snow removal and related energy expenses than a recovery caused by this season's unusually rough winter were also higher this quarter by over $2 million. Of course, We still grew at 9%, even if you eliminate just the termination fee impact. Capital recycling this quarter saw us close on the sales of Missouri Apartments at Santana Row and Courthouse Shopping Center in Rockville, Maryland, for combined proceeds of $159 million at a combined cap rate well inside 5%. Subsequently, we closed on the acquisition of Congressional North Shopping Center, directly adjacent to our long-held A-rated Congressional Plaza in Rockville, for $72 million at a 7% stabilized yield. Opportunities for additional accretive acquisitions and FF positions continue to be a laser-like focus of this team and are expected to continue to improve our overall growth. Activity in the form of additional interesting centers coming to market that are worth looking at has clearly picked up as we've come into the spring season. Business is good with strong demand for our assets in both our historical locations as well as the newer markets. We ended the quarter with the overall portfolio 96.1% leased and 93.8% occupied and about 40 basis points higher, excluding newly acquired centers. With the continued strength in new leasing that I'll talk about in a minute, these good times that we're seeing are expected to continue. Specifically, the anchor box leasing and repositioning that has been done and will continue to get done, particularly on the West Coast for us, should provide strong income contributions in 27th Now, I know there hasn't been a lot of obvious evidence over the past few years that great demographics, particularly in affluent customer base, make a demonstrable difference in the performance of a retail property. And there are a lot of reasons for that, including shifting population trends, government subsidies, and a favorable supply and demand dynamic. And some of those macro trends will likely continue. But today's economic realities are different. And the divergent day-to-day purchasing decisions of consumers in this K-shaped economy are very real. Periods like this where everyday costs from gas to groceries are elevated and the consumer is more selected, quality demographics matter more. They matter a lot. Wendy will talk through what we're seeing on the ground specifically. Now, it's no surprise that leasing drives these and future results. With over 100 leases and 649,000 feet of comfortable deals done in the airport, at 13% cash rollover, 23% on a straight line basis. This was more volume than we've ever leased in any first quarter and the third best ever in any quarter. That includes 13 anchor deals for nearly 400,000 square feet at 13% rollover, 21% on a straight line basis. This is really strong leasing and it looks to be continuing. As we've talked about over the last several quarters, we're also finding opportunities to intensify our properties with developments usually residential product that's complementary to our shopping centers. With little or no incremental land costs, the math can work in the right locations. If 2025 has taught us anything about value, it's that high-quality apartments adjacent to great shopping environments in strong suburban locations create a more desirable living environment. That translates to higher residential rents, to higher and stronger growth, and to ultimately lower cap rates upon sale. The 2025-26 sales of Lavarie and Missouri at Santana Road and Palace at Pike and Rose unlocked an unmatched cost of capital for us to reinvest, sub 5% overall. We've also previously disclosed the allocation of a total of $400 million for residential development of the Blair at Ballot Kenwood, which at 34% leased already is well ahead of projections for both timing and rate. 301 Washington Street and Hoboken which is under construction and will begin lease up in about nine months. Lot 12 at Santana Row, which is well under construction and will be seen by many of you if you're coming to our investor day in a couple of weeks. And an incremental 261 units at Willow Grove Shopping Center outside of Philadelphia, for which demolition of part of the adjacent shopping center is happening this week. Together, this densification of our shopping center assets will add nearly 800 units and $27 million of new operating income to the portfolio once stabilized in the next few years. Our experience with residential development at our retail-centric properties is a skill set developed over 25 years, and it's certainly a unique differentiator of our business. Now, with the signing of a lease with PNC Bank a couple of weeks ago, for the last remaining 11,000 square feet, Santana West is officially 100% leased. In fact, all of Santana Road's office space is 100% leased. This is particularly impressive given that just a few miles away, downtown San Jose, California, Class A office vacancy stands at 36%. Let that sink in for a minute. And it's not an anomaly. Pike and Rose office stands at 100% leased. Cocoa Walk office stands at 100% leased. Bethesda Row office stands at 97% leased. And Assembly Row office stands at 94% leased. The whole office portfolio 99% overall lease. Now, our office income stream at our nationally recognized mixed-use communities is in extremely high demand and is stable, is solid, and is growing. We'll showcase our plans for a comprehensive investor day at Santana Row on May 20th and 21st. It looks like we'll have a great turnover and would love to add a few more. Really looking forward to seeing most of you there. Enhanced internal and external growth using all the tools at our disposal is the name of the game. Quarters like this first one increased my confidence in our ability to do so. Let me now turn it over to Wendy and then to Dan to provide additional color. Gwen?