Federal Realty Highlights $400 Million Resi-Over-Retail Pipeline

Company advances densification platform designed to generate long-term growth from existing assets

NORTH BETHESDA, Md., Feb. 26, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today highlighted its growing Resi-Over-Retail development platform, a proven strategy designed to create long-term value by layering residential density onto its existing retail properties. The company currently has approximately $400 million of residential development projects underway across multiple markets, with the Willow Grove redevelopment representing the latest project within this expanding pipeline.

This project in Willow Grove, Pennsylvania includes repositioning approximately 130,000 square feet of existing retail through demolition and redevelopment into a six-story mixed-use building with 261 residential units, a 438-space parking structure, and an additional 52,000 square feet of retail space. Construction is expected to begin in Q2 2026.

"This is a strategy we've been refining for more than two decades," said Don Wood, President and Chief Executive Officer. "Adding thoughtfully designed residential density to our retail properties creates a more desirable living environment, drives daily traffic, strengthens retailer performance, and generates attractive risk-adjusted returns. It is a repeatable model that allows us to create growth from within our existing portfolio and build long-term value."

The Willow Grove project represents the latest opportunity in Federal Realty's active residential development pipeline, reflecting a structured approach to adding residential density at existing retail properties. Unlike traditional ground-up development, Federal Realty's Resi-Over-Retail strategy leverages existing land positions, established retail demand, and well-merchandised environments, allowing for enhanced value while mitigating development risk.

Building on this approach, Federal Realty continues to identify additional opportunities across its portfolio where residential density may be thoughtfully introduced over time, creating a multi-year runway for internally generated growth. Current active residential development underway includes:

Collectively, these projects are underwritten to blended yields approaching 7%¹. In addition to projects underway, the company has secured entitlements or expects near-term entitlements for nearly 3,500 additional residential units across its existing portfolio for future projects.

The strategy builds on Federal Realty's decades of experience integrating residential uses into retail-centric environments, including flagship mixed-use properties such as Santana Row (CA), Pike & Rose (MD), Assembly Row (MA) and Bethesda Row (MD), as well as residential additions at Congressional Plaza (MD) and Bala Cynwyd (PA). This operational expertise represents a meaningful competitive advantage and supports the company's ability to execute densification projects with attractive risk-adjusted returns across multiple markets.

Consistent with this approach, Federal Realty has demonstrated the ability to monetize mature residential assets at cap rates in the 4% to low-5% range, recycling proceeds into higher-yielding acquisition and development opportunities while maintaining balance sheet discipline. Recent residential dispositions at Santana Row and Pike & Rose generated attractive pricing and reinforced the company's disciplined capital allocation framework.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. As of December 31, 2025, Federal Realty's 104 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.   

Safe Harbor Statement

Certain matters discussed within this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and includes Note 1 on page 17 of the company's Form 8-K filed on February 12, 2026.

¹ See page 17 of the company's Form 8-K filed on February 12, 2026 for additional information regarding assumptions and calculations.
² Estimated delivery refers to the expected timing of construction completion and availability for initial tenant occupancy.

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SOURCE Federal Realty Investment Trust