Federal Realty Investment Trust Third Quarter 2016

1 The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

TACTICAL STRATEGIC REDEVELOPMENT REDEVELOPMENT • Extensive • Larger scale remerchandising “THE CENTER OF THE UNIVERSE” • Proven retail • Residential destinations opportunities • Often mixed-use • Additional GLA • In our control today • Pad opportunities 0.5 – 0.75% GROWTH SAME CENTER SHOPPING CENTER 1.5 – 2.0% GROWTH PORTFOLIO

• Best in the business • Significant “mark to market” upside • Raw material for redevelopment • Careful pruning of bottom SELECTIVE CONSERVATIVE LOW ACQUISITIONS 10% COST OF CAPITAL 3.0 – 3.5% GROWTH STRUCTURE • Future raw material • Only the best locations • Low leverage • Leasing and • Long track record redevelopment growth • Debt: fixed, laddered, low cost • Equity judiciously 0.0 – 1.0% GROWTH raised

2 Business Plan Update & Outlook Visibility on NOI Growth: The Next Decade

 Generate average of 3.25% of recurring core NOI growth ∙ Same Center POI (including redevelopment) of 4.1% on average over the last three years (better than forecasted in our 10- year business plan) ∙ 2016 expected to be ~3% which is impacted by our active repositioning of larger box space to unlock upside potential

 Invest $50M annually in redevelopment, at an 8% yield ∙ Completed and stabilized redevelopments totaling $152M at a weighted average return of 11% creating $150 - $180M of value over our investment, YTD since 2013 ∙ Pipeline of $246 million with a projected weighted average return of 8%

 Invest $200M annually in strategic redevelopment at 7% yield ∙ Invested $464 million in the 1st phase of Assembly Row and Pike & Rose which are open and operating ∙ Under construction on Phase 2 of Assembly Row and Pike & Rose totaling $481 million

 Strategically acquire $125M annually, at an initial yield of 5% ∙ Since 2014, acquired 5 properties – totaling $420M at an average cap rate of 5.5% ∙ Acquired remaining 70% interest in 6 shopping centers in January 2016 – totaling $154M

 Deliver FFO Growth (excluding prepayment premiums) of 7+% on average over a 10 year period ∙ Expect to deliver an average of ~7% FFO growth from 2013 through year end 2016, FFO growth expected to slow for 2017 as we continue to unlock value across the portfolio in order to meet our long term goals The Ultimate Balanced Business Plan Delivering On Our Plan

Acquisitions Future Mixed-Use Current Mixed-Use Redevelopment SSNOI Baseline NOI

We continue to deliver on our October1 Future 2013 results planmay differ to from double forecasts due NOI to a variety in of10 factors years. The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

5 Anchor Rollover Unlocks Significant Value(1) Short term earnings dilution leads to long term value creation

Leasing Update Executed Leases Rent Commencement Schedule(2)

Total Square Feet Vacant 730,000 $8.4 Average Prior Rent PSF $19.75

Percent Released 42% $2.1 $2.1 $1.9 $1.9 $1.7 $1.5 Rollover Percentage 37% $1.2 $1.3

Expected Rollover on Remaining SF 15 – 20%

Average Downtime ~12 - 24 months 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Annual 2019

High Quality Tenants

(1) Reflects space vacant during 3Q 2016 6 (2) Reflects managements current estimates, actual results may differ. Core Markets Strategic Metropolitan Markets

BOSTON NEW YORK PHILADELPHIA SAN JOSE / BALTIMORE SAN FRANCISCO WASHINGTON, DC LOS ANGELES

SOUTH FLORIDA

7 Exposure to the Nation’s Top Twenty Markets

FRT has the greatest concentration of assets in the nation’s top 20 markets(1), which comprise 37% of U.S. retail expenditures…

90%

80% 77.1% Peer Group Average: 53.9%

70% 63.1% 61.9% 59.4% 60% 55.5%

50% 44.3% 39.3% 40%

30% Exposure to Top Exposure to Top 20 MSAs 20%

10%

0% FRT REG EQY KIM WRI BRX DDR

8 Source: Bank of America-Merrill Lynch Research, May 2016 (1) Metropolitan Statistical Area How Will Our Core Perform? As Always, Location Matters

Unmatched combination of density and affluence sets our centers apart

$90,000

$85,000 FRT

$80,000 REG $75,000

$70,000

KIM EQY $65,000 DDR Peer $60,000 Average WRI BRX $55,000 National MedianHousehold Income in a 3 RadiusMile $50,000 Average

$45,000 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Households Per Square Mile

9 Source: Bank of America-Merrill Lynch Research, May 2016

Demographic Case Studies 3- Mile Radius

Average Household Income Average Household Income Growth 1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row $41,352 $89,612 $134,115 $154,156 $195,224 372.1% 26.6% Bethesda, MD Third Street Promenade $24,341 $60,532 $89,043 $101,963 $116,752 379.7% 14.5% Santa Monica, CA

Population Population Growth 1980 1990 2000 2010 2015 1980-2015 2010-2015 Bethesda Row 125,526 122,404 129,375 133,333 141,179 12.5% 5.9% Bethesda, MD Third Street Promenade 151,659 150,852 147,475 156,943 158,858 4.7% 1.2% Santa Monica, CA

Source: ESRI 10

Premier Operating Portfolio

Our portfolio achieves the highest cash rents in the sector, ~60% higher than our peer group average…

$30.00 Peer Group Average: $16.84 $26.67

$25.00

$20.80 $19.78 $20.00 $17.72 $14.94 $14.92 $15.00 $12.90

$10.00

$5.00

$0.00 FRT EQY REG WRI KIM DDR BRX

11 Source: Company Filings Superior Visibility on Growth How does recent leasing compare to in-place rents?

Average Rent of New Leases vs. Average In-Place Rents 2011 – YTD 2016

Avg In Place Avg New Lease $35 31.9%

$30

$25

14.6% $20 6.4% 7.0% 12.1% $15 12.4%

$10

$0 FRT REG EQY WRI DDR KIM

Source: Company Filings 12 Note: BRX excluded due to insufficient historical data. Proven History of Outperformance Superior Rollover Growth Compared to Peer Group

…and significantly higher rollover growth than our peers.

Federal Realty Peer Group Average: DDR, REG, WRI(1), KIM(1), EQY, BRX(2) 25%

22% 22% 21% 20% 20% 20% 18% 18% 18% 17% 17% 16% 16% 16% 15% 15% 14% 14% 13% 13% 13% 13% 13% 12% 12% 11% 10% 10% 10% 10% 10% 10% 9% 9% 9% 9% 8% 8% 8%

6% 5% Average Average Increase Over Prior Year Rent 2%

0% 0% -1%

-5% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 '98-YTD '16 Avg Source: Company filings (1) Only included in peer group results for periods in which data was reported 13 (2) BRX data available as of 2013 Proven History of Outperformance Superior Same Store Growth Compared to Peer Group

Average Same Store Growth: 2005 – YTD 2016

4.0% 3.8%

3.5%

3.0%

2.5% 2.5% 2.3% 2.2% 2.0% 2.0% 1.8%

1.5%

1.0%

0.5%

0.0% FRT WRI EQY KIM REG DDR

Source: Company Filings 14 Note: Same store growth figures include redevelopments. BRX excluded due to insufficient historical data. The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

STRATEGIC TACTICAL REDEVELOPMENT REDEVELOPMENT • Larger scale • Proven retail “THE CENTER OF THE UNIVERSE” destinations • Extensive remerchandising • Often mixed-use • Residential opportunities • In our control today • Additional GLA 1.5 – 2.0% GROWTH • Pad opportunities SAME CENTER SHOPPING CENTER 0.5 – 0.75% GROWTH PORTFOLIO

• Best in the business • Significant “mark to market” upside • Raw material for SELECTIVE redevelopment ACQUISITIONS • Careful pruning of bottom CONSERVATIVE LOW 10% COST OF CAPITAL • Future raw material 3.0 – 3.5% GROWTH STRUCTURE • Only the best locations • Leasing and • Low leverage redevelopment growth • Long track record • Debt: fixed, laddered, 0.0 – 1.0% GROWTH low cost • Equity judiciously raised 15 Enhancing The Core: Redevelopment Delivering On Our Plan

Chelsea Commons Residential . Approximately $152 million of redevelopment completed from 2013 through 2016 creating $150-180 million of value over our investment

Westgate

. $246 million of tactical redevelopment currently underway with a projected weighted average return of 8%

16 Current Tactical Redevelopment Pipeline

Projected Projected Cost to Anticipated Property Location Opportunity ROI Cost Date Stabilization 8% $88 $84 2017 The Point El Segundo, CA Addition of 90,000 square feet of retail and 25,000 square feet of office space

New 48 unit rental apartment building and conversion of office space into 39,000 7% $23 $22 2016 Congressional Plaza Rockville, MD square feet of retail anchor space to accommodate new tenant Westgate Center San Jose, CA Façade and interior mall renovation, addition of food court and pad site 9% $21 $21 Stabilized Towson Residential Towson, MD New 105 unit 5-story apartment building with above grade parking 6% $20 $5 2018 Demolition of former grocery anchor space to construct spaces for new grocery 8% $16 $8 2017 Plaza Del Mercado Silver Spring, MD anchor and fitness center tenants Tower Shops Davie, FL Addition of 50,000 square foot pad building 12% $15 $13 2017 Redevelopment of 92,000 square foot vacant anchor space to convert into two 6% $15 $11 Stabilized Melville Mall Huntington, NY anchor spaces for a value retailer and a sporting goods tenant and revamp current anchor space Demolition of small shop spaces and relocation of tenants to accommodate new 7% $11 $3 2018 Del Mar Village Boca Raton, FL 37,000 square foot fitness center tenant Demolition of 10,000 square foot restaurant building to construct an 18,000 square 11% $10 $0 2018 Montrose Crossing Rockville, MD foot multi-tenant pad building Santana Row San Jose, CA Addition of two retail kiosks and open air plaza upgrades 7% $5 $4 2017 Addition of two new pad sites totaling 13,000 square feet, a new 3,600 square foot 10% $5 $3 2017 The AVENUE at White Marsh White Marsh, MD restaurant building, and a drive up ATM Willow Lawn Richmond, VA Construction of two new in-line retail spaces totaling 17,400 square feet 8% $5 $4 Stabilized Eastgate Crossing Chapel Hill, NC New 7,400 square foot multi-tenant pad building on site of existing gas station 8% $4 $1 2017 Demolition of 26,000 square foot vacant building to allow for construction of new 8% $4 $3 2017 Free State Shopping Center Bowie, MD 12,500 square foot pad building for new daycare tenant Demolition of existing 3,000 square foot pad building to allow for construction of a 10% $2 $1 2016 Mercer Mall Lawrenceville, NJ multi-restaurant pad building totaling 5,600 square feet Wynnewood Wynnewood, PA Conversion of obsolete 2nd floor office space to residential 7% $2 $2 Stabilized Total Active Redevelopment projects 8% $246 $185

17 The Point at Plaza El Segundo El Segundo, CA

1.5 Miles to Manhattan Beach

MANHATTAN BEACH

18 Value Delivered Now Plaza El Segundo & The Point at Plaza El Segundo

PLAZA EL SEGUNDO

THE POINT Rosecrans Avenue

Before After Redevelopment Redevelopment Redevelopment Total Combined Investment $209 million + $75 million = $284 million

Total Combined NOI $12 million + $8 million = $20 million

Incremental Value Creation*: $100 million

19 *Assumes 4.5% cap rate The Point at Plaza El Segundo El Segundo, CA

. Additional 115,000 square feet of retail and office space

. Ideally located at the prominent intersection of Rosecrans Ave & Sepulveda Blvd. in El Segundo, CA

. Expected to stabilize in 2017

. Tenants open include:

Lucky Brand Soul Cycle Mendocino Farms

North Italia Michael Stars ShopHouse

True Food Lou & Grey Athleta Kitchen

20 Enhancing The Core: Redevelopment Tower Shops & Mercer Mall

Tower Shops in Davie, FL Mercer Mall in Lawrenceville, NJ 394,000 square feet 528,000 square feet Acquired 2011 Acquired 2003

Before After Redevelopment Redevelopment Redevelopment Total Combined Investment $175 million + $40 million = $215 million

Total Combined NOI $14 million + $7 million = $21 million

Incremental Value Creation*: $100 million

21 *Assumes no cap rate compression Tower Shops Enhancing The Core: Redevelopment

. Implemented remerchandising strategy A . Canopy renovations and site improvements

. Created & leased pad site on the back of the Property (A)

. New 50,000 square feet building built with Trader Joe’s as the anchor (B)

B B

. Additional opportunities possible for the future…. 22 Tower Shops Enhancing The Core: Redevelopment

BEFORE AFTER

AFTER

23 Mercer Mall Enhancing The Core: Redevelopment

. Began implemented remerchandising strategy in 2009

. Installed 1.5 megawatt solar roof and parking panel system

. Developed pad site for PNC Bank

. Replaced Office Depot with Nordstrom Rack and hhgregg with REI which opened in 2015 and improved overall merchandising for the property

. Additional construction and development currently underway to add 2 new restaurants Mercer Mall Enhancing The Core: Redevelopment

BEFORE

AFTER

25 The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

TACTICAL REDEVELOPMENT STRATEGIC • Extensive REDEVELOPMENT remerchandising • Residential opportunities “THE CENTER OF THE UNIVERSE” • Larger scale • Additional GLA • Proven retail destinations • Pad opportunities • Often mixed-use 0.5 – 0.75% GROWTH • In our control today SAME CENTER SHOPPING CENTER 1.5 – 2.0% GROWTH PORTFOLIO

• Best in the business • Significant “mark to market” upside • Raw material for SELECTIVE redevelopment CONSERVATIVE LOW ACQUISITIONS • Careful pruning of bottom COST OF CAPITAL 10% STRUCTURE • Future raw material 3.0 – 3.5% GROWTH • Only the best locations • Low leverage • Leasing and • Long track record redevelopment growth • Debt: fixed, laddered, low cost 0.0 – 1.0% GROWTH • Equity judiciously raised

26 Mixed-Use Investment Underway A Robust Pipeline that Delivers Near Term

Projected POI Delivered (as a % of Total) Projected Total Costs to For Year Ended December 31, Property ROI Cost Date 2016 2017 2018 2019 Expected Opening Timeframe Assembly Row Phase I 5-6% $196 Complete 90% 100% 100% 100%

Phase II 7% $270 - 285 $175 - - 50% 90% Opening projected 3Q 2017 through 2Q 2018 741,500 SF Partners Healthcare office space (built by Partners) opened in 2016 Condos - $70 - 75 $21 Projected closings to commence 2Q 2018

Pike & Rose Phase I 6-7% $265-270 $264 50% 75% 90% 100% Retail & office open Residential opened in 2014 (174 units) and 2015/16 (319 units) Phase II 6-7% $200 - 207 $81 - - 65% 85% Opening projected 3Q 2017 through 2Q 2018

Condos - $53 - 58 $19 Projected closings to commence 2Q 2018

Santana Row 700 Santana Row 7% $205 - 215 $14 - - - TBD Commencing construction 4Q 2016 Opening projected 2019

27 (1) See filed 8-k for additional disclosure and footnotes Phase II Residential Projects The Henri & The Montaje

719 residential units delivering in the second half of 2017…

THE HENRI at Pike & Rose THE MONTAJE at Assembly Row 272 Apartment Units 447 Apartment Units 45,000 SF of Retail 40,000 SF of Retail

…Which will be drag on 2017 NOI but creates long term value 28 Mixed Use Value Creation Santana Row Since 2012

The last three projects at Santana Row have created $195 million of incremental value for the property…

Levare Misora Splunk Building 108 Unit Residential Building 212 Unit Residential Building Class A Office Building

Total Cost $35 million $76 million $113 million

ROI 9% 8% 9%

(1) Incremental Value Creation $35 million $60 million $100 million

… This is not possible without the creation of the “right street”

29 (1) Value of NOI less Cost. Assumes at 4.5% cap rate. Assembly Row Somerville, MA

30 Assembly Row Somerville, MA

Project Totals: . 824,000 SF Total Retail . 98,000 SF Total Office . 447 Residential Units . 122 For Sale Condos . 159 Hotel Rooms . 445 AvalonBay Owned Residential Units . 741,500 SF Partners Healthcare Owned Office

31 Assembly Row Update

 100% of Phase 1 retail GLA occupied ∙ Tenants significantly exceeding sales targets  Office space 100% occupied  All-in there will be over 6,000 employees at Assembly Row by mid 2017 ∙ Partners HealthCare has moved ~2,000 of 4,500 employees into their new building, additional ~2,500+ employees on track to move in by early 2017  Broke ground on $280 million Phase 2 with an expected return of 7%...

32 Assembly Row Update

33 Assembly Row Phase 2 Underway

Projected ROI: 7% Total Cost: $270–$285M

. 161K SF of retail . 741K SF of office space . 447 luxury residences (Partners’ Healthcare Building) . 159-room boutique hotel . Projected opening: late . 122 for-sale condominiums 2017/2018 34 Assembly Row Somerville, MA

35 Pike & Rose Phase 2 Underway

36 Pike & Rose North Bethesda, MD

Project Totals: . 387,000 SF Total Retail . 80,000 SF Total Office . 765 Total Residential Units . 99 For Sale Condos . 177 Hotel Rooms

37 Pike & Rose Update

 Retail 100% occupied  Office space is 100% occupied ∙ Achieved average rents of $43  Broke ground on Phase 2 ∙ Additional 450 parking spaces delivered in Q4 2015  319 unit high-rise Pallas delivered in Q2 2016  Phase 1 residential is 90% leased  Retailers include:

Del Frisco’s Grille Carluccio’s Summer House & Stella Barra iPic Theaters AMP by Strathmore Francesca’s Gap / GapKids Roti La Madeleine Sport & Health Seasons Olive Oil Lucky Brand ShopHouse &Pizza Nike

38 Pike & Rose Residential Premiums

Despite softness in the Montgomery County residential market, Pike & Rose residential is still commanding a 10 – 15% premium to the market.

39 Pike & Rose Phase 2 Underway

Projected ROI: 6 – 7% Total Cost: $200–$207M . 216K SF of retail . 177-room Canopy by Hilton lifestyle . Signed anchors REI, H&M brand hotel Pinstripes . 272 luxury residences . Pre-leased Porsche dealership . 99 for-sale condominiums 40 building . Projected opening: late 2017/2018 Santana Row

Stanford Apple Sunnyvale Google

Santa Clara

500 Santana Row

700 Santana Row

41 Santana Row 700 Santana Row

. 284,000 square foot class-A office building . 1,300 parking spaces . 29,000 square feet of retail . $205 - 215 million total investment at expected return of 7% . $115 million of total value creation1

1 Value of NOI less capital. Assumes a 4.5% cap rate.

42 Santana Row 500 Santana Row

. 234,500 square foot class-A office building, with 670 parking spaces . 100% pre-leased to Splunk, Inc. (SPLK) in August 2015 . $110-115 million total investment at expected return of 9% . $100 million of total value creation1

1 Value of NOI less capital. Assumes a 4.5% cap rate.

43 Santana Row San Jose, CA

Development Underway Future Development Lot 12 Lot residential Santana West

Lot 11 Lot 9 office/retail office/retail

44 Santana Row & Santana West Future Opportunities

SANTANA ROW & SANTANA WEST FUTURE

Santana Row Santana West Potential Future Investment: $200M - $250M 1 $400M - $500M 1

Remaining Entitlements: Zoning Envelope: . 321K SF commercial ▪ 950,000 SF . 395 residential units ▪ Retail, hotel, office, residential ▪ 12 acres ▪ In process of obtaining entitlements

45 1 Represents an estimate of future phases. Actual investment may differ. Shadow Pipeline of Mixed-Use Opportunities Infill Locations Support Even More Value Creation

Our mixed-use development pipeline consists of over 300 acres of land, with $3.5 - $4.5 billion of re/development potential over the next 15 years....

Current/In Process SF Future Property Location Acreage Commercial Residential Hotel Potential SF1 Assembly Row Somerville, MA 44 597,000 447 apts 160 rms 2.5M Bethesda Row Bethesda, MD 12 534,000 180 apts - 420k Pike & Rose North Bethesda, MD 24 430,000 765 apts 177 rms 1.7M Santana Row San Jose, CA 56 510,000 662 apts 215 rms 1.6M Village at Shirlington Arlington, VA 30 261,000 - - 200k Federal Plaza Rockville, MD 18 251,000 - - 1.5M Pan Am Fairfax, VA 25 227,000 - - 500k Pike 7 Tysons Corner, VA 13 164,000 - - 2.0M Rollingwood Silver Spring, MD 14 - 282 apts - 670k CocoWalk Coconut Grove, FL 3 198,000 - - 80k Darien Darien, CT 9 95,000 - - 220k Montrose Crossing North Bethesda, MD 35 363,000 - - 2.5M San Antonio Center Mountain View, CA 31 365,000 - - 2.7M Shops at Sunset Place South Miami, FL 10 515,000 - - 200k Total 15 Properties 324 4,510,000 2,336 apts 552 rms 17M

46 1 Potential SF are estimates. Actual SF could differ significantly when final redevelopment plans are completed. CocoWalk & The Shops at Sunset Place Pipeline of Mixed Use Development

DOWNTOWN WEST FLAGLER LITTLE HAVANA BRICKELL

THE ROADS

CORAL WAY

VIRGINIA KEY CORAL GABLES COCONUT GROVE

COCOWALK SOUTH MIAMI

THE SHOPS AT 47 SUNSET PLACE KEY BISCAYNE CocoWalk Pipeline of Mixed-Use Development

. Occupies 3 acres at the prominent intersection of Main Highway, McFarlane Road and Grand Avenue ∙ Approximately 4 miles from downtown Miami ∙ Located in the Grove District – one of the densest and most authentic neighborhoods in Miami-Dade . Year-round South Florida demographics (3 miles): ∙ Population: 140,171 ∙ Average HHI: $89,122 ∙ Daytime Population: 94,998 . Planned mixed-use redevelopment buildable as-of-right. . Lease encumbers site through 2023 (negotiations underway to gain control early).

48 1 Represents an estimate of future phases. Actual investment may differ. The Shops at Sunset Place Pipeline of Mixed-Use Development

. Located on Route 1 in South Florida ∙ Superior location and visibility next to mass transit and the University of Miami . Year-round South Florida demographics (3 miles): ∙ Population: 100,389 ∙ Average HHI: $118,806 ∙ Daytime Population: 80,009 . Planning discussions underway for mixed-use entitlements.

. Lease encumbers site through 2024 (negotiations underway to gain control early).

49 1 Represents an estimate of future phases. Actual investment may differ. Darien Pipeline of Mixed-Use Development

. AERIAL

50 Darien Pipeline of Mixed-Use Development

. Located at Exit 10 of I-95 in Darien, Fairfield County, Connecticut . 9 acres . Directly across from Noroton Heights train station (services more than 300,000 passengers annually) . Demographics (3 miles): . Population: 100,161 . Average HHI: $136,761 . Daytime Population: 86,490 . Zoning approval received in August for ground floor retail with 2 floors of residential above

. Potential Future Investment: $70M - $95M1

. Lease encumbers site through 2024 (negotiations underway with tenant to gain control early)

51 1 Represents an estimate of future phases. Actual investment may differ. The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

TACTICAL STRATEGIC REDEVELOPMENT REDEVELOPMENT • Extensive “THE CENTER OF THE UNIVERSE” • Larger scale remerchandising • Proven retail • Residential destinations opportunities • Often mixed-use • Additional GLA • In our control today • Pad opportunities SAME CENTER 0.5 – 0.75% GROWTH SHOPPING CENTER 1.5 – 2.0% GROWTH PORTFOLIO

• Best in the business • Significant “mark to market” upside • Raw material for redevelopment SELECTIVE • Careful pruning of bottom ACQUISITIONS 10% CONSERVATIVE LOW 3.0 – 3.5% GROWTH COST OF CAPITAL • Future raw material STRUCTURE • Only the best locations • Low leverage • Leasing and • Long track record redevelopment growth • Debt: fixed, laddered, low cost • Equity judiciously 0.0 – 1.0% GROWTH raised

52 Seeing Beyond the Acquisition Delivering on our Plan

Acquisitions generate accretion, visible income growth and potential for long term value creation.

San Antonio Center CocoWalk Shops at Sunset Place

Acquired: January 2015 Acquired: May 2015 Acquired: October 2015 376,000 sf neighborhood 198,000 sf lifestyle 515,000 sf lifestyle center / 33 acres center / 3 acres center / 10 acres

53 Seeing Beyond the Acquisition Clarion Acquisition

Transaction Overview Current Redevelopment Opportunities

. Acquired Clarion’s 70% interest in the partnership in January 2016

. 6 shopping centers – 820,000 SF total: . Barcroft Plaza, Falls Church, VA . Free State Shopping Center, Bowie, MD . Plaza del Mercado, Silver Spring, MD Plaza Del Mercado . Greenlawn Plaza, Greenlawn, NY Cost: $16 million ROI: 8% . Atlantic Plaza, North Reading, MA Demolition of former grocery anchor space to . Campus Plaza, Bridgewater, MA construct spaces for new grocery anchor and fitness center tenants

Free State Shopping Center Cost: $4 million ROI: 8% Demolition of 26k SF vacant building to allow for construction of new 12.5k SF pad building for new daycare tenant 54 The Ultimate Balanced Business Plan …With A Clear Path To Value Added Growth

TACTICAL STRATEGIC REDEVELOPMENT REDEVELOPMENT • Extensive • Larger scale remerchandising “THE CENTER OF THE UNIVERSE” • Proven retail • Residential destinations opportunities • Often mixed-use • Additional GLA • In our control today • Pad opportunities SAME CENTER 0.5 – 0.75% GROWTH SHOPPING CENTER 1.5 – 2.0% GROWTH PORTFOLIO

• Best in the business • Significant “mark to market” upside • Raw material for redevelopment • Careful pruning of bottom SELECTIVE CONSERVATIVE LOW 10% COST OF CAPITAL ACQUISITIONS 3.0 – 3.5% GROWTH STRUCTURE • Future raw material • Only the best locations • Low leverage • Leasing and • Long track record redevelopment growth • Debt: fixed, laddered, low cost 0.0 – 1.0% GROWTH • Equity judiciously raised

55 Growth with Solid Foundation Conservative Capital Structure Supports Growth Strategy

. Debt to market cap of 20%

. Net debt to EBITDA of 5.2x and fixed charge coverage of 4.6x

. Well laddered maturity schedule with a weighted average tenor of over 11 years

. Continue to retire mortgages as they mature to increase property level flexibility

. In July 2016, opportunistically issued $250 million of 30-year senior unsecured notes at a coupon of 3.625% and an effective rate of 3.750%

. Raised $150 million of common equity in an overnight offering in March 2016

. In April 2016, upsized revolving credit facility to $800 million, extended to April 2020, and pricing lowered to LIBOR + 82.5 bps in April 2016

. Funding future capital needs through a combination of excess cash flow, unsecured notes, and moderate equity through our ATM all while maintaining consistent debt to EBITDA and interest coverage metrics

. Maximizing flexibility by phasing and conservatively funding our mixed-use investments

56 Conservative Capital Structure How does Federal Realty compare to its peers?

Debt to Market Cap Net Debt to EBITDA

35.0% 6.0x 5.9x 31% 30.0% 5.8x

5.6x 25.0%

5.4x 20% 20.0% 5.2x 5.2x 15.0% 5.0x

10.0% 4.8x

5.0% 4.6x

0.0% 4.4x FRT Peers FRT Peers

Source: Company Filings, SNL Financial 57 Well Laddered Maturity Schedule How does Federal Realty compare to its peers?

4.80 FRT 3/31/14

4.60 BXP EQR

4.40

DDR 4.20 FRT WRI

Weighted Average Interest Rate (%) 4.00 Peer Group Average

3.80 BRX SPG KIM

3.60 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0

Weighted Average Debt Maturity

Source: Company Filings, SNL Financial 58 History of Stability Stable Balance Sheet Offers Maximum Flexibility

Fixed Charge Coverage vs. % Variable Debt

Fixed Charge Ratio % Variable Debt 5.0x 25% 4.6x 4.4x 4.5x

4.0x 20% 3.6x 3.6x 3.5x 3.5x

3.0x 15% 2.5x 2.5x

2.0x 10%

1.5x

1.0x 5%

0.5x

0.0x 0% FRT EQY REG WRI BRX DDR

Source: Company Filings 59 Consistent Results Consistent Bottom Line Results Throughout Volatile Market Environments

Dividend CAGR (2005 - 2016(1)) 2016 FFO Payout Ratio 8% 76.0% 6.1% 6% 74.0% 4% 72.0% 2% 70.0% 0%

-2% -0.9% 68.0% -1.6% -1.9% -4% -2.8% 66.0% -6% 64.0% -8% 62.0% -10% -9.9% -12% 60.0% FRT REG KIM WRI EQY DDR

Source: Company Filings, SNL Financial 60 1) 3Q 2016 Annualized. Proven History of Outperformance Solid Foundation with Property Level Outperformance Delivers to the Bottom Line

Cumulative Change in FFO per Share Since 2005

FRT REG EQY KIM WRI DDR 100% 84.6% 80%

60%

40%

20%

0% -16.9% -20% -23.4% -24.9% -40% -31.0%

-60% -61.2%

-80%

-100% 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016E

61 Source: SNL Financial, Company Filings Dividend Growth 1967 – 2016

49 Consecutive Years of Increased Annual Dividends The Longest Record in the REIT Industry

Current Annualized Dividend Per Share: $3.92 2009 $3.92 Great Recession 2004 Inflation hits 40- year low of 1998 1.1% Asian and Russian financial crisis

1980 1973 Inflation in U.S. OPEC imposes hits 14.8% oil embargo on the U.S.

$0.12

1967 DIVIDENDS 2016 62 Safe Harbor Language Federal Realty Investment Trust

Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. 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 filed on February 9, 2016, and include the following:

• risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire; • risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected; • risks that we are investing a significant amount in ground-up development projects that may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded; • risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate; • risks that our growth will be limited if we cannot obtain additional capital; • risks associated with general economic conditions, including local economic conditions in our geographic markets; • risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and • risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 9, 2016.

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