Federal Realty Prices $400 Million in Exchangeable Senior Notes

The notes, scheduled to close on August 11, 2026, will accrue interest semi-annually starting February 2027. Holders may exchange the notes for cash or Federal Realty common shares, with an initial exchange rate of 7.2179 shares per $1,000 principal amount. This represents an exchange price of approximately $138.54 per share, set against a reference price of $117.91.

Management expects to net roughly $392 million from the sale. Funds are earmarked for debt repayment, general corporate purposes, and the cost of capped call transactions designed to mitigate potential share dilution. The partnership maintains the right to redeem the notes early under specific conditions, including scenarios where the stock price stays at least 130% above the exchange price for a defined period or if the outstanding principal falls below 10% of the initial issuance.