Andrew Reilly

Andrew Reilly asked about the drivers behind the record-breaking rent spreads achieved in 2025, specifically if the pricing power was broad-based or concentrated in certain property types/regions, and its sustainability into 2026.

Answer

Wendy Seher, President and COO, Eastern Region, confirmed that the strong rent spreads are broad-based across the portfolio, driven by high demand and limited supply in premier properties. She noted consistent year-over-year rent growth for the past three years and expressed confidence that rent spreads in 2026 should be comparable to 2025 levels.

Andrew Reilly questioned the drivers behind Federal Realty achieving its strongest rent spreads in over a decade in 2025, asking if this pricing power was broad-based across property types and regions, and if these levels are sustainable through 2026.

Answer

Wendy Seher, President and Chief Operating Officer, Eastern Region, confirmed that the strong pricing power is broad-based, driven by high demand and limited supply in premier properties. She highlighted consistent year-over-year rent growth and expressed confidence that rent spreads in 2026 should be comparable to 2025 levels.