Don Wood, CEO of Federal Realty Investment Trust (NYSE: FRT), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas on Nov. 18-21. Wood expressed optimism about the current state of the retail real estate market.
"Honestly, it's a pretty darn good time to be in retail real estate—demand exceeds supply," Wood shared, highlighting the company's strong performance in well-known mixed-use properties like Santana Row, Assembly Row, and Bethesda Row.
Looking ahead, Wood emphasized the company's active strategy in acquisitions and dispositions. He revealed that Federal Realty recently placed a West Coast asset under contract, expected to close in February 2025, with more deals likely in the coming months. On the disposition side, Wood noted the importance of refining the portfolio: "I always think that you want to lean out the portfolio for those assets that no longer fit the overall business plan."
Wood also pointed to a strategic push toward residential development. With a significant shortage of housing in the U.S., Federal Realty plans to add residential units to its existing shopping centers where excess land is available. This approach aims to enhance long-term property productivity, with key developments expected to materialize by 2025 and 2026.