Federal Realty Investment Trust Buys The Summit for $508 Million

Federal Realty Investment Trust acquired The Summit, a 100-acre open-air retail destination in Birmingham, Alabama, for $508 million. The purchase, which was $498 million on a net basis, includes more than 110 tenants, including Apple and Trader Joe's.

The property is the most-visited retail destination in Alabama, attracting nearly 9 million annual visits. Federal Realty plans to fund the acquisition through a combination of free cash flow, proceeds from asset sales, and recently issued convertible notes. The company stated the acquisition is immediately accretive to funds from operations per share.

This purchase expands the company's Central Region portfolio to seven properties across Birmingham, Chicago, Kansas City, and Omaha. Don Wood, President and Chief Executive Officer of Federal Realty, described the property as a dominant asset and expressed excitement about adding it to the portfolio.