Federal Realty Investment Trust (NYSE:FRT) Q2 2017 Earnings Conference Call - Final Transcript
Aug 03, 2017 • 11:00 am ET
I've made about Federal in what will be the final installment of this series. And that relates to the strength and the breadth of Federal's diversification, which is key to our balanced business strategy. Whether there's diversification by tenant or no tenant is greater than 3% of total revenues or by retail format where we are essentially retail format agnostic with the exception of in closed malls or by market where we operate in nine of the top MSAs in the US.
Our diversification by tenant category however is something I would like to emphasize further, as managing our exposure to various segments is also central to our strategy. Federal's largest tenant categories by revenue are through discount apparel at 9%, full-service restaurants at 9%, full-priced apparel at only 9%, grocery stands at just 8%; fitness, health and beauty at 8%, office at 8%, residential at 7%; which is heading higher as we deliver Phase 2s at Assembly and Pike & Rose. Home furnishings' at 7%, entertainment at 6%, limited service restaurants in 4%, all the other categories totaled 24% with no single category of up 3%.
Balance in our approach has always been a key stone at Federal's business strategy, whether it'd be related to capital allocation, balance sheet management, operational or development initiatives as well as merchandising and tenant exposure. This focus on balance has resulted in Federal not having significant revenue exposure to any one tenant category and positions us to outperform as we approach in more difficult and challenging retail environment moving forward.
And with that operator, we can open up the line for questions.