March 23, 2018

Dear Shareholder:

Please accept this invitation to attend our 2018 Annual Meeting of Shareholders on Wednesday, May 2, 2018 at 10:00 a.m. This year’s meeting will be held at AMP by Strathmore located at our Pike & Rose property, 11810 Grand Park Avenue, North Bethesda, Maryland.

The attached notice of the 2018 Annual Meeting of Shareholders and proxy statement provide important information about the annual meeting and the business to be conducted at the meeting. In addition, management will provide a review of 2017 operating results and discuss the outlook for the future. After the formal presentation, our Trustees and management will be available to answer any questions you may have.

Your vote is important to us. We urge you to read this proxy statement carefully. Whether or not you plan to attend the annual meeting in person, we urge you to vote promptly through the internet, by telephone or by mail.

Thank you for your continued support and we look forward to seeing you on May 2.

Sincerely,

1626 East Jefferson Street, Rockville, Maryland 20852

NOTICE OF 2018 ANNUAL MEETING OF SHAREHOLDERS

For the Trustees:

Dawn M. Becker

Executive Vice President—General Counsel and Secretary

March 23, 2018

HOW TO VOTE

Your vote is important to us. You are eligible to vote and receive notice of the meeting if you were a registered owner of record of our common shares of beneficial interest (“Shares”) at the close of business on the record date of March 14, 2018. A majority of the Shares entitled to vote at the Annual Meeting must be present in person or by proxy for us to proceed with the Annual Meeting.

If you own your Shares directly with our transfer agent, American Stock Transfer and Trust, LLC, you are a registered shareholder and can vote either in person at the Annual Meeting or by proxy without attending the Annual Meeting through one of the following methods:

You may revoke your proxy at any time before it is voted at the Annual Meeting by notifying the secretary in writing, submitting a proxy dated later than your original proxy, or attending the Annual Meeting and voting in person.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR OUR ANNUAL MEETING. Our 2018 Proxy Statement and 2017 Annual Report to Shareholders, which includes our Annual Report on Form 10-K for the year ended December 31, 2017, are available at www.federalrealty.com.

TABLE OF CONTENTS

ABOUT FEDERAL REALTY

Federal Realty Investment Trust is a recognized leader in the ownership, operation and redevelopment of high-quality retail based real estate located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, our mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Our expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments combine shopping, dining, living and working and provide a destination experience that serves the needs of the broader surrounding community. Federal Realty’s 104 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,300 residential units.

Throughout this proxy statement, we use the terms “Federal”, “Company”, “Trust”, “we”, “our” and “us” to refer to Federal Realty Investment Trust.

ANNUAL MEETING INFORMATION

We are providing these proxy materials in connection with the 2018 Annual Meeting of the Shareholders of the Trust. These materials will assist you in voting your Shares by providing information on matters that will be presented at the Annual Meeting.

The following matters are being presented for a vote at the 2018 Annual Meeting of Shareholders:

NOTICE OF ELECTRONIC AVAILABILITY OF PROXY MATERIALS

We are furnishing proxy materials including this proxy statement and our 2017 Annual Report to Shareholders, which includes our Annual Report on Form 10-K for the year ended December 31, 2017 (“Annual Report”), to each shareholder by providing access to such documents on the Internet instead of mailing printed copies unless you previously requested to receive these materials by mail or e-mail. On or about March 23, 2018, we mailed to our shareholders who have not previously requested to receive these materials by mail or e-mail a “Notice of Internet Availability of Proxy Materials” (“Notice”) containing instructions on how to access and review this proxy statement and our Annual Report and how to submit your vote on the Internet or by telephone. You cannot vote by marking the Notice and returning it. If you received the Notice by mail, you will not automatically receive a printed copy of our proxy materials or Annual Report unless you follow the instructions for requesting these materials included in the Notice.

The Board is responsible for providing governance and oversight of the strategy, operations and management of the Trust on behalf of our shareholders. The Board has adopted the following key documents that form the governance framework for the Trust. Each of these documents is periodically reviewed and updated to comply with current regulatory and governance requirements.

These documents are available under the Investors/Corporate Governance section of our website at www.federalrealty.com. Printed copies of these documents are also available free of charge upon written request to our Investor Relations Department at 1626 East Jefferson Street, Rockville, Maryland 20852.

CORPORATE GOVERNANCE PRACTICES

The Trust has a history of strong corporate governance and is committed to practices and policies that best serve the interests of our shareholders. Our practices and policies include, among other things, the following:

BOARD LEADERSHIP STRUCTURE

Our Board has been directed by a Non-Executive Chairman of the Board since 2003. The Board believes that having its own leadership separate from our Chief Executive Officer provides the Board with an effective way to ensure that it is fully informed and has the opportunity to fully debate all important issues as necessary to fulfill its oversight responsibilities and hold management accountable for the performance of the Trust. This also allows our Chief Executive Officer to focus his time on running our day-to-day business. Our Non-Executive Chairman presides at all meetings of the Board and helps to set the agendas for Board meetings.

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INDEPENDENCE OF TRUSTEES

The Board reviews on an ongoing basis all relationships between us and each Trustee to determine whether each Trustee is independent or otherwise has any relationship to the Trust that could adversely affect the Trustee’s ability to exercise independent judgment. This review also determines whether each Trustee satisfies the independence requirements of the New York Stock Exchange (“NYSE”), the Securities and Exchange Commission (“SEC”), our Corporate Governance Guidelines and other applicable rules and regulations and whether we are in compliance with our Bylaws which provide that no more than one of our Trustees can fail to qualify as independent. Our Corporate Governance Guidelines include a standard that a Trustee’s position as a director, officer or owner of a company with which we do business does not constitute a material relationship so long as payments made by that company do not account for more than five percent (5%) of our gross revenues or more than ten percent (10%) of the gross revenues of that company.

The Board, on recommendation of the Nominating and Corporate Governance Committee, considered all relevant facts and circumstances and determined that all Trustees other than Mr. Wood, our Chief Executive Officer, are independent for purposes of Board and committee service under the standards of the NYSE, the SEC, our Corporate Governance Guidelines and applicable law. In making the independence determination, the Nominating and Corporate Governance Committee and the Board considered the following:

BOARD MEETINGS

The Board of Trustees holds regularly scheduled in-person meetings and if needed, will also act through telephonic meetings, action by written consent and other communications with management. During 2017, the Board of Trustees held four in-person meetings and the non-management, independent Trustees held an executive session at each of those meetings. Mr. Vassalluzzo, the Non-Executive Chairman of the Board, presided over all Board meetings as well as all executive sessions of the non-management Trustees. The Non-Executive Chairman of the Board is expected to preside over all future Board meetings and executive sessions of non-management Trustees.

Each of the Trustees attended 100% of the meetings of the Board as well as 100% of all committee meetings, including committees on which the Trustee did not serve during 2017. It is the Trust’s policy for all Trustees to attend our annual meeting of shareholders absent exceptional cause. All Trustees attended our 2017 Annual Meeting of Shareholders.

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BOARD COMMITTEES

The Board has three standing committees – the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee. Each committee operates under a written charter which is available in the Investors section of our website at www.federalrealty.com. Each committee member meets the independence, experience and, with respect to the Audit Committee, the financial literacy requirements, of the NYSE, the SEC and our Corporate Governance Guidelines. Information about each of these committees is included in the chart below:

RISK MANAGEMENT OVERSIGHT

The Board is responsible for overseeing enterprise level risk of the Trust and does so directly as well as through its committees. As part of carrying out its risk oversight responsibilities, the entire Board regularly receives updates from management on the continued viability of our business plan, market conditions, capital position, and our business results and specifically reviews potential business risks from time to time. The Board reviews that information together with our quarterly and annual financial statements and operating results and short and long-term business prospects to assess the risks that we may encounter and to establish appropriate direction to avoid or minimize the potential impact of the identified risks. Some of the details that are discussed as part of the Board’s review of potential risks facing us include, without limitation:

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COMPENSATION RISK ASSESSMENT

In February 2018, our Compensation Committee reviewed our compensation policies and practices for all of our employees to determine whether any of such policies or programs created any risk that is reasonably likely to have a material adverse effect on the Trust. Based on that review, the Committee does not believe that our compensation programs encourage unnecessary or excessive risk taking. Specifically, the compensation of more than 96% of our corporate employees is based on corporate performance objectives. For the approximately, 4% of our employees who earn compensation by completing leasing transactions or closing acquisitions, they cannot complete any deals without first obtaining approvals from either the Board and/or one or more members of senior management whose compensation is tied to corporate performance.

COMMUNICATIONS WITH THE BOARD

Any shareholder or other interested party may communicate with the Board or any Trustee by sending the communication to the Trust’s corporate offices at 1626 East Jefferson Street, Rockville, MD 20852 in care of the Trust’s Secretary. All communications should identify the party to whom it is being sent, and any communication which indicates it is for the Board of Trustees or fails to identify a particular Trustee will be deemed to be a communication intended for the Trust’s Non-Executive Chairman of the Board. The Trust’s Secretary will promptly forward to the appropriate Trustee all communications she receives for the Board or any individual Trustee which relate to the Trust’s business, operations, financial condition, management, employees or similar matters. The Trust’s Secretary will not forward to any Trustee any advertising, solicitation or similar materials.

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Review and Approval of Related Party Transactions

Our Code of Business Conduct requires that our Trustees and all of our employees deal with the Trust on an arms-length basis in any related party transaction. All transactions between us and any of our Trustees, our named executive officers or other vice presidents, or entity in which any of them has an ownership interest must be approved in advance by the Audit Committee. Audit Committee approval is not required for us to enter into a lease with an entity in which any of our Trustees is a director, employee or owner so long as the lease is entered into in the ordinary course of business and is negotiated at arms-length and on market terms.

Related Party Transactions

Mr. Thompson, one of our Trustees, serves as the President and Chairman of the Board of Directors of Thompson Hospitality Corporation (“THC”). THC leases from us approximately 11,000 square feet for two restaurant locations. Those leases were negotiated at arms’ length, reflecting market conditions at the time they were negotiated, and are scheduled to expire on June 30, 2020 and December 31, 2021, subject to a tenant extension option. We anticipate receiving approximately $750,000 in rent and other related charges in 2018 from these two locations. In addition, during 2017 we had in place a partnership with THC pursuant to which our partnership leased a restaurant location from us in one of our properties. We owned 80% of the partnership and THC owned the remaining 20% of the partnership and acted as the manager of the restaurant and the partnership. The terms and structure of the partnership were negotiated at arms-length and reflected terms, structures and conditions consistent with other restaurant investments we have made. In 2017, we made the decision collectively with THC to terminate the partnership as well as the lease. This decision was based on the operating performance of the restaurant and not as a result of any disagreements between us and THC. We have finalized the dissolution of the partnership and termination of the lease and have already entered into a lease for the space with a new, unrelated restaurant tenant. The Board reviewed these relationships with Mr. Thompson and determined that Mr. Thompson met all independence requirements for his service as a Trustee during 2017 as described in the “Independence of Trustees” section above.

None of our named executive officers had or has any indebtedness to the Trust or any relationship with the Trust other than as an employee and shareholder. Employment and change-in-control arrangements between the Trust and the named executive officers are described in the “Potential Payments on Termination of Employment and Change-in-Control” section below.

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PROPOSAL 1 – ELECTION OF TRUSTEES

Our Board of Trustees currently has seven Trustees, all of whom have been nominated to stand for election at the 2018 Annual Meeting. All trustees elected at the meeting will hold office until the 2019 Annual Meeting of Shareholders and until their successors have been duly elected and qualified. You are entitled to cast one vote per Share for each of the seven named individuals. Proxies may not be voted for more than seven individuals. Our Bylaws provide that in uncontested elections such as this one, a nominee must receive a majority of votes cast in order to be elected. An “abstention” or “broker non-vote” will have no effect on the outcome of the vote for this proposal.

		The Board recommends that you vote “FOR” each of the nominees.

NOMINEES

The Nominating and Corporate Governance Committee is responsible for identifying individuals who are qualified candidates to serve on our Board. The committee has identified the following seven individuals to stand for election at our 2018 Annual Meeting of Shareholders. Each of these nominees is currently a member of our Board.

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QUALIFICATIONS AND CHARACTERISTICS OF TRUSTEES

In determining who should stand for election as a Trustee, the Nominating and Corporate Governance Committee tries to ensure that the Board is composed of individuals whose backgrounds, skills and experiences, when taken together, will provide the Board with the range of skills and expertise to be able to effectively guide and oversee our strategy, operations and management. At a minimum, candidates should have the ability to exercise judgment in fulfilling his/her responsibilities, a professional background that would enable him/her to understand our business, public company, real estate, retail and/or other financial experience and a history of honesty, integrity and fair dealing with third parties. The skills and experience of the Trustees in areas we consider critical to our business are described in detail in the biographies above and summarized below:

The Nominating and Corporate Governance Committee also seeks geographic, age, gender and ethnic diversity on the Board. Although the Board has not adopted any specific policies on diversity, the Committee and the Board believe that diversity is a factor to be considered that is consistent with the goal of creating a Board that best serves the needs of the Trust and our shareholders. Our nominees reflect the Board’s efforts and commitment to diversity with two women and one African American included in that group.

PROCESS FOR SELECTING TRUSTEES

In considering nominees to stand for election at the Annual Meeting, the Board and the Committee evaluate each person’s background, qualifications and attributes to serve as a Trustee based on the criteria described above and for incumbent Trustees, their years of experience working together on the Board and the deep knowledge of the Trust they have developed as a result of such service on the Board. This is especially important in our company where real estate decisions and strategy often take years to develop and require a full understanding of history in setting strategies and making decisions. The Board and the committee also consider each incumbent Trustee’s contributions to the effectiveness of the Board and its committees based on the in-depth individual trustee evaluations completed each year for each Board member by each other Board member.

To identify, recruit and evaluate qualified new candidates for the Board, the Board first looks to individuals known to current Board members through business and other relationships. If the Board is not able to identify qualified candidates in that way, the services of a professional search firm would be used. Ms. Holland was identified by Board members through her participation and leadership position in the International Council of Shopping Centers, a key industry organization for the Trust’s business. Prior to her nomination, Ms. Holland met separately with and was evaluated by our Non-Executive Chairman, the Chair of the Nominating and Corporate Governance Committee, our CEO as well as other Board members. It was only after this process was complete that Ms. Holland was nominated for the Board.

PROCESS FOR SHAREHOLDERS TO RECOMMEND TRUSTEE NOMINEES

Shareholders may propose a candidate to be nominated for election to the Board by following the procedures outlined in our Bylaws, a copy of which can be obtained by sending a written request to Investor Relations at 1626 East Jefferson Street, Rockville, Maryland 20852. If you want to recommend a nominee, you can submit a written recommendation in accordance with our Bylaws that includes the name, qualifications and other pertinent information about the nominee to the Trust’s Secretary at our Rockville office. Any recommendation for a nominee to be considered at our 2019 Annual Meeting must be submitted no later than November 23, 2018.

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TRUSTEE COMPENSATION

Our non-employee Trustees receive the following compensation for their service on the Board:

As of December 31, 2017, all Trustees then serving on the Board complied with the required level of stock ownership with the exception of Ms. Holland, who joined the Board in February 2017 and is expected to satisfy the requirement within the 5-year time frame.

In addition to the annual retainer described above, Mr. Vassalluzzo receives administrative support for both Trust business and personal use from our regional office in Wynnewood, Pennsylvania. There were no additional fees paid or services provided to any Trustee for service on any of the Board committees or for attendance at any Board or committee meetings other than those described above.

Total compensation awarded to Trustees for service in 2017 was as follows:

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EXECUTIVE OFFICERS

Our named executive officers (“NEOs”) are:

Donald C. Wood, Information for Mr. Wood is provided above in “Proposal 1 – Election of Trustees.”

Daniel Guglielmone, Executive Vice President – Chief Financial Officer and Treasurer of the Trust (since August 2016) with responsibility for overseeing the Trust’s capital markets, financial reporting, investor relations, corporate communications and East Coast acquisitions; Senior Vice President-Acquisitions & Capital Markets of Vornado Realty Trust (2003 – 2016); Director of the real estate and lodging group of Salomon Smith Barney / Citigroup (1993 – 2003) and the retail division of Douglas Elliman Commercial Real Estate (1989 to 1992).

Dawn M. Becker, Executive Vice President – General Counsel and Secretary (since April 2002) with responsibility for overseeing various of the Trust’s corporate functions including the Trust’s Legal, Human Resources and Information Technology Departments; and prior to that time, various officer positions with the Trust, including Executive Vice President – Managing Director Mixed Use Operations (2015 – 2016), Executive Vice President – Chief Operating Officer (2010 – 2015) and Vice President – Real Estate and Finance Counsel (2000 – 2002).

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PROPOSAL 2 – ADVISORY VOTE ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS

You are being asked to approve on an advisory basis the compensation of our NEOs as described in the Compensation Discussion and Analysis (“CD&A”), the Summary Compensation Table, the supplemental tables and the disclosure narratives that follow. This is an opportunity to express your opinion regarding the decisions made by the Compensation Committee on the compensation of our NEOs for 2017; however, it will not affect any compensation already paid or awarded for 2017 and will not be binding on the Compensation Committee, the Board or the Trust. The Board and our Compensation Committee value the opinions of our shareholders and will review the results of this vote and take those results into consideration in addressing future compensation policies and decisions.

As described in more detail below, our compensation packages include base salaries, annual cash incentive compensation, long-term equity incentives and other market appropriate benefits and perquisites. We believe our compensation programs and policies are appropriate and effective in retaining and motivating our NEOs to achieve superior results for our shareholders and that it aligns those individuals with your interests as our shareholders. A few highlights of our compensation programs are:

The affirmative vote of a majority of votes cast at the Annual Meeting, in person or by proxy, is required to approve this proposal. An “abstention” or “broker non-vote” will have no effect on the outcome of the vote for this proposal.

		The Board recommends that you vote “FOR” this proposal on the compensation of our NEOs for 2017.

The text of the resolution if Proposal 2 is passed is:

RESOLVED, that the shareholders of the Trust hereby approve, on an advisory basis, the compensation of our NEOs as described in the CD&A, the Summary Compensation Table, the supplemental tables and the narrative disclosures accompanying these materials as required by Item 402 of Regulation S-K.

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COMPENSATION DISCUSSION AND ANALYSIS

This Compensation Discussion and Analysis describes the Trust’s compensation programs and compensation decisions for our NEOs for 2017.

2017 Performance Highlights

The Trust’s business plan of delivering long-term sustainable growth through investment in high quality, retail based properties located primarily in major coastal US markets resulted in record levels of performance in 2017 including total revenue, operating income and funds from operations (“FFO”)¹ per share. These record level results were achieved despite the headwinds from significant levels of retailer failures and store closures in 2017.

The sustained long-term growth in these and other financial metrics reflects the Trust’s disciplined approach to investing in and operating its assets and provided the foundation for 2017 to have marked the 50^th consecutive year that the Trust increased its common dividend to shareholders, a milestone achieved by a small percentage of other US public companies and by no other real estate investment trust.

The ability to achieve these results during such uncertain times for any business that is tied to the retail industry was only possible because of the creation and execution of the long-term business plan developed by our Board of Trustees and management team focused on generating increasing streams of cash flow and the creation of long-term value for our shareholders during all kinds of economic cycles. Some of the key components of that business plan include:

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Part of the Trust’s long-term focused business plan includes its ongoing environmental, workplace and social initiatives. Since 2012, the Trust has invested more than $1.2 billion in building construction that has been certified as green by the United States Green Building Council and other similar groups. During that same time period, we’ve also invested nearly $35 million dollars in 22 active production solar photovoltaic systems with an additional $12 million dollars currently being invested in 10 more solar photovoltaic systems expected to be placed into service in 2018. In total, these 32 solar systems are projected to generate nearly 18.5 kWH of electricity on an annualized basis, offsetting nearly 30 million pounds of CO2 which is the equivalent of providing all electricity needs for more than 2,000 households for one year. In 2017, the Trust again participated in the Global Real Estate Sustainability benchmark report and achieved 4 Green Stars with an overall score of 78. In addition to the direct investment in sustainable development, social impact is pursued through innovative partnerships such as Up Top Acres where existing green roof infrastructure at properties is being farmed and producing vegetables used by restaurants in those properties, reflecting the Trust’s commitment to enhancing the communities in which we do business. 2017 marked the 10^th consecutive year that the Trust received the Alliance for Workplace Excellence Seal of Approval for both Overall Workplace Excellence and Health and Wellness as well as the 7^th consecutive year of receiving the Workplace Excellence Seal of Approval for ECO Leadership. The company also expanded its charitable giving in 2017 by creating a program for employees to donate vacation days which the Trust converted to cash that was donated to help the victims of the 2017 hurricanes in addition to its other ongoing programs. We take our social responsibility seriously.

2017 Compensation Highlights

Significant portions of the total pay for our NEOs is variable incentive pay tied to shareholder returns and operational performance. Despite delivering record financial results in 2017, our three-year total return to shareholders on an absolute basis fell below our minimum acceptable level and our three-year total shareholder return relative to the other shopping center REITs in the Bloomberg REIT Shopping Center Index (“BBRESHOP”) was not as strong as it was in previous years. As a result, and even taking into account exceeding targeted performance on our annual operating goals, the total pay earned by our CEO in 2017 was lower than total pay earned by our CEO in 2016 by nearly 19%. This result is a reflection of the effectiveness of the design of our compensation programs to reward executives when we create value for our shareholders and not to reward our executives when we do not create value. Some specific decisions and results impacting 2017 compensation for our NEOs include:

At each of our Annual Shareholder Meetings for the past three years, we have received at least 94% approval for our advisory say-on-pay vote. We believe this strong level of support reflects a high degree of shareholder confidence that our compensation plans are rewarding our executives appropriately and as a result, no changes were made to the basic plan design in 2017.

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2017 Compensation and Compensation Components

We provide our NEOs with three primary components of compensation, each of which serves a unique purpose in compensating and rewarding our NEOs and creates alignment between our NEOs and our shareholders. Those primary compensation elements include base salary, annual cash bonus and long-term equity incentives.

We also provide various health and welfare related benefits to our NEOs that are generally the same as provided to all of our employees. These benefits are competitive with those offered by companies that we compete with for talent and provide another tool that allows us to attract and retain talented executives.

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Annual Compensation

Annual compensation for our NEOs is paid in both cash and restricted stock with a significant portion at risk and contingent on achieving either annual or longer term performance goals. The total potential compensation for our named executive officers is established based on the scope of his/her individual responsibilities and contributions to our performance taking into account competitive market compensation paid for similar positions. Our Compensation Committee determines appropriate levels of total compensation for our NEOs by applying their individual understanding, experiences and judgments in the national marketplace of senior level real estate positions and related industry pay in both public and private companies that may compete for our executives while also considering the relative importance of various positions at the Trust given our business plan and organization compared with the business plans of our major competitors. The Compensation Committee also consults compensation surveys prepared for NAREIT (“NAREIT Surveys”) to confirm its assessment of appropriate market compensation for our NEOs, reviewing the information reported for each position by the 126 real estate investment trusts (“REITs”) that participated in the latest survey as well as by the approximately 28 retail focused REITs that participated in that survey. An individual compensation package is then created for each NEO using a combination of base salary, annual cash bonus and long-term equity incentives to provide the appropriate level of potential total annual compensation and the right balance of fixed versus at-risk compensation. For our CEO, approximately 87% of his total compensation earned for 2017 was at-risk and earned based on the level of attainment of our performance goals. Approximately 69% of the total compensation earned for 2017 by our NEOs other than the CEO was at risk.

2017 CEO Compensation Mix		2017 Other NEO Compensation Mix

Fixed Compensation – Base Salary

Base salary is the only fixed component of the compensation paid to our NEOs. Because base salaries are just one component of total pay, we do not target base salaries to any specific level but do confirm that the base salaries for our NEOs are within market parameters using the NAREIT Survey and market knowledge. All base salary decisions for our NEOs are made at the first Compensation Committee meeting of the year and take effect on January 1 of that year. In 2017, neither Mr. Wood nor Ms. Becker received an increase in base salary. Mr. Guglielmone’s base salary was increased in January 2017 in accordance with the compensation package approved by the Compensation Committee when Mr. Guglielmone was hired in August 2016.

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At Risk Compensation

A significant portion of the compensation of our NEOs is provided under our Annual Bonus Plan and Long-Term Incentive Award Plan both of which are at risk forms of compensation where the amount ultimately earned and paid is dependent on whether the company achieves short-term and longer-term performance objectives set by the Compensation Committee. The performance metrics and target pay for each of these plans is set forth below:

Annual Bonus Plan

The Annual Bonus Plan is an annual cash incentive program with payment under the plan contingent on the Trust’s achieving FFO per share within a range set by the Compensation Committee for that year. The Compensation Committee sets that range to reflect acceptable to exceptional levels of performance in light of our business objectives for the year after a thorough review and discussion of our budget and investor expectations for the year. The Compensation Committee believes that FFO per share is the appropriate measure to use for an annual program because it reflects the impacts of operational decisions, capital allocation decisions and balance sheet management for that year.

Target bonus payouts for our NEOs are set as a percentage of the NEO’s base salary with the target at 150% of base salary for our CEO and at 75% of base salary for our other NEOs. Our NEOs can earn between 75% to 125% of their annual bonus target depending on where actual FFO per share for the year falls within the range set by the Compensation Committee. The bonus targets for our NEOs as a percentage of base salary were not changed in 2017. The Compensation Committee then determines the final payout to each NEO after evaluating his/her individual performance. The 2017 Annual Bonus calculation for each of our NEOs is set forth below.

Annual Bonus Plan

NEO Bonus targets Determined

FFO/share Range Established

Final Payout Calculated

Wood = 150% of base

125% Payout: $5.95 FFO/sh

2017 Plan

Becker = 75% of base

100% Payout: $5.88 FFO/sh

Final Payout to each NEO

Guglielmone = 75% of base

75% Payout: $5.82 FFO/sh

Wood = $1,425,000

Wood = $1,577,618

Final Calculation

Becker = $337,500

110.71% payout: $5.91 FFO/share

Becker = $373,646

Guglielmone = $356,250

Guglielmone = $394,404

In 2017, we reported FFO per share of $5.74 which included a charge of approximately $0.17 per share for early prepayment in December 2017 of higher rate debt due in 2020. The decision to repay that debt prior to its maturity date was made in December 2017 in order to opportunistically take advantage of favorable interest rates before the expected rate increases that occurred in 2018. Had bonus payouts been determined on the basis of reported FFO per share, no payments would have been made under our annual bonus plan for 2017. The Compensation Committee, however, determined that such a result

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would not be appropriate and could potentially discourage management from making sound, long-term financing decisions in the future. Accordingly, the Compensation Committee determined that it would be appropriate and in the best interest of the Trust’s shareholders to exclude that prepayment charge from the calculation of FFO per share for bonus purposes resulting in FFO per share for bonus purposes of $5.91 and a bonus payout of 110.71% of target. The $5.91 of FFO per share used for bonus purposes included the impact of all of the additional interest and other charges associated with the opportunistic capital raise completed in December 2017 other than the prepayment premium mentioned above. Based on their individual contributions to the Trust in 2017, the Compensation Committee awarded each of our NEOs the full annual bonus for which he/she was eligible.

The Annual Bonus plan for our NEOs is the same bonus plan that covers nearly 95% of our employees. The NEOs and approximately 80 other participants in the Annual Bonus plan have the option to receive up to 25% of the final bonus payout in the form of Shares that vest equally over three years with accelerated vesting on death, disability, change in control and termination without cause. In consideration of the extended payment period for this portion of the bonus already earned, the employee receives Shares valued at 120% of the portion of the Annual Bonus he/she elected to receive in Shares. For 2017, Mr. Wood elected to receive 25% of his bonus in Shares and our other NEOs elected to receive all of their annual bonus in cash. The cash portion of the 2017 annual bonuses is reflected in the “Non-Equity Incentive Plan Compensation” column in the Summary Compensation Table in this proxy statement. The portion Annual Bonus paid in Shares will be included in the “Stock Awards” column in the Summary Compensation Table and the Grants of Plan-Based Awards Table in next year’s proxy statement.

Long-Term Incentive Award Program

The largest portion of compensation for our NEOs comes from our equity based Long-Term Incentive Award Program. This program aligns the interests of our NEOs with shareholders by incentivizing our NEOs to identify and accomplish longer-term business objectives that generate value through stock price appreciation and dividend growth over a minimum 6-year time horizon comprised of a 3-year performance period followed by a minimum of a 3-year vesting period for shares and a 5-year vesting period for options.

Awards under this program are made in the form of restricted shares with time based vesting over a three year period; however, each NEO can elect to take up to 50% of his/her award in the form of options which vest over five years. The Compensation Committee believes that allowing NEOs to choose to receive a portion of his/her award in the form of options provides value to the NEO that outweighs any diminution in retention value from the granting of options in lieu of Shares. Each of our NEOs chose to receive the full value of his her 2017 LTIAP award in Shares. Dividends are paid on all Shares issued under the LTIAP.

The amount of LTIAP awards is determined based on how well the Trust performs on three performance metrics:

(a)        Total shareholder return relative to the Bloomberg REIT Shopping Center index (“BBRESHOP”). Performance on this metric accounts for 50% of the total LTIAP award. The relative shareholder return metric reflects how well we have performed for our shareholders as compared to other companies facing the same general market dynamics. The Compensation Committee determined that the BBRESHOP is the best index to use given that it is an industry index made up of primarily companies that own and operate open are shopping centers whose businesses are most closely aligned with ours. Total shareholder return takes into account both stock price appreciation and dividends assuming all dividends are reinvested.

(b)        Absolute total shareholder return. Performance on this metric accounts for 25% of the total LTIAP award and reflects whether we have actually created value and delivered acceptable returns to our shareholders over the 3-year performance period. Total shareholder return takes into account both stock price appreciation and dividends assuming all dividends are reinvested.

(c)        Return on invested capital. Performance on this metric accounts for 25% of the total LTIAP award. Return on invested capital reflects how effectively we have allocated our shareholders’ capital during that time and incentivizes our executives to make sound, long-term investment decisions that will generate strong future returns to our shareholders.

Performance Period Award Made Vesting Period 2015 2016 2017 2018 2019 2020 2021 2022 2023 Shares Options

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The target levels of payout for each of our NEOs in 2017 remain unchanged from prior years. Mr. Wood and Ms. Becker can earn an award equal to 50% of target for performance at the threshold level and an award of 150% of target for performance at the stretch level. Mr. Guglielmone can earn an award equal to 67% of target for threshold level performance and 133% of target for stretch level performance. Payout levels are interpolated for results falling between threshold, target and stretch levels.

The levels of performance and target payout percentages for the LTIAP awards for each of our NEOs and the performance actually achieved on each metric for the three year period from January 1, 2015 through December 31, 2017 are set forth in the chart below:

Based on the results achieved, the LTIAP awards for Mr. Wood (CEO) and Ms. Becker (GC) were paid at 93.75% of target and the award for Mr. Guglielmone (CFO) was paid at 87.50% of his target award. The Compensation Committee has the discretion to increase or decrease the award for each executive by up to 20% to in order to account for personal performance but did not adjust the awards for any of our NEOs for the performance period ending in 2017. The number of Shares actually awarded to each of our NEOs under the LTIAP is determined by dividing the amount of the award by the closing price of our stock on the NYSE on the date the awards are made. There is no amount included for 2017 in the Summary Compensation Table or Grants of Plan-Based Awards Table in this proxy statement for LTIAP awards earned for the 2015-2017 performance period. The LTIAP awards reflected for 2017 in the Summary Compensation Table and the Grants of Plan-Based Awards Table for our named executive officers in this proxy statement relate to awards made in February 2017 for the 3-year performance period ending December 31, 2016.

LTIAP Performance Period 2015-2017 Relative Total Return (50%) Absolute Total Return (25%) Return on Invested Capital (25%) Payout as % of Target Payout as % of Target Payout as % of Target Percentile Return Return 100th 80th 150% 133% Actual 65th 60th 100% 100% 40th 50% 67% Below 40th 0% 0% 12% 150% 133% 10% 100% 100% 8% 50% 67% Actual 2.60% Below 8% 0% 0% 8.00% 150% 133% Actual 8.30% 7.75% 100% 100% 7.50% 50% 67% Below 7.50% 0% 0% CEO/GC CFO CEO/GC CFO CEO/GC CFO

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2017 Total Compensation

The following chart sets out the compensation earned by each of our named executive officers for 2017 based on company and individual performance for the 1 and 3-year periods ending December 31, 2017:

The amounts set forth above for the annual performance bonus and performance based, long-term equity program differ from the amounts shown for 2017 in the Summary Compensation Table because the chart above reflects the amount earned for the year while the Summary Compensation Table reflects these amounts in the year in which they are paid regardless of the time period during which those amounts were earned. We believe the chart above is helpful because it allows the actual compensation earned for 2017 to be understood in the context of the Trust’s financial and other performance for the performance periods ending in 2017.

Other Benefits

We provide other health and welfare benefits to our NEOs on the same basis as we provide those benefits to all employees. In addition to those benefits, we provide to Mr. Wood, his spouse and his dependents continuation of health coverage after Mr. Wood’s termination upon death, disability, retirement, change in control or otherwise (other than a termination with cause or resignation). This coverage will continue as to Mr. Wood and his spouse until their death, or with respect to his spouse until divorce, if earlier, and coverage continues for three of Mr. Wood’s children until that child is no longer a dependent as defined under Section 106 of the Internal Revenue Code and as to one of the children, until death. We are required to provide coverage of at least the same level as provided to Mr. Wood and his family at the time of his termination and such coverage will be secondary to certain other coverages that may be available to Mr. Wood and his family. This agreement has been in place and remained unchanged since 2008.

Other Compensation Considerations

Equity Ownership: Each of our NEOs is required to maintain a level of ownership of equity in the company equal to 3 times the sum of base salary and annual bonus for Mr. Wood and 2.5 times the sum of base salary and annual bonus for each of Mr. Guglielmone and Ms. Becker. Both Mr. Wood and Ms. Becker were in compliance with the equity ownership requirement as of December 31, 2017. Mr. Guglielmone who joined the Trust in August 2016 was not in compliance with the requirements as of December 31, 2017; however, is in compliance as of the date of this proxy statement.

Risk Assessment: As described in the “Risk Management Oversight” section, we have concluded that our compensation programs do not encourage excessive or unnecessary risk taking.

Timing of Equity Grants: Equity awards to our employees under our Annual Bonus Plan and LTIAP described above are made at the first Compensation Committee meeting of the year which generally occurs before we release year-end financial results for the prior fiscal year. We have no policy that times the granting of equity awards relative to the release of material non-public information. Equity awards to new hires are generally made on the first day on which the employee starts work and equity awards to employees who are promoted generally are made on the day on which the promotion has been fully approved. All of our options are awarded at the closing price of our Shares on the NYSE on the

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date the award is made. The Compensation Committee has never re-priced options, granted options with an exercise price that is less than the closing price on the NYSE on the date of the grant or granted options which are priced on a date other than the grant date. Equity awards for our NEOs for the 3-year performance period ending on December 31, 2017 were made at the Compensation Committee’s meeting on February 7, 2018 based on the closing price of our Shares on the NYSE on that date.

Termination and Change-in-Control Arrangements: We have agreements in place with each of our NEOs providing for various payments and benefits to be made to them if there is a change in control or their employment with us is terminated for certain reasons. The circumstances in which payments may be made and the potential amounts of those payments are described in more detail in the “Potential Payments on Termination of Employment and Change-in-Control” section below. We believe that the payments provided for in these agreements are reasonable and appropriate as part of the total compensation packages available for our NEOs.

Deductibility of Executive Compensation in Excess of $1.0 Million: For tax years ending on or prior to December 31, 2017, Section 162(m) of the Internal Revenue Code generally prohibited any publicly held corporation from taking a federal income tax deduction for compensation in excess of $1 million in any taxable year paid to an executive officer who is named in the Summary Compensation Table. An exception was made for qualified performance-based compensation, among other things. Although the Compensation Committee considered the impact of Section 162(m) in structuring compensation programs, the Committee’s primary focus was on creating programs that addressed the needs and objectives of the company regardless of the impact of Section 162(m). As a result, the Compensation Committee made awards and structured programs that were non-deductible under Section 162(m).

The Tax Cuts and Jobs Act of 2017 modified Section 162(m) to, among other things, modify who is subject to the $1 million deduction limit and to eliminate the exception for performance based pay from the $1 million deduction limit starting with tax years ending after December 31, 2017. We do not anticipate these changes to Section 162(m) to have a material impact on us. We do not anticipate anyone other than our three NEOs being subject to the $1 million deduction limit and we anticipate our taxable income to only increase modestly on an annual basis as a result of the loss of the performance based compensation deduction. To maintain our status as a real estate investment trust, we are required to distribute at least 90% of our taxable income to our shareholders in the form of dividends. The modest increase in taxable income resulting from the change in Section 162(m) will be taken into account as our Board determines the amount of dividend to be paid to our shareholders in tax years ending after December 31, 2017.

COMPENSATION COMMITTEE REPORT

The Compensation Committee of the Board has reviewed and discussed the CD&A required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended to the Board that the CD&A be included in this Proxy Statement.

Submitted by:

David W. Faeder, Chairman

Elizabeth I. Holland

Gail P. Steinel

Joseph S. Vassalluzzo

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SUMMARY COMPENSATION TABLE

The following table summarizes the total compensation earned by each of our NEOs for the fiscal years ended December 31, 2017, 2016 and 2015, in accordance with current SEC rules. The Summary Compensation Table below does not include the value of the Shares issued to our NEOs on February 7, 2018 for the performance period ending December 31, 2017. The value of those Shares will appear in next year’s proxy statement in the Grants of Plan-Based Awards Table as well as the “Stock Awards” column of the Summary Compensation Table.

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GRANTS OF PLAN-BASED AWARDS TABLE

The following Share awards were made in 2017, all of which were earned based on the 1-year or 3-year performance period ending December 31, 2016. Awards made in 2018 to the NEOs under our Annual Bonus Plan and long-term incentive plan for the 1-year and 3-year performance periods ending December 31, 2017 will be reported in the Grants of Plan-Based Awards Table in next year’s proxy statement.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE

The following table sets forth information about outstanding equity awards held on December 31, 2017 by our NEOs:

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OPTION EXERCISES AND STOCK VESTED TABLE

The following table includes certain information with respect to options exercised in 2017 by each of our NEOs and Shares that vested during 2017.

NON-QUALIFIED DEFERRED COMPENSATION TABLE

We maintain a non-qualified deferred compensation plan that is open to participation by 34 members of our management team, including our NEOs. Each participant can elect to defer up to 100% of his or her base salary and cash payment under our Annual Bonus Plan with deferral elections made in December of each year for amounts to be earned in the following year. A number of widely available investment options are made available to each plan participant who then decides how to allocate amounts deferred among those investment options. The amount earned by plan participants on their deferrals is calculated by our third party plan administrator as if the amounts deferred had actually been invested in the investment options selected by each participant. We do not make any contributions to the deferred compensation plan for any individual nor do we guaranty any rate of return on amounts deferred. Amounts deferred into the plan, including amounts earned on the deferrals, are generally payable to the participant shortly after he or she retires or is otherwise no longer employed by us; however, there are a few other alternatives where amounts may be paid to a participant sooner. The amounts deferred by Ms. Becker and Mr. Wood into the plan in 2017, the earnings on plan investments in 2017 and aggregate withdrawals and distributions made in 2017 are described below. Mr. Guglielmone does not participate in our deferred compensation plan.

POTENTIAL PAYMENTS ON TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL

We have entered into severance agreements with each of our NEOs that require us to make certain payments and provide certain benefits to them in the event of a termination of employment or change in control of the Trust. Regardless of the reason for an NEO’s termination of employment, he or she will be entitled to receive upon termination all accrued but unused vacation pay and a distribution of any amounts in our non-qualified deferred compensation plan as described in the “2017 Non-Qualified Deferred Compensation” section above. No NEO is entitled to receive a new award under the Annual Bonus Plan or the LTIAP for the year in which the termination occurs. The agreements with each of our NEOs contain

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provisions restricting the executive from engaging in competing behavior and soliciting and/or hiring our employees for a period of time after termination. The payments that will be made to a NEO on termination vary depending on the reason for termination and may be conditioned on the signing of a release in favor of the Trust.

The amount of compensation payable to each of our NEOs under various termination scenarios is reflected below assuming that the separation of service was effective on December 31, 2017: