Building greener communities with Federal Realty

FPO
Impact bonds |

Impact bond purchase supports LEED development projects.

Federal Realty is a real estate investment trust that focuses on delivering long-term, sustainable growth through investing in communities where retail demand exceeds supply. In April 2023, it issued a $350 million green bond for future green projects. This is the second green bond Federal Realty has issued with a goal of supporting greener communities. To be included in the green bond, projects must have received or expect to receive a LEED (Leadership in Energy and Environmental Design) Gold or Platinum certification (or environmentally equivalent successor standards).

The use of proceeds for Federal Realty’s green bond potentially include:

  • Investments in acquisitions of buildings
  • Building developments or redevelopments
  • Renovations in existing buildings
  • Tenant improvement projects

As Federal Realty focuses on their mission to continue to create sustainable growth, the company has developed five key objectives: advance decarbonization, strengthen resilience, connect communities, empower teams and govern responsibly.

To learn more about Federal Realty’s greenhouse gas emission reduction initiatives, benefits to their community and local economies, and continued enrichment of their corporate culture, at their 2023 Sustainability Report.

The Praxis Impact Bond Fund invests in many bonds that finance impactful projects around the world. These bonds receive competitive financial returns, and have a clear, direct impact on the world. Investments include renewable energy projects, green bonds, low-income housing, education, social bonds and more.

Benjamin Bailey, CFA, Vice President of Investments, Co-portfolio Manager of Praxis Impact Bond Fund | Praxis Mutual Funds
Author Benji Bailey
Vice President of Investments

How we invest

At Praxis, our investments generate a competitive financial return and deliver a clear and direct benefit to people and our planet.

Disclosure

As of June 30, 2024, the Praxis Impact Bond Fund has invested 0.21% of its assets in Federal Realty green bonds. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.

Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.

The Fund’s investment strategy could cause the fund to sell or avoid securities that may subsequently perform well.