Federal Realty stands out among REITs for its focus on high-quality assets in affluent, supply-constrained markets, maintaining high occupancy and resilient performance through economic cycles. The common shares trade at a ~13x P/FFO multiple, significantly below the 10-year average of close to 18x. The 5% cumulative preferred Class C shares are trading at a deep discount to par, yielding over 6%, with limited downside risk due to Federal Realty's strong credit profile.
Healthy leasing activity amid continued elevated foot traffic across its properties drive Federal Realty's Q1 results.
Federal Realty has underperformed, but solid Q1 financials and valuation improvements make it an attractive buy for income and moderate capital appreciation. FRT's high-quality assets in dense, high-income areas and strong retail leasing metrics support resilient demand and steady cash flow growth. The company's solid balance sheet, 4.6% dividend yield, and potential for accelerated dividend growth enhance its investment appeal.
Federal Realty Investment Trust (NYSE:FRT ) Q1 2025 Earnings Conference Call May 8, 2025 5:00 PM ET Company Participants Jill Sawyer - Senior Vice President, Investor Relations Donald Wood - President and Chief Executive Officer Wendy Seher - Executive Vice President, Eastern Region President and Chief Operating Officer Dan Guglielmone - Executive Vice President, Chief Financial Officer and Treasurer Jan Sweetnam - Executive Vice President and Chief Investment Officer Conference Call Participants Jeff Spector - Bank of America Michael Goldsmith - UBS Michael Griffin - Evercore ISI Craig Mailman - Citi Juan Sanabria - BMO Capital Markets Connor Mitchell - Piper Sandler Ravi Vaidya - Mizuho Greg McGinniss - Scotiabank Ki Bin Kim - Truist Floris Van Dijkum - Compass Point Paulina Rojas - Green Street Mike Mueller - JPMorgan Linda Tsai - Jefferies Operator Good afternoon and welcome to the Federal Realty Investment Trust First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode.
While the top- and bottom-line numbers for Federal Realty Investment Trust (FRT) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Federal Realty Investment Trust (FRT) came out with quarterly funds from operations (FFO) of $1.70 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to FFO of $1.64 per share a year ago.
FRT's Q1 earnings are likely to have gained from its premium properties in high-growth markets, diverse tenant base, and focus on essential and mixed-use assets.
Beyond analysts' top -and-bottom-line estimates for Federal Realty Investment Trust (FRT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
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