Federal Realty Investment Trust (NYSE:FRT) Posts Earnings Results, Beats Expectations By $1.19 EPS
by Doug Wharley · The Cerbat GemFederal Realty Investment Trust (NYSE:FRT – Get Free Report) released its earnings results on Friday. The real estate investment trust reported $1.88 earnings per share for the quarter, topping analysts’ consensus estimates of $0.69 by $1.19, Briefing.com reports. Federal Realty Investment Trust had a return on equity of 13.10% and a net margin of 32.14%.The company’s quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.70 earnings per share. Federal Realty Investment Trust updated its FY 2026 guidance to 7.460-7.550 EPS.
Here are the key takeaways from Federal Realty Investment Trust’s conference call:
- Federal reported strong results with FFO per share of $1.88 (up ~10.6% YoY), beat guidance, and raised full-year NAREIT/core FFO guidance to $7.46–$7.55 (midpoint ~6.3% core FFO growth).
- Leasing momentum was record-strong (100+ leases, 649k sq ft) with the portfolio ~96.1% leased and 93.8% occupied and an office portfolio near 99% leased, which management expects to drive further POI growth.
- Active capital recycling unlocked cheap capital — $159M of sales at blended mid‑4s caps, acquisitions including Congressional North ($72M at ~7% yield), and ~$540M of sales YTD with a low‑mid 5% blended cash yield to redeploy into higher‑return opportunities.
- Residential densification is a growth lever: nearly 800 new units in pipeline (The Blayr, Lot 12 Santana Row, 301 Washington, Willow Grove) expected to add about $27M of stabilized operating income over the next few years.
- Near-term headwinds include unusually high winter-related snow removal/energy costs (over $2M this quarter) and a refinancing drag (roughly a 175 bp reset) that pressures short‑term earnings despite management expecting improvement over time.
Federal Realty Investment Trust Trading Up 3.9%
NYSE:FRT traded up $4.27 on Friday, reaching $115.17. The company’s stock had a trading volume of 1,832,817 shares, compared to its average volume of 838,694. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.67 and a current ratio of 1.67. The firm has a market cap of $9.95 billion, a PE ratio of 24.66, a PEG ratio of 4.86 and a beta of 0.92. The business’s 50-day moving average price is $107.88 and its two-hundred day moving average price is $102.89. Federal Realty Investment Trust has a 1-year low of $89.99 and a 1-year high of $115.32.
Federal Realty Investment Trust Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a $1.13 dividend. This represents a $4.52 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date of this dividend is Wednesday, July 1st. Federal Realty Investment Trust’s payout ratio is presently 96.79%.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of FRT. Equitable Holdings Inc. raised its holdings in shares of Federal Realty Investment Trust by 3.5% in the 3rd quarter. Equitable Holdings Inc. now owns 3,114 shares of the real estate investment trust’s stock worth $315,000 after purchasing an additional 105 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Federal Realty Investment Trust by 18.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 690 shares of the real estate investment trust’s stock worth $66,000 after purchasing an additional 109 shares during the period. Mackenzie Financial Corp raised its holdings in shares of Federal Realty Investment Trust by 3.9% in the 4th quarter. Mackenzie Financial Corp now owns 3,139 shares of the real estate investment trust’s stock worth $319,000 after purchasing an additional 117 shares during the period. Kestra Advisory Services LLC raised its holdings in shares of Federal Realty Investment Trust by 2.2% in the 4th quarter. Kestra Advisory Services LLC now owns 5,620 shares of the real estate investment trust’s stock worth $567,000 after purchasing an additional 123 shares during the period. Finally, &PARTNERS raised its holdings in shares of Federal Realty Investment Trust by 1.4% in the 4th quarter. &PARTNERS now owns 9,489 shares of the real estate investment trust’s stock worth $957,000 after purchasing an additional 129 shares during the period. 93.86% of the stock is owned by institutional investors and hedge funds.
Trending Headlines about Federal Realty Investment Trust
Here are the key news stories impacting Federal Realty Investment Trust this week:
- Positive Sentiment: Q1 results beat consensus: FRT reported FFO/EPS of $1.88 and revenue growth of ~10%, driven by strong leasing and same-center rent growth—evidence of operational strength that supports cash flow. FRT Q1 FFO Tops Estimates on Record Leasing, POI Growth
- Positive Sentiment: Management raised FY‑2026 guidance to an EPS range of 7.460–7.550, effectively endorsing the quarter’s momentum and providing forward visibility that supports the rally. Federal Realty Investment Trust Reports First Quarter 2026 Results
- Neutral Sentiment: FFO beat was modest versus some estimates (e.g., $1.88 vs. $1.82 on Zacks), so while results were positive, upside was not large relative to expectations. Federal Realty Investment Trust (FRT) Q1 FFO and Revenues Surpass Estimates
- Negative Sentiment: Part of the quarter’s strength was aided by a real-estate sale, a one-time gain that may limit the sustainability of the reported beat if leasing and organic rent growth slow. Federal Realty stock up on beat-and-raise Q1, benefited by real estate sale
- Negative Sentiment: Valuation and leverage are considerations: FRT trades at a mid‑teens to mid‑20s P/E/FFO multiple with a PEG near 4.8 and debt/equity around 1.6, which could limit upside if growth disappoints. Federal Realty Investment Trust Reports First Quarter 2026 Results
Analyst Upgrades and Downgrades
A number of research firms have recently weighed in on FRT. Stifel Nicolaus boosted their target price on Federal Realty Investment Trust from $109.50 to $111.00 and gave the stock a “hold” rating in a research report on Friday, February 13th. Barclays dropped their target price on Federal Realty Investment Trust from $109.00 to $107.00 and set an “equal weight” rating for the company in a research report on Monday, April 13th. Piper Sandler boosted their target price on Federal Realty Investment Trust from $115.00 to $127.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 17th. Truist Financial boosted their target price on Federal Realty Investment Trust from $111.00 to $112.00 and gave the stock a “hold” rating in a research report on Monday, March 23rd. Finally, Scotiabank boosted their target price on Federal Realty Investment Trust from $113.00 to $118.00 and gave the stock a “sector outperform” rating in a research report on Tuesday, March 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $112.43.
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About Federal Realty Investment Trust
Federal Realty Investment Trust (NYSE: FRT) is a real estate investment trust specializing in the ownership, management, and redevelopment of high-quality retail, restaurant, and mixed-use properties. With a strategic focus on open-air shopping centers and lifestyle-oriented urban destinations, the company partners with leading national and regional retailers to curate environments that blend shopping, dining, entertainment, office, and residential uses. Its asset management capabilities extend from initial site selection and development through ongoing property operations and tenant relations.
Federal Realty’s portfolio comprises approximately 100 properties totaling more than 25 million square feet of gross leasable area.