Federal Realty (FRT) AI Stock Analysis

• Market Cap: $8.61B
• Dividend Yield: 4.44%
• Average Volume (3M): 675.08K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.66
• Revenue Growth: 6.00%
• EPS Growth: 15.77%
• Country: US
• Employees: 304
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 1.78
• Shares Outstanding: 86,266,120
• 10 Day Avg. Volume: 618,721
• 30 Day Avg. Volume: 675,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 10.55
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: 14.76
• 1Y Price Target: $109.54
• Price Target Upside: 10.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $106.00 ▲(6.97% Upside)

Federal Realty's strong earnings call and financial performance are the most significant factors, reflecting robust leasing activity and strategic acquisitions. Technical indicators suggest caution, while valuation is moderate with a solid dividend yield.

Positive Factors

Strong Financial Performance

Exceeding FFO expectations indicates strong operational efficiency and profitability, supporting long-term financial health and investor confidence.

Near-Record Leasing Activity

High leasing activity with significant rent spreads enhances revenue stability and growth, reflecting strong demand for FRT's properties.

Dividend Increase

Consistent dividend increases demonstrate strong cash flow management and commitment to returning value to shareholders, enhancing long-term investment appeal.

Negative Factors

Limited Growth in Development Opportunities

Reduced development opportunities may limit future growth potential, necessitating a strategic pivot to acquisitions, which could impact long-term expansion.

Occupancy Challenges

Lower occupancy levels can reduce rental income and pressure margins, potentially affecting financial performance and strategic flexibility.

Challenges in Washington, D.C. Market

Market-specific challenges in key areas like Washington, D.C. could hinder revenue growth and tenant retention, impacting overall portfolio performance.

Federal Realty Business Overview & Revenue Model

Company Description

Federal Realty Investment Trust (FRT) is a publicly traded real estate investment trust (REIT) that specializes in the ownership, operation, and redevelopment of high-quality retail and mixed-use properties. Headquartered in Rockville, Maryland, FRT primarily focuses on urban and suburban markets in the United States, where it manages a diversified portfolio that includes shopping centers, retail spaces, and residential units. The company is known for its commitment to sustainability and community engagement, aiming to create vibrant, accessible spaces for consumers and businesses alike.

How the Company Makes Money

Federal Realty generates revenue primarily through rental income from its properties, which includes both retail and residential tenants. The company leases space to a variety of tenants, including national and regional brands, restaurants, and service providers, ensuring a diversified income stream. Additionally, FRT benefits from long-term leases that provide stable cash flow, with many leases containing rent escalations that increase over time. The company also engages in property redevelopment and improvement projects, which can enhance asset value and increase rental income. Strategic partnerships with local communities and businesses further support its revenue generation by fostering tenant retention and attracting new customers to its properties.

Federal Realty Financial Statement Overview

Summary

Federal Realty exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though the high leverage typical of the REIT industry poses some risk. Cash flow generation is robust, supporting the company's operational and investment activities effectively.

Income Statement

Federal Realty shows a strong revenue growth trend with a 13.4% increase from 2023 to 2024 and a continued rise in TTM. Gross profit margins remain robust at approximately 60%, indicating efficient cost management. However, net profit margins are moderate at around 24.8% TTM, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The company's balance sheet presents a stable equity ratio of about 37%, indicating a solid equity base. The debt-to-equity ratio is relatively high at approximately 1.44, which is typical for the REIT industry but suggests potential leverage risks. Return on equity is strong at 9.5% TTM, showcasing effective use of equity to generate profits.

Cash Flow

Federal Realty demonstrates strong cash flow generation with a positive free cash flow growth rate of 13.2% TTM. The operating cash flow to net income ratio is robust at 2.03, indicating efficient cash generation from operations. The free cash flow to net income ratio is also healthy at 1.23, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.20B	1.13B	1.07B	951.22M	835.49M
Gross Profit	831.19M	810.65M	769.06M	717.60M	634.61M	545.33M
EBITDA	883.07M	822.41M	736.79M	835.06M	676.75M	527.20M
Net Income	346.17M	295.21M	236.99M	385.49M	261.50M	131.71M
Balance Sheet
Total Assets	8.62B	8.52B	8.44B	8.23B	7.62B	7.61B
Cash, Cash Equivalents and Short-Term Investments	177.00M	123.41M	250.82M	85.56M	162.13M	798.33M
Total Debt	4.57B	4.56B	4.69B	4.47B	4.19B	4.44B
Total Liabilities	5.12B	5.10B	5.21B	5.02B	4.75B	4.92B
Stockholders Equity	3.25B	3.17B	2.96B	2.95B	2.58B	2.46B
Cash Flow
Free Cash Flow	346.15M	327.80M	244.71M	100.07M	30.84M	-132.01M
Operating Cash Flow	593.42M	574.56M	555.83M	516.77M	471.35M	369.93M
Investing Cash Flow	-310.52M	-446.83M	-358.32M	-786.00M	-660.12M	-368.38M
Financing Cash Flow	-193.09M	-252.30M	-33.85M	190.41M	-452.97M	661.74M

Federal Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 99.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRT, the sentiment is Neutral. The current price of 99.09 is below the 20-day moving average (MA) of 100.36, above the 50-day MA of 96.91, and above the 200-day MA of 98.10, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FRT.

Federal Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REG	77 Outperform	25.99B	33.29	5.95%	3.97%	5.66%	2.98%
KIM	76 Outperform	14.65B	26.10	3.86%	4.66%	10.46%	56.11%
ADC	75 Outperform	7.82B	42.15	3.25%	4.32%	13.27%	-5.92%
BRX	75 Outperform	8.35B	24.97	11.37%	4.17%	5.98%	12.11%
FRT	74 Outperform	$8.61B	25.38	11.04%	4.44%	6.00%	15.77%
NNN	74 Outperform	7.93B	19.97	9.10%	5.57%	4.82%	-5.18%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Federal Realty Corporate Events

Federal Realty Amends CFO Severance Agreement

On May 7, 2025, Federal Realty Investment Trust amended the severance agreement of its CFO, Daniel Guglielmone, to include a provision for a one-year salary and bonus if terminated without cause. Additionally, the company’s annual shareholder meeting on the same date saw the election of trustees and approval of executive compensation, alongside the ratification of Grant Thornton LLP as the independent auditor for 2025.