Federal Realty (FRT)
NYSE:FRT
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Federal Realty
(NYSE:FRT)
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Rating:72Outperform
Price Target:
$116.00
▲(9.22% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by improving financial fundamentals (revenue growth, strong 2025 profitability, and better recent free cash flow) alongside a constructive technical uptrend. Earnings-call guidance supports continued mid-single-digit FFO growth despite refinancing and occupancy headwinds. Valuation is the main constraint, with a relatively high P/E only partly offset by the strong dividend yield.
Positive Factors
Revenue Growth
A multi-year top-line recovery and expansion to $1.279B indicates durable demand for FRT’s retail and mixed-use portfolio. Steady revenue growth underpins predictable rental cash flows, supports reinvestment and dividend coverage, and reflects successful leasing and remerchandising execution.
Negative Factors
Leverage Volatility
While 2025 shows materially improved leverage, the large historical swing indicates balance-sheet volatility tied to transactions and accounting timing. If the lower leverage level isn't sustained, the REIT could face tighter financing constraints and higher interest sensitivity in a rising-rate environment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A multi-year top-line recovery and expansion to $1.279B indicates durable demand for FRT’s retail and mixed-use portfolio. Steady revenue growth underpins predictable rental cash flows, supports reinvestment and dividend coverage, and reflects successful leasing and remerchandising execution.
Read all positive factors
Federal Realty (FRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.22B
Dividend Yield4.38%
Average Volume (3M)791.43K
Price to Earnings (P/E)16.7
Beta (1Y)0.55
Revenue Growth6.05%
EPS Growth14.70%
CountryUS
Employees304
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.48
Shares Outstanding86,276,030
10 Day Avg. Volume753,710
30 Day Avg. Volume791,431
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)2.66
Price to Sales (P/S)6.77
P/FCF Ratio26.14
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue11.00
Enterprise Value/Gross Profit21.13
Enterprise Value/Ebitda14.45
Forecast
1Y Price Target
$114.75Price Target Upside8.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.9
Revenue Forecast (FY)$1.35B
Federal Realty Business Overview & Revenue Model
Company Description
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founde...
How the Company Makes Money
Federal Realty generates revenue primarily through rental income from its diverse portfolio of retail and mixed-use properties. The company leases space to a variety of tenants, including well-known national and local retailers, restaurants, and s...
Federal Realty Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and where there might be vulnerabilities or opportunities.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and where there might be vulnerabilities or opportunities.
Data provided by:
The Fly
The FlyFederal Realty Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: strong operational performance (record leasing, solid comparable POI, high occupancy), accretive acquisitions and disciplined asset recycling, robust liquidity, and defined development pipeline underpin mid-single-digit FFO growth guidance. The main negatives are a near-term financing cost headwind from note refinancings, temporary occupancy disruption from anchor transitions, and a small noncash hit from Saks' bankruptcy. Management guidance and balance-sheet actions indicate these headwinds are manageable and that underlying trends remain constructive for 2026 and 2027.Positive Updates
Strong FFO Growth and 2026 Guidance
Fourth-quarter FFO per share $1.84, up 6.4% year-over-year; 2025 full-year Nareit FFO $7.22 and Core FFO $7.06; 2026 guidance Nareit and Core FFO $7.42–$7.52 (midpoint $7.47) representing ~5.8% Core FFO growth vs. 2025.
Negative Updates
Refinancing Interest-Rate Headwind
Assumed refinancing of 1.25% notes at ~4.25%–4.5% introduces a financing headwind of ~170–180 bps, estimated to reduce midpoint Core FFO growth by roughly $0.12/share.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong FFO Growth and 2026 Guidance
Fourth-quarter FFO per share $1.84, up 6.4% year-over-year; 2025 full-year Nareit FFO $7.22 and Core FFO $7.06; 2026 guidance Nareit and Core FFO $7.42–$7.52 (midpoint $7.47) representing ~5.8% Core FFO growth vs. 2025.
Read all positive updates
Company Guidance
Federal Realty guided both Nareit and Core FFO to $7.42–$7.52 per share for 2026 (midpoint $7.47), with Core FFO growth of ~5.8% versus 2025 (Nareit growth ~3.5%); 2025 Core FFO was $7.06 and Nareit FFO $7.22 (a $0.15 difference from new market tax credit income). Key operational assumptions include comparable POI growth of 3.0%–3.5%, comparable lease rollovers in the low‑to‑mid teens, incremental POI from the development/expansion pipeline of $13M–$15M, and an occupancy trajectory dipping to the mid‑93% range in 1H then returning to the mid/upper‑94% range by year‑end; guidance assumes no one‑time adjustments and only the recently announced dispositions. Financial and capital assumptions: guidance reflects a full year contribution from $750M of 2025 acquisitions at ~7.0% blended cash cap (7.5% GAAP cap), assumes refinancing the 1.25% notes at ~4.25%–4.5% (a ~170–180 bps headwind), a credit reserve of ~60–85 bps of rental income, >$100M free cash flow after dividends and maintenance cap in 2026, Q1 FFO of $1.80–$1.83 (Q2/Q3 mid‑$1.80s, Q4 mid‑$1.90s), year‑end liquidity of ~$1.3B, a $250M delayed‑draw term loan at SOFR+85bps maturing in 2031, pro‑forma adjusted net debt/EBITDA inside 5.6x trending to low‑mid‑5x (4Q at 5.7x), fixed charge coverage ~3.9x with a target to exceed 4x, a ~$500M ongoing redevelopment pipeline and ~780 residential units in the development pipeline.Federal Realty Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.28B | 1.20B | 1.13B | 1.07B | 951.22M |
| Gross Profit | 124.41M | 810.65M | 769.06M | 717.60M | 634.61M |
| EBITDA | 972.60M | 822.41M | 736.79M | 835.06M | 676.75M |
| Net Income | 411.08M | 295.21M | 236.99M | 385.49M | 261.50M |
Balance Sheet | |||||
| Total Assets | 9.13B | 8.52B | 8.44B | 8.23B | 7.62B |
| Cash, Cash Equivalents and Short-Term Investments | 107.42M | 123.41M | 250.82M | 85.56M | 162.13M |
| Total Debt | 5.03B | 4.56B | 4.69B | 4.47B | 4.19B |
| Total Liabilities | 5.63B | 5.10B | 5.21B | 5.02B | 4.75B |
| Stockholders Equity | 3.25B | 3.17B | 2.96B | 2.95B | 2.58B |
Cash Flow | |||||
| Free Cash Flow | 331.04M | 327.80M | 244.71M | 100.07M | 30.84M |
| Operating Cash Flow | 622.38M | 574.56M | 555.83M | 516.77M | 471.35M |
| Investing Cash Flow | -743.07M | -446.83M | -358.32M | -786.00M | -660.12M |
| Financing Cash Flow | 102.95M | -252.30M | -33.85M | 190.41M | -452.97M |
Federal Realty Technical Analysis
Positive
106.21
Price Trends
105.17
Positive
101.80
Positive
98.34
Positive
Market Momentum
-0.50
Positive
53.62
Neutral
48.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRT, the sentiment is Positive. The current price of 106.21 is above the 20-day moving average (MA) of 105.61, above the 50-day MA of 105.17, and above the 200-day MA of 98.34, indicating a bullish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRT.
Federal Realty Risk Analysis
Federal Realty disclosed 14 risk factors in its most recent earnings report. Federal Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Federal Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.98B | 19.50 | 8.88% | 6.04% | 4.53% | -3.46% | |
79 Outperform | $9.05B | 39.03 | 3.49% | 4.28% | 14.67% | -5.17% | |
75 Outperform | $13.84B | 24.78 | 9.30% | 4.15% | 5.38% | 3.13% | |
73 Outperform | $8.83B | 20.85 | 13.01% | 4.41% | 6.07% | -0.28% | |
72 Outperform | $9.22B | 16.70 | 12.74% | 4.38% | 6.05% | 14.70% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $5.08B | 17.20 | 9.31% | 4.55% | 3.67% | ― |
* Real Estate Sector Average
FRT
Federal Realty
106.21
10.46
10.92%
ADC
Agree Realty
75.38
2.05
2.79%
NNN
NNN REIT
42.03
2.00
4.99%
REG
Regency Centers
75.66
3.89
5.41%
KRG
Kite Realty Group
24.55
2.94
13.60%
BRX
Brixmor Property
28.80
2.97
11.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.