Federal Realty (FRT) AI Stock Analysis

• Market Cap: $8.31B
• Dividend Yield: 4.65%
• Average Volume (3M): 626.02K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.65
• Revenue Growth: 6.07%
• EPS Growth: 24.23%
• Country: US
• Employees: 304
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Retail
• EPS (TTM): 0.72
• Shares Outstanding: 86,260,740
• 10 Day Avg. Volume: 637,352
• 30 Day Avg. Volume: 626,025
• PEG Ratio: 15.07
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.66
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 17.03
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $109.83
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: $105.00 ▲(10.86%Upside)

Federal Realty's strong financial performance and robust earnings call results drive the score. The technical analysis shows stable market sentiment, and the valuation suggests some caution due to a high P/E ratio. The positive dividend yield enhances the stock's appeal.

Positive Factors

Financial Performance

The company reported strong financial performance with Funds From Operations per share of $1.70, which is above market expectations.

Growth Expectations

The guidance for the full year has been slightly increased, indicating confidence in future growth.

Negative Factors

Earnings Expectations

FFO/sh earnings in 2025 were below expectations.

Market Uncertainty

Near-term uncertainty in the Washington DC market is affecting FRT due to efforts to reduce federal government size and spending.

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. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 106 properties include approximately 3,100 tenants, in 25 million square feet, and approximately 3,200 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

How the Company Makes Money

Federal Realty Investment Trust generates revenue primarily through the leasing of retail and mixed-use properties to a diverse range of tenants. The company's key revenue streams include rental income from long-term leases, which often feature provisions for annual rent escalations, percentage rent clauses tied to tenant sales, and reimbursement for property operating expenses. FRT also benefits from its focus on redeveloping and expanding existing properties to enhance value and attract high-quality tenants. Additionally, Federal Realty's carefully curated property portfolio in affluent and densely populated markets enables it to command premium rental rates, contributing significantly to its earnings. While the company does not heavily rely on partnerships, its strategic location choices and tenant diversity are critical factors that bolster its financial performance.

Federal Realty Financial Statement Overview

Summary

Federal Realty exhibits strong financial performance with consistent revenue growth and solid profitability margins. While the balance sheet is stable, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.13B	1.07B	951.22M	835.49M
Gross Profit	810.65M	769.06M	717.60M	634.61M	545.33M
EBITDA	814.95M	736.79M	828.82M	674.70M	544.55M
Net Income	295.21M	236.99M	254.74M	132.56M	3.48M
Balance Sheet
Total Assets	8.52B	8.44B	8.23B	7.62B	7.61B
Cash, Cash Equivalents and Short-Term Investments	123.41M	250.82M	85.56M	162.13M	798.33M
Total Debt	4.56B	4.69B	4.47B	4.19B	4.44B
Total Liabilities	5.10B	5.21B	5.02B	4.75B	4.92B
Stockholders Equity	3.17B	2.96B	2.95B	2.58B	2.46B
Cash Flow
Free Cash Flow	327.80M	244.71M	100.07M	30.84M	-132.01M
Operating Cash Flow	574.56M	555.83M	516.77M	471.35M	369.93M
Investing Cash Flow	-446.83M	-358.32M	-786.00M	-660.12M	-368.38M
Financing Cash Flow	-252.30M	-33.85M	190.41M	-452.97M	661.74M

Federal Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 94.71 is above the 20-day moving average (MA) of 94.47, above the 50-day MA of 94.62, and below the 200-day MA of 100.92, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 80.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRT.

Federal Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REG	84 Outperform	$13.05B	33.71	5.83%	3.89%	7.39%	3.41%
KIM	79 Outperform	$14.87B	28.92	5.19%	4.50%	12.55%	45.10%
ADC	77 Outperform	$8.17B	41.86	3.54%	4.12%	13.75%	5.67%
NNN	76 Outperform	$8.12B	20.09	9.35%	5.43%	5.40%	-1.33%
FRT	73 Outperform	$8.31B	27.46	9.85%	4.65%	6.07%	24.23%
BRX	72 Outperform	$7.95B	24.80	10.99%	4.40%	4.58%	12.65%
Sector *	64 Neutral	$6.87B	17.44	-1.93%	6.95%	4.65%	-24.33%

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.