Federal Realty (FRT) AI Stock Analysis

• Market Cap: $8.61B
• Dividend Yield: 4.4%
• Average Volume (3M): 860.40K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.66
• Revenue Growth: 6.00%
• EPS Growth: 15.77%
• Country: US
• Employees: 304
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Retail
• EPS (TTM): 1.78
• Shares Outstanding: 86,266,120
• 10 Day Avg. Volume: 654,975
• 30 Day Avg. Volume: 860,400
• 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: $109.29
• Price Target Upside: 8.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $106.00 ▲(4.96% 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

Acquisitions

FRT did a good job clarifying its strategic shift to new markets via acquisitions to drive earnings growth.

Earnings

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

Negative Factors

Market Conditions

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

Valuation

Development not as lucrative, which drove FRT’s prior premium valuation.

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 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: Positive
• Last Price: 100.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 100.99 is above the 20-day moving average (MA) of 96.57, above the 50-day MA of 95.05, and above the 200-day MA of 98.87, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 83.36 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	81 Outperform	$26.40B	33.73	5.99%	3.86%	5.66%	2.98%
KIM	79 Outperform	$15.07B	26.85	5.63%	4.40%	10.46%	56.11%
NNN	75 Outperform	$7.95B	20.03	9.18%	5.50%	4.82%	-5.18%
BRX	75 Outperform	$8.48B	25.34	11.52%	4.06%	5.98%	12.11%
FRT	74 Outperform	$8.61B	25.14	11.04%	4.40%	6.00%	15.77%
ADC	74 Outperform	$7.99B	43.06	3.44%	4.24%	13.27%	-5.92%
Sector *	63 Neutral	$7.02B	13.29	-0.50%	6.92%	4.08%	-25.24%

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.