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Federal Realty
(NYSE:FRT)
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Rating:71Outperform
Price Target:
$129.00
â–²(2.32% Upside)
Action:Reiterated
Date:08/12/26
FRT scores well overall on improving fundamentals and a notably upbeat earnings update with raised FFO guidance, strong leasing/occupancy, and solid cash generation. The main constraints are balance-sheet leverage and currently weak technical momentum (oversold signals with price below key short-term averages). Valuation is supported by the dividend but tempered by a mid-20s P/E.
Positive Factors
Record Leasing & Rent Growth
Sustained, high-volume leasing activity with materially higher first‑year rents and a 17% trailing rollover indicate durable demand and pricing power in core markets. High occupancy (~96%) and outsized small‑shop gains support recurring NOI expansion and make revenue growth less dependent on cyclical leasing timing.
Negative Factors
Elevated Leverage
Debt levels typical for REITs nevertheless constrain strategic flexibility and increase sensitivity to higher interest rates. Elevated leverage limits the company's ability to pursue big acquisitions without issuing equity, raises refinancing risk during tighter markets, and can amplify downside in a property downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Leasing & Rent Growth
Sustained, high-volume leasing activity with materially higher first‑year rents and a 17% trailing rollover indicate durable demand and pricing power in core markets. High occupancy (~96%) and outsized small‑shop gains support recurring NOI expansion and make revenue growth less dependent on cyclical leasing timing.
Read all positive factors
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 (FRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.20B
Dividend Yield3.86%
Average Volume (3M)811.77K
Price to Earnings (P/E)23.4
Beta (1Y)0.50
Revenue Growth8.04%
EPS Growth25.59%
CountryUS
Employees317
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)5.01
Shares Outstanding86,889,130
10 Day Avg. Volume819,050
30 Day Avg. Volume811,766
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$131.67Price Target Upside4.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.06
Revenue Forecast (FY)$1.36B
Federal Realty Business Overview & Revenue Model
Company Description
Federal Realty Investment Trust (FRT) stands out as a premier entity specializing in the acquisition, management, and redevelopment of high-quality retail properties. These assets are strategically situated primarily in prominent coastal metropoli...
How the Company Makes Money
Federal Realty makes money primarily by leasing space in its real estate portfolio and collecting recurring rental income from tenants. Its key revenue stream is property-level rental revenue, which generally includes base rent paid under lease co...
Federal Realty Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational quarter with record leasing, meaningful rent growth, rising occupancy, robust incremental income (parking and ancillary), disciplined capital recycling and raised full-year guidance. Challenges cited were manageable and largely timing-related: one-time write-offs, modest G&A increases for strategic investments, near-term occupancy churn into 3Q and competitive acquisition markets compressing cap rates. Liquidity, improved leverage metrics, and visibility into signed leases and redevelopment pipelines underpin confidence in growth.Positive Updates
FFO and Earnings Beat
FFO per share of $1.88 for 2Q26, up 7% year-over-year and $0.03 above the midpoint of guidance, driven by higher rental income, recoveries, parking and percentage rent, term fees and capital recycling.
Negative Updates
One-Time Charges and Minor Operational Offsets
Quarter included a ~$0.015/share one-time investment write-off and ~$0.01 from straight-line write-offs which partially offset operational outperformance; these items reduced the net beat.
Read all updates
Q2-2026 Updates
Positive
Negative
FFO and Earnings Beat
FFO per share of $1.88 for 2Q26, up 7% year-over-year and $0.03 above the midpoint of guidance, driven by higher rental income, recoveries, parking and percentage rent, term fees and capital recycling.
Read all positive updates
Company Guidance
Federal raised 2026 NAREIT and core FFO guidance to $7.48–$7.56 per share (midpoint $7.52, ~6.5% core FFO growth vs. 2025; roughly 6–7% across the range) and updated drivers and assumptions: GAAP POI comparable growth of ~3.25%–3.5% (cash/adjusted comparable ~4.0%–4.5%, ~+75 bps), a year‑end occupied rate in the mid‑ to upper‑94% range, term fees of $10–$11M (up ≈$2M), incremental development POI of $14.5–$15.5M (up $0.5M), a credit reserve of 60–85 bps of rental income, and quarterly FFOs of $1.82–$1.86 for Q3 and $1.91–$1.95 for Q4; the raise reflects ~$0.03 of operational outperformance (parking/percentage rent/incremental income), ~$0.02 from term fees, offset by ~$0.02 higher G&A and $0.01–$0.02 for a more conservative interest‑rate outlook, and incorporates $66M of asset sales this quarter and $61M of ATM equity issued.Federal Realty Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.34B | 1.28B | 1.20B | 1.13B | 1.07B | 951.22M |
| Gross Profit | 721.93M | 124.41M | 810.65M | 769.06M | 717.60M | 634.61M |
| EBITDA | 1.03B | 972.60M | 822.41M | 736.79M | 835.06M | 676.75M |
| Net Income | 436.19M | 411.08M | 295.21M | 236.99M | 385.49M | 261.50M |
Balance Sheet | ||||||
| Total Assets | 9.06B | 9.13B | 8.52B | 8.44B | 8.23B | 7.62B |
| Cash, Cash Equivalents and Short-Term Investments | -107.25M | 107.42M | 123.41M | 250.82M | 85.56M | 162.13M |
| Total Debt | 4.85B | 5.03B | 4.56B | 4.69B | 4.47B | 4.19B |
| Total Liabilities | 5.44B | 5.63B | 5.10B | 5.21B | 5.02B | 4.75B |
| Stockholders Equity | 3.36B | 3.25B | 3.17B | 2.96B | 2.95B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 561.99M | 331.04M | 327.80M | 244.71M | 100.07M | 30.84M |
| Operating Cash Flow | 816.88M | 622.38M | 574.56M | 555.83M | 516.77M | 471.35M |
| Investing Cash Flow | -614.63M | -743.07M | -446.83M | -358.32M | -786.00M | -660.12M |
| Financing Cash Flow | -284.90M | 102.95M | -252.30M | -33.85M | 190.41M | -452.97M |
Federal Realty Technical Analysis
Neutral
126.08
Price Trends
122.25
Negative
116.37
Positive
107.78
Positive
Market Momentum
-1.31
Positive
33.03
Neutral
10.16
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 126.08 is above the 20-day moving average (MA) of 123.09, above the 50-day MA of 122.25, and above the 200-day MA of 107.78, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 10.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.09B | 20.94 | 14.86% | 3.73% | 5.13% | 28.20% | |
74 Outperform | $13.88B | 21.76 | 9.59% | 3.62% | 8.36% | 38.21% | |
73 Outperform | $8.71B | 22.46 | 8.70% | 4.86% | 6.54% | -3.45% | |
72 Outperform | $9.13B | 39.98 | 3.61% | 3.90% | 18.06% | 10.08% | |
71 Outperform | $10.20B | 23.40 | 13.28% | 3.59% | 8.04% | 25.59% | |
68 Neutral | $5.24B | 16.24 | 11.27% | 4.38% | -5.84% | 395.39% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
FRT
Federal Realty
117.21
26.55
29.29%
ADC
Agree Realty
74.36
5.08
7.34%
NNN
NNN REIT
45.81
6.47
16.45%
REG
Regency Centers
75.74
6.55
9.47%
KRG
Kite Realty Group
26.31
5.70
27.66%
BRX
Brixmor Property
29.73
3.98
15.43%
Federal Realty Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Federal Realty Issues Exchangeable Senior Notes and Capped Calls
Positive
Aug 11, 2026
On August 11, 2026, Federal Realty OP LP issued $460 million of 3.500% Exchangeable Senior Notes due 2031, sold via a Rule 144A private placement to qualified institutional buyers, with the notes ranking as senior unsecured obligations and exchang...
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.