Federal Realty (FRT) AI Stock Analysis

• Market Cap: $8.18B
• Dividend Yield: 4.67%
• Average Volume (3M): 634.35K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.69
• Revenue Growth: 6.07%
• EPS Growth: 24.23%
• Country: US
• Employees: 304
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Retail
• EPS (TTM): 0.72
• Shares Outstanding: 86,260,740
• 10 Day Avg. Volume: 704,454
• 30 Day Avg. Volume: 634,351
• PEG Ratio: 0.37
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 80.63
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 16.95
• Enterprise Value/Ebitda: 3.86
• 1Y Price Target: $109.91
• Price Target Upside: 15.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $106.00 ▲(11.67%Upside)

Federal Realty's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust cash flow and high occupancy rates support its operational success. However, technical indicators suggest a neutral trend, and valuation metrics indicate moderate pricing, slightly tempering the overall score.

Positive Factors

Financial performance

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

Guidance and growth expectations

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

Negative Factors

Analyst preferences

Analyst prefers less expensive retail REITs that may deliver similar growth levels in the near-term compared to FRT.

Market conditions

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 demonstrates solid financial health with consistent revenue and profit growth. The company maintains a balanced approach to leverage and demonstrates effective cash flow management, positioning it well for future opportunities in the retail REIT sector.

Income Statement

Federal Realty shows a consistent upward trajectory with a healthy gross profit margin and net profit margin, reflecting strong operational efficiency. Revenue growth is stable, with a significant increase over the past few years. The EBIT and EBITDA margins are robust, indicating effective cost management.

Balance Sheet

The balance sheet reflects moderate leverage with a steady debt-to-equity ratio. The return on equity is satisfactory, showing effective use of equity to generate income. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, driven by strong operating cash flow. The operating cash flow to net income ratio is favorable, illustrating efficient cash conversion from operations. The free cash flow to net income ratio suggests good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.20B	1.13B	1.07B	951.22M	835.49M
Gross Profit	734.78M	810.65M	769.06M	717.60M	634.61M	545.33M
EBITDA	824.67M	814.95M	736.79M	828.82M	674.70M	544.55M
Net Income	302.24M	295.21M	236.99M	254.74M	132.56M	3.48M
Balance Sheet
Total Assets	8.62B	8.52B	8.44B	8.23B	7.62B	7.61B
Cash, Cash Equivalents and Short-Term Investments	109.22M	123.41M	250.82M	85.56M	162.13M	798.33M
Total Debt	4.60B	4.56B	4.69B	4.47B	4.19B	4.44B
Total Liabilities	5.18B	5.10B	5.21B	5.02B	4.75B	4.92B
Stockholders Equity	3.19B	3.17B	2.96B	2.95B	2.58B	2.46B
Cash Flow
Free Cash Flow	371.09M	327.80M	244.71M	100.07M	30.84M	-132.01M
Operating Cash Flow	613.13M	574.56M	555.83M	516.77M	471.35M	369.93M
Investing Cash Flow	-562.34M	-446.83M	-358.32M	-786.00M	-660.12M	-368.38M
Financing Cash Flow	-32.91M	-252.30M	-33.85M	190.41M	-452.97M	661.74M

Federal Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 94.92 is above the 20-day moving average (MA) of 94.55, above the 50-day MA of 94.30, and below the 200-day MA of 101.99, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.81 is Neutral, 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
KIM	79 Outperform	$14.33B	27.69	5.19%	4.72%	12.55%	45.10%
REG	76 Outperform	$12.99B	33.54	5.83%	3.96%	7.39%	3.41%
NNN	76 Outperform	$8.19B	20.26	9.35%	5.33%	5.40%	-1.33%
BRX	74 Outperform	$7.97B	24.84	10.99%	4.42%	4.58%	12.65%
FRT	73 Outperform	$8.18B	27.05	9.85%	4.67%	6.07%	24.23%
ADC	72 Outperform	$8.01B	41.06	3.54%	4.22%	13.75%	5.67%
Sector *	63 Neutral	$6.96B	18.86	-1.16%	6.91%	4.65%	-25.28%

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.

Federal Realty Announces $300M Share Buyback Program

On April 10, 2025, Federal Realty Investment Trust announced a new common share repurchase program authorized by its Board of Trustees. The program allows the company to buy back up to $300 million of its common shares, with the timing and amount of repurchases depending on factors like market conditions and the company’s financial needs. This move could impact the company’s stock value and market positioning, offering flexibility in capital management.