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Federal Realty
(NYSE:FRT)
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Rating:78Outperform
Price Target:
$130.00
â–²(15.52% Upside)
Action:Reiterated
Date:05/07/26
The score is driven primarily by improving operating performance and cash-flow strength, reinforced by a constructive earnings-call outlook (Q1 beat and raised 2026 FFO guidance). Technicals are supportive with clear uptrend signals, while valuation is reasonable with an attractive yield. The main offset is elevated leverage, which increases sensitivity to refinancing and rate conditions.
Positive Factors
Cash generation & FCF
Consistent operating cash flow growth and free cash flow roughly matching net income provide durable internal funding for dividends, maintenance capex, and redevelopment. This reduces reliance on external financing, supports capital recycling, and underpins payout sustainability over the medium term.
Negative Factors
Elevated leverage
Leverage materially above conservative levels limits financial flexibility and increases vulnerability to adverse financing conditions. High debt balances constrain the pace of acquisitions/developments and raise refinancing risk if market rates or credit spreads widen, affecting long-term growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF
Consistent operating cash flow growth and free cash flow roughly matching net income provide durable internal funding for dividends, maintenance capex, and redevelopment. This reduces reliance on external financing, supports capital recycling, and underpins payout sustainability over the medium term.
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
$10.87B
Dividend Yield4.38%
Average Volume (3M)1.00M
Price to Earnings (P/E)21.6
Beta (1Y)0.54
Revenue Growth7.43%
EPS Growth65.72%
CountryUS
Employees304
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)5.80
Shares Outstanding86,389,200
10 Day Avg. Volume1,221,031
30 Day Avg. Volume1,004,932
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 Cap1.40
Enterprise Value/Revenue11.61
Enterprise Value/Gross Profit21.66
Enterprise Value/Ebitda14.00
Forecast
1Y Price Target
$126.17Price Target Upside12.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.74
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 properties and collecting contractual rent from tenants. Its core revenue streams typically include: (1) Base minimum rent from retail, residential, and office tenants under lease agreem...
Federal Realty Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call conveyed broad operational strength: record/near-record leasing, robust rent growth (GAAP +4.7%, cash +5.1%), strong occupancy and office performance, accretive capital recycling and upgraded guidance. Headline FFO beat and guidance raise reflect momentum. Near-term headwinds include weather-related costs, some timing-driven one-offs, and a meaningful refinancing headwind (~175 bps) that tempers reported growth. Management emphasized durable demand in affluent trade areas, a deep pipeline of negotiated leases (~1.7M sq ft), continued asset recycling and balance-sheet improvements. On balance, the positives substantially outweigh the manageable challenges, supporting a constructive outlook for 2026 and into 2027–2028.Positive Updates
Strong FFO Performance and Beat
FFO per share of $1.88 in 1Q26, up 10.6% year-over-year and ~$0.06 (3.6%) above the midpoint of guidance, driven by higher revenues, expense savings, term fees and favorable timing.
Negative Updates
Weather-Driven Expense Pressure
Unusually rough winter increased snow removal and related energy expenses by over $2M in the quarter, elevating cost reimbursements and pressuring NOI in the near term.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong FFO Performance and Beat
FFO per share of $1.88 in 1Q26, up 10.6% year-over-year and ~$0.06 (3.6%) above the midpoint of guidance, driven by higher revenues, expense savings, term fees and favorable timing.
Read all positive updates
Company Guidance
Federal Realty raised 2026 NAREIT and core FFO guidance to $7.46–$7.55 per share (a midpoint increase of $0.03–$0.04, implying 6.3% core FFO growth vs. 2025) after a strong Q1 (FFO/sh $1.88, ≈11% YoY and ~$0.06 or 3.6% above prior midpoint). Key guidance metrics: comparable POI growth now 3.125%–3.625% (was 3.0%–3.5%), cash‑basis minimum rent +3.6% in Q1, occupancy expected mid‑ to upper‑93% in 2026 rising to mid‑ to upper‑94% by year‑end, quarterly FFO cadence Q2 $1.83–$1.86, Q3 $1.84–$1.87 and Q4 in the low‑ to mid‑$1.90s; incremental redevelopment POI raised to $14–$15M; term fees now $8–$9M; credit reserve held at 60–85 bps of rental income; refinancing reset assumed ~4.5% effective interest (≈175 bps headwind, without which midpoint FFO growth would exceed 8%); balance sheet actions include a $1.4B revolver (spread cut 5 bps to 72.5 bps over SOFR, initial term to Apr‑2030 with extensions into 2031), $92M of 2026 acquisitions to date, $159M of closed asset sales at blended mid‑4s cap rates (plus $66M in process at mid‑ to upper‑5%), total 2025–YTD2026 sales ≈$540M at a low‑ to mid‑5% blended cash yield, and management expects free cash flow after dividends and maintenance capex to exceed $100M in 2026 (and rise in 2027–28).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 | 1.31B | 1.28B | 1.20B | 1.13B | 1.07B | 951.22M |
| Gross Profit | 703.02M | 124.41M | 810.65M | 769.06M | 717.60M | 634.61M |
| EBITDA | 1.09B | 972.60M | 822.41M | 736.79M | 835.06M | 676.75M |
| Net Income | 506.41M | 411.08M | 295.21M | 236.99M | 385.49M | 261.50M |
Balance Sheet | ||||||
| Total Assets | 9.10B | 9.13B | 8.52B | 8.44B | 8.23B | 7.62B |
| Cash, Cash Equivalents and Short-Term Investments | 115.63M | 107.42M | 123.41M | 250.82M | 85.56M | 162.13M |
| Total Debt | 4.93B | 5.03B | 4.56B | 4.69B | 4.47B | 4.19B |
| Total Liabilities | 5.53B | 5.63B | 5.10B | 5.21B | 5.02B | 4.75B |
| Stockholders Equity | 3.31B | 3.25B | 3.17B | 2.96B | 2.95B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 529.19M | 331.04M | 327.80M | 244.71M | 100.07M | 30.84M |
| Operating Cash Flow | 629.24M | 622.38M | 574.56M | 555.83M | 516.77M | 471.35M |
| Investing Cash Flow | -539.23M | -743.07M | -446.83M | -358.32M | -786.00M | -660.12M |
| Financing Cash Flow | -88.82M | 102.95M | -252.30M | -33.85M | 190.41M | -452.97M |
Federal Realty Technical Analysis
Positive
112.53
Price Trends
117.71
Positive
111.65
Positive
104.46
Positive
Market Momentum
1.90
Positive
64.17
Neutral
74.96
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 112.53 is below the 20-day moving average (MA) of 122.49, below the 50-day MA of 117.71, and above the 200-day MA of 104.46, indicating a bullish trend. The MACD of 1.90 indicates Positive momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 74.96 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.87B | 21.57 | 15.55% | 4.38% | 7.43% | 65.72% | |
75 Outperform | $9.96B | 22.23 | 14.86% | 4.41% | 5.92% | 37.44% | |
73 Outperform | $14.98B | 23.78 | 9.51% | 4.15% | 7.84% | 37.55% | |
72 Outperform | $9.03B | 23.04 | 8.81% | 6.04% | 5.77% | -4.61% | |
68 Neutral | $5.94B | 21.98 | 9.22% | 4.55% | -3.59% | 1197.42% | |
67 Neutral | $9.25B | 41.41 | 3.65% | 4.28% | 17.67% | 3.73% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
FRT
Federal Realty
125.08
34.25
37.72%
ADC
Agree Realty
77.03
6.76
9.62%
NNN
NNN REIT
47.47
6.70
16.44%
REG
Regency Centers
81.81
13.38
19.56%
KRG
Kite Realty Group
29.23
7.77
36.20%
BRX
Brixmor Property
32.45
7.54
30.26%
Federal Realty Corporate Events
Executive/Board ChangesShareholder Meetings
Federal Realty Shareholders Back Board, Pay and Auditor
Positive
May 6, 2026
Federal Realty Investment Trust held its annual meeting of shareholders on May 6, 2026, where investors voted on trustee elections, executive compensation, and the appointment of the external auditor. Shareholders elected all nominated trustees, i...
Financial DisclosuresRegulatory Filings and Compliance
Federal Realty Details New Direct Financial Obligation Disclosure
Neutral
Apr 15, 2026
Federal Realty has provided a procedural notice in a regulatory filing, indicating that information required under certain disclosure items is being satisfied by reference to another section of the same filing. This cross‑referencing approac...
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.