Federal Realty Investment Trust (NYSE:FRT) Posts Quarterly Earnings Results, Misses Expectations By $1.11 EPS

Federal Realty Investment Trust (NYSE:FRT) released its quarterly earnings results on Friday. The real estate investment trust reported $0.74 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.85 by ($1.11), FiscalAI reports. The business had revenue of $339.02 million during the quarter, compared to the consensus estimate of $336.57 million. Federal Realty Investment Trust had a net margin of 32.60% and a return on equity of 13.76%. The business’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.77 earnings per share.

Here are the key takeaways from Federal Realty Investment Trust’s conference call:

• Strong third-quarter performance: FFO per share was $1.87, up nearly 6% year over year, while adjusted comparable cash NOI increased 4%. Federal Realty raised its 2026 core FFO guidance to $7.54–$7.58 per share and expects more than 7% annual FFO growth.
• Leasing momentum remained robust, with a 14% cash rent spread on comparable deals, a 96.5% lease rate, and 93.8% physical occupancy. Approximately $42 million of signed-but-not-open rent is expected to provide a meaningful tailwind through 2027 and 2028.
• The recently acquired Summit property in Birmingham adds 870,000 square feet and 116 tenants to the central region. Management expects more than 5% annual NOI growth over five years, mid- to high-teens mark-to-market potential on expiring leases, and strong retailer demand.
• Management repurchased roughly 870,000 shares for about $95 million at an average price below $109, citing an implied FFO yield above 7%. The company said the buybacks were funded alongside the Summit acquisition while maintaining nearly $1 billion of liquidity after these capital allocation actions.
• Higher interest rates are increasing refinancing and development costs, with management indicating that future refinancing assumptions may be roughly 50 basis points less favorable. About $680 million of debt matures in mid-to-late 2027, and more than $600 million of asset sales are being pursued to support capital recycling, though most are not expected to close until 2027.

Federal Realty Investment Trust Stock Up 0.0%

FRT opened at $111.39 on Wednesday. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.53 and a quick ratio of 1.70. The firm has a market capitalization of $9.58 billion, a P/E ratio of 14.91, a PEG ratio of 2.78 and a beta of 0.94. Federal Realty Investment Trust has a fifty-two week low of $90.03 and a fifty-two week high of $128.21. The company’s 50-day moving average is $110.75 and its 200 day moving average is $113.02.

Federal Realty Investment Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be issued a $1.16 dividend. The ex-dividend date is Monday, January 4th. This represents a $4.64 annualized dividend and a dividend yield of 4.2%. Federal Realty Investment Trust’s dividend payout ratio is currently 92.80%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Piper Sandler lifted their price objective on Federal Realty Investment Trust from $131.00 to $135.00 and gave the company an “overweight” rating in a report on Monday. Citigroup increased their price objective on shares of Federal Realty Investment Trust from $120.00 to $130.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. increased their target price on shares of Federal Realty Investment Trust from $124.00 to $129.00 and gave the stock an “overweight” rating in a research report on Friday, September 4th. UBS Group decreased their price objective on shares of Federal Realty Investment Trust from $127.00 to $115.00 and set a “neutral” rating on the stock in a research note on Friday, October 9th. Finally, Weiss Ratings downgraded Federal Realty Investment Trust from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, September 1st. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Federal Realty Investment Trust currently has a consensus rating of “Moderate Buy” and a consensus target price of $124.88.

Insider Activity

In related news, Director Nicole Lamb-Hale sold 1,500 shares of the stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $108.89, for a total transaction of $163,335.00. Following the completion of the sale, the director directly owned 4,613 shares of the company’s stock, valued at approximately $502,309.57. This trade represents a 24.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.10% of the stock is currently owned by corporate insiders.

About Federal Realty Investment Trust

Federal Realty Investment Trust is a self-administered and self-managed real estate investment trust that owns, operates and redevelops high-quality retail and mixed-use properties. Its portfolio includes shopping centers, street retail, and mixed-use developments that combine retail, residential, office and hospitality uses.

The company focuses on densely populated, affluent communities and prominent locations in major metropolitan markets. Its properties are concentrated in regions including the Northeast, Mid-Atlantic, California and South Florida, and are leased to a broad range of retailers, restaurants, service providers and other commercial tenants.

Founded in 1962, Federal Realty has developed and managed properties designed to serve both local communities and national retailers.