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Federal Realty Beats on Q2 FFO & Revenue Estimates, Raises 2025 View
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Key Takeaways
{\"0\":\"FRT\'s Q2 FFO rose to $1.91, beating estimates and up from $1.69 a year ago on higher rents and occupancy.\",\"1\":\"Comparable POI grew 4.9%, and leasing gains pushed portfolio occupancy up 70 bps to 93.5%.\",\"2\":\"FRT raised 2025 FFO guidance and increased its dividend for the 58th consecutive year.\"}
Federal Realty Investment Trust’s (FRT - Free Report) second-quarter 2025 funds from operations (FFO) per share of $1.91 surpassed the Zacks Consensus Estimate of $1.73. This compares favorably with the FFO of $1.69 a year ago.
Results reflect healthy leasing activity, higher occupancy levels and rental rates at its properties. Federal Realty has raised its 2025 FFO outlook.
Quarterly revenues of $311.5 million exceeded the consensus mark of $310.7 million and improved 5.2% from the year-ago quarter’s tally. Federal Realty generated 4.9% comparable property operating income (POI) growth, excluding lease termination fees and prior-period rents collected.
Behind FRT’s Headlines
In terms of leasing, during the reported quarter, Federal Realty signed 122 leases for 653,366 square feet of retail space. On a comparable space basis, the company signed 119 leases for 643,810 square feet of space at an average rent of $37.98 per square foot. This denotes cash-basis rollover growth of 10% and 21% on a straight-line basis.
On the operational front, the comparable portfolio occupancy rate was up 70 basis points (bps) year over year to 93.5% as of June 30, 2025. The portfolio was 95.5% leased as of the same date, reflecting an increase of 40 bps year over year. It was ahead of our estimate of 95.4%.
Sustained robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.4%, marking an increase of 90 bps year over year. However, Federal Realty’s residential properties were 96.9% leased as of the same date, down 70 bps year over year. The anchor tenants’ leased rate was 96.4%, down 30 bps year over year.
Federal Realty ended the quarter with more than $1.5 billion of total liquidity. It exited the second quarter of 2025 with cash and cash equivalents of $177 million, up from $109.2 million recorded as of March 31, 2025.
Portfolio Activity of FRT
During the second quarter, FRT began the development of a 258-unit residential project on Lot 12 at Santana Row for an estimated total investment of around $145 million.
In June 2025, the company completed the sale of the Hollywood Boulevard retail property, spanning 108,000 square feet in Los Angeles, CA, for $69 million.
In May 2025, Federal Realty disposed of Levare, a 108-unit residential building within Santana Row, San Jose, CA, for $74 million.
FRT’s Guidance
For 2025, Federal Realty expects its FFO per share in the range of $7.16-$7.26, up from the $7.11-$7.23 range guided earlier. The range includes $0.15 per share of new market tax credit (NMTC) transaction income. This recent guidance represents about 6% growth at the increased midpoint of $7.21. The Zacks Consensus Estimate of $7.15 lies below the guided range.
FRT Announces Dividend Raise
Concurrent with the second-quarter earnings release, Federal Realty announced a regular quarterly cash dividend of $1.13 per share, increasing by around 3%, indicating an annual rate of $4.52 per share. This marks the 58th consecutive year of dividend increase by the company. The dividend will be paid out on Oct. 15 to shareholders of record as of Oct. 1, 2025.
Regency Centers Corporation (REG - Free Report) reported second-quarter 2025 NAREIT FFO per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.
REG's results reflected healthy leasing activity. During the quarter, same-property and base rents improved year over year.
Kimco Realty Corp. (KIM - Free Report) reported second-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric rose 7.3% from the year-ago quarter.
Results reflected higher same-property NOI due to a rise in minimum rents. However, lower occupancy owing to tenant bankruptcies and higher interest expenses acted as dampeners.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Federal Realty Beats on Q2 FFO & Revenue Estimates, Raises 2025 View
Key Takeaways
Federal Realty Investment Trust’s (FRT - Free Report) second-quarter 2025 funds from operations (FFO) per share of $1.91 surpassed the Zacks Consensus Estimate of $1.73. This compares favorably with the FFO of $1.69 a year ago.
Results reflect healthy leasing activity, higher occupancy levels and rental rates at its properties. Federal Realty has raised its 2025 FFO outlook.
Quarterly revenues of $311.5 million exceeded the consensus mark of $310.7 million and improved 5.2% from the year-ago quarter’s tally. Federal Realty generated 4.9% comparable property operating income (POI) growth, excluding lease termination fees and prior-period rents collected.
Behind FRT’s Headlines
In terms of leasing, during the reported quarter, Federal Realty signed 122 leases for 653,366 square feet of retail space. On a comparable space basis, the company signed 119 leases for 643,810 square feet of space at an average rent of $37.98 per square foot. This denotes cash-basis rollover growth of 10% and 21% on a straight-line basis.
On the operational front, the comparable portfolio occupancy rate was up 70 basis points (bps) year over year to 93.5% as of June 30, 2025. The portfolio was 95.5% leased as of the same date, reflecting an increase of 40 bps year over year. It was ahead of our estimate of 95.4%.
Sustained robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.4%, marking an increase of 90 bps year over year. However, Federal Realty’s residential properties were 96.9% leased as of the same date, down 70 bps year over year. The anchor tenants’ leased rate was 96.4%, down 30 bps year over year.
Federal Realty ended the quarter with more than $1.5 billion of total liquidity. It exited the second quarter of 2025 with cash and cash equivalents of $177 million, up from $109.2 million recorded as of March 31, 2025.
Portfolio Activity of FRT
During the second quarter, FRT began the development of a 258-unit residential project on Lot 12 at Santana Row for an estimated total investment of around $145 million.
In June 2025, the company completed the sale of the Hollywood Boulevard retail property, spanning 108,000 square feet in Los Angeles, CA, for $69 million.
In May 2025, Federal Realty disposed of Levare, a 108-unit residential building within Santana Row, San Jose, CA, for $74 million.
FRT’s Guidance
For 2025, Federal Realty expects its FFO per share in the range of $7.16-$7.26, up from the $7.11-$7.23 range guided earlier. The range includes $0.15 per share of new market tax credit (NMTC) transaction income. This recent guidance represents about 6% growth at the increased midpoint of $7.21. The Zacks Consensus Estimate of $7.15 lies below the guided range.
FRT Announces Dividend Raise
Concurrent with the second-quarter earnings release, Federal Realty announced a regular quarterly cash dividend of $1.13 per share, increasing by around 3%, indicating an annual rate of $4.52 per share. This marks the 58th consecutive year of dividend increase by the company. The dividend will be paid out on Oct. 15 to shareholders of record as of Oct. 1, 2025.
FRT’s Zacks Rank
Federal Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Realty Investment Trust Price, Consensus and EPS Surprise
Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote
Performance of Other Retail REITs
Regency Centers Corporation (REG - Free Report) reported second-quarter 2025 NAREIT FFO per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.
REG's results reflected healthy leasing activity. During the quarter, same-property and base rents improved year over year.
Kimco Realty Corp. (KIM - Free Report) reported second-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric rose 7.3% from the year-ago quarter.
Results reflected higher same-property NOI due to a rise in minimum rents. However, lower occupancy owing to tenant bankruptcies and higher interest expenses acted as dampeners.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.