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Federal Realty Beats Q3 FFO & Revenue Estimates, Raises 2025 View

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Key Takeaways

  • {\"0\":\"Federal Realty\'s Q3 FFO of $1.77 beat estimates and rose from $1.71 a year ago.\",\"1\":\"Comparable POI grew 4.4%, with 123 new leases signed across 727K square feet on a comparable basis.\",\"2\":\"FRT raised its 2025 FFO view to $7.20-$7.26 and acquired two retail centers for $289 million.\"}

Federal Realty Investment Trust’s (FRT - Free Report) third-quarter 2025 funds from operations (FFO) per share of $1.77 surpassed the Zacks Consensus Estimate of $1.76. This compares favorably with the FFO of $1.71 a year ago.

Results reflect a rise in comparable property operating income (POI), healthy leasing activity and growth in comparable portfolio occupancy. Federal Realty has raised its 2025 FFO outlook.

Quarterly revenues of $322.3 million topped the consensus mark of $313.9 million and improved 6.1% from the year-ago quarter’s tally.

Subsequent to quarter-end, FRT announced the acquisition of Annapolis Town Center in Annapolis, MD, totaling 479,000 square feet for $187 million.

Behind FRT’s Q3 Headlines

Federal Realty generated 4.4% comparable POI growth, excluding lease termination fees and prior-period rents collected. Our estimate for the metric was an increase of 3.6%.

In terms of leasing, during the reported quarter, Federal Realty signed 132 leases for 774,890 square feet of retail space. On a comparable space basis, the company signed 123 leases for 727,029 square feet of space at an average rent of $35.71 per square foot. This represents a 28% increase on a cash-basis and 43% increase on a straight-line basis.

On the operational front, the comparable portfolio occupancy rate was up 20 basis points (bps) year over year to 94% as of Sept. 30, 2025. The comparable portfolio was 95.7% leased as of the same date, reflecting a decrease of 10 bps year over year.

Sustained robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.3%, marking an increase of 20 bps year over year. However, Federal Realty’s residential properties were 96.0% leased as of the same date, down 150 bps year over year. The anchor tenants’ leased rate was 96.5%, down 80 bps year over year.

Federal Realty ended the quarter with more than $1.3 billion of total liquidity. It exited the third quarter of 2025 with cash and cash equivalents of $111.3 million, down from $177 million recorded as of June 30, 2025.

Q3 Portfolio Activity of FRT

Federal Realty acquired Town Center Crossing and Town Center Plaza – two dominant open-air retail centers in Leawood, KS – totaling approximately 552,000 square feet, for $289 million.

FRT’s Dividend Payout

Concurrent with the third-quarter earnings release, Federal Realty announced a regular quarterly cash dividend of $1.13 per share, indicating an annual rate of $4.52 per share. The dividend will be paid out on Jan. 15 to its shareholders of record as of Jan. 2, 2026.

FRT’s 2025 Guidance

For 2025, Federal Realty expects its FFO per share in the range of $7.20-$7.26, up from the $7.16-$7.26 range guided earlier. The Zacks Consensus Estimate of $7.21 lies within the guided range.

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.

Performance of Other Retail REITs

Kimco Realty Corp. (KIM - Free Report) reported third-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric grew 2.3% from the year-ago quarter.

Results reflected higher same-property net operating income (NOI), driven by a rise in minimum rents. Higher interest expenses acted as a dampener. KIM raised its quarterly dividend and 2025 FFO per share guidance range.

Regency Centers Corporation (REG - Free Report) reported third-quarter 2025 NAREIT FFO per share of $1.15, in line with the Zacks Consensus Estimate. The figure increased 7.5% from the prior-year quarter.

REG’s results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter. The company increased its 2025 NAREIT FFO per share outlook.

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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