Valued at a market cap of $8 billion, Federal Realty Investment Trust (FRT) owns, operates and redevelops high-quality retail and mixed-use properties located primarily in densely populated, affluent communities across major U.S. markets, including the Northeast, Mid-Atlantic, California, and South Florida. The North Bethesda, Maryland-based company is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Thursday, May 8.
Prior to this event, analysts project this retail REIT to report an FFO of $1.69 per share, up 3.1% from $1.64 per share in the year-ago quarter. The company has met or exceeded Wall Street's FFO estimates in two of the last four quarters, while missing on two other occasions. Its FFO of $1.73 per share in the previous quarter met the consensus estimates.
For the full year, analysts expect FRT to report FFO of $7.16, up 5.8% from $6.77 in fiscal 2024. Its FFO is expected to further grow 3.4% year over year to $7.40 in fiscal 2026.
FRT has declined 3.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 5.4% gain, and the Real Estate Select Sector SPDR Fund’s (XLRE) 13.2% rise over the same time frame.
On Feb. 13, FRT reported its Q4 results. On the brighter side, the company recorded its highest-ever quarterly comparable leasing volume, driven by favorable supply-demand dynamics and strong demographics. Moreover, its revenue grew 6.7% from the year-ago quarter to $311.4 million, while its FFO improved 5.5% annually to $1.73 per share and came in line with analyst expectations. Despite these positives, the stock plunged 6.1% the following day, as although its top-line improved year-over-year, it came in slightly below expectations, dampening investor confidence. Looking ahead to fiscal 2025, FRT expects FFO per share to range between $7.10 and $7.22, and projects EPS between $3 to $3.12, below consensus estimates of $3.13, further leading to the stock’s decline.
Wall Street analysts are moderately optimistic about FRT’s stock, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, nine recommend "Strong Buy," one advises a “Moderate Buy,” and six suggest “Hold.” The mean price target for FRT is $113.88, which indicates a 21.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
