Federal Realty Investment Trust (FRT), headquartered in North Bethesda, Maryland, is a self-administered real estate investment trust (REIT). Valued at $8.6 billion by market cap, the company specializes in the ownership, management, development, and redevelopment of prime community and neighborhood shopping centers. The shopping center-focused retail REIT is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Thursday, Feb. 13.
Ahead of the event, analysts expect FRT to report a profit of $1.75 per share on a diluted basis, up 6.7% from $1.64 per share in the year-ago quarter. The company beat or matched the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect FRT to report FFO of $6.79, up 3.7% from $6.55 in fiscal 2023. Its FFO is expected to rise 5.5% year over year to $7.16 in fiscal 2025.
FRT stock has underperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 1.1% during this period. Similarly, it slightly underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 1.6% gains over the same time frame.
FRT's underperformance is driven by rising property-level expenses, lower term fees, and economic uncertainty. Moreover, shifting consumer preferences, e-commerce growth, and job market volatility are impacting retail leasing activity and foot traffic, posing concerns for the company's profitability and occupancy.
On Oct. 30, FRT shares closed up more than 1% after reporting its Q3 results. Its FFO of $1.71 missed Wall Street expectations of $1.72. The company’s revenue was $303.6 million, beating Wall Street forecasts of $301.2 million. FRT expects full-year FFO in the range of $6.70 to $6.88.
Analysts’ consensus opinion on FRT stock is bullish, with a “Strong Buy” rating overall. Out of 16 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and four give a “Hold.” FRT’s average analyst price target is $124.67, indicating a potential upside of 19.9% from the current levels.
