Federal Realty Investment Trust (NYSE:FRT) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Federal Realty Investment Trust (NYSE:FRT) posted its earnings results on Friday. The real estate investment trust reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.85 by $0.02, Zacks reports. Federal Realty Investment Trust had a return on equity of 13.65% and a net margin of 32.67%. The firm had revenue of $339.02 million for the quarter, compared to analyst estimates of $336.57 million. During the same period in the previous year, the company posted $1.77 earnings per share. The company’s revenue for the quarter was up 5.2% on a year-over-year basis.

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 Down 1.1%

FRT stock traded down $1.25 during trading hours on Friday, reaching $110.19. 2,254,151 shares of the stock were exchanged, compared to its average volume of 890,585. The firm’s 50-day moving average is $111.13 and its 200-day moving average is $112.88. Federal Realty Investment Trust has a 12 month low of $90.03 and a 12 month high of $128.21. The company has a market cap of $9.52 billion, a price-to-earnings ratio of 22.26, a PEG ratio of 2.70 and a beta of 0.93. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.70 and a quick ratio of 1.70.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on FRT. Citigroup lifted their price objective on Federal Realty Investment Trust from $120.00 to $130.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Scotiabank decreased their price objective on Federal Realty Investment Trust from $128.00 to $126.00 and set a “sector outperform” rating for the company in a research report on Thursday, September 17th. JPMorgan Chase & Co. increased their target price on Federal Realty Investment Trust from $124.00 to $129.00 and gave the stock an “overweight” rating in a research note on Friday, September 4th. Mizuho dropped their target price on shares of Federal Realty Investment Trust from $130.00 to $117.00 and set an “outperform” rating on the stock in a report on Thursday, September 24th. Finally, Barclays cut their price target on shares of Federal Realty Investment Trust from $123.00 to $118.00 and set an “equal weight” rating on the stock in a research note on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $124.62.

Insider Activity at Federal Realty Investment Trust

In other news, Director Nicole Lamb-Hale sold 1,500 shares of the company’s stock in a transaction dated 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 transaction, the director directly owned 4,613 shares of the company’s stock, valued at $502,309.57. This represents a 24.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.10% of the stock is currently owned by company insiders.

Federal Realty Investment Trust Company Profile

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.