Federal Realty Investment Trust (FRT) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy FRT?
Source: SeekingAlpha
FFO per share $1.88, a 10.6% increase year-over-year. The increase is attributed to stepped-up capital recycling, strong incremental cash flow from near-record leasing, and contributions from previous year's development spend.
Lease termination fees Higher by $2.8 million compared to a year ago. This increase is due to strong landlord-oriented leases.
Snow removal and related energy expenses Higher by over $2 million due to an unusually rough winter season.
Capital recycling proceeds $159 million from the sales of Misora apartments at Santana Row and Courthouse Shopping Center. These sales were at a combined cap rate well inside 5%.
Acquisition of Congressional North Shopping Center $72 million at a 7% stabilized yield. This acquisition is expected to improve overall growth.
Portfolio lease rate 96.1% leased and 93.8% occupied, about 40 basis points higher year-over-year excluding newly acquired centers.
Leasing volume Over 100 leases and 649,000 square feet of comparable deals done in the quarter at 13% cash rollover and 23% on a straight-line basis. This was the highest volume ever leased in any first quarter.
Comparable POI growth 4.7% for the quarter, despite challenging winter conditions. Cash basis comparable growth was 5.1%, and excluding term fees, it was roughly 4%.
Residential development contribution Nearly 800 units and $27 million of new operating income to the portfolio once stabilized in the next few years.
Office portfolio lease rate 99% overall leased, with specific properties like Santana Row, Pike & Rose, CocoWalk, and Bethesda Row at 100% leased.
Foot traffic Up 3% for the quarter and 4% in April, indicating strong consumer engagement.
Executed but not yet occupied deals Expected to contribute an incremental $36 million of rent over the balance of the year and into 2027.
Restaurant sales Full-service restaurants averaged $723 per square foot, and fast casual restaurants averaged $873 per square foot, both more than double the national averages.
FFO per share growth Almost 11% growth year-over-year, driven by higher revenues, expense savings, and timing of certain items.
Cash basis minimum rent increase 3.6% for the quarter, highlighting strong leasing performance.
Asset sales $159 million closed in the first quarter at a blended mid-4s cap rate, with an additional $66 million of sales in process at mid- to upper 5% cap rates.
Net debt to EBITDA 5.5x annualized for the first quarter, expected to improve over the course of the year.
Fixed charge coverage 3.9x, expected to exceed 4x over the balance of 2026.
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Analyst Views on FRT
Wall Street analysts forecast FRT stock price to fall
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 115.680
Low
105.00
Averages
110.55
High
120.00
Current: 115.680
Low
105.00
Averages
110.55
High
120.00
About FRT
Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities in the Northeast and Mid-Atlantic regions of the United States, California, and South Florida. Its portfolio includes retail in many formats, ranging from regional, community and neighborhood shopping centers that are often anchored by grocery stores to mixed-use properties that are centered around a retail component but also include office, residential and/or hotel components. The Company’s 102 properties include approximately 3,500 tenants in 27 million commercial square feet, and approximately 3,100 residential units. Its portfolio includes Assembly Square, Andorra Shopping Center, Assembly Row, and Bala Cynwyd On City Avenue.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- REIT Excellence: Federal Realty (FRT) has achieved the status of 'Dividend King' with 58 years of consecutive dividend increases, offering a 4% yield that significantly exceeds market averages, attributed to its focus on high-quality properties and active portfolio management, ensuring its competitive edge in the real estate sector.
- Tech Giant Adaptability: International Business Machines (IBM) stands out with a 2.9% dividend yield in the tech sector, showcasing its strong market adaptability through continuous innovation in cloud computing, artificial intelligence, and quantum computing, attracting long-term investors.
- Navigating Market Uncertainty: Amid geopolitical conflicts in the Middle East and potential market volatility, investors can mitigate risks by holding reliable dividend stocks like EPD, FRT, and IBM, thereby achieving stable investment returns despite market fluctuations.
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- Federal Realty Trust: With a remarkable 58-year streak of annual dividend increases, Federal Realty Trust stands as the only Dividend King in the REIT sector, owning around 100 properties with higher average incomes and population densities, ensuring its competitive edge in attracting retailers.
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Federal Realty Investment Trust Reports Strong Earnings Growth
- FFO Growth: Federal Realty Investment Trust reported a strong FFO per share of $1.88, reflecting a 10.6% year-over-year increase, indicating significant improvements in operational efficiency and profitability, which bolsters investor confidence.
- Record Leasing Activity: The company achieved over 100 leases covering 649,000 square feet in the quarter, demonstrating robust market demand that is likely to enhance future revenues and market share.
- Successful Capital Recycling: By closing $159 million in asset sales at a cap rate below 5%, Federal Realty successfully executed its capital recycling strategy, which is expected to provide higher returns for future investments.
- Optimistic Financial Outlook: The company raised its core FFO guidance to $7.46 to $7.55 per share, reflecting confidence in sustained operational strength and growth prospects, despite facing rising costs and market uncertainties.
See More
Federal Realty Investment Trust Q1 Earnings Beat Expectations
- Significant Earnings Growth: Federal Realty Investment Trust reported Q1 FFO per share of $1.88, reflecting nearly 11% growth year-over-year, driven by higher occupancy rates and parking revenues, indicating strong market performance.
- Successful Capital Recycling Strategy: The company sold Misora apartments and Courthouse Shopping Center for a total of $159 million and acquired Congressional North Shopping Center for $72 million, enhancing the income-generating capacity of its portfolio.
- Strong Leasing Activity: Over 100 leases were completed in Q1, with a leasing rate of 96.1%, demonstrating a recovery in market demand that is expected to drive future revenue growth.
- Upward Guidance Revision: The CFO raised the full-year core FFO guidance to $7.46 to $7.55 per share, reflecting confidence in future performance and anticipating a 6.3% growth.
See More
Federal REIT Declares Quarterly Dividend of $1.13 per Share
- Quarterly Dividend Announcement: Federal Realty Investment Trust (FRT) declares a quarterly dividend of $1.13 per share, consistent with previous distributions, indicating the company's stability amid market volatility and likely attracting more income-seeking investors.
- Yield Performance: The forward yield of 3.96% reflects the company's ongoing profitability, potentially enhancing investor confidence in its long-term investment value and solidifying its position within the REIT sector.
- Shareholder Record Dates: The dividend will be payable on July 15, with a record date of July 1 and an ex-dividend date also on July 1, ensuring shareholders receive timely returns and enhancing shareholder satisfaction.
- Financial Performance Beats Expectations: Federal Realty's FFO of $1.88 exceeds expectations by $0.07, while revenue of $341.08 million surpasses estimates by $795,000, showcasing the company's strong performance in real estate sales and bolstering market confidence in its future growth prospects.
See More
Federal Realty Investment Trust Surpasses Earnings Expectations
- Earnings Beat: Federal Realty Investment Trust reported a core FFO of $1.88 for Q1, exceeding analyst expectations by $0.07 and up from $1.70 in Q1 2025, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $341.08 million in Q1, a 10.3% year-over-year increase, surpassing expectations by $79,500, reflecting strong performance in the retail market and effective asset management strategies.
- Record Leasing Activity: In Q1, Federal Realty signed 101 leases for 649,078 square feet of comparable retail space, marking a record leasing volume for the quarter, which indicates robust market demand and improved operational efficiency.
- Optimistic Outlook: The company raised its 2026 core FFO per diluted share guidance to a range of $7.46 to $7.55, exceeding the consensus of $7.48, demonstrating confidence in future earnings growth and adaptability to the high-income consumer market.
See More
Reliable Dividend Stocks Amid Market Volatility
- Energy Infrastructure Advantage: Enterprise Products Partners (EPD), one of North America's largest midstream companies, ensures stable cash flows by charging fees for its energy infrastructure assets, maintaining a 5.7% distribution yield and increasing dividends for 27 consecutive years, demonstrating resilience and long-term investment value in a volatile market.
- REIT Excellence: Federal Realty (FRT) has achieved the status of 'Dividend King' with 58 years of consecutive dividend increases, offering a 4% yield that significantly exceeds market averages, attributed to its focus on high-quality properties and active portfolio management, ensuring its competitive edge in the real estate sector.
- Tech Giant Adaptability: International Business Machines (IBM) stands out with a 2.9% dividend yield in the tech sector, showcasing its strong market adaptability through continuous innovation in cloud computing, artificial intelligence, and quantum computing, attracting long-term investors.
- Navigating Market Uncertainty: Amid geopolitical conflicts in the Middle East and potential market volatility, investors can mitigate risks by holding reliable dividend stocks like EPD, FRT, and IBM, thereby achieving stable investment returns despite market fluctuations.
See More
Finding Reliable Dividends Amid Market Volatility
- Market Volatility: The S&P 500 is trading near all-time highs despite elevated oil prices and rising recession fears, indicating persistent market uncertainty, prompting investors to focus on reliable dividend stocks to navigate volatility.
- Enterprise Products Partners: As one of North America's largest midstream companies, Enterprise Products Partners boasts a 5.7% distribution yield and has increased its dividend for 27 consecutive years, demonstrating resilience and stability in the energy sector, making it suitable for long-term yield-seeking investors.
- Federal Realty Trust: With a remarkable 58-year streak of annual dividend increases, Federal Realty Trust stands as the only Dividend King in the REIT sector, owning around 100 properties with higher average incomes and population densities, ensuring its competitive edge in attracting retailers.
- IBM's Technological Transformation: IBM offers a dividend yield of 2.9%, significantly above the tech sector average, and its focus on cloud computing, artificial intelligence, and quantum computing allows it to maintain competitiveness through technology cycles, appealing to long-term dividend investors.
See More
Federal Realty Investment Trust Reports Strong Earnings Growth
- FFO Growth: Federal Realty Investment Trust reported a strong FFO per share of $1.88, reflecting a 10.6% year-over-year increase, indicating significant improvements in operational efficiency and profitability, which bolsters investor confidence.
- Record Leasing Activity: The company achieved over 100 leases covering 649,000 square feet in the quarter, demonstrating robust market demand that is likely to enhance future revenues and market share.
- Successful Capital Recycling: By closing $159 million in asset sales at a cap rate below 5%, Federal Realty successfully executed its capital recycling strategy, which is expected to provide higher returns for future investments.
- Optimistic Financial Outlook: The company raised its core FFO guidance to $7.46 to $7.55 per share, reflecting confidence in sustained operational strength and growth prospects, despite facing rising costs and market uncertainties.
See More
Federal Realty Investment Trust Q1 Earnings Beat Expectations
- Significant Earnings Growth: Federal Realty Investment Trust reported Q1 FFO per share of $1.88, reflecting nearly 11% growth year-over-year, driven by higher occupancy rates and parking revenues, indicating strong market performance.
- Successful Capital Recycling Strategy: The company sold Misora apartments and Courthouse Shopping Center for a total of $159 million and acquired Congressional North Shopping Center for $72 million, enhancing the income-generating capacity of its portfolio.
- Strong Leasing Activity: Over 100 leases were completed in Q1, with a leasing rate of 96.1%, demonstrating a recovery in market demand that is expected to drive future revenue growth.
- Upward Guidance Revision: The CFO raised the full-year core FFO guidance to $7.46 to $7.55 per share, reflecting confidence in future performance and anticipating a 6.3% growth.
See More
Federal REIT Declares Quarterly Dividend of $1.13 per Share
- Quarterly Dividend Announcement: Federal Realty Investment Trust (FRT) declares a quarterly dividend of $1.13 per share, consistent with previous distributions, indicating the company's stability amid market volatility and likely attracting more income-seeking investors.
- Yield Performance: The forward yield of 3.96% reflects the company's ongoing profitability, potentially enhancing investor confidence in its long-term investment value and solidifying its position within the REIT sector.
- Shareholder Record Dates: The dividend will be payable on July 15, with a record date of July 1 and an ex-dividend date also on July 1, ensuring shareholders receive timely returns and enhancing shareholder satisfaction.
- Financial Performance Beats Expectations: Federal Realty's FFO of $1.88 exceeds expectations by $0.07, while revenue of $341.08 million surpasses estimates by $795,000, showcasing the company's strong performance in real estate sales and bolstering market confidence in its future growth prospects.
See More
Federal Realty Investment Trust Surpasses Earnings Expectations
- Earnings Beat: Federal Realty Investment Trust reported a core FFO of $1.88 for Q1, exceeding analyst expectations by $0.07 and up from $1.70 in Q1 2025, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $341.08 million in Q1, a 10.3% year-over-year increase, surpassing expectations by $79,500, reflecting strong performance in the retail market and effective asset management strategies.
- Record Leasing Activity: In Q1, Federal Realty signed 101 leases for 649,078 square feet of comparable retail space, marking a record leasing volume for the quarter, which indicates robust market demand and improved operational efficiency.
- Optimistic Outlook: The company raised its 2026 core FFO per diluted share guidance to a range of $7.46 to $7.55, exceeding the consensus of $7.48, demonstrating confidence in future earnings growth and adaptability to the high-income consumer market.
See More
