North Bethesda-based Federal Realty Investment Trust (FRT) owns, operates, and redevelops high-quality retail-based properties. With a market cap of $8.8 billion, Federal Realty operates in major coastal markets from Washington, D.C., to Boston, as well as San Francisco and Los Angeles. It is expected to announce its Q2 earnings after the market closes on Thursday, August 1.
Ahead of the event, analysts expect Federal Realty to report an FFO of $1.68 per share, up marginally from $1.67 per share reported in the year-ago quarter. The company has surpassed or matched Wall Street’s FFO per share projections in three of the past four quarters while missing on one other occasion. Although its FFO for the last reported quarter grew 3.1% year over year to $1.64 per share, it missed the consensus estimates marginally.
Over the longer term, analysts expect Federal Realty’s fiscal 2024 FFO to climb 3.8% annually to $6.80 per share from $6.55 per share in fiscal 2023. In fiscal 2025, its FFO per share is expected to grow 4.9% annually to $7.13.
FRT stock has gained 5.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 18.8% gains but outperforming the S&P 500 Real Estate Sector SPDR’s (XLRE) 1.2% returns over the same time frame.
FRT stock fell by 2.8% in the subsequent trading session following the release of its Q1 earnings on May 2. The REIT reported a 6.7% annual revenue growth and topped Wall Street’s projections by 1%. Its FFO, despite surging, missed on the estimates.
However, Federal Realty's balance sheet is rock-solid, and it has a remarkable 56-year streak of rewarding shareholders with consistent dividend hikes. On July 15, the company delighted shareholders with a quarterly dividend of $1.09 per share. With an annualized dividend of $4.36 per share, Federal Realty boasts a 4.01% dividend yield, outpacing the S&P 500 SPDR’s (SPY) 1.21% yield.
The consensus opinion on Federal Realty stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 17 analysts covering the stock, 10 recommend a “Strong Buy,” one advises a “Moderate Buy,” and six suggest a “Hold” rating.
The mean price target for FRT is $112.72, indicating a potential upside of 3.7% from current price levels.
On the date of publication, Sristi Jayaswal 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.
