Valued at a market cap of $8 billion, Federal Realty Investment Trust (FRT) is an equity real estate investment trust (REIT) that 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.
Companies valued between $2 billion and $10 billion are generally classified as “mid-cap stocks," and Federal Realty Investment Trust fits this criterion perfectly. The company’s portfolio comprises 103 properties, serving approximately 3,500 tenants across 27 million square feet of commercial space and approximately 3,100 residential units.
Shares of the North Bethesda, Maryland-based company have declined 20.8% from its 52-week high of $118.34. FRT stock has dropped 4.1% over the past three months, a steeper decline than the Real Estate Select Sector SPDR Fund’s (XLRE) marginal decrease.
In the longer term, shares of FRT have dipped 16.3% on a YTD basis, underperforming XLRE’s 1.4% uptick over the same time frame. Moreover, Federal Realty’s stock has fallen 5.6% over the past 52 weeks, compared to XLRE’s 9.1% gain.
The stock has remained below its 200-day moving average since January. However, despite some fluctuations, the stock has been trading mostly above its 50-day moving average since mid-May.
FRT reported solid Q1 2025 results on May 8. The company reported revenue of $309.2 million, up 6.1% year-over-year, and ahead of Wall Street estimates. It maintained a strong lease rate of 95.9%, reflecting a 160 basis point (bps) improvement, indicating strong tenant retention and property performance. Its funds from operations (FFO) rose 3.7% year-over-year to $1.70 per share, also beating Street expectations.
In addition, for fiscal 2025, the company raised its FFO guidance to a range of $7.11 per share to $7.23 per share. However, the stock fell 1.8% in the next trading session.
In comparison, rival NNN REIT, Inc. (NNN) has outperformed FRT stock. Shares of NNN have increased 4.8% on a YTD basis and 2.2% over the past 52 weeks.
While FRT has underperformed, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock. As of writing, the stock is trading below the mean price target of $110.19.
