Federal Realty Investment Trust (NYSE:FRT) Announces Quarterly Earnings Results, Misses Expectations By $0.38 EPS

Federal Realty Investment Trust (NYSE:FRT) announced its quarterly earnings results on Thursday. The real estate investment trust reported $1.48 earnings per share for the quarter, missing the consensus estimate of $1.86 by ($0.38), Zacks reports. Federal Realty Investment Trust had a net margin of 27.65% and a return on equity of 11.12%. The company had revenue of $336.05 million for the quarter, compared to analysts’ expectations of $327.65 million. During the same quarter in the prior year, the business posted $1.73 earnings per share. The firm’s revenue was up 7.8% compared to the same quarter last year. Federal Realty Investment Trust updated its FY 2026 guidance to 7.420-7.520 EPS.

Here are the key takeaways from Federal Realty Investment Trust’s conference call:

• Federal reported strong results and outlook, with Q4 FFO up 6.4%, full-year FFO up 4.3%, and new core FFO guidance of $7.42–$7.52 for 2026 (midpoint ≈ 5.8% core growth), and it introduced a core FFO metric to strip non-recurring items for comparability.
• Leasing momentum is robust: the portfolio is 96.1% leased (94.1% occupied), 2.3M sq ft of comparable deals drove meaningful mark-to-market rent gains and the signed-not-occupied spread contributed roughly $27M of incremental in-place income.
• Active asset recycling and development: the company closed ~1.0M sq ft of acquisitions for $340M (initial cash yield low-7%), completed >$325M of dispositions at low-5% cap rates, and is advancing a residential pipeline (≈780 units, ~$500M pipeline with $280M previously allocated) to capture higher returns and lower capital costs.
• Capital markets headwind from refinancings — management assumes refinancing its 1.25% notes at ~4.25%–4.5%, a ~170–180 bps financing headwind that management estimates reduces 2026 FFO by roughly $0.12 per share versus a no-refi scenario.

Federal Realty Investment Trust Price Performance

Federal Realty Investment Trust stock traded down $0.18 during midday trading on Friday, reaching $104.57. The company had a trading volume of 159,668 shares, compared to its average volume of 791,258. The company has a debt-to-equity ratio of 1.52, a current ratio of 1.60 and a quick ratio of 1.60. Federal Realty Investment Trust has a 12-month low of $80.65 and a 12-month high of $111.50. The company has a market capitalization of $9.02 billion, a P/E ratio of 26.46, a P/E/G ratio of 4.61 and a beta of 1.02. The firm’s fifty day simple moving average is $101.62 and its 200-day simple moving average is $99.04.

Federal Realty Investment Trust Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be paid a $1.13 dividend. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $4.52 dividend on an annualized basis and a yield of 4.3%. Federal Realty Investment Trust’s dividend payout ratio (DPR) is currently 114.72%.

Federal Realty Investment Trust News Summary

Here are the key news stories impacting Federal Realty Investment Trust this week:

• Positive Sentiment: Management issued strong FY‑2026 guidance (EPS 7.420–7.520), well above consensus — a bullish signal that management expects meaningful cash‑flow growth and supports valuation. Federal Realty Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company forecasts 2026 FFO above Wall Street expectations, citing stronger leasing demand and higher rents at grocery‑anchored centers — supports forward cash flow and dividend coverage. Federal Realty Investment forecasts annual FFO above estimates on strong leasing demand
• Positive Sentiment: Declared a quarterly dividend of $1.13/share (annualized yield ~4.3%), ex‑dividend Apr 1 — keeps the REIT’s long dividend streak intact and supports income‑oriented investor interest. Federal Realty Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Quarterly revenue beat estimates ($336.05M vs. $327.65M), showing leasing and rental growth despite macro uncertainty — revenue strength moderates the negative EPS surprise. FRT earnings report and conference call
• Neutral Sentiment: Full Q4 earnings call transcript and analyst previews provide more color on leasing velocity, same‑store performance and interest costs — useful for modeling next‑12‑month cash flows. FRT Q4 2025 Earnings Call Transcript
• Negative Sentiment: GAAP EPS missed badly for the quarter ($1.48 vs. $1.86 est.), a near‑term catalyst for selling pressure as investors digest lower reported profitability. FRT earnings report and conference call
• Negative Sentiment: Quarterly FFO also narrowly missed expectations ($1.84 vs. $1.86), which may raise short‑term concerns among REIT investors who focus on FFO as the primary cash‑flow metric. Federal Realty Investment Trust (FRT) Q4 FFO Miss Estimates

Analysts Set New Price Targets

Several equities analysts have recently weighed in on FRT shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Federal Realty Investment Trust in a report on Monday, December 29th. Wells Fargo & Company initiated coverage on shares of Federal Realty Investment Trust in a research report on Tuesday, October 21st. They set an “overweight” rating and a $113.00 price target on the stock. Stifel Nicolaus set a $111.00 price objective on shares of Federal Realty Investment Trust in a report on Friday. Mizuho set a $105.00 price objective on shares of Federal Realty Investment Trust in a research report on Friday, January 9th. Finally, Scotiabank dropped their target price on Federal Realty Investment Trust from $114.00 to $113.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $110.40.

Institutional Trading of Federal Realty Investment Trust

Institutional investors have recently made changes to their positions in the company. Advisory Services Network LLC acquired a new stake in shares of Federal Realty Investment Trust in the 3rd quarter worth $35,000. Los Angeles Capital Management LLC purchased a new stake in shares of Federal Realty Investment Trust in the fourth quarter valued at about $39,000. Brown Brothers Harriman & Co. increased its position in Federal Realty Investment Trust by 87.4% during the third quarter. Brown Brothers Harriman & Co. now owns 491 shares of the real estate investment trust’s stock worth $50,000 after purchasing an additional 229 shares during the last quarter. Danske Bank A S acquired a new stake in Federal Realty Investment Trust during the third quarter worth about $61,000. Finally, EverSource Wealth Advisors LLC raised its stake in Federal Realty Investment Trust by 18.8% during the second quarter. EverSource Wealth Advisors LLC now owns 690 shares of the real estate investment trust’s stock worth $66,000 after purchasing an additional 109 shares during the period. 93.86% of the stock is owned by institutional investors and hedge funds.

About Federal Realty Investment Trust

Federal Realty Investment Trust (NYSE: FRT) is a real estate investment trust specializing in the ownership, management, and redevelopment of high-quality retail, restaurant, and mixed-use properties. With a strategic focus on open-air shopping centers and lifestyle-oriented urban destinations, the company partners with leading national and regional retailers to curate environments that blend shopping, dining, entertainment, office, and residential uses. Its asset management capabilities extend from initial site selection and development through ongoing property operations and tenant relations.

Federal Realty’s portfolio comprises approximately 100 properties totaling more than 25 million square feet of gross leasable area.