Track market-moving stories before they get noisy

Investors in Federal Realty Investment Trust (FRT - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 20, 2026 $80 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Federal Realty Investment Trust shares, but what is the fundamental picture for the company? Currently, Federal Realty Investment Trust is a Zacks Rank #3 (Hold) in the REIT and Equity Trust – Retail industry that ranks in the Bottom 31% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while five analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.87 per share to $1.86 in that period.

Given the way analysts feel about Federal Realty Investment Trust right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Posted by Defense World Staff on Aug 12th, 2026

Bank of America Corp DE increased its stake in shares of Federal Realty Investment Trust (NYSE:FRT – Free Report) by 90.2% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 509,498 shares of the real estate investment trust’s stock after purchasing an additional 241,684 shares during the period. Bank of America Corp DE owned 0.59% of Federal Realty Investment Trust worth $54,114,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in FRT. Janus Henderson Group PLC increased its position in shares of Federal Realty Investment Trust by 2.5% during the first quarter. Janus Henderson Group PLC now owns 413,167 shares of the real estate investment trust’s stock valued at $43,918,000 after buying an additional 10,095 shares during the period. Bull Harbor Capital LLC bought a new stake in Federal Realty Investment Trust during the 1st quarter worth approximately $804,000. Amundi increased its holdings in Federal Realty Investment Trust by 6.4% during the 1st quarter. Amundi now owns 168,901 shares of the real estate investment trust’s stock worth $17,939,000 after acquiring an additional 10,102 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Federal Realty Investment Trust by 18.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,756 shares of the real estate investment trust’s stock worth $293,000 after purchasing an additional 436 shares in the last quarter. Finally, Empire Financial Management Company LLC purchased a new stake in Federal Realty Investment Trust in the 1st quarter worth approximately $1,012,000. Institutional investors own 93.86% of the company’s stock.

Federal Realty Investment Trust Price Performance Shares of Federal Realty Investment Trust stock opened at $116.79 on Wednesday. Federal Realty Investment Trust has a 52-week low of $90.03 and a 52-week high of $128.21. The stock has a market capitalization of $10.09 billion, a price-to-earnings ratio of 23.59, a price-to-earnings-growth ratio of 2.70 and a beta of 0.93. The company has a fifty day moving average of $122.80 and a 200-day moving average of $113.87. The company has a debt-to-equity ratio of 1.46, a quick ratio of 1.70 and a current ratio of 1.70.

Federal Realty Investment Trust (NYSE:FRT – Get Free Report) last issued its earnings results on Friday, July 31st. The real estate investment trust reported $0.97 EPS for the quarter, missing analysts’ consensus estimates of $1.85 by ($0.88). Federal Realty Investment Trust had a return on equity of 13.65% and a net margin of 32.67%.The business had revenue of $335.71 million during the quarter, compared to analysts’ expectations of $331.92 million. During the same quarter in the previous year, the business earned $1.91 EPS. Federal Realty Investment Trust’s revenue for the quarter was up 7.8% compared to the same quarter last year. Federal Realty Investment Trust has set its FY 2026 guidance at 7.480-7.560 EPS. Equities research analysts expect that Federal Realty Investment Trust will post 7.53 EPS for the current year.

Federal Realty Investment Trust Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $1.16 per share. The ex-dividend date is Thursday, October 1st. This represents a $4.64 annualized dividend and a yield of 4.0%. This is a boost from Federal Realty Investment Trust’s previous quarterly dividend of $1.13. Federal Realty Investment Trust’s dividend payout ratio (DPR) is currently 91.31%.

Analyst Upgrades and Downgrades A number of research firms have recently commented on FRT. Wolfe Research began coverage on shares of Federal Realty Investment Trust in a research report on Wednesday, July 8th. They set an “outperform” rating and a $143.00 price target for the company. Truist Financial increased their price objective on Federal Realty Investment Trust from $112.00 to $118.00 and gave the stock a “hold” rating in a research report on Friday, June 5th. Wells Fargo & Company lifted their price objective on Federal Realty Investment Trust from $129.00 to $134.00 and gave the company an “overweight” rating in a research note on Thursday, July 23rd. UBS Group boosted their target price on Federal Realty Investment Trust from $118.00 to $127.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Finally, Piper Sandler upped their target price on Federal Realty Investment Trust from $127.00 to $149.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $128.25.

View Our Latest Stock Report on FRT

Federal Realty Investment Trust Company Profile (Free Report)

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.

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, /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) ("Federal Realty") announced today that its operating partnership, Federal Realty OP LP (the "Partnership"), launched an offering (the "Offering"), subject to market conditions and other factors, of $400 million aggregate principal amount of exchangeable senior notes due 2031 (the "notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The Partnership also intends to grant the initial purchasers of the notes an option to purchase, during a 13-day period beginning on, and including, the first date on which the notes are issued, up to an additional $60.0 million aggregate principal amount of notes.

The notes will be the Partnership's senior unsecured obligations and will accrue interest payable semi-annually in arrears. Subject to certain conditions, the notes will be exchangeable for cash up to the principal amount of the notes exchanged and, in respect of the remainder of the exchange value, if any, in excess thereof, cash or common shares of beneficial interest, par value $.01 per share, of Federal Realty ("common shares"), or a combination thereof, at the election of the Partnership. The interest rate, exchange rate and other terms of the notes will be determined at the time of pricing of the Offering.

The Partnership intends to use the net proceeds from the Offering to pay the cost of the capped call transactions described below, for the repayment of indebtedness and for general corporate purposes. Pending such use, the net proceeds may be invested in short-term, income-producing investments or the Partnership may use the net proceeds to temporarily repay current and/or future amounts outstanding under its revolving credit facility. If the initial purchasers of the notes exercise their option to purchase additional notes, the Partnership expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional capped call transactions with the option counterparties and the remaining net proceeds for the purposes described above.

In connection with the pricing of the notes, Federal Realty and the Partnership expect to enter into privately negotiated capped call transactions relating to the notes with one or more of the initial purchasers of the notes or their respective affiliates and/or other financial institutions (the "option counterparties"). The capped call transactions will cover, subject to customary adjustments, the number of Federal Realty's common shares that will initially underlie the notes.

The capped call transactions are expected generally to reduce the potential dilution to Federal Realty's common shares upon exchange of any notes and/or offset any cash payments the Partnership is required to make in excess of the principal amount of exchanged notes, as the case may be, with such reduction and/or offset subject to a cap.

In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates may enter into various derivative transactions with respect to Federal Realty's common shares and/or purchase Federal Realty's common shares or other securities of Federal Realty in secondary market transactions concurrently with or shortly after the pricing of the notes, including with or from, as the case may be, certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of Federal Realty's common shares or the notes at that time.

In addition, the option counterparties or their respective affiliates may modify or unwind their hedge positions by entering into or unwinding various derivatives with respect to Federal Realty's common shares and/or purchasing or selling Federal Realty's common shares or other securities of Federal Realty or the Partnership in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so following any fundamental change repurchase, redemption or early exchange of the notes and during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes, or, to the extent the Partnership exercises the relevant election under the capped call transactions, following any other repurchase of the notes). This activity could also cause, reduce the extent of or avoid an increase or a decrease in the market price of Federal Realty's common shares or the notes, which could affect a noteholder's ability to exchange the notes, and, to the extent the activity occurs following exchange or during any observation period related to an exchange of notes, it could affect the number of common shares, if any, and value of the consideration that noteholders will receive upon exchange of the notes.

Neither the notes nor the common shares issuable upon exchange of the notes have been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act).

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of, the notes in any jurisdiction in which the offer, solicitation or sale of the notes would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as "propose," "will," "expect," "shall," and similar terms or the negative of such terms, and include, without limitation, statements regarding the expected timing, size, and completion of the proposed Offering, the grant to the initial purchasers of the option to purchase additional notes, the expected use of the net proceeds of the Offering, and other information that is not historical information. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks and uncertainties related to completion of the Offering on the anticipated terms or at all, market conditions, and the satisfaction of customary closing conditions related to the Offering. More information about the risks and uncertainties faced by Federal Realty and the Partnership is contained in the section captioned "Risk Factors" in Federal Realty's and the Partnership's Securities and Exchange Commission ("SEC") filings, including their Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as subsequent SEC filings. The forward-looking statements contained in this release are as of the date of this release, and, except as required by law, neither Federal Realty nor the Partnership undertakes any obligation to update any such statements, whether as a result of new information, future events or otherwise.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 103 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units.

Federal Realty has increased its quarterly dividends per common share for 59 consecutive years on an annualized basis, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

Investor Inquiries:
Jill Sawyer
Senior Vice President, Investor Relations
301.998.8265
[email protected]

Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
[email protected]

SOURCE Federal Realty Investment Trust

Posted by Defense World Staff on Aug 5th, 2026

Amundi lifted its stake in shares of Federal Realty Investment Trust (NYSE:FRT – Free Report) by 6.4% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 168,901 shares of the real estate investment trust’s stock after purchasing an additional 10,102 shares during the quarter. Amundi owned about 0.20% of Federal Realty Investment Trust worth $17,939,000 at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in FRT. M&T Bank Corp acquired a new position in shares of Federal Realty Investment Trust during the fourth quarter valued at about $4,472,000. UBS Group AG raised its holdings in shares of Federal Realty Investment Trust by 23.3% in the 4th quarter. UBS Group AG now owns 382,183 shares of the real estate investment trust’s stock worth $38,524,000 after acquiring an additional 72,293 shares during the last quarter. Farmers & Merchants Investments Inc. lifted its position in Federal Realty Investment Trust by 42,977.6% in the 4th quarter. Farmers & Merchants Investments Inc. now owns 21,108 shares of the real estate investment trust’s stock valued at $2,128,000 after acquiring an additional 21,059 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Federal Realty Investment Trust by 11.1% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 436,018 shares of the real estate investment trust’s stock valued at $43,951,000 after purchasing an additional 43,685 shares during the last quarter. Finally, Oak Thistle LLC boosted its stake in Federal Realty Investment Trust by 382.6% during the 4th quarter. Oak Thistle LLC now owns 23,756 shares of the real estate investment trust’s stock valued at $2,395,000 after purchasing an additional 18,834 shares during the last quarter. 93.86% of the stock is currently owned by institutional investors and hedge funds.

Federal Realty Investment Trust Stock Performance Shares of FRT stock opened at $122.73 on Wednesday. The company has a debt-to-equity ratio of 1.46, a quick ratio of 1.64 and a current ratio of 1.70. The firm has a market cap of $10.60 billion, a price-to-earnings ratio of 24.79, a P/E/G ratio of 2.94 and a beta of 0.93. Federal Realty Investment Trust has a 52 week low of $90.03 and a 52 week high of $128.21. The firm’s 50-day simple moving average is $122.96 and its two-hundred day simple moving average is $113.32.

Federal Realty Investment Trust (NYSE:FRT – Get Free Report) last released its earnings results on Friday, July 31st. The real estate investment trust reported $0.97 earnings per share for the quarter, missing analysts’ consensus estimates of $1.85 by ($0.88). Federal Realty Investment Trust had a net margin of 32.67% and a return on equity of 13.65%. The company had revenue of $338.39 million for the quarter, compared to the consensus estimate of $331.92 million. During the same period in the prior year, the company earned $1.91 earnings per share. The firm’s revenue was up 7.8% on a year-over-year basis. Federal Realty Investment Trust has set its FY 2026 guidance at 7.480-7.560 EPS. As a group, equities analysts forecast that Federal Realty Investment Trust will post 7.53 earnings per share for the current year.

Federal Realty Investment Trust Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a dividend of $1.16 per share. This represents a $4.64 annualized dividend and a yield of 3.8%. This is a positive change from Federal Realty Investment Trust’s previous quarterly dividend of $1.13. The ex-dividend date of this dividend is Thursday, October 1st. Federal Realty Investment Trust’s dividend payout ratio is currently 91.31%.

Analyst Ratings Changes FRT has been the subject of several analyst reports. JPMorgan Chase & Co. increased their price objective on Federal Realty Investment Trust from $115.00 to $124.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Barclays lifted their target price on Federal Realty Investment Trust from $116.00 to $120.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 27th. Weiss Ratings reiterated a “buy (b)” rating on shares of Federal Realty Investment Trust in a report on Wednesday, July 29th. Scotiabank increased their price target on Federal Realty Investment Trust from $118.00 to $128.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. Finally, Wolfe Research began coverage on Federal Realty Investment Trust in a research note on Wednesday, July 8th. They set an “outperform” rating and a $143.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Federal Realty Investment Trust presently has a consensus rating of “Moderate Buy” and an average price target of $127.62.

Read Our Latest Stock Analysis on Federal Realty Investment Trust

Federal Realty Investment Trust Company Profile (Free Report)

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.

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Federal Realty Trust delivered record leasing activity and raised full-year guidance, demonstrating resilience amid higher-for-longer interest rates. FRT's Q2 revenue rose 7% to $335.71 million, core FFO grew 7% to $1.88, and occupancy remains near pre-GFC highs. Management increased 2026 core FFO guidance to $7.48–$7.56, expects mid-94% occupancy, and raised the dividend for the 59th consecutive year.

5 Dividend Kings Stocks to Load Up on NowFederal Realty Investment Trust NYSE: FRT reported second-quarter funds from operations of $1.88 per share, up 7% from a year earlier, as record leasing volume, higher rents and incremental revenue initiatives supported results above the midpoint of its guidance range.

Chief Executive Officer Don Wood said the quarter featured 96% occupancy, record leasing activity and the company’s 59th consecutive annual dividend increase. Federal Realty signed 124 comparable leases totaling 819,000 square feet during the quarter, with average first-year cash rent of $33.68 per square foot, 15% above prior rents and 28% higher on a straight-line basis.

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Leasing Activity and Occupancy It's a Good Time To Buy High-Yield Dogs of the Dividend KingsWendy Seher, Eastern Region President and Chief Operating Officer, said the company’s 819,000 square feet of comparable leasing was the highest single-quarter total in its history. Comparable rent spreads were 15% above prior in-place rents, while trailing 12-month comparable rollover reached 17%, the highest level in more than a decade.

Small-shop leasing helped Federal Realty maintain overall occupancy from the prior quarter despite expected anchor transitions. The company added more than 100,000 square feet of net small-shop occupancy, increasing its small-shop occupied rate by 100 basis points during the quarter.

Small-shop space was 93.9% leased and 92.3% occupied, the highest levels since 2007. The company had more than 1.5 million square feet in lease negotiations. Executed leases are expected to add $31 million of revenue over the next 18 months. Dividend Kings With the Highest Yield: 6 High Yields in 5 MinutesSeher said foot traffic increased across the portfolio and collections remained strong. She also said Federal Realty expects parking revenue to rise by nearly $3 million year over year, driven by higher rates, events, activations and partnerships.

Redevelopment and Residential Projects Wood highlighted anchor leasing and redevelopment progress at Grossmont Shopping Center in suburban San Diego and Barracks Road Shopping Center in Charlottesville, Virginia.

At the 860,000-square-foot Grossmont center, Federal Realty signed Bass Pro Shops to a 20-year lease for 161,000 square feet, replacing an underperforming Macy’s and adjacent small-shop tenants. The company also signed a 53,000-square-foot lease with AMC for a new theater. Wood said the planned comprehensive redevelopment is expected to cost $56 million and generate an incremental 10% cash-on-cash return.

At the 500,000-square-foot Barracks Road center, Harris Teeter signed for a 79,000-square-foot expanded flagship grocery store. Wood said further merchandising improvements are expected to be announced.

The company also continued work on residential development at existing shopping centers. Blayr at Bala Cynwyd is two-thirds leased and ahead of the company’s timing and rent expectations, according to Wood. Other projects include 301 Washington Street in Hoboken, scheduled for first-quarter 2027 delivery; Lot 12 at Santana Row, expected in late 2027; and a 261-unit project at Willow Grove Shopping Center outside Philadelphia.

Together, these projects are expected to add nearly 800 residential units and $27 million of operating income once stabilized over the next several years. Chief Financial Officer Dan Guglielmone said the company targets residential cash-on-cash yields of roughly 6.5% to 7% and would not proceed with projects that fall below its return thresholds.

Financial Results and Updated Outlook Guglielmone said second-quarter FFO exceeded the midpoint of guidance by $0.03 per share. Higher rental income and recoveries contributed $0.03, while stronger percentage rent, parking revenue and other incremental income added $0.02. Better-than-forecast term fees and capital recycling also contributed to the outperformance, partly offset by a one-time investment write-off, straight-line rent write-offs and higher general and administrative expenses.

Cash-basis comparable growth was 4.2% in the quarter and 4.6% year to date. GAAP comparable growth was 2.8% for the quarter and 3.7% year to date.

Federal Realty raised its full-year NAREIT and Core FFO guidance to $7.48 to $7.56 per share. At the $7.52 midpoint, the outlook represents 6.5% Core FFO growth from 2025, according to the company. It raised its forecast for GAAP-based comparable property operating income growth to 3.25% to 3.75%, while cash comparable growth is expected to be about 4% to 4.5%.

The company expects overall occupancy to reach the mid- to upper-94% range by year-end, driven by leases already signed. Guglielmone said anchor openings are weighted toward the fourth quarter, with the benefits of those openings expected to become more visible in 2027.

Capital Recycling and Acquisitions Federal Realty sold $66 million of retail assets during the second quarter, bringing year-to-date sales to $225 million at a blended 5% capitalization rate. Combined sales for 2025 and the first half of 2026 totaled $540 million at a blended initial cash yield of 5.4%.

The company ended the quarter with $1.2 billion of liquidity and had no debt maturities until mid-2027 other than $30 million due in August at a 7.5% interest rate. Annualized net debt-to-EBITDA improved to 5.4 times, while fixed-charge coverage was 3.9 times. Federal Realty also issued $61 million of equity through its at-the-market program during the quarter.

Chief Investment Officer Jan Sweetnam said the acquisition pipeline remained robust and had grown beyond the approximately $1.4 billion of potential assets discussed at the company’s investor day. She said competition for top retail properties has increased and cap rates have declined, but Federal Realty continues to seek assets where leasing, redevelopment and rent-growth opportunities can support returns above an 8% 10-year unlevered internal rate of return.

The company increased its quarterly dividend to $1.16 per share, or $4.64 annually, marking its 59th consecutive year of dividend increases.

About Federal Realty Investment Trust (NYSE:FRT)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Federal Realty Investment Trust (FRT) Q2 2026 Earnings Call July 31, 2026 9:00 AM EDT

Company Participants

Jill Sawyer - Senior Vice President of Investor Relations
Donald Wood - CEO, President & Director
Wendy Seher - Executive VP, Eastern Region President and Chief Operating Officer
Daniel Guglielmone - Executive VP, CFO & Treasurer
Jan Sweetnam - Executive VP & Chief Investment Officer

Conference Call Participants

Michael Goldsmith - UBS Investment Bank, Research Division
Alexander Goldfarb - Piper Sandler & Co., Research Division
Haendel St. Juste - Mizuho Securities USA LLC, Research Division
Greg McGinniss - Scotiabank Global Banking and Markets, Research Division
Andrew Reale - BofA Securities, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Conor Peaks - Wells Fargo Securities, LLC, Research Division
Michael Griffin - Evercore ISI Institutional Equities, Research Division
Floris Gerbrand Van Dijkum - Ladenburg Thalmann & Co. Inc., Research Division
Craig Mailman - Citigroup Inc., Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Paulina Rojas Schmidt - Green Street Advisors, LLC, Research Division

Presentation

Operator

Good day, and welcome to the Federal Realty Investment Trust Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Jill Sawyer, Senior Vice President of Investor Relations.

Jill Sawyer
Senior Vice President of Investor Relations

Thanks, Debbie. Good morning. Thank you for joining us today for Federal Realty's Second Quarter 2026 Earnings Conference Call. Joining me on the call are Don Wood, Federal's Chief Executive Officer; Dan Guglielmone, Chief Financial Officer; Wendy Seher, Eastern Region President and Chief Operating Officer; and Jan Sweetnam, Chief Investment Officer; as well as other members of our executive team that are available to take your questions at the conclusion of our prepared remarks.

A reminder that certain matters discussed

On July 31, 2026, Federal Realty Investment Trust (FRT) released its 8-K filing, detailing its financial performance for the second quarter ended June 30, 2026.

, /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today reported its results for the second quarter ended June 30, 2026. For the three months ended June 30, 2026 and 2025, net income available for common shareholders per diluted share was $0.97 and $1.78, respectively, with the year-over-year decline primarily driven by a lower gain on the sale of real estate compared to the prior year period, as well as the absence of a one-time tax credit benefit recognized in the second quarter of 2025. Operating income for the same periods was $138.7 million and $202.7 million, respectively.

Highlights for the second quarter include:

Generated Core funds from operations available to common shareholders (Core FFO) per diluted share of $1.88 for the quarter, a 6.8% increase year-over-year. Signed 124 leases for 819,273 square feet of comparable retail space — an all-time volume record — with rent growth of 15% on a cash basis and 28% on a straight-line basis. Generated Adjusted Comparable Property Operating Income (POI) growth (excluding straight-line rents and amortization of in-place leases) of 4.2%. Comparable POI growth was 2.8%. Reported overall portfolio occupancy of 93.8% and a leased rate of 96.1% at quarter end, with: Occupancy and leased rate both flat sequentially. Occupancy up 20 basis points and leased rate up 70 basis points year-over-year. Continued strong small shop leased rate, ending the quarter at 93.9% leased — representing an increase of 50 basis points year-over-year and 10 basis points sequentially. Acquired an adjacent retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million on April 17, 2026, completing the retail assemblage at the center. Sold two properties during the second quarter for a combined $66.1 million. Increased the regular quarterly cash dividend by 3% to $1.16 per common share, resulting in an indicated annual rate of $4.64 per common share. This marks the 59th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector. Hosted an Investor Day at Federal Realty's flagship Santana Row property, where management introduced a framework for long-term FFO and AFFO per share growth targets through 2028. Raised and tightened guidance for 2026 earnings per diluted share to $4.22 to $4.30. Raised and tightened guidance for both 2026 Nareit FFO and Core FFO per diluted share to $7.48 to $7.56, representing 6.5% Core FFO growth at the midpoint year-over-year. "This was another quarter of record leasing activity and outsized FFO growth, extending a trend we've sustained for several quarters now, and it's exactly why we're confident executing against the long-term plan we shared with investors at Santana Row," said Donald C. Wood, President and Chief Executive Officer of Federal Realty. "It all comes back to productivity — getting more out of the exceptional real estate we already own — and that discipline is what's translating into durable growth for our shareholders."

Financial Results

Net Income

For the second quarter of 2026, net income available for common shareholders was $83.7 million and earnings per diluted share was $0.97 versus $153.9 million and $1.78, respectively, for the second quarter of 2025, with the year-over-year decline primarily driven by a lower gain on the sale of real estate this quarter ($20.6 million compared to $76.5 million in the prior year period) and, to a lesser extent, the absence of a one-time tax credit benefit recognized in the second quarter of 2025.

FFO

Nareit FFO was $162.8 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $165.5 million, or $1.91 per diluted share, in the second quarter of 2025, a 1.6% per share decline. The year-over-year decline is due to a one-time $13.0 million, or $0.15 per share, of new market tax credit transaction income recognized in the second quarter of 2025.

Core FFO was $162.8 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $152.5 million, or $1.76 per diluted share, in the second quarter of 2025, a 6.8% per-share increase.

Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and a full definition of Core FFO.

Operational Update

Occupancy

The following operational metrics for the commercial portfolio are as of June 30, 2026:

Overall portfolio occupancy was 93.8%, flat sequentially and up 20 basis points year-over-year. Overall portfolio leased rate was 96.1%, flat sequentially and up 70 basis points year-over-year. Small shop leased rate was 93.9%, up 10 basis points sequentially and up 50 basis points year-over-year. The residential leased rate for comparable properties was 97.0% as of June 30, 2026, down 20 basis points year-over-year.

Leasing Activity

During the second quarter of 2026, Federal Realty signed 131 leases totaling 852,051 square feet of retail space. On a comparable space basis, the company signed 124 leases for 819,273 square feet — an all-time volume record — at an average rent of $33.68 per square foot, compared to $29.23 under prior leases, representing a 15% increase on a cash basis and 28% increase on a straight-line basis.

On a trailing twelve-month basis, Federal Realty signed 453 comparable leases totaling 2,796,064 square feet — also a volume record for any 12-month period — representing 17% rent spreads on a cash basis and 29% on a straight-line basis.

Transaction Activity

April 17, 2026 — acquired an adjacent 88,000-square-foot retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million, completing the retail assemblage at the center, which Federal Realty originally acquired in 2022. May 8, 2026 — sold 3131 Commodore Plaza in Coconut Grove, FL for $8.1 million. May 21, 2026 — sold Barcroft Plaza in Falls Church, VA for $58.0 million. Development Activity

Fully delivered the residential units at Blayr, a mixed-use development on City Avenue in Bala Cynwyd, PA, featuring 217 residential units, 19,000 square feet of ground-floor retail, and on-site parking.

Other Activity*

Hosted an Investor Day on May 21, 2026 at the company's flagship Santana Row property, where management provided an update on the company's long-term growth strategy and introduced a framework for long-term FFO and AFFO per share growth targets through 2028. A replay of the webcast, along with the presentation and tour books, is available at: https://www.federalrealty.com/investor-day-2026 Released the company's 2025 Sustainability Report, available at: https://www.federalrealty.com/sustainability-report-2025 * The contents of our website are not included in or incorporated by reference into this press release.

Financing Activity

On April 14, 2026, the company amended and restated the $1.25 billion revolving credit facility, increasing the borrowing capacity to $1.4 billion, reducing the SOFR spread to 72.5 basis points, and extending the maturity date to April 12, 2030, plus two optional six-month extensions. During the second quarter, the company issued 493,374 common shares under its at-the-market (ATM) equity offering program at a weighted average price of $123.92 per share, generating gross proceeds of $61.1 million. Regular Quarterly Dividends

Federal Realty announced today that its Board of Trustees increased the regular quarterly cash dividend to $1.16 per common share, resulting in an indicated annual rate of $4.64 per common share. The regular common dividend will be payable on October 15, 2026 to common shareholders of record as of October 1, 2026. This increase represents the 59th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector.

Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on October 15, 2026 to shareholders of record as of October 1, 2026.

2026 Guidance

Federal Realty has raised and tightened its 2026 earnings per diluted share, Nareit FFO, and Core FFO guidance, as summarized in the table below:

Full Year 2026 Guidance

Revised Guidance

Prior Guidance

Net income available for common shareholders per diluted share

$4.22 to $4.30

$3.94 to $4.03

Nareit FFO per diluted share

$7.48 to $7.56

$7.46 to $7.55

Core FFO per diluted share

$7.48 to $7.56

$7.46 to $7.55

Comparable Property POI Growth1

3.25% to 3.75%

3.125% to 3.625%

% Core FFO growth over the prior year

5.9% - 7.1%

5.7% - 6.9%

1Adjusted Comparable Property POI growth estimated to be approximately 75 basis points higher than Comparable Property POI growth in 2026 (see appendix).

Conference Call Information

Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its second quarter 2026 earnings conference call, which is scheduled for Friday, July 31, 2026 at 9:00 AM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through August 14, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10209822.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 103 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,500 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 59 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com. 

Safe Harbor Language

Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following:

risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy; risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected; risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate; risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels; risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets; risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and risks related to natural disasters, climate change and public health crises (such as worldwide pandemics), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2026 and subsequent quarterly reports on Form 10-Q.

Investor Inquiries:
Jill Sawyer
Senior Vice President, Investor Relations
301.998.8265
[email protected]

Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
[email protected]

Federal Realty Investment Trust

Consolidated Balance Sheets

June 30, 2026

June 30,

December 31,

2026

2025

(in thousands, except share and
per share data)

(unaudited)

ASSETS

Real estate, at cost

Operating (including $1,901,302 and $1,832,190 of consolidated variable interest
entities, respectively)

$ 11,348,512

$ 11,265,167

Construction-in-progress (including $37,695 and $28,418 of consolidated variable
interest entities, respectively)

329,803

374,735

11,678,315

11,639,902

Less accumulated depreciation and amortization (including $487,052 and $468,725 of
consolidated variable interest entities, respectively)

(3,444,324)

(3,351,881)

Net real estate

8,233,991

8,288,021

Cash and cash equivalents

107,246

107,415

Accounts and notes receivable, net

262,108

249,755

Mortgage notes receivable, net

—

9,091

Investment in partnerships

30,571

31,881

Operating lease right of use assets, net

81,644

83,120

Finance lease right of use assets, net

6,301

6,410

Prepaid expenses and other assets

337,258

354,767

TOTAL ASSETS

$  9,059,119

$  9,130,460

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Mortgages payable, net (including $190,863 and $194,176 of consolidated variable
interest entities, respectively)

$     518,371

$     521,759

Notes payable, net

1,282,856

1,057,331

Senior notes and debentures, net

2,966,685

3,364,010

Accounts payable and accrued expenses

217,548

219,678

Dividends payable

100,490

99,792

Security deposits payable

32,809

31,548

Operating lease liabilities

70,943

72,304

Finance lease liabilities

12,966

12,903

Other liabilities and deferred credits

238,760

250,494

Total liabilities

5,441,428

5,629,819

Commitments and contingencies

Redeemable noncontrolling interests

183,119

181,655

Shareholders' equity

Preferred shares, authorized 15,000,000 shares, $0.01 par:

5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation
preference $25,000 per share), 6,000 shares issued and outstanding

150,000

150,000

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation
preference $25 per share), 392,878 shares issued and outstanding

9,822

9,822

Common shares of beneficial interest, $0.01 par, 200,000,000 shares authorized,
86,883,595 and 86,266,009 shares issued and outstanding, respectively

876

869

Additional paid-in capital

4,374,872

4,310,365

Accumulated dividends in excess of net income

(1,179,380)

(1,224,372)

Accumulated other comprehensive income

8,340

2,047

Total shareholders' equity of the Trust

3,364,530

3,248,731

Noncontrolling interests

70,042

70,255

Total shareholders' equity

3,434,572

3,318,986

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$  9,059,119

$  9,130,460

Federal Realty Investment Trust

Consolidated Income Statements

June 30, 2026

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(in thousands, except per share data)

(unaudited)

REVENUE

Rental income

$  325,896

$  302,477

$  658,554

$  604,771

Other property income

9,797

8,769

17,687

15,354

Mortgage interest income

13

277

549

552

Total revenue

335,706

311,523

676,790

620,677

EXPENSES

Rental expenses

64,491

61,609

139,188

129,413

Real estate taxes

39,077

36,681

78,048

73,248

General and administrative

13,470

11,925

25,395

22,800

Depreciation and amortization

100,623

89,241

199,840

176,187

Total operating expenses

217,661

199,456

442,471

401,648

Gain on sale of real estate

20,617

76,501

113,328

77,672

New market tax credit transaction income

—

14,176

—

14,176

OPERATING INCOME

138,662

202,744

347,647

310,877

OTHER INCOME/(EXPENSE)

Other interest income

563

905

1,603

1,648

Interest expense

(50,008)

(44,598)

(99,124)

(87,073)

(Loss) income from partnerships

(664)

905

(503)

1,082

NET INCOME

88,553

159,956

249,623

226,534

   Net income attributable to noncontrolling interests

(2,851)

(4,040)

(4,822)

(6,850)

NET INCOME ATTRIBUTABLE TO THE TRUST

85,702

155,916

244,801

219,684

Dividends on preferred shares

(2,008)

(2,008)

(4,016)

(4,016)

NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS

$    83,694

$  153,908

$  240,785

$  215,668

EARNINGS PER COMMON SHARE, BASIC

Net income available for common shareholders

$        0.97

$        1.78

$        2.79

$        2.51

Weighted average number of common shares

86,183

85,969

86,112

85,722

EARNINGS PER COMMON SHARE, DILUTED

Net income available for common shareholders

$        0.97

$        1.78

$        2.78

$        2.51

Weighted average number of common shares

86,183

86,611

86,639

86,300

Federal Realty Investment Trust

Funds From Operations

June 30, 2026

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(in thousands, except per share data)

Nareit Funds from Operations available for common shareholders (Nareit FFO) (1)

Net income

$    88,553

$  159,956

$  249,623

$  226,534

Net income attributable to noncontrolling interests

(2,851)

(4,040)

(4,822)

(6,850)

Gain on sale of real estate

(20,617)

(76,501)

(113,328)

(77,672)

Depreciation and amortization of real estate assets

86,531

78,598

171,309

155,096

Amortization of initial direct costs of leases

13,027

9,358

26,260

18,435

Funds from operations

164,643

167,371

329,042

315,543

Dividends on preferred shares (2)

(1,875)

(1,875)

(3,750)

(3,750)

Income attributable to downREIT operating partnership units

595

603

1,191

1,272

Income attributable to unvested shares

(569)

(559)

(1,135)

(1,049)

Nareit FFO

$  162,794

$  165,540

$  325,348

$ 312,016

Weighted average number of common shares, diluted (2)(3)

86,803

86,611

86,733

86,393

Nareit FFO per diluted share (3)

$        1.88

$        1.91

$        3.75

$        3.61

Core Funds from Operations (Core FFO) (1)

Nareit FFO

$  162,794

$  165,540

$  325,348

$  312,016

Adjustments:

New market tax credit transaction income, net

—

(13,004)

—

(13,004)

Collection of prior period rents deferred during COVID

—

(69)

—

(136)

Core FFO

$  162,794

$  152,467

$  325,348

$  298,876

Core FFO per diluted share (3)

$        1.88

$        1.76

$        3.75

$        3.46

Reconciliation of the range of estimated earnings per diluted share to estimated Nareit FFO and Core FFO per diluted share for
the full year 2026:

Full Year 2026 Guidance Range

Low

High

Estimated net income available for common shareholders per diluted share

$                     4.22

$                     4.30

Adjustments:

Estimated gain on sale of real estate

(1.30)

(1.30)

Estimated depreciation and amortization

4.56

4.56

Estimated Nareit FFO and Core FFO per diluted share

$                     7.48

$                     7.56

See Glossary of Terms. Individual items may not add up to total due to rounding.

Federal Realty Investment Trust

Comparable Property Information

June 30, 2026

The following information is being provided for "Comparable Properties." Comparable Properties represents our consolidated property portfolio
other than those properties that distort comparability between periods in two primary categories: (1) assets that were not owned for the full quarter
in both periods presented and (2) assets currently under development or being repositioned for significant redevelopment and investment. The assets
excluded from Comparable Properties in Q2 include: Bala Cynwyd on City Avenue residential - Blayr, Friendship Center, Grossmont Center, Pike
& Rose Phase IV, Santana West, Willow Grove Shopping Center, and all properties acquired, disposed of, or not consolidated from Q2 2025 to Q2
2026. Comparable Property property operating income ("Comparable Property POI") and Adjusted Comparable Property POI are non-GAAP
measures used by management in evaluating the operating performance of our properties period over period. Adjusted Comparable Property
POI excludes the impact of straight-line rents and amortization of in-place leases from Comparable Property POI.

Reconciliation of GAAP operating income to Comparable Property POI and Adjusted Comparable Property POI

Three Months Ended

June 30,

2026

2025

(in thousands)

Operating income

$          138,662

$          202,744

Add:

Depreciation and amortization

100,623

89,241

General and administrative

13,470

11,925

Gain on sale of real estate

(20,617)

(76,501)

New market tax credit transaction income

—

(14,176)

Property operating income (POI)

232,138

213,233

Less: Non-comparable POI - acquisitions/dispositions

(15,681)

(6,277)

Less: Non-comparable POI - redevelopment, development & other

(10,179)

(6,296)

Comparable Property POI

$          206,278

$          200,660

Less: Straight-line rents

(2,846)

(4,162)

Less: Amortization of in-place leases

(2,700)

(3,815)

Adjusted Comparable Property POI

$          200,732

$          192,683

Glossary of Terms

Nareit-defined Funds From Operations (Nareit FFO): Nareit FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. Nareit developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, Nareit FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider Nareit FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs.

Core Funds From Operations (Core FFO): Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.

SOURCE Federal Realty Investment Trust

Posted by Defense World Staff on Jul 27th, 2026

Entropy Technologies LP increased its holdings in shares of Federal Realty Investment Trust (NYSE:FRT – Free Report) by 449.0% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 23,129 shares of the real estate investment trust’s stock after buying an additional 18,916 shares during the quarter. Entropy Technologies LP’s holdings in Federal Realty Investment Trust were worth $2,457,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of Federal Realty Investment Trust by 661.2% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 44,932 shares of the real estate investment trust’s stock worth $4,772,000 after acquiring an additional 39,029 shares during the last quarter. Renaissance Technologies LLC bought a new stake in shares of Federal Realty Investment Trust during the 1st quarter valued at approximately $1,519,000. Hilltop Holdings Inc. bought a new stake in shares of Federal Realty Investment Trust during the 1st quarter valued at approximately $260,000. Compound Planning Inc. acquired a new position in Federal Realty Investment Trust during the 1st quarter worth approximately $229,000. Finally, Mizuho Markets Americas LLC increased its position in Federal Realty Investment Trust by 21.4% during the 1st quarter. Mizuho Markets Americas LLC now owns 131,598 shares of the real estate investment trust’s stock worth $13,977,000 after purchasing an additional 23,216 shares in the last quarter. Institutional investors own 93.86% of the company’s stock.

Federal Realty Investment Trust Stock Down 0.0% Shares of NYSE FRT opened at $126.07 on Monday. The company has a 50 day simple moving average of $121.97 and a 200 day simple moving average of $112.19. The firm has a market cap of $10.89 billion, a PE ratio of 21.89, a price-to-earnings-growth ratio of 3.00 and a beta of 0.93. Federal Realty Investment Trust has a 1 year low of $89.99 and a 1 year high of $126.86. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.64 and a quick ratio of 1.64.

Federal Realty Investment Trust Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were paid a dividend of $1.13 per share. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $4.52 annualized dividend and a dividend yield of 3.6%. Federal Realty Investment Trust’s dividend payout ratio (DPR) is presently 78.47%.

Analysts Set New Price Targets A number of brokerages have weighed in on FRT. JPMorgan Chase & Co. raised their target price on shares of Federal Realty Investment Trust from $115.00 to $124.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Raymond James Financial reiterated an “outperform” rating and set a $135.00 price target on shares of Federal Realty Investment Trust in a report on Monday, June 29th. Wolfe Research began coverage on Federal Realty Investment Trust in a research note on Wednesday, July 8th. They issued an “outperform” rating and a $143.00 price target for the company. Weiss Ratings raised Federal Realty Investment Trust from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 1st. Finally, Scotiabank boosted their price objective on Federal Realty Investment Trust from $118.00 to $128.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Three research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $127.62.

Get Our Latest Analysis on Federal Realty Investment Trust

About Federal Realty Investment Trust (Free Report)

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.

See Also Five stocks we like better than Federal Realty Investment Trust RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding FRT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Federal Realty Investment Trust (NYSE:FRT – Free Report).

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Federal Realty Investment Trust (FRT) Q1 2026 Earnings Call Transcript

Wall Street is focused on the geopolitical conflict unfolding in the Middle East and its impact on energy prices. Before that, there was the war in Ukraine. In the future, there will be some other newsworthy event, perhaps the bursting of what some believe is an artificial intelligence bubble, that will unnerve investors and lead to stock market volatility.

The big picture is that the market is volatile and it always will be. If you are an investor, one way to deal with market uncertainty is to focus on reliable dividend-paying stocks. Three to consider today are Enterprise Products Partners (EPD 0.08%), Federal Realty (FRT +0.82%), and International Business Machines (IBM 1.13%).

Image source: Getty Images.

Enterprise avoids commodity risk Master limited partnership (MLP) Enterprise Products Partners operates one of the largest midstream businesses in North America. It generates reliable cash flows by charging customers fees for the use of its energy infrastructure assets. The volume of oil and natural gas moving through its system is more important to the MLP's results than the prices of the products it moves. Energy is vital to the modern world, so volumes tend to remain robust even during energy industry downturns.

Enterprise has a lofty 5.7% distribution yield. The distribution has been increased annually for 27 consecutive years, which is basically as long as the MLP has been publicly traded. The MLP's yield will likely make up the lion's share of your return over time, but this resilient energy business is a way to add energy exposure to your portfolio without the commodity risk that is so prevalent in the energy sector today.

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Federal Realty is a Dividend King landlord Federal Realty is a real estate investment trust (REIT) that owns strip malls and mixed-use assets. It only owns around 100 properties, so it is kind of small. And yet it has done something that no other REIT has: Federal Realty's dividend has been increased annually for 58 consecutive years. That's the longest streak in the REIT sector, which has enabled the REIT to become a Dividend King. Federal Realty is the only Dividend King REIT. The dividend yield is well above the market at 4%.

Federal Realty's success is attributable to two factors. First, it focuses on quality over quantity. Its properties have higher average incomes and population densities around them than its peers, which means it owns properties in which retailers want to be located. Second, Federal Realty is an active portfolio manager, always buying, selling, and investing to upgrade its portfolio. In this way, it ensures that its portfolio of properties remains industry-leading. The proof of the REIT's success is its incredible dividend streak.

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Buying a few boring, reliable dividend stocks is a great way to deal with market uncertainty. Federal Realty is the epitome of boring and reliable.

International Business Machines knows how to adjust Technology giant IBM has increased its dividend for decades. The dividend yield is 2.9%, which is well above the technology sector average of 0.4%. But the real attraction with IBM is its history of changing along with the needs of its business customers.

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Today, IBM is focused on cloud computing, artificial intelligence, and quantum computing. These are all hot technology trends right now. It started life over 100 years ago, producing items such as scales. This is not some start-up; it is an industry survivor. That's important because IBM's business customers know that they can count on the company to support their most important technology processes and functions across the business cycle and through technology cycles. Long-term dividend investors can comfortably own it for the same reasons.

Dividends make it easier to live with volatility Risk is just part of the investment equation. While you will never be able to avoid volatility, you can adjust your investment approach to make that volatility easier to deal with. A good option is dividend stocks that have proven they can pay you well despite the market's inherent risk. At the end of the day, focusing on the dividends you are collecting from reliable payers like Enterprise, Federal Realty, and IBM lets you avoid focusing on the inevitable ups and downs of the market.

Federal Realty Investment Trust (FRT - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Federal Realty Investment Trust basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Federal Realty Investment Trust imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Federal Realty Investment TrustThis real estate investment trust is expected to earn $7.48 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Federal Realty Investment Trust. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Federal Realty Investment Trust to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Despite the S&P 500 index (^GSPC +0.50%) trading near record highs, you can still find good investment ideas in the financial sector. For those who like growth stocks, particularly dividend growth stocks, Visa (V +0.93%) could be a good choice. For yield-seeking investors, Dividend King Federal Realty (FRT +0.82%) should be strongly considered.

But dividend lovers shouldn't get so enamored of AGNC Investment's (AGNC +0.10%) 13%+ dividend that they overlook this crucial fact about the company. It is well run, but it may not be the investment you expect based on that lofty yield.

Image source: Getty Images.

Visa's valuation looks reasonable Payment processor Visa has a long history of growth. Its business has expanded alongside the shift from cash to card payments. To put a number on that, in 2015 the company handled 71 billion transactions, up 9% year over year. In 2025, it handled 257.5 billion transactions, up 10% in a year. Visa's growth is not slowing down, which helps explain why it is normally afforded a premium in the market.

However, the company's price-to-sales and price-to-earnings ratios are both below their five-year averages right now. That hints that the stock is reasonably priced, if not a little cheap. The yield is fairly low at 0.8%, but the dividend has grown at an annualized rate of 17% over the past decade. If you are a growth investor or a dividend growth investor, you'll probably want to dig into Visa's story.

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Federal Realty is the "King" of REITs Federal Realty is an income stock, noting its attractive 3.9% dividend yield. That said, the real draw with this strip mall and mixed-use property landlord is consistency. Federal Realty is the only real estate investment trust (REIT) that is also a Dividend King, having increased its dividend annually for over five decades.

The REIT is focused on quality over quantity, with a portfolio of only around 100 properties. It takes a very active management approach, frequently buying, selling, and redeveloping assets. The end result is a portfolio with higher average population densities and higher average incomes than any of Federal Realty's closest peers.

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Federal Realty isn't an exciting business. It tends to be a slow-and-steady grower. But if you are looking for a reliable dividend stock, this REIT is hard to beat.

AGNC Investment isn't a dividend stock That said, don't get so enamored of dividends that you overlook key dividend risks. For example, AGNC Investment has a huge 13%+ dividend yield, but it isn't a particularly reliable dividend stock. As the chart below shows, the dividend has not only been volatile over time but has also been declining for more than a decade. The stock price has tracked the dividend both up and down.

AGNC data by YCharts

What's interesting is that AGNC Investment is not a bad investment or a troubled company. It is a fairly well-respected mortgage REIT. The dividend and price volatility are pretty normal for a mortgage REIT. And, if you reinvested the dividends over time, your total return would be roughly similar to that of the S&P 500 index. That's a pretty impressive total return story, even if the stock is a less-than-desirable dividend story. AGNC Investment could be attractive to investors looking to diversify their portfolios.

Three finance options; two are reliable dividend stocks Visa is a solid dividend growth stock that is still growing its business. Federal Realty is a slow-and-steady, high-yield stock with a proven business model. And AGNC Investment has a huge yield, but investors need to tread with caution because it's really a total return investment. In the end, that's three potential finance options. Just tread carefully with AGNC Investment, since it may not be what it seems at first glance.

Federal Realty Investment Trust is upgraded to a strong buy, outperforming peers and the S&P 500 with robust fundamentals. FRT demonstrates strong leasing momentum, 5-year revenue and EBITDA margin growth, and a proven dividend growth record with ample coverage. Balance sheet risk is attractive, supported by investment-grade credit ratings and low tenant concentration, though valuation is somewhat rich with only modest upside.

Image: Bigstock

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Key Takeaways FRT gained 12.3% in three months as investors warmed to its earnings outlook and leasing momentum.Federal Realty posted Q1 2026 Nareit FFO of $1.88, up 10.6%, and signed a record 101 comparable leases.FRT ended the quarter 93.8% occupied, 96.1% leased, while recycling capital into centers in MD and VA. Federal Realty Investment Trust (FRT - Free Report) stock has gained 12.3% over the past three months, outperforming its industry’s 3.2% increase, drawing fresh attention from investors looking at retail REITs. The move reflects improving confidence in the company’s earnings outlook, leasing momentum and capital recycling strategy.

After a long period in which higher interest rates weighed on REIT valuations, FRT’s recent performance suggests that investors are again focusing on its steady operating growth and high-quality property base.

Federal Realty owns and operates open-air shopping centers and mixed-use retail properties in strong coastal and select high-income markets. Its portfolio includes well-known assets such as Santana Row, Pike & Rose and Assembly Row. The broader retail real estate industry has been helped by limited new supply, resilient demand for well-located shopping centers and stronger tenant interest in properties that serve affluent customers.

Image Source: Zacks Investment Research

Factors Behind FRT Stock Price Rise: Will This Trend Continue?One major reason behind the stock’s rise is Federal Realty’s strong first-quarter 2026 performance. The company reported Nareit FFO of $1.88 per share, up 10.6% from the prior-year quarter. That is a healthy increase for a mature REIT and shows that rent growth, occupancy and redevelopment contributions are beginning to show up in results.

Leasing activity was a bright spot. Federal Realty signed 101 comparable retail leases covering 649,078 square feet, a first-quarter record for the company. These leases came with rent growth of 13% on a cash basis and 23% on a straight-line basis. Strong leasing spreads matter because they point to pricing power, especially in a retail market where high-quality space remains limited.

The company’s portfolio also remains well occupied. Overall occupancy was 93.8%, while the leased rate stood at 96.1% at the end of the quarter. This spread between leased and occupied space suggests that already-signed leases could still add rent as tenants open. Management also pointed to an active pipeline and expected rent contribution from signed but not yet occupied space, which could support results into 2027.

Another factor helping sentiment is Federal Realty’s capital recycling plan. The company sold mature assets, including residential and retail properties, and used capital to buy assets such as Congressional North Shopping Center in Montgomery County, MD, and an additional retail parcel at Kingstowne Towne Center in Alexandria, VA. This strategy can improve growth if the company sells lower-yielding assets and reinvests in properties with better long-term return potential.

Still, the rally may not move in a straight line from here. REITs remain sensitive to interest rates, refinancing costs and investor appetite for income stocks. Federal Realty also faces usual retail real estate risks, including tenant bankruptcies, operating cost pressure and possible delays in redevelopment projects. The company’s own guidance points to growth, but not without headwinds from financing costs.

View on FRT StockFederal Realty’s recent stock rise looks backed by real operating progress, including higher FFO, strong leasing spreads and better guidance. Its focus on affluent markets and mixed-use assets gives it a solid position in the retail REIT space. However, after a 12.3% three-month gain, some of the good news may already be reflected in the share price. For now, the outlook appears balanced: the business trend is positive, but investors may want to watch valuation, rates and execution before expecting the rally to continue at the same pace.

Currently, FRT carries a Zacks Rank #3 (Hold).

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Curbline Properties Corp. (CURB - Free Report) and Philips Edison & Company (PECO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CURB’s 2026 FFO per share is pinned at $1.21. This indicates year-over-year growth of 14.15%.

The Zacks Consensus Estimate for PECO’s 2026 FFO per share is pegged at $2.76. This implies year-over-year growth of 6.15%.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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