Federal Realty Investment Trust Stock Earnings Reports

Federal Realty delivered a strong Q2 2025 with a beat-and-raise: reported NAREIT FFO per share of $1.91 (includes $0.15 of new market tax credit income) and $1.76 ex-tax credit, exceeding consensus. Comparable property operating income grew ~4.9% (4.0% cash-basis excluding timing items). Leasing was very robust (644k sq ft in Q2 — near-record) with a 1.5M sq ft pipeline and healthy rent spreads (21% straight-line / mid-teens pipeline spreads). Management is widening its acquisition geography (quality-first approach) and closed the Leawood, KS deal (Town Center Plaza/Crossing), expecting two more sizeable acquisitions by year-end; acquisition yields are characterized as high-6s to low-7s cap rates and unlevered IRRs around ~9% on targets. Disposition program continues to monetize peripheral residential/office and lower-growth retail (Q2 sales $143M; ~$400M+ currently being marketed). Development focus remains on retail redevelopment and residential projects (Bala Cynwyd leasing 2026, Hoboken 2027, Santana Row Lot 12 underway) with targeted residential returns near ~7%. Balance sheet and liquidity strengthened: $1.55B liquidity (incl. $177M cash, ~$1.23B revolver capacity, $150M term loan availability), net debt/EBITDA (annualized) ~5.4x (ex-tax credit) and ~$1.6B of 'dry powder' plus planned asset sales. Guidance raised: 2025 NAREIT FFO to $7.16–$7.26 (midpoint $7.21), or $7.01–$7.11 ex-tax credit (midpoint $7.06) — ~6.5% growth at the new midpoint. Quarterly cadence disclosed: Q3 FFO $1.72–$1.77; Q4 FFO $1.83–$1.88. Board raised the quarterly dividend by $0.03 to $1.13 ($4.52 annualized), marking the 58th consecutive annual increase. Management expects portfolio occupancy to move from ~93.6% to low-94s by year-end and sees continued leasing momentum driving further rent commencements into late 2025/2026. Key risks/notes: some timing-driven items (rent commencement scheduling, Del Monte low starting occupancy), forward-looking statements dependent on market conditions and execution.