Federal Realty (FRT) AI Stock Analysis

• Market Cap: $7.69B
• Dividend Yield: 4.92%
• Average Volume (3M): 974.49K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.72
• Revenue Growth: 6.21%
• EPS Growth: 22.32%
• Country: US
• Employees: 304
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Retail
• EPS (TTM): 3.42
• Shares Outstanding: 85,780,070
• 10 Day Avg. Volume: 1,268,914
• 30 Day Avg. Volume: 974,485
• PEG Ratio: 1.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.78
• Price to Cash Flow (P/CF): 17.00
• P/FCF Ratio: 34.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $116.31
• Price Target Upside: 28.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Federal Realty's strong financial performance and positive earnings call outlook are key strengths, reflecting robust revenue growth and strategic management. Although technical indicators suggest caution due to a bearish trend, the company's solid dividend yield and strategic moves to bolster capital position it well for future growth.

Positive Factors

Earnings Growth

FRT posted its highest-ever quarterly FFO, generating occupancy gains and better-than-feared bad debt.

Leasing Performance

Robust leasing environment continues with FRT signing 126 comparable leases at a 14% cash spread, a higher proportion than peers.

Occupancy Gains

Leased occupancy was 95.9%, up 60bps QoQ, and once again notably stronger than expectations.

Negative Factors

Development Drag

The temporary drag from development will be more pronounced in 2025 before the FFO benefit can be realized.

Government Spending Reductions

25% of FRT's assets are located in the Washington DC MSA, which is impacted by government spending reductions.

Near-term Uncertainty

Near-term uncertainty in the Washington DC market is affecting FRT due to efforts to reduce federal government size and spending.

Federal Realty Business Overview & Revenue Model

Company Description

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 106 properties include approximately 3,100 tenants, in 25 million square feet, and approximately 3,200 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, 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. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

How the Company Makes Money

Federal Realty makes money primarily through leasing space in its portfolio of retail and mixed-use properties to tenants, which include national retailers, local businesses, restaurants, and service providers. Rental income from these leases forms the core revenue stream for the company. Additionally, Federal Realty generates income through property management fees and redevelopment projects that enhance the value and attractiveness of its properties. The company strategically invests in high-demand areas, enabling it to command premium rents and maintain high occupancy rates. Partnerships with retail brands and developers further contribute to its earnings by driving foot traffic and increasing property utilization.

Federal Realty Financial Statement Overview

Summary

Federal Realty demonstrates strong financial health with robust revenue growth, healthy profit margins, and effective cash flow management. The company has improved leverage management and maintains strong profitability.

Income Statement

Federal Realty has exhibited strong revenue growth, increasing from $951.2M in 2021 to $1.2B in 2024. The gross profit margin has been robust, maintaining around 67%, and the net profit margin improved to 24.5% in 2024. EBIT and EBITDA margins are healthy at 39.3% and 67.8%, respectively. The company shows strong profitability and growth potential.

Balance Sheet

The debt-to-equity ratio has decreased to 0.22 in 2024, indicating improved leverage management. Return on Equity (ROE) is strong at 9.3%. The equity ratio shows a stable financial structure, with equity comprising 37.2% of total assets. The company has been managing its liabilities well while maintaining adequate equity levels.

Cash Flow

Operating cash flow is strong, increasing to $574.6M in 2024, and free cash flow has grown significantly. The operating cash flow to net income ratio is 1.95, indicating efficient cash generation relative to net earnings. Free cash flow to net income is above 1, showing good conversion of earnings into cash. Cash management appears effective with solid cash generation and deployment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.20B	1.13B	1.07B	951.22M	835.49M
	Gross Profit
810.65M	769.06M	717.60M	634.61M	545.33M
	EBIT
472.36M	406.47M	368.79M	306.83M	289.52M
	EBITDA
822.41M	736.79M	828.82M	674.70M	544.55M
	Net Income Common Stockholders
295.21M	236.99M	254.74M	132.56M	3.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.41M	250.82M	85.56M	162.13M	798.33M
	Total Assets
8.52B	8.44B	8.23B	7.62B	7.61B
	Total Debt
689.03M	4.69B	4.47B	4.19B	4.44B
	Net Debt
565.63M	4.44B	4.39B	4.03B	3.64B
	Total Liabilities
5.10B	5.21B	5.02B	4.75B	4.92B
	Stockholders Equity
3.17B	2.96B	2.95B	2.58B	2.46B
Cash Flow		Free Cash Flow
574.56M	244.71M	100.07M	30.84M	-132.01M
	Operating Cash Flow
574.56M	555.83M	516.77M	471.35M	369.93M
	Investing Cash Flow
-446.83M	-358.32M	-786.00M	-660.12M	-368.38M
	Financing Cash Flow
-252.30M	-33.85M	190.41M	-452.97M	661.74M

Federal Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRT, the sentiment is Negative. The current price of 90.26 is below the 20-day moving average (MA) of 93.79, below the 50-day MA of 99.79, and below the 200-day MA of 106.41, indicating a bearish trend. The MACD of -1.74 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 45.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRT.

Federal Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRT	76 Outperform	$7.69B	26.00	9.58%	4.92%	6.21%	22.32%
REG	71 Outperform	$12.72B	32.97	5.82%	3.95%	10.15%	3.36%
BRX	70 Outperform	$7.59B	22.25	11.61%	4.46%	3.41%	10.54%
KIM	68 Neutral	$13.70B	36.50	4.03%	4.86%	14.51%	-45.53%
SPG	63 Neutral	$57.75B	20.30	80.78%	5.38%	5.40%	8.57%
Sector *	61 Neutral	$4.30B	16.20	-3.61%	11.22%	6.29%	-21.37%
MAC	54 Neutral	$3.76B	―	-7.50%	4.75%	4.88%	-66.88%

Federal Realty Corporate Events

Federal Realty Announces $300M Share Buyback Program

On April 10, 2025, Federal Realty Investment Trust announced a new common share repurchase program authorized by its Board of Trustees. The program allows the company to buy back up to $300 million of its common shares, with the timing and amount of repurchases depending on factors like market conditions and the company’s financial needs. This move could impact the company’s stock value and market positioning, offering flexibility in capital management.

Spark’s Take on FRT Stock

According to Spark, TipRanks’ AI Analyst, FRT is a Outperform.

Federal Realty’s strong financial performance and positive earnings call outlook are key strengths, reflecting robust revenue growth and strategic management. Although technical indicators suggest caution due to a bearish trend, the company’s solid dividend yield and strategic moves to bolster capital position it well for future growth.

To see Spark’s full report on FRT stock, click here.

Federal Realty Expands Equity Distribution Agreement to $750M

On February 12, 2025, Federal Realty Investment Trust’s Board of Trustees’ Compensation Committee approved a modified compensation arrangement for Daniel Guglielmone, the Executive Vice President-Chief Financial Officer and Treasurer, including a base salary of $650,000, an annual bonus target of 150% of the base salary, and an annual target under the long-term incentive award program of $1,500,000. In a strategic move to strengthen its financial positioning, the company announced the Second Amendment to their equity distribution agreement, increasing the aggregate offering price of shares to $750,000,000 from February 14, 2025, which marks a significant increase from the previous $500,000,000 cap set on March 8, 2024, aiming to enhance its capital-raising efforts.