Federal Realty Investment Trust Reports First Quarter 2025 Results
Comparable property operating income grew 2.8%, while portfolio occupancy reached 93.6% with a 95.9% leased rate. The company extended its $600M unsecured term loan to March 2028 and announced a new $300M share repurchase program. FRT also completed the acquisition of Del Monte Shopping Center in Monterey, California for $123.5M.
Management raised its 2025 FFO guidance to $7.11-$7.23 per share, representing 6% growth at the midpoint year-over-year, while maintaining earnings guidance of $3.00-$3.12 per share. The company declared a quarterly dividend of $1.10 per common share.
Il reddito operativo comparabile delle proprietà è cresciuto del 2,8%, mentre l'occupazione del portafoglio ha raggiunto il 93,6% con un tasso di locazione del 95,9%. La società ha esteso il suo prestito a termine non garantito da 600 milioni di dollari fino a marzo 2028 e ha annunciato un nuovo programma di riacquisto azionario da 300 milioni di dollari. Inoltre, FRT ha completato l'acquisizione del Del Monte Shopping Center a Monterey, California, per 123,5 milioni di dollari.
La direzione ha rivisto al rialzo la guidance sul FFO 2025, portandola a 7,11-7,23$ per azione, rappresentando una crescita del 6% nel valore medio anno su anno, mantenendo invece la guidance sugli utili a 3,00-3,12$ per azione. La società ha inoltre dichiarato un dividendo trimestrale di 1,10$ per azione ordinaria.
Los ingresos operativos comparables de las propiedades crecieron un 2,8%, mientras que la ocupación del portafolio alcanzó el 93,6% con una tasa de arrendamiento del 95,9%. La empresa extendió su préstamo a plazo no garantizado de 600 millones de dólares hasta marzo de 2028 y anunció un nuevo programa de recompra de acciones por 300 millones de dólares. FRT también completó la adquisición del Del Monte Shopping Center en Monterey, California, por 123,5 millones de dólares.
La dirección elevó su pronóstico de FFO para 2025 a 7,11-7,23$ por acción, representando un crecimiento del 6% en el punto medio año tras año, mientras mantiene la guía de ganancias entre 3,00 y 3,12$ por acción. La compañía declaró un dividendo trimestral de 1,10$ por acción común.
비교 가능한 부동산 운영 수익은 2.8% 증가했으며, 포트폴리오 점유율은 93.6%, 임대율은 95.9%에 달했습니다. 회사는 6억 달러 규모의 무담보 장기 대출을 2028년 3월까지 연장했으며, 3억 달러 규모의 신규 자사주 매입 프로그램을 발표했습니다. 또한 FRT는 캘리포니아 몬터레이에 위치한 Del Monte 쇼핑센터를 1억 2,350만 달러에 인수 완료했습니다.
경영진은 2025년 FFO 가이던스를 주당 7.11~7.23달러로 상향 조정했으며, 이는 전년 동기 대비 중간값 기준 6% 성장에 해당합니다. 한편, 주당 순이익 가이던스는 3.00~3.12달러로 유지했습니다. 회사는 보통주에 대해 분기별 배당금으로 주당 1.10달러를 선언했습니다.
Le revenu d'exploitation comparable des propriétés a augmenté de 2,8 %, tandis que le taux d'occupation du portefeuille a atteint 93,6 % avec un taux de location de 95,9 %. La société a prolongé son prêt à terme non garanti de 600 millions de dollars jusqu'en mars 2028 et a annoncé un nouveau programme de rachat d'actions de 300 millions de dollars. FRT a également finalisé l'acquisition du centre commercial Del Monte à Monterey, Californie, pour 123,5 millions de dollars.
La direction a relevé ses prévisions de FFO pour 2025 à 7,11-7,23 $ par action, représentant une croissance de 6 % au point médian d'une année sur l'autre, tout en maintenant ses prévisions de bénéfices entre 3,00 et 3,12 $ par action. La société a déclaré un dividende trimestriel de 1,10 $ par action ordinaire.
Das vergleichbare operative Einkommen der Immobilien stieg um 2,8 %, während die Portfoliobelegung 93,6 % und die Vermietungsquote 95,9 % erreichte. Das Unternehmen verlängerte seinen ungesicherten Terminkredit in Höhe von 600 Mio. USD bis März 2028 und kündigte ein neues Aktienrückkaufprogramm in Höhe von 300 Mio. USD an. FRT schloss zudem die Übernahme des Del Monte Shopping Centers in Monterey, Kalifornien, für 123,5 Mio. USD ab.
Das Management hob die FFO-Prognose für 2025 auf 7,11–7,23 USD je Aktie an, was einem Wachstum von 6 % im Jahresvergleich auf Basis des Mittelwerts entspricht, während die Gewinnprognose von 3,00–3,12 USD je Aktie beibehalten wurde. Das Unternehmen erklärte eine Quartalsdividende von 1,10 USD je Stammaktie.
- Net income per share increased 9.1% YoY to $0.72
- FFO per share grew to $1.70, up from $1.64 in Q1 2024
- Comparable property operating income grew 2.8%
- Portfolio occupancy improved 180 basis points YoY to 93.6%
- Small shop leased rate increased 210 basis points YoY to 93.5%
- Strong liquidity position with nearly $1.5 billion available
- Raised 2025 FFO guidance, projecting 6% growth at midpoint
- Sequential decline in occupancy (-10 basis points) and leased rate (-20 basis points)
- Anchor tenant leased rate decreased 70 basis points sequentially
- Operating expenses increased from $191.1M to $202.2M YoY
Insights
FRT delivered solid Q1 results with FFO growth, strong leasing spreads, and raised 2025 guidance, demonstrating resilience in high-quality retail locations.
Federal Realty's Q1 2025 results demonstrate the enduring strength of its premium retail portfolio strategy. FFO per share increased to
The leasing fundamentals tell a compelling story about retail demand in FRT's coastal markets. While occupancy ticked down slightly quarter-over-quarter (by 10 basis points to
The
Management's decision to raise 2025 FFO guidance while maintaining a solid liquidity position of nearly
Federal Realty's 57-year track record of consecutive dividend increases – the longest in the REIT industry – continues with the declared
Highlights for the first quarter and subsequent to quarter-end include:
- Generated funds from operations available to common shareholders (FFO) per diluted share of
$1.70 $1.64 - Generated comparable property operating income (POI) growth of
2.8% , excluding lease termination fees and prior period rents collected. - Reported comparable portfolio occupancy of
93.6% and a leased rate of95.9% at quarter end, representing a change of:- +180 basis points of occupancy and +160 basis points of leased rate year-over-year
- -10 basis points of occupancy and -20 basis points of leased rate quarter-over-quarter
- Continued strong small shop leased rate, ending the quarter at
93.5% leased representing an increase of +210 basis points year-over-year. - Extended our
$600 million $750 million $1.5 billion - Subsequent to quarter end, announced a new common share repurchase program, under which we may purchase up to
$300 million - Closed on our previously announced acquisition of Del Monte Shopping Center in
Monterey, California . - Maintained 2025 earnings per diluted share guidance of
$3.00 $3.12 $7.11 $7.23 6% growth at the midpoint year-over-year.
"We started the year with strong operating results and are encouraged to see continuing elevated foot traffic across our properties," said Donald C. Wood, Federal Realty's Chief Executive Officer. "Decades of experience have taught us how to insulate our portfolio against economic cycles and disruptive forces. With irreplaceable real estate and a high-quality, diverse tenant base in affluent markets, we are well positioned for continued growth and stability."
Financial Results
Net Income
For the first quarter 2025, net income available for common shareholders was
FFO
For the first quarter 2025, FFO was
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
Operational Update
Occupancy
The following operational metrics for the commercial portfolio are as of March 31, 2025:
- The comparable portfolio was
93.6% occupied, an increase of 180 basis points year-over-year and down 10 basis points sequentially. - Leased rate for the comparable portfolio was
95.9% , an increase of 160 basis points year-over-year and down 20 basis points sequentially. - Small shop leased rate was
93.5% , an increase of 210 basis points year-over-year and down 10 basis points sequentially. - Anchor tenant leased rate was
96.8% , an increase of +100 basis points year-over-year and down 70 basis points sequentially.
The residential leased rate was
Leasing Activity
During the first quarter 2025, Federal Realty signed 91 leases for 429,865 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 87 leases for 368,759 square feet at an average rent of
Acquisitions
Federal Realty closed on the previously announced
Financing Activity
- Amended and restated our
$600 million $150 million - Subsequent to quarter end, announced a new common share repurchase program, under which we may purchase up to
$300 million
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a
2025 Guidance
Federal Realty has raised its 2025 FFO guidance, as summarized in the table below:
Full Year 2025 Guidance | Revised Guidance | Prior Guidance |
2025 Earnings per diluted share | ||
2025 FFO per diluted share |
Conference Call Information
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its first quarter 2025 earnings conference call, which is scheduled for Thursday, May 8, 2025 at 5:00 PM ET. To participate, please call 833-821-4548 or 412-652-1258 five to ten minutes 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 May 22, 2025 by dialing 844-512-2921 or 412-317-6671; Passcode: 10197791.
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 from
Federal Realty has increased its quarterly dividends to its shareholders for 57 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.
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 13, 2025 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 13, 2025.
Federal Realty Investment Trust | |||
Consolidated Balance Sheets | |||
March 31, 2025 | |||
March 31, | December 31, | ||
2025 | 2024 | ||
(in thousands, except share and | |||
(unaudited) | |||
ASSETS | |||
Real estate, at cost | |||
Operating (including | |||
Construction-in-progress (including | 561,101 | 539,752 | |
11,082,209 | 10,903,713 | ||
Less accumulated depreciation and amortization (including | (3,220,113) | (3,152,799) | |
Net real estate | 7,862,096 | 7,750,914 | |
Cash and cash equivalents | 109,224 | 123,409 | |
Accounts and notes receivable, net | 220,262 | 229,080 | |
Mortgage notes receivable, net | 9,131 | 9,144 | |
Investment in partnerships | 32,888 | 33,458 | |
Operating lease right of use assets, net | 85,165 | 85,806 | |
Finance lease right of use assets, net | 6,575 | 6,630 | |
Prepaid expenses and other assets | 296,509 | 286,316 | |
TOTAL ASSETS | $ 8,621,850 | $ 8,524,757 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Liabilities | |||
Mortgages payable, net (including | $ 512,579 | $ 514,378 | |
Notes payable, net | 641,331 | 601,414 | |
Senior notes and debentures, net | 3,359,383 | 3,357,840 | |
Accounts payable and accrued expenses | 197,422 | 183,564 | |
Dividends payable | 97,265 | 96,743 | |
Security deposits payable | 34,194 | 30,941 | |
Operating lease liabilities | 74,230 | 74,837 | |
Finance lease liabilities | 12,812 | 12,783 | |
Other liabilities and deferred credits | 247,029 | 227,827 | |
Total liabilities | 5,176,245 | 5,100,327 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 181,339 | 180,286 | |
Shareholders' equity | |||
Preferred shares, authorized 15,000,000 shares, | |||
| 150,000 | 150,000 | |
| 9,822 | 9,822 | |
Common shares of beneficial interest, | 869 | 862 | |
Additional paid-in capital | 4,303,363 | 4,248,824 | |
Accumulated dividends in excess of net income | (1,275,769) | (1,242,654) | |
Accumulated other comprehensive income | 3,596 | 4,740 | |
Total shareholders' equity of the Trust | 3,191,881 | 3,171,594 | |
Noncontrolling interests | 72,385 | 72,550 | |
Total shareholders' equity | 3,264,266 | 3,244,144 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,621,850 | $ 8,524,757 | |
Federal Realty Investment Trust | |||
Consolidated Income Statements | |||
March 31, 2025 | |||
Three Months Ended | |||
March 31, | |||
2025 | 2024 | ||
(in thousands, except per share data) | |||
(unaudited) | |||
REVENUE | |||
Rental income | $ 302,294 | $ 283,986 | |
Other property income | 6,585 | 7,059 | |
Mortgage interest income | 275 | 278 | |
Total revenue | 309,154 | 291,323 | |
EXPENSES | |||
Rental expenses | 67,804 | 61,659 | |
Real estate taxes | 36,567 | 34,060 | |
General and administrative | 10,875 | 12,006 | |
Depreciation and amortization | 86,946 | 83,404 | |
Total operating expenses | 202,192 | 191,129 | |
Gain on sale of real estate | 1,171 | — | |
OPERATING INCOME | 108,133 | 100,194 | |
OTHER INCOME/(EXPENSE) | |||
Other interest income | 743 | 1,483 | |
Interest expense | (42,475) | (43,693) | |
Income from partnerships | 177 | 32 | |
NET INCOME | 66,578 | 58,016 | |
Net income attributable to noncontrolling interests | (2,810) | (1,280) | |
NET INCOME ATTRIBUTABLE TO THE TRUST | 63,768 | 56,736 | |
Dividends on preferred shares | (2,008) | (2,008) | |
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ 61,760 | $ 54,728 | |
EARNINGS PER COMMON SHARE, BASIC AND DILUTED: | |||
Net income available for common shareholders | $ 0.72 | $ 0.66 | |
Weighted average number of common shares | 85,472 | 82,605 | |
Federal Realty Investment Trust | ||||
Funds From Operations | ||||
March 31, 2025 | ||||
Three Months Ended | ||||
March 31, | ||||
2025 | 2024 | |||
(in thousands, except per share data) | ||||
Funds from Operations available for common shareholders (FFO) | ||||
Net income | $ 66,578 | $ 58,016 | ||
Net income attributable to noncontrolling interests | (2,810) | (1,280) | ||
Gain on sale of real estate | (1,171) | — | ||
Depreciation and amortization of real estate assets | 76,498 | 73,938 | ||
Amortization of initial direct costs of leases | 9,077 | 7,737 | ||
Funds from operations | 148,172 | 138,411 | ||
Dividends on preferred shares (1) | (1,875) | (1,875) | ||
Income attributable to downREIT operating partnership units | 669 | 692 | ||
Income attributable to unvested shares | (490) | (503) | ||
FFO | $ 146,476 | $ 136,725 | ||
Weighted average number of common shares, diluted (1)(2) | 86,177 | 83,334 | ||
FFO per diluted share (2) | $ 1.70 | $ 1.64 | ||
Notes: | |
(1) | For the three months ended March 31, 2025 and 2024, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average number of common shares, diluted." |
(2) | The weighted average common shares used to compute FFO per diluted common share includes downREIT operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted share for all periods presented, but is anti-dilutive for the computation of diluted EPS. |
Investor Inquiries: Jill Sawyer Senior Vice President, Investor Relations 301.998.8265 | Media Inquiries: Brenda Pomar Senior Director, Corporate Communications 301.998.8316 |
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SOURCE Federal Realty Investment Trust
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