Federal Realty Sells Misora at Santana Row as Part of Ongoing Capital Recycling Program

Rhea-AI Summary

Federal Realty (NYSE: FRT) sold Misora Apartments, a 212-unit Class A residential asset at Santana Row in San Jose, for $148.5 million on Feb. 5, 2026, and sold Courthouse Center in Rockville for $10.0 million. These transactions raise Federal Realty's recent capital recycling to nearly $475 million at a blended cap rate in the low 5% range and are intended to support long-term growth initiatives and reinvestment in higher-return opportunities while preserving financial flexibility.

Positive

• Misora sale for $148.5M unlocks liquidity from a 212-unit Santana Row asset
• Recent dispositions bring total proceeds to nearly $475M at a blended cap rate in the low 5% range
• Proceeds earmarked to support long-term growth initiatives and reinvestment in higher-return opportunities

Negative

• None.

News Market Reaction

+0.87%

1 alert

+0.87% News Effect

On the day this news was published, FRT gained 0.87%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Misora sale price: $148.5 million Misora units: 212 units Courthouse Center price: $10.0 million +5 more

8 metrics

Misora sale price $148.5 million Sale of 212-unit Misora Apartments at Santana Row, Feb. 2026

Misora units 212 units Class A residential community at Santana Row sold by FRT

Courthouse Center price $10.0 million Sale of 33,000-square-foot neighborhood shopping center in Rockville, MD

Courthouse Center size 33,000 square feet Neighborhood shopping center disposition

Recent disposition proceeds Nearly $475 million Cumulative capital recycling proceeds over past several quarters

Village Pointe purchase price $153.3 million Acquisition announced Dec. 1, 2025

Village Pointe GLA 453,000 square feet Open-air lifestyle center in Omaha, NE

Village Pointe annual visits 6 million Reported annual visit count for Village Pointe

Market Reality Check

Price: $104.80 Vol: Volume 671,041 is below t...

normal vol

$104.80 Last Close

Volume Volume 671,041 is below the 20-day average of 794,227 (relative volume 0.84x). normal

Technical Trading above 200-day MA: price 104.85 vs MA(200) 97.53, indicating a pre-news uptrend.

Peers on Argus

FRT was up 1.21% pre-release. Key retail REIT peers also showed gains (e.g., ADC...

FRT was up 1.21% pre-release. Key retail REIT peers also showed gains (e.g., ADC +2.38%, EPRT +3.28%, NNN +1.49%), but the momentum scanner did not flag a broad sector move.

Common Catalyst One peer (ADC) had dividend-related news, but most peer strength appears unrelated to FRT’s specific capital recycling announcement.

Historical Context

5 past events · Latest: Jan 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 23	Tax distribution detail	Neutral	-0.2%	Disclosure of 2025 tax treatment for common and preferred distributions.
Jan 08	Earnings date set	Neutral	-1.1%	Announcement of Q4 2025 earnings release date and conference call.
Dec 17	Asset dispositions	Positive	-0.1%	Completed <b>$170 million</b> of dispositions supporting capital recycling strategy.
Dec 01	Retail acquisition	Positive	-0.4%	Acquisition of Village Pointe in Omaha for <b>$153.3 million</b> lifestyle center.
Nov 10	Board appointment	Positive	+2.4%	Appointment of Joseph D. Fisher to Board and key committees.

Pattern Detected

Recent strategic transactions (dispositions and acquisitions) and governance changes have generally seen modest immediate price reactions, with one stronger positive move on a board appointment.

Recent Company History

Over the past several months, Federal Realty reported tax details for 2025 distributions, announced its Q4 2025 earnings date, executed $170 million of asset dispositions on Dec. 17, 2025, acquired Village Pointe for $153.3 million on Dec. 1, 2025, and added Joseph D. Fisher to the Board effective Jan 1, 2026. Today’s news extends that pattern of active capital recycling, following the December dispositions and prior mixed-use acquisitions.

Market Pulse Summary

This announcement highlights Federal Realty’s continued execution on its capital recycling program, ...

Analysis

This announcement highlights Federal Realty’s continued execution on its capital recycling program, including the $148.5 million sale of Misora and $10.0 million for Courthouse Center, bringing recent disposition proceeds to nearly $475 million. In context of earlier moves such as the $153.3 million Village Pointe acquisition and prior dispositions, it underlines a shift toward higher-return opportunities. Investors may focus on future reinvestment details and resulting earnings and cap-rate profiles.

Key Terms

cap rate, form 3, form 4, 8-k, +4 more

8 terms

cap rate financial

"a blended cap rate in the low 5% range."

The cap rate is a way to estimate how much money a real estate investment might generate relative to its purchase price. Think of it as a measure of the property's annual income divided by its value, helping investors compare different properties quickly. A higher cap rate generally indicates a potentially higher return but may also come with more risk.

form 3 regulatory

"Form 3] FEDERAL REALTY INVESTMENT TRUST Initial Statement of Beneficial Ownership"

Form 3 is the initial public filing that officers, directors and large shareholders must submit to report their ownership of a company’s securities when they become insiders. It acts like an opening inventory sheet that gives investors a starting point to see who holds significant stakes and to spot later trades or potential conflicts of interest, helping assess insider confidence and transparency.

form 4 regulatory

"Form 4] FEDERAL REALTY INVESTMENT TRUST Insider Trading Activity"

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

8-k regulatory

"[8-K] FEDERAL REALTY INVESTMENT TRUST Reports Material Event"

An 8-K is a public report companies must file with the U.S. Securities and Exchange Commission to disclose major events or changes that shareholders should know about, such as leadership changes, mergers, financial surprises, or legal developments. It matters to investors because it acts like a breaking-news alert for a company’s health and prospects—providing timely facts that can affect stock value and investment decisions.

10-q regulatory

"[10-Q] FEDERAL REALTY INVESTMENT TRUST Quarterly Earnings Report"

A 10-Q is a company’s required quarterly filing with U.S. regulators that provides updated financial statements, management discussion of results, and disclosures about risks, legal matters and operational changes. Think of it as a quarterly report card and progress update that lets investors track recent performance, spot trends or warning signs between annual reports, and make informed buy/sell decisions based on the latest verified financial and business information.

accordion feature financial

"term loan agreement that allows it to borrow up to $250 million, with an accordion feature"

An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.

sofr financial

"Interest is floating, based on SOFR or a base rate plus a margin"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

atm equity program financial

"The amended ATM equity program has $750.0 million of capacity"

An at‑the‑market (ATM) equity program is a way a company sells its own shares directly into the open market, bit by bit, at prevailing market prices instead of issuing a large block all at once. Think of it like a faucet the company can turn on when it needs cash; it provides flexible funding but can dilute existing shareholders and put downward pressure on the stock if used heavily, so investors watch size and timing closely.

AI-generated analysis. Not financial advice.

Proceeds support long-term growth initiatives; transaction brings recent capital recycling activity to $475M at attractive yields

NORTH BETHESDA, Md., Feb. 5, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the sale of Misora Apartments, a 212-unit Class A residential community at Santana Row in San Jose, California, for $148.5 million.

Misora, a peripherally located residential component of Santana Row, marks Federal Realty's first sizeable disposition of 2026. The company also completed the sale of Courthouse Center, a 33,000-square-foot neighborhood shopping center located in Rockville, Maryland for $10.0 million.

These transactions follow a series of asset sales completed in 2025, including Levare Apartments at Santana Row, Pallas at Pike & Rose, and select mature retail assets such as Hollywood Boulevard in Los Angeles, California and Bristol Plaza in Bristol, Connecticut. Collectively, Federal Realty has generated nearly $475 million of disposition proceeds over the past several quarters at a blended cap rate in the low 5% range.

"We've been doing this for decades: pruning, reinvesting, and staying patient when the environment demands it," said Don Wood, President and CEO of Federal Realty. "That discipline, combined with the embedded value in our portfolio, creates a meaningful cost of capital advantage and allows us to reinvest in higher-return opportunities while preserving financial flexibility."

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. As of September 30, 2025, Federal Realty's 103 properties include approximately 3,600 tenants in 27.9 million commercial square feet, and approximately 3,000 residential units. 

Federal Realty has increased its quarterly dividends to its shareholders for 58 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.

Investor Inquiries: Jill Sawyer Senior Vice President, Investor Relations 301.998.8265 jsawyer@federalrealty.com

Media Inquiries: Brenda Pomar Senior Director, Corporate Communications 301.998.8316 bpomar@federalrealty.com

 

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SOURCE Federal Realty Investment Trust

FAQ

What did Federal Realty (FRT) sell at Santana Row on February 5, 2026?

Federal Realty sold Misora Apartments, a 212-unit Class A residential community, for $148.5 million. According to the company, the sale is part of its ongoing capital recycling program to fund growth and redeploy capital into higher-return opportunities.

How much total disposition proceeds has Federal Realty (FRT) generated recently?

Federal Realty has generated nearly $475 million of disposition proceeds over recent quarters. According to the company, those proceeds were achieved at a blended cap rate in the low 5% range and support reinvestment and balance-sheet flexibility.

What other asset did Federal Realty (FRT) sell alongside Misora on Feb. 5, 2026?

The company completed the sale of Courthouse Center, a 33,000-square-foot neighborhood shopping center in Rockville, for $10.0 million. According to the company, this transaction complements prior 2025 dispositions in the firm’s recycling program.

What is Federal Realty (FRT)'s stated purpose for these dispositions?

The stated purpose is to prune and reinvest—recycling capital into higher-return opportunities while preserving financial flexibility. According to the company, this disciplined approach creates a cost-of-capital advantage for future investments.

How might the Misora sale affect Federal Realty (FRT)'s capital allocation strategy?

The sale provides $148.5 million of cash to redeploy toward growth initiatives and higher-return projects. According to the company, the transaction is consistent with its multi-quarter capital recycling program that has generated nearly $475 million in proceeds.