Valued at a market cap of $8.8 billion, Federal Realty Investment Trust (FRT) owns, operates and redevelops high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. The North Bethesda, Maryland-based company is scheduled to announce its fiscal Q4 earnings for 2025 in the near future.
Ahead of this event, analysts expect this retail REIT to report a profit of $1.85 per share, up 6.9% from $1.73 per share in the year-ago quarter. The company has met or topped Wall Street’s bottom-line estimates in each of the last four quarters. In Q3, its FFO of $1.77 per share exceeded the consensus estimates by a slight margin.
For the current fiscal year, ending in December, analysts expect FRT to report an FFO of $7.23 per share, up 6.8% from $6.77 per share in fiscal 2024. Furthermore, its FFO is expected to grow 2.5% year-over-year to $7.41 in fiscal 2026.
FRT has declined 1.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 18.6% return and the State Street Real Estate Select Sector SPDR ETF’s (XLRE) 3.4% uptick over the same time period.
On Oct. 31, shares of FRT rose 1.4% after its better-than-expected Q3 earnings release. Due to strong growth in rental income, the company’s total revenue increased 6.1% year-over-year to $322.3 million, surpassing consensus estimates by 2.7%. Moreover, its FFO per share of $1.77 improved 3.5% from the same period last year, topping Wall Street forecasts of $1.76.
Wall Street analysts are moderately optimistic about FRT’s stock, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, nine recommend "Strong Buy," one indicates a "Moderate Buy,” and nine suggest "Hold.” The mean price target for FRT is $110.69, indicating an 8.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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