|
|||||
![]() |
|
NORTH BETHESDA, Md., Aug. 6, 2025 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today reported its results for the second quarter ended June 30, 2025. For the three months ended June 30, 2025 and 2024, net income available for common shareholders was $1.78 per diluted share and $1.32 per diluted share, respectively. Operating income for the same periods was $202.7 million and $157.0 million, respectively.
Highlights for the second quarter and subsequent to quarter-end include:
"Our second quarter results were strong, and we feel great about the back half of the year – driving our confidence to raise guidance," said Donald C. Wood, Federal Realty's Chief Executive Officer. "Our consumer remains healthy, tenant credit is strong, and we're staying sharply focused on disciplined capital allocation. Our new partnership with Mercedes-Benz HCP further reinforces the strength of our premium brand and the caliber of companies that choose to partner with us."
Financial Results
Net Income
For the second quarter 2025, net income available for common shareholders was $153.9 million and earnings per diluted share was $1.78 versus $110.0 million and $1.32, respectively, for the second quarter 2024.
FFO
For the second quarter 2025, FFO was $165.5 million, or $1.91 per diluted share, which includes $13.0 million, or $0.15 per share, of NMTC transaction income. Excluding this income, FFO was $1.76 per diluted share. This compares to $141.3 million, or $1.69 per diluted share for the second quarter 2024.
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 June 30, 2025:
The residential leased rate was 96.9% as of June 30, 2025.
Leasing Activity
During the second quarter 2025, Federal Realty signed 122 leases for 653,366 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 119 leases for 643,810 square feet at an average rent of $37.98 per square foot, compared to the average contractual rent of $34.39 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 10%, and 21% on a straight-line basis. Comparable leases represented 98% of total comparable and non-comparable retail leases signed during the second quarter 2025.
Transaction Activity
Development
Federal Realty commenced construction on Lot 12 at Santana Row, a 258-unit residential project with an expected total investment of approximately $145 million.
Other Activity
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees increased the regular quarterly cash dividend to $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on October 15, 2025 to common shareholders of record as of October 1, 2025. This increase represents the 58th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector.
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on October 15, 2025 to shareholders of record as of October 1, 2025.
2025 Guidance
Federal Realty has raised and tightened its 2025 guidance, as summarized in the table below:
Full Year 2025 Guidance | Revised Guidance | Prior Guidance |
2025 Earnings per diluted share | $3.91 to $4.01 | $3.00 to $3.12 |
2025 FFO per diluted share | $7.16 to $7.26 | $7.11 to $7.23 |
2025 FFO per diluted share, excluding NMTC transaction income | $7.01 to $7.11 | $6.96 to $7.08 |
Conference Call Information
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its second quarter 2025 earnings conference call, which is scheduled for Wednesday, August 6, 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 August 20, 2025 by dialing 844-512-2921 or 412-317-6671; Passcode: 10201012.
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. Federal Realty's 102 properties include approximately 3,500 tenants in 27 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.
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:
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 and subsequent quarterly reports on Form 10-Q.
Federal Realty Investment Trust | |||
Consolidated Balance Sheets | |||
June 30, 2025 | |||
June 30, | December 31, | ||
2025 | 2024 | ||
(in thousands, except share and | |||
(unaudited) | |||
ASSETS | |||
Real estate, at cost | |||
Operating (including $1,824,341 and $1,825,656 of consolidated variable interest | $ 10,721,587 | $ 10,363,961 | |
Construction-in-progress (including $20,665 and $9,939 of consolidated variable | 324,435 | 539,752 | |
11,046,022 | 10,903,713 | ||
Less accumulated depreciation and amortization (including $445,556 and $424,044 of | (3,250,219) | (3,152,799) | |
Net real estate | 7,795,803 | 7,750,914 | |
Cash and cash equivalents | 177,003 | 123,409 | |
Accounts and notes receivable, net | 225,936 | 229,080 | |
Mortgage notes receivable, net | 9,118 | 9,144 | |
Investment in partnerships | 33,133 | 33,458 | |
Operating lease right of use assets, net | 84,517 | 85,806 | |
Finance lease right of use assets, net | 6,520 | 6,630 | |
Prepaid expenses and other assets | 291,764 | 286,316 | |
TOTAL ASSETS | $ 8,623,794 | $ 8,524,757 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Liabilities | |||
Mortgages payable, net (including $184,155 and $186,643 of consolidated variable | $ 511,951 | $ 514,378 | |
Notes payable, net | 614,631 | 601,414 | |
Senior notes and debentures, net | 3,360,925 | 3,357,840 | |
Accounts payable and accrued expenses | 192,122 | 183,564 | |
Dividends payable | 97,186 | 96,743 | |
Security deposits payable | 34,032 | 30,941 | |
Operating lease liabilities | 73,618 | 74,837 | |
Finance lease liabilities | 12,842 | 12,783 | |
Other liabilities and deferred credits | 225,196 | 227,827 | |
Total liabilities | 5,122,503 | 5,100,327 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 181,191 | 180,286 | |
Shareholders' equity | |||
Preferred shares, authorized 15,000,000 shares, $.01 par: | |||
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation | 150,000 | 150,000 | |
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation | 9,822 | 9,822 | |
Common shares of beneficial interest, $.01 par, 200,000,000 shares authorized, | 869 | 862 | |
Additional paid-in capital | 4,302,220 | 4,248,824 | |
Accumulated dividends in excess of net income | (1,216,794) | (1,242,654) | |
Accumulated other comprehensive income | 2,912 | 4,740 | |
Total shareholders' equity of the Trust | 3,249,029 | 3,171,594 | |
Noncontrolling interests | 71,071 | 72,550 | |
Total shareholders' equity | 3,320,100 | 3,244,144 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,623,794 | $ 8,524,757 |
Federal Realty Investment Trust | |||||||
Consolidated Income Statements | |||||||
June 30, 2025 | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
REVENUE | |||||||
Rental income | $ 302,477 | $ 287,095 | $ 604,771 | $ 571,081 | |||
Other property income | 8,769 | 8,680 | 15,354 | 15,739 | |||
Mortgage interest income | 277 | 277 | 552 | 555 | |||
Total revenue | 311,523 | 296,052 | 620,677 | 587,375 | |||
EXPENSES | |||||||
Rental expenses | 61,609 | 58,891 | 129,413 | 120,550 | |||
Real estate taxes | 36,681 | 35,289 | 73,248 | 69,349 | |||
General and administrative | 11,925 | 12,092 | 22,800 | 24,098 | |||
Depreciation and amortization | 89,241 | 85,049 | 176,187 | 168,453 | |||
Total operating expenses | 199,456 | 191,321 | 401,648 | 382,450 | |||
Gain on sale of real estate | 76,501 | 52,280 | 77,672 | 52,280 | |||
New market tax credit transaction income | 14,176 | — | 14,176 | — | |||
OPERATING INCOME | 202,744 | 157,011 | 310,877 | 257,205 | |||
OTHER INCOME/(EXPENSE) | |||||||
Other interest income | 905 | 1,051 | 1,648 | 2,534 | |||
Interest expense | (44,598) | (44,312) | (87,073) | (88,005) | |||
Income from partnerships | 905 | 905 | 1,082 | 937 | |||
NET INCOME | 159,956 | 114,655 | 226,534 | 172,671 | |||
Net income attributable to noncontrolling interests | (4,040) | (2,673) | (6,850) | (3,953) | |||
NET INCOME ATTRIBUTABLE TO THE TRUST | 155,916 | 111,982 | 219,684 | 168,718 | |||
Dividends on preferred shares | (2,008) | (2,008) | (4,016) | (4,016) | |||
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ 153,908 | $ 109,974 | $ 215,668 | $ 164,702 | |||
EARNINGS PER COMMON SHARE, BASIC: | |||||||
Net income available for common shareholders | $ 1.78 | $ 1.32 | $ 2.51 | $ 1.98 | |||
Weighted average number of common shares | 85,969 | 82,932 | 85,722 | 82,768 | |||
EARNINGS PER COMMON SHARE, DILUTED: | |||||||
Net income available for common shareholders | $ 1.78 | $ 1.32 | $ 2.51 | $ 1.98 | |||
Weighted average number of common shares | 86,611 | 83,563 | 86,300 | 82,768 |
Federal Realty Investment Trust | ||||||||
Funds From Operations | ||||||||
June 30, 2025 | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
(in thousands, except per share data) | ||||||||
Funds from Operations available for common shareholders (FFO) | ||||||||
Net income | $ 159,956 | $ 114,655 | $ 226,534 | $ 172,671 | ||||
Net income attributable to noncontrolling interests | (4,040) | (2,673) | (6,850) | (3,953) | ||||
Gain on sale of real estate | (76,501) | (52,280) | (77,672) | (52,280) | ||||
Depreciation and amortization of real estate assets | 78,598 | 75,157 | 155,096 | 149,095 | ||||
Amortization of initial direct costs of leases | 9,358 | 8,179 | 18,435 | 15,916 | ||||
Funds from operations | 167,371 | 143,038 | 315,543 | 281,449 | ||||
Dividends on preferred shares (1) | (1,875) | (1,875) | (3,750) | (3,750) | ||||
Income attributable to downREIT operating partnership units | 603 | 688 | 1,272 | 1,380 | ||||
Income attributable to unvested shares | (559) | (514) | (1,049) | (1,017) | ||||
FFO (2) | $ 165,540 | $ 141,337 | $ 312,016 | $ 278,062 | ||||
Weighted average number of common shares, diluted (1)(3) | 86,611 | 83,657 | 86,393 | 83,495 | ||||
FFO per diluted share (2)(3) | $ 1.91 | $ 1.69 | $ 3.61 | $ 3.33 | ||||
Notes: | |
(1) | For the three and six months ended June 30, 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) | FFO available for common shareholders includes new market tax credit transaction income, net of noncontrolling interest of $13.0 million. Excluding this income, FFO for the three and six months ended June 30, 2025 would have been $152.6 million and $299.1 million, respectively, and FFO per diluted share would have been $1.76 per share and $3.46 per share, respectively. |
(3) | 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 for the six months ended June 30, 2024. 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 for the six months ended June 30, 2024. |
Investor Inquiries: Jill Sawyer Senior Vice President, Investor Relations 301.998.8265 | Media Inquiries: Brenda Pomar Senior Director, Corporate Communications 301.998.8316 |
SOURCE Federal Realty Investment Trust
7 hours | |
14 hours | |
Aug-06 | |
Aug-06 | |
Aug-06 | |
Aug-06 | |
Aug-05 | |
Aug-04 | |
Jul-31 | |
Jul-30 | |
Jul-29 | |
Jul-29 | |
Jul-28 | |
Jul-26 | |
Jul-22 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite