Federal Realty (FRT) Target Cut Slightly as Scotiabank Refreshes REIT Outlook

Federal Realty Investment Trust (NYSE:FRT) is included among the 13 Best Dividend Kings to Buy in 2026.

On January 14, Scotiabank trimmed its price target on Federal Realty Investment Trust (NYSE:FRT) to $113 from $114 and maintained an Outperform rating on the stock. The analyst said the firm is refreshing price targets across the US Real Estate and REIT names it covers ahead of the Q4 earnings season. Scotiabank also pointed to Self Storage and Multifamily as two areas where buy-side sentiment has been improving, with the view that both sectors are less likely to disappoint when companies issue FY26 guidance.

Federal Realty has also been showing up more often in bullish conversations on Wall Street. In a CNBC report published on December 31, analysts noted that while real estate struggled through much of 2025, Federal Realty stood out as a name that may be overlooked going into 2026. Jefferies analyst Linda Tsai reportedly called the company a top idea for 2026 and upgraded the stock to Buy.

A big part of the optimism centers on Federal Realty’s capital recycling strategy. The company has been selling mature, long-held retail assets and redeploying that capital into higher-quality growth opportunities. On December 17, Federal Realty announced it had sold a residential building in North Bethesda, Maryland, along with a grocery-anchored shopping center in Bristol, Connecticut, for roughly $170 million combined. On the reinvestment side, the trust has also been active, including a $153.3 million acquisition of Village Pointe in Omaha, Nebraska. That property is home to well-known tenants such as Apple, Coach, and Sephora.

Federal Realty Investment Trust (NYSE:FRT) is an equity REIT that focuses on owning, operating, and redeveloping retail-based real estate. Its portfolio is concentrated in major coastal markets, along with select underserved regions where economic conditions and demographic trends remain supportive.

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