Federal Realty Misses Q4 FFO Estimates, Guides Higher for 2026

Federal Realty Investment Trust’s FRT fourth-quarter 2025 core funds from operations per share of $1.84 missed the Zacks Consensus Estimate of $1.86. It compares favorably with the prior-year quarter’s FFO of $1.76.

Quarterly revenues of $336.1 million topped the consensus mark of $329.0 million and improved 1.9% year over year.

Results reflect a rise in comparable property operating income (POI), healthy leasing activity and growth in comparable portfolio occupancy.

In 2025, FRT recorded a historic high in total leasing activity, executing 2.5 million square feet of retail leases. The company also delivered its strongest comparable rent spreads in more than 10 years, with a 15% increase on a cash basis and a 27% increase on a straight-line basis.

For full-year 2025, core FFO came in at $7.06 per share, up 4.3% from $6.77 in 2024. Revenues increased 6.4% year over year to $1.28 billion.

Behind FRT’s Q4 Headlines

Federal Realty generated 3.1% comparable POI growth, excluding lease termination fees and prior-period rents collected. 

In terms of leasing, during the reported quarter, Federal Realty signed 109 leases for 612,978 square feet of retail space. On a comparable space basis, the company signed 105 leases for 600,684 square feet of space at an average rent of $39.09 per square foot. This represents a 12% increase on a cash basis and a 24% increase on a straight-line basis.

On the operational front, the comparable portfolio occupancy rate was up 50 basis points (bps) year over year to 94.5% as of Dec. 31, 2025. The comparable portfolio was 96.6% leased as of the same date, reflecting an increase of 40 bps year over year.

Sustained robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.8%, marking an increase of 50 bps sequentially. The small-shop leased rate was 93.8%, up 20 bps year over year, while the anchor leased rate was 97.3%, down 20 bps year over year. Federal Realty’s residential properties were 94.8% leased as of the same date.

On the balance sheet front, Federal Realty ended the quarter with roughly $1.3 billion of total liquidity, including cash and availability under its revolving credit facility, supporting its development and acquisition pipeline.

Q4 Portfolio Activity of FRT

During the fourth quarter, Federal Realty completed the acquisition of two properties for a combined $340 million, expanding into a new market with the purchase of Village Pointe in Omaha, NE, while strengthening its existing Maryland presence through the acquisition of Annapolis Town Center in Annapolis, MD.

The company also executed $169 million of dispositions related to peripheral residential and mature retail assets during the quarter, with an additional $159 million of sales announced after quarter-end. 

FRT unveiled a redevelopment initiative at Willow Grove in Willow Grove, PA, with an estimated investment of $110-$120 million and an expected return on investment (ROI) of 7%.

FRT’s Dividend Payout

Concurrent with the fourth-quarter earnings release, Federal Realty maintained its regular quarterly cash dividend of $1.13 per share, indicating an annualized rate of $4.52 per share, reinforcing its position as a consistent dividend grower. The dividend will be paid out on April 15 to its shareholders of record as of April 1, 2026.

FRT’s 2026 Guidance

For full-year 2026, Federal Realty expects its core FFO per share in the range of $7.42-$7.52, implying 5.1-6.5% growth from the 2025 levels. The Zacks Consensus Estimate of $7.42 lies within the guided range.

The retail REIT’s full-year assumptions include expectations for comparable properties growth of 3.0-3.5% and incremental redevelopment/expansion POI of $13-$15 million.

FRT’s Zacks Rank

Federal Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Federal Realty Investment Trust Price, Consensus and EPS Surprise

Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote

Performance of Other Retail REITs

Kimco Realty Corp. KIM reported fourth-quarter 2025  FFO per share of 44 cents, meeting the Zacks Consensus Estimate. The metric grew 4.8% from the year-ago quarter. Kimco clocked in revenues of $542.5 million, which outpaced the consensus mark of $538.3 million. The figure improved 3.3% year over year.

Kimco’s results reflect higher same-property NOI, driven by improved occupancy and a rise in minimum rents. This retail REIT issued its 2026 FFO per share guidance.

Regency Centers Corporation REG reported fourth-quarter 2025 NAREIT FFO per share of $1.17, in line with the Zacks Consensus Estimate. The figure increased 7.3% from the prior-year quarter. Total revenues of $404.2 million rose 8.5% from the year-ago period. The figure surpassed the Zacks Consensus Estimate of $395 million.

Regency Centers’ results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter. Regency Centers issued its 2026 NAREIT FFO per share outlook.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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