Federal Realty (FRT) Price Target Raised to $125 at Ladenburg amid Retail REIT Re-Rating

Federal Realty Investment Trust (NYSE:FRT) is included among the 15 Best Stocks to Buy Now for Passive Income.

On March 5, Ladenburg raised its price recommendation on Federal Realty Investment Trust (NYSE:FRT) to $125 from $115. It kept a Buy rating on the shares. The firm said the higher target reflects the re-rating of the shopping center sector in 2026.

During the company’s Q4 2025 earnings call, CEO Donald Wood said the company closed the year on a strong note and entered 2026 with solid momentum. He pointed to 6.4% bottom-line FFO growth in the fourth quarter and 4.3% growth for the full year. Guidance for 2026 suggests growth of about 6% at the midpoint. Wood noted that these figures exclude the one-time benefit from a new market tax credit, which is now reflected in the company’s updated Core FFO metric.

Wood also spoke about leasing activity across the portfolio. The portfolio ended the year 96.6% leased and 94.5% occupied. During the quarter, the company completed 601,000 square feet of comparable leasing deals at 12% rollover spreads. For the full year, Federal Realty signed 2.3 million square feet of comparable deals at 15% rollover. These agreements add about $11 million in additional annual rent now under contract.

On the investment side, Wood said the company acquired Annapolis Town Center and Village Pointe. Together, the properties add nearly one million square feet and were purchased for about $340 million. According to Wood, the deals carry an initial yield in the low 7% range and are expected to generate unlevered internal rates of return close to 9%. He also said the company continued to recycle capital through property sales. During the quarter, Federal Realty completed $169 million in dispositions, followed by another $150 million shortly after year-end. The transactions were completed at combined cap rates in the low 5% range.

Wood also announced plans for a residential development at Willow Grove Shopping Center that will include 261 apartment units. He said combining high-quality residential units with retail properties can create meaningful long-term value and added that the company plans to continue pursuing this strategy while recycling assets.

Federal Realty Investment Trust (NYSE:FRT) is an equity real estate investment trust. The company focuses on owning, operating, and redeveloping retail-based properties, mainly in major coastal markets and selected underserved regions with strong economic and demographic fundamentals.

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