Federal Realty Investment Trust
) touched a 52-week high of $121.01 towards the end of the trading
session on Monday, Jun 2, 2014, as it gained momentum following
strong first-quarter 2014 results. The closing price of $120.86 of
this retail real estate investment trust (REIT) represented a
robust year-to-date return of 20.6%. The average trading volume for
the session was around 0.29 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the improving retail market
fundamentals and expected year-over-year funds from operations
(FFO) per share growth of 6.72% for 2014.
Federal Realty bounced back with its earnings surprise streak in
first-quarter 2014, after posting in-line results in the prior
quarter, thanks to strong core operating properties' performance.
In particular, the company's portfolio of Class A shopping centers
along with the diversified tenant base, comprising grocery stores
and low-end discount retailers, position it well to maintain the
Moreover, Federal Realty has been capitalizing on expansion
opportunities in premium markets, which generate high-income growth
and long-term value creation potential. In connection to this, the
acquisition of New Jersey-based premium assets in the quarter and
the leasing and development progress at 3 properties - Pike &
Rose, Assembly Row and The Point - bode well for Federal
On May 8, 2014, Federal Realty posted first-quarter 2014 funds
from operations (FFO) per share of $1.21, surpassing the Zacks
Consensus Estimate of $1.19 by 1.7% and the year-ago quarter figure
of $1.14 by 6.1%. Higher revenues, rent escalations and improved
same-store portfolio performance aided the results.
Over the last 30 days, the Zacks Consensus Estimate for 2014 and
2015 remained stable at $4.92 and $5.36 per share,
Other Stocks to Consider
Apart from Federal Realty, other retail REITs that reached
52-week highs on Jun 2 include
Simon Property Group Inc.
General Growth Properties, Inc
The Macerich Company
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
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