Shares of Federal Realty Investment Trust ( FRT ) touched a 52-week
high of $113.72 at the end of the trading session on Friday, Apr
12, 2013, as it gained momentum following the disclosure of
noteworthy expansion moves in the recent months. The closing price
of this real estate investment trust (REIT) represented a solid
year-to-date return of 8.7%. The average trading volume over the
last 3 months was 0.24 million shares.
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock
has plenty of upside left, given its strong fundamentals and
strategic portfolio repositioning efforts.
Federal Realty reported better-than-expected fourth-quarter 2012
results with FFO (funds from operations) and revenues beating the
Zacks Consensus Estimate. The results were aided by improved
performance in the same-store portfolio and decent top-line growth.
The company's recent efforts to enhance its reach in the best
locations in key markets in the U.S. are also encouraging.
This month, Federal Realty acquired a Darien, CT-based shopping
center for $47.3 million. The acquired property, which was anchored
by Walgreen Co. ( WAG ), Stop & Shop
grocer and an Equinox health club, marks the company's strategic
expansion into the New York commuter suburbs. Earlier too, Federal
Realty acquired a property, East Bay Bridge Shopping Center,
located on the Emeryville and Oakland border for $53.7 million. We
expect these activities to help increase Federal Realty's share in
top U.S. markets, characterized by strong demographics and high
barriers to entry.
On Feb 12, Federal Realty reported fourth-quarter 2012 FFO per
share of $1.11, exceeding the Zacks Consensus Estimate by a cent
and the prior-year quarter figure by 14 cents. For full-year 2012,
Federal Realty's FFO came in at $4.31 per share. This exceeded the
Zacks Consensus Estimate of $4.30 per share and the year-ago
quarter figure of $4.00 per share.
Over the last 60 days, the Zacks Consensus Estimate for
full-year 2013 and 2014 has moved up by 0.7% and 0.4% to $4.58 and
$4.89 per share, respectively.
Last week, a number of other REITs also crafted 52-week highs.
These include Prologis Inc. ( PLD ) and CBRE
Group Inc. ( CBG ).
Note: 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.CBRE GROUP INC (CBG): Free Stock Analysis
ReportFED RLTY INV (FRT): Free Stock Analysis ReportPROLOGIS INC (PLD): Free Stock Analysis ReportWALGREEN CO (WAG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment