Valued at a market cap of $9.4 billion, Federal Realty Investment Trust (FRT) owns, operates, and redevelops high-quality retail-based properties located primarily in major coastal markets in the U.S. The Rockville, Maryland-based company invests in densely populated, well-off communities where retail demand is high.
Shares of this REIT have underperformed the broader market over the past 52 weeks. FRT has gained 22.5% over this time frame, while the broader S&P 500 Index ($SPX) has risen 30.1%. Moreover, on a YTD basis, the stock has gained 9.8%, relative to SPX’s nearly 24.1% increase.
Zooming in further, FRT has outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 19.9% gains over the past 52 weeks and 8.5% returns on a YTD basis.
Shares of FRT fell 3% after its mixed Q3 earnings release on Oct. 30. The company reported an FFO of $1.71 per share, which increased 3.6% from a year ago but marginally fell short of the Wall Street estimates of $1.72. The FFO miss can be primarily attributed to higher property-level expenses and lower-than-expected term fees. However, FRT’s revenue grew 5.9% year over year to $303.6 million, surpassing the consensus estimates of $301.2 million.
For the current fiscal year, ending in December, analysts expect FRT’s FFO to increase 3.8% year over year to $6.80. The company’s surprise history is mixed. It beat or met the consensus estimates in two of the last four quarters while missing on other two occasions.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 10 “Strong Buy,” one “Moderate Buy,” and five “Hold” ratings.
The configuration is slightly more bullish than three months ago, with nine analysts suggesting a “Strong Buy.”
On Sep. 16, Evercore ISI raised FRT’s price target to $123 and maintained an “Outperform” rating. This represents an 8.7% upside from the current levels.
The mean price target of $123.67 represents a premium of 9.3% to FRT’s current levels, while the Street-high price target of $135 suggests an upside potential of 19.3%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Should You Buy, Sell, or Skip Semtech Stock Ahead of Q3 Earnings?
- A New Decentralized Paradigm Offers a Super High-Risk, High-Reward Opportunity in Blockmate Ventures
- 1 'Strong Buy' AI Server Stock to Buy Instead of Super Micro Computer
- Gap's Turnaround Gains Steam, But is the Stock a Buy?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
