Why Is Federal Realty Investment Trust (FRT) Up 3.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Federal Realty Investment Trust (FRT). Shares have added about 3.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Federal Realty Investment Trust due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Federal Realty Beats on Q2 FFO & Revenues, Raises View

Federal Realty posted second-quarter 2018 FFO per share of $1.55, beating the Zacks Consensus Estimate of $1.53. Also, the reported figure compares favorably with the prior-year quarter tally of $1.49.

Results indicate solid leasing activity leading to healthy occupancy at its properties. Further, management noted that continued growth in property operating income (POI), as well as new retail and mixed-use openings support its dividend hike for 51 consecutive years.

Total revenues for the quarter grew 8.1% year over year to $224.9 million. However, the top line missed the Zacks Consensus Estimate of $227.9 million.

Quarter in Details

During the quarter under review, on a comparable space basis, Federal Realty signed 106 lease deals for 474,578 square feet of space. The leases were signed at an average rent of $34.75 per square feet, denoting cash-basis roll-over growth of 10%.

As of Jun 30, 2018, the company's overall portfolio was 95% leased, up from 94.5% as on Jun 30, 2017. Comparable property portfolio was 95.5% leased as of Jun 30, 2018, up from 95.3% as on Jun 30, 2017.

In addition, POI for comparable properties climbed 3.6% for the June-end quarter.

Federal Realty exited second-quarter 2018 with cash and cash equivalents of approximately $56.1 million, significantly up from $15.2 million posted at the end of 2017.


For 2018, Federal Realty increased its FFO per share guidance to $6.13-$6.23 from $6.08-$6.24.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Federal Realty Investment Trust has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our style scores.


Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Federal Realty Investment Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Federal Realty Investment Trust (FRT): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More