Moving Stock to Focus: Federal Realty Investment Trust (NYSE: FRT)


Shares of Federal Realty Investment Trust (NYSE: FRT) closed with gain/decline of +0.89% to $122.90. Recent traded volume was 257,258 shares versus to it an average volume of 404,981 shares. The company holds 73.49M shares outstanding and market cap of 9.125B. The stock day range was recorded between a low of $121.79 and a high $123.28.

Federal Realty Investment Trust (FRT) recently stated operating results for its second quarter ended June 30, 2018.  Highlights of the quarter and recent activity include:

  • Generated earnings per diluted share of $0.84for the quarter contrast to $1.05 in second quarter 2017, which included a $0.26 gain on sale of real estate.
  • Generated funds from operations accessible for ordinary shareholders (FFO) per diluted share of $1.55for the quarter contrast to $1.49 in second quarter 2017.
  • Generated comparable property property operating income (POI) growth of 3.6% for the second quarter.
  • Signed leases for 449,247 sf of comparable space (474,578 sf total) in the second quarter at an average rent of $34.75psf and achieved cash basis rollover growth on those comparable spaces of 10%.
  • Raised the regular quarterly dividend rate on ordinary shares to $1.02per share, representing the 51st consecutive year of ordinary dividend raises.
  • Raised 2018 FFO per diluted share guidance range to $6.13- $6.23.

Financial Results

  • Net income accessible for ordinary shareholders was $61.6Mand earnings per diluted share was $0.84 for second quarter 2018 versus $76.2M and $1.05, respectively, for second quarter 2017 which included a $0.26 gain on sale of real estate.
  • In second quarter 2018, Federal Realty generated FFO of $114.8M, or $1.55per diluted share. This compares to FFO of $108.6M, or $1.49 per diluted share, in second quarter 2017.
  • FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance.  A reconciliation of FFO to net income is attached to this press release.

Portfolio Results

  • In second quarter 2018, comparable property POI raised 3.6%. Comparable property POI represents our consolidated property portfolio other than those properties that distort comparability between periods in two primary categories (1) assets that were not owned for the full quarter in both periods presented and (2) assets presently under development or being repositioned for important redevelopment and investment.
  • The overall portfolio was 95.0% leased as of June 30, 2018, contrast to 94.8% on March 31, 2018and 94.5% on June 30, 2017.  Federal Realty’s comparable portfolio was 95.5% leased on June 30, 2018, contrast to 95.3% on March 31, 2018 and June 30, 2017.
  • During second quarter 2018, Federal Realty signed 106 leases for 474,578 square feet of retail space.  On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty leased 449,247 square feet at an average cash basis contractual rent raise (i.e., not including the impact of straight-line rents) of 10%.  The average contractual rent on this comparable space for the first year of the new leases is $34.75per square foot contrast to the average contractual rent of $31.61 per square foot for the last year of the previous leases. The previous average contractual rent was calculated by including both the minimum rent and any percentage rent actually paid during the last year of the lease term for the re-leased space.  On a straight-line basis, rent raises for comparable retail space averaged 20% for second quarter 2018.

Regular Quarterly Dividends

  • Federal Realty also reported recently that its Board of Trustees raised the regular dividend rate on its ordinary shares, declaring a regular quarterly cash dividend of $1.02per share, resulting in an indicated yearly rate of $4.08 per share.  The regular ordinary dividend will be payable on October 15, 2018, to ordinary shareholders of record on September 21, 2018. This raise represents the 51st consecutive year that Federal Realty has raised its ordinary dividend, the longest record of consecutive yearly dividend raises in the REIT sector, and one of only a small number of companies in any sector to accomplish such a record.
  • Federal Realty’s Board of Trustees also reported a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125per depositary share. All dividends on the depositary shares will be payable on October 15, 2018 to shareholders of record as of October 1, 2018.


The stock price is moving down from its 20 days moving average with -0.30% and isolated negatively from 50 days moving average with -3.06%. (FRT) EPS growth ratio for the past five years was 6.20% while Sales growth for the past five years was 7.20%. Return on equity (ROE) was noted as 13.20% while return on investment (ROI) was 5.90%. The stock’s institutional ownership stands at 98.30%.