Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - JPMorgan downgraded Federal Realty Investment Trust (NYSE:FRT) stock rating from Overweight to Neutral on Monday, setting a price target of $108.00. According to InvestingPro data, the REIT currently trades at a P/E ratio of 27.59x and offers a dividend yield of 4.61%.
The ratings change for the retail-focused real estate investment trust comes despite JPMorgan’s continued positive view of Federal Realty’s portfolio strength and long-term positioning within the REIT sector. The company has maintained dividend payments for 53 consecutive years and currently holds a GOOD Financial Health Score on InvestingPro, with revenue growing at 6.05% over the last twelve months.
JPMorgan cited several factors for the downgrade, including the firm’s current preference within retail for companies with highly visible development and redevelopment pipelines driving bottom-line growth.
While acknowledging Federal Realty has a contributing pipeline today, JPMorgan believes development "will be less of a focus for the company going forward," according to the research note.
The firm also noted that Federal Realty’s stock appears attractive on metrics including implied capitalization rate when compared to both strip center REITs and the broader REIT group.
In other recent news, Federal Realty Investment Trust reported its first-quarter earnings for 2025, showing a strong performance with earnings per share (EPS) of $0.72, slightly exceeding the forecast of $0.71. The company’s revenue also surpassed expectations, reaching $309.15 million compared to the anticipated $307.59 million. Federal Realty raised its full-year funds from operations (FFO) per share guidance to a range of $7.11 to $7.23, reflecting confidence in its operations and strategic initiatives. UBS lowered its price target for Federal Realty to $103.00 from $118.00, maintaining a Neutral rating due to concerns about the company’s growth projections and exposure to the Washington D.C. market. Additionally, Federal Realty announced an amendment to the severance agreement with its Chief Financial Officer, Daniel Guglielmone, which was disclosed in a recent SEC filing. During the company’s annual shareholder meeting, all trustees were elected, executive compensation was approved, and Grant Thornton LLP was ratified as the independent auditor for 2025. These developments highlight Federal Realty’s strategic adjustments and financial performance amid ongoing market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.