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Investing.com - UBS maintained its Neutral rating and $103.00 price target on Federal Realty Investment Trust (NYSE:FRT) following a tour of the company’s Assembly Row development in Somerville, Massachusetts. The REIT, currently trading at $100.45, shows a price-to-earnings ratio of 25.4x and offers a 4.5% dividend yield. According to InvestingPro analysis, the company appears slightly overvalued at current levels, though it maintains an impressive 53-year streak of consecutive dividend payments.
The tour, hosted by Federal Realty’s CFO, showcased the company’s mixed-use strategy and future redevelopment opportunities at the site, which is located approximately two and a half miles from downtown Boston. With a market capitalization of $8.7 billion and a solid financial health score rated as "GOOD" by InvestingPro, the company demonstrates strong operational capabilities. Discover more insights about FRT and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively on InvestingPro.
Assembly Row, named after the Ford assembly plant and test track that previously occupied the location, was initially acquired by Federal Realty when the company purchased a power center that was only about 50% occupied, along with adjacent parcels.
Federal Realty later expanded its ownership by purchasing additional land and securing a 5 million square foot master plan permit on 42 acres, which includes 2 million square feet of office space, 500,000 square feet of retail, and apartments.
UBS noted that Federal Realty has created a "live, work, play community" at Assembly Row that drives higher rents across all property types, with multiple lots available for additional buildings and potential redevelopment of the on-site power center into mixed-use properties.
In other recent news, Federal Realty Investment Trust reported impressive financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved earnings per share of $1.78, significantly higher than the forecasted $0.73, representing a surprise increase of 143.84%. Additionally, Federal Realty’s revenue reached $311.52 million, exceeding the anticipated $310.38 million. In another development, Evercore ISI downgraded Federal Realty’s stock rating from Outperform to Underperform. The research firm adjusted its price target slightly upward to $107.00 from $106.00. Evercore ISI attributed the downgrade to the stock’s recent outperformance, suggesting limited upside potential compared to other stocks in its coverage. These updates provide a snapshot of Federal Realty’s current financial and market positioning.
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