Federal Realty acquires Annapolis Town Center for $187 million

NORTH BETHESDA, Md. - Federal Realty Investment Trust (NYSE:FRT), an $8.3 billion market cap retail REIT currently trading at a P/E ratio of 24.22, acquired Annapolis Town Center, a 480,000-square-foot open-air shopping destination in Anne Arundel County, Maryland, for $187 million on October 10, the company announced Monday.

The property is anchored by Whole Foods and shadow-anchored by Target, featuring additional tenants including Life Time luxury athletic club, Anthropologie, Sephora, Restoration Hardware, and Williams Sonoma.

"This is exactly the kind of opportunity we target: a dominant asset with strong fundamentals, competitive positioning, and the potential to unlock further value under our ownership," said Don Wood, President & CEO of Federal Realty.

The acquisition aligns with Federal Realty’s strategy of investing in well-located retail centers with strong demographics and value-creation potential. The company plans to drive performance through operational improvements, merchandising, and capital investment.

This purchase follows several recent acquisitions by Federal Realty, including Town Center Plaza and Town Center Crossing in Leawood, Kansas (July 2025), Virginia Gateway in Gainesville, Virginia (May 2024), and Shops at Pembroke Gardens in Pembroke Pines, Florida (July 2022).

The company reports active leasing momentum across these properties, with multiple new tenants signed. At Town Center Plaza and Town Center Crossing, Federal has executed or is processing 10 leases totaling 80,000 square feet, including LEGO and Coach. Virginia Gateway has seen 25 leases totaling 140,000 square feet since acquisition.

Federal Realty, founded in 1962, owns 102 properties comprising approximately 27 million commercial square feet and 3,000 residential units. The company has increased its quarterly dividends for 53 consecutive years, currently offering a 4.73% yield. Want deeper insights? InvestingPro subscribers get access to exclusive analysis, Fair Value estimates, and 12+ additional ProTips for Federal Realty, along with comprehensive research reports available for 1,400+ US stocks.

In other recent news, Federal Realty Investment Trust reported stronger-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) reached $1.78, significantly surpassing the forecasted $0.73, resulting in a surprise of 143.84%. Additionally, revenue exceeded expectations, coming in at $311.52 million compared to the forecast of $310.38 million. Despite these positive financial results, several analysts have adjusted their ratings for Federal Realty. Deutsche Bank downgraded the stock from Buy to Hold, citing limited upside potential. Similarly, Evercore ISI downgraded the stock from Outperform to Underperform, though they slightly increased their price target to $107.00. Meanwhile, UBS maintained its Neutral rating and a price target of $103.00 after a tour of the company’s Assembly Row development. These developments highlight the mixed sentiment among analysts regarding Federal Realty’s future prospects.

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