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NORTH BETHESDA - Federal Realty Investment Trust (NYSE:FRT) reported third quarter earnings that fell short of analyst expectations on Friday, despite posting revenue that exceeded forecasts.
The company’s shares edged down 0.39% in pre-market trading following the announcement.
The real estate investment trust reported earnings per share of $0.69 for the third quarter, missing the analyst consensus of $0.80 by $0.11. However, revenue came in at $322.25 million, surpassing expectations of $315.74 million. The company’s quarterly revenue also increased 6.1% compared to the same period last year when it reported $303.63 million.
Federal Realty achieved funds from operations (FFO) of $1.77 per diluted share, representing a 3.5% increase from $1.71 in the third quarter of 2024. The company reported strong leasing activity with a record 727,029 square feet of comparable retail space leased across 123 deals, achieving rent growth of 28% on a cash basis and 43% on a straight-line basis.
"Our third quarter performance reflects the strength of our portfolio and the discipline of our strategy," said Donald C. Wood, Chief Executive Officer of Federal Realty. "Record leasing volume and some of the strongest rent spreads in our history underscore the demand for our properties and the power of our platform."
The company’s comparable portfolio occupancy stood at 94.0% at quarter end, up 20 basis points YoY, while the leased rate was 95.7%, down 10 basis points YoY. Comparable property operating income grew 4.4%, excluding lease termination fees and prior period rents collected.
Federal Realty raised its 2025 FFO guidance to $7.05-$7.11 per share (excluding one-time tax credit income), representing 4.6% growth at the midpoint compared to the previous year. The company also updated its 2025 earnings per diluted share guidance to $3.93-$3.99.
The REIT declared a quarterly dividend of $1.13 per common share, maintaining its 58-year streak of consecutive dividend increases, which it notes is the longest in the REIT industry.
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