Federal Realty increases share offering to $750M

Federal Realty Investment Trust (NYSE:FRT), currently valued at $9.57 billion by market capitalization, has announced an increase in its share offering potential to $750 million, as disclosed in a recent SEC filing.

On Thursday, the company amended its existing equity distribution agreement, which was originally dated February 14, 2022, and first amended on March 8, 2024. According to InvestingPro data, the company's stock is trading near its 52-week high of $118.34, with short-term obligations exceeding liquid assets.

According to the filing, the company, along with Federal Realty OP LP, its operating partnership, entered into the second amendment of the distribution agreement with a consortium of financial institutions. This amendment allows for the sale of common shares up to an aggregate offering price of $750 million, an increase from the previous limit of $500 million.

Since the first amendment, the company has sold 3,183,181 shares, amounting to approximately $355.6 million. The company has maintained dividend payments for 53 consecutive years, currently offering a dividend yield of 3.93%.

In conjunction with the amendment, Federal Realty has filed a prospectus supplement on February 14, 2025, superseding the previous supplement filed on March 8, 2024. This move effectively terminates the offering under the earlier prospectus.

The SEC filing also detailed compensation arrangements for Daniel Guglielmone, the company's Executive Vice President-Chief Financial Officer and Treasurer. Effective February 12, 2025, Guglielmone's compensation includes a base salary of $650,000, an annual bonus target of 150% of his base salary, and an annual target under the long-term incentive award program of $1,500,000.

Federal Realty Investment Trust, based in North Bethesda, Maryland, operates as a real estate investment trust specializing in the ownership, management, and redevelopment of high-quality retail properties. The company's portfolio includes community and neighborhood shopping centers and mixed-use properties.

InvestingPro analysis indicates the company has achieved 5.41% revenue growth in the last twelve months, though it's currently trading at a relatively high P/E ratio of 32.19x. For a comprehensive analysis of FRT's valuation and growth prospects, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on the company's SEC filing.

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