Federal Realty Q2 net income rises, boosts 2025 guidance

Overview

• Federal Realty Q2 net income rises to $153.9 mln, $1.78 per share

• FFO per share increases to $1.91, including new market tax credit (NMTC) transaction income

• Company raises 2025 earnings and FFO guidance

Outlook

• Federal Realty raises 2025 earnings guidance to $3.91-$4.01 per share

• Company expects 2025 FFO per share of $7.16-$7.26

• Company highlights strategic EV charging partnership with Mercedes-Benz

Result Drivers

• LEASING GROWTH - Signed 119 leases for 643,810 sq ft of retail space on comparable basis, achieving 10% cash basis rollover growth

• OCCUPANCY IMPROVEMENT - Overall portfolio occupancy increased by 50 basis points year-over-year to 93.6%

• TRANSACTION INCOME - FFO included $13 mln from new market tax credit transaction income, boosting results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Federal Realty Investment Trust is $109.50, about 14.7% above its August 5 closing price of $93.39

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nPn9T2Dtpa