Federal Realty Q1 FFO per share rises on record leasing, raises 2026 view

Overview

• US retail property REIT's Q1 rental income and FFO per share rose over prior year

• Company reported record leasing activity and 4.7% comparable property income growth

• Company raised 2026 earnings and FFO per share guidance

Outlook

• Federal Realty raises 2026 earnings per diluted share guidance to $3.94-$4.03 from $3.90-$4.00

• Company lifts 2026 Nareit FFO and Core FFO per diluted share guidance to $7.46-$7.55

• Federal Realty expects 2026 Core FFO growth of 5.7%-6.9% over prior year

Result Drivers

• RECORD LEASING ACTIVITY - Co signed a first-quarter record 101 leases for 649,078 sq ft of comparable retail space, driving rent growth of 13% on a cash basis and 23% on a straight-line basis

• COMPARABLE PROPERTY INCOME GROWTH - Comparable property operating income rose 4.7%, with adjusted growth of 5.1%

• HIGH OCCUPANCY - Portfolio occupancy was 93.8% and leased rate 96.1% at quarter end, with year-over-year increases

Company press release: ID:nPn9HZkY3a

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", 9 "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 $116.00, about 4.6% above its April 30 closing price of $110.90

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago

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