1. FRT's Q1 net income per share increased to $0.72. 2. Funds from Operations (FFO) rose to $1.70 per diluted share. 3. Portfolio occupancy improved by 180 basis points year-over-year. 4. FRT initiated a $300 million share repurchase program. 5. Raised 2025 FFO guidance to $7.11-$7.23 per share.
The growth in FFO and net income demonstrates robust operational performance, akin to past successful quarters that positively influenced stock price.
The increase in earnings, new share buyback program, and raised FFO guidance indicate strong financial health, significantly boosting investor sentiment toward FRT.
Immediate effects from the reported results and share buyback program are likely, similar to prior quarterly performances boosting investor confidence.
Federal Realty Investment Trust (NYSE:FRT) today reported its results for the first quarter ended March 31, 2025. For the three months ended March 31, 2025 and 2024, net income available for common shareholders was $0.72 per diluted share and $0.66 per diluted share, respectively. Operating income for the same periods was $108.1 million and $100.2 million, respectively.
"We started the year with strong operating results and are encouraged to see continuing elevated foot traffic across our properties," said Donald C. Wood, Federal Realty's Chief Executive Officer. "Decades of experience have taught us how to insulate our portfolio against economic cycles and disruptive forces. With irreplaceable real estate and a high-quality, diverse tenant base in affluent markets, we are well positioned for continued growth and stability."
For the first quarter 2025, net income available for common shareholders was $61.8 million and earnings per diluted share was $0.72 versus $54.7 million and $0.66, respectively, for the first quarter 2024.
For the first quarter 2025, FFO was $146.5 million, or $1.70 per diluted share, compared to $136.7 million, or $1.64 per diluted share for the first quarter 2024. FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
The following operational metrics for the commercial portfolio are as of March 31, 2025:
During the first quarter 2025, Federal Realty signed 91 leases for 429,865 square feet of retail space. On a comparable space basis, Federal Realty signed 87 leases for 368,759 square feet at an average rent of $40.63 per square foot, compared to the average contractual rent of $38.51 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 6%, and 17% on a straight-line basis. Comparable leases represented 96% of total comparable and non-comparable retail leases signed during the first quarter 2025.
Federal Realty closed on the previously announced $123.5 million acquisition of Del Monte Shopping Center in Monterey, California on February 25, 2025.
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.10 per common share, resulting in an indicated annual rate of $4.40 per common share. The regular common dividend will be payable on July 15, 2025 to common shareholders of record as of July 1, 2025.
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on July 15, 2025 to shareholders of record as of July 1, 2025.
Federal Realty has raised its 2025 FFO guidance, as summarized in the table below:
| Full Year 2025 Guidance | Revised Guidance | Prior Guidance |
|---|---|---|
| 2025 Earnings per diluted share | $3.00 to $3.12 | $3.00 to $3.12 |
| 2025 FFO per diluted share | $7.11 to $7.23 | $7.10 to $7.22 |
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its first quarter 2025 earnings conference call, which is scheduled for Thursday, May 8, 2025 at 5:00 PM ET. To participate, please call 833-821-4548 or 412-652-1258 five to ten minutes prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website. A telephonic replay of the conference call will also be available through May 22, 2025 by dialing 844-512-2921 or 412-317-6671; Passcode: 10197791.
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 103 properties include approximately 3,500 tenants, in 27 million commercial square feet, and approximately 3,100 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 13, 2025 and include the following:
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 13, 2025.
March 31, 2025
March 31, 2024
(in thousands, except share and per share data)
(unaudited)
Real estate, at cost
Operating (including $1,817,974 and $1,825,656 of consolidated variable interest entities, respectively)
$10,521,108
$10,363,961
$8,621,850
$8,524,757
Liabilities
Mortgages payable, net (including $184,813 and $186,643 of consolidated variable interest entities, respectively)
$512,579
$514,378
$8,621,850
$8,524,757