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Federal Realty Investment Trust (FRT) Down 0.6% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Federal Realty Investment Trust (FRT - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Federal Realty Investment Trust due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Federal Realty Q4 FFO Meets, Revenues Beat Estimates

Federal Realty posted fourth-quarter 2018 FFO per share of $1.57, in line with the Zacks Consensus Estimate. Also, the reported figure compares favorably with the prior-year tally of $1.30.

Results reflect growth in revenues. The company witnessed rise in property operating income and lease rollover for comparable properties.

Total revenues for the quarter grew 5.1% year over year to $235.38 million. Moreover, the top-line figure surpassed the Zacks Consensus Estimate of $234.16 million.

Quarter in Details

During the reported quarter, Federal Realty signed 114 leases for 622,234 square feet of retail space. On a comparable space basis, the company leased 573,923 square feet at an average rent of $32.16 per square foot. This denoted cash-basis rollover growth of 15%.

As of Dec 31, 2018, the company’s overall portfolio was 94.6% leased, slightly down from 95.3% as on Dec 31, 2018. Comparable property portfolio was 95.1% leased as of Dec 31, 2018, down from 95.9% as on Dec 31, 2017. In addition, property operating income (POI) for comparable properties climbed 2% for the fourth quarter.

Federal Realty exited 2018 with cash and cash equivalents of approximately $64.1 million, significantly up from $15.2 million posted at the end of 2017.

Outlook

For 2019, Federal Realty issued FFO per share guidance of $6.30-$6.46. This reflects the impact of the recently-implemented lease accounting standard ASC 842.

Dividend Update

Federal Realty announced a quarterly cash dividend of $1.02 per share. The dividend will be paid on Apr 15, to shareholders on record as of Mar 14, 2019.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, Federal Realty Investment Trust has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Federal Realty Investment Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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