Rockville, MD-based Federal Realty is a real estate investment trust (REIT) that owns, manages, develops and redevelops premium retail and mixed-use properties in the United States. The assets — community and neighborhood shopping centers and mixed-use properties — are mainly concentrated over strategically-selected metropolitan markets in the Northeast and Mid-Atlantic regions of the nation, California and South Florida. Federal Realty’s retail properties are anchored by supermarkets, drug stores or high-volume, value-oriented retailers, which provide consumer necessities.
As of Sep 30, 2020, the company had 104 properties that included around 2,800 tenants in 24 million square feet, and approximately 2,800 residential units. In total, the real estate projects were 91.5% leased and 90.0% occupied as of that date.
In January 2020, Federal Realty acquired a 49,000-square-foot shopping center in Fairfax, VA, for $22.3 million. This property is next to, and will be operated as part of the company’s Fairfax Junction property. Moreover, in February 2020, the company acquired two buildings aggregating 12,000 square feet in Hoboken, NJ, for $14.3 million, including an assumption of $8.9 million of mortgage debt.
The company focuses on investing in densely populated, well-off communities where retail demand is high. Moreover, mixed-use developments have gained popularity in recent years and the company targets creating urban, mixed-use neighborhoods like Santana Row in San Jose, CA, Pike & Rose in North Bethesda, MD, and Assembly Row in Somerville, MA.
Note: All EPS numbers presented in this report represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.