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Federal Realty (FRT) Q3 FFO and Revenues Surpass Estimates
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Federal Realty Investment Trust’s (FRT - Free Report) third-quarter 2020 funds from operations (FFO) per share of $1.12 surpassed the Zacks Consensus Estimate of $1.10. Moreover, quarterly revenues of $208.2 million topped the consensus mark of $206.3 million.
According to Donald C. Wood, the company’s president and chief executive officer, "Progress in many respects was the theme of the third quarter." He also noted about "improving rent collections” as well as “leasing volumes at pre-COVID levels”.
However, the reported FFO per share decreased from the $1.43 reported in the year-ago quarter. In addition, revenues fell 11% year on year. The pandemic’s adverse impact and the resultant collectability related adjustment issues caused this year-over-year declines.
Nevertheless, the situation has now improved from the beginning of the pandemic, and the company noted that though all 104 of its properties are open and operational, roughly 97% of retail tenants based on annualized base rent are open and operational as of Oct 30. It has also collected about 85% of the third quarter and 85% of October billed recurring rents as of that date.
Quarter in Details
During the reported quarter, Federal Realty signed 101 leases for 481,105 square feet of retail space. On a comparable space basis, the company leased 471,726 square feet at an average rent of $37.38 per square foot. This denotes cash-basis rollover growth of a negative 1%. Also, the company signed 13 leases for 63,609 square feet of office space during the third quarter.
As of Sep 30, 2020, the REIT’s overall portfolio was 92.2% leased. As of the same date, the comparable property portfolio was 92% leased.
Balance Sheet
Federal Realty exited third-quarter 2020 with cash and cash equivalents of $863.3 million, up from the $127.4 million recorded at the end of 2019. Along with undrawn availability under its $1-billion revolving credit facility, the company’s liquidity amounted to $1.9 billion. Following the quarter end, the company also issued $400 million of green bonds.
Dividend Update
Concurrent with its third-quarter 2020 earnings release, Federal Realty announced its regular quarterly cash dividend to $1.06 per share. It indicates an annual rate of $4.24 per share. The dividend will be paid out on Jan 15, to shareholders of record as of Jan 4, 2021.
Federal Realty currently carries a Zacks Rank #4 (Sell).
Recently, Kimco Realty Corp. (KIM - Free Report) reported third-quarter 2020 FFO of 25 cents per share, marginally missing the Zacks Consensus Estimate of 26 cents. The FFO per share also came in lower than the year-ago quarter’s 35 cents.Results reflected a decline in same-property net operating income, mainly affected by a charge for potentially uncollectible accounts receivable. The company also witnessed a decline in occupancy due to the tenant bankruptcies.
We, now, look forward to the earnings releases of other REITs like Simon Property Group, Inc. (SPG - Free Report) and Taubman Centers, Inc. , which will report on Nov 9.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Federal Realty (FRT) Q3 FFO and Revenues Surpass Estimates
Federal Realty Investment Trust’s (FRT - Free Report) third-quarter 2020 funds from operations (FFO) per share of $1.12 surpassed the Zacks Consensus Estimate of $1.10. Moreover, quarterly revenues of $208.2 million topped the consensus mark of $206.3 million.
According to Donald C. Wood, the company’s president and chief executive officer, "Progress in many respects was the theme of the third quarter." He also noted about "improving rent collections” as well as “leasing volumes at pre-COVID levels”.
However, the reported FFO per share decreased from the $1.43 reported in the year-ago quarter. In addition, revenues fell 11% year on year. The pandemic’s adverse impact and the resultant collectability related adjustment issues caused this year-over-year declines.
Nevertheless, the situation has now improved from the beginning of the pandemic, and the company noted that though all 104 of its properties are open and operational, roughly 97% of retail tenants based on annualized base rent are open and operational as of Oct 30. It has also collected about 85% of the third quarter and 85% of October billed recurring rents as of that date.
Quarter in Details
During the reported quarter, Federal Realty signed 101 leases for 481,105 square feet of retail space. On a comparable space basis, the company leased 471,726 square feet at an average rent of $37.38 per square foot. This denotes cash-basis rollover growth of a negative 1%. Also, the company signed 13 leases for 63,609 square feet of office space during the third quarter.
As of Sep 30, 2020, the REIT’s overall portfolio was 92.2% leased. As of the same date, the comparable property portfolio was 92% leased.
Balance Sheet
Federal Realty exited third-quarter 2020 with cash and cash equivalents of $863.3 million, up from the $127.4 million recorded at the end of 2019. Along with undrawn availability under its $1-billion revolving credit facility, the company’s liquidity amounted to $1.9 billion. Following the quarter end, the company also issued $400 million of green bonds.
Dividend Update
Concurrent with its third-quarter 2020 earnings release, Federal Realty announced its regular quarterly cash dividend to $1.06 per share. It indicates an annual rate of $4.24 per share. The dividend will be paid out on Jan 15, to shareholders of record as of Jan 4, 2021.
Federal Realty currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Realty Investment Trust Price, Consensus and EPS Surprise
Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote
Recently, Kimco Realty Corp. (KIM - Free Report) reported third-quarter 2020 FFO of 25 cents per share, marginally missing the Zacks Consensus Estimate of 26 cents. The FFO per share also came in lower than the year-ago quarter’s 35 cents.Results reflected a decline in same-property net operating income, mainly affected by a charge for potentially uncollectible accounts receivable. The company also witnessed a decline in occupancy due to the tenant bankruptcies.
We, now, look forward to the earnings releases of other REITs like Simon Property Group, Inc. (SPG - Free Report) and Taubman Centers, Inc. , which will report on Nov 9.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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