It has been about a month since the last earnings report for Federal Realty Investment Trust (FRT Quick QuoteFRT - Free Report) . Shares have added about 12.6% in that time frame, outperforming the S&P 500.

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

Federal Realty's Q4 FFO & Revenues Beat Estimates

Federal Realty’s fourth-quarter 2020 adjusted FFO per share of $1.14 surpassed the Zacks Consensus Estimate of $1.07. Results reflect better-than-anticipated revenues. Quarterly revenues of $219.5 million topped the consensus mark of $208.9 million.

According to Donald C. Wood, the company’s president and chief executive officer, though quarterly and yearly results were affected by COVID, “the sheer volume of leasing and other transactions” executed at the end of 2020, together with “the continuing strong leasing demand” for its real estate as “evidenced by the many substantive discussions” with prospective tenants makes it well poised for a post COVID recovery with vaccines rollout to a larger chunk of the population.

However, the reported FFO per share decreased from the $1.58 reported in the year-ago quarter. In addition, revenues fell 8.2% year on year in the fourth quarter. The pandemic’s adverse impact and the resultant collectability-related impacts caused these year-over-year declines.

Nevertheless, the situation has now improved from the initial days of the pandemic, and the company noted that though all 101 of its properties are open and operational, roughly 98% of its retail tenants based on annualized base rent are open and operational as of Jan 31, 2021. It has also collected about 89% of total fourth-quarter 2020 billed recurring rents as of that date.

For 2020, the company reported adjusted FFO per share of $4.52, down from the prior year’s $6.33. Total revenues of $835.5 million slid 10.7% year on year.

Quarter in Details

During the reported quarter, Federal Realty signed 103 leases for 468,901 square feet of retail space. On a comparable space basis, the company leased 449,783 square feet at an average rent of $32.16 per square foot. This denotes cash-basis rollover growth of 1%, 11% on a straight-line basis.

As of Dec 31, 2020, the REIT’s overall portfolio was 92.2% leased. As of the same date, the comparable property portfolio was 92.1% leased.

Balance Sheet

Federal Realty exited 2020 with cash and cash equivalents of $798.3 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 $1.8 billion. Moreover, it has no public bonds maturing until 2023.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -5.48% due to these changes.

VGM Scores

Currently, Federal Realty Investment Trust has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Federal Realty Investment Trust has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.