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Federal Realty (FRT) Boosts Portfolio With Shopping Centre Buyout
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Federal Realty Investment Trust (FRT - Free Report) recently announced the acquisition of a 100% interest in the Twinbrooke Shopping Centre in Fairfax, VA. The retail REIT sourced this acquisition off-market for $33.8 million in cash. The acquisition is a strategic fit for the company, given the scope for value creation through remerchandising and capital investment.
This 110,000-square-foot grocery-anchored neighborhood shopping center on 10 acres is likely to witness decent footfall for its advantageous location. It is situated at the intersection of Braddock Road (VA Route 620), a main east-west thoroughfare offering access to the DC beltway (I-495), and Twinbrook Road. Presently, the property is 86% occupied, and anchored by Safeway and Walgreens.
Federal Realty has been capitalizing on expansion opportunities in premium markets, which generates income growth and creates long-term value. So far in the year, the company has acquired 5 properties, aggregating 1.9 million square feet and 135 acres, at a gross value of $441 million of which Federal will own an average 82% interest.
According to Don Wood, chief executive officer of Federal Realty, "Throughout the pandemic, our teams have remained focused on identifying growth and value-enhancing opportunities, and our acquisitions group is no exception as evidenced by the 5 properties we've accretively acquired in 2021."
Management also noted that since the opening of the company’s Northern Virginia office in 2019, Federal Realty has acquired off-market 4 shopping centers in Fairfax County, comprising a total of 324,000 square feet. This comes as part of the company’s effort to boost its position in the thriving sub-market.
Federal Realty has an expertise in improving a property’s operating performance through redevelopment, merchandising and capital investment. The improving economy is raising hopes, and the strategic acquisitions poise the retail REIT to bank on the rebound. In fact, the upscale geographic location of the company’s properties, a diversified tenant base, focus on essential retail and mixed-use assets, and balance-sheet strengthening moves will help it ride high.
The Zacks Consensus Estimate for Simon Property Group’s (SPG - Free Report) current-year FFO per share estimate has moved up 2.4% to $10.82 in the past month. The company carries a Zacks Rank of 2, currently.
Regency Centers Corporation (REG - Free Report) holds a Zacks Rank of 2, at present. The Zacks Consensus Estimate for its 2021 FFO per share has been revised 8.5% upward to $3.70 in a month’s time.
The Zacks Consensus Estimate for SITE Centers Corp.’s (SITC - Free Report) ongoing-year FFO per share has moved 2.8% north to $1.10 over the past month. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Federal Realty (FRT) Boosts Portfolio With Shopping Centre Buyout
Federal Realty Investment Trust (FRT - Free Report) recently announced the acquisition of a 100% interest in the Twinbrooke Shopping Centre in Fairfax, VA. The retail REIT sourced this acquisition off-market for $33.8 million in cash. The acquisition is a strategic fit for the company, given the scope for value creation through remerchandising and capital investment.
This 110,000-square-foot grocery-anchored neighborhood shopping center on 10 acres is likely to witness decent footfall for its advantageous location. It is situated at the intersection of Braddock Road (VA Route 620), a main east-west thoroughfare offering access to the DC beltway (I-495), and Twinbrook Road. Presently, the property is 86% occupied, and anchored by Safeway and Walgreens.
Federal Realty has been capitalizing on expansion opportunities in premium markets, which generates income growth and creates long-term value. So far in the year, the company has acquired 5 properties, aggregating 1.9 million square feet and 135 acres, at a gross value of $441 million of which Federal will own an average 82% interest.
According to Don Wood, chief executive officer of Federal Realty, "Throughout the pandemic, our teams have remained focused on identifying growth and value-enhancing opportunities, and our acquisitions group is no exception as evidenced by the 5 properties we've accretively acquired in 2021."
Management also noted that since the opening of the company’s Northern Virginia office in 2019, Federal Realty has acquired off-market 4 shopping centers in Fairfax County, comprising a total of 324,000 square feet. This comes as part of the company’s effort to boost its position in the thriving sub-market.
Federal Realty has an expertise in improving a property’s operating performance through redevelopment, merchandising and capital investment. The improving economy is raising hopes, and the strategic acquisitions poise the retail REIT to bank on the rebound. In fact, the upscale geographic location of the company’s properties, a diversified tenant base, focus on essential retail and mixed-use assets, and balance-sheet strengthening moves will help it ride high.
Shares of this Zacks Rank #2 (Buy) company have gained 42% so far in the year, outperforming the industry's 22.7% rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Zacks Consensus Estimate for Simon Property Group’s (SPG - Free Report) current-year FFO per share estimate has moved up 2.4% to $10.82 in the past month. The company carries a Zacks Rank of 2, currently.
Regency Centers Corporation (REG - Free Report) holds a Zacks Rank of 2, at present. The Zacks Consensus Estimate for its 2021 FFO per share has been revised 8.5% upward to $3.70 in a month’s time.
The Zacks Consensus Estimate for SITE Centers Corp.’s (SITC - Free Report) ongoing-year FFO per share has moved 2.8% north to $1.10 over the past month. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.