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What's in Store for Federal Realty (FRT) This Earnings Season?
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Federal Realty Investment Trust (FRT - Free Report) is set to report fourth-quarter and full-year 2021 results on Feb 10 after the bell. The company’s quarterly results will likely display increases in both revenues and funds from operations (FFO) per share.
In the last reported quarter, this retail REIT reported a surprise of 17.97% in terms of FFO per share. Results reflected better-than-anticipated revenues.
Over the last four quarters, Federal Realty surpassed estimates on all occasions, the average beat being 15.19%. The graph below depicts the surprise history of the company:
Federal Realty Investment Trust Price and EPS Surprise
Let’s see how things have shaped up before this announcement.
Key Factors
Per a report from CBRE Group, total retail sales increased 16.9% year over year in the fourth quarter, reflecting the strength of a strong holiday shopping season in 2021. The fourth quarter marked the fifth consecutive quarter of positive retail absorption (+20.6 million square feet). Also, the average asking rent improved 1.6% year over year to $21.87 per square foot in the fourth quarter as prime space grew scarce.
The overall retail availability rate shrunk by 30 basis points in the December-end quarter to a 10-year low of 5.6%. New construction deliveries remained muted in the fourth quarter, with 23.5 million square feet delivered in 2021, down 36% year over year. The scarcity of new prime space has fueled occupancy levels and aided growth in rents.
Federal Realty is anticipated to have benefited from the recovery in the retail real estate market. The company has a portfolio of premium retail assets, mainly situated in major coastal markets from Washington, D.C. to Boston, San Francisco and Los Angeles. FRT has strategically selected first-ring suburbs of major metropolitan markets. Due to strong demographics and the infill nature of its properties, the company has been able to maintain a high occupancy level over the years. Moreover, its focus on the open-air format and “The Pick-Up” concept is likely to have helped the company attract tenants in the fourth quarter amid the prevailing health crisis.
With widespread vaccination, resumption of the economy and solid consumer spending, this retail REIT is anticipated to have benefited from its superior assets in premium locations and witnessed an improvement in the leasing environment.
In the fourth quarter, the company announced that a long-term lease to occupy 105,000 square feet of space in 915 Meeting Street has been signed by Choice Hotels International, Inc. This is a new 276,000-square-foot trophy office building to be built at the mixed-use development of Pike & Rose in North Bethesda, MD.
The Zacks Consensus Estimate for quarterly revenues is pegged at $249.15 million, calling for a 13.5% increase from the year-ago period. The consensus mark for rental revenues is pegged at $243 million, suggesting a rise from the year-ago period’s $218 million.
Federal Realty’s activities during the soon-to-be-reported quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for fourth-quarter FFO per share has been revised 2.2% upward to $1.41 in two months. It also suggests 23.68% growth year over year.
For 2021, Federal Realty projected FFO per share in the range of $5.45-$5.50.
For the full year, the Zacks Consensus Estimate for FFO per share has moved 1.5% north to $5.50 over the past two months. The figure indicates a 21.68% increase year over year on revenues of $945.8 million.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for FRT this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
Federal Realty currently carries a Zacks Rank #2 and has an Earnings ESP of -0.89%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the retail REIT sector — Retail Opportunity Investments Corp. (ROIC - Free Report) , Regency Centers Corporation (REG - Free Report) and STORE Capital Corporation — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Retail Opportunity Investments Corp., slated to release fourth-quarter earnings on Feb 16, has an Earnings ESP of +1.30% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Regency Centers Corporation, scheduled to report quarterly numbers on Feb 10, has an Earnings ESP of +0.67% and carries a Zacks Rank of 3.
STORE Capital, slated to report quarterly numbers on Feb 23, has an Earnings ESP of +1.45% and carries a Zacks Rank of 2.
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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What's in Store for Federal Realty (FRT) This Earnings Season?
Federal Realty Investment Trust (FRT - Free Report) is set to report fourth-quarter and full-year 2021 results on Feb 10 after the bell. The company’s quarterly results will likely display increases in both revenues and funds from operations (FFO) per share.
In the last reported quarter, this retail REIT reported a surprise of 17.97% in terms of FFO per share. Results reflected better-than-anticipated revenues.
Over the last four quarters, Federal Realty surpassed estimates on all occasions, the average beat being 15.19%. The graph below depicts the surprise history of the company:
Federal Realty Investment Trust Price and EPS Surprise
Federal Realty Investment Trust price-eps-surprise | Federal Realty Investment Trust Quote
Let’s see how things have shaped up before this announcement.
Key Factors
Per a report from CBRE Group, total retail sales increased 16.9% year over year in the fourth quarter, reflecting the strength of a strong holiday shopping season in 2021. The fourth quarter marked the fifth consecutive quarter of positive retail absorption (+20.6 million square feet). Also, the average asking rent improved 1.6% year over year to $21.87 per square foot in the fourth quarter as prime space grew scarce.
The overall retail availability rate shrunk by 30 basis points in the December-end quarter to a 10-year low of 5.6%. New construction deliveries remained muted in the fourth quarter, with 23.5 million square feet delivered in 2021, down 36% year over year. The scarcity of new prime space has fueled occupancy levels and aided growth in rents.
Federal Realty is anticipated to have benefited from the recovery in the retail real estate market. The company has a portfolio of premium retail assets, mainly situated in major coastal markets from Washington, D.C. to Boston, San Francisco and Los Angeles. FRT has strategically selected first-ring suburbs of major metropolitan markets. Due to strong demographics and the infill nature of its properties, the company has been able to maintain a high occupancy level over the years. Moreover, its focus on the open-air format and “The Pick-Up” concept is likely to have helped the company attract tenants in the fourth quarter amid the prevailing health crisis.
With widespread vaccination, resumption of the economy and solid consumer spending, this retail REIT is anticipated to have benefited from its superior assets in premium locations and witnessed an improvement in the leasing environment.
In the fourth quarter, the company announced that a long-term lease to occupy 105,000 square feet of space in 915 Meeting Street has been signed by Choice Hotels International, Inc. This is a new 276,000-square-foot trophy office building to be built at the mixed-use development of Pike & Rose in North Bethesda, MD.
The Zacks Consensus Estimate for quarterly revenues is pegged at $249.15 million, calling for a 13.5% increase from the year-ago period. The consensus mark for rental revenues is pegged at $243 million, suggesting a rise from the year-ago period’s $218 million.
Federal Realty’s activities during the soon-to-be-reported quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for fourth-quarter FFO per share has been revised 2.2% upward to $1.41 in two months. It also suggests 23.68% growth year over year.
For 2021, Federal Realty projected FFO per share in the range of $5.45-$5.50.
For the full year, the Zacks Consensus Estimate for FFO per share has moved 1.5% north to $5.50 over the past two months. The figure indicates a 21.68% increase year over year on revenues of $945.8 million.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for FRT this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
Federal Realty currently carries a Zacks Rank #2 and has an Earnings ESP of -0.89%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the retail REIT sector — Retail Opportunity Investments Corp. (ROIC - Free Report) , Regency Centers Corporation (REG - Free Report) and STORE Capital Corporation — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Retail Opportunity Investments Corp., slated to release fourth-quarter earnings on Feb 16, has an Earnings ESP of +1.30% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Regency Centers Corporation, scheduled to report quarterly numbers on Feb 10, has an Earnings ESP of +0.67% and carries a Zacks Rank of 3.
STORE Capital, slated to report quarterly numbers on Feb 23, has an Earnings ESP of +1.45% and carries a Zacks Rank of 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.