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FRT Expands Its Portfolio With Village Pointe Buy: Can It Fuel Growth?

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Key Takeaways

  • FRT acquired the 453,000-square-foot Village Pointe open-air lifestyle center for $153.3M.
  • The asset offers 6 million annual visits, affluent demographics and premium national retailers.
  • The deal supports Federal Realty's ongoing strategy of buying market-dominant retail properties.

Federal Realty (FRT - Free Report) recently announced the buyout of Omaha’s key open-air lifestyle center, Village Pointe, for $153.3 million.  Spanning 453,000 square feet, the asset under consideration is located in one of the market’s most established commercial corridors. The site has the advantage of affluent demographics and a growing population with three-mile average household incomes greater than $180,000.

With an average footfall of around 6 million annual visits and a trade area for more than half a million people, Village Pointe ticks as a dominant high-quality asset for FRT’s portfolio. The center features a mix of high-performing, exclusive to the market, national and premium lifestyle retailers — the likes of Apple, Sephora, Coach, Nordstrom Rack, etc. and shadow anchored by Scheels.

With quick access to the Omaha MSA, the property is adjacent to Nebraska’s top-ranked school district, and major employers like Berkshire Hathaway and its subsidiaries, PayPal, LinkedIn and Union Pacific.

The move highlights FRT’s stance of acquiring market-dominant retail assets for the creation of long-term growth opportunities by capitalizing on untapped potential through operational expertise.

FRT’s strategic portfolio rebalancing in the premium market bodes well for future growth. In October 2025, Federal Realty announced the acquisition of an open-air shopping asset, Annapolis Town Center in Anne Arundel County, MD, for $187 million. In July 2025, Federal Realty acquired Town Center Plaza and Town Center Crossing in Leawood, KS, spanning 550,000 square feet in total, for $289 million. In February 2025, the REIT acquired a 47-acre, grocery-anchored lifestyle center, Del Monte Shopping Center, in Monterey, CA, for $123.5 million.

How Are REG and SPG Ramping Up Their Portfolios?

Regency Centers (REG - Free Report) is making efforts to improve its portfolio with acquisitions in key markets. In the third quarter of 2025, Regency Centers acquired a portfolio of five shopping centers located within the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million. REG acquired its partner's 50% interest in Chestnut Ridge Shopping Center in Montvale, NJ, for nearly $9.2 million and now owns 100% of the asset. The company also acquired its partner's 50% interest in Baybrook East and 47% interest in The Market at Springwoods Village, both in Houston, TX, for a combined total of $34 million and now owns 100% of both assets.

From the beginning of the year 2025 through Sept. 30, the company has acquired assets worth $538.5 million.

Simon Property Group (SPG - Free Report) has been restructuring its portfolio with premium acquisitions. In November 2025, SPG acquired Phillips Place, a 134,000-square-foot open-air retail center in Charlotte, NC. In June 2025, Simon Property purchased Swire Properties’ stake in Brickell City Centre’s open-air shopping center and will now wholly own and manage the asset.

In April 2025, Simon Property acquired its joint venture partner’s remaining interest in Briarwood Mall, consolidating it in its portfolio. In January 2025, Simon Property announced that it had taken over 100% of The Mall Luxury Outlets entities from Kering.

FRT’s Price Performance, Valuation & Estimates

Shares of Federal Realty have gained 3% over the past three months, outperforming the broader industry but underperforming the S&P 500 Index.

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From a valuation standpoint, FRT trades at a forward 12-month price-to-FFO of 13.28, below the industry, as well as its one-year median of 13.36. It carries a Value Score of F.

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Federal Realty’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 6.8% growth year over year.

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FRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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