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Federal Realty Investment Trust (FRT) Up 5.3% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Federal Realty Investment Trust (FRT - Free Report) . Shares have added about 5.3% 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 drivers.

Federal Realty Q3 FFO & Revenues Top Estimates, View Up

Federal Realty posted third-quarter 2018 FFO per share of $1.58, beating the Zacks Consensus Estimate of $1.55. Also, the reported figure compared favorably with the prior-year quarter tally of $1.50.

Results reflect growth in revenues. The company experienced rise in property operating income and lease rollover for comparable properties. It also raised its guidance for 2018.

Total revenues for the quarter grew 5.4% year over year to $229.8 million. Moreover, the top line surpassed the Zacks Consensus Estimate of $228.5 million.

Quarter in Details

During the reported quarter, Federal Realty signed 101 leases for 469,214 square feet of retail space. On a comparable space basis, the company leased 447,765 square feet at an average rent of $38.31 per square foot. This denoted cash-basis rollover growth of 6%.

As of Sep 30, 2018, the company’s overall portfolio was 94.8% leased, slightly down from 94.9% as on Sep 30, 2017. Comparable property portfolio was 95.2% leased as of Sep 30, 2018, down from 95.4% as on Sep 30, 2017.

In addition, property operating income (POI) for comparable properties climbed 3.5% for the third quarter.

Federal Realty exited third-quarter 2018 with cash and cash equivalents of approximately $41.9 million, significantly up from $15.2 million posted at the end of 2017.

Outlook Raised

For 2018, Federal Realty raised its FFO per share guidance to $6.18-$6.24 from the previous outlook of $6.13-$6.23.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Federal Realty Investment Trust has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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

Federal Realty Investment Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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