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Federal Realty (FRT) Q4 FFO Misses, Revenues Beat Estimates
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Retail REIT Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2019 funds from operations (FFO) per share of $1.58 missed the Zacks Consensus Estimate of $1.60. However, the reported figure improved from the prior-year tally of $1.57.
Total revenues inched up 1.6% year over year to $239.1 million in the reported quarter. The top-line figure also surpassed the Zacks Consensus Estimate of $238.7 million.
Results reflect rise in property operating income and cash-basis rollover growth on comparable spaces.
For 2019, the company reported FFO per share of $6.17, down from the prior-year tally of $6.23. However, full-year revenues of $935.8 million increased 2.2% year on year.
Quarter in Details
During the reported quarter, Federal Realty signed 112 leases for 494,768 square feet of retail space. On a comparable space basis, the company leased 461,952 square feet at an average rent of $37.78 per square foot. This denotes cash-basis rollover growth of 7%.
As of Dec 31, 2019, the company’s overall portfolio was 94.2%, shrinking 40 basis points (bps) year over year. As of that date, comparable property portfolio was 94.9% leased, down 20 bps from the prior-year period. However, property operating income (POI) for comparable properties grew 2.4% for the fourth quarter.
Federal Realty exited fourth-quarter 2019 with cash and cash equivalents of approximately $127.4 million, up from the $64.1 million posted at the end of 2018.
During the December-end quarter, Federal Realty sold under threat of condemnation of an 11.7-acre portion of San Antonio Center, located in Mountain View, CA, for $155 million. Moreover, the company acquired a 147,000-square-foot grocery-anchored neighborhood shopping center — Georgetowne Shopping Center — with surface parking on 9 acres in Brooklyn, NY, for $83.7 million cash.
Outlook
For 2020, Federal Realty expects FFO per share of $6.40-$6.58. The Zacks Consensus Estimate for the same is currently pinned at $6.50, well within the guided range.
Dividend
Federal Realty announced a quarterly cash dividend of $1.05 per share. The dividend will be paid on Apr 15, to shareholders on record as of Mar 16, 2020.
Federal Realty currently carries a Zacks Rank #4 (Sell).
We, now, look forward to earnings announcement from REITs like Regency Centers Corporation (REG - Free Report) , Welltower Inc. (WELL - Free Report) and SITE Centers Corp. (SITC - Free Report) releasing this week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Federal Realty (FRT) Q4 FFO Misses, Revenues Beat Estimates
Retail REIT Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2019 funds from operations (FFO) per share of $1.58 missed the Zacks Consensus Estimate of $1.60. However, the reported figure improved from the prior-year tally of $1.57.
Total revenues inched up 1.6% year over year to $239.1 million in the reported quarter. The top-line figure also surpassed the Zacks Consensus Estimate of $238.7 million.
Results reflect rise in property operating income and cash-basis rollover growth on comparable spaces.
For 2019, the company reported FFO per share of $6.17, down from the prior-year tally of $6.23. However, full-year revenues of $935.8 million increased 2.2% year on year.
Quarter in Details
During the reported quarter, Federal Realty signed 112 leases for 494,768 square feet of retail space. On a comparable space basis, the company leased 461,952 square feet at an average rent of $37.78 per square foot. This denotes cash-basis rollover growth of 7%.
As of Dec 31, 2019, the company’s overall portfolio was 94.2%, shrinking 40 basis points (bps) year over year. As of that date, comparable property portfolio was 94.9% leased, down 20 bps from the prior-year period. However, property operating income (POI) for comparable properties grew 2.4% for the fourth quarter.
Federal Realty exited fourth-quarter 2019 with cash and cash equivalents of approximately $127.4 million, up from the $64.1 million posted at the end of 2018.
During the December-end quarter, Federal Realty sold under threat of condemnation of an 11.7-acre portion of San Antonio Center, located in Mountain View, CA, for $155 million. Moreover, the company acquired a 147,000-square-foot grocery-anchored neighborhood shopping center — Georgetowne Shopping Center — with surface parking on 9 acres in Brooklyn, NY, for $83.7 million cash.
Outlook
For 2020, Federal Realty expects FFO per share of $6.40-$6.58. The Zacks Consensus Estimate for the same is currently pinned at $6.50, well within the guided range.
Dividend
Federal Realty announced a quarterly cash dividend of $1.05 per share. The dividend will be paid on Apr 15, to shareholders on record as of Mar 16, 2020.
Federal Realty currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Realty Investment Trust Price, Consensus and EPS Surprise
Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote
We, now, look forward to earnings announcement from REITs like Regency Centers Corporation (REG - Free Report) , Welltower Inc. (WELL - Free Report) and SITE Centers Corp. (SITC - Free Report) releasing this week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>