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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.


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.


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 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.

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