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Federal Realty (FRT) Beats Q1 FFO Estimates, Raises 2022 View

Federal Realty Investment Trust’s FRT first-quarter 2022 funds from operations (FFO) per share of $1.50 surpassed the Zacks Consensus Estimate of $1.44. This also compares favorably with the year-ago quarter’s tally of $1.17.

Results reflect better-than-anticipated revenues. This retail REIT also raised its guidance for 2022 FFO per share.

Quarterly revenues of $256.8 million topped the consensus mark of $251.8 million and improved by 17.7% from the year-ago quarter’s tally.

According to Donald C. Wood, Federal Realty’s chief executive officer, "Record leasing combined with in-process expansion at our established mixed-use centers, our continued redevelopment and property improvement efforts and recent selective acquisitions continue to drive bottom line earnings growth.”

Quarter in Detail

During the reported quarter, FRT signed 124 leases for 460,062 square feet of retail space. On a comparable space basis, the company signed 119 leases for 444,398 square feet of space at an average rent of $36.77 per square foot. This denotes cash-basis rollover growth of 7%, 17% on a straight-line basis.

As of Mar 31, Federal Realty’s portfolio was 91.2% occupied, denoting a year-over-year expansion of 170 basis points (bps). The company maintained a 250 bps spread between leased and occupied.

Federal Realty also experienced continued strong small shop leasing, ending the quarter at 88.7% leased. This reflects an increase of 130 bps over the fourth quarter and a surge of 490 bps year over year.

Federal Realty exited the first quarter of 2022 with cash and cash equivalents of $157.9 million, down from the $162.1 million recorded at the end of 2021.

Guidance

For 2022, FRT raised its guidance and now estimates FFO per share in the range of $5.85-$6.05 compared with the $5.75-$5.95 range projected earlier. The Zacks Consensus Estimate for the same stands at $5.92.

Dividend Update

Concurrent with the first-quarter earnings release, Federal Realty announced a regular quarterly cash dividend of $1.07 per share, which indicates an annual rate of $4.28 per share. The dividend will be paid out on Jul 15 to shareholders of record as of Jun 22, 2022.

Federal Realty currently carries a Zacks Rank #3 (Hold). 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 and EPS Surprise

Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote

Performance of Retail REITs

Realty Income Corporation’s O first-quarter 2022 adjusted FFO per share of 98 cents marginally surpassed the Zacks Consensus Estimate of 97 cents. The reported figure increased 14% from the prior-year quarter’s 86 cents. Results reflected a better-than-expected improvement in revenues. Realty Income benefited from expansionary effects and a healthy pipeline of opportunities globally.

Realty Income’s total revenues in the reported quarter came in at $807.3 million, exceeding the Zacks Consensus Estimate of $761.2 million. O’s top line also jumped 82.5% year over year.

Kimco Realty Corp.’s KIM first-quarter 2022 NAREIT FFO per share came in at 39 cents, surpassing the Zacks Consensus Estimate of 37 cents. This figure also grew 18.2% from the year-ago quarter. Results reflected better-than-anticipated revenues. Kimco also issued a revised 2022 FFO outlook.

KIM generated revenues of $427.2 million, beating the consensus mark of $422.2 million. Quarterly revenues jumped 51.3% year over year.

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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