A month has gone by since the last earnings report for Federal Realty Investment Trust (FRT). Shares have added about 3.2% 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 Beats on Q2 FFO & Revenues, Raises View
Federal Realty posted second-quarter 2018 FFO per share of $1.55, beating the Zacks Consensus Estimate of $1.53. Also, the reported figure compares favorably with the prior-year quarter tally of $1.49.
Results indicate solid leasing activity leading to healthy occupancy at its properties. Further, management noted that continued growth in property operating income (POI), as well as new retail and mixed-use openings support its dividend hike for 51 consecutive years.
Total revenues for the quarter grew 8.1% year over year to $224.9 million. However, the top line missed the Zacks Consensus Estimate of $227.9 million.
Quarter in Details
During the quarter under review, on a comparable space basis, Federal Realty signed 106 lease deals for 474,578 square feet of space. The leases were signed at an average rent of $34.75 per square feet, denoting cash-basis roll-over growth of 10%.
As of Jun 30, 2018, the company’s overall portfolio was 95% leased, up from 94.5% as on Jun 30, 2017. Comparable property portfolio was 95.5% leased as of Jun 30, 2018, up from 95.3% as on Jun 30, 2017.
In addition, POI for comparable properties climbed 3.6% for the June-end quarter.
Federal Realty exited second-quarter 2018 with cash and cash equivalents of approximately $56.1 million, significantly up from $15.2 million posted at the end of 2017.
For 2018, Federal Realty increased its FFO per share guidance to $6.13-$6.23 from $6.08-$6.24.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
Currently, Federal Realty Investment Trust has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our style scores.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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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