Federal Realty Investment Trust (FRT): A Mid-Cap REIT Analysis
Federal Realty Investment Trust (FRT), with a market capitalization of $8.6 billion, is a leading real estate investment trust (REIT) renowned for its ownership, operation, and redevelopment of high-quality retail and mixed-use properties. The company, founded in 1962 and based in Rockville, Maryland, focuses on affluent, densely populated communities along the U.S. East Coast, California, and South Florida.
FRT: A Dividend King in the REIT Sector
Classified as a mid-cap stock (companies valued between $2 billion and $10 billion), Federal Realty distinguishes itself through its strategic focus on retail properties located in affluent urban markets. The company is also known for its remarkable 58-year streak of consecutive annual dividend increases, making it a recognized "Dividend King" within the REIT industry.
Recent Stock Performance and Market Trends
Despite its dividend record, FRT shares have declined 16.1% from their 52-week high of $118.09, reached on November 29. Over the past three months, FRT stock has increased by 3%, underperforming the S&P 500 Index ($SPX), which has gained 9% during the same period. The stock has also underperformed year-to-date (YTD), falling 11.5% compared to the S&P 500's 12.9% increase.
Technical Analysis: Moving Averages
Technically, Federal Realty’s stock has traded below its 200-day moving average since mid-February. However, it has remained above its 50-day moving average since mid-August, indicating mixed momentum.
Q2 2024 Financial Results
On August 6, Federal Realty reported strong Q2 results, exceeding Wall Street expectations. The company's funds from operations (FFO) reached $1.91 per share, surpassing the consensus estimate of $1.73. Net income was reported at $153.9 million or $1.78 per share, with revenue of $311.5 million, slightly above the projected $310.7 million. For the full year, Federal Realty anticipates FFO between $7.16 and $7.26 per share. Despite the positive earnings, the stock experienced a slight dip after the announcement.
