US Market News
2月前
Federal Realty Investment Trust Reports First Quarter 2026 ResultsMay 1, 2026 7:30 AM
PR Newswire (US)
NORTH BETHESDA, Md., May 1, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) today reported its results for the first quarter ended March 31, 2026. For the three months ended March 31, 2026 and 2025, net income available for common shareholders was $1.81 per diluted share and $0.72 per diluted share, respectively. Operating income for the same periods was $209.0 million and $108.1 million, respectively. Results for the current quarter include a $92.7 million gain on sale of real estate, primarily related to the February sale of Misora at Santana Row, compared to $1.2 million in the first quarter of 2025.
Highlights for the first quarter and subsequent to quarter-end include:Generated Nareit-defined funds from operations available to common shareholders (Nareit FFO) per diluted share of $1.88 for the quarter, a 10.6% increase over $1.70 in the first quarter of 2025.Generated Core funds from operations available to common shareholders (Core FFO) per diluted share of $1.88 for the quarter, also a 10.6% increase year-over-year.Signed 101 leases for 649,078 square feet of comparable retail space — a first-quarter volume record — with rent growth of 13% on a cash basis and 23% on a straight-line basis.On a trailing twelve-month basis, signed 448 leases for 2,620,601 square feet of comparable retail space — also a volume record — with rent growth of 16% on a cash basis and 28% on a straight-line basis.Generated comparable property operating income (POI) growth of 4.7%.Adjusted comparable POI growth (excluding straight-line rents and amortization of in-place leases) was 5.1%.Reported overall portfolio occupancy of 93.8% and a leased rate of 96.1% at quarter end, with:Occupancy down 30 basis points and leased rate flat quarter-over-quarter.Occupancy up 20 basis points and leased rate up 40 basis points year-over-year.Continued strong small shop leased rate, ending the quarter at 93.8% leased, representing an increase of 30 basis points year-over-year.Acquired two properties:Acquired Congressional North Shopping Center in Montgomery County, MD on March 12, 2026 for $72.3 million, expanding Federal's presence along Rockville Pike, one of the Washington DC region's most established commercial corridors.Acquired an adjacent retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million on April 17, 2026, completing the retail assemblage at the center.Completed approximately $159 million of peripheral residential and mature retail dispositions in the first quarter.Raised and tightened guidance for 2026 earnings per diluted share to $3.94 - $4.03.Raised and tightened guidance for both 2026 Nareit FFO and Core FFO per diluted share to $7.46 - $7.55, representing 6.3% growth at the midpoint year-over-year."We delivered a strong start to the year, exceeding expectations and continuing the momentum we built in 2025. Our portfolio is performing well amid a volatile macro environment, reflecting both the strength of our platform and the resilience of the higher-income consumer we serve," said Donald C. Wood, Chief Executive Officer of Federal Realty. "With this performance, we are increasing our outlook for 2026, reinforcing our confidence in the consistency and durability of our earnings growth."Financial ResultsNet IncomeFor the first quarter of 2026, net income available for common shareholders was $157.1 million and earnings per diluted share was $1.81 versus $61.8 million and $0.72, respectively, for the first quarter of 2025.FFONareit FFO was $162.6 million, or $1.88 per diluted share, for the first quarter of 2026, compared to $146.5 million, or $1.70 per diluted share, in the first quarter of 2025, a 10.6% per-share increase.Core FFO was $162.6 million, or $1.88 per diluted share, for the first quarter of 2026, compared to $146.4 million, or $1.70 per diluted share, in the first quarter of 2025, a 10.6% per-share increase.Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and a full definition of Core FFO.Operational UpdateOccupancyThe following operational metrics for the commercial portfolio are as of March 31, 2026:Overall portfolio occupancy was 93.8%, down 30 basis points sequentially and up 20 basis points year-over-year.Overall portfolio leased rate was 96.1%, flat sequentially and up 40 basis points year-over-year.Small shop leased rate was 93.8%, flat sequentially and up 30 basis points year-over-year.The residential leased rate for comparable properties was 95.6% as of March 31, 2026, up 100 basis points year-over-year.Leasing ActivityDuring the first quarter of 2026, Federal Realty signed 106 leases totaling 661,158 square feet of retail space. On a comparable space basis, the company signed 101 leases for 649,078 square feet — a first-quarter volume record — at an average rent of $35.79 per square foot, compared to $31.75 under prior leases, representing a 13% increase on a cash basis and 23% increase on a straight-line basis.On a trailing twelve-month basis, Federal Realty signed 448 comparable leases totaling 2,620,601 square feet — also a volume record — representing 16% rent spreads on a cash basis and 28% on a straight-line basis.Transaction ActivityFebruary 5, 2026 — sold two assets for a combined $158.5 million:Misora, a peripherally located residential component of Santana Row in San Jose, CA, for $148.5 million; andCourthouse Center, a 33,000-square-foot neighborhood shopping center in Rockville, MD, for $10.0 million.March 12, 2026 — acquired Congressional North Shopping Center for $72.3 million, a 217,000-square-foot grocery-anchored center, strategically deepening Federal's presence along Rockville Pike in Montgomery County, MD.April 17, 2026 — acquired an adjacent 88,000-square-foot retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million, completing the retail assemblage at the center, which Federal originally acquired in 2022.Financing ActivityOn February 17, 2026, the company repaid its $400 million 1.25% senior notes at maturity, refinanced with a draw on its previously announced delayed draw $250 million term loan and the remaining $150 million funded from the revolving credit facility.On April 14, 2026, the company amended and restated the $1.25 billion revolving credit facility, increasing the borrowing capacity to $1.4 billion, reducing the SOFR spread to 72.5 basis points, and extending the maturity date to April 12, 2030, plus two optional six-month extensions.Regular Quarterly DividendsFederal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on July 15, 2026 to common shareholders of record as of July 1, 2026.Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on July 15, 2026 to shareholders of record as of July 1, 2026.2026 GuidanceFederal Realty has raised and tightened its 2026 earnings per diluted share, Nareit FFO, and Core FFO guidance, as summarized in the table below:Full Year 2026 GuidanceRevised GuidancePrior GuidanceNet income available for common shareholders per diluted share$3.94 to $4.03$3.90 to $4.00Nareit FFO per diluted share$7.46 to $7.55$7.42 to $7.52Core FFO per diluted share$7.46 to $7.55$7.42 to $7.52% Core FFO growth over the prior year5.7% - 6.9%5.1% - 6.5%Conference Call InformationFederal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its first quarter 2026 earnings conference call, which is scheduled for Friday, May 1, 2026 at 9:00 AM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through May 15, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10207838.About Federal RealtyFederal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 104 properties include approximately 3,800 tenants in 29.0 million commercial square feet, and approximately 2,500 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.Safe Harbor Language Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following:risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets;risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; andrisks related to natural disasters, climate change and public health crises (such as worldwide pandemics), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2026.Investor Inquiries:Jill SawyerSenior Vice President, Investor Relations 301.998.8265jsawyer@federalrealty.com Media Inquiries:Brenda PomarSenior Director, Corporate Communications301.998.8316 bpomar@federalrealty.com Federal Realty Investment TrustConsolidated Balance SheetsMarch 31, 2026
March 31,
December 31,
2026
2025
(in thousands, except share and
per share data)
(unaudited)
ASSETS
Real estate, at cost
Operating (including $1,898,790 and $1,832,190 of consolidated variable interest
entities, respectively)$11,302,971$11,265,167Construction-in-progress (including $30,376 and $28,418 of consolidated variable
interest entities, respectively)
358,950
374,735
11,661,921
11,639,902Less accumulated depreciation and amortization (including $474,534 and $468,725 of
consolidated variable interest entities, respectively)
(3,394,099)
(3,351,881)Net real estate
8,267,822
8,288,021Cash and cash equivalents
115,633
107,415Accounts and notes receivable, net
249,428
249,755Mortgage notes receivable, net
—
9,091Investment in partnerships
31,105
31,881Operating lease right of use assets, net
82,234
83,120Finance lease right of use assets, net
6,356
6,410Prepaid expenses and other assets
344,192
354,767TOTAL ASSETS$9,096,770
$ 9,130,460LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable, net (including $191,475 and $194,176 of consolidated variable
interest entities, respectively)$519,021$521,759Notes payable, net
1,365,333
1,057,331Senior notes and debentures, net
2,965,414
3,364,010Accounts payable and accrued expenses
222,187
219,678Dividends payable
99,926
99,792Security deposits payable
32,489
31,548Operating lease liabilities
71,484
72,304Finance lease liabilities
12,935
12,903Other liabilities and deferred credits
243,637
250,494Total liabilities
5,532,426
5,629,819Commitments and contingencies
Redeemable noncontrolling interests
182,827
181,655Shareholders' equity
Preferred shares, authorized 15,000,000 shares, $0.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation
preference $25,000 per share), 6,000 shares issued and outstanding
150,000
150,0005.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation
preference $25 per share), 392,878 shares issued and outstanding
9,822
9,822Common shares of beneficial interest, $0.01 par, 200,000,000 shares authorized,
86,386,687 and 86,266,009 shares issued and outstanding, respectively
870
869Additional paid-in capital
4,310,277
4,310,365Accumulated dividends in excess of net income
(1,164,907)
(1,224,372)Accumulated other comprehensive income
5,075
2,047Total shareholders' equity of the Trust
3,311,137
3,248,731Noncontrolling interests
70,380
70,255Total shareholders' equity
3,381,517
3,318,986TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$9,096,770$9,130,460 Federal Realty Investment Trust
Consolidated Income Statements
March 31, 2026
Three Months Ended
March 31,
2026
2025
(in thousands, except per share data)
(unaudited)REVENUE
Rental income$332,658
$302,294Other property income
7,890
6,585Mortgage interest income
536
275Total revenue
341,084
309,154EXPENSES
Rental expenses
74,697
67,804Real estate taxes
38,971
36,567General and administrative
11,925
10,875Depreciation and amortization
99,217
86,946Total operating expenses
224,810
202,192
Gain on sale of real estate
92,711
1,171
OPERATING INCOME
208,985
108,133
OTHER INCOME/(EXPENSE)
Other interest income
1,040
743Interest expense
(49,116)
(42,475)Income from partnerships
161
177NET INCOME
161,070
66,578 Net income attributable to noncontrolling interests
(1,971)
(2,810)NET INCOME ATTRIBUTABLE TO THE TRUST
159,099
63,768Dividends on preferred shares
(2,008)
(2,008)NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS $157,091
$61,760
EARNINGS PER COMMON SHARE, BASIC
Net income available for common shareholders$1.82
$0.72Weighted average number of common shares
86,040
85,472EARNINGS PER COMMON SHARE, DILUTED
Net income available for common shareholders$1.81
$0.72Weighted average number of common shares
86,662
85,472 Federal Realty Investment Trust
Funds From Operations
March 31, 2026
Three Months Ended
March 31,
2026
2025
(in thousands, except per share data)Nareit Funds from Operations available for common shareholders (Nareit FFO) (1)
Net income$161,070
$66,578Net income attributable to noncontrolling interests
(1,971)
(2,810)Gain on sale of real estate
(92,711)
(1,171)Depreciation and amortization of real estate assets
84,778
76,498Amortization of initial direct costs of leases
13,233
9,077Funds from operations
164,399
148,172Dividends on preferred shares (2)
(1,875)
(1,875)Income attributable to downREIT operating partnership units
596
669Income attributable to unvested shares
(567)
(490)Nareit FFO$162,553
$146,476Weighted average number of common shares, diluted (2)(3)
86,662
86,177
Nareit FFO per diluted share (3)$1.88
$1.70
Core Funds from Operations (Core FFO) (1)
Nareit FFO$162,553
$146,476Adjustments:
Collection of prior period rents deferred during COVID
—
(67)Core FFO$162,553
$146,409
Core FFO per diluted share (3)$1.88
$1.70
Notes:(1)See Glossary of Terms.(2)For the three months ended March 31, 2026 and 2025, dividends on our Series 1 preferred stock were not deducted in the
calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average
number of common shares, diluted."(3)The weighted average common shares used to compute Nareit and Core FFO per diluted common share includes downREIT
operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units
is dilutive in the computation of Nareit and Core FFO per diluted share for all periods presented, but is anti-dilutive for the
computation of diluted EPS for the three months ended March 31, 2025. Reconciliation of the range of estimated earnings per diluted share to estimated Nareit FFO and Core FFO per diluted share for
the full year 2026:
Full Year 2026 Guidance Range Range
Low
High
Estimated net income available for common shareholders per diluted share$3.94
$4.03
Adjustments:
Estimated gain on sale of real estate
(1.06)
(1.06)
Estimated depreciation and amortization
4.58
4.58
Estimated Nareit FFO and Core FFO per diluted share$7.46
$7.55
See Glossary of Terms. Individual items may not add up to total due to rounding.
Federal Realty Investment Trust
Comparable Property Information
March 31, 2026
Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two
primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being
repositioned for significant redevelopment and investment. Property Operating Income ("POI") is defined as total revenue less rental expenses and
real estate taxes. Comparable Property property operating income ("Comparable Property POI") and Comparable Property POI - Adjusted are non-
GAAP measures used by management in evaluating the operating performance of our properties period over period. Comparable Property POI -
Adjusted excludes the impact of straight-line rents and amortization of in-place leases from Comparable Property POI.
Reconciliation of GAAP operating income to Comparable Property POI and Comparable Property POI - Adjusted
Three Months Ended
March 31,
2026
2025
(in thousands)
Operating income$208,985
$108,133
Add:
Depreciation and amortization
99,217
86,946
General and administrative
11,925
10,875
Gain on sale of real estate
(92,711)
(1,171)
POI
227,416
204,783
Less: Non-comparable POI - acquisitions/dispositions
(15,912)
(7,130)
Less: Non-comparable POI - redevelopment, development & other
(10,934)
(6,024)
Comparable Property POI$200,570
$191,629
Less: Straight-line rents
(4,591)
(5,392)
Less: Amortization of in-place leases
(3,021)
(2,691)
Comparable Property POI - Adjusted$192,958
$183,546
Glossary of TermsNareit-defined Funds From Operations (Nareit FFO): Nareit FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. Nareit developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, Nareit FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider Nareit FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs.Core Funds From Operations (Core FFO): Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.
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Original: Federal Realty Investment Trust Reports First Quarter 2026 Results
US Market News
5月前
Federal Realty Investment Trust Reports Fourth Quarter and Full Year 2025 ResultsFebruary 12, 2026 4:05 PM
PR Newswire (US)
NORTH BETHESDA, Md., Feb. 12, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) today reported its results for the fourth quarter and full year ended December 31, 2025. Net income available for common shareholders was $4.68 per diluted share for the full year 2025 and $1.48 per diluted share for the fourth quarter, compared to $3.42 and $0.75 per diluted share for the same periods in 2024, respectively. Operating income for 2025 totaled $602.2 million, with $180.7 million in the fourth quarter, compared to $472.4 million and $109.3 million, respectively, in 2024.
Highlights for the full year, fourth quarter and subsequent to quarter-end include:Generated Nareit defined funds from operations available to common shareholders (Nareit FFO) per diluted share of $7.22 for the year, compared to $6.77 in 2024, an increase of 6.6%. For the fourth quarter, generated Nareit FFO per diluted share of $1.84, compared to $1.73 for the fourth quarter of 2024, an increase of 6.4%.Introduced Core FFO, a new measure intended to provide enhanced comparability across periods for Federal's underlying operating results; Core FFO was $7.06 per diluted share in 2025, up 4.3% from $6.77 in 2024. See attachment for a full definition of Core FFO.Record-breaking leasing in 2025:Achieved an all-time company record total leasing volume of 2.5 million square feet of retail space.Strongest comparable rent spreads in over a decade of 15% on a cash basis and 27% on a straight-line basis.Achieved comparable portfolio occupancy of 94.5% and a leased rate of 96.6% at quarter end, with:Occupancy up 40 basis points and leased rate up 90 basis points sequentially.Occupancy up 50 basis points and leased rate up 40 basis points year-over-year.Small shop leased rate of 93.8%, up 50 basis points sequentially.Generated comparable property operating income (POI) growth of 3.8% for the year, and 3.1% for the fourth quarter, excluding lease termination fees and prior period rents collected.Acquired two properties in the fourth quarter totaling $340 million, adding a new market to Federal Realty's footprint in Omaha, NE with Village Pointe, and growing in its existing Maryland portfolio with Annapolis Town Center in Annapolis, MD.Completed $169 million of peripheral residential and mature retail dispositions in the fourth quarter, with an additional $159 million announced subsequent to quarter end.Announced a new redevelopment project at Willow Grove in Willow Grove, PA, at a projected cost of $110 - $120 million and projected return on investment (ROI) of 7%.Ended the quarter with approximately $1.3 billion in total liquidity.Introduced 2026 earnings per diluted share guidance of $3.90 to $4.00 and 2026 Nareit FFO and Core FFO per diluted share guidance of $7.42 to $7.52, representing 5.1% and 6.5% growth at the low and high end of the range for Core FFO year-over-year."Federal Realty delivered strong 2025 results, driven by exceptional leasing performance and strong rent spreads that produced solid year-over-year earnings growth. We also made meaningful strategic progress on our capital recycling and reinvestment initiative: entering new markets, acquiring dominant properties that enhance the quality of our portfolio, and advancing our residential development pipeline in the right retail locations," said Donald C. Wood, Chief Executive Officer of Federal Realty. "Even as we navigate the near-term refinancing environment, our momentum underpins expected 6% Core FFO growth in 2026."Financial ResultsNet IncomeFor the full year 2025, net income available for common shareholders was $403.0 million and earnings per diluted share was $4.68, versus $287.2 million and $3.42, respectively, for the full year 2024.For the fourth quarter 2025, net income available for common shareholders was $127.7 million and earnings per diluted share was $1.48, versus $63.5 million and $0.75, respectively, for the fourth quarter of 2024.FFO For the full year 2025, Nareit FFO was $624.3 million, or $7.22 per diluted share. This compares to Nareit FFO of $570.2 million, or $6.77 per diluted share for the full year 2024. Core FFO in 2025 was $611.0 million, or $7.06 per diluted share, versus $570.7 million, or $6.77 per diluted share for the full year 2024.For the fourth quarter 2025, Nareit FFO was $159.2 million, or $1.84 per diluted share, compared to $147.6 million, or $1.73 per diluted share for the fourth quarter of 2024. Core FFO in the fourth quarter 2025 was $159.1 million, or $1.84 per diluted share, versus $150.5 million, or $1.76 per diluted share.Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and definition of Core FFO.Operational UpdateOccupancyThe following operational metrics for the commercial portfolio are as of December 31, 2025:The comparable portfolio occupancy was 94.5%, up 40 basis points sequentially and up 50 basis points year-over-year.Comparable portfolio leased rate was 96.6%, up 90 basis points sequentially and up 40 basis points year-over-year.Small shop leased rate was 93.8%, up 50 basis points sequentially and up 20 basis points year-over-year.Anchor leased rate was 97.3%, up 80 basis points sequentially and down 20 basis points year-over-year.The residential leased rate was 94.8% as of December 31, 2025.Leasing ActivityFor the full year 2025, Federal Realty signed 454 leases for 2,471,099 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 434 leases for 2,340,282 square feet at an average rent of $37.98 per square foot compared to the average contractual rent of $33.12 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 15%, 27% on a straight-line basis. Comparable leases represented 96% of total comparable and non-comparable leases signed during 2025. During the fourth quarter 2025, Federal Realty signed 109 leases for 612,978 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 105 leases for 600,684 square feet at an average rent of $39.09 per square foot compared to the average contractual rent of $34.84 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 12%, 24% on a straight-line basis. Comparable leases represented 96% of total comparable and non-comparable leases signed during the fourth quarter 2025. RedevelopmentAnnounced a new redevelopment project at Willow Grove in Willow Grove, PA. This project will bring over 260 residential units, 52,000 square feet of retail space, and a 438-stall parking garage to the shopping center. The projected cost is $110 - $120 million and a 7% projected ROI1.Transaction ActivityFebruary 5, 2026 — sold Misora, a peripherally located residential component of Santana Row in San Jose, CA, for $148.5 million; additionally, the Company sold Courthouse Center, a 33,000 square-foot neighborhood shopping center in Rockville, MD, for $10.0 million.December 17, 2025 — sold Pallas, a peripherally located residential component of Pike & Rose in North Bethesda, MD, for $125.0 million.December 16, 2025 — sold Bristol Plaza, a 264,000 square-foot grocery-anchored shopping center in Bristol, CT, for $44.4 million.November 24, 2025 — acquired Village Pointe, a leading open-air lifestyle center in Omaha, NE, totaling 452,000 square feet, for $153.3 million.October 10, 2025 — acquired Annapolis Town Center, a premier open-air retail center in Annapolis, MD, totaling 479,000 square feet, for $187.0 million.Regular Quarterly DividendsFederal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on April 15, 2026 to common shareholders of record as of April 1, 2026.Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on April 15, 2026 to shareholders of record as of April 1, 2026.2026 Initial GuidanceThe company's initial 2026 guidance is based on the following assumptions:
2026 Guidance2Net income available for common shareholders per diluted share$3.90 - $4.00Nareit FFO per diluted share$7.42 – $7.52Core FFO per diluted share$7.42 – $7.52Comparable properties growth3.0% - 3.5% Lease termination fees $7 - $8 million Incremental redevelopment / expansion POI3 $13 - $15 million General and administrative expenses $47 - $49 million Development / redevelopment capital $175 - $225 million Capitalized interest $11 - $12 million
Notes:1 See page 17 of our Form 8-K filed on February 12, 2026.2 Does not include the impact of acquisitions or dispositions other than those which have closed as of February 11, 2026. All amounts are estimates.3 Includes the expected additional POI to be recognized in 2026, which is incremental to the amount recognized in 2025 from our larger redevelopments at Santana West, Pike & Rose - 915 Meeting Street, Bala Cynwyd on City Avenue and Huntington Shopping Center as more fully discussed on page 17 of our Form 8-K filed on February 12, 2026.The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated Nareit FFO and Core FFO per diluted share for the full year 2026:
Full Year 2026 Guidance Range
LowHighEstimated net income available for common shareholders per diluted share$ 3.90$ 4.00Adjustments:
Estimated gain on sale of real estate, net(1.06)(1.06)Estimated depreciation and amortization4.584.58Estimated Nareit FFO and Core FFO per diluted share$ 7.42$ 7.52Below is our Nareit FFO and Core FFO for 2024, 2025, and estimated 2026 range, per diluted share:
2024 Actual2025 Actual2026 EstimateNareit FFO per diluted share$6.77$7.22$7.42 - $7.52% growth over the prior year
6.6 %2.8% - 4.2%Adjustments:
New market tax credit transaction income, net-(0.15)-Executive transition costs0.04--Collection of prior period rents deferred during COVID(0.04)(0.00)-Core FFO$6.77$7.06$7.42 - $7.52% growth over the prior year
4.3 %5.1% - 6.5%Conference Call InformationFederal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its fourth quarter 2025 earnings conference call, which is scheduled for Thursday, February 12, 2026 at 5:00 PM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through February 26, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10205568.About Federal RealtyFederal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. As of December 31, 2025, Federal Realty's 104 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units.Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.Safe Harbor Language Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following:risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets;risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; andrisks related to natural disasters, climate change and public health crises (such as worldwide pandemics), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2026.Investor Inquiries:Jill SawyerSenior Vice President, Investor Relations 301.998.8265jsawyer@federalrealty.com
Media Inquiries:Brenda PomarSenior Director, Corporate Communications301.998.8316 bpomar@federalrealty.com
Federal Realty Investment TrustConsolidated Balance SheetsDecember 31, 2025
December 31,
December 31,
2025
2024
(in thousands, except share and
per share data)
ASSETS
Real estate, at cost
Operating (including $1,832,190 and $1,825,656 of consolidated variable interest
entities, respectively)$ 11,265,167
$ 10,363,961Construction-in-progress (including $28,418 and $9,939 of consolidated variable
interest entities, respectively)374,735
539,752
11,639,902
10,903,713Less accumulated depreciation and amortization (including $468,725 and $424,044 of
consolidated variable interest entities, respectively)(3,351,881)
(3,152,799)Net real estate8,288,021
7,750,914Cash and cash equivalents107,415
123,409Accounts and notes receivable, net249,755
229,080Mortgage notes receivable, net9,091
9,144Investment in partnerships31,881
33,458Operating lease right of use assets, net83,120
85,806Finance lease right of use assets, net6,410
6,630Prepaid expenses and other assets354,767
286,316TOTAL ASSETS$ 9,130,460
$ 8,524,757LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable, net (including $194,176 and $186,643 of consolidated variable
interest entities, respectively)$ 521,759
$ 514,378Notes payable, net1,057,331
601,414Senior notes and debentures, net3,364,010
3,357,840Accounts payable and accrued expenses219,678
183,564Dividends payable99,792
96,743Security deposits payable31,548
30,941Operating lease liabilities72,304
74,837Finance lease liabilities12,903
12,783Other liabilities and deferred credits250,494
227,827Total liabilities5,629,819
5,100,327Commitments and contingencies
Redeemable noncontrolling interests181,655
180,286Shareholders' equity
Preferred shares, authorized 15,000,000 shares, $0.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation
preference $25,000 per share), 6,000 shares issued and outstanding150,000
150,0005.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation
preference $25 per share), 392,878 shares issued and outstanding9,822
9,822Common shares of beneficial interest, $0.01 par, 200,000,000 shares authorized,
86,266,009 and 85,666,220 shares issued and outstanding, respectively869
862Additional paid-in capital4,310,365
4,248,824Accumulated dividends in excess of net income(1,224,372)
(1,242,654)Accumulated other comprehensive income2,047
4,740Total shareholders' equity of the Trust3,248,731
3,171,594Noncontrolling interests70,255
72,550Total shareholders' equity3,318,986
3,244,144TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$ 9,130,460
$ 8,524,757 Federal Realty Investment Trust
Consolidated Income Statements
December 31, 2025
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in thousands, except per share data)
(unaudited)
REVENUE
Rental income$ 327,537
$ 303,878
$ 1,245,491
$ 1,170,078Other property income8,228
7,286
32,371
31,258Mortgage interest income280
280
1,113
1,116Total revenue336,045
311,444
1,278,975
1,202,452EXPENSES
Rental expenses70,551
65,121
267,445
249,569Real estate taxes40,012
36,828
151,438
142,230General and administrative12,464
14,819
46,913
49,739Depreciation and amortization97,378
87,117
367,842
342,598Total operating expenses220,405
203,885
833,638
784,136
New market tax credit transaction income—
—
14,176
—Gain on sale of real estate72,439
1,760
150,111
54,040Impairment charge(7,425)
—
(7,425)
—
OPERATING INCOME180,654
109,319
602,199
472,356
OTHER INCOME/(EXPENSE)
Other interest income650
782
3,143
4,294Interest expense(48,922)
(43,234)
(183,614)
(175,476)Income from partnerships233
1,335
1,920
3,160NET INCOME132,615
68,202
423,648
304,334 Net income attributable to noncontrolling interests(2,871)
(2,665)
(12,571)
(9,126)NET INCOME ATTRIBUTABLE TO THE TRUST129,744
65,537
411,077
295,208Dividends on preferred shares(2,008)
(2,008)
(8,032)
(8,032)NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS$ 127,736
$ 63,529
$ 403,045
$ 287,176
EARNINGS PER COMMON SHARE, BASIC
Net income available for common shareholders$ 1.48
$ 0.75
$ 4.68
$ 3.42Weighted average number of common shares85,983
84,685
85,852
83,559EARNINGS PER COMMON SHARE, DILUTED
Net income available for common shareholders$ 1.48
$ 0.75
$ 4.68
$ 3.42Weighted average number of common shares86,604
84,692
86,405
83,566 Federal Realty Investment Trust
Funds From Operations
December 31, 2025
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in thousands, except per share data)Nareit Funds from Operations available for common shareholders (Nareit FFO) (1)
Net income
$ 132,615
$ 68,202
$ 423,648
$ 304,334Net income attributable to noncontrolling interests
(2,871)
(2,665)
(12,571)
(9,126)Gain on sale of real estate
(72,439)
(1,760)
(150,111)
(54,040)Impairment charge
7,425
—
7,425
—Depreciation and amortization of real estate assets
84,060
76,779
320,311
302,455Amortization of initial direct costs of leases
12,207
8,704
42,671
33,377Funds from operations
160,997
149,260
631,373
577,000Dividends on preferred shares (2)
(1,875)
(1,875)
(7,500)
(7,500)Income attributable to downREIT operating partnership units
595
675
2,463
2,743Income attributable to unvested shares
(522)
(481)
(2,080)
(2,004)Nareit FFO
$ 159,195
$ 147,579
$ 624,256
$ 570,239Weighted average number of common shares, diluted (2)(4)
86,604
85,402
86,498
84,286
Nareit FFO per diluted share (4)
$ 1.84
$ 1.73
$ 7.22
$ 6.77
Core Funds from Operations (Core FFO) (1)(5)
Nareit FFO
$ 159,195
$ 147,579
$ 624,256
$ 570,239Adjustments:
New market tax credit transaction income, net (3)
—
—
(13,004)
—Executive transition costs
—
3,687
—
3,687Collection of prior period rents deferred during COVID
(52)
(768)
(261)
(3,218)Core FFO (5)
$ 159,143
$ 150,498
$ 610,991
$ 570,708
Core FFO per diluted share (4)(5)
$ 1.84
$ 1.76
$ 7.06
$ 6.77
Notes:
(1)See Glossary of Terms.(2)For the three months and years ended December 31, 2025 and 2024, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average number of common shares, diluted."(3)In June 2018, we formed a joint venture to develop Freedom Plaza (formerly Jordan Downs Plaza), for which we own 92%. The investment in this development qualified for tax credits under the New Market Tax Credit ("NMTC") Program, established by the Community Renewal Tax Relief Act of 2000. In 2018, we transferred the earned tax credits to a third-party bank in exchange for cash proceeds. The proceeds received and related transaction costs were deferred until the end of the seven-year NMTC compliance period, which concluded in June 2025. As a result, in 2Q2025, we recognized $14.2 million ($13.0 million, net of income attributable to noncontrolling interest) in income related to the sale of the new market tax credits, which is included in Nareit FFO, but excluded from Core FFO.(4)The weighted average common shares used to compute FFO per diluted common share includes shares issuable upon the assumed redemption of outstanding downREIT operating partnership units that were excluded from the computation of diluted EPS. The assumed issuance of shares upon redemption of these operating partnership units is dilutive in the computation of FFO per diluted share for all periods presented, but is anti-dilutive for the computation of diluted EPS for the three months and year ended December 31, 2024.(5)Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.Glossary of TermsNareit-defined Funds From Operations (Nareit FFO): Nareit FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. Nareit developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, Nareit FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider Nareit FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs.Core Funds From Operations (Core FFO): Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.
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Original: Federal Realty Investment Trust Reports Fourth Quarter and Full Year 2025 Results
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