FEDERAL REALTY INVESTMENT TRUST (FRT)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced because solid growth is offset by meaningful debt and refinancing risk.

At $118.39, the shares trade at 15.7 times the midpoint of management’s 2026 core funds-from-operations guidance of $7.48–$7.56 a share. Funds from operations adds back property depreciation and removes sale gains, making it more useful than ordinary earnings for a property owner. The new $4.64 annual dividend yields 3.9% and consumes about 62% of guided funds from operations. That valuation is reasonable, but it requires roughly mid-single-digit per-share growth to persist; it is neither a clear bargain nor obviously excessive.

Big pictureRental income and operating cash have grown steadily since the pandemic shock.

SEC-derived history shows revenue rising from $835 million in 2020 to $1.279 billion in 2025, while operating cash flow climbed from $370 million to $622 million. In the first half of 2026, rental income increased 8.9% to $659 million. Second-quarter core funds from operations rose 6.8% per share, and adjusted income from comparable properties grew 4.2%. This resilience comes from high-quality open-air centers, but tenant failures or weaker consumer traffic could still reduce occupancy, rents, and cash available for dividends.

Business strengthHigh occupancy and diverse tenants support rent growth, though leverage limits downside protection.

At June 30, 2026, portfolio occupancy was 93.8%, the leased rate was 96.1%, and comparable leases carried 15% higher cash rent. The largest tenant supplied only 2.4% of annual base rent, limiting single-tenant damage. The balance sheet is serviceable, not conservative: net debt was $4.66 billion, debt equaled 39% of covenant-defined assets, and income covered annual debt service 3.9 times. Those figures sit comfortably inside debt limits, while the expanded $1.4 billion revolving credit facility runs to 2030.

What could change the storyGrowth projects could lift value, but financing choices may dilute each owner’s share.

Bull case: record leasing, a 96.1% leased rate, and management’s 5.0%–7.5% annual funds-from-operations growth framework through 2028 could make today’s 15.7 multiple look modest. Bear case: debt was $4.77 billion before August’s refinancing, and higher future refinancing costs or tenant stress could slow per-share growth. Shares outstanding rose from 76.7 million in 2020 to 86.9 million in June 2026; another 493,374 shares were issued during the second quarter at $123.92, above today’s market. Investments must outrun both interest costs and dilution.

$118.39 price considered

AI: News

Stronger operating outlookStrong leasing, higher ongoing earnings, and a dividend increase supported a better full-year outlook.

On July 31, 2026, Federal Realty reported second-quarter core funds from operations of $1.88 a share, up 6.8%, and raised 2026 guidance to $7.48–$7.56. Occupancy reached 93.8%, comparable leases carried 15% higher cash rent, and the quarterly dividend rose 3% to $1.16. The shares closed at $124.09, unchanged from July 30; that muted one-day move does not prove investors ignored the stronger outlook.

Exchangeable debt financingCheap long-term notes ease refinancing pressure but introduce possible future share dilution.

On August 6, 2026, the operating partnership priced $400 million of 3.5% exchangeable senior notes due 2031, with about $392 million of expected net proceeds mainly earmarked to repay debt. The initial exchange price is $138.54, while capped-call hedges aim to limit dilution up to $165.07. FRT fell 3.22% that day to $117.91, but timing alone cannot establish that the financing caused the decline.

Growth plan through 2028Management mapped a credible growth path through 2028, raising the bar for future results.

At its May 21, 2026 investor day, management presented annual funds-from-operations growth ranges of 5.0% to 7.5% for 2026–2027 and 2027–2028, with a 6.25% midpoint. The framework relies on rent growth, development income, and recycling capital from property sales into better opportunities. Shares gained 2.2% that day to $118.61, yet the presentation cannot be isolated as the cause. Delivery against the range matters more than the target itself.

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No reported data

Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$1.28B	$1.20B	$1.13B	$1.07B	$951.2M	$835.5M	$935.8M	$915.4M	$857.3M	$801.6M	$744.0M	$686.1M	$637.4M	$605.8M	$551.1M	$541.8M	$528.6M	$519.6M
Operating expenses	$833.6M	$784.1M	$735.6M	$711.8M	$646.4M	$586.9M	$581.3M	$565.7M	$525.1M	$480.6M	$443.9M	$415.1M	$383.3M	$351.9M	$324.6M	$312.6M	$319.0M	$302.4M
Operating income	$602.2M	$472.4M	$406.5M	$526.4M	$394.7M	$289.5M	$470.9M	$361.6M	$410.2M	$321.0M	$300.2M	$271.0M	$254.2M	$253.9M	$226.5M	$229.2M	$209.5M	$217.3M
EBITDAderived	$970.0M	$815.0M	$728.2M	$828.8M	$674.7M	$544.6M	$710.7M	$605.9M	$626.3M	$514.6M	$474.9M	$441.9M	$415.0M	$395.6M	$352.4M	$348.1M	$324.0M	$328.0M
Net income	$411.1M	$295.2M	$237.0M	$385.5M	$261.5M	$131.7M	$353.9M	$241.9M	$289.9M	$249.9M	$210.2M	$164.5M	$162.7M	$151.9M	$143.9M	$122.8M	$98.3M	$129.8M
Basic EPSper diluted share	$4.68	$3.42	$2.80	$4.71	$3.26	$1.62	$4.61	$3.18	$3.97	$3.51	$3.04	$2.42	$2.47	$2.36	$2.29	$1.99	$1.63	$2.19
Diluted EPSper diluted share	$4.68	$3.42	$2.80	$4.71	$3.26	$1.62	$4.61	$3.18	$3.97	$3.50	$3.03	$2.41	$2.46	$2.35	$2.28	$1.98	$1.63	$2.19

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)6$6.42M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Sep 18, 2024Form 4	BERKES JEFFREY SPresident and COO	SellCommon Shares of Beneficial Interest	18.4K	$115.73	$2.12M	53.1K
Sep 9, 2024Form 4	WOOD DONALD CChief Executive Officer	SellCommon Shares of Beneficial Interest · indirect	253	$117.13	$29.6K	0
Sep 9, 2024Form 4	WOOD DONALD CChief Executive Officer	SellCommon Shares of Beneficial Interest · indirect	5.7K	$116.44	$661.8K	253
Sep 6, 2024Form 4	WOOD DONALD CChief Executive Officer	SellCommon Shares of Beneficial Interest · indirect	700	$116.47	$81.5K	5.9K
Sep 5, 2024Form 4	WOOD DONALD CChief Executive Officer	SellCommon Shares of Beneficial Interest · indirect	1.1K	$117.11	$123.0K	6.6K

Review ownership filings at SEC.gov ↗

FEDERAL REALTY INVESTMENT TRUST (FRT)

Financial charts

Financial statements

Insider buys & sells