Real Estate Portfolio - As of September 30, 2025, the company owned or had a majority interest in 103 retail real estate projects comprising approximately 27.9 million commercial square feet, with a leasing rate of 95.4% and an occupancy rate of 93.8%[84] - The company completed 2.4 million square feet of comparable space leasing in the last twelve months, with a leased rate of 95.4% and an occupied rate of 93.8%[104] - As of September 30, 2025, the leasable commercial square feet was 95.4% leased and 93.8% occupied, indicating a higher leased rate due to spaces under redevelopment[111] - For Q3 2025, the company signed retail leases totaling 775,000 square feet, with an average rental increase of 28% on a cash basis[112] - The percentage occupied at shopping centers was 93.8% as of September 30, 2025, compared to 94.0% in 2024[138] Acquisitions and Sales - The company acquired Del Monte Shopping Center for $123.5 million and Town Center Crossing and Town Center Plaza for $289.0 million during 2025, totaling $412.5 million in acquisitions[88][90] - During the nine months ended September 30, 2025, the company sold properties for net proceeds of $146.3 million, resulting in a net gain of $77.1 million[91] - The company acquired three properties for $599.5 million year to date through October 2025[157] Financial Performance - Total property revenue increased by $18.6 million, or 6.1%, to $322.3 million in Q3 2025 compared to $303.6 million in Q3 2024[119] - Property operating income rose by $12.9 million, or 6.3%, to $216.6 million in Q3 2025 compared to $203.7 million in Q3 2024[129] - Total property revenue increased by $51.9 million, or 5.8%, to $942.9 million for the nine months ended September 30, 2025, compared to $891.0 million for the same period in 2024[138] - Net income attributable to the Trust rose by $51.7 million, or 22.5%, to $281.3 million for the nine months ended September 30, 2025, compared to $229.7 million in 2024[135] - Property operating income increased by $33.5 million, or 5.6%, to $634.6 million for the nine months ended September 30, 2025, driven by acquisitions and higher rental rates[143] Expenses and Costs - General and administrative expenses increased by $0.8 million, or 7.6%, to $11.6 million in Q3 2025 compared to $10.8 million in Q3 2024[130] - Depreciation and amortization expense increased by $7.2 million, or 8.3%, to $94.3 million in Q3 2025 compared to $87.0 million in Q3 2024[131] - The company capitalized total costs of $220 million for the nine months ended September 30, 2025, compared to $204 million for the same period in 2024[102] - The company expects overall capital costs (excluding acquisitions) to be slightly above 2024 levels, with remaining costs of $285 million for development and redevelopment projects[157] Debt and Financing - The company amended its $600 million unsecured term loan, extending the maturity date to March 20, 2028, and increased the total amount outstanding to $750 million[93] - The company has $652.4 million of debt maturing in the next twelve months, including a $200.0 million mortgage loan secured by Bethesda Row[155] - Total debt outstanding as of September 30, 2025, was $4.7 billion, with a significant portion maturing in the next few years[165] - The weighted average interest rate on the revolving credit facility was 5.2% for the nine months ended September 30, 2025[156] - The company has interest rate swap agreements that effectively fix the rate on $300 million of its term loan at 4.21% until March 1, 2028[172] Cash Flow - Net cash provided by operating activities increased by $22.6 million to $477.5 million for the nine months ended September 30, 2025, compared to $454.9 million for the same period in 2024[159] - Net cash used in investing activities rose by $98.1 million to $473.5 million during the nine months ended September 30, 2025, from $375.5 million in the prior year[160] - Net cash used in financing activities decreased by $222.1 million to $11.8 million for the nine months ended September 30, 2025, down from $233.9 million in 2024[161] - Cash, cash equivalents, and restricted cash at the end of the period were $127.7 million, an increase of $22.1 million from $105.6 million at the end of the same period in 2024[159] Shareholder Returns - Cash dividends paid in the nine months ended September 30, 2025, were approximately $290.2 million[154] - The company intends to maintain its qualification as a REIT, which requires distributing at least 90% of its taxable income to shareholders[174] - The company must distribute at least 90% of its annual taxable income to maintain its REIT status, which may necessitate an increase in distributions if FFO significantly rises[176] Operational Strategy - The company continues to pursue acquisition opportunities that complement its portfolio and provide long-term growth[110] - The company has several ongoing development projects, including a 272,000 square foot office building at Pike & Rose expected to cost between $180 million and $190 million[107] - The company has redevelopment projects with a projected total cost of approximately $283 million, expected to stabilize over the next several years[108] - The company expects leasing activity in 2025 to align with historical averages of 2.0 to 2.4 million square feet of retail space each year[115] Interest Rate Management - The company uses interest rate protection and swap agreements to manage interest rate risk associated with its variable rate debt[180] - The company’s strategy includes entering into derivative financial instruments to hedge against interest rate fluctuations rather than for speculative purposes[180] - The company had $4.2 billion of fixed-rate debt outstanding as of September 30, 2025, with a potential fair value decrease of approximately $144.3 million if market interest rates increased by 1.0%[183] - The company’s variable rate debt outstanding was $552.4 million as of September 30, 2025, with an estimated annual interest expense increase of $5.5 million if market interest rates rose by 1.0%[184] Funds from Operations - Funds from operations (FFO) available for common shareholders for the three months ended September 30, 2025, was $153,045,000, an increase from $144,598,000 for the same period in 2024, representing a growth of 3.1%[178] - For the nine months ended September 30, 2025, FFO available for common shareholders was $465,061,000, compared to $422,659,000 in 2024, indicating a year-over-year increase of 10.0%[178] - The net income for the three months ended September 30, 2025, was $64,499,000, slightly up from $63,461,000 in 2024, reflecting a growth of 1.6%[178] - Depreciation and amortization of real estate assets for the three months ended September 30, 2025, was $81,155,000, compared to $76,581,000 in 2024, marking an increase of 5.5%[178] - The weighted average number of common shares, diluted, for the three months ended September 30, 2025, was 86,599,000, up from 84,714,000 in 2024[178]

Financial Performance - For Q3 2025, net income available for common shareholders was $59.6 million, or $0.69 per diluted share, compared to $58.9 million and $0.70 per diluted share in Q3 2024[7]. - Total revenue for Q3 2025 was $322.253 million, an increase of 6.3% from $303.633 million in Q3 2024[25]. - Net income attributable to the Trust for Q3 2025 was $61.649 million, up 1.1% from $60.953 million in Q3 2024[25]. - Funds from operations (FFO) for Q3 2025 reached $153.045 million, a 5.5% increase compared to $144.598 million in Q3 2024[27]. - The FFO per diluted share for Q3 2025 was $1.77, compared to $1.71 in Q3 2024, reflecting a 3.5% increase[27]. - EBITDAre for the three months ended September 30, 2025, was $207.569 million, compared to $195.634 million for the same period in 2024, reflecting a year-over-year increase of 6.4%[87]. - Funds From Operations (FFO) for the nine months ended September 30, 2025, was $621.730 million, up from $574.114 million in 2024, indicating a growth of 8.3%[87]. - Net income for the three months ended September 30, 2025, was $64.499 million, compared to $63.461 million in 2024, showing a slight increase of 1.6%[87]. Operational Highlights - Achieved record leasing volume of 727,029 square feet across 123 leases, with cash rent growth of 28% and straight-line rent growth of 43%[8]. - Comparable property operating income (POI) grew by 4.4%, excluding lease termination fees and prior period rents collected[8]. - Comparable portfolio occupancy was 94.0%, up 40 basis points quarter-over-quarter, while the leased rate was 95.7%, up 10 basis points quarter-over-quarter[8]. - The residential leased rate was reported at 96.0% as of September 30, 2025[11]. - The occupancy percentage for comparable commercial properties improved to 94.0% as of September 30, 2025, compared to 93.8% in 2024[38]. - The overall portfolio's occupied percentage is 93.8%, showing a slight increase from 93.6% in the previous quarter[77]. - The company has 3,629 active commercial tenant leases, an increase from 3,547 in the previous quarter[77]. Dividend Information - Federal Realty declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share[16]. - The company has increased its quarterly dividends for 58 consecutive years, the longest record in the REIT industry[21]. - The company declared regular common dividends of $97.474 million in Q3 2025, up from $93.442 million in Q3 2024[27]. - The dividend payout ratio as a percentage of FFO was 64% for Q3 2025, slightly down from 65% in Q3 2024[27]. Guidance and Projections - Updated 2025 earnings per diluted share guidance to $3.93 - $3.99, and raised FFO guidance to $7.05 - $7.11 per diluted share, representing 4.6% growth at the midpoint year-over-year[8]. - The estimated funds from operations (FFO) per diluted share for the full year 2025 is projected to be between $7.20 and $7.26[83]. - Comparable properties growth is projected to be between 3.5% and 4%, with a 0.4% negative impact from lower collection of prior period rents due to COVID-19[84]. - Development/redevelopment capital expenditures are forecasted to be between $170 million and $190 million[84]. Property Acquisitions and Developments - The company announced the acquisition of Annapolis Town Center for $187 million, totaling 479,000 square feet[8]. - Significant property acquisitions include Del Monte Shopping Center for $123.5 million and Town Center Crossing for $289.0 million, totaling 1,227,000 square feet[57]. - The projected cost for the Santana West development is between $325 million and $335 million, with an expected ROI of 5% to 6%[51]. - The redevelopment project at Pike & Rose has a projected cost of $180 million to $190 million, with an expected ROI of 6%[51]. - The company is actively working on eight property improvement projects with an expected ROI of 8% to 16% and a total projected cost of $50 million[51]. Debt and Financial Position - Total assets as of September 30, 2025, were $8.862 billion, up from $8.525 billion at the end of 2024, representing a 3.9% increase[26]. - Total liabilities increased to $5.396 billion as of September 30, 2025, compared to $5.100 billion at the end of 2024, marking a 5.8% rise[26]. - Total net debt as of September 30, 2025, was $4,612,033,000, up from $4,375,594,000 in 2024, representing a 5.4% increase[40]. - Total debt as of September 30, 2025, is $4,723,344,000, with a weighted average effective interest rate of 4.06%[41]. - Total fixed rate debt is $4,173,364,000, accounting for 88% of total debt, with a weighted average interest rate of 3.91%[41]. - Total variable rate debt is $549,980,000, representing 12% of total debt, with a weighted average interest rate of 5.17%[41]. - The company has scheduled debt maturities totaling $4,745,046,000, with 24.3% maturing in 2030[47]. Leasing Activity - In Q3 2025, the company signed 123 comparable leases totaling 727,029 square feet at an average rent of $35.71 PSF, with a 28% annual increase over prior rent[68]. - The total lease summary for 12 months shows 448 leases signed, covering 2,511,990 square feet at an average rent of $37.29 PSF, generating total contractual rent of $63,940,304[71]. - New leases in Q3 2025 included 57 leases for 234,886 square feet at an average rent of $45.16 PSF, with a 27% increase over prior rent[69]. - Renewal leases in Q3 2025 accounted for 66 leases covering 492,143 square feet at an average rent of $31.20 PSF, with a 29% annual increase over prior rent[70]. - The weighted average rent for total leases in Q3 2025 was $36.97 PSF, with a lease term averaging 8.3 years[72]. - The average contractual rent for new leases over the 12-month period was $39.98 PSF, with total contractual rent of $43,592,029[69]. - The company reported a total of 534 leases signed over the 12-month period, covering 3,642,222 square feet at an average rent of $33.41 PSF[72]. - The average annual increase for renewal leases over the 12-month period was 14%[70]. Property Management and Occupancy - Total properties in the Washington Metropolitan Area amount to 2,936,489 square feet with an average occupancy rate of 96%[62]. - The highest leased property is Bethesda Row with a leasing rate of 99% and an anchor GLA of 40,000 square feet[62]. - The total GLA for the California properties is 597,000 square feet with an average occupancy rate of 92%[62]. - The property with the largest estate at cost is Pike & Rose, valued at $902,546,000[62]. - The average occupancy rate for grocery anchors across the Washington Metropolitan Area is 96%[62]. - The property with the highest number of residential units is Congressional Plaza, which has 194 units[62]. - The total GLA for grocery anchors in the Washington Metropolitan Area is 556,000 square feet[62]. - The property with the lowest occupancy rate is Chesterbrook at 87%[62]. - The total estate at cost for all properties in the Washington Metropolitan Area is $2,936,489,000[62]. - The largest grocery anchor in terms of GLA is Kingstowne Towne Center with 135,000 square feet[62]. - Total California properties have a Gross Leasable Area (GLA) of 6,986,000 square feet with an overall leasing rate of 94%[63]. - The East Bay Bridge property has a GLA of 441,000 square feet and is 98% leased, with 199,000 square feet allocated to other retail tenants[63]. - The Del Monte Shopping Center has a GLA of 675,000 square feet and is 80% leased, featuring tenants like Whole Foods and Macy's[63]. - The Hastings Ranch Plaza is fully leased at 100% with a GLA of 273,000 square feet[63]. - The San Antonio Center has a GLA of 213,000 square feet and is also fully leased at 100%[63]. - The Westgate Center has a GLA of 650,000 square feet with a leasing rate of 90%[63]. - The Plaza El Segundo property has a GLA of 503,000 square feet and is 99% leased[63]. - The Grossmont Center has a GLA of 866,000 square feet and is 95% leased, featuring major tenants like Target and Walmart[63]. - The total GLA for NY Metro/New Jersey properties is 2,800,000 square feet with an average leasing rate of 95%[63]. - The Melville Mall is fully leased at 100% with a GLA of 241,000 square feet[63]. - Total properties under management amount to 27,936,000 square feet with an overall leasing rate of 95%[65]. - The New York Metro/New Jersey region has a total of 3,270,000 square feet with a leasing rate of 97%[64]. - The South Florida region has a total of 1,287,000 square feet with a leasing rate of 98%[65]. - The Philadelphia Metropolitan Area has a total of 1,920,000 square feet with a leasing rate of 96%[65]. - The Chicago region has a total of 778,000 square feet with a leasing rate of 96%[65]. - The Baltimore region has a total of 1,111,000 square feet with a leasing rate of 97%[65]. - The total cost of properties managed is $11,374,694,000[65]. - The highest leasing rate recorded is 100% at properties like Campus Plaza and North Dartmouth[64]. - The average leasing rate across all regions is approximately 95%[65].

Core Insights - Federal Realty Investment Trust reported a net income of $59.6 million for Q3 2025, with earnings per diluted share at $0.69, slightly down from $0.70 in Q3 2024 [3][6] - The company achieved a record leasing volume of 727,029 square feet, with rent growth of 28% on a cash basis and 43% on a straight-line basis [6][8] - Federal Realty's FFO for Q3 2025 was $153.0 million, or $1.77 per diluted share, compared to $144.6 million, or $1.71 per diluted share in Q3 2024, marking a 3.5% increase [4][6] Financial Results - Net income available for common shareholders for Q3 2025 was $59.6 million, compared to $58.9 million in Q3 2024 [3][18] - FFO for Q3 2025 was $153.0 million, an increase from $144.6 million in Q3 2024 [4][19] - Total revenue for Q3 2025 was $322.3 million, up from $303.6 million in Q3 2024 [18] Operational Update - The residential leased rate was 96.0% as of September 30, 2025 [5] - Comparable portfolio occupancy was 94.0%, up 40 basis points sequentially and 20 basis points year-over-year [7] - The company signed 132 leases totaling 774,890 square feet during Q3 2025, with an average rent of $35.71 per square foot, compared to $27.85 under prior leases [8] Transaction Activity - Federal Realty announced the acquisition of Annapolis Town Center for $187 million, totaling 479,000 square feet [6][22] - The company declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share [9][10] 2025 Guidance - The company updated its 2025 earnings per diluted share guidance to $3.93 - $3.99, and raised its FFO per diluted share guidance to $7.05 - $7.11 [11][12]

Core Viewpoint - Federal Realty Investment Trust (FRT) is expected to report its third-quarter 2025 results on October 31, with analysts keen to evaluate its performance amid current economic conditions [1] Company Performance - In the last reported quarter, FRT's funds from operations (FFO) per share was $1.91, exceeding the Zacks Consensus Estimate of $1.73, driven by strong leasing activity, higher occupancy levels, and rental rates [2] - Over the past four quarters, FRT surpassed estimates twice, met once, and missed once, with an average beat of 2.60% [2] - The Zacks Consensus Estimate for the third-quarter FFO per share has been revised down to $1.76, indicating a 2.92% year-over-year increase [13] U.S. Retail Real Estate Market - The U.S. shopping center market experienced positive net absorption of 323,000 square feet in Q3 2025, a significant improvement from the negative 6.5 million square feet in the previous quarter [4] - Asking rents for U.S. shopping centers rose to $25.01 per square foot, reflecting a 1.8% increase year-over-year, although the growth rate has slowed from 4% earlier in 2024 [5] - The national vacancy rate for shopping centers remained at 5.8%, unchanged from the previous quarter but up by 50 basis points year-over-year [6] Factors Influencing FRT - FRT is likely benefiting from increased demand for premium retail assets in upscale locations and a diverse tenant base, alongside falling supply levels that positively impact occupancy and rent growth [8][10] - The estimated leased occupancy rate for FRT is 96%, up 60 basis points sequentially, with rent per square foot projected to grow by 0.6% year-over-year [9][10] - FRT's revenue growth is supported by value-accretive acquisitions and the development of urban mixed-use assets [10] Revenue Projections - The Zacks Consensus Estimate for FRT's quarterly revenues is $313.89 million, indicating a 3.38% increase from the previous year [11] - Rental revenues are expected to rise to $309.51 million from $303.35 million year-over-year, with minimum rents projected at $204.54 million, up from $198.56 million [11] Interest Expenses - High interest expenses are anticipated to have a negative impact on FRT's performance, with a projected 7.4% year-over-year increase in interest expenses for Q3 2025 [12]

Core Viewpoint - Investors should prioritize the quality of the business over high dividend yields when selecting dividend stocks, as a high yield may mask underlying issues within a company [1]. Group 1: Federal Realty (FRT) - Federal Realty is a Dividend King REIT, having increased its dividend annually for over five decades, making it the only REIT to achieve this status [5]. - The current dividend yield for Federal Realty is 4.5%, which is lower than AGNC Investment's 14% yield, but its reliable income stream is more suitable for investors needing consistent returns [5]. - Federal Realty's market capitalization is $9 billion, with a current price of $101.30 and a gross margin of 38.91% [4]. Group 2: Rexford Industrial (REXR) - Rexford Industrial focuses on industrial assets in Southern California, a market known for strong performance and supply constraints [8]. - The current dividend yield for Rexford is approximately 3.9%, which is lower than AGNC Investment's yield, but Rexford has consistently increased its dividend for over a decade [9]. - Rexford's market capitalization is $10 billion, with a current price of $42.20 and a gross margin of 46.12% [12]. Group 3: Bank of Nova Scotia (BNS) - Bank of Nova Scotia offers a dividend yield of 4.9% and is one of the largest banks in Canada, benefiting from a highly regulated environment [16]. - The bank is currently in a turnaround phase, focusing on refining its non-Canadian operations while expanding its presence in the U.S. [18]. - Bank of Nova Scotia has a market capitalization of $80 billion, with a current price of $64.78 [17]. Group 4: AGNC Investment - AGNC Investment is a mortgage REIT that has shown volatility in its dividend payments, making it less reliable for investors seeking consistent income [20]. - Despite being well-managed, AGNC's historically high dividend yield does not compensate for its volatility, making it less suitable for those needing stable dividends [20]. - Investors are advised to consider more reliable options like Federal Realty, Rexford, or Bank of Nova Scotia instead of AGNC [21].

Group 1 - The article highlights that many dividend stocks are currently undervalued as the market focuses on high-growth names and cryptocurrencies [2] - It emphasizes the importance of being selective in investment choices, particularly for conservative investors who prefer defensive stocks with a medium- to long-term investment horizon [2] Group 2 - iREIT+HOYA Capital is presented as a leading income-focused investing service, concentrating on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]

Core Insights - The Federal Reserve's interest rate cuts in September have negatively impacted the real estate sector, particularly real estate investment trusts (REITs) and related ETFs, which have shown losses over the past 30 and 90 days [1] Group 1: Market Performance - Despite recent disappointments, investors are advised not to hastily dismiss REITs and related ETFs, as further rate cuts may present new opportunities [2] - The ALPS Active REIT ETF, which is actively managed, could be a viable option for investors looking at real estate funds [2][3] Group 2: REITs with Recovery Potential - Some REITs, such as Americold Realty Trust (COLD), have seen significant declines (down nearly 51% over the past year) but may now represent value plays with rebound potential [4] - Morningstar analysts highlight Americold as a top idea in the sector, alongside Federal Realty Investment Trust (FRT), which is down 13.21% year-to-date but may recover as interest in retail REITs grows [5] Group 3: Federal Realty Investment Trust (FRT) Analysis - Federal Realty has the highest average population density and per capita income among shopping center REITs, which supports its strong growth prospects and high dividend yield [6] - Concerns regarding 10% of Federal Realty's rent coming from office tenants have contributed to its sell-off, but its high-quality portfolio is expected to trade at a premium compared to industry peers [6]

Core Insights - Federal Realty Investment Trust (NYSE:FRT) is recognized as one of the Top 15 Growth Stocks for Long-Term Investors [1] - The company is a real estate investment trust that focuses on acquiring and redeveloping premium shopping centers in prime metropolitan areas, enhancing their appeal for shoppers and tenants [2] - Federal Realty has a strong track record of dividend growth, having increased its quarterly dividend by 3% to $1.13 per share, marking 58 consecutive years of dividend increases [4] Company Overview - Federal Realty Investment Trust owns and operates strip malls and mixed-use properties, with a focus on premium shopping centers [2] - The company is diversifying its income sources by adding approximately 3,100 residential units, hotels, and office spaces to its portfolio [2] Financial Performance - The company has maintained a prudent payout ratio and solid balance sheet, allowing it to sustain its dividend and invest in portfolio expansion [3] - As of October 12, the stock offers an attractive dividend yield of 4.73% [4]

Core Insights - Federal Realty Investment Trust has announced the acquisition of Annapolis Town Center for $187 million, a 480,000-square-foot open-air shopping destination in Maryland, enhancing its portfolio of dominant retail assets [1][2] - The acquisition aligns with Federal's strategy of investing in well-located retail centers with strong demographics and value-creation potential, aiming for operational improvements and capital investment [2][4] Acquisition Details - Annapolis Town Center is anchored by a Whole Foods and shadow-anchored by Target, featuring a mix of national brands such as Anthropologie and Sephora, situated in a high-income area with strong retail fundamentals [1][2] - The acquisition is part of a broader strategy to enhance Federal's portfolio through dominant assets that offer both near- and long-term performance opportunities [2][4] Recent Performance and Strategy - Federal has demonstrated sustained leasing momentum and rent growth across recent acquisitions, reinforcing its ability to create value through strategic execution and active portfolio management [3][4] - Recent acquisitions have included significant leasing activity, with multiple leases executed or in-process across various properties, indicating strong tenant demand [5] Company Overview - Federal Realty is a leader in the ownership and redevelopment of high-quality retail properties, focusing on major coastal markets and underserved regions, with a portfolio of 102 properties and approximately 3,500 tenants [6] - The company has a long-standing record of increasing quarterly dividends for 58 consecutive years, reflecting its commitment to sustainable growth [6]

Core Viewpoint - The collection of Dividend Kings represents both reliable dividend stocks and businesses that have consistently grown over time, aligning with a long-term investment strategy [1] Group 1: Coca-Cola (NYSE: KO) - Coca-Cola is a Dividend King, having increased its dividend for 63 consecutive years, and is owned by Warren Buffett [3][6] - The stock appears reasonably priced, with price-to-sales and price-to-earnings ratios below their five-year averages, and a dividend yield of nearly 3.1%, higher than the market average of 1.2% and the average consumer staples yield of 2.7% [4] - Coca-Cola is an industry leader in the beverage sector with a global reach, strong distribution, marketing, and R&D capabilities, and the size to consolidate brands effectively [5] - Despite facing pressure from a consumer shift towards healthier options, Coca-Cola has a history of adapting and growing [6] Group 2: Federal Realty (NYSE: FRT) - Federal Realty is the only real estate investment trust (REIT) on the Dividend King list, having increased its dividend for 58 years [8] - REITs are designed to pass income to shareholders in a tax-efficient manner, typically offering high yields; Federal Realty's yield is nearly 4.7%, surpassing the S&P 500's yield of 1.2% and the average REIT's yield of 3.2% [9]