Federal Realty Investment Trust(US:FRT)2025-10-31 11:32Financial 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].