Federal Realty Investment Trust(US:FRT)2026-02-12 21:07Financial Performance - For the full year 2025, net income available for common shareholders was $403.0 million, or $4.68 per diluted share, compared to $287.2 million and $3.42 per diluted share for 2024, representing a 40.5% increase in net income[9]. - Nareit FFO for 2025 was $624.3 million, or $7.22 per diluted share, an increase of 9.1% from $570.2 million, or $6.77 per diluted share in 2024[11]. - Total revenue for the year ended December 31, 2025, was $1,278,975,000, an increase from $1,202,452,000 in 2024[31]. - Operating income for the year ended December 31, 2025, was $602,199,000, compared to $472,356,000 in 2024, showing significant growth[31]. - Net income attributable to the Trust for the year ended December 31, 2025, was $411,077,000, up from $295,208,000 in 2024[31]. - Nareit FFO per diluted share for 2024 and 2025 were $6.77 and $7.22, respectively, with an estimated range of $7.42 to $7.52 for 2026, reflecting a growth of 2.8% to 4.2% over 2025[24]. - Core FFO for 2024 and 2025 were $6.77 and $7.06, respectively, with an estimated range of $7.42 to $7.52 for 2026, indicating a growth of 5.1% to 6.5% over 2025[24]. - The company reported a net income available for common shareholders per diluted share of $4.68 for 2025, with guidance for 2026 set between $3.90 and $4.00[96]. - The Nareit FFO per diluted share for 2025 was $7.22, with guidance for 2026 projected between $7.42 and $7.52[96]. Leasing Activity - The company achieved a record total leasing volume of 2.5 million square feet of retail space in 2025, with comparable rent spreads of 15% on a cash basis and 27% on a straight-line basis[8]. - The company signed 454 leases for 2,471,099 square feet of retail space in 2025, with an average rent of $37.98 per square foot, compared to $33.12 per square foot for the previous leases[15]. - In Q4 2025, Federal Realty Investment Trust signed 105 comparable leases totaling 600,684 square feet at an average rent of $39.09 PSF, reflecting a 12% annual increase over prior rent[81]. - For the full year 2025, the company signed a total of 434 comparable leases covering 2,340,282 square feet with an average rent of $37.98 PSF, achieving a 15% annual increase in rent[81]. - The renewal lease summary for Q4 2025 indicates 52 leases signed, covering 339,602 square feet at an average rent of $41.17 PSF, with a 4% annual increase in rent[83]. - The average lease term for new leases in Q4 2025 was 9.7 years, indicating a strong commitment from tenants[82]. - Federal Realty Investment Trust's overall leasing activity demonstrates a robust demand for retail spaces, with significant annual increases in rental rates across various lease categories[86]. Property and Portfolio Management - Comparable portfolio occupancy was 94.5% at year-end, up 50 basis points year-over-year, while the leased rate was 96.6%, up 40 basis points year-over-year[17]. - Federal Realty operates 104 properties with approximately 3,700 tenants across 28.8 million commercial square feet and about 2,700 residential units as of December 31, 2025[26]. - The company has significant redevelopment opportunities across various properties, including 1.5 million square feet of commercial-use buildings and 326 residential units at Assembly Row[65]. - The total portfolio of Federal Realty Investment Trust consists of 28,798,000 square feet across 2,318 properties, with an overall occupancy rate of 96% and an average rent of $32.79 per square foot[80]. - The company has ongoing expansion/conversion opportunities at successful retail properties to enhance GLA and productivity[67]. Capital Expenditures and Investments - A new redevelopment project at Willow Grove, PA, was announced with a projected cost of $110 - $120 million and an expected ROI of 7%[18]. - Non-maintenance capital expenditures for the year totaled $273.801 million, up from $227.893 million in 2024, indicating a focus on development and expansion[36]. - Total capital expenditures for the year were $303.163 million, compared to $252.445 million in 2024, reflecting increased investment in property[36]. - The company anticipates development/redevelopment capital expenditures of $175 million to $225 million for 2026, down from $194 million in 2025[96]. Debt and Liquidity - The company ended Q4 2025 with approximately $1.3 billion in total liquidity, supporting future growth initiatives[8]. - Total net debt as of December 31, 2025, was $4,835,685,000, an increase from $4,350,223,000 in 2024[47]. - The company's leverage ratio, measured as total net debt to market capitalization, increased to 35% in 2025 from 31% in 2024[47]. - The weighted average effective interest rate on total debt was 4.00% as of December 31, 2025[50]. - The total debt maturities amount to $4.96 billion, with 24.3% maturing in 2030 at a weighted average rate of 4.3%[57]. Future Guidance - For 2026, the company provided guidance of $3.90 to $4.00 for earnings per diluted share and $7.42 to $7.52 for Nareit and Core FFO per diluted share, indicating growth of 5.1% to 6.5% year-over-year[21]. - Estimated net income available for common shareholders per diluted share for full year 2026 is projected to be between $3.90 and $4.00[24]. - Nareit FFO per diluted share for 2026 is estimated to be between $7.42 and $7.52, reflecting a growth of 2.8% to 4.2% over 2025[97]. - Core FFO for 2026 is also estimated to be between $7.42 and $7.52, indicating a growth of 5.1% to 6.5% compared to 2025[97].