Federal Realty's (FRT) Q2 FFO & Revenues Beat, Dividend Hiked

Core Viewpoint - Federal Realty Investment Trust (FRT) reported strong second-quarter 2024 results, with funds from operations (FFO) per share of $1.69, exceeding estimates and reflecting healthy leasing activity and revenue growth [1][2]. Financial Performance - FRT's quarterly revenues reached $296.1 million, surpassing the consensus estimate of $292.9 million and showing a 5.5% increase from the previous year [2]. - The FFO per share increased by 1.2% from $1.67 in the same quarter last year [1]. Leasing Activity - In the reported quarter, FRT signed 124 leases for 600,669 square feet of retail space, with an average rent of $37.72 per square foot, indicating cash-basis rollover growth of 10% and 23% on a straight-line basis [2]. - The portfolio occupancy rate rose by 30 basis points year over year to 93.1%, with a leasing rate of 95.3%, up 100 basis points from the previous year [3]. Operational Metrics - Comparable property operating income grew by 2.9% in the second quarter, excluding lease termination fees and prior-period rents [4]. - FRT ended the quarter with cash and cash equivalents of $103.2 million, an increase from $95.9 million at the end of the first quarter [4]. Portfolio Activity - In April 2024, FRT acquired a 10% non-controlling interest in the partnership owning CocoWalk for $12.4 million, bringing its ownership to 100% [5]. - In May 2024, FRT purchased the Virginia Gateway community center for $215 million, expanding its regional presence [5]. - FRT sold residual assets on Third Street Promenade for $103 million in June 2024, resulting in a gain of $52 million [6]. Dividend Announcement - FRT announced a quarterly cash dividend of $1.10 per share, an increase from $1.09, marking the 57th consecutive year of dividend increases [7]. - The new dividend reflects an annual rate of $4.40 per share, payable on October 15 to shareholders of record as of October 1, 2024 [7]. Guidance - FRT revised its 2024 FFO per share guidance to a range of $6.70-$6.88, up from the previous range of $6.67-$6.87, aligning with the Zacks Consensus Estimate of $6.80 [8].