Is Federal Realty a Buy Below $100

Company Overview - Federal Realty is a retail landlord primarily owning strip malls and mixed-use developments, with a focus on retail assets that drive performance [1][2] - The company has a long-standing reputation for quality over quantity, owning around 100 properties with higher average population densities and incomes compared to peers [2] Business Model - Federal Realty emphasizes development and redevelopment, particularly in its mixed-use assets, which provide ongoing capital investment opportunities [3] - The company targets well-located strip malls that require improvements, allowing for attractive pricing and value enhancement through redevelopment efforts [4] Investment Strategy - When properties reach their full potential, Federal Realty sells them at favorable prices, using the proceeds to reinvest in new properties [5] - The company views economic downturns as opportunities to acquire properties at attractive prices, indicating a robust business plan resilient to market fluctuations [7] Dividend Performance - Federal Realty has increased its dividend annually for 57 consecutive years, making it the longest dividend streak among publicly traded REITs [1] - The current dividend yield is approximately 4.5%, significantly higher than the S&P 500 index fund's yield of 1.2% and the average REIT yield of 3.6%, making it attractive for dividend investors [8][10] Market Position - Although the yield has been higher during past recessions, the current yield is near the high end of its 10-year range, suggesting reasonable attractiveness for investment at the current price below $100 [9][10] - Long-term dividend investors are encouraged to consider adding Federal Realty to their portfolios as a foundational investment, while those seeking lower entry points may place it on their wish list [11]