Worried About a Sell-Off? This Record-Setting REIT Has You Covered

Core Viewpoint - Federal Realty is highlighted as a resilient investment option, particularly during volatile market conditions, due to its status as a Dividend King with a 4.5% yield and a strong track record of dividend increases [1][4]. Company Overview - Federal Realty has achieved 57 consecutive annual dividend increases, making it the only REIT classified as a Dividend King, significantly outpacing its peers [2]. - The company focuses on quality over quantity, managing around 100 well-located retail properties, primarily in affluent and densely populated areas [3]. Business Resilience - Federal Realty's properties are strategically located in areas where retailers prefer to operate, contributing to its robust business model [4]. - The company demonstrated resilience during economic downturns, such as the Great Recession and the COVID-19 pandemic, using challenging times to acquire new assets and enhance its portfolio [5][9]. Financial Performance - During the Great Recession (2007-2009), while its peer group experienced a 2.1% decline in funds from operations (FFO) in 2008, Federal Realty's FFO grew by 7.5% [7]. - In 2009, when the peer average FFO declined by 33.2%, Federal Realty's FFO only decreased by 2.8%, showcasing its superior performance [8]. - Federal Realty continued to grow its FFO in subsequent years, contrasting with its peers, which struggled to recover [8]. Investment Consideration - Given its strong track record and ability to navigate economic challenges, Federal Realty is positioned as a potential safe haven for investors concerned about market volatility [10].