Federal Realty Investment Trust Reports First Quarter 2025 Results

Core Insights - Federal Realty Investment Trust reported strong financial results for Q1 2025, with net income available for common shareholders increasing to $61.8 million or $0.72 per diluted share, compared to $54.7 million or $0.66 per diluted share in Q1 2024 [3][22] - The company experienced a growth in Funds From Operations (FFO), reaching $146.5 million or $1.70 per diluted share, up from $136.7 million or $1.64 per diluted share in the same period last year [4][23] - Federal Realty's CEO expressed confidence in the company's resilience against economic cycles, highlighting strong foot traffic and a diverse tenant base in affluent markets [2] Financial Results - Net income for Q1 2025 was $61.8 million, an increase of 12.9% from $54.7 million in Q1 2024 [3] - Operating income rose to $108.1 million from $100.2 million year-over-year [1][22] - Total revenue for Q1 2025 was $309.2 million, compared to $291.3 million in Q1 2024, reflecting a year-over-year increase [22] Operational Update - The comparable portfolio occupancy rate was reported at 93.6%, up 180 basis points year-over-year, while the leased rate was 95.9%, an increase of 160 basis points [5][6] - The small shop leased rate improved to 93.5%, marking a 210 basis point increase year-over-year [6] - The company extended its $600 million unsecured term loan maturity to March 2028, enhancing its liquidity position to nearly $1.5 billion [5][14] Leasing Activity - In Q1 2025, Federal Realty signed 91 leases for a total of 429,865 square feet, with an average rent of $40.63 per square foot, representing a 6% cash basis rollover growth compared to the previous leases [8] - Comparable leases accounted for 96% of total leases signed during the quarter [8] Acquisitions - The company completed the acquisition of Del Monte Shopping Center in Monterey, California for $123.5 million on February 25, 2025 [9][5] Financing Activity - Federal Realty declared a regular quarterly cash dividend of $1.10 per common share, resulting in an indicated annual rate of $4.40 per share [10] - The company has consistently increased its quarterly dividends for 57 consecutive years, the longest record in the REIT industry [16] 2025 Guidance - The company maintained its earnings per diluted share guidance for 2025 at $3.00 to $3.12 and raised its FFO per share guidance to $7.11 to $7.23, indicating a 6% growth at the midpoint year-over-year [12]