Federal Realty Investment Trust Reports Second Quarter 2025 Results

Core Viewpoint - Federal Realty Investment Trust reported strong financial results for the second quarter of 2025, with significant increases in net income and funds from operations (FFO), leading to raised guidance for the remainder of the year [2][3][11]. Financial Results - For Q2 2025, net income available for common shareholders was $153.9 million, or $1.78 per diluted share, compared to $110.0 million, or $1.32 per diluted share in Q2 2024 [3][22]. - Operating income for the same periods was $202.7 million in Q2 2025, up from $157.0 million in Q2 2024 [3][22]. - FFO for Q2 2025 was $165.5 million, or $1.91 per diluted share, which includes $13.0 million of new market tax credit transaction income [4][23]. Operational Update - The overall portfolio occupancy was reported at 93.6%, with a leased rate of 95.4% at the end of Q2 2025, reflecting a year-over-year increase of 50 basis points in occupancy and 10 basis points in leased rate [5][13]. - The company signed 119 leases for 643,810 square feet of comparable retail space, achieving a cash basis rollover growth of 10% and 21% on a straight-line basis [5][7]. Transaction Activity - Federal Realty acquired two open-air retail centers in Leawood, KS, totaling 550,000 square feet for $289 million and sold two properties in California for $143 million [5][14]. - Construction commenced on a 258-unit residential project at Santana Row in San Jose, CA, with an expected total investment of approximately $145 million [8][14]. Dividend and Guidance - The quarterly cash dividend was increased by approximately 3% to $1.13 per common share, marking the 58th consecutive year of dividend increases [9][11]. - The company raised its 2025 earnings per diluted share guidance to a range of $3.91 to $4.01 and FFO per diluted share to $7.16 to $7.26, representing over 6% growth at the midpoint year-over-year [11].