Federal Realty (FRT) Q2 Revenue Up 5%

Core Viewpoint - Federal Realty Investment Trust reported strong Q2 2025 results, with notable growth in revenue and non-GAAP EPS, although part of the performance was influenced by a one-time tax credit transaction [1][5][12] Financial Performance - Non-GAAP EPS (NAREIT FFO per diluted share) was $1.91, up 13% from $1.69 in Q2 2024 [2][12] - GAAP revenue reached $311.5 million, a 5.2% increase from $296.1 million in Q2 2024 [2][5] - Comparable property operating income (POI) grew by 4.9% year-over-year [2][6] - Portfolio occupancy at the end of the period was 93.6%, up from 93.1% in Q2 2024 [2][6] Strategic Focus - The trust focuses on high-traffic, affluent urban and suburban locations, primarily through open-air shopping centers and mixed-use developments [3] - The company aims for steady growth via strategic reinvestment, disciplined acquisitions, and careful capital management [4] Leasing and Tenant Management - The trust signed 119 comparable retail leases for 643,810 square feet, with a 10% increase in cash rent on expiring leases [6] - Tenant diversification is a key strategy, with the largest tenant accounting for only 2.6% of annualized base rent [7] Transactions and Developments - The trust acquired Town Center Plaza and Town Center Crossing for $289 million and sold two California properties for $143 million [8] - Ground broke on a 258-unit residential project at Santana Row, with an expected investment of approximately $145 million [8][9] Capital Structure and Dividends - The company maintained strong liquidity with over $1.5 billion in total liquidity and a net debt of $4.31 billion [10] - The quarterly dividend was increased by approximately 3% to $1.13 per share, marking the 58th consecutive annual increase [11][15] Guidance and Outlook - Management raised its full-year guidance for GAAP earnings per diluted share to a range of $3.91 to $4.01 [13] - Full-year FFO per share guidance increased to $7.16 to $7.26, including the one-time tax credit [13] - Comparable property operating income growth guidance is now anticipated to be between 3.25% and 4.0% for the full year [13][14]