This Elite Financial King Could See Payout Growth Hit 7% By 2028

Core Viewpoint - Federal Realty is the only REIT to achieve Dividend King status, boasting 58 consecutive annual dividend increases, the longest streak in the REIT sector [1][2]. Company Overview - Federal Realty is a relatively small REIT with a portfolio of around 100 properties, focusing on quality over quantity [2][4]. - The company primarily owns strip malls and mixed-use developments, which are strategically located in areas with higher population density and average incomes compared to peers [5][4]. Investment Strategy - Federal Realty emphasizes development and redevelopment, ensuring its properties remain competitive and appealing to retailers and consumers [6][5]. - The company actively manages its portfolio, frequently buying and selling properties to maximize value for shareholders [7]. Financial Performance - The current market capitalization of Federal Realty is $8 billion, with a current price of $97.88 and a dividend yield of 4.53%, higher than the average REIT yield of 3.9% [8][14]. - Occupancy stands at 93.8%, below the 20-year average of 95.4%, indicating potential for further improvement [12]. - Management has raised its full-year funds from operations (FFO) projection, suggesting a 4.6% growth, indicating an upswing in business performance [12]. Dividend Growth - Federal Realty's dividend growth has been modest during challenging times, with a recent increase rate of just under 3%, but historical data shows higher growth rates during better economic conditions [9][11]. - The company is projected to achieve a 7% dividend growth by 2028, which may be conservative based on historical trends [14][13].