Federal Realty Investment Trust(US:FRT) ZACKS·2026-02-11 16:31Core Insights - Federal Realty Investment Trust (FRT) is scheduled to report its fourth-quarter and full-year 2025 results on February 12, with analysts keen to evaluate its performance in the current economic environment [1][10]. Company Performance - In the last reported quarter, FRT's funds from operations (FFO) per share was $1.77, exceeding the Zacks Consensus Estimate of $1.76, driven by increased comparable property operating income and strong leasing activity [2]. - Over the past four quarters, FRT has surpassed estimates three times, with an average beat of 2.89% [2]. - The Zacks Consensus Estimate for FRT's fourth-quarter revenues is $328.96 million, indicating a 5.63% increase year-over-year, while rental revenues are projected at $323.79 million, up from $303.88 million [8][12]. Market Environment - The U.S. retail real estate market showed signs of stabilization in Q4 2025, supported by steady consumer demand and limited new supply, leading to improved occupancy rates [3][4]. - National retail vacancy was reported at 5.7%, reflecting tighter conditions compared to historical norms, with approximately 3.4 million square feet of net absorption in Q4, marking the strongest quarterly improvement since Q4 2023 [4][5]. Factors Influencing FRT - FRT is expected to benefit from high demand for its quality retail properties in affluent markets, aided by a well-diversified tenant mix and limited new supply in its operating regions [6]. - The company's leased occupancy rate is estimated at 96.3%, with a projected year-over-year rent per square foot increase of 1.1% [7][10]. - FRT's interest expenses are anticipated to rise by 11.1% year-over-year, which may impact performance, although FFO estimates have been revised up to $1.86 per share [9][11]. Full-Year Projections - For the full year, the Zacks Consensus Estimate for FRT's FFO per share is $7.24, reflecting a 6.94% year-over-year increase, with revenues projected to rise by 5.85% [12].