Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,400 tenants, in 27 million commercial square feet, and approximately 3,100 residential units.
Prime Positioning | Federal Realty's focus on high-demographic shopping centers in major coastal markets positions it well amidst retail sector challenges and evolving consumer trends |
Leasing Strength | Robust signed-but-not-occupied pipeline and increased retailer interest in secondary urban markets underscore FRT's resilience in a competitive landscape |
Financial Outlook | Analysts project 2.3% FFO growth for FY2024, slightly below the broader REIT sector. BMO Capital Markets maintains an Outperform rating as of August 2024 |
Navigating Headwinds | FRT faces potential risks from retail slowdown and increased credit risks, but its strategic portfolio and conservative management approach may provide a buffe |
Metrics to compare | FRT | Sector Sector - Average of metrics from a broad group of related Real Estate sector companies | Relationship RelationshipFRTPeersSector | |
---|---|---|---|---|
P/E Ratio | 33.9x | 30.8x | 7.4x | |
PEG Ratio | - | 0.04 | 0.01 | |
Price/Book | 3.3x | 1.4x | 0.9x | |
Price / LTM Sales | 8.2x | 5.0x | 4.0x | |
Upside (Analyst Target) | 9.9% | 6.3% | 15.8% | |
Fair Value Upside | Unlock | −4.6% | 0.4% | Unlock |