Federal Realty Investment misses quarterly revenue expectations

Federal Realty Investment Trust

12/02/2024 22:53

Feb 12 (Reuters) - Federal Realty Investment Trust
 FRT.N  fourth-quarter revenue from rental income fell short of
market expectations on Monday, impacted by softer leasing demand
at its mixed-use properties.
    Higher borrowing costs and crimped consumer spending have
slowed retailer expansion plans, hurting demand for commercial
real estate investment trusts such as FRT. 
    The REIT's portfolio comprises over 100 properties in 12
states, leased out to tenants, including restaurants and
offices, and located in densely populated areas.
    However, a significant portion of these properties are
anchored by grocers, as well as retailers such as Marshalls
parent TJX Companies  TJX.N .
    FRT's revenue from rental income for the fourth quarter rose
to $291.5 million from $279.8 million a year ago. Analysts, on
an average, expected revenue of $292.2 million, as per LSEG
data.
    FRT's portfolio was 92.2% occupied and 94.2% leased as of
December 31, 2023.
    The company's funds from operations, a key REIT metric, came
in at $1.64 per share, in line with market expectations.
    FRT expects 2024 FFO per diluted share of $6.65 to $6.87,
largely in line with expectations of $6.77 per share, as per
LSEG data.

 (Reporting by Juveria Tabassum; Editing by Tasim Zahid)
 ((Juveria.Tabassum@thomsonreuters.com;))