Federal Realty Investment Trust beats quarterly revenue estimates

Federal Realty Investment Trust

30/10/2024 22:23

Oct 30 (Reuters) - Federal Realty Investment Trust
 FRT.N  beat third-quarter revenue estimates on Wednesday,
driven by resilient leasing demand for small shops and higher
rentals for its commercial real estate properties.
    Real Estate Investment Trusts (REITs) have been seeing an
increase in demand for their rental spaces from tenants,
including retailers and apparel makers, who are benefiting from
persistent consumer spending on trendy items.
    Federal Realty Investment Trust, which leases properties to
companies such as Dick's Sporting Goods  DKS.N  and Walmart
 WMT.N , has seen stable footfall, as customers have been
actively shopping during the back-to-school season. 
    The company posted revenue of $303.6 million in the quarter
ended Sept. 30, compared with analysts' average estimate of
$300.6 million, according to data compiled by LSEG.   
    Visits to fitness chains jumped 6.6% year-over-year from
July to September, while visits to superstores rose 2% during
the same period, according to Placer.ai data.
    However, its funds from operations (FFO), a key REIT metric,
came in at $1.71 per share, missing analysts' estimates of $1.72
per share.
    Federal Realty expects annual FFO per share to be in the
range of $6.76 to $6.86, compared with its prior FFO forecast of
$6.70 to $6.88 per share.
    FRT's portfolio was 94% occupied and 95.9% leased, as of
Sept. 30.
        The company owns and operates a portfolio of over 100
diverse properties, including shopping centers leased to
retailers such as Target  TGT.N , Best Buy  BBY.N  and Ulta
Beauty  ULTA.O , as well as dining, entertainment and office
spaces located in densely populated areas.
        

    

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Mohammed Safi Shamsi)
 ((AnujaBharat.Mistry@thomsonreuters.com;))