Federal Realty Investment Trust tops quarterly expectations on leasing demand

Federal Realty Investment Trust

02/11/2023 20:25

Nov 2 (Reuters) - Federal Realty Investment Trust
 FRT.N  topped market expectations for third-quarter revenue and
funds from operations (FFO), helped by strong leasing demand at
its grocery-anchored shopping centers as well as mixed-use
properties.
    Demand for rental spaces has been healthy despite higher
borrowing rates, and with availability shrinking, commercial
real estate investment trusts have been able to maintain higher
rental prices as well. 
    Federal Realty has also benefited from lesser exposure to
tenants facing the brunt of a slowdown in discretionary spend,
as well as its pricing power, analysts have said.
    Its portfolio occupancy rose 20 basis points year-over-year
to 92.3%, as of Sept. 30. 
    The company reported third-quarter diluted FFO of $1.65 per
share. Analysts on average had expected FFO per share of $1.62,
as per LSEG data. 
    Federal Realty raised the lower end of its annual FFO
forecast, and now expects $6.50 to $6.58 per share, compared
with its earlier forecast of $6.46 and $6.58. 
    Third-quarter revenue of $286.6 million also topped market
expectations of $283.8 million.
    
    

 (Reporting by Juveria Tabassum; Editing by Krishna Chandra
Eluri)
 ((Juveria.Tabassum@thomsonreuters.com;))