Federal Realty sees annual FFO above expectations on growing leasing demand

Nordstrom

13/02/2025 21:31

Feb 13 (Reuters) - Federal Realty Investment Trust  FRT.N  forecast annual funds from
operations (FFO) above estimates on Thursday, betting on higher rental prices and growing
leasing demand for its commercial real estate spaces.
    Retailers and grocery store operators such as Nordstrom  JWN.N  and Walmart  WMT.N  — who
are seeing steady consumer demand — have been expanding their footprint, helping boost demand
for real estate investment trusts including Federal Realty and Regency Centers  REG.O .
    Federal Realty said that, as of December 31, 2024, its portfolio was 96.2% leased, an over
200-basis-point increase compared with the prior year.
    Federal Realty's portfolio comprises over 100 diverse properties in densely populated areas,
including dining, entertainment and office spaces.
    It also includes shopping centers rented to retailers such as Target  TGT.N , Best Buy
 BBY.N , Nike  NKE.N  and Trader Joe's, among others.
    Federal Realty expects annual FFO per share to be in the range of $7.10 to $7.22, compared
with analysts' expectations of $7.00. 
    The company's quarterly revenue rose 6.7% to $311.4 million, compared with the analysts'
average estimate of $311.3 million, according to data compiled by LSEG.
    Its quarterly funds from operations, a key metric for REITs, came in at $1.73 per share,
compared with an analysts' estimate of $1.74 per share.
    Regency, which also counts Ulta Beauty  ULTA.O  and TJ Maxx-parent TJX  TJX.N  among its
tenants, topped fourth-quarter estimates for FFO, and Kimco Realty  KIM.N , which focuses on
grocery-anchored shopping centers, posted a year-over-year growth in quarterly FFO.
     
     

 (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Alan Barona)
 ((AnanyaMariam.Rajesh@thomsonreuters.com; X: @AnanyaMariam))