Federal Realty Investment Trust Announces Third Quarter 2024 Operating Results
Federal Realty Investment Trust (NYSE: FRT) reported its Q3 2024 results, showing a net income of $0.70 per diluted share, up from $0.67 in Q3 2023. Operating income rose to $105.8 million from $100.1 million. Funds from operations (FFO) per diluted share increased to $1.71 from $1.65. The company signed 126 leases for 580,977 sq. ft. at a cash basis rollover growth of 14%. Portfolio occupancy reached 94.0%, and leased rate was 95.9%, both up year-over-year. Small shop leasing ended at 93.1%, up 240 basis points year-over-year. The company acquired Pinole Vista Crossing, a 216,000 sq. ft. grocery-anchored center in California, for $60 million. 2024 guidance was raised, with EPS expected between $3.40-$3.50 and FFO per diluted share between $6.76-$6.86. A quarterly dividend of $1.10 per common share was declared, payable on January 15, 2025.
Federal Realty Investment Trust (NYSE: FRT) ha riportato i risultati del terzo trimestre del 2024, mostrando un reddito netto di $0,70 per azione diluita, in aumento rispetto ai $0,67 del terzo trimestre del 2023. Il reddito operativo è salito a $105,8 milioni, rispetto ai $100,1 milioni precedenti. I fondi delle operazioni (FFO) per azione diluita sono aumentati a $1,71 dai precedenti $1,65. L'azienda ha firmato 126 contratti di locazione per 580.977 piedi quadrati, con una crescita del rollover in base al contante del 14%. Il tasso di occupazione del portafoglio ha raggiunto il 94,0%, e il tasso di locazione è stato del 95,9%, entrambi in aumento anno su anno. La locazione dei negozi piccoli è terminata al 93,1%, un incremento di 240 punti base rispetto all'anno precedente. L'azienda ha acquisito Pinole Vista Crossing, un centro commerciale ancorato a un supermercato di 216.000 piedi quadrati in California, per $60 milioni. Le previsioni per il 2024 sono state riviste al rialzo, con un EPS previsto tra $3,40 e $3,50 e FFO per azione diluita tra $6,76 e $6,86. È stato dichiarato un dividendo trimestrale di $1,10 per azione ordinaria, pagabile il 15 gennaio 2025.
Federal Realty Investment Trust (NYSE: FRT) reportó sus resultados del tercer trimestre de 2024, mostrando un ingreso neto de $0,70 por acción diluida, un aumento desde los $0,67 del tercer trimestre de 2023. El ingreso operativo subió a $105,8 millones desde $100,1 millones. Los fondos de operaciones (FFO) por acción diluida aumentaron a $1,71 desde $1,65. La compañía firmó 126 contratos de arrendamiento para 580,977 pies cuadrados, con un crecimiento del rollover a base de efectivo del 14%. La ocupación de la cartera alcanzó el 94,0%, y la tasa de arrendamiento fue del 95,9%, ambos en aumento año tras año. El arrendamiento de pequeñas tiendas finalizó en el 93,1%, un aumento de 240 puntos básicos en comparación con el año anterior. La compañía adquirió Pinole Vista Crossing, un centro anclado por un supermercado de 216,000 pies cuadrados en California, por $60 millones. La orientación de 2024 se ha elevado, con un EPS esperado entre $3,40 y $3,50 y FFO por acción diluida entre $6,76 y $6,86. Se declaró un dividendo trimestral de $1,10 por acción común, pagadero el 15 de enero de 2025.
Federal Realty Investment Trust (NYSE: FRT)는 2024년 3분기 실적을 보고하며 희석 주당 순이익이 $0.70로 나타났습니다. 이는 2023년 3분기의 $0.67에서 증가한 수치입니다. 운영 수익은 $100.1 백만에서 $105.8 백만으로 증가했습니다. 운영 자금 (FFO) 희석 주당은 $1.65에서 $1.71로 증가했습니다. 회사는 현금 기반 롤오버 성장률이 14%인 580,977 평방 피트에 대한 126개의 임대 계약을 체결했습니다. 포트폴리오 점유율은 94.0%에 도달했으며, 임대 비율은 95.9%로, 두 수치 모두 작년 대비 증가했습니다. 소규모 상점 임대는 93.1%로 종료되었으며, 작년 대비 240 베이시스 포인트 증가했습니다. 회사는 캘리포니아의 216,000 평방 피트 규모의 식료품점 중심지인 Pinole Vista Crossing을 $60 백만에 인수했습니다. 2024년 가이던스가 상향 조정되어 EPS는 $3.40-$3.50, 희석 주당 FFO는 $6.76-$6.86으로 예상됩니다. 2025년 1월 15일에 지급될 $1.10의 분기 배당금이 선언되었습니다.
Federal Realty Investment Trust (NYSE: FRT) a publié ses résultats pour le troisième trimestre de 2024, affichant un revenu net de 0,70 $ par action diluée, en hausse par rapport à 0,67 $ au troisième trimestre de 2023. Le revenu d'exploitation a augmenté à 105,8 millions de dollars contre 100,1 millions de dollars. Les fonds provenant des opérations (FFO) par action diluée ont augmenté à 1,71 $ contre 1,65 $. L'entreprise a signé 126 baux pour 580 977 pieds carrés, avec une croissance du rollover en mode de paiement liquide de 14 %. Le taux d'occupation du portefeuille a atteint 94,0 %, et le taux de location était de 95,9 %, les deux en hausse par rapport à l'année précédente. La location des petits magasins a terminé à 93,1 %, en hausse de 240 points de base par rapport à l'année précédente. L'entreprise a acquis Pinole Vista Crossing, un centre commercial de 216 000 pieds carrés ancré par un supermarché en Californie, pour 60 millions de dollars. Les prévisions pour 2024 ont été revues à la hausse, avec un BPA prévu entre 3,40 $ et 3,50 $ et un FFO par action diluée entre 6,76 $ et 6,86 $. Un dividende trimestriel de 1,10 $ par action ordinaire a été déclaré, payable le 15 janvier 2025.
Federal Realty Investment Trust (NYSE: FRT) berichtete über die Ergebnisse des dritten Quartals 2024 und wies einen Nettogewinn von $0,70 pro verwässerter Aktie aus, was einem Anstieg gegenüber $0,67 im dritten Quartal 2023 entspricht. Das Betriebsergebnis stieg von $100,1 Millionen auf $105,8 Millionen. Die Fonds aus Operationen (FFO) pro verwässerter Aktie erhöhten sich von $1,65 auf $1,71. Das Unternehmen unterzeichnete 126 Mietverträge über insgesamt 580.977 Quadratfuß mit einem Cash-Basis-Rollover-Wachstum von 14%. Die Portfolio-Belegung erreichte 94,0%, und der Vermietungsgrad betrug 95,9%, beide im Jahresvergleich gestiegen. Die Vermietung kleiner Geschäfte endete bei 93,1%, ein Anstieg um 240 Basispunkte im Jahresvergleich. Das Unternehmen erwarb Pinole Vista Crossing, ein 216.000 Quadratfuß großes, von einem Lebensmittelgeschäft angehauchtes Einkaufszentrum in Kalifornien, für $60 Millionen. Die Prognose für 2024 wurde angehoben, mit einem erwarteten EPS zwischen $3,40 und $3,50 und einem FFO pro verwässerter Aktie zwischen $6,76 und $6,86. Eine vierteljährliche Dividende von $1,10 pro Stammaktie wurde bekannt gegeben, zahlbar am 15. Januar 2025.
- Net income per diluted share increased to $0.70 from $0.67 year-over-year.
- Operating income rose to $105.8 million from $100.1 million.
- FFO per diluted share increased to $1.71 from $1.65.
- Signed 126 leases for 580,977 sq. ft. with a 14% cash basis rollover growth.
- Portfolio occupancy improved to 94.0%, up 170 basis points year-over-year.
- Small shop leasing increased to 93.1%, up 240 basis points year-over-year.
- Acquired Pinole Vista Crossing for $60 million.
- Raised 2024 EPS guidance to $3.40-$3.50 and FFO per diluted share to $6.76-$6.86.
- None.
Insights
Federal Realty delivered a solid Q3 2024 performance with several positive indicators. FFO per share increased to
The strategic acquisition of Pinole Vista Crossing for
The strong leasing momentum across both anchor tenants (
Their focus on affluent coastal markets and mixed-use developments provides resilience against e-commerce pressures and economic uncertainty. The
Highlights for the third quarter include:
- Generated funds from operations available to common shareholders (FFO) per diluted share of
for the quarter, compared to$1.71 for the third quarter of 2023.$1.65 - Signed 126 leases for 580,977 square feet of comparable retail space at a cash basis rollover growth of
14% and26% on a straight-line basis. - Generated comparable property operating income (POI) growth of
2.9% for the third quarter, excluding lease termination fees and prior period rents collected. - Reported portfolio occupancy of
94.0% and a leased rate of95.9% at quarter end, representing an increase of:- +90 basis points of occupancy and +60 basis points of leased rate quarter-over-quarter
- +170 basis points of occupancy and +190 basis points of leased rate year-over-year
- Continued strong small shop leasing, ending the quarter at
93.1% leased, with an increase of +60 basis points quarter-over-quarter and +240 basis points year-over-year. - Acquired Pinole Vista Crossing in
Pinole, California , a grocery-anchored shopping center, comprising 216,000 square feet on 19 acres of land, for a purchase price of .$60 million - Tightened and raised 2024 earnings per diluted share guidance to
–$3.40 and 2024 FFO per diluted share guidance to$3.50 –$6.76 .$6.86
"Federal Realty delivered another strong quarter, driven by record FFO, elevated leasing activity, and significant occupancy gains," said Donald C. Wood, Chief Executive Officer. "The demographics of our properties continue to be our greatest asset. Looking ahead, we are confident that Federal Realty is well-positioned for continued success, thanks to our exposure to affluent and resilient shoppers who frequent our best-in-class properties."
Financial Results
Net Income
For the third quarter 2024, net income available for common shareholders was
FFO
For the third quarter 2024, FFO was
FFO is a non-GAAP supplemental earnings measure which the trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
Operational Update
Occupancy
As of September 30, 2024, the portfolio was
Small shop leased rate was
The anchor tenant leased rate was
Additionally, residential properties were
Leasing Activity
During the third quarter 2024, Federal Realty signed 129 leases for 592,527 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 126 leases for 580,977 square feet at an average rent of
Transaction Activity
- July 31, 2024 — Acquired Pinole Vista Crossing, a dominant 216,000-square-foot, 19-acre regional open-air grocery-anchored community center located along I-80 in
Pinole, CA , 13 miles north of Federal Realty's East Bay Bridge Shopping Center, for , expanding the company's presence in$60 million Northern California's East Bay sub-market.
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a
2024 Guidance
Federal Realty has updated its 2024 guidance, as summarized in the table below:
Full Year 2024 Guidance | Revised Guidance | Prior Guidance |
2024 Earnings per diluted share | ||
2024 FFO per diluted share |
Conference Call Information
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its third quarter 2024 earnings conference call, which is scheduled for Wednesday, October 30, 2024 at 5:00 PM ET. To participate, please call 1-844-826-3035 or 1-412-317-5195 five to ten minutes prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through November 13, 2024 by dialing 1-844-512-2921 or 1-412-317-6671; Passcode: 10192360.
About Federal Realty
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
Federal Realty has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Safe Harbor Language
Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2024 and include the following:
- risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;
- risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
- risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
- risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;
- risks associated with general economic conditions, including inflation and local economic conditions in our geographic markets;
- risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;
- risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and
- risks related to natural disasters, climate change and public health crises (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2024 and subsequent quarterly reports on Form 10-Q.
Federal Realty Investment Trust | |||
Consolidated Balance Sheets | |||
September 30, 2024 | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(in thousands, except share and | |||
(unaudited) | |||
ASSETS | |||
Real estate, at cost | |||
Operating (including | $ 10,355,292 | $ 9,932,891 | |
Construction-in-progress (including | 524,707 | 613,296 | |
10,879,999 | 10,546,187 | ||
Less accumulated depreciation and amortization (including | (3,115,910) | (2,963,519) | |
Net real estate | 7,764,089 | 7,582,668 | |
Cash and cash equivalents | 97,023 | 250,825 | |
Accounts and notes receivable, net | 206,513 | 201,733 | |
Mortgage notes receivable, net | 9,157 | 9,196 | |
Investment in partnerships | 33,008 | 34,870 | |
Operating lease right of use assets, net | 86,415 | 86,993 | |
Finance lease right of use assets, net | 6,685 | 6,850 | |
Prepaid expenses and other assets | 276,328 | 263,377 | |
TOTAL ASSETS | $ 8,479,218 | $ 8,436,512 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Liabilities | |||
Mortgages payable, net (including | $ 515,012 | $ 516,936 | |
Notes payable, net | 601,307 | 601,945 | |
Senior notes and debentures, net | 3,356,298 | 3,480,296 | |
Accounts payable and accrued expenses | 201,066 | 174,714 | |
Dividends payable | 95,849 | 92,634 | |
Security deposits payable | 30,284 | 30,482 | |
Operating lease liabilities | 75,409 | 75,870 | |
Finance lease liabilities | 12,754 | 12,670 | |
Other liabilities and deferred credits | 224,693 | 225,443 | |
Total liabilities | 5,112,672 | 5,210,990 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 180,946 | 183,363 | |
Shareholders' equity | |||
Preferred shares, authorized 15,000,000 shares, | |||
| 150,000 | 150,000 | |
| 9,822 | 9,822 | |
Common shares of beneficial interest, | 855 | 833 | |
Additional paid-in capital | 4,160,451 | 3,959,276 | |
Accumulated dividends in excess of net income | (1,211,833) | (1,160,474) | |
Accumulated other comprehensive income | 2,172 | 4,052 | |
Total shareholders' equity of the Trust | 3,111,467 | 2,963,509 | |
Noncontrolling interests | 74,133 | 78,650 | |
Total shareholders' equity | 3,185,600 | 3,042,159 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,479,218 | $ 8,436,512 |
Federal Realty Investment Trust | |||||||
Consolidated Income Statements | |||||||
September 30, 2024 | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
REVENUE | |||||||
Rental income | $ 303,352 | $ 286,323 | $ 890,172 | $ 839,509 | |||
Mortgage interest income | 281 | 281 | 836 | 833 | |||
Total revenue | 303,633 | 286,604 | 891,008 | 840,342 | |||
EXPENSES | |||||||
Rental expenses | 63,898 | 58,595 | 184,448 | 169,410 | |||
Real estate taxes | 36,053 | 33,045 | 105,402 | 97,992 | |||
General and administrative | 10,822 | 13,149 | 34,920 | 37,607 | |||
Depreciation and amortization | 87,028 | 81,731 | 255,481 | 239,342 | |||
Total operating expenses | 197,801 | 186,520 | 580,251 | 544,351 | |||
Gain on sale of real estate | — | — | 52,280 | 1,702 | |||
OPERATING INCOME | 105,832 | 100,084 | 363,037 | 297,693 | |||
OTHER INCOME/(EXPENSE) | |||||||
Other interest income | 978 | 721 | 3,512 | 3,775 | |||
Interest expense | (44,237) | (42,726) | (132,242) | (124,835) | |||
Income from partnerships | 888 | 1,313 | 1,825 | 3,494 | |||
NET INCOME | 63,461 | 59,392 | 236,132 | 180,127 | |||
Net income attributable to noncontrolling interests | (2,508) | (2,344) | (6,461) | (7,245) | |||
NET INCOME ATTRIBUTABLE TO THE TRUST | 60,953 | 57,048 | 229,671 | 172,882 | |||
Dividends on preferred shares | (2,008) | (2,008) | (6,024) | (6,024) | |||
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ 58,945 | $ 55,040 | $ 223,647 | $ 166,858 | |||
EARNINGS PER COMMON SHARE, BASIC AND DILUTED: | |||||||
Net income available for common shareholders | $ 0.70 | $ 0.67 | $ 2.68 | $ 2.04 | |||
Weighted average number of common shares | 83,994 | 81,274 | 83,180 | 81,210 |
Federal Realty Investment Trust | ||||||||
Funds From Operations | ||||||||
September 30, 2024 | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands, except per share data) | ||||||||
Funds from Operations available for common shareholders (FFO) | ||||||||
Net income | $ 63,461 | $ 59,392 | ||||||
Net income attributable to noncontrolling interests | (2,508) | (2,344) | (6,461) | (7,245) | ||||
Gain on sale of real estate | — | — | (52,280) | (1,702) | ||||
Depreciation and amortization of real estate assets | 76,581 | 71,802 | 225,676 | 212,792 | ||||
Amortization of initial direct costs of leases | 8,757 | 8,116 | 24,673 | 23,468 | ||||
Funds from operations | 146,291 | 136,966 | 427,740 | 407,440 | ||||
Dividends on preferred shares (1) | (1,875) | (1,875) | (5,625) | (5,625) | ||||
Income attributable to downREIT operating partnership units | 688 | 693 | 2,068 | 2,074 | ||||
Income attributable to unvested shares | (506) | (494) | (1,524) | (1,481) | ||||
FFO | ||||||||
Weighted average number of common shares, diluted (1)(2) | 84,714 | 82,004 | 83,904 | 81,942 | ||||
FFO per diluted share (2) | $ 1.71 | $ 1.65 | $ 5.04 | $ 4.91 | ||||
Notes: | |
(1) | For the three and nine months ended September 30, 2024 and 2023, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average number of common shares, diluted." |
(2) | The weighted average common shares used to compute FFO per diluted common share includes downREIT operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units is dilutive in the computation of FFO per diluted share, but is anti-dilutive for the computation of dilutive EPS for the three and nine months ended September 30, 2024 and 2023. |
Investor Inquiries: Leah Andress Brady Vice President, Investor Relations 301.998.8265 | Media Inquiries: Brenda Pomar Senior Director, Corporate Communications 301.998.8316 |
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SOURCE Federal Realty Investment Trust
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