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Federal Realty (FRT) Beats Q4 FFO Estimates, Raises 2022 View
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Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2021 funds from operations (FFO) per share of $1.47 surpassed the Zacks Consensus Estimate of $1.41. This also compares favorably with the year-ago quarter’s tally of $1.14 (excluding the early extinguishment of debt charge).
Results reflect better-than-anticipated revenues. This retail REIT also raised its guidance for 2022 FFO per share.
Quarterly revenues of $254.2 million topped the consensus mark of $249.1 million and improved 15.8% from the year-ago quarter’s tally.
According to Donald C. Wood, the company’s chief executive officer, "Leasing momentum continued at unprecedented levels, clear indication of strong demand for our properties and our locations.”
Federal Realty also collected about 97% of the total fourth-quarter 2021 billed recurring rents as of Jan 31, 2022.
Quarter in Detail
During the reported quarter, FRT signed 125 leases for 619,629 square feet of retail space. On a comparable space basis, the company signed 116 leases for 597,673 square feet of space at an average rent of $34.34 per square foot. This denotes cash-basis rollover growth of 6%, 12% on a straight-line basis.
As of Dec 31, Federal Realty’s portfolio was 91.1% occupied, denoting a sequential expansion of 90 basis points (bps). The company reported a 250-bps spread between leased and occupied.
The small shop leased rate was 87.4% as of the quarter end, reflecting an increase of 130 bps sequentially. Federal Realty also signed leases for 276,586 square feet of office space during the quarter.
During the fourth quarter, FRT sold two shopping centers and a portion of two properties for a total of $121.4 million, leading the 2021 total disposition proceeds tally to $141.6 million.
Federal Realty exited 2021 with cash and cash equivalents of $162.1 million, down from $798.3 million recorded at the end of 2020.
Guidance
For 2022, Federal Realty raised its guidance and now estimates FFO per share of $5.75 at $5.95 compared with the $5.65-$5.85 range projected earlier. The Zacks Consensus Estimate for the same is currently pinned at $5.85.
Dividend Update
Concurrent with the fourth-quarter earnings release, Federal Realty announced regular quarterly cash dividend of $1.07 per share, which indicates an annual rate of $4.28 per share. The dividend will be paid out on Apr 15 to shareholders of record as of Mar 16, 2022.
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2021 FFO per share of $3.09 exceeded the Zacks Consensus Estimate of $2.88. Simon Property’s performance was backed by occupancy and NOI growth. However, SPG generated revenues of $1.33 billion during the quarter, lagging the Zacks Consensus Estimate of $1.35 billion.
Kimco Realty Corp.’s (KIM - Free Report) fourth-quarter 2021 NAREIT FFO came in at 39 cents per share, topping the Zacks Consensus Estimate of 37 cents. This figure also compared favorably with the year-ago quarter’s tally of 31 cents. Kimco’s results reflected better-than-anticipated revenues. KIM also issued its 2022 outlook.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Federal Realty (FRT) Beats Q4 FFO Estimates, Raises 2022 View
Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2021 funds from operations (FFO) per share of $1.47 surpassed the Zacks Consensus Estimate of $1.41. This also compares favorably with the year-ago quarter’s tally of $1.14 (excluding the early extinguishment of debt charge).
Results reflect better-than-anticipated revenues. This retail REIT also raised its guidance for 2022 FFO per share.
Quarterly revenues of $254.2 million topped the consensus mark of $249.1 million and improved 15.8% from the year-ago quarter’s tally.
According to Donald C. Wood, the company’s chief executive officer, "Leasing momentum continued at unprecedented levels, clear indication of strong demand for our properties and our locations.”
Federal Realty also collected about 97% of the total fourth-quarter 2021 billed recurring rents as of Jan 31, 2022.
Quarter in Detail
During the reported quarter, FRT signed 125 leases for 619,629 square feet of retail space. On a comparable space basis, the company signed 116 leases for 597,673 square feet of space at an average rent of $34.34 per square foot. This denotes cash-basis rollover growth of 6%, 12% on a straight-line basis.
As of Dec 31, Federal Realty’s portfolio was 91.1% occupied, denoting a sequential expansion of 90 basis points (bps). The company reported a 250-bps spread between leased and occupied.
The small shop leased rate was 87.4% as of the quarter end, reflecting an increase of 130 bps sequentially. Federal Realty also signed leases for 276,586 square feet of office space during the quarter.
During the fourth quarter, FRT sold two shopping centers and a portion of two properties for a total of $121.4 million, leading the 2021 total disposition proceeds tally to $141.6 million.
Federal Realty exited 2021 with cash and cash equivalents of $162.1 million, down from $798.3 million recorded at the end of 2020.
Guidance
For 2022, Federal Realty raised its guidance and now estimates FFO per share of $5.75 at $5.95 compared with the $5.65-$5.85 range projected earlier. The Zacks Consensus Estimate for the same is currently pinned at $5.85.
Dividend Update
Concurrent with the fourth-quarter earnings release, Federal Realty announced regular quarterly cash dividend of $1.07 per share, which indicates an annual rate of $4.28 per share. The dividend will be paid out on Apr 15 to shareholders of record as of Mar 16, 2022.
Federal Realty currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Realty Investment Trust Price, Consensus and EPS Surprise
Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote
Performance of Other Retail REITs
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2021 FFO per share of $3.09 exceeded the Zacks Consensus Estimate of $2.88. Simon Property’s performance was backed by occupancy and NOI growth. However, SPG generated revenues of $1.33 billion during the quarter, lagging the Zacks Consensus Estimate of $1.35 billion.
Kimco Realty Corp.’s (KIM - Free Report) fourth-quarter 2021 NAREIT FFO came in at 39 cents per share, topping the Zacks Consensus Estimate of 37 cents. This figure also compared favorably with the year-ago quarter’s tally of 31 cents. Kimco’s results reflected better-than-anticipated revenues. KIM also issued its 2022 outlook.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.