NYSE$FRT

Federal Realty Investment Trust · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Federal Realty reported strong operating results for the second quarter of 2024, with increased net income, FFO per diluted share, and robust leasing activity.

Federal Realty Investment Trust announced strong operating results for the second quarter ended June 30, 2024. The company reported a significant increase in net income available for common shareholders and a rise in FFO per diluted share compared to the same period last year. Key highlights include record comparable retail square footage signed, strong comparable property operating income growth, and increased portfolio occupancy.

  • Net income available for common shareholders increased to $109,974,000 from $58,491,000 in Q2 2023.
  • Funds from operations (FFO) per diluted share rose to $1.69 from $1.67 in Q2 2023.
  • Signed 122 leases for 594,361 square feet of comparable retail space, achieving a cash basis rollover growth of 10% and straight-line basis growth of 23%.
  • Comparable property operating income (POI) growth was 2.9% for the second quarter, excluding lease termination fees and prior period rents collected.
  • Portfolio occupancy reached 93.1% and a leased rate of 95.3% at quarter end, showing quarter-over-quarter increases.

Headline financials

Total Revenue

$296M

Previous: $281M+5.5%
EPS (adj)

$1.69

Previous: $0.72+134.7%
Capital Expenditures

-$214M

Previous: -$59.6M-259.0%
Free Cash Flow

-$102M

Previous: $931K-11044.5%
Net Income

$112M

Previous: $60.5M+85.1%
Operating Income

$157M

Previous: $102M+54.2%
Gross Profit

$296M

Previous: $281M+5.5%

Revenue & EPS history

Federal Realty · Revenue · Quarterly

$296M

Q2 2024+5.5%vs Q2 2023
Beat estimate in 3 of 3 quarters(100%)
ActualEstimate

Forward guidance

Federal Realty has updated its 2024 guidance, tightening and raising earnings per diluted share and FFO per diluted share guidance, and maintaining comparable properties growth assumptions.

Tailwinds

  • Increased regular quarterly cash dividend to $1.10 per common share, marking the 57th consecutive year of increase.
  • Tightened and raised 2024 earnings per diluted share guidance to $3.33 - $3.51.
  • Tightened and raised 2024 FFO per diluted share guidance to $6.70 - $6.88.
  • Anticipated comparable properties growth excluding lease termination fees and prior period rents collected to be 3% - 4%.
  • Expected incremental redevelopment/expansion POI of $9,000,000 - $12,000,000.

Headwinds

  • Guidance does not assume the impact of potential acquisitions or dispositions that have not closed as of July 31, 2024.
  • Prior period rents are expected to be $2,000,000 - $3,000,000.
  • Lease termination fees are expected to be $4,000,000 - $6,000,000.
  • General and administrative expenses are projected to be $48,000,000 - $51,000,000.
  • Capitalized interest is projected to be $18,000,000 - $21,000,000.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.2%

Avg return

30 days after

34%

11 / 32 earnings

Positive

+1.9%

Q3 2023

Best reaction

-5.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.3%+2.1%
Q4 2024+0.0%+0.7%-0.2%
Q4 2025+0.0%+0.7%-0.2%
Q3 2025+1.4%+1.4%+4.1%
Q1 2025-1.8%-0.0%+1.2%
Q3 2024+0.5%-2.6%-0.1%
Q2 2024+0.0%-0.2%+12.8%
Q1 2024+0.0%-2.4%+2.0%
Q4 2023+0.0%-1.0%+0.5%
Q3 2023+1.9%+1.5%+6.8%
Q3 2022+0.0%-3.1%-3.2%
Q2 2023-0.5%+2.7%-3.1%
Q1 2023+0.3%-3.6%-5.2%
Q2 2022+0.8%+3.1%-3.3%
Q1 2022-3.3%-9.9%-8.0%
Q3 2021-1.4%-0.2%-1.0%
Q2 2021-2.1%+2.1%+5.3%
Q1 2021-2.4%+3.3%+4.5%
Q3 2020+0.3%+30.9%+29.5%
Q2 2020-0.6%+4.7%+7.1%
Q1 2020-5.1%-2.6%+29.4%
Q3 2019+1.6%-3.7%-5.0%
Q2 2019-1.1%-2.5%-2.1%
Q1 2019+0.2%-3.0%-2.3%
Q3 2018-2.3%-1.6%+4.1%
Q2 2018-0.4%+0.6%+4.1%
Q1 2018-1.6%+1.2%+1.0%
Q3 2017+1.0%+5.3%+10.0%
Q2 2017-1.2%-0.7%-4.6%
Q1 2017-1.1%-2.5%-7.8%
Q3 2016-1.0%-0.1%-2.5%
Q2 2016-0.7%-2.3%-4.3%

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