NYSE$FRT

Federal Realty Investment Trust · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Federal Realty Investment Trust reported a significant increase in net income and operating income for Q3 2024, driven by higher rental rates and acquisitions, despite rising interest and operating costs.

Federal Realty Investment Trust reported a net income of $63,461,000 for the three months ended September 30, 2024, a 6.9% increase from the previous year. Operating income also saw a notable rise of 5.7% to $105,832,000. The company's revenue increased by 5.9% to $303,633,000, primarily due to higher rental rates and recent acquisitions. Despite increased expenses, the company maintained strong occupancy and leasing rates.

  • Net income increased by 6.9% to $63,461,000 for the three months ended September 30, 2024, compared to $59,392,000 in the same period last year.
  • Operating income grew by 5.7% to $105,832,000, up from $100,084,000 in Q3 2023.
  • Total property revenue increased by 5.9% to $303,633,000, driven by higher rental income and acquisitions.
  • Cash and cash equivalents decreased significantly to $97,023,000 as of September 30, 2024, from $250,825,000 at December 31, 2023.

Headline financials

Total Revenue

$304M

Previous: $287M+5.9%
EPS (adj)

$0.70

Previous: $0.67+4.5%
Capital Expenditures

-$274M

Previous: -$59.6M-359.9%
Free Cash Flow

-$213M

Previous: -$2.52M-8351.3%
Net Income

$61M

Previous: $57M+6.8%
Operating Income

$106M

Previous: $100M+5.7%
Gross Profit

$304M

Previous: $287M+5.9%

Revenue & EPS history

Federal Realty · Revenue · Quarterly

$304M

Q3 2024+5.9%vs Q3 2023
Beat estimate in 3 of 3 quarters(100%)
ActualEstimate

Forward guidance

The company's long-term growth strategy remains focused on increasing earnings, funds from operations, and cash flows through comparable property portfolio growth, redevelopments, and acquisitions. While current economic conditions pose short-term challenges, the company expects to mitigate these impacts through strategic actions and access to capital markets.

Tailwinds

  • Continued strong demand for commercial space, evidenced by 2.1 million square feet of comparable retail space leased in the last twelve months.
  • Strategic advantage from infill locations and strong demographics, supporting high occupancy and increasing rental rates.
  • Ability to access public and private debt and equity markets, joint venture relationships, and property dispositions to fund capital expenditures.
  • Flexibility to delay development projects, limit acquisitions, reduce operating expenditures, or re-evaluate dividend policy to manage financial obligations.
  • Commitment to maintaining a conservative capital structure and investment-grade debt ratings.

Headwinds

  • Heightened levels of inflation and higher interest rates continue to negatively impact the business.
  • Increased material and operating costs impacting development and redevelopment activities.
  • Potential for extended timeframes and increased costs due to worsening supply chain disruptions.
  • Risk that tenants may not pay rent, vacate early, or file for bankruptcy, adversely affecting financial condition.
  • Uncertainty regarding the ability to obtain necessary approvals for development projects and the risk of projects failing to perform as expected.

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 Q3 2024

Historical avgQ3 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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