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Federal Realty Investment Trust Reports Impressive Q4 and Full Year 2025 Results

On February 12, 2026, Federal Realty Investment Trust (NYSE:FRT) disclosed its robust performance during the fourth quarter and full year ending December 31, 2025. The Trust marked a significant increase in net income attributable to common shareholders, reporting $4.68 per diluted share for the entire year, compared to $3.42 the previous year. Additionally, the fourth quarter saw net income hit $1.48 per diluted share, up from $0.75 in Q4 of 2024.

Operating income for the full year reached $602.2 million, a notable increase from $472.4 million in 2024. This positive trend was bolstered by improved metrics in leasing and occupancy rates across its properties.

Key Highlights from 2025 Performance

• - Funds from Operations (FFO): The Nareit defined FFO available to common shareholders per diluted share increased by 6.6% to $7.22 in 2025 from $6.77 in the prior year. The fourth quarter also reflected growth in FFO, with $1.84 per diluted share, compared to $1.73 in Q4 of 2024.
• - Core FFO: In the new measure introduced, Core FFO was $7.06 per diluted share, growing 4.3% from the previous year. This helps provide better comparability for analyzing operational results.
• - Leasing Achievements: The company achieved a record total leasing volume of 2.5 million square feet of retail space, with comparable rent spreads demonstrating the strength of their leases. Comparable portfolio occupancy rose to 94.5%, while the leased rate reached 96.6% by the end of the quarter.
• - Strategic Acquisitions: The company acquired two new properties during Q4, expanding its footprint with the addition of a shopping center in Omaha, NE, and enhancing its presence with the Annapolis Town Center in Maryland.
• - Redevelopment Projects: Federal Realty announced a significant redevelopment initiative in Willow Grove, PA, with planned investment projected at $110 million to $120 million, aiming for a return of approximately 7%.
• - Dividends: The Board declared a quarterly cash dividend of $1.13 per share, translating to an annual payment rate of $4.52, marking a continuation of Federal Realty's long-standing commitment to returning value to shareholders.

Donald C. Wood, CEO, expressed confidence in the results, stating that they are indicative of the company’s momentum heading into 2026, with anticipated growth for Core FFO ranging between 5.1% and 6.5%.

The operational metrics support the success achieved, as the small shop leased rate improved to 93.8%, confirming the company's strength in attracting tenants to its mixed-use and retail properties. Additionally, the investments in real estate will continue to support long-term sustainable growth.

Looking Ahead

For 2026, Federal Realty has set a new earnings forecast, indicating an expected diluted share net income of $3.90 to $4.00, along with guidance on FFO growth reflecting the positive trends from 2025. The company remains focused on creating distinctive environments that cater to both retail demands and community needs.

In summary, Federal Realty's impressive Q4 and full year results depict a trust that is not only recovering but thriving in the retail real estate market. This path of growth alongside strategic planning sets a robust foundation for forthcoming opportunities and developments.