Federal Realty Investment Trust Reports Record Operating Results for 2024

On February 13, 2025, Federal Realty Investment Trust (NYSE: FRT) announced its operating results for both the fourth quarter and the full year ending December 31, 2024. The company has achieved impressive financial results, demonstrating resilience and growth within a competitive retail real estate market.

Financial Highlights
For 2024, Federal Realty reported a net income available for common shareholders of $287.2 million, translating to earnings of $3.42 per diluted share—an increase from $229.0 million or $2.80 per share in 2023. In the fourth quarter alone, net income rose to $63.5 million, representing earnings of $0.75 per diluted share, slightly down from $0.76 in 2023, but maintaining overall stability in fourth-quarter earnings.

The funds from operations (FFO), a key performance indicator for real estate investment trusts, also showed favorable growth. Federal Realty's FFO for 2024 hit $570.2 million, or $6.77 per diluted share, a solid improvement from the previous year's $537.3 million, or $6.55 per diluted share. For Q4 2024, FFO reached $147.6 million ($1.73 per diluted share), compared to $134.9 million ($1.64 per diluted share) for the same period the previous year.

Leasing Achievements
2024 was celebrated as a record year for leasing activity. The company signed 452 new comparable leases totaling 2.4 million square feet, a notable rise reflecting an 11% cash basis rollover. The fourth-quarter results were equally impressive, with 100 signed retail leases covering 649,372 square feet at a cash basis rollover of 10%.

As of December 31, 2024, Federal Realty’s commercial portfolio was 94.1% occupied, marking a 190 basis point increase from the prior year. In terms of leasing metrics, the company also reported a record high small shop leasing rate of 93.6%.

Strategic Developments
Looking ahead, Federal Realty has announced plans for two major redevelopment projects that are set to enhance its portfolio significantly. The first project involves a residential redevelopment in Hoboken, NJ, costing an estimated $45 to $48 million, with a projected return on investment (ROI) of 6% to 7%. The second project, at the Andorra Shopping Center in Philadelphia, PA, carries a projected cost of $32 million, eyeing an incremental ROI of 7% to 8%.

Additionally, the company is under contract to acquire a 673,000 square-foot shopping center in Northern California for $124 million, with plans for closure expected in late February 2025. The company has also set an initial guidance for 2025 earnings per diluted share ranging from $3.00 to $3.12, alongside FFO per diluted share guidance of $7.10 to $7.22, reflecting confidence in ongoing growth.

Conclusion
Donald C. Wood, CEO of Federal Realty, emphasized the company's strong performance in 2024, characterizing it as a record-shattering year with unprecedented leasing momentum. He noted that the company's operational success was supported by favorable demographic trends and supply-demand dynamics in major coastal markets, positioning Federal Realty for a robust 2025 and beyond.

The full earnings release can be traced back to their ongoing commitment to sustainable growth in vibrant community settings. With a deep portfolio and strategic initiatives underway, Federal Realty Investment Trust remains a formidable player in the retail real estate landscape.

For additional information about Federal Realty and its operations, visit www.federalrealty.com.