Should You Retain Federal Realty Stock in Your Portfolio Now?

Zacks12-25 01:29

Federal Realty’s FRT portfolio of premium retail assets in well-off communities with favorable demographics positions it aptly for growth. A focus on essential retail and efforts to develop mixed-use ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2494053827?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2","is_english":true,"pubTime":"2024-12-25 01:29","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2494053827","market":"us","top_or_hot":-1,"title":"Should You Retain Federal Realty Stock in Your Portfolio Now?","media":"Zacks","content":"<div>\n<p>Federal Realty’s FRT portfolio of premium retail assets in well-off communities with favorable demographics positions it aptly for growth. A focus on essential retail and efforts to develop mixed-use ...</p>\n\n<a href=\"https://finance.yahoo.com/news/retain-federal-realty-stock-portfolio-172900067.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Retain Federal Realty Stock in Your Portfolio Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Retain Federal Realty Stock in Your Portfolio Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-25 01:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/retain-federal-realty-stock-portfolio-172900067.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Federal Realty’s FRT portfolio of premium retail assets in well-off communities with favorable demographics positions it aptly for growth. A focus on essential retail and efforts to develop mixed-use ...</p>\n\n<a href=\"https://finance.yahoo.com/news/retain-federal-realty-stock-portfolio-172900067.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0070302665.USD","symbol_name":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/retain-federal-realty-stock-portfolio-172900067.html","article_id":"2494053827","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2494053827","pubTimestamp":1735061340,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Federal Realty’sFRT portfolio of premium retail assets in well-off communities with favorable demographics positions it aptly for growth. A focus on essential retail and efforts to develop mixed-use assets aimed at diversification are likely to benefit the retail REIT over the long term. A strong balance sheet provides it with ample liquidity. A healthy dividend distribution policy aids shareholder wealth. However, higher e-commerce adoption and elevated interest expenses are its concerns.Solid dividend payouts are arguably the biggest enticement for REIT shareholders and Federal Realty remains committed to that. The company has paid out uninterrupted dividends since its inception in 1962, and the latest hike in August marked the 57th consecutive year of common dividend increases by the company. Given the company’s solid operating platform, our FFO growth projections and balance sheet strength compared with industry counterparts, this dividend rate is expected to be sustainable in the ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU1059921491.USD":"NORDEA 1 GLOBAL STABLE EQUITY \"HB\" (USDHDG) ACC","BK4094":"服装零售","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","TJX":"The TJX Companies Inc.","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","BK4504":"桥水持仓","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU2092937221.SGD":"Blackrock Circular Economy A2 SGD-H","LU0094547139.USD":"abrdn SICAV I - GLOBAL SUSTAINABLE EQUITY FUND \"A\" (USD) ACC","BK4592":"伊斯兰概念","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","REG":"Regency Centers Corp","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","BRX":"Brixmor Property Group Inc.","ADRNY":"Koninklijke Ahold Delhaize N.V.","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","BK4080":"零售业房地产投资信托","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","BK4196":"保健护理服务","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","CVS":"西维斯健康","FRT":"FRT信托","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4113":"食品零售","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","BK4588":"碎股"},"translate_title":"您现在应该在投资组合中保留联邦房地产股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US7Y.BOND":1,"ADRNY":1,"REG":1,"TJX":1,"US10Y.BOND":1,"CVS":1,"BRX":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"US12M.BOND":1,"FRT":0.9},"content_text":"Federal Realty’s FRT portfolio of premium retail assets in well-off communities with favorable demographics positions it aptly for growth. A focus on essential retail and efforts to develop mixed-use assets aimed at diversification are likely to benefit the retail REIT over the long term. A strong balance sheet provides it with ample liquidity. A healthy dividend distribution policy aids shareholder wealth. However, higher e-commerce adoption and elevated interest expenses are its concerns.\nWhat’s Aiding FRT Stock?\nFederal Realty’s portfolio of premium retail assets — mainly situated in the major coastal markets from Washington, D.C. to Boston, San Francisco and Los Angeles — along with a diverse tenant base, both national and local, positions it well for decent growth. The company has strategically selected the first-ring suburbs of nine major high-barrier markets. The sites enjoy 173,000 of the average population, with a $161,000 average household income and $10-plus billion of average spending power (calculated on a weighted-average basis in a three-mile radius), ensuring resilience and growth.\nFRT enjoys a well-diversified tenant base of retailers, including industry giants like TJX Companies TJX, Ahold Delhaize ADRNY and CVS Corporation CVS. This limits the company’s risk to any particular retail industry and positions it well for experiencing a stable source of rental revenues. With a well-located portfolio and 80% of its centers having a grocery component offering essential goods and services, FRT is poised to experience an improving leasing environment.\nFederal Realty’s efforts to diversify its portfolio with residential and office properties are likely to pay off. Exploring the mixed-use development option, which has gained immense popularity in recent years, will enable the company to tap into growth opportunities in areas where people prefer to live, work and play. As of Sept. 30, 2024, the company had $850 million of mixed-use expansion projects in process. As of the same date, 12% of ABR came from residential properties, while 11% came from mixed-use office assets.\nFederal Realty focuses on maintaining a decent balance sheet position with ample liquidity. The company exited the third quarter of 2024 with $1.35 billion of total liquidity in cash and credit facility. The annualized net debt-to-EBITDA ratio was 5.5 as of Sept. 30. The company has no debt maturities remaining in 2024 and no material maturities until 2026.\nSolid dividend payouts are arguably the biggest enticement for REIT shareholders and Federal Realty remains committed to that. The company has paid out uninterrupted dividends since its inception in 1962, and the latest hike in August marked the 57th consecutive year of common dividend increases by the company. Given the company’s solid operating platform, our FFO growth projections and balance sheet strength compared with industry counterparts, this dividend rate is expected to be sustainable in the upcoming period.\nWhat’s Hurting FRT Stock?\nThe market is witnessing a shift in retail shopping from brick-and-mortar stores to Internet sales. Moreover, given the convenience of online shopping, it is likely to remain a popular choice among customers. This is expected to adversely impact the market share for brick-and-mortar stores.\nDespite the Federal Reserve announcing rate cuts in recent times, the interest rate is still high and is a concern for Federal Realty. The company has a substantial debt burden, and its total debt as of Sept. 30, 2024, was approximately $4.47 billion. Our estimate indicates a year-over-year increase of 6.2% in the company's 2024 interest expenses.\nShares of this retail REIT carrying Zacks Rank #3 (Hold) have risen 12.9% over the past six months, underperforming the industry’s upside of 14%. Analysts seem bearish on the same, with the Zacks Consensus Estimate for its 2024 funds from operations (FFO) per share being lowered marginally to $6.79 over the past two months.\nImage Source: Zacks Investment Research\nStocks to Consider\nSome better-ranked stocks from the retail REIT sector are Regency Centers REG and Brixmor Property Group BRX, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nThe Zacks Consensus Estimate for Regency Centers’ current-year FFO per share has been revised marginally upward over the past month to $4.27.\nThe Zacks Consensus Estimate for Brixmor’s 2024 FFO per share has been revised marginally northward over the past two months to $2.14.\nNote: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe TJX Companies, Inc. (TJX) : Free Stock Analysis Report\nCVS Health Corporation (CVS) : Free Stock Analysis Report\nFederal Realty Investment Trust (FRT) : Free Stock Analysis Report\nRegency Centers Corporation (REG) : Free Stock Analysis Report\nBrixmor Property Group Inc. (BRX) : Free Stock Analysis Report\nAhold NV (ADRNY) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2494053827"}