Companies /Real Estate

Federal Realty Investment Trust.

NYSE: FRT Reit - Retail
$116.92
▼ $0.66 (−0.56%) today
Markets closed · 8:35am ET

Q2 2026 Earnings

Reported Jul 31, 2026, 7:33am ET · SEC source
$0.97
Beat +0.00%
EPS · est. $0.72
$335.7M
Beat +1.46%
Revenue · est. $330.9M
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%Jul 30Aug 7report 7:33am ETearnings+4.2%−4.9%
−3%0+3%Jul 30Aug 7earnings+4.2%−4.9%
FRT −4.9%S&P 500 +4.2%
−4%0+4%Jul 30Aug 7report 7:33am ETearnings+5.4%−4.9%
−4%0+4%Jul 30Aug 7earnings+5.4%−4.9%
FRT −4.9%NASDAQ +5.4%
+0.00%
Day of report
−0.35%
Next session
−4.35%
One week

Did FRT Beat Earnings? Q2 2026 Results

Federal Realty Investment Trust delivered a strong second quarter for fiscal 2026, with revenue climbing to $335.71 million from $311.52 million a year ago and Core FFO per share growing 6.8% to $1.88, even as reported EPS of $0.97 reflected a sharp year-over-year decline in GAAP net income driven largely by lower real estate sale gains and the absence of a $13 million new market tax credit recognized in Q2 2025. The operational story was arguably more compelling than the headline numbers suggested, with the company signing 124 comparable retail leases covering 819,273 square feet at 15% cash rent spreads, while the portfolio's leased rate reached 96.1%, up 70 basis points year-over-year. Investors had been watching closely for signs that leasing momentum could hold in a still-uncertain retail environment, and the results appeared to answer that question convincingly. Management responded by raising its full-year Core FFO guidance to $7.48 to $7.56 per diluted share and lifting the quarterly dividend 3% to $1.16 per share, extending the company's consecutive annual dividend increase streak to 59 years.

Key Takeaways
  • Record leasing volume of 819,273 comparable square feet in Q2 2026
  • 15% cash rent spreads and 28% straight-line rent spreads on comparable leases
  • Adjusted Comparable Property POI growth of 4.2%
  • Small shop leased rate at 93.9%, up 50 bps year-over-year
  • Lease termination fees of $4.6 million in Q2 2026 vs $1.1 million in Q2 2025
  • Core FFO per share growth of 6.8% year-over-year

“This was another quarter of record leasing activity and outsized FFO growth, extending a trend we've sustained for several quarters now, and it's exactly why we're confident executing against the long-term plan we shared with investors at Santana Row.”

Federal Realty CEO, on the earnings call

Forward Guidance & Outlook

Federal Realty raised and tightened its full-year 2026 guidance. Net income available for common shareholders per diluted share is now expected at $4.22 to $4.30 (up from $3.94 to $4.03). Nareit FFO and Core FFO per diluted share guidance was raised to $7.48 to $7.56 (from $7.46 to $7.55), representing 5.9% to 7.1% Core FFO growth year-over-year (previously 5.7% to 6.9%). Comparable Property POI growth guidance was raised to 3.25% to 3.75% (from 3.125% to 3.625%). Lease termination fees are expected at $10 to $11 million (up from $8 to $9 million). Development/redevelopment capital remains at $175 to $225 million. G&A expenses are expected at $49 to $51 million (up from $47 to $49 million). Management also introduced a framework for long-term FFO and AFFO per share growth targets through 2028 at its Investor Day.

FRT YoY Financials

Revenue$335.7M
Operating Income$138.7M
Net Income$83.7M

FRT Revenue by Segment

Commercial Minimum Rents$225.8M+8.3%
Cost Reimbursements$64.4M+8.7%
Residential Minimum Rents$21.9M−16.9%
Percentage Rents$4.1M+23.8%

Figures from SEC filings and company reports. Not investment advice.