FRT

All five Dividend Aristocrats posted better-than-expected Q2 earnings, raised full-year guidance, and carry Buy ratings from top Wall Street firms. American States Water (AWR) crushed Q2 estimates and rewarded shareholders with an 8% dividend hike, extending its 70-year streak of consecutive increases. Stanley Black & Decker (SWK) delivered a massive earnings beat, reporting $1.57 adjusted EPS versus the $1.21 consensus, while yielding 3.24%. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market's ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions. Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the Aristocrats list: SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Companies must be worth at least $3 billion for each quarterly rebalancing. Their average daily volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date. They must be S&P 500 members. With earnings for the second quarter all but over, we decided to screen the Dividend Aristocrats for the companies that posted better-than-expected results and also offered solid forward guidance for the rest of the year. Five top companies hit our screens and look like outstanding ideas for growth and income investors looking to shift their portfolios away from high-beta stocks to more conservative ideas that pay reliable dividends. All five are rated Buy by the top Wall Street firms we cover, and all offer solid entry points. S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely keep their ground much better than volatile technology names. When you have products that everyone depends on and pay a very reliable 2.30% dividend that you have raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company crushed Q2 expectations, reporting earnings of $1.09 per share. The solid print allowed the company to increase the quarterly dividend by 8%. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility engaged in the purchase, production, distribution, and sale of water in 11 counties in the state of California, and provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. Weiss Ratings has a Buy rating but no target price. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a top long-time holding of Warren Buffett, whose 400 million shares are 9.3% of the float and 9.9% of the portfolio. The stock pays a dependable 2.41% dividend. The company posted strong results, reporting $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus estimates and raising its full-year earnings growth forecast to 8% to 9%. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. And remember that the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. UBS has a Buy rating with a $104 target price. While somewhat off the radar, this company has increased the 1% dividend for an incredible 70 consecutive years. Dover (NYSE: DOV) is a diversified global manufacturer and solutions provider operating in five primary segments. The company posted strong quarterly results, with adjusted EPS climbing 12% to $2.74. This growth was fueled by a 7% rise in total revenue, including 5% from organic operations. Year over year, bookings surged 16%, pushing the book-to-bill ratio to a solid 1.06, largely thanks to robust demand across the data center, biopharma, and aerospace sectors. On the strength of this performance, Dover raised its full-year guidance for both organic revenue and adjusted earnings. Its five operating segments are: The Engineered Products segment provides a range of equipment, components, software, solutions, and services to the vehicle aftermarket, aerospace, defense, and other industries. Its Clean Energy & Fueling segment provides components, equipment, and software solutions and services. It also designs, manufactures, and supplies vacuum-insulated piping systems for various liquefied gases, including nitrogen, oxygen, carbon dioxide, and other industrial gases. The company's Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection, and digital textile printing equipment. The Pumps & Process Solutions segment manufactures specialty pumps and flow meters, fluid transfer connectors, engineered precision components, instruments, and digital controls. Dover's Climate & Sustainability Technologies segment is a provider of energy-efficient equipment, components, and parts. Baird has an Outperform rating with a $270 target price. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) has a mission to deliver long-term, sustainable growth through investing in densely populated, affluent communities. While real estate has slowly recovered, demand is still growing, and hard assets are generally considered a prudent investment in times of inflation; this company pays a hefty 3.81% dividend. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company outperformed expectations, posting a strong 96% occupancy rate across its retail portfolio in the second quarter. Consistent growth in rental income underpinned its 59th consecutive annual dividend increase, a milestone that underscores the stability of its business. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend to its shareholders for 59 consecutive years, the longest record in the REIT industry. Piper Sandler has an Overweight rating with a $149 target price. Stanley Black & Decker (NYSE: SWK) is the world's largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide, and its shares trade at 17.7 times forward earnings. With the potential for the economy to slow down somewhat, consumers are likely to repair rather than buy new, and this legendary stock is a solid idea now, while yielding a dependable 3.19% dividend. The company provides hand tools, power tools, outdoor products, and related accessories in North and South America, Europe, and Asia. The company reported solid Q2 2026 financial results, delivering a big earnings beat as adjusted EPS climbed to $1.57, significantly beating Wall Street consensus expectations of $1.21. Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including: Drills Impact wrenches and drivers Grinders, saws, routers, and sanders Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools Hand-held vacuums, paint tools, and cleaning appliances Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools Drill, screwdriver, router bits, abrasives, saw blades, and threading products Toolboxes, sawhorses, medical cabinets, and engineered storage solutions Electric and gas-powered lawn and garden products This segment sells its products under such brand names as: DeWalt Craftsman Black+Decker Stanley Flex Volt Irwin Lenox The Industrial segment provides: Threaded fasteners, blind rivets and tools, blind inserts and tools Drawn arc weld studs and systems Engineered plastic and mechanical fasteners Self-piercing riveting systems Precision nut running systems Micro fasteners High-strength structural fasteners Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products Attachments used on excavators and handheld tools The Industrial segment sells its products through a direct sales force and third-party distributors to various industries, including automotive, manufacturing, electronics, construction, aerospace, and others. Citigroup has a Buy rating on the shares and a $107 target price. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Five Dividend Kings with 50+ consecutive years of dividend increases beat Q2 earnings, making them defensive picks in a frothy, overbought market. Warren Buffett's KO beat Q2 EPS and upgraded full-year guidance, while FRT posted 96% occupancy and its 59th straight annual dividend increase. AWR raised its quarterly dividend 8% after Q2 EPS jumped to $1.09, extending its remarkable 70-year streak of consecutive dividend increases. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Kings, and for good reason. The 58 companies that made the cut for the 2026 Dividend Kings list have increased their dividends (not just maintained them) for 50 consecutive years. Companies that have raised dividends for 50 or more consecutive years are exactly the kinds of investments passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. With the second-quarter earnings season winding down, we wanted to see which companies in the legendary group posted the best results, and we were not disappointed. Some of the top companies, including a Warren Buffett favorite, posted stellar results and some outstanding forward-looking guidance. These are companies that make sense for growth and income investors seeking timely ideas in an overbought, frothy stock market. Companies that have paid and raised dividends for 50 years or more are the kinds of stocks growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) When you have products that everyone depends on and pays a very reliable 2.35% dividend that has been raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company reported strong Q2 EPS of $1.09 (up from $0.87 year over year) and raised its quarterly dividend by 8.2% following strong execution in utility and contracted services. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility that purchases, produces, distributes, and sells water in 11 counties in the state of California. It provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. This company has raised its dividend for an impressive 77 years, yielding 2.57%. California Water Service (NYSE: CWT) is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company reported that net income rose to $56.5 million ($0.93 per share), up from $42 million in the prior year, backed by new rate case recognitions and infrastructure investments. Its business is conducted through its operating subsidiaries and provides utility services. The business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as domestic and municipal fire protection services. The company provides wastewater collection and treatment services, including treatment that allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services, and promotion of other non-regulated services. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a long-time top holding of Warren Buffett, who owns a massive 400 million shares, or 9.3% of the float and 9.3% of the portfolio. The stock comes with a dependable 2.39% dividend, which was raised to $0.53 per share in May 2026, marking the 64th straight year of dividend increases. The company reported second-quarter revenue of $13.37 billion and comparable EPS of $0.97, beating expectations, and raised its full-year earnings growth forecast. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. Plus, the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) continues to deliver long-term, sustainable growth by investing in densely populated, affluent communities and pays a strong 3.83% dividend. Real estate demand is still growing, and hard assets are generally considered prudent investments during periods of inflation. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company posted Q2 funds from operations of $1.88 per share (beating mid-guidance expectations), alongside strong 96% occupancy and its 59th consecutive annual dividend increase. Federal Realty's mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend for 57 consecutive years, the longest streak in the REIT industry. Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and it currently pays a 2.92% dividend. The company is focused on providing branded consumer packaged goods to consumers worldwide. The consumer staples giant posted earnings per share of $1.43, beating estimates of $1.41, on steady revenue, and it continued its 70-year streak of dividend increases, raising it 3% in April. The company’s segments include: Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries. Procter & Gamble offers products under such brands as: Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Simon Property Group SPG is slated to report second-quarter 2026 results on Aug. 10, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues as well as funds from operations (FFO) per share. In the last reported quarter, this Indianapolis, IN-based retail real estate investment trust (REIT) delivered an FFO per share surprise of 6.38%. Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot. Simon Property’s FFO per share surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 2.88%. This is depicted in the graph below: Simon Property Group, Inc. price-eps-surprise | Simon Property Group, Inc. Quote In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance. The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed. Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory. Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Rents in the South advanced 3.3% year over year, marking the strongest growth among all regions. Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4% excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to have favored grocery, discount, value and health-and-wellness retailers over discretionary categories. Simon Property Group’s second-quarter 2026 results are expected to reflect steady operating momentum, backed by healthy demand for space across its high-quality retail portfolio. The company is likely to have benefited from strong leasing activity, supporting top-line growth. Occupancy is also expected to have remained firm, aided by demand from new tenants and ongoing efforts to improve acquired assets. The to-be-reported quarter is also likely to have reflected contributions from Simon’s acquisitions and redevelopment projects. Still, Simon’s second-quarter performance may have faced some pressure from higher interest expenses and tariff-related stress on tenants. Even so, strong leasing, resilient occupancy and continued portfolio upgrades are expected to have helped the company deliver a steady second-quarter 2026 performance. The Zacks Consensus Estimate for second-quarter lease income is pegged at $1.60 billion, up from $1.38 billion reported in the year-ago quarter. The consensus mark for management fees and other revenues is pinned at $39.6 million, up from the prior-year quarter’s reported figure of $37.9 million. However, the consensus mark for other income totaled $74.2 million, down from $81.1 million reported in the prior-year quarter. The consensus estimate for quarterly revenues is presently pegged at $1.71 billion, which indicates an increase of 14.37% year over year. Simon Property’s activities during the soon-to-be-reported quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has been revised a cent upward to $3.18 over the past month. It suggests a 4.26% increase year over year. Our proven model predicts a likely surprise in terms of FFO per share for Simon Property this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. Simon Property currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Federal Realty Investment Trust FRT reported second-quarter 2026 core FFO per share of $1.88, up 6.8% year over year and above the Zacks Consensus Estimate of $1.85. Total revenues increased 7.8% year over year to $335.7 million and surpassed the consensus mark of $333.5 million by 0.66%. The company’s results reflected higher rental income, record comparable leasing volume and growth in adjusted comparable property operating income. FRT carries a Zacks Rank #3. Regency Centers Corporation REG reported second-quarter 2026 NAREIT FFO per share of $1.21, beating the Zacks Consensus Estimate of $1.20 by 0.8%. The metric increased 4.3% from the year-ago quarter. Total revenues of $413.5 million rose 8.6% year over year and topped the consensus mark of $405 million by 2.1%. Regency Centers’ results reflected solid leasing demand, with same-property NOI advancing 3.8%. REG carries a Zacks Rank #3. Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs. Want 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 Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Federal Realty Investment Trust (FRT) : Free Stock Analysis Report Regency Centers Corporation (REG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Federal Realty Investment Trust (FRT) reported second quarter 2026 results on July 31, combining higher revenue with a lower quarterly net income figure compared with a year earlier. The company posted second quarter sales of US$325.9 million and revenue of US$335.71 million, both above the prior year period. Net income was US$85.7 million, with basic and diluted earnings per share from continuing operations of US$0.97. For the first half of 2026, Federal Realty Investment Trust reported sales of US$658.55 million and revenue of US$676.79 million. Net income for the six months was US$244.8 million, with basic earnings per share from continuing operations of US$2.79 and diluted earnings per share of US$2.78. Alongside the earnings report, the Board approved a higher regular quarterly cash dividend of US$1.16 per common share, implying an annual rate of US$4.64. This represents the 59th consecutive yearly increase in the common dividend within the REIT sector. The company also updated its 2026 outlook. Revised guidance for net income available for common shareholders is now US$4.22 to US$4.30 per diluted share, compared with the previous range of US$3.94 to US$4.03 per share. Federal Realty Investment Trust declared a quarterly cash dividend of US$0.3125 per Class C depositary share, each representing 1/1,000 of a 5.000% Series C cumulative preferred share. Both common and preferred dividends are scheduled to be paid on October 15, 2026 to shareholders of record on October 1, 2026. See our latest analysis for Federal Realty Investment Trust. At a share price of US$124.09, Federal Realty Investment Trust has a year to date share price return of 25.31% and a 1 year total shareholder return of 42.88%. This points to strong recent momentum despite a softer 7 day share price move and a steadier 3 year and 5 year total shareholder return of 36.37% and 26.14% respectively. If this mix of income and price strength has your attention, it can be useful to widen the lens beyond a single REIT and scan for other companies with staying power using the 18 top founder-led companies After Federal Realty Investment Trust's strong run and guidance reset, the share price now sits between discounted intrinsic estimates and a modest gap to analyst targets. So where does fair value really fall in that spread? Federal Realty Investment Trust's most followed narrative points to a fair value of about $131 per share compared with the last close of $124.09. That gap rests on a detailed view of its mixed use retail portfolio and how future cash flows are modeled. Read the complete narrative. Want to see what really sits behind that cash flow story? The narrative focuses on measured revenue growth, slimmer margins, and a higher future earnings multiple than many investors might expect. Result: Fair Value of $131.14 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Federal Realty Investment Trust still faces execution risk in newer markets and the possibility that slower leasing or weaker rent spreads could challenge this fair value story. Find out about the key risks to this Federal Realty Investment Trust narrative. With Federal Realty Investment Trust showing both clear strengths and flagged risks, now is a good time to review the data yourself and decide where you stand using the 4 key rewards and 3 important warning signs. If Federal Realty Investment Trust has sharpened your focus on quality, do not stop here. Use the Simply Wall Street Screener to quickly surface fresh ideas that match your style. Target stronger potential value by scanning companies that combine solid fundamentals with pricing that still looks appealing using the 55 high quality undervalued stocks. Strengthen your income stream by checking companies that have paid higher yields, robust coverage and consistent distributions through the 9 dividend fortresses. Prioritize stability by focusing on companies with healthier balance sheets and resilient fundamentals using the solid balance sheet and fundamentals stocks screener (45 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FRT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Federal Realty Investment Trust? Here are five stocks we like better. Strong leasing momentum drove results: Second-quarter FFO rose 7% year over year to $1.88 per share, supported by record comparable leasing of 819,000 square feet, 96% occupancy and rent spreads 15% above prior leases. Federal Realty raised its outlook: Full-year Core FFO guidance increased to $7.48–$7.56 per share, implying 6.5% growth at the midpoint, while comparable property operating income growth expectations also improved. Redevelopment and capital strength remain key priorities: Major anchor, residential and mixed-use projects are expected to generate additional income, while the company ended the quarter with $1.2 billion in liquidity and raised its dividend for the 59th consecutive year. 5 Dividend Kings Stocks to Load Up on Now Federal Realty Investment Trust (NYSE:FRT) reported second-quarter funds from operations of $1.88 per share, up 7% from a year earlier, as record leasing volume, higher rents and incremental revenue initiatives supported results above the midpoint of its guidance range. Chief Executive Officer Don Wood said the quarter featured 96% occupancy, record leasing activity and the company’s 59th consecutive annual dividend increase. Federal Realty signed 124 comparable leases totaling 819,000 square feet during the quarter, with average first-year cash rent of $33.68 per square foot, 15% above prior rents and 28% higher on a straight-line basis. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now It's a Good Time To Buy High-Yield Dogs of the Dividend Kings Wendy Seher, Eastern Region President and Chief Operating Officer, said the company’s 819,000 square feet of comparable leasing was the highest single-quarter total in its history. Comparable rent spreads were 15% above prior in-place rents, while trailing 12-month comparable rollover reached 17%, the highest level in more than a decade. Small-shop leasing helped Federal Realty maintain overall occupancy from the prior quarter despite expected anchor transitions. The company added more than 100,000 square feet of net small-shop occupancy, increasing its small-shop occupied rate by 100 basis points during the quarter. Small-shop space was 93.9% leased and 92.3% occupied, the highest levels since 2007. The company had more than 1.5 million square feet in lease negotiations. Executed leases are expected to add $31 million of revenue over the next 18 months. → Microsoft Just Flipped the AI Spending Narrative Overnight Dividend Kings With the Highest Yield: 6 High Yields in 5 Minutes Seher said foot traffic increased across the portfolio and collections remained strong. She also said Federal Realty expects parking revenue to rise by nearly $3 million year over year, driven by higher rates, events, activations and partnerships. Wood highlighted anchor leasing and redevelopment progress at Grossmont Shopping Center in suburban San Diego and Barracks Road Shopping Center in Charlottesville, Virginia. → Carrier Earnings Could Send the Stock to a New All-Time High At the 860,000-square-foot Grossmont center, Federal Realty signed Bass Pro Shops to a 20-year lease for 161,000 square feet, replacing an underperforming Macy’s and adjacent small-shop tenants. The company also signed a 53,000-square-foot lease with AMC for a new theater. Wood said the planned comprehensive redevelopment is expected to cost $56 million and generate an incremental 10% cash-on-cash return. At the 500,000-square-foot Barracks Road center, Harris Teeter signed for a 79,000-square-foot expanded flagship grocery store. Wood said further merchandising improvements are expected to be announced. The company also continued work on residential development at existing shopping centers. Blayr at Bala Cynwyd is two-thirds leased and ahead of the company’s timing and rent expectations, according to Wood. Other projects include 301 Washington Street in Hoboken, scheduled for first-quarter 2027 delivery; Lot 12 at Santana Row, expected in late 2027; and a 261-unit project at Willow Grove Shopping Center outside Philadelphia. Together, these projects are expected to add nearly 800 residential units and $27 million of operating income once stabilized over the next several years. Chief Financial Officer Dan Guglielmone said the company targets residential cash-on-cash yields of roughly 6.5% to 7% and would not proceed with projects that fall below its return thresholds. Guglielmone said second-quarter FFO exceeded the midpoint of guidance by $0.03 per share. Higher rental income and recoveries contributed $0.03, while stronger percentage rent, parking revenue and other incremental income added $0.02. Better-than-forecast term fees and capital recycling also contributed to the outperformance, partly offset by a one-time investment write-off, straight-line rent write-offs and higher general and administrative expenses. Cash-basis comparable growth was 4.2% in the quarter and 4.6% year to date. GAAP comparable growth was 2.8% for the quarter and 3.7% year to date. Federal Realty raised its full-year NAREIT and Core FFO guidance to $7.48 to $7.56 per share. At the $7.52 midpoint, the outlook represents 6.5% Core FFO growth from 2025, according to the company. It raised its forecast for GAAP-based comparable property operating income growth to 3.25% to 3.75%, while cash comparable growth is expected to be about 4% to 4.5%. The company expects overall occupancy to reach the mid- to upper-94% range by year-end, driven by leases already signed. Guglielmone said anchor openings are weighted toward the fourth quarter, with the benefits of those openings expected to become more visible in 2027. Federal Realty sold $66 million of retail assets during the second quarter, bringing year-to-date sales to $225 million at a blended 5% capitalization rate. Combined sales for 2025 and the first half of 2026 totaled $540 million at a blended initial cash yield of 5.4%. The company ended the quarter with $1.2 billion of liquidity and had no debt maturities until mid-2027 other than $30 million due in August at a 7.5% interest rate. Annualized net debt-to-EBITDA improved to 5.4 times, while fixed-charge coverage was 3.9 times. Federal Realty also issued $61 million of equity through its at-the-market program during the quarter. Chief Investment Officer Jan Sweetnam said the acquisition pipeline remained robust and had grown beyond the approximately $1.4 billion of potential assets discussed at the company’s investor day. She said competition for top retail properties has increased and cap rates have declined, but Federal Realty continues to seek assets where leasing, redevelopment and rent-growth opportunities can support returns above an 8% 10-year unlevered internal rate of return. The company increased its quarterly dividend to $1.16 per share, or $4.64 annually, marking its 59th consecutive year of dividend increases. Federal Realty Investment Trust (NYSE: FRT) is a real estate investment trust specializing in the ownership, management, and redevelopment of high-quality retail, restaurant, and mixed-use properties. With a strategic focus on open-air shopping centers and lifestyle-oriented urban destinations, the company partners with leading national and regional retailers to curate environments that blend shopping, dining, entertainment, office, and residential uses. Its asset management capabilities extend from initial site selection and development through ongoing property operations and tenant relations. Federal Realty's portfolio comprises approximately 100 properties totaling more than 25 million square feet of gross leasable area. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Federal Realty Investment Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record leasing volume with 819,000 square feet of comparable deals signed in Q2 2026, the highest in company history, and a 15% increase in first-year cash rents year-over-year. Strong occupancy growth, with small shop occupancy reaching 92.3%, the highest level since 2007, and overall portfolio occupancy holding steady at 96%. Raised full-year 2026 FFO guidance to $7.48-$7.56 per share, reflecting 6.5% growth at the midpoint, driven by operational outperformance and stronger-than-expected comparable growth. Successful capital recycling program, with $225 million of asset sales year-to-date at a blended 5% cap rate, improving net debt to EBITDA to 5.4x and providing low-cost capital for acquisitions. Robust development pipeline, including residential projects at Blair at Ballyinwood, 301 Washington Street, and Santana Row, expected to add nearly 800 units and $27 million in new operating income once stabilized. Strong incremental income initiatives, including parking revenue, sponsorship, and signage, expected to be up 20% year-over-year, providing a unique and sustainable revenue stream. Increased competition for acquisitions has pushed cap rates down, with some target properties trading at sub-6% cap rates, making it harder to achieve desired leveraged IRRs of 8% or better. Higher general and administrative expenses due to investments in digital innovation and business development teams, which offset some of the gains from operational outperformance. A more conservative interest rate outlook for the remainder of 2026 has negatively impacted guidance, reducing expected FFO by $0.01-$0.02 per share. Occupancy churn in Q2 and Q3 is expected to keep a lid on comparable growth until Q4, with the full benefit of new leases not realized until 2027. One-time investment write-off and straight-line rent write-offs negatively impacted Q2 results, partially offsetting the strong operational performance. The company faces a $30 million debt maturity in August at a high 7.5% interest rate, though no other maturities are due until mid-2027. Warning! GuruFocus has detected 11 Warning Signs with FRT. Is FRT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide color on the drivers behind the record leasing volume and rent spreads, and what this signals about the demand for high-quality shopping centers?A: Wendy Seer, President of Eastern Region and COO, highlighted that the company signed 124 comparable deals totaling 819,000 square feet, the most in a single quarter in company history. Rent spreads were 15% over prior in-place rents, with the trailing 12-month rollover at 17%, the highest in over a decade. This demand is driven by the desirability of high-quality shopping centers, and despite anchor transitions, small shop occupancy increased by 100 basis points to 92.3%, levels not seen since 2007. The pipeline remains strong with over 1.5 million square feet in lease negotiation, indicating significant upside remains. Q: How is the company's acquisition strategy evolving given increased competition and cap rate compression in the retail sector?A: Jan Sweetnam, Chief Investment Officer, noted that the acquisition pipeline has grown to over $1.4 billion, but competition has intensified, with some high-quality assets trading at cap rates below 5%. The company remains disciplined, targeting opportunities in the 6% cap rate range, or slightly lower if growth prospects are strong (4-5% CAGR), to achieve better than 8% 10-year unlevered IRRs. The strategy focuses on market-dominant centers with material unmet demand and the ability to push rents, leveraging deep tenant relationships to underwrite growth accurately. Q: What drove the increase in term fees, and how does this impact the company's financial outlook?A: CEO Don Wood explained a specific $3 million term fee where a strong investment-grade tenant exited a market, paying 7 years of rent upfront, allowing the company to backfill with a better tenant at higher rent. CFO Dan Gulliammoni added that over two-thirds of the $8.6 million in year-to-date term fees come from investment-grade tenants. This led to an increase in full-year term fee guidance to $10-11 million, contributing to the overall guidance raise. Q: Can you elaborate on the guidance raise and the expected cadence of FFO for the remainder of the year?A: CFO Dan Gulliammoni raised full-year FFO guidance to $7.48-$7.56 per share, reflecting 6.5% growth at the midpoint. The increase is driven by $0.03 of operational outperformance from parking, percentage rent, and incremental income, plus $0.02 from higher term fees, offset by $0.02 in higher G&A for digital innovation investments and $0.01-$0.02 from a more conservative interest rate outlook. Q3 FFO is expected at $1.82-$1.86 and Q4 at $1.91-$1.95, with occupancy growth accelerating in Q4. Q: What is the status of the residential development pipeline, and what returns are expected?A: CEO Don Wood provided updates on the $400 million residential pipeline, including The Blair at Ballyinwood (2/3 leased), 301 Washington Street in Hoboken (on time for 12/2027 delivery), Lot 12 at Santana Row (late 2027 delivery), and 261 units at Willow Grove. These projects will add nearly 800 units and $27 million in new operating income once stabilized. CFO Dan Gulliammoni noted that over the next 12-24 months, the company could consider $400-$500 million of new projects, targeting cash-on-cash returns in the mid-6% to 7% range. Q: How is the company thinking about partially monetizing assets like Bethesda Row to fund growth?A: CEO Don Wood acknowledged that while wholesale joint ventures are not planned, selectively sharing interests in high-quality, mature assets like Bethesda Row could serve as a low-cost source of capital. This "sharpshooting" approach would be used as an incremental tool to expand the business without losing control of key assets, providing flexibility in funding the overall capital plan. Q: Are tenants leasing space on offense for growth, or are they feeling compelled to secure space due to limited supply?A: CEO Don Wood explained that the leasing strength is a balance of both. Long-term business plans and expansion strategies are the primary drivers (offense), but the lack of new supply over the past 15-20 years means retailers must secure prime locations when available. The key is that demand for great space exceeds supply, which has been consistent and is expected to continue, making the distinction less relevant. Q: How does the strength in underlying trends open up new redevelopment opportunities within the existing portfolio?A: CEO Don Wood noted that controlled inflation and a supply-constrained marketplace have improved the math for redevelopment projects that previously didn't pencil out. The company is now looking at opportunities that were not considered 6-12 months ago, with a bullish outlook on adding more projects to the business plan over the next year. This is supported by the success of recent projects like the Giant grocery store in Philadelphia, where small shop rents came in 60% over underwriting. Q: What is the company's approach to capital recycling, and how does it impact the balance sheet?A: CFO Dan Gulliammoni reported $225 million in asset sales year-to-date at a blended 5% cap rate, with a combined $540 million sold over 2025-2026 at a 5.4% initial cash yield. This disciplined recycling has improved net debt to EBITDA to 5.4x and fixed charge coverage to 3.9x. The company also issued $61 million in equity via its ATM program, maintaining $1.2 billion in liquidity, with no debt maturities until mid-2027 (excluding a $30 million August maturity). Q: What are the key characteristics that make a shopping center meet the company's high acquisition standards?A: CEO Don Wood emphasized that the most critical factor is the potential for growth through remerchandising or redevelopment. Properties that are fully exploited, even in affluent areas, trade at higher cap rates because they lack growth opportunities. The company targets market-dominant assets where in-place rents can be improved, and the local market is creating jobs and demand. Position within the market is also crucial, as the company seeks the best asset in each market, not the third or fourth best, to ensure tenant demand and long-term value creation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record-setting leasing volume with 819,000 square feet signed, driven by 15% cash rent spreads and a trailing 12-month rollover of 17%, the highest in over a decade. Performance beat was driven by $0.05 from capital recycling activity, along with $0.05 from higher rental income, recoveries, and incremental income initiatives such as parking and percentage rent. Strategic remerchandising at Grossmont Shopping Center is underway, replacing an underperforming Macy's with a 161,000 square foot Bass Pro Shops to create a national draw. Small shop occupancy reached 92.3%, a level not seen since 2007, allowing management to drive double-digit rent increases on average. The residential pipeline is focused exclusively on excess land at existing centers to eliminate incremental land costs and leverage existing shopping center amenities for higher rents. Management attributes the robust demand to a total lack of new retail supply over the last 15 to 20 years, making high-quality existing space increasingly valuable. The business development platform is on track for 20% year-over-year growth in incremental income, specifically through parking revenues and site activations. Guidance assumes a spike in overall occupancy to the mid-to-upper 94% range by year-end 2026, powered by already signed leases. Management expects to convert straight-line rent to cash-paying rent over the next few years, forecasting free cash flow to grow from $100 million in 2026 to $150 million by 2028. The residential development pipeline is projected to add $27 million of new operating income once the current 800-unit pipeline is stabilized. Acquisition strategy targets 3 to 5 new markets while continuing to fill in existing markets, focusing on assets where management can drive 8% or better unlevered IRRs. Future growth is expected to be bolstered by a digital innovation program aimed at improving operating margins and accelerating rent commencement timelines. Completed $225 million in asset sales year-to-date at a 5% blended cap rate, utilizing dispositions as an attractively priced source of capital for new acquisitions. Increased G&A guidance by $2 million to reflect strategic investments in digital innovation and business development teams. Adjusted interest rate outlook to reflect more conservative market expectations, which acted as a $0.01 to $0.02 headwind to the updated guidance. Maintained a credit reserve of 60 to 85 basis points of rental income, consistent with year-to-date performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that while Q3 will see some occupancy churn, an acceleration in activity is expected in Q4 as new anchor tenants open, though the full rent-paying benefit is not expected until the following year. Anchor occupancy is projected to reach the 98% plus range following these Q4 openings. Management noted increased competition from institutional capital, pushing some high-quality asset cap rates below 5%. Despite lower entry yields, Federal Realty remains confident in achieving 8% IRRs by targeting undermanaged assets with significant lease-up potential and 4-5% CAGRs. The fee resulted from a strategic 'double dip' where an investment-grade tenant paid 7 years of rent to exit a market, allowing Federal Realty to immediately backfill the space with a better tenant at higher rent. Management emphasized that over two-thirds of year-to-date term fees came from high-credit, investment-grade backed tenants. Management is considering 'sharpshooting' joint ventures on specific high-value assets like Bethesda Row as a tool for low-cost capital, though they ruled out wholesale portfolio JVs. This approach would allow the company to extract capital while maintaining operational control of critical assets.

NORTH BETHESDA, Md., July 31, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today reported its results for the second quarter ended June 30, 2026. For the three months ended June 30, 2026 and 2025, net income available for common shareholders per diluted share was $0.97 and $1.78, respectively, with the year-over-year decline primarily driven by a lower gain on the sale of real estate compared to the prior year period, as well as the absence of a one-time tax credit benefit recognized in the second quarter of 2025. Operating income for the same periods was $138.7 million and $202.7 million, respectively. Highlights for the second quarter include: Generated Core funds from operations available to common shareholders (Core FFO) per diluted share of $1.88 for the quarter, a 6.8% increase year-over-year. Signed 124 leases for 819,273 square feet of comparable retail space — an all-time volume record — with rent growth of 15% on a cash basis and 28% on a straight-line basis. Generated Adjusted Comparable Property Operating Income (POI) growth (excluding straight-line rents and amortization of in-place leases) of 4.2%. Reported overall portfolio occupancy of 93.8% and a leased rate of 96.1% at quarter end, with: Continued strong small shop leased rate, ending the quarter at 93.9% leased — representing an increase of 50 basis points year-over-year and 10 basis points sequentially. Acquired an adjacent retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million on April 17, 2026, completing the retail assemblage at the center. Sold two properties during the second quarter for a combined $66.1 million. Increased the regular quarterly cash dividend by 3% to $1.16 per common share, resulting in an indicated annual rate of $4.64 per common share. This marks the 59th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector. Hosted an Investor Day at Federal Realty's flagship Santana Row property, where management introduced a framework for long-term FFO and AFFO per share growth targets through 2028. Raised and tightened guidance for 2026 earnings per diluted share to $4.22 to $4.30. Raised and tightened guidance for both 2026 Nareit FFO and Core FFO per diluted share to $7.48 to $7.56, representing 6.5% Core FFO growth at the midpoint 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," said Donald C. Wood, President and Chief Executive Officer of Federal Realty. "It all comes back to productivity — getting more out of the exceptional real estate we already own — and that discipline is what's translating into durable growth for our shareholders." Financial Results Net Income For the second quarter of 2026, net income available for common shareholders was $83.7 million and earnings per diluted share was $0.97 versus $153.9 million and $1.78, respectively, for the second quarter of 2025, with the year-over-year decline primarily driven by a lower gain on the sale of real estate this quarter ($20.6 million compared to $76.5 million in the prior year period) and, to a lesser extent, the absence of a one-time tax credit benefit recognized in the second quarter of 2025. FFO Nareit FFO was $162.8 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $165.5 million, or $1.91 per diluted share, in the second quarter of 2025, a 1.6% per share decline. The year-over-year decline is due to a one-time $13.0 million, or $0.15 per share, of new market tax credit transaction income recognized in the second quarter of 2025. Core FFO was $162.8 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $152.5 million, or $1.76 per diluted share, in the second quarter of 2025, a 6.8% per-share increase. Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and a full definition of Core FFO. Operational Update Occupancy The following operational metrics for the commercial portfolio are as of June 30, 2026: Overall portfolio occupancy was 93.8%, flat sequentially and up 20 basis points year-over-year. Overall portfolio leased rate was 96.1%, flat sequentially and up 70 basis points year-over-year. Small shop leased rate was 93.9%, up 10 basis points sequentially and up 50 basis points year-over-year. The residential leased rate for comparable properties was 97.0% as of June 30, 2026, down 20 basis points year-over-year. Leasing Activity During the second quarter of 2026, Federal Realty signed 131 leases totaling 852,051 square feet of retail space. On a comparable space basis, the company signed 124 leases for 819,273 square feet — an all-time volume record — at an average rent of $33.68 per square foot, compared to $29.23 under prior leases, representing a 15% increase on a cash basis and 28% increase on a straight-line basis. On a trailing twelve-month basis, Federal Realty signed 453 comparable leases totaling 2,796,064 square feet — also a volume record for any 12-month period — representing 17% rent spreads on a cash basis and 29% on a straight-line basis. Transaction Activity April 17, 2026 — acquired an adjacent 88,000-square-foot retail parcel at Kingstowne Towne Center in Alexandria, VA for $19.7 million, completing the retail assemblage at the center, which Federal Realty originally acquired in 2022. May 8, 2026 — sold 3131 Commodore Plaza in Coconut Grove, FL for $8.1 million. May 21, 2026 — sold Barcroft Plaza in Falls Church, VA for $58.0 million. Development Activity Fully delivered the residential units at Blayr, a mixed-use development on City Avenue in Bala Cynwyd, PA, featuring 217 residential units, 19,000 square feet of ground-floor retail, and on-site parking. Other Activity* Hosted an Investor Day on May 21, 2026 at the company's flagship Santana Row property, where management provided an update on the company's long-term growth strategy and introduced a framework for long-term FFO and AFFO per share growth targets through 2028. A replay of the webcast, along with the presentation and tour books, is available at: https://www.federalrealty.com/investor-day-2026 Released the company's 2025 Sustainability Report, available at: https://www.federalrealty.com/sustainability-report-2025 * The contents of our website are not included in or incorporated by reference into this press release. Financing Activity On April 14, 2026, the company amended and restated the $1.25 billion revolving credit facility, increasing the borrowing capacity to $1.4 billion, reducing the SOFR spread to 72.5 basis points, and extending the maturity date to April 12, 2030, plus two optional six-month extensions. During the second quarter, the company issued 493,374 common shares under its at-the-market (ATM) equity offering program at a weighted average price of $123.92 per share, generating gross proceeds of $61.1 million. Regular Quarterly Dividends Federal Realty announced today that its Board of Trustees increased the regular quarterly cash dividend to $1.16 per common share, resulting in an indicated annual rate of $4.64 per common share. The regular common dividend will be payable on October 15, 2026 to common shareholders of record as of October 1, 2026. This increase represents the 59th consecutive year that Federal Realty has increased its common dividend, the longest record of consecutive annual dividend increases in the REIT sector. Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on October 15, 2026 to shareholders of record as of October 1, 2026. 2026 Guidance Federal Realty has raised and tightened its 2026 earnings per diluted share, Nareit FFO, and Core FFO guidance, as summarized in the table below: Conference Call Information Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its second quarter 2026 earnings conference call, which is scheduled for Friday, July 31, 2026 at 9:00 AM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through August 14, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10209822. About Federal Realty Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 103 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,500 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 59 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com. Safe Harbor Language Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following: risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy; risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected; risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate; risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels; risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets; risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and risks related to natural disasters, climate change and public health crises (such as worldwide pandemics), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2026 and subsequent quarterly reports on Form 10-Q. Glossary of Terms Nareit-defined Funds From Operations (Nareit FFO): Nareit FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. Nareit developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, Nareit FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider Nareit FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs. Core Funds From Operations (Core FFO): Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs. View original content to download multimedia:https://www.prnewswire.com/news-releases/federal-realty-investment-trust-reports-second-quarter-2026-results-and-guidance-raise-302839726.html

Federal Realty Investment Trust (FRT) reported $335.71 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.8%. EPS of $1.88 for the same period compares to $1.78 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $333.5 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +1.62%, with the consensus EPS estimate being $1.85. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Federal Realty Investment Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Mortgage interest income: $0.01 million versus the four-analyst average estimate of $0.47 million. The reported number represents a year-over-year change of -95.3%. Revenue- Rental income: $325.9 million compared to the $319.95 million average estimate based on three analysts. The reported number represents a change of +7.7% year over year. Revenue- Rental income- Other lease related: $9.33 million versus $7.35 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +85.7% change. Revenue- Rental income- Percentage rents: $4.15 million versus the two-analyst average estimate of $4.31 million. The reported number represents a year-over-year change of +23.8%. Revenue- Rental income- Cost reimbursement: $64.41 million versus the two-analyst average estimate of $62.49 million. The reported number represents a year-over-year change of +8.7%. Net Earnings Per Share (Diluted): $0.97 versus the three-analyst average estimate of $0.71. View all Key Company Metrics for Federal Realty Investment Trust here>>> Shares of Federal Realty Investment Trust have returned +2% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want 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 Federal Realty Investment Trust (FRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research