Federal Realty Investment Trust Announces Record-Breaking Dividend Increase and Strong Q2 Performance

Federal Realty Investment Trust Achieves Record Dividend Increase and Strong Q2 Performance - A REIT Industry Leader


Federal Realty Investment Trust (FRT), a leading real estate investment trust (REIT), has recently reported its operating results for the second quarter of 2023. The company's remarkable performance includes a record-breaking dividend increase and significant growth in key financial metrics.

Record Funds from Operations (FFO) and Leasing Activity

In the second quarter of 2023, Federal Realty achieved a company record of $1.67 per diluted share in FFO, highlighting the robust financial health of the company. Moreover, the company signed 107 leases, covering 576,345 square feet of comparable retail space, demonstrating a 7% growth in cash basis rollover, the highest volume of comparable leasing in any second quarter on record.

Occupancy and Leasing Success

Federal Realty's portfolio was 92.8% occupied and 94.3% leased as of June 30, 2023, reflecting year-over-year increases of 80 basis points and 20 basis points, respectively. This reflects the trust's strong ability to maintain high occupancy rates and secure long-term leases, positioning them as a top performer in the REIT sector.

Green Bond Offering

Federal Realty issued $350.0 million of fixed-rate senior unsecured notes as a green bond, demonstrating the company's commitment to sustainable financing and environmental initiatives. The notes, which mature on May 1, 2028, bear interest at 5.375%, reinforcing Federal Realty's dedication to environmentally responsible investments.

56th Consecutive Dividend Increase

One of the most significant announcements from Federal Realty is the increase in their regular quarterly cash dividend to $1.09 per common share, equating to an annual rate of $4.36 per share. This dividend increase marks the 56th consecutive year that Federal Realty has raised its common dividend, securing the company's position with the longest record of consecutive annual dividend increases in the REIT sector. This increase reinforces Federal Realty's commitment to rewarding its shareholders and its strong financial performance.

Positive Earnings Guidance

The company also increased its 2023 earnings per diluted share guidance to a range of $2.64 to $2.76, and its 2023 FFO per diluted share guidance to a range of $6.46 to $6.58. These upward revisions in earnings guidance demonstrate Federal Realty's confidence in its ability to sustain and grow its financial performance in the coming quarters.

Federal Realty Investment Trust has delivered an outstanding second quarter performance, achieving record FFO, high leasing volumes, and increased occupancy rates. The company's commitment to sustainability through the issuance of green bonds further reinforces its dedication to responsible investing. Most notably, Federal Realty's 56th consecutive dividend increase highlights its commitment to rewarding shareholders and solidifies its position as a leading player in the REIT sector. With positive earnings guidance for the future, Federal Realty is poised for continued success and growth in the real estate market.

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