Federal Realty Investment Trust Announces First Quarter 2024 Operating Results

 Federal Realty Investment Trust has reported operating results for its first quarter ended March 31, 2024. For the three months ended March 31, 2024 and 2023, net income available for common shareholders was $0.66 per diluted share and $0.65 per diluted share, respectively. For the three months ended March 31, 2024 and 2023, operating income was $100.2 million and $95.8 million, respectively.

Highlights for the first quarter include:

• Generated funds from operations available to common shareholders (FFO) per diluted share of $1.64 for the quarter, compared to $1.59 for the first quarter 2023, an increase of 3.1% year-over-year.
• Generated comparable property operating income (POI) growth of 3.8% for the first quarter excluding lease termination fees and prior period rents collected.
• Record levels of leasing with 104 signed leases for 566,865 square feet of comparable retail space in the first quarter, the highest first quarter volume on record, at a cash basis rollover growth of 9% and 20% on a straight line basis.
• Federal Realty's portfolio was 92.0% occupied and 94.3% leased at quarter end.
• Continued strong small shop leasing, ending the quarter at 91.4% leased, the highest level since 2015, and an increase of 70 basis points quarter-over-quarter and 140 basis points year-over-year.
• Tightened and raised 2024 earnings per diluted share guidance to $2.74 - $2.94, 2024 FFO per diluted share guidance to $6.67 - $6.87 and 2024 comparable properties growth excluding lease termination fees and prior period rents collected assumption to 2.75% - 4%.

"Federal Realty's strong start to 2024 is highlighted by our highest first-quarter leasing volume on record, surpassing 566,000 square feet of comparable retail space signed," said Donald C. Wood, Federal Realty's Chief Executive Officer. "In addition, we successfully executed leases for approximately 190,000 square feet of office space during the quarter at our premier mixed-use destinations. This robust demand underscores that our best-in-class shopping center and mixed-use offerings are the preferred choice for modern consumers, retailers, office employees, and corporate decision-makers when considering the future of their successful businesses."

Financial Results

Net Income

For the first quarter 2024, net income available for common shareholders was $54.7 million and earnings per diluted share was $0.66 versus $53.3 million and $0.65, respectively, for the first quarter 2023.

FFO

For the first quarter 2024, FFO was $136.7 million, or $1.64 per diluted share, compared to $130.3 million, or $1.59 per diluted share for the first quarter 2023.

FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance.  A reconciliation of FFO to net income is attached to this press release.

Operational Update

Occupancy

The portfolio was 92.0% occupied and 94.3% leased as of March 31, 2024. Small shop leased rate was 91.4% as of March 31, 2024, an increase of 70 basis points quarter-over-quarter and 140 basis points year-over-year.

Additionally, our residential properties were 96.3% leased as of March 31, 2024.

Leasing Activity

During the first quarter 2024, Federal Realty signed 111 leases for 587,329 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 104 leases for 566,865 square feet at an average rent of $36.39 per square foot compared to the average contractual rent of $33.30 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 9%, 20% on a straight-line basis. Comparable leases represented 94% of total comparable and non-comparable retail leases signed during the first quarter 2024.

Regular Quarterly Dividends

Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.09 per common share, resulting in an indicated annual rate of $4.36 per common share. The regular common dividend will be payable on July 15, 2024 to common shareholders of record as of June 21, 2024.

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 July 15, 2024 to shareholders of record as of July 1, 2024.

2024 Guidance

Federal Realty has updated its 2024 guidance, as summarized in the table below:

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