NYSE:FRT

Stock Analysis Report

Federal Realty Investment Trust

Executive Summary

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Federal Realty Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

FRT

-0.4%

US REITs

1.0%

US Market


1 Year Return

14.2%

FRT

20.9%

US REITs

6.7%

US Market

Return vs Industry: FRT underperformed the US REITs industry which returned 20.9% over the past year.

Return vs Market: FRT exceeded the US Market which returned 6.7% over the past year.


Share holder returns

FRTIndustryMarket
7 Day0.3%-0.4%1.0%
30 Day0.9%2.0%-1.8%
90 Day3.9%4.0%-1.8%
1 Year17.9%14.2%26.3%20.9%9.1%6.7%
3 Year1.6%-7.5%34.5%17.3%46.1%36.6%
5 Year27.5%10.2%64.8%29.9%66.9%48.6%

Price Volatility Vs. Market

How volatile is Federal Realty Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Federal Realty Investment Trust undervalued based on future cash flows and its price relative to the stock market?

1%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FRT ($136.2) is trading below our estimate of fair value ($137.72)

Significantly Undervalued: FRT is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: FRT is poor value based on its PE Ratio (40.5x) compared to the REITs industry average (34.8x).

PE vs Market: FRT is poor value based on its PE Ratio (40.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FRT is poor value based on its PEG Ratio (10x)


Price Based on Value of Assets

PB vs Industry: FRT is overvalued based on its PB Ratio (4.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Federal Realty Investment Trust expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FRT's forecast earnings growth (4% per year) is above the savings rate (2.7%).

Earnings vs Market: FRT's earnings (4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FRT's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRT's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FRT's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: FRT's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Federal Realty Investment Trust performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRT's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: FRT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRT had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the REITs industry average (17%).


Return on Equity

High ROE: FRT's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: FRT has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: FRT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Federal Realty Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FRT has a high level of physical assets or inventory.

Debt Coverage by Assets: FRT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: FRT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FRT has a sufficient allowance for bad loans.

Low Risk Liabilities: FRT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FRT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FRT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FRT has an appropriate level of bad loans.


Next Steps

Dividend

What is Federal Realty Investment Trust's current dividend yield, its reliability and sustainability?

3.13%

Expected Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years3.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: FRT's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: FRT's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: FRT's dividends per share have been stable in the past 10 years.

Growing Dividend: FRT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.9%), FRT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

What is the CEO of Federal Realty Investment Trust's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Don Wood (58yo)

16.8yrs

Tenure

US$7,464,182

Compensation

Mr. Donald C. Wood, also known as Don, CPA, has been the President and Chief Executive Officer of Federal Realty Investment Trust since 2000 and January 2003 respectively. Mr. Wood serves as the President  ...


CEO Compensation Analysis

Compensation vs. Market: Don's total compensation ($USD7.46M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.5yrs

Average Tenure

55yo

Average Age

Experienced Management: FRT's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

13.7yrs

Average Tenure

62yo

Average Age

Experienced Board: FRT's board of directors are seasoned and experienced ( 13.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Don Wood (58yo)

    President

    • Tenure: 16.8yrs
    • Compensation: US$7.46m
  • Jeff Berkes (55yo)

    EVP & President of Western Region

    • Tenure: 0yrs
    • Compensation: US$968.32k
  • Dawn Becker (55yo)

    Executive VP

    • Tenure: 17.5yrs
    • Compensation: US$1.39m
  • Debbie Colson

    Senior Vice President of Legal Operations

    • Tenure: 14.7yrs
  • Wendy Seher

    Executive VP & Eastern Region President

    • Tenure: 0yrs
  • Jan Sweetnam (59yo)

    Executive VP & COO of Western Region

    • Tenure: 3.6yrs
  • Melissa Solis (41yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 8.3yrs
  • Dan Guglielmone (52yo)

    Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$2.02m
  • Porter Bellew

    Chief Information Officer & VP

    • Tenure: 4.7yrs
  • Leah Andress Brady

    Investor Relations Manager

    • Tenure: 3.8yrs

Board Members

  • Joseph Vassalluzzo (71yo)

    Non-Executive Chairman of the Board

    • Tenure: 13.7yrs
    • Compensation: US$273.00k
  • David Faeder (62yo)

    Independent Trustee

    • Tenure: 16.5yrs
    • Compensation: US$200.00k
  • Don Wood (58yo)

    President

    • Tenure: 16.8yrs
    • Compensation: US$7.46m
  • Mark Ordan (60yo)

    Independent Trustee

    • Tenure: 0.7yrs
    • Compensation: US$76.08k
  • Jon Bortz (63yo)

    Independent Trustee

    • Tenure: 14.3yrs
    • Compensation: US$190.00k
  • Gail Steinel (62yo)

    Independent Trustee

    • Tenure: 13.3yrs
    • Compensation: US$210.00k
  • Liz Holland (53yo)

    Independent Trustee

    • Tenure: 2.7yrs
    • Compensation: US$190.00k

Company Information

Federal Realty Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Federal Realty Investment Trust
  • Ticker: FRT
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$10.294b
  • Market Cap: US$10.209b
  • Shares outstanding: 75.58m
  • Website: https://www.federalrealty.com

Number of Employees


Location

  • Federal Realty Investment Trust
  • 1626 East Jefferson Street
  • Rockville
  • Maryland
  • 20852
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRTNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
WX2DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
FRIT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
0IL1LSE (London Stock Exchange)YesCommon SharesGBUSDDec 1972
FRT.PRCNYSE (New York Stock Exchange)5% CUM PFD CUSUSDSep 2017

Biography

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as wel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:11
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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