Federal Realty Investment Trust Reports 6.2% Revenue Growth and 24.6% Net Income Increase for Fiscal Year 2024

Federal Realty Investment Trust (FRT) reported a solid financial performance for the fiscal year ending December 31, 2024, with total property revenue reaching $1.20 billion, a 6.2% increase from $1.13 billion in 2023. The growth was primarily driven by a rise in rental income, which increased by $68.6 million to $1.17 billion, reflecting higher rental rates and improved occupancy levels. The company’s net income attributable to the Trust also saw a significant increase of 24.6%, rising to $295.2 million from $237.0 million in the previous year. This performance was bolstered by a notable gain on the sale of real estate, amounting to $54.0 million, compared to $9.9 million in 2023.

In terms of operational metrics, FRT's properties were 96.2% leased and 94.1% occupied as of December 31, 2024, compared to 92.2% occupancy in the prior year. The company signed leases for a total of 2.4 million square feet of retail space in 2024, achieving an average rental increase of 11% on a cash basis. This included new leases for 979,000 square feet at an average increase of 15% and renewals for 1.4 million square feet at an average increase of 8%. The company’s tenant diversification strategy continues to mitigate risks, with no single tenant accounting for more than 2.6% of annualized base rent.

Strategically, FRT made significant acquisitions in 2024, including the purchase of Virginia Gateway for $215 million and Pinole Vista Crossing for $60 million. These acquisitions are expected to enhance the company’s portfolio and contribute to future revenue growth. Additionally, FRT sold properties for a total of $106.8 million, resulting in a substantial gain. The company continues to focus on redevelopment projects, with ongoing investments totaling approximately $271 million expected to stabilize over the coming years.

Looking ahead, FRT remains cautious about the economic environment, particularly concerning inflation and rising interest rates, which could impact operational costs and tenant performance. The company plans to continue its focus on growth through property acquisitions and redevelopments while maintaining a conservative capital structure. FRT's management expressed confidence in the long-term demand for its retail spaces, supported by strong demographics in its target markets. The company aims to leverage its strategic locations and diverse tenant base to navigate potential economic challenges effectively.

Overall, Federal Realty Investment Trust's 2024 performance reflects a robust operational strategy and a commitment to enhancing shareholder value through strategic acquisitions and effective property management, despite facing broader economic uncertainties.