Federal Realty Reports Record Q3 Leasing, Raises 2025 FFO Outlook

Federal Realty Investment Trust (FRT) reported strong third-quarter 2025 results, with funds from operations (FFO) per share of $1.77, surpassing analyst estimates and reflecting a 4.4% growth in comparable property operating income. The company achieved its best leasing quarter ever, signing leases for 727,000 square feet of comparable space at a 28% higher annual cash rent than previous tenants, highlighting robust leasing activity especially in retail small shops. Federal Realty's comparable portfolio occupancy rate rose slightly to 94%, though residential and anchor tenant leasing rates saw modest declines. The acquisition of Annapolis Town Center for $187 million is expected to enhance surrounding merchandising and rental income. Despite some challenges such as refinancing headwinds and balancing asset sales with acquisitions, FRT maintains significant liquidity of approximately $1.3 billion, supporting future investments. The company has raised its 2025 FFO outlook, signaling confidence in ongoing growth prospects amid strong operational performance.