Can Federal Realty (FRT) Pull Off A Surprise In Q4 Earnings?
Zacks Investment Research | Feb 11, 2019 08:59PM ET
Federal Realty Investment Trust (NYSE:FRT) is set to report fourth-quarter 2018 results after the market closes on Feb 13. Both its revenues and funds from operations (FFO) are anticipated to reflect year-over-year growth.
In the last reported quarter, this retail real estate investment trust (REIT) delivered a positive surprise of 1.94% with respect to FFO per share. Results reflected growth in revenues.
The company has a decent surprise history. In the trailing four quarters, it surpassed estimates thrice and came in line in the other, with average positive surprise of 1.15%. The graph below depicts the surprise history of the company:
For full-year 2018, Federal Realty expects FFO per share of $6.18-$6.24. The Zacks Consensus Estimate for the same is currently pinned at $6.22.
Let’s see how things have shaped up for this announcement.
Factors at Play
Federal Realty’s portfolio of premium retail assets — mainly situated in the major coastal markets from Washington, D.C. to Boston, San Francisco and Los Angeles — along with a diverse tenant base positions it well for decent growth in the to-be-reported quarter.
Moreover, a healthy U.S. economy, job-market gains, high consumer confidence and low gas prices have buoyed consumers’ spending power. This is evident from the 5.1% year-over-year growth in the retail sales figure for the 2018 holiday season, which marked the highest level in six years, according to Mastercard’s SpendingPulse. This is anticipated to send across encouraging signals within the retail real estate industry.
And with Federal Realty’s properties having superior demographics with dense population and strong household income, as well as flexible property format, the company is likely to have enjoyed decent footfall.
In addition, the recent Zacks Investment Research
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