Federal Realty Investment Trust Reports First Quarter 2026 Results

NORTH BETHESDA, Md., May 1, 2026 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today reported its results for the first quarter ended March 31, 2026. For the three months ended March 31, 2026 and 2025, net income available for common shareholders was $1.81 per diluted share and $0.72 per diluted share, respectively. Operating income for the same periods was $209.0 million and $108.1 million, respectively. Results for the current quarter include a $92.7 million gain on sale of real estate, primarily related to the February sale of Misora at Santana Row, compared to $1.2 million in the first quarter of 2025.

Highlights for the first quarter and subsequent to quarter-end include:

"We delivered a strong start to the year, exceeding expectations and continuing the momentum we built in 2025. Our portfolio is performing well amid a volatile macro environment, reflecting both the strength of our platform and the resilience of the higher-income consumer we serve," said Donald C. Wood, Chief Executive Officer of Federal Realty. "With this performance, we are increasing our outlook for 2026, reinforcing our confidence in the consistency and durability of our earnings growth."

Financial Results

Net Income

For the first quarter of 2026, net income available for common shareholders was $157.1 million and earnings per diluted share was $1.81 versus $61.8 million and $0.72, respectively, for the first quarter of 2025.

FFO

Nareit FFO was $162.6 million, or $1.88 per diluted share, for the first quarter of 2026, compared to $146.5 million, or $1.70 per diluted share, in the first quarter of 2025, a 10.6% per-share increase.

Core FFO was $162.6 million, or $1.88 per diluted share, for the first quarter of 2026, compared to $146.4 million, or $1.70 per diluted share, in the first quarter of 2025, a 10.6% per-share increase.

Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and a full definition of Core FFO.

Operational Update

Occupancy

The following operational metrics for the commercial portfolio are as of March 31, 2026:

The residential leased rate for comparable properties was 95.6% as of March 31, 2026, up 100 basis points year-over-year.

Leasing Activity

During the first quarter of 2026, Federal Realty signed 106 leases totaling 661,158 square feet of retail space. On a comparable space basis, the company signed 101 leases for 649,078 square feet — a first-quarter volume record — at an average rent of $35.79 per square foot, compared to $31.75 under prior leases, representing a 13% increase on a cash basis and 23% increase on a straight-line basis.

On a trailing twelve-month basis, Federal Realty signed 448 comparable leases totaling 2,620,601 square feet — also a volume record — representing 16% rent spreads on a cash basis and 28% on a straight-line basis.

Transaction Activity

Financing Activity

Regular Quarterly Dividends

Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on July 15, 2026 to common shareholders of record as of July 1, 2026.

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, 2026 to shareholders of record as of July 1, 2026.

2026 Guidance

Federal Realty has raised and tightened its 2026 earnings per diluted share, Nareit FFO, and Core FFO guidance, as summarized in the table below:

Full Year 2026 Guidance

Revised Guidance

Prior Guidance

Net income available for common shareholders per diluted share

$3.94 to $4.03

$3.90 to $4.00

Nareit FFO per diluted share

$7.46 to $7.55

$7.42 to $7.52

Core FFO per diluted share

$7.46 to $7.55

$7.42 to $7.52

% Core FFO growth over the prior year

5.7% - 6.9%

5.1% - 6.5%

Conference Call Information

Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its first quarter 2026 earnings conference call, which is scheduled for Friday, May 1, 2026 at 9:00 AM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through May 15, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10207838.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 104 properties include approximately 3,800 tenants in 29.0 million commercial square feet, and approximately 2,500 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

Safe Harbor Language

Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following:

Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2026.

Investor Inquiries:

Jill Sawyer

Senior Vice President, Investor Relations

301.998.8265

[email protected]

Media Inquiries:

Brenda Pomar

Senior Director, Corporate Communications

301.998.8316

[email protected]

Federal Realty Investment Trust

Consolidated Balance Sheets

March 31, 2026

March 31,

December 31,

2026

2025

(in thousands, except share and

per share data)

(unaudited)

ASSETS

Real estate, at cost

Operating (including $1,898,790 and $1,832,190 of consolidated variable interest

entities, respectively)

11,302,971

11,265,167

Construction-in-progress (including $30,376 and $28,418 of consolidated variable

interest entities, respectively)

358,950

374,735

11,661,921

11,639,902

Less accumulated depreciation and amortization (including $474,534 and $468,725 of

consolidated variable interest entities, respectively)

(3,394,099)

(3,351,881)

Net real estate

8,267,822

8,288,021

Cash and cash equivalents

115,633

107,415

Accounts and notes receivable, net

249,428

249,755

Mortgage notes receivable, net

—

9,091

Investment in partnerships

31,105

31,881

Operating lease right of use assets, net

82,234

83,120

Finance lease right of use assets, net

6,356

6,410

Prepaid expenses and other assets

344,192

354,767

TOTAL ASSETS

9,096,770

$ 9,130,460

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Mortgages payable, net (including $191,475 and $194,176 of consolidated variable

interest entities, respectively)

519,021

521,759

Notes payable, net

1,365,333

1,057,331

Senior notes and debentures, net

2,965,414

3,364,010

Accounts payable and accrued expenses

222,187

219,678

Dividends payable

99,926

99,792

Security deposits payable

32,489

31,548

Operating lease liabilities

71,484

72,304

Finance lease liabilities

12,935

12,903

Other liabilities and deferred credits

243,637

250,494

Total liabilities

5,532,426

5,629,819

Commitments and contingencies

Redeemable noncontrolling interests

182,827

181,655

Shareholders' equity

Preferred shares, authorized 15,000,000 shares, $0.01 par:

5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation

preference $25,000 per share), 6,000 shares issued and outstanding

150,000

5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation

preference $25 per share), 392,878 shares issued and outstanding

9,822

Common shares of beneficial interest, $0.01 par, 200,000,000 shares authorized,

86,386,687 and 86,266,009 shares issued and outstanding, respectively

870

869

Additional paid-in capital

4,310,277

4,310,365

Accumulated dividends in excess of net income

(1,164,907)

(1,224,372)

Accumulated other comprehensive income

5,075

2,047

Total shareholders' equity of the Trust

3,311,137

3,248,731

Noncontrolling interests

70,380

70,255

Total shareholders' equity

3,381,517

3,318,986

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

9,096,770

9,130,460

Federal Realty Investment Trust

Consolidated Income Statements

March 31, 2026

Three Months Ended

March 31,

2026

2025

(in thousands, except per share data)

(unaudited)

REVENUE

Rental income

332,658

302,294

Other property income

7,890

6,585

Mortgage interest income

536

275

Total revenue

341,084

309,154

EXPENSES

Rental expenses

74,697

67,804

Real estate taxes

38,971

36,567

General and administrative

11,925

10,875

Depreciation and amortization

99,217

86,946

Total operating expenses

224,810

202,192

Gain on sale of real estate

92,711

1,171

OPERATING INCOME

208,985

108,133

OTHER INCOME/(EXPENSE)

Other interest income

1,040

743

Interest expense

(49,116)

(42,475)

Income from partnerships

161

177

NET INCOME

161,070

66,578

Net income attributable to noncontrolling interests

(1,971)

(2,810)

NET INCOME ATTRIBUTABLE TO THE TRUST

159,099

63,768

Dividends on preferred shares

(2,008)

NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS

157,091

61,760

EARNINGS PER COMMON SHARE, BASIC

Net income available for common shareholders

1.82

0.72

Weighted average number of common shares

86,040

85,472

EARNINGS PER COMMON SHARE, DILUTED

Net income available for common shareholders

1.81

0.72

Weighted average number of common shares

86,662

85,472

Federal Realty Investment Trust

Funds From Operations

March 31, 2026

Three Months Ended

March 31,

2026

2025

(in thousands, except per share data)

Nareit Funds from Operations available for common shareholders (Nareit FFO) (1)

Net income

161,070

66,578

Net income attributable to noncontrolling interests

(1,971)

(2,810)

Gain on sale of real estate

(92,711)

(1,171)

Depreciation and amortization of real estate assets

84,778

76,498

Amortization of initial direct costs of leases

13,233

9,077

Funds from operations

164,399

148,172

Dividends on preferred shares (2)

(1,875)

Income attributable to downREIT operating partnership units

596

669

Income attributable to unvested shares

(567)

(490)

Nareit FFO

162,553

146,476

Weighted average number of common shares, diluted (2)(3)

86,662

86,177

Nareit FFO per diluted share (3)

1.88

1.70

Core Funds from Operations (Core FFO) (1)

Nareit FFO

162,553

146,476

Adjustments:

Collection of prior period rents deferred during COVID

—

(67)

Core FFO

162,553

146,409

Core FFO per diluted share (3)

1.88

1.70

Notes:

(1)

See Glossary of Terms.

(2)

For the three months ended March 31, 2026 and 2025, dividends on our Series 1 preferred stock were not deducted in the

calculation of FFO available to common shareholders, as the related shares were dilutive and are included in "weighted average

number of common shares, diluted."

(3)

The weighted average common shares used to compute Nareit and Core FFO per diluted common share includes downREIT

operating partnership units that were excluded from the computation of diluted EPS. Conversion of these operating partnership units

is dilutive in the computation of Nareit and Core FFO per diluted share for all periods presented, but is anti-dilutive for the

computation of diluted EPS for the three months ended March 31, 2025.

Reconciliation of the range of estimated earnings per diluted share to estimated Nareit FFO and Core FFO per diluted share for

the full year 2026:

Full Year 2026 Guidance Range Range

Low

High

Estimated net income available for common shareholders per diluted share

3.94

4.03

Adjustments:

Estimated gain on sale of real estate

(1.06)

Estimated depreciation and amortization

4.58

Estimated Nareit FFO and Core FFO per diluted share

7.46

7.55

See Glossary of Terms. Individual items may not add up to total due to rounding.

Federal Realty Investment Trust

Comparable Property Information

March 31, 2026

Comparable Properties represents our consolidated property portfolio other than those properties that distort comparability between periods in two

primary categories: (1) assets that were not owned for the full quarter in both periods presented and (2) assets currently under development or being

repositioned for significant redevelopment and investment. Property Operating Income ("POI") is defined as total revenue less rental expenses and

real estate taxes. Comparable Property property operating income ("Comparable Property POI") and Comparable Property POI - Adjusted are non-

GAAP measures used by management in evaluating the operating performance of our properties period over period. Comparable Property POI -

Adjusted excludes the impact of straight-line rents and amortization of in-place leases from Comparable Property POI.

Reconciliation of GAAP operating income to Comparable Property POI and Comparable Property POI - Adjusted

Three Months Ended

March 31,

2026

2025

(in thousands)

Operating income

208,985

108,133

Add:

Depreciation and amortization

99,217

86,946

General and administrative

11,925

10,875

Gain on sale of real estate

(92,711)

(1,171)

POI

227,416

204,783

Less: Non-comparable POI - acquisitions/dispositions

(15,912)

(7,130)

Less: Non-comparable POI - redevelopment, development & other

(10,934)

(6,024)

Comparable Property POI

200,570

191,629

Less: Straight-line rents

(4,591)

(5,392)

Less: Amortization of in-place leases

(3,021)

(2,691)

Comparable Property POI - Adjusted

192,958

183,546

Glossary of Terms

Nareit-defined Funds From Operations (Nareit FFO): Nareit FFO is a supplemental measure of real estate companies' operating performances. NAREIT defines FFO as follows: net income, computed in accordance with GAAP plus real estate related depreciation and amortization, gains and losses on sale of real estate, and impairment write-downs of depreciable real estate. Nareit developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, Nareit FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider Nareit FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs.

Core Funds From Operations (Core FFO): Core FFO is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company's underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.

SOURCE Federal Realty Investment Trust