# Federal Realty Investment Trust (FRT.US)

Canonical: https://gigainvestors.com/s/FRT

Analysis as of: 2026-10-16T07:36:06.210Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $105.68 per share; close as of 2026-10-15.

Estimated value: low $57.89 per share, central $69.59 per share, high $81.05 per share. Buy at or below the central value $69.59 per share. Valuation as of 2026-10-16T07:36:06.210Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.40×

- FY2017: 0.48×

- FY2018: 0.40×

- FY2019: 0.50×

- FY2020: 0.35×

- FY2021: 0.41×

- FY2022: 0.49×

- FY2023: 0.36×

- FY2024: 0.39×

- FY2025: 0.36×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 57.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.0%

- ROIC, second-lowest year: 3.6%

- Typical minus recent gross margin: 57.9 pp

- Typical gross margin (annual median): 67.7%

- Recent gross margin (lower of latest and 3-year median): 9.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 42.0%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.4%

- FY2017: 7.4%

- FY2018: 6.2%

- FY2019: 5.4%

- FY2020: 2.9%

- FY2021: 3.9%

- FY2022: 4.7%

- FY2023: 3.6%

- FY2024: 6.2%

- FY2025: 4.4%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.8B

- Net income, five-year total: $1.6B

- Return on incremental invested capital: 6.9%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 4.2 pp

- Working capital / revenue, final three-year average: 3.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.04×

- FY2024: 1.32×

- FY2025: 1.19×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.4% vs 4.4%

- Per-share earnings: 3.52 to 3.53 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.3%

- Ordinary dilution, 5-year annual growth: 2.7%

- Market cap gain: -$1.5B

- Cumulative retained earnings: -$475M

- Diluted shares, 10-year annual growth: 2.3%

- Diluted shares, 5-year annual growth: 2.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.1%

- Per-share value change: $0.02

- Per-share value, starting three-year median: $3.52

- Per-share value, ending three-year median: $3.53

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 0.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $50M

- Cumulative net income, 10 years: $2.9B

- ROIC, first three-year median: 6.4%

- ROIC, last three-year median: 4.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.52

- FY2017: $4.01

- FY2018: $3.30

- FY2019: $4.73

- FY2020: $1.80

- FY2021: $3.38

- FY2022: $4.79

- FY2023: $2.91

- FY2024: $3.53

- FY2025: $4.76

### accounting: pass

- Sloan accruals: -2.3%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.51×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -2.7%

- FY2018: -4.4%

- FY2019: -1.6%

- FY2020: -3.1%

- FY2021: -2.8%

- FY2022: -1.6%

- FY2023: -3.8%

- FY2024: -3.3%

- FY2025: -2.3%

## Holders

## Price story

Down 22% since Dec 2021 · sales +6.3%

Story as of 2026-10-16T10:00:06.774Z; price observation 2026-10-15.

Price needs cash profits to grow 7.5% a year for ten years

- 2025-08-06: Federal Realty lifts FFO guidance after higher leasing activity buoys Q2 ([seekingalpha.com](https://seekingalpha.com/news/4480683-federal-realty-lifts-ffo-guidance-after-higher-leasing-activity-buoys-q2-results?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-01: FRT Q1 FFO Tops Estimates on Record Leasing, POI Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/frt-q1-ffo-tops-estimates-142900737.html))

- 2026-07-31: Federal Realty's Q2 FFO Beats on Record Leasing, Dividend Raised ([finance.yahoo.com](https://finance.yahoo.com/real-estate/articles/federal-realtys-q2-ffo-beats-184500286.html))

### Sales · FY2024–2025

sales +6.3%; source https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm; observed 2026-02-12.

- FY2016: $802M 

- FY2017: $857M 

- FY2018: $915M 

- FY2019: $936M 

- FY2020: $835M 

- FY2021: $951M 

- FY2022: $1.1B 

- FY2023: $1.1B 

- FY2024: $1.2B 

- FY2025: $1.3B 

### Gross margin · FY2025

gross margin 9.7%; source https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm; observed 2026-02-12.

- FY2016: 68.4% 

- FY2017: 68.2% 

- FY2018: 68.6% 

- FY2019: 68.1% 

- FY2020: 65.3% 

- FY2021: 66.7% 

- FY2022: 66.8% 

- FY2023: 67.9% 

- FY2024: 67.4% 

- FY2025: 9.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 1.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); FY2025: revenue 1278804000; grossProfit 124408000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FRT.US: Federal Realty Investment Trust 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. 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 103 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 59 consecutive years, the longest record in the REIT industry. Federal Realty Investment Trust is based in North Bethesda, Maryland. Federal Realty Investment Trust was incorporated in 1962 in Maryland.

### Why customers stay

Margins ranged from 9.7% to 67.9% during 2023–25; it earns 5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 67.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 67.4%.

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.06380382463176072],[2017,0.07355013658978098],[2018,0.062458344379610835],[2019,0.05438618780875893],[2020,0.028932507788106916],[2021,0.03881145141747255],[2022,0.04659588057059204],[2023,0.03570151130999523],[2024,0.06207502604989042],[2025,0.044434764003185946]]; median 0.05049103418967549. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 67% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); Gross margin observations: [[2021,0.6671478011488357],[2022,0.6679176230339787],[2023,0.6792883300328401]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 4.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 243695000; upkeep 193585000; owner earnings 249910000. Growth capex / owner earnings = 0.9751310471769837.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 302886000; upkeep 216050000; owner earnings 289914000. Growth capex / owner earnings = 1.0447443034831019.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 124013000; upkeep 244245000; owner earnings 241907000. Growth capex / owner earnings = 0.5126474223565255.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 103449736.03498644; upkeep 306460263.96501356; owner earnings 287163736.03498644. Growth capex / owner earnings = 0.36024651811321573.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 501936000; owner earnings 195974000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 160538000; upkeep 279976000; owner earnings 261498000. Growth capex / owner earnings = 0.6139167412370267.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 114292000; upkeep 302409000; owner earnings 385491000. Growth capex / owner earnings = 0.2964842240156061.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 311120000; owner earnings 247628000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 246760000; owner earnings 391046000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 291338000; owner earnings 487581000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,267694000],[2017,282995000],[2018,301194000],[2019,313649000],[2020,324596000],[2021,335656000],[2022,347284000],[2023,359194000],[2024,371586000],[2025,388058000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 4911000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FRT.US SharesStats.PercentInsiders = 1.0290000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Our net income depends on the success and continued presence of our “anchor” tenants." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm (filed 2026-02-12); Our net income depends on the success and continued presence of our “anchor” tenants.

### What the price says

The price assumes cash profits grow 7.5% yearly over ten years; actual growth was 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.09436915258762457. Price 105.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.0474913381945754 → FY2025 5.6429720502285745. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $145.23 per share

- 2016-11: $140.42 per share

- 2016-12: $142.11 per share

- 2017-01: $140.43 per share

- 2017-02: $140.73 per share

- 2017-03: $133.50 per share

- 2017-04: $130.89 per share

- 2017-05: $122.74 per share

- 2017-06: $126.39 per share

- 2017-07: $132.63 per share

- 2017-08: $126.93 per share

- 2017-09: $124.21 per share

- 2017-10: $120.52 per share

- 2017-11: $132.21 per share

- 2017-12: $132.81 per share

- 2018-01: $120.80 per share

- 2018-02: $113.94 per share

- 2018-03: $116.11 per share

- 2018-04: $115.85 per share

- 2018-05: $118.89 per share

- 2018-06: $126.55 per share

- 2018-07: $125.50 per share

- 2018-08: $130.61 per share

- 2018-09: $126.47 per share

- 2018-10: $124.05 per share

- 2018-11: $132.09 per share

- 2018-12: $118.04 per share

- 2019-01: $132.57 per share

- 2019-02: $133.59 per share

- 2019-03: $137.85 per share

- 2019-04: $133.85 per share

- 2019-05: $130.73 per share

- 2019-06: $128.76 per share

- 2019-07: $132.01 per share

- 2019-08: $129.21 per share

- 2019-09: $136.14 per share

- 2019-10: $136.01 per share

- 2019-11: $132.07 per share

- 2019-12: $128.73 per share

- 2020-01: $125.02 per share

- 2020-02: $116.34 per share

- 2020-03: $74.61 per share

- 2020-04: $83.27 per share

- 2020-05: $79.91 per share

- 2020-06: $85.21 per share

- 2020-07: $76.30 per share

- 2020-08: $79.24 per share

- 2020-09: $73.44 per share

- 2020-10: $68.78 per share

- 2020-11: $87.22 per share

- 2020-12: $85.12 per share

- 2021-01: $87.56 per share

- 2021-02: $101.17 per share

- 2021-03: $101.45 per share

- 2021-04: $112.84 per share

- 2021-05: $114.34 per share

- 2021-06: $117.17 per share

- 2021-07: $117.53 per share

- 2021-08: $121.77 per share

- 2021-09: $117.99 per share

- 2021-10: $120.35 per share

- 2021-11: $122.67 per share

- 2021-12: $136.32 per share

- 2022-01: $127.49 per share

- 2022-02: $117.58 per share

- 2022-03: $122.07 per share

- 2022-04: $117.06 per share

- 2022-05: $114.97 per share

- 2022-06: $95.74 per share

- 2022-07: $105.61 per share

- 2022-08: $101.27 per share

- 2022-09: $90.12 per share

- 2022-10: $98.98 per share

- 2022-11: $111.10 per share

- 2022-12: $101.04 per share

- 2023-01: $111.53 per share

- 2023-02: $106.78 per share

- 2023-03: $98.83 per share

- 2023-04: $98.89 per share

- 2023-05: $88.20 per share

- 2023-06: $96.77 per share

- 2023-07: $101.52 per share

- 2023-08: $97.94 per share

- 2023-09: $90.63 per share

- 2023-10: $91.19 per share

- 2023-11: $95.59 per share

- 2023-12: $103.05 per share

- 2024-01: $101.73 per share

- 2024-02: $100.85 per share

- 2024-03: $102.12 per share

- 2024-04: $104.17 per share

- 2024-05: $100.95 per share

- 2024-06: $100.97 per share

- 2024-07: $111.65 per share

- 2024-08: $115.00 per share

- 2024-09: $114.97 per share

- 2024-10: $110.84 per share

- 2024-11: $116.65 per share

- 2024-12: $111.95 per share

- 2025-01: $108.63 per share

- 2025-02: $105.42 per share

- 2025-03: $97.82 per share

- 2025-04: $94.02 per share

- 2025-05: $95.48 per share

- 2025-06: $94.99 per share

- 2025-07: $92.16 per share

- 2025-08: $100.55 per share

- 2025-09: $101.31 per share

- 2025-10: $96.19 per share

- 2025-11: $98.73 per share

- 2025-12: $100.80 per share

- 2026-01: $101.16 per share

- 2026-02: $108.77 per share

- 2026-03: $106.21 per share

- 2026-04: $110.90 per share

- 2026-05: $119.63 per share

- 2026-06: $123.44 per share

- 2026-07: $124.09 per share

- 2026-08: $116.03 per share

- 2026-09: $108.29 per share

- 2026-10: $105.68 per share

## Annual estimated value (USD per share)

- FY2016: low $34.45 per share, central $42.96 per share, high $50.11 per share

- FY2017: low $36.78 per share, central $42.00 per share, high $48.79 per share

- FY2018: low $43.02 per share, central $53.90 per share, high $62.82 per share

- FY2019: low $47.58 per share, central $59.41 per share, high $69.11 per share

- FY2020: low $47.46 per share, central $52.58 per share, high $59.39 per share

- FY2021: low $39.84 per share, central $46.38 per share, high $53.65 per share

- FY2022: low $44.23 per share, central $54.54 per share, high $63.50 per share

- FY2023: low $45.02 per share, central $51.31 per share, high $59.16 per share

- FY2024: low $48.76 per share, central $61.03 per share, high $71.05 per share

- FY2025: low $56.37 per share, central $67.56 per share, high $78.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/34903/000003490326000017/frt-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.