Federal Realty Investment Trust (FRT) Up 6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Federal Realty Investment Trust (FRT). Shares have added about 6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Federal Realty Investment Trust due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Federal Realty's Misses Q3 Estimates, Revises '24 GuidanceFederal Realty Investment Trust’s third-quarter 2024 FFO per share of $1.71 narrowly missed the Zacks Consensus Estimate of $1.72. However, this marked a rise of 3.6% from the year-ago quarter’s tally of $1.65.Results reflected healthy leasing activity and significant occupancy gains at its properties. However, higher interest expenses played spoilsport. Federal Realty has also tightened and increased its guidance for 2024 FFO per share.Quarterly revenues of $303.6 million exceeded the consensus mark of $301.2 million and improved 5.9% from the year-ago quarter’s tally. Federal Realty generated 2.9% comparable property operating income growth.Behind Federal Realty’s HeadlinesIn terms of leasing, during the reported quarter, Federal Realty signed 129 leases for 592,527 square feet of retail space. On a comparable space basis, the company signed 126 leases for 580,977 square feet of space at an average rent of $34.94 per square foot. This denotes cash-basis rollover growth of 14% and 26% on a straight-line basis.On the operational front, the portfolio occupancy rate increased 90 bps quarter over quarter and 170 basis points year over year to 94% as of Sept. 30, 2024.The portfolio was 95.9% leased as of the same date, a 60 bps increase quarter over quarter and 190 basis points year over year. Moreover, Federal Realty’s residential properties were 97.5% leased as of the same date.Sustained robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.1%, marking an increase of 60 bps quarter over quarter and 240 basis points year over year. Moreover, the anchor tenant leased rate was 97.3%, denoting a rise of 60 bps quarter over quarter and 150 bps year over year.Moreover, Federal Realty registered comparable property operating income growth of 2.9% for the third quarter. This is exclusive of lease termination fees and prior-period rents collected.During the third quarter, Federal Realty acquired Pinole Vista Crossing in Pinole, CA, a grocery-anchored shopping center comprising 216,000 square feet on 19 acres of land, for a purchase price of $60 million. The move expands the company's presence in Northern California's East Bay sub-market.Federal Realty exited the third quarter of 2024 with cash and cash equivalents of $97.0 million, down from $103.2 million recorded at the end of the second quarter of 2024.Federal Realty’s GuidanceFor 2024, Federal Realty revised its guidance for FFO per share in the range of $6.76-$6.86 from the $6.70-$6.88 range guided earlier.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.VGM ScoresCurrently, Federal Realty Investment Trust has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Federal Realty Investment Trust has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerFederal Realty Investment Trust belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Regency Centers (REG), has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Regency Centers reported revenues of $360.27 million in the last reported quarter, representing a year-over-year change of +9%. EPS of $0.54 for the same period compares with $1.02 a year ago.Regency Centers is expected to post earnings of $1.06 per share for the current quarter, representing a year-over-year change of +3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.Regency Centers has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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