Federal Realty Investment Trust (FRT), headquartered in North Bethesda, Maryland, is a self-administered real estate investment trust (REIT). Valued at $9.2 billion by market cap, the company specializes in the ownership, management, development, and redevelopment of prime community and neighborhood shopping centers.
Shares of this shopping center-focused retail REIT have underperformed the broader market over the past year. FRT has declined 5.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.9%. However, in 2026, FRT stock is up 3.9%, surpassing the SPX’s marginal fall on a YTD basis.
Narrowing the focus, FRT’s underperformance is also apparent compared to the Real Estate Select Sector SPDR Fund (XLRE). The exchange-traded fund has gained about 2.3% over the past year. Moreover, the ETF’s 6.3% returns on a YTD basis outshine the stock’s gains over the same time frame.
On Feb. 12, FRT shares closed down more than 2% after reporting its Q4 results. Its FFO of $1.84 per share missed Wall Street expectations of $1.86 per share. The company’s revenue was $336 million, beating Wall Street forecasts of $329 million. FRT expects full-year FFO in the range of $7.42 to $7.52 per share.
For fiscal 2026, ending in December, analysts expect FRT’s FFO per share to grow 2.8% to $7.42 on a diluted basis. The company’s FFO surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 19 analysts covering FRT stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is more bullish than two months ago, with seven analysts suggesting a “Strong Buy.”
On Feb. 2, Juan C. Sanabria from BMO Capital maintained a “Buy” rating on FRT with a price target of $120, the Street-high price target, implying a potential upside of 14.6% from current levels.
The mean price target of $111.08 represents a 6% premium to FRT’s current price levels.
