Federal Realty Investment Trust (FRT) Q4 2025 earnings summary

Executive summary

• Achieved 6.4% FFO growth in Q4 and 4.3% for 2025, with 2026 guidance midpoint near 6% growth, excluding one-time New Markets Tax Credit impact.

• Portfolio concentrated in affluent, supply-constrained U.S. markets with strong demographics and high barriers to entry.

• Record leasing volumes and highest comparable rent spreads in over a decade, with 2.5 million sq ft leased and occupancy at 94.5% at year-end.

• Strategic focus on rent growth, disciplined expense management, and capitalizing on high-quality real estate for multi-year growth.

• Proven, cycle-tested management team with a long track record of value creation and innovation.

Financial highlights

• FFO per share for Q4 was $1.84, up 6.4% year-over-year; full-year core FFO was $7.06 per share, NAREIT FFO $7.22 per share.

• Full year 2025 net income available for common shareholders was $403.0 million, up from $287.2 million in 2024.

• Comparable POI growth averaged 3.8% for the year and 3.1% for Q4; cash basis POI growth was 3.6% for the year and 4.3% for Q4.

• Liquidity at year-end was $1.3 billion, with a new $250 million delayed draw term loan closed in Q4.

• Asset sales of $169 million in Q4 and $159 million post-year-end at low 5% cap rates; $170 million of additional sales in process.

Outlook and guidance

• 2026 guidance for both NAREIT and core FFO is $7.42-$7.52 per share, with midpoint core FFO growth of 5.8% over 2025.

• Comparable POI growth forecasted at 3%-3.5% for 2026, with occupancy expected to dip to mid-93% in H1 and rebound above 94% by year-end.

• Full-year contribution from $750 million of 2025 acquisitions at a 7% blended cash cap rate.

• Projected development/redevelopment capital for 2026 is $175–$225 million.

• No new acquisitions assumed in 2026 guidance; only announced dispositions included.