FRT US S&P 500Russell 1000 Earnings call
Federal Realty Investment Trust (FRT) · Q2 2026 results and valuation
Share price: $113.10 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 1 May 2026
Net income down 46.1% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−46.1%
Net income vs Q1 2026
Guidance raised
Net income 85.7M vs 159.1M
Revenue −1.6%
Against the same quarter last year (Q2 2025) it is −45.0%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 55% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
New
Parking, percentage rent, incremental income, and stronger occupancy added $0.03 to the forecast.
Valuation
Is Federal Realty Investment Trust undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.0% growth a year (3-year revenue growth), the model's fair value is $26.07 a share — the stock trades 334% above it. Today's price assumes 15.8% growth a year.
Current price
$113.10
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.8% for 10 yrs
Fair value / share
$26.07
Buy below
$19.55
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Guidance ↑
The company raised its outlook for the remainder of the year following an FFO beat for 2Q and a robust first quarter.
Source quote
“As a result of another solid FFO beat for 2Q on the heels of a robust first quarter, along with an encouraging outlook for the balance of the year...”
-
Guidance
Forecasted operational outperformance increased by $0.03 due to parking, percentage rent, incremental income, and stronger occupancy than previously forecast.
Source quote
“$0.03 of forecasted operational outperformance driven by parking, percentage rent and incremental income and stronger occupancy than we forecast.”
-
Figure
The business development platform reported a standout quarter for incremental income, though the specific numerical amount was not provided in the evidence.
Source quote
“And finally, our business development platform that we highlighted at Investor Day had a standout quarter, with our incremental income...”
-
Fading
Comparable POI growth was 4.7% for the quarter, which is noted as particularly impressive given the challenging winter conditions in the Northeast.
Source quote
“Comparable POI growth was strong for the quarter at 4.7%, particularly impressive given the challenging winter conditions we faced in the Northeast. As Don mentioned, we had record leasing this quarter with rent rollover at 16% on a trailing 12-month basis, keeping in mind that the rollover statistic represents 96% of our reported deals. I couldn't be more pleased with the results.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Drivers for the guidance increase include our comparable GAAP based POI growth outlook improving to 3.25 to 3.5% from the previous 3.8% to 3.5 Our cash comparable growth or adjusted...”
“Opportunities for additional accretive acquisitions, net of dispositions, continue to be a laser like focus of the team and are expected to continue to improve our overall growth.”
“This roughly $2 million increase is offset by the $2 million rise in our forecasted G&A as we make investments in our digital innovation and business development teams.”
Full figures
USD · ROIC.AI fundamentals (NYSE:FRT, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 335.7M | 341.1M | −1.6% | 311.5M | +7.8% |
| Gross profit | 232.1M | — | — | ||
| Operating income | 118.0M | 209.0M | −43.5% | 202.7M | −41.8% |
| Net income | 85.7M | 159.1M | −46.1% | 155.9M | −45.0% |
| EPS | 0.97 | 1.81 | −46.3% | 1.78 | −45.4% |
| P/E today 18.4 | — | 18.4 | — | 24.0 | — |
Topics
Most discussed now
- Rental income and recoveries, $0.02 from stronger percentage rent parking revenues, incremental income initiatives Wendy just referenced…
- Federal Realty Investment Trust delivered over 100 thousand square feet of net small shop occupancy this quarter increasing its occupied…
- At these occupancy levels, Federal Realty Investment Trust can drive small shop rents in the double digit range on average something it…
Faded since Q1 2026
- Fading It will be probably about 40 to 50 basis points higher on a cash basis.
- Dropped Early lease-up of a residential product is something that will be a drag initially before it turns positive later in...
- Fading All variations of this metric were ahead of Federal Realty Investment Trust's expectations, highlighting the strong start to the year.
- Fading Executed but not yet occupied deals will contribute an incremental $36 million of rent over the balance of...
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement · SEC 8-K
- Director or officer change · SEC 8-K