Feverpitched Early April this year I wrote an article on Federal Realty Investment Trust (NYSE: NYSE: FRT ) - Federal Realty Investment: Attractive Moment To Enter This Dividend King . As the name implies, my recommendation was to enter FRT. While more details can be found in the article, the key reasons for this were the following: Depressed multiples relative to the historical level.
Narrowed premium relative to closest peers such as Realty Income Corporation (NYSE: O ) and Agree Realty Corporation (NYSE: ADC ). One of the lowest FFO payout levels in the industry, which should enable enhanced growth prospects (price and income wise). Relatively attractive yield, which is not that common given the investment grade balance sheet, conservative FFO payout level and inherently defensive business.
Since the publication of the article, FRT has delivered positive returns slightly outperforming the broader REIT market. Yet, all in all, the share price movement has been insignificant implying that the opportunity is likely still there. Ycharts Some time ago, but after the issuance of my article, FRT circulated Q1, 2024 earnings deck, which did not cause any major share price reaction.
Let's now review the details of this earnings release and try to understand whether there are any meaningful data points that could potentially justify a revised rating. Thesis review The quarterly report come in strong with the key metric - FFO per share - increasing 3.1% relative to the level that was.
