Federal Realty Investment Trust (FRT) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Federal Realty Investment Trust

Updated on October 31, 2026 · accounts published on October 30, 2026

A growing real estate trust with a well-covered, rising dividend

Federal Realty Investment Trust trades at 12.1 times fiscal 2025 FFO, and that FFO covers its 4.1 % dividend 2.0 times over.

• Is Federal Realty Investment Trust expensive or cheap? At 12.1 times fiscal 2025 FFO, Federal Realty Investment Trust sits under the 15× level considered acceptable for a REIT.
• How is the business doing? Revenue grew 6.3 % over the last 12 months, but the 35 % operating margin trails the 41 % average of fiscal 2014-2025.
• How strong is the balance sheet? Debt equals 55 % of assets in fiscal 2025, inside the 60 % REIT limit but close to it; net debt is 5.1× EBITDA.
• Does FFO cover the dividend, and at what multiple does the stock trade? In fiscal 2025, FFO covered the dividend 2.0 times, well above the 1.1× seen as healthy, after 11 straight annual raises.
• What to expect from the next earnings? Analysts expect EPS of $0.74 on February 11, 2027; the 2026 EPS consensus slipped 0.9 % in 30 days to $4.22.

Is Federal Realty Investment Trust expensive or cheap?

Federal Realty Investment Trust trades at 12.1 times its fiscal 2025 FFO of $9.07 per share, well below the 15× threshold used for REITs and far from the 20× borderline. Price to book is 2.9× over the last 12 months, a premium that cash generation helps justify: the free cash flow yield is 6.9 % and EV/EBITDA is 13.8× over the same period. The stock is up 20 % over the last 12 months yet sits 13 % below its 52-week high of $127.13. Its P/E has ranged from 13.9 to 47.3 over the decade, a sign of how depreciation distorts earnings in real estate.

How is the business doing?

Revenue rose 6.3 % year on year over the last 12 months, steady growth for a property owner. Profitability tells a softer story: the operating margin is 35 % over the last 12 months, down from 36 % in fiscal 2025 and well below the 41 % average of the twelve fiscal years from 2014 to 2025. The business still converts a large share of revenue into operating profit, but it is doing so less efficiently than in its own past. Whether margins stabilise around current levels or drift back toward the decade average is the trend to follow.

How strong is the balance sheet?

Leverage is acceptable but leaves little room. In fiscal 2025, debt represented 55 % of assets, under the 60 % that is considered healthy for a REIT yet near the edge. Net debt stood at 5.1 times EBITDA, within the 6× limit and just above the 5× mark that would rate as excellent. Debt to equity is 1.53 over the last 12 months. None of these figures signals stress, but they suggest further growth funded with borrowing would push the trust toward the upper end of what the sector tolerates.

Does FFO cover the dividend, and at what multiple does the stock trade?

In a REIT, EPS and the P/E mislead because property depreciation drags accounting profit down without draining cash, so FFO is the better yardstick. On that basis, Federal Realty Investment Trust looks solid: fiscal 2025 FFO covered the dividend 2.0 times, against a healthy threshold of 1.1×, and the payout absorbed 62 % of operating cash flow, below the 80 % ceiling. That cushion supports a dividend yield of 4.1 % over the last 12 months and a record of 11 consecutive fiscal years of higher dividends per share through 2025. At 12.1 times FFO, the stock trades below the 15× REIT benchmark.

What to expect from the next earnings?

On October 30, 2026, Federal Realty Investment Trust reported EPS of $0.74 against $0.71 expected, a 3.9 % beat, and it has topped EPS estimates in 6 of the last 8 quarters. For the quarter due on February 11, 2027, analysts expect EPS of $0.74, flat with the latest print. Estimates are drifting slightly lower: the 2026 EPS consensus fell from $4.26 to $4.22 in the last 30 days, while revenue estimates barely moved. Of the 33 analysts covering the trust, 17 rate it a buy, 15 a hold and 1 a sell.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.