Federal Realty FFO Rises – Analyst Blog

Federal Realty Investment Trust (FRT), a leading real estate investment trust (REIT), reported first quarter 2010 FFO (funds from operations) of $57.8 million or $0.94 per share, compared to $37.8 million or $0.64 per share in the year-earlier quarter.

 

Total revenue during the quarter increased to $138.5 million compared to $131.1 million in the year-ago quarter. Despite challenging market conditions, Federal Realty executed healthy leasing activities during the quarter. The company signed 72 leases spanning over 318,000 square feet.

 

On a same-store basis, the company leased 308,000 square feet at an average cash-basis contractual rent increase of 16% per square foot. Same-store rents (GAAP) increased 27% on an average during the quarter. Overall, same-store net operating income, including redevelopments and expansions, increased 5.7% year-over-year.

 

The average contractual rent on the same-store portfolio in the first year of the new leases is $29.19 per square foot, compared to the average contractual rent of $25.11 for the last year. At quarter end, Federal Realty’s average contractual, cash basis minimum rent for the entire portfolio was $22.38 per square foot. The overall portfolio was 94.1% leased at the end of the quarter, compared to 94.2% in the prior-year quarter, while the same-store portfolio was 94.6% leased versus 94.5% in the year-ago quarter.

 

Federal Realty declared an unchanged quarterly dividend of $0.66 per share or $2.64 on an annualized basis, payable in cash on July 15, 2010 to common shareholders of record as on June 24, 2010. At quarter end, the company had cash and cash equivalents of $22.6 million. With gradual stabilization in the markets, Federal Realty raised its FFO guidance for 2010 from the earlier range of $3.80 – $3.88 per share to $3.82 – $3.89.