Federal Realty reports record comparable leasing volume, raises 2026 FFO guidance

Federal Realty Investment Trust reported second-quarter 2026 Core FFO of $1.88 per diluted share, up 6.8% from a year earlier, as the REIT logged record comparable leasing volume and raised full-year earnings and FFO guidance. Net income available for common shareholders fell to $83.7 million, or $0.97 per diluted share, from $153.9 million, or $1.78, largely because the quarter included a smaller gain on property sales than the prior-year period and did not repeat a one-time tax credit benefit recognized in the second quarter of 2025. The company signed 124 comparable retail leases covering 819,273 square feet, an all-time quarterly record, with rent spreads of 15% on a cash basis and 28% on a straight-line basis. On a trailing 12-month basis, it signed 453 comparable leases totaling 2,796,064 square feet, also a record, with cash and straight-line rent spreads of 17% and 29%, respectively. Portfolio occupancy ended the quarter at 93.8% and the leased rate at 96.1%, both flat from the prior quarter, while the small-shop leased rate rose to 93.9%. Federal Realty said adjusted comparable property operating income grew 4.2%, while comparable property operating income rose 2.8%. During the quarter it acquired an 88,000-square-foot adjacent retail parcel at Kingstowne Towne Center in Alexandria, Virginia, for $19.7 million and sold two properties for a combined $66.1 million. It also completed delivery of 217 residential units at Blayr in Bala Cynwyd, Pennsylvania. The Board of Trustees increased the quarterly cash dividend 3% to $1.16 per common share, equivalent to an indicated annual rate of $4.64, extending Federal Realty's streak of annual common dividend increases to 59 years. For 2026, the company raised and tightened guidance for net income available to common shareholders to $4.22 to $4.30 per diluted share and for both Nareit FFO and Core FFO to $7.48 to $7.56 per diluted share.