Yahoo Finance Federal Realty Investment beats Q1 revenue estimates, raises FFO forecast
May 2 (Reuters) - Federal Realty Investment Trust beat market expectations for first-quarter revenue on Thursday, helped by strong leasing demand for its commercial rental properties.
Despite higher borrowing rates and a tight rental market, demand for rental spaces held benefiting Real Estate Investment Trust's (REIT) like Federal Realty.
Federal Realty also raised the lower end of its forecast for funds from operations (FFO). It now expects annual FFO per share to be in the range of $6.67 to $6.87, compared to the prior forecast range of $6.65 to $6.87 per share.
The REIT's portfolio was 92% occupied and 94.3% leased as of March 31, 2024.
Grocery-anchored shopping centers, such as Federal Realty and peer Kimco, have seen steady footfall as consumers shopped for essentials even in the face of sticky inflation.
Data from Placer.ai showed that footfall at open-air shopping centers rose to 1.6% in March, compared with a decline of 3.9% last year.
The company posted revenue of $291.3 million in the quarter ended March 31, compared with analysts' average estimate of $290.2 million, according to LSEG data.
In the first quarter, it's FFO came in at $1.64 per share, in line with analysts' estimates. (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
