Federal Realty Investment Trust beats quarterly revenue estimates
Oct 30 (Reuters) -Federal Realty Investment Trust FRT.N beat third-quarter revenue estimates on Wednesday, driven by resilient leasing demand for small shops and higher rentals for its commercial real estate properties.
Real Estate Investment Trusts (REITs) have been seeing an increase in demand for their rental spaces from tenants, including retailers and apparel makers, who are benefiting from persistent consumer spending on trendy items.
Federal Realty Investment Trust, which leases properties to companies such as Dick's Sporting Goods DKS.N and Walmart WMT.N, has seen stable footfall, as customers have been actively shopping during the back-to-school season.
The company posted revenue of $303.6 million in the quarter ended Sept. 30, compared with analysts' average estimate of $300.6 million, according to data compiled by LSEG.
Visits to fitness chains jumped 6.6% year-over-year from July to September, while visits to superstoresrose 2% during the same period, according to Placer.ai data.
However, its funds from operations (FFO), a key REIT metric, came in at $1.71 per share, missing analysts' estimates of $1.72 per share.
Federal Realty expects annual FFO per share to be in the range of $6.76 to $6.86, compared with its prior FFO forecast of $6.70 to $6.88 per share.
FRT's portfolio was 94% occupied and 95.9% leased, as of Sept. 30.
The companyowns and operates a portfolio of over 100 diverse properties, including shopping centers leased to retailers such as Target TGT.N, Best Buy BBY.N and Ulta Beauty ULTA.O, as well asdining, entertainment and office spaces located in densely populated areas.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Mohammed Safi Shamsi
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