Federal Realty Posts 6.6% FFO Growth and Records 2.5M Sq Ft Leasing

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Federal Realty reported 2025 Nareit FFO per diluted share of $7.22, up 6.6% year-over-year. The REIT achieved record leasing of 2.5 million square feet, raised occupancy to 94.5%, acquired $340 million in assets, and guided 2026 Core FFO to $7.42–$7.52 per share.

1. Financial Results

For full year 2025, net income available to common shareholders was $403.0 million, or $4.68 per diluted share, versus $287.2 million, or $3.42 per share in 2024. Nareit FFO reached $624.3 million, or $7.22 per share, while Core FFO totaled $611.0 million, or $7.06 per share.

2. Operational Highlights

Federal Realty achieved record leasing of 2.5 million square feet, delivered 15% comparable rent spreads on a cash basis and 27% on a straight-line basis, and raised comparable portfolio occupancy to 94.5% at year-end, up 50 basis points year-over-year.

3. Acquisitions and Dispositions

In the fourth quarter, the Trust acquired Village Pointe in Omaha and Annapolis Town Center in Maryland for a combined $340 million. It completed $169 million of dispositions and announced an additional $159 million of asset sales post quarter-end, and launched a $110–$120 million redevelopment at Willow Grove targeting a 7% ROI.

4. Guidance and Liquidity

The REIT ended the quarter with approximately $1.3 billion in total liquidity and introduced 2026 guidance of $3.90–$4.00 earnings per diluted share and Nareit FFO and Core FFO of $7.42–$7.52 per share, implying up to 6.5% FFO growth year-over-year despite near-term refinancing challenges.

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