Federal Realty reported Q1 FFO of $1.88 per share, surpassing consensus by $0.06 and increasing from $1.70 a year earlier. Record first-quarter leasing volume, the third-highest in company history, was supported by 13% cash rollover and strong demand for high-productivity retail space.

Management sold mature residential assets at sub-5% cap rates to fund acquisitions like Congressional North at a 7% stabilized yield. The office portfolio maintained 99% occupancy at mixed-use sites such as Santana Row, while adjacent residential developments are projected to add $27 million in operating income upon stabilization.

Full-year FFO guidance was lifted to $7.46–$7.55 per share, underpinned by projected POI growth of 3.125%–3.625% and occupancy climbing from mid-93% to mid-94% by year-end. The outlook anticipates significant income contributions in 2027–28 from anchor box repositioning and accounts for a 175 basis point refinancing headwind.