Federal Realty Investment Trust on Friday raised its annual core profit forecast after posting better-than-expected second-quarter results on strong leasing demand and rent growth across its shopping-center portfolio.The Maryland-based real estate investment trust, which owns shopping centers and mixed-use properties leased to tenants including Trader Joe's, Whole Foods and Best Buy, has benefited from demand for space in densely populated, high-income metropolitan markets.* The company expects annual core funds from operations, a key performance measure for REITs, to be between $7.48 and $7.56 per share, compared with its prior forecast of $7.46 to $7.55 per share.* Core funds from operations rose 6.8% to $1.88 per diluted share in the quarter ended June 30 from $1.76 a year earlier.* Federal Realty's quarterly revenue rose to $335.7 million, from $311.5 million a year ago.* Revenue from rental income rose 7.7% to $325.9 million during the quarter.* Portfolio occupancy, or percentage of rentable space occupied by tenants, was 93.8% as of June 30, up 20 basis points from a year earlier, while its leased rate increased 70 basis points to 96.1%
Federal Realty raises annual core profit forecast on strong leasing demand
Federal Realty Investment Trust has upped its annual core profit outlook following impressive second-quarter results that exceeded expectations. The surge in leasing demand and significant rent increases drove these favorable financial results. Additionally, the trust's core funds from operations saw a notable rise, and an increase in portfolio occupancy underscored the continued interest from tenants.
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