Q2 2024 Federal Realty Investment Trust Earnings Call Transcript
Key Points
- Federal Realty Investment Trust (FRT) reported an all-time record quarterly FFO per share of $1.69, exceeding internal expectations and analyst consensus.
- The company achieved an all-time record second quarter comparable leasing volume of 594,000 square feet.
- Strong occupancy gains were reported, with leased and occupied rates at 95.3% and 93.1%, respectively.
- Quarterly residential operating income on stabilized REDI properties increased by 6.7% year-over-year, and 9.5% when including new properties.
- Federal Realty Investment Trust (FRT) completed significant transactions, including a $215 million acquisition in Virginia Gateway and a $60 million acquisition in Pinole Vista Crossing.
- Year-over-year growth in FFO per share was muted due to the impact of Bed Bath & Beyond store closures.
- The company faces challenges in maintaining its high occupancy rates, with expectations of further increases being modest.
- There is ongoing pressure on construction costs, which could impact future redevelopment projects.
- The company has a significant amount of capital tied up in redevelopment and expansion projects, with $205 million remaining to be spent.
- Federal Realty Investment Trust (FRT) has maintained a bad debt reserve of 70 to 90 basis points, indicating potential concerns about tenant creditworthiness.
Good day and welcome to the Federal Realty Investment Trust second quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Brenda Pomar, Senior Director of Corporate Communications. Please go ahead.
Good evening. Thank you for joining us today for Federal Realty's second quarter 2024 earnings conference call. Joining me on the call are Don Wood, Federal's Chief Executive Officer; Jeff Berkes, President and Chief Operating Officer; Dan G, Executive Vice President, Chief Financial Officer and Treasurer; Jan Sweetnam, Executive Vice President, Chief Investment Officer, and Wendy Seher, Executive Vice President, Eastern Region President, as well as other members of our executive team that are available to take your questions at the conclusion of our prepared remarks.
A reminder that certain matters discussed on this call may be deemed to be forward-looking statements within
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