EarningsQ2 2026 Earnings Report
MX:FRT1 Q2 2026 EPS Results
Actual EPS$17.42
Consensus EPS$12.90
Beat/MissBeat by +$4.53
One Year Ago EPS$31.97
MX:FRT1 Q2 2026 Revenue Results
Actual Revenue$6.03B
Expected Revenue$5.96B
Beat/MissBeat by +$68.02M
YoY Revenue Growth+7.76%
Earnings Announcement Details
QuarterQ2 2026
Date07/31/2026
TimeBefore Open
Conference CallFriday, July 31, 2026
MX:FRT1 Upcoming Earnings
Federal Realty's next earnings date is estimated for October 30, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:FRT1 Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call conveyed a strongly positive operational quarter with record leasing, meaningful rent growth, rising occupancy, robust incremental income (parking and ancillary), disciplined capital recycling and raised full-year guidance. Challenges cited were manageable and largely timing-related: one-time write-offs, modest G&A increases for strategic investments, near-term occupancy churn into 3Q and competitive acquisition markets compressing cap rates. Liquidity, improved leverage metrics, and visibility into signed leases and redevelopment pipelines underpin confidence in growth.Company Guidance
FFO and Earnings Beat
FFO per share of $1.88 for 2Q26, up 7% year-over-year and $0.03 above the midpoint of guidance, driven by higher rental income, recoveries, parking and percentage rent, term fees and capital recycling.
Record Leasing Volume and Rent Growth
Record single-quarter comparable leasing: 124 deals totaling 819,000 sq ft with average first-year cash rent of $33.68 (15% higher than prior year cash rent, 28% higher on a straight-line basis). Trailing 12-month comparable rollover at 17%, the highest in over 10 years.
Strong Occupancy and Small-Shop Performance
Portfolio occupancy at ~96%; small-shop portfolio 93.9% leased and 92.3% occupied with a 100-basis-point jump in small-shop occupied rate during the quarter, and over 100k sq ft of net small-shop occupancy added.
Comparable Growth Metrics Ahead of Expectations
Adjusted (cash basis) comparable growth of 4.2% for the quarter and 4.6% year-to-date; GAAP comparable growth 2.8% for 2Q and 3.7% YTD — both outperforming the company’s May expectations.
Incremental Income and Ancillary Revenue Expansion
Incremental income initiatives on track to be up ~20% year-over-year; parking revenue expected to be up almost $3 million year-over-year driven by higher rates, events and partnerships; fully executed leases expected to contribute ~$31 million in revenue over the next 18 months.
Residential Development Pipeline and Densification
Allocated $400 million for Blair at Ballard (two-thirds leased and ahead of projections); 301 Washington (on time/on budget, delivery 1/2027); Lot 12 Santana Row (on time/on budget, late 2027); Willow Grove 261-unit project underway — total pipeline to add nearly 800 units and ~$27 million of new operating income when stabilized.
Active and Disciplined Capital Recycling
Closed $66 million of retail asset sales in the quarter, $225 million YTD and $540 million combined (2025 + YTD 2026) at a blended initial cash yield of ~5.4%; capital recycling contributed ~$0.05 to the quarter’s FFO outperformance.
Balance Sheet Strength and Liquidity
Liquidity of ~$1.2 billion at quarter end; only $30 million maturing in August (7.5% rate) with no other maturities until mid-2027; second-quarter net debt/EBITDA improved to 5.4x and fixed-charge coverage at 3.9x; free cash flow after dividends and maintenance capex forecast >$100 million for 2026, trending toward $150 million by 2028.
Raised Full-Year Guidance and Dividend Increase
Raised NAREIT/core FFO guidance to $7.48–$7.56 (midpoint $7.52 = ~6.5% growth vs. 2025); cash comparable growth expected ~4.0–4.5% (≈75 bps above GAAP); occupied rate expected to rise to mid- to upper-94% by year-end; dividend increased for 59th consecutive year to $1.16/quarter ($4.64 annual).
Portfolio-Level Retail Redevelopment Wins
Large anchor deals announced that are transformational: Grossmont Shopping Center (replacing Macy’s with Bass Pro Shops, 161k sq ft, plus new 53k sq ft AMC; $56 million redevelopment projected to deliver incremental ~10% cash-on-cash) and Barracks Road (79k sq ft Harris Teeter expansion), reinforcing market-dominant positioning.
MX:FRT1 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed