S&P Equity Research Downgrades Federal Realty Investment Trust (FRT) to Hold

May 8, 2008 2:21 PM EDT

S&P Equity Research downgrades Federal Realty Investment Trust (NYSE: FRT) from Buy to Hold.

S&P analyst, R. McMillan, says, "Q1 per-share funds from operations of $0.94 vs. $0.88 matches our estimate. Results benefited from a 10% jump in rental income despite higher legal and bad debt expenses. Occupancy dropped to 96.1% at Q1-end from 96.6% last year, rent increases on lease rollerovers jumped 23%. We see modest growth in consumer retail spending and continued retailer demand for new and existing space as well as FRT's mixed use projects helping results. We are keeping our '08 and '09 FFO estimate at $3.93 and $4.20, while raising our target price to $89 from $81 based on price/FFO and peer analysis."

Federal Realty Investment Trust (Trust) is an equity real estate investment trust (REIT) specializing in the ownership, management, development and redevelopment of retail and mixed-use properties located primarily in densely populated and communities in metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California.[SM]

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