Benchmark Upgrades Federal Realty Investment Trust (FRT) to Buy; Raises FY09-10 Estimates

November 5, 2009 9:37 AM EST

Benchmark upgrades Federal Realty Investment Trust (NYSE: FRT) to Buy. Price target $68.

Benchmark analyst says, "We are raising FRT to Buy on an impressive 3Q09 showing and an increase in our NAV estimate. FRT reported 3Q09 FFOPS of $0.92, equal to our estimate and $0.02 above the Street. The main variances to our model included higher property level revenues and lower expenses offset by higher G&A and interest. Operating metrics beat our expectations on every score, and our new NAV rose ~$2 to $58.77 (see Table 1). Our P/T assumes the stock trades at a 15% NAV premium vs. the current peer average of 1%. Given FRT’s league-leading demographics, lack of ground-up development to be concerned about, and 33% NOI concentration in the healthy DC metro, we think the premium valuation is warranted...We are raising our ’09 and ’10 FFOPS estimates. FY’09 is up $0.03 to $3.78, with ’10 increasing by $0.23 to $3.83."

To see more analyst ratings on FRT Click Here.

Federal Realty Investment Trust operates as a real estate investment trust, which engages in the ownership, management, development, and redevelopment of retail and mixed-use properties.

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