Piper Sandler on Federal Realty Investment Trust (FRT): 'Underwriting Upside Helping Mitigate Higher Rates'

Piper Sandler analyst Alexander Goldfarb reiterated an Overweight rating and $149.00 price target on Federal Realty Investment Trust (NYSE: FRT).

The analyst commented: "Underwriting Upside Helping Mitigate Higher Rates; We are reiterating our OW on FRT given the conservative underwriting and >2% annual rent bumps that provide upside to earnings, helping soften the blow from higher interest rates. Recently, we hosted management for two days of meetings with institutional investors. While the 10-Year featured prominently in all conversations, there was no push-back on the strength of retail fundamentals, with traffic up YTD and tenant credit still subdued. FRT is down 17% since its 2026 peak on July 28 versus the RMZ down 12% over the same period, which only seems to motivate the team even more to drive earnings growth as they try to regain their premium valuation. Though FRT now sees next year's FFO growth at the lower-end of its 5% - 7.5% laid at May's investor day because of the jump in the 10-Year (was 4.57% versus now 5.26%), its acquisitions continue to exceed underwriting, providing upside."

For an analyst ratings summary and ratings history on Federal Realty Investment Trust click here. For more ratings news on Federal Realty Investment Trust click here.

Shares of Federal Realty Investment Trust closed at $106.20 yesterday.

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