Highlights for the full year, fourth quarter and subsequent to quarter-end include:
Generated Nareit defined funds from operations available to common shareholders (Nareit FFO) per diluted share of $7.22 for the year, compared to $6.77 in 2024, an increase of 6.6%. For the fourth quarter, generated Nareit FFO per diluted share of $1.84, compared to $1.73 for the fourth quarter of 2024, an increase of 6.4%.
Introduced Core FFO, a new measure intended to provide enhanced comparability across periods for Federal's underlying operating results; Core FFO was $7.06 per diluted share in 2025, up 4.3% from $6.77 in 2024. See attachment for a full definition of Core FFO.
Record-breaking leasing in 2025:
Achieved an all-time company record total leasing volume of 2.5 million square feet of retail space.
Strongest comparable rent spreads in over a decade of 15% on a cash basis and 27% on a straight-line basis.
Achieved comparable portfolio occupancy of 94.5% and a leased rate of 96.6% at quarter end, with:
Occupancy up 40 basis points and leased rate up 90 basis points sequentially.
Occupancy up 50 basis points and leased rate up 40 basis points year-over-year.
Small shop leased rate of 93.8%, up 50 basis points sequentially.
Generated comparable property operating income (POI) growth of 3.8% for the year, and 3.1% for the fourth quarter, excluding lease termination fees and prior period rents collected.
Acquired two properties in the fourth quarter totaling $340 million, adding a new market to Federal Realty's footprint in Omaha, NE with Village Pointe, and growing in its existing Maryland portfolio with Annapolis Town Center in Annapolis, MD.
Completed $169 million of peripheral residential and mature retail dispositions in the fourth quarter, with an additional $159 million announced subsequent to quarter end.
Announced a new redevelopment project at Willow Grove in Willow Grove, PA, at a projected cost of $110 - $120 million and projected return on investment (ROI) of 7%.
Ended the quarter with approximately $1.3 billion in total liquidity.
Introduced 2026 earnings per diluted share guidance of $3.90 to $4.00 and 2026 Nareit FFO and Core FFO per diluted share guidance of $7.42 to $7.52, representing 5.1% and 6.5% growth at the low and high end of the range for Core FFO year-over-year.
"Federal Realty delivered strong 2025 results, driven by exceptional leasing performance and strong rent spreads that produced solid year-over-year earnings growth. We also made meaningful strategic progress on our capital recycling and reinvestment initiative: entering new markets, acquiring dominant properties that enhance the quality of our portfolio, and advancing our residential development pipeline in the right retail locations," said Donald C. Wood, Chief Executive Officer of Federal Realty. "Even as we navigate the near-term refinancing environment, our momentum underpins expected 6% Core FFO growth in 2026."
Financial Results
Net Income
For the full year 2025, net income available for common shareholders was $403.0 million and earnings per diluted share was $4.68, versus $287.2 million and $3.42, respectively, for the full year 2024.
For the fourth quarter 2025, net income available for common shareholders was $127.7 million and earnings per diluted share was $1.48, versus $63.5 million and $0.75, respectively, for the fourth quarter of 2024.
FFO
For the full year 2025, Nareit FFO was $624.3 million, or $7.22 per diluted share. This compares to Nareit FFO of $570.2 million, or $6.77 per diluted share for the full year 2024. Core FFO in 2025 was $611.0 million, or $7.06 per diluted share, versus $570.7 million, or $6.77 per diluted share for the full year 2024.
For the fourth quarter 2025, Nareit FFO was $159.2 million, or $1.84 per diluted share, compared to $147.6 million, or $1.73 per diluted share for the fourth quarter of 2024. Core FFO in the fourth quarter 2025 was $159.1 million, or $1.84 per diluted share, versus $150.5 million, or $1.76 per diluted share.
Nareit FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. Core FFO adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company's ongoing operating and financial performance. See attachments for a reconciliation of Nareit FFO and Core FFO and definition of Core FFO.
Operational Update
Occupancy
The following operational metrics for the commercial portfolio are as of December 31, 2025:
The comparable portfolio occupancy was 94.5%, up 40 basis points sequentially and up 50 basis points year-over-year.
Comparable portfolio leased rate was 96.6%, up 90 basis points sequentially and up 40 basis points year-over-year.
Small shop leased rate was 93.8%, up 50 basis points sequentially and up 20 basis points year-over-year.
Anchor leased rate was 97.3%, up 80 basis points sequentially and down 20 basis points year-over-year.
The residential leased rate was 94.8% as of December 31, 2025.
Leasing Activity
For the full year 2025, Federal Realty signed 454 leases for 2,471,099 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 434 leases for 2,340,282 square feet at an average rent of $37.98 per square foot compared to the average contractual rent of $33.12 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 15%, 27% on a straight-line basis. Comparable leases represented 96% of total comparable and non-comparable leases signed during 2025.
During the fourth quarter 2025, Federal Realty signed 109 leases for 612,978 square feet of retail space. On a comparable space basis (i.e., spaces for which there was a former tenant), Federal Realty signed 105 leases for 600,684 square feet at an average rent of $39.09 per square foot compared to the average contractual rent of $34.84 per square foot for the last year of the prior leases, representing a cash basis rollover growth on those comparable spaces of 12%, 24% on a straight-line basis. Comparable leases represented 96% of total comparable and non-comparable leases signed during the fourth quarter 2025.
Redevelopment
Announced a new redevelopment project at Willow Grove in Willow Grove, PA. This project will bring over 260 residential units, 52,000 square feet of retail space, and a 438-stall parking garage to the shopping center. The projected cost is $110 - $120 million and a 7% projected ROI1.
Transaction Activity
February 5, 2026, sold Misora, a peripherally located residential component of Santana Row in San Jose, CA, for $148.5 million; additionally, the Company sold Courthouse Center, a 33,000 square-foot neighborhood shopping center in Rockville, MD, for $10.0 million.
December 17, 2025, sold Pallas, a peripherally located residential component of Pike & Rose in North Bethesda, MD, for $125.0 million.
December 16, 2025, sold Bristol Plaza, a 264,000 square-foot grocery-anchored shopping center in Bristol, CT, for $44.4 million.
November 24, 2025, acquired Village Pointe, a leading open-air lifestyle center in Omaha, NE, totaling 452,000 square feet, for $153.3 million.
October 10, 2025, acquired Annapolis Town Center, a premier open-air retail center in Annapolis, MD, totaling 479,000 square feet, for $187.0 million.
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on April 15, 2026 to common shareholders of record as of April 1, 2026.
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on April 15, 2026 to shareholders of record as of April 1, 2026.
2026 Initial Guidance
The company's initial 2026 guidance is based on the following assumptions:
2026 Guidance2
Net income available for common shareholders per diluted share
$3.90 - $4.00
Nareit FFO per diluted share
$7.42, $7.52
Core FFO per diluted share
$7.42, $7.52
Comparable properties growth
3.0% - 3.5%
Lease termination fees
$7 - $8 million
Incremental redevelopment / expansion POI3
$13 - $15 million
General and administrative expenses
$47 - $49 million
Development / redevelopment capital
$175 - $225 million
Capitalized interest
$11 - $12 million
Notes:
1 See page 17 of our Form 8-K filed on February 12, 2026.
2 Does not include the impact of acquisitions or dispositions other than those which have closed as of February 11, 2026. All amounts are estimates.
3 Includes the expected additional POI to be recognized in 2026, which is incremental to the amount recognized in 2025 from our larger redevelopments at Santana West, Pike & Rose - 915 Meeting Street, Bala Cynwyd on City Avenue and Huntington Shopping Center as more fully discussed on page 17 of our Form 8-K filed on February 12, 2026.
The following table provides a reconciliation of the range of estimated earnings per diluted share to estimated Nareit FFO and Core FFO per diluted share for the full year 2026:
Full Year 2026 Guidance Range
Low
High
Estimated net income available for common shareholders per diluted share
$ 3.90
$ 4.00
Adjustments:
Estimated gain on sale of real estate, net
(1.06)
(1.06)
Estimated depreciation and amortization
4.58
4.58
Estimated Nareit FFO and Core FFO per diluted share
$ 7.42
$ 7.52
Below is our Nareit FFO and Core FFO for 2024, 2025, and estimated 2026 range, per diluted share:
2024 Actual
2025 Actual
2026 Estimate
Nareit FFO per diluted share
$6.77
$7.22
$7.42 - $7.52
% growth over the prior year
6.6 %
2.8% - 4.2%
Adjustments:
New market tax credit transaction income, net
-
(0.15)
-
Executive transition costs
0.04
-
-
Collection of prior period rents deferred during COVID
(0.04)
(0.00)
-
Core FFO
$6.77
$7.06
$7.42 - $7.52
% growth over the prior year
4.3 %
5.1% - 6.5%
Conference Call Information
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its fourth quarter 2025 earnings conference call, which is scheduled for Thursday, February 12, 2026 at 5:00 PM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through February 26, 2026 by dialing 844-512-2921 or 412-317-6671; Passcode: 10205568.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. As of December 31, 2025, Federal Realty's 104 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Safe Harbor Language
Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 12, 2026 and include the following:
risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;
risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;
risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets;
risks of financing ...
