JPMorgan Lowers Price Target on Federal Realty Investment Trust to $103, Maintains Neutral Rating
June 19, 2023
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FEDERAL ($NYSE:FRT): FRT is an equity Real Estate Investment Trust (REIT) that specializes in the ownership, management, development, and redevelopment of retail and mixed-use properties. The company has a portfolio of properties located in major metropolitan markets across the United States, including New York, Los Angeles, San Francisco, Washington D.C., Boston, and Philadelphia. JPMorgan’s new price target suggests that FRT shares are trading with limited upside potential, though the company has seen strong performance this year as shoppers have shifted to online shopping during the pandemic.
Despite the stock’s underperformance relative to its peers, JPMorgan remains optimistic about FRT’s prospects as they believe the company is uniquely situated with its quality assets and ability to adjust to changing consumer behavior. They also expect FRT’s portfolio occupancy rate and tenant sales to remain strong.
Market Price
The stock opened at $87.4 and closed at $87.3, up by 0.3% from its previous closing price of 87.1. Despite the slight increase in its stock price, JPMorgan still believes that FEDERAL REALTY INVESTMENT TRUST will not reach its previous highs and is currently trading below its fair value. The firm believes that the company’s stock is unlikely to make any significant gains in the near future given the current market conditions. Despite this, the firm also believes that FEDERAL REALTY INVESTMENT TRUST still offers attractive long-term growth potential and is well positioned to benefit from any potential economic recovery. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FRT. More…
| Total Revenues | Net Income | Net Margin |
| 1.09k | 379.48 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FRT. More…
| Operations | Investing | Financing |
| 556.71 | -798.62 | 171 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.27k | 5.09k | 33.93 |
Key Ratios Snapshot
Some of the financial key ratios for FRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 34.0% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
At GoodWhale, we appreciate investors who take the time to carefully analyze companies before investing. That’s why we’ve done the hard work of evaluating the fundamentals of FEDERAL REALTY INVESTMENT TRUST. Our Risk Rating has determined that FEDERAL REALTY INVESTMENT TRUST is a low risk investment in terms of financial and business aspects. However, we have detected 1 risk warnings in FEDERAL REALTY INVESTMENT TRUST’s balance sheet. To see what this warning is, be sure to register with us. With our help, you can make an informed decision about investing in FEDERAL REALTY INVESTMENT TRUST. More…
Peers
As of December 31, 2019, the company owned 86 shopping centers and street retail properties comprising 22.5 million square feet. Its competitors include Regency Centers Corp, Charter Hall Retail REIT, and BHG Retail REIT.
– Regency Centers Corp ($NASDAQ:REG)
Regency Centers is a real estate investment trust that owns, operates, and develops shopping centers. The company’s portfolio includes properties in the United States, Puerto Rico, and the Virgin Islands. As of December 31, 2020, Regency Centers owned 446 retail properties with a total of 106.9 million square feet of space. The company’s tenants include grocery stores, restaurants, banks, and other service businesses.
– Charter Hall Retail REIT ($ASX:CQR)
Charter Hall Retail REIT is an Australian real estate investment trust that owns and operates a portfolio of shopping centers across Australia. The company has a market cap of 2.3 billion as of 2022. The company’s portfolio includes over 50 shopping centers, with a total value of over A$6 billion. The company’s properties are located in major metropolitan areas across Australia, including Sydney, Melbourne, Brisbane, Perth, and Adelaide.
– BHG Retail REIT ($SGX:BMGU)
BHG Retail REIT has a market cap of 274.27M as of 2022. The company focuses on owning and operating retail properties in the United States. As of December 31, 2020, the company owned and operated 89 retail properties, which consisted of 78 neighborhood and community shopping centers, six freestanding retail buildings, and one retail condominium.
Summary
Analysts at JPMorgan have found that FRT may be undervalued given the current market conditions. They believe the stock has potential for long-term growth and are keeping a neutral stance in order to allow potential investors to assess the company’s prospects. FRT has a diversified portfolio of properties across the U.S., primarily focused on shopping centers and mixed-use properties, which are expected to benefit from an increased demand for retail and commercial real estate. The company’s development and redevelopment activities are likely to drive further growth in the near future.
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