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Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of Federal Realty Investment Trust

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target by $13 to $141, 18.6x our 2026 FFO estimate, a premium to its three-year average forward multiple of 14.7x as re-leasing spreads continue to outperform with a strong 2026 outlook. We maintain our 2026 FFO estimate at $7.58 and increase 2027 by $0.13 to $7.82. FRT continues to see strong re-leasing growth combined with record leasing volumes in Q1. In our view, the portfolio (excluding recently acquired properties) is near peak occupancy, giving management the ability to continue being highly selective for future tenants and maintain its +10% cash releasing spreads through 2027. We note that development costs may increase on FRT's $175M-$225M current pipeline, but believe yields will continue to exceed 8.5%, even in our downside scenario. For FY 26, we now see comparable NOI growing 4.5%-5.5% as FRT continues to actively work and find new acquisition targets.

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