FRT - Federal Realty Investment: The Opportunity Is Still There After Q1 2024
2024-06-15 12:18:07 ET
Summary
- April this year I issued a bullish article on FRT, where since then the stock price has remained somewhat flat despite the strong Q1 report.
- The Q1, 2024 earnings report reveal several interesting dynamics that together clearly enhance FRT's growth prospects even further.
- In this article I elaborate on the key aspects of Q1 report and on why I think that FRT's investment case has strengthened.
Early April this year I wrote an article on Federal Realty Investment Trust (NYSE: FRT ) - Federal Realty Investment: Attractive Moment To Enter This Dividend King . As the name implies, my recommendation was to enter FRT. While more details can be found in the article, the key reasons for this were the following:
- Depressed multiples relative to the historical level.
- Narrowed premium relative to closest peers such as Realty Income Corporation (NYSE: O ) and Agree Realty Corporation (NYSE: ADC ).
- One of the lowest FFO payout levels in the industry, which should enable enhanced growth prospects (price and income wise).
- Relatively attractive yield, which is not that common given the investment grade balance sheet, conservative FFO payout level and inherently defensive business.