Federal Realty Creates Upscale Mixed Use Centers

That real estate sector includes includes nine industries all related to real property ownership. The industries are: general real estate; Real estate services; and seven varieties of real estate investment trusts: diversified, healthcare facilities, hotel & motel, industrial, office, residential, and retail.

Today I'm reviewing a mid-cap real estate investment trust - retail, named Federal Realty Investment Trust. Its trading ticker symbol is FRT . 

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, and redevelopment of retail and mixed-use properties located primarily in densely populated and affluent communities.

Founded in 1962, Federal Realty's expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. 

Federal Realty's 105 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,600 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 51 consecutive years, the longest record in the REIT industry.

 Federal Realty is headquartered in Rockville, MD.

I use three key data points to gauge the value of any dividend equity or fund like Federal Realty Investment Trust: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys  will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

FRT Price

FRT's price per share was $124.22 at yesterday's market close. A year ago its price was $121.70 for a price rise of $2.52 per share for the year, that's a 2% gain. 

Assuming FRT's price will trade in the range of $110 to $150 next year, FRT's recent $124.22 price could improve by $10.00 to $134.22 by early-November, 2019. 

FRT Dividends

FRT's most recent quarterly dividend was $1.02 declared August 2nd and paid October 15th. 

At this most recent $1.02 quarterly rate, FRT's annual dividend equals $4.08 yielding 3.28% at yesterday's closing $124.22 price.

Gains For FRT?

Adding the $4.08 estimated annual dividend to my estimated $10.00 annual price upside for Federal Realty Investment Trust makes a $14.08 potential gross annual per share gain, which will be reduced by any costs to trade the shares.  

 A little under $1,000.00 invested today at the $124.22 recent price buys 8 Federal Realty Investment Trust shares. 

A $10 broker fee paid half at purchase and half at sale costs $1.25 per share

Subtracting that $1.25 brokerage cost from the estimated $14.08 gross annual gain leaves a net gain of $12.83 X 8 shares 

= $102.64

for a 10.33% net gain on a $993.76 investment.

Therefore, Federal Realty Investment Trust whose trading ticker symbol is FRT, now shows a possible 10.33% net gain including a 3.28% dividend yield. 

Eighteen brokers cover this stock:

Eight say "buy" FRT

Four expect FRT to "outperform" peers

Six  say "hold" FRT

The consensus number from those votes is 1.9 or "outperform."

As for a price target from those eighteen Wizards of Wall Street, their median price upside is $4.20 higher than my $134.22 upside estimate.

Therefore, you could look at these speculative numbers this way, Federal Realty Investment Trust, whose trading ticker symbol is FRT, has made money, is making money, and could net a 10 % to 15% net annual gain including a 3.28% dividend yield. It could be more, it could be less. 

The above speculation is based on past year performance. The actual results remain to be seen to determine if Federal Realty Investment Trust is worth your time and money.