(Reuters) - Federal Realty (NYSE:FRT) Investment Trust fourth-quarter revenue from rental income fell short of market expectations on Monday, impacted by softer leasing demand at its mixed-use properties.
Higher borrowing costs and crimped consumer spending have slowed retailer expansion plans, hurting demand for commercial real estate investment trusts such as FRT. The REIT's portfolio comprises over 100 properties in 12 states, leased out to tenants, including restaurants and offices, and located in densely populated areas. However, a significant portion of these properties are anchored by grocers, as well as retailers such as Marshalls parent TJX Companies (NYSE:TJX). FRT's revenue from rental income for the fourth quarter rose to $291.5 million from $279.8 million a year ago. Analysts, on an average, expected revenue of $292.2 million, as per LSEG data. FRT's portfolio was 92.2% occupied and 94.2% leased as of December 31, 2023. The company's funds from operations, a key REIT metric, came in at $1.64 per share, in line with market expectations. FRT expects 2024 FFO per diluted share of $6.65 to $6.87, largely in line with expectations of $6.77 per share, as per LSEG data.