From Asset Sales to Acquisitions: How Is Federal Realty Repositioning?

Federal Realty’s FRT $170 million in recent property sales supports its capital recycling strategy, helping refine the portfolio and generate funds for growth. The sale of two non-core assets allows the REIT to reinvest in higher-return opportunities and expand selectively in attractive markets.Specifically, Federal Realty sold Pallas at Pike & Rose in North Bethesda, MD, along with Bristol Plaza in Bristol, CT, generating about $170 million in total proceeds. These sales fit into a broader plan to rotate capital out of stabilized properties and into assets with stronger growth prospects. The deals also build on earlier 2025 dispositions, such as Levare at Santana Row and a Hollywood Boulevard retail portfolio in Los Angeles, lifting total disposition proceeds to $316 million for the year at a blended yield of about 5.7%.Management has emphasized that unlocking value from stabilized or peripheral properties allows Federal Realty to self-fund growth initiatives without overleveraging. This is a key benefit for sustaining dividend growth and balancing its capital structure.  Looking beyond disposals, Federal Realty has been active on the acquisition front. In early December, the company announced the acquisition of Village Pointe, a leading open-air lifestyle center in Omaha, NE, underscoring its strategy to selectively add retail assets with strong demand fundamentals. Earlier in October, Federal Realty also closed on Annapolis Town Center in Anne Arundel County, MD, for about $187 million, bolstering its portfolio of dominant, open-air retail destinations. Operational performance through the third quarter of 2025 reflected solid fundamentals, with stable occupancy, record leasing velocity and improved funds from operations, all signaling resilience in its core retail and mixed-use footprint. With capital recycling well underway and disciplined investments in quality retail environments, Federal Realty appears focused on driving long-term sustainable growth and returns for shareholders.Shares of this Zacks Rank #3 (Hold) company have rallied 6.4% in the past six months against the industry’s decline of 1.9%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the retail REIT sector are Simon Property Group, Inc. SPG and Phillips Edison & Company, Inc. PECO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Simon Property Group’s 2025 FFO per share has been raised six cents over the past month to $12.64.The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.58 over the past two months.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis Report Phillips Edison & Company, Inc. (PECO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks