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Federal Realty Investment Trust Expects to Grow in 2019 says CEO Don Wood

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Federal Realty Investment Trust finished  2018 particularly strong with reported FFO per share in the fourth quarter of $1.57. According to Don Wood, president and CEO, that number was better than the REIT had expected resulting in a full year 2018 results of $6.23 a share, 6.8% better than last year for the quarter, 5.4% better for the year.

“Just to have the point out right upfront; this is the ninth year in a row that we have reported FFO increases over the prior year, the only shopping centers read to do so, as the fifteenth year of the past sixteenth that we’ve done so” he said on the company’s Q4 earnings call. “We also expect to grow in 2019.”

A lot went right in Q4, Wood explained on the call, that benefited the operating results as well as cash flow in the future. “Everything from record leasing activity in the quarter to stabilized residential occupancy in our big developments, the powerful office preleasing at both Assembly Row and CocoWalk, all that is contributing to a business plan that more and more seems right for today’s demanding and changing consumer.”

In the next few months, he explained, the REIT is hopeful it will get investment committee approval to move forward with the redevelopment of the entire western portion of Graham Park Plaza, its long time owned 19-acre shopping center that sits inside the beltway on Route 50 in Fairfax County, Virginia; that plan includes the addition of about 200 apartments and twice making incorporated into a reinvigorated retail shopping destination. “And we’re getting closer in Darien, Connecticut with negotiation feasibility of a residential over retail mixed used community right at the train station in this New York City suburb. But for a building permit we now have all local and state entitlement to develop 75,000 square feet of new retail space and a 122 rental apartments; diversify and intensify wherever feasible.”

We will report more on that as more information becomes available.