Is Federal Realty Stock Underperforming the Nasdaq?

With a market cap of $8.8 billion, Federal Realty Investment Trust (FRT) is a leading owner, operator, and redeveloper of high-quality retail-based and mixed-use properties primarily located in major coastal markets with strong economic and demographic fundamentals. The company focuses on creating strong community-driven destinations where retail demand exceeds supply.

Companies valued less than $10 billion are generally described as “mid-cap” stocks, and Federal Realty fits right into that category. Its diversified portfolio includes 103 properties with millions of square feet of commercial space and thousands of residential units, supporting a wide range of tenants.

Shares of the REIT have declined 12% from its 52-week high of $115.59. FRT stock has risen 2.4% over the past three months, slightly outperforming the broader Nasdaq Composite's ($NASX) 1.9% gain over the same time frame.

Longer term, FRT stock is down 9.2% on a YTD basis, lagging behind NASX's 17.5% increase. Also, shares of Federal Realty have decreased 11.1% over the past 52 weeks, compared to NASX's 12.9% return over the same time frame.

Despite recent fluctuations, the stock has been trading below its 50-day moving average since late October.

Shares of Federal Realty rose 1.4% on Oct. 31 after the company reported better-than-expected Q3 2025 FFO of $1.77 per share and revenue of $322.3 million. The company also posted strong operating performance, including record leasing volume of 727,029 square feet with rent growth of 28% on a cash basis and comparable property operating income growth of 4.4%. Additionally, Federal Realty raised its full-year 2025 FFO guidance to $7.05 per share - $7.11 per share.

In comparison, rival Simon Property Group, Inc. (SPG) has outpaced FRT stock. SPG stock has returned nearly 7% YTD and 7.4% over the past 52 weeks.

Despite FRT’s weak performance over the past year, analysts remain moderately optimistic about its prospects. Among the 19 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $109.47 is a premium of 7.6% to current levels.