Shares Federal Real Estate Investment Trust(NYSE: FRT) Over the past year, it has fallen by more than 10%. The silver lining of its sell-off is its dividend yield rising, now exceeding 4.5%. Given its elite record of paying dividends, Real Estate Investment Trust (REIT) looks like it is great Buy passive income now.
Federal Realty Investment Trust has increased its quarterly dividend for 57 consecutive years. That’s the longest record Real Estate Investment Trust department. It qualifies to use federal real estate as an elite Dividend Kinga company with annual dividends of 50 years or more increased.
Image source: Getty Images.
What makes this streak even more impressive is that federal real estate companies invest in retail properties. Retail is often very cyclical and faces huge headwinds due to the continued adoption of e-commerce. These factors have forced most other retail REITs to cut their dividends.
There are two factors that allow federal real estate to avoid this fate. One big thing is the quality of its retail portfolio. Federal Real Estate has first-time suburban locations in the country’s top portal markets, such as New York, Miami, Boston and Los Angeles. It focuses on areas with high-income populations. Even during the recession, this drives resilient demand and growth. REIT has only 103 attributes. This is a much smaller portfolio compared to other retail stores Kimco Realtyhas 567 shopping malls nationwide. Federal real estate concerns about the quality of quantity real Paid dividends for investors.
Federal real estate companies also have very conservative financial situations. It expects its dividend payment ratio to be about 60% of the funds in its operations (FFO)This year. This provides a considerable cushion for the real estate investment trust while allowing it to retain a lot of cash to fund new investments. Federal Real Estate also has a strong investment-grade balance sheet. The company’s financial strength gives it a lot of flexibility to keep the weather down.
Unlike some REITs, federal real estate has not established a real estate empire. Its focus is on holding the highest quality portfolio. Therefore, the core aspect of its growth strategy is Capital recovery. The company will typically sell mature assets and reinvest capital into high-quality properties to increase its FFO per share.
The company recently announced several advancements in its capital allocation strategy. It traded on the Hollywood Avenue retail portfolio in Los Angeles for $69 million and sold 108-unit residential property in San Jose for $74 million. The sales are part of the $1 billion potential property disposal the company has identified in its portfolio. Potential future sales include retail properties as well as office and residential properties that are not fully integrated with their main mixed-use properties.
Federal Realty is leveraging the proceeds from these sales and their financial flexibility to invest in high-quality properties with greater potential. Recently, it spent $289 million to acquire two major open-air retail malls in Leawood, Kansas, one of Kansas’ wealthiest and fastest-growing submarkets.
It also approved the construction of Lot 12, a $145 million project that will build 258 residential units in Santana Row, San Jose. The company also built a 45-unit residential building in Hoboken, New Jersey and a 217-unit multifamily project in a suburb of Philadelphia, Pennsylvania.
These investments position the REIT as continuing to increase shareholder value by increasing its FFO per share. This should allow REITs to continue to push their dividend payments higher.
Federal Real Estate has been an amazing dividend stock for the past few decades. REIT has already focused on investment quality exceeding quantity real Pay it back. Stocks fall and generate dividends, this is great Buy passive income now.
Before you buy shares in a federal REIT, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks Investors buy now…Federal Real Estate Investment Trust is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
When to considerNetflixOn this list on December 17, 2004…If you invested $1,000 when you suggested,You will have $671,477! * Or when NvidiaThis list was listed on April 15, 2005…If you invested $1,000 when you suggested,You will have $1,010,880! *
Now, it’s worth notingStock ConsultantThe overall average return is1,047% – Compared to market sprints180%For the S&P 500 index. Don’t miss the latest top ten list, available when you joinStock Consultant.
View 10 stocks »
*Stock Advisor Returns as of July 14, 2025
Matt Dilallo has no position in any of the stocks mentioned. Motley fool has no position in any stock mentioned. Motley Fool has a disclosure policy.
Down more than 10%, this elite high-yield dividend stock is currently an excellent buy for passive income, originally published by Motley Fool
