FRT – Market expectations are for Uniform ROA to expand materially, but management may have concerns about growth, demand, and occupancy rates

• Federal Realty Investment Trust (FRT:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 65.5x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about adjusted EPS growth, first-ring suburb property demand, and occupancy rate declines
• Specifically, management may lack confidence in their ability to sustain adjusted EPS and revenue growth and mitigate occupancy rate declines. Furthermore, they may be exaggerating the post-COVID demand for first-ring suburb properties and the strength of the Anchor system