Federal Realty Investment: A Wonderful Business At A Fair Price

Summary

  • FRT stock is trading at a large valuation premium, either compared to the sector median or to risk-free rates.
  • However, uncertain times like ours are not the time to chase yield or look for basement bargains.
  • FRT’s growth would shrink its valuation multiples steadily to very attractive levels in a few years.
  • And as for FRT’s P/FFO premium over the sector, it is well justified in my view given the quality of its properties compared to the sector average.
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FRT stock: buy wonderful businesses at fair valuations

The current situation surrounding Federal Realty Investment Trust (NYSE:FRT) is a textbook reflection of the wisdom to buy/hold wonderful businesses at fair prices (rather than fair

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