Federal Realty Investment Trust (FRT), with a market cap of $8.4 billion, specializes in owning, operating, and redeveloping premium retail-focused properties. Headquartered in Rockville, Maryland, its portfolio is concentrated in major coastal markets, spanning from Washington, D.C., to Boston, as well as Northern and Southern California. 

Companies valued between $2 billion and $10 billion are typically classified as “mid-cap stocks,” and FRT fits the label perfectly. 

FRT is currently trading 18% below its 52-week high of $118.34, reached on Sep. 16. Shares of this REIT have declined 13.4% over the past three months, underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 3% returns during the same period.

Moreover, FRT has dipped 3.7% over the past 52 weeks, lagging far behind XLRE’s 7.8% rally over the same time frame. Over the past six months, shares of FRT are down 14.5%, compared to XLRE’s 5.7% drop.

To confirm its recent bearish trend, FRT has been trading below its 50-day moving average since mid-December. It has remained under its 200-day moving average since mid-February.

After reporting Q4 earnings on Feb. 13, FRT shares tumbled 6.1% as its revenue of $311.4 million fell short of expectations. On a positive note, FFO rose 5.5% from the prior-year quarter to $1.73 per share, aligning with Wall Street estimates. While the results highlighted strong leasing activity and notable occupancy gains, they failed to win over investors.

FRT has underperformed its rival, Regency Centers Corporation (REG), which gained 23.3% over the past 52 weeks and almost 1.9% over the past six months. 

Despite Federal Realty’s recent underperformance, analysts remain fairly optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering it, and the mean price target of $116.44 suggests a modest 20.1% premium to its current levels.