AI Takeaway
FRT delivered a strong Q1 FY2026 with revenue up 10.3% YoY to $341.1M and net income surging 149.5% to $159.1M, driven by a dramatic expansion in operating margin to 61.3%.
Revenue
$341.08M
++10.33% YoY
EPS (Basic)
$1.82
++152.78% YoY
Operating Income
$208.99M
++93.27% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
FRT grew total revenue by 10.3% year-over-year to $341.1M in Q1 FY2026, compared to $309.2M in Q1 FY2025, reflecting continued strength in the company's retail real estate portfolio.
Source: Source: 10-Q Income Statement
Operating income nearly doubled, rising 93.3% YoY from $108.1M to $209.0M, pushing the operating margin from approximately 35.0% to 61.3% — a 26.3 percentage point improvement that signals significant operating leverage or reduced non-cash charges.
Source: Source: 10-Q Income Statement
Net income jumped 149.5% YoY to $159.1M, with basic EPS rising from $0.72 to $1.82 (+152.8%) and diluted EPS from $0.72 to $1.81 (+151.4%), reflecting both improved operations and potentially favorable non-recurring items.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockFRT carries a debt-to-equity ratio of approximately 1.67x, with total liabilities of $5.53B against stockholders' equity of $3.31B. As a REIT, elevated leverage amplifies sensitivity to interest rate increases, which could raise refinancing costs and compress funds from operations.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.81 versus the $0.71 analyst consensus — a +155.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $341.08M | $309.15M | +10.33% |
Operating Income | $208.99M | $108.13M | +93.27% |
Net Income | $159.1M | $63.77M | +149.50% |
EPS (Basic) | $1.82 | $0.72 | +152.78% |
EPS (Diluted) | $1.81 | $0.72 | +151.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $9.1B | $8.62B | +5.51% |
Total Liabilities | $5.53B | $5.18B | +6.88% |
Stockholders' Equity | $3.31B | $3.19B | +3.74% |
Cash & Equivalents | $115.63M | $109.22M | +5.87% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $184.59M | $179.04M | +3.10% |
Investing Cash Flow | $20.52M | $-181.77M | +111.29% |
Financing Cash Flow | $-198.92M | $-10.02M | -1885.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 61.3% | 35.0% | +26.29% |
Net Margin | 46.6% | — | — |
ROE | 4.8% | — | — |
ROA | 1.7% | — | — |
Debt to Equity | $1.671 | — | — |
Other companies in Retail REITs
FRT delivered a strong Q1 FY2026, with revenue growing 10.3% YoY to $341.1M and net income surging 149.5% to $159.1M. Basic EPS rose from $0.72 to $1.82, and operating margin expanded sharply from 35.0% to 61.3%.
FRT's net income rose 149.5% YoY to $159.1M in Q1 FY2026, far outpacing the 10.3% revenue growth. This divergence suggests the earnings surge was driven by factors beyond top-line growth, such as gains on property dispositions, reduced impairments, or lower non-cash charges, though the exact breakdown requires the full filing text.
FRT's balance sheet shows total assets of $9.10B and stockholders' equity of $3.31B, but carries $5.53B in total liabilities, resulting in a debt-to-equity ratio of 1.67x. Cash on hand is relatively thin at $115.6M, though operating cash flow of $184.6M provides ongoing liquidity support.
Yes, FRT's operating cash flow grew 3.1% YoY to $184.6M in Q1 FY2026, compared to $179.0M in Q1 FY2025. However, this modest growth contrasts sharply with the 149.5% surge in net income, suggesting a portion of the earnings improvement was driven by non-cash items.
Key risks for FRT include its elevated leverage with a debt-to-equity ratio of 1.67x and $5.53B in total liabilities, which increases sensitivity to rising interest rates. Additionally, FRT's concentration in retail real estate exposes it to e-commerce headwinds and tenant credit risk, while thin cash reserves of $115.6M relative to its $9.1B asset base limit financial flexibility.