Even if the Market Crashes, I'm Not Selling Federal Realty
One of the biggest takeaways when you dig into Federal Realty Investment Trust (NYSE: FRT) is that this real estate investment trust (REIT) is highly focused. Its playbook has been honed over decades, proving incredibly successful and resilient. I bought the stock in 2020, while it was deeply out of favor, and I would view a market pullback from here as a chance to buy more. Here's why.
I used the term "focused" to describe Federal Realty, and it fits. First off, the company is structured as a real estate investment trust, meaning it owns a collection of income-producing properties for the express purpose of passing income on to shareholders. It is keyed in to the retail sector, with a collection of strip malls and mixed-use, retail-focused developments. It only owns around 100 properties, which is pretty small for a strip mall REIT with more than 50 years of history behind it, but the properties it owns are located in wealthy and population-dense regions.
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Source Fool.com
