* Q4 FFO $0.98 beats Street view of $0.89
* Increase in rental income, lower operating expenses
* Backs 2010 FFO $3.80-$3.88
Feb 17 Real estate investment trust Federal
Realty Investment Trust (FRT.N) reported quarterly funds from
operations that beat Wall Street estimates comfortably, helped
largely by an increase in rental income and lower operating
For the fourth quarter, the retail-focused REIT posted FFO
of $60.1 million, or 98 cents a share, compared with FFO of
$58.6 million, or 99 cents a share, a year earlier.
Analysts on average were expecting Federal Realty to report
FFO of 89 cents a share.
Quarterly rental income rose almost 3 percent to $133.8
million, while operating expenses declined more than 5 percent
to $75.3 million.
The company's overall portfolio was 94.5 percent leased as
of Dec. 31, up marginally from 94.2 percent in the prior
Same-center portfolio was 94.6 percent leased, compared
with 94.4 percent in the third quarter.
FFO is a key performance measure for the REITs, because it
excludes the profit-reducing effect of depreciation.
Shares of the Rockville, Maryland-based company closed at
$67.13 Wednesday on the New York Stock Exchange.
(Reporting by Biswarup Gooptu in Bangalore; Editing by Anne