Federal's primary advantage continues to be its well-located real estate that is driving double-digit spreads. The company signed 109 leases for 532,000 square feet of retail space during the quarter. Of the 504,000 square feet that are comparable (spaces for which there was a former tenant), the company recorded an average cash rent increase of 11%. Federal continues to deliver the highest leasing spreads among its shopping center peers. As further proof of Federal's "gold standard", the company in July completed a $250 million offering (upsized from $150 million due to strong demand) of 3.0% senior unsecured notes due Aug. 1, 2022. This coupon is the lowest coupon ever for a 10-year unsecured note in the REIT sector. Proceeds were used to repay borrowings under the revolving credit facility and for general corporate purposes, including the funding of acquisitions or redevelopment activity.
Source: SNL Financial and Federal Realty Q3 Earnings Call At the time of publication the author held no positions in any of the stocks mentioned. Follow @swan_investor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.