FRT ROE - Return on Equity
Profitability analysis for Federal Realty Investment Trust
Stock Price
$102.09
+0.28% today
Return on Equity (ROE)
0.1%
Poor - Low capital efficiency
Key Profitability Metrics
Return on Equity
0.1%
Profit per dollar of equity
Return on Assets
0.0%
Profit per dollar of assets
Return on Invested Capital
0.1%
Profit per dollar invested
Industry Comparison
FRT ROE
0.1%
Real Estate Average
12.0%
Difference
-11.9%
Below industry by 99.1%
FRT is underperforming Real Estate peers, suggesting potential for operational improvements.
DuPont Analysis - ROE Breakdown
ROE can be decomposed into three components using the DuPont formula:
ROE = Net Margin × Asset Turnover × Equity Multiplier
Net Profit Margin
0.3%
Thin margins
Asset Turnover
0.00x
Capital intensive
Equity Multiplier
0.00x
Conservative
0.1% = 0.3% × 0.00 × 0.00
What ROE Means for Investors
Capital Efficiency
FRT's ROE of 0.1% shows moderate capital efficiency. There may be room for improvement in profitability.
Competitive Advantage
ROE below industry average may indicate competitive pressures, operational inefficiencies, or industry headwinds affecting Federal Realty Investment Trust.
Growth Potential
With moderate ROE, FRT may need external financing or debt to fund significant growth initiatives, potentially diluting shareholders or increasing leverage.
Leverage Consideration
FRT has conservative leverage (0.0x equity multiplier), suggesting the ROE reflects genuine operational efficiency rather than financial engineering.
ROE Calculation Data
Most Recent Quarter
Net Income
$$0.30B
Shareholders Equity
$3.17B
Formula
ROE = (Net Income / Shareholders Equity) × 100
Analyze FRT in Depth
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Frequently Asked Questions
What is FRT ROE (Return on Equity)?
FRT's Return on Equity (ROE) is 0.1%, which is considered poor. ROE measures how efficiently Federal Realty Investment Trust generates profit from shareholders' equity. For every dollar of equity, FRT generates 0.1 cents in profit.
Is FRT ROE good or bad?
FRT's ROE of 0.1% is poor and below the Real Estate average of approximately 12.0%. Low capital efficiency. It trails industry peers by 99.1%.
What is the difference between ROE, ROA, and ROIC?
ROE (Return on Equity) at 0.1% measures returns on shareholder equity. ROA (Return on Assets) at 0.0% measures how efficiently FRT uses its total assets. ROIC (Return on Invested Capital) at 0.1% shows returns on all capital invested, including debt. All three metrics help evaluate Federal Realty Investment Trust's profitability from different angles.
How does FRT generate its ROE?
FRT generates its 0.1% ROE through the DuPont formula: Net Margin (0.3%) × Asset Turnover (0.00) × Equity Multiplier (0.00). This shows thin profit margins, capital-intensive operations, and conservative capital structure.
Should I invest in FRT based on ROE?
While FRT's ROE of 0.1% is poor, ROE alone shouldn't determine investment decisions. Moderate ROE suggests steady but unexceptional returns. Consider ROE alongside other metrics like debt levels, growth rates, valuation multiples, and industry trends before investing.
What factors affect FRT Return on Equity?
FRT's ROE is affected by three key drivers: (1) Profitability - net margins from pricing power and cost management, (2) Efficiency - how well Federal Realty Investment Trust uses its assets to generate sales, and (3) Leverage - the amount of debt used to finance operations. Real Estate sector dynamics, competitive positioning, management quality, and economic conditions all impact these drivers.
Disclaimer: ROE analysis is based on publicly available financial data and should not be considered financial advice. High ROE can be misleading if driven primarily by excessive leverage. Always analyze multiple metrics and consider your own research before making investment decisions.