Hedge Fund Trims FRT Position Valued at $7.1 Million, According to Recent SEC Filing
Key Points
Sold 72,100 shares of Federal Realty Investment Trust (NYSE: FRT); estimated transaction value ~$7.10 million based on quarterly average pricing
Quarter-end stake value decreased by $7.39 million, reflecting both share sales and price movement
Change represented 4.95% of 13F reportable assets under management
Post-trade holding: 173,546 shares valued at $17.49 million
Federal Realty Investment Trust now represents 12.19% of the fund’s AUM, which makes it the fund's second-largest position
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On February 17, 2026, Masterton Capital Management, LP disclosed a sale of 72,100 shares of Federal Realty Investment Trust (NYSE:FRT), an estimated $7.10 million trade based on quarterly average pricing.
What Happened
According to a February 17, 2026, SEC filing, Masterton Capital Management, LP reduced its position in Federal Realty Investment Trust by 72,100 shares during the fourth quarter of 2025. The estimated value of shares sold was approximately $7.10 million, calculated using the average closing price over the quarter. The quarter-end value of the fund’s remaining stake declined by $7.39 million, a figure that includes both trading activity and price changes.
What Else to Know
The fund’s direction was a sale, leaving Federal Realty Investment Trust at 12.19% of 13F assets under management after the transaction
Top holdings after the filing:
- NYSE:EQR: $21.19 million (14.8% of AUM)
- NYSE:FRT: $17.49 million (12.2% of AUM)
- NYSE:PSA: $13.49 million (9.4% of AUM)
- NYSE:AMH: $11.26 million (7.8% of AUM)
- NYSE:INVH: $10.51 million (7.3% of AUM)
As of February 17, 2026, shares of Federal Realty Investment Trust were priced at $106.21, up 6.2% over the past year, underperforming the S&P 500 by 6.09 percentage points
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.28 billion |
| Net income (TTM) | $422.11 million |
| Dividend yield | 4.21% |
| Price (as of market close February 17, 2026) | $106.21 |
Company Snapshot
- Owns, operates, and redevelops high-quality retail-based properties, including mixed-use neighborhoods that integrate shopping, dining, residential, and office spaces.
- Generates revenue primarily through rental income from a diversified tenant base across approximately 3,100 tenants, with a focus on major U.S. coastal markets.
- Targets retailers, restaurants, service providers, and residents in densely populated, affluent urban and suburban communities.
Federal Realty Investment Trust is a leading retail REIT specializing in the ownership and redevelopment of premium shopping centers and mixed-use properties in major U.S. coastal markets. The company leverages a disciplined investment strategy focused on locations with strong consumer demand and limited retail supply, supporting consistent long-term growth. Federal Realty's extensive track record of dividend increases and its diversified, high-quality tenant roster underscore its competitive strength in the retail real estate sector.
What This Transaction Means for Investors
Masterton Capital Management, a New York-based hedge fund, recently disclosed the sale of more than 72,000 shares of Federal Realty Investment Trust (FRT), a retail REIT. While that sale did reduce its position by more than $7 million, FRT remains the fund’s second-largest holding. Here’s what the move means for average investors.
To begin, let’s recap how FRT has performed in recent years. The stock has advanced by 15% over the last three years, equating to a compound annual growth rate (CAGR) of 4.7%. While that’s not a terrible performance, it does lag the benchmark S&P 500 index, which has generated a total return of 81% over the same period, with a CAGR of 21.9%.
Turning to FRT’s business, the company is operating well. Its focus on affluent coastal locations is paying off. Indeed FRT has increased its dividend payments for 58 straight years, making it a standout among dividend-paying stocks. Its current yield of 4.21% is ideal for income-seeking investors. Looking ahead, the company has announced positive revenue guidance for 2026.
Yet, like all stocks, there are always risks, too. For FRT, those risks come in the form of financing headwinds. The company carries over $5 billion in net debt — some of which must be refinanced at higher rates. That refinancing will eat into the company’s funds from operations (FFO).
To sum up, Masterton’s sale of FRT stock was a trim — not a significant shift. Moreover, the FRT is operating well and delivering consistent dividend increases. Concerns center around debt financing, but, overall, income-seeking investors may be wise to consider the stock.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Invitation Homes. The Motley Fool has a disclosure policy.
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