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Federal Realty (FRT) Target Cut Slightly as Scotiabank Refreshes REIT Outlook

Federal Realty Investment Trust (NYSE:FRT) is included among the 13 Best Dividend Kings to Buy in 2026.

On January 14, Scotiabank trimmed its price target on Federal Realty Investment Trust (NYSE:FRT) to $113 from $114 and maintained an Outperform rating on the stock. The analyst said the firm is refreshing price targets across the US Real Estate and REIT names it covers ahead of the Q4 earnings season. Scotiabank also pointed to Self Storage and Multifamily as two areas where buy-side sentiment has been improving, with the view that both sectors are less likely to disappoint when companies issue FY26 guidance.

Federal Realty has also been showing up more often in bullish conversations on Wall Street. In a CNBC report published on December 31, analysts noted that while real estate struggled through much of 2025, Federal Realty stood out as a name that may be overlooked going into 2026. Jefferies analyst Linda Tsai reportedly called the company a top idea for 2026 and upgraded the stock to Buy.

A big part of the optimism centers on Federal Realty’s capital recycling strategy. The company has been selling mature, long-held retail assets and redeploying that capital into higher-quality growth opportunities. On December 17, Federal Realty announced it had sold a residential building in North Bethesda, Maryland, along with a grocery-anchored shopping center in Bristol, Connecticut, for roughly $170 million combined. On the reinvestment side, the trust has also been active, including a $153.3 million acquisition of Village Pointe in Omaha, Nebraska. That property is home to well-known tenants such as Apple, Coach, and Sephora.

Federal Realty Investment Trust (NYSE:FRT) is an equity REIT that focuses on owning, operating, and redeveloping retail-based real estate. Its portfolio is concentrated in major coastal markets, along with select underserved regions where economic conditions and demographic trends remain supportive.

While we acknowledge the potential of FRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FRT and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Dividend Growth Stocks with the Highest Growth Rates and 14 Best Mid Cap Dividend Aristocrat Stocks to Buy Now

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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