1538 ET - Planned cuts to government spending are likely to negatively affect Federal Realty Trust, which has about a quarter of the REIT's real-estate portfolio in the D.C. area, Truist analyst Ki Bin Kim says, downgrading the stock to hold from buy. At least 25% of the spending earmarked by DOGE to be cut would have gone into the D.C. market, Kim estimates. The total scope of potential job cuts proposed are also likely to raise the unemployment rate in D.C., potentially denting the local economy further, Kim says. "We believe that the Washington D.C. risks are not priced into FRT's valuation/risk narrative," Kim says. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

March 13, 2025 15:39 ET (19:39 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.