Company: FRT-PC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000034903-25-000052
Chunk: 78

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 78
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 rental income and rental expenses as discussed above, rental expenses as a percentage of rental income decreased to 20.4% in the three months ended June 30, 2025 from 20.5% in the three months ended June 30, 2024. 

Real Estate Taxes

Real estate tax expense increased $1.4 million, or 3.9%, to $36.7 million in the three months ended June 30, 2025 compared to $35.3 million in the three months ended June 30, 2024. This increase is primarily due to the following:

•an increase of $1.0 million from 2024 and 2025 acquisitions, and

•an increase of $0.6 million from non-comparable properties due primarily to openings at Santana West,

partially offset by

•a decrease of $0.4 million from property dispositions.

Property Operating Income

Property operating income increased $11.4 million, or 5.6%, to $213.2 million in the three months ended June 30, 2025 compared to $201.9 million in the three months ended June 30, 2024. This increase is primarily driven by higher rental rates 

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and average occupancy, 2024 and 2025 acquisitions, and lower rental expenses after recoveries from tenants, partially offset by property dispositions and higher collectibility related adjustments.

Other Operating

Depreciation and Amortization

Depreciation and amortization expense increased $4.2 million, or 4.9%, to $89.2 million in the three months ended June 30, 2025 compared to $85.0 million in the three months ended June 30, 2024. This increase is due primarily to 2024 and 2025 acquisitions, the opening of Santana West and Pike & Rose Phase IV, partially offset by fully depreciated lease assets related to our Grossmont property and property dispositions.

Gain on Sale of Real Estate

The $76.5 million gain on sale of real estate for the three months ended June 30, 2025 is primarily due to the sale of a residential building at Santana Row and our Hollywood Boulevard property.

The $52.3 million gain on sale of real estate for the three months ended June 30, 2024 is primarily due to the sale of Third Street Promenade. 

New Market Tax Credit Transaction Income

The $14.2 million