Company: FRT-PC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000034903-25-000016
Chunk: 32

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-13
Form: 10-K
Item: Item 2
Chunk 32
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Illinois4 776,000 2.9 %Connecticut3 420,000 1.6 %Michigan1 205,000 0.7 %District of Columbia1 54,000 0.2 %Total102 26,832,000 100.0 %

Leases, Lease Terms and Lease Expirations

Our leases are classified as operating leases and typically are structured to require the monthly payment of minimum rents in advance, subject to periodic increases during the term of the lease, percentage rents based on the level of sales achieved by tenants, and reimbursement of a majority of on-site operating expenses and real estate taxes. These features in our leases generally reduce our exposure to higher costs and allow us to participate in improved tenant sales.

Commercial property leases generally range from three to ten years; however, certain leases, primarily with anchor tenants, may be longer. Many of our leases contain tenant options that enable the tenant to extend the term of the lease at expiration at pre-established rental rates that often include fixed rent increases, consumer price index adjustments or other market rate adjustments from the prior base rent. Leases on residential units are generally for a period of one year or less and, in 2024, represented approximately 9.6% of total rental income.

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Table of Contents

The following table sets forth the schedule of lease expirations for our commercial leases in place as of December 31, 2024 for each of the 10 years beginning with 2025 and after 2034 in the aggregate assuming that none of the tenants exercise future renewal options. Annualized base rents reflect in-place contractual rents as of December 31, 2024.

Year of Lease ExpirationLeasedSquareFootageExpiringPercentage ofLeased SquareFootageExpiringAnnualizedBase RentRepresented byExpiring LeasesPercentage of  Annualized Base Rent  Represented by Expiring Leases20251,840,000 7 %$50,270,000 6 %20262,635,000 10 %78,748,000 10 %20273,109,000 12 %101,199,000 13 %20282,822,000 11 %89,376,000 11 %20293,529,000 14 %116,085,000 14 %20302,152,000 9 %65,247