Company: FRT-PC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000034903-25-000016
Chunk: 18

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1A
Chunk 18
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 access the securities markets as a source of liquidity;

•adversely affect our tenants’ financial condition by limiting foot traffic and staffing at their businesses, which could affect their ability to pay rent and willingness to make new leasing commitments;

•reduce our cash flow, which could impact our ability to pay dividends at the current rate and in the current format or at all or to service our debt;

•temporarily or permanently reduce the demand for retail or office space;

•interfere with our business operations by requiring our personnel to work remotely;

•increase the frequency of cyber-attacks;

•disrupt supply chains that could be important in our development and redevelopment activities;

•result in labor shortages;

•interfere with potential purchases and sales of properties;

•impact our ability to pay dividends at the current rate and in the current format or at all; and

•have other direct and indirect effects that are difficult to predict. 

Such risks depend upon the nature and severity of the public health concern, as well as the extent and duration of government-mandated orders and personal decisions to limit travel, economic activity and personal interaction, none of which can be predicted with confidence. In particular, we cannot predict the impact of stay-at-home and other government orders instituted in response to a public health concern, which may vary by jurisdiction, or a public health concerns' short and long term economic effects, each of which could have a material adverse effect on our business

Risk Factors Related to our Funding Strategies and Capital Structure

The amount of debt we have and the restrictions imposed by that debt could adversely affect our business and financial condition.

As of December 31, 2024, we had approximately $4.5 billion of debt outstanding. Of that outstanding debt, approximately $515.8 million was secured by all or a portion of 8 of our real estate projects. As of December 31, 2024, approximately 86.7% of our debt is fixed rate or is fixed via interest rate swap agreements, which includes all of our property secured debt and our unsecured senior notes. Our organizational documents do not limit the level or amount of debt that we may incur. The amount of our debt outstanding from time to time could have important consequences to our shareholders. For example, it could:

•require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, property acquisitions, redevelopments and other appropriate business opportunities that may arise in the future;

•limit our