Company: FRT-PC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000034903-25-000052
Chunk: 53

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 53
---
 six months ended June 30, 2025 is primarily due to the sale of a residential building at Santana Row, our Hollywood Boulevard property, and a portion of our White Marsh Other property.

The $52.3 million gain on sale of real estate for the six 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 new market tax credit transaction income for the six months ended June 30, 2025 is primarily due to sale of new market tax credits related to Freedom Plaza (see Note 6 to the consolidated financial statements for additional information).

Operating Income

Operating income increased $53.7 million, or 20.9%, to $310.9 million in the six months ended June 30, 2025 compared to $257.2 million in the six months ended June 30, 2024. This increase is primarily driven by higher gains on sale of real estate, income related to the sale of the new market tax credits, higher rental rates and average occupancy, 2024 and 2025 acquisitions, and 2024 and 2025 openings at our non-comparable properties, partially offset by property dispositions and higher rental expenses after recoveries from tenants.

Other

Interest Expense 

Interest expense decreased $0.9 million, or 1.1%, to $87.1 million in the six months ended June 30, 2025 compared to $88.0 million in the six months ended June 30, 2024. This decrease is due primarily to the following:

•a decrease of $3.2 million due to a lower overall weighted average borrowing rate, and

•a decrease of $0.3 million due to lower weighted average borrowings,

partially offset by,

•a decrease of $2.6 million in capitalized interest.

Gross interest costs were $94.9 million and $98.5 million in the six months ended June 30, 2025 and 2024, respectively. Capitalized interest was $7.9 million and $10.5 million for the six months ended June 30, 2025 and 2024, respectively.

Net income attributable to noncontrolling interests

Net income attributable to noncontrolling interests increased $2.9 million, or 73.3%, to $6.9 million in the six months ended June 30, 2025 compared to $4.