Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 53

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 53
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5 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 $58.5 million, or 16.1%, to $421.5 million in the nine months ended September 30, 2025 compared to $363.0 million in the nine months ended September 30, 2024. This increase is primarily driven by higher gains on sale of real estate, higher rental rates and average occupancy, income related to the sale of the new market tax credits, and 2025 and 2024 acquisitions, partially offset by property dispositions and higher collectibility related adjustments.

Other

Interest Expense 

Interest expense increased $2.5 million, or 1.9%, to $134.7 million in the nine months ended September 30, 2025 compared to $132.2 million in the nine months ended September 30, 2024. This increase is due primarily to the following:

•a decrease of $5.3 million in capitalized interest, and

•an increase of $1.6 million due to higher weighted average borrowings,

partially offset by,

•a decrease of $4.4 million due to a lower overall weighted average borrowing rate.

Gross interest costs were $145.1 million and $147.9 million in the nine months ended September 30, 2025 and 2024, respectively. Capitalized interest was $10.4 million and $15.7 million for the nine months ended September 30, 2025 and 2024, respectively.

Net income attributable to noncontrolling interests

Net income attributable to noncontrolling interests increased $3.2 million, or 50.1%, to $9.7 million in the nine months ended September 30, 2025 compared to $6.5 million in the nine months ended September 30, 2024. This increase is primarily attributable to the new market tax credit transaction income in 2025, as well as overall higher income at our properties where there is a noncontrolling interest.

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Table of Contents

Liquidity and Capital Resources

Due to the nature of our business and strategy, we typically generate significant amounts of cash from operations which is largely paid to our common and preferred shareholders in the form of dividends because as a REIT, the Trust is generally required to make annual distributions to shareholders of at least 90% of our taxable