Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 83

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 83
---
 Changes in the components of property expenses are discussed below.

Rental Expenses

Rental expenses increased $12.4 million, or 6.7%, to $196.9 million in the nine months ended September 30, 2025 compared to $184.4 million in the nine months ended September 30, 2024 due primarily to the following:

•an increase of $6.9 million from 2025 and 2024 acquisitions

•an increase of $5.3 million from comparable properties due primarily to higher snow removal costs, higher utilities, and an increase in management fees on higher revenues, and

•an increase of $2.7 million from non-comparable properties due primarily to openings at Santana West, 

partially offset by

•a decrease of $2.5 million from property dispositions.

As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income increased to 21.4% in the nine months ended September 30, 2025 from 21.3% in the nine months ended September 30, 2024. 

Real Estate Taxes

Real estate tax expense increased $6.0 million, or 5.7%, to $111.4 million in the nine months ended September 30, 2025 compared to $105.4 million in the nine months ended September 30, 2024 due primarily to the following:

•an increase of $3.5 million from 2025 and 2024 acquisitions,

•an increase of $2.1 million from comparable properties primarily due to higher assessments and prior year refunds received during 2024, and 

•an increase of $1.7 million from non-comparable properties primarily due to openings at Santana West and Pike & Rose Phase IV,

partially offset by

•a decrease of $1.2 million from property dispositions. 

Property Operating Income

Property operating income increased $33.5 million, or 5.6%, to $634.6 million in the nine months ended September 30, 2025 compared to $601.2 million in the nine months ended September 30, 2024. This increase is primarily driven by 2025 and 2024 acquisitions and higher rental rates and average occupancy, partially offset by property dispositions and higher collectibility related adjustments.

Other Operating

Depreciation and Amortization

Depreciation and amortization expense increased $15.0