Company: FRT-PC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000034903-25-000037
Chunk: 48

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 48
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 cash needs, including the payment of dividends.

We consider FFO available for common shareholders a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of the real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation. We use FFO primarily as one of several means of assessing our operating performance in comparison with other REITs. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

An increase or decrease in FFO available for common shareholders does not necessarily result in an increase or decrease in aggregate distributions because our Board of Trustees is not required to increase distributions on a quarterly basis. However, we must distribute at least 90% of our annual taxable income to remain qualified as a REIT. Therefore, a significant increase in FFO will generally require an increase in distributions to shareholders although not necessarily on a proportionate basis.

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The reconciliation of net income to FFO available for common shareholders is as follows:

 Three Months EndedMarch 31, 20252024 (In thousands, except per share data)Net income$66,578 $58,016 Net income attributable to noncontrolling interests(2,810)(1,280)Gain on sale of real estate(1,171)— Depreciation and amortization of real estate assets76,498 73,938 Amortization of initial direct costs of leases9,077 7,737 Funds from operations148,172 138,411 Dividends on preferred shares (1)(1,875)(1,875)Income attributable to downREIT operating partnership units669 692 Income attributable to unvested shares(490)(503)Funds from operations available for common shareholders$146,476 $136,725 Weighted average number of common shares, diluted (1)(2)86,177 83,334 Funds from operations available for common shareholders, per diluted share (2)$1.70 $1.64 

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(1)For the three months ended March 31, 2025 and 2024, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and included in "weighted average number