Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 80

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 80
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 in the three months ended September 30, 2024. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, and lower rental expenses after recoveries from tenants, partially offset by property dispositions and higher collectibility related adjustments.

Other Operating

General and Administrative Expense

General and administrative expense increased $0.8 million, or 7.6%, to $11.6 million in the three months ended September 30, 2025 compared to $10.8 million in the three months ended September 30, 2024. This increase is due primarily to higher personnel related costs.

Depreciation and Amortization

Depreciation and amortization expense increased $7.2 million, or 8.3%, to $94.3 million in the three months ended September 30, 2025 compared to $87.0 million in the three months ended September 30, 2024. This increase is due primarily to acquisitions and the opening of Santana West and Pike & Rose Phase IV, partially offset by fully depreciated lease assets related to our Grossmont property, and property dispositions.

Operating Income

Operating income increased $4.8 million, or 4.6%, to $110.7 million in the three months ended September 30, 2025 compared to $105.8 million in the three months ended September 30, 2024. This increase is primarily driven by higher rental rates and average occupancy, acquisitions, and lower rental expenses after recoveries from tenants, partially offset by property dispositions and higher collectibility related adjustments.

Other

Interest Expense

Interest expense increased $3.4 million, or 7.6%, to $47.6 million in the three months ended September 30, 2025 compared to $44.2 million in the three months ended September 30, 2024. This increase is due primarily to the following:

•a decrease of $2.7 million in capitalized interest, and

•an increase of $1.9 million due to higher weighted average borrowings,

partially offset by,

•a decrease of $1.2 million due to a lower overall weighted average borrowing rate.

Gross interest costs were $50.2 million and $49.5 million in the three months ended September 30, 2025 and 2024, respectively. Capitalized interest was $2.5 million and $5.2 million for the three months ended September 30, 2025 and