Company: FRT-PC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000034903-25-000016
Chunk: 149

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 149
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 but they do not have an interest in the underlying economics of the property. The transaction also includes a put/call provision whereby we may be obligated or entitled to purchase the third party bank's interest. We believe the put will be exercised at its $1,000 strike price. Based on our assessment of control, we concluded that the project and certain other transaction related entities should be consolidated. The $13.9 million received in exchange for the transfer of the tax credits was deferred and will be recognized when the tax benefits are delivered to the third party bank without risk of recapture. Direct and incremental costs of $1.6 million incurred in structuring the NMTC transaction have also been deferred. The Trust anticipates recognizing the net cash received as revenue upon completion of the seven-year NMTC compliance period.At December 31, 2024, we had letters of credit outstanding of approximately $5.9 million.As of December 31, 2024 in connection with capital improvement, development, and redevelopment projects, we have contractual obligations of approximately $252.4 million.We are obligated under operating lease agreements on several shopping centers and one office lease requiring minimum annual payments as follows, as of December 31, 2024: (In thousands)Year ending December 31,2025$5,895 20265,602 20275,325 20285,389 20295,422 Thereafter189,447 Total future minimum operating lease payments217,080 Less amount representing interest(142,243)Operating lease liabilities$74,837 Future minimum lease payments and their present value for properties under finance leases as of December 31, 2024, are as follows:  (In thousands)Year ending December 31,2025$713 2026713 2027748 2028801 2029801 Thereafter67,074 Total future minimum finance lease payments70,850 Less amount representing interest(58,067)Finance lease liabilities$12,783 

F-31

Under the terms of the Congressional Plaza partnership agreement, a minority partner has the right to require us and the other minority partner to purchase its 26.63% interest in Congressional Plaza at the interest’s then-current fair market value. If the other minority partner defaults in their obligation, we must purchase the full interest. Based on management’s current estimate of fair market value as of December 31, 2024, our estimated maximum liability upon exercise of the put