Company: FRT-PC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000034903-25-000052
Chunk: 51

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 51
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4 million in the six months ended June 30, 2024. The percentage occupied at our shopping centers was 93.6% and 93.1% at June 30, 2025 and 2024, respectively. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments. Other property income includes revenue for our Pike & Rose hotel, parking income, and other incidental income from our properties. The increase in property revenues is due primarily to the following:

•an increase of $19.7 million from comparable properties primarily related to higher rental rates of approximately $7.4 million, higher average occupancy of approximately $6.5 million, and a $6.0 million increase in recoveries from tenants primarily on higher expenses,

•an increase of $19.5 million from 2024 and 2025 acquisitions, and

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•an increase of $3.1 million from non-comparable properties primarily driven by occupancy increases,

partially offset by

•a decrease of $7.7 million from property dispositions.

Property Expenses

Total property expenses increased $12.8 million, or 6.7%, to $202.7 million in the six months ended June 30, 2025 compared to $189.9 million in the six months ended June 30, 2024. Changes in the components of property expenses are discussed below.

Rental Expenses

Rental expenses increased $8.9 million, or 7.4%, to $129.4 million in the six months ended June 30, 2025 compared to $120.6 million in the six months ended June 30, 2024 due primarily to the following:

•an increase of $4.9 million from comparable properties due primarily to higher snow removal costs, higher utilities and other operating costs, and an increase in management fees on higher revenues,

•an increase of $4.7 million from 2024 and 2025 acquisitions, and

•an increase of $1.2 million from non-comparable properties due primarily to openings at Santana West, 

partially offset by

•a decrease of $1.5 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 six months ended June 30, 2025 from 21.1