Company: FRT-PC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000034903-25-000037
Chunk: 40

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 40
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, lower personnel related costs, and lower collectibility related adjustments, partially offset by property dispositions, and higher rental expenses after recoveries from tenants.

Other

Interest Expense

Interest expense decreased $1.2 million, or 2.8%, to $42.5 million in the three months ended March 31, 2025 compared to $43.7 million in the three months ended March 31, 2024. This decrease is due primarily to the following:

•a decrease of $1.6 million due to a lower overall weighted average borrowing rate, and

•a decrease of $0.1 million due to lower weighted average borrowings,

partially offset by,

•a decrease of $0.5 million in capitalized interest.

Gross interest costs were $47.3 million and $49.0 million in the three months ended March 31, 2025 and 2024, respectively. Capitalized interest was $4.8 million and $5.3 million for the three months ended March 31, 2025 and 2024, respectively.

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Table of Contents

Liquidity and Capital Resources

Due to the nature of our business and strategy, we typically generate significant amounts of cash from operations which is largely paid to our common and preferred shareholders in the form of dividends because as a REIT, the Trust is generally required to make annual distributions to shareholders of at least 90% of our taxable income (cash dividends paid in the three months ended March 31, 2025 were approximately $96.4 million). Remaining cash flow from operations after regular debt service requirements (including debt service relating to additional or replacement debt, as well as scheduled debt maturities) and dividend payments is used to fund recurring and non-recurring capital projects (such as tenant improvements and redevelopments). We maintain an unsecured $1.25 billion revolving credit facility to fund short term cash flow needs and also look to the public and private debt and equity markets, joint venture relationships, and property dispositions to fund capital expenditures on a long-term basis.

On March 20, 2025, we amended and restated our $600.0 million unsecured term loan, extending the maturity date to March 20, 2028, plus two one-year extensions, at our option. In addition, we have the right until December 20, 2025 to borrow up to an additional $150.0 million in the form of one or more unsecured term loans.