Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 82

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 82
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 consider it to be a significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of operating  income to property operating income for the nine months ended September 30, 2025 and 2024 is as follows:

20252024(in thousands)Operating income$421,545 $363,037 General and administrative34,449 34,920 Depreciation and amortization270,464 255,481 Gain on sale of real estate(77,672)(52,280)New market tax credit transaction income(14,176)— Property operating income$634,610 $601,158 

Property Revenues

Total property revenue increased $51.9 million, or 5.8%, to $942.9 million in the nine months ended September 30, 2025 compared to $891.0 million in the nine months ended September 30, 2024. The percentage occupied at our shopping centers was 93.8% and 94.0% at September 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 $30.9 million from 2025 and 2024 acquisitions,

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•an increase of $29.2 million from comparable properties primarily related to higher rental rates of approximately $12.7 million, a $9.2 million increase in recoveries from tenants primarily on higher occupancy and expenses, higher average occupancy of approximately $7.8 million, and a $1.0 million increase in lease termination fee income, partially offset by a $1.6 million increase in collectibility related adjustments, and

•an increase of $4.9 million from non-comparable properties primarily driven by occupancy increases,

partially offset by

•a decrease of $11.8 million from property dispositions.

Property Expenses

Total property expenses increased $18.5 million, or 6.4%, to $308.3 million in the nine months ended September 30, 2025 compared to $289.9 million in the nine months ended September 30, 2024.