Company: FRT-PC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000034903-25-000037
Chunk: 38

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 38
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 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 $11.0 million from comparable properties primarily related to higher average occupancy of approximately $3.4 million, higher rental rates of approximately $3.0 million, a $4.5 million increase in recoveries from tenants on higher expenses, and a $0.5 million decrease in collectibility related adjustments, 

•an increase of $9.4 million from 2024 and 2025 acquisitions, and

•an increase of $1.7 million from non-comparable properties primarily driven by occupancy increases at Santana West, Huntington Shopping Center, and Pike & Rose Phase IV,

partially offset by

•a decrease of $4.0 million from property dispositions.

Property Expenses

Total property expenses increased $8.7 million, or 9.0%, to $104.4 million in the three months ended March 31, 2025 compared to $95.7 million in the three months ended March 31, 2024. Changes in the components of property expenses are discussed below.

Rental Expenses

Rental expenses increased $6.1 million, or 10.0%, to $67.8 million in the three months ended March 31, 2025 compared to $61.7 million in the three months ended March 31, 2024 due primarily to the following:

•an increase of $4.7 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, and

•an increase of $2.1 million from 2024 and 2025 acquisitions,

partially offset by

•a decrease of $0.7 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 22.4% in the three months ended March 31, 2025 from 21.7% in the three months ended March 31, 2024. 

Real Estate Taxes

Real estate tax expense increased $2.5 million, or 7.4%, to $36.6 million in