Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 84

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 84
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 million, or 5.9%, to $270.5 million in the nine months ended September 30, 2025 compared to $255.5 million in the nine months ended September 30, 2024. This increase is due primarily to 2025 and 2024 acquisitions and the openings at Santana West and Pike & Rose Phase IV, partially offset by fully depreciated lease assets related to our Grossmont property and property dispositions.

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Table of Contents

Gain on Sale of Real Estate

The $77.7 million gain on sale of real estate for the nine months ended September 30, 2025 is primarily due to the sale of a residential building at Santana Row, our Hollywood Boulevard property, and a portion of our White Marsh Other property.

The $52.3 million gain on sale of real estate for the nine months ended September 30, 2024 is primarily due to the sale of Third Street Promenade. 

New Market Tax Credit Transaction Income

The $14.2 million new market tax credit transaction income for the nine months ended September 30, 2025 is primarily due to sale of new market tax credits related to Freedom Plaza (see Note 6 to the consolidated financial statements for additional information).

Operating Income

Operating income increased $58.5 million, or 16.1%, to $421.5 million in the nine months ended September 30, 2025 compared to $363.0 million in the nine months ended September 30, 2024. This increase is primarily driven by higher gains on sale of real estate, higher rental rates and average occupancy, income related to the sale of the new market tax credits, and 2025 and 2024 acquisitions, partially offset by property dispositions and higher collectibility related adjustments.

Other

Interest Expense 

Interest expense increased $2.5 million, or 1.9%, to $134.7 million in the nine months ended September 30, 2025 compared to $132.2 million in the nine months ended September 30, 2024. This increase is due primarily to the following:

•a decrease of $5.3 million in capitalized interest, and

•an increase of $1.6 million due to higher weighted average borrowings,

partially offset by,

•a decrease of $4.4 million due to a lower overall weighted average borrowing rate.

Gross interest costs were $145.1 million and $147.9 million in the nine months