Company: FRT-PC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000034903-25-000052
Chunk: 47

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 47
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 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 revenue is due primarily to the following:

•an increase of $10.1 million from 2024 and 2025 acquisitions, 

•an increase of $8.5 million from comparable properties primarily related to higher rental rates of approximately $4.2 million,  higher average occupancy of approximately $3.1 million, $1.4 million increase in recoveries from tenants, partially offset by a $0.6 million increase in collectibility related adjustments, and

•an increase of $1.4 million from non-comparable properties primarily driven by occupancy increases,

partially offset by

•a decrease of $3.6 million from property dispositions.

Property Expenses

Total property expenses increased $4.1 million, or 4.4%, to $98.3 million in the three months ended June 30, 2025 compared to $94.2 million in the three months ended June 30, 2024. Changes in the components of property expenses are discussed below.

Rental Expenses

Rental expenses increased $2.7 million, or 4.6%, to $61.6 million in the three months ended June 30, 2025 compared to $58.9 million in the three months ended June 30, 2024. This increase is primarily due to the following:

•an increase of $2.6 million from 2024 and 2025 acquisitions, and 

•an increase of $0.9 million from non-comparable properties due primarily to openings at Santana West,

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 decreased to 20.4% in the three months ended June 30, 2025 from 20.5% in the three months ended June 30, 2024. 

Real Estate Taxes

Real estate tax expense increased $1.4 million, or 3.9%, to $36.7 million in the three months ended June 30, 2025 compared to $35.3 million in the three months ended June 30, 2024. This increase is primarily