Company: FRT-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000034903-25-000063
Chunk: 75

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 2
Chunk 75
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 variability over time due to factors including acquisitions, the timing of the start and stabilization of our redevelopment projects, lease expirations and tenant closings and bankruptcies.

Lease Rollovers

For the third quarter of 2025, we signed retail leases for a total of 775,000 square feet of retail space including 727,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 28% on a cash basis. New leases for comparable spaces were signed for 235,000 square feet, with an average rental increase of 27% on a cash basis. Renewals for comparable spaces were signed for 492,000 square feet at a 29% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $21.25 per square foot, of which $55.12 per square foot was for new leases and $5.08 per square foot was for renewals for the three months ended September 30, 2025.

For the nine months ended September 30, 2025, we signed retail leases for a total of 1,858,000 square feet of retail space including 1,740,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 16% on a cash basis. New leases for comparable spaces were signed for 580,000 square feet, with an average rental increase of 16% on a cash basis. Renewals for comparable spaces were signed for 1,160,000 square feet at a 15% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $20.81 per square foot, of which $51.04 per square foot was for new leases and $5.70 per square foot was for renewals for the nine months ended September 30, 2025.

The rental increases associated with comparable spaces generally include all leases signed for retail space in arms-length transactions reflecting market leverage between landlords and tenants during the period, excluding leases at properties sold or under contract to be sold. The comparison between the rent for expiring leases and new leases is determined by including contractual rent on the expiring lease, including percentage rent considered to part of base rent, and the comparable annual rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgment as to how to most effectively reflect the comparability of spaces reported