Federal Realty Investment Trust Reports Third Quarter 2025 Results
NORTH BETHESDA, Md., Oct. 31, 2025 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today reported its results for the third quarter ended September 30, 2025. For the three months ended September 30, 2025 and 2024, net income available for common shareholders was $0.69 per diluted share and $0.70 per diluted share, respectively. Operating income for the same periods was $110.7 million and $105.8 million, respectively.
Highlights for the third quarter and subsequent to quarter-end include:
"Our third quarter performance reflects the strength of our portfolio and the discipline of our strategy," said Donald C. Wood, Chief Executive Officer of Federal Realty. "Record leasing volume and some of the strongest rent spreads in our history underscore the demand for our properties and the power of our platform. We're driving NOI growth and maintaining sharp focus on disciplined capital allocation that drives compounding growth over time."
Financial Results
Net Income
For the third quarter 2025, net income available for common shareholders was $59.6 million and earnings per diluted share was $0.69 versus $58.9 million and $0.70, respectively, for the third quarter 2024.
FFO
For the third quarter 2025, FFO was $153.0 million, or $1.77 per diluted share. This compares to $144.6 million, or $1.71 per diluted share for the third quarter 2024.
FFO is a non-GAAP supplemental earnings measure which the Trust considers meaningful in measuring its operating performance. A reconciliation of FFO to net income is attached to this press release.
Operational Update
Occupancy
The following operational metrics for the commercial portfolio are as of September 30, 2025:
The residential leased rate was 96.0% as of September 30, 2025.
Leasing Activity
During the third quarter 2025, Federal Realty signed 132 leases totaling 774,890 square feet of retail space. On a comparable space basis, the company signed 123 leases for 727,029 square feet at an average rent of $35.71 per square foot, compared to $27.85 under prior leases, representing a 28% increase on a cash basis and 43% increase on a straight-line basis.
Transaction Activity
Regular Quarterly Dividends
Federal Realty announced today that its Board of Trustees declared a regular quarterly cash dividend of $1.13 per common share, resulting in an indicated annual rate of $4.52 per common share. The regular common dividend will be payable on January 15, 2026 to common shareholders of record as of January 2, 2026.
Federal Realty's Board of Trustees also declared a quarterly cash dividend on its Class C depositary shares, each representing 1/1000 of a 5.000% Series C Cumulative Preferred Share of Beneficial Interest, of $0.3125 per depositary share. All dividends on the depositary shares will be payable on January 15, 2026 to shareholders of record as of January 2, 2026.
2025 Guidance
Federal Realty has tightened its 2025 earnings per diluted share guidance and raised and tightened its 2025 FFO guidance, as summarized in the table below:
Full Year 2025 Guidance
Revised Guidance
Prior Guidance
2025 Earnings per diluted share
$3.93 to $3.99
$3.91 to $4.01
2025 FFO per diluted share
$7.20 to $7.26
$7.16 to $7.26
2025 FFO per diluted share, excluding NMTC transaction income 1
$7.05 to $7.11
$7.01 to $7.11
1.
See further discussion of NMTC transaction income in Form 10-Q filed with the Securities and Exchange Commission on August 6, 2025.
Conference Call Information
Federal Realty's management team will present an in-depth discussion of Federal Realty's operating performance on its third quarter 2025 earnings conference call, which is scheduled for Friday, October 31, 2025 at 9:00 AM ET. To participate, please call 833-821-4548 or 412-652-1258 prior to the call start time. The teleconference can also be accessed via a live webcast at www.federalrealty.com in the Investors section. A replay of the webcast will be available on Federal Realty's website at www.federalrealty.com. A telephonic replay of the conference call will also be available through November 14, 2025 by dialing 844-512-2921 or 412-317-6671; Passcode: 10203351.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 103 properties include approximately 3,600 tenants in 27.9 million commercial square feet, and approximately 3,000 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Safe Harbor Language
Certain matters discussed within this Press Release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 13, 2025 and include the following:
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Press Release. Except as required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events, or otherwise. You should review the risks contained in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 13, 2025 and subsequent quarterly reports on Form 10-Q.
Investor Inquiries:
Jill Sawyer
Senior Vice President, Investor Relations
301.998.8265
jsawyer@federalrealty.com
Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
bpomar@federalrealty.com
Federal Realty Investment Trust
Consolidated Balance Sheets
September 30, 2025
September 30,
December 31,
2025
2024
(in thousands, except share and per share data)
(unaudited)
ASSETS
Real estate, at cost
Operating (including $1,827,346 and $1,825,656 of consolidated variable interest
entities, respectively)
$ 11,035,704
$ 10,363,961
Construction-in-progress (including $25,395 and $9,939 of consolidated variable
interest entities, respectively)
338,990
539,752
11,374,694
10,903,713
Less accumulated depreciation and amortization (including $456,303 and $424,044
of consolidated variable interest entities, respectively)
(3,326,160)
(3,152,799)
Net real estate
8,048,534
7,750,914
Cash and cash equivalents
111,311
123,409
Accounts and notes receivable, net
239,887
229,080
Mortgage notes receivable, net
9,105
9,144
Investment in partnerships
32,708
33,458
Operating lease right of use assets, net
83,860
85,806
Finance lease right of use assets, net
6,465
6,630
Prepaid expenses and other assets
330,355
286,316
TOTAL ASSETS
$ 8,862,225
$ 8,524,757
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgages payable, net (including $183,493 and $186,643 of consolidated variable
interest entities, respectively)
$ 511,318
$ 514,378
Notes payable, net
849,558
601,414
Senior notes and debentures, net
3,362,468
3,357,840
Accounts payable and accrued expenses
224,540
183,564
Dividends payable
99,792
96,743
Security deposits payable
31,275
30,941
Operating lease liabilities
72,960
74,837
Finance lease liabilities
12,872
12,783
Other liabilities and deferred credits
231,613
227,827
Total liabilities
5,396,396
5,100,327
Commitments and contingencies
Redeemable noncontrolling interests
180,684
180,286
Shareholders' equity
Preferred shares, authorized 15,000,000 shares, $.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation
preference $25,000 per share), 6,000 shares issued and outstanding
150,000
150,000
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation
preference $25 per share), 392,878 shares issued and outstanding
9,822
9,822
Common shares of beneficial interest, $.01 par, 200,000,000 shares authorized,
86,265,563 and 85,666,220 shares issued and outstanding, respectively
869
862
Additional paid-in capital
4,306,262
4,248,824
Accumulated dividends in excess of net income
(1,254,627)
(1,242,654)
Accumulated other comprehensive income
2,232
4,740
Total shareholders' equity of the Trust
3,214,558
3,171,594
Noncontrolling interests
70,587
72,550
Total shareholders' equity
3,285,145
3,244,144
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 8,862,225
$ 8,524,757
Federal Realty Investment Trust
Consolidated Income Statements
September 30, 2025
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands, except per share data)
(unaudited)
REVENUE
Rental income
$ 313,183
$ 295,119
$ 917,954
$ 866,199
Other property income
8,789
8,233
24,143
23,973
Mortgage interest income
281
281
833
836
Total revenue
322,253
303,633
942,930
891,008
EXPENSES
Rental expenses
67,481
63,898
196,894
184,448
Real estate taxes
38,178
36,053
111,426
105,402
General and administrative
11,649
10,822
34,449
34,920
Depreciation and amortization
94,277
87,028
270,464
255,481
Total operating expenses
211,585
197,801
613,233
580,251
Gain on sale of real estate
—
—
77,672
52,280
New market tax credit transaction income
—
—
14,176
—
OPERATING INCOME
110,668
105,832
421,545
363,037
OTHER INCOME/(EXPENSE)
Other interest income
845
978
2,493
3,512
Interest expense
(47,619)
(44,237)
(134,692)
(132,242)
Income from partnerships
605
888
1,687
1,825
NET INCOME
64,499
63,461
291,033
236,132
Net income attributable to noncontrolling interests
(2,850)
(2,508)
(9,700)
(6,461)
NET INCOME ATTRIBUTABLE TO THE TRUST
61,649
60,953
281,333
229,671
Dividends on preferred shares
(2,008)
(2,008)
(6,024)
(6,024)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS
$ 59,641
$ 58,945
$ 275,309
$ 223,647
EARNINGS PER COMMON SHARE, BASIC AND DILUTED
Net income available for common shareholders
$ 0.69
$ 0.70
$ 3.20
$ 2.68
Weighted average number of common shares
85,978
83,994
85,808
83,180
Federal Realty Investment Trust
Funds From Operations
September 30, 2025
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(in thousands, except per share data)
Funds from Operations available for common shareholders (FFO)
Net income
$ 64,499
$ 63,461
$ 291,033
$ 236,132
Net income attributable to noncontrolling interests
(2,850)
(2,508)
(9,700)
(6,461)
Gain on sale of real estate
—
—
(77,672)
(52,280)
Depreciation and amortization of real estate assets
81,155
76,581
236,251
225,676
Amortization of initial direct costs of leases
12,029
8,757
30,464
24,673
Funds from operations
154,833
146,291
470,376
427,740
Dividends on preferred shares (1)
(1,875)
(1,875)
(5,625)
(5,625)
Income attributable to downREIT operating partnership units
596
688
1,868
2,068
Income attributable to unvested shares
(509)
(506)
(1,558)
(1,524)
FFO (2)
$ 153,045
$ 144,598
$ 465,061
$ 422,659
Weighted average number of common shares, diluted (1)(3)
86,599
84,714
86,463
83,904
FFO per diluted share (2)(3)
$ 1.77
$ 1.71
$ 5.38
$ 5.04
Dividends and Payout Ratios
Regular common dividends declared
$ 97,474
$ 93,442
$ 287,282
$ 275,006
Dividend payout ratio as a percentage of FFO
64 %
65 %
62 %
65 %
Notes:
SOURCE Federal Realty Investment Trust