Federal Realty Investment Trust 10-Q for FY2026 Q3
Federal Realty Investment Trust (FRT)
10-Q
2026-10-30
For: 2026-09-30
View Original
Added on
October 30, 2026
About this 10-Q
Federal Realty Investment Trust filed this 10-Q on October 30, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Federal Realty Investment Trust reported three-month 2026 operating income of $116.9 million, up 5.6%, and property operating income of $229.9 million, up 6.1%. It acquired The Summit for $508.0 million on October 1, 2026. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $339.02M
- up 5.2% from $322.25M a year earlier
- Net income
- $66.17M
- up 7.3% from net income of $61.65M a year earlier
- Diluted EPS
- $0.74
- up 7.2% from $0.69 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number: 1-07533 (Federal Realty Investment Trust)
Commission file number: 333-262016-01 (Federal Realty OP LP)
(Exact Name of Registrant as Specified in its Charter)
| (State of Organization) | (IRS Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(301 ) 998-8100
(Registrant’s Telephone Number, Including Area Code)
Federal Realty Investment Trust
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| $0.01 par value per share, with associated Common Share Purchase Rights | ||||||||
| Series C Cumulative Redeemable Preferred Share, $0.01 par value per share | ||||||||
Federal Realty OP LP
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| None | N/A | N/A | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Federal Realty Investment Trust ☒ Yes ☐ No Federal Realty OP LP ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Federal Realty Investment Trust ☒ Yes ☐ No Federal Realty OP LP ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Federal Realty Investment Trust | Federal Realty OP LP | |||||||||||||||||||||||||
☒ | Accelerated filer | ☐ | Large Accelerated Filer | ☐ | Accelerated filer | ☐ | ||||||||||||||||||||
| Non-Accelerated Filer | ☐ | Smaller reporting company | ☒ | Smaller reporting company | ||||||||||||||||||||||
| Emerging growth company | Emerging growth company | |||||||||||||||||||||||||
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Federal Realty Investment Trust ☐ Federal Realty OP LP ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Federal Realty Investment Trust ☐ Yes ☒ No Federal Realty OP LP ☐ Yes ☒ No
The number of Federal Realty Investment Trust's common shares outstanding on October 26, 2026 was 86,021,559 .
EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the quarter ended September 30, 2026, of Federal Realty Investment Trust and Federal Realty OP LP. Unless stated otherwise or the context otherwise requires, references to "Federal Realty Investment Trust," the "Parent Company" or the "Trust" mean Federal Realty Investment Trust; and references to "Federal Realty OP LP" or the "Operating Partnership" mean Federal Realty OP LP. The term "the Company," "we," "us," and "our" refer to the Parent Company and its business and operations conducted through its directly and indirectly owned subsidiaries, including the Operating Partnership. References to "shares" and "shareholders" refer to the shares and shareholders of the Parent Company and not the limited partnership interests or limited partners of the Operating Partnership.
The Parent Company is a real estate investment trust ("REIT") that owns 100% of the limited liability company interests of, is the sole member of, and exercises exclusive control over Federal Realty GP LLC (the "General Partner"), which is the sole general partner of the Operating Partnership. As of September 30, 2026, the Parent Company owned 100% of the outstanding partnership units (the "OP Units") in the Operating Partnership.
The Company believes combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report provides the following benefits:
•Enhances investors' understanding of the Parent Company and the Operating Partnership by enabling investors to view the businesses as a whole in the same manner as management views and operates the business;
•Eliminates duplicate disclosure and provides a more streamlined and readable presentation; and
•Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
Management operates the Parent Company and the Operating Partnership as one business. Since the Operating Partnership is managed by the Parent Company, and the Parent Company conducts substantially all of its operations through the Operating Partnership, the management of the Parent Company consists of the same individuals as the management of the Operating Partnership.
We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its direct and indirect interest in the Operating Partnership. As a result, the Parent Company does not conduct business itself other than issuing public equity from time to time. The Parent Company is not expected to incur any material indebtedness. The Operating Partnership holds substantially all of our assets and retains the ownership interests in the Company's joint ventures. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for OP Units, the Operating Partnership generates all capital required by the Company’s business. Sources of this capital include the Operating Partnership’s operations, its direct or indirect incurrence of indebtedness, and the issuance of partnership units.
Shareholders' equity, partner capital, and non-controlling interests are the primary areas of difference between the unaudited consolidated financial statements of the Parent Company and those of the Operating Partnership. The Operating Partnership’s capital currently includes OP Units owned by the Parent Company, and may in the future include OP Units owned by third parties. OP Units owned by third parties, if any, are accounted for in capital in the Operating Partnership’s financial statements and in non-controlling interests in the Parent Company’s financial statements.
The Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have assets other than its investment in the Operating Partnership. Therefore, while shareholders’ equity and partners' capital differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements.
In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections in this report that separately discuss the Parent Company and the Operating Partnership, including separate financial statements (but combined footnotes), separate controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company.
FEDERAL REALTY INVESTMENT TRUST
FEDERAL REALTY OP LP
QUARTERLY REPORT ON FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 2026
TABLE OF CONTENTS
| PART I. FINANCIAL INFORMATION | ||||||||
| Item 1. | Financial Statements | |||||||
| Federal Realty Investment Trust | ||||||||
Consolidated Balance Sheets as of September 30, 2026 (unaudited) and December 31, 2025 | ||||||||
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2026 and 2025 | ||||||||
Consolidated Statements of Shareholders' Equity (unaudited) for the three and nine months ended September 30, 2026 and 2025 | ||||||||
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2026 and 2025 | ||||||||
| Federal Realty OP LP | ||||||||
Consolidated Balance Sheets as of September 30, 2026 (unaudited) and December 31, 2025 | ||||||||
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2026 and 2025 | ||||||||
Consolidated Statements of Capital (unaudited) for the three and nine months ended September 30, 2026 and 2025 | ||||||||
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2026 and 2025 | ||||||||
| Federal Realty Investment Trust and Federal Realty OP LP | ||||||||
| Notes to Consolidated Financial Statements (unaudited) | ||||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||
| Item 4. | Controls and Procedures | |||||||
| PART II. OTHER INFORMATION | ||||||||
| Item 1. | Legal Proceedings | |||||||
| Item 1A. | Risk Factors | |||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
| Item 3. | Defaults Upon Senior Securities | |||||||
| Item 4. | Mine Safety Disclosures | |||||||
| Item 5. | Other Information | |||||||
| Item 6. | Exhibits | |||||||
| SIGNATURES | ||||||||
2
Federal Realty Investment Trust
Consolidated Balance Sheets
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands, except share and per share data) | |||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Real estate, at cost | |||||||||||
Operating (including $ | $ | $ | |||||||||
Construction-in-progress (including $ | |||||||||||
Less accumulated depreciation and amortization (including $ | ( | ( | |||||||||
| Net real estate | |||||||||||
| Cash and cash equivalents | |||||||||||
| Accounts and notes receivable, net | |||||||||||
| Mortgage notes receivable, net | |||||||||||
| Investment in partnerships | |||||||||||
| Operating lease right of use assets, net | |||||||||||
| Finance lease right of use assets, net | |||||||||||
| Prepaid expenses and other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
Mortgages payable, net (including $ | $ | $ | |||||||||
| Notes payable, net | |||||||||||
| Senior notes and debentures, net | |||||||||||
| Accounts payable and accrued expenses | |||||||||||
| Dividends payable | |||||||||||
| Security deposits payable | |||||||||||
| Operating lease liabilities | |||||||||||
| Finance lease liabilities | |||||||||||
| Other liabilities and deferred credits | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 6) | |||||||||||
| Redeemable noncontrolling interests | |||||||||||
| Shareholders’ equity | |||||||||||
Preferred shares, authorized | |||||||||||
Common shares of beneficial interest, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated dividends in excess of net income | ( | ( | |||||||||
| Accumulated other comprehensive income | |||||||||||
| Total shareholders’ equity of the Trust | |||||||||||
| Noncontrolling interests | |||||||||||
| Total shareholders’ equity | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated statements.
3
Federal Realty Investment Trust
Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||
| Rental income | $ | $ | $ | $ | |||||||||||||||||||
| Other property income | |||||||||||||||||||||||
| Mortgage interest income | |||||||||||||||||||||||
| Total revenue | |||||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Rental expenses | |||||||||||||||||||||||
| Real estate taxes | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Gain on sale of real estate | |||||||||||||||||||||||
| New market tax credit transaction income | |||||||||||||||||||||||
| OPERATING INCOME | |||||||||||||||||||||||
| OTHER INCOME/(EXPENSE) | |||||||||||||||||||||||
| Other interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Income from partnerships | |||||||||||||||||||||||
| NET INCOME | |||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO THE TRUST | |||||||||||||||||||||||
| Dividends on preferred shares | ( | ( | ( | ( | |||||||||||||||||||
| NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
| EARNINGS PER COMMON SHARE, BASIC: | |||||||||||||||||||||||
| Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average number of common shares | |||||||||||||||||||||||
| EARNINGS PER COMMON SHARE, DILUTED: | |||||||||||||||||||||||
| Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average number of common shares | |||||||||||||||||||||||
| COMPREHENSIVE INCOME | $ | $ | $ | $ | |||||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated statements.
4
Federal Realty Investment Trust
Consolidated Statements of Shareholders’ Equity
For the Three and Nine Months Ended September 30, 2026
(Unaudited)
| Shareholders’ Equity of the Trust | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT JUNE 30, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued, net | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of capped calls | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | ( | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Redemption of downREIT OP units | — | — | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of capped calls | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
5
Federal Realty Investment Trust
Consolidated Statements of Shareholders’ Equity
For the Three and Nine Months Ended September 30, 2025
(Unaudited)
| Shareholders’ Equity of the Trust | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT JUNE 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued, net | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Common shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Redemption of downREIT OP units and purchase of noncontrolling interest | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2024 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Conversion of and redemption of downREIT OP units and purchase of noncontrolling interest | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated statements.
6
Federal Realty Investment Trust
Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Gain on sale of real estate | ( | ( | ||||||||||||
| Income from partnerships | ( | ( | ||||||||||||
| New market tax credit transaction income | ( | |||||||||||||
| Straight-line rent | ( | ( | ||||||||||||
| Share-based compensation expense | ||||||||||||||
| Other, net | ( | ( | ||||||||||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
| Decrease in accounts receivable, net | ||||||||||||||
| Increase in prepaid expenses and other assets | ( | ( | ||||||||||||
| Increase in accounts payable and accrued expenses | ||||||||||||||
| Increase (decrease) in security deposits and other liabilities | ( | |||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Acquisition of real estate | ( | ( | ||||||||||||
| Capital expenditures - development and redevelopment | ( | ( | ||||||||||||
| Capital expenditures - other | ( | ( | ||||||||||||
| Proceeds from sale of real estate | ||||||||||||||
| Investment in partnerships | ( | ( | ||||||||||||
| Distribution from partnerships in excess of earnings | ||||||||||||||
| Leasing costs | ( | ( | ||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Net (repayments) borrowings under revolving credit facility, net of costs | ( | |||||||||||||
| Issuance of senior notes, net of costs | ||||||||||||||
| Repayment of senior notes | ( | |||||||||||||
| Issuance and extension of notes payable, net of costs | ||||||||||||||
| Repayment of mortgages, finance leases and notes payable | ( | ( | ||||||||||||
| Purchase of capped calls | ( | |||||||||||||
| Issuance of common shares, net of costs | ||||||||||||||
| Common shares repurchased | ( | |||||||||||||
| Dividends paid to common and preferred shareholders | ( | ( | ||||||||||||
| Common shares withheld for employee taxes | ( | ( | ||||||||||||
| Contributions from noncontrolling interests | ||||||||||||||
| Distributions to and redemptions of noncontrolling interests | ( | ( | ||||||||||||
| Net cash used in financing activities | ( | ( | ||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | ( | |||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of year | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | $ | ||||||||||||
The accompanying notes are an integral part of these consolidated statements.
7
Federal Realty OP LP
Consolidated Balance Sheets
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands, except unit data) | |||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Real estate, at cost | |||||||||||
Operating (including $ | $ | $ | |||||||||
Construction-in-progress (including $ | |||||||||||
Less accumulated depreciation and amortization (including $ | ( | ( | |||||||||
| Net real estate | |||||||||||
| Cash and cash equivalents | |||||||||||
| Accounts and notes receivable, net | |||||||||||
| Mortgage notes receivable, net | |||||||||||
| Investment in partnerships | |||||||||||
| Operating lease right of use assets, net | |||||||||||
| Finance lease right of use assets, net | |||||||||||
| Prepaid expenses and other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND CAPITAL | |||||||||||
| Liabilities | |||||||||||
Mortgages payable, net (including $ | $ | $ | |||||||||
| Notes payable, net | |||||||||||
| Senior notes and debentures, net | |||||||||||
| Accounts payable and accrued expenses | |||||||||||
| Dividends payable | |||||||||||
| Security deposits payable | |||||||||||
| Operating lease liabilities | |||||||||||
| Finance lease liabilities | |||||||||||
| Other liabilities and deferred credits | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 6) | |||||||||||
| Redeemable noncontrolling interests | |||||||||||
| Partner capital | |||||||||||
Preferred units, | |||||||||||
Common units, | |||||||||||
| Accumulated other comprehensive income | |||||||||||
| Total partner capital | |||||||||||
| Noncontrolling interests in consolidated partnerships | |||||||||||
| Total capital | |||||||||||
| TOTAL LIABILITIES AND CAPITAL | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated statements.
8
Federal Realty OP LP
Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per unit data) | |||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||
| Rental income | $ | $ | $ | $ | |||||||||||||||||||
| Other property income | |||||||||||||||||||||||
| Mortgage interest income | |||||||||||||||||||||||
| Total revenue | |||||||||||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Rental expenses | |||||||||||||||||||||||
| Real estate taxes | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Gain on sale of real estate | |||||||||||||||||||||||
| New market tax credit transaction income | |||||||||||||||||||||||
| OPERATING INCOME | |||||||||||||||||||||||
| OTHER INCOME/(EXPENSE) | |||||||||||||||||||||||
| Other interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Income from partnerships | |||||||||||||||||||||||
| NET INCOME | |||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP | |||||||||||||||||||||||
| Distributions on preferred units | ( | ( | ( | ( | |||||||||||||||||||
| NET INCOME AVAILABLE FOR COMMON UNIT HOLDERS | $ | $ | $ | $ | |||||||||||||||||||
| EARNINGS PER COMMON UNIT, BASIC: | |||||||||||||||||||||||
| Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average number of common units | |||||||||||||||||||||||
| EARNINGS PER COMMON UNIT, DILUTED: | |||||||||||||||||||||||
| Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average number of common units | |||||||||||||||||||||||
| COMPREHENSIVE INCOME | $ | $ | $ | $ | |||||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE PARTNERSHIP | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated statements.
9
Federal Realty OP LP
Consolidated Statements of Capital
For the Three and Nine Months Ended September 30, 2026
(Unaudited)
| Preferred Units | Common Units | Accumulated Other Comprehensive Income | Total Partner Capital | Noncontrolling Interests in Consolidated Partnerships | Total Capital | |||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT JUNE 30, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units repurchased | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Purchase of capped calls | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units repurchased | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Redemption of downREIT OP units | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Contributions from noncontrolling interests | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Purchase of capped calls | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
10
Federal Realty OP LP
Consolidated Statements of Capital
For the Three and Nine Months Ended September 30, 2025
(Unaudited)
| Preferred Units | Common Units | Accumulated Other Comprehensive Income (Loss) | Total Partner Capital | Noncontrolling Interests in Consolidated Partnerships | Total Capital | |||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AT JUNE 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss - change in fair value of interest rate swaps, excluding $ | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Redemption of downREIT OP units and purchase of noncontrolling interest | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2024 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss - change in fair value of interest rate swaps, excluding $ | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Conversion and redemption of downREIT OP units and purchase of noncontrolling interest | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| BALANCE AT SEPTEMBER 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated statements.
11
Federal Realty OP LP
Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Gain on sale of real estate | ( | ( | ||||||||||||
| Income from partnerships | ( | ( | ||||||||||||
| New market tax credit transaction income | ( | |||||||||||||
| Straight-line rent | ( | ( | ||||||||||||
| Share-based compensation expense | ||||||||||||||
| Other, net | ( | ( | ||||||||||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||
| Decrease in accounts receivable, net | ||||||||||||||
| Increase in prepaid expenses and other assets | ( | ( | ||||||||||||
| Increase in accounts payable and accrued expenses | ||||||||||||||
| Increase (decrease) in security deposits and other liabilities | ( | |||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Acquisition of real estate | ( | ( | ||||||||||||
| Capital expenditures - development and redevelopment | ( | ( | ||||||||||||
| Capital expenditures - other | ( | ( | ||||||||||||
| Proceeds from sale of real estate | ||||||||||||||
| Investment in partnerships | ( | ( | ||||||||||||
| Distribution from partnerships in excess of earnings | ||||||||||||||
| Leasing costs | ( | ( | ||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Net (repayments) borrowings under revolving credit facility, net of costs | ( | |||||||||||||
| Issuance of senior notes, net of costs | ||||||||||||||
| Repayment of senior notes | ( | |||||||||||||
| Issuance and extension of notes payable, net of costs | ||||||||||||||
| Repayment of mortgages, finance leases and notes payable | ( | ( | ||||||||||||
| Purchase of capped calls | ( | |||||||||||||
| Issuance of common units, net of costs | ||||||||||||||
| Common units repurchased | ( | |||||||||||||
| Distributions to common and preferred unit holders | ( | ( | ||||||||||||
| Common units withheld for employee taxes | ( | ( | ||||||||||||
| Contributions from noncontrolling interests | ||||||||||||||
| Distributions to and redemptions of noncontrolling interests | ( | ( | ||||||||||||
| Net cash used in financing activities | ( | ( | ||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | ( | |||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of year | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | $ | ||||||||||||
The accompanying notes are an integral part of these consolidated statements.
12
Federal Realty Investment Trust
Federal Realty OP LP
Notes to Consolidated Financial Statements
September 30, 2026
(Unaudited)
NOTE 1—BUSINESS AND ORGANIZATION
Federal Realty Investment Trust is a leader in the ownership, operation, and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions that we believe have strong economic and demographic fundamentals. Founded in 1962, our mission is to deliver long-term, sustainable growth through investing in communities where we believe retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations, which we believe reflect our ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities.
The Parent Company, which is a REIT, conducts substantially all of its operations and owns substantially all of its assets through the Operating Partnership. The Parent Company owns 100 % of the limited liability company interests of, is the sole member of and exercises exclusive control over Federal Realty GP LLC, which is the sole general partner of the Operating Partnership. The Parent Company does not expect to have substantial assets or liabilities other than through its investment in the Operating Partnership.
As of September 30, 2026, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 102 predominantly retail real estate projects.
We operate in a manner intended to enable the Trust to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90 % of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders. Therefore, federal income taxes on our taxable income have been and are generally expected to be immaterial. We are obligated to pay state taxes, generally consisting of franchise or gross receipts taxes in certain states. Such state taxes also have not been material.
General Economic Conditions
Significant uncertainty continues within the macro-economic and political environment including elevated inflation and interest rates, geopolitical instability, changes in tariffs and their impact on trade and prices, increases or decreases in federal and state government spending, and potentially worsening economic conditions, which presents risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy. We believe the actions we have taken to maintain a strong financial position and reinforce our liquidity will continue to mitigate the negative short-term impacts of the current environment. The extent of the future effects on our business, results of operations, cash flows, and growth strategies is highly uncertain and will ultimately depend on future developments, none of which can be predicted.
NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
Principles of Consolidation
As discussed in the Explanatory Note, we have combined the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report. As a result, we present two sets of consolidated financial statements. Both sets of consolidated financial statements include the accounts of the entity, its corporate subsidiaries, and all entities in which it has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity. The Parent Company's consolidated financial statements include the accounts of the Operating Partnership and its subsidiaries as the Parent Company, through its ownership and control over the General Partner, exercises exclusive control over the Operating Partnership. The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant
13
intercompany transactions and balances are eliminated in consolidation. We account for our interests in joint ventures which we do not control using the equity method of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.
Segment Information
We have one reportable segment. We evaluate financial performance using property operating income ("POI"), a non-GAAP measure which consists of rental income, other property income, and mortgage interest income, less rental expenses and real estate taxes. Our chief operating decision maker ("CODM") uses POI to assess the operating performance of our properties and to determine how to reinvest profits for recurring capital expenditures, property redevelopments, or into other parts of the business, such as property acquisitions or to pay higher dividends.
Reconciliation of property operating income to consolidated net income:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||
| Property operating income | $ | $ | $ | $ | |||||||||||||||||||
| General and administrative expense | ( | ( | ( | ( | |||||||||||||||||||
| Depreciation and amortization | ( | ( | ( | ( | |||||||||||||||||||
| Gain on sale of real estate | |||||||||||||||||||||||
| New market tax credit transaction income | |||||||||||||||||||||||
| Other interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Income from partnerships | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
We do not present significant expense disclosures for our reportable segment as operating segment level expenses are not regularly provided to our CODM. However, real estate tax expense is presented on the face of the consolidated statement of comprehensive income.
We do not present a reconciliation of our reportable segment's assets to consolidated assets, as asset information by operating segment is not used by our CODM to allocate resources and capital or assess performance.
Recent Accounting Pronouncements
| Standard | Description | Effect on the financial statements or significant matters | ||||||||||||
| Adopted in 2026: | ||||||||||||||
ASU 2024-04, November 2024, Debt—Debt with Conversion and Other Options (Subtopic 470-20), Induced Conversions of Convertible Debt Instruments | This ASU clarifies the requirements for determining whether to account for certain early settlements of convertible debt instruments as induced conversions or extinguishments. Entities have the option to apply the guidance either (1) prospectively to settlements of convertible debt instruments that occur during fiscal years (and interim periods within those fiscal years) beginning after the effective date or (2) retrospectively. This is effective for all entities for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. | We adopted this ASU as of January 1, 2026. The implementation of this ASU did not have an impact on our consolidated financial statements. | ||||||||||||
14
| Standard | Description | Effect on the financial statements or significant matters | ||||||||||||
| Issued in 2025: | ||||||||||||||
ASU 2025-01, January 2025, and ASU 2024-03, November 2024, Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40) | This ASU requires the disaggregation of specific natural expense categories within relevant income statement captions. Public business entities are required to provide tabular disclosures which disaggregate expenses such as purchases of inventory, employee compensation, depreciation and amortization. A separate total of an entity's selling expenses is also required, along with the disclosure of how the company determines them. The guidance is required to be applied prospectively, but may be applied retrospectively for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. | We are assessing the impact of this ASU on our consolidated financial statements. | ||||||||||||
ASU 2025-09, November 2025, Derivatives and Hedging (Topic 815), Hedge Accounting Improvements | This ASU amends certain aspects of hedge accounting in ASC 815. The main amendments relate to cash flow hedging, but some of the amendments affect certain fair value and net investment hedges. The key changes include: (1) Allows individual forecasted transactions to be hedged in a group if they have similar risk exposure for cash flow hedges. (2) Establishes a model borrowers can use in cash flow hedges of forecasted interest payments on choose-your-rate debt instruments. (3) Expands hedge accounting for forecasted purchases and sales of nonfinancial assets. (4) Eliminates the requirement for the net written option test in certain instances to accommodate differences in the loan and swap markets that resulted from reference rate reform. (5) Eliminates the recognition and presentation mismatch for foreign currency-denominated debt used as both a net investment hedge instrument and a hedged item for interest rate risk. The guidance is applied prospectively for all hedging relationships as of the date of adoption. The guidance applies to all public entities and is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. | We are assessing the impact of this ASU on our consolidated financial statements and do not expect this ASU to have a material impact on our consolidated financial statements. | ||||||||||||
ASU 2025-10, December 2025, Government Grants (Topic 832), Accounting for Government Grants Received by Business Entities | This ASU establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. ASU 2025-10 introduces specific recognition thresholds (probability of compliance and receipt) and detailed disclosures, aiming to improve consistency and comparability in financial reporting for grants. The new guidance is effective for public business entities in annual periods beginning after December 15, 2028 (including interim periods within), with early adoption permitted in any period for which financial statements have not yet been issued. The guidance can be applied on a modified prospective basis, a modified retrospective basis, or a full retrospective basis. | We are assessing the impact of this ASU on our consolidated financial statements and do not expect this ASU to have a material impact on our consolidated financial statements. | ||||||||||||
ASU 2025-11, December 2025, Interim Reporting (Topic 270), Narrow-Scope Improvements | This ASU clarifies interim disclosure requirements including the form and content of such financial statements, adds a comprehensive list of mandatory interim disclosures, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. The guidance can be applied either prospectively or retrospectively. The guidance applies to all public entities and is effective for interim reporting periods with annual reporting periods after December 15, 2027. Early adoption is permitted. | We are assessing the impact of this ASU on our consolidated financial statements. | ||||||||||||
15
| Standard | Description | Effect on the financial statements or significant matters | ||||||||||||
ASU 2025-12, December 2025, Codification Improvements | This ASU clarifies, corrects errors in and makes improvements to several topics within the FASB Codification. The amendments are part of an ongoing FASB project to make non-substantive technical corrections, clarifications, and improvements to make standards more consistent and easier to interpret for preparers and users. The guidance applies to all public entities and is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. | We do not expect this ASU to have a material impact on our consolidated financial statements. | ||||||||||||
Consolidated Statements of Cash Flows—Supplemental Disclosures
The following tables provide supplemental disclosures related to the Consolidated Statements of Cash Flows:
| Nine Months Ended | |||||||||||||||||
| September 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| (In thousands) | |||||||||||||||||
| SUPPLEMENTAL DISCLOSURES: | |||||||||||||||||
| Total interest costs incurred | $ | $ | |||||||||||||||
| Interest capitalized | ( | ( | |||||||||||||||
| Interest expense | $ | $ | |||||||||||||||
| Cash paid for interest, net of amounts capitalized | $ | $ | |||||||||||||||
| Cash paid for income taxes | $ | $ | |||||||||||||||
| NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||||||||||||||||
| Mortgage note receivable repaid with property acquisition | $ | $ | |||||||||||||||
| Common shares repurchased but not yet settled | $ | $ | |||||||||||||||
| Shares issued under dividend reinvestment plan | $ | $ | |||||||||||||||
| DownREIT operating partnership units issued with acquisition | $ | $ | |||||||||||||||
| DownREIT operating partnership units redeemed for common shares | $ | $ | |||||||||||||||
| September 30, | December 31, | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| (In thousands) | |||||||||||||||||
| RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | |||||||||||||||||
| Cash and cash equivalents | $ | $ | |||||||||||||||
| Restricted cash (1) | |||||||||||||||||
| Total cash, cash equivalents, and restricted cash | $ | $ | |||||||||||||||
(1)Restricted cash balances are included in "prepaid expenses and other assets" on our consolidated balance sheets.
NOTE 3—REAL ESTATE
On January 6, 2026, we purchased the fee interest under one of our ground leases at Bethesda Row for $2.5 million.
On March 12, 2026, we acquired the fee interest in Congressional North Shopping Center, a 217,000 square foot, grocery-anchored shopping center in Rockville, Maryland for $72.3 million. This purchase was completed in a multi-step transaction, and was funded with a combination of cash and the issuance of 2,513 downREIT operating partnership units, net of the repayment of two mortgage notes receivable that were included on our consolidated balance sheets at December 31, 2025. Approximately $5.2 million and $0.1 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $1.5 million of net assets acquired were allocated to other liabilities for "below market leases."
On April 17, 2026, we acquired the fee interest in an 88,000 square foot retail building and a parking garage, which will be operated as part of Kingstowne Towne Center, for $19.7 million. Approximately $2.2 million and $0.2 million of net assets
16
acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $2.8 million of net assets acquired were allocated to other liabilities for "below market leases."
During the nine months ended September 30, 2026, we sold a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, a building at our CocoWalk property, and our North Dartmouth property for a combined sales price of $227.1 million, resulting in a net gain of $113.3 million.
NOTE 4—DEBT
On February 19, 2026, we borrowed $250.0 million under the unsecured term loan agreement that we entered into on November 17, 2025. See Note 5 to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional details regarding this term loan.
During the nine months ended September 30, 2026, we repaid the following debt, at par:
| Payoff Amount | Repayment Date | ||||||||||
| (In millions) | |||||||||||
| 1.25% Senior Notes | $ | February 17, 2026 | |||||||||
| Two Hoboken mortgage loans | $ | March 2026 | |||||||||
| Six Hoboken mortgage loans | $ | July 1, 2026 | |||||||||
| Bell Gardens mortgage loan | $ | July 30, 2026 | |||||||||
| 7.48% Debentures | $ | August 17, 2026 | |||||||||
On April 14, 2026, we amended and restated our revolving credit facility, increasing the borrowing capacity from $1.25 billion to $1.4 billion, lowering the spread over SOFR from 77.5 basis points to 72.5 basis points based on our current credit rating, and extending the maturity date to April 12, 2030, plus two six-month extensions, at our option. In addition, we have an option to increase the credit facility through an accordion feature to $2.0 billion. The revolving credit facility requires an annual facility fee which is $2.1 million under the amended credit agreement, based on our current credit rating.
During the three and nine months ended September 30, 2026, the maximum amount of borrowings outstanding under our revolving credit facility was $346.8 million and $699.5 million, respectively. The weighted average amount of borrowings outstanding was $141.7 million and $298.6 million, respectively, and the weighted average interest rate, before amortization of debt fees, was 4.3 % and 4.4 %, respectively, for the three and nine months ended September 30, 2026. At September 30, 2026, our revolving credit facility had no balance outstanding.
Our revolving credit facility, unsecured term loans, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders' equity and debt coverage ratios and a maximum ratio of debt to net worth. As of September 30, 2026, we were in compliance with all default-related debt covenants.
Exchangeable Senior Notes
2031 Exchangeable Senior Notes Issuance
On August 11, 2026, our Operating Partnership issued $460.0 million aggregate principal amount of 3.50 % Exchangeable Senior Notes due 2031 (the "2031 Notes") in a private placement. The 2031 Notes bear interest at an annual rate of 3.50 %, payable semiannually in arrears on February 15th and August 15th of each year, beginning February 15, 2027. The 2031 Notes mature on August 15, 2031, unless earlier exchanged, purchased, or redeemed. Net proceeds after the initial purchaser's discount and offering costs were approximately $450.8 million. Interest expense, including $0.3 2.5 4.0 %. The unamortized debt issuance costs related to the 2031 Notes were $9.0 million at September 30, 2026.
Prior to May 15, 2031, the 2031 Notes will be exchangeable at the option of the holders only upon certain circumstances and during certain periods. On or after May 15, 2031, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2031 Notes, holders may exchange their 2031 Notes at any time. Exchanges will be settled by delivering cash up to the principal amount of the 2031 Notes exchanged, and if applicable, cash, common shares of the Trust, or a combination thereof at our option, in respect of the remainder, if any, of the exchange obligation in excess of the principal amount. If we elect to settle any portion of the exchange obligation in excess of the principal amount with shares of the Trust, an equivalent number of common units will be issued by the Operating Partnership to the Trust. The exchange rate initially equals 7.2179 common shares per $1,000 principal amount of the 2031 Notes (which is equivalent to an exchange price of approximately $138.54 per common share and reflects an exchange premium of approximately 17.5 % based on the closing price of $117.91 on August 6, 2026). The initial exchange rate is subject to adjustment upon the occurrence of certain events,
17
including in the event of a payment of a quarterly dividend in excess of $1.16 per share, but will not be adjusted for any accrued and unpaid interest.
The Operating Partnership may redeem the 2031 Notes, at its option, in whole or in part, on or after August 20, 2029 if the last reported sales price of the common shares has been at least 130 % of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 day consecutive trading period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Operating Partnership provides notice of redemption. The redemption price will be equal to 100 % of the principal amount of the 2031 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
In connection with the 2031 Notes, we entered into privately negotiated capped call transactions with certain financial institutions. The capped call transactions cover, subject to customary adjustments, the number of our common shares that initially underlie the 2031 Notes. The capped call transactions are expected generally to reduce the potential dilution to our common shares upon exchange of any 2031 Notes and/or offset any cash payments we are required to make in excess of the principal amount of the 2031 Notes, with such reduction and/or offset subject to a cap. The cap price of the capped call transaction initially is approximately $165.07 per share, and is subject to certain adjustments under the terms of the capped call transactions. A portion of the proceeds from the 2031 Notes were used to pay the capped call premium of $21.7 million, which is recorded in shareholders' equity for the Trust and capital for the Partnership.
2029 Exchangeable Senior Notes
The Operating Partnership has $485.0 million aggregate principal amount of 3.25 % Exchangeable Senior Notes due 2029 (the “2029 Notes”) outstanding at September 30, 2026. Exchanges will be settled by delivering cash up to the principal amount of the 2029 Notes exchanged, and if applicable, cash, common shares of the Trust, or a combination thereof at our option, in respect of the remainder, if any, of the exchange obligation in excess of the principal amount. See Note 5 to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 for a complete description of the 2029 Notes, including the exchange, settlement and capped call terms. Interest expense related to the 2029 Notes was $4.6 0.7 13.8 2.0 3.9 %. The unamortized debt issuance costs related to the 2029 Notes were $6.2 million at September 30, 2026.
NOTE 5—FAIR VALUE OF FINANCIAL INSTRUMENTS
Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. The fair value of our mortgages payable, notes payable and senior notes and debentures is sensitive to fluctuations in interest rates. Quoted market prices (Level 1) were used to estimate the fair value of our marketable senior notes and debentures and discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable. Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the carrying amount and fair value of our mortgages payable, notes payable and senior notes and debentures is as follows:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Mortgages and notes payable, net | $ | $ | $ | $ | |||||||||||||||||||
| Senior notes and debentures, net | $ | $ | $ | $ | |||||||||||||||||||
| Exchangeable senior notes, net | $ | $ | $ | $ | |||||||||||||||||||
The following table is a summary of our outstanding interest rate swap agreements as of September 30, 2026:
| Interest Rate Swap | Notional Amount | Maturity Date of Related Swap Agreements | Weighted Average Interest Rate | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
| $750 million term loan | $ | March 1, 2028 | % | Prepaid expenses and other assets | $ | |||||||||||||||||||||||||||||||||
| Hoboken | December 15, 2029 | % | Prepaid expenses and other assets | |||||||||||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||||||||||||||
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The fair values of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. For the three and nine months ended September 30, 2026, the value of our interest rate swaps increased $3.9 million and $9.3 million, respectively (including $0.6 million and $1.9 million, respectively, reclassified from other comprehensive income as a decrease to interest expense). A summary of our net financial assets that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
NOTE 6—COMMITMENTS AND CONTINGENCIES
We are sometimes involved in lawsuits, warranty claims, and environmental matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.
We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us (1) as owner of the properties due to certain matters relating to the operation of the properties by the tenant, and (2) where appropriate, due to certain matters relating to the ownership of the properties prior to their acquisition by us.
Under the terms of certain partnership agreements, the partners have the right to exchange their operating partnership units for cash or common shares, at our option. As of September 30, 2026, a total of 526,408 downREIT operating partnership units were outstanding which had a total fair value of approximately $57.0 million, which is calculated by multiplying the outstanding number of downREIT partnership units by our closing stock price on September 30, 2026.
On September 29, 2026, we acquired the approximately 10 % noncontrolling interest in the partnership that owns our Fourth Street property for $1.8 million, bringing our ownership to 100 %.
NOTE 7—SHAREHOLDERS’ EQUITY
The following table provides a summary of dividends declared and paid per share:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Declared | Paid | Declared | Paid | ||||||||||||||||||||||||||||||||
| Common shares | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(1)Amount represents dividends per depository share, each representing 1/1000th of a share.
We have an at-the-market ("ATM") equity program under which we may from time to time offer and sell common shares up to an aggregate offering price of $750.0 million. Our ATM program also allows shares to be sold through forward sales contracts. We intend to use the net proceeds to fund potential acquisition opportunities, fund our development and redevelopment pipeline, repay indebtedness and/or for general corporate purposes.
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During the nine months ended September 30, 2026, we issued 493,374 common shares at a weighted average price per share of $123.92 for net cash proceeds of $60.3 million including paying $0.6 million in commissions and $0.2 million in additional offering expenses related to the sales of these common shares. We have the remaining capacity to issue up to $688.9 million in common shares under our ATM equity program as of September 30, 2026.
On April 10, 2025, we announced that our Board of Trustees had approved the repurchase of up to $300.0 million of our outstanding common shares. During the three and nine months ended September 30, 2026, we repurchased 591,113 65.0 52,838 shares of which settled in October 2026), at a weighted average purchase price per share of $109.94
NOTE 8—SHARE-BASED COMPENSATION PLANS
A summary of share-based compensation expense included in net income is as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||
| Grants of common shares, restricted stock units, and options | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Capitalized share-based compensation | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Share-based compensation expense | $ | $ | $ | $ | ||||||||||||||||||||||||||||
NOTE 9—EARNINGS PER SHARE AND UNIT
We have calculated earnings per share (“EPS”) and earnings per unit ("EPU") under the two-class method. The two-class method is an earnings allocation methodology whereby EPS and EPU for each class of common stock and partnership units, respectively, and participating securities is calculated according to dividends or distributions declared and participation rights in undistributed earnings. For the three and nine months ended September 30, 2026 and 2025, we had 0.3
The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive:
•exercise of 3,019 1,190
•conversions of downREIT operating partnership units for the three months ended September 30, 2026 and the three and nine months ended September 30, 2025,
•conversions of 5.417
•the issuance of 0.5
Potentially issuable shares and units in exchange for the 3.50 3.25
20
Federal Realty Investment Trust Earnings per Share
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||
| NUMERATOR | |||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||||||||
| Less: Preferred share dividends | ( | ( | ( | ( | |||||||||||||||||||||||||
| Less: Income from operations attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||||||||
| Less: Earnings allocated to unvested shares | ( | ( | ( | ( | |||||||||||||||||||||||||
| Net income available for common shareholders, basic | |||||||||||||||||||||||||||||
| Add: Income attributable to downREIT operating partnership units | |||||||||||||||||||||||||||||
| Net income available for common shareholders, diluted | $ | $ | $ | $ | |||||||||||||||||||||||||
| DENOMINATOR | |||||||||||||||||||||||||||||
| Weighted average common shares outstanding, basic | |||||||||||||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||||||||
| DownREIT operating partnership units | |||||||||||||||||||||||||||||
| Weighted average common shares outstanding, diluted | |||||||||||||||||||||||||||||
| EARNINGS PER COMMON SHARE, BASIC & DILUTED: | |||||||||||||||||||||||||||||
| Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||||||||
Federal Realty OP LP Earnings per Unit
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (In thousands, except per unit data) | ||||||||||||||||||||||||||
| NUMERATOR | ||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||
| Less: Preferred unit distributions | ( | ( | ( | ( | ||||||||||||||||||||||
| Less: Income from operations attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Less: Earnings allocated to unvested units | ( | ( | ( | ( | ||||||||||||||||||||||
| Net income available for common unit holders, basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Add: Income attributable to downREIT operating partnership units | ||||||||||||||||||||||||||
| Net income available for common unit holders, diluted | $ | $ | $ | $ | ||||||||||||||||||||||
| DENOMINATOR | ||||||||||||||||||||||||||
| Weighted average common units outstanding, basic | ||||||||||||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||||||||
| DownREIT operating partnership units | ||||||||||||||||||||||||||
| Weighted average common units outstanding, diluted | ||||||||||||||||||||||||||
| EARNINGS PER COMMON UNIT, BASIC & DILUTED: | ||||||||||||||||||||||||||
| Net income available for common unit holders | $ | $ | $ | $ | ||||||||||||||||||||||
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NOTE 10—SUBSEQUENT EVENTS
On October 1, 2026, we acquired the fee interest in The Summit, an 870,000 square foot retail shopping center in Birmingham, Alabama, for $508.0 million. The acquisition was funded on a short-term basis with cash on hand and our revolving credit facility.
During October 2026, we repurchased and retired an additional 278,635 common shares under our common share repurchase program for $29.7 million, at a weighted average purchase price per share of $106.44 .
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
The following discussion should be read in conjunction with the consolidated interim financial statements and notes thereto appearing in Item 1 of this report and the more detailed information contained in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2026.
Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.
The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:
•risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire or to fill existing vacancy;
•risks that we may not be able to proceed with or obtain necessary approvals for any development, redevelopment or renovation project, and that completion of anticipated or ongoing property development, redevelopment, or renovation projects that we do pursue may cost more, take more time to complete or fail to perform as expected;
•risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
•risks that our growth will be limited if we cannot obtain additional capital, or if the costs of capital we obtain are significantly higher than historical levels;
•risks associated with general economic conditions, including inflation, tariffs, and local economic conditions in our geographic markets;
•risks of financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense;
•risks related to the Trust's status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to the Trust's status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT; and
•risks related to natural disasters, climate change and public health crises (such as worldwide pandemics), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address them, may precipitate or materially exacerbate one or more of the above-mentioned risks, and may significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this Quarterly Report on Form 10-Q. You should carefully review the risks and the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025 and under Part II, Item 1A in this Quarterly Report on Form 10-Q, before making any investments in us.
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Overview
Federal Realty Investment Trust is a leader in the ownership, operation, and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions that we believe have strong economic and demographic fundamentals. Founded in 1962, our mission is to deliver long-term, sustainable growth through investing in communities where we believe retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations, which we believe reflect our ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities.
The Parent Company, which is a REIT, conducts substantially all of its operations and owns substantially all of its assets through the Operating Partnership. The Parent Company owns 100% of the limited liability company interests of, is the sole member of and exercises exclusive control over Federal Realty GP LLC, which is the sole general partner of the Operating Partnership. The Parent Company does not expect to have substantial assets or liabilities other than through its investment in the Operating Partnership. Unless stated otherwise or the context otherwise requires, "we," "our," and "us" means the Trust and its business and operations conducted through its directly and indirectly owned subsidiaries, including the Operating Partnership.
As of September 30, 2026, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 102 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet. In total, the real estate projects were 96.5% leased and 93.8% occupied at September 30, 2026.
General Economic Conditions
Significant uncertainty continues within the macro-economic and political environment including elevated inflation and interest rates, geopolitical instability, changes in tariffs and their impact on trade and prices, increases or decreases in federal and state government spending, and potentially worsening economic conditions, which presents risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy. We believe the actions we have taken to maintain a strong financial position and reinforce our liquidity will continue to mitigate the negative short-term impacts of the current environment. The extent of the future effects on our business, results of operations, cash flows, and growth strategies is highly uncertain and will ultimately depend on future developments, none of which can be predicted.
See further discussion of the impact of current economic conditions on our business throughout Item 2.
Critical Accounting Policies
There have been no significant changes to the critical accounting policies disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K.
Property Acquisitions and Dispositions
On January 6, 2026, we purchased the fee interest under one of our ground leases at Bethesda Row for $2.5 million.
On March 12, 2026, we acquired the fee interest in Congressional North Shopping Center, a 217,000 square foot, grocery-anchored shopping center in Rockville, Maryland for $72.3 million. This purchase was completed in a multi-step transaction, and was funded with a combination of cash and the issuance of 2,513 downREIT operating partnership units, net of the repayment of two mortgage notes receivable that were included on our consolidated balance sheets at December 31, 2025. Approximately $5.2 million and $0.1 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $1.5 million of net assets acquired were allocated to other liabilities for "below market leases."
On April 17, 2026, we acquired the fee interest in an 88,000 square foot retail building and a parking garage, which will be operated as part of Kingstowne Towne Center, for $19.7 million. Approximately $2.2 million and $0.2 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $2.8 million of net assets acquired were allocated to other liabilities for "below market leases."
During the nine months ended September 30, 2026, we sold a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, a building at our CocoWalk property, and our North Dartmouth property for a combined sales price of $227.1 million, resulting in a net gain of $113.3 million.
On October 1, 2026, we acquired the fee interest in The Summit, an 870,000 square foot retail shopping center in Birmingham, Alabama, for $508.0 million.
Debt Transactions
On February 19, 2026, we borrowed $250.0 million under the unsecured term loan agreement that we entered into on November 17, 2025. See Note 5 to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional details regarding this term loan.
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During 2026, we repaid the following debt, at par:
| Payoff Amount | Repayment Date | ||||||||||
| (In millions) | |||||||||||
| 1.25% Senior Notes | $ | 400.0 | February 17, 2026 | ||||||||
| Two Hoboken mortgage loans | $ | 2.1 | March 2026 | ||||||||
| Six Hoboken mortgage loans | $ | 10.5 | July 1, 2026 | ||||||||
| Bell Gardens mortgage loan | $ | 10.7 | July 30, 2026 | ||||||||
| 7.48% Debentures | $ | 29.2 | August 17, 2026 | ||||||||
On April 14, 2026, we amended and restated our revolving credit facility, increasing the borrowing capacity from $1.25 billion to $1.4 billion, lowering the spread over SOFR from 77.5 basis points to 72.5 basis points based on our current credit rating, and extending the maturity date to April 12, 2030, plus two six-month extensions at our option. In addition, we have an option to increase the credit facility through an accordion feature to $2.0 billion. The revolving credit facility requires an annual facility fee which is $2.1 million under the amended credit agreement, based on our current credit rating. For additional information about the amendment and restatement of our revolving credit facility, see the Current Report on Form 8-K we filed on April 15, 2026.
During the nine months ended September 30, 2026, the maximum amount of borrowings outstanding under our revolving credit facility was $699.5 million. The weighted average amount of borrowings outstanding was $298.6 million and the weighted average interest rate, before amortization of debt fees, was 4.4% for the nine months ended September 30, 2026. At September 30, 2026, our revolving credit facility had no balance outstanding.
Our revolving credit facility, unsecured term loans, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders' equity and debt coverage ratios and a maximum ratio of debt to net worth. As of September 30, 2026, we were in compliance with all default-related debt covenants.
Exchangeable Senior Notes Issuance
On August 11, 2026, our Operating Partnership issued $460.0 million aggregate principal amount of 3.50% Exchangeable Senior Notes due 2031 (the "2031 Notes") in a private placement. The 2031 Notes bear interest at an annual rate of 3.50%, payable semiannually in arrears on February 15th and August 15th of each year, beginning February 15, 2027. The 2031 Notes mature on August 15, 2031, unless earlier exchanged, purchased, or redeemed. Net proceeds after the initial purchaser's discount and offering costs were approximately $450.8 million. Interest expense, including $0.3 million of debt issuance cost amortization, was $2.5 million related to the 2031 Notes for the three and nine months ended September 30, 2026. Including the debt issuance cost amortization, the current effective interest rate on the 2031 Notes is approximately 4.0%. The unamortized debt issuance costs related to the 2031 Notes were $9.0 million at September 30, 2026.
A portion of the proceeds from the 2031 Notes was used to enter into privately negotiated capped call transactions with certain financial institutions. The capped call premium of $21.7 million is recorded in shareholders' equity for the Trust and capital for the Partnership. The capped call transactions cover, subject to customary adjustments, the number of our common shares that initially underlie the 2031 Notes, and are expected generally to reduce the potential dilution to our common shares upon exchange of any 2031 Notes and/or offset any cash payments we are required to make in excess of the principal amount of the 2031 Notes, with such reduction and/or offset subject to a cap.
See Note 4 to our consolidated financial statements for additional information, including the exchange, redemption, and capped call terms for the 2031 Notes.
Equity Transactions
We have an at-the-market ("ATM") equity program under which we may from time to time offer and sell common shares up to an aggregate offering price of $750.0 million. Our ATM program also allows shares to be sold through forward sales contracts. We intend to use the net proceeds to fund potential acquisition opportunities, fund our development and redevelopment pipeline, repay indebtedness and/or for general corporate purposes.
During the nine months ended September 30, 2026, we issued 493,374 common shares under the ATM program at a weighted average price per share of $123.92 for net cash proceeds of $60.3 million including paying $0.6 million in commissions and $0.2 million in additional offering expenses related to the sales of these common shares. We have the remaining capacity to issue up to $688.9 million in common shares under our ATM equity program as of September 30, 2026.
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On April 10, 2025, we announced that our Board of Trustees had approved the repurchase of up to $300.0 million of our outstanding common shares. During the three and nine months ended September 30, 2026 and during October 2026, we have repurchased and retired a total of 869,748 common shares for $94.7 million, at a weighted average purchase price per share of $108.82. Common shares we repurchase are automatically retired and considered authorized, but unissued shares.
Recently Issued Accounting Pronouncements
See Note 2 to the consolidated financial statements.
Capitalized Costs
Certain external and internal costs directly related to the development, redevelopment and leasing of real estate, including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved, are capitalized. We capitalized certain external and internal costs related to both development and redevelopment activities of $128 million and $6 million, respectively, for the nine months ended September 30, 2026, and $121 million and $6 million for the nine months ended September 30, 2025. We capitalized external and internal costs related to other property improvements of $80 million and $4 million, respectively, for the nine months ended September 30, 2026, and $72 million and $4 million, respectively, for the nine months ended September 30, 2025. We capitalized external and internal costs related to leasing activities of $12 million and $4 million, respectively, for the nine months ended September 30, 2026, and $15 million and $3 million, respectively, for the nine months ended September 30, 2025. The amount of capitalized internal costs for salaries and related benefits for development and redevelopment activities, other property improvements, and leasing activities were $6 million, $3 million, and $4 million, respectively, for the nine months ended September 30, 2026, and $6 million, $3 million, and $3 million, respectively, for the nine months ended September 30, 2025. Total capitalized costs were $234 million and $220 million for the nine months ended September 30, 2026 and 2025, respectively.
Outlook
Our long-term growth strategy is focused on growth in earnings, funds from operations, and cash flows primarily through a combination of the following:
•growth in our comparable property portfolio,
•expansion of our portfolio through property acquisitions, and
•growth in our portfolio from property redevelopments and expansions.
Although general economic impacts of elevated levels of inflation and higher interest rates are impacting us in the short-term, our long-term focus has not changed. See our Annual Report on Form 10-K filed on February 12, 2026, for additional discussion of our long-term strategies.
Our comparable property growth is primarily driven by increases in rental rates on new leases and lease renewals, changes in portfolio occupancy, and the redevelopment of those assets. Over the long-term, the infill nature and strong demographics of our properties provide a strategic advantage allowing us to maintain relatively high occupancy and generally increase rental rates. We continue to experience strong demand for our commercial space as evidenced by the 2.6 million square feet of comparable space leasing we've completed in the last twelve months, and the 2.7% spread between our leased rate of 96.5% and our occupied rate of 93.8%. However, the effects of inflationary pressures and elevated interest rates continue to negatively impact our business with the largest impacts being higher interest costs, increased material costs, and higher operating costs. Additionally, significant impacts from tariffs or supply chain disruptions could also result in extended time frames and/or increased costs for completion of our projects and tenant build-outs, which could delay the commencement of rent payments under new leases. Similarly, if our tenants experience unexpected impacts of tariffs supporting their own products, staffing issues due to labor shortages, significant disruptions in supply chains, or are otherwise impacted by worsening economic conditions, their ability to pay rent may be adversely affected. We continue to monitor these macroeconomic developments and are working with our tenants and our vendors to limit the overall impact to our business.
We believe the locations and nature of our centers and diverse tenant base partially mitigate any potential negative changes in the economic environment. However, any significant reduction in our tenants' abilities to pay base rent, percentage rent or other charges will adversely affect our financial condition and results of operations. We seek to maintain a mix of strong national, regional, and local retailers.
We continue to have several development projects in process being delivered as follows:
•Construction on Santana West includes an eight-story 369,000 square foot office building, which is expected to cost between $325 million and $335 million. All of the space is leased, of which 327,000 square feet is occupied.
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•Construction of a 258-unit residential project at Santana Row, which is expected to cost between $140 million and $148 million.
•Throughout the portfolio, we currently have redevelopment projects underway with a projected total cost of approximately $321 million that we expect to stabilize over the next several years.
The above includes our best estimates based on information currently known, however, the completion of construction, final costs, and the timing of leasing and openings may be further impacted by the current environment including the duration and severity of the economic impacts of broader, as well as local, economic conditions, higher interest rates, inflation, tariffs, and higher operating costs.
The development of future phases of Assembly Row, Pike & Rose, Santana Row, and other properties will be pursued opportunistically based on, among other things, market conditions, tenant demand, and our evaluation of whether those phases will generate an appropriate financial return.
We continue to review acquisition opportunities that complement our portfolio and provide long-term growth opportunities. Initially, some of our acquisitions do not contribute significantly to earnings growth; however, we believe they provide long-term re-leasing growth, redevelopment opportunities, and other strategic opportunities. Any growth from acquisitions is contingent on our ability to find properties that meet our qualitative standards at prices that meet our financial hurdles. Changes in interest rates may affect our success in achieving earnings growth through acquisitions by affecting both the price that must be paid to acquire a property, as well as our ability to economically finance the property acquisition. Generally, our acquisitions are initially financed by available cash and/or borrowings under our revolving credit facility which may be repaid later with funds raised through the issuance of new equity or new long-term debt. We may also finance our acquisitions through the issuance of common shares, preferred shares, or units in the Operating Partnership, as well as through assumed mortgages and property sales.
At September 30, 2026, the leasable commercial square feet in our properties was 96.5% leased and 93.8% occupied. The leased rate is higher than the occupied rate due to leased spaces that are being redeveloped or improved or that are awaiting permits and, therefore, are not yet ready to be occupied. Our occupancy and leased rates are subject to 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 2026, we signed leases for a total of 590,000 square feet of retail space including 532,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 14% on a cash basis. New leases for comparable spaces were signed for 323,000 square feet, with an average rental increase of 20% on a cash basis. Renewals for comparable spaces were signed for 210,000 square feet at a 7% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $36.35 per square foot, of which $58.37 per square foot was for new leases and $2.44 per square foot was for renewals for the three months ended September 30, 2026.
For the nine months ended September 30, 2026, we signed leases for a total of 2,103,000 square feet of retail space including 2,001,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 14% on a cash basis. New leases for comparable spaces were signed for 941,000 square feet, with an average rental increase of 26% on a cash basis. Renewals for comparable spaces were signed for 1,059,000 square feet at a 6% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $27.88 per square foot, of which $57.38 per square foot was for new leases and $1.67 per square foot was for renewals for the nine months ended September 30, 2026.
The rental increases associated with comparable spaces generally include all leases signed for retail space in arm's-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 be 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 in this calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, capital investment made in the space and the specific lease structure. Tenant improvements and incentives include the total dollars committed for the improvement (fit out) of a space as it relates to a specific lease. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements. Costs related to tenant improvements require judgment by management in determining what are costs specific to the tenant and not deferred maintenance on the space.
In the past four years, we have executed comparable space leases for 2.0 to 2.4 million square feet of retail space each year and expect the volume in 2026 will be at the high end or above these historical averages. Although we expect overall positive
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increases in annual rent for comparable spaces, changes in annual rent for any individual lease or combinations of individual leases reported in any particular period may be positive or negative and we can provide no assurance that the annual rents on comparable space leases will continue to increase at historical levels, if at all. A decline in current economic conditions could adversely impact our volume of leasing activity and the amount of rent we are able to charge to new or renewing tenants.
The leases signed in 2026 generally become effective over the following two years though some may not become effective until 2029 and beyond. Further, there is risk that some new tenants will not ultimately take possession of their space and that tenants for both new and renewal leases may not pay all of their contractual rent due to operating, financing or other matters. However, our historical increases in rental rates do provide information about the tenant/landlord relationship and the potential increase we may achieve in rental income over time.
Comparable Properties
Throughout this section, we have provided certain information on a “comparable property” basis. Information provided on a comparable property basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties that are currently under development or are being repositioned for significant redevelopment and investment. For the three and nine months ended September 30, 2026, all or a portion of 96 properties and 94 properties, respectively, were considered comparable properties and seven properties were considered non-comparable properties. For the nine months ended September 30, 2026, three properties and two portions of properties were removed from comparable properties, as they were sold; all compared to the designations as of December 31, 2025. While there is judgment surrounding changes in designations, we typically move non-comparable properties to comparable properties once they have stabilized, which is typically considered 90% physical occupancy or when the growth expected from the redevelopment has been included in the comparable periods. We typically remove properties from comparable properties when the repositioning of the asset has commenced and has or is expected to have a significant impact on property operating income within the calendar year. Acquisitions are moved to comparable properties once we have owned the property for the entirety of comparable periods and the property is not under development or being repositioned for significant redevelopment and investment.
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
| Change | |||||||||||||||||||||||
| 2026 | 2025 | Dollars | % | ||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||
| Rental income | $ | 329,644 | $ | 313,183 | $ | 16,461 | 5.3 | % | |||||||||||||||
| Other property income | 9,352 | 8,789 | 563 | 6.4 | % | ||||||||||||||||||
| Mortgage interest income | 28 | 281 | (253) | (90.0) | % | ||||||||||||||||||
| Total property revenue | 339,024 | 322,253 | 16,771 | 5.2 | % | ||||||||||||||||||
| Rental expenses | 69,317 | 67,481 | 1,836 | 2.7 | % | ||||||||||||||||||
| Real estate taxes | 39,811 | 38,178 | 1,633 | 4.3 | % | ||||||||||||||||||
| Total property expenses | 109,128 | 105,659 | 3,469 | 3.3 | % | ||||||||||||||||||
| Property operating income (1) | 229,896 | 216,594 | 13,302 | 6.1 | % | ||||||||||||||||||
| General and administrative expense | (13,254) | (11,649) | (1,605) | 13.8 | % | ||||||||||||||||||
| Depreciation and amortization | (100,260) | (94,277) | (5,983) | 6.3 | % | ||||||||||||||||||
| Gain on sale of real estate | 473 | — | 473 | 100.0 | % | ||||||||||||||||||
| Operating income | 116,855 | 110,668 | 6,187 | 5.6 | % | ||||||||||||||||||
| Other interest income | 1,069 | 845 | 224 | 26.5 | % | ||||||||||||||||||
| Interest expense | (49,740) | (47,619) | (2,121) | 4.5 | % | ||||||||||||||||||
| Income from partnerships | 801 | 605 | 196 | 32.4 | % | ||||||||||||||||||
| Total other, net | (47,870) | (46,169) | (1,701) | 3.7 | % | ||||||||||||||||||
| Net income | 68,985 | 64,499 | 4,486 | 7.0 | % | ||||||||||||||||||
| Net income attributable to noncontrolling interests | (2,816) | (2,850) | 34 | (1.2) | % | ||||||||||||||||||
| Net income attributable to the Trust | $ | 66,169 | $ | 61,649 | $ | 4,520 | 7.3 | % | |||||||||||||||
(1)Property operating income is a non-GAAP measure that consists of total property revenue, less rental expenses and real estate taxes. This measure is used internally to evaluate the performance of property operations and we consider it to be a
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significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of operating income to property operating income for the three months ended September 30, 2026 and 2025 is as follows:
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| Operating income | $ | 116,855 | $ | 110,668 | |||||||
| General and administrative | 13,254 | 11,649 | |||||||||
| Depreciation and amortization | 100,260 | 94,277 | |||||||||
| Gain on sale of real estate | (473) | — | |||||||||
| Property operating income | $ | 229,896 | $ | 216,594 | |||||||
Property Revenues
Total property revenue increased $16.8 million, or 5.2%, to $339.0 million in the three months ended September 30, 2026 compared to $322.3 million in the three months ended September 30, 2025. The percentage occupied at our shopping centers was 93.8% at both September 30, 2026 and 2025. 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 $12.8 million from acquisitions,
•an increase of $6.4 million from comparable properties primarily related to higher rental rates of approximately $2.7 million, a $2.1 million increase in recoveries from tenants on higher occupancy and expenses, higher average occupancy of approximately $1.8 million, and a $1.1 million increase in parking income, partially offset by a $0.9 million decrease in lease termination fee income, and
•an increase of $5.6 million from non-comparable properties primarily driven by occupancy increases,
partially offset by
•a decrease of $7.6 million from property dispositions.
Property Expenses
Total property expenses increased $3.5 million, or 3.3%, to $109.1 million in the three months ended September 30, 2026 compared to $105.7 million in the three months ended September 30, 2025. Changes in the components of property expenses are discussed below.
Rental Expenses
Rental expenses increased $1.8 million, or 2.7%, to $69.3 million in the three months ended September 30, 2026 compared to $67.5 million in the three months ended September 30, 2025. This increase is primarily due to the following:
•an increase of $2.6 million from acquisitions, and
•an increase of $1.4 million from non-comparable properties due primarily to openings at Santana West and the residential building at Bala Cynwyd on City Avenue, and
partially offset by
•a decrease of $1.7 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 21.0% in the three months ended September 30, 2026 from 21.5% in the three months ended September 30, 2025.
Real Estate Taxes
Real estate tax expense increased $1.6 million, or 4.3%, to $39.8 million in the three months ended September 30, 2026 compared to $38.2 million in the three months ended September 30, 2025. This increase is primarily due to the following:
•an increase of $1.4 million from comparable properties due primarily to higher assessments, and
•an increase of $1.1 million from acquisitions,
partially offset by
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•a decrease of $1.1 million from property dispositions.
Property Operating Income
Property operating income increased $13.3 million, or 6.1%, to $229.9 million in the three months ended September 30, 2026 compared to $216.6 million in the three months ended September 30, 2025. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, and openings at Santana West and Pike & Rose Phase IV, partially offset by property dispositions.
Other Operating
General and Administrative Expense
General and administrative expense increased $1.6 million, or 13.8%, to $13.3 million in the three months ended September 30, 2026 compared to $11.6 million in the three months ended September 30, 2025. This increase is due primarily to higher personnel related costs.
Depreciation and Amortization
Depreciation and amortization expense increased $6.0 million, or 6.3%, to $100.3 million in the three months ended September 30, 2026 compared to $94.3 million in the three months ended September 30, 2025. This increase is due primarily to acquisitions and openings at Santana West and the residential building at Bala Cynwyd on City Avenue, partially offset by property dispositions.
Gain on Sale of Real Estate
The $0.5 million gain on sale of real estate for the three months ended September 30, 2026 is primarily due to the sale of our North Dartmouth property.
Operating Income
Operating income increased $6.2 million, or 5.6%, to $116.9 million in the three months ended September 30, 2026 compared to $110.7 million in the three months ended September 30, 2025. This increase is primarily driven by higher rental rates and average occupancy, acquisitions, and openings at Santana West, partially offset by property dispositions.
Other
Interest Expense
Interest expense increased $2.1 million, or 4.5%, to $49.7 million in the three months ended September 30, 2026 compared to $47.6 million in the three months ended September 30, 2025. This increase is due primarily to the following:
•an increase of $1.4 million due to higher weighted average borrowings, and
•an increase of $1.0 million due to a higher overall weighted average borrowing rate,
partially offset by
•an increase of $0.2 million in capitalized interest.
Gross interest costs were $52.5 million and $50.2 million in the three months ended September 30, 2026 and 2025, respectively. Capitalized interest was $2.8 million and $2.5 million for the three months ended September 30, 2026 and 2025, respectively.
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RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
| Change | ||||||||||||||||||||||||||
| 2026 | 2025 | Dollars | % | |||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||
| Rental income | $ | 988,198 | $ | 917,954 | $ | 70,244 | 7.7 | % | ||||||||||||||||||
| Other property income | 27,039 | 24,143 | 2,896 | 12.0 | % | |||||||||||||||||||||
| Mortgage interest income | 577 | 833 | (256) | (30.7) | % | |||||||||||||||||||||
| Total property revenue | 1,015,814 | 942,930 | 72,884 | 7.7 | % | |||||||||||||||||||||
| Rental expenses | 208,505 | 196,894 | 11,611 | 5.9 | % | |||||||||||||||||||||
| Real estate taxes | 117,859 | 111,426 | 6,433 | 5.8 | % | |||||||||||||||||||||
| Total property expenses | 326,364 | 308,320 | 18,044 | 5.9 | % | |||||||||||||||||||||
| Property operating income (1) | 689,450 | 634,610 | 54,840 | 8.6 | % | |||||||||||||||||||||
| General and administrative expense | (38,649) | (34,449) | (4,200) | 12.2 | % | |||||||||||||||||||||
| Depreciation and amortization | (300,100) | (270,464) | (29,636) | 11.0 | % | |||||||||||||||||||||
| Gain on sale of real estate | 113,801 | 77,672 | 36,129 | 46.5 | % | |||||||||||||||||||||
| New market tax credit transaction income | — | 14,176 | (14,176) | (100.0) | % | |||||||||||||||||||||
| Operating income | 464,502 | 421,545 | 42,957 | 10.2 | % | |||||||||||||||||||||
| Other interest income | 2,672 | 2,493 | 179 | 7.2 | % | |||||||||||||||||||||
| Interest expense | (148,864) | (134,692) | (14,172) | 10.5 | % | |||||||||||||||||||||
| Income from partnerships | 298 | 1,687 | (1,389) | (82.3) | % | |||||||||||||||||||||
| Total other, net | (145,894) | (130,512) | (15,382) | 11.8 | % | |||||||||||||||||||||
| Net income | 318,608 | 291,033 | 27,575 | 9.5 | % | |||||||||||||||||||||
| Net income attributable to noncontrolling interests | (7,638) | (9,700) | 2,062 | (21.3) | % | |||||||||||||||||||||
| Net income attributable to the Trust | $ | 310,970 | $ | 281,333 | $ | 29,637 | 10.5 | % | ||||||||||||||||||
(1)Property operating income is a non-GAAP measure that consists of total property revenue, less rental expenses and real estate taxes. This measure is used internally to evaluate the performance of property operations and we consider it to be a significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of operating income to property operating income for the nine months ended September 30, 2026 and 2025 is as follows:
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| Operating income | $ | 464,502 | $ | 421,545 | |||||||
| General and administrative | 38,649 | 34,449 | |||||||||
| Depreciation and amortization | 300,100 | 270,464 | |||||||||
| Gain on sale of real estate | (113,801) | (77,672) | |||||||||
| New market tax credit transaction income | — | (14,176) | |||||||||
| Property operating income | $ | 689,450 | $ | 634,610 | |||||||
Property Revenues
Total property revenue increased $72.9 million, or 7.7%, to $1.0 billion in the nine months ended September 30, 2026 compared to $942.9 million in the nine months ended September 30, 2025. The percentage occupied at our shopping centers was 93.8% at both September 30, 2026 and 2025. 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 $53.7 million from acquisitions,
•an increase of $26.4 million from comparable properties primarily related to higher rental rates of approximately $10.4 million, a $6.7 million increase in recoveries from tenants on higher occupancy and
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expenses, higher average occupancy of approximately $4.1 million, a $3.6 million increase in parking income, and a $2.8 million increase in lease termination fee income, and
•an increase of $17.7 million from non-comparable properties primarily driven by occupancy increases,
partially offset by
•a decrease of $24.9 million from property dispositions.
Property Expenses
Total property expenses increased $18.0 million, or 5.9%, to $326.4 million in the nine months ended September 30, 2026 compared to $308.3 million in the nine months ended September 30, 2025. Changes in the components of property expenses are discussed below.
Rental Expenses
Rental expenses increased $11.6 million, or 5.9%, to $208.5 million in the nine months ended September 30, 2026 compared to $196.9 million in the nine months ended September 30, 2025 due primarily to the following:
•an increase of $9.0 million from acquisitions,
•an increase of $5.2 million from non-comparable properties due primarily to occupancy increases, and
•an increase of $5.2 million from comparable properties due primarily to higher snow removal costs and higher utilities,
partially offset by
•a decrease of $6.7 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 21.1% in the nine months ended September 30, 2026 from 21.4% in the nine months ended September 30, 2025.
Real Estate Taxes
Real estate tax expense increased $6.4 million, or 5.8%, to $117.9 million in the nine months ended September 30, 2026 compared to $111.4 million in the nine months ended September 30, 2025 due primarily to the following:
•an increase of $5.7 million from acquisitions,
•an increase of $3.3 million from comparable properties due primarily to higher assessments, and
•an increase of $0.9 million from non-comparable properties due primarily to openings at Santana West,
partially offset by
•a decrease of $3.6 million from property dispositions.
Property Operating Income
Property operating income increased $54.8 million, or 8.6%, to $689.5 million in the nine months ended September 30, 2026 compared to $634.6 million in the nine months ended September 30, 2025. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, openings at Santana West and Pike & Rose Phase IV, and higher lease termination fee income, partially offset by property dispositions.
Other Operating
General and Administrative Expense
General and administrative expense increased $4.2 million, or 12.2%, to $38.6 million in the nine months ended September 30, 2026 compared to $34.4 million in the nine months ended September 30, 2025. This increase is due primarily to higher personnel related costs.
Depreciation and Amortization
Depreciation and amortization expense increased $29.6 million, or 11.0%, to $300.1 million in the nine months ended September 30, 2026 compared to $270.5 million in the nine months ended September 30, 2025. This increase is due primarily to acquisitions, openings at Santana West and our residential building at Bala Cynwyd on City Avenue, and our investment in comparable properties, partially offset by property dispositions.
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Gain on Sale of Real Estate
The $113.8 million gain on sale of real estate for the nine months ended September 30, 2026 is primarily due to the sale of a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, a building at our CocoWalk property, and our North Dartmouth property.
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.
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.
Operating Income
Operating income increased $43.0 million, or 10.2%, to $464.5 million in the nine months ended September 30, 2026 compared to $421.5 million in the nine months ended September 30, 2025. This increase is primarily driven by higher gains on sale of real estate, higher rental rates and average occupancy, acquisitions, openings at Santana West, and higher lease termination fee income, partially offset by property dispositions, and income related to the sale of new market tax credits in 2025.
Other
Interest Expense
Interest expense increased $14.2 million, or 10.5%, to $148.9 million in the nine months ended September 30, 2026 compared to $134.7 million in the nine months ended September 30, 2025. This increase is due primarily to the following:
•an increase of $9.1 million due to higher weighted average borrowings,
•an increase of $3.1 million due to a higher overall weighted average borrowing rate, and
•a decrease of $2.0 million in capitalized interest.
Gross interest costs were $157.3 million and $145.1 million in the nine months ended September 30, 2026 and 2025, respectively. Capitalized interest was $8.4 million and $10.4 million for the nine months ended September 30, 2026 and 2025, respectively.
Income from partnerships
Income from partnerships decreased $1.4 million, or 82.3%, to $0.3 million in the nine months ended September 30, 2026 compared to $1.7 million in the nine months ended September 30, 2025. This decrease is primarily due to certain investments in partnerships that were written off during the period.
Net income attributable to noncontrolling interests
Net income attributable to noncontrolling interests decreased $2.1 million, or 21.3%, to $7.6 million in the nine months ended September 30, 2026 compared to $9.7 million in the nine months ended September 30, 2025. This decrease is primarily attributable to the new market tax credit transaction income in 2025.
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Liquidity and Capital Resources
Due to the nature of our business and strategy, we typically generate significant amounts of cash from operations which is largely paid to our common and preferred shareholders in the form of dividends because as a REIT, the Trust is generally required to make annual distributions to shareholders of at least 90% of our taxable income (cash dividends paid in the nine months ended September 30, 2026 were approximately $299.3 million). Remaining cash flow from operations after regular debt service requirements (including debt service relating to additional or replacement debt, as well as scheduled debt maturities) and dividend payments is used to fund recurring and non-recurring capital projects (such as tenant improvements and redevelopments). We maintain an unsecured $1.4 billion revolving credit facility to fund short-term cash flow needs and also look to the public and private debt and equity markets, joint venture relationships, and property dispositions to fund capital expenditures on a long-term basis.
During 2026, we sold properties for net sales proceeds of $222.5 million. On April 14, 2026, we amended and restated our revolving credit facility increasing the borrowing capacity from $1.25 billion to $1.4 billion, lowering the spread over SOFR from 77.5 basis points to 72.5 basis points based on our current credit rating, and extending the maturity date to April 12, 2030, plus two six-month extensions, at our option. In addition, we have an option to increase the credit facility through an accordion feature to $2.0 billion. On August 11, 2026, we issued $460.0 million aggregate principal amount of 3.50% exchangeable senior notes that mature on August 15, 2031. As of September 30, 2026, we have $890.7 million of debt maturing in the next twelve months, of which $200.0 million is the mortgage loan secured by Bethesda Row, for which we have a one-year extension option to extend the maturity date to December 28, 2027.
As of September 30, 2026, we had cash and cash equivalents of $109.7 million and no balance outstanding on our $1.4 billion revolving credit facility. We also have the capacity to issue up to $688.9 million in common shares under our ATM equity program.
For the nine months ended September 30, 2026, the weighted average amount of borrowings outstanding on our revolving credit facility was $298.6 million, and the weighted average interest rate, before amortization of debt fees, was 4.4%.
On October 1, 2026, we acquired The Summit, an 870,000 square foot retail shopping center in Birmingham, Alabama, for $508.0 million; the acquisition was funded on a short-term basis with cash on hand and our revolving credit facility. During October 2026, we repurchased and retired 331,473 common shares (52,838 shares of which consisted of settlements of repurchases effected in September 2026) under our common share repurchase program for $35.4 million.
Our overall capital requirements for the remainder of 2026 will depend on additional acquisition opportunities, the level and general timing of our redevelopment and development activities, and the overall economic environment. In addition, we currently have development and redevelopment projects in various stages of construction with remaining costs of $259 million. We expect to incur the majority of these costs in the next two years. We expect overall capital costs (excluding acquisitions) to be at levels consistent with 2025.
We believe cash flow from operations, the cash on our balance sheet, and our $1.4 billion revolving credit facility will allow us to continue to operate our business in the short-term. Given our ability to access the capital markets, we also expect debt or equity financing to be available to us, although newly issued debt would likely be at higher interest rates than the debt we are refinancing. We also have the ability to delay the timing of certain development and redevelopment projects as well as limit future acquisitions, reduce our operating expenditures, or re-evaluate our dividend policy. We expect these sources of liquidity and opportunities for operating flexibility to allow us to meet our financial obligations over the long term. We intend to operate with and to maintain our long-term commitment to a conservative capital structure that will allow us to maintain strong debt service coverage and fixed-charge coverage ratios as part of our commitment to investment-grade debt ratings.
Summary of Cash Flows
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Net cash provided by operating activities | $ | 507,022 | $ | 477,531 | $ | 29,491 | |||||||||||
| Net cash used in investing activities | (94,233) | (473,509) | 379,276 | ||||||||||||||
| Net cash used in financing activities | (397,823) | (11,781) | (386,042) | ||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 14,966 | (7,759) | 22,725 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of year | 117,706 | 135,443 | (17,737) | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 132,672 | $ | 127,684 | $ | 4,988 | |||||||||||
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Net cash provided by operating activities increased $29.5 million to $507.0 million during the nine months ended September 30, 2026 from $477.5 million during the nine months ended September 30, 2025. The increase was primarily due to higher net income after adjusting for non-cash items and gain on sale of real estate, offset by the timing of collections related to year end recovery billings.
Net cash used in investing activities decreased $379.3 million to $94.2 million during the nine months ended September 30, 2026 from $473.5 million during the nine months ended September 30, 2025. The change was primarily attributable to:
•a $315.0 million decrease in acquisition of real estate, and
•an $81.4 million increase in net proceeds from the sale of real estate primarily due to $222.5 million of net proceeds from the sale of a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, a building at our CocoWalk property, and our North Dartmouth property during the nine months ended September 30, 2026, as compared to $141.2 million of net proceeds from the sale of a residential building at Santana Row, our Hollywood Boulevard property, and a portion of our White Marsh Other property during the nine months ended September 30, 2025,
partially offset by
•a $20.8 million increase in capital expenditures.
Net cash used in financing activities increased $386.0 million to $397.8 million during the nine months ended September 30, 2026 from $11.8 million during the nine months ended September 30, 2025. The increase was primarily attributable to:
•$429.2 million from the February 2026 repayment of our $400.0 million 1.25% senior unsecured notes and the August 2026 repayment of our $29.2 million 7.48% debentures, both at maturity,
•$419.2 million related to our revolving credit facility due to $310.0 million of net repayments during the nine months ended September 30, 2026, as compared to $102.4 million of borrowings during the nine months ended September 30, 2025, as well as $6.8 million in costs related to the amendment and restatement of our revolving credit facility in April 2026 (see Note 4 of the consolidated financial statements for additional information),
•$59.2 million from the repurchase and retirement of 538,275 common shares during the nine months ended September 30, 2026 (see Note 7 to the consolidated financial statements for additional information),
•a $21.9 million increase in repayment of mortgages, finance leases, and notes payable primarily due to the mortgage loan repayments on eight of the buildings at our Hoboken property for $12.6 million and one of the buildings at our Bell Gardens property for $10.7 million during the nine months ended September 30, 2026, as compared to the $1.2 million repayment on one of the buildings at our Hoboken property during the nine months ended September 30, 2025,
•a $21.7 million premium paid for the capped call transactions entered into in connection with the issuance of $460.0 million 3.50% exchangeable senior notes in August 2026, and
•a $9.2 million increase in dividends paid to common and preferred shareholders due to an increase to the common share dividend rate and an increase in the number of outstanding shares,
partially offset by
•$451.0 million in net proceeds from the issuance of $460.0 million 3.50% exchangeable senior notes in August 2026,
•a $104.9 million increase in net proceeds from our unsecured term loan from $250.0 million in borrowings under our unsecured term loan in 2026 that we entered into during November 2025, as compared to $145.0 million in net proceeds from our unsecured term loan in 2025,
•a $7.5 million decrease in distributions to and redemptions of noncontrolling interests primarily related to the redemption of 77,983 downREIT operating partnership units for $7.0 million during the nine months ended September 30, 2025, and
•a $6.0 million increase in net proceeds from the issuance of common shares under our ATM program.
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Debt Financing Arrangements
The following is a summary of our total debt outstanding as of September 30, 2026:
| Description of Debt | Original Debt Issued | Principal Balance as of September 30, 2026 | Stated Interest Rate as of September 30, 2026 | Maturity Date | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Mortgages payable | |||||||||||||||||||||||||||||
| Bethesda Row (1) | 200,000 | $ | 200,000 | SOFR + 0.95% | December 28, 2026 | ||||||||||||||||||||||||
| Plaza El Segundo | 125,000 | 125,000 | 3.83 | % | June 5, 2027 | ||||||||||||||||||||||||
| The Grove at Shrewsbury (East) | 43,600 | 43,600 | 3.77 | % | September 1, 2027 | ||||||||||||||||||||||||
| Azalea (2)(3) | 55,000 | 55,000 | SOFR + 0.85% | October 30, 2028 | |||||||||||||||||||||||||
| Brook 35 | 11,500 | 11,500 | 4.65 | % | July 1, 2029 | ||||||||||||||||||||||||
| Hoboken (24 Buildings) (4) | 56,450 | 49,357 | SOFR + 1.95% | December 15, 2029 | |||||||||||||||||||||||||
| Various Hoboken (4 Buildings) | Acquired | 10,452 | 4.88% to 5.76% | Various through 2029 | |||||||||||||||||||||||||
| Chelsea | Acquired | 2,679 | 5.36 | % | January 15, 2031 | ||||||||||||||||||||||||
| Subtotal | 497,588 | ||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and discount | (894) | ||||||||||||||||||||||||||||
| Total mortgages payable, net | 496,694 | ||||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| $750 million term loan (2)(5)(7) | 750,000 | 750,000 | SOFR + 0.85% | March 20, 2028 | |||||||||||||||||||||||||
| Revolving credit facility (2)(5) | (6) | — | SOFR + 0.725% | April 12, 2030 | |||||||||||||||||||||||||
| $250 million term loan (2)(5) | 250,000 | 250,000 | SOFR + 0.85% | January 31, 2031 | |||||||||||||||||||||||||
| Various | 1,615 | 1,055 | Various | Various through 2059 | |||||||||||||||||||||||||
| Subtotal | 1,001,055 | ||||||||||||||||||||||||||||
| Net unamortized debt issuance costs | (3,934) | ||||||||||||||||||||||||||||
| Total notes payable, net | 997,121 | ||||||||||||||||||||||||||||
| Senior notes and debentures (5) | |||||||||||||||||||||||||||||
| Unsecured fixed rate | |||||||||||||||||||||||||||||
| 3.25% notes | 475,000 | 475,000 | 3.25 | % | July 15, 2027 | ||||||||||||||||||||||||
| 6.82% medium term notes | 40,000 | 40,000 | 6.82 | % | August 1, 2027 | ||||||||||||||||||||||||
| 5.375% notes | 350,000 | 350,000 | 5.375 | % | May 1, 2028 | ||||||||||||||||||||||||
| 3.25% exchangeable notes | 485,000 | 485,000 | 3.25 | % | January 15, 2029 | ||||||||||||||||||||||||
| 3.20% notes | 400,000 | 400,000 | 3.20 | % | June 15, 2029 | ||||||||||||||||||||||||
| 3.50% notes | 400,000 | 400,000 | 3.50 | % | June 1, 2030 | ||||||||||||||||||||||||
| 3.50% exchangeable notes | 460,000 | 460,000 | 3.50 | % | August 15, 2031 | ||||||||||||||||||||||||
| 4.50% notes | 550,000 | 550,000 | 4.50 | % | December 1, 2044 | ||||||||||||||||||||||||
| 3.625% notes | 250,000 | 250,000 | 3.625 | % | August 1, 2046 | ||||||||||||||||||||||||
| Subtotal | 3,410,000 | ||||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (20,231) | ||||||||||||||||||||||||||||
| Total senior notes and debentures, net | 3,389,769 | ||||||||||||||||||||||||||||
| Total debt, net | $ | 4,883,584 | |||||||||||||||||||||||||||
(1)We have one one-year extension, at our option, to extend the maturity date of this mortgage loan to December 28, 2027.
(2)Our Azalea mortgage loan, revolving credit facility SOFR loans, and our unsecured term loans bear interest at Daily Simple SOFR, as defined in the respective credit agreements, plus a spread, based on our current credit rating.
(3)The Operating Partnership is a co-borrower on this mortgage loan. Additionally, we have two one-year extensions, at our option, to extend the maturity date of this mortgage loan to October 30, 2030.
(4)The interest rate on this mortgage loan is fixed at 3.67% through two interest rate swap agreements.
(5)The Operating Partnership is the named obligor under our revolving credit facility, term loans, senior notes and debentures. A wholly owned subsidiary of the Operating Partnership is also a co-obligor of the $750.0 million term loan.
(6)The maximum amount drawn under our revolving credit facility during the three and nine months ended September 30, 2026 was $346.8 million and $699.5 million, respectively, and the weighted average interest rate on
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borrowings under our revolving credit facility, before amortization of debt fees during the three and nine months ended September 30, 2026, was 4.3% and 4.4%, respectively.
(7)The interest rate on $450.0 million of our $750.0 million term loan is fixed at a weighted average interest rate of 4.17% through March 1, 2028 through interest rate swap agreements.
Our revolving credit facility, unsecured term loans, and other debt agreements include financial and other covenants that may limit our operating activities in the future. As of September 30, 2026, we were in compliance with all financial and other covenants related to our revolving credit facility, unsecured term loans, and senior notes. Additionally, we were in compliance with all of the financial and other covenants that could trigger a loan default on our mortgage loans. If we were to breach any of these financial and other covenants and did not cure the breach within an applicable cure period, our lenders could require us to repay the debt immediately and, if the debt is secured, could immediately begin proceedings to take possession of the property securing the loan. Many of our debt arrangements, including our public notes and our revolving credit facility, are cross-defaulted, which means that the lenders under those debt arrangements can put us in default and require immediate repayment of their debt if we breach and fail to cure a default under certain of our other debt obligations. As a result, any default under our debt covenants could have an adverse effect on our financial condition, our results of operations, our ability to meet our obligations and the market value of our shares. Our organizational documents do not limit the level or amount of debt that we may incur.
The following is a summary of our scheduled principal repayments as of September 30, 2026:
| Unsecured | Secured | Total | ||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| 2026 | $ | 18 | $ | 200,618 | (1) | $ | 200,636 | |||||||||||||||||||
| 2027 | 515,037 | 178,282 | 693,319 | |||||||||||||||||||||||
| 2028 | 1,100,000 | (2) | 57,511 | (3) | 1,157,511 | |||||||||||||||||||||
| 2029 | 885,000 | 60,434 | 945,434 | |||||||||||||||||||||||
| 2030 | 400,000 | (4) | 684 | 400,684 | ||||||||||||||||||||||
| Thereafter | 1,511,000 | 59 | 1,511,059 | |||||||||||||||||||||||
| $ | 4,411,055 | $ | 497,588 | $ | 4,908,643 | (5) | ||||||||||||||||||||
__________________
(1)Our $200.0 million mortgage loan secured by Bethesda Row matures on December 28, 2026, plus one one-year extension at our option to December 28, 2027.
(2)Our $750.0 million term loan matures on March 20, 2028, plus two one-year extensions at our option to March 20, 2030.
(3)Our $55.0 million mortgage loan secured by Azalea matures on October 30, 2028, plus two one-year extensions at our option to October 30, 2030.
(4)Our $1.4 billion revolving credit facility matures on April 12, 2030, plus two six-month extensions at our option to April 12, 2031. As of September 30, 2026, there was no balance outstanding under our revolving credit facility.
(5)The total debt maturities differ from the total reported on the consolidated balance sheets due to the unamortized net debt issuance costs and premium/discount on mortgage loans, notes payable, and senior notes as of September 30, 2026.
Interest Rate Hedging
We may use derivative instruments to manage exposure to variable interest rate risk. We generally enter into interest rate swaps to manage our exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. We enter into derivative instruments that qualify as cash flow hedges and do not enter into derivative instruments for speculative purposes.
Interest rate swaps associated with cash flow hedges are recorded at fair value on a recurring basis. Effectiveness of cash flow hedges is assessed both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with cash flow hedges is recorded in other comprehensive income which is included in "accumulated other comprehensive income (loss)" on the balance sheet and statement of shareholders' equity. Cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and SOFR rate. In addition, we evaluate the default risk of the counterparty by monitoring the credit-worthiness of the counterparty which includes reviewing debt ratings and financial performance. If a cash flow hedge
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is deemed ineffective, the ineffective portion of changes in fair value of the interest rate swaps associated with cash flow hedges is recognized in earnings in the period affected.
As of September 30, 2026, we have interest rate swap agreements that effectively fix the rate on the following debt instruments:
| Debt | Notional Amount of Related Swap Agreements | Weighted Average Fixed Rate | Maturity Date of Related Swap Agreements | |||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Consolidated Debt | ||||||||||||||||||||||||||
| $750 million term loan | $ | 450.0 | 4.17 | % | March 1, 2028 | |||||||||||||||||||||
| Hoboken mortgage loan | $ | 49.4 | 3.67 | % | December 15, 2029 | |||||||||||||||||||||
| Unconsolidated Debt | ||||||||||||||||||||||||||
| Assembly Row Hotel | $ | 37.3 | 6.11 | % | May 30, 2028 | |||||||||||||||||||||
| Chandler Festival | $ | 51.0 | 4.93 | % | October 4, 2030 | |||||||||||||||||||||
| Chandler Gateway | $ | 22.3 | 4.93 | % | October 4, 2030 | |||||||||||||||||||||
All swaps were designated and qualify as cash flow hedges. Hedge ineffectiveness has not impacted earnings as of September 30, 2026.
REIT Qualification
We intend to maintain the Trust's qualification as a REIT under Section 856(c) of the Code. As a REIT, we generally will not be subject to corporate federal income taxes on income we distribute to our shareholders as long as we satisfy certain technical requirements of the Code, including the requirement to distribute at least 90% of our taxable income to our shareholders.
Funds From Operations
Nareit Funds From Operations (“Nareit FFO”) is a supplemental non-GAAP financial measure of real estate companies’ operating performance. The National Association of Real Estate Investment Trusts (“Nareit”) defines FFO as follows: net income, computed in accordance with U.S. GAAP, plus real estate related depreciation and amortization, and excluding gains and losses on the sale of real estate or changes in control, net of tax, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We compute Nareit FFO in accordance with the Nareit definition, and we have historically reported our Nareit FFO available for common shareholders in addition to our net income and net cash provided by operating activities. It should be noted that Nareit FFO:
•does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income);
•should not be considered an alternative to net income as an indication of our performance; and
•is not necessarily indicative of cash flow as a measure of liquidity or ability to fund cash needs, including the payment of dividends.
We consider Nareit FFO available for common shareholders a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of the real estate assets diminishes predictably over time, as implied by the historical cost convention of GAAP and the recording of depreciation. We use Nareit FFO primarily as one of several means of assessing our operating performance in comparison with other REITs. Comparison of our presentation of Nareit FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the Nareit definition used by such REITs.
An increase or decrease in Nareit FFO available for common shareholders does not necessarily result in an increase or decrease in aggregate distributions because our Board of Trustees is not required to increase distributions on a quarterly basis. However, we must distribute at least 90% of our annual taxable income to remain qualified as a REIT. Therefore, a significant increase in Nareit FFO will generally require an increase in distributions to shareholders although not necessarily on a proportionate basis.
Core Funds From Operations ("Core FFO") is a supplemental non-GAAP financial measure of performance that adjusts Nareit FFO to exclude the impact of certain items that management considers are not indicative of the Company’s ongoing operating and financial performance. These adjustments include, when applicable, (1) gains or losses on early extinguishment of debt, (2) new market tax credit transaction income, (3) executive transition costs, (4) collection of prior period rents which were
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contractually deferred or payments renegotiated related to the COVID-19 pandemic, and (5) other items as determined by management. Management believes Core FFO provides enhanced comparability across periods and additional insight into the Company’s underlying operating results, by excluding items that may reflect short-term fluctuations in net income and Nareit FFO. Core FFO is not intended to be a substitute for net income or Nareit FFO. Comparison of our presentation of Core FFO to similarly titled measures for other REITs may not be meaningful due to possible differences in the way Core FFO is defined or applied by other REITs.
The reconciliation of net income to Nareit FFO and Core FFO available to common shareholders is as follows:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Reconciliation of net income to Nareit FFO available to common shareholders | |||||||||||||||||||||||
| Net income | $ | 68,985 | $ | 64,499 | $ | 318,608 | $ | 291,033 | |||||||||||||||
| Net income attributable to noncontrolling interests | (2,816) | (2,850) | (7,638) | (9,700) | |||||||||||||||||||
| Gain on sale of real estate | (473) | — | (113,801) | (77,672) | |||||||||||||||||||
| Depreciation and amortization of real estate assets | 86,499 | 81,155 | 257,808 | 236,251 | |||||||||||||||||||
| Amortization of initial direct costs of leases | 12,628 | 12,029 | 38,888 | 30,464 | |||||||||||||||||||
| Funds from operations | 164,823 | 154,833 | 493,865 | 470,376 | |||||||||||||||||||
| Dividends on preferred shares (1) | (1,875) | (1,875) | (5,625) | (5,625) | |||||||||||||||||||
| Income attributable to downREIT operating partnership units | 610 | 596 | 1,801 | 1,868 | |||||||||||||||||||
| Income attributable to unvested shares | (563) | (509) | (1,698) | (1,558) | |||||||||||||||||||
| Nareit FFO | $ | 162,995 | $ | 153,045 | $ | 488,343 | $ | 465,061 | |||||||||||||||
| Weighted average number of common shares, diluted (1)(2) | 87,178 | 86,599 | 86,883 | 86,463 | |||||||||||||||||||
| Nareit FFO, per diluted share (2) | $ | 1.87 | $ | 1.77 | $ | 5.62 | $ | 5.38 | |||||||||||||||
| Reconciliation of Nareit FFO to Core FFO | |||||||||||||||||||||||
| Nareit FFO | $ | 162,995 | $ | 153,045 | $ | 488,343 | $ | 465,061 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| New market tax credit transaction income, net | — | — | — | (13,004) | |||||||||||||||||||
| Collection of prior period rents deferred during COVID | — | (73) | — | (209) | |||||||||||||||||||
| Core FFO | $ | 162,995 | $ | 152,972 | $ | 488,343 | $ | 451,848 | |||||||||||||||
| Core FFO per diluted share (2) | $ | 1.87 | $ | 1.77 | $ | 5.62 | $ | 5.23 | |||||||||||||||
_____________________
(1)For the three and nine months ended September 30, 2026 and 2025, dividends on our Series 1 preferred stock were not deducted in the calculation of FFO available to common shareholders, as the related shares were dilutive and included in "weighted average number of common shares, diluted."
(2)The weighted average common shares used to compute Nareit and Core FFO per diluted common share includes downREIT operating partnership units that were excluded from the computation of diluted EPS for both the three months ended September 30, 2026 and 2025, and the nine months ended September 30, 2025. Conversion of these operating partnership units is dilutive in the computation of Nareit and Core FFO per diluted share for all periods presented.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our use of financial instruments, such as debt instruments, subjects us to market risk which may affect our future earnings and cash flows, as well as the fair value of our assets. Market risk generally refers to the risk of loss from changes in interest rates and market prices. We manage our market risk by attempting to match anticipated inflow of cash from our operating, investing and financing activities with anticipated outflow of cash to fund debt payments, dividends to common and preferred shareholders, investments, capital expenditures and other cash requirements.
We may enter into certain types of derivative financial instruments to further reduce interest rate risk. We use interest rate protection and swap agreements, for example, to convert some of our variable rate debt to a fixed-rate basis or to hedge anticipated financing transactions. We use derivatives for hedging purposes rather than speculation and do not enter into financial instruments for trading purposes.
Interest Rate Risk
The following discusses the effect of hypothetical changes in market rates of interest on interest expense for our variable rate debt and on the fair value of our total outstanding debt, including our fixed-rate debt. Interest rate risk amounts were determined by considering the impact of hypothetical interest rates on our debt. Quoted market prices were used to estimate the fair value of our marketable senior notes and debentures and discounted cash flow analysis is generally used to estimate the fair value of our mortgages and notes payable. Considerable judgment is necessary to estimate the fair value of financial instruments. This analysis does not purport to take into account all of the factors that may affect our debt, such as the effect that a changing interest rate environment could have on the overall level of economic activity or the action that our management might take to reduce our exposure to the change. This analysis assumes no change in our financial structure.
Fixed Interest Rate Debt
The majority of our outstanding debt obligations (maturing at various times through 2059) have fixed interest rates which limit the risk of fluctuating interest rates. However, interest rate fluctuations may affect the fair value of our fixed rate debt instruments. At September 30, 2026, we had $4.1 billion of fixed-rate debt outstanding, including $450.0 million of our $750.0 million unsecured term loan and $49.4 million of mortgage payables for which the rate is effectively fixed by interest rate swap agreements. If market interest rates used to calculate the fair value on our fixed-rate debt instruments at September 30, 2026 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $127.8 million. If market interest rates used to calculate the fair value on our fixed-rate debt instruments at September 30, 2026 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $141.1 million.
Variable Interest Rate Debt
Generally, we believe that our primary interest rate risk is due to fluctuations in interest rates on our outstanding variable rate debt. At September 30, 2026, we had $805.0 million of variable rate debt outstanding, comprised of $550.0 million of our unsecured term loans, no balance outstanding on our revolving credit facility, our $200.0 million mortgage loan at Bethesda Row, and our $55.0 million mortgage loan at Azalea. Based upon this amount of variable rate debt and the specific terms, if market interest rates increased 1.0%, our annual interest expense would increase approximately $8.1 million with a corresponding decrease in our net income and cash flows for the year. Conversely, if market interest rates decreased 1.0%, our annual interest expense would decrease by approximately $8.1 million with a corresponding increase in our net income and cash flows for the year.
ITEM 4. CONTROLS AND PROCEDURES
Controls and Procedures (Federal Realty Investment Trust)
Periodic Evaluation and Conclusion of Disclosure Controls and Procedures
An evaluation has been performed, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Trust's disclosure controls and procedures as of September 30, 2026. Based on this evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that the Trust's disclosure controls and procedures were effective as of September 30, 2026 to provide reasonable assurance that information required to be disclosed in the Trust's reports filed or submitted under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and (ii) accumulated and communicated to the Trust’s management including its principal executive and principal financial officer as appropriate to allow timely decisions regarding required disclosure.
39
Changes in Internal Control Over Financial Reporting
There has been no change in the Trust's internal control over financial reporting during the quarterly period covered by this report that materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Controls and Procedures (Federal Realty OP LP)
Periodic Evaluation and Conclusion of Disclosure Controls and Procedures
An evaluation has been performed, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Operating Partnership's disclosure controls and procedures as of September 30, 2026. Based on this evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that the Operating Partnership's disclosure controls and procedures were effective as of September 30, 2026 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and (ii) accumulated and communicated to the Operating Partnership’s management including its principal executive and principal financial officer as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There has been no change in the Operating Partnership's internal control over financial reporting during the quarterly period covered by this report that materially affected, or is reasonably likely to materially affect, the Operating Partnership's internal control over financial reporting.
40
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There have been no material developments in any of our legal proceedings since the disclosure contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on February 12, 2026.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 12, 2026.
ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On April 10, 2025, we announced that our Board of Trustees had approved a common share repurchase program, under which we are authorized to purchase up to $300.0 million of our outstanding common shares of beneficial interest, $0.01 par value per share, from time to time using a variety of methods, including open market, privately negotiated transactions or otherwise. The specific timing and amount of common share repurchases, if any, will depend on a number of factors, including prevailing share prices, trading volume and general market conditions, along with our working capital requirements, cash flow, and other factors. The program does not have an expiration date, does not require us to repurchase any dollar amount or number of common shares and may be suspended or discontinued at any time. The following table represents the number and average price of shares purchased during the three months ended September 30, 2026:
| Period | Total Number of Common Shares Purchased | Average Price Paid Per Common Share | Total Number of Common Shares Purchased As Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Common Shares That May Yet be Purchased Under the Plan or Program | ||||||||||||||||||||||
| July 1, 2026 - July 31, 2026 | — | $ | — | — | $ | 300,000,000 | ||||||||||||||||||||
| August 1, 2026 - August 31, 2026 | — | — | — | 300,000,000 | ||||||||||||||||||||||
| September 1, 2026 - September 30, 2026 | 591,113 | 235,011,844 | ||||||||||||||||||||||||
| Total | 591,113 | $ | 109.94 | 591,113 | ||||||||||||||||||||||
Under the terms of various partnership agreements of certain of our affiliated limited partnerships, the interests of limited partners in those limited partnerships may be redeemed, subject to certain conditions, for cash or common shares, at our option.
From time to time, we could be deemed to have repurchased shares as a result of shares withheld for tax purposes upon a stock
compensation related vesting event.
ITEM 3.DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5.OTHER INFORMATION
None.
ITEM 6.EXHIBITS
A list of exhibits to this Quarterly Report on Form 10-Q is set forth on the Exhibit Index immediately preceding such exhibits and is incorporated herein by reference.
41
| EXHIBIT INDEX | ||||||||||||||
| Exhibit No. | Description | |||||||||||||
| 10.1 | Registration Rights Agreement dated August 11, 2026, by and among the Operating Partnership, the Trust, and the representatives of the initial purchasers named therein (previously filed as Exhibit 10.1 to the Trust's Current Report on Form 8-K filed on August 11, 2026 and incorporated herein by reference) | |||||||||||||
| Rule 13a-14(a) Certification of Chief Executive Officer - Federal Realty Investment Trust (filed herewith) | ||||||||||||||
| Rule 13a-14(a) Certification of Chief Financial Officer - Federal Realty Investment Trust (filed herewith) | ||||||||||||||
| Rule 13a-14(a) Certification of Chief Executive Officer - Federal Realty OP LP (filed herewith) | ||||||||||||||
| Rule 13a-14(a) Certification of Chief Financial Officer - Federal Realty OP LP (filed herewith) | ||||||||||||||
| Section 1350 Certification of Chief Executive Officer - Federal Realty Investment Trust (filed herewith) | ||||||||||||||
| Section 1350 Certification of Chief Financial Officer - Federal Realty Investment Trust (filed herewith) | ||||||||||||||
| Section 1350 Certification of Chief Executive Officer - Federal Realty OP LP (filed herewith) | ||||||||||||||
| Section 1350 Certification of Chief Financial Officer - Federal Realty OP LP (filed herewith) | ||||||||||||||
| 101 | The following materials from Federal Realty Investment Trust and Federal Realty OP LP’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in XBRL (Extensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Comprehensive Income, (3) the Consolidated Statements of Shareholders’ Equity, (4) the Consolidated Statements of Capital, (5) the Consolidated Statements of Cash Flows, and (6) Notes to Consolidated Financial Statements that have been detail tagged. | |||||||||||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | |||||||||||||
42
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned thereunto authorized.
| FEDERAL REALTY INVESTMENT TRUST | ||||||||
| FEDERAL REALTY OP LP | ||||||||
| October 30, 2026 | /s/ Donald C. Wood | |||||||
| Donald C. Wood, | ||||||||
| Chief Executive Officer and Trustee | ||||||||
| (Principal Executive Officer) | ||||||||
| FEDERAL REALTY INVESTMENT TRUST | ||||||||
| FEDERAL REALTY OP LP | ||||||||
| October 30, 2026 | /s/ Daniel Guglielmone | |||||||
| Daniel Guglielmone, | ||||||||
| Executive Vice President | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
43
Exhibit 31.1
CERTIFICATION
I, Donald C. Wood, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Federal Realty Investment Trust;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
October 30, 2026 | /s/ Donald C. Wood | |||||||
| Donald C. Wood, | ||||||||
| Chief Executive Officer and Trustee | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 31.2
CERTIFICATION
I, Daniel Guglielmone, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Federal Realty Investment Trust;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
October 30, 2026 | /s/ Daniel Guglielmone | |||||||
| Daniel Guglielmone | ||||||||
| Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
Exhibit 31.3
CERTIFICATION
I, Donald C. Wood, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Federal Realty OP LP;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
October 30, 2026 | /S/ Donald C. Wood | |||||||
| Donald C. Wood, | ||||||||
| Chief Executive Officer and Trustee | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 31.4
CERTIFICATION
I, Daniel Guglielmone, certify that:
1) I have reviewed this quarterly report on Form 10-Q of Federal Realty OP LP;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
October 30, 2026 | /S/ Daniel Guglielmone | |||||||
| Daniel Guglielmone, | ||||||||
| Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
Exhibit 32.1
CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, Donald C. Wood, the President and Chief Executive Officer of Federal Realty Investment Trust (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2026 (the “Report”). The undersigned hereby certifies, to the best of his knowledge, that:
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
October 30, 2026 | /s/ Donald C. Wood | |||||||
| Donald C. Wood, | ||||||||
| Chief Executive Officer and Trustee | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 32.2
CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, Daniel Guglielmone, the Executive Vice President and Chief Financial Officer and Treasurer of Federal Realty Investment Trust (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2026 (the “Report”). The undersigned hereby certifies, to the best of his knowledge, that:
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
October 30, 2026 | /s/ Daniel Guglielmone | |||||||
| Daniel Guglielmone | ||||||||
| Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
Exhibit 32.3
CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, Donald C. Wood, the President and Chief Executive Officer of Federal Realty OP LP (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2026 (the “Report”). The undersigned hereby certifies, to the best of his knowledge, that:
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
October 30, 2026 | /S/ Donald C. Wood | |||||||
| Donald C. Wood, | ||||||||
| President, Chief Executive Officer and Trustee | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 32.4
CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, Daniel Guglielmone, the Executive Vice President and Chief Financial Officer and Treasurer of Federal Realty OP LP (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2026 (the “Report”). The undersigned hereby certifies, to the best of his knowledge, that:
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
October 30, 2026 | /S/ Daniel Guglielmone | |||||||
| Daniel Guglielmone, | ||||||||
| Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||