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What changed in Federal Realty Investment Trust's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Federal Realty Investment Trust's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+230 added−240 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-13)

Top changes in Federal Realty Investment Trust's 2025 10-K

230 paragraphs added · 240 removed · 187 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeOur investments primarily fall into one of the following four categories: • renovating, expanding, reconfiguring and/or retenanting our existing properties to take advantage of under-utilized land or existing square footage to increase revenue; • renovating or expanding tenant spaces for tenants capable of producing higher sales, and therefore, paying higher rents; • acquiring quality retail and mixed-use properties located in densely populated and/or affluent areas where barriers to entry for further development are high, and that have possibilities for enhancing operating performance and creating value through renovation, expansion, reconfiguration and/or retenanting; and • developing the retail portions of mixed-use properties and developing or otherwise investing in non-retail portions of mixed-use properties we already own in order to capitalize on the overall value created in these properties.
Biggest changeOur investments primarily fall into one of the following four categories: • acquiring quality retail and mixed-use properties located in densely populated and/or affluent areas where barriers to entry for further development are high, and that have possibilities for enhancing operating performance and creating value through renovation, expansion, reconfiguration and/or retenanting; • renovating, expanding, reconfiguring and/or retenanting our existing properties to take advantage of under-utilized land or existing square footage to increase revenue; • renovating or expanding tenant spaces for tenants capable of producing higher sales, and therefore, paying higher rents; and • developing the retail portions of mixed-use properties and developing or otherwise investing in non-retail portions of mixed-use properties we already own in order to capitalize on the overall value created in these properties.
ITEM 1. BUSINESS General Federal Realty Investment Trust (the "Parent Company" or the "Trust") is an equity real estate investment trust ("REIT"). Federal Realty OP LP (the "Operating Partnership") is the entity through which the Trust conducts substantially all of its operations and owns substantially off of its assets.
ITEM 1. BUSINESS General Federal Realty Investment Trust (the "Parent Company" or the "Trust") is an equity real estate investment trust ("REIT"). Federal Realty OP LP (the "Operating Partnership") is the entity through which the Trust conducts substantially all of its operations and owns substantially all of its assets.
Talent Development Employees have access to a variety of different training courses, books, book summaries and audio books, and an array of source materials covering a myriad of different business and soft skills training subjects. Additionally, we provide reimbursement for tuition and professional licensures.
Talent Development Employees have access to a variety of different training courses, books, book summaries and audio books, and an array of source materials covering a myriad of different business and soft skills training subjects. Additionally, we provide reimbursement for tuition and professional licenses.
We are an Equal Opportunity/Affirmative Action employer, and strive to maintain a workplace that is free from discrimination on the basis of race, color, religion, sex, sexual orientation, nationality, disability, or protected Veteran status.
We are an Equal Opportunity/Affirmative Action employer, and strive to maintain a workplace that is free from discrimination on the basis of race, color, religion, age, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, and gender identity or expression.
In addition to our equity awards program, we also offer a quarterly recognition program, as well as rewarding employees with spot bonuses for stellar performance or going above and beyond the base requirements of their job description.
In addition to our equity awards program, we also reward employees with spot bonuses for stellar performance or going above and beyond the base requirements of their job description.
Human Capital At February 10, 2025, we had 304 full-time employees and 5 part-time employees. None of our employees are represented by a collective bargaining unit. We believe that our relationship with our employees is good.
Human Capital At February 9, 2026, we had 314 full-time employees and 6 part-time employees. None of our employees are represented by a collective bargaining unit. We believe that our relationship with our employees is good.
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.
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. We specialize in the ownership, management, and redevelopment of high quality retail and mixed-use properties.
Our revenue is primarily generated from lease agreements with tenants. We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our dividends per common share for 57 consecutive years.
In total, the real estate projects were 96.1% leased and 94.1% occupied at December 31, 2025. Our revenue is primarily generated from lease agreements with tenants. We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our dividends per common share for 58 consecutive years.
As of December 31, 2024, 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 26.8 million commercial square feet. In total, the real estate projects were 96.2% leased and 94.1% occupied at December 31, 2024.
These properties are located primarily in major coastal markets and select underserved markets that we believe have strong economic and demographic fundamentals. As of December 31, 2025, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 104 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet.
Removed
We specialize in the ownership, management, and redevelopment of high quality retail and mixed-use properties located primarily in communities where we believe retail demand exceeds supply, in strategically selected metropolitan markets in the Mid-Atlantic and Northeast regions of the United States, California, and South Florida.
Added
General Economic Conditions Significant uncertainty continues within the macro-economic environment including inflation risk, changes in interest rates, new or higher tariffs and their impact on trade and prices, increases or decreases in federal government spending, and potentially worsening economic conditions, which presents risks for our business and tenants.
Removed
General Economic Conditions The economy continues to face several issues including inflation risk, high interest rates, and potentially worsening economic conditions presenting risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy.
Added
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 economic environment.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisk Factors Related to our REIT Status and Other Laws and Regulations Failure to qualify as a REIT for federal income tax purposes would cause the Parent Company to be taxed as a corporation, which would substantially reduce funds available for payment of distributions. 14 Table of Contents We believe that we are organized and qualified as a REIT for federal income tax purposes and currently intend to operate in a manner that will allow us to continue to qualify as a REIT under the Code.
Biggest changeWe can provide no assurances as to the financial stability or viability of the option counterparties. 14 Table of Contents Risk Factors Related to our REIT Status and Other Laws and Regulations Failure to qualify as a REIT for federal income tax purposes would cause the Parent Company to be taxed as a corporation, which would substantially reduce funds available for payment of distributions.
For example, it could: • require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, property acquisitions, redevelopments and other appropriate business opportunities that may arise in the future; • limit our ability to make distributions on our outstanding common shares and preferred shares; • make it difficult to satisfy our debt service requirements; 12 Table of Contents • require us to dedicate increased amounts of our cash flow from operations to payments on debt upon refinancing or on our variable rate, unhedged debt, if interest rates rise; • limit our flexibility in planning for, or reacting to, changes in our business and the factors that affect the profitability of our business; • limit our ability to obtain any additional debt or equity financing we may need in the future for working capital, debt refinancing, capital expenditures, acquisitions, redevelopments or other general corporate purposes or to obtain such financing on favorable terms; and/or • limit our flexibility in conducting our business, which may place us at a disadvantage compared to competitors with less debt or debt with less restrictive terms.
For example, it could: 12 Table of Contents • require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, property acquisitions, redevelopments and other appropriate business opportunities that may arise in the future; • limit our ability to make distributions on our outstanding common shares and preferred shares; • make it difficult to satisfy our debt service requirements; • require us to dedicate increased amounts of our cash flow from operations to payments on debt upon refinancing or on our variable rate, unhedged debt, if interest rates rise; • limit our flexibility in planning for, or reacting to, changes in our business and the factors that affect the profitability of our business; • limit our ability to obtain any additional debt or equity financing we may need in the future for working capital, debt refinancing, capital expenditures, acquisitions, redevelopments or other general corporate purposes or to obtain such financing on favorable terms; and/or • limit our flexibility in conducting our business, which may place us at a disadvantage compared to competitors with less debt or debt with less restrictive terms.
These provisions include: • the REIT ownership limit described above; • authorization of the issuance of our preferred shares with powers, preferences or rights to be determined by the Board of Trustees; 16 Table of Contents • special meetings of our shareholders may be called only by the chairman of the board, the chief executive officer, the president, by one-third of the trustees or by shareholders possessing no less than 25% of all the votes entitled to be cast at the meeting; • the Board of Trustees, without a shareholder vote, can classify or reclassify unissued shares of beneficial interest, including the reclassification of common shares into preferred shares and vice-versa; • a two-thirds shareholder vote is required to approve some amendments to the declaration of trust; and • advance-notice requirements for proposals to be presented at shareholder meetings.
These provisions include: • the REIT ownership limit described above; • authorization of the issuance of our preferred shares with powers, preferences or rights to be determined by the Board of Trustees; • special meetings of our shareholders may be called only by the chairman of the board, the chief executive officer, the president, by one-third of the trustees or by shareholders possessing no less than 25% of all the votes entitled to be cast at the meeting; • the Board of Trustees, without a shareholder vote, can classify or reclassify unissued shares of beneficial interest, including the reclassification of common shares into preferred shares and vice-versa; • a two-thirds shareholder vote is required to approve some amendments to the declaration of trust; and • advance-notice requirements for proposals to be presented at shareholder meetings.
Our organizational documents do not limit the amount of funds that we may invest in properties and assets owned jointly with other persons or entities. As of December 31, 2024, we held 18 predominantly retail real estate projects jointly with other persons in addition to properties owned in a “downREIT” structure.
Our organizational documents do not limit the amount of funds that we may invest in properties and assets owned jointly with other persons or entities. As of December 31, 2025, we held 18 predominantly retail real estate projects jointly with other persons in addition to properties owned in a “downREIT” structure.
Our ability to continue to pay dividends on our common shares at historical rates or to increase our common share dividend rate, and our ability to pay preferred share dividends and service our debt securities, will depend on a number of factors, including, among others, the following: • our financial condition and results of future operations; • the performance by our tenants under their contractual lease agreements; 17 Table of Contents • the terms of our loan covenants; and • our ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates.
Our ability to continue to pay dividends on our common shares at historical rates or to increase our common share dividend rate, and our ability to pay preferred share dividends and service our debt securities, will depend on a number of factors, including, among others, the following: • our financial condition and results of future operations; • the performance by our tenants under their contractual lease agreements; • the terms of our loan covenants; and • our ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates.
In addition to the risks associated with real estate investment in general, as described elsewhere and the specific risks above, the risks associated with our remaining development activities include: • contractor changes may delay the completion of development projects and increase overall costs; • significant time lag between commencement and stabilization subjects us to greater risks due to fluctuations in the general economy; • delivery of residential product into uncertain residential environments may result in lower rents or longer time periods to reach economic stabilization; • substantial amount of our investment is related to infrastructure and the overall value of the project may be negatively impacted if we do not complete subsequent phases; • failure or inability to obtain construction or permanent financing on favorable terms; • expenditure of money and time on projects that may never be completed; 9 Table of Contents • difficulty securing key anchor or other tenants may impact occupancy rates and projected revenue; • inability to achieve projected rental rates or anticipated pace of lease-up; • higher than estimated construction or operating costs, including labor and material costs; and • possible delay in completion of a project because of a number of factors, including COVID-19, supply chain disruptions and shortages, inflation, weather, labor disruptions, construction delays or delays in receipt of zoning or other regulatory approvals, acts of terror or other acts of violence, or acts of God (such as fires, earthquakes or floods).
In addition to the risks associated with real estate investment in general, as described elsewhere and the specific risks above, the risks associated with our remaining development activities include: • contractor changes may delay the completion of development projects and increase overall costs; • significant time lag between commencement and stabilization subjects us to greater risks due to fluctuations in the general economy; • delivery of residential product into uncertain residential environments may result in lower rents or longer time periods to reach economic stabilization; • substantial amount of our investment is related to infrastructure and the overall value of the project may be negatively impacted if we do not complete subsequent phases; 9 Table of Contents • failure or inability to obtain construction or permanent financing on favorable terms; • expenditure of money and time on projects that may never be completed; • difficulty securing key anchor or other tenants may impact occupancy rates and projected revenue; • inability to achieve projected rental rates or anticipated pace of lease-up; • higher than estimated construction or operating costs, including labor and material costs; and • possible delay in completion of a project because of a number of factors, including public health crises (such as worldwide pandemics), supply chain disruptions and shortages, inflation, climate change and weather, labor disruptions, construction delays or delays in receipt of zoning or other regulatory approvals, acts of terror or other acts of violence, or acts of God (such as fires, earthquakes or floods).
As a result, cash flow from the operations of our properties may be reduced if a tenant does not pay its rent or we are unable to rent our properties on favorable terms. Under those circumstances, we might not be able to enforce our rights as landlord without delays and may incur substantial legal costs.
As a result, cash flow from the operations of our properties may be reduced if a tenant does not pay its rent or we are unable to rent our properties on favorable terms. Under those circumstances, we might not be able to enforce our rights as landlord without 10 Table of Contents delays and may incur substantial legal costs.
We believe that it will be difficult to fund our expected growth with cash from operating activities because, in addition to other requirements, we are generally required to distribute to our shareholders at least 90% of our taxable income each year to continue to qualify as a REIT for federal income tax purposes.
We believe that it will be difficult to fund our expected growth with cash from operating activities 13 Table of Contents because, in addition to other requirements, we are generally required to distribute to our shareholders at least 90% of our taxable income each year to continue to qualify as a REIT for federal income tax purposes.
Accordingly, such new legislation, Treasury regulations, administrative interpretations or court decisions could significantly and negatively affect our ability to qualify to be taxed as a REIT and/or the U.S. federal income tax consequences to us and our investors of such qualification. We may be required to incur additional debt to qualify as a REIT.
Accordingly, such new legislation, Treasury regulations, administrative interpretations or court decisions could significantly and negatively affect our ability to qualify to be taxed as a REIT and/or the U.S. federal income tax consequences to us and our investors of such qualification. 15 Table of Contents We may be required to incur additional debt to qualify as a REIT.
We cannot guarantee that material losses in excess of insurance proceeds will not occur in 11 Table of Contents the future. If any of our properties were to experience a catastrophic loss, it could seriously disrupt our operations, delay revenue and result in large expenses to repair or rebuild the property.
We cannot guarantee that material losses in excess of insurance proceeds will not occur in the future. If any of our properties were to experience a catastrophic loss, it could seriously disrupt our operations, delay revenue and result in large expenses to repair or rebuild the property.
As of December 31, 2024, our anchor tenant space is 97.5% leased and 95.2% occupied. A shift in retail shopping from brick and mortar stores to online shopping may have an adverse impact on our cash flow, financial condition and results of operations. Many retailers operating brick and mortar stores have made online sales a vital piece of their business.
As of December 31, 2025, our anchor tenant space is 97.3% leased and 95.5% occupied. A shift in retail shopping from brick and mortar stores to online shopping may have an adverse impact on our cash flow, financial condition and results of operations. Many retailers operating brick and mortar stores have made online sales a vital piece of their business.
As of December 31, 2024, our tenants operated in 12 states and the District of Columbia. Any adverse situation that disproportionately affects the the markets where our properties are concentrated may have a magnified adverse effect on our portfolio. Refer to “Properties” (Item 2 of this Annual Report on Form 10-K) for additional discussion of the geographic concentration.
As of December 31, 2025, our tenants operated in 14 states and the District of Columbia. Any adverse situation that disproportionately affects the the markets where our properties are concentrated may have a magnified adverse effect on our portfolio. Refer to “Properties” (Item 2 of this Annual Report on Form 10-K) for additional discussion of the geographic concentration.
Additionally, new properties that we may acquire or redevelop may not produce any significant revenue immediately, and the cash flow from existing operations may be insufficient to pay the operating expenses and debt service associated with such new properties until they are fully occupied. 10 Table of Contents Competition may limit our ability to purchase new properties and generate sufficient income from tenants.
Additionally, new properties that we may acquire or redevelop may not produce any significant revenue immediately, and the cash flow from existing operations may be insufficient to pay the operating expenses and debt service associated with such new properties until they are fully occupied. Competition may limit our ability to purchase new properties and generate sufficient income from tenants.
Our revolving credit facility, unsecured term loan, and certain series of notes include financial covenants that may limit our operating activities in the future.
Our revolving credit facility, unsecured term loans, and certain series of notes include financial covenants that may limit our operating activities in the future.
We employ a number of measures to prevent, detect, and mitigate these threats, which include password encryption, multi-factor 18 Table of Contents authentication, frequent password change events, firewall detection systems, anti-virus software in-place, frequent backups, a redundant data system for core applications, and penetration testing; however, there is no guarantee such efforts will be successful in preventing a material cybersecurity incident.
We employ a number of measures to prevent, detect, and mitigate these threats, which include password encryption, multi-factor authentication, frequent password change events, firewall detection systems, anti-virus software in-place, frequent backups, a redundant data system for core applications, and penetration testing; however, there is no guarantee such efforts will be successful in preventing a material cybersecurity incident. ITEM 1B.
Additionally, as of December 31, 2024, we owned an interest in the hotel component of Assembly Row. We may make additional joint investments in the future.
Additionally, as of December 31, 2025, we owned an interest in the hotel component of Assembly Row. We may make additional joint investments in the future.
If economic conditions and conditions in the capital markets are not favorable at the time we need to raise capital, we may need to obtain capital on less favorable terms. 13 Table of Contents Additionally, we cannot guarantee that additional financing, refinancing, or other capital will be available in the amounts we desire or on favorable terms.
If economic conditions and conditions in the capital markets are not favorable at the time we need to raise capital, we may need to obtain capital on less favorable terms. Additionally, we cannot guarantee that additional financing, refinancing, or other capital will be available in the amounts we desire or on favorable terms.
Factors that may negatively affect economic conditions in these states include: • business layoffs or downsizing; • industry slowdowns; • elevated levels of inflation over an extended period of time; • increasing interest rates; • increased business restrictions due to health crises; • relocations of businesses; • changing demographics; • increased telecommuting and use of alternative work places; • infrastructure quality; • any oversupply of, or reduced demand for, real estate; • concessions or reduced rental rates under new leases for properties where tenants defaulted; and • increased operating costs including insurance premiums and real estate taxes.
Factors that may negatively affect economic conditions in these states include: • business or government layoffs or downsizing; • industry slowdowns; • elevated levels of inflation over an extended period of time; • increasing interest rates; • introduction of new or higher tariffs; • significant decrease in federal government spending; • increased business restrictions due to health crises; • relocations of businesses; • changing demographics; • increased telecommuting and use of alternative work places; • infrastructure quality; • any oversupply of, or reduced demand for, real estate; • concessions or reduced rental rates under new leases for properties where tenants defaulted; and • increased operating costs including insurance premiums and real estate taxes.
As of December 31, 2024, we were in compliance with all of our default related financial covenants.
As of December 31, 2025, we were in compliance with all of our default related financial covenants.
We therefore may cease to have insurance coverage against certain types of losses and/or there may be decreases in the limits of insurance available.
We therefore may cease to have insurance 11 Table of Contents coverage against certain types of losses and/or there may be decreases in the limits of insurance available.
Although as of December 31, 2024, we held the controlling interests in all of our existing co-investments (except the hotel investment discussed above, the investment in the La Alameda shopping center acquired in 2017, and the investment in the Chandler Festival and Chandler Gateway shopping centers acquired in 2022), we generally must obtain the consent of the co-investor or meet defined criteria to sell or to finance these properties.
Although as of December 31, 2025, we held the controlling interests in all of our existing co-investments (except the hotel investment discussed above and the investments in the La Alameda, Chandler Festival, and Chandler Gateway shopping centers), we generally must obtain the consent of the co-investor or meet defined criteria to sell or to finance these properties.
Increases in interest rates would increase the interest expense on our variable rate debt and reduce our cash flow, which could adversely affect our ability to service our debt and meet our other obligations and also could reduce the amount we are able to distribute to our shareholders.
We may borrow additional funds at variable interest rates in the future. Increases in interest rates would increase the interest expense on our variable rate debt and reduce our cash flow, which could adversely affect our ability to service our debt and meet our other obligations and also could reduce the amount we are able to distribute to our shareholders.
These provisions also may delay or prevent the shareholders from receiving a premium for their common shares over then-prevailing market prices.
These 16 Table of Contents provisions also may delay or prevent the shareholders from receiving a premium for their common shares over then-prevailing market prices.
A cyber attack could compromise the confidential information of our employees, tenants, and vendors. A successful attack could adversely affect our business operations, results of operations, or financial condition by, among other things, disrupting our collection of revenue, interfering with our ability to satisfy our financial obligations by restricting access to our assets, or causing inaccuracies in our financial reporting.
A successful attack could adversely affect our business operations, results of operations, or financial condition by, among other things, disrupting our collection of revenue, interfering with our ability to satisfy our financial obligations by restricting access to our assets, or causing inaccuracies in our financial reporting.
These factors include, among others: • general economic and financial market conditions; • level and trend of interest rates; • our ability to access the capital markets to raise additional capital; • the issuance of additional equity or debt securities; • changes in our funds from operations (“FFO”) or earnings estimates; • changes in our credit or analyst ratings; • our financial condition and performance; • market perception of our business compared to other REITs; and • market perception of REITs, in general, compared to other investment alternatives.
These factors include, among others: • general economic and financial market conditions; • level and trend of interest rates; • our ability to access the capital markets to raise additional capital; • the issuance of additional equity or debt securities; • changes in our funds from operations (“FFO”) or earnings estimates; • changes in our credit or analyst ratings; • our financial condition and performance; • market perception of our business compared to other REITs; and • market perception of REITs, in general, compared to other investment alternatives. 17 Table of Contents We cannot assure you we will continue to pay dividends in the current composition or at historical rates.
However, we cannot assure you that we will remain qualified as such in the future. Qualification as a REIT involves the application of highly technical and complex Code provisions and applicable income tax regulations that have been issued under the Code. Certain facts and circumstances not entirely within our control may affect our ability to qualify as a REIT.
Qualification as a REIT involves the application of highly technical and complex Code provisions and applicable income tax regulations that have been issued under the Code. Certain facts and circumstances not entirely within our control may affect our ability to qualify as a REIT.
In addition, we would be subject to a 4% excise tax if we fail to distribute sufficient income to meet a minimum distribution test based on our ordinary income, capital gain and aggregate undistributed income from prior years.
In addition, we would be subject to a 4% excise tax if we fail to distribute sufficient income to meet a minimum distribution test based on our ordinary income, capital gain and aggregate undistributed income from prior years. We intend to make distributions to shareholders to comply with the Code’s distribution provisions and to avoid federal income and excise tax.
These could include attempts to gain unauthorized access to our data and computer systems as well as attacks on third party's information technology systems that we rely on to provide important information technology services relating to key business functions, such as payroll. Cyber attacks can be both individual and/or highly organized attempts by very sophisticated hacking organizations.
These could include attempts to gain unauthorized access to our data and computer systems as well as attacks on third party's information technology systems that we rely on to provide important 18 Table of Contents information technology services relating to key business functions, such as payroll.
As of December 31, 2024, we had approximately $4.5 billion of debt outstanding. Of that outstanding debt, approximately $515.8 million was secured by all or a portion of 8 of our real estate projects.
As of December 31, 2025, we had approximately $5.0 billion of debt outstanding. Of that outstanding debt, approximately $523.2 million was secured by all or a portion of 8 of our real estate projects. As of December 31, 2025, approximately 82.6% of our debt is fixed rate or is fixed via interest rate swap agreements.
Economic, legal, and/or competitive conditions, as well as public health concerns, may impact the success of our tenants’ retail operations and therefore the amount of rent and expense reimbursements we receive from our tenants.
Economic, legal, and/or competitive conditions, such as impacts from higher tariffs, changing interest rates, the cost and availability of labor, and changes in federal government spending, may impact the success of our tenants’ retail operations and therefore the amount of rent and expense reimbursements we receive from our tenants.
The amount of our debt outstanding from time to time could have important consequences to our shareholders.
Our organizational documents do not limit the level or amount of debt that we may incur. The amount of our debt outstanding from time to time could have important consequences to our shareholders.
We also have a $1.25 billion revolving credit facility, on which no balance was outstanding at December 31, 2024, that bears interest at SOFR plus 77.5 basis points, plus 0.10%. We may borrow additional funds at variable interest rates in the future.
We have a $1.25 billion revolving credit facility, which bears interest at SOFR plus 77.5 basis points, of which $310.0 million was outstanding at December 31, 2025, and we have a $250.0 million term loan that bears interest at SOFR plus 85 basis points, of which no amount was outstanding at December 31, 2025.
Of our $4.5 billion of debt outstanding as of December 31, 2024, approximately $852.1 million bears interest at a variable rate, of which, $600.0 million is our unsecured term loan that bears interest at a variable rate of SOFR plus 85 basis points plus 0.10%.
Of our $5.0 billion of debt outstanding as of December 31, 2025, approximately $1.4 billion bears interest at a variable rate. We have entered into interest rate swaps on $500.6 million of this variable rate debt to effectively fix the rate and limit our exposure to variable rates.
Removed
As of December 31, 2024, approximately 86.7% of our debt is fixed rate or is fixed via interest rate swap agreements, which includes all of our property secured debt and our unsecured senior notes. Our organizational documents do not limit the level or amount of debt that we may incur.
Added
We believe that we are organized and qualified as a REIT for federal income tax purposes and currently intend to operate in a manner that will allow us to continue to qualify as a REIT under the Code. However, we cannot assure you that we will remain qualified as such in the future.
Removed
The remaining $252.1 million is comprised of a $200.0 million mortgage payable that bears interest at a variable rate of SOFR plus 95 basis points, which is effectively fixed by three interest rate swap agreements through the initial maturity date, and $52.1 million in mortgages payable that bear interest at a variable rate of SOFR plus 195 basis points and are effectively fixed by two interest rate swap agreements.
Added
Cyber attacks can be both individual and/or highly organized attempts by very sophisticated hacking organizations. A cyber attack could compromise the confidential information of our employees, tenants, and vendors.
Removed
We can provide no assurances as to the financial stability or viability of the option counterparties.
Removed
We intend to make distributions to shareholders to comply with the Code’s 15 Table of Contents distribution provisions and to avoid federal income and excise tax.
Removed
We cannot assure you we will continue to pay dividends in the current composition or at historical rates.

Item 2. Properties

Properties — owned and leased real estate

31 edited+2 added−1 removed16 unchanged
Biggest changeFitness CVS La Alameda Walnut Park, CA 90255(5)(6)(7) 2008 2017 245,000 $28.44 93% Marshalls Ross Dress for Less CVS Petco 22 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Old Town Center Los Gatos, CA 95030 1962, 1998 1997 98,000 $47.60 89% Anthropologie Sephora Arhaus Furniture Teleferic Barcelona Olivo at Mission Hills Mission Hills, CA 91345(4) 2018 2017 155,000 $34.70 100% Target 24 Hour Fitness Ross Dress for Less Ulta Pinole Vista Crossing Pinole, CA 94564 1995, 2015 2024 216,000 $22.42 100% FoodMaxx TJ Maxx Nordstrom Rack HomeGoods Ulta Plaza Del Sol South El Monte, CA 91733(4) 2009 2017 48,000 $25.14 93% Marshalls Plaza El Segundo / The Point El Segundo, CA 90245 (6) 2006-2007, 2016 2011/2013 502,000 $47.11 98% Whole Foods Nordstrom Rack HomeGoods Dick's Sporting Goods Multiple Restaurants San Antonio Center Mountain View, CA 94040(7)(8) 1958, 1964-1965, 1974-1975, 1995-1997 2015/2019 213,000 $17.89 100% Trader Joe's Walmart 24 Hour Fitness Santana Row San Jose, CA 95128(7)(10) 2002, 2009, 2016, 2020 1997 1,231,000 $58.49 98% Crate & Barrel Container Store Best Buy Sephora Cisco Systems Net App Multiple Restaurants Santana Row Residential San Jose, CA 95128 2003-2006, 2011, 2014 1997/2012 662 units N/A 96% Sylmar Towne Center Sylmar, CA 91342(4) 1973 2017 148,000 $20.14 92% Food 4 Less CVS Westgate Center San Jose, CA 95129 1960-1966 2004 650,000 $22.72 93% Target Nordstrom Rack Nike Factory TJ Maxx Ross Dress for Less Connecticut Bristol Plaza Bristol, CT 06010 1959 1995 264,000 $15.63 95% Stop & Shop TJ Maxx Burlington Darien Commons Darien, CT 06820 1920-2009, 2023 2013/2018 121,000 $47.68 89% Equinox Walgreens Multiple Restaurants Darien Commons Residential Darien, CT 06820 2022 2013/2018 124 units N/A 98% Greenwich Avenue Greenwich Avenue, CT 06830 1968 1995 35,000 $96.19 100% Saks Fifth Avenue District of Columbia Friendship Center Washington, DC 20015 1998 2001 54,000 $28.43 100% Marshalls Maggiano's Florida CocoWalk Coconut Grove, FL 33133(11) 1990/1994, 1922-1973, 2018-2021 2015-2017 278,000 $48.82 99% Cinepolis Theaters Youfit Health Club Multiple Restaurants Del Mar Village Boca Raton, FL 33433 1982, 1994 & 2007 2008/2014 187,000 $24.53 97% Winn Dixie CVS L.A.
Biggest changeProperty, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Arizona Camelback Colonnade Phoenix, AZ 85016(4) 1977, 2019 2021 603,000 $18.82 99% Fry's Food & Drug Marshalls Nordstrom Last Chance Best Buy HomeGoods Chandler Festival Chandler, AZ 85224(5)(6) 2000 2022 355,000 $19.22 98% Ross Dress for Less Nordstrom Rack TJ Maxx Ulta Wayfair Outlet Chandler Gateway Chandler, AZ 85226(5)(6) 2001 2022 261,000 $11.54 97% Walmart Hobby Lobby Petco The Shops at Hilton Village Scottsdale, AZ 85250(4)(7) 1982, 1989 2021/2022 305,000 $36.78 88% CVS Houston's California Azalea South Gate, CA 90280(4)(6) 2014 2017 226,000 $33.07 100% Marshalls Ross Dress for Less Ulta Michaels Bell Gardens Bell Gardens, CA 90201(4)(6)(7) 1990, 2003, 2006 2017/2018 371,000 $25.79 93% Food 4 Less El Super Marshalls Ross Dress for Less Bob's Discount Furniture Colorado Blvd Pasadena, CA 91103(7) 1905-1988 1998 42,000 $50.42 73% Banana Republic True Food Kitchen Crow Canyon Commons San Ramon, CA 94583 1980, 1998, 2006 2005/2007 239,000 $36.98 85% Sprouts Total Wine & More Alamo Ace Hardware Del Monte Shopping Center Monterey, CA 93940 1968, 1976, 1984, 2004 2025 675,000 $18.82 80% Whole Foods Macy's Petco Pottery Barn Apple Sephora East Bay Bridge Emeryville & Oakland, CA 94608 1994-2001, 2011, 2012 2012 441,000 $20.93 98% Pak-N-Save Target Home Depot Nordstrom Rack Michaels Escondido Promenade Escondido, CA 92029 1987 1996/2010 298,000 $32.01 100% TJ Maxx Dick's Sporting Goods Ross Dress for Less Bob's Discount Furniture Fourth Street Berkeley, CA 94710(4) 1948, 1975 2017 71,000 $41.11 47% CB2 Bellwether Coffee Freedom Plaza Los Angeles, CA 90002(4)(7) 2020 2018 114,000 $32.68 92% Smart & Final Nike Blink Fitness Ross Dress for Less Grossmont Center La Mesa, CA 91942(4) 1961, 1963, 1982-1983, 2002 2021 866,000 $16.62 95% Target Walmart Barnes & Noble CVS Hastings Ranch Plaza Pasadena, CA 91107(7) 1958, 1984, 2006, 2007 2017 273,000 $9.66 100% Marshalls HomeGoods CVS La Alameda Walnut Park, CA 90255(5)(6)(7) 2008 2017 245,000 $29.04 94% Marshalls Ross Dress for Less CVS Petco 22 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Old Town Center Los Gatos, CA 95030 1962, 1998 1997 99,000 $49.43 89% Anthropologie Sephora Arhaus Furniture Teleferic Barcelona Olivo at Mission Hills Mission Hills, CA 91345(4) 2018 2017 155,000 $35.10 100% Target 24 Hour Fitness Ross Dress for Less Ulta Pinole Vista Crossing Pinole, CA 94564 1995, 2015 2024 216,000 $22.48 99% FoodMaxx TJ Maxx Nordstrom Rack HomeGoods Ulta Plaza Del Sol South El Monte, CA 91733(4) 2009 2017 48,000 $25.97 98% Marshalls Plaza El Segundo / The Point El Segundo, CA 90245 (6) 2006-2007, 2016 2011/2013 503,000 $49.24 99% Whole Foods Nordstrom Rack HomeGoods Dick's Sporting Goods Multiple Restaurants San Antonio Center Mountain View, CA 94040(7)(8) 1958, 1964-1965, 1974-1975, 1995-1997 2015/2019 213,000 $18.37 100% Trader Joe's Walmart 24 Hour Fitness Santana Row San Jose, CA 95128(7)(10) 2002, 2009, 2016, 2020 1997 1,521,000 $57.21 98% Crate & Barrel Container Store Best Buy Sephora Cisco Systems Net App Multiple Restaurants Santana Row Residential San Jose, CA 95128 2003-2006, 2014 1997/2012 554 units N/A 97% Sylmar Towne Center Sylmar, CA 91342(4) 1973 2017 148,000 $22.37 95% Food 4 Less CVS Ross Dress for Less Westgate Center San Jose, CA 95129 1960-1966 2004 650,000 $23.72 92% Target Nordstrom Rack Nike Factory TJ Maxx Ross Dress for Less Connecticut Darien Commons Darien, CT 06820 1920-2009, 2023 2013/2018 120,000 $48.04 96% Equinox Walgreens Multiple Restaurants Darien Commons Residential Darien, CT 06820 2022 2013/2018 124 units N/A 96% Greenwich Avenue Greenwich Avenue, CT 06830 1968 1995 36,000 $96.19 100% Saks Fifth Avenue District of Columbia Friendship Center Washington, DC 20015 1998 2001 25,000 $23.18 100% Maggiano's Florida CocoWalk Coconut Grove, FL 33133(11) 1990/1994, 1922-1973, 2018-2021 2015-2017 278,000 $50.24 100% Cinepolis Theaters Youfit Health Club Multiple Restaurants Del Mar Village Boca Raton, FL 33433 1982, 1994 & 2007 2008/2014 187,000 $25.59 98% Aldi CVS L.A.
(9) Aggregate information is calculated on a GLA weighted-average basis, excluding Chandler Festival, Chandler Gateway, and La Alameda, which are all unconsolidated properties at December 31, 2024. (10) Portion of property is currently under development. See further discussion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
(9) Aggregate information is calculated on a GLA weighted-average basis, excluding Chandler Festival, Chandler Gateway, and La Alameda, which are all unconsolidated properties at December 31, 2025. (10) Portion of property is currently under development. See further discussion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Retail and Residential Properties The following table sets forth information concerning all real estate projects in which we owned an equity interest, had a leasehold interest, or otherwise controlled and are consolidated as of December 31, 2024. Except as otherwise noted, we are the sole owner of our real estate projects.
Retail and Residential Properties The following table sets forth information concerning all real estate projects in which we owned an equity interest, had a leasehold interest, or otherwise controlled and are consolidated as of December 31, 2025. Except as otherwise noted, we are the sole owner of our real estate projects.
The following table shows the number of projects, the gross leasable area (“GLA”) of commercial space and the percentage of total portfolio gross leasable area of commercial space in each state as of December 31, 2024.
The following table shows the number of projects, the gross leasable area (“GLA”) of commercial space and the percentage of total portfolio gross leasable area of commercial space in each state as of December 31, 2025.
As a result of our tenant diversification, we believe our exposure to any one bankruptcy filing has not been and will not be significant, however, multiple filings by a number of tenants could have a significant impact. 19 Table of Contents Geographic Diversification Our 102 real estate projects are located in 12 states and the District of Columbia.
As a result of our tenant diversification, we 19 Table of Contents believe our exposure to any one bankruptcy filing has not been and will not be significant, however, multiple filings by a number of tenants could have a significant impact. Geographic Diversification Our 104 real estate projects are located in 14 states and the District of Columbia.
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 2024 generally become effective over the following two years though some may not become effective until 2027 and beyond.
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 2025 generally become effective over the following two years though some may not become effective until 2028 and beyond.
Costs related to tenant improvements require judgement by management in determining what are costs specific to the tenant and not deferred maintenance on the space.
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.
Some of our properties include office space which is included in this square footage. 27 Table of Contents (2) Average base rent per square foot is calculated as the aggregate, annualized in-place contractual (defined as cash basis excluding rent abatements) minimum rent for all occupied spaces divided by the aggregate GLA of all occupied spaces.
Some of our properties include office space which is included in this square footage. (2) Average base rent per square foot is calculated as the aggregate, annualized in-place contractual (defined as cash basis excluding rent abatements) minimum rent for all occupied spaces divided by the aggregate GLA of all occupied spaces. Average base rent is for commercial spaces only.
Leases on residential units are generally for a period of one year or less and, in 2024, represented approximately 9.6% of total rental income. 20 Table of Contents The following table sets forth the schedule of lease expirations for our commercial leases in place as of December 31, 2024 for each of the 10 years beginning with 2025 and after 2034 in the aggregate assuming that none of the tenants exercise future renewal options.
Leases on residential units are generally for a period of one year or less and, in 2025, represented approximately 8.7% of total rental income. 20 Table of Contents The following table sets forth the schedule of lease expirations for our commercial leases in place as of December 31, 2025 for each of the 10 years beginning with 2026 and after 2035 in the aggregate assuming that none of the tenants exercise future renewal options.
ITEM 2. PROPERTIES General As of December 31, 2024, we owned or had a majority ownership interest in community and neighborhood shopping centers and mixed-used properties which are operated as 102 predominantly retail real estate projects comprising approximately 26.8 million commercial square feet.
ITEM 2. PROPERTIES General As of December 31, 2025, we owned or had a majority ownership interest in community and neighborhood shopping centers and mixed-used properties which are operated as 104 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet.
In the past five years, we have executed comparable space leases for 1.7 to 2.4 million square feet of retail space each year and expect the volume for 2025 will be in line with these historical averages.
In the past five 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 for 2026 will be in line with these historical averages.
Fitness Bala Cynwyd on City Avenue Residential Bala Cynwyd, PA 19004 2020 1993 87 units N/A 92% Flourtown Flourtown, PA 19031 1957 1980 158,000 $23.23 98% Giant Food Movie Tavern Lancaster Lancaster, PA 17601(7) 1958 1980 126,000 $19.46 99% Giant Food AutoZone Langhorne Square Levittown, PA 19056 1966 1985 223,000 $20.10 98% Redner's Warehouse Markets Marshalls Planet Fitness Lawrence Park Broomall, PA 19008 1972 1980/2017 357,000 $25.15 100% Acme Markets TJ Maxx HomeGoods Barnes & Noble Lankenau Medical Center Northeast Philadelphia, PA 19114 1959 1983 209,000 $21.70 87% Marshalls Ulta Skechers Crunch Fitness Willow Grove Willow Grove, PA 19090 1953 1984 86,000 $25.59 98% Amazon Food Marshalls Five Below Wynnewood Wynnewood, PA 19096 1948 1996 237,000 $32.03 97% Giant Food Old Navy DSW 9 units N/A 67% Virginia 29th Place Charlottesville, VA 22091 1975-2001 2007 168,000 $21.50 99% HomeGoods DSW Staples Barcroft Plaza Falls Church, VA 22041 1963, 1972, 1990, & 2000 2006/2007/ 2016 113,000 $31.15 98% Harris Teeter 26 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Barracks Road Charlottesville, VA 22905 1958 1985 495,000 $29.22 91% Harris Teeter Kroger Anthropologie Old Navy Ulta Michaels Birch & Broad Falls Church, VA 22046 1960/1962 1967/1972 144,000 $39.23 100% Giant Food CVS Staples Chesterbrook McLean, VA 22101(4) 1967 2021 89,000 $28.70 83% Safeway Starbucks Fairfax Junction Fairfax, VA 22030(8) 1981, 1986, 2000 2019/2020 124,000 $28.82 97% Aldi CVS Planet Fitness Graham Park Plaza Falls Church, VA 22042 1971 1983 133,000 $39.64 95% Giant Food Idylwood Plaza Falls Church, VA 22030 1991 1994 73,000 $48.70 100% Whole Foods Kingstowne Towne Center Kingstowne, VA 22315 1996, 2001, 2006 2022 411,000 $28.36 100% Giant Food Safeway TJ Maxx HomeGoods Five Below Ross Dress for Less Mount Vernon/South Valley/ 7770 Richmond Hwy Alexandria, VA 22306(8) 1966, 1972,1987 & 2001 2003/2006/2021 565,000 $20.86 98% Shoppers Food Warehouse TJ Maxx Home Depot Old Navy Burlington Old Keene Mill Springfield, VA 22152 1968 1976 90,000 $45.74 100% Trader Joe's Walgreens Planet Fitness Pike 7 Plaza Vienna, VA 22180 1968 1997/2015 175,000 $49.15 98% Lidl TJ Maxx DSW Ulta Providence Place (formerly Pan Am) Fairfax, VA 22031 1979 1993 228,000 $23.93 96% Safeway Micro Center CVS Michaels Tower Shopping Center Springfield, VA 22150 1960 1998 109,000 $29.61 95% L.A.
Fitness Bala Cynwyd on City Avenue Residential Bala Cynwyd, PA 19004 2020 1993 87 units N/A 98% Flourtown Flourtown, PA 19031 1957 1980 158,000 $24.32 98% Giant Food Movie Tavern Lancaster Lancaster, PA 17601(7) 1958 1980 126,000 $20.42 98% Giant Food AutoZone Langhorne Square Levittown, PA 19056 1966 1985 226,000 $19.76 99% Redner's Warehouse Markets Marshalls Planet Fitness Lawrence Park Broomall, PA 19008 1972 1980/2017 357,000 $25.46 100% Acme Markets TJ Maxx HomeGoods Barnes & Noble Lankenau Medical Center Northeast Philadelphia, PA 19114 1959 1983 208,000 $22.79 96% Marshalls Ulta Skechers Crunch Fitness Willow Grove Willow Grove, PA 19090 1953 1984 86,000 $26.10 100% Amazon Food Marshalls Five Below 26 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Wynnewood Wynnewood, PA 19096 1948 1996 239,000 $32.54 97% Giant Food Old Navy DSW 9 units N/A 100% Virginia 29th Place Charlottesville, VA 22091 1975-2001 2007 168,000 $21.73 99% Lidl HomeGoods DSW Staples Barcroft Plaza Falls Church, VA 22041 1963, 1972, 1990, & 2000 2006/2007/ 2016 113,000 $32.78 98% Harris Teeter Barracks Road Charlottesville, VA 22905 1958 1985 487,000 $29.95 91% Harris Teeter Kroger Anthropologie Old Navy Ulta Michaels Birch & Broad Falls Church, VA 22046 1960/1962 1967/1972 144,000 $40.58 100% Giant Food CVS Staples Chesterbrook McLean, VA 22101(4) 1967 2021 89,000 $32.43 91% Safeway Starbucks Fairfax Junction Fairfax, VA 22030(8) 1981, 1986, 2000 2019/2020 124,000 $29.15 98% Aldi CVS Planet Fitness Graham Park Plaza Falls Church, VA 22042 1971 1983 133,000 $39.72 95% Giant Food Idylwood Plaza Falls Church, VA 22030 1991 1994 73,000 $51.51 98% Kingstowne Towne Center Kingstowne, VA 22315 1996, 2001, 2006 2022 411,000 $29.03 100% Giant Food Safeway TJ Maxx HomeGoods Ross Dress for Less Mount Vernon/South Valley/ 7770 Richmond Hwy Alexandria, VA 22306(8) 1966, 1972,1987 & 2001 2003/2006/2021 565,000 $21.43 97% Shoppers Food Warehouse TJ Maxx Home Depot Old Navy Burlington Ulta Old Keene Mill Springfield, VA 22152 1968 1976 90,000 $46.51 100% Trader Joe's Walgreens Planet Fitness Pike 7 Plaza Vienna, VA 22180 1968 1997/2015 175,000 $51.85 99% Lidl TJ Maxx DSW Ulta Providence Place (formerly Pan Am) Fairfax, VA 22031 1979 1993 228,000 $25.17 90% Safeway Micro Center CVS Michaels Tower Shopping Center Springfield, VA 22150 1960 1998 109,000 $31.09 99% L.A.
Tenant Diversification As of December 31, 2024, we had approximately 3,500 commercial leases and 3,100 residential leases, with commercial tenants ranging from sole proprietors to major national and international retailers. No one tenant or affiliated group of tenants accounted for more than 2.6% of our annualized base rent as of December 31, 2024.
Tenant Diversification As of December 31, 2025, we had approximately 3,700 commercial leases and 2,700 residential leases, with commercial tenants ranging from sole proprietors to major national and international retailers. No one tenant or affiliated group of tenants accounted for more than 2.4% of our annualized base rent as of December 31, 2025.
Annualized base rents reflect in-place contractual rents as of December 31, 2024.
Annualized base rents reflect in-place contractual rents as of December 31, 2025.
During 2023, we signed leases for a total of 2,091,000 square feet of retail space including 2,027,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 10% on a cash basis.
During 2024, we signed leases for a total of 2,434,000 square feet of retail space including 2,392,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 11% on a cash basis.
Average base rent is for commercial spaces only. (3) Percentage leased is expressed as a percentage of rentable commercial square feet occupied or subject to a lease. Residential percentage leased is expressed as a percentage of units occupied or subject to a lease. (4) We own the controlling interest in this property.
(3) Percentage leased is expressed as a percentage of rentable commercial square feet occupied or subject to a lease. Residential percentage leased is expressed as a percentage of units occupied or subject to a lease. (4) We own the controlling interest in this property. (5) We own a noncontrolling interest in this property.
Fitness Five Below Bala Cynwyd on City Avenue Bala Cynwyd, PA 19004 1955 1993 174,000 $37.82 95% Acme Markets Michaels L.A.
Fitness Five Below Bala Cynwyd on City Avenue Bala Cynwyd, PA 19004 1955 1993 174,000 $38.74 96% Acme Markets Michaels L.A.
(5) We own a noncontrolling interest in this property. (6) All or a portion of this property is encumbered by a mortgage loan. (7) All or a portion of this property is owned pursuant to a ground lease.
(6) All or a portion of this property is encumbered by a mortgage loan. (7) All or a portion of this property is owned pursuant to a ground lease.
Fitness HomeGoods Montrose Crossing Rockville, MD 20852 1960-1979, 1996, 2011 2011/2013 369,000 $34.83 100% Giant Food Marshalls Home Depot Design Center Old Navy Burlington Perring Plaza Baltimore, MD 21134 1963 1985 398,000 $16.97 100% Giant Food Home Depot Dick's Sporting Goods Micro Center Pike & Rose North Bethesda, MD 20852(10) 1963, 2014, 2018, 2020 1982/2007/ 2012 854,000 $46.55 100% Porsche Uniqlo REI H&M L.L.
Fitness HomeGoods Montrose Crossing Rockville, MD 20852 1960-1979, 1996, 2011 2011/2013 369,000 $35.06 98% Giant Food Marshalls Home Depot Design Center Old Navy Burlington Perring Plaza Baltimore, MD 21134 1963 1985 398,000 $17.07 91% Giant Food Home Depot Dick's Sporting Goods Micro Center Burlington Pike & Rose North Bethesda, MD 20852(10) 1963, 2014, 2018, 2020, 2025 1982/2007/ 2012 955,000 $47.31 100% Porsche Uniqlo REI H&M L.L.
New leases for comparable spaces were signed for 1,016,000 square feet at an average rental increase of 13% on a cash basis. Renewals for comparable spaces were signed for 1,011,000 square feet at an average rental increase of 8% on a cash basis.
New leases for comparable spaces were signed for 841,000 square feet at an average rental increase of 19% on a cash basis. Renewals for comparable spaces were signed for 1,499,000 square feet at an average rental increase of 12% on a cash basis.
State Number of Projects Gross Leasable Area Percentage of Gross Leasable Area (In square feet) California 20 6,394,000 23.8 % Virginia 20 4,767,000 17.8 % Maryland 17 4,526,000 16.9 % Massachusetts 7 2,251,000 8.4 % New Jersey 7 1,883,000 7.0 % Pennsylvania 9 1,822,000 6.8 % New York 7 1,500,000 5.6 % Florida 4 1,287,000 4.8 % Arizona 2 947,000 3.5 % Illinois 4 776,000 2.9 % Connecticut 3 420,000 1.6 % Michigan 1 205,000 0.7 % District of Columbia 1 54,000 0.2 % Total 102 26,832,000 100.0 % Leases, Lease Terms and Lease Expirations Our leases are classified as operating leases and typically are structured to require the monthly payment of minimum rents in advance, subject to periodic increases during the term of the lease, percentage rents based on the level of sales achieved by tenants, and reimbursement of a majority of on-site operating expenses and real estate taxes.
State Number of Projects Gross Leasable Area Percentage of Gross Leasable Area (In square feet) California 20 7,169,000 24.9 % Maryland 18 5,085,000 17.7 % Virginia 20 4,766,000 16.5 % Massachusetts 7 2,249,000 7.8 % New Jersey 7 1,886,000 6.5 % Pennsylvania 9 1,786,000 6.2 % New York 7 1,494,000 5.2 % Florida 4 1,287,000 4.5 % Arizona 2 908,000 3.2 % Illinois 4 778,000 2.7 % Kansas 1 552,000 1.9 % Nebraska 1 452,000 1.6 % Michigan 1 205,000 0.7 % Connecticut 2 156,000 0.5 % District of Columbia 1 25,000 0.1 % Total 104 28,798,000 100.0 % Leases, Lease Terms and Lease Expirations Our leases are classified as operating leases and typically are structured to require the monthly payment of minimum rents in advance, subject to periodic increases during the term of the lease, percentage rents based on the level of sales achieved by tenants, and reimbursement of a majority of on-site operating expenses and real estate taxes.
CVS Multiple Restaurants 7 units N/A 100% North Dartmouth North Dartmouth, MA 02747 2004 2006 48,000 $17.22 100% Stop & Shop Queen Anne Plaza Norwell, MA 02061 1967 1994 149,000 $21.55 99% Big Y Foods TJ Maxx HomeGoods Michigan Gratiot Plaza Roseville, MI 48066 1964 1973 205,000 $14.23 99% Kroger Best Buy DSW New Jersey Brick Plaza Brick Township, NJ 08723(7) 1958 1989 403,000 $23.10 97% Trader Joe's AMC HomeGoods Ulta Burlington Brook 35 Sea Grit, NJ 08750(4)(6)(8) 1986, 2004 2014 98,000 $41.59 94% Banana Republic Gap Tommy's Tavern + Tap Ellisburg Cherry Hill, NJ 08034 1959 1992 260,000 $18.64 99% Whole Foods Five Below RH Outlet Hoboken Hoboken, NJ 07030(4)(6)(12) 1887-2006 2019/2020/2022 171,000 $59.69 99% CVS New York Sports Club Sephora Multiple Restaurants 129 units N/A 99% Mercer on One (formerly Mercer Mall) Lawrenceville, NJ 08648(7) 1975 2003/2017/2023 549,000 $27.04 100% Shop Rite Nike Ross Dress for Less Nordstrom Rack REI Tesla The Grove at Shrewsbury Shrewsbury, NJ 07702(4)(6)(8) 1988, 1993 & 2007 2014 191,000 $53.76 100% Bloomies Lululemon Anthropologie Pottery Barn Williams-Sonoma 25 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Troy Hills Parsippany-Troy, NJ 07054 1966 1980 211,000 $19.75 100% Target Floor & Décor Michaels New York Fresh Meadows Queens, NY 11365 1949 1997 408,000 $41.03 98% Lidl Island of Gold AMC Kohl's Planet Fitness Georgetowne Shopping Center Brooklyn, NY 11234 1969, 2006, 2015 2019 147,000 $44.02 92% Foodway Five Below IHOP Greenlawn Plaza Greenlawn, NY 11743 1975, 2004 2006 103,000 $18.39 94% Greenlawn Farms Planet Fitness Hauppauge Hauppauge, NY 11788 1963 1998 134,000 $27.17 95% Shop Rite TJ Maxx Five Below Huntington Huntington, NY 11746 1962 1988/2007/ 2015 211,000 $36.01 98% Whole Foods Petsmart REI Ulta Container Store Huntington Square East Northport, NY 11731 1980, 2007 2010/2023 244,000 $24.21 94% Aldi At Home AMC Melville Mall Huntington, NY 11747(7) 1974 2006 253,000 $30.04 100% Uncle Giuseppe's Marketplace Marshalls Dick's Sporting Goods Public Lands Pennsylvania Andorra Philadelphia, PA 19128 1953 1988 252,000 $16.01 98% TJ Maxx Kohl's L.A.
Fitness HomeGoods Ulta Burlington Brook 35 Sea Grit, NJ 08750(4)(6)(8) 1986, 2004 2014 97,000 $42.96 100% Banana Republic Gap Tommy's Tavern + Tap Ellisburg Cherry Hill, NJ 08034 1959 1992 260,000 $21.18 100% Whole Foods Five Below RH Outlet 25 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Hoboken Hoboken, NJ 07030(4)(6)(12) 1887-2006 2019/2020/2022 171,000 $62.98 97% CVS New York Sports Club Sephora Multiple Restaurants 129 units N/A 96% Mercer on One Lawrenceville, NJ 08648(7) 1975 2003/2017/2023 551,000 $29.16 97% Shop Rite Nike Ross Dress for Less Nordstrom Rack REI Tesla The Grove at Shrewsbury Shrewsbury, NJ 07702(4)(6)(8) 1988, 1993 & 2007 2014 191,000 $56.91 99% Bloomies lululemon Anthropologie Pottery Barn Williams Sonoma Troy Hills Parsippany-Troy, NJ 07054 1966 1980 211,000 $20.09 99% Target Floor & Décor Michaels New York Fresh Meadows Queens, NY 11365 1949 1997 408,000 $41.67 99% Lidl Island of Gold AMC Kohl's Planet Fitness Georgetowne Shopping Center Brooklyn, NY 11234 1969, 2006, 2015 2019 147,000 $43.82 94% Foodway Five Below IHOP Greenlawn Plaza Greenlawn, NY 11743 1975, 2004 2006 103,000 $18.72 93% Greenlawn Farms Planet Fitness Hauppauge Hauppauge, NY 11788 1963 1998 134,000 $27.26 94% Shop Rite TJ Maxx Five Below Huntington Huntington, NY 11746 1962, 2024 1988/2007/ 2015 217,000 $37.02 97% Whole Foods Petsmart REI Ulta Huntington Square East Northport, NY 11731 1980, 2007 2010/2023 244,000 $23.07 90% Aldi 24 Hour Fitness AMC Melville Mall Huntington, NY 11747(7) 1974 2006 241,000 $30.84 100% Uncle Giuseppe's Marketplace Marshalls Dick's Sporting Goods Pennsylvania Andorra Philadelphia, PA 19128 1953 1988 212,000 $15.30 96% TJ Maxx Kohl's L.A.
Burlington Five Below Chelsea Commons Chelsea, MA 02150(6) 1962,1969, 2008 2006-2008 233,000 $15.64 100% Home Depot Planet Fitness CVS Burlington Dedham Plaza Dedham, MA 02026 1959 1993/2016/ 2019 253,000 $23.41 93% Star Market Planet Fitness Linden Square Wellesley, MA 02481 1960, 2008 2006 224,000 $52.81 98% Roche Bros.
Burlington Five Below Chelsea Commons Chelsea, MA 02150(6) 1962,1969, 2008 2006-2008 233,000 $15.88 99% Home Depot Planet Fitness CVS Burlington Dedham Plaza Dedham, MA 02026 1959 1993/2016/ 2019 253,000 $24.15 97% Star Market Planet Fitness Linden Square Wellesley, MA 02481 1960, 2008 2006 223,000 $53.28 97% Roche Bros.
Mart Total Wine & More Talbots Twinbrooke Centre Fairfax, VA 22032 1977 2021 101,000 $27.84 98% Safeway Walgreens Tyson's Station Falls Church, VA 22043 1954 1978 48,000 $52.70 97% Trader Joe's Village at Shirlington Arlington, VA 22206(7) 1940, 2006-2009 1995 277,000 $40.74 87% Harris Teeter CVS AMC Multiple Restaurants Virginia Gateway Gainesville, VA 20015 1999, 2006-2008, 2013-2016 2024 664,000 $27.15 98% Giant Food HomeGoods Total Wine & More Best Buy Ulta Westpost Arlington, VA 22202 2001-2002 1998/2010 298,000 $34.14 98% Harris Teeter Target TJ Maxx Ulta Walgreens DSW Willow Lawn Richmond, VA 23230 1957 1983 462,000 $23.48 99% Kroger Old Navy Ross Dress for Less Gold's Gym Dick's Sporting Goods Ulta Total — Commercial (9) 26,832,000 $31.81 96% Total —Residential 3,104 units 95% _____________________ (1) Represents the GLA of the commercial portion of the property.
Mart Total Wine & More Talbots Twinbrooke Centre Fairfax, VA 22032 1977 2021 103,000 $30.42 98% Safeway Outback Steakhouse Tyson's Station Falls Church, VA 22043 1954 1978 48,000 $54.82 96% Trader Joe's Village at Shirlington Arlington, VA 22206(7) 1940, 2006-2009 1995 277,000 $41.22 91% Harris Teeter CVS AMC Multiple Restaurants Virginia Gateway Gainesville, VA 20015 1999, 2006-2008, 2013-2016 2024 668,000 $27.56 98% Giant Food HomeGoods Total Wine & More Best Buy Ulta Westpost Arlington, VA 22202 2001-2002 1998/2010 298,000 $35.22 99% Harris Teeter Target TJ Maxx Ulta Walgreens DSW 27 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Willow Lawn Richmond, VA 23230 1957 1983 463,000 $23.49 98% Kroger Old Navy Ross Dress for Less Gold's Gym Dick's Sporting Goods Ulta Total — Commercial (9) 28,798,000 $32.79 96% Total —Residential 2,678 units 95% _____________________ (1) Represents the GLA of the commercial portion of the property.
Fitness Staples 24 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) THE AVENUE at White Marsh Baltimore, MD 21236(8) 1997 2007 315,000 $28.97 99% AMC Ulta Old Navy Nike The Shoppes at Nottingham Square Baltimore, MD 21236 2005-2006 2007 33,000 $54.96 100% White Marsh Other Baltimore, MD 21236 1985 2007 51,000 $39.79 100% White Marsh Plaza Baltimore, MD 21236 1987 2007 80,000 $24.07 98% Giant Food Wildwood Bethesda, MD 20814 1958 1969 88,000 $110.97 100% Balducci's CVS Multiple Restaurants Massachusetts Assembly Row/ Assembly Square Marketplace Somerville, MA 02145(10) 2005, 2014, 2018, 2021 2005-2011/ 2013 1,230,000 $40.76 97% Trader Joe's TJ Maxx AMC Nike Bob's Discount Furniture PUMA Multiple Restaurants Assembly Row Residential Somerville, MA 02145 2018, 2021 2005-2011 947 units N/A 94% Campus Plaza Bridgewater, MA 02324 1970 2004 114,000 $19.44 96% Roche Bros.
Fitness Staples THE AVENUE at White Marsh Baltimore, MD 21236(8) 1997 2007 315,000 $29.05 100% AMC Ulta Old Navy Nike The Shoppes at Nottingham Square Baltimore, MD 21236 2005-2006 2007 33,000 $55.48 100% White Marsh Other Baltimore, MD 21236 1985 2007 43,000 $47.89 100% White Marsh Plaza Baltimore, MD 21236 1987 2007 80,000 $24.55 98% Giant Food Wildwood Bethesda, MD 20814 1958 1969 88,000 $114.79 100% Balducci's CVS Multiple Restaurants Massachusetts Assembly Row/ Assembly Square Marketplace Somerville, MA 02145(10) 2005, 2014, 2018, 2021 2005-2011/ 2013 1,230,000 $41.61 98% Trader Joe's TJ Maxx AMC Nike Burlington World Market PUMA Multiple Restaurants Assembly Row Residential Somerville, MA 02145 2018, 2021 2005-2011 947 units N/A 94% Campus Plaza Bridgewater, MA 02324 1970 2004 113,000 $20.28 100% Roche Bros.
Tenant improvements and incentives for comparable spaces were $29.84 per square foot, of which, $56.95 per square foot was for new leases and $2.60 per square foot was for renewals in 2023.
Tenant improvements and incentives for comparable spaces were $23.18 per square foot, of which, $53.34 per square foot was for new leases and $6.26 per square foot was for renewals in 2025.
Fitness Ulta Binny's Ferguson's Bath, Kitchen, & Lighting Gallery Finley Square Downers Grove, IL 60515 1974 1995 258,000 $21.04 79% Michaels Five Below Portillo's Garden Market Western Springs, IL 60558 1958 1994 139,000 $15.91 99% Mariano's Fresh Market Walgreens Riverpoint Center Chicago, IL 60614 1989, 2012 2017 211,000 $21.47 94% Jewel Osco Marshalls Old Navy Maryland Bethesda Row Bethesda, MD 20814(6)(7) 1945-1991 2001, 2008 1993-2006/ 2008/2010 530,000 $58.81 97% Giant Food Apple Anthropologie Equinox Multiple Restaurants Bethesda Row Residential Bethesda, MD 20814 (6) 2008 1993 180 units N/A 93% Congressional Plaza Rockville, MD 20852(4) 1965 1965 325,000 $39.71 94% The Fresh Market Ulta Barnes & Noble Container Store Congressional Plaza Residential Rockville, MD 20852(4) 2003, 2016 1965 194 units N/A 96% Courthouse Center Rockville, MD 20852 1975 1997 33,000 $27.85 81% Federal Plaza Rockville, MD 20852 1970 1989 249,000 $39.81 94% Trader Joe's TJ Maxx Micro Center Ross Dress for Less Gaithersburg Square Gaithersburg, MD 20878 1966 1993 204,000 $32.78 98% Marshalls Ross Dress for Less Ashley Furniture HomeStore CVS Governor Plaza Glen Burnie, MD 21961 1963 1985 243,000 $19.96 100% Aldi Dick's Sporting Goods Ross Dress for Less Petco Bob's Discount Furniture Laurel Laurel, MD 20707 1956 1986 367,000 $24.74 96% Giant Food Marshalls L.A.
Fitness Ulta Binny's Ferguson Home 23 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Finley Square Downers Grove, IL 60515 1974 1995 258,000 $18.96 93% Marshalls Home Goods Michaels Portillo's Garden Market Western Springs, IL 60558 1958 1994 141,000 $16.62 100% Mariano's Fresh Market Walgreens Riverpoint Center Chicago, IL 60614 1989, 2012 2017 211,000 $22.00 98% Jewel Osco Marshalls Old Navy Kansas Town Center Crossing/Town Center Plaza Leawood, KS 66209 1995, 2005-2008, 2014, 2015 2025 552,000 $37.14 95% Trader Joe's Crate & Barrel Pottery Barn Restoration Hardware Apple Aritzia Maryland Annapolis Town Center Annapolis, MD 21401 2007-2010 2025 479,000 $34.67 90% Whole Foods Restoration Hardware Pottery Barn Williams Sonoma Life Time Fitness Anthropologie Bethesda Row Bethesda, MD 20814(6)(7) 1945-1991 2001, 2008 1993-2006/ 2008/2010 532,000 $60.65 99% Giant Food Apple Anthropologie Equinox Multiple Restaurants Bethesda Row Residential Bethesda, MD 20814 (6) 2008 1993 180 units N/A 92% Congressional Plaza Rockville, MD 20852(4) 1965 1965 309,000 $46.87 91% The Fresh Market Ulta Barnes & Noble Container Store Congressional Plaza Residential Rockville, MD 20852(4) 2003, 2016 1965 194 units N/A 95% Courthouse Center Rockville, MD 20852 1975 1997 33,000 $30.44 81% Federal Plaza Rockville, MD 20852 1970 1989 249,000 $40.51 96% Trader Joe's TJ Maxx Micro Center Ross Dress for Less Gaithersburg Square Gaithersburg, MD 20878 1966 1993 205,000 $33.44 98% Marshalls Ross Dress for Less Ashley Furniture HomeStore CVS Governor Plaza Glen Burnie, MD 21961 1963 1985 243,000 $20.62 100% Aldi Dick's Sporting Goods Ross Dress for Less Petco Bob's Discount Furniture Laurel Laurel, MD 20707 1956 1986 367,000 $25.27 96% Giant Food Marshalls L.A.
Fitness Shops at Pembroke Gardens Pembroke Pines, FL 33027 2007 2022 391,000 $31.98 99% Nike Factory Old Navy DSW Barnes & Noble Tower Shops Davie, FL 33324 1989, 2017 2011/2014 431,000 $28.17 99% Trader Joe's TJ Maxx Ross Dress for Less Best Buy Ulta 23 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Illinois Crossroads Highland Park, IL 60035 1959 1993 168,000 $23.56 95% L.A.
Fitness Shops at Pembroke Gardens Pembroke Pines, FL 33027 2007 2022 391,000 $33.70 100% Nike Factory Old Navy DSW Barnes & Noble Tower Shops Davie, FL 33324 1989, 2017 2011/2014 431,000 $30.53 99% Trader Joe's TJ Maxx Ross Dress for Less Best Buy Ulta Illinois Crossroads Highland Park, IL 60035 1959 1993 168,000 $21.52 97% L.A.
Year of Lease Expiration Leased Square Footage Expiring Percentage of Leased Square Footage Expiring Annualized Base Rent Represented by Expiring Leases Percentage of Annualized Base Rent Represented by Expiring Leases 2025 1,840,000 7 % $ 50,270,000 6 % 2026 2,635,000 10 % 78,748,000 10 % 2027 3,109,000 12 % 101,199,000 13 % 2028 2,822,000 11 % 89,376,000 11 % 2029 3,529,000 14 % 116,085,000 14 % 2030 2,152,000 9 % 65,247,000 8 % 2031 1,405,000 6 % 48,918,000 6 % 2032 2,280,000 9 % 77,122,000 10 % 2033 1,485,000 6 % 48,238,000 6 % 2034 1,253,000 5 % 39,630,000 5 % Thereafter 2,731,000 11 % 88,177,000 11 % Total 25,241,000 100 % $ 803,010,000 100 % During 2024, we signed leases for a total of 2,434,000 square feet of retail space including 2,392,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 11% on a cash basis.
Year of Lease Expiration Leased Square Footage Expiring Percentage of Leased Square Footage Expiring Annualized Base Rent Represented by Expiring Leases Percentage of Annualized Base Rent Represented by Expiring Leases 2026 1,859,000 7 % $ 51,872,000 6 % 2027 3,016,000 11 % 101,069,000 11 % 2028 3,300,000 12 % 99,794,000 11 % 2029 3,726,000 14 % 127,878,000 14 % 2030 2,879,000 11 % 94,113,000 11 % 2031 2,197,000 8 % 76,161,000 9 % 2032 2,572,000 9 % 90,735,000 10 % 2033 1,607,000 6 % 54,261,000 6 % 2034 1,403,000 5 % 44,586,000 5 % 2035 1,886,000 7 % 67,991,000 8 % Thereafter 2,650,000 10 % 79,917,000 9 % Total 27,095,000 100 % $ 888,377,000 100 % During 2025, we signed leases for a total of 2,471,000 square feet of retail space including 2,340,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 15% on a cash basis.
These properties are located primarily in densely populated and affluent communities in strategic metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, California, and South Florida. No single commercial or residential property accounted for over 10% of our 2024 total revenue.
These properties are located primarily in major coastal markets and select underserved markets that we believe have strong economic and demographic fundamentals. No single commercial or residential property accounted for over 10% of our 2025 total revenue.
Bean Choice Hotels Multiple Restaurants Pike & Rose Residential North Bethesda, MD 20852 2014, 2016, 2018 1982/2007 765 units N/A 96% Plaza Del Mercado Silver Spring, MD 20906 1969 2004 116,000 $34.45 98% Aldi CVS L.A. Fitness Quince Orchard Gaithersburg, MD 20877(7) 1975 1993 271,000 $25.61 87% Aldi HomeGoods L.A.
Bean Choice Hotels Multiple Restaurants 24 Table of Contents Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Pike & Rose Residential North Bethesda, MD 20852 2014, 2018 1982/2007 447 units N/A 94% Plaza Del Mercado Silver Spring, MD 20906 1969 2004 116,000 $35.01 97% Aldi CVS L.A.
Removed
Property, City, State, Zip Code Year Completed Year Acquired Square Feet(1) /Apartment Units Average Base Rent Per Square Foot(2) Percentage Leased(3) Principal Tenant(s) Arizona Camelback Colonnade Phoenix, AZ 85016(4) 1977, 2019 2021 642,000 $18.40 94% Fry's Food & Drug Marshalls Nordstrom Last Chance Best Buy Floor & Décor Chandler Festival Chandler, AZ 85224(5)(6) 2000 2022 355,000 $19.01 90% Ross Dress for Less Nordstrom Rack TJ Maxx Ulta Chandler Gateway Chandler, AZ 85226(5)(6) 2001 2022 262,000 $10.83 98% Walmart Hobby Lobby Petco The Shops at Hilton Village Scottsdale, AZ 85250(4)(7) 1982, 1989 2021/2022 305,000 $36.25 86% CVS Houston's California Azalea South Gate, CA 90280(4)(6) 2014 2017 226,000 $31.37 100% Marshalls Ross Dress for Less Ulta Michaels Bell Gardens Bell Gardens, CA 90201(4)(6)(7) 1990, 2003, 2006 2017/2018 371,000 $24.01 98% Food 4 Less El Super Marshalls Ross Dress for Less Bob's Discount Furniture Colorado Blvd Pasadena, CA 91103(7) 1905-1988 1998 42,000 $62.89 73% Banana Republic True Food Kitchen Crow Canyon Commons San Ramon, CA 94583 1980, 1998, 2006 2005/2007 239,000 $36.81 85% Sprouts Total Wine & More Alamo Ace Hardware East Bay Bridge Emeryville & Oakland, CA 94608 1994-2001, 2011, 2012 2012 441,000 $21.26 88% Pak-N-Save Target Home Depot Nordstrom Rack Michaels Escondido Promenade Escondido, CA 92029 1987 1996/2010 298,000 $30.87 98% TJ Maxx Dick's Sporting Goods Ross Dress for Less Bob's Discount Furniture Fourth Street Berkeley, CA 94710(4) 1948, 1975 2017 71,000 $40.38 47% CB2 Bellwether Coffee Freedom Plaza Los Angeles, CA 90002(4)(7) 2020 2018 114,000 $32.02 95% Smart & Final Nike Blink Fitness Ross Dress for Less Grossmont Center La Mesa, CA 91942(4) 1961, 1963, 1982-1983, 2002 2021 877,000 $14.93 96% Target Walmart Barnes & Noble Macy's CVS Hastings Ranch Plaza Pasadena, CA 91107(7) 1958, 1984, 2006, 2007 2017 273,000 $9.49 100% Marshalls HomeGoods CVS Hollywood Blvd Hollywood, CA 90028 1929, 1991 1999 181,000 $32.65 86% Target Marshalls L.A.
Added
Fitness Quince Orchard Gaithersburg, MD 20877(7) 1975 1993 271,000 $26.17 87% Aldi HomeGoods L.A.
Added
CVS Multiple Restaurants 7 units N/A 100% North Dartmouth North Dartmouth, MA 02747 2004 2006 48,000 $17.22 100% Stop & Shop Queen Anne Plaza Norwell, MA 02061 1967 1994 149,000 $21.65 99% Big Y Foods TJ Maxx HomeGoods Michigan Gratiot Plaza Roseville, MI 48066 1964 1973 205,000 $14.68 85% Kroger Best Buy Bob's Discount Furniture Nebraska Village Pointe Omaha, NE 68118 2004 2025 452,000 $26.43 96% Nordstrom Rack Best Buy Apple Sephora lululemon New Jersey Brick Plaza Brick Township, NJ 08723(7) 1958 1989 405,000 $23.66 97% Trader Joe's L.A.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+3 added−0 removed12 unchanged
Biggest changePrice Per Share Dividends Declared Per Share High Low 2024 Fourth quarter $ 118.09 $ 109.41 $ 1.100 Third quarter $ 118.34 $ 99.64 $ 1.100 Second quarter $ 105.98 $ 95.98 $ 1.090 First quarter $ 104.54 $ 97.13 $ 1.090 2023 Fourth quarter $ 107.61 $ 85.59 $ 1.090 Third quarter $ 104.58 $ 89.90 $ 1.090 Second quarter $ 100.67 $ 85.27 $ 1.080 First quarter $ 115.08 $ 90.44 $ 1.080 On February 10, 2025, there were 1,906 holders of record of our common shares.
Biggest changePrice Per Share Dividends Declared Per Share High Low 2025 Fourth quarter $ 102.81 $ 90.03 $ 1.130 Third quarter $ 102.94 $ 89.99 $ 1.130 Second quarter $ 99.37 $ 80.65 $ 1.100 First quarter $ 111.82 $ 94.58 $ 1.100 2024 Fourth quarter $ 118.09 $ 109.41 $ 1.100 Third quarter $ 118.34 $ 99.64 $ 1.100 Second quarter $ 105.98 $ 95.98 $ 1.090 First quarter $ 104.54 $ 97.13 $ 1.090 On February 9, 2026, there were 1,780 holders of record of our common shares.
No assurances can be given regarding what portion, if any, of distributions in 2025 or subsequent years will constitute a return of capital for federal income tax purposes.
No assurances can be given regarding what portion, if any, of distributions in 2026 or subsequent years will constitute a return of capital for federal income tax purposes.
Total Stockholder Return Performance The following performance graph compares the cumulative total shareholder return on Federal Realty's common shares with the S&P 500 Index and the index of equity real estate investment trusts prepared by the National Association of Real Estate Investment Trusts ("NAREIT") for the five fiscal years commencing December 31, 2019, and ending December 31, 2024, assuming an investment of $100 and the reinvestment of all dividends into additional common shares during the holding period.
Total Stockholder Return Performance The following performance graph compares the cumulative total shareholder return on Federal Realty's common shares with the S&P 500 Index and the index of equity real estate investment trusts prepared by the National Association of Real Estate Investment Trusts ("NAREIT") for the five fiscal years commencing December 31, 2020, and ending December 31, 2025, assuming an investment of $100 and the reinvestment of all dividends into additional common shares during the holding period.
During the three months ended December 31, 2024, we issued 14,051 common shares in connection with the redemption of downREIT operating partnership units. Any equity securities sold by us during 2024 that were not registered have been previously reported in a Quarterly Report on Form 10-Q.
During the three months ended December 31, 2025, no common shares in connection with the redemption of downREIT operating partnership units were issued. Any equity securities sold by us during 2025 that were not registered have been previously reported in a Quarterly Report on Form 10-Q.
The following table reflects the income tax status of distributions per share paid to common shareholders: Year Ended December 31, 2024 2023 Ordinary dividend $ 3.583 $ 3.551 Capital gain 0.656 0.130 Return of capital 0.131 0.649 $ 4.370 $ 4.330 Distributions on our 5.417% Series 1 Cumulative Convertible Preferred Shares were paid at the rate of $1.354 per share per annum commencing on the issuance date of March 8, 2007.
The following table reflects the income tax status of distributions per share paid to common shareholders: Year Ended December 31, 2025 2024 Ordinary dividend $ 3.810 $ 3.583 Capital gain 0.620 0.656 Return of capital — 0.131 $ 4.430 $ 4.370 Distributions on our 5.417% Series 1 Cumulative Convertible Preferred Shares were paid at the rate of $1.354 per share per annum commencing on the issuance date of March 8, 2007.
We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our regular annual dividend rate for 57 consecutive years. Our total annual dividends paid per common share for 2024 and 2023 were $4.37 per share and $4.33 per share, respectively.
We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our regular annual dividend rate for 58 consecutive years. Our total annual dividends paid per common share for 2025 and 2024 were $4.43 per share and $4.37 per share, respectively.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers During 2024, 332 restricted common shares were forfeited by former employees. 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. 30 Table of Contents ITEM 6. RESERVED None.
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 6. RESERVED None.
Added
Purchases of Equity Securities by the Issuer and Affiliated Purchasers In April 2025, our Board of Trustees approved a new common share repurchase program, under which we may 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.
Added
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 30 Table of Contents general market conditions, along with our working capital requirements, cash flow, and other factors.
Added
The program does not require us to repurchase any dollar amount or number of common shares and may be suspended or discontinued at any time. As of December 31, 2025, no common shares have been repurchased through the program. During 2025, 5,489 restricted common shares were forfeited by former employees.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

100 edited+33 added−44 removed54 unchanged
Biggest changeThe increase was primarily attributable to: 41 Table of Contents • a $325.0 million increase in repayment of senior notes due to the January 2024 repayment of our $600.0 million 3.95% senior unsecured notes at maturity, as compared to the June 2023 repayment of our $275.0 million 2.75% senior unsecured notes, • $199.2 million in net proceeds from the mortgage loan secured by our Bethesda Row property, which was entered into in December 2023, • a $19.4 million premium paid for the capped call transaction entered into in connection with the issuance of $485.0 million 3.25% exchangeable senior notes in January 2024, • a $12.4 million increase in dividends paid to common and preferred shareholders due to an increase in the number of outstanding shares, as well as an increase to the common share dividend rate, and • a $12.3 million increase in distributions to and redemptions of noncontrolling interests primarily related to our April 2024 acquisition of the noncontrolling interest in the partnership that owns our CocoWalk property for approximately $12.4 million, partially offset by, • a $172.2 million increase in net proceeds from the issuance of common shares under our ATM program, • a $125.8 million net increase in proceeds from the issuance of senior notes due to net proceeds of $471.5 million from the issuance of $485.0 million 3.25% exchangeable senior notes in January 2024, as compared to $345.7 million in net proceeds from the issuance of $350.0 million of 5.375% senior unsecured notes in April 2023, and • a $55.0 million decrease in repayment of mortgages, finance leases, and notes payable primarily due to the October 2023 finance lease buyout (see Note 3 to the consolidated financial statements for additional information) Cash Requirements The following table provides a summary of material cash requirements comprising our fixed, noncancelable obligations as of December 31, 2024: Cash Requirements by Period Total Next Twelve Months Greater than Twelve Months (In thousands) Fixed and variable rate debt (principal only) (1) $ 4,496,724 $ 848,130 $ 3,648,594 Fixed and variable rate debt - our share of unconsolidated real estate partnerships (principal only)(2) 62,467 34,877 27,590 Lease obligations (minimum rental payments) (3) 287,930 6,608 281,322 Redevelopments/capital expenditure contracts 252,365 228,394 23,971 Real estate commitments (4) 9,713 — 9,713 Total estimated cash requirements $ 5,109,199 $ 1,118,009 $ 3,991,190 _____________________ (1) The weighted average interest rate on our fixed and variable rate debt is 3.9% as of December 31, 2024.
Biggest changeThe decrease was primarily attributable to: • $600.0 million from the January 2024 repayment of our $600.0 million 3.95% senior unsecured notes at maturity, • $310.0 million in borrowings on our revolving credit facility at December 31, 2025, • $145.0 million in net proceeds from our unsecured term loan in 2025, • a $19.4 million premium paid for the capped call transactions entered into in connection with the issuance of $485.0 million 3.25% exchangeable senior notes in January 2024, and • $14.4 million in net proceeds from the refinance of the $40.0 million loan at Azalea, with a new $55.0 million mortgage loan (see Note 5 to the consolidated financial statements for additional information), partially offset by • $471.5 million in net proceeds from the issuance of $485.0 million 3.25% exchangeable senior notes in January 2024, • a $249.6 million decrease in net proceeds from the issuance of common shares under our ATM program, and • a $16.5 million increase in dividends paid to common and preferred shareholders due to an increase in the number of outstanding shares, as well as an increase to the common share dividend rate.
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 to property operating income 36 Table of Contents within the calendar year.
We typically remove properties from 36 Table of Contents comparable properties when the repositioning of the asset has commenced and has or is expected to have a significant impact to property operating income within the calendar year.
Gain on Sale of Real Estate The $54.0 million gain on sale of real estate for the year ended December 31, 2024 is due primarily to the sale of Third Street Promenade and a portion of our White Marsh Other property (see Note 3 to the consolidated financial statements for additional information).
The $54.0 million gain on sale of real estate for the year ended December 31, 2024 is due primarily to the sale of Third Street Promenade and a portion of our White Marsh Other property (see Note 3 to the consolidated financial statements for additional information).
We compute FFO in accordance with the NAREIT definition, and we have historically reported our FFO available for common shareholders in addition to our net income and net cash provided by operating activities.
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.
We use FFO primarily as one of several means of assessing our operating performance in comparison with other REITs. Comparison of our presentation of 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.
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.
It should be noted that 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.
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.
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, inflation, higher interest rates, and higher operating costs.
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, inflation, tariffs, higher interest rates, and higher operating costs.
An increase or decrease in 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.
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.
We consider 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 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.
Therefore, a significant increase in FFO will generally require an increase in distributions to shareholders although not necessarily on a proportionate basis.
Therefore, a significant increase in Nareit FFO will generally require an increase in distributions to shareholders although not necessarily on a proportionate basis.
We are committed to implementing sustainable business practices at our operating properties that focus on energy efficiency, water conservation and waste minimization and have established greenhouse gas (GHG) emissions reduction targets in accordance with the Science-Based Targets initiative as well as energy reduction targets.
We are committed to implementing sustainable business practices at our operating properties that focus on energy efficiency, water conservation and waste minimization and have established greenhouse gas (GHG) emissions reduction targets in accordance with the Science-Based Targets initiative.
In our 2023 Sustainability report, we provided a disclosure pursuant to the Task Force on Climate Related Financial Disclosure and we intend to provide that disclosure annually. We are also highly committed to our employees and fostering a work environment that promotes growth, development and personal well-being.
In our 2024 sustainability report, we provided a disclosure pursuant to the Task Force on Climate Related Financial Disclosure and we intend to provide that disclosure annually. We are also highly committed to our employees and fostering a work environment that promotes growth, development and personal well-being.
Based on management's current estimate of fair market value as of December 31, 2024, our estimated maximum liability upon exercise of the put option would range from $8 million to $9 million. (d) The other member in Hoboken has the right to require us to purchase all of its 10% ownership interest at the interest's then-current fair market value.
Based on management's current estimate of fair market value as of December 31, 2025, our estimated maximum liability upon exercise of the put option would range from $9 million to $10 million. (d) The other member in Hoboken has the right to require us to purchase all of its 10% ownership interest at the interest's then-current fair market value.
Based on management's current estimate of fair value as of December 31, 2024, our estimated maximum liability upon exercise of the put option would range from $4 million to $5 million.
Based on management's current estimate of fair value as of December 31, 2025, our estimated maximum liability upon exercise of the put option would range from $4 million to $5 million.
Based on management's current estimate of fair value as of December 31, 2024, our estimated maximum liability upon exercise of the put option would range from $1 million and $2 million.
Based on management's current estimate of fair value as of December 31, 2025, our estimated maximum liability upon exercise of the put option would range from $1 million and $2 million.
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 December 31, 2024, the leasable commercial square feet in our properties was 96.2% leased and 94.1% occupied.
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 December 31, 2025, the leasable commercial square feet in our properties was 96.1% leased and 94.1% occupied.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on February 12, 2024.
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission on February 13, 2025.
We continue 35 Table of Contents 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 mitigates any potential negative changes in the economic environment.
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 mitigates any potential negative changes in the economic environment.
Based on management's current estimate of fair value as of December 31, 2024, our estimated maximum liability upon exercise of the put option would range from $68 million to $73 million. (h) At December 31, 2024, we had letters of credit outstanding of approximately $5.9 million.
Based on management's current estimate of fair value as of December 31, 2025, our estimated maximum liability upon exercise of the put option would range from $68 million to $73 million. (h) At December 31, 2025, we had letters of credit outstanding of approximately $5.5 million.
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. At December 31, 2024, no single tenant accounted for more than 2.6% of annualized base rent.
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. At December 31, 2025, no single tenant accounted for more than 2.4% of annualized base rent.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
Funds From Operations Funds from operations (“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.
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.
If the amounts allocated in 2024 and 2023 to below market lease liabilities and building assets were each reduced by 5% of the total purchase price, annual below market lease liability amortization increasing rental income would decrease by approximately $0.8 million (using the weighted average life of below market liabilities at each respective acquired property) and annual depreciation expense would decrease by approximately $0.4 million (using a depreciable life of 35 years).
If the amounts allocated in 2025 and 2024 to below market lease liabilities and building assets were each reduced by 5% of the total purchase price, annual below market lease liability amortization increasing rental income would decrease by approximately $3.8 million (using the weighted average life of below market liabilities at each respective acquired property) and annual depreciation expense would decrease by approximately $1.5 million (using a depreciable life of 35 years).
For example, in the event that our collectibility determinations were not accurate and we were required to write off additional receivables equaling 1% of rental income, our rental income and net income would decrease by $11.7 million.
For example, in the event that our collectibility determinations were not accurate and we were required to write off additional receivables equaling 1% of rental income, our rental income and net income would decrease by $12.5 million.
Based on management's current estimate of fair market value as of December 31, 2024, our estimated maximum liability upon exercise of the put option would range from $11 million to $12 million.
Based on management's current estimate of fair market value as of December 31, 2025, our estimated maximum liability upon exercise of the put option would range from $12 million to $13 million.
We continue to experience strong demand for our commercial space as evidenced by the 2.4 million square feet of comparable space leasing we've completed in 2024, and the 2.1% spread between our leased rate of 96.2% and our occupied rate of 94.1%.
We continue to experience strong demand for our commercial space as evidenced by the 2.3 million square feet of comparable space leasing we've completed in 2025, and the 2.0% spread between our leased rate of 96.1% and our occupied rate of 94.1%.
As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income increased to 21.3% for the year ended December 31, 2024 from 21.0% for the year ended December 31, 2023.
As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income increased to 21.5% for the year ended December 31, 2025 from 21.3% for the year ended December 31, 2024.
(b) Under the terms of various other partnership agreements, the partners have the right to exchange their operating partnership units for cash or the same number of our common shares, at our option. As of December 31, 2024, a total of 608,348 downREIT operating partnership units are outstanding.
(b) Under the terms of various other partnership agreements, the partners have the right to exchange their operating partnership units for cash or the same number of our common shares, at our option. As of December 31, 2025, a total of 526,915 downREIT operating partnership units are outstanding.
If the other minority partner defaults in their obligation, we must purchase the full interest. Based on management’s current 42 Table of Contents estimate of fair market value as of December 31, 2024, our estimated liability upon exercise of the put option would range from approximately $60 million to $63 million.
If the other minority partner defaults in their obligation, we must purchase the full interest. Based on management’s current estimate of fair market value as of December 31, 2025, our estimated liability upon exercise of the put option would range from approximately $62 million to $63 million.
(5) The maximum amount drawn under our $1.25 billion revolving credit facility during 2024 was $202.7 million and the weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 6.1%. (6) The Operating Partnership is the obligor under our revolving credit facility, term loan, and senior notes and debentures.
(6) The maximum amount drawn under our $1.25 billion revolving credit facility during 2025 was $461.6 million and the weighted average effective interest rate on borrowings under our revolving credit facility, before amortization of debt fees, was 5.0%. (7) The Operating Partnership is the obligor under our revolving credit facility, term loans, senior notes and debentures.
We continue to have several development projects in process being delivered as follows: • Phase IV at Pike & Rose is a 276,000 square foot office building (which includes 10,000 square feet of ground floor retail space). Approximately 220,000 square feet of the office space is leased and all of the retail space is leased.
We continue to have several development projects in process being delivered as follows: • Phase IV at Pike & Rose is a 272,000 square foot office building (which includes 10,000 square feet of ground floor retail space). All of the space is leased, of which, 249,000 square feet is occupied.
For the year ended 2024, the weighted average amount of borrowings outstanding on our revolving credit facility was $33.5 million, and the weighted average interest rate, before amortization of debt fees, was 6.1%. Our capital requirements in 2025 will depend on acquisition opportunities, the level and general timing of our redevelopment and development activities, and the overall economic environment.
For the year ended 2025, the weighted average amount of borrowings outstanding on our revolving credit facility was $153.2 million, and the weighted average interest rate, before amortization of debt fees, was 5.0%. Our capital requirements in 2026 will depend on acquisition opportunities, the level and general timing of our redevelopment and development activities, and the overall economic environment.
Hedge ineffectiveness has not impacted our earnings in 2024, 2023 and 2022. 45 Table of Contents REIT Qualification We intend to maintain our qualification as a REIT under Section 856(c) of the Code.
Hedge ineffectiveness has not impacted earnings in 2025, 2024 and 2023. REIT Qualification We intend to maintain our qualification as a REIT under Section 856(c) of the Code.
We currently have development and redevelopment projects in various stages of construction with remaining costs of $228 million. We expect to incur the majority of those costs in the next two years. We expect other capital costs to be at levels consistent with 2024.
We currently have development and redevelopment projects in various stages of construction with remaining costs of $322 million. We expect to incur the majority of those costs in the next two years. We expect other capital costs (excluding acquisitions) to be at levels consistent with 2025.
For the year ended December 31, 2024 and the comparison of 2023, all or a portion of 95 properties were considered comparable properties and seven were considered non-comparable properties.
For the year ended December 31, 2025 and the comparison of 2024, all or a portion of 94 properties were considered comparable properties and seven were considered non-comparable properties.
Given our ability to access the capital markets, we also expect debt or equity to be available to us, although newly issued debt would likely be at higher interest rates than we currently have outstanding.
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 utilize methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. The value allocated to acquired leases is amortized over the related lease term and reflected as rental income in the statement of operations.
Based on these estimates, we allocate the purchase price to the applicable assets and liabilities. We utilize methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. The value allocated to acquired leases is amortized over the related lease term and reflected as rental income in the statement of operations.
Off-Balance Sheet Arrangements At December 31, 2024, we have four real estate related equity method investments with total debt outstanding of $151.3 million, of which our share is $62.5 million. Our investment in these ventures at December 31, 2024 was $29.4 million.
Off-Balance Sheet Arrangements At December 31, 2025, we have four real estate related equity method investments with total debt outstanding of $151.1 million, of which our share is $62.4 million. Our investment in these ventures at December 31, 2025 was $27.9 million.
We have two one-year extensions, at our option to extend the maturity date of this mortgage loan to December 28, 2027. (2) The interest rate on this mortgage loan is fixed at 3.67% through two interest rate swap agreements. (3) The interest rates on these mortgages range from 3.91% to 5.00%.
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 interest rates on these mortgages range from 3.91% to 5.00%.
We have aligned our program and efforts with the United Nations Sustainable Development Goals, as described in our Sustainability Policy and our 2023 Environmental Social and Governance Report, which are provided only for informational purposes on our website and not incorporated by reference herein.
We have aligned our program and efforts with the United Nations Sustainable Development Goals, as described 31 Table of Contents in our Sustainability Policy and our 2024 sustainability report, which are provided only for informational purposes on our website and not incorporated by reference herein.
The amount of capitalized internal costs for salaries and related benefits for development and redevelopment activities, other property improvements, and leasing activities were $8 million, $4 million, and $4 million, respectively, for 2024 and $9 million, $4 million, and $3 million, respectively, for 2023. Total capitalized costs were $283 million for 2024 and $312 million for 2023, respectively.
The amount of capitalized internal costs for salaries and related benefits for development and redevelopment activities, other property improvements, and leasing activities were $8 million, $4 million, and $4 million, respectively, for both 2025 and 2024. Total capitalized costs were $326 million for 2025 and $283 million for 2024, respectively.
Conversion of these operating partnership units is dilutive in the computation of FFO per diluted common share but is anti-dilutive for the computation of diluted EPS for 2024 and 2023.
The assumed issuance of shares upon redemption of these operating partnership units is dilutive in the computation of FFO per diluted common share but is anti-dilutive for the computation of diluted EPS for 2024 and 2023.
To achieve these targets, we are actively addressing energy efficiency projects on site such as upgrading to LED lighting, procuring green energy, reducing electric consumption, and increasing our onsite solar generation capacity. We have installed on-site solar systems at 28 of our properties with a capacity of 15 MW with more projects actively in progress.
To achieve this target, we are actively addressing energy efficiency projects on site such as upgrading to LED lighting, procuring zero carbon energy, reducing electric consumption, and increasing our onsite solar generation capacity. We have installed on-site solar systems at 28 of our properties with a capacity of 15.3 MW.
We capitalized external and internal costs related to leasing activities of $27 million and $4 million, respectively, for 2024 and $21 million and $3 million, respectively, for 2023.
We capitalized external and internal costs related to leasing activities of $19 million and $4 million, respectively, for 2025 and $27 million and $4 million, respectively, for 2024.
We also installed electric vehicle car charging 31 Table of Contents stations in numerous properties throughout our portfolio. We currently have over 400 charging stations in operation with more under construction. We also understand that we face risks presented by climate change and are working to evaluate our risk exposure.
We also installed electric vehicle car charging stations in numerous properties throughout our portfolio. We currently have nearly 500 charging stations in operation with more planned. We also understand that we face risks presented by climate change and are working to evaluate our risk exposure.
Management considers an accounting estimate to be critical if changes in the estimate could have a material impact on our consolidated results of operations or financial condition. 32 Table of Contents Our significant accounting policies are more fully described in Note 2 to the consolidated financial statements; however, the most critical accounting policies, which are most important to the portrayal of our financial condition and results of operations, and involve the use of complex estimates and significant assumptions as to future uncertainties and, therefore, may result in actual amounts that differ from estimates, are as follows: Collectibility of Lease Income Our leases with our tenants are classified as operating leases.
Our significant accounting policies are more fully described in Note 2 to the consolidated financial statements; however, the most critical accounting policies, which are most important to the portrayal of our financial condition and results of operations, and involve the use of complex estimates and significant assumptions as to future uncertainties and, therefore, may result in actual amounts that differ from estimates, are as follows: Collectibility of Lease Income Our leases with our tenants are classified as operating leases.
The percentage occupied at our shopping centers was 94.1% at December 31, 2024 compared to 92.2% at December 31, 2023. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments.
The percentage occupied at our shopping centers was 94.1% at both December 31, 2025 and 2024. Rental income consists primarily 38 Table of Contents of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments.
During 2024 and 2023, we acquired properties included in our consolidated financial statements with a total purchase price of $341.0 million. $1.8 million, or 1% of the total purchase price was allocated to above market lease assets and $18.5 million, or 5% was allocated to below market lease liabilities.
During 2025 and 2024, we acquired properties included in our consolidated financial statements with a total purchase price of $1.0 billion. $11.7 million, or 1% of the total purchase price was allocated to above market lease assets and $71.6 million, or 7% was allocated to below market lease liabilities.
We capitalized external and internal costs related to both development and redevelopment activities of $136 million and $8 million, respectively, for 2024 and $183 million and $10 million, respectively, for 2023. We capitalized external and internal costs related to other property improvements of $103 million and $5 million, respectively, for 2024 and $91 million and $4 million, respectively, for 2023.
We capitalized external and internal costs related to both development and redevelopment activities of $185 million and $9 million, respectively, for 2025 and $136 million and $8 million, respectively, for 2024. We capitalized external and internal costs related to other property improvements of $105 million and $5 million, respectively, for 2025 and $103 million and $5 million, respectively, for 2024.
Property Expenses Total property expenses increased $28.7 million, or 7.9%, to $391.8 million in 2024 compared to $363.1 million in 2023. Changes in the components of property expenses are discussed below. Rental Expenses Rental expenses increased $17.9 million, or 7.7%, to $249.6 million in 2024 compared to $231.7 million in 2023.
Property Expenses Total property expenses increased $27.1 million, or 6.9%, to $418.9 million in 2025 compared to $391.8 million in 2024. Changes in the components of property expenses are discussed below. Rental Expenses Rental expenses increased $17.9 million, or 7.2%, to $267.4 million in 2025 compared to $249.6 million in 2024.
Other than the items disclosed in the Cash Requirements table, we have no off-balance sheet arrangements as of December 31, 2024 that are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements, or capital resources. 43 Table of Contents Debt Financing Arrangements The following is a summary of our total debt outstanding as of December 31, 2024: Description of Debt Original Debt Issued Principal Balance as of December 31, 2024 Stated Interest Rate as of December 31, 2024 Maturity Date (Dollars in thousands) Mortgages payable Secured fixed rate Azalea Acquired $ 40,000 3.73 % November 1, 2025 Bethesda Row (1) 200,000 200,000 SOFR + 0.95% December 28, 2025 Bell Gardens Acquired 11,215 4.06 % August 1, 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 Brook 35 11,500 11,500 4.65 % July 1, 2029 Hoboken (24 Buildings) (2) 56,450 52,123 SOFR + 1.95% December 15, 2029 Various Hoboken (14 Buildings) (3) Acquired 28,838 Various Various through 2029 Chelsea Acquired 3,568 5.36 % January 15, 2031 Subtotal 515,844 Net unamortized debt issuance costs and discount (1,466) Total mortgages payable, net 514,378 Notes payable Term Loan (4)(6) 600,000 600,000 SOFR + 0.85% April 16, 2025 Revolving credit facility (4) (6) (5) — SOFR + 0.775% April 5, 2027 Various 6,311 1,680 Various Various through 2059 Subtotal 601,680 Net unamortized debt issuance costs (266) Total notes payable, net 601,414 Senior notes and debentures (6) Unsecured fixed rate 1.25% notes 400,000 400,000 1.25 % February 15, 2026 7.48% debentures 50,000 29,200 7.48 % August 15, 2026 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 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 3,379,200 Net unamortized debt issuance costs and premium (21,360) Total senior notes and debentures, net 3,357,840 Total debt, net $ 4,473,632 _____________________ (1) The interest rate on this mortgage loan is fixed at a weighted average interest rate of 5.03% through the initial maturity date through three interest rate swap agreements.
Other than the items disclosed in the Cash Requirements table, we have no off-balance sheet arrangements as of December 31, 2025 that are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements, or capital resources. 43 Table of Contents Debt Financing Arrangements The following is a summary of our total debt outstanding as of December 31, 2025: Description of Debt Original Debt Issued Principal Balance as of December 31, 2025 Stated Interest Rate as of December 31, 2025 Maturity Date (Dollars in thousands) Mortgages payable Bell Gardens Acquired $ 10,885 4.06 % August 1, 2026 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 50,568 SOFR + 1.95% December 15, 2029 Various Hoboken (12 Buildings) (5) Acquired 23,568 Various Various through 2029 Chelsea Acquired 3,091 5.36 % January 15, 2031 Subtotal 523,212 Net unamortized debt issuance costs and discount (1,453) Total mortgages payable, net 521,759 Notes payable Revolving credit facility (2)(7) (6) 310,000 SOFR + 0.775% April 5, 2027 $750 million term loan (2)(7)(8) 750,000 750,000 SOFR + 0.85% March 20, 2028 $250 million term loan (2)(7) 250,000 — SOFR + 0.85% January 31, 2031 Various 3,484 1,190 Various Various through 2059 Subtotal 1,061,190 Net unamortized debt issuance costs (3,859) Total notes payable, net 1,057,331 Senior notes and debentures (7) Unsecured fixed rate 1.25% notes 400,000 400,000 1.25 % February 15, 2026 7.48% debentures 50,000 29,200 7.48 % August 15, 2026 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 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 3,379,200 Net unamortized debt issuance costs and premium (15,190) Total senior notes and debentures, net 3,364,010 Total debt, net $ 4,943,100 _____________________ (1) We have one one-year extension, at our option to extend the maturity date of this mortgage loan to December 28, 2027.
Other Interest Expense Interest expense increased $7.7 million, or 4.6%, to $175.5 million in 2024 compared to $167.8 million in 2023.
Other Interest Expense Interest expense increased $8.1 million, or 4.6%, to $183.6 million in 2025 compared to $175.5 million in 2024.
We believe cash flow from operations, the cash on our balance sheet, and our $1.25 billion revolving credit facility will allow us to continue to operate our business in the short-term.
During 2025, we acquired properties for $752.8 million, and will continue to evaluate additional opportunities in 2026. We believe cash flow from operations, the cash on our balance sheet, and our $1.25 billion revolving credit facility will allow us to continue to operate our business in the short-term.
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.
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. We specialize in the ownership, management, and redevelopment of high quality retail and mixed-use properties.
The increase was primarily attributable to higher net income after adjusting for non-cash items and gains on sale of real estate, partially offset by the timing of interest payments. Net cash used in investing activities increased $88.5 million to $446.8 million during 2024 from $358.3 million during 2023.
The increase was primarily attributable to higher net income after adjusting for non-cash items and gains on sale of real estate and the timing of payments. 41 Table of Contents Net cash used in investing activities increased $296.2 million to $743.1 million during 2025 from $446.8 million during 2024.
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.
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.
As of December 31, 2024, we were in compliance with all financial and other covenants related to our revolving credit facility, term loan, 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.
Additionally, we were in compliance with all of the financial and other covenants that could trigger a loan default on our mortgage loans.
This increase is primarily due to the following: • an increase of $11.0 million from comparable properties due primarily to higher repairs and maintenance costs, snow removal costs, utilities and insurance costs, and an increase in management fees on higher revenues, • an increase of $3.3 million from 2024 and 2023 acquisitions, • an increase of $3.2 million from non-comparable properties driven by openings at Pike & Rose Phase IV, Huntington Shopping Center, Santana West, and Darien Commons, and • an increase of $1.0 million from Escondido Promenade, which was reconsolidated in the second quarter of 2023 after we gained control of the property, partially offset by • a decrease of $1.4 million from property dispositions.
This increase is primarily due to the following: • and increase of $10.6 million from 2025 and 2024 acquisitions, • an increase of $7.3 million from comparable properties due primarily to higher snow removal, higher utilities, and an increase in management fees on higher revenues, partially offset by lower repairs and maintenance costs and insurance costs, and • an increase of $4.2 million from non-comparable properties due primarily to openings at Santana West and Pike & Rose Phase IV, partially offset by • a decrease of $3.7 million from property dispositions.
This decrease is primarily driven by lower employee compensation expense and higher amounts allocated to operations as a result of higher revenues, partially offset by a $3.7 million one-time charge related to the departure of an executive officer. Depreciation and amortization Depreciation and amortization expense increased $20.8 million, or 6.5%, to $342.6 million in 2024 from $321.8 million in 2023.
This decrease is primarily driven by the $3.7 million one-time charge in 2024 related to the departure of an executive officer, partially offset by higher employee compensation expense. 39 Table of Contents Depreciation and amortization Depreciation and amortization expense increased $25.2 million, or 7.4%, to $367.8 million in 2025 from $342.6 million in 2024.
For the year ended December 31, 2024, one property and two portions of properties were moved from non-comparable properties to comparable properties, two properties and one portion of a property were moved from acquisitions to comparable properties, and two properties were removed from comparable as we no longer own the properties, compared to the designations as of December 31, 2023.
For the year ended December 31, 2025, one property was moved from comparable properties to non-comparable properties, and two properties and one portion of three properties were removed from comparable properties, as they were sold, compared to the designations as of December 31, 2024.
(4) Our revolving credit facility SOFR loans bear interest at Daily Simple SOFR or Term SOFR and our term loan bears interest at Term SOFR as defined in the respective credit agreements, plus 0.10%, plus a spread, based on our current credit rating.
(2) Our Azalea mortgage loan, revolving credit facility SOFR loans, and our 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.
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 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.
As of December 31, 2024, we had cash and cash equivalents of $123.4 million and no balance outstanding on our $1.25 billion unsecured revolving credit facility. We also have outstanding forward sales agreements for net proceeds of $54.7 million as of December 31, 2024, and the capacity to issue up to $144.4 million in common shares under the ATM program.
As of December 31, 2025, we had cash and cash equivalents of $107.4 million, $310.0 million outstanding on our $1.25 billion unsecured revolving credit facility, and the capacity to issue up to $750.0 million in common shares under the ATM program.
This increase is due primarily to the following: • an increase of $5.1 million due to a higher overall weighted average borrowing rate, • a decrease of $2.1 million in capitalized interest, and • an increase of $0.4 due to higher weighted average borrowings. Gross interest costs were $196.0 million and $190.4 million in 2024 and 2023, respectively.
This increase is due primarily to the following: • a decrease of $7.3 million in capitalized interest, and • an increase of $6.2 million due to higher weighted average borrowings, partially offset by, • a decrease of $5.4 million due to a lower overall weighted average borrowing rate.
(3) This includes minimum rental payments related to both finance and operating leases. (4) This includes the liability related to the sale under threat of condemnation at San Antonio Center as further discussed in Note 7 to the consolidated financial statements.
(3) This includes minimum rental payments related to both finance and operating leases. 42 Table of Contents (4) On January 6, 2026, we purchased the fee interest under one of our ground leases at Bethesda Row for $2.5 million.The total also includes the liability related to the sale under threat of condemnation at San Antonio Center as further discussed in Note 7 to the consolidated financial statements.
(2) Our $200.0 million mortgage loan secured by Bethesda Row matures on December 28, 2025 plus two one-year extensions, at our option to December 28, 2027. (3) Our $1.25 billion revolving credit facility matures on April 5, 2027, plus two six-month extensions at our option to April 5, 2028.
(2) Our $1.25 billion revolving credit facility matures on April 5, 2027 plus two six-month extensions, at our option to April 5, 2028. As of December 31, 2025, there was $310.0 million outstanding under this credit facility. (3) Our $750.0 million term loan matures on March 20, 2028, plus two one-year extensions at our option to March 20, 2030.
Real Estate Taxes Real estate tax expense increased $10.8 million, or 8.2% to $142.2 million in 2024 compared to $131.4 million in 2023 due primarily to the following: • an increase of $6.1 million from comparable properties due to higher assessments and successful tax appeals in 2023, • an increase of $2.8 million from non-comparable properties due primarily to successful tax appeals in 2023, and openings at Pike & Rose Phase IV, Darien Commons, and Huntington Shopping Center, • an increase of $1.9 million from 2024 acquisitions, and • an increase of $0.6 million from Escondido Promenade, which was reconsolidated in the second quarter of 2023 after we gained control of the property, partially offset by • a decrease of $0.7 million from property dispositions.
Real Estate Taxes Real estate tax expense increased $9.2 million, or 6.5% to $151.4 million in 2025 compared to $142.2 million in 2024 due primarily to the following: • an increase of $5.6 million from 2025 and 2024 acquisitions, • an increase of $2.8 million from comparable properties due to higher assessments and prior year refunds received during 2024, and • an increase of $2.6 million from non-comparable properties primarily due to openings at Santana West and Pike & Rose Phase IV, partially offset by • a decrease of $1.8 million from property dispositions.
The reconciliation of net income to FFO available for common shareholders is as follows: Year Ended December 31, 2024 2023 2022 (In thousands, except per share data) Net income $ 304,334 $ 247,217 $ 395,661 Net income attributable to noncontrolling interests (9,126) (10,232) (10,170) Gain on deconsolidation of a VIE — — (70,374) Gain on sale of real estate (54,040) (9,881) (93,483) Depreciation and amortization of real estate assets 302,455 285,689 266,741 Amortization of initial direct costs of leases 33,377 31,208 27,268 Funds from operations 577,000 544,001 515,643 Dividends on preferred shares (1) (7,500) (7,500) (7,500) Income attributable to downREIT operating partnership units 2,743 2,767 2,810 Income attributable to unvested shares (2,004) (1,955) (1,797) Funds from operations available for common shareholders $ 570,239 $ 537,313 $ 509,156 Weighted average number of common shares, diluted (1)(2) 84,286 82,044 80,603 Funds from operations available for common shareholders, per diluted share $ 6.77 $ 6.55 $ 6.32 _____________________ 46 Table of Contents (1) For the years ended December 31, 2024, 2023 and 2022, 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 FFO per diluted common share includes downREIT operating partnership units that were excluded from the computation of diluted EPS.
The reconciliation of net income attributable to common shareholders to Nareit FFO and Core FFO is as follows: Year Ended December 31, 2025 2024 2023 (In thousands, except per share data) Reconciliation of net income attributable to common shareholders to Nareit FFO Net income $ 423,648 $ 304,334 $ 247,217 Net income attributable to noncontrolling interests (12,571) (9,126) (10,232) Gain on sale of real estate (150,111) (54,040) (9,881) Impairment charge 7,425 — — Depreciation and amortization of real estate assets 320,311 302,455 285,689 Amortization of initial direct costs of leases 42,671 33,377 31,208 Funds from operations 631,373 577,000 544,001 Dividends on preferred shares (1) (7,500) (7,500) (7,500) Income attributable to downREIT operating partnership units 2,463 2,743 2,767 Income attributable to unvested shares (2,080) (2,004) (1,955) Funds from operations available for common shareholders $ 624,256 $ 570,239 $ 537,313 Weighted average number of common shares, diluted (1)(2) 86,498 84,286 82,044 Funds from operations available for common shareholders, per diluted share $ 7.22 $ 6.77 $ 6.55 Reconciliation of Nareit FFO to Core FFO Nareit FFO $ 624,256 $ 570,239 $ 537,313 Adjustments: New market tax credit transaction income, net (3) (13,004) — — Executive transition costs — 3,687 — Collection of prior period rents deferred during COVID (261) (3,218) (5,136) Core FFO $ 610,991 $ 570,708 $ 532,177 Core FFO per diluted share (2) $ 7.06 $ 6.77 $ 6.49 _____________________ (1) For the years ended December 31, 2025, 2024 and 2023, 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 FFO per diluted common share includes shares issuable upon the assumed redemption of outstanding downREIT operating partnership units that were excluded from the computation of diluted EPS.
Additional discussion of the impact of current economic conditions on our results and long-term operations can be found throughout Item 7 and Item 1A . Risk Factors.
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. Additional discussion of the impact of current economic conditions on our results and long-term operations can be found throughout Item 7 and Item 1A . Risk Factors.
Approximately 241,000 square feet of space is leased, of which 29,000 square feet of space is open as of December 31, 2024. • Throughout the portfolio, we currently have redevelopment projects underway with a projected total cost of approximately $271 million that we expect to stabilize over the next several years.
Approximately 345,000 square feet of space is leased, of which 317,000 square feet is occupied. • 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 $304 million that we expect to stabilize over the next several years.
However, the effects of high levels of inflation and interest rates continue to negatively impact our business with the largest impacts being higher interest costs, increased material costs, and higher operating costs. We continue to see impacts of increased costs for certain construction and other materials that support our development and redevelopment activities.
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.
As of December 31, 2024, there was no outstanding balance under this credit facility. (4) The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized net debt issuance costs and premium/discount on mortgage loans, notes payable, and senior notes as of December 31, 2024.
(5) The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized net debt issuance costs and premium/discount on mortgage loans, notes payable, and senior notes as of December 31, 2025. Interest Rate Hedging We may use derivative instruments to manage exposure to variable interest rate risk.
Of the $848.1 million of debt maturing in the next twelve months as of December 31, 2024, $600.0 million is related to our term loan, which has a one-year option to extend the April 2025 maturity date to April 2026.
Of the $655.6 million of debt maturing in the next twelve months as of December 31, 2025, $200.0 million is our mortgage loan secured by Bethesda Row which has a one-year extension, at our option, to extend the loan to December 2027.
The increase was primarily attributable to: • a $213.3 million increase in acquisition of real estate primarily due to the May 2024 acquisition of the Virginia Gateway and the July 2024 acquisition of Pinole Vista Crossing (see Note 3 to the consolidated financial statements for additional information), as compared to the January 2023 Huntington Square acquisition and the acquisition of our partner's 22.3% TIC interest in Escondido Promenade in May 2023, partially offset by, • a $71.5 million increase in net proceeds from the sale of real estate primarily due to $99.9 million of net proceeds from the sale of Third Street Promenade and a portion of our White Marsh Other property in 2024, as compared to $28.5 million of net proceeds from the sale of Town Center of New Britain and a portion of Third Street Promenade in 2023, and • a $64.4 million decrease in capital expenditures.
The increase was primarily attributable to: • a $461.3 million increase in acquisition of real estate primarily due to the acquisitions of the fee interest in Village Pointe in November 2025, Annapolis Town Center in October 2025, Town Center Crossing and Town Center Plaza in July 2025 and Del Monte Shopping Center in February 2025 (see Note 3 to the consolidated financial statements for additional information), as compared to the acquisitions of the fee interest in Virginia Gateway in May 2024 and Pinole Vista Crossing in July 2024, and • $44.6 million increase in capital expenditures, partially offset by, • a $205.7 million increase in net proceeds from the sale of real estate primarily due to $305.6 million of net proceeds from the sale of a residential building at both Santana Row and Pike & Rose, our Hollywood Boulevard and Bristol properties, and a portion of our White Marsh Other property in 2025, as compared to $99.9 million of net proceeds from the sale of Third Street Promenade and a portion of our White Marsh Other property in 2024.
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 2024 were approximately $373.3 million).
Discussions of year-to-year comparisons between 2024 and 2023 can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission on February 13, 2025. 40 Table of Contents 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 2025 were approximately $389.7 million).
As of December 31, 2024, approximately 164,000 square feet of office space is open and 5,000 square feet of retail space is open. • 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.
The building is expected to cost between $180 million and $190 million, and began delivering in late September 2023. • 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.
As of December 31, 2024, 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 26.8 million commercial square feet. In total, the real estate projects were 96.2% leased and 94.1% occupied at December 31, 2024.
These properties are located primarily in major coastal markets and select underserved markets that we believe have strong economic and demographic fundamentals.As of December 31, 2025, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 104 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet.
The reconciliation of operating income to property operating income for 2024 and 2023 is as follows: 2024 2023 (in thousands) Operating income $ 472,356 $ 406,470 General and administrative 49,739 50,707 Depreciation and amortization 342,598 321,763 Gain on sale of real estate (54,040) (9,881) Property operating income $ 810,653 $ 769,059 Property Revenues Total property revenue increased $70.3 million, or 6.2%, to $1.20 billion in 2024 compared to $1.13 billion in 2023.
The reconciliation of operating income to property operating income for 2025 and 2024 is as follows: 2025 2024 (in thousands) Operating income $ 602,199 $ 472,356 General and administrative 46,913 49,739 Depreciation and amortization 367,842 342,598 New market tax credit transaction income (14,176) — Gain on sale of real estate (150,111) (54,040) Impairment charge 7,425 — Property operating income $ 860,092 $ 810,653 Property Revenues Total property revenue increased $76.5 million, or 6.4%, to $1.28 billion in 2025 compared to $1.20 billion in 2024.
Summary of Cash Flows Year Ended December 31, 2024 2023 Change (In thousands) Net cash provided by operating activities $ 574,563 $ 555,830 $ 18,733 Net cash used in investing activities (446,826) (358,325) (88,501) Net cash used in financing activities (252,298) (33,849) (218,449) (Decrease) increase in cash and cash equivalents (124,561) 163,656 (288,217) Cash, cash equivalents, and restricted cash, beginning of year 260,004 96,348 163,656 Cash, cash equivalents, and restricted cash, end of year $ 135,443 $ 260,004 $ (124,561) Net cash provided by operating activities increased $18.7 million to $574.6 million during 2024 from $555.8 million during 2023.
Summary of Cash Flows Year Ended December 31, 2025 2024 Change (In thousands) Net cash provided by operating activities $ 622,378 $ 574,563 $ 47,815 Net cash used in investing activities (743,068) (446,826) (296,242) Net cash provided by (used in) financing activities 102,953 (252,298) 355,251 Decrease in cash and cash equivalents (17,737) (124,561) 106,824 Cash, cash equivalents, and restricted cash, beginning of year 135,443 260,004 (124,561) Cash, cash equivalents, and restricted cash, end of year $ 117,706 $ 135,443 $ (17,737) Net cash provided by operating activities increased $47.8 million to $622.4 million during 2025 from $574.6 million during 2024.
Real Estate Acquisitions Upon acquisition of operating real estate properties, we estimate the fair value of assets and liabilities acquired including land, building, improvements, leasing costs, intangibles such as acquired leases, assumed debt, and current assets and liabilities, if any. Based on these estimates, we allocate the purchase price to the applicable assets and liabilities.
If leases currently classified as not probable are subsequently changed to probable, any lease receivables (including straight-line rent receivables) are re-instated with a corresponding increase to rental income. 32 Table of Contents Real Estate Acquisitions Upon acquisition of operating real estate properties, we estimate the fair value of assets and liabilities acquired including land, building, improvements, leasing costs, intangibles such as acquired leases, assumed debt, and current assets and liabilities, if any.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+1 added−1 removed6 unchanged
Biggest changeConversely, if market interest rates decreased 1.0%, our annual interest expense would decrease by approximately $6.0 million with a corresponding increase in our net income and cash flows for the year. While no amounts were outstanding at December 31, 2024, we have a $1.25 billion revolving credit facility that bears interest at a variable rate.
Biggest changeConversely, if market interest rates decreased 1.0%, our annual interest expense would decrease by approximately $8.7 million with a corresponding increase in our net income and cash flows for the year.
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 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. 47 Table of Contents We may enter into certain types of derivative financial instruments to further reduce interest rate risk.
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 $6.0 million with a corresponding decrease in our net income and cash flows for the year.
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 $8.7 million with a corresponding decrease in our net income and cash flows for the year.
If market interest rates used to calculate the fair value on our fixed-rate debt instruments at December 31, 2024 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $156.5 million.
If market interest rates used to calculate the fair value on our fixed-rate debt instruments at December 31, 2025 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $137.4 million.
If market interest rates used to calculate the fair value on our fixed-rate debt instruments at December 31, 2024 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $173.8 million.
If market interest rates used to calculate the fair value on our fixed-rate debt instruments at December 31, 2025 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $152.9 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 December 31, 2024, we had $600.0 million of variable rate debt outstanding (the principal balance on our unsecured term loan).
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 December 31, 2024, we had $3.9 billion of fixed-rate debt outstanding, including $252.1 million in mortgage payables that are effectively fixed by five interest rate swap agreements.
At December 31, 2025, we had $4.1 billion of fixed-rate debt outstanding, including $450.0 million of our unsecured term loan and $50.6 million of mortgage payables for which the rate is effectively fixed by interest rate swap agreements.
Removed
If we increase our outstanding balance on the revolving credit facility in the future, additional decreases to future earnings and cash flows could occur.
Added
At December 31, 2025, we had $865.0 million of variable rate debt outstanding, comprised of $310.0 million outstanding on our revolving credit facility, $300.0 million of our unsecured term loan, our $200.0 million mortgage loan at Bethesda Row, and our $55.0 million mortgage loan at Azalea.