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ae8f3273214a391703f7b3a34132bd25d93e5c925aee040f7f1ef6851d0d2c72

Rental Income

- Retail and commercial

- Residential

- Cost reimbursement

- Percentage rent

- Other

Mortgage Interest Income

Other Property Income

Total Revenue

9fdbcd2c20bf4107e6ba22e910f5b603ca3f9a099731d12224602cabd78befab

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

57fc9c852b988da804f2b440d3196fb86ae1c4051fcb0dbd7e9b1477abf331ab

5708fdcc59cad45f0e44f74b8abeed02fe5577d2469b1fc71935dfc363237def

08f7309caefd216611d3dac68422233ec6502ee7679df5fa81f464b78fbe339a

Net cash provided by operating activities (USD, thousands)

Net cash used in investing activities (USD, thousands)

Net cash used in financing activities (USD, thousands)

(Decrease) increase in cash and cash equivalents (USD, thousands)

Cash, cash equivalents, and restricted cash, beginning of year (USD, thousands)

Cash, cash equivalents, and restricted cash, end of year (USD, thousands)

b4203bd4b3fab9a316d1564b014ced00838adf300b2e01ce5bd3699710c089e2

Rental Income (USD, thousands)

Mortgage Interest Income (USD, thousands)

Total Revenue (USD, thousands)

Rental Expenses (USD, thousands)

Real Estate Taxes (USD, thousands)

General and Administrative Expenses (USD, thousands)

Depreciation and Amortization (USD, thousands)

Total Operating Expenses (USD, thousands)

Gain on Sale of Real Estate (USD, thousands)

Operating Income (USD, thousands)

Other Interest Income (USD, thousands)

Interest Expense (USD, thousands)

Income from Partnerships (USD, thousands)

Net Income (USD, thousands)

Net Income Attributable to Noncontrolling Interests (USD, thousands)

Dividends on Preferred Units (USD, thousands)

Net Income Available for Common Unit Holders (USD, thousands)

Earnings per Common Unit, Basic (USD)

Weighted Average Number of Common Units, Basic

d12e1842b7bf42edb6d33a4c2f602e6226d4b9038d92c66b40ede02fd7c3f1b3

The increase in operating cash flow in Q2 2024 was primarily driven by **higher net income after adjusting for non-cash items and gains on the sale of real estate**, as well as **higher collections related to year-end recovery billings**. These positive factors were partially offset by the **timing of cash receipts related to prepaid rent**.  **[0000034903-24-000056_frt-20240630.htm:42]** **[0000034903-24-000056_frt-20240630.htm:8]** **[0000034903-24-000056_frt-20240630.htm:13]** 

What drove the operating cash flow increase in Q2 2024?

The financing cash flow was significantly negative in Q1 2024 mainly because of several key factors. A major factor was the **$600.0 million repayment** of 3.95% senior unsecured notes reaching maturity, which drove a large outflow. Additionally, there was a **$19.4 million premium** paid for capped call transactions related to the issuance of exchangeable senior notes, and the company increased its dividend payments by **$2.5 million**. Moreover, while there was a decrease in net borrowings (from **$60.0 million** in Q1 2023 to **$12.5 million** in Q1 2024), these cash inflows were not enough to offset the large outflows, despite **$471.6 million in net proceeds** from the exchangeable senior notes issuance. These elements combined to result in the notably negative cash flow in Q1 2024.  **[0000034903-24-000046_frt-20240331.htm:36]** **[0000034903-24-000046_frt-20240331.htm:12]** **[0000034903-24-000046_frt-20240331.htm:8]** 

Why was the financing cash flow so negative in Q1 2024?

The drastic swing in cash change in Q1 2024 was primarily driven by a significant increase in net cash used in financing activities. Specifically, there was a **$600.0 million repayment of 3.95% senior unsecured notes**, a **$47.5 million decrease in net borrowings on the revolving credit facility**, a **$19.4 million premium paid for capped call transactions**, and a **$2.5 million increase in dividends paid**. These financing outflows were only partially offset by **$471.6 million in net proceeds** from the issuance of exchangeable senior notes, leading to the overall large cash decrease despite slightly lower outlays in investing activities and only a marginal decline in cash provided by operations.  **[0000034903-24-000046_frt-20240331.htm:36]** **[0000034903-24-000046_frt-20240331.htm:12]** **[0000034903-24-000046_frt-20240331.htm:8]** 

What caused the drastic swing in cash change in Q1 2024?

The significant increase in investing cash outflows in Q2 2024 was primarily driven by **a $154.3 million increase in real estate acquisitions**—notably the May 2024 acquisition of the fee interest in Virginia Gateway—compared to previous acquisitions. This increase was partially offset by a **$83.7 million rise in net proceeds from real estate sales** and a **$31.5 million reduction in capital expenditures**, which together resulted in a net increase of **$48.4 million** in cash used for investing activities.  **[0000034903-24-000056_frt-20240630.htm:42]** 

Why did investing cash outflows increase significantly in Q2 2024?

The substantial drop in year-end cash in Q4 2024 was primarily caused by a significant increase in net cash used in both investing and financing activities. While operating activities actually provided an additional **$18,733 thousand** in cash, investing activities used **$88,501 thousand** more mainly due to a **$213.3 million** increase in the acquisition of real estate (offset partially by proceeds from real estate sales and reduced capital expenditures), and financing activities saw an increased usage of **$218,449 thousand** primarily driven by a **$325.0 million** increase in the repayment of senior notes (offset partially by **$199.2 million** in net proceeds from a mortgage loan and other financing activities).  **[0000034903-25-000016_frt-20241231.htm:65]** 

What explains the substantial drop in year-end cash in Q4 2024?

51ebd944193ca9233fd46679dfa61ec9a10a5869203e23d2b057a31ec583871d

The significant drop in **Cash and Cash Equivalents** in Q1 2024 was primarily driven by the financing activities. In Q1 2024, the company recorded a **net cash used in financing activities** of **$229.4 million**, which was a dramatic increase compared to prior periods. This was largely due to a **$600.0 million repayment** of 3.95% senior unsecured notes at maturity, along with additional outflows such as a premium paid for capped call transactions and increased dividend payments. These factors, combined with a slight decrease in operating cash inflows and changes in investing activities, contributed to an overall net decrease of **$155,183 thousand** in cash from the beginning to the end of Q1 2024.  **[0000034903-24-000046_frt-20240331.htm:36]** 

Why did Cash and Cash Equivalents drop so significantly in Q1 2024?

The documents indicate that the **Notes Payable, Net** increased from **$601,945 thousand** as of December 31, 2023, to **$683,280 thousand** as of June 30, 2024, which reflects the spike in Q2 2024; however, they do not provide specific reasons for this change.  **[20240801PH75075:4]** 

What drove the spike in Notes Payable, Net in Q2 2024?

Federal Realty Investment Trust’s decline in Total Assets for Q1 2024 was driven primarily by a **significant decrease in cash and cash equivalents** (a drop of **$154,889 thousand** from **$250,825 thousand** to **$95,936 thousand**), a **reduction in construction-in-progress** by **$35,551 thousand**, and a **decrease in prepaid expenses and other assets** by **$4,265 thousand**. These declines were partially offset by an increase in accounts and notes receivable by **$5,917 thousand**, but the net effect was a total decline of **$164,852 thousand** in Total Assets.  **[20240502PH04492:3]** **[0000034903-24-000044_frt-03312024xex991.htm:7]** 

What factors contributed to the decline in Total Assets in Q1 2024?

The decrease in **Senior Notes and Debentures, Net** in Q1 2024 is primarily due to the **amortization of debt issuance costs and premiums/discounts** associated with the senior notes and debentures.  **[0000034903-24-000046_frt-20240331.htm:18]** **[20240502PH04492:3]** 

Why were Senior Notes and Debentures lower in Q1 2024?

0a3c99240ae494b9b311573849520663b58f71dedfc61ac0836f1d1804e85e3c

Federal Realty Investment Trust’s **higher EPS** in Q2 2024 was driven by multiple factors. The **net income** available to common shareholders increased dramatically, reaching **$110.0 million** compared to **$58.5 million** in Q2 2023, largely due to a significant **$52.3 million gain on the sale of real estate** (the remaining assets on Third Street Promenade).  **[20240801PH75075:4]**  Additionally, **operating income improved** to **$157.0 million** thanks to enhanced rental income and record leasing volumes, which also contributed to better portfolio performance with occupancy rising to **93.1%** **[20240801PH75075:0]** **[0000034903-24-000055_frt-06302024xex991.htm:2]** .  **[FRT_3396159_3]**  These improvements collectively resulted in the elevated EPS of **$1.32** in Q2 2024 compared to **$0.72** the previous year **[0000034903-23-000054_frt-20230630.htm:10]** .  **[0000034903-24-000056_frt-20240630.htm:10]** 

Why was EPS so high in Q2 2024?

The net income surge in Q2 2024 was primarily driven by **increased operating income** resulting from both **higher rental income** and a **one-time gain on the sale of real estate**. Specifically, operating income rose from **$101.8 million** in Q2 2023 to **$157.0 million** in Q2 2024, while a **$52.28 million gain from the sale of real estate** was recorded, compared to none in the prior period. Additionally, although there were higher operating expenses, the robust increase in revenue more than offset them, leading to net income increasing from **$63.004 million** in Q2 2023 to **$114.655 million** in Q2 2024.  **[20240801PH75075:0]** **[0000034903-24-000055_frt-06302024xex991.htm:2]** **[20240801PH75075:4]** **[0000034903-24-000055_frt-06302024xex991.htm:6]** 

What drove the net income surge in Q2 2024?

The documents show that rental income for Q4 2024 was **$279,906 thousand** compared to **$303,352 thousand** in Q3 2024.  **[0000034903-24-000069_frt-20240930.htm:10]** **[0000034903-25-000016_frt-20241231.htm:105]**  However, none of the provided documents offer a specific explanation for this quarter-over-quarter drop. Instead, the detailed analysis explains the year-over-year increase from Q4 2023 to Q4 2024.  **[0000034903-25-000015_frt-12312024xex991.htm:7]** **[20250213PH19256:4]**  Hence, we do not have information on the factors leading to the Q4 2024 drop relative to Q3 2024.

Why did rental income drop in Q4 2024?

The jump in General and Administrative Expenses in **Q4 2024** was primarily due to a **$3.7 million one-time charge related to the departure of an executive officer**. This charge increased the expenses by **$1,719 thousand** when compared to **Q4 2023**. Additionally, **lower employee compensation expenses** and **higher operational allocations due to increased revenues** played a role in mitigating the overall impact of this charge.  **[0000034903-25-000016_frt-20241231.htm:63]** 

What caused the jump in G&A expenses in Q4 2024?

In Q1 2024, **Other Interest Income** increased to **$1,483 thousand** from **$632 thousand** in Q1 2023, representing a significant change. However, the documents do not provide specific details on the factors that boosted this income increase.  **[0000034903-24-000046_frt-20240331.htm:32]** 

What factors boosted Other Interest Income in Q1 2024?

967a6b6140d635ab00f95742ea3a67f71f1b69b98729a7f4c6782a4e74658399

Federal Realty Investment Trust (FRT)

Financials