Item 8. and Item 15(a)(1) and (2)

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Item 8. and Item 15(a)(1) and (2)

Index to Consolidated Financial Statements and Schedules


			Page No.
Report of Independent Registered Public Accounting Firm ( PCAOB ID Number 248)			F-2

Federal Realty Investment Trust:
Consolidated Balance Sheets as of December 31, 2025 and 2024			F-8
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023			F-9
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2025, 2024, and 2023			F-10
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023			F-11

Federal Realty OP LP:
Consolidated Balance Sheets as of December 31, 2025 and 2024			F-12
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023			F-13
Consolidated Statements of Capital for the Years Ended December 31, 2025, 2024, and 2023			F-14
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023			F-15

Notes to Consolidated Financial Statements			F-16

Financial Statement Schedules
Schedule III—Summary of Real Estate and Accumulated Depreciation			F-41
Schedule IV—Mortgage Loans on Real Estate			F-49

All other schedules have been omitted either because the information is not applicable, not material, or is disclosed in our consolidated financial statements and related notes.

F-1

Table of Contents

Report of Independent Registered Public Accounting Firm

Trustees and Shareholders

Federal Realty Investment Trust

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Federal Realty Investment Trust (a Maryland real estate investment trust) and subsidiaries (collectively, the "Trust") as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). In our opinion, the Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control-Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Trust as of and for the year ended December 31, 2025, and our report dated February 12, 2026 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Trust’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Evaluation of Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Trust’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Jacksonville, Florida

February 12, 2026

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Report of Independent Registered Public Accounting Firm

Trustees and Shareholders

Federal Realty Investment Trust

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Federal Realty Investment Trust (a Maryland real estate investment trust) and subsidiaries (collectively, the "Trust") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedules included under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Trust as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Trust’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 12, 2026 expressed an unqualified opinion.

Basis for opinion

These consolidated financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Trust’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical audit matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Lease Collectibility Assessment

In order to recognize rental income on an accrual basis, the Trust must determine whether substantially all the rents due under a lease arrangement are collectible. If the Trust reaches the conclusion that substantially all of the rents are not collectible for a specific lease, then rental income under that arrangement can only be recognized when cash payment from the tenant is received.

Significant judgment is exercised by the Trust when making a collectibility assessment and includes the following considerations which require challenging and subjective auditor judgment in the execution of our audit procedures:

Creditworthiness of the tenant
Current economic conditions
Historical experience with the tenant and other tenants operating in the same industry

Our audit procedures related to the collectibility assessment included the following:

We tested the design and tested the operating effectiveness of internal controls relating to the collectibility assessment process.

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We evaluated management’s accounting policies related to this assessment.
We verified the completeness of the population of tenants that management evaluated.
We researched recent publicly available information, including information for a selection of tenants with the highest rental income recognized in the year ended December 31, 2025, such as bankruptcy filings, industry journals, and periodicals, and for any of the Trust’s tenants identified in our research, we evaluated whether such information was considered in management’s collectibility assessment.
For a selection of tenant receivables where collectibility was deemed as probable, we evaluated the collectibility assessment conclusion reached by management and performed the following procedures for each selection:

◦Verified that management’s accounting policies related to the collectibility assessment were followed.

◦Inspected documentation from management such as tenant collection history and any direct correspondence and evaluated management’s considerations supporting the collectibility assessment conclusion reached.

◦Recalculated the aging using supporting documentation.

◦Researched publicly available information to independently verify the completeness and accuracy of management’s information used to make the collectibility assessment.

/s/ GRANT THORNTON LLP

We have served as the Trust’s auditor since 2002.

Jacksonville, Florida

February 12, 2026

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Report of Independent Registered Public Accounting Firm

Trustees and Unitholders

Federal Realty OP LP

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Federal Realty OP LP (a Delaware limited partnership) and subsidiaries (collectively, the “Operating Partnership”) as of December 31, 2025, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Operating Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control-Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Operating Partnership as of and for the year ended December 31, 2025, and our report dated February 12, 2026 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Evaluation of Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Definition and limitations of internal control over financial reporting

/s/ GRANT THORNTON LLP

Jacksonville, Florida

February 12, 2026

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Report of Independent Registered Public Accounting Firm

Trustees and Unitholders

Federal Realty OP LP

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Federal Realty OP LP (a Delaware limited partnership) and subsidiaries (collectively, the "Operating Partnership") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, capital, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedules included under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Operating Partnership’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 12, 2026 expressed an unqualified opinion.

Basis for opinion

These consolidated financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on the Operating Partnership’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Critical audit matter

Lease Collectibility Assessment

In order to recognize rental income on an accrual basis, the Operating Partnership must determine whether substantially all the rents due under a lease arrangement are collectible. If the Operating Partnership reaches the conclusion that substantially all of the rents are not collectible for a specific lease, then rental income under that arrangement can only be recognized when cash payment from the tenant is received.

Significant judgment is exercised by the Operating Partnership when making a collectibility assessment and includes the following considerations which require challenging and subjective auditor judgment in the execution of our audit procedures:

Creditworthiness of the tenant
Current economic conditions
Historical experience with the tenant and other tenants operating in the same industry

Our audit procedures related to the collectibility assessment included the following:

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We tested the design and tested the operating effectiveness of internal controls relating to the collectibility assessment process.
We evaluated management’s accounting policies related to this assessment.
We verified the completeness of the population of tenants that management evaluated.
We researched recent publicly available information, including information for a selection of tenants with the highest rental income recognized in the year ended December 31, 2025, such as bankruptcy filings, industry journals, and periodicals, and for any of the Operating Partnership’s tenants identified in our research, we evaluated whether such information was considered in management’s collectibility assessment.
For a selection of tenants where collectibility was deemed as probable, we evaluated the collectibility assessment conclusion reached by management and performed the following procedures for each selection:

◦Verified that management’s accounting policies related to the collectibility assessment were followed.

◦Recalculated the aging using supporting documentation.

◦Researched publicly available information to independently verify the completeness and accuracy of management’s information used to make the collectibility assessment.

/s/ GRANT THORNTON LLP

We have served as the Operating Partnership's auditor since 2022.

Jacksonville, Florida

February 12, 2026

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Federal Realty Investment Trust

Consolidated Balance Sheets


	December 31,
	2025		2024
	(In thousands, except share and per share data)
ASSETS
Real estate, at cost
Operating (including $1,832,190 and $1,825,656 of consolidated variable interest entities, respectively)	$	11,265,167	$	10,363,961
Construction-in-progress (including $28,418 and $9,939 of consolidated variable interest entities, respectively)	374,735		539,752

	11,639,902		10,903,713
Less accumulated depreciation and amortization (including $468,725 and $424,044 of consolidated variable interest entities, respectively)	(3,351,881)		(3,152,799)
Net real estate	8,288,021		7,750,914
Cash and cash equivalents	107,415		123,409
Accounts and notes receivable, net	249,755		229,080
Mortgage notes receivable, net	9,091		9,144
Investment in partnerships	31,881		33,458
Operating lease right of use assets, net	83,120		85,806
Finance lease right of use assets, net	6,410		6,630
Prepaid expenses and other assets	354,767		286,316

TOTAL ASSETS	$	9,130,460	$	8,524,757
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Mortgages payable, net (including $194,176 and $186,643 of consolidated variable interest entities, respectively)	$	521,759	$	514,378

Notes payable, net	1,057,331		601,414
Senior notes and debentures, net	3,364,010		3,357,840
Accounts payable and accrued expenses	219,678		183,564
Dividends payable	99,792		96,743
Security deposits payable	31,548		30,941
Operating lease liabilities	72,304		74,837
Finance lease liabilities	12,903		12,783
Other liabilities and deferred credits	250,494		227,827
Total liabilities	5,629,819		5,100,327
Commitments and contingencies (Note 7)
Redeemable noncontrolling interests	181,655		180,286
Shareholders’ equity
Preferred shares, authorized 15,000,000 shares, $0.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding	150,000		150,000
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 392,878 shares issued and outstanding	9,822		9,822
Common shares of beneficial interest, $0.01 par, 200,000,000 shares authorized, 86,266,009 and 85,666,220 shares issued and outstanding, respectively	869		862
Additional paid-in capital	4,310,365		4,248,824
Accumulated dividends in excess of net income	(1,224,372)		(1,242,654)
Accumulated other comprehensive income	2,047		4,740
Total shareholders’ equity of the Trust	3,248,731		3,171,594
Noncontrolling interests	70,255		72,550
Total shareholders’ equity	3,318,986		3,244,144
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	9,130,460	$	8,524,757

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty Investment Trust

Consolidated Statements of Comprehensive Income


	Year Ended December 31,
	2025		2024		2023
	(In thousands, except per share data)
REVENUE
Rental income	$	1,245,491	$	1,170,078	$	1,101,439
Other property income	32,371		31,258		29,602
Mortgage interest income	1,113		1,116		1,113
Total revenue	1,278,975		1,202,452		1,132,154
EXPENSES
Rental expenses	267,445		249,569		231,666
Real estate taxes	151,438		142,230		131,429
General and administrative	46,913		49,739		50,707

Depreciation and amortization	367,842		342,598		321,763
Total operating expenses	833,638		784,136		735,565



New market tax credit transaction income	14,176		—		—
Gain on sale of real estate	150,111		54,040		9,881
Impairment charge	(7,425)		—		—

OPERATING INCOME	602,199		472,356		406,470

OTHER INCOME/(EXPENSE)
Other interest income	3,143		4,294		4,687
Interest expense	(183,614)		(175,476)		(167,809)

Income from partnerships	1,920		3,160		3,869








NET INCOME	423,648		304,334		247,217
Net income attributable to noncontrolling interests	(12,571)		(9,126)		(10,232)
NET INCOME ATTRIBUTABLE TO THE TRUST	411,077		295,208		236,985
Dividends on preferred shares	(8,032)		(8,032)		(8,032)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$	403,045	$	287,176	$	228,953
EARNINGS PER COMMON SHARE, BASIC



Net income available for common shareholders	$	4.68	$	3.42	$	2.80
Weighted average number of common shares	85,852		83,559		81,313
EARNINGS PER COMMON SHARE, DILUTED



Net income available for common shareholders	$	4.68	$	3.42	$	2.80
Weighted average number of common shares	86,405		83,566		81,313

NET INCOME	$	423,648	$	304,334	$	247,217
Other comprehensive (loss) income - change in value of interest rate swaps	(2,903)		711		(1,824)
COMPREHENSIVE INCOME	420,745		305,045		245,393
Comprehensive income attributable to noncontrolling interests	(12,361)		(9,149)		(10,113)
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST	$	408,384	$	295,896	$	235,280

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty Investment Trust

Consolidated Statement of Shareholders’ Equity


	Shareholders’ Equity of the Trust
	Preferred Shares			Common Shares			Additional Paid-in Capital		Accumulated Dividends in Excess of Net Income		Accumulated Other Comprehensive Income (loss)		Noncontrolling Interests		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
	(In thousands, except share data)
BALANCE AT DECEMBER 31, 2022	398,878	159,822		81,342,959	818		3,821,801		(1,034,186)		5,757		80,003		3,034,015

Net income, excluding $7,253 attributable to redeemable noncontrolling interests	—	—		—	—		—		236,985		—		2,979		239,964
Other comprehensive loss - change in value of interest rate swaps, excluding $119 attributable to redeemable noncontrolling interest	—	—		—	—		—		—		(1,705)		—		(1,705)
Dividends declared to common shareholders ($4.34 per share)	—	—		—	—		—		(355,241)		—		—		(355,241)
Dividends declared to preferred shareholders	—	—		—	—		—		(8,032)		—		—		(8,032)
Distributions declared to noncontrolling interests, excluding $9,539 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(4,541)		(4,541)
Common shares issued, net	—	—		1,310,118	13		131,716		—		—		—		131,729


Shares issued under dividend reinvestment plan	—	—		19,847	—		1,870		—		—		—		1,870
Share-based compensation expense, net of forfeitures	—	—		139,248	2		15,425		—		—		—		15,427
Shares withheld for employee taxes	—	—		(46,009)	—		(5,019)		—		—		—		(5,019)

Conversion and redemption of downREIT OP units	—	—		9,123	—		883		—		—		(883)		—

Contributions from noncontrolling interests	—	—		—	—		—		—		—		1,092		1,092

Adjustment to redeemable noncontrolling interests	—	—		—	—		(7,400)		—		—		—		(7,400)
BALANCE AT DECEMBER 31, 2023	398,878	$	159,822	82,775,286	$	833	$	3,959,276	$	(1,160,474)	$	4,052	$	78,650	$	3,042,159

Net income, excluding $7,022 attributable to redeemable noncontrolling interests	—	—		—	—		—		295,208		—		2,104		297,312
Other comprehensive income - change in value of interest rate swaps, excluding $23 attributable to redeemable noncontrolling interest	—	—		—	—		—		—		688		—		688
Dividends declared to common shareholders ($4.38 per share)	—	—		—	—		—		(369,232)		—		—		(369,232)
Dividends declared to preferred shareholders	—	—		—	—		—		(8,032)		—		—		(8,032)
Dividend equivalent rights	—	—		—	—		—		(124)						(124)
Distributions declared to noncontrolling interests, excluding $8,854 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(4,239)		(4,239)
Common shares issued, net	—	—		2,769,747	28		303,903		—		—		—		303,931


Shares issued under dividend reinvestment plan	—	—		18,101	—		1,784		—		—		—		1,784
Share-based compensation expense, net of forfeitures	—	—		149,510	1		17,378		—		—		—		17,379
Shares withheld for employee taxes	—	—		(64,635)	—		(6,709)		—		—		—		(6,709)

Conversion and redemption of downREIT OP units	—	—		18,211	—		1,636		—		—		(2,596)		(960)
Purchase of capped calls	—	—		—	—		(19,448)		—		—		—		(19,448)
Purchase of noncontrolling interest	—	—		—	—		(10,264)		—		—		(2,094)		(12,358)
Contributions from noncontrolling interests	—	—		—	—		—		—		—		725		725


Adjustment to redeemable noncontrolling interests	—	—		—	—		1,268		—		—		—		1,268
BALANCE AT DECEMBER 31, 2024	398,878	$	159,822	85,666,220	$	862	$	4,248,824	$	(1,242,654)	$	4,740	$	72,550	$	3,244,144
Net income, excluding $8,138 attributable to redeemable noncontrolling interests	—	—		—	—		—		411,077		—		4,433		415,510
Other comprehensive loss - change in value of interest rate swaps, excluding $210 attributable to redeemable noncontrolling interest	—	—		—	—		—		—		(2,693)		—		(2,693)
Dividends declared to common shareholders ($4.46 per share)	—	—		—	—		—		(384,763)		—		—		(384,763)
Dividends declared to preferred shareholders	—	—		—	—		—		(8,032)		—		—		(8,032)

Distributions declared to noncontrolling interests, excluding $8,459 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(5,345)		(5,345)
Common shares issued, net	—	—		476,731	5		54,235		—		—		—		54,240


Shares issued under dividend reinvestment plan	—	—		19,139	—		1,840		—		—		—		1,840
Share-based compensation expense, net of forfeitures	—	—		147,801	2		15,559		—		—		—		15,561
Shares withheld for employee taxes	—	—		(45,040)	—		(4,911)		—		—		—		(4,911)

Conversion and redemption of downREIT OP units	—	—		1,158	—		(5,007)		—		—		(2,327)		(7,334)


Contributions from noncontrolling interests	—	—		—	—		—		—		—		944		944
Adjustment to redeemable noncontrolling interests	—	—		—	—		(175)		—		—		—		(175)
BALANCE AT DECEMBER 31, 2025	398,878	$	159,822	86,266,009	$	869	$	4,310,365	$	(1,224,372)	$	2,047	$	70,255	$	3,318,986

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty Investment Trust

Consolidated Statements of Cash Flows


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
OPERATING ACTIVITIES
Net income	$	423,648	$	304,334	$	247,217
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	367,842		342,598		321,763


Gain on sale of real estate	(150,111)		(54,040)		(9,881)

Income from partnerships	(1,920)		(3,160)		(3,869)
New market tax credit transaction income	(14,176)		—		—
Straight-line rent	(27,976)		(26,833)		(11,576)
Share-based compensation expense	14,608		16,357		14,308
Impairment charge	7,425		—		—
Other, net	(3,114)		(2,158)		(4,959)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:

Decrease (increase) in accounts receivable, net	2,417		(796)		3,468
Increase in prepaid expenses and other assets	(4,766)		(5,030)		(6,881)
Increase in accounts payable and accrued expenses	5,588		1,550		6,005
Increase in security deposits and other liabilities	2,913		1,741		235
Net cash provided by operating activities	622,378		574,563		555,830
INVESTING ACTIVITIES
Acquisition of real estate	(735,274)		(273,927)		(60,628)
Capital expenditures - development and redevelopment	(179,086)		(139,534)		(214,062)
Capital expenditures - other	(112,252)		(107,226)		(97,058)
Costs associated with property sold under threat of condemnation	(134)		—		(1,378)
Proceeds from sale of real estate	305,628		99,928		28,451


Investment in partnerships	(698)		—		—
Distribution from partnerships in excess of earnings	4,109		4,742		9,860

Leasing costs	(25,361)		(30,809)		(23,510)

Net cash used in investing activities	(743,068)		(446,826)		(358,325)
FINANCING ACTIVITIES


Net borrowings under revolving credit facility	310,000		—		—
Issuance of senior notes, net of costs	—		471,507		345,698
Repayment of senior notes	—		(600,000)		(275,000)
Issuance and extension of mortgages and notes payable, net of costs	157,661		(902)		199,237
Repayment of mortgages, finance leases, and notes payable	(7,662)		(3,496)		(58,472)
Purchase of capped calls	—		(19,448)		—
Issuance of common shares, net of costs	54,466		304,045		131,895

Dividends paid to common and preferred shareholders	(388,058)		(371,586)		(359,194)
Shares withheld for employee taxes	(4,911)		(6,709)		(5,019)
Contributions from noncontrolling interests	2,670		725		1,092
Distributions to and acquisition/redemptions of noncontrolling interests	(21,213)		(26,434)		(14,086)
Net cash provided by (used in) financing activities	102,953		(252,298)		(33,849)
(Decrease) increase in cash, cash equivalents, and restricted cash	(17,737)		(124,561)		163,656
Cash, cash equivalents, and restricted cash at beginning of year	135,443		260,004		96,348
Cash, cash equivalents, and restricted cash at end of year	$	117,706	$	135,443	$	260,004

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty OP LP

Consolidated Balance Sheets


	December 31,
	2025		2024
	(In thousands, except unit data)
ASSETS
Real estate, at cost
Operating (including $1,832,190 and $1,825,656 of consolidated variable interest entities, respectively)	$	11,265,167	$	10,363,961
Construction-in-progress (including $28,418 and $9,939 of consolidated variable interest entities, respectively)	374,735		539,752

	11,639,902		10,903,713
Less accumulated depreciation and amortization (including $468,725 and $424,044 of consolidated variable interest entities, respectively)	(3,351,881)		(3,152,799)
Net real estate	8,288,021		7,750,914
Cash and cash equivalents	107,415		123,409
Accounts and notes receivable, net	249,755		229,080
Mortgage notes receivable, net	9,091		9,144
Investment in partnerships	31,881		33,458
Operating lease right of use assets, net	83,120		85,806
Finance lease right of use assets, net	6,410		6,630
Prepaid expenses and other assets	354,767		286,316

TOTAL ASSETS	$	9,130,460	$	8,524,757
LIABILITIES AND CAPITAL
Liabilities
Mortgages payable, net (including $194,176 and $186,643 of consolidated variable interest entities, respectively)	$	521,759	$	514,378

Notes payable, net	1,057,331		601,414
Senior notes and debentures, net	3,364,010		3,357,840
Accounts payable and accrued expenses	219,678		183,564
Dividends payable	99,792		96,743
Security deposits payable	31,548		30,941
Operating lease liabilities	72,304		74,837
Finance lease liabilities	12,903		12,783
Other liabilities and deferred credits	250,494		227,827
Total liabilities	5,629,819		5,100,327
Commitments and contingencies (Note 7)
Redeemable noncontrolling interests	181,655		180,286
Partner capital
Preferred units, 398,878 units issued and outstanding	154,788		154,788
Common units, 86,266,009 and 85,666,220 units issued and outstanding, respectively	3,091,896		3,012,066
Accumulated other comprehensive income	2,047		4,740
Total partner capital	3,248,731		3,171,594
Noncontrolling interests in consolidated partnerships	70,255		72,550
Total capital	3,318,986		3,244,144
TOTAL LIABILITIES AND CAPITAL	$	9,130,460	$	8,524,757

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty OP LP

Consolidated Statements of Comprehensive Income


	Year Ended December 31,
	2025		2024		2023
	(In thousands, except per unit data)
REVENUE
Rental income	$	1,245,491	$	1,170,078	$	1,101,439
Other property income	32,371		31,258		29,602
Mortgage interest income	1,113		1,116		1,113
Total revenue	1,278,975		1,202,452		1,132,154
EXPENSES
Rental expenses	267,445		249,569		231,666
Real estate taxes	151,438		142,230		131,429
General and administrative	46,913		49,739		50,707

Depreciation and amortization	367,842		342,598		321,763
Total operating expenses	833,638		784,136		735,565



New market tax credit transaction income	14,176		—		—
Gain on sale of real estate	150,111		54,040		9,881
Impairment charge	(7,425)		—		—

OPERATING INCOME	602,199		472,356		406,470

OTHER INCOME/(EXPENSE)
Other interest income	3,143		4,294		4,687
Interest expense	(183,614)		(175,476)		(167,809)

Income from partnerships	1,920		3,160		3,869








NET INCOME	423,648		304,334		247,217
Net income attributable to noncontrolling interests	(12,571)		(9,126)		(10,232)
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP	411,077		295,208		236,985
Dividends on preferred units	(8,032)		(8,032)		(8,032)
NET INCOME AVAILABLE FOR COMMON UNIT HOLDERS	$	403,045	$	287,176	$	228,953
EARNINGS PER COMMON UNIT, BASIC



Net income available for common unit holders	$	4.68	$	3.42	$	2.80
Weighted average number of common units	85,852		83,559		81,313
EARNINGS PER COMMON UNIT, DILUTED



Net income available for common unit holders	$	4.68	$	3.42	$	2.80
Weighted average number of common units	86,405		83,566		81,313

NET INCOME	$	423,648	$	304,334	$	247,217
Other comprehensive (loss) income - change in value of interest rate swaps	(2,903)		711		(1,824)
COMPREHENSIVE INCOME	420,745		305,045		245,393
Comprehensive income attributable to noncontrolling interests	(12,361)		(9,149)		(10,113)
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE PARTNERSHIP	$	408,384	$	295,896	$	235,280

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty OP LP

Consolidated Statements of Capital


	Preferred Units		Common Units		Accumulated Other Comprehensive (Loss) Income		Total Partner Capital		Noncontrolling Interests in Consolidated Partnerships		Total Capital


BALANCE AT DECEMBER 31, 2022	$	154,788	$	2,793,467	$	5,757	$	2,954,012	$	80,003	$	3,034,015

Net income, excluding $7,253 attributable to redeemable noncontrolling interests	8,032		228,953		—		236,985		2,979		239,964
Other comprehensive loss - change in fair value of interest rate swaps, excluding $119 attributable to redeemable noncontrolling interest	—		—		(1,705)		(1,705)		—		(1,705)
Distributions declared to common unit holders	—		(355,241)		—		(355,241)		—		(355,241)
Distributions declared to preferred unit holders	(8,032)		—		—		(8,032)		—		(8,032)
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $9,539 attributable to redeemable noncontrolling interests	—		—		—		—		(4,541)		(4,541)
Common units issued as a result of common stock issued by Parent Company, net of issuance costs	—		131,729		—		131,729		—		131,729


Common units issued under dividend reinvestment plan	—		1,870		—		1,870		—		1,870
Share-based compensation expense, net of forfeitures	—		15,427		—		15,427		—		15,427
Common units withheld for employee taxes	—		(5,019)		—		(5,019)		—		(5,019)

Conversion and redemption of downREIT OP units	—		883		—		883		(883)		—
Contributions from noncontrolling interests	—		—		—		—		1,092		1,092


Adjustment to redeemable noncontrolling interests	—		(7,400)		—		(7,400)		—		(7,400)
BALANCE AT DECEMBER 31, 2023	$	154,788	$	2,804,669	$	4,052	$	2,963,509	$	78,650	$	3,042,159
Net income, excluding $7,022 attributable to redeemable noncontrolling interests	8,032		287,176		—		295,208		2,104		297,312
Other comprehensive income - change in fair value of interest rate swaps, excluding $23 attributable to redeemable noncontrolling interest	—		—		688		688		—		688
Distributions declared to common unit holders	—		(369,232)		—		(369,232)		—		(369,232)
Distributions declared to preferred unit holders	(8,032)		—		—		(8,032)		—		(8,032)
Distribution equivalent rights	—		(124)		—		(124)		—		(124)
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $8,854 attributable to redeemable noncontrolling interests	—		—		—		—		(4,239)		(4,239)
Common units issued as a result of common stock issued by Parent Company, net of issuance costs	—		303,931		—		303,931		—		303,931


Common units issued under dividend reinvestment plan	—		1,784		—		1,784		—		1,784
Share-based compensation expense, net of forfeitures	—		17,379		—		17,379		—		17,379
Common units withheld for employee taxes	—		(6,709)		—		(6,709)		—		(6,709)

Conversion and redemption of downREIT OP units	—		1,636		—		1,636		(2,596)		(960)
Purchase of capped calls	—		(19,448)		—		(19,448)		—		(19,448)
Purchase of noncontrolling interest	—		(10,264)		—		(10,264)		(2,094)		(12,358)
Contributions from noncontrolling interests	—		—		—		—		725		725


Adjustment to redeemable noncontrolling interests	—		1,268		—		1,268		—		1,268
BALANCE AT DECEMBER 31, 2024	$	154,788	$	3,012,066	$	4,740	$	3,171,594	$	72,550	$	3,244,144
Net income, excluding $8,138 attributable to redeemable noncontrolling interests	8,032		403,045		—		411,077		4,433		415,510
Other comprehensive loss - change in fair value of interest rate swaps, excluding $210 attributable to redeemable noncontrolling interest	—		—		(2,693)		(2,693)		—		(2,693)
Distributions declared to common unit holders	—		(384,763)		—		(384,763)		—		(384,763)
Distributions declared to preferred unit holders	(8,032)		—		—		(8,032)		—		(8,032)

Distributions declared to noncontrolling interests in consolidated partnerships, excluding $8,459 attributable to redeemable noncontrolling interests	—		—		—		—		(5,345)		(5,345)
Common units issued as a result of common stock issued by Parent Company, net of issuance costs	—		54,240		—		54,240		—		54,240


Common units issued under dividend reinvestment plan	—		1,840		—		1,840		—		1,840
Share-based compensation expense, net of forfeitures	—		15,561		—		15,561		—		15,561
Common units withheld for employee taxes	—		(4,911)		—		(4,911)		—		(4,911)

Conversion and redemption of downREIT OP units	—		(5,007)		—		(5,007)		(2,327)		(7,334)


Contributions from noncontrolling interests	—		—		—		—		944		944
Adjustment to redeemable noncontrolling interests	—		(175)		—		(175)		—		(175)
BALANCE AT DECEMBER 31, 2025	$	154,788	$	3,091,896	$	2,047	$	3,248,731	$	70,255	$	3,318,986

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty OP LP

Consolidated Statements of Cash Flows


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
OPERATING ACTIVITIES
Net income	$	423,648	$	304,334	$	247,217
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	367,842		342,598		321,763


Gain on sale of real estate	(150,111)		(54,040)		(9,881)

Income from partnerships	(1,920)		(3,160)		(3,869)
New market tax credit transaction income	(14,176)		—		—
Straight-line rent	(27,976)		(26,833)		(11,576)
Share-based compensation expense	14,608		16,357		14,308
Impairment charge	7,425		—		—
Other, net	(3,114)		(2,158)		(4,959)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:

Decrease (increase) in accounts receivable, net	2,417		(796)		3,468
Increase in prepaid expenses and other assets	(4,766)		(5,030)		(6,881)
Increase in accounts payable and accrued expenses	5,588		1,550		6,005
Increase in security deposits and other liabilities	2,913		1,741		235
Net cash provided by operating activities	622,378		574,563		555,830
INVESTING ACTIVITIES
Acquisition of real estate	(735,274)		(273,927)		(60,628)
Capital expenditures - development and redevelopment	(179,086)		(139,534)		(214,062)
Capital expenditures - other	(112,252)		(107,226)		(97,058)
Costs associated with property sold under threat of condemnation	(134)		—		(1,378)
Proceeds from sale of real estate	305,628		99,928		28,451


Investment in partnerships	(698)		—		—
Distribution from partnerships in excess of earnings	4,109		4,742		9,860

Leasing costs	(25,361)		(30,809)		(23,510)

Net cash used in investing activities	(743,068)		(446,826)		(358,325)
FINANCING ACTIVITIES


Net borrowings under revolving credit facility	310,000		—		—
Issuance of senior notes, net of costs	—		471,507		345,698
Repayment of senior notes	—		(600,000)		(275,000)
Issuance and extension of mortgages and notes payable, net of costs	157,661		(902)		199,237
Repayment of mortgages, finance leases, and notes payable	(7,662)		(3,496)		(58,472)
Purchase of capped calls	—		(19,448)		—
Issuance of common units, net of costs	54,466		304,045		131,895

Dividends paid to common and preferred unit holders	(388,058)		(371,586)		(359,194)
Common units withheld for employee taxes	(4,911)		(6,709)		(5,019)
Contributions from noncontrolling interests	2,670		725		1,092
Distributions to and acquisition/redemptions of noncontrolling interests	(21,213)		(26,434)		(14,086)
Net cash provided by (used in) financing activities	102,953		(252,298)		(33,849)
(Decrease) increase in cash, cash equivalents, and restricted cash	(17,737)		(124,561)		163,656
Cash, cash equivalents, and restricted cash at beginning of year	135,443		260,004		96,348
Cash, cash equivalents, and restricted cash at end of year	$	117,706	$	135,443	$	260,004

The accompanying notes are an integral part of these consolidated statements.

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Federal Realty Investment Trust

Federal Realty OP LP

Notes to Consolidated Financial Statements

December 31, 2025, 2024 and 2023

NOTE 1—BUSINESS AND ORGANIZATION

Federal Realty Investment Trust (the “Parent Company” and "Trust") is an equity real estate investment trust (“REIT”). Federal Realty OP LP (the "Operating Partnership") is the entity through which the Parent Company conducts substantially all of its operating and owns all of its assets. The Parent Company owns 100% of the limited liability company interests of, is sole member of, and exercises control over Federal Realty GP LLC (the "General Partner"), which in turn, is the sole general partner of the Operating Partnership. The Parent Company specializes in the ownership, management, and redevelopment of retail and mixed-use properties through the Operating Partnership, and has no other substantial assets or liabilities other than through its investment in the Operating Partnership. Our properties are located 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.

We operate in a manner intended to enable the Trust to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90% of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders.

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 and government spending, and potentially worsening economic conditions, which presents risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy. We believe the actions we have taken to maintain a strong financial position and reinforce our liquidity will continue to mitigate the negative short term impacts of the current economic environment. The extent of the future effects on our business, results of operations, cash flows, and growth strategies is highly uncertain and will ultimately depend on future developments, none of which can be predicted.

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

As discussed in the Explanatory Note, we have combined the Annual Reports on Form 10-K of the Parent Company and the Operating Partnership into this single report. As a result, we present two sets of consolidated financial statements. Both sets of consolidated financial statements include the accounts of the entity, its corporate subsidiaries, and all entities in which it has a controlling interest or has been determined to the primary beneficiary of a variable interest entity (“VIE”). The Parent Company's consolidated financial statements include the accounts of the Operating Partnership and its subsidiaries as the Parent, and through its ownership and control over the General Partner, exercises exclusive control over the Operating Partnership. The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant intercompany transactions and balances are eliminated in consolidation. We account for our interests in joint ventures, which we do not control, using the equity method of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP,” requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.

Revenue Recognition and Accounts Receivable

Our leases with our tenants are classified as operating leases. When collection of substantially all lease payments during the lease term is considered probable, the lease qualifies for accrual accounting. Lease payments are recognized on a straight-line basis from the point in time when the tenant controls the space through the term of the related lease. Variable lease payments relating to percentage rent are recognized at the end of the lease year or earlier if we have determined the required sales level is achieved. Real estate tax and other cost reimbursements are recognized on an accrual basis over the periods in which the related expenditures are incurred. Many of our leases contain tenant options that enable the tenant to extend the term of the lease at

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expiration at pre-established rental rates that often include fixed rent increases, consumer price index adjustments or other market rate adjustments from the prior base rent. For a tenant to terminate its lease agreement prior to the end of the agreed term, we may require that they pay a fee to cancel the lease agreement. Lease termination fees are generally recognized on the termination date if the tenant has relinquished control of the space. When a lease is terminated early but the tenant continues to control the space under a modified lease agreement, the lease termination fee is generally recognized evenly over the remaining term of the modified lease agreement. Lease concessions are evaluated to determine whether the concession represents a modification of the original lease contract. Modifications generally result in a reassessment of the lease term and lease classification, and remeasurement of lease payments received. Remeasured lease payments are recognized on a straight-line basis over the remaining term of the modified lease contract.

When collection of substantially all lease payments during the lease term is not considered probable, total lease revenue is limited to the lesser of revenue recognized under accrual accounting or cash received. Determining the probability of collection of substantially all lease payments during a lease term requires significant judgment. This determination is impacted by numerous factors including our assessment of the tenant’s credit worthiness, economic conditions, tenant sales productivity in that location, historical experience with the tenant and tenants operating in the same industry, future prospects for the tenant and the industry in which it operates, and the length of the lease term. If leases currently classified as probable are subsequently reclassified as not probable, any outstanding lease receivables (including straight-line rent receivables) would be written-off with a corresponding decrease in rental income. 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.

As of December 31, 2025 and 2024, our straight-line rent receivables balance was $189.3 million and $164.6 million, respectively, and is included in "accounts and notes receivable, net" on our consolidated balance sheet.

Other revenue recognition policies

Sales of real estate are recognized upon the transfer of control, which usually occurs when the real estate is legally sold. When we enter into a transaction to sell a property or a portion of a property, we evaluate the recognition of the sale under ASC 610-20, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets." In accordance with ASC 610-20, we apply the guidance in ASC 606, "Revenue from Contracts with Customers," to determine whether and when control transfers and how to measure the associated gain or loss. We determine the transaction price based on the consideration we expect to receive. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of a gain recognized will not occur. We analyze the risk of a significant gain reversal and if necessary limit the amount of variable consideration recognized in order to mitigate this risk. The estimation of variable consideration requires us to make assumptions and apply significant judgment.

Other property income includes revenue for our Pike & Rose hotel, parking income and other incidental income from the properties and is generally recognized as the performance obligation is met.

Real Estate

Land, buildings and improvements are recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives range generally from 35 years to a maximum of 50 years on buildings and major improvements. Minor improvements, furniture and equipment are capitalized and depreciated over useful lives ranging from 2 to 20 years. Maintenance and repairs that do not improve or extend the useful lives of the related assets are charged to operations as incurred. Tenant improvements are capitalized and depreciated over the life of the related lease or their estimated useful life, whichever is shorter. If a tenant vacates its space prior to contractual termination of its lease, the undepreciated balance of any tenant improvements are written off if they are replaced or have no future value. In 2025, 2024 and 2023, real estate depreciation expense was $319.6 million, $302.4 million and $282.0 million, respectively, including amounts from real estate sold.

Our methodology of allocating the cost of acquisitions to assets acquired and liabilities assumed is based on estimated fair values, replacement cost and/or appraised values. When we acquire operating real estate properties, the purchase price is allocated to land, building, improvements, leasing costs, intangibles such as acquired leases, assumed debt, if any, and to current assets acquired and current liabilities assumed, if any. The value allocated to acquired leases is amortized over the related lease term and reflected as rental income in the consolidated statements of comprehensive income. We consider qualitative and quantitative factors in evaluating the likelihood of a tenant exercising a below market renewal option and include such renewal options in the calculation of acquired lease value when we consider these to be bargain renewal options. If the value of below market lease intangibles includes renewal option periods, we include such renewal periods in the amortization period utilized. If a tenant vacates its space prior to contractual termination of its lease, the unamortized balance of any acquired lease value is written off to rental income.

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Transaction costs related to asset acquisitions, such as broker fees, transfer taxes, legal, accounting, valuation, and other professional and consulting fees, are capitalized as part of the acquisition cost. The acquisition of an operating shopping center typically qualifies as an asset acquisition.

We capitalize certain costs related to the development and redevelopment of real estate including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved, are capitalized. Additionally, we capitalize interest costs related to development and redevelopment activities. Capitalization of these costs begin when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use at which time the project is placed in service and depreciation commences. Additionally, we make estimates as to the probability of certain development and redevelopment projects being completed. If we determine the development or redevelopment is no longer probable of completion, we expense all capitalized costs which are not recoverable.

Long-Lived Assets and Impairment

There are estimates and assumptions made by management in preparing the consolidated financial statements for which the actual results will be determined over long periods of time. This includes the recoverability of long-lived assets, including our properties that have been acquired or redeveloped and our investment in certain joint ventures. Management’s evaluation of impairment includes review for possible indicators of impairment as well as, in certain circumstances, undiscounted and discounted cash flow analysis. Since most of our investments in real estate are wholly-owned or controlled assets which are held for use, a property with impairment indicators is first tested for impairment by comparing the undiscounted cash flows, including residual value, to the current net book value of the property. If the undiscounted cash flows are less than the net book value, the property is written down to expected fair value.

The calculation of both discounted and undiscounted cash flows requires management to make estimates of future cash flows including revenues, operating expenses, required maintenance and development expenditures, market conditions, demand for space by tenants and rental rates over long periods. Because our properties typically have a long life, the assumptions used to estimate the future recoverability of book value requires significant management judgment. Actual results could be significantly different from the estimates. These estimates have a direct impact on net income, because recording an impairment charge results in a negative adjustment to net income. During the fourth quarter of 2025, we recognized a $7.4 million impairment charge related to our North Dartmouth property, as a result of an impairment analysis.

Cash and Cash Equivalents

We define cash and cash equivalents as cash on hand, demand deposits with financial institutions and short term liquid investments with an initial maturity, when purchased, under three months. Cash balances in individual banks may exceed the federally insured limit by the Federal Deposit Insurance Corporation (the “FDIC”). At December 31, 2025, we had $111.9 million in excess of the FDIC insured limit.

Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist primarily of lease costs, prepaid property taxes and acquired above market leases. Capitalized lease costs are incremental direct costs incurred which were essential to originate a successful leasing arrangement and would not have been incurred had the leasing transaction not taken place. These costs include third party commissions related to obtaining a lease. Capitalized lease costs are amortized over the initial life of the related lease which generally ranges from three to ten years. We view these lease costs as part of the up-front initial investment we made in order to generate a long-term cash inflow and therefore, we classify cash outflows related to leasing costs as an investing activity in our consolidated statements of cash flows. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any previously capitalized lease costs are written off.

Debt Issuance Costs

Costs related to the issuance of debt instruments are deferred and are amortized as interest expense over the estimated life of the related issue using the straight-line method which approximates the effective interest method. If a debt instrument is paid off prior to its original maturity date, the unamortized balance of debt issuance costs are written off to interest expense or, if significant, included in “early extinguishment of debt.” Debt issuance costs related to our revolving credit facility and our undrawn $250.0 million unsecured term loan are classified as an asset and are included in "prepaid expenses and other assets" in our consolidated balance sheets. All other debt issuance costs are presented as a direct deduction from the carrying amount of the debt liability.

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Derivative Instruments

We may use derivative instruments to manage exposure to variable interest rate risk. We generally enter into interest rate swaps to manage our exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt. We enter into derivative instruments that qualify as cash flow hedges and do not enter into derivative instruments for speculative purposes.

Interest rate swaps associated with cash flow hedges are recorded at fair value on a recurring basis. Effectiveness of cash flow hedges is assessed both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with cash flow hedges is recorded in other comprehensive income (loss) which is included in accumulated other comprehensive income (loss) on the balance sheet and statement of shareholders' equity. Cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and SOFR rate. In addition, the default risk of the counterparty is evaluated by monitoring the credit worthiness of the counterparty which includes reviewing debt ratings and financial performance. If a cash flow hedge is deemed ineffective, the ineffective portion of changes in fair value of the interest rate swaps associated with cash flow hedges is recognized in earnings in the period affected.

At December 31, 2025, we have interest rate swap agreements that effectively fix the rate on the following debt instruments:


Debt	Notional Amount of Related Swap Agreements		Weighted Average Fixed Rate		Maturity Date of Related Swap Agreements
	(in millions)
Consolidated Debt
$750 million term loan	$	450.0	4.17	%	March 1, 2028

Hoboken mortgage loan	$	50.6	3.67	%	December 15, 2029
Unconsolidated Debt
Assembly Row Hotel	$	37.9	6.11	%	May 30, 2028
Chandler Festival	$	51.0	4.93	%	October 4, 2030
Chandler Gateway	$	22.3	4.93	%	October 4, 2030

All swaps were designated and qualify as cash flow hedges. Hedge ineffectiveness has not impacted earnings in 2025, 2024 and 2023.

Mortgage Notes Receivable

We have invested in certain mortgage loans that, because of their nature, qualify as loan receivables. At the time of investment, we did not intend for the arrangement to be anything other than a financing and did not contemplate a real estate investment. We evaluate each investment to determine whether the loan arrangement qualifies as a loan, joint venture or real estate investment and the appropriate accounting thereon. Such determination affects our balance sheet classification of these investments and the recognition of interest income derived therefrom.

Mortgage notes receivable are recorded at cost, net of any valuation adjustments. We account for mortgage notes receivable using the "expected credit loss" model, and accordingly impairment losses are estimated and recorded for the entire life of the loan. Interest income is accrued as earned. Mortgage notes receivable are considered past due based on the contractual terms of the note agreement. On a quarterly basis, we evaluate the collectability of each mortgage note receivable and update our expected credit loss model based on various factors which may include payment history, expected fair value of the collateral securing the loan, internal and external credit information and/or economic trends. A loan is considered impaired when it is probable that we will be unable to collect all amounts due under the existing contractual terms. When a loan is considered impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the mortgage note receivable to the present value of expected future cash flows. As our loans are collateralized by mortgages, these loans have risk characteristics similar to the risks in owning commercial real estate.

At December 31, 2025, we had three mortgage notes receivable with an aggregate carrying amount, net of valuation adjustments, of $9.1 million, and a weighted average interest rate of 11.0%. The borrower on two of these mortgage notes receivable is in default. However, we believe the fair value of the property supports the $9.1 million carrying value of our notes.

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Share Based Compensation

We grant share based compensation awards to employees and trustees typically in the form of restricted common shares, common shares, and options. We measure share based compensation expense based on the grant date fair value of the award and recognize the expense ratably over the requisite service period, which is typically the vesting period. See Note 12 to the consolidated financial statements for further discussion regarding our share based compensation plans and policies.

Variable Interest Entities

Certain entities that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or in which equity investors do not have the characteristics of a controlling financial interest qualify as VIEs. VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE has both the power to direct the activities that most significantly impact economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

Our equity method investments in the Assembly Row hotel joint venture, the La Alameda shopping center, the Chandler Festival and Chandler Gateway shopping centers, and our mortgage notes receivable are considered variable interests in a VIE. As we do not control the activities that most significantly impact the economic performance of our equity method joint ventures or the borrower entities related to our mortgage notes receivable, we are not the primary beneficiary and do not consolidate. As of December 31, 2025 and 2024, our investment in the equity method joint ventures and maximum exposure to loss was $27.9 million and $29.4 million, respectively. As of December 31, 2025 and 2024, our investment in mortgage notes receivable and maximum exposure to loss was $9.1 million.

In addition, we have 18 entities that meet the criteria of a VIE in which we hold a variable interest. For each of these entities, we control the significant operating decisions and consequently have the power to direct the activities that most significantly impact the economic performance of the entities. As we also have the obligation to absorb the majority of the losses and/or the right to receive a majority of the benefits for each of these entities, all are consolidated in our financial statements. Net real estate assets related to VIEs included in our consolidated balance sheets were approximately $1.4 billion as of December 31, 2025 and 2024, and mortgages related to VIEs included in our consolidated balance sheets were approximately $194.2 million and $186.6 million, as of December 31, 2025 and 2024, respectively.

Redeemable Noncontrolling Interests

We have certain noncontrolling interests that are redeemable for cash upon the occurrence of an event that is not solely in our control and therefore are classified outside of permanent equity. We adjust the carrying amounts of these noncontrolling interests that are currently redeemable to redemption value at the balance sheet date. Adjustments to the carrying amount to reflect changes in redemption value are recorded as adjustments to additional paid-in capital in shareholders' equity. These amounts are classified within the mezzanine section of the consolidated balance sheets.

The following table provides a rollforward of the redeemable noncontrolling interests:


	Year Ended
	December 31,
	2025		2024
	(In thousands)
Beginning balance	$	180,286	$	183,363
Net income	8,138		7,022
Contributions	1,725		—

Other comprehensive (loss) income - change in value of interest rate swaps	(210)		23
Distributions & redemptions	(8,459)		(8,854)

Change in redemption value	175		(1,268)
Ending balance	$	181,655	$	180,286

Leases

For operating leases where we are the lessee, the related operating lease right of use ("ROU") assets and lease liabilities are shown separately on the face of our consolidated balance sheet and reflect the present value of the minimum lease payments. A key input in the calculation is the discount rate. As the rate implied in the lease agreements is not readily determinable, we

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utilize our incremental borrowing rate that corresponds to the remaining term of the lease, our credit spread, and an adjustment to reflect the collateralized payment terms present in the lease. Our operating lease agreements may include options to extend the lease term or terminate it early. We include options to extend or terminate leases in the ROU operating lease asset and liability when it is reasonably certain we will exercise these options. Operating lease expense is recognized on a straight-line basis over the non-cancellable lease term and is included in rental expenses in our consolidated statements of operations. We recognize variable lease payments as expense in the period in which they are incurred. We do not record a ROU asset or lease liability for leases with terms of less than 12 months.

Income Taxes

We operate in a manner intended to enable us to qualify as a REIT for federal income tax purposes. A REIT that distributes at least 90% of its taxable income to its shareholders each year and meets certain other conditions is not taxed on that portion of its taxable income which is distributed to its shareholders. Therefore, federal income taxes on our taxable income have been and are generally expected to be immaterial. We are obligated to pay state taxes, generally consisting of franchise or gross receipts taxes in certain states. Such state taxes also have not been material.

We have elected to treat certain of our subsidiaries as taxable REIT subsidiaries, which we refer to as a TRS. In general, a TRS may engage in any real estate business and certain non-real estate businesses, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the “Code”). A TRS is subject to federal and state income taxes. Our TRS activities have not been material.

With few exceptions, we are no longer subject to U.S. federal, state, and local tax examinations by tax authorities for years before 2020. As of December 31, 2025 and 2024, we had no material unrecognized tax benefits. While we currently have no material unrecognized tax benefits, as a policy, we recognize penalties and interest accrued related to unrecognized tax benefits as income tax expense.

Segment Information

Our primary business is the ownership, management, and redevelopment of retail and mixed-use properties. Our chief executive officer is our chief operating decision maker ("CODM"), who regularly reviews operating and financial information for commercial and, as applicable, residential components for each property on an individual basis. As a result, each commercial and, as applicable, residential component for each property represents an individual operating segment. We evaluate financial performance using property operating income ("POI"), a non-GAAP measure which consists of rental income and mortgage interest income, less rental expenses and real estate taxes.

Reconciliation of property operating income to consolidated net income:


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
Property operating income	$	860,092	$	810,653	$	769,059
General and administrative expense	(46,913)		(49,739)		(50,707)
Depreciation and amortization	(367,842)		(342,598)		(321,763)
New market tax credit transaction income	14,176		—		—
Gain on sale of real estate	150,111		54,040		9,881
Impairment charge	(7,425)		—		—
Other interest income	3,143		4,294		4,687
Interest expense	(183,614)		(175,476)		(167,809)
Income from partnerships	1,920		3,160		3,869
Net income	423,648		304,334		247,217
Net income attributable to noncontrolling interests	(12,571)		(9,126)		(10,232)
Net income attributable to the Trust	$	411,077	$	295,208	$	236,985

No individual commercial or residential property constitutes more than 10% of our revenues or property operating income and we have no operations outside of the United States of America. We do not distinguish or group our operations on a geographical basis for purposes of allocation of resources or capital. Therefore, we have aggregated our properties into one

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reportable segment as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies and are typically located in major metropolitan areas.

We do not present significant expense disclosures for our reportable segment as operating segment level expenses are not regularly provided to our CODM. However, a breakout of the principal components of rental expense can be found in Note 11 to the consolidated financial statements and real estate tax expense is presented on the face of the consolidated statement of comprehensive income.

We do not present a reconciliation of our reportable segment's assets to consolidated assets, as asset information by operating segment is not used by our CODM to allocate resources and capital or assess performance.

Forward Equity Sales

Our at-the-market (“ATM”) equity program allows shares to be sold through forward sales contracts. Our forward sales contracts currently meet all the conditions for equity classification; and therefore, we record common stock on the settlement date at the purchase price contemplated by the contract. Furthermore, we consider the potential dilution resulting from forward sales contracts in our earnings per share calculations. We use the treasury stock method to determine the dilution, if any, from the forward sales contracts during the period of time prior to settlement. See Note 8 to the consolidated financial statements for details of our forward sales transactions.

Exchangeable Senior Notes

On January 11, 2024, our Operating Partnership issued $485.0 million aggregate principal amount of 3.25% Exchangeable Senior Notes due 2029 (the "Notes") in a private placement (see Note 5 for additional information). We account for our Notes in accordance with ASC 470-20, Debt with Conversion and Other Options (after the adoption of ASU 2020-06, Debt - Debt and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Contracts in an Entity's Own Equity (ASU 2020-06)). The embedded exchange feature is eligible for an exception from derivative accounting because it is indexed to our own stock and meets the equity classification under ASC 815-40; therefore, the exchange feature is not bifurcated. At each reporting period, we calculate the effect of the Notes on our dilutive earnings per common share and per common unit using the if-converted method. In connection with the Notes, we entered into privately negotiated capital call transactions with certain of the initial purchasers of the notes or their affiliates or other financial institutions. Similar to the exchange feature embedded in the Notes, the capped call transactions meet all the conditions for equity classification, and therefore, the related premiums paid are recorded in shareholders' equity for the Trust and capital for the Operating Partnership.

Recent Accounting Pronouncements


Standard	Description	Effect on the financial statements or significant matters

Issued in 2025:

ASU 2025-01, January 2025, and ASU 2024-03, November 2024, Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40)	This ASU requires the disaggregation of specific natural expense categories within relevant income statement captions. Public business entities are required to provide tabular disclosures which disaggregate expenses such as purchases of inventory, employee compensation, depreciation and amortization. A separate total of an entity's selling expenses is also required, along with the disclosure of how the company determines them. The guidance is required to be applied prospectively, but may be applied retrospectively for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15 2027. Early adoption is permitted.	We are assessing the impact of this ASU on our consolidated financial statements.

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Standard	Description	Effect on the financial statements or significant matters
ASU 2025-09, November 2025, Derivatives and Hedging (Topic 815), Hedge Accounting Improvements	This ASU amends certain aspects of hedge accounting in ASC 815. The main amendments relate to cash flow hedging, but some of the amendments affect certain fair value and net investment hedges. The key changes include: (1) Allows individual forecasted transactions to be hedged in a group if they have similar risk exposure for cash flow hedges. (2) Establishes a model borrowers can use in cash flow hedges of forecasted interest payments on choose-your-rate debt instruments. (3) Expands hedge accounting for forecasted purchases and sales of nonfinancial assets. (4) Eliminates the requirement for the net written option test in certain instances to accommodate differences in the loan and swap markets that resulted from reference rate reform. (5) Eliminates the recognition and presentation mismatch for foreign currency-denominated debt used as both a net investment hedge instrument and a hedged item for interest rate risk. The guidance is applied prospectively for all hedging relationships as of the date of adoption. The guidance applies to all public entities and is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted.	We are assessing the impact of this ASU on our consolidated financial statements.

ASU 2025-10, December 2025, Government Grants (Topic 832), Accounting for Government Grants Received by Business Entities	This ASU establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. ASU 2025-10 introduces specific recognition thresholds (probability of compliance and receipt) and detailed disclosures, aiming to improve consistency and comparability in financial reporting for grants. The new guidance is effective for public business entities in annual periods beginning after December 15, 2028 (including interim periods within) and one year later for all other entities, with early adoption permitted in any period for which financial statements have not yet been issued. The guidance can be applied on a modified prospective basis, a modified retrospective basis, or a full retrospective basis	We are assessing the impact of this ASU on our consolidated financial statements.

ASU 2025-11, December 2025, Interim Reporting (Topic 270), Narrow-Scope Improvements	This ASU clarifies that an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. This ASU also addresses the form and content of such financial statements, adds a comprehensive list of mandatory interim disclosures pulled from other ASC topics, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. The guidance can be applied either prospectively or retrospectively. The guidance applies to all public entities and is effective for interim reporting periods with annual reporting periods after December 15, 2027. Early adoption is permitted.	We are assessing the impact of this ASU on our consolidated financial statements.

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Standard	Description	Effect on the financial statements or significant matters

ASU 2025-12, December 2025, Codification Improvements	This ASU clarifies, corrects errors in and makes improvements to several topics within the FASB Codification. The amendments are part of an ongoing FASB project to make non-substantive technical corrections, clarifications, and improvements to make standards more consistent and easier to interpret for preparers and users. The guidance applies to all public entities and is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted.	We do not expect this ASU to have a material impact on our consolidated financial statements.

Issued in 2024:

ASU 2024-04, November 2024, Debt—Debt with Conversion and Other Options (Subtopic 470-20), Induced Conversions of Convertible Debt Instruments	This ASU clarifies that to qualify for induced conversion accounting, an inducement offer must preserve the issuance of all of the consideration (in form and amount) issuable in accordance with the conversion privileges specified in the terms of the existing debt instrument. In addition, the ASU requires that to qualify for induced conversion accounting, an instrument must contain a substantive conversion feature as of the date on which both the issuance offer and the inducement offer are accepted by the convertible debt holder. An entity that doesn't meet all of the criteria for conversion accounting or induced conversion accounting applies extinguishment accounting and recognizes a gain or loss for the difference between the fair value of the entire consideration transferred and the net carrying amount of the debt. Entities have the option to apply the guidance either (1) prospectively to settlements of convertible debt instruments that occur during fiscal years (and interim periods within those fiscal years) beginning after the effective date or (2) retrospectively. Under the retrospective transition approach, the entity recasts prior periods and recognizes a cumulative-effect adjustment to equity as of the later of the beginning of the earliest period presented or the date the entity adopted ASU 2020-06. This is effective for all entities for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years.	We do not expect this ASU to have a material impact on our consolidated financial statements.

Issued in 2023:

ASU 2023-06, October 2023, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative	This ASU amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standard Codification (the "Codification"). The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. These disclosure requirements are currently included in either SEC Regulation S-X or SEC Regulation S-K. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited and the amendments should be applied prospectively. If the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K by June 30, 2027, the amendments will be removed from the Codification and will not be effective.	We do not expect this ASU to have a material impact on our consolidated financial statements.

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Consolidated Statements of Cash Flows—Supplemental Disclosures

The following table provides supplemental disclosures related to the Consolidated Statements of Cash Flows:


	Year Ended December 31,
	2025		2024		2023
	(In thousands)
SUPPLEMENTAL DISCLOSURES:
Total interest costs incurred	$	196,781	$	195,958	$	190,409
Interest capitalized	(13,167)		(20,482)		(22,600)
Interest expense	$	183,614	$	175,476	$	167,809
Cash paid for interest, net of amounts capitalized	$	171,945	$	169,333	$	158,796
Cash paid for income taxes	$	369	$	177	$	284
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Mortgage loans refinanced	$	40,000	$	—	$	—
Shares issued under dividend reinvestment plan	$	1,614	$	1,670	$	1,704






DownREIT operating partnership units redeemed for common shares	$	103	$	1,715	$	883


	December 31,
	2025		2024
	(In thousands)
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Cash and cash equivalents	$	107,415	$	123,409
Restricted cash (1)	10,291		12,034
Total cash, cash equivalents, and restricted cash	$	117,706	$	135,443

(1)Restricted cash balances are included in "prepaid expenses and other assets" on our consolidated balance sheets, and is primarily related to escrow accounts.

NOTE 3—REAL ESTATE

2025 Property Acquisitions

During the year ended December 31, 2025, we acquired the following properties:


Date Acquired	Property	City/State	Gross Leasable Area (GLA)	Purchase Price
			(in square feet)	(in millions)
February 25, 2025	Del Monte Shopping Center	Monterey, California	675,000	$	123.5	(1)
July 1, 2025	Town Center Crossing and Town Center Plaza	Leawood, Kansas	552,000	$	289.0	(2)
October 10, 2025	Annapolis Town Center	Annapolis, Maryland	479,000	$	187.0	(3)
November 24, 2025	Village Pointe	Omaha, Nebraska	452,000	$	153.3	(4)

(1)Approximately $17.7 million and $0.8 million of net assets were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $23.5 million of net assets acquired were allocated to other liabilities for "below market leases."

(2)Approximately $31.0 million and $6.5 million of net assets were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $11.4 million of net assets acquired were allocated to other liabilities for "below market leases."

(3)Approximately $18.0 million and $2.9 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $9.0 million of net assets acquired were allocated to other liabilities for "below market leases."

(4)Approximately $18.1 million and $1.0 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $10.5 million of net assets acquired were allocated to other liabilities for "below market leases."

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2025 Property Dispositions

During the year ended December 31, 2025, we sold the following properties:


Property	Sales Price		Gain
	(in millions)		(in millions)
Pike & Rose (one residential building)	$	125.0	$	41.9
Santana Row (one residential building)	73.9		49.1
Hollywood Boulevard	69.0		27.2
Bristol Plaza	44.4		30.6

White Marsh Other (portion)	3.4		0.8
	$	315.7	$	149.6

2024 Property Acquisitions

On May 31, 2024, we acquired the fee interest in Virginia Gateway, which comprises five adjacent shopping centers in Gainesville, Virginia, totaling 664,000 square feet, for $215.0 million. Approximately $21.1 million and $0.4 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $13.3 million of net assets acquired were allocated to other liabilities for "below market leases."

On July 31, 2024, we acquired the fee interest in Pinole Vista Crossing, a 216,000 square foot retail shopping center in Pinole, California for $60.0 million. Approximately $5.7 million of net assets acquired were allocated to other assets for "acquired lease costs," and $4.0 million of net assets acquired were allocated to other liabilities for "below market leases."

2024 Property Disposition

During the year ended December 31, 2024, we sold our Third Street Promenade property and a portion of our White Marsh Other property for sales prices totaling $106.8 million, resulting in a gain on sale of $53.8 million.

NOTE 4—ACQUIRED LEASES

Acquired lease assets comprise of above market leases where we are the lessor and below market leases where we are the lessee. Acquired lease liabilities comprise below market leases where we are the lessor and above market leases where we are the lessee. As a lessor, acquired above market leases are included in prepaid expenses and other assets, and acquired below market leases are included in other liabilities and deferred credits. In accordance with our adoption of ASC Topic 842, acquired below market leases and acquired above market leases where we are the lessee are included in right of use assets. The following is a summary of our acquired lease assets and liabilities:


	December 31, 2025				December 31, 2024
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
	(in thousands)
Above market leases, lessor	$	52,219	$	(35,922)	$	42,171	$	(34,046)
Below market leases, lessee	28,101		(6,879)		28,101		(6,145)
Total	$	80,320	$	(42,801)	$	70,272	$	(40,191)

Below market leases, lessor	$	(325,025)	$	122,359	$	(277,883)	$	111,719
Above market leases, lessee	(11,127)		4,896		(11,127)		4,333
Total	$	(336,152)	$	127,255	$	(289,010)	$	116,052

The value allocated to acquired leases where we are the lessor is amortized over the related lease term and reflected as additional rental income for below market leases or a reduction of rental income for above market leases in the consolidated statements of comprehensive income. The related amortization of acquired leases where we are the lessee is reflected as additional rental expense for below market leases or a reduction of rental expenses for above market leases in the consolidated statements of comprehensive income. The following is a summary of acquired lease amortization:

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	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Amortization of above market leases, lessor	$	(3,106)	$	(2,799)	$	(3,254)
Amortization of below market leases, lessor	17,862		16,290		15,864
Net increase in rental income	$	14,756	$	13,491	$	12,610

Amortization of below market leases, lessee	$	734	$	734	$	742
Amortization of above market leases, lessee	(563)		(562)		(563)
Net increase in rental expense	$	171	$	172	$	179

The following is a summary of the remaining weighted average amortization period for our acquired lease assets and acquired lease liabilities:


						December 31, 2025

Above market leases, lessor						2.8 years
Below market leases, lessee						29.0 years
Below market leases, lessor						16.6 years
Above market leases, lessee						16.1 years

The amortization for acquired leases during the next five years and thereafter, assuming no early lease terminations, is as follows:


	Acquired Lease Assets		Acquired Lease Liabilities
	(In thousands)
Year ending December 31,
2026	$	4,734	$	17,075
2027	3,870		16,031
2028	3,221		14,693
2029	2,835		13,294
2030	2,223		12,374
Thereafter	20,636		135,430
	$	37,519	$	208,897

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NOTE 5—DEBT

The following is a summary of our total debt outstanding as of December 31, 2025 and 2024:


	Principal Balance as of December 31,				Stated Interest Rate as of		Stated Maturity Date as of
Description of Debt	2025		2024		December 31, 2025		December 31, 2025
Mortgages payable	(Dollars in thousands)
Bell Gardens	$	10,885	$	11,215	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		40,000		SOFR + 0.85%		October 30, 2028
Brook 35	11,500		11,500		4.65	%	July 1, 2029
Hoboken (24 Buildings) (4)	50,568		52,123		SOFR + 1.95%		December 15, 2029
Various Hoboken (12 Buildings)(5)	23,568		28,838		Various		Various through 2029
Chelsea	3,091		3,568		5.36	%	January 15, 2031
Subtotal	523,212		515,844
Net unamortized debt issuance costs and discount	(1,453)		(1,466)
Total mortgages payable, net	521,759		514,378
Notes payable
Revolving credit facility (2)(6)	310,000		—		SOFR + 0.775%		April 5, 2027
$750 million term loan (2)(6)(7)	750,000		600,000		SOFR + 0.85%		March 20, 2028
$250 million term loan (2)(6)	—		—		SOFR + 0.85%		January 31, 2031
Various	1,190		1,680		Various		Various through 2059
Subtotal	1,061,190		601,680
Net unamortized debt issuance costs	(3,859)		(266)
Total notes payable, net	1,057,331		601,414
Senior notes and debentures (6)




1.25% notes	400,000		400,000		1.25	%	February 15, 2026
7.48% debentures	29,200		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		3,379,200
Net unamortized debt issuance costs and premium	(15,190)		(21,360)
Total senior notes and debentures, net	3,364,010		3,357,840





Total debt	$	4,943,100	$	4,473,632

(1)We have one one-year extension, at our option to extend the maturity date of this mortgage loan to December 28, 2027.

(2)Our Azalea mortgage loan, revolving credit facility SOFR loans, and our term loans bear interest at Daily Simple SOFR, as defined in the respective credit agreements, plus a spread, based on our current credit rating.

(3)The Operating Partnership is a co-borrower on this mortgage loan. Additionally, we have two one-year extensions, at our option to extend the maturity date of this mortgage loan to October 30, 2030.

(4)The interest rate on this mortgage loan is fixed at 3.67% through two interest rate swap agreements.

(5)The interest rates on these mortgages range from 3.91% to 5.00%.

(6)The Operating Partnership is the obligor under our revolving credit facility, term loans, and senior notes and debentures. A wholly owned subsidiary of the Operating Partnership is also an obligor of the $750.0 million term loan.

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(7)The interest rate on $450.0 million of our term loan is fixed at a weighted average interest rate of 4.17% through March 1, 2028 through interest rate swap agreements.

On January 9, 2025 and October 1, 2025 we repaid two mortgage loans at our Hoboken property totaling $4.3 million,at par.

On March 20, 2025, we amended and restated our $600.0 million unsecured term loan, extending the maturity date to March 20, 2028, plus two one-year extensions, at our option. We also had the right to borrow up to an additional $150.0 million, which we exercised on September 22, 2025, bringing our total amount outstanding under this agreement to $750.0 million as of December 31, 2025. Debt issuance costs related to our term loan were $4.9 million. Under an accordion feature, we have the right to request additional loans, subject to an aggregate maximum of $1.0 billion borrowed under the restated agreement. Additionally, on May 1, 2025, the interest rate was reduced by removing the 0.10% adjustment to SOFR.

On October 30, 2025, we refinanced the $40.0 million mortgage loan at Azalea, with a new $55.0 million mortgage loan that bears interest at SOFR + 85 basis points, based on our credit rating, and matures on October 30, 2028, plus two one-year extensions, at our option. Debt issuance costs related to this mortgage loan were $0.6 million.

On November 17, 2025, we entered into an additional unsecured term loan agreement, which gives us the capacity to borrow up to $250.0 million at an interest rate of SOFR + 85 basis points, based on our current credit rating. The loan matures on January 31, 2031, and as of December 31, 2025, we do not have any outstanding borrowings under this agreement. Debt issuance costs related to this term loan were $1.5 million. Under an accordion feature, we have the right to request additional loans, subject to an aggregate maximum of $500.0 million.

On December 17, 2025, we exercised our first option to extend our $200.0 million mortgage loan at Bethesda Row by one year to December 28, 2026. We have one one-year extension, at our option remaining to extend the loan to December 28, 2027.

During 2025, 2024 and 2023, the maximum amount of borrowings outstanding under our revolving credit facility was $461.6 million, $202.7 million and $115.5 million, respectively. The weighted average amount of borrowings outstanding was $153.2 million, $33.5 million and $44.7 million, respectively, and the weighted average interest rate, before amortization of debt fees, was 5.0%, 6.1% and 5.9%, respectively. The revolving credit facility requires an annual facility fee which is $1.9 million under the amended credit agreement. At December 31, 2025, our revolving credit facility had $310.0 million outstanding, and had no balance outstanding at December 31, 2024. On October 30, 2025, the interest rate on our revolving credit facility was reduced by removing the 0.10% adjustment to SOFR.

Our revolving credit facility, term loans, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders’ equity and debt coverage ratios and a maximum ratio of debt to net worth. As of December 31, 2025, we were in compliance with all default related debt covenants.

Exchangeable Senior Notes

On January 11, 2024, our Operating Partnership issued $485.0 million aggregate principal amount of 3.25% Exchangeable Senior Notes due 2029 (the “Notes”) in a private placement. The notes bear interest at an annual rate of 3.25%, payable semiannually in arrears on January 15th and July 15th of each year, beginning July 15, 2024. The notes mature on January 15, 2029, unless earlier exchanged, purchased, or redeemed. Net proceeds after the initial purchaser's discount and offering costs were approximately $471.5 million. Interest expense related to these Notes was $18.5 million and $17.9 million, respectively for the years ended December 31, 2025 and 2024, and includes debt issuance cost amortization of $2.7 million and $2.6 million, respectively. Including the debt issuance cost amortization, the current effective interest rate on these notes is approximately 3.9%. The unamortized debt issuance costs related to the Notes were $8.2 million and $10.9 million, respectively, at December 31, 2025 and 2024.

Prior to the close of business on July 15, 2028, the Notes will be exchangeable at the option of the holders only upon certain circumstances and during certain periods. On or after July 15, 2028, until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes, holders may exchange their Notes at any time. The Operating Partnership will settle exchanges of the Notes by delivering cash up to the principal amount of the Notes exchanged, and if applicable, cash, common shares of the Trust, or a combination thereof at our option, in respect of the remainder, if any, of the exchange obligation in excess of the principal amount. If we elect to settle any portion of the exchange obligation in excess of the principal amount with shares of the Trust, an equivalent number of common units will be issued by the Operating Partnership to the Trust. The exchange rate initially equals 8.1436 common shares per $1,000 principal amount of the Notes (which is equivalent to an exchange price of approximately $122.80 per common share and reflects an exchange premium of approximately 20% based on the closing price of $102.33 on January 8, 2024). The initial exchange rate is subject to adjustment upon the occurrence of certain events, including in the event of a payment of a quarterly common dividend in excess

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of $1.09 per share, but will not be adjusted for any accrued and unpaid interest. While our quarterly common dividend per share currently exceeds $1.09, the exchange rate has not materially changed.

The Operating Partnership may redeem the Notes, at its option, in whole or in part, on or after January 20, 2027 if the last reported sales price of the common shares has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 day consecutive trading period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Operating Partnership provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date.

In connection with the Notes, we entered into privately negotiated capped call transactions with certain of the initial purchasers of the notes or their affiliates or other financial institutions. The capped call transactions cover, subject to customary adjustments, the number of our common shares that initially underlie the Notes. The capped call transactions are expected generally to reduce the potential dilution to our common shares upon exchange of any Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, with such reduction and/or offset subject to a cap. The cap price of the capped call transaction initially is approximately $143.26 per share, which represents a premium of approximately 40% over the last reported sale price of our common shares of $102.33 on the New York Stock Exchange on January 8, 2024, and is subject to certain adjustments under the terms of the capped call transactions. A portion of the proceeds from the Notes were used to pay the capped call premium of $19.4 million, which was recorded in shareholders' equity for the Trust and capital for the Operating Partnership.

Scheduled principal payments on mortgages payable, notes payable, senior notes and debentures as of December 31, 2025 are as follows:


	Mortgages Payable			Notes Payable			Senior Notes and Debentures		Total Principal
	(In thousands)
Year ending December 31,
2026	$	226,242	(1)	$	153		$	429,200	$	655,595
2027	178,282			310,037		(2)	515,000		1,003,319
2028	57,511		(3)	750,000		(4)	350,000		1,157,511
2029	60,434			—			885,000		945,434
2030	684			—			400,000		400,684
Thereafter	59			1,000			800,000		801,059
	$	523,212		$	1,061,190		$	3,379,200	$	4,963,602	(5)

(1)Our $200.0 mortgage loan secured by Bethesda Row matures on December 28, 2026 plus one one-year extension, at our option to December 28, 2027.

(2)Our $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 $55.0 million mortgage loan secured by Azalea matures on October 30, 2028, plus two one-year extensions at our option to October 30, 2030.

(4)Our $750.0 million term loan matures on March 20, 2028, plus two one-year extension at our option to March 20, 2030.

(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.

NOTE 6—FAIR VALUE OF FINANCIAL INSTRUMENTS

A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability in an orderly transaction. The hierarchy for inputs used in measuring fair value are as follows:


1.			Level 1 Inputs—quoted prices in active markets for identical assets or liabilities


2.			Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities


3.			Level 3 Inputs—prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

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Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. The fair value of our mortgages payable, notes payable and senior notes and debentures is sensitive to fluctuations in interest rates. Quoted market prices (Level 1) were used to estimate the fair value of our marketable senior notes and debentures and discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable. Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the carrying amount and fair value of our mortgages payable, notes payable and senior notes and debentures is as follows:


	December 31, 2025						December 31, 2024
Carrying Value			Fair Value			Carrying Value			Fair Value
(In thousands)
Mortgages and notes payable	$	1,579,090		$	1,572,977		$	1,115,792		$	1,098,271
Senior notes and debentures	$	2,887,190		$	2,743,096		$	2,883,713		$	2,645,097
Exchangeable senior notes	$	476,820		$	492,912		$	474,127		$	495,510

The following table is a summary of our outstanding interest rate swap agreements on consolidated debt as of December 31, 2025:


Interest Rate Swap	Notional Amount		Maturity Date of Related Swap Agreements	Weighted Average Interest Rate		Balance Sheet Location	Fair Value
	(in millions)						(in millions)
$750 million term loan (1)	$	450.0	March 1, 2028	4.17	%	Other liabilities and deferred credits	$	(0.5)

Hoboken	50.6		December 15, 2029	3.67	%	Prepaid expenses and other assets	3.1
	$	500.6					$	2.6

(1) These interest rate swaps were entered into during the year ended December 31, 2025, and fix the interest rate on $450.0 million of our unsecured term loan.

The fair values of the interest rate swap agreements are based on the estimated amounts we would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. During 2025, the value of our interest rate swaps decreased $2.6 million (including $2.5 million reclassified from other comprehensive income as a decrease to interest expense). A summary of our net financial assets that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows:


	December 31, 2025								December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Interest rate swaps	$	—	$	2,601	$	—	$	2,601	$	—	$	5,208	$	—	$	5,208

During the year ended December 31, 2025, we entered into interest rate swap agreements for two of our equity method investees. Therefore, as of December 31, 2025, three of our equity method investees have interest rate swaps which qualify as cash flow hedges. At December 31, 2025 and December 31, 2024, our share of the change in fair value of the related swaps included in "accumulated other comprehensive (loss) income" was a loss of $0.3 million and income of $0.2 million, respectively.

NOTE 7—COMMITMENTS AND CONTINGENCIES

We are sometimes involved in lawsuits, warranty claims, and environmental matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.

We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also

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under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us (1) as owner of the properties due to certain matters relating to the operation of the properties by the tenant, and (2) where appropriate, due to certain matters relating to the ownership of the properties prior to their acquisition by us.

We are self-insured for general liability costs up to predetermined retained amounts per claim, and we believe that we maintain adequate accruals to cover our retained liability. Our accrual for self-insurance liability is determined by management and is based on claims filed and an estimate of claims incurred but not yet reported. Management considers a number of factors, including third-party actuarial analysis, previous experience in our portfolio, and future increases in costs of claims, when making these determinations. If our liability costs exceed these accruals, it will reduce our net income.

At December 31, 2025 and 2024, our reserves for general liability costs were $5.0 million and $4.4 million, respectively, and are included in “accounts payable and accrued expenses” in our consolidated balance sheets. Any potential losses which exceed our estimates would result in a decrease in our net income. During 2025 and 2024, we made payments from these reserves of $2.9 million and $2.1 million, respectively. Although we consider the reserve to be adequate, there can be no assurance that the reserve will prove to be adequate over-time to cover losses due to the difference between the assumptions used to estimate the reserve and actual losses.

On December 11, 2019, we received proceeds related to the sale under threat of condemnation at San Antonio Center as discussed in our Annual Report on Form 10-K for the year ended December 31, 2019. We indemnified the condemning authority for all costs incurred related to the condemnation proceedings including any payments required to tenants at the property and recorded a corresponding liability for our estimate of these costs. At December 31, 2025, we have a liability of $3.4 million to reflect our estimate of the remaining costs.

In June 2018, we formed a joint venture to develop Freedom Plaza (formerly Jordan Downs Plaza), for which we own 92%. The investment in this development qualified for tax credits under the New Market Tax Credit ("NMTC") Program, established by the Community Renewal Tax Relief Act of 2000. In 2018, we transferred the earned tax credits to a third-party bank in exchange for cash proceeds. The proceeds received and related transaction costs were deferred until the end of the seven-year NMTC compliance period, which concluded in June 2025. As a result, for the year ended December 31, 2025, we recognized $14.2 million ($13.0 million, net of income attributable to noncontrolling interest) in income related to the sale of the new market tax credits.

At December 31, 2025, we had letters of credit outstanding of approximately $5.5 million.

As of December 31, 2025 in connection with capital improvement, development, and redevelopment projects, we have contractual obligations of approximately $314.2 million.

We are obligated under operating lease agreements on several shopping centers and one office lease requiring minimum annual payments as follows, as of December 31, 2025:



	(In thousands)
Year ending December 31,
2026	$	5,618
2027	5,325
2028	5,389
2029	5,422
2030	5,427
Thereafter	184,020
Total future minimum operating lease payments	211,201
Less amount representing interest	(138,897)
Operating lease liabilities	$	72,304

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Future minimum lease payments and their present value for properties under finance leases as of December 31, 2025, are as follows:



	(In thousands)
Year ending December 31,
2026	$	713
2027	748
2028	801
2029	801
2030	802
Thereafter	66,272
Total future minimum finance lease payments	70,137
Less amount representing interest	(57,234)
Finance lease liabilities	$	12,903

Under the terms of the Congressional Plaza partnership agreement, a minority partner has the right to require us and the other minority partner to purchase its 26.63% interest in Congressional Plaza at the interest’s then-current fair market value. 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 maximum liability upon exercise of the put option would range from approximately $62 million to $63 million.

The master lease for Melville Mall, as amended on January 15, 2026, includes a fixed price put option at any time on or prior to June 30, 2030 for $4.5 million. Additionally, we have the right to purchase Melville Mall in 2031 for approximately $5.0 million.

The other member in The Grove at Shrewsbury and Brook 35 has the right to require us to purchase all of its approximately 4.1% interest in The Grove at Shrewsbury and approximately 6.5% interest in Brook 35 at the interests' 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.

The other member in Hoboken has the right to require us to purchase all of its 10.0% 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 $12 million to $13 million.

Effective June 14, 2026, the other member in Camelback Colonnade and The Shops at Hilton Village has the right to require us to purchase all of its 2.0% ownership interest at the interest's then-current fair market value. 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.

Effective October 6, 2027, the other member in the partnership that owns equity method investments in Chandler Festival and Chandler Gateway has the right to require us to purchase its 2.5% net ownership interest. 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.

Effective June 1, 2029, the other member in Grossmont Center has the right to require us to purchase all of its 40.0% ownership interest at the interest's then-current fair market value. 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.

Under the terms of certain 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. A total of 526,915 downREIT operating partnership units are outstanding which have a total fair value of $53.1 million, based on our closing stock price on December 31, 2025.

NOTE 8—SHAREHOLDERS’ EQUITY

We have a Dividend Reinvestment Plan (the “Plan”), whereby shareholders may use their dividends and optional cash payments to purchase shares. In 2025, 2024 and 2023, 19,139 shares, 18,101 shares, and 19,847 shares, respectively, were issued under the Plan.

As of December 31, 2025, 2024, and 2023, we had 6,000,000 Depositary Shares outstanding, each representing 1/1000th interest of 5.0% Series C Cumulative Redeemable Preferred Share, par value $0.01 per share ("Series C Preferred Shares"), at the liquidation preference of $25.00 per depositary share (or $25,000 per Series C Preferred share). The Series C Preferred

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Shares accrue dividends at a rate of 5.0% of the $25,000 liquidation preference per year and are redeemable at our option. Additionally, they are not convertible and holders of these shares generally have no voting rights, unless we fail to pay dividends for six or more quarters.

As of December 31, 2025, 2024, and 2023, we had 392,878 shares of 5.417% Series 1 Cumulative Convertible Preferred Shares (“Series 1 Preferred Shares”) outstanding that have a liquidation preference of $25 per share and par value $0.01 per share. The Series 1 Preferred Shares accrue dividends at a rate of 5.417% per year and are convertible at any time by the holders to our common shares at a conversion rate of $104.69 per share. The Series 1 Preferred Shares are also convertible under certain circumstances at our election. The holders of the Series 1 Preferred Shares have no voting rights.

On February 14, 2025, we amended our existing at-the-market (“ATM”) equity program under which we may from time to time offer and sell common shares. This amendment reset the aggregate offering price of the program to $750.0 million. Our ATM equity program also allows shares to be sold through forward sales contracts. We intend to use the net proceeds to fund potential acquisition opportunities, fund our development and redevelopment pipeline, repay indebtedness and/or for general corporate purposes.

During 2025, there were no sales and we did not enter into any forward sales contracts under the amended ATM equity program, and therefore we have the remaining capacity to issue up to $750.0 million in common shares under this program as of December 31, 2025.

For the year ended December 31, 2024, we issued 2,059,654 common shares at a weighted average price per share of $109.20 for net cash proceeds of $222.3 million including paying $2.2 million in commissions and $0.4 million in additional offering expenses related to the sales of these common shares.

For the year ended December 31, 2024, we also entered into forward sales contracts for 1,186,422 common shares under our ATM equity program at a weighted average offering price of $115.72. During 2024, we settled a portion of the forward sales agreements entered into during the year by issuing 709,925 common shares for net proceeds of $81.7 million. During 2025, we settled our remaining open forward sales agreements by issuing 476,497 common shares for net proceeds of $54.2 million.

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. The specific timing and amount of common share repurchases, if any, will depend on a number of factors, including prevailing share prices, trading volume and general market conditions, along with our working capital requirements, cash flow, and other factors. The program does not 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.

NOTE 9—DIVIDENDS

The following table provides a summary of dividends declared and paid per share:


	Year Ended December 31,
	2025				2024				2023
	Declared		Paid		Declared		Paid		Declared		Paid
Common shares	$	4.460	$	4.430	$	4.380	$	4.370	$	4.340	$	4.330
5.417% Series 1 Cumulative Convertible Preferred shares	$	1.354	$	1.354	$	1.354	$	1.354	$	1.354	$	1.354
5.0% Series C Cumulative Redeemable Preferred shares (1)	$	1.250	$	1.250	$	1.250	$	1.250	$	1.250	$	1.250

(1) Amount represents dividends per depositary share, each representing 1/1000th of a share.

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A summary of the income tax status of dividends per share paid is as follows:


	Year Ended December 31,
2025			2024			2023
Common shares
Ordinary dividend	$	3.810		$	3.583		$	3.551
Capital gain	0.620			0.656			0.130
Return of capital	—			0.131			0.649


	$	4.430		$	4.370		$	4.330
5.417% Series 1 Cumulative Convertible Preferred shares
Ordinary dividend	$	1.164		$	1.151		$	1.313
Capital gain	0.190			0.203			0.041


	$	1.354		$	1.354		$	1.354
5.0% Series C Cumulative Redeemable Preferred shares
Ordinary dividend	$	1.075		$	1.063		1.213


Capital gain	0.175			0.187			0.037
	$	1.250		$	1.250		$	1.250

On October 31, 2025, the Trustees declared a quarterly cash dividend of $1.13 per common share, payable January 15, 2026 to common shareholders of record on January 2, 2026.

NOTE 10— LEASES

At December 31, 2025, our 104 predominantly retail shopping center and mixed-use properties are located in 14 states and the District of Columbia. There are approximately 3,700 commercial leases and 2,700 residential leases. Our commercial tenants range from sole proprietorships to national retailers and corporations. At December 31, 2025, no one tenant or corporate group of tenants accounted for more than 2.4% of annualized base rent.

Our leases with commercial property and residential tenants are classified as operating leases. Commercial property leases generally range from three to ten years (certain leases with anchor tenants may be longer), and in addition to minimum rents, may provide for percentage rents based on the tenant’s level of sales achieved and cost recoveries for the tenant’s share of certain operating costs. Leases on apartments are generally for a period of 1 year or less.

As of December 31, 2025, future minimum rentals from noncancelable commercial operating leases (excluding both tenant reimbursements of operating expenses and percentage rent based on tenants' sales) are as follows:



	(In thousands)
Year ending December 31,
2026	$	849,788
2027	809,503
2028	714,912
2029	618,592
2030	514,022
Thereafter	1,938,559
	$	5,445,376

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The following table provides additional information on our operating and finance leases where we are the lessee:


	Year Ended December 31,
	2025		2024			2023
	(In thousands)
LEASE COST:
Finance lease cost:
Amortization of right-of-use assets	$	220	$	220		$	998
Interest on lease liabilities	833		825			4,332
Operating lease cost	5,914		6,048			6,232
Variable lease cost	401		413			348
Total lease cost	$	7,368	$	7,506		$	11,910

OTHER INFORMATION:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	713	$	713		$	4,227
Operating cash flows for operating leases	$	6,214	$	6,276		$	6,146
Financing cash flows for finance leases	$	—	$	—		$	55,228



			December 31,
			2025			2024
Weighted-average remaining term - finance leases			68.7 years			69.7 years
Weighted-average remaining term - operating leases			53.7 years			53.2 years
Weighted-average discount rate - finance leases			6.5		%	6.5		%
Weighted-average discount rate - operating leases			4.8		%	4.8		%

NOTE 11—COMPONENTS OF RENTAL EXPENSES

The principal components of rental expenses are as follows:


	Year Ended December 31,
2025			2024			2023
(In thousands)
Repairs and maintenance	$	108,267		$	99,367		$	87,349
Utilities	42,703			38,676			35,109
Management fees and costs	34,558			32,203			30,203
Payroll	22,876			22,302			20,598
Insurance	19,412			19,383			18,273
Marketing	7,934			7,536			7,978
Ground rent	5,892			5,259			5,303
Other operating	25,803			24,843			26,853
Total rental expenses	$	267,445		$	249,569		$	231,666

NOTE 12—SHARE-BASED COMPENSATION PLANS

A summary of share-based compensation expense included in net income is as follows:


	Year Ended December 31,
	2025		2024		2023
	(In thousands)

Grants of common shares, restricted stock units, and options	$	15,561	$	17,379	$	15,427
Capitalized share-based compensation	(953)		(1,022)		(1,119)
Share-based compensation expense	$	14,608	$	16,357	$	14,308

As of December 31, 2025, we have grants outstanding under two share-based compensation plans. In May 2020, our shareholders approved the 2020 Performance Incentive Plan ("the 2020 Plan"), which authorized the grant of share options,

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common shares, and other share-based awards for up to 1,750,000 common shares of beneficial interest. Our 2010 Long Term Incentive Plan, as amended (the "2010 Plan”), which expired in May 2020, authorized the grant of share options, common shares and other share-based awards for up to 2,450,000 common shares of beneficial interest.

Option awards under the plans are required to have an exercise price at least equal to the closing trading price of our common shares on the date of grant. Options and restricted share awards under the plan generally vest over three to seven years and option awards typically have a ten-year contractual term. We pay dividends on unvested shares. Certain options and share awards provide for accelerated vesting if there is a change in control. Additionally, the vesting on certain option and share awards can accelerate in part or in full upon termination without cause.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities, term, dividend yields, employee exercises and estimated forfeitures are primarily based on historical data. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of each share award is determined based on the closing trading price of our common shares on the grant date. No options were granted in 2025 and 2023. The following table provides a summary of the assumptions used to value options granted in 2024:


	Year Ended December 31,
	2024
Volatility	31.9	%
Expected dividend yield	4.3	%
Expected term (in years)	7.5
Risk free interest rate	4.1	%

The weighted-average grant-date fair value of options granted in 2024 was $24.59 per share. The following table provides a summary of option activity for 2025:


	Shares Under Option	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
				(In years)	(In thousands)
Outstanding at December 31, 2024	3,019	$	98.09
Granted	—	—
Exercised	—	—
Forfeited or expired	—	—
Outstanding at December 31, 2025	3,019	$	98.09	6.3	$	9
Exercisable at December 31, 2025	1,701	$	96.59	5.5	$	7

The following table provides a summary of restricted share award activity for 2025:


	Shares	Weighted-Average Grant-Date Fair Value
Unvested at December 31, 2024	268,220	$	107.57
Granted	146,086	110.17
Vested	(128,262)	110.26
Forfeited	(5,489)	121.76
Unvested at December 31, 2025	280,555	$	107.42

The weighted-average grant-date fair value of stock awarded in 2025, 2024 and 2023 was $110.17, $101.84 and $109.44, respectively. The total vesting-date fair value of shares vested during the year ended December 31, 2025, 2024 and 2023, was $14.0 million, $17.3 million and $14.4 million, respectively.

On February 10, 2021, 10,441 restricted stock units were awarded to an officer, of which 7,204 vested on January 7, 2025, based on meeting certain market based performance criteria. The amount of dividend equivalent rights related to these units is approximately $0.1 million, and was recorded against retained earnings for the year ended December 31, 2024. The weighted-average grant-date fair value of the restricted stock units awarded in 2021 was $97.01.

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As of December 31, 2025, there was $17.2 million of total unrecognized compensation cost related to unvested share-based compensation arrangements (i.e. options and unvested shares) granted under our plans. This cost is expected to be recognized over the next 4.3 years with a weighted-average period of 1.8 years.

Subsequent to December 31, 2025, common shares were awarded under various compensation plans as follows:


Date	Award		Vesting Term	Beneficiary
January 2, 2026	7,786	Shares	Immediate	Trustees
February 11, 2026	157,723	Restricted Shares	3-5 years	Officers and key employees

NOTE 13—SAVINGS AND RETIREMENT PLANS

We have a savings and retirement plan in accordance with the provisions of Section 401(k) of the Code. Generally, employees can elect, at their discretion, to contribute a portion of their compensation up to a maximum of $23,500 for 2025, $23,000 for 2024, and 22,500 for 2023. Under the plan, we contribute 50% of each employee’s elective deferrals up to 5% of eligible earnings. In addition, we may make discretionary contributions within the limits of deductibility set forth by the Code. Our full-time employees are immediately eligible to become plan participants. Employees are eligible to receive matching contributions immediately on their participation; however, these matching payments will not vest until their third anniversary of employment. Our expense for the years ended December 31, 2025, 2024 and 2023 was approximately $1,061,000, $1,012,000 and $960,000, respectively.

A non-qualified deferred compensation plan for our officers and certain other employees was established in 1994 that allows the participants to defer a portion of their income. As of December 31, 2025 and 2024, we are liable to participants for approximately $27.0 million and $24.0 million, respectively, under this plan. Although this is an unfunded plan, we have purchased certain investments to match this obligation. Our obligation under this plan and the related investments are both included in the accompanying consolidated financial statements.

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NOTE 14—EARNINGS PER SHARE AND UNIT

We have calculated earnings per share (“EPS”) and earnings per unit ("EPU") under the two-class method. The two-class method is an earnings allocation methodology whereby EPS and EPU for each class of common stock and partnership units, respectively, and participating securities is calculated according to dividends or distributions declared and participation rights in undistributed earnings. For 2025, 2024, and 2023, we had 0.3 million weighted average unvested shares and units outstanding, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS and EPU between common shares and units and unvested shares and units; the portion of earnings allocated to the unvested shares and units is reflected as “earnings allocated to unvested shares” or "earnings allocated to unvested units" in the reconciliation below.

The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive:

exercise of 1,190 stock options in both 2025 and 2024 and 1,829 stock options in 2023,
shares issuable upon the assumed redemption of outstanding downREIT operating partnership units for 2024, and 2023
5.417% Series 1 Cumulative Convertible Preferred Shares and units for 2025, 2024, and 2023, and
the issuance of 1.2 million shares and units issuable under common share forward sales agreements in 2024.

Potentially issuable shares and units in exchange for the 3.25% Exchangeable Senior Notes due 2029 for both 2025 and 2024, did not have a dilutive effect on the diluted EPS and EPU calculations.

Additionally, 7,204 unvested restricted stock shares and units are included in the diluted EPS and EPU calculations for 2024, as certain market based performance criteria in the award was achieved as of December 31, 2024.

Federal Realty Investment Trust Earnings per Share


	Year Ended December 31,
	2025		2024		2023
	(In thousands, except per share data)
NUMERATOR
Net income	$	423,648	$	304,334	$	247,217
Less: Preferred share dividends	(8,032)		(8,032)		(8,032)
Less: Income from operations attributable to noncontrolling interests	(12,571)		(9,126)		(10,232)
Less: Earnings allocated to unvested shares	(1,342)		(1,283)		(1,286)
Net income available for common shareholders, basic	401,703		285,893		227,667
Add: Income attributable to downREIT operating partnership units	2,455		—		—
Net income available for common shareholders, diluted	$	404,158	$	285,893	$	227,667
DENOMINATOR
Weighted average common shares outstanding—basic	85,852		83,559		81,313
Effect of dilutive securities:


Unvested performance shares	—		7		—
DownREIT operating partnership units	553		—		—
Weighted average common shares outstanding—diluted	86,405		83,566		81,313

EARNINGS PER COMMON SHARE, BASIC AND DILUTED



Net income available for common shareholders	$	4.68	$	3.42	$	2.80

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Federal Realty OP LP Earnings per Unit


	Year Ended December 31,
	2025		2024		2023
	(In thousands, except per unit data)
NUMERATOR
Net income	$	423,648	$	304,334	$	247,217
Less: Preferred unit distributions	(8,032)		(8,032)		(8,032)
Less: Income from operations attributable to noncontrolling interests	(12,571)		(9,126)		(10,232)
Less: Earnings allocated to unvested units	(1,342)		(1,283)		(1,286)
Net income available for common unit holders, basic	401,703		285,893		227,667
Add: Income attributable to downREIT operating partnership units	2,455		—		—
Net income available for common unit holders, diluted	$	404,158	$	285,893	$	227,667
DENOMINATOR
Weighted average common units outstanding—basic	85,852		83,559		81,313
Effect of dilutive securities:


Unvested performance units	—		7		—
DownREIT operating partnership units	553		—		—
Weighted average common units outstanding—diluted	86,405		83,566		81,313

EARNINGS PER COMMON UNIT, BASIC AND DILUTED



Net income available for common unit holders	$	4.68	$	3.42	$	2.80

NOTE 15—SUBSEQUENT EVENT

On January 6, 2026, we purchased the fee interest under one of our ground leases at Bethesda Row for $2.5 million.

On February 5, 2026, we sold a residential building at our Santana Row property and our Courthouse Center property for sales prices totaling $158.5 million.

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FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A		COLUMN B	COLUMN C				COLUMN D		COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
Descriptions		Encumbrance	Initial cost to company				Cost Capitalized Subsequent to Acquisition		Gross amount at which carried at close of period						Accumulated Depreciation and Amortization		Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Land	Building and Improvements	Land	Building and Improvements		Total
29TH PLACE (Virginia)			$	10,211	$	18,863	$	11,994	$	10,182	$	30,886	$	41,068	$	19,777	1975 - 2001	5/30/2007	(1)
ANDORRA (Pennsylvania)			2,432		12,346		39,127		2,432		51,473		53,905		22,032		1953	1/12/1988	(1)
ANNAPOLIS TOWN CENTER (Maryland)			26,755		150,546		128		26,755		150,674		177,429		1,702		2007-2010	10/10/2025	(1)
ASSEMBLY ROW/ASSEMBLY SQUARE MARKETPLACE (Massachusetts)			93,252		34,196		1,024,008		69,421		1,082,035		1,151,456		227,346		2005, 2012-2023	2005-2013	(1)
AZALEA (California)		54,465	40,219		67,117		1,684		40,219		68,801		109,020		19,557		2014	8/2/2017	(1)
BALA CYNWYD ON CITY AVENUE (Pennsylvania)			3,565		14,466		115,264		3,435		129,860		133,295		30,108		1955/2020/ 2025	9/22/1993	(1)
BARCROFT PLAZA (Virginia)			12,617		29,603		10,128		12,617		39,731		52,348		13,536		1963, 1972, 1990, & 2000	1/13/16 & 11/7/16	(1)
BARRACKS ROAD (Virginia)			4,363		16,459		57,744		4,356		74,210		78,566		55,698		1958	12/31/1985	(1)
BELL GARDENS (California)		10,864	24,406		85,947		10,094		24,406		96,041		120,447		36,107		1990, 2003, 2006	8/2/17 & 11/29/18	(1)
BETHESDA ROW (Maryland)		199,735	46,579		35,406		193,640		44,382		231,243		275,625		126,029		1945-2008	12/31/93, 6/2/97, 1/20/06, 9/25/08, 9/30/08, & 12/27/10	(1)
BIRCH & BROAD (Virginia)			1,798		1,270		23,197		1,819		24,446		26,265		13,995		1960/1962	9/30/67 & 10/05/72	(1)
BRICK PLAZA (New Jersey)			—		24,715		80,531		4,385		100,861		105,246		71,923		1958	12/28/1989	(1)
BROOK 35 (New Jersey)		11,428	7,128		38,355		9,365		7,128		47,720		54,848		16,986		1986/2004	1/1/2014	(1)
CAMELBACK COLONNADE (Arizona)			52,658		126,646		6,134		52,658		132,780		185,438		20,592		1977/2019	6/14/2021	(1)
CAMPUS PLAZA (Massachusetts)			16,710		13,412		1,989		16,710		15,401		32,111		5,397		1970	1/13/2016	(1)
CHELSEA COMMONS (Massachusetts)		3,002	8,689		19,466		12,918		8,669		32,404		41,073		13,331		1962/1969/ 2008	8/25/06, 1/30/07, & 7/16/08	(1)
CHESTERBROOK (Virginia)			13,042		24,725		13,479		13,042		38,204		51,246		5,570		1967/1991	4/30/21	(1)

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FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A	COLUMN B	COLUMN C		COLUMN D	COLUMN E			COLUMN F	COLUMN G	COLUMN H	COLUMN I
Descriptions	Encumbrance	Initial cost to company		Cost Capitalized Subsequent to Acquisition	Gross amount at which carried at close of period			Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Descriptions	Encumbrance	Land	Building and Improvements	Cost Capitalized Subsequent to Acquisition	Land	Building and Improvements	Total	Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
COCOWALK (Florida)		32,513	71,536	102,416	48,943	157,522	206,465	40,751	1990/1994, 1922-1973, 2018-2021	5/4/15, 7/1/15, 12/16/15, 7/26/16, 6/30/17, & 8/10/17	(1)
COLORADO BLVD (California)		2,415	3,964	7,723	2,415	11,687	14,102	10,866	1905-1988	8/14/98	(1)
CONGRESSIONAL PLAZA (Maryland)		2,793	7,424	99,450	2,793	106,874	109,667	73,768	1965/2003/ 2016	4/1/1965	(1)
COURTHOUSE CENTER (Maryland)		1,750	1,869	4,024	1,750	5,893	7,643	4,504	1975	12/17/1997	(1)
CROSSROADS (Illinois)		4,635	11,611	21,881	4,635	33,492	38,127	27,419	1959	7/19/1993	(1)
CROW CANYON COMMONS (California)		27,245	54,575	12,624	27,245	67,199	94,444	39,542	Late 1970's/ 1998/2006	12/29/05 & 2/28/07	(1)
DARIEN COMMONS (Connecticut)		30,368	19,523	104,899	30,368	124,422	154,790	15,521	1920-2009/2022-2023	4/3/13 & 7/20/18	(1)
DEDHAM PLAZA (Massachusetts)		16,354	13,413	24,638	16,354	38,051	54,405	23,901	1959	12/31/93, 12/14/16, 1/29/19, & 3/12/19	(1)
DEL MAR VILLAGE (Florida)		15,624	41,712	19,151	15,587	60,900	76,487	36,090	1982/1994/ 2007	5/30/08, 7/11/08, & 10/14/14	(1)
DEL MONTE SHOPPING CENTER (California)		39,612	89,949	723	39,612	90,672	130,284	3,905	1968, 1976, 1984, 2004	2/25/2025	(1)
EAST BAY BRIDGE (California)		29,069	138,035	12,156	29,069	150,191	179,260	64,493	1994-2001, 2011/2012	12/21/2012	(1)
ELLISBURG (New Jersey)		4,028	11,309	24,630	4,013	35,954	39,967	25,951	1959	10/16/1992	(1)
ESCONDIDO PROMENADE (California)		29,281	105,736	791	29,281	106,527	135,808	15,508	1987	5/26/2023	(1)
FAIRFAX JUNCTION (Virgina)		16,768	23,825	6,246	16,768	30,071	46,839	7,960	1981/1986/ 2000	2/8/19 & 1/10/20	(1)
FEDERAL PLAZA (Maryland)		10,216	17,895	47,132	10,216	65,027	75,243	57,602	1970	6/29/1989	(1)
FINLEY SQUARE (Illinois)		9,252	9,544	23,237	9,252	32,781	42,033	22,553	1974	4/27/1995	(1)
FLOURTOWN (Pennsylvania)		1,345	3,943	14,713	1,507	18,494	20,001	9,477	1957	4/25/1980	(1)
FOURTH STREET (California)		13,978	9,909	4,226	13,978	14,135	28,113	5,908	1948,1975	5/19/2017	(1)

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FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A	COLUMN B	COLUMN C		COLUMN D	COLUMN E			COLUMN F	COLUMN G	COLUMN H	COLUMN I
Descriptions	Encumbrance	Initial cost to company		Cost Capitalized Subsequent to Acquisition	Gross amount at which carried at close of period			Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Descriptions	Encumbrance	Land	Building and Improvements	Cost Capitalized Subsequent to Acquisition	Land	Building and Improvements	Total	Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
FREEDOM PLAZA (California)		—	3,255	40,780	—	44,035	44,035	6,809	2018-2020	6/15/2018	(1)
FRESH MEADOWS (New York)		24,625	25,255	49,772	24,633	75,019	99,652	55,923	1946-1949	12/5/1997	(1)
FRIENDSHIP CENTER (District of Columbia)		12,696	20,803	6,341	12,696	27,144	39,840	15,132	1998	9/21/2001	(1)
GAITHERSBURG SQUARE (Maryland)		7,701	5,271	26,745	5,973	33,744	39,717	24,032	1966	4/22/1993	(1)
GARDEN MARKET (Illinois)		2,677	4,829	9,909	2,677	14,738	17,415	11,584	1958	7/28/1994	(1)
GEORGETOWNE SHOPPING CENTER (New York)		32,202	49,586	6,447	32,202	56,033	88,235	11,813	1969/2006/ 2015	11/15/19	(1)
GOVERNOR PLAZA (Maryland)		2,068	4,905	28,793	2,068	33,698	35,766	25,388	1963	10/1/1985	(1)
GRAHAM PARK PLAZA (Virginia)		642	7,629	20,154	653	27,772	28,425	21,031	1971	7/21/1983	(1)
GRATIOT PLAZA (Michigan)		525	1,601	19,588	525	21,189	21,714	17,254	1964	3/29/1973	(1)
GREENLAWN PLAZA (New York)		10,590	20,869	3,411	10,946	23,924	34,870	8,194	1975/2004	1/13/2016	(1)
GREENWICH AVENUE (Connecticut)		7,484	5,445	10,819	7,484	16,264	23,748	8,836	1968	4/12/1995	(1)
GROSSMONT CENTER (California)		125,434	50,311	3,659	125,434	53,970	179,404	13,197	1961, 1963, 1982-1983, 2002	6/1/2021	(1)
HASTINGS RANCH PLAZA (California)		2,257	22,393	1,347	2,257	23,740	25,997	7,080	1958, 1984, 2006, 2007	2/1/2017	(1)
HAUPPAUGE (New York)		8,791	15,262	18,688	8,518	34,223	42,741	19,752	1963	8/6/1998	(1)
HOBOKEN (New Jersey)	73,913	56,866	167,835	11,414	56,872	179,243	236,115	32,680	1887-2006	9/18/19, 11/26/19, 12/19/19, 2/12/20, & 11/18/22	(1)
HUNTINGTON (New York)		12,194	16,008	85,745	12,294	101,653	113,947	26,158	1962/2022-2024	12/12/88, 10/26/07, & 11/24/15	(1)
HUNTINGTON SQUARE (New York)		12,023	33,509	6,378	12,534	39,376	51,910	10,227	1980/2004- 2007/2019	8/16/2010 & 1/31/2023	(1)
IDYLWOOD PLAZA (Virginia)		4,308	10,026	5,832	4,308	15,858	20,166	11,587	1991	4/15/1994	(1)
KINGSTOWNE TOWNE CENTER (Virginia)		72,234	137,466	2,721	72,234	140,187	212,421	18,379	1996/2001/ 2006	4/20/22 & 7/27/22	(1)
LANCASTER (Pennsylvania)		—	2,103	6,602	432	8,273	8,705	6,949	1958	4/24/1980	(1)

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FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A	COLUMN B	COLUMN C		COLUMN D	COLUMN E			COLUMN F	COLUMN G	COLUMN H	COLUMN I
Descriptions	Encumbrance	Initial cost to company		Cost Capitalized Subsequent to Acquisition	Gross amount at which carried at close of period			Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Descriptions	Encumbrance	Land	Building and Improvements	Cost Capitalized Subsequent to Acquisition	Land	Building and Improvements	Total	Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
LANGHORNE SQUARE (Pennsylvania)		720	2,974	21,091	720	24,065	24,785	19,774	1966	1/31/1985	(1)
LAUREL (Maryland)		7,458	22,525	32,386	7,551	54,818	62,369	48,584	1956	8/15/1986	(1)
LAWRENCE PARK (Pennsylvania)		6,150	8,491	51,692	6,161	60,172	66,333	30,704	1972	7/23/1980 & 4/3/17	(1)
LINDEN SQUARE (Massachusetts)		79,382	19,247	61,693	79,346	80,976	160,322	42,199	1960-2008	8/24/2006	(1)
MELVILLE MALL (New York)		35,622	32,882	40,409	35,522	73,391	108,913	33,580	1974	10/16/2006	(1)
MERCER ON ONE (New Jersey)		19,152	44,384	63,215	19,102	107,649	126,751	51,570	1975	10/14/03, 1/31/17, & 10/12/2023	(1)
MONTROSE CROSSING (Maryland)		48,624	91,819	31,660	48,624	123,479	172,103	56,463	1960s, 1970s, 1996 & 2011	12/27/11 & 12/19/13	(1)
MOUNT VERNON/SOUTH VALLEY/7770 RICHMOND HWY. (Virginia)		15,769	33,501	50,112	15,851	83,531	99,382	56,892	1966/1972/ 1987/2001	3/31/03, 3/21/03, 1/27/06 & 1/4/21	(1)
NORTH DARTMOUTH (Massachusetts)		9,366	—	(7,422)	1,941	3	1,944	2	2004	8/24/2006	(1)
NORTHEAST (Pennsylvania)		938	8,779	26,660	939	35,438	36,377	25,884	1959	8/30/1983	(1)
OLD KEENE MILL (Virginia)		638	998	18,575	638	19,573	20,211	9,356	1968	6/15/1976	(1)
OLD TOWN CENTER (California)		3,420	2,765	38,276	3,420	41,041	44,461	28,992	1962, 1997-1998	10/22/1997	(1)
OLIVO AT MISSION HILLS (California)		15,048	46,732	21,127	15,048	67,859	82,907	14,545	2017-2018	8/2/2017	(1)
PERRING PLAZA (Maryland)		2,800	6,461	34,168	2,800	40,629	43,429	25,185	1963	10/1/1985	(1)
PIKE & ROSE (Maryland)		27,102	10,335	762,658	32,890	767,205	800,095	142,373	1963, 2012-2025	5/18/82, 10/26/07, & 7/31/12	(1)
PIKE 7 PLAZA (Virginia)		14,970	22,799	19,278	14,914	42,133	57,047	25,930	1968	3/31/97 & 7/8/15	(1)
PINOLE VISTA CROSSING (California)		25,218	33,286	(12)	25,218	33,274	58,492	2,472	1995, 2015	7/31/2024	(1)
PLAZA DEL MERCADO (Maryland)		10,305	21,553	15,363	10,305	36,916	47,221	14,253	1969	1/13/2016	(1)
PLAZA DEL SOL (California)		5,605	12,331	31	5,605	12,362	17,967	3,342	2009	8/2/2017	(1)

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Table of Contents


FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A	COLUMN B	COLUMN C		COLUMN D	COLUMN E			COLUMN F	COLUMN G	COLUMN H	COLUMN I
Descriptions	Encumbrance	Initial cost to company		Cost Capitalized Subsequent to Acquisition	Gross amount at which carried at close of period			Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Descriptions	Encumbrance	Land	Building and Improvements	Cost Capitalized Subsequent to Acquisition	Land	Building and Improvements	Total	Accumulated Depreciation and Amortization	Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
PLAZA EL SEGUNDO/THE POINT (California)	124,891	62,127	153,556	95,586	64,463	246,806	311,269	100,720	2006/2007/ 2016	12/30/11, 6/14/13, 7/26/13, & 12/27/13	(1)
PROVIDENCE PLACE (formerly Pan Am) (Virginia)		8,694	12,929	16,232	8,695	29,160	37,855	19,947	1979	2/5/1993	(1)
QUEEN ANNE PLAZA (Massachusetts)		3,319	8,457	8,127	3,319	16,584	19,903	13,353	1967	12/23/1994	(1)
QUINCE ORCHARD (Maryland)		3,197	7,949	30,656	2,992	38,810	41,802	30,992	1975	4/22/1993	(1)
RIVERPOINT CENTER (Illinois)		15,422	104,572	3,086	15,422	107,658	123,080	29,406	1989, 2012	3/31/2017	(1)
SAN ANTONIO CENTER (California)		26,400	18,462	7,556	26,400	26,018	52,418	9,608	1958, 1964-1965, 1974-1975, 1995-1997	1/9/2015, 9/13/19	(1)
SANTANA ROW (California)		65,930	7,502	1,315,096	56,840	1,331,688	1,388,528	364,278	1999-2006, 2009, 2014, 2016-2025	3/5/97, 7/13/12, 9/6/12, 4/30/13 & 9/23/13	(1)
SHOPS AT PEMBROKE GARDENS (Florida)		39,506	141,356	9,884	39,506	151,240	190,746	18,812	2007	7/27/2022	(1)
SYLMAR TOWNE CENTER (California)	—	18,522	24,637	5,827	18,522	30,464	48,986	7,371	1973	8/2/2017	(1)
THE AVENUE AT WHITE MARSH (Maryland)		20,682	72,432	45,091	20,685	117,520	138,205	63,192	1997	3/8/2007	(1)
THE GROVE AT SHREWSBURY (New Jersey)	43,461	18,016	103,115	17,490	18,021	120,600	138,621	43,997	1988/1993/ 2007	1/1/2014 & 10/6/14	(1)
THE SHOPPES AT NOTTINGHAM SQUARE (Maryland)		4,441	12,849	2,366	4,441	15,215	19,656	8,861	2005 - 2006	3/8/2007	(1)
THE SHOPS AT HILTON VILLAGE (Arizona)		—	85,431	2,833	—	88,264	88,264	12,205	1982/1989	6/14/21 & 7/18/22	(1)
TOWER SHOPPING CENTER (Virginia)		7,170	10,518	12,513	7,292	22,909	30,201	13,394	1953-1960	8/24/1998	(1)
TOWER SHOPS (Florida)		29,940	43,390	33,048	29,962	76,416	106,378	35,535	1989, 2017	1/19/11 & 6/13/14	(1)
TOWN CENTER CROSSING/TOWN CENTER PLAZA (Kansas)		31,361	232,083	1,440	31,361	233,523	264,884	4,545	1995, 2005-2008, 2014, 2015	7/1/2025	(1)

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Table of Contents


FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP
SCHEDULE III
SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2025
(Dollars in thousands)


COLUMN A	COLUMN B		COLUMN C				COLUMN D		COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
Descriptions	Encumbrance		Initial cost to company				Cost Capitalized Subsequent to Acquisition		Gross amount at which carried at close of period						Accumulated Depreciation and Amortization		Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
Descriptions	Encumbrance		Land		Building and Improvements		Cost Capitalized Subsequent to Acquisition		Land		Building and Improvements		Total		Accumulated Depreciation and Amortization		Date of Construction	Date Acquired	Life on which depreciation in latest income statements is computed
TROY HILLS (New Jersey)			3,126		5,193		29,144		5,865		31,598		37,463		22,720		1966	7/23/1980	(1)
TWINBROOKE CENTRE (Virginia)			16,484		18,898		8,369		16,484		27,267		43,751		3,336		1977	9/2/2021	(1)
TYSON'S STATION (Virginia)			388		453		5,977		493		6,325		6,818		4,579		1954	1/17/1978	(1)
VILLAGE AT SHIRLINGTON (Virginia)			9,761		14,808		53,893		6,323		72,139		78,462		43,234		1940, 2006-2009	12/21/1995	(1)
VILLAGE POINTE (Nebraska)			23,250		121,993		3		23,250		121,996		145,246		472		2004	11/24/2025	(1)
VIRGINIA GATEWAY (Virginia)			93,767		114,609		2,609		93,767		117,218		210,985		7,475		1999, 2006-2008, 2013-2016	5/31/2024	(1)
WESTGATE CENTER (California)			6,319		107,284		50,830		6,319		158,114		164,433		92,926		1960-1966	3/31/2004	(1)
WESTPOST (Virginia)			—		2,955		117,907		—		120,862		120,862		72,502		1999 - 2002	1998 & 11/22/10	(1)
WHITE MARSH PLAZA (Maryland)			3,478		21,413		2,294		3,514		23,671		27,185		14,075		1987	3/8/2007	(1)
WHITE MARSH OTHER (Maryland)			23,703		—		125		23,703		125		23,828		59		1985	3/8/2007	(1)
WILDWOOD (Maryland)			9,111		1,061		18,221		9,111		19,282		28,393		12,440		1958	5/5/1969	(1)
WILLOW GROVE (Pennsylvania)			1,499		6,643		46,993		1,499		53,636		55,135		25,550		1953	11/20/1984	(1)
WILLOW LAWN (Virginia)			3,192		7,723		98,231		8,211		100,935		109,146		76,657		1957	12/5/1983	(1)
WYNNEWOOD (Pennsylvania)			8,055		13,759		26,589		8,055		40,348		48,403		30,130		1948	10/29/1996	(1)

TOTALS	$	521,759	$	1,932,134	$	3,851,563	$	5,856,205	$	1,922,252	$	9,717,650	$	11,639,902	$	3,351,881

(1)Depreciation of building and improvements is calculated based on useful lives ranging from the life of the lease to 50 years.

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Table of Contents

FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP

SCHEDULE III

SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED

Three Years Ended December 31, 2025

Reconciliation of Total Cost

(in thousands)


Balance, December 31, 2022	$	10,104,499
Additions during period
Improvements	287,286
Reconsolidation of VIE	135,017
Acquisitions	74,723
Deduction during period—dispositions and retirements of property	(55,338)




Balance, December 31, 2023	10,546,187
Additions during period
Acquisitions	266,877
Improvements	249,043


Deduction during period—dispositions and retirements of property	(158,394)


Balance, December 31, 2024	10,903,713

Additions during period
Acquisitions	715,549
Improvements	300,724



Deduction during period
Dispositions and retirements of property	(272,659)
Impairment of property	(7,425)

Balance, December 31, 2025 (1)	$	11,639,902

(1)For Federal tax purposes, the aggregate cost basis is approximately $10.2 billion as of December 31, 2025.

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Table of Contents

FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP

SCHEDULE III

SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED

Three Years Ended December 31, 2025

Reconciliation of Accumulated Depreciation and Amortization

(In thousands)


Balance, December 31, 2022	$	2,715,817
Additions during period
Depreciation and amortization expense	282,896
Reconsolidation of VIE	2,869

Deductions during period -dispositions and retirements of property	(38,063)

Balance, December 31, 2023	2,963,519

Additions during period-depreciation and amortization expense	302,635




Deductions during period -dispositions and retirements of property	(113,355)

Balance, December 31, 2024	3,152,799
Depreciation and amortization expense	319,819


Deductions during period -dispositions and retirements of property	(120,737)



Balance, December 31, 2025	$	3,351,881

F-48

Table of Contents

FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP

SCHEDULE IV

MORTGAGE LOANS ON REAL ESTATE

Year Ended December 31, 2025

(Dollars in thousands)


Column A	Column B	Column C	Column D	Column E			Column F		Column G		Column H
Description of Lien	Interest Rate	Maturity Date	Periodic Payment Terms	Prior Liens			Face Amount of Mortgages		Carrying Amount of Mortgages(1)		Principal Amount of Loans Subject to delinquent Principal or Interest


Second mortgage on a retail shopping center in Rockville, MD (2)	11.5%	February 2026	Interest only monthly; balloon payment due at maturity	$	58,750	(3)	$	5,075	$	4,591	$	—
Second mortgage on a retail shopping center in Rockville, MD (2)	10.75%	February 2026	Interest only monthly; balloon payment due at maturity	58,750		(3)	4,500		4,500		—
Second mortgage on a retail shopping center in Baltimore, MD	7.0%	October 2031	Principal and interest monthly; balloon payment due at maturity	4,990		(4)	399		—		—
				$	63,740		$	9,974	$	9,091	$	—

(1)The amounts are net of any expected losses in accordance with ASU 2016-13. See note 2 to the consolidated financial statements. For Federal tax purposes, the aggregate tax basis is approximately $10.0 million as of December 31, 2025.

(2)The borrower on the noted mortgage notes receivable is in default. However, we believe the fair value of the property supports the $9.1 million carrying value of our notes.

(3)These mortgages are both subordinate to a first mortgage of $58.8 million in total. We do not hold the first mortgage loan on this property. Accordingly, the amount of the prior lien at December 31, 2025 is estimated.

(4)This mortgage is subordinate to a first mortgage of $5.0 million. We do not hold the first mortgage loan on this property. Accordingly, the amount of the prior lien at December 31, 2025 is estimated.

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Table of Contents

FEDERAL REALTY INVESTMENT TRUST AND FEDERAL REALTY OP LP

SCHEDULE IV

MORTGAGE LOANS ON REAL ESTATE - CONTINUED

Three Years Ended December 31, 2025

Reconciliation of Carrying Amount

(In thousands)



Balance, December 31, 2022	$	9,456





Deductions during period:
Valuation adjustments	(213)
Collection and satisfaction of loans	(47)

Balance, December 31, 2023	9,196




Deductions during period:
Collection and satisfaction of loans	(50)
Valuation adjustments	(2)
Balance, December 31, 2024	9,144


Deductions during period:


Collection and satisfaction of loans	(54)
Valuation adjustments	1
Balance, December 31, 2025	$	9,091

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Previous: Item 16. FORM 10-K SUMMARY