frt-20220630

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO THE SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-07533 (Federal Realty Investment Trust)

Commission file number: 333-262016-01 (Federal Realty OP LP)

FEDERAL REALTY INVESTMENT TRUST

FEDERAL REALTY OP LP

(Exact Name of Registrant as Specified in its Charter)

Maryland (Federal Realty Investment Trust)

87-3916363

Delaware (Federal Realty OP LP)

52-0782497

(State of Organization)

(IRS Employer Identification No.)

909 Rose Avenue, Suite 200, North Bethesda, Maryland 20852

(Address of Principal Executive Offices) (Zip Code)

(301) 998-8100

(Registrant’s Telephone Number, Including Area Code)

Federal Realty Investment Trust


Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Shares of Beneficial Interest	FRT	New York Stock Exchange
$.01 par value per share, with associated Common Share Purchase Rights

Depositary Shares, each representing 1/1000 of a share of	FRT-C	New York Stock Exchange
5.00% Series C Cumulative Redeemable Preferred Stock, $.01 par value per share

Federal Realty OP LP


Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
None	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Federal Realty Investment Trust ☒ Yes ☐ No Federal Realty OP LP ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Federal Realty Investment Trust ☒ Yes ☐ No Federal Realty OP LP ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.:

Federal Realty Investment Trust

Federal Realty OP LP

Large Accelerated Filer

☒

Accelerated filer

☐

Large Accelerated Filer

☒

Accelerated filer

☐

Non-Accelerated Filer

☐

Smaller reporting company

☐

Non-Accelerated Filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Emerging growth company

☐

If an emerging growth company, indicate by checkmark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Federal Realty Investment Trust ☐ Yes ☐ No Federal Realty OP LP ☐ Yes ☐ No

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Federal Realty Investment Trust ☐ Yes ☒ No Federal Realty OP LP ☐ Yes ☒ No

The number of registrant’s common shares outstanding on August 1, 2022 was 80,908,184.

Table of Contents

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended June 30, 2022, of Federal Realty Investment Trust and Federal Realty OP, LP. Unless stated otherwise or the context otherwise requires, references to "Federal Realty Investment Trust," the "Parent Company" or the "Trust" mean Federal Realty Investment Trust; and references to "Federal Realty OP LP" or the "Operating Partnership" mean Federal Realty OP LP. The term "the Company," "we," "us," and "our" refer to the Parent Company and its business and operations conducted through its directly and indirectly owned subsidiaries, including the Operating Partnership. References to "shares" and "shareholders" refer to the shares and shareholders of the Parent Company and not the limited partnership interests for limited partners of the Operating Partnership.

The Parent Company is a real estate investment trust ("REIT") that owns 100% of the limited liability company interests of, is the sole member of, and exercises exclusive control over Federal Realty GP LLC (the "General Partner"), which is the sole general partner of the Operating Partnership. As of June 30, 2022, the Parent Company owned 100% of the outstanding partnership units (the "OP Units") in the Operating Partnership.

The Company believes combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report provides the following benefits:

•Enhances investors' understanding of the Parent Company and the Operating Partnership by enabling investors to view the businesses as a whole in the same manner as management views and operates the business;

•Eliminates duplicate disclosure and provides a more streamlined and readable presentation; and

•Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Management operates the Parent Company and the Operating Partnership as one business. Since the Operating Partnership is managed by the Parent Company, and the Parent Company conducts substantially all of its operations through the Operating Partnership, the management of the Parent Company consists of the same individuals as the management of the Operating Partnership.

We believe it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its direct and indirect interest in the Operating Partnership. As a result, the Parent Company does not conduct business itself other than issuing public equity from time to time. The Parent Company is not expected to incur any material indebtedness. The Operating Partnership holds substantially all of our assets and retains the ownership interests in the Company's joint ventures. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for OP Units, the Operating Partnership generates all capital required by the Company’s business. Sources of this capital include the Operating Partnership’s operations, its direct or indirect incurrence of indebtedness, and the issuance of partnership units.

Stockholders' equity, partner capital, and non-controlling interests are the primary areas of difference between the unaudited Condensed Consolidated Financial Statements of the Parent Company and those of the Operating Partnership. The Operating Partnership’s capital currently includes OP Units owned by the Parent, and may in the future include OP Units owned by third parties. OP Units owned by third parties, if any, are accounted for in capital in the Operating Partnership’s financial statements and in non-controlling interests in the Parent Company’s financial statements.

The Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have assets other than its investment in the Operating Partnership. Therefore, while stockholders’ equity and partners' capital differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements.

In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections in this report that separately discuss the Parent Company and the Operating Partnership, including separate financial statements (but combined footnotes), separate controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company.

Table of Contents

FEDERAL REALTY INVESTMENT TRUST

FEDERAL REALTY OP LP

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED JUNE 30, 2022

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3

Federal Realty Investment Trust
	Consolidated Balance Sheets (unaudited) as of June 30, 2022 and December 31, 2021	3
	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2022 and 2021	4
	Consolidated Statements of Shareholders' Equity (unaudited) for the three and six months ended June 30, 2022 and 2021	5
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2022 and 2021	7

Federal Realty OP LP
	Consolidated Balance Sheets (unaudited) as of June 30, 2022 and December 31, 2021	8
	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2022 and 2021	9
	Consolidated Statements of Capital (unaudited) for the three and six months ended June 30, 2022 and 2021	10
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2022 and 2021	12

Federal Realty Investment Trust and Federal Realty OP LP
	Notes to Consolidated Financial Statements (unaudited)	13

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	36

PART II. OTHER INFORMATION		37
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	37

SIGNATURES		34

Table of Contents

Federal Realty Investment Trust

Consolidated Balance Sheets


	June 30,		December 31,
	2022		2021
	(In thousands, except share and per share data)
	(Unaudited)
ASSETS
Real estate, at cost
Operating (including $2,219,568 and $2,207,648 of consolidated variable interest entities, respectively)	$	9,076,274	$	8,814,791
Construction-in-progress (including $24,865 and $18,752 of consolidated variable interest entities, respectively)	630,287		607,271

	9,706,561		9,422,062
Less accumulated depreciation and amortization (including $418,633 and $389,950 of consolidated variable interest entities, respectively)	(2,648,474)		(2,531,095)
Net real estate	7,058,087		6,890,967
Cash and cash equivalents	176,559		162,132
Accounts and notes receivable, net	187,370		169,007
Mortgage notes receivable, net	9,499		9,543
Investment in partnerships	13,515		13,027
Operating lease right of use assets	89,613		90,743
Finance lease right of use assets	49,190		49,832
Prepaid expenses and other assets	226,608		237,069

TOTAL ASSETS	$	7,810,441	$	7,622,320
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Mortgages payable, net (including $317,619 and $335,301 of consolidated variable interest entities, respectively)	$	321,975	$	339,993

Notes payable, net	301,480		301,466
Senior notes and debentures, net	3,406,895		3,406,088
Accounts payable and accrued expenses	226,660		235,168
Dividends payable	87,397		86,538
Security deposits payable	27,232		25,331
Operating lease liabilities	71,827		72,661
Finance lease liabilities	72,019		72,032
Other liabilities and deferred credits	209,217		206,187
Total liabilities	4,724,702		4,745,464
Commitments and contingencies (Note 6)
Redeemable noncontrolling interests	209,312		213,708
Shareholders’ equity
Preferred shares, authorized 15,000,000 shares, $.01 par:
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding	150,000		150,000
5.417% Series 1 Cumulative Convertible Preferred Shares, (stated at liquidation preference $25 per share), 392,878 and 399,896 shares issued and outstanding, respectively	9,822		9,997
Common shares of beneficial interest, $.01 par, 100,000,000 shares authorized, 80,896,804 and 78,603,305 shares issued and outstanding, respectively	813		790
Additional paid-in capital	3,758,161		3,488,794
Accumulated dividends in excess of net income	(1,126,463)		(1,066,932)
Accumulated other comprehensive income (loss)	3,550		(2,047)
Total shareholders’ equity of the Trust	2,795,883		2,580,602
Noncontrolling interests	80,544		82,546
Total shareholders’ equity	2,876,427		2,663,148
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	7,810,441	$	7,622,320

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

Table of Contents

Federal Realty Investment Trust

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per share data)
REVENUE
Rental income	$	263,830	$	230,795	$	520,337	$	447,930

Mortgage interest income	269		830		533		1,856
Total revenue	264,099		231,625		520,870		449,786
EXPENSES
Rental expenses	51,169		42,918		107,380		92,156
Real estate taxes	31,265		29,323		61,825		58,743
General and administrative	13,604		12,846		25,946		23,104
Depreciation and amortization	74,461		67,675		146,135		131,549
Total operating expenses	170,499		152,762		341,286		305,552


Gain on sale of real estate and change in control of interest	—		—		—		17,428

OPERATING INCOME	93,600		78,863		179,584		161,662

OTHER INCOME/(EXPENSE)
Other interest income	133		250		253		613
Interest expense	(32,074)		(31,177)		(63,647)		(63,262)


Income (loss) from partnerships	2,808		123		3,005		(1,215)


NET INCOME	64,467		48,059		119,195		97,798
Net income attributable to noncontrolling interests	(2,791)		(1,855)		(5,535)		(3,358)
NET INCOME ATTRIBUTABLE TO THE TRUST	61,676		46,204		113,660		94,440
Dividends on preferred shares	(2,008)		(2,011)		(4,018)		(4,021)
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS	$	59,668	$	44,193	$	109,642	$	90,419

EARNINGS PER COMMON SHARE, BASIC:




Net income available for common shareholders	$	0.75	$	0.57	$	1.38	$	1.16
Weighted average number of common shares	79,202		77,474		78,826		77,160
EARNINGS PER COMMON SHARE, DILUTED:




Net income available for common shareholders	$	0.75	$	0.57	$	1.38	$	1.16
Weighted average number of common shares	79,202		77,505		78,855		77,162

COMPREHENSIVE INCOME	$	66,689	$	47,002	$	125,333	$	100,435

COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST	$	63,701	$	45,266	$	119,257	$	96,846

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

Table of Contents

Federal Realty Investment Trust

Consolidated Statements of Shareholders’ Equity

For the Three and Six Months Ended June 30, 2022

(Unaudited)


	Shareholders’ Equity of the Trust
	Preferred Shares			Common Shares			Additional Paid-in Capital		Accumulated Dividends in Excess of Net Income		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
	(In thousands, except share data)
BALANCE AT DECEMBER 31, 2021	405,896	$	159,997	78,603,305	$	790	$	3,488,794	$	(1,066,932)	$	(2,047)	$	82,546	$	2,663,148

Net income, excluding $3,527 attributable to redeemable noncontrolling interests	—	—		—	—		—		113,660		—		2,008		115,668
Other comprehensive income - change in fair value of interest rate swaps, excluding $541 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		5,597		—		5,597
Dividends declared to common shareholders ($2.14 per share)	—	—		—	—		—		(169,173)		—		—		(169,173)
Dividends declared to preferred shareholders	—	—		—	—		—		(4,018)		—		—		(4,018)
Distributions declared to noncontrolling interests, excluding $4,138 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(2,625)		(2,625)
Common shares issued, net	—	—		2,203,697	22		259,430		—		—		—		259,452


Shares issued under dividend reinvestment plan	—	—		8,000	—		1,011		—		—		—		1,011
Share-based compensation expense, net of forfeitures	—	—		104,105	1		7,678		—		—		—		7,679
Shares withheld for employee taxes	—	—		(38,576)	—		(4,638)		—		—		—		(4,638)
Conversion of preferred shares	(7,018)	(175)		1,675	—		175		—		—		—		—
Conversion of downREIT OP units	—	—		14,598	—		1,385		—		—		(1,385)		—


Adjustment to redeemable noncontrolling interests	—	—		—	—		4,326		—		—		—		4,326
BALANCE AT JUNE 30, 2022	398,878	$	159,822	80,896,804	$	813	$	3,758,161	$	(1,126,463)	$	3,550	$	80,544	$	2,876,427

BALANCE AT MARCH 31, 2022	405,896	$	159,997	79,417,472	$	799	$	3,572,591	$	(1,101,154)	$	1,525	$	80,819	$	2,714,577

Net income, excluding $1,792 attributable to redeemable noncontrolling interests	—	—		—	—		—		61,676		—		999		62,675
Other comprehensive income - change in fair value of interest rate swaps, excluding $197 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		2,025		—		2,025
Dividends declared to common shareholders ($1.07 per share)	—	—		—	—		—		(84,977)		—		—		(84,977)
Dividends declared to preferred shareholders	—	—		—	—		—		(2,008)		—		—		(2,008)
Distributions declared to noncontrolling interests, excluding $2,394 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(866)		(866)
Common shares issued, net	—	—		1,473,928	14		176,689		—		—		—		176,703


Shares issued under dividend reinvestment plan	—	—		4,230	—		509		—		—		—		509
Share-based compensation expense, net of forfeitures	—	—		(4,786)	—		3,500		—		—		—		3,500
Shares withheld for employee taxes	—	—		(306)	—		(37)		—		—		—		(37)
Conversion of preferred shares	(7,018)	(175)		1,675	—		175		—		—		—		—
Conversion of downREIT OP units	—			4,591	—		408		—		—		(408)		—


Adjustment to redeemable noncontrolling interests	—	—		—	—		4,326		—		—		—		4,326
BALANCE AT JUNE 30, 2022	398,878	$	159,822	80,896,804	$	813	$	3,758,161	$	(1,126,463)	$	3,550	$	80,544	$	2,876,427

Table of Contents

Federal Realty Investment Trust

Consolidated Statements of Shareholders’ Equity

For the Three and Six Months Ended June 30, 2021

(Unaudited)


	Shareholders’ Equity of the Trust
	Preferred Shares			Common Shares			Additional Paid-in Capital		Accumulated Dividends in Excess of Net Income		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
	(In thousands, except share data)
BALANCE AT DECEMBER 31, 2020	405,896	$	159,997	76,727,394	$	771	$	3,297,305	$	(988,272)	$	(5,644)	$	84,590	$	2,548,747

Net income, excluding $1,877 attributable to redeemable noncontrolling interests	—	—		—	—		—		94,440		—		1,481		95,921
Other comprehensive income - change in fair value of interest rate swaps, excluding $231 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		2,406		—		2,406
Dividends declared to common shareholders ($2.12 per share)	—	—		—	—		—		(164,788)		—		—		(164,788)
Dividends declared to preferred shareholders	—	—		—	—		—		(4,021)		—		—		(4,021)
Distributions declared to noncontrolling interests, excluding $1,735 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(1,727)		(1,727)
Common shares issued, net	—	—		847,509	9		87,124		—		—		—		87,133


Shares issued under dividend reinvestment plan	—	—		11,516	—		1,019		—		—		—		1,019
Share-based compensation expense, net of forfeitures	—	—		152,185	2		7,505		—		—		—		7,507
Shares withheld for employee taxes	—	—		(27,500)	—		(2,813)		—		—		—		(2,813)
Conversion and redemption of downREIT OP units	—	—		49,484	—		5,049		—		—		(5,148)		(99)
Contributions from noncontrolling interests, excluding $74,530 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		6,554		6,554


BALANCE AT JUNE 30, 2021	405,896	$	159,997	77,760,588	$	782	$	3,395,189	$	(1,062,641)	$	(3,238)	$	85,750	$	2,575,839

BALANCE AT MARCH 31, 2021	405,896	$	159,997	77,706,466	$	781	$	3,386,917	$	(1,024,417)	$	(2,300)	$	83,982	$	2,604,960

Net income, excluding $1,069 attributable to redeemable noncontrolling interests	—	—		—	—		—		46,204		—		786		46,990
Other comprehensive loss - change in fair value of interest rate swaps, excluding $119 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		(938)		—		(938)
Dividends declared to common shareholders ($1.06 per share)	—	—		—	—		—		(82,417)		—		—		(82,417)
Dividends declared to preferred shareholders	—	—		—	—		—		(2,011)		—		—		(2,011)
Distributions declared to noncontrolling interests, excluding $1,039 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		(943)		(943)
Common shares issued, net	—	—		16	1		(82)		—		—		—		(81)


Shares issued under dividend reinvestment plan	—	—		5,236	—		474		—		—		—		474
Share-based compensation expense, net of forfeitures	—	—		4,473	—		3,358		—		—		—		3,358
Shares withheld for employee taxes	—	—		(71)	—		(8)		—		—		—		(8)
Conversion and redemption of downREIT OP units	—	—		44,468	—		4,530		—		—		(4,629)		(99)
Contributions from noncontrolling interests, excluding $74,530 attributable to redeemable noncontrolling interests	—	—		—	—		—		—		—		6,554		6,554


BALANCE AT JUNE 30, 2021	405,896	$	159,997	77,760,588	$	782	$	3,395,189	$	(1,062,641)	$	(3,238)	$	85,750	$	2,575,839

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

Table of Contents

Federal Realty Investment Trust

Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
	2022		2021
	(In thousands)
OPERATING ACTIVITIES
Net income	$	119,195	$	97,798
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	146,135		131,549


Gain on sale of real estate and change in control of interest	—		(17,428)



(Income) loss from partnerships	(3,005)		1,215
Other, net	(5,261)		8,316
Changes in assets and liabilities, net of effects of acquisitions and dispositions:

(Increase) decrease in accounts receivable, net	(10,252)		4,696
Decrease in prepaid expenses and other assets	18,115		11,370
(Decrease) increase in accounts payable and accrued expenses	(5,578)		2,142
Increase in security deposits and other liabilities	1,172		7,551
Net cash provided by operating activities	260,521		247,209
INVESTING ACTIVITIES
Acquisition of real estate	(100,022)		(332,574)
Capital expenditures - development and redevelopment	(150,524)		(182,657)
Capital expenditures - other	(44,024)		(34,970)

Proceeds from sale of real estate	874		19,896

Investment in partnerships	(417)		(2,657)
Distribution from partnerships in excess of earnings	3,665		1,131

Leasing costs	(9,629)		(9,265)
Repayment of mortgage and other notes receivable, net	18		31,122
Net cash used in investing activities	(300,059)		(509,974)
FINANCING ACTIVITIES





Repayment of mortgages, finance leases and notes payable	(17,798)		(151,310)
Issuance of common shares, net of costs	259,597		87,286

Dividends paid to common and preferred shareholders	(171,450)		(166,847)
Shares withheld for employee taxes	(4,638)		(2,813)
Contributions from noncontrolling interests	—		104
Distributions to and redemptions of noncontrolling interests	(6,779)		(3,615)

Net cash provided by (used in) financing activities	58,932		(237,195)
Increase (decrease) in cash, cash equivalents and restricted cash	19,394		(499,960)
Cash, cash equivalents, and restricted cash at beginning of year	175,163		816,896
Cash, cash equivalents, and restricted cash at end of period	$	194,557	$	316,936

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

Table of Contents

Federal Realty OP LP

Consolidated Balance Sheets


	June 30,		December 31,
	2022		2021
	(In thousands, except unit data)
	(Unaudited)
ASSETS
Real estate, at cost
Operating (including $2,219,568 and $2,207,648 of consolidated variable interest entities, respectively)	$	9,076,274	$	8,814,791
Construction-in-progress (including $24,865 and $18,752 of consolidated variable interest entities, respectively)	630,287		607,271

	9,706,561		9,422,062
Less accumulated depreciation and amortization (including $418,633 and $389,950 of consolidated variable interest entities, respectively)	(2,648,474)		(2,531,095)
Net real estate	7,058,087		6,890,967
Cash and cash equivalents	176,559		162,132
Accounts and notes receivable, net	187,370		169,007
Mortgage notes receivable, net	9,499		9,543
Investment in partnerships	13,515		13,027
Operating lease right of use assets	89,613		90,743
Finance lease right of use assets	49,190		49,832
Prepaid expenses and other assets	226,608		237,069

TOTAL ASSETS	$	7,810,441	$	7,622,320
LIABILITIES AND CAPITAL
Liabilities
Mortgages payable, net (including $317,619 and $335,301 of consolidated variable interest entities, respectively)	$	321,975	$	339,993

Notes payable, net	301,480		301,466
Senior notes and debentures, net	3,406,895		3,406,088
Accounts payable and accrued expenses	226,660		235,168
Dividends payable	87,397		86,538
Security deposits payable	27,232		25,331
Operating lease liabilities	71,827		72,661
Finance lease liabilities	72,019		72,032
Other liabilities and deferred credits	209,217		206,187
Total liabilities	4,724,702		4,745,464
Commitments and contingencies (Note 6)
Redeemable noncontrolling interests	209,312		213,708
Partner capital



Preferred units, 398,878 and 405,896 units issued and outstanding, respectively	154,788		154,963
Common units, 80,896,804 and 78,603,305 units issued and outstanding, respectively	2,637,545		2,427,686
Accumulated other comprehensive income (loss)	3,550		(2,047)
Total partner capital	2,795,883		2,580,602
Noncontrolling interests in consolidated partnerships	80,544		82,546
Total capital	2,876,427		2,663,148
TOTAL LIABILITIES AND CAPITAL	$	7,810,441	$	7,622,320

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

Table of Contents

Federal Realty OP LP

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In thousands, except per unit data)
REVENUE
Rental income	$	263,830	$	230,795	$	520,337	$	447,930

Mortgage interest income	269		830		533		1,856
Total revenue	264,099		231,625		520,870		449,786
EXPENSES
Rental expenses	51,169		42,918		107,380		92,156
Real estate taxes	31,265		29,323		61,825		58,743
General and administrative	13,604		12,846		25,946		23,104
Depreciation and amortization	74,461		67,675		146,135		131,549
Total operating expenses	170,499		152,762		341,286		305,552