QUARTERLY REPORT PURSUANT TO THE SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Organization) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
$.01 par value per share, with associated Common Share Purchase Rights | ||||||||
5.00% Series C Cumulative Redeemable Preferred Stock, $.01 par value per share |
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
None | N/A | N/A |
Federal Realty Investment Trust | Federal Realty OP LP | |||||||||||||||||||||||||
☒ | Accelerated filer | ☐ | ☒ | Accelerated filer | ☐ | |||||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller reporting company | Non-Accelerated Filer | ☐ | Smaller reporting company | |||||||||||||||||||||
Emerging growth company | Emerging growth company |
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | Financial Statements | |||||||
Federal Realty Investment Trust | ||||||||
Consolidated Balance Sheets (unaudited) as of September 30, 2022 and December 31, 2021 | ||||||||
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Consolidated Statements of Shareholders' Equity (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2022 and 2021 | ||||||||
Federal Realty OP LP | ||||||||
Consolidated Balance Sheets (unaudited) as of September 30, 2022 and December 31, 2021 | ||||||||
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Consolidated Statements of Capital (unaudited) for the three and nine months ended September 30, 2022 and 2021 | ||||||||
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2022 and 2021 | ||||||||
Federal Realty Investment Trust and Federal Realty OP LP | ||||||||
Notes to Consolidated Financial Statements (unaudited) | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||
Item 4. | Controls and Procedures | |||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | Legal Proceedings | |||||||
Item 1A. | Risk Factors | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
Item 3. | Defaults Upon Senior Securities | |||||||
Item 4. | Mine Safety Disclosures | |||||||
Item 5. | Other Information | |||||||
Item 6. | Exhibits | |||||||
SIGNATURES |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(In thousands, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Real estate, at cost | |||||||||||
Operating (including $ | $ | $ | |||||||||
Construction-in-progress (including $ | |||||||||||
Less accumulated depreciation and amortization (including $ | ( | ( | |||||||||
Net real estate | |||||||||||
Cash and cash equivalents | |||||||||||
Accounts and notes receivable, net | |||||||||||
Mortgage notes receivable, net | |||||||||||
Investment in partnerships | |||||||||||
Operating lease right of use assets, net | |||||||||||
Finance lease right of use assets, net | |||||||||||
Prepaid expenses and other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Liabilities | |||||||||||
Mortgages payable, net (including $ | $ | $ | |||||||||
Notes payable, net | |||||||||||
Senior notes and debentures, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Dividends payable | |||||||||||
Security deposits payable | |||||||||||
Operating lease liabilities | |||||||||||
Finance lease liabilities | |||||||||||
Other liabilities and deferred credits | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 6) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Shareholders’ equity | |||||||||||
Preferred shares, authorized | |||||||||||
Common shares of beneficial interest, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated dividends in excess of net income | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total shareholders’ equity of the Trust | |||||||||||
Noncontrolling interests | |||||||||||
Total shareholders’ equity | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||||||||||
Mortgage interest income | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Rental expenses | |||||||||||||||||||||||
Real estate taxes | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Gain on deconsolidation of VIE | |||||||||||||||||||||||
Gain on sale of real estate and change in control of interest | |||||||||||||||||||||||
OPERATING INCOME | |||||||||||||||||||||||
OTHER INCOME/(EXPENSE) | |||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from partnerships | ( | ||||||||||||||||||||||
NET INCOME | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
NET INCOME ATTRIBUTABLE TO THE TRUST | |||||||||||||||||||||||
Dividends on preferred shares | ( | ( | ( | ( | |||||||||||||||||||
NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
EARNINGS PER COMMON SHARE, BASIC: | |||||||||||||||||||||||
Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares | |||||||||||||||||||||||
EARNINGS PER COMMON SHARE, DILUTED: | |||||||||||||||||||||||
Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common shares | |||||||||||||||||||||||
COMPREHENSIVE INCOME | $ | $ | $ | $ | |||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST | $ | $ | $ | $ |
Shareholders’ Equity of the Trust | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Dividends in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of VIE | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of preferred shares | ( | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion of downREIT OP units | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of VIE | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ |
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 JUNE 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, net | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under dividend reinvestment plan | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Conversion and redemption of downREIT OP units | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, excluding $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on deconsolidation of VIE | ( | ||||||||||
Gain on sale of real estate and change in control of interest | ( | ( | |||||||||
(Income) loss from partnerships | ( | ||||||||||
Straight-line rent | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Other, net | ( | ( | |||||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
(Increase) decrease in accounts receivable, net | ( | ||||||||||
Decrease (increase) in prepaid expenses and other assets | ( | ||||||||||
Increase in accounts payable and accrued expenses | |||||||||||
Increase in security deposits and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate | ( | ( | |||||||||
Capital expenditures - development and redevelopment | ( | ( | |||||||||
Capital expenditures - other | ( | ( | |||||||||
Costs associated with property sold under threat of condemnation | ( | ||||||||||
Proceeds from sale of real estate | |||||||||||
Change in cash from deconsolidation of VIE | ( | ||||||||||
Investment in partnerships | ( | ( | |||||||||
Distribution from partnerships in excess of earnings | |||||||||||
Leasing costs | ( | ( | |||||||||
(Issuance) repayment of mortgage and other notes receivable, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net borrowings under revolving credit facility | |||||||||||
Repayment of mortgages, finance leases and notes payable | ( | ( | |||||||||
Issuance of common shares, net of costs | |||||||||||
Dividends paid to common and preferred shareholders | ( | ( | |||||||||
Shares withheld for employee taxes | ( | ( | |||||||||
Contributions from noncontrolling interests | |||||||||||
Distributions to and redemptions of redeemable noncontrolling interests | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(In thousands, except unit data) | |||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Real estate, at cost | |||||||||||
Operating (including $ | $ | $ | |||||||||
Construction-in-progress (including $ | |||||||||||
Less accumulated depreciation and amortization (including $ | ( | ( | |||||||||
Net real estate | |||||||||||
Cash and cash equivalents | |||||||||||
Accounts and notes receivable, net | |||||||||||
Mortgage notes receivable, net | |||||||||||
Investment in partnerships | |||||||||||
Operating lease right of use assets, net | |||||||||||
Finance lease right of use assets, net | |||||||||||
Prepaid expenses and other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND CAPITAL | |||||||||||
Liabilities | |||||||||||
Mortgages payable, net (including $ | $ | $ | |||||||||
Notes payable, net | |||||||||||
Senior notes and debentures, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Dividends payable | |||||||||||
Security deposits payable | |||||||||||
Operating lease liabilities | |||||||||||
Finance lease liabilities | |||||||||||
Other liabilities and deferred credits | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 6) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Partner capital | |||||||||||
Preferred units, | |||||||||||
Common units, | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total partner capital | |||||||||||
Noncontrolling interests in consolidated partnerships | |||||||||||
Total capital | |||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||
Rental income | $ | $ | $ | $ | |||||||||||||||||||
Mortgage interest income | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Rental expenses | |||||||||||||||||||||||
Real estate taxes | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Gain on deconsolidation of VIE | |||||||||||||||||||||||
Gain on sale of real estate and change in control of interest | |||||||||||||||||||||||
OPERATING INCOME | |||||||||||||||||||||||
OTHER INCOME/(EXPENSE) | |||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from partnerships | ( | ||||||||||||||||||||||
NET INCOME | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP | |||||||||||||||||||||||
Distributions on preferred units | ( | ( | ( | ( | |||||||||||||||||||
NET INCOME AVAILABLE FOR COMMON UNIT HOLDERS | $ | $ | $ | $ | |||||||||||||||||||
EARNINGS PER COMMON UNIT, BASIC: | |||||||||||||||||||||||
Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common units | |||||||||||||||||||||||
EARNINGS PER COMMON UNIT, DILUTED: | |||||||||||||||||||||||
Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of common units | |||||||||||||||||||||||
COMPREHENSIVE INCOME | $ | $ | $ | $ | |||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE PARTNERSHIP | $ | $ | $ | $ |
Preferred Units | Common Units | Accumulated Other Comprehensive Income (Loss) | Total Partner Capital | Noncontrolling Interests in Consolidated Partnerships | Total Capital | |||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Deconsolidation of VIE | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | ||||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Conversion of preferred units | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Conversion of downREIT OP units | — | — | ( | |||||||||||||||||||||||||||||||||||
Deconsolidation of VIE | — | — | — | — | ||||||||||||||||||||||||||||||||||
Adjustment to redeemable noncontrolling interests | — | — | — | |||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Preferred Units | Common Units | Accumulated Other Comprehensive Income (Loss) | Total Partner Capital | Noncontrolling Interests in Consolidated Partnerships | Total Capital | |||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2021 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||
Net income, excluding $ | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income - change in fair value of interest rate swaps, excluding $ | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions declared to common unit holders | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to preferred unit holders | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Distributions declared to noncontrolling interests in consolidated partnerships, excluding $ | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||
Common units issued under dividend reinvestment plan | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Common units withheld for employee taxes | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Conversion and redemption of downREIT OP units | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests, excluding $ | — | — | — | $ | ||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | $ | $ | ( | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on deconsolidation of VIE | ( | ||||||||||
Gain on sale of real estate and change in control of interest | ( | ( | |||||||||
(Income) loss from partnerships | ( | ||||||||||
Straight-line rent | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Other, net | ( | ( | |||||||||
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
(Increase) decrease in accounts receivable, net | ( | ||||||||||
Decrease (increase) in prepaid expenses and other assets | ( | ||||||||||
Increase in accounts payable and accrued expenses | |||||||||||
Increase in security deposits and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of real estate | ( | ( | |||||||||
Capital expenditures - development and redevelopment | ( | ( | |||||||||
Capital expenditures - other | ( | ( | |||||||||
Costs associated with property sold under threat of condemnation | ( | ||||||||||
Proceeds from sale of real estate | |||||||||||
Change in cash from deconsolidation of VIE | ( | ||||||||||
Investment in partnerships | ( | ( | |||||||||
Distribution from partnerships in excess of earnings | |||||||||||
Leasing costs | ( | ( | |||||||||
(Issuance) repayment of mortgage and other notes receivable, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net borrowings under revolving credit facility | |||||||||||
Repayment of mortgages, finance leases and notes payable | ( | ( | |||||||||
Issuance of common units, net of costs | |||||||||||
Distributions to common and preferred unit holders | ( | ( | |||||||||
Shares withheld for employee taxes | ( | ( | |||||||||
Contributions from noncontrolling interests | |||||||||||
Distributions to and redemptions of redeemable noncontrolling interests | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ |
Standard | Description | Effect on the financial statements or significant matters | ||||||||||||
ASU 2020-04, March 2020, Reference Rate Reform (Topic 848) | This ASU provides companies with optional practical expedients to ease the accounting burden for contract modifications associated with transitioning away from LIBOR and other interbank offered rates that are expected to be discontinued as part of reference rate reform. For hedges, the guidance generally allows changes to the reference rate and other critical terms without having to de-designate the hedging relationship, as well as allows the shortcut method to continue to be applied. For contract modifications, changes in the reference rate or other critical terms will be treated as a continuation of the prior contract. This guidance can be applied immediately, however, is generally only available through December 31, 2022. | We expect to apply some of the practical expedients, as we are in the process of transitioning the $ | ||||||||||||
ASU 2022-03, June 2022, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820) | This ASU clarifies that contractual sale restrictions are not considered in measuring the fair value of equity securities, and requires specific disclosures for all entities with equity securities subject to a contractual sale restriction including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. In addition, the ASU prohibits an entity from recognizing a contractual sale as a separate unit of account. This guidance is effective in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. | We are assessing the impact of this ASU on OP units issued as consideration in future acquisitions. |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||
Total interest costs incurred | $ | $ | |||||||||
Interest capitalized | ( | ( | |||||||||
Interest expense | $ | $ | |||||||||
Cash paid for interest, net of amounts capitalized | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||||||||||
DownREIT operating partnership units redeemed for common shares | $ | $ | |||||||||
Shares issued under dividend reinvestment plan | $ | $ | |||||||||
5.417% Series 1 Cumulative Convertible Preferred Shares redeemed for common shares | $ | $ | |||||||||
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (1) | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
Date Acquired | Property | City/State | Gross Leasable Area (GLA) | Gross Value | |||||||||||||||||||||||||
(in square feet) | (in millions) | ||||||||||||||||||||||||||||
April 20, 2022 & July 27, 2022 | Kingstowne Towne Center | Kingstowne, Virginia | $ | (1) | |||||||||||||||||||||||||
July 18, 2022 | Hilton Village (office building) | Scottsdale, Arizona | $ | (2) | |||||||||||||||||||||||||
July 27, 2022 | The Shops at Pembroke Gardens | Pembroke Pines, Florida | $ | (3) |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Mortgages and notes payable, net | $ | $ | $ | $ | |||||||||||||||||||
Senior notes and debentures, net | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( |
Nine Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Declared | Paid | Declared | Paid | ||||||||||||||||||||
Common shares | $ | $ | $ | $ | |||||||||||||||||||
5.417% Series 1 Cumulative Convertible Preferred shares | $ | $ | $ | $ | |||||||||||||||||||
5.0% Series C Cumulative Redeemable Preferred shares (1) | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Grants of common shares, restricted stock units, and options | $ | $ | $ | $ | |||||||||||||||||||
Capitalized share-based compensation | ( | ( | ( | ( | |||||||||||||||||||
Share-based compensation expense | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
NUMERATOR | |||||||||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||||||||
Less: Preferred share dividends | ( | ( | ( | ( | |||||||||||||||||||
Less: Income from operations attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Less: Earnings allocated to unvested shares | ( | ( | ( | ( | |||||||||||||||||||
Net income available for common shareholders, basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
DENOMINATOR | |||||||||||||||||||||||
Weighted average common shares outstanding, basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Open forward contracts for share issuances | |||||||||||||||||||||||
DownREIT operating partnership units | |||||||||||||||||||||||
5.417% Series 1 Cumulative Convertible Preferred Shares | |||||||||||||||||||||||
Weighted average common shares outstanding, diluted | |||||||||||||||||||||||
EARNINGS PER COMMON SHARE, BASIC: | |||||||||||||||||||||||
Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
EARNINGS PER COMMON SHARE, DILUTED: | |||||||||||||||||||||||
Net income available for common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||||||
NUMERATOR | |||||||||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||||||||
Less: Preferred unit distributions | ( | ( | ( | ( | |||||||||||||||||||
Less: Income from operations attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Less: Earnings allocated to unvested units | ( | ( | ( | ( | |||||||||||||||||||
Net income available for common unit holders, basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
DENOMINATOR | |||||||||||||||||||||||
Weighted average common units outstanding, basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Common unit issuances relating to open common share forward contracts | |||||||||||||||||||||||
DownREIT operating partnership units | |||||||||||||||||||||||
5.417% Series 1 Cumulative Convertible Preferred Units | |||||||||||||||||||||||
Weighted average common units outstanding, diluted | |||||||||||||||||||||||
EARNINGS PER COMMON UNIT, BASIC: | |||||||||||||||||||||||
Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
EARNINGS PER COMMON UNIT, DILUTED: | |||||||||||||||||||||||
Net income available for common unit holders | $ | $ | $ | $ | |||||||||||||||||||
Date Acquired | Property | City/State | Gross Leasable Area (GLA) | Gross Value | |||||||||||||||||||||||||
(in square feet) | (in millions) | ||||||||||||||||||||||||||||
April 20, 2022 & July 27, 2022 | Kingstowne Towne Center | Kingstowne, Virginia | 410,000 | $ | 200.0 | (1) | |||||||||||||||||||||||
July 18, 2022 | Hilton Village (office building) | Scottsdale, Arizona | 214,000 | $ | 53.6 | (2) | |||||||||||||||||||||||
July 27, 2022 | The Shops at Pembroke Gardens | Pembroke Pines, Florida | 392,000 | $ | 180.5 | (3) |
Change | |||||||||||||||||||||||
2022 | 2021 | Dollars | % | ||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||
Rental income | $ | 273,179 | $ | 247,024 | $ | 26,155 | 10.6 | % | |||||||||||||||
Mortgage interest income | 272 | 260 | 12 | 4.6 | % | ||||||||||||||||||
Total property revenue | 273,451 | 247,284 | 26,167 | 10.6 | % | ||||||||||||||||||
Rental expenses | 58,809 | 49,318 | 9,491 | 19.2 | % | ||||||||||||||||||
Real estate taxes | 32,803 | 29,529 | 3,274 | 11.1 | % | ||||||||||||||||||
Total property expenses | 91,612 | 78,847 | 12,765 | 16.2 | % | ||||||||||||||||||
Property operating income (1) | 181,839 | 168,437 | 13,402 | 8.0 | % | ||||||||||||||||||
General and administrative expense | (13,100) | (12,253) | (847) | 6.9 | % | ||||||||||||||||||
Depreciation and amortization | (77,109) | (70,611) | (6,498) | 9.2 | % | ||||||||||||||||||
Gain on deconsolidation of VIE | 70,374 | — | 70,374 | 100.0 | % | ||||||||||||||||||
Gain on sale of real estate and change in control of interest | 29,723 | — | 29,723 | 100.0 | % | ||||||||||||||||||
Operating income | 191,727 | 85,573 | 106,154 | 124.1 | % | ||||||||||||||||||
Other interest income | 234 | 88 | 146 | 165.9 | % | ||||||||||||||||||
Interest expense | (35,060) | (32,249) | (2,811) | 8.7 | % | ||||||||||||||||||
Income from partnerships | 1,873 | 1,129 | 744 | 65.9 | % | ||||||||||||||||||
Total other, net | (32,953) | (31,032) | (1,921) | 6.2 | % | ||||||||||||||||||
Net income | 158,774 | 54,541 | 104,233 | 191.1 | % | ||||||||||||||||||
Net income attributable to noncontrolling interests | (2,636) | (2,419) | (217) | 9.0 | % | ||||||||||||||||||
Net income attributable to the Trust | $ | 156,138 | $ | 52,122 | $ | 104,016 | 199.6 | % |
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Operating income | $ | 191,727 | $ | 85,573 | |||||||
General and administrative | 13,100 | 12,253 | |||||||||
Depreciation and amortization | 77,109 | 70,611 | |||||||||
Gain on deconsolidation of VIE | (70,374) | — | |||||||||
Gain on sale of real estate and change in control of interest | (29,723) | — | |||||||||
Property operating income | $ | 181,839 | $ | 168,437 |
Change | |||||||||||||||||||||||
2022 | 2021 | Dollars | % | ||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||
Rental income | $ | 793,516 | $ | 694,954 | $ | 98,562 | 14.2 | % | |||||||||||||||
Mortgage interest income | 805 | 2,116 | (1,311) | (62.0) | % | ||||||||||||||||||
Total property revenue | 794,321 | 697,070 | 97,251 | 14.0 | % | ||||||||||||||||||
Rental expenses | 166,189 | 141,474 | 24,715 | 17.5 | % | ||||||||||||||||||
Real estate taxes | 94,628 | 88,272 | 6,356 | 7.2 | % | ||||||||||||||||||
Total property expenses | 260,817 | 229,746 | 31,071 | 13.5 | % | ||||||||||||||||||
Property operating income (1) | 533,504 | 467,324 | 66,180 | 14.2 | % | ||||||||||||||||||
General and administrative expense | (39,046) | (35,357) | (3,689) | 10.4 | % | ||||||||||||||||||
Depreciation and amortization | (223,244) | (202,160) | (21,084) | 10.4 | % | ||||||||||||||||||
Gain on deconsolidation of VIE | 70,374 | — | 70,374 | 100.0 | % | ||||||||||||||||||
Gain on sale of real estate and change in control of interest | 29,723 | 17,428 | 12,295 | 70.5 | % | ||||||||||||||||||
Operating income | 371,311 | 247,235 | 124,076 | 50.2 | % | ||||||||||||||||||
Other interest income | 487 | 701 | (214) | (30.5) | % | ||||||||||||||||||
Interest expense | (98,707) | (95,511) | (3,196) | 3.3 | % | ||||||||||||||||||
Income (loss) from partnerships | 4,878 | (86) | 4,964 | 5,772.1 | % | ||||||||||||||||||
Total other, net | (93,342) | (94,896) | 1,554 | (1.6) | % | ||||||||||||||||||
Net income | 277,969 | 152,339 | 125,630 | 82.5 | % | ||||||||||||||||||
Net income attributable to noncontrolling interests | (8,171) | (5,777) | (2,394) | 41.4 | % | ||||||||||||||||||
Net income attributable to the Trust | $ | 269,798 | $ | 146,562 | $ | 123,236 | 84.1 | % |
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
Operating income | $ | 371,311 | $ | 247,235 | |||||||
General and administrative | 39,046 | 35,357 | |||||||||
Depreciation and amortization | 223,244 | 202,160 | |||||||||
Gain on deconsolidation of VIE | (70,374) | — | |||||||||
Gain on sale of real estate and change in control of interest | (29,723) | (17,428) | |||||||||
Property operating income | $ | 533,504 | $ | 467,324 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | $ | 409,293 | $ | 366,036 | |||||||
Net cash used in investing activities | (670,151) | (661,842) | |||||||||
Net cash provided by (used in) financing activities | 244,331 | (333,185) | |||||||||
Decrease in cash, cash equivalents and restricted cash | (16,527) | (628,991) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of year | 175,163 | 816,896 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 158,636 | $ | 187,905 |
Description of Debt | Original Debt Issued | Principal Balance as of September 30, 2022 | Stated Interest Rate as of September 30, 2022 | Maturity Date | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Mortgages payable | ||||||||||||||||||||||||||
Secured fixed rate | ||||||||||||||||||||||||||
Azalea | Acquired | $ | 40,000 | 3.73 | % | November 1, 2025 | ||||||||||||||||||||
Bell Gardens | Acquired | 11,910 | 4.06 | % | August 1, 2026 | |||||||||||||||||||||
Plaza El Segundo | 125,000 | 125,000 | 3.83 | % | June 5, 2027 | |||||||||||||||||||||
The Grove at Shrewsbury (East) | 43,600 | 43,600 | 3.77 | % | September 1, 2027 | |||||||||||||||||||||
Brook 35 | 11,500 | 11,500 | 4.65 | % | July 1, 2029 | |||||||||||||||||||||
Hoboken (24 Buildings) (1) | 56,450 | 55,407 | LIBOR + 1.95% | December 15, 2029 | ||||||||||||||||||||||
Various Hoboken (14 Buildings) (2) | Acquired | 31,119 | Various | Various through 2029 | ||||||||||||||||||||||
Chelsea | Acquired | 4,549 | 5.36 | % | January 15, 2031 | |||||||||||||||||||||
Subtotal | 323,085 | |||||||||||||||||||||||||
Net unamortized debt issuance costs and premium | (1,786) | |||||||||||||||||||||||||
Total mortgages payable, net | 321,299 | |||||||||||||||||||||||||
Notes payable | ||||||||||||||||||||||||||
Revolving credit facility (3) (4) (5) | 1,000,000 | 267,000 | LIBOR + 0.825% | January 19, 2024 | ||||||||||||||||||||||
Term loan (5) (6) | 400,000 | 300,000 | LIBOR + 0.85% | April 16, 2024 | ||||||||||||||||||||||
Various | 7,239 | 2,097 | 11.31% | Various through 2028 | ||||||||||||||||||||||
Subtotal | 569,097 | |||||||||||||||||||||||||
Net unamortized debt issuance costs | (795) | |||||||||||||||||||||||||
Total notes payable, net | 568,302 | |||||||||||||||||||||||||
Senior notes and debentures (5) | ||||||||||||||||||||||||||
Unsecured fixed rate | ||||||||||||||||||||||||||
2.75% notes | 275,000 | 275,000 | 2.75 | % | June 1, 2023 | |||||||||||||||||||||
3.95% notes | 600,000 | 600,000 | 3.95 | % | January 15, 2024 | |||||||||||||||||||||
1.25% notes | 400,000 | 400,000 | 1.25 | % | February 15, 2026 | |||||||||||||||||||||
7.48% debentures | 50,000 | 29,200 | 7.48 | % | August 15, 2026 | |||||||||||||||||||||
3.25% notes | 475,000 | 475,000 | 3.25 | % | July 15, 2027 | |||||||||||||||||||||
6.82% medium term notes | 40,000 | 40,000 | 6.82 | % | August 1, 2027 | |||||||||||||||||||||
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 | 3,419,200 | |||||||||||||||||||||||||
Net unamortized debt issuance costs and premium | (11,902) | |||||||||||||||||||||||||
Total senior notes and debentures, net | 3,407,298 | |||||||||||||||||||||||||
Total debt, net | $ | 4,296,899 |
Unsecured | Secured | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
2022 | $ | 206 | $ | 735 | $ | 941 | ||||||||||||||
2023 | 275,758 | 3,171 | 278,929 | |||||||||||||||||
2024 | 1,167,659 | (1)(2) | 3,299 | 1,170,958 | ||||||||||||||||
2025 | 383 | 47,630 | 48,013 | |||||||||||||||||
2026 | 429,254 | 26,240 | 455,494 | |||||||||||||||||
Thereafter | 2,115,037 | 242,010 | 2,357,047 | |||||||||||||||||
$ | 3,988,297 | $ | 323,085 | $ | 4,311,382 | (3) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income | $ | 158,774 | $ | 54,541 | $ | 277,969 | $ | 152,339 | |||||||||||||||
Net income attributable to noncontrolling interests | (2,636) | (2,419) | (8,171) | (5,777) | |||||||||||||||||||
Gain on deconsolidation of VIE | (70,374) | — | (70,374) | — | |||||||||||||||||||
Gain on sale of real estate and change in control of interest | (29,723) | — | (29,723) | (17,428) | |||||||||||||||||||
Depreciation and amortization of real estate assets | 67,455 | 61,236 | 196,159 | 174,770 | |||||||||||||||||||
Amortization of initial direct costs of leases | 7,454 | 6,202 | 19,129 | 20,127 | |||||||||||||||||||
Funds from operations | 130,950 | 119,560 | 384,989 | 324,031 | |||||||||||||||||||
Dividends on preferred shares (1) | (1,875) | (1,875) | (5,625) | (6,031) | |||||||||||||||||||
Income attributable to downREIT operating partnership units | 704 | 742 | 2,111 | 2,267 | |||||||||||||||||||
Income attributable to unvested shares | (449) | (438) | (1,353) | (1,156) | |||||||||||||||||||
Funds from operations available for common shareholders | $ | 129,330 | $ | 117,989 | $ | 380,122 | $ | 319,111 | |||||||||||||||
Weighted average number of common shares, diluted (1)(2) | 81,511 | 78,365 | 80,232 | 77,997 | |||||||||||||||||||
Funds from operations available for common shareholders, per diluted share (2) | $ | 1.59 | $ | 1.51 | $ | 4.74 | $ | 4.09 | |||||||||||||||
EXHIBIT INDEX | |||||||||||
Exhibit No. | Description | ||||||||||
Rule 13a-14(a) Certification of Chief Executive Officer - Federal Realty Investment Trust (filed herewith) | |||||||||||
Rule 13a-14(a) Certification of Chief Financial Officer - Federal Realty Investment Trust (filed herewith) | |||||||||||
Rule 13a-14(a) Certification of Chief Executive Officer - Federal Realty OP LP (filed herewith) | |||||||||||
Rule 13a-14(a) Certification of Chief Financial Officer - Federal Realty OP LP (filed herewith) | |||||||||||
Section 1350 Certification of Chief Executive Officer - Federal Realty Investment Trust (filed herewith) | |||||||||||
Section 1350 Certification of Chief Financial Officer - Federal Realty Investment Trust (filed herewith) | |||||||||||
Section 1350 Certification of Chief Executive Officer - Federal Realty OP LP (filed herewith) | |||||||||||
Section 1350 Certification of Chief Financial Officer - Federal Realty OP LP (filed herewith) | |||||||||||
101 | The following materials from Federal Realty Investment Trust’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in XBRL (Extensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Comprehensive Income, (3) the Consolidated Statement of Shareholders’ Equity, (4) the Consolidated Statements of Cash Flows, and (5) Notes to Consolidated Financial Statements that have been detail tagged. | ||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
FEDERAL REALTY INVESTMENT TRUST | ||||||||
FEDERAL REALTY OP LP | ||||||||
November 3, 2022 | /s/ Donald C. Wood | |||||||
Donald C. Wood, | ||||||||
Chief Executive Officer and Trustee | ||||||||
(Principal Executive Officer) | ||||||||
FEDERAL REALTY INVESTMENT TRUST | ||||||||
FEDERAL REALTY OP LP | ||||||||
November 3, 2022 | /s/ Daniel Guglielmone | |||||||
Daniel Guglielmone, | ||||||||
Executive Vice President | ||||||||
Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) | ||||||||
November 3, 2022 | /s/ Donald C. Wood | |||||||
Donald C. Wood, | ||||||||
Chief Executive Officer and Trustee | ||||||||
(Principal Executive Officer) |
November 3, 2022 | /s/ Daniel Guglielmone | |||||||
Daniel Guglielmone | ||||||||
Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |
November 3, 2022 | /S/ Donald C. Wood | |||||||
Donald C. Wood, | ||||||||
Chief Executive Officer and Trustee | ||||||||
(Principal Executive Officer) |
November 3, 2022 | /S/ Daniel Guglielmone | |||||||
Daniel Guglielmone, | ||||||||
Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |
November 3, 2022 | /s/ Donald C. Wood | |||||||
Donald C. Wood, | ||||||||
Chief Executive Officer and Trustee | ||||||||
(Principal Financial and Executive Officer) |
November 3, 2022 | /s/ Daniel Guglielmone | |||||||
Daniel Guglielmone | ||||||||
Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |
November 3, 2022 | /S/ Donald C. Wood | |||||||
Donald C. Wood, | ||||||||
President, Chief Executive Officer and Trustee | ||||||||
(Principal Executive Officer) |
November 3, 2022 | /S/ Daniel Guglielmone | |||||||
Daniel Guglielmone, | ||||||||
Executive Vice President - Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and Accounting Officer) |
Consolidated Statement Of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Net income attributable to redeemable noncontrolling interests | $ 1,774 | $ 1,595 | $ 5,301 | $ 3,472 |
Other comprehensive (income) loss attributable to redeemable noncontrolling interests | $ (261) | $ (42) | $ (802) | $ (273) |
Dividends declared to common shareholders (in dollars per share) | $ 1.08 | $ 1.07 | $ 3.220 | $ 3.19 |
Distributions declared to redeemable noncontrolling interests | $ 1,974 | $ 1,310 | $ 6,112 | $ 3,045 |
Contributions from redeemable noncontrolling interests | $ 74,530 |
Consolidated Statements of Capital (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Net income attributable to redeemable noncontrolling interests | $ 1,774 | $ 1,595 | $ 5,301 | $ 3,472 |
Other comprehensive (income) loss attributable to redeemable noncontrolling interests | (261) | (42) | (802) | (273) |
Distributions declared to redeemable noncontrolling interests | 1,974 | 1,310 | 6,112 | 3,045 |
Contributions from redeemable noncontrolling interests | 74,530 | |||
Federal Realty OP LP | ||||
Net income attributable to redeemable noncontrolling interests | 1,774 | 1,595 | 5,301 | 3,472 |
Other comprehensive (income) loss attributable to redeemable noncontrolling interests | (261) | (42) | (802) | (273) |
Distributions declared to redeemable noncontrolling interests | $ 1,974 | $ 1,310 | $ 6,112 | 3,045 |
Contributions from redeemable noncontrolling interests | $ 74,530 |
Business And Organization |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Nature Of Operations [Abstract] | |
BUSINESS AND ORGANIZATION | BUSINESS AND ORGANIZATION Federal Realty Investment Trust (the "Parent Company" and the “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 operations and owns all of its assets. The Parent Company owns 100% of the limited liability company interests of, is sole member of and exercises exclusive 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 primarily in communities where we believe retail demand exceeds supply, in strategically selected metropolitan markets in the Mid-Atlantic and Northeast regions of the United States, California, and South Florida. As of September 30, 2022, 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. 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.
|
Summary Of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation In January 2022, we completed a reorganization into an umbrella partnership real estate investment trust, or "UPREIT." For additional information on our UPREIT reorganization, please see our Current Reports on Form 8-K filed with the SEC on January 3, 2022 and January 5, 2022, as well our latest Annual Report on Form 10-K filed on February 10, 2022. Immediately following the reorganization, the Parent Company had the same consolidated assets and liabilities as Federal Realty Investment Trust immediately before the reorganization. The Parent Company exercises exclusive control over the General Partner and does not have assets or liabilities other than its investment in the Operating Partnership. As a result, the UPREIT reorganization represented a merger of entities under common control in accordance with accounting principles generally accepted in the United States ("GAAP"). Accordingly, the accompanying consolidated financial statements including the notes thereto, are presented as if the UPREIT reorganization had occurred at the earliest period presented. The accompanying unaudited interim consolidated financial statements of the Parent Company and Operating Partnership have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in our latest Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. Certain 2021 amounts have been reclassified to conform to our current period presentation. Principles of Consolidation As discussed in the Explanatory Note, we have combined the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report. As a result, we present two sets of consolidated financial statements. Both sets of consolidated financial statements include the accounts of the entity, its corporate subsidiaries, and all entities in which it has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”). The Parent Company's consolidated financial statements include the accounts of the Operating Partnership and its subsidiaries as the Parent Company, through its ownership and control over the General Partner, exercises exclusive control over the Operating Partnership. The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant 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. Impacts of COVID-19 Pandemic and General Economic Conditions Given ongoing workforce shortages, global supply chain bottlenecks and shortages, higher levels of inflation, and rising interest rates, we continue to monitor and address risks related to the global COVID-19 pandemic and the state of the economy. The extent of the future effects of COVID-19 and potentially worsening economic conditions on our business, results of operations, cash flows, and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty. Our collection of rents has continued to improve including collecting rents related to prior periods. As a result, our collectibility related adjustments resulted in an increase to rental income of $0.9 million and $2.9 million, respectively, during the three and nine months ended September 30, 2022, as compared to a decrease to rental income during the three and nine months ended September 30, 2021 of $0.6 million and $21.8 million, respectively, which reflected lower levels of cash collections and elevated levels of rent abatements and disputes directly related to COVID-19. As of September 30, 2022, the revenue from approximately 31% of our tenants (based on total commercial leases) is being recognized on a cash basis. As of September 30, 2022, we executed rent deferral agreements related to the COVID-19 pandemic representing approximately $47 million of rent. We have subsequently collected approximately $33 million of those amounts previously deferred. For more information, see Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook. Recently Issued Accounting Pronouncements
Consolidated Statements of Cash Flows—Supplemental Disclosures The following tables provide supplemental disclosures related to the Consolidated Statements of Cash Flows:
(1)Restricted cash balances are included in "prepaid expenses and other assets" on our consolidated balance sheets.
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Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disclosure | REAL ESTATE Property Acquisitions During the nine months ended September 30, 2022, we acquired the following properties:
(1) Approximately $11.3 million and $0.3 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $20.2 million of net assets acquired were allocated to other liabilities for "below market leases." (2) This building is adjacent to, and will be operated as part of our Hilton Village property. The land is controlled under a long-term ground lease that expires on September 30, 2075, for which we have recorded a $6.5 million "operating lease right of use asset" (net of a $0.8 million above market liability) and a $7.3 million "operating lease liability." Approximately $8.9 million of net assets acquired were allocated to other assets for "acquired lease costs" and $0.1 million of net assets acquired were allocated to other liabilities for "below market leases." (3) Approximately $16.3 million and $1.6 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $18.4 million of net assets acquired were allocated to other liabilities for "below market leases." Property Dispositions During the three and nine months ended September 30, 2022, we sold one residential property (including an adjacent retail pad) and one retail property for sales prices totaling $66.8 million, resulting in net gains totaling approximately $20.4 million. Other TransactionOn August 25, 2022, we entered into a tenancy in common ("TIC") agreement with our partner in the partnership that owned Escondido Promenade. As a result, the Company owns a 77.7% TIC interest, and our former partner owns the remaining 22.3% interest. While the Company controlled and consolidated Escondido Promenade under the previous partnership arrangement, control is shared under the TIC agreement. The transaction is considered a transfer of our previous controlling partner interest in exchange for a non-controlling TIC interest. Accordingly, we deconsolidated the entity and recorded our TIC interest at fair value as an equity method investment. We recognized a $70.4 million "gain on deconsolidation of VIE" on our consolidated statements of operations, which is the difference between the net carrying value of the deconsolidated entity and the fair value of our TIC interest. As of August 25, 2022, the fair value of our investment in the entity was $110.0 million, and is included in "investment in partnerships" on our consolidated balance sheet as of September 30, 2022. As a part of this transaction, we made a $3.5 million loan to our co-owner, which is included in "accounts and notes receivable, net" on our consolidated balance sheet at September 30, 2022. In addition, we entered into a purchase option agreement to acquire the TIC interest from our co-owner, which was secured through an option payment of $1.5 million, and allows us to exercise our option at any time between February 1, 2023 and March 15, 2023.
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Debt |
9 Months Ended |
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Sep. 30, 2022 | |
Debt Instruments [Abstract] | |
DEBT | DEBT On June 29, 2022, we repaid the $16.1 million mortgage loan on one of the buildings at our Hoboken property, at par. During both the three and nine months ended September 30, 2022, the maximum amount of borrowings outstanding under our $1.0 billion revolving credit facility was $330.0 million. The weighted average amount of borrowings outstanding was $229.5 million and $97.8 million, respectively, and the weighted average interest rate, before amortization of debt fees, was 3.4% and 3.1%, respectively, for the three and nine months ended September 30, 2022. At September 30, 2022, our revolving credit facility had $267.0 million outstanding. Effective April 1, 2022, as a result of the change in our credit rating, the spread over LIBOR on our revolving credit facility increased from 77.5 basis points to 82.5 basis, and the spread over LIBOR on our unsecured term loan increased from 80 basis points to 85 basis points. Our revolving credit facility, term loan, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders' equity and debt coverage ratios and a maximum ratio of debt to net worth. As of September 30, 2022, we were in compliance with all default related debt covenants.
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Fair Value Of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Except as disclosed below, the carrying amount of our financial instruments approximates their fair value. The fair value of our mortgages payable, notes payable and senior notes and debentures is sensitive to fluctuations in interest rates. Quoted market prices (Level 1) were used to estimate the fair value of our marketable senior notes and debentures and discounted cash flow analysis (Level 2) is generally used to estimate the fair value of our mortgages and notes payable. Considerable judgment is necessary to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. A summary of the carrying amount and fair value of our mortgages payable, notes payable and senior notes and debentures is as follows:
As of September 30, 2022, we have two interest rate swap agreements with notional amounts of $55.4 million that are measured at fair value on a recurring basis. The interest rate swap agreements fix the interest rate on $55.4 million of mortgage payables at 3.67% through December 15, 2029. 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. The fair value of our swaps at September 30, 2022 was an asset of $6.5 million and is included in "prepaid expenses and other assets" on our consolidated balance sheets. For the three and nine months ended September 30, 2022, the value of our interest rate swaps increased $2.6 million and $8.0 million, respectively (including less than $0.1 million reclassified from other comprehensive income as a decrease to interest expense for the three months ended and $0.3 million for the nine months ended reclassified from other comprehensive income as an increase to interest expense, respectively). A summary of our financial assets (liabilities) that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are sometimes involved in lawsuits, warranty claims, and environmental matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. We are currently a party to various legal proceedings. We accrue a liability for litigation if an unfavorable outcome is probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, we accrue the best estimate within the range; however, if no amount within the range is a better estimate than any other amount, the minimum within the range is accrued. Legal fees related to litigation are expensed as incurred. We do not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on our financial position or overall trends in results of operations; however, litigation is subject to inherent uncertainties. Also under our leases, tenants are typically obligated to indemnify us from and against all liabilities, costs and expenses imposed upon or asserted against us (1) as owner of the properties due to certain matters relating to the operation of the properties by the tenant, and (2) where appropriate, due to certain matters relating to the ownership of the properties prior to their acquisition by us. On July 13, 2022, we acquired the 21.8% redeemable noncontrolling interest in the partnership that owns our Plaza El Segundo shopping center for $23.6 million, bringing our ownership interest to 100%. On December 11, 2019, we received proceeds related to the sale under the 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. During September 2022, we recorded a net reduction to our liability for condemnation and transaction costs to reflect the impact of a recent tenant settlement agreement and our current estimate of remaining costs, and accordingly, for the three and nine months ended September 30, 2022, we have recognized a gain of $9.3 million, which is included in our consolidated statements of operations. Additionally, during the nine months ended September 30, 2022, we incurred $2.9 million of payments to tenants, and consequently, at September 30, 2022, we have a liability of $20.1 million to reflect our estimate of the remaining consideration. Under the terms of certain partnership agreements, the partners have the right to exchange their operating partnership units for cash or common shares, at our option. A total of 652,233 downREIT operating partnership units are outstanding which have a total fair value of approximately $58.8 million, which is calculated by multiplying the outstanding number of downREIT partnership units by our closing stock price on September 30, 2022.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY The following table provides a summary of dividends declared and paid per share:
(1)Amount represents dividends per depository share, each representing 1/1000th of a share. On February 14, 2022, we replaced our existing ATM equity program with a new ATM equity program under which we may from time to time offer and sell common shares having an aggregate offering price of up to $500.0 million. The 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. For the three and nine months ended September 30, 2022, we issued 296,843 common shares at a weighted average price per share of $112.11 for net cash proceeds of $32.9 million including paying $0.3 million in commissions and $0.1 million in additional offering expenses related to the sales of these common shares. We have the remaining capacity to issue up to $466.7 million in common shares under our ATM equity program as of September 30, 2022. For the nine months ended September 30, 2022, we settled forward sales agreements by issuing 2,203,655 common shares for net proceeds of $259.4 million. We have no outstanding forward sales agreements as of September 30, 2022. On June 15, 2022, one of our 5.417% Series 1 Cumulative Convertible Preferred shareholders converted 7,018 preferred shares to 1,675 common shares.
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Share-Based Compensation Plans |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS A summary of share-based compensation expense included in net income is as follows:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 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 both the three and nine months ended September 30, 2022 and 2021, 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 reconciliations below. The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive: •exercise of 682 stock options for the three and nine months ended September 30, 2021, •conversions of downREIT operating partnership units for the three and nine months ended September 30, 2021, •conversions of 5.417% Series 1 Cumulative Convertible Preferred Shares and units for the nine months ended September 30, 2022, and the three and nine months ended September 30, 2021, and •the issuance of 1.8 million shares and units issuable under common share forward sales agreements for the nine months ended September 30, 2022, and 0.9 million and 1.7 million, respectively, for the three and nine months ended September 30, 2021. Additionally, 10,441 unvested restricted stock units are excluded from the diluted EPS and EPU calculations as the market based performance criteria in the awards has not yet been achieved. Federal Realty Investment Trust Earnings per Share
Federal Realty OP LP Earnings per Unit
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Subsequent Event |
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Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTS On October 5, 2022, we amended our revolving credit facility, increasing the borrowing capacity from $1.0 billion to $1.25 billion, extending the maturity date to April 5, 2027, plus two six-month extension options, transitioning the interest rate provisions from LIBOR to the secured overnight financing rate ("SOFR"), and adjusting the spread for SOFR based loans. Our SOFR based loans bear interest at Daily Simple SOFR or Term SOFR as defined in the credit agreement plus 0.10% plus a spread, based on our credit rating. The current spread is 77.5 basis points. In addition, we have an option (subject to bank approval) to increase the credit facility through an accordion feature to $1.75 billion. On October 5, 2022, we also amended our unsecured term loan and borrowed an additional $300.0 million, bringing the total outstanding to $600.0 million. The term loan amendment also transitioned the interest rate provisions from LIBOR to SOFR, with the basis point spread over SOFR remaining at 85 basis points, based on our current credit rating. The net proceeds from the term loan were used to repay the $267.0 million outstanding balance on the revolving credit facility and for general corporate purposes. On October 6, 2022, we acquired a 47.5% interest in an unconsolidated joint venture that owns two shopping centers totaling 617,000 square feet in Chandler, Arizona for $58.9 million. The properties have combined mortgage debt of $76.1 million, of which our share is approximately $36.2 million.
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Summary of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of presentation In January 2022, we completed a reorganization into an umbrella partnership real estate investment trust, or "UPREIT." For additional information on our UPREIT reorganization, please see our Current Reports on Form 8-K filed with the SEC on January 3, 2022 and January 5, 2022, as well our latest Annual Report on Form 10-K filed on February 10, 2022. Immediately following the reorganization, the Parent Company had the same consolidated assets and liabilities as Federal Realty Investment Trust immediately before the reorganization. The Parent Company exercises exclusive control over the General Partner and does not have assets or liabilities other than its investment in the Operating Partnership. As a result, the UPREIT reorganization represented a merger of entities under common control in accordance with accounting principles generally accepted in the United States ("GAAP"). Accordingly, the accompanying consolidated financial statements including the notes thereto, are presented as if the UPREIT reorganization had occurred at the earliest period presented. The accompanying unaudited interim consolidated financial statements of the Parent Company and Operating Partnership have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in our latest Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. Certain 2021 amounts have been reclassified to conform to our current period presentation.
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Principles of Consolidation | Principles of Consolidation As discussed in the Explanatory Note, we have combined the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into this single report. As a result, we present two sets of consolidated financial statements. Both sets of consolidated financial statements include the accounts of the entity, its corporate subsidiaries, and all entities in which it has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”). The Parent Company's consolidated financial statements include the accounts of the Operating Partnership and its subsidiaries as the Parent Company, through its ownership and control over the General Partner, exercises exclusive control over the Operating Partnership. The equity interests of other investors are reflected as noncontrolling interests or redeemable noncontrolling interests. All significant 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.
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Use of Estimates | 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.
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Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements
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Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental disclosures related to the Consolidated Statements Of Cash Flows | The following tables provide supplemental disclosures related to the Consolidated Statements of Cash Flows:
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Reconciliation of cash, cash equivalents, and restricted cash |
(1)Restricted cash balances are included in "prepaid expenses and other assets" on our consolidated balance sheets.
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Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property Acquisitions | During the nine months ended September 30, 2022, we acquired the following properties:
(1) Approximately $11.3 million and $0.3 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $20.2 million of net assets acquired were allocated to other liabilities for "below market leases." (2) This building is adjacent to, and will be operated as part of our Hilton Village property. The land is controlled under a long-term ground lease that expires on September 30, 2075, for which we have recorded a $6.5 million "operating lease right of use asset" (net of a $0.8 million above market liability) and a $7.3 million "operating lease liability." Approximately $8.9 million of net assets acquired were allocated to other assets for "acquired lease costs" and $0.1 million of net assets acquired were allocated to other liabilities for "below market leases." (3) Approximately $16.3 million and $1.6 million of net assets acquired were allocated to other assets for "acquired lease costs" and "above market leases," respectively, and $18.4 million of net assets acquired were allocated to other liabilities for "below market leases."
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Fair Value Of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of carrying amount and fair value of 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:
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Summary of financial (liabilities) assets that are measured at fair value on a recurring basis | A summary of our financial assets (liabilities) that are measured at fair value on a recurring basis, by level within the fair value hierarchy is as follows:
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Shareholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of dividends declared and paid per share | The following table provides a summary of dividends declared and paid per share:
(1)Amount represents dividends per depository share, each representing 1/1000th of a share.
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Share-Based Compensation Plans (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of share-based compensation expense included in net income | A summary of share-based compensation expense included in net income is as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share | The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive: •exercise of 682 stock options for the three and nine months ended September 30, 2021, •conversions of downREIT operating partnership units for the three and nine months ended September 30, 2021, •conversions of 5.417% Series 1 Cumulative Convertible Preferred Shares and units for the nine months ended September 30, 2022, and the three and nine months ended September 30, 2021, and •the issuance of 1.8 million shares and units issuable under common share forward sales agreements for the nine months ended September 30, 2022, and 0.9 million and 1.7 million, respectively, for the three and nine months ended September 30, 2021. Additionally, 10,441 unvested restricted stock units are excluded from the diluted EPS and EPU calculations as the market based performance criteria in the awards has not yet been achieved. Federal Realty Investment Trust Earnings per Share
Federal Realty OP LP Earnings per Unit
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Business And Organization (Details) |
9 Months Ended |
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Sep. 30, 2022
project
| |
Nature of Operations | |
Number of real estate properties | 104 |
Minimum percentage of taxable income distributed to shareholders | 90.00% |
Federal Realty GP LLC | |
Nature of Operations | |
Limited liability company ownership interest | 100.00% |
Summary Of Significant Accounting Policies Impacts of COVID-19 Pandemic (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Revenue Recognition and Accounts Receivable [Abstract] | ||||
Collectibility adjustment (increase) decrease in revenue | $ (0.9) | $ 0.6 | $ (2.9) | $ 21.8 |
Percentage of tenants with revenue recognized on a cash basis | 31.00% | 31.00% | ||
Rent deferred | $ 47.0 | $ 47.0 | ||
Previously deferred rent, amount collected | $ 33.0 | $ 33.0 |
Summary Of Significant Accounting Policies Recently Issued Accounting Pronouncements (Details) $ in Millions |
Sep. 30, 2022
USD ($)
|
---|---|
Hoboken | Secured Debt | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Mortgage payable | $ 55.4 |
Assembly Row hotel | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Mortgage loan on unconsolidated real estate properties | 39.2 |
Our share of unconsolidated mortgage debt | $ 19.6 |
Summary Of Significant Accounting Policies Consolidated Statement of Cash Flows - Supplemental Disclosures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Accounting Policies [Abstract] | ||||
Total interest costs incurred | $ 112,596 | $ 113,691 | ||
Interest capitalized | (13,889) | (18,180) | ||
Interest expense | $ 35,060 | $ 32,249 | 98,707 | 95,511 |
Cash paid for interest, net of amounts capitalized | 94,712 | 91,887 | ||
Cash paid for income taxes | 616 | 326 | ||
DownREIT operating partnership units redeemed for common shares | 1,385 | 5,121 | ||
Shares issued under dividend reinvestment plan | 1,292 | 1,294 | ||
5.417% Series 1 Cumulative Convertible Preferred Shares redeemed for common shares | $ 175 | $ 0 |
Summary Of Significant Accounting Policies Consolidated Statement of Cash Flows - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
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Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||||
Cash and cash equivalents | $ 146,214 | $ 162,132 | ||||
Restricted cash | [1] | 12,422 | 13,031 | |||
Total cash, cash equivalents, and restricted cash | $ 158,636 | $ 175,163 | $ 187,905 | $ 816,896 | ||
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Real Estate (Significant Dispositions and Other Transaction) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Aug. 25, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Significant Acquisitions, Dispositions, and Other Transaction | |||||
Gain on sale of real estate and change in control of interest | $ 29,723 | $ 0 | $ 29,723 | $ 17,428 | |
Gain on deconsolidation of VIE | 70,374 | $ 0 | 70,374 | $ 0 | |
Escondido Promenade | TIC Interest | |||||
Significant Acquisitions, Dispositions, and Other Transaction | |||||
Ownership interest | 77.70% | ||||
Ownership interest of partner | 22.30% | ||||
One residential property (including an adjacent retail pad) and one retail property | |||||
Significant Acquisitions, Dispositions, and Other Transaction | |||||
Sales price of real estate | 66,800 | 66,800 | |||
Gain on sale of real estate and change in control of interest | $ 20,400 | $ 20,400 | |||
Escondido Promenade | TIC Interest | |||||
Significant Acquisitions, Dispositions, and Other Transaction | |||||
Gain on deconsolidation of VIE | $ 70,400 | ||||
Purchase option agreement payment required to acquire the TIC interest from our co-owner | 1,500 | ||||
Escondido Promenade | Investment in Partnerships | TIC Interest | |||||
Significant Acquisitions, Dispositions, and Other Transaction | |||||
Fair value of our investment | 110,000 | ||||
Escondido Promenade | Accounts and notes receivable, net | TIC Interest | |||||
Significant Acquisitions, Dispositions, and Other Transaction | |||||
Loan to co-owner | $ 3,500 |
Debt (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 29, 2022 |
Apr. 01, 2022 |
Mar. 31, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
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One of the buildings at our Hoboken property | |||||
Debt Instrument [Line Items] | |||||
Repayments of Secured Debt | $ 16.1 | ||||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity under revolving credit facility | $ 1,000.0 | $ 1,000.0 | |||
Maximum amount outstanding under revolving credit facility | 330.0 | 330.0 | |||
Weighted average borrowings outstanding | $ 229.5 | $ 97.8 | |||
Weighted average interest rate, before amortization of debt fees | 3.40% | 3.10% | |||
Revolving credit facility | $ 267.0 | $ 267.0 | |||
Basis spread on LIBOR interest | 0.825% | 0.775% | |||
Unsecured term loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on LIBOR interest | 0.85% | 0.80% |
Fair Value of Financial Instruments - Summary of Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Mortgages payable and notes payable | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value of long-term debt | $ 889,601 | $ 641,459 |
Mortgages payable and notes payable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value of long-term debt | 867,018 | 655,864 |
Senior notes and debentures | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value of long-term debt | 3,407,298 | 3,406,088 |
Senior notes and debentures | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value of long-term debt | $ 3,043,034 | $ 3,649,776 |
Fair Value Of Financial Instruments (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2022
USD ($)
agreement
|
Sep. 30, 2022
USD ($)
agreement
|
Dec. 31, 2021
USD ($)
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative Asset | $ 6,500 | $ 6,500 | |
Amount reclassified from other comprehensive income to interest expense | 100 | 300 | |
Accumulated other comprehensive income | One of our equity method investees | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Other comprehensive income | 200 | 900 | |
Fair Value, recurring | Interest rate swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative Asset | $ 6,508 | $ 6,508 | |
Derivative Liability | $ (1,511) | ||
Fair Value, recurring | Interest rate swap | One of our equity method investees | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Number of interest rate swap agreements | agreement | 2 | 2 | |
Mortgage payable | Hoboken | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Number of interest rate swap agreements | agreement | 2 | 2 | |
Notional amount of derivative | $ 55,400 | $ 55,400 | |
Fixed interest rate on derivative | 3.67% | 3.67% | |
Other comprehensive income | $ 2,600 | $ 8,000 | |
Secured Debt | Hoboken | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Mortgage payable | 55,400 | 55,400 | |
Fair Value, Inputs, Level 1 | Fair Value, recurring | Interest rate swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative Asset | 0 | 0 | |
Derivative Liability | 0 | ||
Fair Value, Inputs, Level 2 | Fair Value, recurring | Interest rate swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative Asset | 6,508 | 6,508 | |
Derivative Liability | (1,511) | ||
Fair Value, Inputs, Level 3 | Fair Value, recurring | Interest rate swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative Asset | $ 0 | $ 0 | |
Derivative Liability | $ 0 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jul. 13, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
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San Antonio Center | |||
Commitments [Line Items] | |||
Gain on tenant costs associated with property sold under threat of condemnation | $ 9.3 | $ 9.3 | |
Tenant settlement payments incurred | 2.9 | ||
Estimated Litigation Liability | $ 20.1 | $ 20.1 | |
Plaza El Segundo | Redeemable Noncontrolling Interests | |||
Commitments [Line Items] | |||
Redeemable noncontrolling interest purchased | 21.80% | ||
Payments for repurchase of redeemable noncontrolling interest | $ 23.6 | ||
Ownership interest subsequent to redemption | 100.00% | ||
downREIT OP units | |||
Commitments [Line Items] | |||
downREIT operating partnership units, outstanding | 652,233 | 652,233 | |
downREIT operating partnership units outstanding, fair value | $ 58.8 | $ 58.8 |
Shareholders' Equity (Summary of Dividends) (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||
Dividends | ||||||
Divdends declared per common share | $ 1.08 | $ 1.07 | $ 3.220 | $ 3.19 | ||
Dividends paid per common share | 3.210 | 3.180 | ||||
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 | ||||||
Dividends | ||||||
Dividends declared per preferred share | 1.016 | 1.016 | ||||
Dividends paid per preferred share | 1.016 | 1.016 | ||||
5.0% Series C Cumulative Redeemable Preferred Shares, (stated at liquidation preference $25,000 per share), 6,000 shares issued and outstanding | ||||||
Dividends | ||||||
Dividends declared per preferred share | [1] | 0.938 | 0.938 | |||
Dividends paid per preferred share | [1] | $ 0.938 | $ 0.938 | |||
|
Shareholders' Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 15, 2022 |
Sep. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Feb. 14, 2022 |
|
Class of Stock [Line Items] | |||||
Net proceeds from issuance of common shares | $ 292,671 | $ 87,279 | |||
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 | |||||
Class of Stock [Line Items] | |||||
Preferred shares converted | 7,018 | ||||
Common Shares | |||||
Class of Stock [Line Items] | |||||
Common shares issued upon conversion | 1,675 | ||||
At The Market Equity Program | |||||
Class of Stock [Line Items] | |||||
Aggregate offering price of common share | $ 500,000 | ||||
Shares issued | 296,843 | 296,843 | |||
Weighted Average Price Per Common Share | $ 112.11 | $ 112.11 | |||
Net proceeds from issuance of common shares | $ 32,900 | $ 32,900 | |||
Remaining capacity to issue | 466,700 | 466,700 | |||
At The Market Equity Program | Commissions | |||||
Class of Stock [Line Items] | |||||
Payments of Stock Issuance Costs | 300 | 300 | |||
At The Market Equity Program | Other Offering Costs | |||||
Class of Stock [Line Items] | |||||
Payments of Stock Issuance Costs | $ 100 | $ 100 | |||
Forward Sales Contracts | |||||
Class of Stock [Line Items] | |||||
Shares issued | 2,203,655 | ||||
Net proceeds from issuance of common shares | $ 259,400 |
Share-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | ||||
Grants of common shares, restricted stock units, and options | $ 3,579 | $ 3,367 | $ 11,258 | $ 10,874 |
Capitalized share-based compensation | (344) | (336) | (1,003) | (1,094) |
Share-based compensation expense | $ 3,235 | $ 3,031 | $ 10,255 | $ 9,780 |
Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Weighted average unvested shares outstanding | 300,000 | 300,000 | 300,000 | 300,000 | |
Federal Realty OP LP | |||||
Weighted average unvested units outstanding | 300,000 | 300,000 | 300,000 | 300,000 | |
5.417% Series 1 Cumulative Convertible Preferred Shares | |||||
Preferred shares, percentage | 5.417% | 5.417% | 5.417% | 5.417% | |
5.417% Series 1 Cumulative Convertible Preferred Units | |||||
Preferred units, percentage | 5.417% | 5.417% | 5.417% | ||
Stock Options | |||||
Anti-dilutive issuable shares | 682 | 682 | |||
Forward Sales Contracts | |||||
Anti-dilutive issuable shares | 900,000 | 1,800,000 | 1,700,000 | ||
Forward Sales Contracts | Federal Realty OP LP | |||||
Anti-dilutive issuable units | 900,000 | 1,800,000 | 1,700,000 | ||
Unvested restricted stock units | |||||
Anti-dilutive issuable shares | 10,441 | 10,441 | 10,441 | 10,441 |
Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Net income | $ 158,774 | $ 54,541 | $ 277,969 | $ 152,339 |
Less: Preferred share dividends | (2,008) | (2,010) | (6,026) | (6,031) |
Less: Income from operations attributable to noncontrolling interests | (2,636) | (2,419) | (8,171) | (5,777) |
Less: Earnings allocated to unvested shares | (535) | (309) | (935) | (901) |
Net income available for common shareholders, basic and diluted | $ 153,595 | $ 49,803 | $ 262,837 | $ 139,630 |
Weighted average common shares outstanding, basic | 80,765 | 77,485 | 79,480 | 77,269 |
Open forward contracts for share issuances | 0 | 90 | 1 | 18 |
DownREIT operating partnership units | 652 | 0 | 656 | 0 |
Weighted average common shares outstanding, diluted | 81,511 | 77,575 | 80,137 | 77,287 |
EARNINGS PER COMMON SHARE, BASIC: | ||||
Net income available for common shareholders | $ 1.90 | $ 0.64 | $ 3.31 | $ 1.81 |
EARNINGS PER COMMON SHARE, DILUTED: | ||||
Net income available for common shareholders | $ 1.89 | $ 0.64 | $ 3.31 | $ 1.81 |
5.417% Series 1 Cumulative Convertible Preferred Shares | ||||
5.417% Series 1 Cumulative Convertible Preferred Shares | 94 | 0 | 0 | 0 |
Federal Realty OP LP | ||||
Net income | $ 158,774 | $ 54,541 | $ 277,969 | $ 152,339 |
Less: Preferred unit distributions | (2,008) | (2,010) | (6,026) | (6,031) |
Less: Income from operations attributable to noncontrolling interests | (2,636) | (2,419) | (8,171) | (5,777) |
Less: Earnings allocated to unvested units | (535) | (309) | (935) | (901) |
Net income available to common unit holders, basic and diluted | $ 153,595 | $ 49,803 | $ 262,837 | $ 139,630 |
Weighted average common units outstanding, basic | 80,765 | 77,485 | 79,480 | 77,269 |
Common unit issuances relating to open common share forward contracts | 0 | 90 | 1 | 18 |
DownREIT operating partnership units | 652 | 0 | 656 | 0 |
Weighted average common units outstanding, diluted | 81,511 | 77,575 | 80,137 | 77,287 |
EARNINGS PER COMMON UNIT, BASIC: | ||||
Net income available for common shareholders | $ 1.90 | $ 0.64 | $ 3.31 | $ 1.81 |
EARNINGS PER COMMON UNIT, DILUTED: | ||||
Net income available for common unit holders | $ 1.89 | $ 0.64 | $ 3.31 | $ 1.81 |
Federal Realty OP LP | 5.417% Series 1 Cumulative Convertible Preferred Units | ||||
5.417% Series 1 Cumulative Convertible Preferred Units | 94 | 0 | 0 | 0 |
Subsequent Event (Details) ft² in Thousands, $ in Millions |
Oct. 06, 2022
USD ($)
ft²
|
Oct. 05, 2022
USD ($)
|
Apr. 01, 2022 |
Mar. 31, 2022 |
Sep. 30, 2022
USD ($)
|
---|---|---|---|---|---|
Revolving credit facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity under revolving credit facility | $ 1,000.0 | ||||
Basis spread | 0.825% | 0.775% | |||
Revolving credit facility | $ 267.0 | ||||
Unsecured term loan | |||||
Subsequent Event [Line Items] | |||||
Basis spread | 0.85% | 0.80% | |||
Subsequent Event | Two shopping centers in Chandler, Arizona | |||||
Subsequent Event [Line Items] | |||||
Ownership interest in joint venture | 47.50% | ||||
Square footage of real estate property | ft² | 617 | ||||
Purchase price of real estate acquisition | $ 58.9 | ||||
Mortgage loan on unconsolidated real estate properties | 76.1 | ||||
Our share of unconsolidated mortgage debt | $ 36.2 | ||||
Subsequent Event | Revolving credit facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity under revolving credit facility | $ 1,250.0 | ||||
Maximum borrowing capacity after option to increase credit facility | $ 1,750.0 | ||||
Subsequent Event | Revolving credit facility | SOFR | |||||
Subsequent Event [Line Items] | |||||
Spread adjustment on SOFR | 0.10% | ||||
Basis spread | 0.775% | ||||
Subsequent Event | Unsecured term loan | |||||
Subsequent Event [Line Items] | |||||
Additional borrowings | $ 300.0 | ||||
Other notes payable | $ 600.0 | ||||
Subsequent Event | Unsecured term loan | SOFR | |||||
Subsequent Event [Line Items] | |||||
Basis spread | 0.85% |
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