FEDERAL REALTY INVESTMENT TRUSTFRT
FEDERAL REALTY INVESTMENT TRUST Debt Disclosure
DEBT
_____________________
The following is a summary of our total debt outstanding as of December 31, 2025 and 2024:
| Principal Balance as of December 31, | Stated Interest Rate as of | Stated Maturity Date as of | |||||||||||||||||||||||||||
| Description of Debt | 2025 | 2024 | December 31, 2025 | December 31, 2025 | |||||||||||||||||||||||||
| Mortgages payable | (Dollars in thousands) | ||||||||||||||||||||||||||||
| Bell Gardens | $ | 10,885 | $ | 11,215 | 4.06 | % | August 1, 2026 | ||||||||||||||||||||||
| Bethesda Row (1) | 200,000 | 200,000 | SOFR + 0.95% | December 28, 2026 | |||||||||||||||||||||||||
| Plaza El Segundo | 125,000 | 125,000 | 3.83 | % | June 5, 2027 | ||||||||||||||||||||||||
| The Grove at Shrewsbury (East) | 43,600 | 43,600 | 3.77 | % | September 1, 2027 | ||||||||||||||||||||||||
| Azalea (2)(3) | 55,000 | 40,000 | SOFR + 0.85% | October 30, 2028 | |||||||||||||||||||||||||
| Brook 35 | 11,500 | 11,500 | 4.65 | % | July 1, 2029 | ||||||||||||||||||||||||
| Hoboken (24 Buildings) (4) | 50,568 | 52,123 | SOFR + 1.95% | December 15, 2029 | |||||||||||||||||||||||||
| Various Hoboken (12 Buildings)(5) | 23,568 | 28,838 | Various | Various through 2029 | |||||||||||||||||||||||||
| Chelsea | 3,091 | 3,568 | 5.36 | % | January 15, 2031 | ||||||||||||||||||||||||
| Subtotal | 523,212 | 515,844 | |||||||||||||||||||||||||||
| Net unamortized debt issuance costs and discount | (1,453) | (1,466) | |||||||||||||||||||||||||||
| Total mortgages payable, net | 521,759 | 514,378 | |||||||||||||||||||||||||||
| Notes payable | |||||||||||||||||||||||||||||
| Revolving credit facility (2)(6) | 310,000 | — | SOFR + 0.775% | April 5, 2027 | |||||||||||||||||||||||||
| $750 million term loan (2)(6)(7) | 750,000 | 600,000 | SOFR + 0.85% | March 20, 2028 | |||||||||||||||||||||||||
| $250 million term loan (2)(6) | — | — | SOFR + 0.85% | January 31, 2031 | |||||||||||||||||||||||||
| Various | 1,190 | 1,680 | Various | Various through 2059 | |||||||||||||||||||||||||
| Subtotal | 1,061,190 | 601,680 | |||||||||||||||||||||||||||
| Net unamortized debt issuance costs | (3,859) | (266) | |||||||||||||||||||||||||||
| Total notes payable, net | 1,057,331 | 601,414 | |||||||||||||||||||||||||||
| Senior notes and debentures (6) | |||||||||||||||||||||||||||||
| 1.25% notes | 400,000 | 400,000 | 1.25 | % | February 15, 2026 | ||||||||||||||||||||||||
| 7.48% debentures | 29,200 | 29,200 | 7.48 | % | August 15, 2026 | ||||||||||||||||||||||||
| 3.25% notes | 475,000 | 475,000 | 3.25 | % | July 15, 2027 | ||||||||||||||||||||||||
| 6.82% medium term notes | 40,000 | 40,000 | 6.82 | % | August 1, 2027 | ||||||||||||||||||||||||
| 5.375% notes | 350,000 | 350,000 | 5.375 | % | May 1, 2028 | ||||||||||||||||||||||||
| 3.25% exchangeable notes | 485,000 | 485,000 | 3.25 | % | January 15, 2029 | ||||||||||||||||||||||||
| 3.20% notes | 400,000 | 400,000 | 3.20 | % | June 15, 2029 | ||||||||||||||||||||||||
| 3.50% notes | 400,000 | 400,000 | 3.50 | % | June 1, 2030 | ||||||||||||||||||||||||
| 4.50% notes | 550,000 | 550,000 | 4.50 | % | December 1, 2044 | ||||||||||||||||||||||||
| 3.625% notes | 250,000 | 250,000 | 3.625 | % | August 1, 2046 | ||||||||||||||||||||||||
| Subtotal | 3,379,200 | 3,379,200 | |||||||||||||||||||||||||||
| Net unamortized debt issuance costs and premium | (15,190) | (21,360) | |||||||||||||||||||||||||||
| Total senior notes and debentures, net | 3,364,010 | 3,357,840 | |||||||||||||||||||||||||||
| Total debt | $ | 4,943,100 | $ | 4,473,632 | |||||||||||||||||||||||||
(1)We have one one-year extension, at our option to extend the maturity date of this mortgage loan to December 28, 2027.
(2)Our Azalea mortgage loan, revolving credit facility SOFR loans, and our term loans bear interest at Daily Simple SOFR, as defined in the respective credit agreements, plus a spread, based on our current credit rating.
(3)The Operating Partnership is a co-borrower on this mortgage loan. Additionally, we have two one-year extensions, at our option to extend the maturity date of this mortgage loan to October 30, 2030.
(4)The interest rate on this mortgage loan is fixed at 3.67% through two interest rate swap agreements.
(5)The interest rates on these mortgages range from 3.91% to 5.00%.
(6)The Operating Partnership is the obligor under our revolving credit facility, term loans, and senior notes and debentures. A wholly owned subsidiary of the Operating Partnership is also an obligor of the $750.0 million term loan.
(7)The interest rate on $450.0 million of our term loan is fixed at a weighted average interest rate of 4.17% through March 1, 2028 through interest rate swap agreements.
On January 9, 2025 and October 1, 2025 we repaid two mortgage loans at our Hoboken property totaling $4.3 million,at par.
On March 20, 2025, we amended and restated our $600.0 million unsecured term loan, extending the maturity date to March 20, 2028, plus two one-year extensions, at our option. We also had the right to borrow up to an additional $150.0 million, which we exercised on September 22, 2025, bringing our total amount outstanding under this agreement to $750.0 million as of December 31, 2025. Debt issuance costs related to our term loan were $4.9 million. Under an accordion feature, we have the right to request additional loans, subject to an aggregate maximum of $1.0 billion borrowed under the restated agreement. Additionally, on May 1, 2025, the interest rate was reduced by removing the 0.10% adjustment to SOFR.
On October 30, 2025, we refinanced the $40.0 million mortgage loan at Azalea, with a new $55.0 million mortgage loan that bears interest at SOFR + 85 basis points, based on our credit rating, and matures on October 30, 2028, plus two one-year extensions, at our option. Debt issuance costs related to this mortgage loan were $0.6 million.
On November 17, 2025, we entered into an additional unsecured term loan agreement, which gives us the capacity to borrow up to $250.0 million at an interest rate of SOFR + 85 basis points, based on our current credit rating. The loan matures on January 31, 2031, and as of December 31, 2025, we do not have any outstanding borrowings under this agreement. Debt issuance costs related to this term loan were $1.5 million. Under an accordion feature, we have the right to request additional loans, subject to an aggregate maximum of $500.0 million.
On December 17, 2025, we exercised our first option to extend our $200.0 million mortgage loan at Bethesda Row by one year to December 28, 2026. We have one one-year extension, at our option remaining to extend the loan to December 28, 2027.
During 2025, 2024 and 2023, the maximum amount of borrowings outstanding under our revolving credit facility was $461.6 million, $202.7 million and $115.5 million, respectively. The weighted average amount of borrowings outstanding was $153.2 million, $33.5 million and $44.7 million, respectively, and the weighted average interest rate, before amortization of debt fees, was 5.0%, 6.1% and 5.9%, respectively. The revolving credit facility requires an annual facility fee which is $1.9 million under the amended credit agreement. At December 31, 2025, our revolving credit facility had $310.0 million outstanding, and had no balance outstanding at December 31, 2024. On October 30, 2025, the interest rate on our revolving credit facility was reduced by removing the 0.10% adjustment to SOFR.
Our revolving credit facility, term loans, and certain notes require us to comply with various financial covenants, including the maintenance of minimum shareholders’ equity and debt coverage ratios and a maximum ratio of debt to net worth. As of December 31, 2025, we were in compliance with all default related debt covenants.
Exchangeable Senior Notes
On January 11, 2024, our Operating Partnership issued $485.0 million aggregate principal amount of 3.25% Exchangeable Senior Notes due 2029 (the “Notes”) in a private placement. The notes bear interest at an annual rate of 3.25%, payable semiannually in arrears on January 15th and July 15th of each year, beginning July 15, 2024. The notes mature on January 15, 2029, unless earlier exchanged, purchased, or redeemed. Net proceeds after the initial purchaser's discount and offering costs were approximately $471.5 million. Interest expense related to these Notes was $18.5 million and $17.9 million, respectively for the years ended December 31, 2025 and 2024, and includes debt issuance cost amortization of $2.7 million and $2.6 million, respectively. Including the debt issuance cost amortization, the current effective interest rate on these notes is approximately 3.9%. The unamortized debt issuance costs related to the Notes were $8.2 million and $10.9 million, respectively, at December 31, 2025 and 2024.
Prior to the close of business on July 15, 2028, the Notes will be exchangeable at the option of the holders only upon certain circumstances and during certain periods. On or after July 15, 2028, until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes, holders may exchange their Notes at any time. The Operating Partnership will settle exchanges of the Notes by delivering cash up to the principal amount of the Notes exchanged, and if applicable, cash, common shares of the Trust, or a combination thereof at our option, in respect of the remainder, if any, of the exchange obligation in excess of the principal amount. If we elect to settle any portion of the exchange obligation in excess of the principal amount with shares of the Trust, an equivalent number of common units will be issued by the Operating Partnership to the Trust. The exchange rate initially equals 8.1436 common shares per $1,000 principal amount of the Notes (which is equivalent to an exchange price of approximately $122.80 per common share and reflects an exchange premium of approximately 20% based on the closing price of $102.33 on January 8, 2024). The initial exchange rate is subject to adjustment upon the occurrence of certain events, including in the event of a payment of a quarterly common dividend in excess
of $1.09 per share, but will not be adjusted for any accrued and unpaid interest. While our quarterly common dividend per share currently exceeds $1.09, the exchange rate has not materially changed.
The Operating Partnership may redeem the Notes, at its option, in whole or in part, on or after January 20, 2027 if the last reported sales price of the common shares has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 day consecutive trading period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Operating Partnership provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date.
In connection with the Notes, we entered into privately negotiated capped call transactions with certain of the initial purchasers of the notes or their affiliates or other financial institutions. The capped call transactions cover, subject to customary adjustments, the number of our common shares that initially underlie the Notes. The capped call transactions are expected generally to reduce the potential dilution to our common shares upon exchange of any Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Notes, with such reduction and/or offset subject to a cap. The cap price of the capped call transaction initially is approximately $143.26 per share, which represents a premium of approximately 40% over the last reported sale price of our common shares of $102.33 on the New York Stock Exchange on January 8, 2024, and is subject to certain adjustments under the terms of the capped call transactions. A portion of the proceeds from the Notes were used to pay the capped call premium of $19.4 million, which was recorded in shareholders' equity for the Trust and capital for the Operating Partnership.
Scheduled principal payments on mortgages payable, notes payable, senior notes and debentures as of December 31, 2025 are as follows:
| Mortgages Payable | Notes Payable | Senior Notes and Debentures | Total Principal | ||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Year ending December 31, | |||||||||||||||||||||||||||||||||||
| 2026 | $ | 226,242 | (1) | $ | 153 | $ | 429,200 | $ | 655,595 | ||||||||||||||||||||||||||
| 2027 | 178,282 | 310,037 | (2) | 515,000 | 1,003,319 | ||||||||||||||||||||||||||||||
| 2028 | 57,511 | (3) | 750,000 | (4) | 350,000 | 1,157,511 | |||||||||||||||||||||||||||||
| 2029 | 60,434 | — | 885,000 | 945,434 | |||||||||||||||||||||||||||||||
| 2030 | 684 | — | 400,000 | 400,684 | |||||||||||||||||||||||||||||||
| Thereafter | 59 | 1,000 | 800,000 | 801,059 | |||||||||||||||||||||||||||||||
| $ | 523,212 | $ | 1,061,190 | $ | 3,379,200 | $ | 4,963,602 | (5) | |||||||||||||||||||||||||||
_____________________
(1)Our $200.0 mortgage loan secured by Bethesda Row matures on December 28, 2026 plus one one-year extension, at our option to December 28, 2027.
(2)Our $1.25 billion revolving credit facility matures on April 5, 2027 plus two six-month extensions, at our option to April 5, 2028. As of December 31, 2025, there was $310.0 million outstanding under this credit facility.
(3)Our $55.0 million mortgage loan secured by Azalea matures on October 30, 2028, plus two one-year extensions at our option to October 30, 2030.
(4)Our $750.0 million term loan matures on March 20, 2028, plus two one-year extension at our option to March 20, 2030.
(5)The total debt maturities differ from the total reported on the consolidated balance sheet due to the unamortized net debt issuance costs and premium/discount on mortgage loans, notes payable, and senior notes as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 10, 2020 | |
| 2018 | Feb 13, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 13, 2017 | |
| 2015 | Feb 9, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.