FEDERAL REALTY INVESTMENT TRUSTFRT

FEDERAL REALTY INVESTMENT TRUST Earnings Per Share Disclosure

10-KFiled Feb 12, 20263 min read
EARNINGS PER SHARE AND UNIT
We have calculated earnings per share (“EPS”) and earnings per unit ("EPU") under the two-class method. The two-class method is an earnings allocation methodology whereby EPS and EPU for each class of common stock and partnership units, respectively, and participating securities is calculated according to dividends or distributions declared and participation rights in undistributed earnings. For 2025, 2024, and 2023, we had 0.3 million weighted average unvested shares and units outstanding, which are considered participating securities. Therefore, we have allocated our earnings for basic and diluted EPS and EPU between common shares and units and unvested shares and units; the portion of earnings allocated to the unvested shares and units is reflected as “earnings allocated to unvested shares” or "earnings allocated to unvested units" in the reconciliation below.
The following potentially issuable shares were excluded from the diluted EPS and EPU calculations because their impact is anti-dilutive:
•exercise of 1,190 stock options in both 2025 and 2024 and 1,829 stock options in 2023,
•shares issuable upon the assumed redemption of outstanding downREIT operating partnership units for 2024, and 2023
•5.417% Series 1 Cumulative Convertible Preferred Shares and units for 2025, 2024, and 2023, and
•the issuance of 1.2 million shares and units issuable under common share forward sales agreements in 2024.
Potentially issuable shares and units in exchange for the 3.25% Exchangeable Senior Notes due 2029 for both 2025 and 2024, did not have a dilutive effect on the diluted EPS and EPU calculations.
Additionally, 7,204 unvested restricted stock shares and units are included in the diluted EPS and EPU calculations for 2024, as certain market based performance criteria in the award was achieved as of December 31, 2024.
Federal Realty Investment Trust Earnings per Share
Year Ended December 31,
 202520242023
 (In thousands, except per share data)
NUMERATOR
Net income$423,648 $304,334 $247,217 
Less: Preferred share dividends(8,032)(8,032)(8,032)
Less: Income from operations attributable to noncontrolling interests(12,571)(9,126)(10,232)
Less: Earnings allocated to unvested shares(1,342)(1,283)(1,286)
Net income available for common shareholders, basic401,703 285,893 227,667 
Add: Income attributable to downREIT operating partnership units2,455 — — 
Net income available for common shareholders, diluted$404,158 $285,893 $227,667 
DENOMINATOR
Weighted average common shares outstanding—basic85,852 83,559 81,313 
Effect of dilutive securities:
Unvested performance shares— 7 — 
DownREIT operating partnership units553 — — 
Weighted average common shares outstanding—diluted86,405 83,566 81,313 
EARNINGS PER COMMON SHARE, BASIC AND DILUTED
Net income available for common shareholders$4.68 $3.42 $2.80 
Federal Realty OP LP Earnings per Unit
Year Ended December 31,
 202520242023
 (In thousands, except per unit data)
NUMERATOR
Net income$423,648 $304,334 $247,217 
Less: Preferred unit distributions(8,032)(8,032)(8,032)
Less: Income from operations attributable to noncontrolling interests(12,571)(9,126)(10,232)
Less: Earnings allocated to unvested units(1,342)(1,283)(1,286)
Net income available for common unit holders, basic401,703 285,893 227,667 
Add: Income attributable to downREIT operating partnership units2,455 — — 
Net income available for common unit holders, diluted$404,158 $285,893 $227,667 
DENOMINATOR
Weighted average common units outstanding—basic85,852 83,559 81,313 
Effect of dilutive securities:
Unvested performance units— 7 — 
DownREIT operating partnership units553 — — 
Weighted average common units outstanding—diluted86,405 83,566 81,313 
EARNINGS PER COMMON UNIT, BASIC AND DILUTED
Net income available for common unit holders$4.68 $3.42 $2.80 
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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 12, 2024
2022Feb 8, 2023
2021Feb 10, 2022
2020Feb 11, 2021
2019Feb 10, 2020
2018Feb 13, 2019
2017Feb 13, 2018
2016Feb 13, 2017
2015Feb 9, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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