What Federal Realty Investment Trust reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
As of December 31, 2025, we owned or had a majority ownership interest in community and neighborhood shopping centers and mixed-used properties which are operated as 104 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet. These properties are located primarily in major coastal markets and select underserved markets that we believe have strong economic and demographic fundamentals. No single commercial or residential property accounted for over 10% of our 2025 total revenue. We believe that our properties are adequately covered by commercial general liability, fire, flood, earthquake, terrorism and business interruption insurance provided by reputable companies, with commercially reasonable exclusions, deductibles and limits.
The rest of Item 2
Tenant Diversification
As of December 31, 2025, we had approximately 3,700 commercial leases and 2,700 residential leases, with commercial tenants ranging from sole proprietors to major national and international retailers. No one tenant or affiliated group of tenants accounted for more than 2.4% of our annualized base rent as of December 31, 2025. As a result of our tenant diversification, we
believe our exposure to any one bankruptcy filing has not been and will not be significant, however, multiple filings by a number of tenants could have a significant impact.
Geographic Diversification
Our 104 real estate projects are located in 14 states and the District of Columbia. The following table shows the number of projects, the gross leasable area (“GLA”) of commercial space and the percentage of total portfolio gross leasable area of commercial space in each state as of December 31, 2025.
State · Number ofProjects · Gross LeasableArea · Percentageof GrossLeasableArea
(In square feet)
California · 20 · 7,169,000 · 24.9
Maryland · 18 · 5,085,000 · 17.7
Virginia · 20 · 4,766,000 · 16.5
Massachusetts · 7 · 2,249,000 · 7.8
New Jersey · 7 · 1,886,000 · 6.5
Pennsylvania · 9 · 1,786,000 · 6.2
New York · 7 · 1,494,000 · 5.2
Florida · 4 · 1,287,000 · 4.5
Arizona · 2 · 908,000 · 3.2
Illinois · 4 · 778,000 · 2.7
Kansas · 1 · 552,000 · 1.9
Nebraska · 1 · 452,000 · 1.6
Michigan · 1 · 205,000 · 0.7
Connecticut · 2 · 156,000 · 0.5
District of Columbia · 1 · 25,000 · 0.1
Total · 104 · 28,798,000 · 100.0
Leases, Lease Terms and Lease Expirations
Our leases are classified as operating leases and typically are structured to require the monthly payment of minimum rents in advance, subject to periodic increases during the term of the lease, percentage rents based on the level of sales achieved by tenants, and reimbursement of a majority of on-site operating expenses and real estate taxes. These features in our leases generally reduce our exposure to higher costs and allow us to participate in improved tenant sales.
Commercial property leases generally range from three to ten years; however, certain leases, primarily with anchor tenants, may be longer. Many of our leases contain tenant options that enable the tenant to extend the term of the lease at expiration at pre-established rental rates that often include fixed rent increases, consumer price index adjustments or other market rate adjustments from the prior base rent. Leases on residential units are generally for a period of one year or less and, in 2025, represented approximately 8.7% of total rental income.
The following table sets forth the schedule of lease expirations for our commercial leases in place as of December 31, 2025 for each of the 10 years beginning with 2026 and after 2035 in the aggregate assuming that none of the tenants exercise future renewal options. Annualized base rents reflect in-place contractual rents as of December 31, 2025.
Year of Lease Expiration · LeasedSquareFootageExpiring · Percentage ofLeased SquareFootageExpiring · AnnualizedBase RentRepresented byExpiring Leases · Percentage of Annualized Base Rent Represented by Expiring Leases
2026 · 1,859,000 · 7 · 51,872,000 · 6
2027 · 3,016,000 · 11 · 101,069,000 · 11
2028 · 3,300,000 · 12 · 99,794,000 · 11
2029 · 3,726,000 · 14 · 127,878,000 · 14
2030 · 2,879,000 · 11 · 94,113,000 · 11
2031 · 2,197,000 · 8 · 76,161,000 · 9
2032 · 2,572,000 · 9 · 90,735,000 · 10
2033 · 1,607,000 · 6 · 54,261,000 · 6
2034 · 1,403,000 · 5 · 44,586,000 · 5
2035 · 1,886,000 · 7 · 67,991,000 · 8
Thereafter · 2,650,000 · 10 · 79,917,000 · 9
Total · 27,095,000 · 100 · 888,377,000 · 100
During 2025, we signed leases for a total of 2,471,000 square feet of retail space including 2,340,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 15% on a cash basis. New leases for comparable spaces were signed for 841,000 square feet at an average rental increase of 19% on a cash basis. Renewals for comparable spaces were signed for 1,499,000 square feet at an average rental increase of 12% on a cash basis. Tenant improvements and incentives for comparable spaces were $23.18 per square foot, of which, $53.34 per square foot was for new leases and $6.26 per square foot was for renewals in 2025.
During 2024, we signed leases for a total of 2,434,000 square feet of retail space including 2,392,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 11% on a cash basis. New leases for comparable spaces were signed for 979,000 square feet at an average rental increase of 15% on a cash basis. Renewals for comparable spaces were signed for 1,413,000 square feet at an average rental increase of 8% on a cash basis. Tenant improvements and incentives for comparable spaces were $26.03 per square foot, of which, $58.91 per square foot was for new leases and $3.25 per square foot was for renewals in 2024.
