Sector: Real Estate|Industry: REIT - Retail|Market Cap: $9.12B|Employees: 304
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,500 tenants, in 27 million commercial square feet, and approximately 3,100 residential units.
Total property revenue increased from $280.7 million to $296.1 million, driven by higher rental rates and occupancy increases in non-comparable properties. This indicates a healthy demand for the company's properties and effective management of its portfolio.
Operating income increased from $101.8 million to $157.0 million, primarily due to a gain on the sale of real estate, higher rental rates, and increased occupancy in non-comparable properties. This demonstrates improved profitability and efficient management of assets.
Interest expense increased from $42.9 million to $44.3 million due to a higher overall weighted average borrowing rate. This could potentially impact future profitability if interest rates continue to rise.