Federal Realty Investment Trust(US:FRT)2022-11-02 16:00Financial Performance - Net income for the three months ended September 30, 2022, was $158.8 million, compared to $54.5 million for the same period in 2021[76]. - Earnings per common share (diluted) for the nine months ended September 30, 2022, was $3.31, up from $1.81 in 2021[76]. - Dividends declared for common shares were $3.220 per share for the nine months ended September 30, 2022, compared to $3.190 for the same period in 2021[69]. Acquisitions and Sales - The company acquired properties during the nine months ended September 30, 2022, with a total gross value of $434.1 million, including Kingstowne Towne Center for $200 million, Hilton Village for $53.6 million, and The Shops at Pembroke Gardens for $180.5 million[55]. - The company sold one residential property and one retail property for total sales prices of $66.8 million, resulting in net gains of approximately $20.4 million[56]. - The company acquired a 21.8% redeemable noncontrolling interest in the Plaza El Segundo shopping center for $23.6 million, increasing its ownership to 100%[66]. - The company acquired a 47.5% interest in a joint venture for $58.9 million, which owns two shopping centers totaling 617,000 square feet[79]. Debt and Financing - As of September 30, 2022, the company had $889.6 million in mortgages and notes payable, with a fair value of $867.0 million[62]. - The maximum amount of borrowings under the company's $1.0 billion revolving credit facility was $330 million, with a weighted average interest rate of 3.4% for the three months ended September 30, 2022[59]. - The company amended its revolving credit facility, increasing the borrowing capacity from $1.0 billion to $1.25 billion on October 5, 2022[78]. - As of September 30, 2022, the company had $3.7 billion of fixed-rate debt outstanding, including $55.4 million of mortgage payables effectively fixed by interest rate swap agreements[189]. - The company had $567.0 million of variable rate debt outstanding as of September 30, 2022[190]. Cash and Liquidity - The company reported total cash, cash equivalents, and restricted cash of $158.6 million as of September 30, 2022, down from $175.2 million at December 31, 2021[54]. - The company has the remaining capacity to issue up to $466.7 million in common shares under its ATM equity program as of September 30, 2022[71]. - The company issued 296,843 common shares at a weighted average price of $112.11 for net cash proceeds of $32.9 million during the nine months ended September 30, 2022[71]. - The company settled forward sales agreements by issuing 2,203,655 common shares for net proceeds of $259.4 million during the nine months ended September 30, 2022[72]. Gains and Valuations - The company recognized a $70.4 million gain on deconsolidation of a variable interest entity (VIE) related to the Escondido Promenade transaction[57]. - The company recognized a gain of $9.3 million related to a reduction in liability for condemnation and transaction costs for the three and nine months ended September 30, 2022[67]. - A total of 652,233 downREIT operating partnership units are outstanding with a fair value of approximately $58.8 million as of September 30, 2022[68]. - The fair value of the company's interest rate swap agreements was an asset of $6.5 million as of September 30, 2022, reflecting an increase of $8.0 million for the nine months ended[62]. Interest Rate Sensitivity - If market interest rates had been 1.0% higher, the fair value of the fixed-rate debt instruments would have decreased by approximately $169.9 million[189]. - If market interest rates had been 1.0% lower, the fair value of the fixed-rate debt instruments would have increased by approximately $190.2 million[189]. - An increase of 1.0% in market interest rates would lead to an annual interest expense increase of approximately $5.7 million[190]. - A decrease of 1.0% in market interest rates would result in an annual interest expense decrease of approximately $5.7 million[190]. Compliance and Agreements - The company is in compliance with all default-related debt covenants as of September 30, 2022[61]. - As of September 30, 2022, the company executed rent deferral agreements totaling approximately $47 million, with $33 million subsequently collected[50].