FEDERAL REALTY INVESTMENT TRUST

Previous wording

As of June 30, 2026, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 103 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet. In total, the real estate projects were 96.1% leased and 93.8% occupied at June 30, 2026.

Current wording

As of September 30, 2026, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 102 predominantly retail real estate projects comprising approximately 28.8 million commercial square feet. In total, the real estate projects were 96.5% leased and 93.8% occupied at September 30, 2026.

Previous wording

Significant uncertainty continues within the macro-economic and political environment including inflation risk, changes in interest rates, geopolitical instability, changes in tariffs and their impact on trade and prices, increases or decreases in federal and state government spending, and potentially worsening economic conditions, which presents risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy. We believe the actions we have taken to maintain a strong financial position and reinforce our liquidity will continue to mitigate the negative short term impacts of the current environment. The extent of the future effects on our business, results of operations, cash flows, and growth strategies is highly uncertain and will ultimately depend on future developments, none of which can be predicted.

Current wording

Significant uncertainty continues within the macro-economic and political environment including elevated inflation and interest rates, geopolitical instability, changes in tariffs and their impact on trade and prices, increases or decreases in federal and state government spending, and potentially worsening economic conditions, which presents risks for our business and tenants. We continue to monitor and address risks related to the general state of the economy. We believe the actions we have taken to maintain a strong financial position and reinforce our liquidity will continue to mitigate the negative short-term impacts of the current environment. The extent of the future effects on our business, results of operations, cash flows, and growth strategies is highly uncertain and will ultimately depend on future developments, none of which can be predicted.

Previous wording

During the six months ended June 30, 2026, we sold a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, and a building at our CocoWalk property for a combined sales price of $224.6 million, resulting in a net gain of $112.8 million.

Current wording

During the nine months ended September 30, 2026, we sold a residential building at our Santana Row property, our Barcroft Plaza property, our Courthouse Center property, a building at our CocoWalk property, and our North Dartmouth property for a combined sales price of $227.1 million, resulting in a net gain of $113.3 million.

Previous wording

On February 19, 2026 we borrowed $250.0 million under the unsecured term loan agreement that we entered into on November 17, 2025. See Note 5 of our Annual Report on Form 10-K for the year ended December 31, 2025 for additional details regarding this term loan.

Current wording

On February 19, 2026, we borrowed $250.0 million under the unsecured term loan agreement that we entered into on November 17, 2025. See Note 5 to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional details regarding this term loan.

Previous wording

During the six months ended June 30, 2026, the maximum amount of borrowings outstanding under our revolving credit facility was $699.5 million. The weighted average amount of borrowings outstanding was $378.3 million and the weighted average interest rate, before amortization of debt fees, was 4.4% for the six months ended June 30, 2026. At June 30, 2026, our revolving credit facility had $286.2 million outstanding.

Current wording

During the nine months ended September 30, 2026, the maximum amount of borrowings outstanding under our revolving credit facility was $699.5 million. The weighted average amount of borrowings outstanding was $298.6 million and the weighted average interest rate, before amortization of debt fees, was 4.4% for the nine months ended September 30, 2026. At September 30, 2026, our revolving credit facility had no balance outstanding.

Previous wording

Certain external and internal costs directly related to the development, redevelopment and leasing of real estate, including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved, are capitalized. We capitalized certain external and internal costs related to both development and redevelopment activities of $75 million and $4 million, respectively for both the six months ended June 30, 2026 and 2025. We capitalized external and internal costs related to other property improvements of $51 million and $3 million, respectively, for the six months ended June 30, 2026, and $51 million and $2 million, respectively, for the six months ended June 30, 2025. We capitalized external and internal costs related to leasing activities of $9 million and $3 million, respectively, for the six months ended June 30, 2026, and $11 million and $2 million, respectively, for the six months ended June 30, 2025. The amount of capitalized internal costs for salaries and related benefits for development and redevelopment activities, other property improvements, and leasing activities were $4 million, $2 million, and $3 million, respectively, for the six months ended June 30, 2026, and $4 million, $2 million, and $2 million, respectively, for the three months ended June 30, 2025. Total capitalized costs were $145 million for both the six months ended June 30, 2026 and 2025.

Current wording

Certain external and internal costs directly related to the development, redevelopment and leasing of real estate, including pre-construction costs, real estate taxes, insurance, construction costs and salaries and related costs of personnel directly involved, are capitalized. We capitalized certain external and internal costs related to both development and redevelopment activities of $128 million and $6 million, respectively, for the nine months ended September 30, 2026, and $121 million and $6 million for the nine months ended September 30, 2025. We capitalized external and internal costs related to other property improvements of $80 million and $4 million, respectively, for the nine months ended September 30, 2026, and $72 million and $4 million, respectively, for the nine months ended September 30, 2025. We capitalized external and internal costs related to leasing activities of $12 million and $4 million, respectively, for the nine months ended September 30, 2026, and $15 million and $3 million, respectively, for the nine months ended September 30, 2025. The amount of capitalized internal costs for salaries and related benefits for development and redevelopment activities, other property improvements, and leasing activities were $6 million, $3 million, and $4 million, respectively, for the nine months ended September 30, 2026, and $6 million, $3 million, and $3 million, respectively, for the nine months ended September 30, 2025. Total capitalized costs were $234 million and $220 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Our comparable property growth is primarily driven by increases in rental rates on new leases and lease renewals, changes in portfolio occupancy, and the redevelopment of those assets. Over the long-term, the infill nature and strong demographics of our properties provide a strategic advantage allowing us to maintain relatively high occupancy and generally increase rental rates. We continue to experience strong demand for our commercial space as evidenced by the 2.8 million square feet of comparable space leasing we've completed in the last twelve months, and the 2.3% spread between our leased rate of 96.1% and our occupied rate of 93.8%. However, the effects of inflationary pressures and elevated interest rates continue to negatively impact our business with the largest impacts being higher interest costs, increased material costs, and higher operating costs. Additionally, significant impacts from tariffs or supply chain disruptions could also result in extended time frames and/or increased costs for completion of our projects and tenant build-outs, which could delay the commencement of rent payments under new leases. Similarly, if our tenants experience unexpected impacts of tariffs supporting their own products, staffing issues due to labor shortages, significant disruptions in supply chains, or are otherwise impacted by worsening economic conditions, their ability to pay rent may be adversely affected. We continue to monitor these macroeconomic developments and are working with our tenants and our vendors to limit the overall impact to our business.

Current wording

Our comparable property growth is primarily driven by increases in rental rates on new leases and lease renewals, changes in portfolio occupancy, and the redevelopment of those assets. Over the long-term, the infill nature and strong demographics of our properties provide a strategic advantage allowing us to maintain relatively high occupancy and generally increase rental rates. We continue to experience strong demand for our commercial space as evidenced by the 2.6 million square feet of comparable space leasing we've completed in the last twelve months, and the 2.7% spread between our leased rate of 96.5% and our occupied rate of 93.8%. However, the effects of inflationary pressures and elevated interest rates continue to negatively impact our business with the largest impacts being higher interest costs, increased material costs, and higher operating costs. Additionally, significant impacts from tariffs or supply chain disruptions could also result in extended time frames and/or increased costs for completion of our projects and tenant build-outs, which could delay the commencement of rent payments under new leases. Similarly, if our tenants experience unexpected impacts of tariffs supporting their own products, staffing issues due to labor shortages, significant disruptions in supply chains, or are otherwise impacted by worsening economic conditions, their ability to pay rent may be adversely affected. We continue to monitor these macroeconomic developments and are working with our tenants and our vendors to limit the overall impact to our business.

Previous wording

We believe the locations and nature of our centers and diverse tenant base partially mitigates any potential negative changes in the economic environment. However, any significant reduction in our tenants' abilities to pay base rent, percentage rent or other charges, will adversely affect our financial condition and results of operations. We seek to maintain a mix of strong national, regional, and local retailers.

Current wording

We believe the locations and nature of our centers and diverse tenant base partially mitigate any potential negative changes in the economic environment. However, any significant reduction in our tenants' abilities to pay base rent, percentage rent or other charges will adversely affect our financial condition and results of operations. We seek to maintain a mix of strong national, regional, and local retailers.

Previous wording

The above includes our best estimates based on information currently known, however, the completion of construction, final costs, and the timing of leasing and openings may be further impacted by the current environment including the duration and severity of the economic impacts of broader, as well as local, economic conditions, inflation, tariffs, higher interest rates, and higher operating costs.

Current wording

The above includes our best estimates based on information currently known, however, the completion of construction, final costs, and the timing of leasing and openings may be further impacted by the current environment including the duration and severity of the economic impacts of broader, as well as local, economic conditions, higher interest rates, inflation, tariffs, and higher operating costs.

Previous wording

At June 30, 2026, the leasable commercial square feet in our properties was 96.1% leased and 93.8% occupied. The leased rate is higher than the occupied rate due to leased spaces that are being redeveloped or improved or that are awaiting permits and, therefore, are not yet ready to be occupied. Our occupancy and leased rates are subject to variability over time due to factors including acquisitions, the timing of the start and stabilization of our redevelopment projects, lease expirations and tenant closings and bankruptcies.

Current wording

At September 30, 2026, the leasable commercial square feet in our properties was 96.5% leased and 93.8% occupied. The leased rate is higher than the occupied rate due to leased spaces that are being redeveloped or improved or that are awaiting permits and, therefore, are not yet ready to be occupied. Our occupancy and leased rates are subject to variability over time due to factors including acquisitions, the timing of the start and stabilization of our redevelopment projects, lease expirations and tenant closings and bankruptcies.

Previous wording

For the second quarter of 2026, we signed leases for a total of 852,000 square feet of retail space including 819,000 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 376,000 square feet, with an average rental increase of 34% on a cash basis. Renewals for comparable spaces were signed for 444,000 square feet at a 5% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $27.04 per square foot, of which $57.52 per square foot was for new leases and $1.23 per square foot was for renewals for the three months ended June 30, 2026.

Current wording

For the third quarter of 2026, we signed leases for a total of 590,000 square feet of retail space including 532,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 14% on a cash basis. New leases for comparable spaces were signed for 323,000 square feet, with an average rental increase of 20% on a cash basis. Renewals for comparable spaces were signed for 210,000 square feet at a 7% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $36.35 per square foot, of which $58.37 per square foot was for new leases and $2.44 per square foot was for renewals for the three months ended September 30, 2026.

Previous wording

For the six months ended June 30, 2026, we signed leases for a total of 1,513,000 square feet of retail space including 1,468,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 14% on a cash basis. New leases for comparable spaces were signed for 618,000 square feet, with an average rental increase of 30% on a cash basis. Renewals for comparable spaces were signed for 850,000 square feet at a 5% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $24.81 per square foot, of which $56.86 per square foot was for new leases and $1.48 per square foot was for renewals for the six months ended June 30, 2026.

Current wording

For the nine months ended September 30, 2026, we signed leases for a total of 2,103,000 square feet of retail space including 2,001,000 square feet of comparable space leases (leases for which there was a prior tenant) at an average rental increase of 14% on a cash basis. New leases for comparable spaces were signed for 941,000 square feet, with an average rental increase of 26% on a cash basis. Renewals for comparable spaces were signed for 1,059,000 square feet at a 6% average rental increase on a cash basis. Tenant improvements and incentives for comparable spaces were $27.88 per square foot, of which $57.38 per square foot was for new leases and $1.67 per square foot was for renewals for the nine months ended September 30, 2026.

Previous wording

The rental increases associated with comparable spaces generally include all leases signed for retail space in arms-length transactions reflecting market leverage between landlords and tenants during the period, excluding leases at properties sold or under contract to be sold. The comparison between the rent for expiring leases and new leases is determined by including contractual rent on the expiring lease, including percentage rent considered to part of base rent, and the comparable annual rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgment as to how to most effectively reflect the comparability of spaces reported in this calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, capital investment made in the space and the specific lease structure. Tenant improvements and incentives include the total dollars committed for the improvement (fit out) of a space as it relates to a specific lease. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements. Costs related to tenant improvements require judgment by management in determining what are costs specific to the tenant and not deferred maintenance on the space.

Current wording

The rental increases associated with comparable spaces generally include all leases signed for retail space in arm's-length transactions reflecting market leverage between landlords and tenants during the period, excluding leases at properties sold or under contract to be sold. The comparison between the rent for expiring leases and new leases is determined by including contractual rent on the expiring lease, including percentage rent considered to be part of base rent, and the comparable annual rent and in some instances, projections of percentage rent, to be paid on the new lease. In atypical circumstances, management may exercise judgment as to how to most effectively reflect the comparability of spaces reported in this calculation. The change in rental income on comparable space leases is impacted by numerous factors including current market rates, location, individual tenant creditworthiness, use of space, market conditions when the expiring lease was signed, capital investment made in the space and the specific lease structure. Tenant improvements and incentives include the total dollars committed for the improvement (fit out) of a space as it relates to a specific lease. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements. Costs related to tenant improvements require judgment by management in determining what are costs specific to the tenant and not deferred maintenance on the space.

Previous wording

In the past four years, we have executed comparable space leases for 2.0 to 2.4 million square feet of retail space each year and expect the volume in 2026 will be in line with these historical averages. Although we expect overall positive increases in annual rent for comparable spaces, changes in annual rent for any individual lease or combinations of individual leases reported in any particular period may be positive or negative and we can provide no assurance that the annual rents on comparable space leases will continue to increase at historical levels, if at all. A decline in current economic conditions could adversely impact our volume of leasing activity and the amount of rent we are able to charge to new or renewing tenants.

Current wording

In the past four years, we have executed comparable space leases for 2.0 to 2.4 million square feet of retail space each year and expect the volume in 2026 will be at the high end or above these historical averages. Although we expect overall positive increases in annual rent for comparable spaces, changes in annual rent for any individual lease or combinations of individual leases reported in any particular period may be positive or negative and we can provide no assurance that the annual rents on comparable space leases will continue to increase at historical levels, if at all. A decline in current economic conditions could adversely impact our volume of leasing activity and the amount of rent we are able to charge to new or renewing tenants.

Previous wording

Throughout this section, we have provided certain information on a “comparable property” basis. Information provided on a comparable property basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties that are currently under development or are being repositioned for significant redevelopment and investment. For the three and six months ended June 30, 2026, all or a portion of 96 properties and 95 properties, respectively, were considered comparable properties and seven properties were considered non-comparable properties. For the six months ended June 30, 2026, two properties and two portions of properties were removed from comparable properties, as they were sold; all compared to the designations as of December 31, 2025. While there is judgment surrounding changes in designations, we typically move non-comparable properties to comparable properties once they have stabilized, which is typically considered 90% physical occupancy or when the growth expected from the redevelopment has been included in the comparable periods. We typically remove properties from comparable properties when the repositioning of the asset has commenced and has or is expected to have a significant impact on property operating income within the calendar year. Acquisitions are moved to comparable properties once we have owned the property for the entirety of comparable periods and the property is not under development or being repositioned for significant redevelopment and investment.

Current wording

Throughout this section, we have provided certain information on a “comparable property” basis. Information provided on a comparable property basis includes the results of properties that we owned and operated for the entirety of both periods being compared except for properties that are currently under development or are being repositioned for significant redevelopment and investment. For the three and nine months ended September 30, 2026, all or a portion of 96 properties and 94 properties, respectively, were considered comparable properties and seven properties were considered non-comparable properties. For the nine months ended September 30, 2026, three properties and two portions of properties were removed from comparable properties, as they were sold; all compared to the designations as of December 31, 2025. While there is judgment surrounding changes in designations, we typically move non-comparable properties to comparable properties once they have stabilized, which is typically considered 90% physical occupancy or when the growth expected from the redevelopment has been included in the comparable periods. We typically remove properties from comparable properties when the repositioning of the asset has commenced and has or is expected to have a significant impact on property operating income within the calendar year. Acquisitions are moved to comparable properties once we have owned the property for the entirety of comparable periods and the property is not under development or being repositioned for significant redevelopment and investment.

Previous wording

Total property revenue increased $24.2 million, or 7.8%, to $335.7 million in the three months ended June 30, 2026 compared to $311.5 million in the three months ended June 30, 2025. The percentage occupied at our shopping centers was 93.8% and 93.6% at June 30, 2026 and 2025, respectively. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments. Other property income includes revenue for our Pike & Rose hotel, parking income, and other incidental income from our properties. The increase in property revenue is due primarily to the following:

Current wording

Total property revenue increased $16.8 million, or 5.2%, to $339.0 million in the three months ended September 30, 2026 compared to $322.3 million in the three months ended September 30, 2025. The percentage occupied at our shopping centers was 93.8% at both September 30, 2026 and 2025. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments. Other property income includes revenue for our Pike & Rose hotel, parking income, and other incidental income from our properties. The increase in property revenue is due primarily to the following:

Previous wording

•an increase of $22.1 million from comparable properties primarily related to higher rental rates of approximately $7.8 million, a $5.5 million increase in lease termination fee income, a $4.9 million increase in recoveries from tenants on higher occupancy and expenses, a $2.5 million increase in parking income, and higher average occupancy of approximately $2.4 million, and

Current wording

•an increase of $6.4 million from comparable properties primarily related to higher rental rates of approximately $2.7 million, a $2.1 million increase in recoveries from tenants on higher occupancy and expenses, higher average occupancy of approximately $1.8 million, and a $1.1 million increase in parking income, partially offset by a $0.9 million decrease in lease termination fee income, and

Previous wording

Total property expenses increased $5.3 million, or 5.4%, to $103.6 million in the three months ended June 30, 2026 compared to $98.3 million in the three months ended June 30, 2025. Changes in the components of property expenses are discussed below.

Current wording

Total property expenses increased $3.5 million, or 3.3%, to $109.1 million in the three months ended September 30, 2026 compared to $105.7 million in the three months ended September 30, 2025. Changes in the components of property expenses are discussed below.

Previous wording

•an increase of $1.6 million from non-comparable properties due primarily to openings at Pike & Rose Phase IV and Santana West, and

Current wording

•an increase of $1.4 million from non-comparable properties due primarily to openings at Santana West and the residential building at Bala Cynwyd on City Avenue, and

Previous wording

As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income decreased to 19.8% in the three months ended June 30, 2026 from 20.4% in the three months ended June 30, 2025.

Current wording

As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income decreased to 21.0% in the three months ended September 30, 2026 from 21.5% in the three months ended September 30, 2025.

Previous wording

Real estate tax expense increased $2.4 million, or 6.5%, to $39.1 million in the three months ended June 30, 2026 compared to $36.7 million in the three months ended June 30, 2025. This increase is primarily due to the following:

Current wording

Real estate tax expense increased $1.6 million, or 4.3%, to $39.8 million in the three months ended September 30, 2026 compared to $38.2 million in the three months ended September 30, 2025. This increase is primarily due to the following:

Previous wording

•an increase of $1.8 million from comparable properties due primarily to higher assessments, and

Current wording

•an increase of $1.4 million from comparable properties due primarily to higher assessments, and

Previous wording

Property operating income increased $18.9 million, or 8.9%, to $232.1 million in the three months ended June 30, 2026 compared to $213.2 million in the three months ended June 30, 2025. This increase is primarily driven by acquisitions, openings at Santana West and Pike & Rose Phase IV, and higher rental rates and average occupancy, partially offset by property dispositions.

Current wording

Property operating income increased $13.3 million, or 6.1%, to $229.9 million in the three months ended September 30, 2026 compared to $216.6 million in the three months ended September 30, 2025. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, and openings at Santana West and Pike & Rose Phase IV, partially offset by property dispositions.

Previous wording

General and administrative expense increased $1.5 million, or 13.0%, to $13.5 million in the three months ended June 30, 2026 compared to $11.9 million in the three months ended June 30, 2025. This increase is due primarily to higher personnel related costs.

Current wording

General and administrative expense increased $1.6 million, or 13.8%, to $13.3 million in the three months ended September 30, 2026 compared to $11.6 million in the three months ended September 30, 2025. This increase is due primarily to higher personnel related costs.

Previous wording

•an increase of $7.7 million due to higher weighted average borrowings,

Current wording

•an increase of $1.4 million due to higher weighted average borrowings, and

Previous wording

•an increase of $2.1 million due to a higher overall weighted average borrowing rate.

Current wording

•an increase of $1.0 million due to a higher overall weighted average borrowing rate,

Previous wording

Gross interest costs were $52.7 million and $47.6 million in the three months ended June 30, 2026 and 2025, respectively. Capitalized interest was $2.7 million and $3.0 million for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Gross interest costs were $52.5 million and $50.2 million in the three months ended September 30, 2026 and 2025, respectively. Capitalized interest was $2.8 million and $2.5 million for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

(1)Property operating income is a non-GAAP measure that consists of total property revenue, less rental expenses and real estate taxes. This measure is used internally to evaluate the performance of property operations and we consider it to be a significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of operating income to property operating income for the six months ended June 30, 2026 and 2025 is as follows:

Current wording

(1)Property operating income is a non-GAAP measure that consists of total property revenue, less rental expenses and real estate taxes. This measure is used internally to evaluate the performance of property operations and we consider it to be a significant measure. Property operating income should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP. The reconciliation of operating income to property operating income for the nine months ended September 30, 2026 and 2025 is as follows:

Previous wording

Total property revenue increased $56.1 million, or 9.0%, to $676.8 million in the six months ended June 30, 2026 compared to $620.7 million in the six months ended June 30, 2025. The percentage occupied at our shopping centers was 93.8% and 93.6% at June 30, 2026 and 2025, respectively. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments. Other property income includes revenue for our Pike & Rose hotel, parking income, and other incidental income from our properties. The increase in property revenues is due primarily to the following:

Current wording

Total property revenue increased $72.9 million, or 7.7%, to $1.0 billion in the nine months ended September 30, 2026 compared to $942.9 million in the nine months ended September 30, 2025. The percentage occupied at our shopping centers was 93.8% at both September 30, 2026 and 2025. Rental income consists primarily of minimum rent, cost reimbursements from tenants and percentage rent, and is net of collectibility related adjustments. Other property income includes revenue for our Pike & Rose hotel, parking income, and other incidental income from our properties. The increase in property revenues is due primarily to the following:

Previous wording

•an increase of $7.7 million from comparable properties primarily related to a $3.1 million increase in lease termination fee income, higher rental rates of approximately $2.4 million, a $1.1 million increase in parking income, a $1.1 million increase in recoveries from tenants on higher occupancy and expenses, and higher average occupancy of approximately $1.0 million, and

Current wording

•an increase of $26.4 million from comparable properties primarily related to higher rental rates of approximately $10.4 million, a $6.7 million increase in recoveries from tenants on higher occupancy and expenses, higher average occupancy of approximately $4.1 million, a $3.6 million increase in parking income, and a $2.8 million increase in lease termination fee income, and

Previous wording

•an increase of $12.1 million from non-comparable properties primarily driven by occupancy increases,

Current wording

•an increase of $17.7 million from non-comparable properties primarily driven by occupancy increases,

Previous wording

Total property expenses increased $14.6 million, or 7.2%, to $217.2 million in the six months ended June 30, 2026 compared to $202.7 million in the six months ended June 30, 2025. Changes in the components of property expenses are discussed below.

Current wording

Total property expenses increased $18.0 million, or 5.9%, to $326.4 million in the nine months ended September 30, 2026 compared to $308.3 million in the nine months ended September 30, 2025. Changes in the components of property expenses are discussed below.

Previous wording

Rental expenses increased $9.8 million, or 7.6%, to $139.2 million in the six months ended June 30, 2026 compared to $129.4 million in the six months ended June 30, 2025 due primarily to the following:

Current wording

Rental expenses increased $11.6 million, or 5.9%, to $208.5 million in the nine months ended September 30, 2026 compared to $196.9 million in the nine months ended September 30, 2025 due primarily to the following:

Previous wording

•an increase of $3.8 million from non-comparable properties due primarily to occupancy increases,

Current wording

•an increase of $5.2 million from non-comparable properties due primarily to occupancy increases, and

Previous wording

•an increase of $5.3 million from comparable properties due primarily to higher snow removal costs and higher utilities, and

Current wording

•an increase of $5.2 million from comparable properties due primarily to higher snow removal costs and higher utilities,

Previous wording

As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income decreased to 21.1% in the six months ended June 30, 2026 from 21.4% in the six months ended June 30, 2025.

Current wording

As a result of the changes in rental income and rental expenses as discussed above, rental expenses as a percentage of rental income decreased to 21.1% in the nine months ended September 30, 2026 from 21.4% in the nine months ended September 30, 2025.

Previous wording

Real estate tax expense increased $4.8 million, or 6.6%, to $78.0 million in the six months ended June 30, 2026 compared to $73.2 million in the six months ended June 30, 2025 due primarily to the following:

Current wording

Real estate tax expense increased $6.4 million, or 5.8%, to $117.9 million in the nine months ended September 30, 2026 compared to $111.4 million in the nine months ended September 30, 2025 due primarily to the following:

Previous wording

•an increase of $0.8 million from non-comparable properties due primarily to openings at Santana West,

Current wording

•an increase of $0.9 million from non-comparable properties due primarily to openings at Santana West,

Previous wording

Property operating income increased $41.5 million, or 9.9%, to $459.6 million in the six months ended June 30, 2026 compared to $418.0 million in the six months ended June 30, 2025. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, openings at Santana West and Pike & Rose Phase IV, and higher lease termination fee income, partially offset by property dispositions.

Current wording

Property operating income increased $54.8 million, or 8.6%, to $689.5 million in the nine months ended September 30, 2026 compared to $634.6 million in the nine months ended September 30, 2025. This increase is primarily driven by acquisitions, higher rental rates and average occupancy, openings at Santana West and Pike & Rose Phase IV, and higher lease termination fee income, partially offset by property dispositions.

Previous wording

General and administrative expense increased $2.6 million, or 11.4%, to $25.4 million in the six months ended June 30, 2026 compared to $22.8 million in the six months ended June 30, 2025. This increase is due primarily to higher personnel related costs.

Current wording

General and administrative expense increased $4.2 million, or 12.2%, to $38.6 million in the nine months ended September 30, 2026 compared to $34.4 million in the nine months ended September 30, 2025. This increase is due primarily to higher personnel related costs.