Federal Realty Investment Trust (FRT) risk factors, FY2025 10-K

Other

1. 01Revenue from our properties may be reduced or limited if the retail operations of our tenants are not successful
2. 02Our net income depends on the success and continued presence of our “anchor” tenants
3. 03A shift in retail shopping from brick and mortar stores to online shopping may have an adverse impact on our cash flow, financial condition and results of operations
4. 04We have properties that are geographically concentrated, and adverse economic or real estate market declines in these areas could have a material adverse effect on us22% rewritten
5. 05We may be unable to collect balances due from tenants that file for bankruptcy protection
6. 06We may experience difficulty or delay in renewing leases or re-leasing space
7. 07Our development activities have inherent risks
8. 08Redevelopments and acquisitions may fail to perform as expected
9. 09Our performance and value are subject to general risks associated with the real estate industry
10. 10Many real estate costs are fixed, even if income from our properties decreases
11. 11Competition may limit our ability to purchase new properties and generate sufficient income from tenants
12. 12We may be unable to sell properties when appropriate because real estate investments are illiquid
13. 13We may have limited flexibility in dealing with our jointly owned investments
14. 14Our insurance coverage on our properties may be inadequate
15. 15Natural disasters, climate change and health crises, could have an adverse impact on our cash flow and operating results
16. 16The amount of debt we have and the restrictions imposed by that debt could adversely affect our business and financial condition
17. 17We are obligated to comply with financial and other covenants pursuant to our debt obligations that could restrict our operating activities, and the failure to comply with such covenants could result in defaults that accelerate payment under our debt agreements
18. 18Adverse changes in our credit rating could affect our borrowing capacity and borrowing terms
19. 19Our ability to grow will be limited if we cannot obtain additional capital
20. 20Rising interest rates could adversely affect our cash flow and the market price of our outstanding debt and preferred shares52% rewritten
21. 21Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us
22. 22We believe that we are organized and qualified as a REIT for federal income tax purposes and currently intend to operate in a manner that will allow us to continue to qualify as a REIT under the Code. However, we cannot assure you that we will remain qualified as such in the future
23. 23To maintain our status as a REIT, we limit the amount of shares any one shareholder of the Parent Company can own
24. 24Legislative, administrative, regulatory or other actions affecting REITs, including positions taken by the IRS, could have a material adverse effect on us and our investors
25. 25We may be required to incur additional debt to qualify as a REIT
26. 26Environmental laws and regulations could reduce the value or profitability of our properties
27. 27The Americans with Disabilities Act of 1990 could require us to take remedial steps with respect to existing or newly acquired properties
28. 28The revenues generated by our tenants could be negatively affected by various federal, state and local laws to which they are subject
29. 29Certain tax and anti-takeover provisions of the Parent Company's declaration of trust and bylaws, and certain restrictions in the Partnership's limited partnership agreement, may inhibit a change of our control
30. 30The market value of our debt and equity securities is subject to various factors that may cause significant fluctuations or volatility
31. 31We cannot assure you we will continue to pay dividends in the current composition or at historical rates
32. 32The Parent Company is a holding company with no direct operations, and it will rely on funds received from the Partnership to pay its obligations and make distributions to its shareholders
33. 33Loss of our key management could adversely affect performance and the value of our common shares
34. 34We may modify our approach to investment, financing, borrowing, and other operating strategies without shareholder approval. A change in the approach to any of these items could adversely affect our financial condition and results of operations, and the market price of our securities
35. 35We face risks relating to cyber threats that could cause loss of confidential information and other business disruptions