Federal Realty Investment Trust reported solid QQ2 2025 results anchored by revenue growth and meaningful operating leverage. Revenue rose 0.8% QoQ to $311.5 million, while gross profit grew to $213.2 million, delivering a gross margin of ~68.4%. Operating incomeof $202.7 million represented a ~29.1% YoY increase, aided by favorable leasing spreads and ongoing cost discipline. Net income reached $155.9 million with EPS of $1.78, reflecting strong operating performance and a tax/expense mix that supported earnings expansion. Free cash flow amounted to $85.1 million, and net cash provided by operating activities was $150.7 million, supporting a robust cash position (cash at end of period of ~$203.6 million). The balance sheet remains solid, with total assets of about $8.62 billion and equity of $3.25 billion; long-term debt stands at ~$4.57 billion, and net debt stands at ~$4.40 billion, yielding a Debt/Capitalization of 58.5% and an interest coverage of ~4.6x. The company maintained its long track record of dividend growth, with a payout ratio around 61.9% and a dividend yield near 1.18%. Management commentary on QQ2 2025 highlighted ongoing redevelopment, leasing momentum in core coastal markets, and a disciplined capital allocation framework aimed at sustaining rent growth and dividend stability. The quarter’s performance supports Federal Realty’s investment thesis of accretive redevelopments and high-quality urban retail assets, though the external environment—higher borrowing costs and potential cap-rate pressure—remains a key monitor for value realization.