Executive Vice President, Chief Financial Officer and Treasurer at Federal Realty Investment Trust
Thank you, Don, and hello, everyone. For another quarter, strength and resilience of our portfolio has exceeded expectations. With FFO per share of $1.59, we beat a strong comparable from third quarter of 2021 by over 5% and beat consensus by $0.06. And once again, we saw broad strength across all aspects of our business driving this performance. Continued gains and small shop occupancy, strong tenant sales driving higher percentage rent, continued increases in customer traffic resulting in another uptick in parking revenues, strengthen our residential assets and better collections than forecast, although offset by higher property level expenses and higher interest. Let me add some color to these items. Small shop leased occupancy basically hit 90%, up 60 basis points over 2Q, up 380 basis points year-over-year and up to a level not achieved since 2017, but still not back to targeted levels. Parking revenues, a strong indicator of consumer traffic at our mixed use assets continued higher up 8% sequentially over 2Q and 33% year-over-year. Percentage rent, an indicator of tenant sales strength was up over 31% sequentially and almost double third quarter 2021 level. Same-store residential POI was up over 10% year-over-year. On the other side, we did start to see some inflationary impact on operating expenses in the quarter as opex grew by 10% over 3Q 2021.
However, we estimate that roughly a third of that increase is non-recurring and it is all predominantly recoverable from tenants. Despite coming off a strong comp in 2021, our comparable growth metric for 3Q was a solid 3.7% well above forecast. Comparable growth excluding prior period rent and term fees was 6.3%. On a cash basis, our same-store metric is 5%, excluding prior period rent and term fees, our same-store metric is up to 8%. Year-to-date comparable POI growth is a sector leading 8.8% and almost 10% on a cash based same-store metric. For those of you that track it, term fees this quarter were $1.3 million, up from $0.5 million in 2021, but down significantly from the second quarter's $5.6 million. Prior period rent was $2 million, decreasing $4 million relative to the third quarter's $6 million level. Again, this is adjusted to reflect only negotiated prior period rent payments relating to COVID-19. We did another exceptional quarter of leasing a record for any third quarter, giving us nine consecutive quarters of above average leasing activity and not by a little bit by over 25% on average over this nine quarter period and 40% this quarter. Furthermore, our pipeline remains as robust as we've seen it. Currently exceeding both second quarter of 2022, third quarter of 2021 levels at this juncture in the quarter.
Our rent rollover metric was 3% for the quarter with rollover gains for deals in our pipeline, indicating a much more robust outlook in future quarters. We also had another solid quarter achieving sector leading rent bumps, as we continue to drive average annual contractual increases of 2.25% for retail leases only for banker and small shop-lended and as a result our rollover on a straight line basis is 13%.And I know, I'm repeating myself, but for every 100 basis points higher in annual rent bumps, the ending rent will be 9% to 10% higher at the end of a 10 year lease. Hence, a portfolio with 2.25% rent bumps and 3% rollover is the equivalent of a portfolio with only 1.25% rent bumps and 12% rollover, plus the 2.25% rent bump portfolio collects more along the way. With respect to our balance sheet, we made significant progress during the quarter in enhancing our liquidity and financial flexibility. Just after quarter end, we closed in a comprehensive refinancing which increased our unsecured bank capacity by over $0.5 billion, from $1.3 billion previously to $1.85 billion today. And a combined revolving credit facility and term-loan, both of which we expanded. We increased our previous $1 billion revolving credit facility to $1.25 billion, extending the term to April of 2027 with two six months options out to 2028 and transitioned the base rate from LIBOR to SOFR and we doubled the size of our existing term loan from $300 million to $600 million.
This term loan has an April 2024 maturity with two additional one-year extension options, which take us out to 2026 at our options. The interest rate here also transitioned from LIBOR to SOFR. As a result at closing of the facilities we had $1.4 billion of total liquidity including the $1.25 billion available on our undrawn credit facility. With respect to leverage metrics at quarter end, our net debt EBITDA ratio is roughly six times annualized for the quarter and adjusted for asset activity. Comfortably within the range of our ratings and we continue to target a ratio in the low-to-mid five times over time. Our fixed charge coverage ratio rests at four times and additionally we sold two assets one retail center and one residential asset during the quarter for a total of $67 million at a blended five-and-a-quarter cap rate. And we're in process on an additional asset sales totaling over $350 million in potential proceeds at a blended cap rate that is sub 5%. Having non-core assets including residential, that we can sell at extremely attractive valuations even in this environment there is an error in our quiver that most retail companies do not have. Onto the remainder of 2022 given another quarter of outperformance and a strong outlook for 4Q, we are increasing our guidance from $6.10 to $6.25 to a tightened range of $6.27 to $6.32 per share, an increase of $0.12 to the midpoint or 2%.
And this is on top of two other guidance increases earlier this year in the first half, which brings our year-to-date total increases and guidance to $0.45. Current 2022 guidance implies 13% growth over 2021 at the midpoint despite over 200 basis points of headwinds from prior period rent. We are also bumping up our forecast for comparable POI growth to 7% to 8% from the prior range of 5.5% to 7%. Excluding prior period rents and term fees our comparable POI forecast increases to 9% to 10% from the prior range of 7.5% to 9%. We continue to expect our occupied rate decline from 92.1% today, up to around 92.5% by year end. And please note that our recent third quarter acquisitions weighed on our occupancy growth during the quarter. This guidance assumes a range of a $1.53 to a $1.58 of FFO per share for the fourth quarter. With respect to 2023 we will be giving formal guidance on our call in February, but let me provide some commentary for you to consider. Our $600 million term loan is floating rate. We have consciously decided not to hedge the rate to maximize our financial flexibility to be opportunistic and the timing of refinancing on a longer term fixed rate basis. Its interest rate is set; the term SOFR is adjusted plus an 85 basis point spread which is 4.7% today. Also note while our only debt maturity in 2023 is $275 million of unsecured notes with a June maturity, it does have a 2.75% interest rate.
We again expect prior period rents and term fees not to contribute in 2023 to the level they did this year while the impact will not be as material as it was this year. And G&A which is running at $13 million per quarter currently is expected to increase in 2023 using -- use $14 million, per quarter is a good placeholder for now. As a counter to these trends, our core business continues to show significant strength given over two years of above average leasing volumes with relatively little impact from failing retailers over the last year. We expect to see POI in 2023 continue to show strong momentum driven by solid comparable growth continuing in 2023 and the existing portfolio driven by 220 basis points of signs not occupied upside a robust current portfolio of new leasing. As well as growth in the non-comparable portfolio, particularly at the recently stabilized Assembly Row Phase three, 100% lease 909 Rose at Pike & Rose and the 100% lease CocoWalk. Despite uncertainty in the economic outlook for 2023, POI growth will be robust and should provide momentum to counter inflationary pressures and higher interest rates.
And with that operator you can open up a line for questions.