Federal Realty Investment Trust, of Rockville, reported a 10.6 percent increase in funds from operations for the third quarter. Federal Realty’s FFO was $84.5 million, or $1.23 per diluted share, for 2014 and $76.4 million, or $1.16 per diluted share, in third quarter 2013. Net income was $46.9 million and earnings per diluted share 69 cents for the quarter versus $62.0 million and 94 cents in last year’s same time period. Federal Realty’s properties were 95.6 percent leased as of Sept. 30, about the same as 2013 at the same time. Funds from operations is used in calculating a REIT’s financial performance because it gives a more accurate picture of cash flow.