Company: FRT-PC
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001193125-25-026560
Chunk: 115

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-14
Form: 424B5
Chunk 115
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 types of transactions, including in connection with certain non-pro rata contributions or distributions of assets by the Partnership in exchange for interests
in the Partnership. In the event of such a revaluation, the partners (including us) who were partners in the Partnership immediately prior to the revaluation will be required to take
any Book-Tax Difference created as a result of such revaluation into account in substantially the same manner as under the Section 704(c) rules discussed above. This would result in us being
allocated income, gain, loss and deduction for tax purposes in amounts different than the economic or book income allocated to us by the Partnership.

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The application of Section 704(c) to the Partnership may cause us to recognize taxable income in excess of cash proceeds, which might adversely affect our ability to comply with the REIT distribution requirements. See “—Requirements for REIT Qualification—Distribution Requirements.” The foregoing principles also apply in determining our earnings and profits for purposes of determining the portion of distributions taxable as dividend income. The application of these rules over time may result in a higher portion of distributions being taxed as dividends than would have occurred had we purchased the contributed or revalued assets at their agreed values. Treasury has issued regulations requiring partnerships to use a “reasonable method” for allocating items affected by Section 704(c) of the Code and outlining several reasonable allocation methods. The general partner of the Partnership has the discretion to determine which of the methods of accounting for Book-Tax Differences(specifically approved in the Treasury regulations) will be elected with respect to any properties contributed to or revalued by the Partnership. We have not determined which method of accounting for Book-Tax Differenceswill be elected for properties contributed to or revalued by the Partnership in the future. Basis in Partnership Interest. Our adjusted tax basis in our partnership interest in the Partnership generally is equal to:

| • |     | the amount of cash and the adjusted tax basis of any other property contributed by us to the Partnership; |

| • |     | increased by |

| • |     | our allocable share of the Partnership’s income, and |

| • |     | our allocable share of debt of the Partnership; and |

| • |     | reduced, but not below zero, by |

| • |     | our allocable share of the Partnership’s loss, |

| • |     | the amount of cash and the basis of any property distributed to us, and |

| • |     | constructive distributions resulting from a reduction in our share