Company: FRT-PC
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001193125-25-026560
Chunk: 78

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-14
Form: 424B5
Chunk 78
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 indebtedness, certain real estate liability hedges, and certain foreign currency hedges entered into, and certain recognized real estate foreign exchange gains) for each taxable year must consist of defined types of income that we derive, directly  
 or indirectly, from investments relating to real property or mortgages on real property or qualified temporary investment income (the “75% gross income test”). Qualifying income for purposes of the 75% gross income test includes                     
 “rents from real property,” interest on debt secured by mortgages on real property or on interests in real property, gain from the sale of real estate assets other than debt instruments of “publicly offered” REITs (REITs that are                    
 required to file annual and periodic reports with the Securities and Exchange Commission under the Securities Exchange Act of 1934) that qualify as real estate assets solely for that reason, and dividends or other distributions on and gain from the 
 sale of shares in other REITs; and                                                                                                                                                                                                                       |

| • |     | At least 95% of our gross income (excluding gross income from prohibited transactions, cancellation of                                                                                                                                                  
 indebtedness, certain real estate liability hedges, and certain foreign currency hedges entered into, and certain recognized passive foreign exchange gains) for each taxable year must consist of income that is qualifying income for purposes of the 
 75% gross income test, dividends, other types of interest, gain from the sale or disposition of stock or securities, or any combination of the foregoing (the “95% gross income test”). In general, interest from any of our taxable REIT               
 subsidiaries is qualifying income for purposes of the 95% gross income test but is not qualifying income for purposes of the 75% gross income test unless such interest derives from debt secured by real property.                                     |

The following paragraphs discuss the specific application of these tests to us. Rental Income. The Partnership’s primary source of income derives from leasing properties. There are various limitations on whether rent that the Partnership receives from real property that it owns and leases to tenants will qualify as “rents from real property” (which is qualifying income for purposes of the 75% and 95% gross income tests) under the REIT tax rules:

| • |     | If the rent is based, in whole or in part, on the income or profits of any person although, generally, rent may                                                                                                                                 
 be based on a fixed percentage or percentages of gross receipts or sales, the rent will not qualify as “rents from real property.” Our leases