Company: FRT-PC
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001193125-25-026560
Chunk: 83

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-14
Form: 424B5
Chunk 83
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 the REIT makes a proper election to treat the property as foreclosure property. |

A REIT will not be considered to have foreclosed on a property where it takes control of the property as a mortgagee-in-possession and cannotreceive any profit or sustain any loss except as a creditor of the mortgagor. Generally, property acquired as described above ceases to be foreclosure property on the earlier of:

| • |     | the last day of the third taxable year following the taxable year in which the REIT acquired the property (or 
 longer if an extension is granted by the Secretary of the Treasury);                                          |

| • |     | the first day on which a lease is entered into with respect to such property that, by its terms, will give rise                                                                                                                                       
 to income that does not qualify under the 75% gross income test or any amount is received or accrued, directly or indirectly, pursuant to a lease entered into on or after such day that will give rise to income that does not qualify under the 75% 
 gross income test;                                                                                                                                                                                                                                    |

| • |     | the first day on which any construction takes place on such property (other than completion of a building, or any                                  
 other improvement, where more than 10% of the construction of such building or other improvement was completed before default became imminent); or |

| • |     | the first day that is more than 90 days after the day on which such property was acquired by the REIT and the                                                                                                              
 property is used in a trade or business that is conducted by the REIT (other than through an independent contractor from whom the REIT itself does not derive or receive any income or through a taxable REIT subsidiary). |

38

Tax on Prohibited Transactions. A REIT will incur a 100% tax on net
income (taking into account foreign currency gains and losses) derived from any “prohibited transaction.” A “prohibited transaction” generally is a sale or other disposition of property (other than foreclosure property) that the
REIT holds primarily for sale to customers in the ordinary course of a trade or business. The prohibited transaction rules do not apply to property held by a taxable REIT subsidiary of a REIT. We believe that none of the Partnership’s assets
(other than certain assets held through our taxable REIT subsidiaries) are held for sale to customers and that a sale of any such asset would not be in the ordinary course of our business. Whether a REIT holds an asset “primarily for