Company: FRT-PC
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001193125-25-026560
Chunk: 117

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-14
Form: 424B5
Chunk 117
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 property (other than through a taxable REIT subsidiary) that represents inventory or other property held primarily for sale to customers in the ordinary course of our or the Partnership’s trade or business. 54

Revised Partnership Audit Rules. Under partnership audit changes
generally effective for audits in 2018 and later, a partnership (and not the partners) must pay any “imputed underpayments,” consisting of delinquent taxes, interest, and penalties deemed to arise out of an audit of the partnership, unless
certain alternative methods are available and the partnership elects to utilize them. The IRS has issued regulations providing details on some of these provisions, but it is still not entirely clear how all of these new rules will be implemented.
Accordingly, it is possible that in the future, we and/or any partnership in which we are a partner could be subject to, or otherwise bear the economic burden of, federal income tax, interest, and penalties resulting from a federal income tax audit
even though we, as a REIT, may not otherwise have been required to pay additional corporate-level taxes as a result of an audit adjustment.

Other Tax Considerations

State and Local Taxes. We and/or you may be subject to state and local tax in various states and
localities, including those states and localities in which we or you transact business, own property or reside. The state and local tax treatment in such jurisdictions may differ from the federal income tax treatment described above. Consequently,
you should consult your tax advisors regarding the effect of state and local tax laws upon an investment in our securities.

Changes to Tax Laws and Regulations. The rules dealing with federal income taxation are subject to revision by the U.S. Congress, the IRS and the Treasury, and statutory changes, new regulations, revisions to existing regulations and revised
interpretations of established concepts are issued frequently. In particular, additional legislation, implementing regulations, and other guidance may be enacted or promulgated with respect to the Tax Cuts and Jobs Act of 2017, the 2020 CARES Act,
and other recent legislation. We cannot assure you that a change in law, including the possibility of major tax legislation in 2024 or later, possibly with retroactive application, will not alter significantly the tax considerations (including
applicable tax rates) that we describe herein. No prediction can be made as to the likelihood of passage of new tax legislation or other provisions, or the direct or indirect effect on us and our shareholders. Revisions to tax laws and