Company: FRT-PC
Filing Date: 2025-02-14
Form Type: 424B5
Source: 0001193125-25-026560
Chunk: 108

Company: FEDERAL REALTY INVESTMENT TRUST
Filing Date: 2025-02-14
Form: 424B5
Chunk 108
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 shares. If a wash sale occurs, then the seller/repurchaser will be treated as having gain recognized from the sale or exchange of U.S. real property interests in the same amount as if the avoided distribution had actually been received. Non-U.S. shareholders shouldconsult their own tax advisors on the special wash sale rules that apply to non-U.S. shareholders. Conversion of Preferred Shares to Common Shares.The conversion of preferred shares into our common shares may be a taxable exchange for a non-U.S. shareholder ifour preferred shares constitute a U.S. real property interest under FIRPTA. Even if our preferred shares constitute a U.S. real property interest, provided our common shares also constitute a U.S. real property interest, a non-U.S. shareholder generallywill not recognize gain or loss upon a conversion of preferred shares into our common shares so long as certain FIRPTA-related reporting requirements are satisfied. If our preferred shares constitute a U.S. real property interest and such requirements are not satisfied, however, a conversion will be treated as a taxable exchange of preferred shares for our common shares. Such a deemed taxable exchange will be subject to tax under FIRPTA at the rate of tax, including any applicable capital gains rates, that would apply to a taxable U.S. shareholder of the same type (e.g., a corporate or a non-corporate shareholder, asthe case may be) on the excess, if any, of the fair market value of such non-U.S. shareholder’s commonshares received over such non-U.S. shareholder’s adjustedbasis in its preferred shares. Non-U.S. shareholders shouldconsult with their tax advisors regarding the federal income tax consequences of any transaction by which such non-U.S. shareholder exchangesour common shares received on a conversion of preferred shares for cash or other property. Information Reporting and Backup Withholding.We must report annually to the IRS and to each non-U.S. shareholder theamount of distributions paid to such holder and the tax withheld with respect to such distributions, regardless of whether withholding was required. Copies of the information returns reporting such distributions and withholding may also be made available to the tax authorities in the country in which the non-U.S. shareholder residesunder the provisions of an applicable income tax treaty. Backup withholding (currently at the rate of 24%) and additional information reporting will generally not apply to distributions to a non-U.S. shareholder provided that the non-U.S. shareholder certifiesunder penalty of perjury that the shareholder is a non-U.S. shareholder, orotherwise establishes an exemption.