<SEC-DOCUMENT>0000726728-16-000049.txt : 20160804
<SEC-HEADER>0000726728-16-000049.hdr.sgml : 20160804
<ACCEPTANCE-DATETIME>20160804172139
ACCESSION NUMBER:		0000726728-16-000049
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160804
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160804
DATE AS OF CHANGE:		20160804

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REALTY INCOME CORP
		CENTRAL INDEX KEY:			0000726728
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330580106
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13374
		FILM NUMBER:		161808459

	BUSINESS ADDRESS:	
		STREET 1:		11995 EL CAMINO REAL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92130
		BUSINESS PHONE:		8582845000

	MAIL ADDRESS:	
		STREET 1:		11995 EL CAMINO REAL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92130
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>realtyincome-taxdisclosure8k.htm
<DESCRIPTION>FORM8K
<TEXT>

<HTML>
<HEAD>
   <TITLE>realtyincome-taxdisclosure8k.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:18.0pt;">United
States</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:18.0pt;">Securities
and Exchange Commission</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Washington, D.C. 20549</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:18.0pt;">Form
8-K</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:18.0pt;">Current
Report</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Pursuant to Section 13
or 15(d) of the<br>
Securities Exchange Act of 1934</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Date of report: </font><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">August
4, 2016<br>
&nbsp;</font></b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">(Date of Earliest Event Reported)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:18.0pt;">REALTY
INCOME CORPORATION</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Exact name of
registrant as specified in its charter)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:504.000000pt;">
 <tr>
  <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" style="font-size:12.0pt;">Maryland</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" style="font-size:12.0pt;">1-13374</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" style="font-size:12.0pt;">33-0580106</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="times new roman" style="font-size:10.0pt;">(State or Other
  Jurisdiction of<br>
  Incorporation or Organization)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="times new roman" style="font-size:10.0pt;">(Commission File
  Number)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=2% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=32% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="times new roman" style="font-size:10.0pt;">(IRS Employer
  Identification No.)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;
</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">11995 El Camino Real,
San Diego, California 92130</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Address of
principal executive offices)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">(858) 284-5000<br>
&nbsp;</font></b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(Registrant</font><font color=black face="times new roman" lang=EN-US style="font-size:10.0pt;">&#8217;</font><font face="times new roman" lang=EN-US style="font-size:10.0pt;">s telephone
number, including area code)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">N/A<br>
&nbsp;</font></b><font face="times new roman" lang=EN-US style="font-size:10.0pt;">(former
name or former address, if changed since last report)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>





</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Item 8.01 Other Events</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">United States Federal Income Tax Considerations</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">As a result of recent changes in applicable tax law, Realty Income
Corporation (the &#8220;Company&#8221;) is superseding and replacing the discussion under
the heading &#8220;United States Federal Income Tax Considerations&#8221; in the prospectus
dated December 21, 2015, which forms part of the Registration Statement on Form
S-3 (File No. 333-208652) of the Company filed with the Securities and Exchange
Commission (the &#8220;SEC&#8221;) on December 21, 2015 (the &#8220;Existing Tax Disclosure&#8221;) and
which is also attached to each of the three prospectus supplements dated
December 21, 2015 filed by the Company with the SEC on December 21, 2015
pursuant to Rule 424(b) of the Securities Act of 1933, as amended. The
information under the heading &#8220;United States Federal Income Tax Considerations&#8221;
in Exhibit 99.1 hereto (incorporated herein by reference) supersedes and
replaces, in its entirety, the Existing Tax Disclosure.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Item 9.01 Financial Statements and Exhibits.</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">(d)
Exhibits</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:483.850006pt;">
 <tr>
  <td valign=top width=7% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">99.1</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=93% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">United States Federal Income Tax Considerations</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>





</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_3"></a><a name="_bclPageBorder3"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">SIGNATURE</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:504.000000pt;">
 <tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">Dated: August 4, 2016 </font><font color=black face="times new roman" style="font-size:1.0pt;">6</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=2 valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">REALTY INCOME CORPORATION</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=44% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">By:</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=44% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">/s/ MICHAEL R. PFEIFFER</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:4.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:4.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=44% style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:4.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=44% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:2.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">Michael R. Pfeiffer</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=50% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=44% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">Executive Vice President, General</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">Counsel and Secretary</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>





</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" lang=EN-US style="font-size:12.0pt;">INDEX TO EXHIBITS</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:504.000000pt;">
 <tr>
  <td valign=bottom width=9% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="times new roman" style="font-size:8.0pt;">Exhibit No.</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=88% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="times new roman" style="font-size:8.0pt;">Description</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=9% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=88% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=9% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">99.1</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=3% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:1.0pt;">&nbsp;</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=88% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:12.0pt;">United States Federal Income Tax Considerations</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>




</DIV>
</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>2
<FILENAME>realtyincome-taxdisclosureex.htm
<DESCRIPTION>EXHIBIT99.1
<TEXT>

<HTML>
<HEAD>
   <TITLE>realtyincome-taxdisclosureex.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader1"></a><DIV>


<p align=right style="margin:0in;margin-bottom:.0001pt;text-align:right;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Exhibit 99.1</font></p>


</DIV>
<p style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The discussion set forth under
the heading &#8220;United States Federal Income Tax Considerations&#8221; in this Exhibit
99.1 to Realty Income Corporation&#8217;s (the &#8220;Company&#8217;s&#8221;) Current Report on Form
8-K filed with the Securities and Exchange Commission (the &#8220;SEC&#8221;) on August 4,
2016, which is filed with respect to Item 8.01 of Form 8-K, supersedes and
replaces, in its entirety, the discussion under the heading &#8220;United States
Federal Income Tax Considerations&#8221; in the prospectus dated December 21, 2015,
which is a part of the Company&#8217;s Registration Statement on Form S-3 (File No.
333-208652) filed with the SEC on December 21, 2015 and which is also attached
to each of the three prospectus supplements dated December&nbsp;21, 2015 filed by
the Company with the SEC on December&nbsp;21, 2015 pursuant to Rule 424(b)
under the Securities Act of 1933, as amended.</font></i></p>

<p align=center style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The following
is a general summary of certain material U.S. federal income tax considerations
regarding our election to be taxed as a REIT and the acquisition, ownership or
disposition of our capital stock or debt securities. Supplemental U.S. federal
income tax considerations relevant to holders of the securities offered by this
prospectus (including warrants, preferred stock and depositary shares) may be
provided in the prospectus supplement that relates to those securities. Unless
otherwise expressly stated or the context otherwise requires, all references to
the &#8220;Company,&#8221; &#8220;Realty Income,&#8221; &#8220;our,&#8221; &#8220;we&#8221; and &#8220;us&#8221; and all similar references
appearing under this caption &#8220;United States Federal Income Tax Considerations&#8221;
mean Realty Income Corporation excluding its subsidiaries. This summary is for
general information only and is not tax advice. The information in this summary
is based on: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the Code;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; current, temporary and proposed
Treasury Regulations promulgated under the Code;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the legislative history of the
Code;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; administrative interpretations and
practices of the IRS; and</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; court decisions;</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">in each case,
as of August 4, 2016. In addition, the administrative interpretations and
practices of the IRS include its practices and policies as expressed in private
letter rulings that are not binding on the IRS except with respect to the
particular taxpayers who requested and received those rulings. Future
legislation, Treasury Regulations, administrative interpretations and practices
and/or court decisions may adversely affect the tax considerations contained in
this discussion. Any such change could apply retroactively to transactions preceding
the date of the change. We have not requested, and do not plan to request, any
rulings from the IRS that we qualify as a REIT, and the statements in this
prospectus are not binding on the IRS or any court. Thus, we can provide no
assurance that the tax considerations contained in this discussion will not be
challenged by the IRS or will be sustained by a court if challenged by the IRS.
This summary does not discuss any state, local or non-U.S. tax consequences, or
any tax consequences arising under any federal tax laws other than federal
income tax laws, associated with the acquisition, ownership or disposition of
our capital stock or debt securities, or our election to be taxed as a REIT. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">You are
urged to consult your tax advisor regarding the tax consequences to you of: </font></b></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; </font><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">the acquisition, ownership or
disposition of our capital stock or debt securities, including the federal,
state, local, non-U.S. and other tax consequences; </font></b></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; </font><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">our election to be taxed as a
REIT for federal income tax purposes; and</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; </font><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">potential changes in applicable
tax laws.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> </font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Taxation of Our Company</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">General</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.
We have elected to be taxed as a REIT under Sections 856 through 860 of the
Code, commencing with our taxable year ended December 31, 1994. We believe that
we have been organized and have operated in a manner that has allowed us to
qualify for taxation as a REIT under the Code commencing with our taxable year
ended December 31, 1994, and we intend to continue to be organized and operate
in this manner. However, qualification and taxation as a REIT depend upon our
ability to meet the various qualification tests imposed under the Code,
including through actual annual operating results, asset composition,
distribution levels and diversity of stock ownership. Accordingly, no assurance
can be given that </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">we have been organized and have
operated, or will continue to be organized and operate, in a manner so as to
qualify or remain qualified as a REIT. See &#8220;&#8212;Failure to Qualify&#8221; for any
potential tax consequences if we fail to qualify as a REIT. </font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The sections
of the Code and the corresponding Treasury Regulations that relate to
qualification and taxation as a REIT are highly technical and complex. The
following discussion sets forth certain material aspects of the sections of the
Code that govern the federal income tax treatment of a REIT and the holders of
certain of its securities. This summary is qualified in its entirety by the
applicable Code provisions, Treasury Regulations promulgated under the Code,
and administrative and judicial interpretations thereof. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Latham &amp;
Watkins LLP has acted as our tax counsel in connection with our filing of this
prospectus and our election to be taxed as a REIT. Latham &amp; Watkins LLP has
rendered an opinion to us, as of December 21, 2015 (the date of this prospectus),
to the effect that, commencing with our taxable year ending December 31, 1994,
we have been organized and have operated in conformity with the requirements
for qualification and taxation as a REIT under the Code, and our proposed
method of operation will enable us to continue to meet the requirements for
qualification and taxation as a REIT under the Code. It must be emphasized that
this opinion was based on various assumptions and representations as to factual
matters, including representations made by us in a factual certificate provided
by one of our officers. In addition, this opinion was based upon our factual
representations set forth in this prospectus. Moreover, our qualification and
taxation as a REIT depend upon our ability to meet the various qualification
tests imposed under the Code, which are discussed below, including through
actual annual operating results, asset composition, distribution levels and
diversity of stock ownership, the results of which have not been and will not
be reviewed by Latham &amp; Watkins LLP. Accordingly, no assurance can be given
that our actual results of operation for any particular taxable year have
satisfied or will satisfy those requirements. Further, the anticipated federal
income tax treatment described herein may be changed, perhaps retroactively, by
legislative, administrative or judicial action at any time. Latham &amp;
Watkins LLP has no obligation to update its opinion subsequent to the date of
such opinion. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Provided we
qualify for taxation as a REIT, we generally will not be required to pay
federal corporate income taxes on our REIT taxable income that is currently
distributed to our stockholders. This treatment substantially eliminates the
&#8220;double taxation&#8221; that ordinarily results from investment in a C corporation. A
C corporation is a corporation that generally is required to pay tax at the
corporate level. Double taxation means taxation once at the corporate level
when income is earned and once again at the stockholder level when the income
is distributed. We will, however, be required to pay federal income tax as
follows: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; First, we will be required to pay
tax at regular corporate rates on any undistributed REIT taxable income,
including undistributed net capital gains. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Second, we may be required to pay
the &#8220;alternative minimum tax&#8221; on our items of tax preference under some
circumstances. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Third, if we have (1) net income
from the sale or other disposition of &#8220;foreclosure property&#8221; held primarily for
sale to customers in the ordinary course of business or (2) other nonqualifying
income from foreclosure property, we will be required to pay tax at the highest
corporate rate on this income. To the extent that income from foreclosure
property is otherwise qualifying income for purposes of the 75% gross income
test, this tax is not applicable. Subject to certain other requirements,
foreclosure property generally is defined as property we acquired through
foreclosure or after a default on a loan secured by the property or a lease of
the property. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Fourth, we will be required to pay
a 100% tax on any net income from prohibited transactions. Prohibited
transactions are, in general, sales or other taxable dispositions of property,
other than foreclosure property, held as inventory or primarily for sale to
customers in the ordinary course of business. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Fifth, if we fail to satisfy the
75% gross income test or the 95% gross income test, as described below, but
have otherwise maintained our qualification as a REIT because certain other
requirements are met, we will be required to pay a tax equal to (1) the greater
of (A) the amount by which we fail to satisfy the 75% gross income test and (B)
the amount by which we fail to satisfy the 95% gross income test, multiplied by
(2) a fraction intended to reflect our profitability. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Sixth, if we fail to satisfy any
of the asset tests (other than a de minimis failure of the 5% or 10% asset
test), as described below, due to reasonable cause and not due to willful
neglect, and we nonetheless maintain our REIT qualification because of
specified cure provisions, we will be required to pay a tax equal to the
greater of $50,000 or the highest corporate tax rate multiplied by the net
income generated by the nonqualifying assets that caused us to fail such test. </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_3"></a><a name="_bclPageBorder3"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Seventh, if
we fail to satisfy any provision of the Code that would result in our failure
to qualify as a REIT (other than a violation of the gross income tests or
certain violations of the asset tests, as described below) and the violation is
due to reasonable cause and not due to willful neglect, we may retain our REIT
qualification but we will be required to pay a penalty of $50,000 for each such
failure.</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Eighth, we will be required to pay
a 4% excise tax to the extent we fail to distribute during each calendar year
at least the sum of (1) 85% of our ordinary income for the year, (2) 95% of our
capital gain net income for the year, and (3) any undistributed taxable income
from prior periods. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Ninth, if we acquire any asset
from a corporation that is or has been a C corporation in a transaction in
which our tax basis in the asset is less than the fair market value of the
asset, in each case determined as of the date on which we acquired the asset,
and we subsequently recognize gain on the disposition of the asset during a
specified period beginning on the date on which we acquired the asset, then we
generally will be required to pay tax at the highest regular corporate tax rate
on this gain to the extent of the excess of (1) the fair market value of the
asset over (2) our adjusted tax basis in the asset, in each case determined as
of the date on which we acquired the asset. The specified period is currently
five years, although recently promulgated Temporary Treasury Regulations, which
expire on June 7, 2019, provide for a ten-year period for assets acquired on or
after August 8, 2016. The results described in this paragraph with respect to
the recognition of gain assume that the C corporation will refrain from making
an election to receive different treatment under applicable Treasury
Regulations on its tax return for the year in which we acquire the asset from
the C corporation. Under applicable Treasury Regulations, any gain from the
sale of property we acquired in an exchange under Section 1031 (a like-kind exchange)
or 1033 (an involuntary conversion) of the Code generally are excluded from the
application of this built-in gains tax.</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Tenth, our subsidiaries that are C
corporations, including our &#8220;taxable REIT subsidiaries&#8221; described below,
generally will be required to pay federal corporate income tax on their
earnings. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Eleventh, we will be required to
pay a 100% tax on any &#8220;redetermined rents,&#8221; &#8220;redetermined deductions,&#8221; &#8220;excess
interest,&#8221; or (for taxable years beginning after December 31, 2015) &#8220;redetermined
TRS service income,&#8221; as described below under &#8220;&#8212;Penalty Tax.&#8221; In general,
redetermined rents are rents from real property that are overstated as a result
of services furnished to any of our tenants by a taxable REIT subsidiary of
ours. Redetermined deductions and excess interest generally represent amounts
that are deducted by a taxable REIT subsidiary of ours for amounts paid to us
that are in excess of the amounts that would have been deducted based on arm&#8217;s
length negotiations. Redetermined TRS service income generally represents
income of a taxable REIT subsidiary that is understated as a result of services
provided to us or on our behalf. </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Twelfth, we may elect to retain
and pay income tax on our net capital gain. In that case, a stockholder would include
its proportionate share of our undistributed net capital gain (to the extent we
make a timely designation of such gain to the stockholder) in its income, would
be deemed to have paid the tax that we paid on such gain, and would be allowed
a credit for its proportionate share of the tax deemed to have been paid, and
an adjustment would be made to increase the tax basis of the stockholder in our
capital stock.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Thirteenth, if we fail to comply
with the requirement to send annual letters to our stockholders requesting
information regarding the actual ownership of our stock, and the failure is not
due to reasonable cause or due to willful neglect, we will be subject to a
$25,000 penalty, or if the failure is intentional, a $50,000 penalty.&#160; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">From time to
time we may own properties in other countries which may impose taxes on our
operations within their jurisdictions. To the extent possible, we will
structure our activities to minimize our non-U.S. tax liability. However, there
can be no assurance that we will be able to eliminate our non-U.S. tax
liability or reduce it to a specified level. Furthermore, as a REIT, both we
and our stockholders will derive little or no benefit from foreign tax credits
arising from those non-U.S. taxes. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Requirements
for Qualification as a REIT</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. The Code defines a REIT as a corporation,
trust or association: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(1)&#160;&#160; that is managed by one or more
trustees or directors; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(2)&#160;&#160; that issues transferable shares or
transferable certificates to evidence its beneficial ownership; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(3)&#160;&#160; that would be taxable as a domestic
corporation, but for Sections 856 through 860 of the Code;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(4)&#160;&#160; that is not a financial institution
or an insurance company within the meaning of certain provisions of the Code;</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(5)&#160;&#160; that is
beneficially owned by 100 or more persons; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(6)&#160;&#160; not more than 50% in value of the
outstanding stock of which is owned, actually or constructively, by five or
fewer individuals, including certain specified entities, during the last half
of each taxable year; and</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(7)&#160;&#160; that meets other tests, described
below, regarding the nature of its income and assets and the amount of its
distributions. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The Code
provides that conditions (1) to (4), inclusive, must be met during the entire
taxable year and that condition (5) must be met during at least 335 days of a
taxable year of 12 months, or during a proportionate part of a taxable year of
less than 12 months. Conditions (5) and (6) do not apply until after the first
taxable year for which an election is made to be taxed as a REIT. For purposes
of condition (6), the term &#8220;individual&#8221; includes a supplemental unemployment
compensation benefit plan, a private foundation or a portion of a trust
permanently set aside or used exclusively for charitable purposes, but
generally does not include a qualified pension plan or profit sharing trust. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We believe
that we have been organized and have operated in a manner that has allowed us,
and will continue to allow us, to satisfy conditions (1) through (7) inclusive,
during the relevant time periods. In addition, our charter provides for
restrictions regarding ownership and transfer of our shares that are intended
to assist us in continuing to satisfy the share ownership requirements
described in conditions (5) and (6) above. A description of the share ownership
and transfer restrictions relating to our capital stock is contained in the
discussion under the heading &#8220;Restrictions on Ownership and Transfer.&#8221; These
restrictions, however, do not ensure that we have previously satisfied, and may
not ensure that we will, in all cases, be able to continue to satisfy, the
share ownership requirements described in conditions (5) and (6) above. If we
fail to satisfy these share ownership requirements, except as provided in the
next sentence, our status as a REIT will terminate. If, however, we comply with
the rules contained in applicable Treasury Regulations that require us to
ascertain the actual ownership of our shares and we do not know, or would not
have known through the exercise of reasonable diligence, that we failed to meet
the requirement described in condition (6) above, we will be treated as having
met this requirement. See &#8220;&#8212;Failure to Qualify.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">In addition,
we may not maintain our status as a REIT unless our taxable year is the
calendar year. We have and will continue to have a calendar taxable year. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Ownership
of Interests in Partnerships, Limited Liability Companies and Qualified REIT
Subsidiaries</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. In the case of a REIT that is a partner in a partnership
or a member in a limited liability company treated as a partnership for federal
income tax purposes, Treasury Regulations provide that the REIT will be deemed
to own its proportionate share of the assets of the partnership or limited
liability company, as the case may be, based on its interest in partnership
capital, subject to special rules relating to the 10% asset test described
below. Also, the REIT will be deemed to be entitled to its proportionate share
of the income of that entity. The assets and gross income of the partnership or
limited liability company retain the same character in the hands of the REIT
for purposes of Section 856 of the Code, including satisfying the gross income
tests and the asset tests. Thus, our pro rata share of the assets and items of
income of any partnership or limited liability company treated as a partnership
or disregarded entity for federal income tax purposes in which we directly or
indirectly own an interest is treated as our assets and items of income for
purposes of applying the requirements described in this discussion, including
the gross income and asset tests described below. A brief summary of the rules
governing the federal income taxation of partnerships and limited liability
companies is set forth below in &#8220;&#8212;Tax Aspects of the Subsidiary Partnerships
and the Limited Liability Companies.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We generally
have control of our subsidiary partnerships and limited liability companies and
intend to operate them in a manner consistent with the requirements for our
qualification as a REIT. We may from time to time be a limited partner or
non-managing member in some of our partnerships and limited liability
companies. If a partnership or limited liability company in which we own an
interest takes or expects to take actions that could jeopardize our status as a
REIT or require us to pay tax, we may be forced to dispose of our interest in
such entity. In addition, it is possible that a partnership or limited
liability company could take an action which could cause us to fail a gross
income or asset test, and that we would not become aware of such action in time
to dispose of our interest in the partnership or limited liability company or
take other corrective action on a timely basis. In that case, we could fail to
qualify as a REIT unless we were entitled to relief, as described below. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We may from
time to time own and operate certain properties through wholly-owned
subsidiaries that we intend to be treated as &#8220;qualified REIT subsidiaries&#8221;
under the Code. A corporation will qualify as our qualified REIT subsidiary if
we own 100% of the corporation&#8217;s outstanding stock and do not elect with the
subsidiary to treat it as a &#8220;taxable REIT subsidiary,&#8221; as described below. A
qualified REIT subsidiary is not treated as a separate corporation, and all
assets, liabilities </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">and items of income, gain, loss,
deduction and credit of a qualified REIT subsidiary are treated as assets,
liabilities and items of income, gain, loss, deduction and credit of the parent
REIT for all purposes under the Code, including all REIT qualification tests.
Thus, in applying the federal tax requirements described in this discussion,
any qualified REIT subsidiaries we own are ignored, and all assets, liabilities
and items of income, gain, loss, deduction and credit of such corporations are
treated as our assets, liabilities and items of income, gain, loss, deduction
and credit. A qualified REIT subsidiary is not subject to federal income tax,
and our ownership of the stock of a qualified REIT subsidiary will not violate
the restrictions on ownership of securities, as described below under &#8220;&#8212;Asset
Tests.&#8221; </font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_5"></a><a name="_bclPageBorder5"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Ownership
of Interests in Taxable REIT Subsidiaries</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. We currently own an interest
in a number of taxable REIT subsidiaries and may acquire securities in
additional taxable REIT subsidiaries in the future. A taxable REIT subsidiary
is a corporation other than a REIT in which a REIT directly or indirectly holds
stock, and that has made a joint election with such REIT to be treated as a
taxable REIT subsidiary. If a taxable REIT subsidiary owns more than 35% of the
total voting power or value of the outstanding securities of another
corporation, such other corporation will also be treated as a taxable REIT
subsidiary. Other than some activities relating to lodging and health care
facilities, a taxable REIT subsidiary may generally engage in any business,
including the provision of customary or non-customary services to tenants of
its parent REIT. A taxable REIT subsidiary is subject to federal income tax as
a regular C corporation. In addition, a taxable REIT subsidiary may be prevented
from deducting interest on debt funded directly or indirectly by its parent
REIT if certain tests regarding the taxable REIT subsidiary&#8217;s debt to equity
ratio and interest expense are not satisfied. A REIT&#8217;s ownership of securities
of a taxable REIT subsidiary is not subject to the 5% or 10% asset test
described below. See &#8220;&#8212;Asset Tests.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Income
Tests</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. We must satisfy two gross income requirements annually to
maintain our qualification as a REIT. First, in each taxable year we must
derive directly or indirectly at least 75% of our gross income (excluding gross
income from prohibited transactions, certain hedging transactions and certain
foreign currency gains) from investments relating to real property or mortgages
on real property, including &#8220;rents from real property,&#8221; dividends from other
REITs and, in certain circumstances, interest, or certain types of temporary
investments. Second, in each taxable year we must derive at least 95% of our
gross income (excluding gross income from prohibited transactions, certain
hedging transactions, and certain foreign currency gains) from the real
property investments described above or dividends, interest and gain from the
sale or disposition of stock or securities, or from any combination of the
foregoing. For these purposes, the term &#8220;interest&#8221; generally does not include
any amount received or accrued, directly or indirectly, if the determination of
all or some of the amount depends in any way on the income or profits of any
person. However, an amount received or accrued generally will not be excluded
from the term &#8220;interest&#8221; solely by reason of being based on a fixed percentage
or percentages of receipts or sales. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Rents we
receive from a tenant will qualify as &#8220;rents from real property&#8221; for the
purpose of satisfying the gross income requirements for a REIT described above
only if all of the following conditions are met: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; The amount of rent is not based in
any way on the income or profits of any person. However, an amount we receive
or accrue generally will not be excluded from the term &#8220;rents from real
property&#8221; solely because it is based on a fixed percentage or percentages of
receipts or sales; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Neither we nor an actual or
constructive owner of 10% or more of our capital stock actually or
constructively owns 10% or more of the interests in the assets or net profits
of a non-corporate tenant, or, if the tenant is a corporation, 10% or more of
the voting power or value of all classes of stock of the tenant. Rents we
receive from such a tenant that is a taxable REIT subsidiary of ours, however,
will not be excluded from the definition of &#8220;rents from real property&#8221; as a
result of this condition if at least 90% of the space at the property to which
the rents relate is leased to third parties, and the rents paid by the taxable
REIT subsidiary are substantially comparable to rents paid by our other tenants
for comparable space. Whether rents paid by a taxable REIT subsidiary are
substantially comparable to rents paid by other tenants is determined at the
time the lease with the taxable REIT subsidiary is entered into, extended, and
modified, if such modification increases the rents due under such lease.
Notwithstanding the foregoing, however, if a lease with a &#8220;controlled taxable
REIT subsidiary&#8221; is modified and such modification results in an increase in
the rents payable by such taxable REIT subsidiary, any such increase will not
qualify as &#8220;rents from real property.&#8221; For purposes of this rule, a &#8220;controlled
taxable REIT subsidiary&#8221; is a taxable REIT subsidiary in which the parent REIT
owns stock possessing more than 50% of the voting power or more than 50% of the
total value of the outstanding stock of such taxable REIT subsidiary;</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; Rent attributable to personal
property, leased in connection with a lease of real property, is not greater
than 15% of the total rent received under the lease. If this condition is not
met, then the portion of the rent attributable to personal property will not
qualify as &#8220;rents from real property&#8221;; and</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_6"></a><a name="_bclPageBorder6"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; We
generally do not operate or manage the property or furnish or render services
to our tenants, subject to a 1% de minimis exception and except as provided
below. We may, however, perform services that are &#8220;usually or customarily
rendered&#8221; in connection with the rental of space for occupancy only and are not
otherwise considered &#8220;rendered to the occupant&#8221; of the property. Examples of
these services include the provision of light, heat, or other utilities, trash
removal and general maintenance of common areas. In addition, we may employ an
independent contractor from whom we derive no revenue to provide customary
services, or a taxable REIT subsidiary (which may be wholly or partially owned
by us) to provide both customary and non-customary services to our tenants
without causing the rent we receive from those tenants to fail to qualify as
&#8220;rents from real property.&#8221; Any amounts we receive from our taxable REIT
subsidiaries with respect their provision of services are expected to be
treated as dividends or interest, which would qualify for the 95% gross income
test, but not the 75% gross income test.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We generally
do not intend to take actions we believe will cause us to fail to satisfy the
rental conditions described above. However, we may intentionally fail to
satisfy some of these conditions to the extent we determine, based on the
advice of our tax counsel, that the failure will not jeopardize our tax status
as a REIT. In addition, with respect to the limitation on the rental of
personal property, we generally have not obtained appraisals of the real
property and personal property leased to tenants. Accordingly, there can be no
assurance that the IRS will not disagree with our determinations of value.&#160; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">From time to
time, we may enter into hedging transactions with respect to one or more of our
assets or liabilities. Our hedging activities may include entering into
interest rate swaps, caps, and floors, options to purchase these items, and
futures and forward contracts. Income from a hedging transaction, including
gain from the sale or disposition of such a transaction, that is clearly
identified as a hedging transaction as specified in the Code will not
constitute gross income and thus will be exempt from the 75% and 95% gross
income tests. The term &#8220;hedging transaction,&#8221; as used above, generally means
(A) any transaction we enter into in the normal course of our business
primarily to manage risk of (1) interest rate changes or fluctuations with
respect to borrowings made or to be made by us to acquire or carry real estate
assets, or (2) currency fluctuations with respect to an item of qualifying
income under the 75% or 95% gross income test and (B) for taxable years
beginning after December 31, 2015, new transactions entered into to hedge the income
or loss from prior hedging transactions, where the property or indebtedness
which was the subject of the prior hedging transaction was extinguished or
disposed of. To the extent that we do not properly identify such transactions
as hedges or we hedge with other types of financial instruments, the income
from those transactions is not likely to be treated as qualifying income for
purposes of the gross income tests. We intend to structure any hedging
transactions in a manner that does not jeopardize our status as a REIT. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">From time to
time we may own properties or entities located outside the United States. These
acquisitions could cause us to incur foreign currency gains or losses. Any
foreign currency gains, to the extent attributable to specified items of
qualifying income or gain, or specified qualifying assets, however, generally
will not constitute gross income for purposes of the 75% and 95% gross income
tests, and therefore will be excluded from these tests. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">To the extent
our taxable REIT subsidiaries pay dividends, we generally will derive our allocable
share of such dividend income. Such dividend income will qualify under the 95%,
but not the 75%, gross income test. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We will
monitor the amount of the dividend and other income from our taxable REIT
subsidiaries and will take actions intended to keep this income, and any other
nonqualifying income, within the limitations of the gross income tests.
Although we expect these actions will be sufficient to prevent a violation of
the gross income tests, we cannot guarantee that such actions will in all cases
prevent such a violation. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If we fail to
satisfy one or both of the 75% or 95% gross income tests for any taxable year,
we may nevertheless qualify as a REIT for the year if we are entitled to relief
under certain provisions of the Code. We generally may make use of the relief
provisions if: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; following our identification of
the failure to meet the 75% or 95% gross income tests for any taxable year, we
file a schedule with the IRS setting forth each item of our gross income for
purposes of the 75% or 95% gross income tests for such taxable year in
accordance with Treasury Regulations to be issued; and </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; our failure to meet these tests
was due to reasonable cause and not due to willful neglect. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">It is not
possible, however, to state whether in all circumstances we would be entitled
to the benefit of these relief provisions. For example, if we fail to satisfy
the gross income tests because nonqualifying income that we intentionally
accrue or receive exceeds the limits on nonqualifying income, the IRS could conclude
that our failure to satisfy the tests was </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">not due to
reasonable cause. If these relief provisions do not apply to a particular set
of circumstances, we will not qualify as a REIT. As discussed above in
&#8220;&#8212;Taxation of Our Company&#8212;General,&#8221; even if these relief provisions apply, and
we retain our status as a REIT, a tax would be imposed with respect to our
nonqualifying income. We may not always be able to comply with the gross income
tests for REIT qualification despite periodic monitoring of our income. </font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_7"></a><a name="_bclPageBorder7"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Prohibited
Transaction Income</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Any gain that we realize on the sale of property
held as inventory or otherwise held primarily for sale to customers in the
ordinary course of business will be treated as income from a prohibited
transaction that is subject to a 100% penalty tax, unless certain safe harbor
exceptions apply. Our gain would include any gain realized by our qualified
REIT subsidiaries and our share of any gain realized by any of the partnerships
or limited liability companies in which we own an interest. This prohibited
transaction income may also adversely affect our ability to satisfy the gross
income tests for qualification as a REIT. Under existing law, whether property
is held as inventory or primarily for sale to customers in the ordinary course
of a trade or business is a question of fact that depends on all the facts and
circumstances surrounding the particular transaction. We intend to hold our
properties for investment with a view to long-term appreciation, to engage in
the business of acquiring, developing and owning our properties and to make
occasional sales of the properties as are consistent with our investment
objectives. We do not intend to enter into any sales that are prohibited
transactions. However, the IRS may successfully contend that some or all of the
sales made by us or our subsidiary partnerships or limited liability companies
are prohibited transactions. We would be required to pay the 100% penalty tax
on our allocable share of the gains resulting from any such sales. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Penalty
Tax</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Any redetermined rents, redetermined deductions, excess interest
or (for taxable years beginning after December 31, 2015) redetermined TRS
service income we generate will be subject to a 100% penalty tax. In general,
redetermined rents are rents from real property that are overstated as a result
of any services furnished to any of our tenants by a taxable REIT subsidiary of
ours, redetermined deductions and excess interest represent any amounts that
are deducted by a taxable REIT subsidiary of ours for amounts paid to us that
are in excess of the amounts that would have been deducted based on arm&#8217;s
length negotiations, and redetermined TRS service income is income of a taxable
REIT subsidiary that is understated as a result of services provided to us or
on our behalf.. Rents we receive will not constitute redetermined rents if they
qualify for certain safe harbor provisions contained in the Code. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We do not
believe we have been, and do not expect to be, subject to this penalty tax,
although our rental or service arrangements may not satisfy the safe-harbor
provisions described above. These determinations are inherently factual, and
the IRS has broad discretion to assert that amounts paid between related
parties should be reallocated to clearly reflect their respective incomes. If
the IRS successfully made such an assertion, we would be required to pay a 100%
penalty tax on the excess of an arm&#8217;s length fee for tenant services over the
amount actually paid, or on the excess rents paid to us. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Asset
Tests</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. At the close of each calendar quarter of our taxable year, we
must also satisfy certain tests relating to the nature and diversification of
our assets. First, at least 75% of the value of our total assets must be
represented by real estate assets, cash, cash items and U.S. government
securities. For purposes of this test, the term &#8220;real estate assets&#8221; generally
means real property (including interests in real property and interests in
mortgages on real property) and shares (or transferable certificates of
beneficial interest) in other REITs, as well as any stock or debt instrument
attributable to the investment of the proceeds of a stock offering or a public
offering of debt with a term of at least five years, but only for the one-year
period beginning on the date the REIT receives such proceeds. For taxable years
beginning after December 31, 2015, the term &#8220;real estate assets&#8221; also includes
debt instruments of publicly offered REITs, personal property securing a
mortgage secured by both real property and personal property if the fair market
value of such personal property does not exceed 15% of the total fair market
value of all such property, and personal property leased in connection with a
lease of real property for which the rent attributable to personal property is
not greater than 15% of the total rent received under the lease.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Second, not
more than 25% of the value of our total assets may be represented by securities
(including securities of taxable REIT subsidiaries), other than those securities
includable in the 75% asset test. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Third, of the
investments included in the 25% asset class, and except for investments in
other REITs, our qualified REIT subsidiaries and taxable REIT subsidiaries, the
value of any one issuer&#8217;s securities may not exceed 5% of the value of our
total assets, and we may not own more than 10% of the total vote or value of
the outstanding securities of any one issuer except, in the case of the 10%
value test, securities satisfying the &#8220;straight debt&#8221; safe-harbor or securities
issued by a partnership that itself would satisfy the 75% income test if it
were a REIT. Certain types of securities we may own are disregarded as
securities solely for purposes of the 10% value test, including, but not
limited to, any loan to an individual or an estate, any obligation to pay rents
from real property and any security issued by a REIT. In addition, solely for
purposes of the 10% value test, the determination of our interest in the assets
of a partnership or limited liability company in which we own an interest will
be based on our proportionate interest in any securities issued by the
partnership or limited liability company, excluding for this purpose certain
securities described in the Code. From time to time we may own securities </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(including debt securities) of issuers that do not qualify
as a REIT, a qualified REIT subsidiary or a taxable REIT subsidiary. We intend
that our ownership of any such securities will be structured in a manner that
allows us to comply with the asset tests described above.</font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_8"></a><a name="_bclPageBorder8"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Fourth, not
more than 25% (20% for taxable years beginning after December 31, 2017) of the
value of our total assets may be represented by the securities of one or more
taxable REIT subsidiaries. We currently own 100% of the stock of certain corporations
that have elected, together with us, to be treated as our taxable REIT
subsidiaries. So long as each of these companies qualifies as a taxable REIT
subsidiary, we will not be subject to the 5% asset test, the 10% voting
securities limitation or the 10% value limitation with respect to our ownership
of their stock. We may acquire securities in other taxable REIT subsidiaries in
the future. We believe that the aggregate value of our taxable REIT
subsidiaries has not exceeded, and in the future will not exceed, 25% (20% for
taxable years beginning after December 31, 2017) of the aggregate value of our
gross assets. We generally do not obtain independent appraisals to support
these conclusions. In addition, there can be no assurance that the IRS will not
disagree with our determinations of value.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Fifth, for
taxable years beginning after December 31, 2015, not more than 25% of the value
of our total assets may be represented by debt instruments of publicly offered REITs
to the extent those debt instruments would not be real estate assets but for
the inclusion of debt instruments of publicly offered REITs in the meaning of
real estate assets effective for taxable years beginning after December 31,
2015, as described above.&#160; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The asset
tests must be satisfied at the close of each calendar quarter of our taxable
year in which we (directly or through our qualified REIT subsidiaries,
partnerships or limited liability companies) acquire securities in the
applicable issuer, and also at the close of each calendar quarter in which we
increase our ownership of securities of such issuer (including as a result of
increasing our interest in a partnership or limited liability company that owns
such securities, or acquiring other assets). For example, our indirect ownership
of securities of each issuer may increase as a result of our capital
contributions to, or the redemption of other partners&#8217; or members&#8217; interests
in, a partnership or limited liability company in which we have an ownership
interest. However, after initially meeting the asset tests at the close of any
quarter, we will not lose our status as a REIT for failure to satisfy the asset
tests at the end of a later quarter solely by reason of changes in asset
values. If we fail to satisfy an asset test because we acquire securities or
other property during a quarter (including as a result of an increase in our
interests in a partnership or limited liability company), we may cure this
failure by disposing of sufficient nonqualifying assets within 30 days after the
close of that quarter. We believe that we have maintained, and we intend to
maintain, adequate records of the value of our assets to ensure compliance with
the asset tests. If we fail to cure any noncompliance with the asset tests
within the 30-day cure period, we would cease to qualify as a REIT unless we
are eligible for certain relief provisions discussed below. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Certain relief
provisions may be available to us if we discover a failure to satisfy the asset
tests described above after the 30-day cure period. Under these provisions, we
will be deemed to have met the 5% and 10% asset tests if the value of our
nonqualifying assets (i) does not exceed the lesser of (a) 1% of the total
value of our assets at the end of the applicable quarter or (b) $10,000,000,
and (ii) we dispose of the nonqualifying assets or otherwise satisfy such tests
within (a) six months after the last day of the quarter in which the failure to
satisfy the asset tests is discovered or (b) the period of time prescribed by
Treasury Regulations to be issued. For violations of any of the asset tests due
to reasonable cause and not due to willful neglect and that are, in the case of
the 5% and 10% asset tests, in excess of the de minimis exception described
above, we may avoid disqualification as a REIT after the 30-day cure period by
taking steps including (i) the disposition of sufficient nonqualifying assets,
or the taking of other actions, which allow us to meet the asset tests within
(a) six months after the last day of the quarter in which the failure to
satisfy the asset tests is discovered or (b) the period of time prescribed by
Treasury Regulations to be issued, (ii) paying a tax equal to the greater of
(a) $50,000 or (b) the highest corporate tax rate multiplied by the net income
generated by the nonqualifying assets, and (iii) disclosing certain information
to the IRS.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Although we
believe we have satisfied the asset tests described above and plan to take
steps to ensure that we satisfy such tests for any quarter with respect to
which retesting is to occur, there can be no assurance that we will always be
successful, or will not require a reduction in our overall interest in an
issuer (including in a taxable REIT subsidiary). If we fail to cure any
noncompliance with the asset tests in a timely manner, and the relief
provisions described above are not available, we would cease to qualify as a
REIT. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Annual
Distribution Requirements</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.&#160; To maintain our qualification as a REIT, we
are required to distribute dividends, other than capital gain dividends, to our
stockholders in an amount at least equal to the sum of: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; 90% of our &#8220;REIT taxable income&#8221;;
and </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; 90% of our after-tax net income,
if any, from foreclosure property; minus </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_9"></a><a name="_bclPageBorder9"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the excess
of the sum of certain items of non-cash income over 5% of our &#8220;REIT taxable
income.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">For these
purposes, our &#8220;REIT taxable income&#8221; is computed without regard to the dividends
paid deduction and our net capital gain. In addition, for purposes of this
test, non-cash income generally means income attributable to leveled stepped
rents, original issue discount on purchase money debt, cancellation of
indebtedness, or a like-kind exchange that is later determined to be taxable.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">In addition,
our &#8220;REIT taxable income&#8221; will be reduced by any taxes we are required to pay
on any gain we recognize from the disposition of any asset we acquired from a
corporation that is or has been a C corporation in a transaction in which our
tax basis in the asset is less than the fair market value of the asset, in each
case determined as of the date on which we acquired the asset, within a
specified period following our acquisition of such asset, as described above
under &#8220;&#8212;General.&#8221;</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We generally
must pay, or be treated as paying, the distributions described above in the
taxable year to which they relate. At our election, a distribution will be
treated as paid in a taxable year if it is declared before we timely file our
tax return for such year and paid on or before the first regular dividend
payment after such declaration, provided such payment is made during the
12-month period following the close of such year. These distributions are
treated as received by our stockholders in the year in which they are paid.
This is so even though these distributions relate to the prior year for purposes
of the 90% distribution requirement. In order to be taken into account for
purposes of our distribution requirement, except as provided below, the amount
distributed must not be preferential&#8212;i.e., every stockholder of the class of
stock to which a distribution is made must be treated the same as every other
stockholder of that class, and no class of stock may be treated other than
according to its dividend rights as a class. This preferential limitation will
not apply to distributions made in our taxable years beginning after December
31, 2014, provided we qualify as a &#8220;publicly offered REIT.&#8221; We believe that we
are, and expect we will continue to be, a &#8220;publicly offered REIT.&#8221; To the
extent that we do not distribute all of our net capital gain, or distribute at
least 90%, but less than 100%, of our &#8220;REIT taxable income,&#8221; as adjusted, we
will be required to pay tax on the undistributed amount at regular corporate
tax rates. We believe that we have made, and we intend to continue to make,
timely distributions sufficient to satisfy these annual distribution
requirements and to minimize our corporate tax obligations.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">We expect that
our REIT taxable income will be less than our cash flow because of depreciation
and other non-cash charges included in computing REIT taxable income.
Accordingly, we anticipate that we generally will have sufficient cash or
liquid assets to enable us to satisfy the distribution requirements described
above. However, from time to time, we may not have sufficient cash or other liquid
assets to meet these distribution requirements due to timing differences
between the actual receipt of income and actual payment of deductible expenses,
and the inclusion of income and deduction of expenses in determining our
taxable income. If these timing differences occur, we may borrow funds to pay
dividends in order to meet the distribution requirements. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Under some
circumstances, we may be able to rectify an inadvertent failure to meet the 90%
distribution requirement for a year by paying &#8220;deficiency dividends&#8221; to our
stockholders in a later year, which may be included in our deduction for
dividends paid for the earlier year. Thus, we may be able to avoid being taxed
on amounts distributed as deficiency dividends, subject to the 4% excise tax
described below. However, we will be required to pay interest to the IRS based
upon the amount of any deduction claimed for deficiency dividends. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Furthermore,
we will be required to pay a 4% excise tax to the extent we fail to distribute
during each calendar year at least the sum of 85% of our ordinary income for
such year, 95% of our capital gain net income for the year and any
undistributed taxable income from prior periods. Any ordinary income and net
capital gain on which this excise tax is imposed for any year is treated as an
amount distributed during that year for purposes of calculating such tax. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">For purposes
of the 90% distribution requirement and excise tax described above, dividends
declared during the last three months of the taxable year, payable to stockholders
of record on a specified date during such period and paid during January of the
following year, will be treated as paid by us and received by our stockholders
on December 31 of the year in which they are declared. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Like-Kind
Exchanges</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. We may dispose of properties in transactions intended to
qualify as like-kind exchanges under the Code. Such like-kind exchanges are
intended to result in the deferral of gain for federal income tax purposes. The
failure of any such transaction to qualify as a like-kind exchange could
require us to pay federal income tax, possibly including the 100% prohibited
transaction tax, depending on the facts and circumstances surrounding the
particular transaction. </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_10"></a><a name="_bclPageBorder10"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Failure to Qualify</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.&#160; If we discover a
violation of a provision of the Code that would result in our failure to
qualify as a REIT, certain specified cure provisions may be available to us.
Except with respect to violations of the gross income tests and asset tests
(for which the cure provisions are described above), and provided the violation
is due to reasonable cause and not due to willful neglect, these cure
provisions generally impose a $50,000 penalty for each violation in lieu of a
loss of REIT status. If we fail to satisfy the requirements for taxation as a
REIT in any taxable year, and the relief provisions do not apply, we will be
required to pay tax, including any applicable alternative minimum tax, on our
taxable income at regular corporate rates. Distributions to stockholders in any
year in which we fail to qualify as a REIT will not be deductible by us, and we
will not be required to distribute any amounts to our stockholders. As a
result, we anticipate that our failure to qualify as a REIT would reduce the
cash available for distribution by us to our stockholders. In addition, if we
fail to qualify as a REIT, all distributions to stockholders will be taxable as
regular corporate dividends to the extent of our current and accumulated
earnings and profits. In such event, corporate distributees may be eligible for
the dividends-received deduction. In addition, non-corporate stockholders,
including individuals, may be eligible for the preferential tax rates on
qualified dividend income. Unless entitled to relief under specific statutory
provisions, we would also be ineligible to elect to be treated as a REIT for
the four taxable years following the year for which we lose our qualification.
It is not possible to state whether in all circumstances we would be entitled
to this statutory relief. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Tax Aspects of the
Subsidiary Partnerships and the Limited Liability Companies </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">General</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.
From time to time, we may own, directly or indirectly, interests in various
partnerships and limited liability companies. We expect these will be treated
as partnerships or disregarded entities for federal income tax purposes. In
general, entities that are treated as partnerships or disregarded entities for
federal income tax purposes are &#8220;pass-through&#8221; entities which are not required
to pay federal income tax. Rather, partners or members of such entities are
allocated their shares of the items of income, gain, loss, deduction and credit
of the partnership or limited liability company, and are potentially required
to pay tax on this income, without regard to whether they receive a distribution
from the partnership or limited liability company. We will include in our
income our share of these partnership and limited liability company items for
purposes of the various gross income tests, the computation of our REIT taxable
income, and the REIT distribution requirements. Moreover, for purposes of the
asset tests, we will include our pro rata share of assets held by these
partnerships and limited liability companies, based on our capital interests in
each such entity. See &#8220;&#8212;Taxation of Our Company.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Entity
Classification</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Our interests in the subsidiary partnerships and
limited liability companies involve special tax considerations, including the
possibility that the IRS might challenge the status of these entities as
partnerships (or disregarded entities). For example, an entity that would
otherwise be treated as a partnership for federal income tax purposes may
nonetheless be taxable as a corporation if it is a &#8220;publicly traded
partnership&#8221; and certain other requirements are met. A partnership or limited
liability company would be treated as a publicly traded partnership if its
interests are traded on an established securities market or are readily
tradable on a secondary market or a substantial equivalent thereof, within the
meaning of applicable Treasury Regulations. We do not anticipate that any
subsidiary partnership or limited liability company will be treated as a
publicly traded partnership that is taxable as a corporation. However, if any
such entity were treated as a corporation, it would be required to pay an
entity-level tax on its income. In this situation, the character of our assets
and items of gross income would change and could prevent us from satisfying the
REIT asset tests and possibly the REIT income tests. See &#8220;&#8212;Taxation of Our
Company&#8212;Asset Tests&#8221; and &#8220;&#8212;Income Tests.&#8221; This, in turn, could prevent us from
qualifying as a REIT. See &#8220;&#8212;Failure to Qualify&#8221; for a discussion of the effect
of our failure to meet these tests. In addition, a change in the tax status of
one or more of the partnerships or limited liability companies might be treated
as a taxable event. If so, we might incur a tax liability without any related
cash payment. We believe that each of our partnerships and limited liability
companies have been and will continue to be treated as partnerships or
disregarded entities for federal income tax purposes. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Allocations
of Income, Gain, Loss and Deduction</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A partnership or limited liability
company agreement will generally determine the allocation of income and losses
among partners or members, provided such allocations comply with the provisions
of Section 704(b) of the Code and the related Treasury Regulations. If an
allocation of partnership income or loss does not comply with the requirements
of Section 704(b) of the Code and the Treasury Regulations thereunder, the item
subject to the allocation will be reallocated in accordance with the partners&#8217;
or members&#8217; interests in the partnership or limited liability company, as the
case may be. This reallocation will be determined by taking into account all of
the facts and circumstances relating to the economic arrangement of the
partners or members with respect to such item. We intend that the allocations
of taxable income and loss in each of the partnerships and limited liability
companies in which we own an interest from time to time comply with the
requirements of Section 704(b) of the Code and the Treasury Regulations
thereunder. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Tax
Allocations With Respect to the Properties</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Under Section 704(c) of the
Code, income, gain, loss and deduction attributable to appreciated or
depreciated property that is contributed to a partnership or limited liability
company in exchange for an interest in the partnership or limited liability
company must be allocated in a manner so that the </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">contributing
partner or member is charged with the unrealized gain or benefits from the
unrealized loss associated with the property at the time of the contribution.
The amount of the unrealized gain or unrealized loss generally is equal to the
difference between the fair market value or book value and the adjusted tax
basis of the contributed property at the time of contribution, as adjusted from
time to time. These allocations are solely for federal income tax purposes and
do not affect the book capital accounts or other economic or legal arrangements
among the partners or members. Some of the partnerships and/or limited
liability companies in which we own an interest were formed by way of
contributions of appreciated property. The relevant partnership and/or limited
liability company agreements require that allocations be made in a manner
consistent with Section 704(c) of the Code.</font><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;"> </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Under Section 704(c) of the Code we
could be allocated less depreciation or more gain on sale with respect to a
contributed property than the amounts that would have been allocated to us if
we had instead acquired the contributed property with an initial tax basis
equal to its fair market value.</font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_11"></a><a name="_bclPageBorder11"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Any property
acquired by a subsidiary partnership or limited liability company in a taxable
transaction will initially have a tax basis equal to its fair market value, and
Section 704(c) of the Code generally will not apply.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Partnership
Audit Rules</font></i></b><i><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></i><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#160; The recently enacted Bipartisan Budget Act of 2015
changes the rules applicable to U.S. federal income tax audits of partnerships.
Under the new rules (which are generally effective for taxable years beginning
after December 31, 2017), among other changes and subject to certain
exceptions, any audit </font><font color=black face="Times New Roman" lang=EN style="font-size:10.0pt;">adjustment to
items of income, gain, loss, deduction, or credit of a partnership (and any
partner&#8217;s distributive share thereof) is determined, and taxes, interest, or
penalties attributable thereto are assessed and collected, at the partnership
level</font><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. </font><font color=black face="Times New Roman" lang=EN style="font-size:10.0pt;">Although
it is uncertain how these new rules will be implemented, it is possible that
they could result in partnerships in which we directly or indirect invest being
</font><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;">required to pay additional taxes, interest and
penalties as a result of an audit adjustment, and we, as a direct or indirect
partner of these partnerships, could be required to bear the economic burden of
those taxes, interest, and penalties even though we, as a REIT, may not
otherwise have been required to pay additional corporate-level taxes as a
result of the related audit adjustment.&nbsp;The changes created by these new
rules are sweeping and in many respects dependent on the promulgation of future
regulations or other guidance by the U.S. Treasury.&nbsp;Investors are urged to
consult their tax advisors with respect to these changes and their potential
impact on their investment in our common stock.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Tax
Liabilities and Attributes Inherited Through Merger or Acquisitions</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. We
may from time to time acquire other REITs through merger or acquisition. If any
such REIT failed to qualify as a REIT for any of its taxable years, such REIT
would be liable for (and we, as the surviving corporation in the merger or
acquisition, would be obligated to pay) U.S. federal income tax on its taxable
income at regular rates. Furthermore, after the merger or acquisition is
effective, the asset and income tests will apply to all of our assets,
including the assets we acquire from such REIT, and to all of our income,
including the income derived from the assets we acquire from such REIT. As a
result, the nature of the assets that we acquire from such REITs and the income
we derive from those assets may have an effect on our tax status as a REIT.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Federal Income Tax
Considerations for Holders of Our Capital Stock and Debt Securities </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The following
summary describes the material U.S. federal income tax consequences to you of
acquiring, owning and disposing of our capital stock or debt securities. This
summary assumes you hold shares of our capital stock or debt securities as
&#8220;capital assets&#8221; (generally, property held for investment within the meaning of
Section 1221 of the Code). It does not address all U.S. federal income tax
consequences that may be relevant to you in light of your particular
circumstances. In addition, except where specifically noted, this discussion
does not address the tax consequences relevant to persons subject to special
rules, including, without limitation: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; banks, insurance companies, and
other financial institutions;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; tax-exempt organizations or
governmental organizations;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; S corporations, partnerships or
other entities or arrangements treated as partnerships for U.S. federal income
tax purposes (and investors therein);</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; persons who hold or receive our
capital stock pursuant to the exercise of any employee stock option or
otherwise as compensation;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; persons subject to the alternative
minimum tax;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; regulated investment companies and
REITs;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160;  &#8220;controlled foreign
corporations,&#8221; &#8220;passive foreign investment companies,&#8221; and corporations that
accumulate earnings to avoid U.S. federal income tax; </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_12"></a><a name="_bclPageBorder12"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; broker,
dealers or traders in securities; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; U.S. expatriates and former
citizens or long-term residents of the United States; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; persons holding our capital stock
or debt securities as part of a hedge, straddle or other risk reduction
strategy or as part of a conversion transaction or other integrated investment;
</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; persons deemed to sell our capital
stock or debt securities under the constructive sale provisions of the Code; or</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; United States persons whose
functional currency is not the U.S. dollar. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If you are
considering acquiring our capital stock or debt securities, you should consult
your tax advisor concerning the application of U.S. federal income tax laws to
your particular situation as well as any consequences of the acquisition,
ownership and disposition of our capital stock or debt securities arising under
the laws of any state, local or non-U.S. taxing jurisdiction or under any
applicable tax treaty. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">When we use
the term &#8220;U.S. holder,&#8221; we mean a holder of shares of our capital stock or debt
securities who, for U.S. federal income tax purposes, is: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; an individual who is a citizen or
resident of the United States;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; a corporation, including an entity
treated as a corporation for U.S. federal income tax purposes, created or
organized in or under the laws of the United States or of any state thereof or
in the District of Columbia; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; an estate the income of which is
subject to U.S. federal income taxation regardless of its source; or </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; a trust that (1) is subject to the
primary supervision of a United States court and the control of one or more
United States persons or (2) has a valid election in effect under applicable
Treasury Regulations to be treated as a United States person. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If you are an
individual, corporation, estate or trust that holds shares of our capital stock
or debt securities and you are not a U.S. holder, you are a &#8220;non-U.S. holder.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If an entity
treated as a partnership for U.S. federal income tax purposes holds shares of
our capital stock or debt securities, the tax treatment of a partner in the
partnership generally will depend on the status of the partner, the activities
of the partnership and certain determinations made at the partner level.
Accordingly, partnerships holding shares of our capital stock or debt
securities and the partners in such partnerships should consult their tax
advisors regarding the U.S. federal income tax consequences to them. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Taxation of Taxable U.S.
Holders of Our Capital Stock </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Distributions
Generally</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Distributions out of our current or accumulated earnings and
profits will be treated as dividends and, other than with respect to capital
gain dividends and certain amounts which have previously been subject to
corporate level tax, as discussed below, will be taxable to our taxable U.S.
holders as ordinary income when actually or constructively received. See &#8220;&#8212;Tax
Rates&#8221; below. As long as we qualify as a REIT, these distributions will not be
eligible for the dividends-received deduction in the case of U.S. holders that
are corporations or, except to the extent described in &#8220;&#8212;Tax Rates&#8221; below, the
preferential rates on qualified dividend income applicable to non-corporate
U.S. holders, including individuals. For purposes of determining whether
distributions to holders of our capital stock are out of our current or
accumulated earnings and profits, our earnings and profits will be allocated
first to our outstanding preferred stock, if any, and then to our outstanding
common stock. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">To the extent
that we make distributions on our capital stock in excess of our current and
accumulated earnings and profits allocable to such stock, these distributions
will be treated first as a tax-free return of capital to a U.S. holder. This
treatment will reduce the U.S. holder&#8217;s adjusted tax basis in such shares of
stock by the amount of the distribution, but not below zero. Distributions in
excess of our current and accumulated earnings and profits and in excess of a
U.S. holder&#8217;s adjusted tax basis in its shares will be taxable as capital gain.
Such gain will be taxable as long-term capital gain if the shares have been
held for more than one year. Dividends we declare in October, November, or
December of any year and which are payable to a holder of record on a specified
date in any of these months will be treated as both paid by us and received by
the holder on December 31 of that year, provided we actually pay the dividend
on or before January 31 of the following year. U.S. holders may not include in
their own income tax returns any of our net operating losses or capital losses.
</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_13"></a><a name="_bclPageBorder13"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Capital Gain Dividends</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Dividends that we
properly designate as capital gain dividends will be taxable to our taxable
U.S. holders as a gain from the sale or disposition of a capital asset held for
more than one year, to the extent that such gain does not exceed our actual net
capital gain for the taxable year and, for taxable years beginning after
December 31, 2015, may not exceed our dividends paid for the taxable year,
including dividends paid the following year that are treated as paid in the
current year. U.S. holders that are corporations may, however, be required to
treat up to 20% of certain capital gain dividends as ordinary income. If we
properly designate any portion of a dividend as a capital gain dividend then,
except as otherwise required by law, we presently intend to allocate a portion
of the total capital gain dividends paid or made available to holders of all
classes of our capital stock for the year to the holders of each class of our
capital stock in proportion to the amount that our total dividends, as
determined for U.S. federal income tax purposes, paid or made available to the
holders of each such class of our capital stock for the year bears to the total
dividends, as determined for U.S. federal income tax purposes, paid or made available
to holders of all classes of our capital stock for the year. In addition,
except as otherwise required by law, we will make a similar allocation with
respect to any undistributed long term capital gains which are to be included
in our stockholders&#8217; long term capital gains, based on the allocation of the
capital gain amount which would have resulted if those undistributed long term
capital gains had been distributed as &#8220;capital gain dividends&#8221; by us to our
stockholders.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Retention
of Net Capital Gains</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. We may elect to retain, rather than distribute as
a capital gain dividend, all or a portion of our net capital gains. If we make
this election, we would pay tax on our retained net capital gains. In addition,
to the extent we so elect, our earnings and profits (determined for federal
income tax purposes) would be adjusted accordingly, and a U.S. holder generally
would: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; include its pro rata share of our
undistributed net capital gains in computing its long-term capital gains in its
return for its taxable year in which the last day of our taxable year falls,
subject to certain limitations as to the amount that is includable; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; be deemed to have paid its share
of the capital gains tax imposed on us on the designated amounts included in
the U.S. holder&#8217;s income as long-term capital gain; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; receive a credit or refund for the
amount of tax deemed paid by it; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; increase the adjusted tax basis of
its capital stock by the difference between the amount of includable gains and
the tax deemed to have been paid by it; and </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; in the case of a U.S. holder that
is a corporation, appropriately adjust its earnings and profits for the
retained capital gains in accordance with Treasury Regulations to be
promulgated by the IRS. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Passive
Activity Losses and Investment Interest Limitations</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Distributions we
make and gain arising from the sale or exchange by a U.S. holder of our capital
stock will not be treated as passive activity income. As a result, U.S. holders
generally will not be able to apply any &#8220;passive losses&#8221; against this income or
gain. A U.S. holder may elect to treat capital gain dividends, capital gains
from the disposition of our capital stock and income designated as qualified
dividend income, as described in &#8220;&#8212;Tax Rates&#8221; below, as investment income for
purposes of computing the investment interest limitation, but in such case, the
holder will be taxed at ordinary income rates on such amount. Other
distributions made by us, to the extent they do not constitute a return of
capital, generally will be treated as investment income for purposes of
computing the investment interest limitation. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Dispositions
of Our Capital Stock</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Except as described below under &#8220;Redemption or
Repurchase by Us,&#8221; if a U.S. holder sells or disposes of shares of our capital
stock, it will recognize gain or loss for federal income tax purposes in an
amount equal to the difference between the amount of cash and the fair market
value of any property received on the sale or other disposition and the
holder&#8217;s adjusted tax basis in the shares of our capital stock for tax
purposes. This gain or loss, except as provided below, will be long-term
capital gain or loss if the holder has held such capital stock for more than
one year. However, if a U.S. holder recognizes a loss upon the sale or other disposition
of capital stock that it has held for six months or less, after applying
certain holding period rules, the loss recognized will be treated as a
long-term capital loss to the extent the U.S. holder received distributions
from us which were required to be treated as long-term capital gains. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Redemption
or Repurchase by Us</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A redemption or repurchase of shares of our
capital stock will be treated under Section 302 of the Code as a distribution
(and taxable as a dividend to the extent of our current and accumulated
earnings and profits as described above under &#8220;&#8212;Distributions Generally&#8221;)
unless the redemption or repurchase satisfies one of the tests set forth in
Section 302(b) of the Code and is therefore treated as a sale or exchange of
the redeemed or repurchased shares. The redemption or repurchase generally will
be treated as a sale or exchange if it: </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_14"></a><a name="_bclPageBorder14"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; is
&#8220;substantially disproportionate&#8221; with respect to the U.S. holder; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; results in a &#8220;complete
termination&#8221; of the U.S. holder&#8217;s stock interest in us; or </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; is &#8220;not essentially equivalent to
a dividend&#8221; with respect to the U.S. holder, </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">all within the
meaning of Section 302(b) of the Code. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">In determining
whether any of these tests has been met, shares of our capital stock, including
common stock and other equity interests in us, considered to be owned by the
U.S. holder by reason of certain constructive ownership rules set forth in the
Code, as well as shares of our capital stock actually owned by the U.S. holder,
must generally be taken into account. Because the determination as to whether
any of the alternative tests of Section 302(b) of the Code will be satisfied
with respect to the U.S. holder depends upon the facts and circumstances at the
time that the determination must be made, U.S. holders are advised to consult
their tax advisors to determine such tax treatment. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If a
redemption or repurchase of shares of our capital stock is treated as a
distribution, the amount of the distribution will be measured by the amount of
cash and the fair market value of any property received. See &#8220;&#8212;Distributions
Generally.&#8221; A U.S. holder&#8217;s adjusted tax basis in the redeemed or repurchased
shares of the stock for tax purposes generally will be transferred to its
remaining shares of our capital stock, if any. If a U.S. holder owns no other
shares of our capital stock, under certain circumstances, such tax basis may be
transferred to a related person or it may be lost entirely. Proposed Treasury
Regulations issued in 2009, if enacted in their current form, would affect the
tax basis recovery rules described above. It is not clear whether these
proposed regulations will be enacted in their current form or at all.
Prospective investors should consult their tax advisors regarding the federal
income tax consequences of a redemption or repurchase of our capital stock.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If a
redemption or repurchase of shares of our capital stock is not treated as a
distribution, it will be treated as a taxable sale or exchange in the manner
described under &#8220;&#8212;Dispositions of Our Capital Stock.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Tax
Rates</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. The maximum tax rate for non-corporate taxpayers for (1)
long-term capital gains, including certain &#8220;capital gain dividends,&#8221; is
generally 20% (although depending on the characteristics of the assets which
produced these gains and on designations which we may make, certain capital
gain dividends may be taxed at a 25% rate) and (2) &#8220;qualified dividend income&#8221;
is generally 20%. In general, dividends payable by REITs are not eligible for
the reduced tax rate on qualified dividend income, except to the extent that
certain holding period requirements have been met and the REIT&#8217;s dividends are
attributable to dividends received from taxable corporations (such as its
taxable REIT subsidiaries) or to income that was subject to tax at the
corporate/REIT level (for example, if the REIT distributed taxable income that
it retained and paid tax on in the prior taxable year). In addition, U.S.
holders that are corporations may be required to treat up to 20% of some
capital gain dividends as ordinary income.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Taxation of Tax-Exempt
Holders of Our Capital Stock </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Dividend
income from us and gain arising upon a sale of shares of our capital stock
generally should not be unrelated business taxable income, or UBTI, to a
tax-exempt holder, except as described below. This income or gain generally
will be UBTI, however, if a tax-exempt holder holds its shares as
&#8220;debt-financed property&#8221; within the meaning of the Code. Generally,
&#8220;debt-financed property&#8221; is property the acquisition or holding of which was
financed through a borrowing by the tax-exempt holder. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">For tax-exempt
holders that are social clubs, voluntary employee benefit associations,
supplemental unemployment benefit trusts, or qualified group legal services
plans exempt from federal income taxation under Sections 501(c)(7), (c)(9),
(c)(17) or (c)(20) of the Code, respectively, income from an investment in our
shares will constitute UBTI unless the organization is able to properly claim a
deduction for amounts set aside or placed in reserve for specific purposes so
as to offset the income generated by its investment in our shares. These
prospective investors should consult their tax advisors concerning these &#8220;set
aside&#8221; and reserve requirements. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Notwithstanding
the above, however, a portion of the dividends paid by a &#8220;pension-held REIT&#8221;
may be treated as unrelated business taxable income as to certain trusts that
hold more than 10%, by value, of the interests in the REIT. A REIT will not be
a &#8220;pension-held REIT&#8221; if it is able to satisfy the &#8220;not closely held&#8221; requirement
without relying on the &#8220;look-through&#8221; exception with respect to certain trusts
or if such REIT is not &#8220;predominantly held&#8221; by &#8220;qualified trusts.&#8221; As a result
of restrictions on ownership and transfer of our stock contained in our
charter, we do not expect to be classified as a </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8220;pension-held
REIT,&#8221; and as a result, the tax treatment described above should be
inapplicable to our holders. However, because our stock is publicly traded, we
cannot guarantee that this will always be the case. </font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_15"></a><a name="_bclPageBorder15"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Taxation of Non-U.S. Holders
of Our Capital Stock </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The following
discussion addresses the rules governing U.S. federal income taxation of the
acquisition, ownership and disposition of our capital stock by non-U.S.
holders. These rules are complex, and no attempt is made herein to provide more
than a brief summary of such rules. Accordingly, the discussion does not
address all aspects of U.S. federal income taxation and does not address state,
local or non-U.S. tax consequences that may be relevant to a non-U.S. holder in
light of its particular circumstances. We urge non-U.S. holders to consult
their tax advisors to determine the impact of federal, state, local and
non-U.S. income tax laws and any applicable tax treaty on the acquisition,
ownership and disposition of shares of our capital stock, including any
reporting requirements. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Distributions
Generally</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Distributions (including any taxable stock dividends) that
are neither attributable to gains from sales or exchanges by us of United
States real property interests, or USRPIs, nor designated by us as capital gain
dividends (except as described below) will be treated as dividends of ordinary
income to the extent that they are made out of our current or accumulated
earnings and profits. Such distributions ordinarily will be subject to
withholding of U.S. federal income tax at a 30% rate or such lower rate as may
be specified by an applicable income tax treaty, unless the distributions are
treated as effectively connected with the conduct by the non-U.S. holder of a
trade or business within the United States (and, if required by an applicable
income tax treaty, the non-U.S. holder maintains a permanent establishment in
the United States to which such dividends are attributable). Under certain
treaties, however, lower withholding rates generally applicable to dividends do
not apply to dividends from a REIT. Certain certification and disclosure
requirements must be satisfied for a non-U.S. holder to be exempt from
withholding under the effectively connected income exemption. Dividends that
are treated as effectively connected with a U.S. trade or business generally
will not be subject to withholding but will be subject to U.S. federal income
tax on a net basis at the regular graduated rates, in the same manner as
dividends paid to U.S. holders are subject to federal income tax. Any such
dividends received by a non-U.S. holder that is a corporation may also be
subject to an additional branch profits tax at a 30% rate (applicable after
deducting U.S. federal income taxes paid on such effectively connected income)
or such lower rate as may be specified by an applicable income tax treaty.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Except as
otherwise provided below, we expect to withhold U.S. federal income tax at the
rate of 30% on any distributions made to a non-U.S. holder unless: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(1)&#160;&#160; a lower treaty rate applies and the
non-U.S. holder files with us an IRS Form W-8BEN or W-8BEN-E (or applicable
successor form) evidencing eligibility for that reduced treaty rate; or </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(2)&#160;&#160; the non-U.S. holder files an IRS
Form W-8ECI (or applicable successor form) with us claiming that the
distribution is income effectively connected with the non-U.S. holder&#8217;s trade
or business. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Distributions
in excess of our current and accumulated earnings and profits will not be
taxable to a non-U.S. holder to the extent that such distributions do not
exceed the adjusted tax basis of the holder&#8217;s capital stock, but rather will
reduce the adjusted tax basis of such stock. To the extent that such
distributions exceed the non-U.S. holder&#8217;s adjusted tax basis in such capital
stock, they will generally give rise to gain from the sale or exchange of such
stock, the tax treatment of which is described below. However, recent
legislation may cause such excess distributions to be treated as dividend
income for certain non-U.S. holders. For withholding purposes, we expect to
treat all distributions as made out of our current or accumulated earnings and
profits. However, amounts withheld may be refundable if it is subsequently
determined that the distribution was, in fact, in excess of our current and
accumulated earnings and profits, provided that certain conditions are met. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Capital
Gain Dividends and Distributions Attributable to a Sale or Exchange of United
States Real Property Interests</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Distributions to a non-U.S. holder that
we properly designate as capital gain dividends, other than those arising from
the disposition of a USRPI, generally should not be subject to U.S. federal
income taxation, unless: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(1)&#160;&#160; the investment in our capital stock
is treated as effectively connected with the conduct by the non-U.S. holder of
a trade or business within the United States (and, if required by an applicable
income tax treaty, the non-U.S. holder maintains a permanent establishment in
the United States to which such dividends are attributable), in which case the
non-U.S. holder will be subject to the same treatment as U.S. holders with
respect to such gain, except that a non-U.S. holder that is a non-U.S.
corporation may also be subject to a branch profits tax of up to 30%, as discussed
above; or </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_16"></a><a name="_bclPageBorder16"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(2)&#160;&#160; the
non-U.S. holder is a nonresident alien individual who is present in the United
States for 183 days or more during the taxable year and certain other
conditions are met, in which case the non-U.S. holder will be subject to U.S. federal
income tax at a rate of 30% on the non-U.S. holder&#8217;s capital gains (or such
lower rate specified by an applicable income tax treaty), which may be offset
by U.S. source capital losses of such non-U.S. holder (even though the
individual is not considered a resident of the United States), provided the
non-U.S. holder has timely filed U.S. federal income tax returns with respect
to such losses. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Pursuant to
the Foreign Investment in Real Property Tax Act, which is referred to as
&#8220;FIRPTA,&#8221; distributions to a non-U.S. holder that are attributable to gain from
sales or exchanges by us of USRPIs, whether or not designated as capital gain
dividends, will cause the non-U.S. holder to be treated as recognizing such
gain as income effectively connected with a U.S. trade or business. Non-U.S.
holders would generally be taxed at the regular graduated rates applicable to
U.S. holders, subject to any applicable alternative minimum tax. We also will
be required to withhold and to remit to the IRS 35% (or 20% to the extent
provided in applicable Treasury Regulations) of any distribution to non-U.S.
holders attributable to gain from sales or exchanges by us of USRPIs.
Distributions subject to FIRPTA may also be subject to a 30% branch profits tax
in the hands of a non-U.S. holder that is a corporation. The amount withheld is
creditable against the non-U.S. holder&#8217;s U.S. federal income tax liability.
However, any distribution with respect to any class of stock that is &#8220;regularly
traded,&#8221; as defined by applicable Treasury Regulations, on an established
securities market located in the United States is not subject to FIRPTA, and
therefore, not subject to the 35% U.S. withholding tax described above, if the
non-U.S. holder did not own more than 10% of such class of stock at any time
during the one-year period ending on the date of the distribution. Instead,
such distributions generally will be treated as ordinary dividend distributions
and subject to withholding in the manner described above with respect to
ordinary dividends. In addition, distributions to certain non-U.S. publicly
traded shareholders that meet certain record-keeping and other requirements
(&#8220;qualified shareholders&#8221;) are exempt from FIRPTA, except to the extent owners
of such qualified shareholders that are not also qualified shareholders own,
actually or constructively, more than 10% of our capital stock. Furthermore,
distributions to &#8220;qualified foreign pension funds&#8221; or entities all of the
interests of which are held by &#8220;qualified foreign pension funds&#8221; are exempt
from FIRPTA. Non-U.S. holders should consult their tax advisors regarding the
application of these rules. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Retention
of Net Capital Gains</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Although the law is not clear on the matter, it
appears that amounts we designate as retained net capital gains in respect of
the capital stock held by U.S. holders generally should be treated with respect
to non-U.S. holders in the same manner as actual distributions of capital gain
dividends. Under this approach, the non-U.S. holders may be able to offset as a
credit against their U.S. federal income tax liability their proportionate
share of the tax paid by us on such retained net capital gains and to receive
from the IRS a refund to the extent their proportionate share of such tax paid
by us exceeds their actual U.S. federal income tax liability. If we were to
designate any portion of our net capital gain as retained net capital gain,
non-U.S. holders should consult their tax advisors regarding the taxation of
such retained net capital gain.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale of
Our Capital Stock</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Except as described below under &#8220;&#8212;Redemption or
Repurchase by Us,&#8221; gain realized by a non-U.S. holder upon the sale, exchange
or other taxable disposition of our capital stock generally will not be subject
to U.S. federal income tax unless such stock constitutes a USRPI. In general,
stock of a domestic corporation that constitutes a &#8220;U.S. real property holding
corporation,&#8221; or USRPHC, will constitute a USRPI. We believe that we are a
USRPHC. Our capital stock will not, however, constitute a USRPI so long as we
are a &#8220;domestically controlled qualified investment entity.&#8221; A &#8220;domestically
controlled qualified investment entity&#8221; includes a REIT in which at all times
during a specified testing period less than 50% in value of its stock is held
directly or indirectly by non-U.S. persons, subject to certain rules. For
purposes of determining whether a REIT is a &#8220;domestically controlled qualified
investment entity,&#8221; a person who at all applicable times holds less than 5% of
a class of stock that is &#8220;regularly traded&#8221; is treated as a U.S. person unless
the REIT has actual knowledge that such person is not a U.S. person. We
believe, but cannot guarantee, that we are a &#8220;domestically controlled qualified
investment entity.&#8221; Because our stock is (and, we anticipate, will continue to
be) publicly traded, no assurance can be given that we will continue to be a
&#8220;domestically controlled qualified investment entity.&#8221; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Even if we do
not qualify as a &#8220;domestically controlled qualified investment entity&#8221; at the
time a non-U.S. holder sells our capital stock, gain realized from the sale or
other taxable disposition by a non-U.S. holder of such capital stock would not
be subject to U.S. federal income tax under FIRPTA as a sale of a USRPI if: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(1)&#160;&#160; such class of capital stock is &#8220;regularly
traded,&#8221; as defined by applicable Treasury Regulations, on an established
securities market such as the New York Stock Exchange; and </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">(2)&#160;&#160; such non-U.S. holder owned,
actually and constructively, 10% or less of such class of capital stock
throughout the shorter of the five-year period ending on the date of the sale
or other taxable disposition or the non-U.S. holder&#8217;s holding period. </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_17"></a><a name="_bclPageBorder17"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">In addition, dispositions of our capital stock by
qualified shareholders are exempt from FIRPTA, except to the extent owners of
such qualified shareholders that are not also qualified shareholders own,
actually or constructively, more than 10% of our capital stock. Furthermore,
dispositions of our capital stock by &#8220;qualified foreign pension funds&#8221; or
entities all of the interests of which are held by &#8220;qualified foreign pension
funds&#8221; are exempt from FIRPTA. Non-U.S. holders should consult their tax
advisors regarding the application of these rules.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Notwithstanding
the foregoing, gain from the sale, exchange or other taxable disposition of our
capital stock not otherwise subject to FIRPTA will be taxable to a non-U.S.
holder if either (a) the investment in our capital stock is treated as
effectively connected with the conduct by the non-U.S. holder of a trade or
business within the United States (and, if required by an applicable income tax
treaty, the non-U.S. holder maintains a permanent establishment in the United
States to which such gain is attributable), in which case the non-U.S. holder
will be subject to the same treatment as U.S. holders with respect to such
gain, except that a non-U.S. holder that is a foreign corporation may also be
subject to the 30% branch profits tax (or such lower rate as may be specified
by an applicable income tax treaty) on such gain, as adjusted for certain
items, or (b) the non-U.S. holder is a nonresident alien individual who is
present in the United States for 183 days or more during the taxable year and
certain other conditions are met, in which case the non-U.S. holder will be
subject to a 30% tax on the non-U.S. holder&#8217;s capital gains (or such lower rate
specified by an applicable income tax treaty), which may be offset by U.S.
source capital losses of the non-U.S. holder (even though the individual is not
considered a resident of the United States), provided the non-U.S. holder has
timely filed U.S. federal income tax returns with respect to such losses. In
addition, even if we are a domestically controlled qualified investment entity,
upon disposition of our capital stock, a non-U.S. holder may be treated as
having gain from the sale or other taxable disposition of a USRPI if the
non-U.S. holder (1) disposes of our capital stock within a 30-day period
preceding the ex-dividend date of a distribution, any portion of which, but for
the disposition, would have been treated as gain from the sale or exchange of a
USRPI and (2) acquires, or enters into a contract or option to acquire, or is
deemed to acquire, other shares of that stock during the 61-day period
beginning with the first day of the 30-day period described in clause (1),
unless such stock is &#8220;regularly traded&#8221; and the non-U.S. holder did not own
more than 5% of the stock at any time during the one-year period ending on the
date of the distribution described in clause (1).</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If gain on the
sale, exchange or other taxable disposition of our capital stock were subject
to taxation under FIRPTA, the non-U.S. holder would be required to file a U.S.
federal income tax return and would be subject to regular U.S. federal income
tax with respect to such gain in the same manner as a taxable U.S. holder
(subject to any applicable alternative minimum tax and a special alternative
minimum tax in the case of nonresident alien individuals). In addition, if the
sale, exchange or other taxable disposition of our capital stock were subject
to taxation under FIRPTA, and if shares of the applicable class of our capital
stock were not &#8220;regularly traded&#8221; on an established securities market, the
purchaser of such capital stock generally would be required to withhold and
remit to the IRS 15% of the purchase price. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Redemption
or Repurchase by Us</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A redemption or repurchase of shares of our
capital stock will be treated under Section 302 of the Code as a distribution
(and taxable as a dividend to the extent of our current and accumulated
earnings and profits) unless the redemption or repurchase satisfies one of the
tests set forth in Section 302(b) of the Code and is therefore treated as a
sale or exchange of the redeemed or repurchased shares. See &#8220;&#8212;Taxation of Taxable
U.S. Holders of Our Capital Stock&#8212;Redemption or Repurchase by Us.&#8221; Qualified
shareholders and their owners may be subject to different rules, and should
consult their tax advisors regarding the application of such rules. If the
redemption or repurchase of shares is treated as a distribution, the amount of
the distribution will be measured by the amount of cash and the fair market
value of any property received. See &#8220;&#8212;Taxation of Non-U.S. Holders of Our
Capital Stock&#8212;Distributions Generally.&#8221; If the redemption or repurchase of
shares is not treated as a distribution, it will be treated as a taxable sale
or exchange in the manner described under &#8220;&#8212;Taxation of Non-U.S. Holders of Our
Capital Stock&#8212;Sale of Our Capital Stock.&#8221;</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Taxation of Holders of Our Debt
Securities </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The following
summary describes the material U.S. federal income tax consequences of
acquiring, owning and disposing of our debt securities. This discussion assumes
the debt securities will be issued with less than a statutory de minimis amount
of original issue discount for U.S. federal income tax purposes. In addition,
this discussion is limited to persons purchasing the debt securities for cash
at original issue and at their original &#8220;issue price&#8221; within the meaning of
Section 1273 of the Code (i.e., the first price at which a substantial amount
of the debt securities is sold to the public for cash). </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">U.S.
Holders </font></i></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Payments of
Interest</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Interest on a debt security generally will be taxable to a U.S.
holder as ordinary income at the time such interest is received or accrued, in
accordance with such U.S. holder&#8217;s method of accounting for U.S. federal income
tax purposes.&#160; </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_18"></a><a name="_bclPageBorder18"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale or Other Taxable Disposition</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A U.S. holder
will recognize gain or loss on the sale, exchange, redemption, retirement or
other taxable disposition of a debt security. The amount of such gain or loss
generally will be equal to the difference between the amount received for the
debt security in cash or other property valued at fair market value (less
amounts attributable to any accrued but unpaid interest, which will be taxable
as interest to the extent not previously included in income) and the U.S.
holder&#8217;s adjusted tax basis in the debt security. A U.S. holder&#8217;s adjusted tax
basis in a debt security generally will be equal to the amount the U.S. holder
paid for the debt security. Any gain or loss generally will be capital gain or
loss, and will be long-term capital gain or loss if the U.S. holder has held
the debt security for more than one year at the time of such sale or other
taxable disposition. Otherwise, such gain or loss will be short-term capital
gain or loss. Long-term capital gains recognized by certain non-corporate U.S.
holders, including individuals, generally will be taxable at reduced rates. The
deductibility of capital losses is subject to limitations. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Non-U.S.
Holders </font></i></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Payments of
Interest</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Interest paid on a debt security to a non-U.S. holder that is not
effectively connected with the non-U.S. holder&#8217;s conduct of a trade or business
within the United States generally will not be subject to U.S. federal income
tax or withholding, provided that: </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the non-U.S. holder does not own,
actually or constructively, 10% or more of the total combined voting power of
all classes of our voting stock; </font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the non-U.S. holder is not a
controlled foreign corporation related to us through actual or constructive
stock ownership; and </font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; either (1) the non-U.S. holder
certifies in a statement provided to the applicable withholding agent under
penalties of perjury that it is not a United States person and provides its
name and address; (2) a securities clearing organization, bank or other
financial institution that holds customers&#8217; securities in the ordinary course
of its trade or business and holds the debt security on behalf of the non-U.S.
holder certifies to the applicable withholding agent under penalties of perjury
that it, or the financial institution between it and the non-U.S. holder, has
received from the non-U.S. holder a statement under penalties of perjury that
such holder is not a United States person and provides the applicable
withholding agent with a copy of such statement; or (3) the non-U.S. holder
holds its debt security directly through a &#8220;qualified intermediary&#8221; (within the
meaning of the applicable Treasury Regulations) and certain conditions are
satisfied. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If a non-U.S.
holder does not satisfy the requirements above, such non-U.S. holder will be
subject to withholding tax of 30%, subject to a reduction in or an exemption
from withholding on such interest as a result of an applicable tax treaty. To
claim such entitlement, the non-U.S. holder must provide the applicable
withholding agent with a properly executed IRS Form W-8BEN or W-8BEN-E (or
other applicable documentation) claiming a reduction in or exemption from
withholding tax under the benefit of an income tax treaty between the United
States and the country in which the non-U.S. holder resides or is established. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">If interest
paid to a non-U.S. holder is effectively connected with the non-U.S. holder&#8217;s conduct
of a trade or business within the United States (and, if required by an
applicable income tax treaty, the non-U.S. holder maintains a permanent
establishment in the United States to which such interest is attributable), the
non-U.S. holder will be exempt from the U.S. federal withholding tax described
above. To claim the exemption, the non-U.S. holder must furnish to the
applicable withholding agent a valid IRS Form W-8ECI, certifying that interest
paid on a debt security is not subject to withholding tax because it is
effectively connected with the conduct by the non-U.S. holder of a trade or
business within the United States. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Any such
effectively connected interest generally will be subject to U.S. federal income
tax at the regular graduated rates. A non-U.S. holder that is a corporation may
also be subject to a branch profits tax at a rate of 30% (or such lower rate
specified by an applicable income tax treaty) on such effectively connected
interest, as adjusted for certain items. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The
certifications described above must be provided to the applicable withholding
agent prior to the payment of interest and must be updated periodically.
Non-U.S. holders that do not timely provide the applicable withholding agent
with the required certification, but that qualify for a reduced rate under an
applicable income tax treaty, may obtain a refund of any excess amounts
withheld by timely filing an appropriate claim for refund with the IRS.
Non-U.S. holders should consult their tax advisors regarding their entitlement
to benefits under any applicable income tax treaty. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale or
Other Taxable Disposition</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A non-U.S. holder will not be subject to U.S.
federal income tax on any gain realized upon the sale, exchange, redemption,
retirement or other taxable disposition of a debt security (such amount
excludes </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">any amount allocable to accrued and unpaid
interest, which generally will be treated as interest and may be subject to the
rules discussed above in &#8220;&#8212;Taxation of Holders of Our Debt Securities&#8212;Non-U.S.
Holders&#8212;Payments of Interest&#8221;) unless:</font></p>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_19"></a><a name="_bclPageBorder19"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the gain is effectively connected
with the non-U.S. holder&#8217;s conduct of a trade or business within the United
States (and, if required by an applicable income tax treaty, the non-U.S.
holder maintains a permanent establishment in the United States to which such
gain is attributable); or</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; the non-U.S. holder is a
nonresident alien individual present in the United States for 183 days or more
during the taxable year of the disposition and certain other requirements are
met.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Gain described
in the first bullet point above generally will be subject to U.S. federal
income tax on a net income basis at the regular graduated rates. A non-U.S.
holder that is a foreign corporation also may be subject to a branch profits
tax at a rate of 30% (or such lower rate specified by an applicable income tax
treaty) on such effectively connected gain, as adjusted for certain items.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Gain described
in the second bullet point above will be subject to U.S. federal income tax at
a rate of 30% (or such lower rate specified by an applicable income tax
treaty), which may be offset by U.S. source capital losses of the non-U.S.
holder (even though the individual is not considered a resident of the United
States), provided the non-U.S. holder has timely filed U.S. federal income tax
returns with respect to such losses.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Non-U.S.
holders should consult their tax advisors regarding any applicable income tax
treaties that may provide for different rules.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Information Reporting and
Backup Withholding</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#160;</font><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">U.S.
Holders</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. A U.S. holder may be subject to information reporting and
backup withholding when such holder receives payments on our capital stock or
debt securities or proceeds from the sale or other taxable disposition of such
stock or debt securities (including a redemption or retirement of a debt
security). Certain U.S. holders are exempt from backup withholding, including
corporations and certain tax-exempt organizations. A U.S. holder will be
subject to backup withholding if such holder is not otherwise exempt and such holder:</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; fails to furnish the holder&#8217;s
taxpayer identification number, which for an individual is ordinarily his or
her social security number;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; furnishes an incorrect taxpayer
identification number;</font></p>

<p style="margin:0in;margin-bottom:8.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; is notified by the IRS that the
holder previously failed to properly report payments of interest or dividends;
or</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.75in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&#8226;&#160;&#160;&#160;&#160;&#160; fails to certify under penalties
of perjury that the holder has furnished a correct taxpayer identification
number and that the IRS has not notified the holder that the holder is subject
to backup withholding.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Backup
withholding is not an additional tax. Any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against a U.S.
holder&#8217;s U.S. federal income tax liability, provided the required information
is timely furnished to the IRS. U.S. holders should consult their tax advisors
regarding their qualification for an exemption from backup withholding and the
procedures for obtaining such an exemption.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Non-U.S.
Holders</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. Payments of dividends on our capital stock or interest on our
debt securities generally will not be subject to backup withholding, provided
the applicable withholding agent does not have actual knowledge or reason to
know the holder is a United States person and the holder either certifies its non-U.S.
status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or
otherwise establishes an exemption. However, information returns are required
to be filed with the IRS in connection with any dividends on our capital stock
or interest on our debt securities paid to the non-U.S. holder, regardless of
whether any tax was actually withheld. In addition, proceeds of the sale or
other taxable disposition of such stock or debt securities (including a
retirement or redemption of a debt security) within the United States or
conducted through certain U.S.-related brokers generally will not be subject to
backup withholding or information reporting, if the applicable withholding
agent receives the certification described above and does not have actual
knowledge or reason to know that such holder is a U.S. person, or the holder
otherwise establishes an exemption. Proceeds of a disposition of such stock or
debt securities conducted through a non-U.S. office of a non-U.S. broker
generally will not be subject to backup withholding or information reporting.</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_20"></a><a name="_bclPageBorder20"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Copies of information returns that are filed with the IRS
may also be made available under the provisions of an applicable treaty or
agreement to the tax authorities of the country in which the non-U.S. holder
resides or is established.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Backup
withholding is not an additional tax. Any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against a non-U.S.
holder&#8217;s U.S. federal income tax liability, provided the required information
is timely furnished to the IRS.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Medicare Contribution Tax on
Unearned Income</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Certain U.S.
holders that are individuals, estates or trusts are required to pay an
additional 3.8% tax on, among other things, dividends on stock, interest on
debt obligations, and capital gains from the sale or other disposition of stock
or debt obligations. U.S. holders should consult their tax advisors regarding
the effect, if any, of these rules on their ownership and disposition of our
capital stock or debt securities.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Additional Withholding Tax
on Payments Made to Foreign Accounts </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Withholding
taxes may be imposed under Sections 1471 to 1474 of the Code (such sections
commonly referred to as the Foreign Account Tax Compliance Act, or FATCA) on
certain types of payments made to non-U.S. financial institutions and certain
other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on
dividends on our capital stock, interest on our debt securities, or gross
proceeds from the sale or other disposition of our capital stock or debt
securities, in each case paid to a &#8220;foreign financial institution&#8221; or a
&#8220;non-financial foreign entity&#8221; (each as defined in the Code), unless (1) the
foreign financial institution undertakes certain diligence and reporting obligations,
(2) the non-financial foreign entity either certifies it does not have any
&#8220;substantial United States owners&#8221; (as defined in the Code) or furnishes
identifying information regarding each substantial United States owner, or (3)
the foreign financial institution or non-financial foreign entity otherwise
qualifies for an exemption from these rules. If the payee is a foreign
financial institution and is subject to the diligence and reporting
requirements in clause (1) above, it must enter into an agreement with the U.S.
Department of the Treasury under which it undertakes, among other things, to
identify accounts held by certain &#8220;specified United States persons&#8221; or &#8220;United
States-owned foreign entities&#8221; (each as defined in the Code), annually report certain
information about such accounts, and withhold 30% on certain payments to
non-compliant foreign financial institutions and certain other account holders.
Foreign financial institutions located in jurisdictions that have an
intergovernmental agreement with the United States governing FATCA may be
subject to different rules.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Under the
applicable Treasury Regulations and administrative guidance, withholding under
FATCA generally applies to payments of dividends on our capital stock or
interest on our debt securities, and will apply to payments of gross proceeds
from the sale or other disposition of such stock or debt securities on or after
January 1, 2019.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Prospective
investors should consult their tax advisors regarding the potential application
of withholding under FATCA to their investment in our capital stock or debt
securities.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Other Tax Consequences </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">State, local
and non-U.S. income tax laws may differ substantially from the corresponding
federal income tax laws, and this discussion does not purport to describe any
aspect of the tax laws of any state, local or non-U.S. jurisdiction, or any
federal tax other than the income tax. You should consult your tax advisor
regarding the effect of state, local and non-U.S. tax laws with respect to our
tax treatment as a REIT and on an investment in our capital stock or debt
securities.</font></p>

<p align=center style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>




</DIV>
</BODY>

</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
