<SEC-DOCUMENT>0000726728-18-000032.txt : 20180227
<SEC-HEADER>0000726728-18-000032.hdr.sgml : 20180227
<ACCEPTANCE-DATETIME>20180227164346
ACCESSION NUMBER:		0000726728-18-000032
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180227
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180227
DATE AS OF CHANGE:		20180227

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:		18645788

	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>realtyincometaxdisclosure8k.htm
<DESCRIPTION>8-K
<TEXT>

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<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;">February
27, 2018<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 color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">&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;">Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
&#167;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR
&#167;240.12b-2).</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">Emerging growth company &#61551;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="times new roman" lang=EN-US style="font-size:9.0pt;">&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;">If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act. &#61551;</font><font face="times new roman" lang=EN-US style="font-size:9.0pt;">&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 (i) the discussion
under the heading &#8220;United States Federal Income Tax Considerations&#8221; in Exhibit
99.1 to the Company&#8217;s Current Report on Form 8-K filed with the Securities and
Exchange Commission (the &#8220;SEC&#8221;) on February 27, 2017 (the &#8220;2017 Form 8-K
Exhibit 99.1&#8221;), (ii) the discussion under the heading &#8220;United States Federal
Income Tax Considerations&#8221; in Exhibit 99.1 to the Company&#8217;s Current Report on
Form 8-K filed with the SEC on August 4, 2016 (the &#8220;2016 Form 8-K Exhibit
99.1&#8221;) and (iii) the discussion under the heading &#8220;United States Federal Income
Tax Considerations&#8221; in the prospectus dated December 21, 2015 (the &#8220;Base
Prospectus&#8221;), which forms part of the Registration Statement on Form S-3 (File
No. 333-208652) of the Company filed by the Company with the SEC on December
21, 2015 and which is also attached to (a) 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 (&#8220;Rule 424(b)&#8221;), and (b) the prospectus supplement dated October 27,
2017 filed by the Company with the SEC on October 27, 2017 pursuant to Rule
424(b). The discussion under the heading &#8220;United States Federal Income Tax
Considerations&#8221; in Exhibit 99.1 hereto (incorporated herein by reference)
supersedes and replaces, in their entirety, (i) the discussion in the 2017 Form
8-K Exhibit 99.1, (ii) the discussion in the 2016 Form 8-K Exhibit 99.1 and
(iii) the discussion under the heading &#8220;United States Federal Income Tax
Considerations&#8221; in the Base Prospectus.</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: February 27, 2018 </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>





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<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>




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<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 February 27,
2018, which is filed pursuant to Item 8.01 of Form 8-K, supersedes and
replaces, in their entirety, (i) the discussion under the heading &#8220;United
States Federal Income Tax Considerations&#8221; in Exhibit 99.1 to the Company&#8217;s
Current Report on Form 8-K filed with the SEC on February 27, 2017,&#160; (ii) the
discussion under the heading &#8220;United States Federal Income Tax Considerations&#8221;
in Exhibit 99.1 to the Company&#8217;s Current Report on Form 8-K filed with the SEC
on August 4, 2016 and (iii) the discussion under the heading &#8220;United States
Federal Income Tax Considerations&#8221; in the prospectus dated December 21, 2015
(the &#8220;Base Prospectus&#8221;), 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 (a) 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 (&#8220;Rule 424(b)&#8221;), and (b) the prospectus supplement dated
October 27, 2017 filed by the Company with the SEC on October 27, 2017 pursuant
to Rule 424(b). </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 real estate investment trust (a &#8220;REIT&#8221;)
and the acquisition, ownership and disposition of our capital stock or debt
securities. Supplemental U.S. federal income tax considerations relevant to
holders of the securities offered by the Base Prospectus (including warrants, preferred
stock and depositary shares) may be provided in the prospectus supplement or a
free writing prospectus that relates to those securities or a document
incorporated by reference in the prospectus supplement. For purposes of this
discussion, references to &#8220;we,&#8221; &#8220;our&#8221; and &#8220;us&#8221; mean only Realty Income
Corporation and do not include any of its subsidiaries, except as otherwise
indicated. 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 Internal Revenue Code of 1986,
as amended (the &#8220;Code&#8221;);</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 Internal Revenue Service (the &#8220;IRS&#8221;); 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;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">in each case, as of February 27,
2018. 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. 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 U.S.
federal income tax treatment of a REIT, its stockholders and the holders of its
debt 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. Potential tax reforms may
result in significant changes to the rules governing U.S. federal income
taxation. New legislation, Treasury Regulations, administrative interpretations
and practices and/or court decisions may significantly and adversely affect our
ability to qualify as a REIT, the U.S. federal income tax consequences of such
qualification, or the U.S. federal income tax consequences of an investment in our
capital stock or debt securities, including those described in this discussion.
Moreover, the law relating to the tax treatment of other entities, or an investment
in other entities, could change, making an investment in such other entities
more attractive relative to an investment in a REIT. Any such changes 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 the Base Prospectus and this Exhibit
99.1 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 U.S. federal tax laws other than U.S.
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 and
disposition of our capital stock or debt securities, including the U.S. federal,
state, local, non-U.S. and other tax consequences; </font></b></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: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 U.S. 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;page-break-after:avoid;"><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 such taxable
year, 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 operating results, asset composition, distribution levels and diversity
of stock ownership. Accordingly, no assurance can be given that 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
potential tax consequences if we fail to qualify 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;">Latham &amp;
Watkins LLP has acted as our tax counsel in connection with the Base 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 the Base 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 the Base 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 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
U.S. 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 U.S.
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 U.S. 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
regular U.S. federal corporate income tax on any undistributed REIT taxable
income, including undistributed 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; Second, 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 regular U.S.
federal corporate income tax 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; Third, 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; Fourth, 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>


</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; Fifth, if
we fail to satisfy any of the asset tests (other than a de minimis failure of
the 5% or 10% asset tests), 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 U.S. federal corporate income tax rate multiplied
by the net income generated by the nonqualifying assets that caused us to fail
such test. </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
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; Seventh, 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; Eighth, 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 the
five-year period beginning on the date on which we acquired the asset, then we
generally will be required to pay regular U.S. federal corporate income tax 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 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 Section 1033 (an involuntary conversion) of the Code
generally is 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; Ninth, our subsidiaries that are C
corporations, including our &#8220;taxable REIT subsidiaries&#8221; described below,
generally will be required to pay regular U.S. 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; Tenth, we will be required to pay
a 100% tax on any &#8220;redetermined rents,&#8221; &#8220;redetermined deductions,&#8221; &#8220;excess
interest&#8221; or &#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; Eleventh, 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 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; Twelfth, if we fail to comply with
the requirement to send annual letters to our stockholders holding at least a
certain percentage of our stock, as determined by Treasury Regulations,
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;">We and our
subsidiaries may be subject to a variety of taxes other than U.S. federal
income tax, including payroll taxes and state and local income, property and
other taxes on our assets and operations.</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>


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<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>

<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 in the Base Prospectus 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 U.S.
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 U.S. 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 U.S. 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">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>
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<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 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
U.S. 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 U.S. 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>

<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 (or other entity treated as a corporation for U.S. federal
income tax purposes) 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 U.S. federal income
tax as a regular C corporation. 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; For taxable years beginning after December 31, 2017, taxpayers
are subject to a limitation on their ability to deduct net business interest
generally equal to 30% of adjusted taxable income, subject to certain
exceptions. See &#8220;&#8212;Annual Distribution Requirements.&#8221; While not certain, this
provision may limit the ability of our taxable REIT subsidiaries to deduct
interest, which could increase their taxable income.</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
whole or in part 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 total combined voting power of all classes of stock entitled to vote or 10%
or more of the total 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">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>
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<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; To the extent that rent attributable to
personal property, leased in connection with a lease of real property, exceeds
15% of the total rent received under the lease, we may transfer a portion of
such personal property to a taxable REIT subsidiary; 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; We generally may 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 to our
tenants, 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;</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 under, 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 or any property which generates
such income and (B) 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 or interest, our allocable share of
such dividend or interest income will qualify under the 95%, but not the 75%,
gross income test (except to the extent the interest is paid on a loan that is
adequately secured by real property). </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>


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<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 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. See &#8220;&#8212;Failure to Qualify&#8221; below. As discussed
above in&#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>

<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, including 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, will be treated as
income from a prohibited transaction that is subject to a 100% penalty tax,
unless certain safe harbor exceptions apply. 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, and do not intend to permit any of the partnerships or
limited liability companies in which we own an interest, 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. The 100% penalty tax will not apply to gains
from the sale of assets that are held through a taxable REIT subsidiary, but
such income will be subject to regular U.S. federal corporate income tax.</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 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 any rental or service arrangements we enter into from time to time 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 any overstated rents paid to us, or any
excess deductions or understated income of our taxable REIT subsidiaries. </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 or on both real property and, to a limited extent,
personal property), shares (or transferable certificates of beneficial
interest) in other REITs, 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), debt instruments of publicly
offered REITs, 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>


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<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 certain 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 (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>

<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 20% (25% for taxable years beginning after July 30, 2008 and before
January 1, 2018) &#160;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, and we may acquire securities in
additional taxable REIT subsidiaries in the future. So long as each of these
companies qualifies as a taxable REIT subsidiary of ours, 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 the securities of such
companies. We believe that the aggregate value of our taxable REIT subsidiaries
has not exceeded, and in the future will not exceed, 20% (25% for taxable years
beginning after July 30, 2008 and before January 1, 2018) 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, 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, as described above
(e.g., a debt instrument issued by a publicly offered REIT that is not secured
by a mortgage on real property).&#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
an increase in our interest in any partnership or limited liability company
that owns such securities). 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. Also, 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 interest in any
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 U.S. federal corporate income tax rate multiplied by the
net income generated by the nonqualifying assets, and (iii) disclosing certain
information to the IRS.</font></p>


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<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 REIT taxable income;
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>

<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 REIT taxable income. </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 REIT taxable income 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, 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 REIT taxable income 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 the
five-year 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;">For taxable
years beginning after December 31, 2017, our deduction for net business
interest expense may generally be limited to 30% of our taxable income, as
adjusted for certain items of income, gain, deduction or loss. Any business
interest deduction that is disallowed due to this limitation may be carried
forward to future taxable years. If we are subject to this interest expense
limitation, our REIT taxable income for a taxable year may be increased.
Taxpayers that conduct certain real estate businesses may elect not to have
this interest expense limitation apply to them, provided that they use an
alternative depreciation system to depreciate certain property. We believe that
we will be eligible to make this election. If we make this election, although
we would not be subject to the interest expense limitation described above, our
depreciation deductions may be reduced and, as a result, our REIT taxable
income for a taxable year may be increased.</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 by us, 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
REIT taxable income, as adjusted, we will be required to pay regular U.S.
federal corporate income tax on the undistributed amount. 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. In addition, we may decide to retain our cash, rather than
distribute it, in order to repay debt or for other reasons. If these timing
differences occur, we may borrow funds to pay dividends or pay dividends in the
form of taxable stock distributions in order to meet the distribution
requirements, while preserving our cash. </font></p>


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<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. In that
case, 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. While the payment of a deficiency dividend
will apply to a prior year for purposes of our REIT distribution requirements,
it will be treated as an additional distribution to our stockholders in the
year such dividend is paid.</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 corporate income tax is imposed for any year is treated
as an amount distributed during that year for purposes of calculating this
excise 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 real property that is not held primarily
for sale 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 U.S. federal income tax purposes. The failure of any such transaction to
qualify as a like-kind exchange could require us to pay U.S. federal income
tax, possibly including the 100% prohibited transaction tax, or deficiency
dividends, depending on the facts and circumstances surrounding the particular
transaction. </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 in Connection with Acquisitions</font></i></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">. From
time to time, we may acquire other corporations or entities and, in connection
with such acquisitions, we may succeed to the historical tax attributes and
liabilities of such entities. For example, if we acquire a C corporation and
subsequently dispose of its assets within five years of the acquisition, we
could be required to pay the built-in gain tax described above under &#8220;&#8212;General.&#8221;
In addition, in order to qualify as a REIT, at the end of any taxable year, we
must not have any earnings and profits accumulated in a non-REIT year. As a
result, if we acquire a C corporation, we must distribute the corporation&#8217;s
earnings and profits accumulated prior to the acquisition before the end of the
taxable year in which we acquire the corporation. We also could be required to
pay the acquired entity&#8217;s unpaid taxes even though such liabilities arose prior
to the time we acquired the entity.</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;">Moreover, we
may from time to time acquire other REITs through a 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) regular U.S. federal corporate income
tax on its taxable income, and if the merger or acquisition is a transaction in
which our tax basis in the assets of such REIT is less than the fair market
value of the assets, in each case, determined at the time of the merger or
acquisition, we would be subject to tax on the built-in gain on each asset of
such REIT as described above if we were to dispose of the asset in a taxable
transaction during the five-year period following the merger or acquisition.
Moreover, even if such REIT qualified as a REIT at all relevant times, we would
similarly be liable for other unpaid taxes (if any) of such REIT (such as the
100% tax on gains from any sales treated as &#8220;prohibited transactions&#8221; as
described above under &#8220;&#8212;Prohibited Transaction 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;">Furthermore,
after our acquisition of another corporation or entity, the asset and income
tests will apply to all of our assets, including the assets we acquire from
such corporation or entity, and to all of our income, including the income
derived from the assets we acquire from such corporation or entity. As a
result, the nature of the assets that we acquire from such corporation or
entity 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;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 regular U.S. federal
corporate income tax, including any applicable alternative minimum tax for
taxable years beginning before January 1, 2018, on our taxable income.
Distributions to stockholders in any year in which we fail to qualify as a REIT
will not be deductible by us. 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, we will not be
required to distribute any amounts to our stockholders and 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">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. Non-corporate stockholders, including individuals,
generally may deduct up to 20% of dividends from a REIT, other than capital
gain dividends and dividends treated as qualified dividend income, for taxable
years beginning after December 31, 2017 and before January 1, 2026. If we fail
to qualify as a REIT, such stockholders may not claim this deduction with
respect to dividends paid by us. 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>
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<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 U.S. federal income tax purposes.
In general, entities that are treated as partnerships or disregarded entities
for U.S. federal income tax purposes are &#8220;pass-through&#8221; entities which are not
required to pay U.S. 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 U.S. 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
are and will continue to be treated as partnerships or disregarded entities for
U.S. 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 agreement (or, in
the case of a limited liability company treated as a partnership for U.S. federal
income tax purposes, the limited liability company agreement) generally will
determine the allocation of income and loss among partners. These allocations,
however, will be disregarded for tax purposes if they do not comply with the
provisions of Section 704(b) of the Code and the Treasury Regulations
thereunder. Generally, Section 704(b) of the Code and the Treasury Regulations
thereunder require that partnership allocations respect the economic
arrangement of the partners. 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; interests in the partnership. This
reallocation will be determined by taking into account all of the facts and
circumstances relating to the economic arrangement of the partners 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 (including a limited
liability company treated as a partnership for U.S. federal income tax
purposes) in exchange for an interest in the partnership, must be allocated in
a manner so that the contributing partner 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">the time of contribution (this difference is referred to
as a book-tax difference), as adjusted from time to time. These allocations are
solely for U.S. federal income tax purposes and do not affect the book capital
accounts or other economic or legal arrangements among the partners. 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. Such allocations might
adversely affect our ability to comply with the REIT distribution requirements.
See &#8220;&#8212;Taxation of Our Company&#8212;Requirements for Qualification as a REIT&#8221; and
&#8220;&#8212;Annual Distribution Requirements.&#8221;</font></p>
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<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 Bipartisan Budget Act of 2015 changed 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 certain aspects of these new rules will be implemented, it is
possible that they could result in partnerships in which we directly or
indirectly 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. Department of the Treasury.&nbsp;Investors are urged to
consult their tax advisors with respect to these changes and their potential
impact on their investment in our capital stock.</font></p>

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

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">The
following discussion is a summary of the material U.S. federal income tax consequences
to you of acquiring, owning and disposing of our capital stock or debt
securities. This discussion is limited to holders who hold our capital stock or
debt securities as &#8220;capital assets&#8221; within the meaning of Section 1221 of the
Code (generally, property held for investment). This discussion does not
address all U.S. federal income tax consequences relevant to a holder&#8217;s particular
circumstances. In addition, except where specifically noted, it does not
address consequences relevant to holders 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; 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 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; U.S. holders (as defined below) whose functional
currency is not the U.S. dollar;</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; 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; REITs or regulated investment companies;</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; brokers, 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;  &#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>

<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; 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; persons subject to special tax accounting rules as a
result of any item of gross income with respect to our capital stock or debt
securities being taken into account in an applicable financial statement;</font></p>


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<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; 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; 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:12.0pt;text-indent:24.5pt;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">THIS
DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS TAX
ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE
APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS
AS WELL AS ANY TAX CONSEQUENCES OF THE ACQUISITION, OWNERSHIP AND DISPOSITION
OF OUR CAPITAL STOCK OR DEBT SECURITIES ARISING UNDER OTHER U.S. FEDERAL TAX
LAWS (INCLUDING ESTATE AND GIFT TAX LAWS), UNDER THE LAWS OF ANY STATE, LOCAL
OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">For purposes
of this discussion, a &#8220;U.S. holder&#8221; is a beneficial owner of our capital stock
or debt securities that, for U.S. federal income tax purposes, is or is treated
as: </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 created or organized
under the laws of the United States, any state thereof or 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 tax regardless of its source; or </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 trust that (1) is subject to the
primary supervision of a U.S. court and the control of one or more &#8220;United
States persons&#8221; (within the meaning of Section 7701(a)(30) of the Code) or (2)
has a valid election in effect to be treated as a United States person for U.S.
federal income tax purposes. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">For purposes
of this discussion, a &#8220;non-U.S. holder&#8221; is any beneficial owner of our capital stock
or debt securities that is neither a U.S. holder nor an entity treated as a
partnership for U.S. federal income tax purposes.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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 our capital
stock or debt securities, the tax treatment of a partner in the partnership
will depend on the status of the partner, the activities of the partnership and
certain determinations made at the partner level. Accordingly, partnerships
holding 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. &#160;</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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Distributions
Generally</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;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:24.5pt;"><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 to the extent of the U.S. holder&#8217;s adjusted tax basis in such shares of
stock. 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&nbsp;31 of that year, provided we
actually pay the dividend on or before January&nbsp;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>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Capital
Gain Dividends</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;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 may not exceed our dividends paid for the taxable year, </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">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.&#160;&#160; 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>
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<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Retention
of Net Capital Gains</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;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 U.S. 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 capital gain 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: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; 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:24.5pt;"><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><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;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 generally 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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Dispositions
of Our Capital Stock</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></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; if a U.S. holder sells or disposes of shares of our capital
stock, it will recognize gain or loss for U.S. 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. 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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Redemption
or Repurchase by Us</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;A redemption or repurchase of shares
of our capital stock will be treated under Section&nbsp;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&nbsp;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>

<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 redemption&#8221;
of the U.S. holder&#8217;s stock interest in us, or </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 &#8220;not essentially equivalent to
a dividend&#8221; with respect to the U.S. holder, </font></p>


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

<p style="margin:0in;margin-bottom:12.0pt;"><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,
generally must be taken into account. Because the determination as to whether
any of the alternative tests of Section&nbsp;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:24.5pt;"><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 generally will be transferred to the holder&#8217;s 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 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 basis recovery rules
described above.&#160; It is not clear whether these proposed regulations will be
enacted in their current form or at all.&#160; Prospective investors should consult their
tax advisors regarding the U.S. 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:24.5pt;"><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:24.5pt;"><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; generally is 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; generally is 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). Capital gain dividends will only be eligible
for the rates described above to the extent that they are properly designated
by the REIT as &#8220;capital gain dividends.&#8221; U.S. holders that are corporations may
be required to treat up to 20% of some capital gain dividends as ordinary
income. In addition, non-corporate U.S. holders, including individuals,
generally may deduct up to 20% of dividends from a REIT, other than capital
gain dividends and dividends treated as qualified dividend income, for taxable
years beginning after December 31, 2017 and before January 1, 2026.</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:24.5pt;"><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 (&#8220;UBTI&#8221;), to a
tax-exempt holder, except as described below. This income or gain will be UBTI,
however, to the extent 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:24.5pt;"><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 U.S. 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:24.5pt;"><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 UBTI 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 &#8220;pension-held REIT,&#8221; and as a result, the tax treatment
described above should be inapplicable to our holders. However, because our common
stock is (and, we anticipate, will continue to be) publicly traded, we cannot
guarantee that this will always be the case. </font></p>


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<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;">Taxation of Non-U.S. Holders of Our Capital Stock </font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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 other
federal, 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 U.S. federal,
state, local and non-U.S. income and other 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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Distributions
Generally</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;Distributions (including any taxable stock
distributions) 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 U.S.
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:24.5pt;"><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; a lower treaty rate applies and the
non-U.S. holder furnishes an IRS Form W-8BEN or W-8BEN-E (or other applicable
documentation) evidencing eligibility for that reduced treaty rate; or </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; the non-U.S. holder furnishes an
IRS Form W-8ECI (or other applicable documentation) 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:24.5pt;"><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 generally will give rise to gain from the sale or exchange of such
stock, the tax treatment of which is described below. However, such excess
distributions may 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:24.5pt;"><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; 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 corporation may
also be subject to a branch profits tax of up to 30%, as discussed above; or </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; 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">timely filed U.S. federal income tax returns with respect
to such losses. </font></p>
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<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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 generally would be taxed at the regular graduated rates applicable to
U.S. holders, subject to any applicable alternative minimum tax and a special
alternative minimum tax in the case of nonresident alien individuals. We also
will be required to withhold and to remit to the IRS 21% 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.&#160; 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 21% 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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Retention
of Net Capital Gains</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.</font></b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">&nbsp;Although the law is not clear on the
matter, it appears that amounts we designate as retained net capital gains in
respect of our capital stock should be treated with respect to non-U.S. holders
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.&#160; 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:24.5pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale
of Our Capital Stock</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">.&nbsp;</font></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;United States
real property holding corporation,&#8221; or USRPHC, will constitute a USRPI.&#160; We
believe that we are a USRPHC.&#160; 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 five-year testing period less than 50% in
value of its stock is held directly or indirectly by non-United States 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 United States person unless the REIT has actual
knowledge that such person is not a United States person. We believe, but
cannot guarantee, that we are a &#8220;domestically controlled qualified investment
entity.&#8221; Because our common 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:24.5pt;"><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; such class of 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: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; such non-U.S. holder owned,
actually and constructively, 10% or less of such class of 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>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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>


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<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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)&nbsp;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 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)&nbsp;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)&nbsp;disposes of such 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)&nbsp;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 10% 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:24.5pt;"><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:24.5pt;"><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:24.5pt;"><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 </font><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">de
minimis</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> 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&nbsp;1273 of the Code (</font><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">i.e.</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">, 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;margin-left:12.25pt;margin-right:0in;margin-top:0in;page-break-after:avoid;"><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:24.5pt;"><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 tax accounting for
U.S. federal income tax purposes.&#160; </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale or
Other Taxable Disposition.</font></i><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> </font></i></b><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 equal 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 </font><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">generally will be equal to the amount the U.S. holder
paid for the debt security. Any gain or loss 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.&#160; Long-term capital
gains recognized by certain non-corporate U.S. holders, including individuals,
generally will be taxable at a reduced rate. The deductibility of capital
losses is subject to limitations. </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:12.0pt;margin-left:12.2pt;margin-right:0in;margin-top:0in;"><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:24.5pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Payments
of Interest.</font></i><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> </font></i></b><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,
actually or constructively, own 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: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; 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)&nbsp;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 a copy of such statement
to the applicable withholding agent; or (3)&nbsp;the non-U.S. holder holds its
debt security directly through a &#8220;qualified intermediary&#8221; (within the meaning
of applicable Treasury Regulations) and certain conditions are satisfied. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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.&#160; 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:24.5pt;"><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:24.5pt;"><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 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 interest, as
adjusted for certain items. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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:24.5pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Sale or
Other Taxable Disposition.</font></i><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> </font></i></b><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 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>

<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>


</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: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 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:24.5pt;"><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 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:24.5pt;"><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:24.5pt;"><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:24.5pt;"><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:</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 holder 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; the holder 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; the applicable withholding agent 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: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 holder 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:27.0pt;"><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:27.0pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;">Non-U.S. Holders.</font></i></b><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;"> </font></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 United States 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>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:27.0pt;"><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:27.0pt;"><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>


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<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;">Medicare Contribution Tax on Unearned Income</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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;page-break-after:avoid;"><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:24.5pt;"><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 requiring, among other
things, that it undertake 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:24.5pt;"><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. Because we may not know the extent to which a distribution is
a dividend for U.S. federal income tax purposes at the time it is made, for
purposes of these withholding rules we may treat the entire distribution as a
dividend.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-indent:24.5pt;"><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;page-break-after:avoid;"><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 U.S. 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 U.S. 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>




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