Common use of Tax Treatment of Certain Entities Clause in Contracts

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trusts, partnerships or limited liability companies have been and will continue to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries Each of the LLC Subsidiaries and Realty Income Pennsylvania Properties Trust, a Maryland business trust, has been 100% owned by the Company that are trusts, partnerships or limited liability companies have been at all times since their respective formation dates and will continue has not elected to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated taxed as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation Consoli­dation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania Properties Trust, a Maryland business trust, has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, and from the time of the Consolidation through and including the time of its merger into the Company, Company no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries Each of the LLC Subsidiaries, Realty Income Pennsylvania Properties Trust, a Maryland statutory trust, Realty Income Pennsylvania Properties Trust 2, a Maryland statutory trust, and Natick Beacon Fifth Realty, a Maryland statutory trust, has been 100% owned by the Company that are trusts, partnerships or limited liability companies have been at all times since its respective formation dates and will continue has not elected to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated taxed as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trusts, partnerships or limited liability companies have been and will continue to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.a

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, and from the time of the Consolidation through and including the time of its merger into the Company, Company no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries Each of the LLC Subsidiaries, Realty Income Pennsylvania Properties Trust, a Maryland statutory trust and Realty Income Pennsylvania Properties Trust 2, a Maryland statutory trust, has been 100% owned by the Company that are trusts, partnerships or limited liability companies have been at all times since its respective formation dates and will continue has not elected to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated taxed as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation Consoli­dation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, and from the time of the Consolidation through and including the time of its merger into the Company, Company no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used hereinRealty Income Texas Properties, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd.Inc., a California limited partnershipDelaware corporation, into is and has been at all times treated as a “qualified REIT subsidiary” within the Company on August 15, 1994.meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation Consoli­dation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trustsRealty Income Texas Properties, partnerships or L.P., a Delaware limited liability companies have partnership, is not and has never been and will continue to be treated as grantor trusts, partnerships or disregarded entities an association taxable as a corporation for federal income tax purposes and is not and has never been treated as associations taxable as corporations for federal income tax purposes or a publicly traded partnerships partnership taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Realty Income Texas Properties, Inc., a Delaware corporation, is and has been at all times treated as a “qualified REIT subsidiary” within the meaning of Section 856(i) of the Code and is not required to be qualified as a foreign corporation in the State of Texas. Each of the LLC Subsidiaries and Realty Income Pennsylvania Properties Trust, a Maryland business trust, has been 100% owned by the Company at all times since their respective formation dates and has made not elected to be taxed as a taxable REIT subsidiary election corporation for ARCT TRS Corp. tax purposes. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.the

Tax Treatment of Certain Entities. Each of R.I.C. Trade Center, Ltd., Empire Business Center, Ltd., and Silverton Business Center, Ltd., each a California limited partnership (the “Sub-Limited Partnerships”), was, from the time of the Consolidation (as defined herein) through and including the time of its merger into the Company, treated as a partnership (rather than as an association taxable as a corporation) for federal income tax purposes and, from the time of the Consolidation through and including the time of its merger into the Company, no Sub-Limited Partnership was ever treated as a publicly traded partnership taxable as a corporation for federal income tax purposes. The Company’s ownership interests in two properties held through tenancies in common with unrelated third parties (which are the only properties which, since the Consolidation, have been held in tenancies in common with unrelated third parties) have not been, since the Consolidation, and will not be (or, in the case of properties which have been sold, were not until the time of the sale of such properties), treated as ownership interests in associations taxable as corporations for federal income tax purposes or treated as ownership interests in publicly traded partnerships taxable as corporations for federal income tax purposes. The subsidiaries of the Company that are trusts, partnerships or limited liability companies have been and will continue to be treated as grantor trusts, partnerships or disregarded entities for federal income tax purposes and not as associations taxable as corporations for federal income tax purposes or publicly traded partnerships taxable as corporations for federal income tax purposes. ARCT TRS Corp. is treated as a corporation for federal income tax purposes. The Company has made a taxable REIT subsidiary election for ARCT TRS Corp. As used herein, the term “Consolidation” means the merger of 25 limited partnerships and RIC Properties Ltd., a California limited partnership, into the Company on August 15, 1994.as