Armada Hoffler Properties Announces Income Tax Treatment of Its 2021 Dividend Distributions

Rhea-AI Summary

Armada Hoffler Properties, Inc. (NYSE: AHH) announced the income tax treatment of its 2021 dividend distributions for common and preferred stockholders. The final income allocations will be reported on Form 1099-DIV. Notably, 66.71% of common stock dividends are classified as ordinary income, while 8.98% are capital gains. Preferred stockholders will experience 88.04% ordinary income and 11.96% capital gains. Shareholders are advised to consult their tax advisors for specific tax treatment. This information follows provisions from the 2017 Tax Cuts and Jobs Act.

Positive

• 66.71% of common stock dividends classified as ordinary income benefits shareholders.
• Preferred stock dividends report 88.04% as ordinary income, enhancing yield for investors.

Negative

• None.

VIRGINIA BEACH, Va., Feb. 11, 2022 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) announced the income tax treatment of its 2021 dividend distributions to holders of shares of the Company’s common stock and preferred stock.

This information represents final income allocations as they will be reported on Form 1099-DIV. The tax information provided should not be construed as tax advice. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of the Company’s distributions. Beginning in 2018, ordinary taxable income per share of common stock and preferred stock is equal to the 199A dividend that was created by the 2017 Tax Cuts and Jobs Act.

Common Stock Dividends
NYSE Ticker Symbol: AHH
CUSIP #04208T 10 8
EIN: #46-1214914
Line 1a Total Ordinary Dividends	66.71	%
Line 2a Total Capital Gain Distribution	8.98	%
Line 2b Unrecaptured Section 1250 Gain	8.98	%
Line 2f Section 897 Capital Gain	8.98	%
Line 3 Non-Dividend Distributions	24.31	%
Line 5 Section 199A Dividends	66.71	%
Total Ordinary			66.71	%
Total Capital Gain			8.98	%
Total Return of Capital			24.31	%
Total			100.00	%
Preferred Series A Dividends
NYSE Ticker Symbol: AHHPrA
CUSIP #04208T 20 7
EIN: #46-1214914
Line 1a Total Ordinary Dividends	88.04	%
Line 2a Total Capital Gain Distribution	11.96	%
Line 2b Unrecaptured Section 1250 Gain	11.96	%
Line 2f Section 897 Capital Gain	11.96	%
Line 5 Section 199A Dividends	88.04	%
Total Ordinary			88.04	%
Total Capital Gain			11.96	%
Total			100.00	%

 

^{Line 2a - The total dividend classified as Capital Gain is Section 1231 gain for purposes of Internal Revenue Code (IRC) Section 1061.  Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests."}

^{Line 2b - These amounts are a subset of, and included in, the 2021 Capital Gain amounts (Line 2a).}

^{Line 2f - The amount of the dividends treated as a Disposition of Investment in United States Real Property, for purposes of Internal Revenue Code (IRC) Section 897, are reflected in Box 2f.  Box 2f is a subset of, and included in, the 2021 Capital Gain amounts (Line 2a).}

^{Line 5 - These amounts are a subset of, and included in, the 2021 Taxable Ordinary Dividend amounts (Line 1a).}

About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.

Contact:
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Email: MOHara@ArmadaHoffler.com
Phone: (757) 366-6684

FAQ

What is the dividend distribution percentage for AHH in 2021?

Armada Hoffler reported 66.71% of common stock dividends as ordinary income and 8.98% as capital gains.

What should AHH shareholders know about their 2021 tax treatment?

Shareholders should consult their tax advisors for specific treatment as the allocations will be reported on Form 1099-DIV.

How much of the preferred stock dividends for AHH are classified as ordinary income?

88.04% of the preferred stock dividends are classified as ordinary income.

What impact did the 2017 Tax Cuts and Jobs Act have on AHH dividends?

The ordinary taxable income per share aligns with the 199A dividend established by the 2017 Tax Cuts and Jobs Act.