Angel Oak Mortgage REIT, Inc. Announces Dividend Distribution Tax Information for 2023

Rhea-AI Summary

Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) announced tax information regarding its dividend distributions for 2023. During 2023, the Company distributed dividends totaling $1.28 per share of common stock. The table provides information on the expected federal income tax characterization for the Company’s common stock dividend distributions paid in 2023. Shareholders are encouraged to confirm that the tax statements they receive from their brokerage firms align with the information reported in this document and to consult with their tax advisors to determine individual tax implications.

Insights

Tax Expert

The announcement of Angel Oak Mortgage REIT's dividend distributions and their tax characterizations is a critical piece of information for shareholders from a tax planning and compliance perspective. The division of the dividend into ordinary income and return of capital has significant implications for individual tax liabilities.

Ordinary income is taxed at the shareholder's marginal tax rate, which can vary greatly depending on their overall income level. The reported ordinary income per share of $0.19058 is relatively small compared to the total distribution, indicating a tax-efficient strategy for the REIT. In contrast, the return of capital, which amounts to $1.08942 per share, reduces the cost basis of the investment and is not taxed until the stock is sold. This deferral of tax can be advantageous for investors seeking to minimize their current tax liability.

It is important to note that the lack of qualified dividends and long-term capital gains indicates that the REIT's distributions do not benefit from the lower tax rates typically associated with these types of income. This is consistent with the tax structure of REITs, which often distribute the majority of their taxable income to shareholders to comply with the IRS requirements for REITs and to avoid paying corporate income tax.

Financial Analyst

From a financial analysis standpoint, the announcement provides insight into the company's distribution policy and financial health. The consistent payment of dividends at $0.32000 per share each quarter reflects a stable income stream for investors, which can be an attractive feature for income-focused portfolios.

However, the high portion of the dividend classified as a return of capital may raise questions about the sustainability of the dividend payments. While it can be tax-advantaged, it could also imply that the company is returning capital because it might not have sufficient earnings to cover the dividend, which could be a red flag for long-term growth prospects.

Investors should consider the REIT's operational performance, payout ratios and earnings reports to assess whether the dividend payments are supported by the company's earnings or if they are primarily a return of capital. This distinction is crucial as it affects the investor's perception of the company's profitability and long-term value creation.

ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today announced tax information regarding its dividend distributions for 2023.

During 2023, the Company distributed dividends totaling $1.28 per share of common stock (CUSIP 03464Y108). The table below provides information on the expected federal income tax characterization for the Company’s common stock dividend distributions paid in 2023. Shareholders are encouraged to confirm that the tax statements they receive from their brokerage firms align with the information reported in this document and to consult with their tax advisors to determine individual tax implications.

Dividend Distribution Type	Record Dates	Payable Dates	Total Distribution Per Share		Ordinary Income Per Share		Qualified Dividend Per Share		Return of Capital Per Share		Long-Term Capital Gains Per Share
Regular	March 22, 2023	March 31, 2023	$	0.32000	$	0.04765	$	-	$	0.27235	$	-
Regular	May 22, 2023	May 31, 2023	$	0.32000	$	0.04765	$	-	$	0.27235	$	-
Regular	August 22, 2023	August 31, 2023	$	0.32000	$	0.04765	$	-	$	0.27235	$	-
Regular	November 22, 2023	November 30, 2023	$	0.32000	$	0.04765	$	-	$	0.27235	$	-
Total Allocated to 2023			$	1.28000	$	0.19058	$	-	$	1.08942	$	-

About Angel Oak Mortgage REIT, Inc.

Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with a vertically integrated mortgage origination platform. Additional information about the Company is available at www.angeloakreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201304927/en/

Investors:

investorrelations@angeloakreit.com

855-502-3920



IR Agency Contact:

Joseph Caminiti, Alpha IR Group

312-445-2870

AOMR@alpha-ir.com



Company Contact:

KC Kelleher, Head of Corporate Finance & Investor Relations

404-528-2684

kc.kelleher@angeloakcapital.com

Source: Angel Oak Mortgage REIT, Inc.

FAQ

What tax information did Angel Oak Mortgage REIT, Inc. (AOMR) announce?

Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) announced tax information regarding its dividend distributions for 2023.

How much were the dividends per share distributed in 2023?

During 2023, the Company distributed dividends totaling $1.28 per share of common stock.

What should shareholders do regarding the tax statements they receive from their brokerage firms?

Shareholders are encouraged to confirm that the tax statements they receive from their brokerage firms align with the information reported in this document and to consult with their tax advisors to determine individual tax implications.