AvalonBay Communities Announces 2020 Dividend Income Tax Treatment

Rhea-AI Summary

AvalonBay Communities (NYSE: AVB) announced the final income allocations for its 2020 dividend distributions. The total annual dividend per share is $6.36, which includes ordinary taxable dividends amounting to $4.20, alongside return of capital and long-term capital gains. Key dates include the declaration date on February 5, 2020, record date on March 31, 2020, and payment date on April 15, 2020. The allocation classification also indicates that a portion is treated as qualified REIT dividends as per IRC Section 199A.

Positive

• Total dividend distribution of $6.36 per share favorable for investors.
• Ordinary taxable dividends classified as qualified REIT dividends support tax efficiency.

Negative

• None.

AvalonBay Communities, Inc. (the “Company”) (NYSE: AVB) announced today the final income allocations of the Company’s 2020 dividend distributions on its Common Stock. The final dividend allocations as they will be reported on Form 1099-DIV are set forth in the following table:

Common Shares (CUSIP #053484101)

Declaration Date	Record Date	Payment Date	Distribution Per Share			Ordinary Taxable Dividend (1)(2)			Return of Capital			Long Term Capital Gain			Unrecap. Section 1250 Gain
02/05/20	03/31/20	04/15/20	$	1.59000		$	1.04940		$	0.00000		$	0.38160		$	0.15900
05/12/20	06/30/20	07/15/20		1.59000			1.04940			0.00000			0.38160			0.15900
09/16/20	09/30/20	10/15/20		1.59000			1.04940			0.00000			0.38160			0.15900
11/12/20	12/31/20	01/15/21		1.59000			1.04940			0.00000			0.38160			0.15900
	Totals		$	6.36000		$	4.19760		$	0.00000		$	1.52640		$	0.63600
				100	%		66	%		0	%		24	%		10	%

Components may not sum to the totals due to rounding differences. The information above presents final dividend allocations.

(1) $0.06360 of each quarterly dividend classified as taxable ordinary dividend represents “qualified dividend income”.

(2) $0.98580 of each quarterly dividend classified as taxable ordinary dividend is treated as qualified REIT dividends for purposes of Internal Revenue Code (IRC) Section 199A.

Please consult your tax advisor.

About AvalonBay Communities, Inc.

As of September 30, 2020, the Company owned or held a direct or indirect ownership interest in 294 apartment communities containing 86,676 apartment homes in 11 states and the District of Columbia, of which 19 communities were under development. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California, as well as in the Company’s expansion markets consisting of Southeast Florida and Denver, Colorado. More information may be found on the Company’s website at http://www.avalonbay.com.

Copyright © 2021 AvalonBay Communities, Inc. All Rights Reserved

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FAQ

What is the total dividend per share for AvalonBay Communities in 2020?

The total dividend per share for AvalonBay Communities in 2020 is $6.36.

When was the payment date for AvalonBay Communities' 2020 dividends?

The payment date for AvalonBay Communities' 2020 dividends was April 15, 2020.

How much of the 2020 dividend distribution was classified as ordinary taxable dividends?

The ordinary taxable dividends for the 2020 distribution amounted to $4.20 per share.

What is the significance of qualified REIT dividends in AvalonBay Communities' distribution?

Qualified REIT dividends are treated favorably under tax laws, providing potential tax benefits to investors.