Saul Centers, Inc. Announces Tax Treatment of 2020 Dividends

Rhea-AI Summary

Saul Centers (NYSE: BFS) announced the tax treatment of its 2020 dividends. The company declared and paid a total of $2.12 per share in common stock dividends, with 67.3% classified as ordinary income and 32.7% as a return of capital. The preferred stock dividends totaled $1.53125 for Series D and $1.50000 for Series E per depositary share, characterized entirely as ordinary income. This information will be reported on Form 1099-DIV for shareholders.

Positive

• Common stock dividends total $2.12 per share for 2020, providing income for shareholders.
• Preferred stock dividends are characterized entirely as ordinary income, favorable for tax purposes.

Negative

• None.

BETHESDA, Md., Jan. 19, 2021 /PRNewswire/ -- Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust (REIT), announced today the income tax treatment of its 2020 dividends.  During 2020, the Company declared and paid four quarterly dividends on its Common Stock totaling $2.12 per share.  For tax purposes, 67.3% of the dividends ($1.43 per common share) are characterized as ordinary income, while 32.7% of the dividends ($0.69 per common share) are characterized as return of capital.  The information will be reported to shareholders on Form 1099-DIV and the ordinary income portion will be reported as section 199A dividends.

During 2020, the Company declared and paid the following dividends on its preferred stock:

• four dividends totaling $1.53125 per depositary share on its 6.125% Series D Preferred Stock; and
• four dividends totaling $1.50000 per depositary share on its 6.000% Series E Preferred Stock

For tax purposes, 100.0% of the Preferred Stock dividends are characterized as ordinary income.  The information will be reported to shareholders on Form 1099-DIV and will be reported as section 199A dividends.

Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties that includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

More information about Saul Centers, Inc. is available on the Company's website at www.SaulCenters.com.                     

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SOURCE Saul Centers, Inc.

FAQ

What was the total amount of dividends paid by Saul Centers in 2020?

Saul Centers paid a total of $2.12 per share in common stock dividends in 2020.

How much of the common stock dividends are classified as ordinary income?

67.3% of the common stock dividends, which amounts to $1.43 per share, are classified as ordinary income.

What is the tax treatment for preferred stock dividends from Saul Centers?

All preferred stock dividends are characterized as ordinary income for tax purposes.

When will the dividend tax information be reported to shareholders?

The dividend tax information will be reported to shareholders on Form 1099-DIV.