Bluerock Residential Growth REIT (BRG) Announces 2020 Year End Tax Reporting Information

Rhea-AI Summary

Bluerock Residential Growth REIT announced the income tax treatment for its 2020 dividends, clarifying that dividends for both common and preferred stocks primarily consist of return of capital. The total ordinary dividend returned for Class A common stock reached $0.6500, entirely as return of capital. The preferred stocks showed varied distributions, with Series A, B, C, and D totaling $2.0625, $60.00, $1.90625, and $1.78125 respectively, also classified as return of capital. This information assists investors in tax planning for their dividend earnings.

Positive

• Dividends for common stock totaled $0.6500, providing a steady cash flow for investors.
• Preferred stock dividends indicate consistent payments across multiple series, with Series B preferred stock yielding $60.00.

Negative

• All dividends were classified as return of capital, which may impact investors' tax implications.

NEW YORK, Feb. 1, 2021 /PRNewswire/ -- Bluerock Residential Growth REIT, Inc. announced today that the income tax treatment for the 2020 dividends on the Company's common stock and preferred stock is as follows:

REPORTING INFORMATION (FORM 1099) – DIVIDENDS

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Class A common stock, CUSIP No. 09627J102, traded on the NYSE American Exchange under ticker symbol BRG, is as follows (as reported on Form 1099-DIV):

Class A Common Stock				CUSIP # 09627J102
Record Date	Payable Date	Distribution Rate Per Share		Ordinary Dividend	Return of Capital
12/24/2019	1/3/2020	$    0.1625		0.0000%	100.0000%
3/25/2020	4/3/2020	$    0.1625		0.0000%	100.0000%
6/25/2020	7/2/2020	$    0.1625		0.0000%	100.0000%
9/25/2020	10/5/2020	$    0.1625		0.0000%	100.0000%
		$    0.6500

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Series A Preferred Stock, CUSIP No. 09627J508, traded on the NYSE American Exchange under ticker symbol BRG-pA, is as follows (as reported on Form 1099-DIV):

Series A Preferred Stock								CUSIP # 09627J508
Record Date	Payable Date			Distribution Rate Per Share				Ordinary Dividend		Return of Capital		Total Capital Gains				Unrecaptured Section 1250 Gain (Included in Total Capital Gains)		Section 199A Dividends
12/24/2019	1/3/2020			$ 0.515625				0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
3/25/2020	4/3/2020			$ 0.515625				0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
6/25/2020	7/2/2020			$ 0.515625				0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
9/25/2020	10/5/2020			$ 0.515625				0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
Total				$ 2.062500
Dividends Upon Partial Redemptions
10/21/2020	10/21/2020			$ 0.120313		(1)		0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
12/21/2020	12/21/2020			$ 0.464063		(1)		0.0000%		51.5337%		48.4663%				18.4487%		0.0000%
(1) This dividend was paid on the date indicated to shareholders in conjunction with the redemption of Series A preferred shares.

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Series B Preferred Stock, CUSIP #s below, is as follows (as reported on Form 1099-DIV): 

Series B Preferred Stock
(CUSIP #'s 09627J805, 09627J870, 09627J862, 09627J854, 09627J847, 09627J839, 09627J821, 09627J813, 09627J797, 09627J789, 09627J771, 09627J763, 09627J755, 09627J730, 09627J722, 09627J714, 09627J698, 09627J680, 09627J672, 09627J664, 09627J649, 09627J631, 09627J623, 09627J615, 09627J599, 09627J581, 09627J573, 09627J565, 09627J557, 09627J540, 09627J532, 09627J524, 09627P207, 09627P306, 09627P405, 09627P504, 09627P603, 09627P702, 09627P801, 09627P884, 09627P876, 09627P868, 09627P850, 09627P843, 09627P835, 09627P827, 09627P819, 09627P793, 09627P785, 09627P777, 09627P769, 09627P751, 09627P744, 09627P736, 09627P728, 09627P710, 09627P694, 09627P686, 09627P678, 09627P660, 09627P652, 09627P645, 09627P637, 09627P629, 09627P611, 09627P595, 09627P587, 09627P579, 09627U206, 09627U305, 09627U404, 09627U503, 09627U602, 09627U701, 09627U800, 09627U883, 09627U875, 09627U867, 09627U859, 09627U842, 09627U834, 09627U826, 09627U818, 09627U792, 09627U784, 09627U776, 09627U768, 09627U750, 09627U743, 09627U735, 09627U727, 09627U719)
Record Date	Payable Date	Distribution Rate Per Share		Ordinary Dividend	Return of Capital	Total Capital Gains		Unrecaptured Section 1250 Gain (Included in Total Capital Gains)	Section 199A Dividends
12/24/2019	1/3/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
1/24/2020	2/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
2/25/2020	3/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
3/25/2020	4/3/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
4/24/2020	5/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
5/22/2020	6/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
6/25/2020	7/2/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
7/24/2020	8/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
8/25/2020	9/4/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
9/25/2020	10/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
10/23/2020	11/5/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
11/25/2020	12/4/2020	$    5.00		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
		$  60.00

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Series C Preferred Stock, CUSIP No. 09627J748, traded on the NYSE American Exchange under ticker symbol BRG-pC, is as follows (as reported on Form 1099-DIV):

Series C Preferred Stock				CUSIP # 09627J748
Record Date	Payable Date	Distribution Rate Per Share		Ordinary Dividend	Return of Capital	Total Capital Gains		Unrecaptured Section 1250 Gain (Included in Total Capital Gains)	Section 199A Dividends
12/24/2019	1/3/2020	$  0.4765625		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
3/25/2020	4/3/2020	$  0.4765625		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
6/25/2020	7/2/2020	$  0.4765625		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
9/25/2020	10/5/2020	$  0.4765625		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
		$  1.9062500

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Series D Preferred Stock, CUSIP No. 09627J656, traded on the NYSE American Exchange under ticker symbol BRG-pD, is as follows (as reported on Form 1099-DIV):

Series D Preferred Stock				CUSIP # 09627J656
Record Date	Payable Date	Distribution Rate Per Share		Ordinary Dividend	Return of Capital	Total Capital Gains		Unrecaptured Section 1250 Gain (Included in Total Capital Gains)	Section 199A Dividends
12/24/2019	1/3/2020	$  0.4453125		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
3/25/2020	4/3/2020	$  0.4453125		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
6/25/2020	7/2/2020	$  0.4453125		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
9/25/2020	10/5/2020	$  0.4453125		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
		$  1.7812500

The income tax treatment for 2020 dividends for Bluerock Residential Growth REIT, Inc. Series T Preferred Stock, CUSIP #s below, is as follows (as reported on Form 1099-DIV): 

Series T Preferred Stock
(CUSIP #'s 09627U685, 09627U677, 09627U669, 09627U651, 09627U644, 09627U636, 09627U628, 09627U610, 09627U594, 09627U586, 09627U578, 09627U560, 09627U552, 09627U545, 09627U537, 09627U529, 09627U511, 09627U495, 09627U487, 09627U479, 09627U461, 09627U453, 09627U446, 09627U438, 09627U420) (1)
Record Date	Payable Date	Distribution Rate Per Share		Ordinary Dividend	Return of Capital	Total Capital Gains		Unrecaptured Section 1250 Gain (Included in Total Capital Gains)	Section 199A Dividends
12/24/2019	1/3/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
1/24/2020	2/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
2/25/2020	3/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
3/25/2020	4/3/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
4/24/2020	5/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
5/22/2020	6/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
6/25/2020	7/2/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
7/24/2020	8/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
8/25/2020	9/4/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
9/25/2020	10/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
10/23/2020	11/5/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
11/25/2020	12/4/2020	$  0.1281250		0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
12/24/2020	12/29/2020	$  0.0500000	(2)	0.0000%	51.5337%	48.4663%		18.4487%	0.0000%
		$  1.5875000

(1) Dividend amount shown is for the full month in which the record date occurs.  Certain shares issued during the month received a pro-rated dividend amount that is less than the dividend amount shown.  The classification for federal income taxes remains the same.

(2) This was a taxable annual stock dividend of 0.20% per share, which equates to $0.05 per share.  Certain shares received a cash-in-lieu payment as certain fractional shares could not be issued.  Dividend amount shown is for the full year in which the record date occurs.  Certain shares issued during 2020 received a pro-rated dividend amount that is less than the dividend amount shown.  The classification for federal income taxes remains the same.

About Bluerock Residential Growth REIT, Inc.

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value add improvements to properties and operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

For more information, please visit the Company' website at: www.bluerockresidential.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, the Company's actual results and performance could differ materially from those set forth in these forward-looking statements due to numerous factors. Currently, one of the most significant factors is the potential adverse effect of the COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company and its tenants, partners and employees, as well as the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts the Company and its tenants, partners and employees will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact (including governmental actions that may vary by jurisdiction, such as mandated business closing; stay-at-home orders; limits on group activity; and actions to protect residential tenants from eviction), and the direct and indirect economic effects of the pandemic and containment measures, including national and local employment rates and the corresponding impact on the Company's tenants' ability to pay their rent on time or at all, among others. For further discussion of the factors that could affect outcomes, please refer to the risk factors set forth in Item 1A of the Company's Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on February 24, 2020, and subsequent filings by the Company with the SEC. We claim the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

 

 

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SOURCE Bluerock Residential Growth REIT, Inc.

FAQ

What is the income tax treatment for BRG's 2020 dividends?

The 2020 dividends for Bluerock Residential Growth REIT are primarily classified as return of capital.

What were the total dividends for BRG common and preferred stocks in 2020?

Total dividends for Class A common stock were $0.6500, while preferred stocks yielded varying amounts, with Series B preferred stock totaling $60.00.

How much did BRG Series A preferred stock pay in dividends in 2020?

Series A preferred stock dividends totaled $2.0625 in 2020.

What is the significance of return of capital for BRG's dividends?

Return of capital means that dividend distributions are not taxable as income, but affect the investors' tax basis in their shares.