Cedar Realty Trust Announces Tax Information for 2023 Distributions
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Insights
The announcement by Cedar Realty Trust, Inc. regarding the tax treatment of its 2023 distributions is critical for shareholders, particularly in understanding the tax implications of their investments. The company's breakdown of distributions into ordinary dividends and capital gain distributions, including Unrecaptured Section 1250 Gain, is a key aspect for tax reporting. The Unrecaptured Section 1250 Gain, which is part of the capital gain distribution, relates to depreciation recapture on real property and is taxed at a maximum rate of 25%, which is different from the rate applied to other capital gains.
Furthermore, the Section 897 Capital Gain information is pertinent to shareholders subject to the Foreign Investment in Real Property Tax Act (FIRPTA), which involves taxation on the disposition of U.S. real property interests by foreign persons. The company's disclosure complies with Treasury Regulation §1.1061-6(c), indicating that all capital gain dividends relate to Section 1231 gains, which generally pertain to depreciable business property and are subject to preferential tax treatment if held for more than one year.
This information is crucial for shareholders to accurately report their investment income and understand the tax consequences associated with their preferred shares in Cedar Realty Trust, Inc. Shareholders, especially those with 'applicable partnership interests,' should consult with tax professionals to ensure compliance and optimize their tax positions.
The distribution details provided by Cedar Realty Trust, Inc. offer insight into the company's financial health and its ability to return value to shareholders. The consistent distribution amounts for both Series B and C Preferred Stock across all four quarters indicate a stable financial position and a commitment to providing shareholders with predictable returns.
From a financial analysis perspective, the absence of ordinary dividends and the composition of distributions being primarily return of capital suggests that the company is managing its earnings and tax strategies efficiently. This approach can be beneficial for shareholders seeking to defer taxes, as return of capital reduces the cost basis of the investment rather than being taxed as immediate income, like ordinary dividends.
Investors and analysts should consider these distributions in the context of the company's overall performance, including its revenue streams, profitability and asset management. Such distributions could potentially impact the stock's attractiveness to income-focused investors and could also influence the company's stock price stability in the market.
The announcement from Cedar Realty Trust, Inc. concerning the tax treatment of its preferred stock distributions may indirectly reflect broader market trends in the real estate investment trust (REIT) sector. REITs typically distribute a significant portion of their taxable income to shareholders and these distributions are often subject to complex tax considerations.
Market research indicates that transparency in tax treatment and consistent distributions are factors that can enhance investor confidence and potentially attract a stable shareholder base. By providing detailed tax information, Cedar Realty Trust, Inc. is not only fulfilling regulatory requirements but also addressing the informational needs of sophisticated investors who may factor tax efficiency into their investment decisions.
Furthermore, the company's ability to maintain consistent distributions throughout the year could be seen as a positive signal to the market, suggesting operational stability and effective asset management. This could influence investor perception and ultimately, the market valuation of Cedar Realty Trust, Inc.
VIRGINIA BEACH, VA / ACCESSWIRE / January 24, 2024 / Cedar Realty Trust, Inc. (the "Company") (NYSE:CDRpB)(NYSE:CDRpC) today announced the federal income tax treatment of its 2023 distributions to the holders of its preferred shares.
Series B Preferred Stock | Symbol: CDRpB | CUSIP: 150602407 | |||||||||||||||
| Total | Unrecaptured | ||||||||||||||||
| Distribution | Ordinary | Capital Gain | Section | Nondividend | |||||||||||||
Record Date | Payable Date | Per Share | Dividends | Distribution (2) (3) | 1250 Gain (1) | Distribution | |||||||||||
2/10/2023 | 2/20/2023 | $ | 0.453125 | $ | 0.000000 | $ | 0.022656 | $ | 0.022656 | $ | 0.430469 | ||||||
5/10/2023 | 5/22/2023 | $ | 0.453125 | $ | 0.000000 | $ | 0.022656 | $ | 0.022656 | $ | 0.430469 | ||||||
8/10/2023 | 8/21/2023 | $ | 0.453125 | $ | 0.000000 | $ | 0.022656 | $ | 0.022656 | $ | 0.430469 | ||||||
11/10/2023 | 11/20/2023 | $ | 0.453125 | $ | 0.000000 | $ | 0.022656 | $ | 0.022656 | $ | 0.430469 | ||||||
Totals | $ | 1.812500 | $ | 0.000000 | $ | 0.090624 | $ | 0.090624 | $ | 1.721876 | |||||||
Series C Preferred Stock | Symbol: CDRpC | CUSIP: 1506025063 | |||||||||||||||
| Total | Unrecaptured | ||||||||||||||||
| Distribution | Ordinary | Capital Gain | Section | Nondividend | |||||||||||||
Record Date | Payable Date | Per Share | Dividends | Distribution (2) (3) | 1250 Gain (1) | Distribution | |||||||||||
2/10/2023 | 2/20/2023 | $ | 0.406250 | $ | 0.000000 | $ | 0.020313 | $ | 0.020313 | $ | 0.385937 | ||||||
5/10/2023 | 5/22/2023 | $ | 0.406250 | $ | 0.000000 | $ | 0.020313 | $ | 0.020313 | $ | 0.385937 | ||||||
8/10/2023 | 8/21/2023 | $ | 0.406250 | $ | 0.000000 | $ | 0.020313 | $ | 0.020313 | $ | 0.385937 | ||||||
11/10/2023 | 11/20/2023 | $ | 0.406250 | $ | 0.000000 | $ | 0.020313 | $ | 0.020313 | $ | 0.385937 | ||||||
Totals | $ | 1.625000 | $ | 0.000000 | $ | 0.081252 | $ | 0.081252 | $ | 1.543748 | |||||||
(1) The amount reported as Unrecaptured Section 1250 Gain is a subset of, and is included in, the Capital Gain Distribution.
(2) The Section 897 Capital Gain amount is equal to
(3) Pursuant to Treasury Regulation §1.1061-6(c), Cedar Realty Turst, Inc. is disclosing additional information related to the Capital Gain Distributions reported. on Form 1099-DIV, for purposes of Section 1061. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests." "The One Year Amounts" and "Three Year Amounts" required to be disclosed are both zero with respect to the 2023 distributions, since all capital gain dividends relate to Section 1231 gains.
Shareholders are advised to consult their tax advisor about the specific tax treatment of 2023 dividends.
About Cedar Realty Trust
Cedar Realty Trust, Inc., a wholly owned subsidiary of Wheeler Real Estate Investment Trust, Inc., is a real estate investment trust (REIT) that owns and operates income producing retail properties with a primary focus on grocery-anchored shopping centers in the Northeast. The Company's portfolio comprises 19 properties, with approximately 2.8 million square feet of gross leasable area.
For additional financial and descriptive information on the Company, its operations, and its portfolio, please refer to the Company's website at www.whlr.us.
Contact Information:
Cedar Realty Trust, Inc.
(757) 627-9088
SOURCE: Cedar Realty Trust, Inc.
View the original press release on accesswire.com
FAQ
What is the federal income tax treatment announced by Cedar Realty Trust, Inc. for its 2023 distributions to the holders of its preferred shares?
What is the total unrecaptured distribution for the Series B Preferred Stock Symbol CDRpB?
What was the ordinary capital gain for the Series B Preferred Stock Symbol CDRpB?
What was the section 1250 gain for the Series B Preferred Stock Symbol CDRpB?
What is the total unrecaptured distribution for the Series C Preferred Stock Symbol CDRpC?
What was the ordinary capital gain for the Series C Preferred Stock Symbol CDRpC?
What was the section 1250 gain for the Series C Preferred Stock Symbol CDRpC?
What did Cedar Realty Trust, Inc. advise shareholders to do?
