City Office REIT Announces Tax Treatment of 2022 Distributions

Rhea-AI Summary

City Office REIT, Inc. (NYSE: CIO) has announced the tax treatment of its 2022 distributions to shareholders, pertaining to common stock and preferred stock. Shareholders are advised to consult their tax advisors for accurate reporting. Key distribution details include a total of $0.200 per share in ordinary dividends and specific capital gain distributions for various dates throughout 2022. The company emphasizes the importance of reviewing Forms 1099 for accuracy against the provided tax information. City Office REIT operates primarily in Sun Belt markets, owning approximately 6.0 million square feet of office space, and has elected REIT tax status.

Positive

• Company provides clear tax treatment information for 2022 distributions.
• Maintains a focus on high-quality office properties in growing Sun Belt markets.

Negative

• Ordinary dividends are not characterized as qualified dividends for tax purposes.

VANCOUVER, Jan. 30, 2023 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("the Company"), today announced the tax treatment of its 2022 distributions to holders of the Company's common stock and 6.625% Series A Cumulative Redeemable Preferred Stock ("Preferred Stock"). The tax information provided below should not be construed as tax advice and shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of the Company's distributions. This information is being provided to assist shareholders with tax reporting requirements related to dividend distributions of taxable income by the Company. Shareholders should review their Forms 1099 as well as other 2022 tax statements that they will receive from their brokerage firms or other institutions to ensure that the statements agree with the information provided below. 

The CUSIP number for the Company's common stock is 178587101.

Record Date	Payment Date	Total Distribution per Share	Ordinary Dividends (1)	Capital Gain Distributions (2)	Unrecaptured Section 1250 Gain (3)	Section 897 Capital Gain (4)	Return of Capital	Amount Qualifying as a Section 199A Dividend
01/11/2022	01/25/2022	$ 0.200	$ 0.102810	$ 0.097190	$ 0.029355	$ 0.097190	$ -	$ 0.102810
04/08/2022	04/22/2022	$ 0.200	$ 0.102810	$ 0.097190	$ 0.029355	$ 0.097190	$ -	$ 0.102810
07/08/2022	07/22/2022	$ 0.200	$ 0.102810	$ 0.097190	$ 0.029355	$ 0.097190	$ -	$ 0.102810
10/07/2022	10/21/2022	$ 0.200	$ 0.102810	$ 0.097190	$ 0.029355	$ 0.097190	$ -	$ 0.102810
Form 1099-DIV Box			1a	2a	2b	2f	3	5

The CUSIP number for the Company's Preferred Stock is 178587200.

Record Date	Payment Date	Total Distribution per Share	Ordinary Dividends (1)	Capital Gain Distributions (2)	Unrecaptured Section 1250 Gain (3)	Section 897 Capital Gain (4)	Return of Capital	Amount Qualifying as a Section 199A Dividend
01/11/2022	01/25/2022	$ 0.414063	$ 0.212850	$ 0.201213	$ 0.060774	$ 0.201213	$ -	$ 0.212850
04/08/2022	04/22/2022	$ 0.414063	$ 0.212850	$ 0.201213	$ 0.060774	$ 0.201213	$ -	$ 0.212850
07/08/2022	07/22/2022	$ 0.414063	$ 0.212850	$ 0.201213	$ 0.060774	$ 0.201213	$ -	$ 0.212850
10/07/2022	10/21/2022	$ 0.414063	$ 0.212850	$ 0.201213	$ 0.060774	$ 0.201213	$ -	$ 0.212850
Form 1099-DIV Box			1a	2a	2b	2f	3	5

(1)	For U.S. federal income tax purposes, none of the Company's ordinary dividends are characterized as qualified dividends.
(2)	For purposes of Section 1061 and Treasury Regulation §1.1061-6(c), the aggregate "One Year Amounts Disclosure" and "Three Year Amounts Disclosure" are $0 (0% of Box 2a) per share and $0 (0% of Box 2a) per share, respectively. Such additional information generally pertains to shares held through "applicable partnership interests" subject to Section 1061.
(3)	Unrecaptured Section 1250 gains are a subset of, and included in, the total capital gain amount.
(4)	These amounts reflect a distribution's composition of gains from the disposition of "United States real property interests" under Section 897. Generally, such information is relevant only to non-U.S. shareholders that own more than 10% of the Company's stock, as determined for purposes of Section 897, and certain entities through which non-U.S. shareholders own the Company's stock.

About City Office REIT, Inc.

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 6.0 million square feet of office properties. Additional information about City Office is available on the Company's website at www.cityofficereit.com. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

Forward-looking Statements

This press release contains "forward looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward looking statements. Forward looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include factors described in our news releases and filings with the United States Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2021, which has been filed with the SEC. Readers of this press release are cautioned to consider these risks and uncertainties and not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to matters discussed in this press release, except as may be required by applicable securities laws.

Contact

City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
investorrelations@cityofficereit.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/city-office-reit-announces-tax-treatment-of-2022-distributions-301733841.html

SOURCE City Office REIT, Inc.

FAQ

What is the tax treatment for City Office REIT's 2022 distributions?

City Office REIT announced that ordinary dividends for 2022 are not qualified dividends, and shareholders should verify their Forms 1099.

What were the ordinary dividends for City Office REIT in 2022?

City Office REIT distributed a total of $0.200 per share in ordinary dividends for 2022.

Where can I find information about City Office REIT's distributions?

Information regarding City Office REIT's distributions is found on their website and through the press release detailing tax treatments.

What is the focus of City Office REIT's investments?

City Office REIT primarily invests in high-quality office properties located in the Sun Belt markets.