City Office REIT Announces Tax Treatment of 2024 Distributions
City Office REIT (NYSE: CIO) has released the tax treatment details for its 2024 distributions for both common stock and 6.625% Series A Cumulative Redeemable Preferred Stock holders. For common stock, quarterly distributions were $0.100 per share, with $0.008539 classified as ordinary dividends and $0.091461 as return of capital. For Preferred Stock, quarterly distributions were $0.414063 per share, fully classified as ordinary dividends. No qualified dividends or capital gain distributions were made for either stock class. All ordinary dividend amounts qualify as Section 199A dividends.
City Office REIT (NYSE: CIO) ha rilasciato i dettagli sul trattamento fiscale delle sue distribuzioni per il 2024, sia per gli azionisti di azioni ordinarie che per quelli di azioni privilegiate cumulative rimborsabili di Serie A al 6,625%. Per le azioni ordinarie, le distribuzioni trimestrali sono state di $0,100 per azione, con $0,008539 classificati come dividendi ordinari e $0,091461 come restituzione di capitale. Per le azioni privilegiate, le distribuzioni trimestrali sono state di $0,414063 per azione, interamente classificate come dividendi ordinari. Non sono stati effettuati dividendi qualificati o distribuzioni di guadagni in capitale per nessuna delle classi di azioni. Tutti gli importi dei dividendi ordinari qualificano come dividendi ai sensi della Sezione 199A.
City Office REIT (NYSE: CIO) ha publicado los detalles sobre el tratamiento fiscal de sus distribuciones para 2024, tanto para los accionistas de acciones ordinarias como para los de acciones preferentes redimibles acumulativas de la Serie A al 6,625%. Para las acciones ordinarias, las distribuciones trimestrales fueron de $0,100 por acción, con $0,008539 clasificadas como dividendos ordinarios y $0,091461 como retorno de capital. Para las acciones preferentes, las distribuciones trimestrales fueron de $0,414063 por acción, completamente clasificadas como dividendos ordinarios. No se realizaron dividendos calificados ni distribuciones de ganancias de capital para ninguna de las clases de acciones. Todos los montos de dividendos ordinarios califican como dividendos de la Sección 199A.
City Office REIT (NYSE: CIO)는 2024년 일반 주식 및 6.625% 시리즈 A 누적 상환 우선주 보유자에 대한 배당금의 세무 처분 세부정보를 발표했습니다. 일반 주식의 경우, 분기 배당금은 주당 $0.100였으며, 이 중 $0.008539는 일반 배당으로 분류되고 $0.091461은 자본 환급으로 분류되었습니다. 우선주의 경우, 분기 배당금은 주당 $0.414063로, 전부 일반 배당으로 분류되었습니다. 두 주식 클래스에 대해서는 자격이 있는 배당금이나 자본 이득 배당금이 지급되지 않았습니다. 모든 일반 배당금은 섹션 199A의 배당금으로 자격이 됩니다.
City Office REIT (NYSE: CIO) a publié les détails sur le traitement fiscal de ses distributions pour 2024, tant pour les actionnaires de l'action ordinaire que pour ceux de l'action privilégiée remboursable cumulative de la série A à 6,625%. Pour les actions ordinaires, les distributions trimestrielles étaient de 0,100 $ par action, dont 0,008539 $ ont été classés comme dividendes ordinaires et 0,091461 $ comme retour sur capital. Pour les actions privilégiées, les distributions trimestrielles étaient de 0,414063 $ par action, entièrement classées comme dividendes ordinaires. Aucun dividende qualifié ni distribution de gain en capital n'ont été effectués pour aucune des classes d'actions. Tous les montants des dividendes ordinaires sont éligibles en tant que dividendes selon la section 199A.
City Office REIT (NYSE: CIO) hat die steuerlichen Bestimmungen für seine Ausschüttungen im Jahr 2024 für sowohl Stammaktionäre als auch Inhaber von 6,625% kumulierten zurückforderbaren Vorzugsaktien der Serie A veröffentlicht. Für Stammaktien betrugen die vierteljährlichen Ausschüttungen $0,100 pro Aktie, wobei $0,008539 als ordentliche Dividenden und $0,091461 als Kapitalrückzahlung klassifiziert wurden. Für Vorzugsaktien betrugen die vierteljährlichen Ausschüttungen $0,414063 pro Aktie, vollständig als ordentliche Dividenden klassifiziert. Für keine der Aktienklassen wurden qualifizierte Dividenden oder Kapitalgewinnausschüttungen vorgenommen. Alle Beträge der ordentlichen Dividenden qualifizieren als Dividenden gemäß Abschnitt 199A.
- Consistent quarterly dividend payments maintained throughout 2024
- 100% of preferred stock dividends qualify as Section 199A dividends
- Common stock distributions include significant return of capital component (91.461%), which can be tax-advantageous for shareholders
- Only 8.539% of common stock distributions classified as ordinary dividends
- No qualified dividends or capital gain distributions for either stock class
Insights
The 2024 tax treatment disclosure for City Office REIT reveals a notable distribution structure that warrants careful analysis. For common shareholders, the quarterly distributions of
From a tax perspective, return of capital distributions reduce the shareholder's cost basis rather than being immediately taxable, effectively deferring taxes until the shares are sold. However, this structure typically indicates that the REIT's taxable income is substantially lower than its cash distributions, which could signal underlying operational challenges in generating sufficient taxable income from its property portfolio.
In contrast, the preferred stock distributions (
For investors, this tax treatment structure requires careful consideration. While the high return of capital component offers immediate tax advantages, it may indicate potential sustainability concerns regarding the common stock dividend level. The consistent ordinary dividend treatment of preferred shares provides more predictable tax treatment but also highlights the senior position of these securities in the capital structure.
The CUSIP number for the Company's common stock is 178587101.
Record Date | Payment Date | Total Distribution per Share | Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Return of Capital | Amount Qualifying as a Section 199A Dividend |
01/10/2024 | 01/24/2024 | $ - | $ - | ||||
04/10/2024 | 04/24/2024 | $ - | $ - | ||||
07/10/2024 | 07/24/2024 | $ - | $ - | ||||
10/10/2024 | 10/24/2024 | $ - | $ - | ||||
Form 1099-DIV Box | 1a | 1b | 2a | 3 | 5 |
The CUSIP number for the Company's Preferred Stock is 178587200.
Record Date | Payment Date | Total Distribution per Share | Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Return of Capital | Amount Qualifying as a Section 199A Dividend |
01/10/2024 | 01/24/2024 | $ - | $ - | $ - | |||
04/10/2024 | 04/24/2024 | $ - | $ - | $ - | |||
07/10/2024 | 07/24/2024 | $ - | $ - | $ - | |||
10/10/2024 | 10/24/2024 | $ - | $ - | $ - | |||
Form 1099-DIV Box | 1a | 1b | 2a | 3 | 5 |
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.4 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for
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, 2023, 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
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SOURCE City Office REIT, Inc.
FAQ
What is the quarterly dividend amount for CIO common stock in 2024?
How much of CIO's 2024 common stock distribution is return of capital?
What is the quarterly dividend for CIO's Preferred Stock in 2024?
Are any of CIO's 2024 distributions qualified dividends?
What percentage of CIO's common stock distributions qualify as Section 199A dividends?
