CareTrust REIT, Inc. Announces Tax Treatment of 2024 Dividends

Rhea-AI Summary

CareTrust REIT (NYSE:CTRE) has announced the tax treatment of its 2024 dividends for shareholders. The company distributed a total of $1.15 per share throughout 2024, with 74.16% classified as ordinary dividends and 25.83% as non-dividend distributions. The dividends were paid quarterly, starting with $0.28 per share in January 2024, followed by three payments of $0.29 per share in April, July, and October.

The January 2025 distribution of $0.29 per share, though declared in Q4 2024, will be treated as a 2025 distribution for tax purposes as the company's 2024 cash distributions exceeded its earnings and profits. Shareholders will receive IRS Form 1099-DIV from Broadridge Corporate Issuer Solutions detailing the tax classifications of their dividends.

Positive

• Consistent quarterly dividend payments throughout 2024
• Slight dividend increase from $0.28 to $0.29 per share
• 74.16% of distributions qualify for Section 199A tax deduction

Negative

• 2024 cash distributions exceeded earnings and profits
• Final 2024 dividend ($0.29) shifted to 2025 tax year due to earnings limitation

SAN CLEMENTE, Calif.--(BUSINESS WIRE)-- CareTrust REIT, Inc. (NYSE:CTRE) reported today the tax status of its 2024 dividends paid to shareholders. Details on the classifications of the dividends are included in the table below:

DISTRIBUTIONS ON CARETRUST COMMON STOCK
							Box 1a	Box 1b	Box 2a	Box 2b	Box 3	Box 5
Record Date	Payment Date	Distribution Per Share		Taxable Distribution Per Share			Ordinary Dividend	Qualified Dividend (Included in Box 1a)	Capital Gain Distr.	Unrecap. Section 1250 Gain (Included in Box 2a)	Non-Dividend Distributions	Section 199A Dividend
12/29/23	01/12/24	$	0.2800	$	0.2077		74.1646%	0.0000%	0.0000%	0.0000%	25.8354%	74.1646%
03/28/24	04/15/24	$	0.2900	$	0.2151		74.1646%	0.0000%	0.0000%	0.0000%	25.8354%	74.1646%
06/28/24	07/15/24	$	0.2900	$	0.2151		74.1646%	0.0000%	0.0000%	0.0000%	25.8354%	74.1646%
09/30/24	10/15/24	$	0.2900	$	0.2151		74.1646%	0.0000%	0.0000%	0.0000%	25.8354%	74.1646%
12/31/24	01/15/25	$	0.2900	$	-	(1)	0.0000%	0.0000%	0.0000%	0.0000%	0.0000%	0.0000%
Total		$	1.1500	$	0.8529		74.1646%	0.0000%	0.0000%	0.0000%	25.8354%	74.1646%
(1) As the Company's aggregate 2024 cash distributions exceeded its 2024 earnings and profits, the January 2025 cash distribution declared in the fourth quarter of 2024 will be treated as a 2025 distribution for federal income tax purposes and not included on the 2024 Form 1099. If you were a stockholder of record as of December 31, 2024, $0.00 is reported on your 2024 Form 1099 and $0.29 will be reported on your 2025 Form 1099.

Shareholders of record of the Company’s common stock will receive an Internal Revenue Service Form 1099-DIV from Broadridge Corporate Issuer Solutions, the Company’s 2024 dividend paying agent. The form will report the dividends paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, non-dividend distributions and dividends that may be eligible for the 20% qualified business income deduction under section 199A. If shares were held in “street name” during 2024, the IRS form will be provided by a bank, brokerage firm, or nominee. Because the Company’s tax return has not yet been filed for the year ended December 31, 2024, the dividend income tax allocations presented herein have been calculated using the best available information to date.

The tax treatment of these dividends by state and local authorities varies and may not be the same as the IRS’s treatment. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how dividends should be reported on their tax returns. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local income tax consequences of these dividends.

About CareTrust™

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.

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CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com

Source: CareTrust REIT, Inc.

FAQ

What is the total dividend amount paid by CareTrust REIT (CTRE) in 2024?

CareTrust REIT paid a total of $1.15 per share in dividends during 2024.

How are CTRE's 2024 dividends classified for tax purposes?

74.16% of the distributions are classified as ordinary dividends, and 25.83% as non-dividend distributions.

Why is CTRE's December 2024 dividend being treated as a 2025 distribution?

The December 2024 dividend will be treated as a 2025 distribution because the company's 2024 cash distributions exceeded its earnings and profits.

What percentage of CTRE's 2024 dividends qualify for the Section 199A deduction?

74.16% of the dividends qualify for the Section 199A qualified business income deduction.

How often did CTRE pay dividends in 2024?

CTRE paid dividends quarterly, with payments in January, April, July, and October 2024.