Cousins Properties Announces 2023 Tax Reporting Information

Rhea-AI Summary

Cousins Properties (NYSE:CUZ) announced the year-end tax reporting information for its 2023 distributions. The distributions for Cousins' common stock include ordinary dividends, capital gain distributions, and nondividend distributions. The release emphasizes the tax consequences of these distributions for stockholders and encourages consultation with tax advisors.

Insights

Tax Specialist

The distribution breakdown provided by Cousins Properties reflects a common practice among Real Estate Investment Trusts (REITs), where dividends are categorized for tax purposes. The designation of the majority as ordinary dividends and a portion as nondividend distributions is significant. Ordinary dividends are taxable as income, while nondividend distributions often represent a return of capital and may reduce an investor's cost basis, potentially deferring taxes until the sale of the asset.

For investors, understanding the tax treatment of these distributions is crucial for accurate tax planning and compliance. The fact that these dividends are considered qualified REIT dividends under section 199A can provide a substantial tax advantage, allowing for a deduction of up to 20% of these dividends for eligible taxpayers. However, the complexity of the tax code, especially with provisions like section 1061 affecting holders of applicable partnership interests, necessitates professional tax advice to navigate the implications effectively.

Financial Analyst

Analyzing the financial implications of Cousins Properties' distribution classifications, there are no capital gain distributions for most of the year, with a small exception in the third quarter. This indicates that the company's distributions are primarily funded through its operational earnings rather than by liquidating assets or realizing capital gains, which could be seen as a positive sign of the company's operational stability and income-generating ability.

The consistency in the nondividend distribution amount throughout the year suggests a stable return of capital policy. This could be interpreted by investors as a sign of the company's confidence in its financial position and commitment to returning value to shareholders. However, it also means that the company is not retaining as much capital for reinvestment, which could have implications for its long-term growth prospects.

REIT Analyst

From a Real Estate Investment Trusts (REITs) perspective, the disclosure highlights the company's adherence to the specific tax regulations governing REITs, which require the distribution of at least 90% of taxable income to shareholders. The classification of distributions is particularly relevant for REITs, as it impacts shareholders' tax obligations and the trust's compliance with the Internal Revenue Code.

The absence of a material change in the taxable classifications suggests stability in Cousins Properties' financial and operational strategy. This can be reassuring for investors looking for predictability in their investments. Additionally, the mention of section 897 gain indicates compliance with tax regulations pertinent to foreign shareholders, which is an important consideration for a diversified investor base.

ATLANTA, Jan. 16, 2024 /PRNewswire/ -- Cousins Properties (NYSE:CUZ) announced today the year-end tax reporting information for its 2023 distributions. For the tax year ended December 31, 2023, distributions for Cousins' common stock are classified as follows:

Record Date	Paid Date	Total Distributions Per Share	Ordinary Dividends (1) (2)	Capital Gain Distributions (3) (4) (5)	Nondividend Distributions
1/4/2023	1/13/2023	$0.320000	$0.254076	$0.000000	$0.065924
4/5/2023	4/14/2023	$0.320000	$0.254076	$0.000000	$0.065924
7/6/2023	7/17/2023	$0.320000	$0.245774	$0.008302	$0.065924
10/4/2023	10/13/2023	$0.320000	$0.254076	$0.000000	$0.065924

1 0% of the amounts is section 897 gain attributable to disposition of U.S. real property interests for foreign shareholders. 2 100% of the amounts included in Ordinary Dividends is treated as "qualified REIT dividends" for purposes of section 199A of the Internal Revenue Code. 3 100% of the amounts is section 897 gain attributable to disposition of U.S. real property interests for foreign shareholders. 4 100% of the amounts included in Capital Gain Distributions is One Year Disclosure Amounts and Three Year Disclosure Amounts for purposes of section 1061 of the Internal Revenue Code. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests". 5 0% of the amount included in the Capital Gain Distributions represents unrecaptured section 1250 gain.

This release has been prepared with the information available to date because the Company's tax returns have not yet been filed. The tax consequences of these distributions to each stockholder depend on such stockholder's particular facts and circumstances. Stockholders are thus encouraged to consult with their tax advisors as to the U.S. federal, state, local, and non-U.S. tax treatment of these distributions. No material change in the taxable classifications is expected. 

About Cousins Properties
Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments. For more information, please visit www.cousins.com.

CONTACT:
Roni Imbeaux
Vice President, Finance and Investor Relations
404-407-1104
rimbeaux@cousins.com

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SOURCE Cousins Properties

FAQ

What is the ticker symbol for Cousins Properties?

The ticker symbol for Cousins Properties is CUZ.

What are the types of distributions for Cousins' common stock in 2023?

The types of distributions for Cousins' common stock in 2023 include ordinary dividends, capital gain distributions, and nondividend distributions.

What are the record dates and paid dates for the distributions in 2023?

The record dates and paid dates for the distributions in 2023 are: 1/4/2023 - 1/13/2023, 4/5/2023 - 4/14/2023, 7/6/2023 - 7/17/2023, and 10/4/2023 - 10/13/2023.

What should stockholders consult with their tax advisors about regarding the distributions?

Stockholders should consult with their tax advisors about the U.S. federal, state, local, and non-U.S. tax treatment of the distributions.

What percentage of the amounts is section 897 gain attributable to disposition of U.S. real property interests for foreign shareholders?

10% of the amounts is section 897 gain attributable to disposition of U.S. real property interests for foreign shareholders.

Is there an expected material change in the taxable classifications of the distributions?

No material change in the taxable classifications is expected for the distributions.