Easterly Government Properties Announces Tax Characteristics of Its 2024 Distributions

Rhea-AI Summary

Easterly Government Properties (NYSE: DEA) has disclosed the tax characteristics of its 2024 distributions for common stockholders. The company, which focuses on Class A commercial properties leased to the U.S. Government, announced quarterly dividends of $0.2650 per share, totaling $1.0600 for the year.

The distributions are characterized as follows: 49.29% ($0.5224) as ordinary taxable dividends, 50.57% ($0.5360) as return of capital, and 0.14% ($0.0016) as capital gains. The Section 199A dividend amount is $0.5224, equal to the ordinary taxable dividend portion.

Positive

• Consistent quarterly dividend payments of $0.2650 per share throughout 2024
• High return of capital portion (50.57%) which is typically tax-advantaged for investors

Negative

• None.

Insights

Financial Tax Analyst

The 2024 dividend tax characteristics announcement from Easterly Government Properties reveals a strategically structured distribution that offers notable tax advantages for investors. The $1.06 annual dividend is carefully engineered with a significant return of capital component of 50.57%, which provides immediate tax benefits to shareholders.

The return of capital portion ($0.536 per share) is particularly advantageous as it's not immediately taxable - instead, it reduces the shareholder's cost basis in the stock. This tax-deferred treatment improves immediate after-tax returns, though investors should maintain careful records as this will affect capital gains calculations upon eventual sale of shares.

The ordinary taxable dividend component of $0.5224 per share qualifies entirely as Section 199A dividends, enabling eligible shareholders to benefit from the qualified business income deduction. This qualification can result in an effective tax rate reduction of up to 20% on this portion for qualifying taxpayers.

The minimal capital gains component (0.14%) and the absence of unrecaptured Section 1250 gains indicates efficient tax structuring by management. This distribution composition demonstrates Easterly's sophisticated approach to maintaining its REIT status while optimizing shareholder tax efficiency - particularly important given its focus on government-leased properties where predictable cash flows enable such precise distribution planning.

WASHINGTON--(BUSINESS WIRE)-- Easterly Government Properties, Inc. (NYSE: DEA) (“Easterly” or the “Company”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, announced the tax characteristics of the 2024 distributions on its common stock. The tax reporting will be done on Form 1099-DIV and shareholders are encouraged to consult with their personal tax advisors as to the specific tax treatment of these distributions. The characteristics of the Company's distributions are as follows:

Distributions on Easterly Common Shares:

Record Date	Payment Date	Dividend Per Share	Ordinary Taxable Dividend	Return of Capital	Capital Gain (1)	Unrecaptured Sec. 1250 Capital Gain	Section 199A Dividend (2)
3/6/2024	3/18/2024	$0.2650	$0.1306	$0.1340	$0.0004	$0.0000	$0.1306
5/9/2024	5/21/2024	$0.2650	$0.1306	$0.1340	$0.0004	$0.0000	$0.1306
8/1/2024	8/13/2024	$0.2650	$0.1306	$0.1340	$0.0004	$0.0000	$0.1306
11/15/2024	11/27/2024	$0.2650	$0.1306	$0.1340	$0.0004	$0.0000	$0.1306
Totals:		$1.0600	$0.5224	$0.5360	$0.0016	$0.0000	$0.5224
Percent of Total:		100.00%	49.29%	50.57%	0.14%	0.00%
(1) Pursuant to Treasury Regulation Section 1.1061-6(c), Easterly Government Properties, Inc. is disclosing the following information to its shareholders. “One Year Amounts Disclosure” is zero percent of the capital gain distributions allocated to each shareholder and “Three Year Amounts Disclosure” is zero percent of the capital gain distributions allocated to each shareholder. All capital gain distributions reported are related to Section 1231 gain.
(2) The amounts are included in the Ordinary Taxable Dividend amounts.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C. and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. With a long-stated goal of being the partner of choice to the United States Government, Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123437542/en/

Easterly Government Properties, Inc.

Lindsay S. Winterhalter

Senior Vice President, Investor Relations & Operations

202-596-3947

IR@easterlyreit.com

Source: Easterly Government Properties, Inc.

FAQ

What is the total dividend distribution for Easterly Government Properties (DEA) in 2024?

The total dividend distribution for DEA in 2024 is $1.0600 per share, paid in four quarterly installments of $0.2650 each.

How much of DEA's 2024 dividend is classified as return of capital?

50.57% ($0.5360) of DEA's 2024 dividend is classified as return of capital.

What percentage of DEA's 2024 dividend qualifies as ordinary taxable dividend?

49.29% ($0.5224) of DEA's 2024 dividend is classified as ordinary taxable dividend.

What are the payment dates for DEA's quarterly dividends in 2024?

DEA's 2024 dividend payment dates are March 18, May 21, August 13, and November 27.

What is the Section 199A dividend amount for DEA's 2024 distributions?

The Section 199A dividend amount for DEA's 2024 distributions is $0.5224, which equals the ordinary taxable dividend portion.