Douglas Emmett Announces 2023 Tax Treatment of Dividends

Rhea-AI Summary

Douglas Emmett, Inc. (DEI), a real estate investment trust (REIT), has announced the tax treatment of its 2023 common stock dividends, with a total dividend of $0.76 per share. Shareholders are advised to consult their tax advisors for specific treatment. The dividends are categorized as ordinary income, capital gain, return of capital, and Section 199A dividends, with $0.19 per share for each payment date.

Insights

Tax Advisor

An important consideration for investors in real estate investment trusts (REITs) like Douglas Emmett, Inc. is the tax treatment of dividends. The classification of dividends into ordinary income, capital gains and return of capital can have varying tax implications. Notably, a return of capital reduces an investor's cost basis in the stock, potentially deferring taxes until the stock is sold. However, it also implies that the company is not generating enough income to cover the dividend, which could be a red flag for investors seeking sustainable dividend income.

Financial Analyst

From a financial perspective, the dividend allocation indicates that Douglas Emmett is not paying out any portion of the dividend as capital gains, which could suggest that the REIT is not realizing significant capital gains from property sales. This could be a sign of a stable, income-oriented investment strategy or a lack of growth opportunities. Additionally, the Section 199A dividends, qualifying for a 20% income deduction under certain conditions, can be attractive for individual investors, but it's essential to evaluate the company's ability to maintain its dividend levels in the context of its overall financial health and operational performance.

REIT Analyst

For those specializing in REITs, the high proportion of dividends classified as return of capital is noteworthy. While this can offer tax advantages, it may also indicate that the company is distributing more than its taxable income, which could impact its ability to sustain dividend payments in the long term. Investors should assess the REIT's funds from operations (FFO), a key measure of REIT performance, in comparison to its dividend payouts to gauge the sustainability of its dividend policy.

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Douglas Emmett, Inc. (NYSE: DEI), a real estate investment trust (REIT), announced today the tax treatment of its 2023 common stock dividends as described below. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Douglas Emmett dividends.

Record Date	Paid Date	Dividend Per Share	Ordinary Income	Capital Gain	Return of Capital	Amount Qualifying as a Section 199A Dividend
12/30/22	01/18/23	$0.19	$0.0380	$0.00	$0.1520	$0.0380
03/31/23	04/14/23	$0.19	$0.0380	$0.00	$0.1520	$0.0380
06/30/23	07/18/23	$0.19	$0.0380	$0.00	$0.1520	$0.0380
09/29/23	10/17/23	$0.19	$0.0380	$0.00	$0.1520	$0.0380
	Total:	$0.76	$0.1520	$0.00	$0.6080	$0.1520

As noted above, the common stock dividend paid on January 18, 2023, with a record date of December 30, 2022, has been allocated entirely to 2023. The common stock dividend of $0.19 per share that was paid on January 17, 2024, with a record date of December 29, 2023, will be allocated entirely to 2024.

About Douglas Emmett, Inc.

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information about Douglas Emmett, please visit our website at www.douglasemmett.com.

Safe Harbor Statement

Except for the historical facts, the statements in this press release regarding Douglas Emmett’s business activities are forward-looking statements based on the beliefs of, assumptions made by, and information currently available to us about known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. For a discussion of some of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240122669382/en/

Stuart McElhinney, Vice President – Investor Relations

310.255.7751 smcelhinney@douglasemmett.com

Source: Douglas Emmett, Inc.

FAQ

What is the ticker symbol for Douglas Emmett, Inc.?

The ticker symbol for Douglas Emmett, Inc. is DEI.

What is the total dividend per share for 2023 announced by Douglas Emmett, Inc.?

The total dividend per share for 2023 announced by Douglas Emmett, Inc. is $0.76.

How is the dividend categorized for the shareholders?

The dividend is categorized as ordinary income, capital gain, return of capital, and Section 199A dividends for the shareholders.

When was the common stock dividend paid on January 18, 2023, allocated to?

The common stock dividend paid on January 18, 2023, with a record date of December 30, 2022, has been allocated entirely to 2023.

What is the advice for shareholders regarding tax treatment of dividends?

Shareholders are advised to consult with their personal tax advisors for specific tax treatment of Douglas Emmett dividends.