Digital Realty Announces Tax Treatment of 2023 Dividends
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Insights
Understanding the tax implications of dividend distributions is crucial for investors, particularly in the case of a Real Estate Investment Trust (REIT) like Digital Realty. The announcement details the breakdown of ordinary income and capital gains distributions, which have different tax treatments. Ordinary income is taxed at the individual's income tax rate, while the capital gain distribution, which represents profit from the sale of assets, is typically taxed at a lower rate.
The disclosure of the tax treatment before the filing of the company's federal income tax return indicates a proactive approach to transparency, allowing shareholders to plan their tax strategies effectively. The mention of Section 199A dividends is significant because it implies that shareholders could be eligible for a deduction of up to 20% on these dividends, a substantial tax advantage introduced by the Tax Cuts and Jobs Act of 2017.
For REITs like Digital Realty, the distribution of dividends is a core aspect of their business model, as they are required to distribute at least 90% of their taxable income to shareholders. The high percentage of the dividend classified as capital gain distribution reflects the company's ability to realize gains from its property portfolio, which could be indicative of effective asset management and profitable disposition of properties.
The capital gains distribution is also a key indicator of the company's overall financial health and its ability to generate value for shareholders. It is important to note that the capital gains reported may affect the stock's attractiveness to certain investors who are looking for specific tax advantages.
The announcement of dividend tax treatment can have implications for the stock's desirability among investors. The allocation of a significant portion of Digital Realty's dividends to capital gains could be appealing to investors in higher tax brackets, as these are taxed at a lower rate than ordinary income. Moreover, the detailed breakdown of dividends, including sections specific to nonresident aliens and foreign corporations (Section 897), as well as disclosures related to Section 1061, provides transparency and could potentially reduce uncertainty for investors with complex tax considerations.
Investors may also consider the timing of the dividend distributions and their tax implications when making investment decisions. The advance notice of tax treatment allows for more informed financial planning and could influence investor sentiment and the stock's performance in the market.
Digital Realty Trust, Inc. Common Stock Dividends
CUSIP # 253868103
Ticker Symbol: DLR
Digital Realty's 2023 taxable dividend of
The following table contains this information on a quarterly basis:
Record | Payment | Cash Distribution ($ per share) (1) | Taxable Dividend ($ per share) (1) | Box 1a ($ per share) | Box 1b ($ per share) | Box 2a Long-Term ($ per share) | Box 2b Unrecaptured ($ per share) | Box 2f | Box 5 Section 199A ($ per share) | Section 1061 One-Year | Section 1061 Three-Year |
12/15/2022 | 01/13/2023 | ||||||||||
03/15/2023 | 03/31/2023 | ||||||||||
06/15/2023 | 06/30/2023 | ||||||||||
09/15/2023 | 09/29/2023 | ||||||||||
12/15/2023 | 01/19/2024 | ||||||||||
(1) | Please note that of the |
(2) | Represents Section 897 gain attributable to disposition of |
(3) | Beginning in 2018, the Tax Cuts and Jobs Act of 2017 added Section 199A to allow for a new tax deduction based on certain qualified business income. Section 199A provides eligible individual taxpayers a deduction of up to |
(4) | For purposes of Section 1061 of the Internal Revenue Code, Digital Realty is disclosing two additional capital gain categories. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests." Please consult your tax advisor with respect to the two additional categories disclosed herein. |
Series J Cumulative Redeemable Preferred Stock Dividends
CUSIP # 253868855
Ticker Symbol: DLRPRJ
The 2023 taxable dividend for Digital Realty Trust, Inc.'s Series J Cumulative Redeemable Preferred Stock is
The following table contains this information on a quarterly basis:
Record | Payment | Cash ($ per share) | Taxable ($ per share) | Box 1a Ordinary ($ per share) | Box 1b Qualified ($ per share) | Box 2a ($ per share) | Box 2b Unrecaptured ($ per share) | Box 2f Section | Box 5 Section 199A ($ per share) | Section 1061 ($ per share) | Section 1061 ($ per share) |
03/15/2023 | 03/31/2023 | ||||||||||
06/15/2023 | 06/30/2023 | ||||||||||
09/15/2023 | 09/29/2023 | ||||||||||
12/15/2023 | 12/29/2023 | ||||||||||
Series K Cumulative Redeemable Preferred Stock Dividends
CUSIP # 253868830
Ticker Symbol: DLRPRK
The 2023 taxable dividend for Digital Realty Trust, Inc.'s Series K Cumulative Redeemable Preferred Stock is
The following table contains this information on a quarterly basis:
Record | Payment | Cash ($ per share) | Taxable ($ per share) | Box 1a Ordinary ($ per share) | Box 1b Qualified ($ per share) | Box 2a ($ per share) | Box 2b Unrecaptured ($ per share) | Box 2f Section ($ per share) | Box 5 Section 199A ($ per share) | Section 1061 | Section 1061 ($ per share) |
03/15/2023 | 03/31/2023 | ||||||||||
06/15/2023 | 06/30/2023 | ||||||||||
09/15/2023 | 09/29/2023 | ||||||||||
12/15/2023 | 12/29/2023 | ||||||||||
Series L Cumulative Redeemable Preferred Stock Dividends
CUSIP # 253868822
Ticker Symbol: DLRPRL
The 2023 taxable dividend for Digital Realty Trust, Inc.'s Series L Cumulative Redeemable Preferred Stock is
The following table contains this information on a quarterly basis:
Record | Payment | Cash ($ per share) | Taxable ($ per share) | Box 1a Ordinary ($ per share) | Box 1b Qualified ($ per share) | Box 2a ($ per share) | Box 2b Unrecaptured | Box 2f | Box 5 Section 199A ($ per share) | Section 1061 ($ per share) | Section 1061 ($ per share) |
03/15/2023 | 03/31/2023 | ||||||||||
06/15/2023 | 06/30/2023 | ||||||||||
09/15/2023 | 09/29/2023 | ||||||||||
12/15/2023 | 12/29/2023 | ||||||||||
Note that ticker symbols may vary by stock quote provider.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount and payment of dividends on our common stock and preferred stock. For a list and description of such risks and uncertainties, see the reports and other filings by the company with the
For Additional Information
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
(737) 281-0101
InvestorRelations@digitalrealty.com
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SOURCE Digital Realty
FAQ
What is the 2023 taxable dividend per share for Digital Realty's common stock?
What is the 2023 taxable dividend per share for Digital Realty's Series J Cumulative Redeemable Preferred Stock?
What is the 2023 taxable dividend per share for Digital Realty's Series K Cumulative Redeemable Preferred Stock?
What is the 2023 taxable dividend per share for Digital Realty's Series L Cumulative Redeemable Preferred Stock?
How should shareholders report Digital Realty's dividends on their federal income tax return?
What is the ticker symbol for Digital Realty?
