EPR Properties Announces Tax Status of 2023 Distributions
- None.
- None.
Insights
From a taxation perspective, the distribution details provided by EPR Properties are vital for shareholders to accurately report income and understand the tax implications of their investments. The classification of distributions between taxable ordinary dividends and non-taxable return of capital is particularly important. Ordinary dividends are taxed at the shareholder's individual tax rate, while return of capital reduces the cost basis of the investment and is not taxed until the security is sold, potentially deferring tax liability.
Notably, there are no capital gain distributions reported, which implies that the company did not realize net capital gains from the sale of investments or assets that would be distributed to shareholders. This could suggest a focus on income-generating activities rather than capital appreciation strategies. Additionally, the lack of unrecaptured Section 1250 gain indicates that there were no dispositions of depreciable real property resulting in gains that would be taxed at a higher rate.
Analyzing the financial health of EPR Properties through its distributions, it is evident that the company is maintaining a steady stream of income to its shareholders. The consistency in the cash distribution per share throughout the year indicates a stable financial performance. However, investors should note that the high percentage of distributions classified as non-taxable return of capital could suggest that the company is returning part of the investment back to the shareholders rather than distributing profits.
This could be interpreted in several ways: it may indicate that the company is not generating sufficient income to cover the distributions entirely from earnings, or it could be a strategic tax decision. In either case, it is critical for investors to consider how these distributions align with the company's long-term growth strategy and asset management.
As a REIT, EPR Properties is required to distribute at least 90% of its taxable income to shareholders, which can often result in a high dividend yield. The details provided in the distribution announcement highlight the company's compliance with this requirement but also raise questions about the source of the distributions. The non-cash distributions associated with conversion adjustments for the preferred shares indicate that the company is using mechanisms to reward shareholders without distributing cash, which could be a response to liquidity management or an incentive strategy to hold the preferred shares.
The conversion adjustment mechanism is a sophisticated financial tool that allows shareholders to benefit from an increase in the value of their convertible securities without immediate tax consequences. However, it also reflects the company's obligation to manage its share dilution carefully, as the issuance of additional shares can affect the stock's market value.
The 2023 distributions paid of
Record
|
Payment
|
Cash
|
Taxable
|
Non-
|
Total
|
Unrecaptured
|
Total 199A
|
12-30-22 |
01-17-23 |
|
|
|
|
|
|
01-31-23 |
02-15-23 |
|
|
|
|
|
|
02-28-23 |
03-15-23 |
|
|
|
|
|
|
03-31-23 |
04-17-23 |
|
|
|
|
|
|
04-28-23 |
05-15-23 |
|
|
|
|
|
|
05-31-23 |
06-15-23 |
|
|
|
|
|
|
06-30-23 |
07-17-23 |
|
|
|
|
|
|
07-31-23 |
08-15-23 |
|
|
|
|
|
|
08-31-23 |
09-15-23 |
|
|
|
|
|
|
09-29-23 |
10-16-23 |
|
|
|
|
|
|
10-31-23 |
11-15-23 |
|
|
|
|
|
|
11-30-23 |
12-15-23 |
|
|
|
|
|
|
Total for 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The 2023 total distributions per share of
Record
|
Payment
|
Cash
|
Taxable
|
Non-
|
Total
|
Unrecaptured
|
Total 199A
|
12-30-22 |
01-17-23 |
|
|
|
|
|
|
03-31-23 |
04-17-23 |
|
|
|
|
|
|
06-30-23 |
07-17-23 |
|
|
|
|
|
|
09-29-23 |
10-16-23 |
|
|
|
|
|
|
Total for 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Date |
Non-cash
|
Taxable
|
Non-
|
Total
|
Unrecaptured
|
Total 199A
|
|
09-29-2023 |
|
|
|
|
|
|
|
12-29-2023 |
|
|
|
|
|
|
|
Total for 2023(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The 2023 distributions paid of
Record
|
Payment
|
Cash
|
Taxable
|
Non-
|
Total
|
Unrecaptured
|
Total 199A
|
12-30-22 |
01-17-23 |
|
|
|
|
|
|
03-31-23 |
04-17-23 |
|
|
|
|
|
|
06-30-23 |
07-17-23 |
|
|
|
|
|
|
09-29-23 |
10-16-23 |
|
|
|
|
|
|
Total for 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Shareholders of the Series C |
|
|
||
In accordance with the respective Series provisions, the conversion adjustment is effective in quarters in which the change in the cumulative increased conversion ratio exceeds |
The 2023 total distributions paid per share of
| Record Date |
Payment
|
Cash
|
Taxable
|
Non-
|
Total
|
Unrecaptured
|
Total 199A
|
12-30-22 |
01-17-23 |
|
|
|
|
|
|
03-31-23 |
04-17-23 |
|
|
|
|
|
|
06-30-23 |
07-17-23 |
|
|
|
|
|
|
09-29-23 |
10-16-23 |
|
|
|
|
|
|
Total for 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About EPR Properties
EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues which create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20240112824362/en/
EPR Properties
Brian Moriarty
Vice President, Corporate Communications
brianm@eprkc.com | 816-472-1700
Source: EPR Properties
FAQ
What is the 2023 total distributions per share for EPR Properties?
What are the cash distributions paid per share for the Series E 9.00% Cumulative Convertible Preferred Shares?
What should shareholders do regarding the tax treatment of EPR Properties distributions?
