Equinix Announces Tax Treatment of 2024 Distributions

Rhea-AI Summary

Equinix (EQIX) has disclosed its tax treatment for all 2024 distributions on common stock. The company distributed a total of $17.04 per share throughout 2024, paid in four equal quarterly installments of $4.26 per share. All distributions were classified as ordinary taxable dividends (Box 1a) and Section 199A dividends (Box 5).

The quarterly payments were made on March 20, June 19, September 18, and December 11, 2024, with respective record dates of February 28, May 22, August 21, and November 13. There were no qualified taxable dividends or return of capital distributions during 2024.

Positive

• Consistent quarterly dividend payments of $4.26 per share throughout 2024
• Total annual distribution of $17.04 per share to shareholders
• 100% of distributions qualify as Section 199A dividends, providing potential tax benefits to shareholders

Negative

• None.

Insights

Tax Expert

This tax distribution announcement reveals critical information for EQIX shareholders regarding the $17.04 per share in total dividends paid throughout 2024. The key insight lies in the classification - 100% of distributions qualify as ordinary taxable dividends and Section 199A dividends, with no return of capital or qualified dividend components.

Notably, EQIX's consistent quarterly dividend of $4.26 per share demonstrates strong cash flow stability. As a REIT, Equinix must distribute at least 90% of its taxable income to shareholders. The Section 199A designation allows individual shareholders to benefit from a 20% tax deduction on REIT dividends, effectively lowering their tax burden.

For portfolio implications, investors should note that REIT distributions are taxed at ordinary income rates rather than the preferential qualified dividend rates. The $17.04 annual dividend yield of approximately 2.5% based on current market cap provides steady income, though tax-sensitive investors may prefer holding EQIX in tax-advantaged accounts.

Financial Analyst

The dividend structure reflects Equinix's robust financial position as a leading digital infrastructure REIT. With a market cap of $86.8B, the annual dividend commitment of $17.04 per share represents a sustainable payout ratio aligned with the company's cash flow generation from its global data center portfolio.

The consistency in quarterly payments of $4.26 signals management's confidence in the company's recurring revenue model and growth trajectory. This stability is particularly valuable in the current market environment. The zero return of capital component indicates that distributions are fully supported by earnings rather than requiring capital returns, demonstrating healthy operational performance.

For comparison, this dividend yield positions EQIX competitively among blue-chip REITs while maintaining investment capacity for digital infrastructure expansion. The tax treatment aligns with typical REIT structures, offering transparency for investor planning while the Section 199A benefits enhance after-tax returns for qualifying shareholders.

REDWOOD CITY, Calif., Jan. 13, 2025 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company^®, today announced the tax treatment for all 2024 distributions on its common stock.

				Form 1099	Form 1099	Form 1099	Form 1099
	Record Date	Payment Date	Total Distribution (per share)	Box 1a Ordinary Taxable Dividend (per share)	Box 1b Qualified Taxable Dividend  (per share)	Box 3 Return of Capital (per share)	Box 5  Section 199A Dividend  (per share)
Q1	02/28/2024	03/20/2024	$4.260000	$4.260000	$0.000000	$0.000000	$4.260000
Q2	05/22/2024	06/19/2024	$4.260000	$4.260000	$0.000000	$0.000000	$4.260000
Q3	08/21/2024	09/18/2024	$4.260000	$4.260000	$0.000000	$0.000000	$4.260000
Q4	11/13/2024	12/11/2024	$4.260000	$4.260000	$0.000000	$0.000000	$4.260000
Total			$17.04000	$17.04000	$0.000000	$0.000000	$17.04000

This information has been prepared using the best available information to date. Equinix's federal income tax return for the year ended December 31, 2024, has not yet been filed. Please note that federal tax laws affect taxpayers differently, and we cannot advise you on how distributions should be reported on your federal income tax return. Please also note that state and local taxation of REIT distributions vary and may not be the same as the federal rules. Stockholders are encouraged to consult with their tax advisors as to the specific tax treatment of these distributions.

Please consult your tax advisor regarding Box 5 and how you should report the amount in your tax filing.

About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company^®. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

View original content to download multimedia:https://www.prnewswire.com/news-releases/equinix-announces-tax-treatment-of-2024-distributions-302348771.html

SOURCE Equinix, Inc.

FAQ

What was Equinix's (EQIX) total dividend distribution per share in 2024?

Equinix's total dividend distribution for 2024 was $17.04 per share, paid in four quarterly installments of $4.26 each.

When were EQIX's quarterly dividends paid in 2024?

EQIX paid dividends on March 20, June 19, September 18, and December 11, 2024.

What was the tax treatment of Equinix's (EQIX) 2024 distributions?

All of EQIX's 2024 distributions were classified as ordinary taxable dividends and Section 199A dividends, with no qualified taxable dividends or return of capital.

How much of EQIX's 2024 distributions qualified as Section 199A dividends?

100% of EQIX's 2024 distributions ($17.04 per share) qualified as Section 199A dividends.