FCPT Announces Tax Treatment of 2024 Distributions

Rhea-AI Summary

Four Corners Property Trust (FCPT) has announced the tax characterization of its 2024 common stock distributions. The company distributed a total of $1.38 per share throughout 2024, paid in four quarterly installments of $0.345 each. Of the total distribution, $1.2696 per share was classified as Ordinary Taxable Dividend and $0.1104 per share as Return of Capital.

Each quarterly payment included $0.3174 in Ordinary Taxable Dividends and $0.0276 in Return of Capital. All Ordinary Taxable Dividends qualify as Section 199A Dividends. The company noted that the $0.3550 per share dividend paid on January 15, 2025, will be applicable to the 2025 tax year.

Positive

• Consistent quarterly dividend payments throughout 2024
• 92% of distributions classified as tax-advantaged Section 199A dividends
• 8% of distributions classified as Return of Capital, which is typically tax-advantaged

Negative

• None.

Insights

Financial Analyst

The tax treatment of FCPT's 2024 distributions provides valuable insights into the REIT's financial structure and shareholder returns. The total distribution of $1.38 per share was split between $1.2696 as ordinary taxable dividends and $0.1104 as return of capital.

The return of capital component (8% of distributions) is particularly noteworthy as it effectively reduces shareholders' cost basis in their FCPT shares, deferring taxes until the shares are sold. This tax-efficient structure can be advantageous for long-term investors.

For simplified understanding: Imagine receiving $100 in distributions - about $92 would be taxed as regular income this year, while $8 would reduce your initial investment cost, potentially resulting in larger capital gains taxes only when you sell your shares.

All ordinary dividends qualify as Section 199A dividends, allowing eligible taxpayers to potentially claim up to a 20% deduction on this portion of their REIT income. This treatment aligns with typical REIT structures, which must distribute at least 90% of their taxable income to maintain their REIT status.

The consistency in quarterly distribution amounts ($0.3450 per share) and the structured tax treatment suggests strong underlying cash flow management and a well-planned distribution strategy. The slight increase to $0.3550 for the January 2025 payment further indicates sustainable dividend growth potential.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust, Inc. (NYSE: FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), announced today the tax characterization of its 2024 common stock distributions as shown below.

Record Date	Payment Date	Total Distribution ($ per share)	Form 1099 Box 1a Ordinary Taxable Dividend ($ per share)	Form 1099 Box 1b Qualified Taxable Dividend (1) ($ per share)	Form 1099 Box 3 Return of Capital ($ per share)	Form 1099 Box 5 Section 199A Dividends ($ per share)
12/29/2023	1/12/2024	$0.3450	$0.3174	-	$0.0276	$0.3174
3/28/2024	4/15/2024	$0.3450	$0.3174	-	$0.0276	$0.3174
6/28/2024	7/15/2024	$0.3450	$0.3174	-	$0.0276	$0.3174
9/30/2024	10/15/2024	$0.3450	$0.3174	-	$0.0276	$0.3174
Totals		$1.3800	$1.2696	-	$0.1104	$1.2696

(1) Qualified Taxable Dividends are a subset of, and included in, Ordinary Taxable Dividends.

The common stock dividend of $0.3550 per share that was paid on January 15, 2025 to shareholders of record on December 31, 2024 will be applicable to the 2025 tax year.

If you held common stock of FCPT in your name at any time during 2024, an IRS Form 1099-DIV will be provided to you by Broadridge Corporate Issuer Solutions, FCPT’s transfer agent during 2024. If you held shares in "street name" during 2024, the IRS form provided by your bank, brokerage firm or nominee may report only the gross distributions paid to you. Therefore, you may need the information included in this press release to properly complete your federal tax return.

There are many important considerations associated with the taxability of the company’s distributions in 2024. This information has been prepared using the best available information to date. FCPT’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. Also note that state and local taxation of REIT distributions vary and may not be the same as the taxation under the federal rules. Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment related to FCPT common stock dividends.

About FCPT:

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. Additional information about FCPT can be found on the website at www.fcpt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121540418/en/

Four Corners Property Trust:

Patrick Wernig, 415-965-8038

CFO

Source: Four Corners Property Trust

FAQ

What is the total dividend distribution per share for FCPT in 2024?

FCPT's total dividend distribution for 2024 was $1.38 per share, paid in four quarterly installments of $0.345 each.

How much of FCPT's 2024 distributions were classified as Ordinary Taxable Dividends?

$1.2696 per share of FCPT's 2024 distributions were classified as Ordinary Taxable Dividends.

What portion of FCPT's 2024 distributions qualified as Return of Capital?

$0.1104 per share of FCPT's 2024 distributions were classified as Return of Capital.

What is the tax treatment of FCPT's January 15, 2025 dividend payment?

The $0.3550 per share dividend paid on January 15, 2025, will be applicable to the 2025 tax year, not 2024.

How much of FCPT's 2024 distributions qualified as Section 199A Dividends?

$1.2696 per share of FCPT's 2024 distributions qualified as Section 199A Dividends.