Farmland Partners Announces Tax Treatment of 2023 Distributions

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) announced the tax treatment of its 2023 common stock distributions. The company detailed the dividend treatment, declaration dates, payment dates, and record dates for each distribution. Stockholders received dividends per share, including qualified dividends, capital gains, return of capital, and Section 199A dividends. A special dividend of $0.21 per share was declared in December 2023, with $0.17 per share considered a distribution made in 2023 for federal income tax purposes.

DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced the tax treatment of our 2023 common stock distributions, as summarized in the following table.

Farmland Partners Inc.
CUSIP: 31154R109
EIN: 46-3769850

Farmland Partners Inc. 2023 Dividend Treatment
Common Stock
												Dividends						Capital Gains
Declaration Date		Payment Date		Record Date		Distribution Per Share			Distribution Per Share Allocable to 2023			Taxable Ordinary (Box 1a)			Qualified (Box 1b) (1)			Total (Box 2a)			Unrecaputured Section 1250 (Box 2b)			Return of Capital (Box 3) (2)			Section 199A (Box 5) (1)
10/24/2022		1/17/2023		1/2/2023		$	0.060000		$	0.060000		$	-		$	-		$	0.060000		$	-		$	-		$	-
2/21/2023		4/17/2023		4/1/2023		$	0.060000		$	0.060000		$	-		$	-		$	0.060000		$	-		$	-		$	-
5/3/2023		7/17/2023		7/1/2023		$	0.060000		$	0.060000		$	-		$	-		$	0.060000		$	-		$	-		$	-
7/25/2023		10/16/2023		10/1/2023		$	0.060000		$	0.060000		$	-		$	-		$	0.060000		$	-		$	-		$	-
12/12/2023		1/12/2024		12/29/2023		$	0.210000		$	0.170342		$	-		$	-		$	0.170342		$	-		$	-		$	-
						$	0.450000		$	0.410342		$	-		$	-		$	0.410342		$	-		$	-		$	-
Footnotes:
(1) Qualified dividends and Section 199A dividends are a subset of, and included in, the taxable ordinary dividend amount.
(2) Return of capital represents a return of stockholder investment.

The special dividend of $0.21 per share declared in December for shareholders of record as of December 29, 2023, and paid on or around January 12, 2024, is a split-year distribution with $0.17 per share considered a distribution made in 2023 for federal income tax purposes¹.

Pursuant to Treas. Reg. § 1.1061-4(b)(7)(i), the capital gains shown in box 2(a) are determined under Section 1231 and are excluded from “applicable partnership interest” disclosures.

In 2023, there was no “Box 3 Nondividend Distribution” on form 1099-DIV, and therefore no requirement to file Form 8937.

The Nareit REIT 1099-DIV Spreadsheet is available for download under the heading “2023 Dividend Information” at this link: https://ir.farmlandpartners.com/resources/IRS-Forms/default.aspx.

Stockholders are encouraged to consult with their tax advisors as to the specific tax treatment of the distributions they received from us.

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.

_____________________________
¹ The REIT declared a dividend in December 2023, payable to shareholders of record as of December 29, 2023. In accordance with IRC §857(b)(9) the dividend deemed paid in 2023 is limited to the remaining 2023 earnings & profits and the balance is considered distributed in 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240213517925/en/

James Gilligan

ir@farmlandpartners.com

Source: Farmland Partners Inc.

FAQ

What is the ticker symbol for Farmland Partners Inc.?

The ticker symbol for Farmland Partners Inc. is FPI.

What was the special dividend per share declared in December 2023?

The special dividend declared in December 2023 was $0.21 per share, with $0.17 per share considered a distribution made in 2023 for federal income tax purposes.

When was the special dividend paid to shareholders?

The special dividend was paid on or around January 12, 2024, to shareholders of record as of December 29, 2023.

What types of dividends were included in the distributions?

The distributions included taxable ordinary dividends, qualified dividends, capital gains, return of capital, and Section 199A dividends.

Where can stockholders find the Nareit REIT 1099-DIV Spreadsheet for 2023 dividend information?

Stockholders can download the Nareit REIT 1099-DIV Spreadsheet under the heading '2023 Dividend Information' at the following link: https://ir.farmlandpartners.com/resources/IRS-Forms/default.aspx.