Federal Realty Investment Trust Releases Tax Status of 2023 Distributions
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Insights
The disclosure of tax treatment for distributions by Federal Realty Investment Trust (FRT) is critical for shareholders to understand the tax implications of their investments. The differentiation between ordinary dividends, qualified income dividends, capital gains and non-taxable distributions has significant tax consequences. Ordinary dividends are taxed at the individual's income tax rate, whereas qualified dividends benefit from a lower tax rate. Capital gains distributions, which are related to Section 1231 gains, may affect the tax rate on long-term capital gains. The absence of foreign taxes and the zero percent allocation for 'One Year Amounts Disclosure' and 'Three Year Amounts Disclosure' indicate that all reported gains are domestic and not subject to the carried interest rules under Treasury Regulation Section 1.1061-6(c). Shareholders should note that non-taxable distributions can reduce their cost basis in FRT shares, potentially increasing the capital gains tax owed upon sale of the shares.
From a financial perspective, the distribution details provided by FRT offer insights into the company's performance and capital allocation strategy. The consistent distribution amounts throughout the year suggest a stable cash flow, which is a positive indicator for investors looking for predictable income. The increase in the distribution per share in the final quarter could be interpreted as a sign of financial health and potential growth. However, investors must consider the tax implications of these distributions on their overall returns. The provided tax breakdown allows shareholders to assess the after-tax yield of their investment in FRT, which is an essential factor in evaluating the attractiveness of the stock in comparison to other investment opportunities. The information about the tax treatment of distributions is also indicative of the REIT's compliance with regulatory requirements, ensuring that it meets the standards for favorable tax treatment under IRC Section 897.
Understanding the tax treatment of distributions is particularly important for investors in Real Estate Investment Trusts (REITs) like Federal Realty Investment Trust. REITs are required to distribute at least 90% of their taxable income to shareholders and these distributions are generally taxed as ordinary income. The breakdown of Federal Realty's distributions into various tax categories reflects the company's asset management and disposition strategies. The Section 199A dividends, which relate to the pass-through deduction available under the Tax Cuts and Jobs Act, offer an additional tax benefit to certain investors. This detailed tax information demonstrates FRT's commitment to transparency and provides investors with the necessary data to optimize their tax planning strategies in relation to their REIT holdings. The disclosure also suggests that FRT's assets are primarily domestic, as indicated by the lack of foreign tax incurred, which may appeal to investors looking to avoid the complexities of international taxation.
Common Shares (CUSIP # 313745101)
Record Date | Payable Date | Distribution | Taxable | Qualified | Capital | Unrecap. Sec | Nontaxable | Section 199A | Sec 897 |
01/03/2023 | 01/17/2023 | ||||||||
03/13/2023 | 04/17/2023 | ||||||||
06/22/2023 | 07/17/2023 | ||||||||
09/22/2023 | 10/16/2023 | ||||||||
2023 TOTALS |
(1) | These amounts are a subset of, and included in, the 2023 Taxable Ordinary Dividend amounts. |
(2) | These amounts are a subset of, and included in, the 2023 Capital Gain amounts. |
(3) | The amount of the quarterly dividends treated as a Disposition of Investment in |
(4) | Pursuant to Treasury Regulation Section 1.1061-6(c), Federal Realty Investment Trust is disclosing the following information to its shareholders. "One Year Amounts Disclosure" is zero percent of the capital gain distributions allocated to each shareholder and "Three Year Amounts Disclosure" is zero percent of the capital gain distributions allocated to each shareholder. All capital gain distributions reported are related to Section 1231 gain. |
Record Date | Payable Date | Distribution | Taxable | Qualified | Capital | Unrecap. Sec | Nontaxable | Section 199A | Sec 897 |
01/03/2023 | 01/17/2023 | ||||||||
04/03/2023 | 04/17/2023 | ||||||||
07/03/2023 | 07/17/2023 | ||||||||
10/02/2023 | 10/16/2023 | ||||||||
2023 TOTALS |
(1) | Amount represents dividends per depositary share, each representing 1/1000th of a share. |
(2) | These amounts are a subset of, and included in, the 2023 Taxable Ordinary Dividend amounts. |
(3) | These amounts are a subset of, and included in, the 2023 Capital Gain amounts. |
(4) | The amount of the quarterly dividends treated as a Disposition of Investment in |
(5) | Pursuant to Treasury Regulation Section 1.1061-6(c), Federal Realty Investment Trust is disclosing the following information to its shareholders. "One Year Amounts Disclosure" is zero percent of the capital gain distributions allocated to each shareholder and "Three Year Amounts Disclosure" is zero percent of the capital gain distributions allocated to each shareholder. All capital gain distributions reported are related to Section 1231 gain. |
The company did not incur any foreign taxes. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Federal Realty distributions. Should you need any additional information, contact Leah Brady, Investor Relations, at 301-998-8265.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from
Federal Realty has increased its quarterly dividends to its shareholders for 56 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Inquiries:
Leah Andress Brady
Vice President, Investor Relations
301.998.8265
lbrady@federalrealty.com
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SOURCE Federal Realty Investment Trust
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