Franklin Street Properties Corp. Announces Tax Composition of 2024 Distributions

Rhea-AI Summary

Franklin Street Properties (FSP) has disclosed the tax composition of its distributions for 2024. The company will make four quarterly distributions of $0.01 per share, totaling $0.04 per share for the year. The distributions are scheduled for February 15, May 9, August 8, and November 7, 2024.

According to the tax composition breakdown, the entire amount of these distributions ($0.04) will be classified as Return of Capital. There are no components categorized as ordinary dividends, qualified dividends, capital gain distributions, unrecaptured Section 1250 gains, or Section 199A distributions.

Positive

• None.

Negative

• Low dividend distribution of only $0.04 per share annually
• Distributions classified entirely as Return of Capital, indicating no profit distribution

Insights

Financial Analyst

The announcement of FSP's 2024 tax composition reveals a consistent quarterly dividend structure of $0.01 per share, totaling $0.04 annually. Notably, the entire distribution is classified as "Return of Capital" rather than ordinary dividends or capital gains. This classification has significant tax implications for shareholders.

A Return of Capital distribution reduces the investor's cost basis in the stock rather than being immediately taxable. This tax treatment essentially defers taxation until the shares are sold, at which point the reduced cost basis will result in a larger capital gain (or smaller capital loss). For a REIT with a market cap of $192.1 million, this modest distribution structure and its tax treatment suggests FSP is prioritizing capital preservation over immediate shareholder returns.

Put simply: Think of this like getting $0.01 back from your original investment each quarter instead of earning new money. You won't pay taxes on it now, but you'll need to track these payments as they lower your initial purchase price, which affects how much tax you'll pay when you eventually sell the shares.

WAKEFIELD, Mass.--(BUSINESS WIRE)-- Franklin Street Properties Corp. (“FSP”) (NYSE American: FSP) announced today the tax composition of its 2024 distributions. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of FSP distributions.

Ticker Symbol: FSP
Common Stock (CUSIP # 35471R106)																								2024
								2024				2024				2024 Total								Unrecap.
				Total				Taxable				Taxable				Capital				2024				Section
Record		Payable		Distribution				Ordinary				Qualified				Gain				Return of				1250				Section 199A
Date		Date		per Share				Dividend				Dividend				Distribution				Capital				Gain				Distribution
1/26/24		2/15/24		$		0.01		$		-		$		-		$		-		$		0.010000		$		-		$		-
4/19/24		5/9/24		$		0.01		$		-		$		-		$		-		$		0.010000		$		-		$		-
7/19/24		8/8/24		$		0.01		$		-		$		-		$		-		$		0.010000		$		-		$		-
10/18/24		11/7/24		$		0.01		$		-		$		-		$		-		$		0.010000		$		-		$		-
Totals				$		0.04		$		-		$		-		$		-		$		0.040000		$		-		$		-

This press release, along with other news about FSP, is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116565556/en/

For Franklin Street Properties Corp.

Georgia Touma, 877-686-9496

Source: Franklin Street Properties Corp.

FAQ

What is FSP's dividend payment schedule for 2024?

FSP will pay quarterly dividends of $0.01 per share on February 15, May 9, August 8, and November 7, 2024, totaling $0.04 per share for the year.

How are FSP's 2024 distributions classified for tax purposes?

FSP's 2024 distributions are classified entirely as Return of Capital, with no portions categorized as ordinary dividends, qualified dividends, or capital gains.

What is the total annual distribution amount for FSP shareholders in 2024?

The total annual distribution amount for FSP shareholders in 2024 is $0.04 per share, paid in four quarterly installments of $0.01 each.

Will FSP's 2024 distributions qualify for qualified dividend tax treatment?

No, FSP's 2024 distributions will not qualify for qualified dividend tax treatment as they are entirely classified as Return of Capital.