Granite Point Mortgage Trust Inc. Announces 2022 Dividend Tax Information

Rhea-AI Summary

Granite Point Mortgage Trust Inc. (NYSE: GPMT) announced the tax treatment for its common and preferred stock dividends declared in 2022. The total cash distribution was $0.950 for common stock and $1.750 for preferred stock, with no part of the dividends classified as excess inclusion income. Notably, the cash dividend of $0.200 is payable on January 17, 2023, but will be reported on the 2023 Form 1099 due to its classification under specific IRS rules. Investors are urged to consult their tax advisors for personalized tax implications.

Positive

• Total cash distribution of $0.950 per common share in 2022.
• Total cash distribution of $1.750 per preferred share in 2022.
• No excess inclusion income reported, simplifying tax obligations for shareholders.

Negative

• The cash dividend of $0.200, payable in 2023, may complicate tax reporting for stockholders.

NEW YORK--(BUSINESS WIRE)-- Granite Point Mortgage Trust Inc. (NYSE: GPMT) (“GPMT,” “Granite Point” or the “Company”) today announced the tax treatment of common and preferred stock dividends declared in 2022. This information is provided to assist stockholders with tax reporting requirements related to dividend distribution of taxable income by Granite Point. Stockholders should review the 2022 tax statements received from their brokerage firms or other institutions to ensure that the statements agree with the information provided below. Additionally, as each stockholder’s tax situation may be different, stockholders are encouraged to consult with their own professional tax advisor with respect to their individual tax consequences.

Tax Treatment of the Distributions

The Federal income tax classification of Granite Point’s 2022 common and preferred stock distributions as it is expected to be reported on Form 1099-DIV is set forth in the following tables.

Granite Point is required to report the portion of its 2022 dividends that are treated as excess inclusion income for federal income tax purposes, which may be treated as unrelated business taxable income (UBTI) and subject to special tax reporting for certain tax-exempt investors. No portion of Granite Point’s 2022 dividend distributions consists of excess inclusion income.

2022 FORM 1099 – Common Stock						Box 1a Total	Box 1b Total	Box 2a Total	Box 3 Total	Box 5 Total
Distribution Type	Declaration Date	Record Date	Payable Date	2022 Total Distribution Per Share	Adjustments(1)	2022 Ordinary Dividends	2022 Qualified Dividends(2)	2022 Capital Gain Distributions	2022 Nondividend Distributions	Section 199A Dividends(3)
Cash	3/17/2022	4/1/2022	4/15/2022	$0.250000	$0.000000	$0.089449	$0.009849	$0.000000	$0.160551	$0.079600
Cash	6/16/2022	7/1/2022	7/15/2022	$0.250000	$0.000000	$0.000000	$0.000000	$0.000000	$0.250000	$0.000000
Cash	9/20/2022	10/3/2022	10/17/2022	$0.250000	$0.000000	$0.000000	$0.000000	$0.000000	$0.250000	$0.000000
Cash	12/20/2022	12/30/2022	1/17/2023	$0.200000	$(0.200000)	$0.000000	$0.000000	$0.000000	$0.000000	$0.000000
Totals				$0.950000	$(0.200000)	$0.089449	$0.009849	$0.000000	$0.660551	$0.079600

1)		Pursuant to Section 857(b)(9) of the Internal Revenue Code of 1986 (the "IRC"), cash distributions made on January 17, 2023, with a record date of December 30, 2022, are treated as received by stockholders on December 31, 2022, to the extent of 2022 earnings and profits. As Granite Point's aggregate 2022 cash distributions exceeded its 2022 earnings and profits, the January 2023 cash distribution declared in the fourth quarter of 2022 was treated as a 2023 distribution for federal income tax purposes and not included on the 2022 Form 1099. If you were a stockholder of record as of December 30, 2022, the $0.2000 dividend payable on January 17, 2023, will be reported on your 2023 Form 1099.
2)		Qualified Dividends shows the portion of the amount in Box 1a that may be eligible for capital gains tax rates.
3)		Section 199A Dividends shows the portion of the amount in Box 1a that may be eligible for the 20% qualified business income deduction under Section 199.

2022 FORM 1099 – Preferred Series A						Box 1a Total	Box 1b Total	Box 2a Total	Box 3 Total	Box 5 Total
Distribution Type	Declaration Date	Record Date	Payable Date	2022 Total Distribution Per Share	Adjustments(1)	2022 Ordinary Dividends	2022 Qualified Dividends(2)	2022 Capital Gain Distributions	2022 Nondividend Distributions	Section 199A Dividends(3)
Cash	3/17/2022	4/1/2022	4/15/2022	$0.437500	$0.000000	$0.437500	$0.048173	$0.000000	$0.000000	$0.389327
Cash	6/16/2022	7/1/2022	7/15/2022	$0.437500	$0.000000	$0.437500	$0.048173	$0.000000	$0.000000	$0.389327
Cash	9/20/2022	10/3/2022	10/17/2022	$0.437500	$0.000000	$0.437500	$0.048173	$0.000000	$0.000000	$0.389327
Cash	12/20/2022	12/30/2022	1/17/2023	$0.437500	$(0.437500)	$0.000000	$0.000000	$0.000000	$0.000000	$0.000000
Totals				$1.750000	$(0.437500)	$1.312500	$0.144519	$0.000000	$0.000000	$1.167981

1)		Pursuant to Section 857(b)(9) of the IRC, cash distributions made on January 17, 2023, with a record date of December 30, 2022, are treated as received by stockholders on December 31, 2022, to the extent of 2022 earnings and profits. As Granite Point's aggregate 2022 cash distributions exceeded its 2022 earnings and profits, the January 2023 cash distribution declared in the fourth quarter of 2022 was treated as a 2023 distribution for federal income tax purposes and not included on the 2022 Form 1099. If you were a stockholder of record as of December 30, 2022, the $0.4375 dividend payable on January 17, 2023, will be reported on your 2023 Form 1099.
2)		Qualified Dividends shows the portion of the amount in Box 1a that may be eligible for capital gains tax rates.
3)		Section 199A Dividends shows the portion of the amount in Box 1a that may be eligible for the 20% qualified business income deduction under Section 199.

Pursuant to the Internal Revenue Code of 1986, as amended, dividends declared by a real estate investment trust (REIT) during the last three months of a calendar year that are payable to stockholders of record on a specified date in such three-month period, but which are actually paid during January of the following calendar year, are considered paid on December 31st of the calendar year in which the dividends were declared, to the extent of the REIT’s distributable earnings and profits.

Consult Your Tax Advisor

Stockholders may have additional reporting obligations to the Internal Revenue Service and/or other tax authorities.

The U.S. federal income tax treatment of holding Granite Point common and preferred stock to any particular stockholder will depend on the stockholder’s particular tax circumstances. You are urged to consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you, in light of your particular investment or tax circumstances, of acquiring, holding and disposing of Granite Point common and preferred stock.

Granite Point does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein.

About Granite Point Mortgage Trust Inc.

Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at www.gpmtreit.com.

Additional Information

Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant Park, 24th floor, New York, NY 10036, telephone (212) 364-5500.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005992/en/

Investors: Marcin Urbaszek, Chief Financial Officer, Granite Point Mortgage Trust Inc., (212) 364-5500, investors@gpmtreit.com

Source: Granite Point Mortgage Trust Inc.

FAQ

What is the dividend amount for Granite Point Mortgage Trust in 2022?

The total cash dividend for common stock is $0.950 per share and $1.750 per share for preferred stock in 2022.

When will the dividends for 2022 be payable for GPMT?

The dividends for 2022 will be payable on January 17, 2023.

Is there any excess inclusion income reported for GPMT dividends?

No, Granite Point reported that no portion of its 2022 dividends consists of excess inclusion income.

How should investors handle tax reporting for GPMT dividends?

Investors are advised to consult with their tax advisors regarding the tax implications of GPMT dividends.