Hudson Pacific Properties Announces 2023 Dividend Tax Treatment

Rhea-AI Summary

Hudson Pacific Properties, Inc. (NYSE: HPP) announced the tax treatment for its 2023 common stock and preferred stock dividends. The company's dividends related to its common stock and Series C preferred stock will be classified for United States federal income tax purposes. The common stock dividends will be $0.2500 on 3/30/2023 and $0.1250 on 6/30/2023, totaling $0.3750. The Series C preferred stock dividends will be $0.296875 on 3/30/2023, 6/30/2023, 9/29/2023, and 12/28/2023, totaling $1.187500. The Tax Cuts and Jobs Act enacted Section 199A that generally allows a deduction for non-corporate taxpayers equal to 20% of ordinary dividends distributed by a REIT. The aggregate 'One Year Amounts Disclosure' and 'Three Year Amounts Disclosure' are $0.066638 and $0.211019 per share, respectively. Unrecaptured Section 1250 gains are a subset of the total capital gain amount. These amounts reflect a distribution's composition of gains from the disposition of 'United States real property interests' under Section 897.

LOS ANGELES--(BUSINESS WIRE)-- Hudson Pacific Properties, Inc. (NYSE: HPP), a unique provider of end-to-end real estate solutions for tech and media tenants, today announced the tax treatment for its 2023 common stock and preferred stock dividends.

The company's dividends related to its common stock (CUSIP #444097109) will be classified for United States federal income tax purposes as follows:

			Dividends			Capital Gains			Section 897
Record Date	Payment Date	Distribution Per Share	Ordinary1 (Box 1a)	Qualified (Box 1b)		Total3 (Box 2a)	Unrecaptured Section 1250 (Box 2b) 4		Ordinary Dividends5 (Box 2e)	Capital Gains5 (Box 2f)	Return of Capital (Box 3)
3/20/2023	3/30/2023	$0.2500	$0.00	$0.00		$0.2500	$0.115922		$0.00	$0.2500	$0.00
6/20/2023	6/30/2023	$0.1250	$0.00	$0.00		$0.1250	$0.057961		$0.00	$0.1250	$0.00
	Totals	$0.3750	$0.00	$0.00		$0.3750	$0.173883		$0.00	$0.3750	$0.00
		100.00%	0.00%	0.00%		100.00%	46.37%		0.00%	100.00%	0.00%

The company's dividends related to its Series C preferred stock (CUSIP #444097307) will be classified for United States federal income tax purposes as follows:

			Dividends			Capital Gains			Section 897
Record Date	Payment Date	Distribution Per Share	Ordinary1 (Box 1a)	Qualified (Box 1b)		Total3 (Box 2a)	Unrecaptured Section 1250 (Box 2b) 4		Ordinary Dividends5 (Box 2e)	Capital Gains5 (Box 2f)	Return of Capital (Box 3)
3/20/2023	3/30/2023	$0.296875	$0.00	$0.00		$0.296875	$0.137658		$0.00	$0.296875	$0.00
6/20/2023	6/30/2023	$0.296875	$0.00	$0.00		$0.296875	$0.137658		$0.00	$0.296875	$0.00
9/19/2023	9/29/2023	$0.296875	$0.00	$0.00		$0.296875	$0.137658		$0.00	$0.296875	$0.00
12/18/2023	12/28/2023	$0.296875	$0.00	$0.00		$0.296875	$0.137658		$0.00	$0.296875	$0.00
	Totals	$1.187500	$0.00	$0.00		$1.187500	$0.550632		$0.00	$1.187500	$0.00
		100.00%	0.00%	0.00%		100.00%	46.37%		0.00%	100.00%	0.00%

¹On December 22, 2017, the Tax Cuts and Jobs Act enacted Section 199A that generally allows a deduction for non-corporate taxpayers equal to 20% of ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income). Ordinary Dividends eligible for the Section 199A benefit are a subset of, and included in, the Taxable Ordinary Dividend Amount.

² For purposes of Section 1061 and Treasury Regulation §1.1061-6(c), the aggregate "One Year Amounts Disclosure" and "Three Year Amounts Disclosure" are $0.066638 (17.77% of Box 2a) per share and $0.066638 (17.77% of Box 2a) per share, respectively. Such additional information generally pertains to shares held through "applicable partnership interests" subject to Section 1061.

³ For purposes of Section 1061 and Treasury Regulation §1.1061-6(c), the aggregate "One Year Amounts Disclosure" and "Three Year Amounts Disclosure" are $0.211019 (17.77% of Box 2a) per share and $0.211019 (17.77% of Box 2a) per share, respectively. Such additional information generally pertains to shares held through "applicable partnership interests" subject to Section 1061.

⁴Unrecaptured Section 1250 gains are a subset of, and included in, the total capital gain amount.

⁵These amounts reflect a distribution's composition of gains from the disposition of "United States real property interests" under Section 897. Generally, such information is relevant only to non-U.S. shareholders that own more than 10% of the company's stock, as determined for purposes of Section 897, and certain entities through which non-U.S. shareholders own the company's stock.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125828083/en/

Investor Contact:

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact:

Laura Murray

Vice President, Communications

(310) 622-1781

lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.

FAQ

What is the ticker symbol for Hudson Pacific Properties, Inc.?

The ticker symbol for Hudson Pacific Properties, Inc. is HPP.

What are the dividends related to Hudson Pacific Properties' common stock for 2023?

The common stock dividends will be $0.2500 on 3/30/2023 and $0.1250 on 6/30/2023, totaling $0.3750.

What are the dividends related to Hudson Pacific Properties' Series C preferred stock for 2023?

The Series C preferred stock dividends will be $0.296875 on 3/30/2023, 6/30/2023, 9/29/2023, and 12/28/2023, totaling $1.187500.

What is Section 199A of the Tax Cuts and Jobs Act?

Section 199A generally allows a deduction for non-corporate taxpayers equal to 20% of ordinary dividends distributed by a REIT.

What are the 'One Year Amounts Disclosure' and 'Three Year Amounts Disclosure' for Hudson Pacific Properties?

The aggregate 'One Year Amounts Disclosure' and 'Three Year Amounts Disclosure' are $0.066638 and $0.211019 per share, respectively.

What are unrecaptured Section 1250 gains?

Unrecaptured Section 1250 gains are a subset of the total capital gain amount.

What do the amounts reflecting a distribution's composition of gains from the disposition of 'United States real property interests' under Section 897 pertain to?

These amounts reflect a distribution's composition of gains from the disposition of 'United States real property interests' under Section 897, relevant to non-U.S. shareholders that own more than 10% of the company's stock and certain entities through which non-U.S. shareholders own the company's stock.