Innovative Industrial Properties Announces Tax Treatment of 2020 Distributions

Rhea-AI Summary

Innovative Industrial Properties, Inc. (IIPR) has announced the tax treatment of its 2020 distributions for both common stock and Series A preferred stock. For the common stock, a total distribution of $5.47 per share was allocated with $3.94 classified as taxable ordinary dividends. The preferred stock provided a total distribution of $2.25 per share, fully classified as taxable ordinary dividends. Notably, the December 31, 2020 common stock distribution includes a split-year allocation for tax purposes. Shareholders are advised to consult tax advisors for specific treatment.

Positive

• Total distribution of $5.47 per share for common stock, with $3.94 as taxable ordinary dividends.
• Preferred stock distribution totaled $2.25 per share, fully classified as taxable ordinary dividends.

Negative

• None.

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) today announced the tax treatment of its 2020 distributions as follows:

Security Description: Common Stock CUSIP: 45781V101 Ticker Symbol: IIPR
Record Date		Payable Date		Total Distribution Per Share		Allocable to 2020		Taxable Ordinary Dividend		Return of Capital		Long-Term Capital Gain		Unrecaptured Section 1250 Gain		Section 199A Dividend(1)
12/31/2019		01/15/2020		$1.000000		$0.490000		$0.490000		$0.000000		$0.000000		$0.000000		$0.490000
03/31/2020		04/15/2020		$1.000000		$1.000000		$1.000000		$0.000000		$0.000000		$0.000000		$1.000000
06/30/2020		07/15/2020		$1.060000		$1.060000		$1.060000		$0.000000		$0.000000		$0.000000		$1.060000
09/30/2020		10/15/2020		$1.170000		$1.170000		$1.170000		$0.000000		$0.000000		$0.000000		$1.170000
12/31/2020		01/15/2021		$1.240000		$0.220000		$0.220000		$0.000000		$0.000000		$0.000000		$0.220000
		Totals		$5.470000		$3.940000		$3.940000		$0.000000		$0.000000		$0.000000		$3.940000

Security Description: 9.00% Series A Cumulative Redeemable Preferred Stock CUSIP: 45781V200 Ticker Symbol: IIPR PR A
Record Date		Payable Date		Total Distribution Per Share		Allocable to 2020		Taxable Ordinary Dividend		Return of Capital		Long-Term Capital Gain		Unrecaptured Section 1250 Gain		Section 199A Dividend(1)
03/31/2020		04/15/2020		$0.562500		$0.562500		$0.562500		$0.000000		$0.000000		$0.000000		$0.562500
06/30/2020		07/15/2020		$0.562500		$0.562500		$0.562500		$0.000000		$0.000000		$0.000000		$0.562500
09/30/2020		10/15/2020		$0.562500		$0.562500		$0.562500		$0.000000		$0.000000		$0.000000		$0.562500
12/31/2020		01/15/2021		$0.562500		$0.562500		$0.562500		$0.000000		$0.000000		$0.000000		$0.562500
		Totals		$2.250000		$2.250000		$2.250000		$0.000000		$0.000000		$0.000000		$2.250000
(1) These amounts are a subset of, and included in, Taxable Ordinary Dividend amounts.

The common stock distribution with a record date of December 31, 2020 will be a split-year distribution, with $0.22 allocable to 2020 for federal income tax purposes and $1.02 allocable to 2021 for federal income tax purposes.

As previously disclosed by IIP on January 30, 2020 in its press release announcing the tax treatment of 2019 dividends, the common stock distribution with a record date of December 31, 2019 was a split-year distribution, with $0.51 allocable to 2019 for federal income tax purposes and $0.49 allocable to 2020 for federal income tax purposes, and the 9.00% Series A Cumulative Redeemable Preferred Stock distribution with a record date of December 31, 2019 was allocable entirely to 2019 for federal income tax purposes.

IIP did not incur any foreign taxes in 2020. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of IIP’s distributions.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005994/en/

FAQ

What is the tax treatment for IIPR's 2020 common stock distributions?

IIPR's 2020 common stock distributions totaled $5.47 per share, with $3.94 classified as taxable ordinary dividends.

How much was allocated to taxable ordinary dividends for IIPR's preferred stock in 2020?

The preferred stock distributions for IIPR in 2020 totaled $2.25 per share, fully allocated to taxable ordinary dividends.

What is the significance of the split-year distribution for IIPR's common stock?

The common stock distribution on December 31, 2020, includes a split-year allocation for tax purposes, with $0.22 allocable to 2020 and $1.02 to 2021.

Did IIPR incur any foreign taxes in 2020?

No, IIPR did not incur any foreign taxes in 2020.

What should shareholders do regarding the tax treatment of IIPR's distributions?

Shareholders are encouraged to consult with their personal tax advisors for specific tax treatment of IIPR's distributions.