InvenTrust Properties Corp. Announces Tax Reporting Information For 2023 Distributions

Rhea-AI Summary

InvenTrust Properties Corp. (IVT) has released the tax reporting information for the 2023 distributions on its common stock. The Form 1099-DIV reveals that the total distribution per share for the year was $1.067200, with $0.954700 allocated to total ordinary dividends and $0.749021 to return of capital. The company also provided specific details on the breakdown of distributions for each quarter, along with important notes for income tax purposes.

Insights

Tax Expert

From a taxation perspective, the disclosure made by InvenTrust Properties Corp. regarding the tax treatment of their 2023 distributions is crucial for shareholders to accurately file their tax returns. The breakdown of the total distribution per share into components such as ordinary dividends, capital gain distributions and return of capital is significant. Ordinary dividends are typically taxed at the individual's income tax rate, while the capital gain distribution, which represents profits from the sale of assets held longer than one year, is taxed at a lower rate.

It's also important to note that the distributions classified as return of capital are not immediately taxable. Instead, they reduce the shareholder's cost basis in the stock, which can affect capital gains when the stock is eventually sold. The mention of Section 199A dividends indicates that shareholders might be eligible for a deduction of up to 20% of these dividends, which can provide a substantial tax benefit under the Tax Cuts and Jobs Act.

The company's clarification regarding the allocation of the December dividend to the tax year 2023 and 2024 is particularly important for tax planning. This type of information is essential for shareholders to avoid underpayment penalties and to optimize their tax liability in accordance with the U.S. federal income tax laws and regulations.

Financial Analyst

For investors, the announcement by InvenTrust Properties Corp. provides insights into the company's financial health and its ability to generate income that can be distributed to shareholders. The steady flow of dividends throughout the year suggests a stable and potentially growing income stream, which can be an attractive point for income-focused investors. Moreover, the transparency and detailed breakdown of the distribution components allow investors to assess the sustainability of these dividends.

The capital gain distribution component is particularly noteworthy as it reflects the company's portfolio management and asset disposition strategy. A consistent capital gain distribution implies that the company is effectively realizing gains from its investments, which can be interpreted as a positive sign of active and successful portfolio management.

However, investors should also consider the return of capital portion of the distribution, as it may indicate that some of the distributions are not derived from the company's earnings but from the invested capital. While this is not inherently negative, it could suggest that the company might be returning capital to maintain its dividend payout, which could have implications for future growth and dividend sustainability.

Market Research Analyst

The information provided by InvenTrust Properties Corp. can be seen as an indicator of the company's position within the real estate market and its operational performance. Analyzing the dividend distribution in relation to the overall real estate market trends and the performance of similar companies can provide a comparative view of InvenTrust's market competitiveness. The consistency and size of the dividend payments could reflect the company's ability to generate rental income from its properties and manage its property portfolio effectively.

In the broader context, the real estate sector is often seen as a bellwether for economic conditions. Therefore, the capital gain distributions could be read as a signal of the company's ability to capitalize on favorable market conditions to sell assets at a profit. This level of detail in the distribution reporting can also serve as a benchmark for evaluating the performance of other real estate investment trusts (REITs) in the market.

DOWNERS GROVE, Ill.--(BUSINESS WIRE)-- InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today announced the tax reporting information for the 2023 distributions on its common stock. The tax reporting information as it will be reported on the Form 1099-DIV, on a per share basis, is as follows:

COMMON SHARES (NYSE: IVT); CUSIP # 46124J201

Record Date	Payable Date	Total Distribution Per Share	Distribution Allocated to 2023	Total Ordinary Dividends	Total Capital Gain Distribution (1)	Unrecapt Sec. 1250 Gain	Return of Capital	Sec. 199A Dividends	Sec. 897 Ordinary Dividends	Sec. 897 Capital Gain
12/29/2022	1/13/2023	$0.205200	$0.205200	$0.160992	$0.044208	-	-	$0.160992	$0.020159	$0.044208
3/31/2023	4/14/2023	$0.215500	$0.215500	$0.169073	$0.046427	-	-	$0.169073	$0.021171	$0.046427
6/30/2023	7/14/2023	$0.215500	$0.215500	$0.169073	$0.046427	-	-	$0.169073	$0.021171	$0.046427
9/30/2023	10/13/2023	$0.215500	$0.215500	$0.169073	$0.046427	-	-	$0.169073	$0.021171	$0.046427
12/28/2023	1/15/2024	$0.215500	$0.103000	$0.080810	$0.022190	-	-	$0.080810	$0.010119	$0.022190
Totals		$1.067200	$0.954700	$0.749021	$0.205679	-	-	$0.749021	$0.093791	$0.205679

(1)	Of the Total Capital Gain Distribution, 0% is excluded under Reg. 1.1061-4(b)(7). The remaining 100% is a Three Year Amount under Reg. 1.1061-6(c).

Please note, of the $0.215500 per share dividend for holders of record on December 28, 2023, and paid on January 15, 2024, $0.103000 is reported for income tax purposes in 2023 and the remaining $0.112500 will be reported for the tax year 2024.

The information in this document represents the Company’s understanding of the U.S. federal income tax laws and regulations and does not constitute tax advice. It does not purport to be complete or to describe the consequences that may apply to particular categories of stockholders. Each stockholder is urged to consult their advisor as to the specific tax consequences of distributions to such stockholder, including the effect of any state, local, or non-U.S. tax laws, and of changes in applicable tax laws.

About InvenTrust Properties Corp.

InvenTrust Properties Corp. (“we,” the “Company,” “our,” “us,” "IVT" or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels

Investors and others should note that InvenTrust routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission filings, press releases, public conference calls, webcasts and the InvenTrust investor relations website. The Company uses these channels as well as social media channels (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties) as a means of disclosing information about the Company's business to our colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company’s social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company’s social media channels.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240119072398/en/

Dan Lombardo

Vice President of Investor Relations

630-570-0605

dan.lombardo@inventrustproperties.com

Source: InvenTrust Properties Corp.

FAQ

What is the total distribution per share for 2023 for InvenTrust Properties Corp. (IVT)?

The total distribution per share for 2023 for InvenTrust Properties Corp. (IVT) was $1.067200.

How much of the total distribution per share was allocated to total ordinary dividends for 2023 for InvenTrust Properties Corp. (IVT)?

The total distribution per share allocated to total ordinary dividends for 2023 for InvenTrust Properties Corp. (IVT) was $0.954700.

What was the total distribution per share allocated to return of capital for 2023 for InvenTrust Properties Corp. (IVT)?

The total distribution per share allocated to return of capital for 2023 for InvenTrust Properties Corp. (IVT) was $0.749021.

What is the ticker symbol for InvenTrust Properties Corp.?

The ticker symbol for InvenTrust Properties Corp. is IVT.