Kimco Realty Corporation Announces 2023 Dividend Tax Treatment for RPT Realty Investors
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Insights
From a taxation perspective, the allocation of dividend distributions by Kimco Realty to its investors is a critical piece of information. Investors need to understand the tax implications of these dividends. The allocation between ordinary income and return of capital can significantly affect an investor's tax liability. Ordinary income is taxed at the individual's income tax rate, while return of capital is not immediately taxed and instead reduces the investor's cost basis in the stock.
For Kimco Realty's common shares, a substantial portion of the dividend distribution is classified as return of capital (approximately 46.078%), which suggests a tax-advantaged income stream for investors. This could be appealing to income-focused investors, particularly those in higher tax brackets or those seeking to minimize current taxable income.
Within the real estate sector, the performance of Kimco Realty, as indicated by its ability to distribute dividends, is reflective of the health of the open-air, grocery-anchored shopping center market. The distribution of dividends is often seen as a sign of financial stability and profitability. It is also indicative of the company's cash flow generation capabilities, which is critical for real estate investment trusts (REITs) that are required by law to distribute at least 90% of their taxable income to shareholders.
The consistent dividend payouts across the quarters, with a slight increase in the amount per share, could signal to the market that Kimco Realty is experiencing stable or increasing revenue streams from its properties. This can be an important factor for investors when assessing the company's long-term growth potential and sustainability of dividend payments.
Analyzing the dividend distributions for both common and preferred shares from a financial standpoint provides insights into Kimco Realty's capital allocation strategy and financial health. For common shares, the company has a mixed distribution of ordinary income and return of capital, while for preferred shares, the dividend is entirely classified as ordinary income. This distinction is important for investors as it affects their income streams and tax planning.
Additionally, the fact that the company is able to maintain and slightly increase its dividend payouts to common shareholders may be interpreted as a positive indicator of its financial stability and management's confidence in the company's cash flow. For preferred shareholders, the consistent payment rate reaffirms the fixed income-like characteristic of preferred stock, which could be attractive to risk-averse investors.
| Common Shares (CUSIP #’s 74971D 101, 751452103 and 751452202) | ||||||||||||
| Ex- | Ordinary Income | Capital Gains | ||||||||||
| Dividend | Record | Payable | Distribution | Non- | Unrecaptured | Return of | Sec 199A | |||||
| Date | Date | Date | per Share | Total | Qualified | Qualified | Total | Sec 1250 | Capital | Dividends | ||
| 12/19/2022 | 12/20/2022 | 01/03/2023 |
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| 03/17/2023 | 03/20/2023 | 04/01/2023 |
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| 06/16/2023 | 06/20/2023 | 07/03/2023 |
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| 09/19/2023 | 09/20/2023 | 10/02/2023 |
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| 12/06/2023 | 12/07/2023 | 12/21/2023 |
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| Preferred Shares (CUSIP #’s 74971D 200 and 751452608) | ||||||||||||
| Ex- | Ordinary Income | Capital Gains | ||||||||||
| Dividend | Record | Payable | Distribution | Non- | Unrecaptured | Sec 199A | ||||||
| Date | Date | Date | per Share | Total | Qualified | Qualified | Total | Sec 1250 | Dividends | |||
| 12/19/2022 | 12/20/2022 | 01/03/2023 |
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| 03/17/2023 | 03/20/2023 | 04/01/2023 |
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| 06/16/2023 | 06/20/2023 | 07/03/2023 |
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| 09/19/2023 | 09/20/2023 | 10/02/2023 |
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About Kimco Realty®
Kimco Realty® (NYSE:KIM) is a real estate investment trust (REIT) headquartered in
The company announces material information to its investors using the company’s investor relations website (investors.kimcorealty.com), SEC filings, press releases, public conference calls, and webcasts. The company also uses social media to communicate with its investors and the public, and the information the company posts on social media may be deemed material information. Therefore, the company encourages investors, the media, and others interested in the company to review the information that it posts on the social media channels, including Facebook (www.facebook.com/kimcorealty), Twitter (www.twitter.com/kimcorealty) and LinkedIn (www.linkedin.com/company/kimco-realty-corporation). The list of social media channels that the company uses may be updated on its investor relations website from time to time.
Safe Harbor Statement
This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “plan”, “forecast” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company’s control and could materially affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the impact of competition, including the availability of acquisition or development opportunities and the costs associated with purchasing and maintaining assets, (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iv) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (v) the potential impact of e-commerce and other changes in consumer buying practices, and changing trends in the retail industry and perceptions by retailers or shoppers, including safety and convenience, (vi) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and the costs associated with purchasing and maintaining assets and risks related to acquisitions not performing in accordance with our expectations, (vii) the Company’s ability to raise capital by selling its assets, (viii) disruptions and increases in operating costs due to inflation and supply chain issues, (ix) risks associated with the development of mixed-use commercial properties, including risks associated with the development, and ownership of non-retail real estate, (x) changes in governmental laws and regulations, including, but not limited to changes in data privacy, environmental (including climate change), safety and health laws, and management’s ability to estimate the impact of such changes, (xi) the Company’s failure to realize the expected benefits of the merger transaction (the “transaction”) with RPT, (xii) significant transaction costs and/or unknown or inestimable liabilities related to the transaction, (xiii) the risk of litigation, including shareholder litigation, in connection with the transaction, including any resulting expense, (xiv) the ability to successfully integrate the operations of the Company and RPT and the risk that such integration may be more difficult, time-consuming or costly than expected, (xv) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company, (xvi) effects relating to the transaction or any further announcements or the consummation of the transaction on the market price of the Company’s common stock or on relationships with tenants, employees, joint venture partners and third parties, (xvii) the possibility that, if the Company does not achieve the perceived benefits of the transaction as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (xviii) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xix) valuation of marketable securities and other investments, including the shares of Albertsons Companies, Inc. common stock held by the Company, (xx) impairment charges, (xxi) criminal cybersecurity attacks disruption, data loss or other security incidents and breaches, (xxii) impact of natural disasters and weather and climate-related events, (xxiii) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (xxiv) our ability to attract, retain and motivate key personnel, (xxv) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxvi) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxvii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxviii) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxix) the Company’s ability to continue to maintain its status as a REIT for
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201349708/en/
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco Realty Corporation
(833) 800-4343
dbujnicki@kimcorealty.com
Source: Kimco Realty Corporation
FAQ
What are the allocations of RPT Realty Investors’ 2023 dividend distributions on Kimco common stock and preferred stock?
What is the CUSIP number for Kimco common stock?
What is the CUSIP number for Kimco preferred stock?
