Kite Realty Group Trust Announces Tax Reporting Information for 2023 Dividend Distributions
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Insights
From the perspective of a Tax Specialist, the announced dividend distributions by Kite Realty Group Trust (KRG) carry implications for both individual and institutional investors. The breakdown of the dividend into ordinary dividends and capital gains distributions is crucial for tax planning. The majority of the distribution is classified as ordinary dividends, which are taxed at individual marginal tax rates, while a smaller portion is categorized as capital gains, potentially subject to lower tax rates.
Furthermore, the inclusion of Section 199A dividends is significant for non-corporate taxpayers, as it allows for a 20% qualified business income deduction, effectively lowering the taxable income related to these dividends. This could influence investor decisions, particularly for those in higher tax brackets seeking tax-efficient income streams. It's important to note that the non-taxable distribution is reported as zero, indicating that the entire dividend is subject to taxation.
An analysis by a Financial Analyst would highlight that the consistency of Kite Realty Group Trust's dividend payments reflects a stable cash flow, which is an attractive quality for income-focused investors. The total distribution per share of $0.96 annually suggests a solid dividend yield, assuming the share price remains relatively stable. However, investors should be mindful of the payout ratio, which indicates the percentage of earnings paid out as dividends. A high payout ratio could signal limited room for future dividend growth or potential strain on the company's finances if earnings decline.
Additionally, the capital gain distribution represents a return of stockholders' original investment, which may suggest that part of the distribution is not sourced purely from earnings. This could be indicative of asset sales or a return of capital strategy. Investors should evaluate this in the context of the company's overall financial health and growth prospects.
As a Real Estate Investment Trust (REIT) Analyst, one would assess the implications of these dividend allocations within the context of the REIT industry. REITs are required to distribute at least 90% of their taxable income to shareholders and Kite Realty Group Trust's distributions align with this requirement. The allocation towards qualified REIT dividends suggests compliance with tax regulations and the ability to pass on tax advantages to shareholders.
It is also worth noting that the stability and size of the dividend can be a reflection of the underlying property portfolio's performance and the trust's management efficiency. Investors typically look to REITs for consistent income, so the predictability of Kite Realty Group Trust's dividend payments could be a positive signal regarding the trust's operational stability and asset quality.
INDIANAPOLIS, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE: KRG) announced today the allocations of the Company's 2023 dividend distributions on its common stock. The allocations as they will be reported on Form 1099-DIV are as follows:
| Common Shares | ||||||||||||||||||||||
| CUSIP | Record Date | Payable Date | Total Distribution per Share | Ordinary Dividend | Capital Gain Distribution | Non-Taxable Distribution 1 | Section 199A Dividends 2 | |||||||||||||||
| 49803T300 | 1/6/2023 | 1/13/2023 | $ | 0.24 | $ | 0.21742 | $ | 0.02258 | $ | 0.00000 | $ | 0.21742 | ||||||||||
| 49803T300 | 4/7/2023 | 4/14/2023 | 0.24 | 0.21742 | 0.02258 | 0.00000 | 0.21742 | |||||||||||||||
| 49803T300 | 7/7/2023 | 7/14/2023 | 0.24 | 0.21742 | 0.02258 | 0.00000 | 0.21742 | |||||||||||||||
| 49803T300 | 10/6/2023 | 10/13/2023 | 0.24 | 0.21742 | 0.02258 | 0.00000 | 0.21742 | |||||||||||||||
| $ | 0.96 | $ | 0.86968 | $ | 0.09032 | $ | 0.00000 | $ | 0.86968 | |||||||||||||
| 90.59 | % | 9.41 | % | |||||||||||||||||||
- Represents a return of stockholders’ original investment
- Represents qualified REIT dividends that may be eligible for the
20% qualified business income deduction under Section 199A of the Internal Revenue Code of 1986, as amended, that is available for non-corporate taxpayers and is included in “Ordinary Dividends”.
About Kite Realty Group Trust
Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of September 30, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.3 million square feet of gross leasable space. For more information, please visit kiterealty.com.
Connect with KRG: LinkedIn | Twitter | Instagram | Facebook
Safe Harbor
This release, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements.
Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: national and local economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including a potential economic slowdown or recession, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending); financing risks, including the availability of, and costs associated with, sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of tenants; the competitive environment in which the Company operates, including potential oversupplies of and reduction in demand for rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company’s ability to maintain the Company’s status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns; business continuity disruptions and a deterioration in our tenant’s ability to operate in affected areas or delays in the supply of products or services to us or our tenants from vendors that are needed to operate efficiently, causing costs to rise sharply and inventory to fall; risks related to our current geographical concentration of the Company’s properties in Texas, Florida, Maryland, New York, and North Carolina; civil unrest, acts of violence, terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions, including such events that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations including governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; our ability to satisfy environmental, social or governance standards set by various constituencies; insurance costs and coverage; risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission (“the SEC”) or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in the Company’s quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information: Kite Realty Group Trust
David Buell
SVP, Chief Accounting Officer
317.713.5467
dbuell@kiterealty.com
FAQ
What is the total distribution per share for Kite Realty Group Trust's common stock in 2023?
What percentage of the total distribution per share represents ordinary dividends?
What percentage of the total distribution per share represents capital gain distribution?
What is the Section 199A Dividends allocation for Kite Realty Group Trust's common stock in 2023?
