LXP Industrial Trust Announces Final 2023 Dividend Allocation
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Insights
The disclosure of dividend income allocations by LXP Industrial Trust is a critical piece of information for investors, particularly those focused on income-generating investments such as REITs. The nature of the distributions—ordinary dividends versus return of capital—has significant implications for tax planning and investment strategy. A return of capital, for instance, reduces an investor's cost basis in the stock, potentially deferring tax liabilities until the sale of the investment.
It's also noteworthy that there are no capital gain distributions reported, which suggests that the REIT's portfolio has not realized significant capital gains during the period. This could imply a strategy focused on income over capital appreciation, or it could reflect market conditions where industrial real estate valuations have not markedly increased.
From a taxation perspective, the classification of distributions is paramount. Ordinary dividends are taxed at the individual's income tax rate, while qualified dividends and Section 199A dividends can offer tax advantages, such as lower tax rates and deductions for business income. The data provided indicates that all ordinary dividends for common shares also qualify for the Section 199A deduction, which is beneficial for eligible shareholders.
Moreover, the absence of capital gain distributions means shareholders are not subject to taxes on capital gains for the reported period. However, the nondividend distributions or return of capital require careful tracking by shareholders, as it affects their cost basis and ultimately their capital gains calculation upon disposition of the shares.
For stakeholders in the industrial real estate sector, the consistent dividend payments by LXP Industrial Trust reflect the underlying stability and potential cash flow predictability of single-tenant industrial properties. This sector has been buoyed by the e-commerce boom, which has increased demand for distribution centers and warehouses. However, the lack of capital gains distributions might raise questions about the asset appreciation within the portfolio or the REIT's reinvestment strategies. Investors may want to consider the long-term growth prospects of LXP's assets alongside the current income stream.
Given the specialized nature of single-tenant properties, the REIT's ability to maintain occupancy and manage lease expirations is crucial. The steady dividends suggest effective asset and property management, but investors should analyze tenant diversification and lease durations to gauge future risk exposure.
NEW YORK, Jan. 18, 2024 (GLOBE NEWSWIRE) -- LXP Industrial Trust (“LXP”) (NYSE: LXP), a real estate investment trust (REIT) focused on single-tenant industrial real estate investments, today announced its final 2023 dividend income allocations for both its common and preferred shares as they will be reported on Form 1099-DIV. Additionally, the return of capital on the common shares (Nondividend Distributions in the table below) was reported on Internal Revenue Service Form 8937 pursuant to U.S. tax basis reporting as required under Internal Revenue Code 6045B. A copy of the Internal Revenue Service Form 8937 can be found in the investor’s section on LXP’s website at https://ir.lxp.com/stock-info/tax-documents/form-8937/default.aspx
| Common Shares | |||||||||||||||
| Record Date | Payable Date | Total Distributions Per Share | Total Ordinary Dividends | Qualified Dividends(1) | Total Capital Gain Distributions | Unrecaptured Section 1250 Gain | Nondividend Distributions(2) | Section 199A Dividends(1) | |||||||
| 12/30/2022 | 01/17/2023 | ||||||||||||||
| 03/31/2023 | 04/17/2023 | ||||||||||||||
| 06/30/2023 | 07/17/2023 | ||||||||||||||
| 09/29/2023 | 10/16/2023 | ||||||||||||||
| Form 1099 - Div Box | 1a | 1b | 2a | 2b | 3 | 5 | |||||||||
| Series C Cumulative Convertible Preferred Stock | |||||||||||||||
| Record Date | Payable Date | Total Distributions Per Share | Total Ordinary Dividends | Qualified Dividends (1) | Total Capital Gain Distributions | Unrecaptured Section 1250 Gain | Nondividend Distributions (2) | Section 199A Dividends(1) | |||||||
| 01/31/2023 | 02/15/2023 | ||||||||||||||
| 04/28/2023 | 05/15/2023 | ||||||||||||||
| 07/31/2023 | 08/15/2023 | ||||||||||||||
| 10/31/2023 | 11/15/2023 | ||||||||||||||
| Form 1099 - Div Box | 1a | 1b | 2a | 2b | 3 | 5 | |||||||||
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(1) Qualified Dividends (Box 1b) and Section 199A Dividends (Box 5) are a subset of, and are included in, the Total Ordinary Dividends reported in Box 1a.
(2) Return of Capital.
ABOUT LXP INDUSTRIAL TRUST
LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant warehouse and distribution investments across the United States. LXP seeks to expand its portfolio through acquisitions, development projects, and build-to-suit and sale/leaseback transactions. For more information or to follow LXP on social media, visit www.lxp.com.
Contact:
Investor or Media Inquiries for LXP Industrial Trust:
Heather Gentry, Senior Vice President of Investor Relations
LXP Industrial Trust
Phone: (212) 692-7200 E-mail: hgentry@lxp.com
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