AG Mortgage Investment Trust, Inc. Announces Tax Treatment of 2020 Dividend Distributions

Rhea-AI Summary

AG Mortgage Investment Trust (NYSE: MITT) announced the tax treatment for common and preferred stock dividends declared in 2020 to assist stockholders with tax reporting. Notably, dividends declared in December 2020, payable in January 2021, are recognized for tax purposes in 2021 because there were no undistributed earnings as of December 31, 2020. The total 2020 distributions per share amounted to $2.06252 for Series A, $2.00 for Series B, and $2.00 for Series C preferred stocks. Stockholders are advised to verify their tax statements and consult tax advisors regarding individual situations.

Positive

• Total distributions per share for Series A, B, and C preferred stocks were $2.06252, $2.00, and $2.00 respectively, which may provide income for shareholders.

Negative

• The company had no undistributed earnings and profits as of December 31, 2020, indicating potential challenges for future dividend sustainability.

AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the “Company”), a real estate investment trust (REIT), announced today the tax treatment of common and preferred stock dividends declared in 2020. This information is provided to assist stockholders with tax reporting requirements related to dividend distributions of taxable income by the Company.

Stockholders should review the 2020 tax statements received from their brokerage firms or other institutions to ensure those statements agree with the information provided below. Also, as each stockholder’s tax situation may be different, stockholders are encouraged to consult with their professional tax advisor with respect to their individual tax reporting positions regarding the Company’s dividend distributions.

As the Company is a REIT, dividends declared in the last quarter of a calendar year with a record date in that calendar year, but which are payable in January of the following year, are considered paid for Form 1099 reporting purposes on December 31 of the calendar year in which such dividend was declared, not on the payable date, to the extent the REIT has remaining undistributed earnings and profits (as computed for income tax purposes) as of December 31 of that calendar year. The Company did not have any remaining undistributed earnings and profits as of December 31, 2020. As a result, the common dividend declared in December 2020 and paid in January 2021 will be recognized for income tax purposes in the 2021 calendar year. At no point in time during calendar year 2020 did the Company declare dividends on its common stock prior to the December 2020 declaration.

The Company’s distributions per share on its Series A 8.25% Cumulative Redeemable Preferred Stock (CUSIP #001228204) are to be classified for income tax purposes as follows:

Record Date	Payable Date	2020 Distribution Per Share	2020 Ordinary Dividends	2020 Qualified Dividends (1)	2020 Return of Capital	2020 Capital Gains	Section 199A Dividends (1)
2/28/2020	3/17/2020	$0.51563	$0.00	$0.00	$0.51563	$0.00	$0.00
11/30/2020	12/17/2020	$1.54689	$0.00	$0.00	$1.54689	$0.00	$0.00
Totals		$2.06252	$0.00	$0.00	$2.06252	$0.00	$0.00
(1) Qualified Dividends and Section 199A Dividends are a subset of, and included in, the Ordinary Dividends amount.

The Company’s distributions per share on its Series B 8.00% Cumulative Redeemable Preferred Stock (CUSIP #001228303) are to be classified for income tax purposes as follows:

Record Date	Payable Date	2020 Distribution Per Share	2020 Ordinary Dividends	2020 Qualified Dividends (1)	2020 Return of Capital	2020 Capital Gains	Section 199A Dividends (1)
2/28/2020	3/17/2020	$0.50	$0.00	$0.00	$0.50	$0.00	$0.00
11/30/2020	12/17/2020	$1.50	$0.00	$0.00	$1.50	$0.00	$0.00
Totals		$2.00	$0.00	$0.00	$2.00	$0.00	$0.00
(1) Qualified Dividends and Section 199A Dividends are a subset of, and included in, the Ordinary Dividends amount.

The Company’s distributions per share on its Series C 8.000% Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (CUSIP #001228402) are to be classified for income tax purposes as follows:

Record Date	Payable Date	2020 Distribution Per Share	2020 Ordinary Dividends	2020 Qualified Dividends (1)	2020 Return of Capital	2020 Capital Gains	Section 199A Dividends (1)
2/28/2020	3/17/2020	$0.50	$0.00	$0.00	$0.50	$0.00	$0.00
11/30/2020	12/17/2020	$1.50	$0.00	$0.00	$1.50	$0.00	$0.00
Totals		$2.00	$0.00	$0.00	$2.00	$0.00	$0.00
(1) Qualified Dividends and Section 199A Dividends are a subset of, and included in, the Ordinary Dividends amount.

The information provided in this press release is provided for informational purposes only and does not constitute tax advice. Stockholders are urged to consult their own tax advisors regarding the particular consequences of the distributions to them, including the applicability and effect of U.S. federal, state, local and foreign tax laws.

About AG Mortgage Investment Trust, Inc.

AG Mortgage Investment Trust, Inc. is a hybrid mortgage REIT that opportunistically invests in and manages a diversified risk-adjusted portfolio of Agency RMBS and Credit Investments. Its Credit Investments include Residential Investments and Commercial Investments. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities.

Additional information can be found on the Company’s website at www.agmit.com.

About Angelo Gordon

Angelo, Gordon & Co., L.P. is a privately held limited partnership founded in November 1988. The firm manages approximately $43 billion as of December 31, 2020 with a primary focus on credit and real estate strategies. Angelo Gordon has over 550 employees, including more than 200 investment professionals, and is headquartered in New York, with offices in the U.S., Europe and Asia. For more information, visit www.angelogordon.com.

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FAQ

What are the tax implications of the dividends declared by MITT in 2020?

Dividends declared in December 2020 are recognized for tax purposes in 2021 due to no undistributed earnings as of December 31, 2020.

What were the total distributions for MITT's preferred stocks in 2020?

The total distributions were $2.06252 for Series A, $2.00 for Series B, and $2.00 for Series C preferred stocks.

When are the dividends for MITT payable?

Dividends declared in December 2020 were payable on January 17, 2021.

Should stockholders consult a tax advisor regarding MITT's dividends?

Yes, stockholders are encouraged to consult their tax advisors regarding individual tax reporting and the implications of the dividends.