Plymouth Industrial REIT Announces Tax Treatment of 2023 Dividends
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Insights
The tax classification of dividends is a critical piece of information for investors, as it affects both the after-tax income they receive and the complexity of their tax reporting. In the case of Plymouth Industrial REIT's announcement, the majority of the distributions are classified as ordinary dividends, which are taxed at the individual's income tax rate. The rest are reported as capital gain distributions, which may be subject to lower tax rates and a small portion as unrecaptured Section 1250 gain. Notably, there is no return of capital, which can have tax-deferred benefits and reduce an investor's cost basis in the stock.
Investors in Plymouth Industrial REIT should be aware that the tax treatment of REIT dividends can be more complex than those from other corporations. REITs are required to distribute at least 90% of their taxable income to shareholders and these distributions can be composed of ordinary income, capital gains and return of capital, each with different tax implications. This announcement provides clarity on the tax treatment of the past year's dividends, which can assist investors in tax planning and understanding the true after-tax yield of their investment.
From a financial analysis perspective, the dividend tax treatment announcement by Plymouth Industrial REIT offers insight into the company's earnings quality and capital allocation strategy. The fact that there's no return of capital indicates that all distributions for the year were covered by earnings and capital gains, which suggests a sustainable dividend policy. This is a positive signal for investors looking for stable income streams, as return of capital can sometimes indicate that the company is paying out more than it earns.
Moreover, the consistency of the dividend payments and their tax treatment can be seen as a reflection of the REIT's operational stability and commitment to delivering shareholder value. For those evaluating the stock's performance, these tax details can contribute to a more nuanced understanding of the total return. Investors may compare these tax characteristics with those of other REITs to assess the relative attractiveness of Plymouth Industrial REIT in terms of tax efficiency and income generation.
Understanding the tax treatment of dividends is particularly important in the real estate sector where REITs like Plymouth Industrial operate. The sector's performance is influenced by factors such as property values, rental income and interest rates. These factors, in turn, affect the taxable income of REITs and their ability to pay dividends. The breakdown of Plymouth Industrial's dividend components can serve as an indicator of the company's asset performance over the tax year.
Investors and analysts monitor such announcements to gauge the health of the underlying real estate assets and the REIT's management efficiency. In the broader context, the stability in Plymouth Industrial's dividend payments and their tax classification could reflect resilience in the industrial real estate market, which has been a strong performer due to the growth of e-commerce and the need for distribution centers. Such insights can be valuable for stakeholders looking to understand the dynamics of the real estate market and the positioning of individual REITs within it.
BOSTON, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced the tax treatment of its 2023 dividends to common stockholders. The following table summarizes Plymouth Industrial REIT’s dividends to stockholders of Common Stock CUSIP #729640102 traded on the NYSE under ticker symbol “PLYM” for the tax year ended December 31, 2023:
| Record Date | Payment Date | Total Cash Distribution Per Share | Total Distribution Allocable to 2023 | Ordinary Dividend Per Share | Capital Gain Distribution Per Share | Unrecaptured Sec. 1250 Gain | Return of Capital Per Share | ||||||||||||
| 12/30/2022 | 1/31/2023 | $ | 0.220000 | $ | 0.220000 | $ | 0.148204 | $ | 0.071796 | $ | 0.013099 | $ | 0.000000 | ||||||
| 3/31/2023 | 4/28/2023 | $ | 0.225000 | $ | 0.225000 | $ | 0.151573 | $ | 0.073427 | $ | 0.013397 | $ | 0.000000 | ||||||
| 6/30/2023 | 7/31/2023 | $ | 0.225000 | $ | 0.225000 | $ | 0.151573 | $ | 0.073427 | $ | 0.013397 | $ | 0.000000 | ||||||
| 9/29/2023 | 10/31/2023 | $ | 0.225000 | $ | 0.225000 | $ | 0.151573 | $ | 0.073427 | $ | 0.013397 | $ | 0.000000 | ||||||
| 12/29/2023 | 1/31/2024 | $ | 0.225000 | $ | 0.225000 | $ | 0.151573 | $ | 0.073427 | $ | 0.013397 | $ | 0.000000 | ||||||
| $ | 1.120000 | $ | 1.120000 | $ | 0.754496 | $ | 0.365504 | $ | 0.066687 | $ | 0.000000 | ||||||||
The income tax treatment for the 2023 distributions for Plymouth Industrial REIT’s
| Record Date | Payment Date | Total Cash Distribution Per Share | Total Distribution Allocable to 2023 | Ordinary Dividend Per Share | Capital Gain Distribution Per Share | Unrecaptured Sec. 1250 Gain | Return of Capital Per Share | ||||||||||||
| 12/15/2022 | 1/3/2023 | $ | 0.468750 | $ | 0.468750 | $ | 0.315776 | $ | 0.152974 | $ | 0.027911 | $ | 0.000000 | ||||||
| 3/15/2023 | 3/31/2023 | $ | 0.468750 | $ | 0.468750 | $ | 0.315776 | $ | 0.152974 | $ | 0.027911 | $ | 0.000000 | ||||||
| 6/15/2023 | 6/30/2023 | $ | 0.468750 | $ | 0.468750 | $ | 0.315776 | $ | 0.152974 | $ | 0.027911 | $ | 0.000000 | ||||||
| 8/25/2023 | 9/6/2023 | $ | 0.346470 | $ | 0.346470 | $ | 0.233402 | $ | 0.113068 | $ | 0.020630 | $ | 0.000000 | ||||||
| $ | 1.752720 | $ | 1.752720 | $ | 1.180730 | $ | 0.571990 | $ | 0.104363 | $ | 0.000000 | ||||||||
About Plymouth
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.
Contact:
Tripp Sullivan
SCR Partners
IR@plymouthreit.com
FAQ
What is the total cash distribution per share for Plymouth Industrial REIT, Inc. for the tax year ended December 31, 2023?
What is the total ordinary dividend per share for Plymouth Industrial REIT, Inc. for the tax year ended December 31, 2023?
What is the total capital gain distribution per share for Plymouth Industrial REIT, Inc. for the tax year ended December 31, 2023?
What is the total cash distribution per share for Plymouth Industrial REIT’s 7.50% Series A Cumulative Redeemable Preferred Stock (PLYM-PrA) CUSIP #729640201?
What is the total ordinary dividend per share for Plymouth Industrial REIT’s 7.50% Series A Cumulative Redeemable Preferred Stock (PLYM-PrA) CUSIP #729640201?
What is the total capital gain distribution per share for Plymouth Industrial REIT’s 7.50% Series A Cumulative Redeemable Preferred Stock (PLYM-PrA) CUSIP #729640201?
