Ryman Hospitality Properties, Inc. Announces 2023 Tax Classification of Shareholder Dividend Distributions
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Insights
The classification of dividend distributions is a critical piece of information for shareholders, particularly when it comes to understanding the tax implications. Ryman Hospitality Properties, Inc. has delineated the dividends into ordinary non-qualifying dividends and long-term capital gains, which are taxed at different rates. It is essential to note that the majority of the dividends are classified as ordinary, implying that for most shareholders, these dividends will be taxed at their regular income tax rate, rather than the potentially lower long-term capital gains rate.
Furthermore, the absence of a 'Return of Capital' component signifies that the entire distribution is considered income for the year, rather than a return on the investment principal, which can have different tax consequences. The eligible Section 199A dividends offer a deduction for qualified business income, which can provide a tax benefit for eligible shareholders. This classification will directly affect the after-tax income of shareholders and can influence investment decisions and portfolio strategy.
From a financial perspective, the announcement of dividend tax classifications does not typically have a direct impact on the stock price. However, it does provide investors with clarity on the tax treatment of their dividends, which can affect the attractiveness of Ryman Hospitality Properties, Inc. as an investment, especially for income-focused investors. The consistency of the dividend payments, as indicated by the four distributions in 2023, suggests a stable cash flow, which is a positive signal for the company's financial health.
The total distribution amount of $3.85 for the year, with the incremental increase in the last payment, could indicate a solid financial performance and a commitment to returning value to shareholders. Investors often view such progressive dividend policies favorably, as they can reflect confidence in the company's future earnings and cash flow stability.
Analyzing the broader market implications, the tax classification of dividends by Ryman Hospitality Properties, Inc. is an important consideration for the real estate investment trust (REIT) sector. REITs are known for offering high dividend yields and the tax treatment of these distributions is a significant factor in their total return profile. As such, the classification of the majority of the dividends as ordinary income is typical for a REIT, given their requirement to distribute at least 90% of taxable income to shareholders.
Investors in the REIT sector often rely on these distributions as a source of regular income and the tax classification can influence the net yield they receive. The clear breakdown of the dividend components provided by the company aids investors in making informed decisions regarding their investments in the sector, potentially affecting capital allocation within the REIT industry.
NASHVILLE, Tenn., Jan. 24, 2024 (GLOBE NEWSWIRE) -- Ryman Hospitality Properties, Inc. (NYSE: RHP) (the “Company”) today announced the 2023 tax classification of the dividend distributions made to the Company’s shareholders.
The income tax classification as expected to be reported on Form 1099-DIV is as follows:
| Record Date | Payment Date | Total Distribution | Total Taxable in 2023 | Ordinary Non- Qualifying Dividend | Long-term Capital Gain ( | Nondividend Dist (Return of Capital) | Eligible Sec. 199A Dividend | ||||||
| 3/31/2023 | 4/17/2023 | $ | 0.75 | $ | 0.750000 | $ | 0.730682 | $ | 0.019318 | $ | - | $ | 0.730682 |
| 6/30/2023 | 7/17/2023 | $ | 1.00 | $ | 1.000000 | $ | 0.974243 | $ | 0.025757 | $ | - | $ | 0.974243 |
| 9/29/2023 | 10/16/2023 | $ | 1.00 | $ | 1.000000 | $ | 0.974243 | $ | 0.025757 | $ | - | $ | 0.974243 |
| 12/29/2023 | 1/16/2024 | $ | 1.10 | $ | 1.100000 | $ | 1.071668 | $ | 0.028332 | $ | - | $ | 1.071668 |
| Total | $ | 3.85 | $ | 3.850000 | $ | 3.750836 | $ | 0.099164 | $ | - | $ | 3.750836 | |
The information presented above is based on preliminary results and is subject to correction or adjustment when the Company’s filings are completed. The tax information provided should not be construed as tax advice. Shareholders are encouraged to consult with their tax advisors regarding their specific tax treatment.
About Ryman Hospitality Properties, Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company’s holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company’s hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a
| Investor Relations Contacts: | Media Contacts: |
| Mark Fioravanti, President and Chief Executive Officer | Shannon Sullivan, Vice President Corporate and Brand Communications |
| Ryman Hospitality Properties, Inc. | Ryman Hospitality Properties, Inc. |
| (615) 316-6588 | (615) 316-6725 |
| mfioravanti@rymanhp.com | ssullivan@rymanhp.com |
| ~or~ | ~or~ |
| Jennifer Hutcheson, Chief Financial Officer | Robert Winters |
| Ryman Hospitality Properties, Inc. | Alpha IR Group |
| (615) 316-6320 | (929) 266-6315 |
| jhutcheson@rymanhp.com | robert.winters@alpha-ir.com |
| ~or~ | |
| Sarah Martin, Vice President Investor Relations | |
| Ryman Hospitality Properties, Inc. | |
| (615) 316-6011 | |
| sarah.martin@rymanhp.com |
FAQ
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