Terreno Realty Corporation Announces Tax Treatment of 2023 Dividends
- None.
- None.
Insights
The declaration of the income tax treatment for dividend distributions by Terreno Realty Corporation is significant for investors, as it directly affects their taxable income. The breakdown of dividends into ordinary taxable dividends, total capital gain dividends and return of capital is crucial in understanding the tax implications. Notably, the majority of the dividend, at 93.4%, is classified as ordinary taxable income, which is taxed at the individual's income tax rate, while the 6.6% categorized as total capital gain dividend is subject to lower tax rates.
Additionally, the Section 199A dividends offer a deduction for qualified business income from a pass-through entity, which can provide tax relief for eligible shareholders. The absence of a return of capital dividend suggests that the entire distribution is considered income rather than a non-taxable return on investment. This information is valuable for shareholders in planning their tax strategies and understanding the impact on their investment returns.
From a financial perspective, the dividend distribution characteristics of Terreno Realty Corporation offer insights into the company's financial health and capital allocation strategy. The steady increase in dividend per share over the quarters reflects positively on the company's ability to generate and distribute income to its shareholders. This can be an indicator of stable cash flows and prudent financial management within the industrial real estate sector.
Investors often view consistent and growing dividends as a sign of a company's confidence in its future earnings. However, it is important to analyze the company's payout ratio and compare it with industry norms to assess sustainability. The payment of dividends also implies that the company has sufficient earnings and opts to reward shareholders rather than reinvest all profits back into the business for growth.
The focus on industrial real estate in major coastal U.S. markets positions Terreno Realty Corporation in a sector that has seen increased demand, partly driven by the growth in e-commerce and the need for efficient distribution networks. The company's strategic presence in key markets like Los Angeles, Northern New Jersey/New York City and the San Francisco Bay Area aligns with the trend of near-shoring and supply chain reconfiguration post-pandemic.
Investors should consider the broader market trends, such as industrial vacancy rates, rent growth and supply-demand dynamics in these regions, when evaluating Terreno's potential for long-term value creation. The company's ability to maintain and possibly increase dividends in the future will depend on its operational performance and the resilience of the industrial real estate market amidst economic fluctuations.
For holders of Terreno Realty Corporation common stock, the 2023 distribution of
| Security | Record Date | Date Paid | Dividend per Share |
2023 Ordinary Taxable Dividend |
2023 Total Capital Gain Dividend |
2023 Return of Capital Dividend |
2023 Unrecaptured Section 1250 Gain (1) |
2023 Section 199A Dividend (2) |
|||||||||||||||||||
| Common stock | December 30, 2022 | January 13, 2023 | $ |
0.275800 |
$ |
0.257565 |
|
$ |
0.018235 |
|
$ |
- |
|
$ |
0.002222 |
|
$ |
0.257565 |
|
||||||||
| Common stock | March 31, 2023 | April 6, 2023 | $ |
0.400000 |
$ |
0.373553 |
|
$ |
0.026447 |
|
$ |
- |
|
$ |
0.003222 |
|
$ |
0.373553 |
|
||||||||
| Common stock | June 30, 2023 | July 14, 2023 | $ |
0.400000 |
$ |
0.373553 |
|
$ |
0.026447 |
|
$ |
- |
|
$ |
0.003222 |
|
$ |
0.373553 |
|
||||||||
| Common stock | September 29, 2023 | October 13, 2023 | $ |
0.450000 |
$ |
0.420247 |
|
$ |
0.029753 |
|
$ |
- |
|
$ |
0.003625 |
|
$ |
0.420247 |
|
||||||||
| Common stock | December 15, 2023 | January 5, 2024 | $ |
0.125400 |
$ |
0.117109 |
|
$ |
0.008291 |
|
$ |
- |
|
$ |
0.001010 |
|
$ |
0.117109 |
|
||||||||
| Total | $ |
1.651200 |
$ |
1.542027 |
|
$ |
0.109173 |
|
$ |
- |
|
$ |
0.013301 |
|
$ |
1.542027 |
|
||||||||||
| Dividend as a % of total |
|
93.4 |
% |
|
6.6 |
% |
|
0.0 |
% |
|
0.8 |
% |
|
93.4 |
% |
||||||||||||
(1) |
The 2023 Unrecaptured Section 1250 Gain is a subset of, and is included in, the 2023 Total Capital Gain Dividend amount. |
|
(2) |
2023 Section 199A Dividends are a subset of, and are included in, the 2023 Ordinary Taxable Dividends. |
Approximately
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal
Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “result,” “should,” “will,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2022 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131777113/en/
Jaime Cannon
415-655-4580
Source: Terreno Realty Corporation
FAQ
What is the 2023 dividend distribution per share for Terreno Realty Corporation (TRNO)?
What are the record dates for the 2023 dividend distributions for TRNO?
What U.S. markets does Terreno Realty Corporation operate in?
How much of the distribution declared on October 31, 2023, and paid on January 5, 2024, will be considered a distribution made in 2023 for U.S. federal income tax purposes?
