Uniti Group Inc. Announces Tax Reporting Information for 2020 Distributions

Rhea-AI Summary

Uniti Group Inc. (Nasdaq: UNIT) announced the tax treatment of its 2020 distributions, detailing federal income tax implications for shareholders. A total distribution of $0.60 per share was reported, with $0.5199 as ordinary dividends. The press release underscores that ordinary dividends will be reported as Section 199A Dividends, necessitating a 45-day holding period for qualification. Shareholders are advised to consult tax advisors regarding these distributions. Uniti is recognized for its extensive fiber optic network, owning 6.7 million fiber strand miles across the U.S.

Positive

• Total distribution of $0.60 per share for 2020, indicating return to shareholders.
• Ordinary dividends reported as Section 199A Dividends, potentially advantageous for qualifying shareholders.

Negative

• None.

LITTLE ROCK, Ark., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today the tax treatment of its 2020 distributions. The following table summarizes the federal income tax treatment of the distributions on its common shares as it is expected to be reported on Form 1099 – DIV.

Common Stock CUSIP (91325V108)
Record Date		Payment Date		Total Distribution Per Share			Ordinary Dividend Per Share			Capital Gain Distribution Per Share			Nondividend Distribution Per Share
3/31/20		4/15/20		$0.15			$0.129966			$0.020034			$0.00
6/26/20		7/10/20		$0.15			$0.129966			$0.020034			$0.00
9/18/20		10/2/20		$0.15			$0.129966			$0.020034			$0.00
12/15/20(1)		1/4/21		$0.15			$0.129966			$0.020034			$0.00
		Total		$0.60			$0.5199			$0.0801			$0.00

Ordinary dividend per share is non-qualified dividend income.   The Ordinary Dividend Per Share will also be reported on Form 1099-DIV, Box 5, as Section 199A Dividends. Treasury Regulation §1.199A-3(c)(2)(ii) requires that stockholders hold their REIT shares for at least 45 days for the dividends to be treated as Section 199A Dividends.  Stockholders should consult with their tax advisors to determine whether this requirement affects any portion of the dividends included in Box 5.

⁽¹⁾ Pursuant to Internal Revenue Code Section 857(b)(9), if you were a stockholder of record as of December 15, 2020, your dividend payment of $0.15 per share received in January 2021 was reported on Form 1099-DIV for the 2020 taxable year for federal income tax purposes.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

INVESTOR and MEDIA CONTACTS:

Mark A. Wallace, 501-850-0866
Executive Vice President, Chief Financial Officer & Treasurer
mark.wallace@uniti.com

Bill DiTullio, 501-850-0872
Vice President, Finance & Investor Relations
bill.ditullio@uniti.com 

FAQ

What is the total distribution per share announced by Uniti Group for 2020?

The total distribution per share announced by Uniti Group for 2020 is $0.60.

What is the ordinary dividend per share for Uniti Group in 2020?

The ordinary dividend per share for Uniti Group in 2020 is $0.5199.

What tax treatment is applicable for Uniti Group's dividends?

Uniti Group's ordinary dividends will be reported as Section 199A Dividends for tax purposes.

When were the record dates for Uniti Group's 2020 dividends?

The record dates for Uniti Group's 2020 dividends were March 31, June 26, September 18, and December 15.

What should Uniti shareholders consider regarding the 45-day holding period?

Shareholders should hold their Uniti shares for at least 45 days to meet the requirement for their dividends to qualify as Section 199A Dividends.