VEREIT, Inc. Announces Tax Treatment of 2020 Dividends

Rhea-AI Summary

VEREIT, Inc. announced the tax classification for its 2020 dividends for both Common Stock (VER) and Series F Preferred Stock (VER-PF). The classification lists the dividends primarily as nondividend distributions due to a deduction related to a class action settlement. Shareholders are advised to consult tax advisors for specific treatment. In 2020, the total real estate investments of VEREIT reached $14.6 billion, with approximately 3,800 properties under management.

Positive

• Total real estate investments of $14.6 billion.
• Management of approximately 3,800 properties.

Negative

• 2020 dividends classified primarily as nondividend distributions, which may affect tax treatment for shareholders.

PHOENIX, Jan. 25, 2021 /PRNewswire/ -- VEREIT, Inc. ("VEREIT" or the "Company") announced the income tax classification of its 2020 dividends for the Company's common stock (NYSE: VER) ("Common Stock") and 6.70% Series F Cumulative Redeemable Preferred Stock (NYSE: VER-PF) ("Series F Preferred Stock"). The tables below summarize the income tax classification of the dividends paid and the corresponding box number on the 2020 Form 1099-DIV.  Due to the previously disclosed class action settlement, the Company will recognize a deduction in 2020 for the amounts contributed to the settlement fund for federal income tax purposes.  This deduction is the primary driver of the classification of the Company's 2020 dividends as nondividend distributions (Box 3) on the 2020 Form 1099-DIV.  Stockholders are encouraged to consult with their tax advisors as to their specific tax treatment of VER and VER PRF dividends.

VER Common Stock  |  CUSIP: 92339V308

Record Date	Date Paid	Distribution per Share*	Ordinary Dividends (Box 1a)	Qualified Dividends (Box 1b)	Capital Gain Distribution (Box 2a)	Unrecaptured Section 1250 Gain (Box 2b)	Nondividend Distributions (Box 3)	Section 199A Dividends (Box 5)
12/31/2019	1/15/2020	$    0.6875000	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.6875000	$    0.000000
3/31/2020	4/15/2020	$    0.6875000	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.6875000	$    0.000000
6/30/2020	7/15/2020	$    0.3850000	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.3850000	$    0.000000
9/30/2020	10/15/2020	$    0.3850000	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.3850000	$    0.000000

*Distributions have been adjusted for the one-for-five reverse stock split effective December 17, 2020.

VER PRF Series F Preferred Stock  |  CUSIP: 92339V209

Record Date	Date Paid	Distribution per Share	Ordinary Dividends (Box 1a)	Qualified Dividends (Box 1b)	Capital Gain Distribution (Box 2a)	Unrecaptured Section 1250 Gain (Box 2b)	Nondividend Distributions (Box 3)	Section 199A Dividends (Box 5)
1/1/2020	1/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
2/1/2020	2/18/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
3/1/2020	3/16/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
4/1/2020	4/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
5/1/2020	5/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
6/1/2020	6/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
7/1/2020	7/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
8/1/2020	8/17/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
9/1/2020	9/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
10/1/2020	10/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
11/1/2020	11/16/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000
12/1/2020	12/15/2020	$    0.1395833	$    0.000000	$    0.000000	$    0.000000	$    0.000000	$    0.1395833	$    0.000000

About the Company
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. VEREIT has total real estate investments of $14.6 billion including approximately 3,800 properties and 88.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.  VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange.  VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.  Additional information about VEREIT can be found through social media platforms such as Twitter and LinkedIn.

Forward-Looking Statements
Information set forth herein contains forward-looking statements, which reflect VEREIT's expectations regarding future results, events and plans, including expectations regarding VEREIT's 2020 tax reporting. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are difficult to predict and beyond VEREIT's control, that could cause actual events and plans or could cause VEREIT's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements.  These factors include the risks and uncertainties detailed from time to time in VEREIT's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. VEREIT disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

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SOURCE VEREIT, Inc.

FAQ

What is the tax classification for VEREIT's 2020 dividends?

VEREIT's 2020 dividends are classified primarily as nondividend distributions.

What are the payment dates for VEREIT's 2020 dividends?

The payment dates for VEREIT's 2020 dividends vary, with payments made on 1/15/2020, 4/15/2020, 7/15/2020, 10/15/2020, and 12/15/2020.

What is the dividend amount for VEREIT Common Stock in 2020?

The dividend amount for VEREIT Common Stock was $0.6875 per share for the first two distributions, and $0.385 per share for the subsequent distributions.

What is the impact of the class action settlement on VEREIT's dividends?

The class action settlement deduction is the primary driver for the classification of VEREIT's 2020 dividends as nondividend distributions.

How much dividend did VEREIT Series F Preferred Stock pay in 2020?

VEREIT Series F Preferred Stock paid a total of $0.1395833 per share for each of the distributions made in 2020.