Armada Hoffler Properties Announces Income Tax Treatment of Its 2024 Dividend Distributions
Rhea-AI Summary
Armada Hoffler Properties (NYSE: AHH) has released its 2024 dividend tax treatment information for common and preferred stockholders. For common stock dividends, the distribution comprises 36.62% ordinary dividends, 36.80% capital gain distribution, and 26.58% return of capital. The Series A preferred stock dividends consist of 49.88% ordinary dividends and 50.12% capital gain distribution.
Notable components include Unrecaptured Section 1250 Gain at 25.45% for common stock and 34.66% for preferred stock. Section 897 distributions for foreign investors include both ordinary dividends and capital gains components. All ordinary dividend portions qualify as Section 199A dividends under the Tax Cuts and Jobs Act.
Positive
- Significant portion of distributions classified as return of capital (26.58%) for common stock, which is typically tax-advantaged for investors
- High percentage of qualified Section 199A dividends, providing potential tax benefits to shareholders
Negative
- None.
News Market Reaction – AHH
On the day this news was published, AHH gained 0.93%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VIRGINIA BEACH, Va., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) announced the income tax treatment of its 2024 dividend distributions to holders of shares of the Company’s common stock and preferred stock.
This information represents final income allocations as they will be reported on Form 1099-DIV. The tax information provided should not be construed as tax advice. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of the Company’s distributions. Beginning in 2018, ordinary taxable income per share of common stock and preferred stock is equal to the 199A dividend that was created by the 2017 Tax Cuts and Jobs Act.
Common Stock Dividends
NYSE Ticker Symbol: AHH
CUSIP #04208T 10 8
EIN: #46-1214914
| Box 1a Total Ordinary Dividends | 36.62 | % | |
| Box 2a Total Capital Gain Distribution | 36.80 | % | |
| Box 2b Unrecaptured Section 1250 Gain | 25.45 | % | |
| Box 2e Section 897 Ordinary Dividend | 2.89 | % | |
| Box 2f Section 897 Capital Gain | 36.80 | % | |
| Box 3 Non-Dividend Distributions | 26.58 | % | |
| Box 5 Section 199A Dividends | 36.62 | % | |
| Total Capital Gain | 36.80 | % | |
| Total Ordinary | 36.62 | % | |
| Total Return of Capital | 26.58 | % | |
| Total | 100.00 | % | |
Preferred Series A Dividends
NYSE Ticker Symbol: AHHPrA
CUSIP #04208T 20 7
EIN: #46-1214914
| Box 1a Total Ordinary Dividends | 49.88 | % | |
| Box 2a Total Capital Gain Distribution | 50.12 | % | |
| Box 2b Unrecaptured Section 1250 Gain | 34.66 | % | |
| Box 2e Section 897 Ordinary Dividend | 3.94 | % | |
| Box 2f Section 897 Capital Gain | 50.12 | % | |
| Box 5 Section 199A Dividends | 49.88 | % | |
| Total Capital Gain | 50.12 | % | |
| Total Ordinary | 49.88 | % | |
| Total | 100.00 | % | |
Line 2a - The total dividend classified as Capital Gain is Section 1231 gain for purposes of Internal Revenue Code (IRC) Section 1061. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests."
Line2b - These amounts are a subset of, and included in, the 2024 Capital Gain amounts (Line 2a).
Line 2e - The amount of the dividends treated as a Disposition of Investment in United States Real Property, for purposes of Internal Revenue Code (IRC) Section 897, are reflected in Boxes 2e and 2f. Box 2e is a subset of, and included in, the 2024 Taxable Ordinary Dividend amounts (Line 1a). Box 2f is a subset of, and included in, the 2024 Capital Gain amounts (Line 2a).
Line 5 - These amounts are a subset of, and included in, the 2024 Taxable Ordinary Dividend amounts (Line 1a).
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
Contact:
Chelsea Forrest
Armada Hoffler
Vice President of Investor Relations and Corporate Communications
Email: CForrest@ArmadaHoffler.com
Phone: (757) 366-4000
FAQ
What is the tax breakdown of AHH's 2024 common stock dividends?
How are AHH's 2024 preferred stock (AHHPrA) dividends classified for tax purposes?
What percentage of AHH's 2024 dividends qualifies for Section 199A treatment?
What is the Section 897 capital gain percentage for AHH's 2024 dividends?
How much of AHH's 2024 common stock dividend is return of capital?
