CBL Properties Announces Tax Reporting Information for 2023 Common Stock Dividends

Rhea-AI Summary

CBL Properties (NYSE:CBL) has announced tax reporting information for the 2023 distributions on its Common stock, with a total distribution of $1.50 per share. The company disclosed the breakdown of Ordinary Taxable Dividends, Qualified Dividends, Capital Gain Distribution, Non-Dividend Distribution, and Section 199A Dividends. The distributions are payable on specific dates throughout the year, with a 20% deduction for REIT dividends under Section 199A. Additionally, the company provided supplementary information for non-U.S. shareholders regarding Section 897 Ordinary Dividends and Capital Gain.

Tax Advisor

From a taxation perspective, the disclosed information indicates that the majority of CBL Properties' distributions are classified as ordinary taxable dividends. This is relevant for shareholders, as ordinary dividends are taxed at the individual's income tax rate. The absence of non-dividend distributions (ROC) suggests that the company is generating sufficient earnings to cover its distributions, which is a positive indicator of its operational health.

Furthermore, the Section 199A Dividends are noteworthy because they qualify for a 20% income deduction for eligible taxpayers, potentially reducing the tax burden. This could make the investment more attractive to certain investors, particularly those looking to optimize after-tax returns. It's also important to note that there are no adjustments for Alternative Minimum Tax, which simplifies the tax reporting process for shareholders.

Financial Analyst

An analysis of the capital gain distributions reveals that the company has managed capital gains, which are a result of profit from the sale of assets or investments. For the investors, this could indicate that the company is actively managing its portfolio and realizing gains, which could be a sign of strategic asset management. The Section 1061 Disclosures are particularly relevant for direct and indirect holders of 'applicable partnership interests' and could affect the taxation of carried interest.

The information provided for non-U.S. shareholders under Section 897 is critical for understanding the tax implications of their investments in U.S. real property interests. The FIRPTA-related disclosures help international investors determine their tax liability in the U.S., which is crucial for making informed investment decisions.

REIT Analyst

As a Real Estate Investment Trust (REIT), CBL Properties' distribution components are significant for investors. The high percentage of ordinary dividends relative to capital gains suggests a stable income stream, which is a key attribute for REIT investors seeking regular income. The Section 199A Dividends are particularly appealing for individual investors due to the potential tax benefits associated with REIT dividends under the Tax Cuts and Jobs Act.

In analyzing the capital gain distributions, it's important to consider that these gains may reflect the REIT's ability to realize value from property sales or refinancing, which could signal a strategic approach to property management and portfolio optimization. However, investors should be aware that capital gains distributions can be less predictable than ordinary income distributions.

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- CBL Properties (NYSE:CBL) today announced tax reporting (Federal 1099) information for the 2023 distributions on its Common stock.

CBL & Associates Properties, Inc., Common Stock
CUSIP# 124830-878
NYSE: CBL

Record Date	Payable Date	Distribution Per Share	2023 Ordinary Taxable Dividends (Box 1a)	2023 Qualified Dividends Included In Box 1a (Box 1b)	2023 Capital Gain Distribution (Box 2a)	2023 Non-Dividend Distribution (ROC) (Box 3)	Section 199A Dividends (Box 5) (1)
03/15/2023	03/31/2023	$0.375	$0.3750000	$0.0000000	$0.0000000	$0.000000	$0.3750000
06/14/2023	06/30/2023	$0.375	$0.3750000	$0.0000000	$0.0000000	$0.000000	$0.3750000
09/15/2023	09/29/2023	$0.375	$0.3750000	$0.0000000	$0.0000000	$0.000000	$0.3750000
12/12/2023	12/29/2023	$0.375	$0.1904375	$0.0369062	$0.1845625	$0.000000	$0.1535313
Totals		$1.50	$1.3154375	$0.0369062	$0.1845625	$0.000000	$1.2785313
Percentage			87.696%	2.806%	12.304%	0.00%	85.235%

(1)	Under Section 199A, REIT dividends are eligible for a 20% deduction when received by eligible taxpayers. Please consult your tax advisor for proper tax treatment of the dividend distribution.

No Alternative Minimum Taxable Income adjustment is included in the current year for the recipients of the above distributions.

Section 1061 Disclosure
Pursuant to Treas. Reg. § 1.1061-6(c), CBL Properties is disclosing below two additional amounts related to the capital gain dividends reported in Form 1099-DIV Box 2a, Total Capital Gain Distr. for purposes of section 1061 of the Internal Revenue Code. Section 1061 is generally applicable to direct and indirect holders of “applicable partnership interests.”

Record Date	Payable Date	Section 1061 One-Year Amount Disclosure	Section 1061 Three-Year Amount Disclosure
03/15/2023	03/31/2023	$0.0000000	$0.0000000
06/14/2023	06/30/2023	$0.0000000	$0.0000000
09/15/2023	09/29/2023	$0.0000000	$0.0000000
12/12/2023	12/29/2023	$0.1845625	$0.1845625
Totals		$0.1845625	$0.1845625
Percentage (1)		100.00%	100.00%

(1)	Represents the percentage of the amount reported in Box 2a applicable to the One-Year and Three-Year amounts.

Supplementary Information for Non-U.S. Shareholders:

Record Date	Payable Date	Section 897 Ordinary Dividends (Box 2e) (1)	Section 897 Capital Gain (Box 2f) (1)
03/15/2023	03/31/2023	$0.0260126	$0.0000000
06/14/2023	06/30/2023	$0.0000000	$0.0000000
09/15/2023	09/29/2023	$0.0000000	$0.0000000
12/12/2023	12/29/2023	$0.0000000	$0.1845625
Totals		$0.0260126	$0.1845625

(1)	Amounts represent the amount per share to be reported in Box 2e and 2f on Form 1099-DIV.

This information represents FINAL income allocations.

About CBL Properties

Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 94 properties totaling 58.5 million square feet across 22 states, including 56 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 30 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.

Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.

CBL_CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125453452/en/

Investor Contact: Katie Reinsmidt, EVP & Chief Operating Officer, 423.490.8301, Katie.Reinsmidt@cblproperties.com

Source: CBL Properties

What is the total distribution per share for CBL Properties in 2023?

The total distribution per share for CBL Properties in 2023 is $1.50.

What is the breakdown of the different types of dividends for CBL Properties in 2023?

The breakdown includes Ordinary Taxable Dividends, Qualified Dividends, Capital Gain Distribution, Non-Dividend Distribution, and Section 199A Dividends.

What is the 20% deduction for REIT dividends under Section 199A?

REIT dividends are eligible for a 20% deduction when received by eligible taxpayers under Section 199A.

What supplementary information did CBL Properties provide for non-U.S. shareholders?

CBL Properties provided information regarding Section 897 Ordinary Dividends and Capital Gain for non-U.S. shareholders.