Essex Reports Characteristics of 2023 Dividends
Essex Property Trust, Inc. (NYSE:ESS) has announced the income tax treatment for its 2023 distributions to shareholders. The distribution characteristics include cash distribution per share, ordinary taxable dividend, qualified dividend, return of capital, capital gain, unrecaptured section 1250 capital gain, section 199A dividend, and section 897 gain. The company did not incur any foreign taxes during 2023. Shareholders are encouraged to consult with their tax advisors for specific tax treatment of dividends.
An essential aspect for shareholders to understand is the tax implications of their investments. The announcement by Essex Property Trust, Inc. details the tax treatment of distributions, which is critical for shareholders to accurately report income and calculate their tax liability. The information provided indicates that the majority of the distribution is classified as an Ordinary Taxable Dividend , with a smaller portion allocated to Capital Gains and an even smaller segment as Unrecaptured Section 1250 Capital Gain .
It is notable that there are no Qualified Dividends or Returns of Capital , which can have different tax treatments. The Section 199A Dividend is also mentioned, which relates to the pass-through deduction available under certain conditions to investors in real estate investment trusts (REITs). The absence of foreign taxes and the presence of a Section 897 Gain suggest a purely domestic focus for the company's operations and distributions.
Shareholders should be aware that these classifications can affect their individual tax positions, especially considering the preferential tax rates for qualified dividends and long-term capital gains. The advice to consult with tax advisors is prudent, as individual circumstances can significantly impact the tax treatment of investment income.
The distribution characteristics released by Essex Property Trust, Inc. provide investors with a clear breakdown of the tax treatment for the dividends issued. This transparency is beneficial for shareholders to make informed decisions regarding their investments. The Ordinary Taxable Dividend making up the bulk of the distribution suggests a strong operational income, which is reassuring for investors seeking regular income from their investments.
Additionally, the capital gains components, both at the 20% rate and the Unrecaptured Section 1250 Capital Gain at the 25% rate, reflect the company's ability to realize profits from property sales or other capital transactions, which can be a positive indicator of asset management and growth strategy.
For the stock market, such detailed tax breakdowns can influence investor sentiment and stock performance, as they directly affect the after-tax yield on investments. In the case of REITs like Essex Property Trust, understanding the tax treatment is especially important due to their unique structure and the implications for income-focused investing.
Essex Property Trust's disclosure highlights the importance of tax considerations in real estate investment trusts (REITs). REITs are required to distribute at least 90% of their taxable income to shareholders and the nature of these distributions can vary. The fact that there is a significant Ordinary Taxable Dividend portion indicates that the company is generating enough income to support these distributions, which is a positive sign of its operational health.
Moreover, the Section 199A Dividend relates to the Tax Cuts and Jobs Act, which provides a potential deduction for real estate investment income, thereby enhancing the after-tax yield for eligible shareholders. The absence of a Return of Capital means that the company is not reducing shareholders' investment basis, which could imply that it is not dipping into capital reserves to make distributions.
The disclosure of Section 897 Gain , which pertains to the disposition of U.S. real property interests by a foreign person, suggests that the company's investor base is diverse and it is addressing the specific tax implications for foreign investors, even though no foreign taxes were incurred. This level of detail is indicative of the company's thorough approach to shareholder communication and its adherence to regulatory requirements.
01/19/2024 - 04:15 PM
SAN MATEO, Calif. --(BUSINESS WIRE)--
Essex Property Trust, Inc. (NYSE:ESS) announced today the income tax treatment for its 2023 distributions to shareholders. The 2023 distribution characteristics are as follows:
Common Stock – CUSIP Number 297178105:
Record
Date
Payment
Date
Cash
Per Share
Ordinary
Dividend
Qualified
Dividend
Return
Capital
Capital
(20% rate)
Unrecaptured
(25% rate)
Section
Dividend
Section
Gain
1/3/2023
1/13/2023
$2.20 000
$1.94 610
$0.00 000
$0.00 000
$0.18 300
$0.07 090
$1.94 610
$0.25 390
3/31/2023
4/14/2023
$2.31 000
$2.04 340
$0.00 000
$0.00 000
$0.19 215
$0.07 445
$2.04 340
$0.26 660
6/30/2023
7/14/2023
$2.31 000
$2.04 340
$0.00 000
$0.00 000
$0.19 215
$0.07 445
$2.04 340
$0.26 660
9/29/2023
10/13/2023
$2.31 000
$2.04 340
$0.00 000
$0.00 000
$0.19 215
$0.07 445
$2.04 340
$0.26 660
Totals:
$9.13 000
$8.07 630
$0.00 000
$0.00 000
$0.75 945
$0.29 425
$8.07 630
$1.05 370
Percentages:
100%
88.459%
0.000%
8.318%
3.223%
The Company did not incur any foreign taxes during 2023.
Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of Essex Property Trust, Inc. dividends.
About Essex Property Trust, Inc.
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240119999563/en/
Loren Rainey
lrainey@essex.com
Source: Essex Property Trust, Inc.
What is the CUSIP number for Essex Property Trust, Inc. common stock?
The CUSIP number for Essex Property Trust, Inc. common stock is 297178105.
What are the record and payment dates for the 2023 distributions?
The record dates for the 2023 distributions are 1/3/2023, 3/31/2023, 6/30/2023, and 9/29/2023. The payment dates are 1/13/2023, 4/14/2023, 7/14/2023, and 10/13/2023.
What is the cash distribution per share for the 2023 distributions?
The cash distribution per share for the 2023 distributions ranges from $2.20000 to $2.31000.
What is the percentage of ordinary taxable dividend for the 2023 distributions?
The percentage of ordinary taxable dividend for the 2023 distributions is 88.459%.
Did the company incur any foreign taxes during 2023?
No, the company did not incur any foreign taxes during 2023.
What are the different types of gains included in the 2023 distributions?
The types of gains included in the 2023 distributions are capital gain, unrecaptured section 1250 capital gain, and section 199A dividend.
Essex Property Trust, Inc.
ESS Rankings
#2461 Ranked by Stock Gains
ESS Stock Data
Industry
Other Financial Vehicles
Sector
Finance and Insurance
Tags
Finance, Real Estate Investment Trusts, Finance and Insurance, Other Financial Vehicles
Country
US
City
San Mateo
About ESS
essex property trust, inc., is a fully integrated real estate investment trust (reit) that acquires, develops, redevelops, and manages multifamily residential properties in selected west coast communities. since its founding in 1971, essex has developed a clearly defined approach for creating value and managing risk. the company's approach has three components - a sound real estate strategy, an experienced management team, and a strong financial condition. these three factors have contributed to the company's historical results and future growth potential.
