Federal Realty Investment Trust Releases Tax Status of 2024 Distributions

Rhea-AI Summary

Federal Realty Investment Trust (NYSE:FRT) has released the Federal income tax treatment for its 2024 distributions. For Common Shares, the total distribution per share for 2024 was $4.37, consisting of $3.5834 in taxable ordinary dividends, $0.6555 in capital gains, and $0.1311 in nontaxable distributions. The quarterly common share distribution increased from $1.09 to $1.10 in the fourth quarter.

For the 5.000% Series C Cumulative Redeemable Preferred Shares, the total distribution was $1.25 per depositary share for 2024, comprising $1.0625 in taxable ordinary dividends and $0.1875 in capital gains. The company reported no foreign taxes for the year.

Positive

• Increased quarterly dividend from $1.09 to $1.10 per common share in Q4 2024
• Maintained consistent preferred share quarterly distributions of $0.3125 throughout 2024

Negative

• None.

Insights

Tax Expert

The detailed 2024 tax distribution breakdown reveals several important aspects for investors. The common shares' $4.37 annual distribution maintains a tax-efficient structure with 82% qualifying for the Section 199A deduction, allowing eligible taxpayers to deduct up to 20% of qualified REIT dividends.

The capital gains component at 15% of distributions, including unrecaptured Section 1250 gains, reflects healthy property appreciation within the portfolio. The 3% nontaxable distribution portion indicates a return of capital, which reduces the shareholder's cost basis but defers taxation until the shares are sold.

For international investors, the Section 897 FIRPTA implications are particularly relevant, with approximately 98.4% of capital gains related to Section 1231 gains. This classification can affect withholding requirements and tax treatment for foreign shareholders.

The preferred shares maintain a straightforward distribution structure with 85% ordinary dividends and 15% capital gains, offering a predictable tax treatment profile for income-focused investors. The absence of nontaxable distributions in the preferred shares suggests full dividend coverage from taxable earnings.

NORTH BETHESDA, Md., Jan. 28, 2025 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) released today the Federal income tax treatment for 2024 distributions to holders of its Common Shares of Beneficial Interest (NYSE: FRT) and its 5.000% Series C Cumulative Redeemable Preferred Shares (NYSE: FRT.PRC).

Common Shares (CUSIP # 313745101)

Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Dividend	Qualified Income Dividend (1)	Capital Gains (4)	Unrecap. Sec 1250 (2)	Nontaxable Distributions	Section 199A Dividend (1)	Sec 897 Capital Gain (Box 2f) (3)
01/02/2024	01/16/2024	$1.090000	$0.893800	$0.000000	$0.163500	$0.063765	$0.032700	$0.893800	$0.160884
03/13/2024	04/15/2024	$1.090000	$0.893800	$0.000000	$0.163500	$0.063765	$0.032700	$0.893800	$0.160884
06/21/2024	07/15/2024	$1.090000	$0.893800	$0.000000	$0.163500	$0.063765	$0.032700	$0.893800	$0.160884
10/01/2024	10/15/2024	$1.100000	$0.902000	$0.000000	$0.165000	$0.064350	$0.033000	$0.902000	$0.162360
	2024 Totals	$4.370000	$3.583400	$0.000000	$0.655500	$0.255645	$0.131100	$3.583400	$0.645012

(1)	These amounts are a subset of, and included in, the 2024 Taxable Ordinary Dividend amounts.
(2)	These amounts are a subset of, and included in, the 2024 Capital Gain amounts.
(3)	The amount of the quarterly dividends treated as a Disposition of Investment in United States Real Property, for purposes of Internal Revenue Code (IRC) Section 897, are reflected in Box 2f. Box 2f is a subset of, and included in, the 2024 Capital Gain amounts.
(4)	Pursuant to Treasury Regulation Section 1.1061-6(c), Federal Realty Investment Trust is disclosing the following information to its shareholders. "One Year Amounts Disclosure" is 1.6% of the capital gain distributions and "Three Year Amounts Disclosure" is 1.6% of the capital gain distributions. Capital gain distributions related to Section 1231 gain are 98.4% of the total capital gain distributions.

5.000% Series C Cumulative Redeemable Preferred Shares (CUSIP # 313745200))

Record Date	Payable Date	Distribution Per Share (1)	Taxable Ordinary Dividend	Qualified Income Dividend (2)	Capital Gains (5)	Unrecap. Sec 1250 (3)	Nontaxable Distributions	Section 199A Dividend (2)	Sec 897 Capital Gain (Box 2f) (4)
01/02/2024	01/16/2024	$0.31250	$0.265625	$0.00000	$0.046875	$0.018281	$0.00000	$0.265625	$0.046125
04/01/2024	04/15/2024	$0.31250	$0.265625	$0.00000	$0.046875	$0.018281	$0.00000	$0.265625	$0.046125
07/01/2024	07/15/2024	$0.31250	$0.265625	$0.00000	$0.046875	$0.018281	$0.00000	$0.265625	$0.046125
10/01/2024	10/15/2024	$0.31250	$0.265625	$0.00000	$0.046875	$0.018281	$0.00000	$0.265625	$0.046125
	2024 Totals	$1.25000	$1.062500	$0.00000	$0.187500	$0.073124	$0.00000	$1.062500	$0.184500

(1)	Amount represents dividends per depositary share, each representing 1/1000th of a share.
(2)	These amounts are a subset of, and included in, the 2024 Taxable Ordinary Dividend amounts.
(3)	These amounts are a subset of, and included in, the 2024 Capital Gain amounts.
(4)	The amount of the quarterly dividends treated as a Disposition of Investment in United States Real Property, for purposes of Internal Revenue Code (IRC) Section 897, are reflected in Box 2f. Box 2f is a subset of, and included in, the 2024 Capital Gain amounts.
(5)	Pursuant to Treasury Regulation Section 1.1061-6(c), Federal Realty Investment Trust is disclosing the following information to its shareholders. "One Year Amounts Disclosure" is 1.6% of the capital gain distributions and "Three Year Amounts Disclosure" is 1.6% of the capital gain distributions. Capital gain distributions related to Section 1231 gain are 98.4% of the total capital gain distributions.

The company did not incur any foreign taxes. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Federal Realty distributions. Should you need any additional information, contact Leah Brady, Investor Relations, at 301-998-8265.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 102 properties include approximately 3,500 tenants, in 27 million commercial square feet, and approximately 3,100 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

Inquiries:
Leah Andress Brady
Vice President, Investor Relations
301.998.8265
lbrady@federalrealty.com

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SOURCE Federal Realty Investment Trust

FAQ

What is FRT's total dividend distribution per common share for 2024?

Federal Realty's total dividend distribution per common share for 2024 was $4.37.

How much of FRT's 2024 common share distribution was taxable ordinary dividend?

The taxable ordinary dividend portion of FRT's 2024 common share distribution was $3.5834 per share.

What was FRT's quarterly dividend increase in Q4 2024?

FRT increased its quarterly dividend from $1.09 to $1.10 per common share in Q4 2024.

What is the total 2024 distribution for FRT's Series C Preferred Shares?

The total 2024 distribution for FRT's Series C Preferred Shares was $1.25 per depositary share.

What percentage of FRT's capital gain distributions are Section 1231 gains?

98.4% of FRT's capital gain distributions are related to Section 1231 gains.