Nexpoint Residential Trust Announces 2024 Dividend Income Tax Treatment

Rhea-AI Summary

NexPoint Residential Trust (NXRT) has released its final income allocations for 2024 dividend distributions on common stock. The company paid total dividends of $1.89726 per share across four quarterly distributions. The dividend composition includes:

- 67.92% ($1.28868) as Taxable Capital Gain Distribution
- 32.08% ($0.60858) as Return of Capital
- $0.80245 as Unrecaptured Section 1250 Gain

The quarterly dividends were $0.46242 for the first three quarters and increased to $0.51000 for the fourth quarter. All capital gain dividends relate to Section 1231 gains, with both One Year Amounts and Three Year Amounts being zero for Section 1061 purposes.

Positive

• Increased Q4 dividend to $0.51 from $0.46242 in previous quarters
• Total annual dividend distribution of $1.89726 per share
• 32.08% of distribution classified as Return of Capital, which is tax-advantaged for shareholders

Negative

• No ordinary income component in dividend distribution, indicating possible lack of operating income

DALLAS, Jan. 30, 2025 /PRNewswire/ -- NexPoint Residential Trust, Inc. ("NXRT" or the "Company") (NYSE: NXRT) announced today the final income allocations of the Company's 2024 dividend distributions on its common stock. The final income allocations as they will be reported on Form 1099-DIV are set forth in the following table:  

Common Shares (CUSIP #65341D102)

Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)	Taxable Capital Gain Distr. Per Share (2)(3)	Unrecap. Sec. 1250 Gain Per Share	Return of Capital Per Share
3/14/2024	3/15/2024	3/28/2024	$0.46242	$0.00000	$0.31409	$0.19558	$0.14833
6/14/2024	6/14/2024	6/28/2024	$0.46242	$0.00000	$0.31409	$0.19558	$0.14833
9/13/2024	9/13/2024	9/30/2024	$0.46242	$0.00000	$0.31409	$0.19558	$0.14833
12/13/2024	12/13/2024	12/31/2024	$0.51000	$0.00000	$0.34641	$0.21571	$0.16359
		Totals	$1.89726   100.00%	$0.00000	$1.28868   67.92%	$0.80245	$0.60858   32.08%

(1) 100% of the amount reported as Taxable Ordinary Income is treated as a qualified REIT dividend for purposes of Section 199A

(2) The Section 897 Capital Gain amount is equal to 100% of the total Capital Gain Distribution capital gain distributions reported on Form 1099-DIV, for purposes of Section 1061. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests." The "One Year Amounts" and "Three Year Amounts" required to be disclosed are both zero with respect to the 2024 distributions, since all capital gain dividends relate to Section 1231 gains.

(3) Pursuant to Treasury Regulation §1.1061-6(c), NexPoint Residential Trust is disclosing additional information related to the capital gain distributions reported on Form 1099-DIV, for purposes of Section 1061. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests." The "One Year Amounts" and "Three Year Amounts" required to be disclosed are both zero with respect to the 2024 distributions, since all capital gain dividends relate to Section 1231 gains.

About NXRT

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience. More information about the Company is available at http://www.nxrt.nexpoint.com.

CONTACTS

Investor Relations
Kristen (Thomas) Giffith
IR@nexpoint.com

Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com

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SOURCE NexPoint Residential Trust, Inc.

FAQ

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

NXRT's total dividend distribution for 2024 was $1.89726 per share.

How much did NXRT increase its dividend in Q4 2024?

NXRT increased its quarterly dividend to $0.51 in Q4 2024, up from $0.46242 in previous quarters.

What percentage of NXRT's 2024 dividends was classified as Return of Capital?

32.08% of NXRT's 2024 dividend distributions was classified as Return of Capital.

What is the tax treatment of NXRT's capital gains distribution for 2024?

67.92% of NXRT's 2024 distributions were classified as Taxable Capital Gain Distribution, with all capital gains relating to Section 1231 gains.

When were NXRT's dividend payment dates in 2024?

NXRT's dividends were paid on March 28, June 28, September 30, and December 31, 2024.