Uniti Group Inc. Announces Tax Reporting Information for 2024 Distributions

Rhea-AI Summary

Uniti Group (Nasdaq: UNIT) has released its tax reporting information for 2024 distributions. The company paid three quarterly distributions of $0.15 per share, totaling $0.45 per share for the year. The distributions are broken down as follows:

- $0.3882 per share as Ordinary Dividend (non-qualified dividend income)
- $0.0378 per share as Capital Gain Distribution
- $0.0240 per share as Nondividend Distribution

Additionally, $0.0273 of each distribution is classified as Section 897 Ordinary Dividends, and $0.0126 as Section 897 Capital Gains. The Ordinary Dividend portion qualifies as Section 199A Dividends.

Positive

• Maintained consistent quarterly dividend of $0.15 per share throughout 2024
• Total annual distribution of $0.45 per share to shareholders

Negative

• None.

Insights

Tax and REIT Financial Analyst

Uniti Group's 2024 tax distribution details reveal important insights for investors' tax planning. The REIT distributed $0.45 per share throughout 2024, maintaining a consistent quarterly distribution of $0.15. The classification breakdown shows that 86.3% of distributions were ordinary dividends, 8.4% capital gains and 5.3% nondividend distributions.

For investors' tax considerations:

• The ordinary dividend portion ($0.3882 per share) qualifies for the Section 199A deduction, potentially allowing eligible taxpayers to deduct up to 20% of this amount.
• Foreign investors should note that $0.0273 per distribution is classified as Section 897 Ordinary Dividends and $0.0126 as Section 897 Capital Gains, which are subject to FIRPTA (Foreign Investment in Real Property Tax Act) regulations.
• The nondividend distribution component ($0.0240 per share) is treated as a return of capital, reducing the investor's cost basis rather than being immediately taxable.

This tax-efficient distribution structure aligns with REIT requirements to distribute at least 90% of taxable income to shareholders. The high proportion of ordinary dividends suggests strong operational performance, while the return of capital component indicates some distributions came from non-taxable sources, potentially providing tax deferral benefits to long-term holders.

LITTLE ROCK, Ark., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today the tax treatment of its 2024 distributions. The following table summarizes the federal income tax treatment of the distributions on its common shares as it is expected to be reported on Form 1099 – DIV.

Common Stock CUSIP (91325V108)  

Record Date		Payment Date		Total Distribution Per Share			Ordinary Dividend Per Share			Capital Gain Distribution Per Share			Nondividend Distribution Per Share
12/15/23		1/04/24		$	0.1500		$	0.1294		$	0.0126		$	0.0080
3/28/24		4/12/24		$	0.1500		$	0.1294		$	0.0126		$	0.0080
6/14/24		6/28/24		$	0.1500		$	0.1294		$	0.0126		$	0.0080
		Total		$	0.4500		$	0.3882		$	0.0378		$	0.0240

Ordinary Dividend Per Share is non-qualified dividend income. The Ordinary Dividend Per Share will also be reported on Form 1099-DIV, Box 5, as Section 199A Dividends. $0.0273 of each distribution will be treated as Section 897 Ordinary Dividends. This amount will be reported on Form 1099-DIV, Box 2e and is also included in Ordinary Dividend Per Share. $0.0126 of each distribution will be treated as Section 897 Capital Gains. This amount will be reported on Form 1099-DIV, Box 2f and is also included in Capital Gain Distribution Per Share.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of fiber and other wireless solutions for the communications industry. As of September 30, 2024, Uniti owns approximately 144,000 fiber route miles, 8.7 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

INVESTOR AND MEDIA CONTACTS:

Paul Bullington, 251-662-1512
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com

Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com

FAQ

What is Uniti Group's (UNIT) total dividend distribution for 2024?

Uniti Group's total dividend distribution for 2024 was $0.45 per share, paid in three quarterly installments of $0.15 each.

How much of UNIT's 2024 distributions qualify as ordinary dividends?

$0.3882 per share of UNIT's 2024 distributions qualify as ordinary dividends (non-qualified dividend income).

What portion of UNIT's 2024 dividend is considered Capital Gain Distribution?

$0.0378 per share of UNIT's 2024 dividend is classified as Capital Gain Distribution.

How are UNIT's Section 897 dividends distributed in 2024?

For each distribution, $0.0273 is classified as Section 897 Ordinary Dividends and $0.0126 as Section 897 Capital Gains.

What is the payment schedule for UNIT's 2024 dividends?

UNIT paid dividends on January 4, April 12, and June 28, 2024, with respective record dates of December 15, 2023, March 28, 2024, and June 14, 2024.