Federal Realty outlines tax treatment of 2023 distributions

NORTH BETHESDA, Md. – Federal Realty (NYSE:) Investment Trust (NYSE:FRT) announced the tax categorization of its 2023 distributions for holders of its Common Shares and 5.000% Series C Cumulative Redeemable Preferred Shares. This information is crucial for shareholders to understand the tax implications of their investments.

For the Common Shares (CUSIP # 313745101), the total distribution per share was $4.33000 in 2023, with $3.55060 classified as taxable ordinary dividends. A portion of these dividends, amounting to $0.035506, qualifies for income tax purposes, while $0.12990 is designated as capital gains. Additionally, $0.64950 per share is considered nontaxable distributions.

The 5.000% Series C Cumulative Redeemable Preferred Shares (CUSIP # 313745200) saw a total distribution of $1.25000 per depositary share in 2023, with $1.212500 of that amount being taxable ordinary dividends and $0.037500 recognized as capital gains. The company clarifies that no foreign taxes were incurred on these distributions.

Federal Realty also disclosed that, according to Treasury Regulation Section 1.1061-6(c), both the “One Year Amounts Disclosure” and “Three Year Amounts Disclosure” for capital gain distributions are at zero percent for shareholders. These distributions are related to Section 1231 gain.

Federal Realty is known for its ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets. The trust has a history of delivering long-term growth by investing in areas with a high demand for retail space. Its portfolio includes urban, mixed-use neighborhoods like Santana Row in San Jose, Pike & Rose in North Bethesda, and Assembly Row in Somerville.

With a track record of increasing quarterly dividends for 56 consecutive years, Federal Realty stands out in the REIT industry. Its shares trade on the NYSE under the ticker FRT.

This financial update is based on a press release statement from Federal Realty Investment Trust .

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