#USA #Pasadena #Alexandria Real Estate #Tax Treatment #2024 Distributions

Alexandria Real Estate Equities, Inc. and Its 2024 Tax Distribution

In an announcement made on January 24, 2025, Alexandria Real Estate Equities, Inc. (NYSE: ARE) discussed the tax treatment for its distributions in the year 2024. This detailed information is crucial for shareholders as they navigate their tax obligations related to these distributions.

The company highlighted that stockholders should consult their tax advisors to understand the specific implications for their investments. The distribution details provide a complex breakdown of ordinary dividends, capital gains, and return of capital, all of which have different tax treatments under current regulations. This highlights the importance of understanding how each component can affect an investor's overall tax situation.

Distribution Details

According to the announcement, distributions for common stock and their corresponding tax classifications are separated into various categories:

1. Taxable Ordinary Dividends
2. Qualified Dividends
3. Capital Gains
4. Return of Capital

The distributions for 2024 are recorded as follows:

• - Record Date: December 29, 2023

Payment Date: January 12, 2024
Distribution Per Share: $1.270000
Taxable Ordinary (Box 1a): $0.833755
Qualified (Box 1b): $0
Total (Box 2a): $0.833755

This pattern continues with similar amounts allocated for the other quarterly distributions throughout the year, culminating in an overall distribution of $5.140000 for 2024. Notably, 65.65% of this amount is deemed taxable ordinary income for investors.

Important Tax Considerations

Section 897 Information: A significant point for international investors is the Section 897 treatment for gains on dispositions of U.S. real property interests, an important factor for those holding more than 10% of the stock in Alexandria. Non-U.S. stockholders need to be particularly mindful of these details, as they can substantially impact their tax filings.

Return of Capital: This distribution aspect signifies a return of shareholder investment rather than earnings, which can influence the taxation of these amounts in a different manner compared to regular dividends.

Conclusion

Overall, Alexandria Real Estate Equities, Inc. stands out as a pioneering company in the life science real estate sector, crafting vital ecosystems in key locations across the United States. Understanding the tax ramifications of their distributions can significantly benefit investors by informing them how these figures will impact their personal tax strategies. Shareholders are encouraged to keep an ongoing dialogue with tax professionals to ensure compliance and optimization of their financial outcomes. As Alexandria continues to make waves in the real estate market, their comprehensive tax disclosures are a testament to their commitment to shareholder transparency and fiscal responsibility.