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NETSTREIT Corp. (NYSE:NTST), a real estate investment trust based in Dallas, Texas, with a market capitalization of $1.16 billion, disclosed the tax treatment of its 2024 common stock distributions today. According to InvestingPro data, the company currently offers an attractive 5.78% dividend yield and has demonstrated strong revenue growth of 27.72% over the last twelve months. The company, which operates under the SIC code for Real Estate Investment Trusts, revealed specifics regarding the classification of dividends paid to shareholders in the past year. Based on InvestingPro’s Fair Value analysis, NETSTREIT appears to be slightly undervalued at current levels.
According to the announcement, the entirety of the dividends distributed on March 15, June 3, September 3, and December 2, 2024, were classified as ordinary dividends. The ordinary dividend percentages were 92.5159%, with the remaining 7.4841% of the distributions designated as non-dividend distributions. The records indicate that no portion of the dividends was classified as total capital gain.
In terms of the actual paid dividends, each distribution per share was $0.2050 for the first two payouts and $0.2100 for the latter two. The breakdown of the ordinary dividends and non-dividend distributions in dollar terms for each of the record dates and payable dates was provided, reflecting the percentages mentioned above.
The company’s filing with the Securities and Exchange Commission also confirmed that 100% of the ordinary dividends qualify for Section 199A dividends, which refers to the qualified business income deduction available to shareholders. However, none of the dividends were reported as qualified dividends. InvestingPro analysis reveals that NETSTREIT maintains a strong liquidity position with a current ratio of 5.83, indicating robust financial health. For deeper insights into NETSTREIT’s financial metrics and more exclusive ProTips, investors can access the comprehensive Pro Research Report, available to InvestingPro subscribers.
This information is crucial for shareholders of NETSTREIT Corp. as it affects their individual tax obligations. The classification of dividends impacts how they are taxed at the federal level, with ordinary dividends being taxed as ordinary income and qualified dividends eligible for a lower tax rate.
Investors should take note of these details for their personal tax planning and consult with their tax advisors to understand the implications fully. While the company has ensured compliance with IRS guidelines by providing these breakdowns, InvestingPro analysts anticipate the company will return to profitability this year, potentially affecting future dividend distributions. The company has ensured compliance with IRS guidelines by providing these breakdowns, which are based on the distributions made in the 2024 tax year.
This tax information for NETSTREIT Corp.’s 2024 common stock distributions is based on a press release statement made by the company.
In other recent news, Netstreit Corp . reported mixed results for the third quarter, with a net loss of $5.3 million, but a 3% year-over-year increase in Core Funds From Operations (Core FFO) reaching $24.9 million. The company maintains its guidance for the year, despite the net loss. Gross investments for the quarter hit a record $152 million, and the company declared a quarterly cash dividend of $0.21 per share.
Scotiabank (TSX:BNS) upgraded Netstreit shares from Sector Perform to Sector Outperform, projecting a 2-year compound annual growth rate (CAGR) for adjusted funds from operations per share (AFFOPS) at 4.5% from 2024E to 2026E. Raymond (NSE:RYMD) James, on the other hand, cut Netstreit’s stock target to $17 but maintained a Strong Buy rating.
Netstreit Corp. also announced the appointment of Sofia Chernylo as its new Senior Vice President and Chief Accounting Officer. The company plans to maintain an accretive acquisition spread and reduce tenant concentrations below 5%. These are recent developments in Netstreit Corp.’s operations and financial performance.
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