Farmland Partners Announces Tax Treatment of 2023 Distributions

By: Farmland Partners Inc. via Business Wire

February 13, 2024 at 16:30 PM EST

Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced the tax treatment of our 2023 common stock distributions, as summarized in the following table.

Farmland Partners Inc.

CUSIP: 31154R109

EIN: 46-3769850

Farmland Partners Inc. 2023 Dividend Treatment

Common Stock

							Dividends				Capital Gains
Declaration Date	Payment Date	Record Date	Distribution Per Share		Distribution Per Share Allocable to 2023		Taxable Ordinary (Box 1a)		Qualified (Box 1b) (1)		Total (Box 2a)		Unrecaputured Section 1250 (Box 2b)		Return of Capital (Box 3) (2)		Section 199A (Box 5) (1)
10/24/2022	1/17/2023	1/2/2023	$	0.060000	$	0.060000	$	-	$	-	$	0.060000	$	-	$	-	$	-
2/21/2023	4/17/2023	4/1/2023	$	0.060000	$	0.060000	$	-	$	-	$	0.060000	$	-	$	-	$	-
5/3/2023	7/17/2023	7/1/2023	$	0.060000	$	0.060000	$	-	$	-	$	0.060000	$	-	$	-	$	-
7/25/2023	10/16/2023	10/1/2023	$	0.060000	$	0.060000	$	-	$	-	$	0.060000	$	-	$	-	$	-
12/12/2023	1/12/2024	12/29/2023	$	0.210000	$	0.170342	$	-	$	-	$	0.170342	$	-	$	-	$	-
			$	0.450000	$	0.410342	$	-	$	-	$	0.410342	$	-	$	-	$	-


Footnotes:
(1) Qualified dividends and Section 199A dividends are a subset of, and included in, the taxable ordinary dividend amount.
(2) Return of capital represents a return of stockholder investment.

The special dividend of $0.21 per share declared in December for shareholders of record as of December 29, 2023, and paid on or around January 12, 2024, is a split-year distribution with $0.17 per share considered a distribution made in 2023 for federal income tax purposes¹.

Pursuant to Treas. Reg. § 1.1061-4(b)(7)(i), the capital gains shown in box 2(a) are determined under Section 1231 and are excluded from “applicable partnership interest” disclosures.

In 2023, there was no “Box 3 Nondividend Distribution” on form 1099-DIV, and therefore no requirement to file Form 8937.

The Nareit REIT 1099-DIV Spreadsheet is available for download under the heading “2023 Dividend Information” at this link: https://ir.farmlandpartners.com/resources/IRS-Forms/default.aspx.

Stockholders are encouraged to consult with their tax advisors as to the specific tax treatment of the distributions they received from us.

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.

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¹ The REIT declared a dividend in December 2023, payable to shareholders of record as of December 29, 2023. In accordance with IRC §857(b)(9) the dividend deemed paid in 2023 is limited to the remaining 2023 earnings & profits and the balance is considered distributed in 2024.