PS Business Parks, Inc. Announces Tax Treatment of 2017 Dividends

PS Business Parks, Inc. (NYSE:PSB) announced today the tax treatment of the Company’s 2017 dividends. For the tax year ended December 31, 2017, distributions for the common stock and all the various series of preferred stock were classified as follows:

2017

1^st Quarter     2^nd Quarter     3^rd Quarter     4^th Quarter Ordinary Income 100.0000% 97.9825%

100.0000%

85.4341%

Long-Term Capital Gain 0.0000% 2.0175%

0.0000%

14.5659%

Total 100.0000% 100.0000%

100.0000%

100.0000%

 

The ordinary income dividends do not constitute “qualified dividend income.”

For the second quarter of 2017, the percentage of the long-term capital gain that constitutes unrecaptured section 1250 gain is 75.9804%. Corporate shareholders subject to IRC §291 should treat 20% of the unrecaptured section 1250 gain as ordinary income.

This release is based on the preliminary results of work on the Company’s tax filings and is subject to correction or adjustment when the filings are completed. The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company’s distributions. No material change in this classification is expected.

Alternative Minimum Tax

Alternative minimum tax adjustments are to be apportioned between a real estate investment trust (“REIT”) and its shareholders under Internal Revenue Code Section 59(d). Although regulations have not yet been issued under that provision, based on regulations issued pursuant to a similar provision of prior law and the legislative history of the current provision, it appears that such alternative minimum tax adjustments are to be apportioned to a REIT’s shareholders to the extent that the REIT distributes its regular taxable income. It is the Company’s policy to distribute all of its regular taxable income and accordingly, all of the Company’s alternative minimum tax adjustments are being apportioned to the Company’s shareholders.