Newcastle Announces Treatment of 2007 Dividends
NEW YORK, Jan. 31 /PRNewswire-FirstCall/ -- Newcastle Investment Corp. (NYSE: NCT) today announced the tax treatment of its 2007 common and preferred stock dividend payments.
Common Stock Dividends
During 2007, taxable dividends for Newcastle Investment Corp.'s common stock (CUSIP# 65105M-108) were $2.850000 per share. The entire fourth quarter 2006 common stock dividend was treated as having been received by shareholders and taxable for 2006. The entire fourth quarter 2007 common stock dividend is treated as having been received by shareholders and taxable for 2007. No portion of the taxable 2007 common stock dividend relates to unrecaptured section 1250 capital gain. The following table summarizes the common stock dividends that are taxable for 2007.
Declaration Record Pay Cash
Date Date Date Distribution
4th Q 2006 12/14/06 12/29/06 01/30/07 0.690000
1st Q 2007 03/15/07 04/02/07 04/30/07 0.690000
2nd Q 2007 06/14/07 07/02/07 07/30/07 0.720000
3rd Q 2007 09/13/07 10/01/07 10/30/07 0.720000
4th Q 2007 12/13/07 12/31/07 01/30/08 0.720000
Taxable Long-Term
in 2007 Ordinary Qualified Capital Gain
4th Q 2006 0.000000 0.000000 0.000000 0.000000
1st Q 2007 0.690000 0.690000 0.000000 0.000000
2nd Q 2007 0.720000 0.720000 0.000000 0.000000
3rd Q 2007 0.720000 0.720000 0.000000 0.000000
4th Q 2007 0.720000 0.720000 0.000000 0.000000
Totals 2.850000 2.850000 0.000000 0.000000
Series B Preferred Stock Dividends
During 2007, taxable dividends for Newcastle Investment Corp.'s Series B
preferred stock (CUSIP# 65105M-207) were $2.437500 per share. The entire
fourth quarter 2006 Series B preferred stock dividend was treated as having
been received by shareholders and taxable for 2006. The entire fourth quarter
2007 Series B preferred stock dividend is treated as having been received by
shareholders and taxable for 2007. No portion of the taxable 2007 Series B
preferred stock dividend relates to unrecaptured section 1250 capital gain.
The following table summarizes the Series B preferred stock dividends that are
taxable for 2007.
Declaration Record Pay Cash
Date Date Date Distribution
4th Q 2006 12/14/06 12/29/06 01/31/07 0.609375
1st Q 2007 03/15/07 04/02/07 04/30/07 0.609375
2nd Q 2007 06/14/07 07/02/07 07/31/07 0.609375
3rd Q 2007 09/13/07 10/01/07 10/31/07 0.609375
4th Q 2007 12/13/07 12/31/07 01/31/08 0.609375
Taxable Long-Term
in 2007 Ordinary Qualified Capital Gain
4th Q 2006 0.000000 0.000000 0.000000 0.000000
1st Q 2007 0.609375 0.609375 0.000000 0.000000
2nd Q 2007 0.609375 0.609375 0.000000 0.000000
3rd Q 2007 0.609375 0.609375 0.000000 0.000000
4th Q 2007 0.609375 0.609375 0.000000 0.000000
Total 2.437500 2.437500 0.000000 0.000000
Series C Preferred Stock Dividends
During 2007, taxable dividends for Newcastle Investment Corp.'s Series C
preferred stock (CUSIP# 65105M-306) were $2.012500 per share. The entire
fourth quarter 2006 Series C preferred stock dividend was treated as having
been received by shareholders and taxable for 2006. The entire fourth quarter
2007 Series C preferred stock dividend is treated as having been received by
shareholders and taxable for 2007. No portion of the taxable 2007 Series C
preferred stock dividend relates to unrecaptured section 1250 capital gain.
The following table summarizes the Series C preferred stock dividends that are
taxable for 2007.
Declaration Record Pay Cash
Date Date Date Distribution
4th Q 2006 12/14/06 12/29/06 01/31/07 0.503125
1st Q 2007 03/15/07 04/02/07 04/30/07 0.503125
2nd Q 2007 06/14/07 07/02/07 07/31/07 0.503125
3rd Q 2007 09/13/07 10/01/07 10/31/07 0.503125
4th Q 2007 12/13/07 12/31/07 01/31/08 0.503125
Taxable 15 %
in 2007 Ordinary Qualified Capital Gain
4th Q 2006 0.000000 0.000000 0.000000 0.000000
1st Q 2007 0.503125 0.503125 0.000000 0.000000
2nd Q 2007 0.503125 0.503125 0.000000 0.000000
3rd Q 2007 0.503125 0.503125 0.000000 0.000000
4th Q 2007 0.503125 0.503125 0.000000 0.000000
Total 2.012500 2.012500 0.000000 0.000000
Series D Preferred Stock Dividends
During 2007, taxable dividends for Newcastle Investment Corp.'s Series D preferred stock (CUSIP# 65105M-405) were $1.837848 per share. The entire fourth quarter 2007 Series D preferred stock dividend is treated as having been received by shareholders and taxable for 2007. No portion of the taxable 2007 Series D preferred stock dividend relates to unrecaptured section 1250 capital gain. The following table summarizes the Series D preferred stock dividends that are taxable for 2007.
Declaration Record Pay Cash
Date Date Date Distribution
2nd Q 2007 06/14/07 07/02/07 07/31/07 0.790972
3rd Q 2007 09/13/07 10/01/07 10/31/07 0.523438
4th Q 2007 12/13/07 12/31/07 01/31/08 0.523438
Taxable 15 %
in 2007 Ordinary Qualified Capital Gain
2nd Q 2007 0.790972 0.790972 0.000000 0.000000
3rd Q 2007 0.523438 0.523438 0.000000 0.000000
4th Q 2007 0.523438 0.523438 0.000000 0.000000
Totals 1.837848 1.837848 0.000000 0.000000
Tax exempt, non-U.S. and certain other stockholders may be required to report a portion of Newcastle Investment Corp.'s dividend as excess inclusion income.
Of the amounts indicated above as taxable for 2007, 4.12687% may be classified as "excess inclusion income". Excess inclusion income is treated as unrelated business taxable income for tax-exempt stockholders, and is generally subject to a 30% Federal withholding tax (without reduction under any otherwise applicable tax treaty) for non-U.S. stockholders. U.S. stockholders may not use net operating losses to offset excess inclusion income. Please consult your tax advisor regarding the proper tax treatment of excess inclusion income.
The data provided in this press release is provided for informational purposes only and does not constitute tax advice. Stockholders are urged to consult their own tax advisors regarding any issues or decisions regarding the proper tax treatment of their shares of Newcastle Investment Corp.
About Newcastle
Newcastle Investment Corp. invests in real estate debt and other real estate related assets. Newcastle is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes. Newcastle is managed by an affiliate of Fortress Investment Group LLC, a global alternative investment and asset management firm with approximately $40 billion in assets under management as of September 30, 2007. For more information regarding Newcastle Investment Corp. or to be added to our e-mail distribution list, please visit www.newcastleinv.com.
SOURCE Newcastle Investment Corp.
Released January 31, 2008