Newcastle Announces Treatment of 2006 Dividends

Download as PDF

NEW YORK, Jan. 29 /PRNewswire-FirstCall/ -- Newcastle Investment Corp. (NYSE: NCT) today announced the tax treatment of its 2006 common and preferred stock dividend payments.

Common Stock Dividends

During 2006, taxable dividends for Newcastle Investment Corp.'s common stock (CUSIP# 65105M-108) were $2.948008 per share. The portion of the fourth quarter 2005 common stock dividend which was not taxable for 2005 is treated as having been received by shareholders and taxable for 2006. No portion of the taxable 2006 common stock dividend relates to unrecaptured section 1250 capital gain. The following table summarizes the common stock dividends that are taxable for 2006.



                  Declare   Record    Pay       Cash
                   Date     Date      Date    Distribution

    4th Q 2005  12/15/05  12/30/05  01/30/06  0.625000
    1st Q 2006  03/15/06  04/03/06  04/28/06  0.625000
    2nd Q 2006  06/15/06  07/03/06  07/28/06  0.650000
    3rd Q 2006  09/14/06  10/02/06  10/31/06  0.650000
    4th Q 2006  12/14/06  12/29/06  01/30/07  0.690000

                Taxable                       Long-Term
                in 2006   Ordinary  Qualified Capital Gain

    4th Q 2005  0.333008  0.333008  0.000000  0.000000
    1st Q 2006  0.625000  0.625000  0.000000  0.000000
    2nd Q 2006  0.650000  0.650000  0.000000  0.000000
    3rd Q 2006  0.650000  0.650000  0.000000  0.000000
    4th Q 2006  0.690000  0.690000  0.000000  0.000000
        Totals  2.948008  2.948008  0.000000  0.000000


    Series B Preferred Stock Dividends

During 2006, taxable dividends for Newcastle Investment Corp.'s Series B preferred stock (CUSIP# 65105M-207) were $3.046875 per share. No portion of the fourth quarter 2005 Series B preferred stock dividend was taxable for 2005. The entire fourth quarter 2005 Series B preferred stock dividend is treated as having been received by shareholders and taxable for 2006. No portion of the taxable 2006 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 2006.



                           Declare      Record        Pay        Cash
                            Date         Date         Date    Distribution

    4th Q 2005            12/15/05     12/30/05     01/31/06     0.609375
    1st Q 2006            03/15/06     04/03/06     05/01/06     0.609375
    2nd Q 2006            06/15/06     07/03/06     07/31/06     0.609375
    3rd Q 2006            09/14/06     10/02/06     10/31/06     0.609375
    4th Q 2006            12/14/06     12/29/06     01/31/07     0.609375


                           Taxable                              Long-Term
                           in 2006     Ordinary    Qualified   Capital Gain

    4th Q 2005            0.609375     0.609375     0.000000      0.000000
    1st Q 2006            0.609375     0.609375     0.000000      0.000000
    2nd Q 2006            0.609375     0.609375     0.000000      0.000000
    3rd Q 2006            0.609375     0.609375     0.000000      0.000000
    4th Q 2006            0.609375     0.609375     0.000000      0.000000
        Totals            3.046875     3.046875     0.000000      0.000000



    Series C Preferred Stock Dividends

During 2006, taxable dividends for Newcastle Investment Corp.'s Series C preferred stock (CUSIP# 65105M-306) were $2.549167 per share. No portion of the fourth quarter 2005 Series C preferred stock dividend was taxable for 2005. The entire fourth quarter 2005 Series C preferred stock dividend is treated as having been received by shareholders and taxable for 2006. No portion of the taxable 2006 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 2006.



                           Declare     Record        Pay          Cash
                             Date       Date         Date      Distribution

    4th Q 2005            12/15/05     12/30/05     01/31/06     0.536667
    1st Q 2006            03/15/06     04/03/06     05/01/06     0.503125
    2nd Q 2006            06/15/06     07/03/06     07/31/06     0.503125
    3rd Q 2006            09/14/06     10/02/06     10/31/06     0.503125
    4th Q 2006            12/14/06     12/29/06     01/31/07     0.503125

                           Taxable                                  15%
                           in 2006     Ordinary    Qualified   Capital Gain

    4th Q 2005            0.536667     0.536667     0.000000     0.000000
    1st Q 2006            0.503125     0.503125     0.000000     0.000000
    2nd Q 2006            0.503125     0.503125     0.000000     0.000000
    3rd Q 2006            0.503125     0.503125     0.000000     0.000000
    4th Q 2006            0.503125     0.503125     0.000000     0.000000
        Totals            2.549167     2.549167     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 2006, 2.195% 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 the tax treatment of excess inclusion income.

About Newcastle

Newcastle Investment Corp. invests in real estate debt securities 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 Fortress Investment Group LLC, a global alternative investment and asset management firm with approximately $29.7 billion in assets under management. 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 29, 2007