Annual Distribution Requirements. The Company shall make quarterly distributions to its shareholders equal, on an annual basis, to at least 95% of the Company's REIT taxable income (computed without regard to the dividends paid deduction and any net capital gains).
Annual Distribution Requirements. To maintain Ventas’s qualification as a REIT, Ventas is required to distribute dividends, other than capital gain dividends, to Ventas’s stockholders each year in an amount at least equal to the sum of: • 90% of Xxxxxx’s REIT taxable income; and • 90% of Ventas’s after-tax net income, if any, from foreclosure property; minus • the excess of the sum of certain items of non-cash income over 5% of Ventas’s REIT taxable income. For these purposes, Xxxxxx’s REIT taxable income is computed without regard to the dividends paid deduction and Ventas’s net capital gain. In addition, for purposes of this test, non-cash income generally means income attributable to leveled stepped rents, original issue discount, cancellation of indebtedness, or a like-kind exchange that is later determined to be taxable. In addition, Xxxxxx’s REIT taxable income will be reduced by any taxes Ventas is required to pay on any gain Ventas recognizes from the disposition of any asset Ventas acquired from a corporation that is or has been a C corporation in a transaction in which Ventas’s tax basis in the asset is less than the fair market value of the asset, in each case determined as of the date on which Ventas acquired the asset, within the five- year period following Ventas’s acquisition of such asset, as described above in the section entitled “— General” beginning on page 90 of this proxy/prospectus. Generally, a taxpayer’s deduction for net business interest expense will generally be limited to 30% of its taxable income, as adjusted for certain items of income, gain, deduction or loss. Any business interest deduction that is disallowed due to this limitation may be carried forward to future taxable years, subject to special rules applicable to partnerships. If Ventas or any of Ventas’s subsidiary partnerships are subject to this interest expense limitation, Xxxxxx’s REIT taxable income for a taxable year may be increased. Taxpayers that conduct certain real estate businesses may elect not to have this interest expense limitation apply to them, provided that they use an alternative depreciation system to depreciate certain property. Ventas believes that it or any of its subsidiary partnerships that are subject to this interest expense limitation will be eligible to make this election. If such election is made, although Ventas or such subsidiary partnership, as applicable, would not be subject to the interest expense limitation described above, depreciation deductions may be reduced an...
Annual Distribution Requirements. In order to qualify as a REIT, we are required to distribute dividends, other than capital gain dividends, to our stockholders in an amount at least equal to:
