All of the 2017 distributions of cash and Granite Point common stock will have the same tax treatment characterization percentages. The company currently estimates that each cash distribution and the distribution of Granite Point common stock will be characterized for Federal income tax purposes as 35.98% ordinary dividends, 0.00% capital gain distributions, and 64.02% nondividend distributions.
|2017 FORM 1099||Box 1a Total||Box 2a Total||Box 3 Total|
|Distribution Type||Declaration Date||Record Date||Payable Date||2017 Total Distribution Per Share||2017 Ordinary Dividends||2017 Capital Gain Distributions||2017 Nondividend Distributions|
|Granite Point Common Stock||09/14/2017||10/20/2017||11/01/2017||$1.779688||$0.640400||$0.000000||$1.139289|
The company intends to report the distribution of Granite Point common stock as a taxable distribution for U.S. federal income tax purposes. Common stockholders will be treated as receiving a distribution equal to the fair market value of the Granite Point common stock (and cash in lieu of fractional shares of such common stock) received in the distribution and will take an adjusted tax basis, for federal income tax purposes, in such shares equal to the "fair market value" of such shares based on the market price on the distribution date. For federal income tax purposes, the fair market value of the Granite Point common stock is the closing price on November 1, 2017, which was $18.78 per share. In late January 2018, the company intends to issue Form 8937 to report the Granite Point common stock tax basis distributed to Two Harbors common stockholders.Consult Your Tax Advisor Stockholders may have additional reporting obligations to the Internal Revenue Service and/or other tax authorities. The U.S. federal income tax treatment of holding Two Harbors common stock to any particular stockholder will depend on the stockholder's particular tax circumstances. You are urged to consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you, in light of your particular investment or tax circumstances, of acquiring, holding and disposing of Two Harbors common stock. Two Harbors does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein. Two Harbors Investment Corp. Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in New York, New York, and is externally managed and advised by PRCM Advisers LLC, a wholly owned subsidiary of Pine River Capital Management L.P. Additional information is available at www.twoharborsinvestment.com. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including with respect to tax matters. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "target," "assume," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Two Harbors does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Two Harbors' most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward looking statements concerning Two Harbors or matters attributable to Two Harbors or any person are qualified by these cautionary statements.Additional Information Stockholders of Two Harbors and other interested persons may find additional information regarding the company at the Securities and Exchange Commission's Internet site at www.sec.gov or by directing requests to: Two Harbors Investment Corp., 590 Madison Avenue, 36 th floor, New York, NY 10022, telephone 612-629-2500.