KKR Financial Corp. Provides Tax Information for 2005 Dividend Payments on Its Website
February 01 2006 - 4:13PM
PR Newswire (US)
SAN FRANCISCO, Feb. 1 /PRNewswire-FirstCall/ -- KKR Financial Corp.
(NYSE:KFN) announced today that the Company has posted to the
Investor Relations section of the Company's website
(http://www.kkrfinancial.com/) a schedule of the quarterly record
dates, payment dates and tax information for the dividends that the
Company paid in 2005. Tax Information For tax reporting purposes,
dividends declared and paid in 2005 on the Company's common stock
total $0.97 per share. No portion of the dividends is considered a
return of capital or long term capital gain. All dividends are
fully (100%) taxable at ordinary rates to shareholders and no
portion of the dividends are eligible for the 15% dividend tax rate
or the corporate dividends received deduction. Shareholders should
check their 2005 tax statements received from the transfer agent or
from brokerage firms in order to ensure that the dividend tax
information for the Company reported on such statements conforms to
the information reported herein. Excess Inclusion Income For
shareholders that are tax-exempt, or non-U.S. corporations or
residents, or U.S. taxpayers, you may be required to report a
portion of the Company's dividends to the IRS as "Excess Inclusion
Income." - Tax-exempt shareholders will be required to treat excess
inclusion income as unrelated business taxable income (commonly
referred to as UBTI); - Non-U.S. shareholders will be subject to
the 30 percent U.S. federal withholding tax on this excess
inclusion income without reduction under any otherwise applicable
income tax treaty; and - U.S. shareholders, including taxpaying
entities, must report taxable income that in no event will be less
than the amount of excess inclusion income. The Company expects
that a portion of the 2005 dividends will include Excess Inclusion
Income, and the Company will provide this information on its
website when it is available. AMT Adjustments and Tax Preference
Items There are special rules regarding the applicability of the
alternative minimum tax (AMT) to REITs. Under these rules, items
that are treated differently for regular tax and AMT purposes,
namely the "AMT Adjustments and Tax Preference Items", should be
apportioned between the REIT and its shareholders. As a result of
these special rules, the Company expects that a portion of the 2005
dividends will include AMT Adjustments and Tax Preference Items,
and the Company will provide this information on its website when
it is available. Tax Disclaimer The sections entitled "Tax
Information", "Excess Inclusion Income", and "AMT Adjustments and
Tax Preference Items" above should not be construed as tax advice
and are not a substitute for careful tax planning. You should
consult your own tax advisor regarding the specific federal, state,
local, foreign and other tax consequences to you regarding your
ownership of shares of the Company's common stock. About KKR
Financial Corp. Additional information regarding KKR Financial
Corp. is available at the Company's website,
http://www.kkrfinancial.com/. KKR Financial Corp. is a specialty
finance company that invests in multiple asset classes and uses
leverage to generate competitive leveraged risk-adjusted returns.
The Company currently makes investments in the following asset
classes: (i) residential mortgage loans and mortgage-backed
securities; (ii) corporate loans and debt securities; (iii)
commercial real estate loans and debt securities; (iv) asset-backed
securities; and (v) equity securities. The Company also makes
opportunistic investments in other asset classes from time to time.
The Company was organized as a Maryland corporation on July 7,
2004, and commenced operations on August 12, 2004. The Company is
structured as a real estate investment trust and KKR Financial
Advisors LLC manages the Company pursuant to a management
agreement. KKR Financial Corp. and KKR Financial Advisors LLC are
affiliates of Kohlberg Kravis Roberts & Co. L.P. Statements in
this press release which are not historical fact may be deemed
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Although KKR Financial Corp. believes the expectations
reflected in any forward-looking statements are based on reasonable
assumptions, the Company can give no assurance that its
expectations will be attained. Factors that could cause actual
results to differ materially from the Company's expectations
include completion of pending investments, continued ability to
originate new investments, the mix of originations and prepayment
levels, the availability and cost of capital for future
investments, competition within the specialty finance sector,
economic conditions, credit loss experience, and other risks
disclosed from time to time in the Company's filings with the
Securities and Exchange Commission. CONTACT: Investors Laurie Poggi
KKR Financial LLC 415-315-3718 Media Roanne Kulakoff/Joseph Kuo
Kekst and Company 212-521-4837/4863 First Call Analyst: FCMN
Contact: laurie.poggi@kkr.com DATASOURCE: KKR Financial Corp.
CONTACT: Investors, Laurie Poggi of KKR Financial, +1-415-315-3718;
or Media, Roanne Kulakoff, +1-212-521-4837, or Joseph Kuo,
+1-212-521-4863, both of Kekst and Company, for KKR Financial Corp.
Web site: http://www.kkrfinancial.com/
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