SUNSTONE HOTEL INVESTORS ANNOUNCES TAX TREATMENT OF 2024 DIVIDENDS

Rhea-AI Summary

Sunstone Hotel Investors (NYSE: SHO) has announced the tax treatment of its 2024 distributions for common and preferred stockholders. For common stock (SHO), quarterly dividends were $0.07 per share in Q1, increasing to $0.09 per share for Q2-Q4. The Q4 dividend payable on January 15, 2025, will be split for tax purposes: 33.33% ($0.03) taxable in 2024 and 66.67% ($0.06) taxable in 2025.

For preferred stockholders, Series H (SHO PR H) maintained consistent quarterly distributions of $0.382813 per share, while Series I (SHO PR I) distributed $0.356250 per share quarterly. All distributions qualify as Section 199A dividends, except for the portion of the common stock's Q4 dividend taxable in 2025.

Positive

• Increased common stock dividend from $0.07 to $0.09 per share in Q2 2024
• Maintained stable preferred stock distributions throughout 2024
• All distributions qualify as Section 199A dividends for 2024 tax year

Negative

• None.

ALISO VIEJO, Calif., Jan. 30, 2025 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced the following tax treatment of the 2024 distributions to holders of the Company's common stock and Series H and Series I preferred stock.

Record Date	Payable Date	Total Distribution Per Share	Taxable in 2024	Ordinary Dividends	Section 199A Dividends	Taxable in 2025
Common Stock - Ticker Symbol: SHO / CUSIP: 867892101
3/28/2024	4/15/2024	$0.070000	$0.070000	$0.070000	$0.070000	$0.000000
6/28/2024	7/15/2024	$0.090000	$0.090000	$0.090000	$0.090000	$0.000000
9/30/2024	10/15/2024	$0.090000	$0.090000	$0.090000	$0.090000	$0.000000
12/31/2024	1/15/2025	$0.090000	$0.030000	$0.030000	$0.030000	$0.060000
Series H Preferred Stock - Ticker Symbol: SHO PR H / CUSIP: 867892804
3/28/2024	4/15/2024	$0.382813	$0.382813	$0.382813	$0.382813	$0.000000
6/28/2024	7/15/2024	$0.382813	$0.382813	$0.382813	$0.382813	$0.000000
9/30/2024	10/15/2024	$0.382813	$0.382813	$0.382813	$0.382813	$0.000000
12/31/2024	1/15/2025	$0.382813	$0.382813	$0.382813	$0.382813	$0.000000
Series I Preferred Stock - Ticker Symbol: SHO PR I / CUSIP:  867892887
3/28/2024	4/15/2024	$0.356250	$0.356250	$0.356250	$0.356250	$0.000000
6/28/2024	7/15/2024	$0.356250	$0.356250	$0.356250	$0.356250	$0.000000
9/30/2024	10/15/2024	$0.356250	$0.356250	$0.356250	$0.356250	$0.000000
12/31/2024	1/15/2025	$0.356250	$0.356250	$0.356250	$0.356250	$0.000000

The common stock distribution of $0.090000 per share payable on January 15, 2025, to holders of record as of December 31, 2024, will be treated as paid in two tax years for income tax purposes, with approximately 33.33%, or $0.030000 per share, taxable in 2024 and approximately 66.67%, or $0.060000 per share, taxable in 2025.

Stockholders are encouraged to consult with a personal tax advisor regarding their specific tax treatment of the Company's distributions. 

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT"). Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership and disposition of well-located hotel and resort real estate. For further information, please visit Sunstone's website at www.sunstonehotels.com. 

For Additional Information

Aaron Reyes
Chief Financial Officer
Sunstone Hotel Investors, Inc.
(949) 382-3018

View original content:https://www.prnewswire.com/news-releases/sunstone-hotel-investors-announces-tax-treatment-of-2024-dividends-302364064.html

SOURCE Sunstone Hotel Investors, Inc.

FAQ

What is the quarterly dividend amount for Sunstone Hotel (SHO) common stock in 2024?

SHO paid $0.07 per share in Q1 2024 and $0.09 per share in Q2-Q4 2024.

How is SHO's Q4 2024 dividend taxed between 2024 and 2025?

The Q4 dividend of $0.09 is split with $0.03 (33.33%) taxable in 2024 and $0.06 (66.67%) taxable in 2025.

What are the dividend amounts for Sunstone's Series H preferred shares in 2024?

Series H preferred shares (SHO PR H) received quarterly distributions of $0.382813 per share throughout 2024.

What are the dividend amounts for Sunstone's Series I preferred shares in 2024?

Series I preferred shares (SHO PR I) received quarterly distributions of $0.356250 per share throughout 2024.

Do Sunstone Hotel's 2024 distributions qualify for Section 199A dividends?

Yes, all 2024 distributions qualify as Section 199A dividends, except for the portion of Q4 common stock dividend taxable in 2025.