SUNSTONE HOTEL INVESTORS ANNOUNCES TAX TREATMENT OF 2025 DIVIDENDS

Sunstone Hotel Investors (NYSE: SHO) disclosed the tax characterization of its 2025 distributions for common stock and Series H and I preferred stock.

Rhea-AI Summary

Sunstone Hotel Investors (NYSE: SHO) disclosed the tax characterization of its 2025 distributions for common stock and Series H and I preferred stock. Each quarterly distribution equals $0.090 for common stock and $0.382813 (Series H) / $0.356250 (Series I) per share. The company reported the portion taxable in 2025 versus other years and provided ordinary dividend and capital gain breakdowns, including unrecaptured Section 1250 and Section 199A amounts where applicable. Stockholders are advised to consult a personal tax advisor about their individual tax treatment.

Positive

• Clear per-share distribution amounts: Common $0.090, Series H $0.382813, Series I $0.35625
• Detailed tax characterization provided for each payment date, including ordinary dividend and capital gain breakdowns

Negative

• Common stock distributions include portions taxable in different years, creating cross-year tax reporting complexity
• Taxable ordinary dividend portion is the majority of each payment (e.g., $0.054448 of common $0.09)

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ALISO VIEJO, Calif., Jan. 30, 2026 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced the following tax treatment of the 2025 distributions to holders of the Company's common stock and Series H and Series I preferred stock.

Record	Payable	Total Distribution	Taxable	Ordinary	Total Capital Gain	Unrecaptured Section	Section 199A	Taxable
Date	Date	Per Share	in 2025	Dividends	Distribution	1250 Gain	Dividends	in 2026
Common Stock - Ticker Symbol: SHO / CUSIP: 867892101
12/31/2024	1/15/2025	$0.090000	$0.060000	$0.054448	$0.005552	$0.004863	$0.054448	$0.000000
3/31/2025	4/15/2025	$0.090000	$0.090000	$0.081673	$0.008327	$0.007295	$0.081673	$0.000000
6/30/2025	7/15/2025	$0.090000	$0.090000	$0.081673	$0.008327	$0.007295	$0.081673	$0.000000
9/30/2025	10/15/2025	$0.090000	$0.090000	$0.081673	$0.008327	$0.007295	$0.081673	$0.000000
12/31/2025	1/15/2026	$0.090000	$0.060000	$0.054448	$0.005552	$0.004863	$0.054448	$0.030000
Series H Preferred Stock - Ticker Symbol: SHO PR H / CUSIP: 867892804
3/31/2025	4/15/2025	$0.382813	$0.382813	$0.347393	$0.035420	$0.031027	$0.347393	$0.000000
6/30/2025	7/15/2025	$0.382813	$0.382813	$0.347393	$0.035420	$0.031027	$0.347393	$0.000000
9/30/2025	10/15/2025	$0.382813	$0.382813	$0.347393	$0.035420	$0.031027	$0.347393	$0.000000
12/31/2025	1/15/2026	$0.382813	$0.382813	$0.347393	$0.035420	$0.031027	$0.347393	$0.000000
Series I Preferred Stock - Ticker Symbol: SHO PR I / CUSIP: 867892887
3/31/2025	4/15/2025	$0.356250	$0.356250	$0.323288	$0.032962	$0.028874	$0.323288	$0.000000
6/30/2025	7/15/2025	$0.356250	$0.356250	$0.323288	$0.032962	$0.028874	$0.323288	$0.000000
9/30/2025	10/15/2025	$0.356250	$0.356250	$0.323288	$0.032962	$0.028874	$0.323288	$0.000000
12/31/2025	1/15/2026	$0.356250	$0.356250	$0.323288	$0.032962	$0.028874	$0.323288	$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, was 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.

The common stock distribution of $0.090000 per share payable on January 15, 2026, to holders of record as of December 31, 2025, will be treated as paid in two tax years for income tax purposes, with approximately 66.67%, or $0.060000 per share, taxable in 2025 and approximately 33.33%, or $0.030000 per share, taxable in 2026.

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-2025-dividends-302674742.html

SOURCE Sunstone Hotel Investors, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What tax treatment did Sunstone Hotel Investors (SHO) report for the common stock 2025 distributions?

The company reported split-year taxation for common 2025 distributions, with $0.060 taxable in 2025 and $0.030 taxable in another year. According to the company, each $0.090 payment is broken into ordinary dividend and capital gain components for accurate shareholder reporting.

How much of the January 15, 2026 common distribution (SHO) is taxable in 2026?

Approximately $0.030 per common share of the January 15, 2026 payment is taxable in 2026. According to the company, the remaining $0.060 is taxable in 2025, reflecting a two-tax-year treatment for that distribution.

What are the ordinary dividend and capital gain components for SHO Series H preferred dividends in 2025?

Each Series H quarterly distribution of $0.382813 contains about $0.347393 in ordinary dividends and $0.035420 in capital gain. According to the company, those breakdowns apply to each payable quarter reported in 2025.

Do SHO Series I preferred dividends include Section 199A or unrecaptured Section 1250 amounts?

Series I distributions show ordinary dividend and Section 199A components but no taxable amount in 2026. According to the company, each $0.356250 payment lists $0.323288 ordinary, $0.032962 total capital gain, and $0.028874 unrecaptured 1250 gain.

How should shareholders prepare for tax reporting of SUNSTONE (SHO) distributions for 2025?

Shareholders should track per-share breakdowns and tax-year allocations for each payable date to report correctly. According to the company, consulting a personal tax advisor is recommended given split-year treatment and mixed ordinary/capital gain components.