Sotherly Hotels Inc. Announces Amended Dividend Tax Treatment

Sotherly Hotels (NASDAQ: SOHO) has issued an amendment to its previously released 2024 dividend tax classification for Series D preferred shares (CUSIP #83600C509).

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Sotherly Hotels (NASDAQ: SOHO) has issued an amendment to its previously released 2024 dividend tax classification for Series D preferred shares (CUSIP #83600C509). The amendment was necessary due to incorrect 'paid' and 'record' dates in the February 18, 2025 release. No portion of the dividends declared in 2024 represented foreign taxes or qualified dividend income.

Record holders will receive IRS Form 1099-DIV from Equiniti Trust Company, while shareholders with shares in 'street name' will receive IRS Form 1099 from their respective financial institutions. The tax classifications are based on preliminary results and, while subject to adjustment when filings are completed, no material changes are expected.

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WILLIAMSBURG, Va., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) is amending the estimated income tax classification information of the Company’s 2024 distributions on its Series D preferred shares (CUSIP #83600C509), which was previously released on February 18, 2025, due to the inclusion of incorrect “paid” and “record” dates in the release. The changes apply to only the Series D preferred shares portion of the release. The income tax classification of the 2024 distributions as it is expected to be reported on Form 1099-DIV is set forth in the following table:

SERIES B PREFERRED SHARES
		Total		Taxable		Nontaxable
Record	Paid	Cash Distribution		Ordinary		Distribution		Sec 199A
Date	Date	Per Share		Income		(Return of Capital)		Dividends
02/29/2024	03/15/2024	0.500000		0.500000		0.000000		0.500000
05/31/2024	06/17/2024	0.500000		0.500000		0.000000		0.500000
08/30/2024	09/16/2024	0.500000		0.500000		0.000000		0.500000
11/29/2024	12/16/2024	0.500000		0.500000		0.000000		0.500000
TOTAL		2.000000		2.000000		0.000000		2.000000
Percent		100.0000%		100.0000%		0.0000%		100.0000%
The CUSIP number for Sotherly Hotels Inc.'s Series B Preferred Shares is 83600C301.
SERIES C PREFERRED SHARES
		Total		Taxable		Nontaxable
Record	Paid	Cash Distribution		Ordinary		Distribution		Sec 199A
Date	Date	Per Share		Income		(Return of Capital)		Dividends
02/29/2024	03/15/2024	0.492188		0.492188		0.000000		0.492188
05/31/2024	06/17/2024	0.492188		0.492188		0.000000		0.492188
08/30/2024	09/16/2024	0.492188		0.492188		0.000000		0.492188
11/29/2024	12/16/2024	0.492188		0.492188		0.000000		0.492188
TOTAL		1.968752		1.968752		0.000000		1.968752
Percent		100.0000%		100.0000%		0.0000%		100.0000%
The CUSIP number for Sotherly Hotels Inc.'s Series C Preferred Shares is 83600C400.
SERIES D PREFERRED SHARES
		Total		Taxable		Nontaxable
Record	Paid	Cash Distribution		Ordinary		Distribution		Sec 199A
Date	Date	Per Share		Income		(Return of Capital)		Dividends
02/29/2024	03/15/2024	0.515625		0.515625		0.000000		0.515625
05/31/2024	06/17/2024	0.515625		0.515625		0.000000		0.515625
08/30/2024	09/16/2024	0.515625		0.515625		0.000000		0.515625
11/29/2024	12/16/2024	0.515625		0.515625		0.000000		0.515625
TOTAL		2.062500		2.062500		0.000000		2.062500
Percent		100.0000%		100.0000%		0.0000%		100.0000%

The CUSIP number for Sotherly Hotels Inc.'s Series D Preferred Shares is 83600C509.

No portion of the dividends declared in 2024 represented foreign taxes or qualified dividend income. Record holders of the Company’s common shares who received any of the dividends specified in the table above will receive an Internal Revenue Service (IRS) Form 1099-DIV from Equiniti Trust Company, LLC (formerly, American Stock Transfer & Trust Company), the Company’s dividend paying agent. The Form 1099-DIV will report the dividends paid with respect to 2024. Shareholders whose shares are held in “street name” will receive an IRS Form 1099 from the bank, brokerage firm or other nominee holding their shares.

The information in the table above is based on the preliminary results of work on the tax filings of the Company and is subject to correction or adjustment when the filings are completed. No material change in these classifications is expected. The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders are encouraged to consult with their own tax advisors regarding the specific federal, state, local, foreign and other tax consequences of ownership of the common shares of Sotherly Hotels Inc. and the specific tax treatment of distributions therefrom.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company’s portfolio consists of investments in twelve hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Marriott International, Inc., and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.

FAQ

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What changes were made to Sotherly Hotels' (SOHO) 2024 dividend tax classification?

Sotherly Hotels amended its 2024 dividend tax classification for Series D preferred shares due to incorrect 'paid' and 'record' dates in the February 18, 2025 release.

Do SOHO's 2024 dividends include any foreign taxes or qualified dividend income?

No, none of the dividends declared by Sotherly Hotels in 2024 represented foreign taxes or qualified dividend income.

How will SOHO shareholders receive their tax information for 2024 dividends?

Record holders will receive IRS Form 1099-DIV from Equiniti Trust Company, while shareholders with shares in 'street name' will receive IRS Form 1099 from their bank or broker.

Are the 2024 tax classifications for SOHO dividends final?

No, the classifications are based on preliminary results and subject to adjustment, though no material changes are expected.