Sotherly Hotels Inc. Announces Dividend Tax Treatment
Sotherly Hotels (NASDAQ: SOHO) has released its estimated income tax classification for 2024 distributions on its preferred shares Series B, C, and D. The company's dividends are classified as 100% taxable ordinary income and qualify as Section 199A dividends.
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Rhea-AI Summary
Sotherly Hotels (NASDAQ: SOHO) has released its estimated income tax classification for 2024 distributions on its preferred shares Series B, C, and D. The company's dividends are classified as 100% taxable ordinary income and qualify as Section 199A dividends.
For Series B preferred shares, quarterly distributions of $0.50 per share totaled $2.00 annually. Series C preferred shares received $0.492188 quarterly, totaling $1.968752 for the year. Series D preferred shares had quarterly payments of $0.515625, amounting to $2.0625 annually.
No portion of the 2024 dividends represented foreign taxes or qualified dividend income. Shareholders will receive IRS Form 1099-DIV from Equiniti Trust Company for direct holdings, while those with shares in 'street name' will receive forms from their respective financial institutions.
Positive
- Consistent quarterly dividend payments maintained across all preferred share series
- 100% of distributions qualify as Section 199A dividends
- No return of capital in distributions, indicating earnings support
Negative
- None.
Details
News Market Reaction – SOHO
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WILLIAMSBURG, Va., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) today announced the estimated income tax classification of the Company’s 2024 distributions on its Series B preferred shares (CUSIP #83600C301), Series C preferred shares (CUSIP #83600C400), and Series D preferred shares (CUSIP #83600C509). 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 | ||||
| 02/28/2023 | 03/15/2023 | 0.515625 | 0.515625 | 0.000000 | 0.515625 | ||||
| 05/31/2023 | 06/15/2023 | 0.515625 | 0.515625 | 0.000000 | 0.515625 | ||||
| 08/31/2023 | 09/15/2023 | 0.515625 | 0.515625 | 0.000000 | 0.515625 | ||||
| 11/30/2023 | 12/15/2023 | 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.
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