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Sotherly Hotels Inc. Announces Dividend Tax Treatment

1. Sotherly Hotels Inc. announced taxable distributions for 2024 preferred shares. 2. Preferred shares' dividends are primarily ordinary income, with $2 per share total. 3. The company’s common shares will report to shareholders using IRS Form 1099-DIV. 4. Sotherly Hotels focuses on upscale hotel acquisitions and renovations in the South. 5. The company maintains a diverse portfolio with twelve properties and rental interests.

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FAQ

Why Neutral?

While distributions are stable, they do not indicate major growth potential.

How important is it?

Tax classifications impact investor perceptions but do not directly affect operations.

Why Short Term?

Immediate tax implications for investors, but no long-term growth indicators.

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HLTMARHSOHO
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  TotalTaxableNontaxable RecordPaidCash DistributionOrdinaryDistributionSec 199ADateDatePer ShareIncome(Return of Capital)Dividends02/29/202403/15/20240.500000 0.500000 0.000000 0.500000 05/31/202406/17/20240.500000 0.500000 0.000000 0.500000 08/30/202409/16/20240.500000 0.500000 0.000000 0.500000 11/29/202412/16/20240.500000 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  TotalTaxableNontaxable RecordPaidCash DistributionOrdinaryDistributionSec 199ADateDatePer ShareIncome(Return of Capital)Dividends02/29/202403/15/20240.492188 0.492188 0.000000 0.492188 05/31/202406/17/20240.492188 0.492188 0.000000 0.492188 08/30/202409/16/20240.492188 0.492188 0.000000 0.492188 11/29/202412/16/20240.492188 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  TotalTaxableNontaxable RecordPaidCash DistributionOrdinaryDistributionSec 199ADateDatePer ShareIncome(Return of Capital)Dividends02/28/202303/15/20230.515625 0.515625 0.000000 0.515625 05/31/202306/15/20230.515625 0.515625 0.000000 0.515625 08/31/202309/15/20230.515625 0.515625 0.000000 0.515625 11/30/202312/15/20230.515625 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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