Sotherly Hotels Inc. Announces Dividend Tax Treatment

Core Viewpoint - Sotherly Hotels Inc. has announced the estimated income tax classification for its 2024 distributions on Series B, C, and D preferred shares, which will be reported on Form 1099-DIV [1]. Group 1: Series B Preferred Shares - The total cash distribution per share for Series B preferred shares is $0.50, with 100% classified as ordinary income [2]. - The total distribution for Series B preferred shares for 2024 amounts to $2.00 [2]. Group 2: Series C Preferred Shares - The total cash distribution per share for Series C preferred shares is $0.492188, also classified entirely as ordinary income [3]. - The total distribution for Series C preferred shares for 2024 is $1.968752 [3]. Group 3: Series D Preferred Shares - The total cash distribution per share for Series D preferred shares is $0.515625, with 100% classified as ordinary income [4]. - The total distribution for Series D preferred shares for 2024 is $2.062500 [4]. Group 4: Tax Reporting Information - No portion of the dividends declared in 2024 represented foreign taxes or qualified dividend income [5]. - Shareholders will receive IRS Form 1099-DIV from Equiniti Trust Company, LLC, reporting the dividends paid for 2024 [5][6]. - The tax information provided is preliminary and subject to correction, but no material changes are expected [7]. Group 5: Company Overview - Sotherly Hotels Inc. is a self-managed lodging REIT focused on acquiring, renovating, and repositioning upscale hotels in the Southern United States, with a portfolio of twelve hotel properties totaling 2,786 rooms [8]. - The company operates hotels under major brands such as Hilton, Marriott, and Hyatt, and was organized in 2004, headquartered in Williamsburg, Virginia [8].