Common and Preferred Shares

Common Shares

The Board of Trustees declared cash dividends totaling $2.80 and $2.60 per common share for the years ended December 31, 2011 and 2010, respectively.

Of the total dividends calculated for tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for 2011 and 2010 are as follows:

Cash dividends paid per common share for the year ended December 31, 2011:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain		Unrecaptured Sec. 1250 gain
12/31/2010	1/14/2011	$	0.65	$	0.4711	$	0.1789	$	—	$	—
3/31/2011	4/15/2011	0.70		0.5074		0.1926		—		—
6/30/2011	7/15/2011	0.70		0.5074		0.1926		—		—
9/30/2011	10/17/2011	0.70		0.5074		0.1926		—		—
Total for 2011 ⁽¹⁾		$	2.75	$	1.9932	$	0.7568	$	—	$	—
		100.0%		72.5%		27.5%		—		—

Cash dividends paid per common share for the year ended December 31, 2010:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain		Unrecaptured Sec. 1250 gain
12/31/2009	1/15/2010	$	0.65	$	0.2488	$	0.4012	$	—	$	—
3/31/2010	4/15/2010	0.65		0.2488		0.4012		—		—
6/30/2010	7/15/2010	0.65		0.2488		0.4012		—		—
9/30/2010	10/15/2010	0.65		0.2488		0.4012		—		—
Total for 2010 ⁽¹⁾		$	2.60	$	0.9952	$	1.6048	$	—	$	—
		100.0%		38.3%		61.7%		—		—

(1) Differences between totals and details relate to rounding.

Series B Preferred Shares

On January 19, 2005, the Company issued 3.2 million 7.75% Series B cumulative redeemable preferred shares ("Series B preferred shares") in a registered public offering. On August 31, 2011, the Company completed the redemption of all 3.2 million outstanding 7.75% Series B preferred shares. The shares were redeemed at a redemption price of $25.32 per share. This price is the sum of the $25.00 per share liquidation preference and a quarterly dividend per share of $0.484375 prorated through the redemption date. In conjunction with the redemption, the Company recognized a charge representing the original issuance costs that were paid in 2005 and other redemption related expenses. The Series B preferred share redemption costs, which reduced net income available to common shareholders for the year ended December 31 2011, were $2.8 million.

Of the total dividends calculated for tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for 2011 and 2010 are as follows:

Cash dividends paid per Series B preferred share for the year ended December 31, 2011:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2010	1/14/2011	$	0.4844	$	0.4844	$	—	$	—
3/31/2011	4/15/2011	0.4844		0.4844		—		—
6/30/2011	7/15/2011	0.4844		0.4844		—		—
8/31/2011	8/31/2011	0.3229		0.3229
Total for 2011 ⁽¹⁾		$	1.7760	$	1.7760	$	—	$	—
		100.0%		100.0%		—		—

Cash dividends paid per Series B preferred share for the year ended December 31, 2010:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2009	1/15/2010	$	0.4844	$	0.4844	$	—	$	—
3/31/2010	4/15/2010	0.4844		0.4844		—		—
6/30/2010	7/15/2010	0.4844		0.4844		—		—
9/30/2010	10/15/2010	0.4844		0.4844		—		—
Total for 2010 ⁽¹⁾		$	1.9375	$	1.9375	$	—	$	—
		100.0%		100.0%		—		—

(1) Differences between totals and details relate to rounding.

Series C Convertible Preferred Shares

On December 22, 2006, the Company issued 5.4 million 5.75% Series C cumulative convertible preferred shares (“Series C preferred shares”) in a registered public offering for net proceeds of approximately $130.8 million, after expenses. The Company will pay cumulative dividends on the Series C preferred shares from the date of original issuance in the amount of $1.4375 per share each year, which is equivalent to 5.75% of the $25 liquidation preference per share. Dividends on the Series C preferred shares are payable quarterly in arrears. The Company does not have the right to redeem the Series C preferred shares except in limited circumstances to preserve the Company’s REIT status. The Series C preferred shares have no stated maturity and will not be subject to any sinking fund or mandatory redemption. As of December 31, 2011, the Series C preferred shares are convertible, at the holder’s option, into the Company’s common shares at a conversion rate of 0.3574 common shares per Series C preferred share, which is equivalent to a conversion price of $69.95 per common share. This conversion ratio may increase over time upon certain specified triggering events including if the Company’s common dividend per share exceeds a quarterly threshold of $0.6875.

Upon the occurrence of certain fundamental changes, the Company will under certain circumstances increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the Series C preferred shares becoming convertible into shares of the public acquiring or surviving company.

On or after January 15, 2012, the Company may, at its option, cause the Series C preferred shares to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company’s common shares equals or exceeds 135% of the then prevailing conversion price of the Series C preferred shares.

Owners of the Series C preferred shares generally have no voting rights, except under certain dividend defaults. Upon conversion, the Company may choose to deliver the conversion value to the owners in cash, common shares, or a combination of cash and common shares.

The Board of Trustees declared cash dividends totaling $1.4375 per Series C preferred share for each of the years ended December 31, 2011 and 2010, respectively.

Of the total dividends calculated for tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for 2011 and 2010 are as follows:

Cash dividends paid per Series C preferred share for the year ended December 31, 2011:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2010	1/14/2011	$	0.3594	$	0.3594	$	—	$	—
3/31/2011	4/15/2011	0.3594		0.3594		—		—
6/30/2011	7/15/2011	0.3594		0.3594		—		—
9/30/2011	10/17/2011	0.3594		0.3594		—		—
Total for 2011 ⁽¹⁾		$	1.4375	$	1.4375	$	—	$	—
		100.0%		100.0%		—		—

Cash dividends paid per Series C preferred share for the year ended December 31, 2010:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2009	1/15/2010	$	0.3594	$	0.3594	$	—	$	—
3/31/2010	4/15/2010	0.3594		0.3594		—		—
6/30/2010	7/15/2010	0.3594		0.3594		—		—
9/30/2010	10/15/2010	0.3594		0.3594		—		—
Total for 2010 ⁽¹⁾		$	1.4375	$	1.4375	$	—	$	—
		100.0%		100.0%		—		—

(1) Differences between totals and details relate to rounding.

Series D Preferred Shares

On May 25, 2007, the Company issued 4.6 million 7.375% Series D cumulative redeemable preferred shares (“Series D preferred shares”) in a registered public offering for net proceeds of approximately $111.1 million, after expenses. The Company pays cumulative dividends on the Series D preferred shares from the date of original issuance in the amount of $1.844 per share each year, which is equivalent to 7.375% of the $25 liquidation preference per share. Dividends on the Series D preferred shares are payable quarterly in arrears. The Company may not redeem the Series D preferred shares before May 25, 2012, except in limited circumstances to preserve the Company’s REIT status. On or after May 25, 2012, the Company may, at its option, redeem the Series D preferred shares in whole at any time or in part from time to time, by paying $25 per share, plus any accrued and unpaid dividends up to and including the date of redemption. The Series D preferred shares generally have no stated maturity, will not be subject to any sinking fund or mandatory redemption, and are not convertible into any of the Company’s other securities. Owners of the Series D preferred shares generally have no voting rights, except under certain dividend defaults.

The Board of Trustees declared cash dividends totaling $1.8438 per Series D preferred share for each of the years ended December 31, 2011 and 2010.

Of the total dividends calculated for tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for 2011 and 2010 are as follows:

Cash dividends paid per Series D preferred share for the year ended December 31, 2011:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2010	1/14/2011	$	0.4609	$	0.4609	$	—	$	—
3/31/2011	4/15/2011	0.4609		0.4609		—		—
6/30/2011	7/15/2011	0.4609		0.4609		—		—
9/30/2011	10/17/2011	0.4609		0.4609		—		—
Total for 2011 ⁽¹⁾		$	1.8438	$	1.8438	$	—	$	—
		100.0%		100.0%		—		—

Cash dividends paid per Series D preferred share for the year ended December 31, 2010:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2009	1/15/2010	$	0.4609	$	0.4609	$	—	$	—
3/31/2010	4/15/2010	0.4609		0.4609		—		—
6/30/2010	7/15/2010	0.4609		0.4609		—		—
9/30/2010	10/15/2010	0.4609		0.4609		—		—
Total for 2010 ⁽¹⁾		$	1.8438	$	1.8438	$	—	$	—
		100.0%		100.0%		—		—

(1) Differences between totals and details relate to rounding.

Series E Convertible Preferred Shares

On April 2, 2008, the Company issued 3.5 million 9.00% Series E cumulative convertible preferred shares (“Series E preferred shares”) in a registered public offering for net proceeds of approximately $83.4 million, after expenses. The Company will pay cumulative dividends on the Series E preferred shares from the date of original issuance in the amount of $2.25 per share each year, which is equivalent to 9.00% of the $25 liquidation preference per share. Dividends on the Series E preferred shares are payable quarterly in arrears. The Company does not have the right to redeem the Series E preferred shares except in limited circumstances to preserve the Company’s REIT status. The Series E preferred shares have no stated maturity and will not be subject to any sinking fund or mandatory redemption. As of December 31, 2011, the Series E preferred shares are convertible, at the holder’s option, into the Company’s common shares at a conversion rate of 0.4512 common shares per Series E preferred share, which is equivalent to a conversion price of $55.41 per common share. This conversion ratio may increase over time upon certain specified triggering events including if the Company’s common dividend per share exceeds a quarterly threshold of $0.84.

Upon the occurrence of certain fundamental changes, the Company will under certain circumstances increase the conversion rate by a number of additional common shares or, in lieu thereof, may in certain circumstances elect to adjust the conversion rate upon the Series E preferred shares becoming convertible into shares of the public acquiring or surviving company.

On or after April 20, 2013, the Company may, at its option, cause the Series E preferred shares to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company’s common shares equals or exceeds 150% of the then prevailing conversion price of the Series E preferred shares.

Owners of the Series E preferred shares generally have no voting rights, except under certain dividend defaults. Upon conversion, the Company may choose to deliver the conversion value to the owners in cash, common shares, or a combination of cash and common shares.

The Board of Trustees declared cash dividends totaling $2.25 per Series E preferred share for the years ended December 31, 2011 and 2010.

Of the total dividends calculated for tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for 2011 and 2010 are as follows:

Cash dividends paid per Series E preferred share for the year ended December 31, 2011:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2010	1/14/2011	$	0.5625	$	0.5625	$	—	$	—
3/31/2011	4/15/2011	0.5625		0.5625		—		—
6/30/2011	7/15/2011	0.5625		0.5625		—		—
9/30/2011	10/17/2011	0.5625		0.5625		—		—
Total for 2011 ⁽¹⁾		$	2.2500	$	2.2500	$	—	$	—
		100.0%		100.0%		—		—

Cash dividends paid per Series E preferred share for the year ended December 31, 2009:



Record date	Cash payment date	Cash distribution per share		Taxable ordinary income		Return of capital		Long-term capital gain
12/31/2009	1/15/2010	$	0.5625	$	0.5625	$	—	$	—
3/31/2010	4/15/2010	0.5625		0.5625		—		—
6/30/2010	7/15/2010	0.5625		0.5625		—		—
9/30/2010	10/15/2010	0.5625		0.5625		—		—
Total for 2010 ⁽¹⁾		$	2.2500	$	2.2500	$	—	$	—
		100.0%		100.0%		—		—

(1) Differences between totals and details relate to rounding.