Dividends and Distributions

3 Months Ended

Mar. 31, 2020

In order to comply with the REIT requirements of the Internal Revenue Code, or the Code, the Company is generally required to make common share distributions (other than capital gain distributions) to its shareholders at least equal to 90% of its REIT taxable income, as defined in the Code, computed without regard to the dividends paid deduction and net capital gains. The Company’s common share dividend policy is to distribute a percentage of cash flow to ensure distribution requirements of the IRS are met while allowing the Company to retain cash to meet other needs, such as principal amortization, capital improvements and other investment activities.

Common share dividends are characterized for U.S. federal income tax purposes as ordinary income, qualified dividend, capital gains, non-taxable income return of capital, or a combination of the four. Common share dividends that exceed current and accumulated earnings and profits (calculated for tax purposes) constitute a return of capital rather than a dividend and generally reduce the shareholder’s basis in the common share. At the beginning of each year, we notify our shareholders of the taxability of the common share dividends paid during the preceding year. The

payment of common share dividends is dependent upon our financial condition, operating results, and REIT distribution requirements and may be adjusted at the discretion of the Company’s Board of Trustees.

The following tables summarize dividends declared and distributions paid to the holders of common shares for the three months ended March 31, 2020 and 2019.



Three Months Ended March 31, 2020
Month Declared/Paid	Dividend Per Share		Distributions Declared		Distributions Paid
(In thousands, except per share amounts)
December (2019)/January	$	0.2000	$	—	$	38,796
December^(a)			—		(169		)	Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
December (2019)/January			—		4			Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
March/April	0.2100		42,568		—
			$	42,568	$	38,631


(a)	Declared in December 2019 and included in the $38.8 million declared, see description to the right regarding timing of payment.



Three Months Ended March 31, 2019
Month Declared/Paid	Dividend Per Share		Distributions Declared		Distributions Paid
(In thousands, except per share amounts)
December (2018)/January	$	0.1875	$	—	$	28,218
December^(a)					(127		)	Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
December (2018)/January					7			Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
March/April	0.2000		30,235		—
			$	30,235	$	28,098

(a)

Declared in December 2018 and included in the $28.2 million declared, see description to the right regarding timing of payment.