Dividends and Distributions

12 Months Ended

Dec. 31, 2020

Dividends and Distributions

In order to comply with the REIT requirements of the Internal Revenue 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 and Series B Preferred Shares in 2020, 2019 and 2018:


2020 (Common Shares)
Month Declared/Paid	Dividend Per Share		Distributions Declared		Distributions Paid
			Common Shares		Common Shares
(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
March(b)			—		(233)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
March/April			—		10		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
May/July	0.2100		43,271		43,271
May (c)			—		(232)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
May/July			—		10		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
September/October	0.2100		43,282		43,282
October(d)			—		(231)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
September/October			—		10		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
December	$	0.210	53,820		—
			$	182,941	$	167,086

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

(b)Declared in March and included in the $42.6 million declared, see description to the right regarding timing of payment.

(c)Declared in May and included in the $43.3 million declared, see description to the right regarding timing of payment.

(d)Declared in September and included in the $43.3 million declared, see description to the right regarding timing of payment.


2019 (Common Shares)
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
March (b)			—		(142)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
March/April			—		15		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
June/July	0.2000		38,764		38,764
June (c)			—		(172)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
June/July			—		13		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
September/October	0.2000		38,795		38,795
October (d)			—		(170)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
September/October			—		7		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
December/January (2020)	$	0.2000	38,796		—
			$	146,590	$	135,443

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

(b)Declared in March and included in the $30.2 million declared, see description to the right regarding timing of payment.

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

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


2018
Month Declared/Paid	Dividend Per Share		Distributions Declared				Distributions Paid
			Common Shares		Series B Preferred Shares		Common Shares		Series B Preferred Shares
(In thousands, except per share amounts)
January (a)	$	0.0186	$	1,291	$	619	$	1,291	$	619
March/April	0.1396		20,145		—		20,145
March (c)			—		—		(79)		—		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
March/April			—		—		20		—		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
June/July	0.1875		27,250		—		27,250		—
June (d)			—		—		(118)		—		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
June/July			—		—		28		—		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
September/October	0.1875		28,072		—		28,072
October(e)			—		—		(114)		—		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
September/October			—		—		28		—		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
December/January (2019)	$	0.1875	28,218		—		—		—
			$	104,976			$	76,523

Series B Preferred Shares - Fixed Dividend
January (a)					1,198				1,198
Total distributions paid to holders of Series B Preferred Shares (b)					$	1,817			$	1,817

(a)Stub period dividend paid to shareholders of record prior to the IPO.

(b)Last participating and fixed dividend paid to holders of Series B Preferred Shares in connection with the conversion to common shares on the IPO date.

(c)Declared in March and included in the $20.1 million declared, see description to the right regarding timing of payment.

(d)Declared in June and included in the $27.3 million declared, see description to the right regarding timing of payment.

(e)Declared in September and included in the $28.1 million declared, see description to the right regarding timing of payment.

The dividends declared and paid to holders of Series A Preferred Shares were $0.001 for the year ended December 31, 2018. In 2018, in connection with the IPO, all outstanding Series A Preferred Shares were redeemed and there were no dividends for the year ended December 31, 2019.

For income tax purposes, distributions to preferred and common shareholders are characterized as ordinary income, capital gains, or as a return of shareholder invested capital. The composition of the Company’s distributions per common share and per preferred share is as follows:


Common Shares	2020		2019		2018
Ordinary income	35	%	83	%	66	%
Capital gains	0	%	0	%	0	%
Return of capital	65	%	17	%	34	%
	100	%	100	%	100	%


Preferred Shares	2020	2019	2018
Ordinary income	N/A	N/A	100	%
Capital gains	N/A	N/A	0	%
Return of capital	N/A	N/A	0	%
	N/A	N/A	100	%