Dividends and Distributions

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Dividends and Distributions

Dividends and Distributions

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 and distributions declared and paid to the holders of common shares, restricted stock and OP units for the six months ended June 30, 2021 and 2020.

Six Months Ended June 30, 2021
Month Declared/Paid	Distribution Per Share		Distributions Declared		Distributions Paid
(In thousands, except per share amounts)
December (2020)/January	$	0.21	$	—	$	53,820
December(a)			—		(693)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
December (2020)/January			—		6		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
December (2020)/January(b)			—		1,823		Dividend equivalents paid on vested restricted stock units related to the market performance-based awards granted in 2018.
March/April	0.22		56,029		56,029
March(c)			—		(179)		Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
March/April			—		7		Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
May/July	0.22		57,897		—
			$	113,926	$	110,813

(a)Declared in December 2020 and included in the $53.8 million declared, see description to the right regarding timing of payment.

(b)Dividend equivalents accrued related to the market performance-based awards granted in 2018 paid in January following award vesting date of January 8, 2021.

(c)Declared in March and included in the $56.0 million declared, see description to the right regarding timing of payment.

Six Months Ended June 30, 2020
Month Declared/Paid	Dividend Per Share		Distributions Declared		Distributions Paid
(In thousands, except per share amounts)
December (2019)/January	$	0.20	$	—	$	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	0.21		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	0.21		43,271		—
			$	85,839	$	80,976

(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.