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Dividends and Distributions
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Dividends and Distributions 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 and distributions declared and paid to the holders of common shares in 2021, 2020 and 2019:
2021
Month Declared/PaidDistribution Per ShareDistributions DeclaredDistributions 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/April0.22 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/July0.22 57,897 57,897 
May (d)
(178)Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
May/July6 Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
August/October0.22 59,026 59,026 
October(e)
(49)Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
August/October7 Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
December$0.22 59,440 — 
$232,392 $227,522 
(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.
(d)Declared in May and included in the $57.9 million declared, see description to the right regarding timing of payment.
(e)Declared in August and included in the $59.0 million declared, see description to the right regarding timing of payment.
2020
Month Declared/PaidDistribution Per ShareDistributions DeclaredDistributions 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/April0.21 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).
June/July0.21 43,271 43,271 
June (c)
— (232)Dividend equivalents accrued on unvested restricted stock units to be paid when the awards vest.
June/July— 10 Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
September/October0.21 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$0.21 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
Month Declared/PaidDistribution Per ShareDistributions DeclaredDistributions 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)/January7 Dividend equivalents paid on unvested restricted stock units that are not expected to vest (recognized as additional compensation).
March/April0.20 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/July0.20 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/October0.20 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)$0.20 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.


For income tax purposes, distributions to 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 is as follows:
Common Shares
202120202019
Ordinary income
41 %35 %83 %
Capital gains
0 %0 %0 %
Return of capital
59 %65 %17 %
100 %100 %100 %