Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Equity

12. Equity

On January 12, 2015, InfraREIT, Inc. amended its charter to increase the number of authorized shares of common stock from 3,000 to 450,000,000. In addition, the par value of the Company’s common stock was reduced from $1 per share to $0.01 per share. Both the authorized number of shares of common stock and the par value were unaffected by the Merger or Reorganization.

The Company and the Operating Partnership declared cash dividends on common stock and distributions on OP Units of $1.00, $1.075 and $0.31 per share during the years ended December 31, 2016, 2015 and 2014, respectively. The Company paid a total of $59.1 million and $61.6 million in dividends and distributions during the years ended December 31, 2016 and 2015, respectively. There were no dividends or distributions paid during the year ended December 31, 2014.

For federal income tax purposes, the dividends declared in 2016, 2015 and 2014 were classified as ordinary income.

The Company is required to distribute at least 90% of its taxable income (excluding net capital gains) to maintain its status as a REIT. Management believes that the Company has distributed at least 100% of its taxable income.