Chatham Lodging Trust Announces 2021 Distribution Characterization

Rhea-AI Summary

Chatham Lodging Trust (NYSE: CLDT) announced the federal tax characterization of dividends declared for its preferred shares in 2021. The Series A Preferred shares dividends are $0.48307, payable on 10/15/21, and $0.41406, payable on 1/18/22. These dividends are reported as taxable ordinary income and do not represent foreign taxes or qualified dividend income. Shareholders will receive IRS Form 1099-DIV for tax reporting. The tax classification is preliminary and shareholders are advised to consult tax professionals.

Positive

• Dividends declared for preferred shares amount to $0.48307 and $0.41406, providing income to investors.
• Shareholders will receive IRS Form 1099-DIV for proper tax reporting.

Negative

• No portions of the dividends are classified as foreign taxes or qualified dividend income, limiting tax benefits for some investors.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale extended-stay hotels and premium-branded, select-service hotels, today announced the characterization of dividends declared in 2021 on its preferred shares for federal income tax reporting purposes.

Security Description	CUSIP	Ticker Symbol	Record Date	Payment Date	Dividend Per Preferred Share	Taxable Ordinary Income(1)	Return of Capital(2)	Section 199A Dividends(3)
Series A Preferred	16208T201	CLDT-PA	9/30/21	10/15/21	$0.48307	$0.48307	$0.00000	$0.48307
Series A Preferred	16208T201	CLDT-PA	12/31/21	1/18/22	$0.41406	$0.41406	$0.00000	$0.41406
(1) Form 1099-DIV box 1a
(2) Form 1099-DIV box 3
(3) Form 1099-DIV box 5

No portion of the dividends declared in 2021 represented foreign taxes or qualified dividend income.

Registered holders of Chatham Lodging Trust preferred shares who received any of the dividends specified in the table above will receive an Internal Revenue Service (IRS) Form 1099-DIV from EQ Shareholder Services, the company’s dividend paying agent. The Form 1099-DIV will report the dividends paid with respect to 2021. Shareholders whose shares are held in “street name” will receive an IRS Form 1099 from the bank, brokerage firm or other nominee holding their shares.

The information in the table above is based on the preliminary results of work on the tax filings of Chatham Lodging Trust and is subject to correction or adjustment when the filings are completed. No material change in these classifications is expected. The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders are encouraged to consult with their own tax advisors regarding the specific federal, state, local, foreign and other tax consequences of ownership of Chatham Lodging Trust’s shares and the specific tax treatment of distributions on Chatham Lodging Trust’s shares.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly-traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns interests in 42 hotels totaling 6,340 rooms/suites in 15 states and the District of Columbia. Additional information about Chatham may be found at chathamlodgingtrust.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 about Chatham Lodging Trust, including statements regarding future plans, strategies, performance, acquisitions, capital expenditures, future operating results and the timing and composition of revenues, among others, and statements containing words such as “expects,” “believes” or “will,” which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results or performance to differ materially from those discussed in such statements. Additional risks are discussed in the company’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005954/en/

Dennis Craven (Company)

Chief Operating Officer

(561) 227-1386

Source: Chatham Lodging Trust

FAQ

What are the dividends declared by Chatham Lodging Trust for 2021?

Chatham Lodging Trust declared dividends of $0.48307 payable on 10/15/21 and $0.41406 payable on 1/18/22 for its Series A Preferred shares.

How will the dividends for CLDT be taxed?

The dividends are reported as taxable ordinary income and will not include foreign taxes or qualified dividend income.

When can I expect to receive IRS Form 1099-DIV for CLDT?

Shareholders will receive the IRS Form 1099-DIV for tax reporting from EQ Shareholder Services or their brokerage firm.

What is the CUSIP number for Chatham Lodging Trust’s preferred shares?

The CUSIP number for Chatham Lodging Trust's Series A Preferred shares is 16208T201.

Is there any foreign tax impact on the dividends from CLDT?

No portion of the dividends declared in 2021 represented foreign taxes.