Diversified Healthcare Trust Announces 2020 Dividend Allocation

Rhea-AI Summary

Diversified Healthcare Trust (Nasdaq: DHC) announced the characterization of its 2020 dividends for income tax purposes. The company reported a total dividend of $0.43 per share, allocated as $0.25 ordinary income, while $0.15 and $0.01 were distributed in Section 199A and qualified dividends, respectively. Additionally, shareholders received an in-kind distribution valued at $0.25 per DHC share from Five Star Senior Living (Nasdaq: FVE). This release serves as guidance for shareholders for IRS Form 1099-DIV tax reporting.

Positive

• Total dividend of $0.43 per share for 2020.
• In-kind distribution valued at $0.25 per DHC share from FVE.

Negative

• None.

Diversified Healthcare Trust (Nasdaq: DHC) today announced that the characterization of dividends for 2020 income tax reporting purposes is as follows:

Common Shares

											Dividend Allocation
											Per Share
										Section					Total		Unrecaptured
Declaration		Record		Paid/Payable		Dividends		Ordinary		199A			Qualified		Capital		Section 1250		Return of
Dates		Dates		Dates		Per Share		Income		Dividend(1)			Dividend(2)		Gain		Gain(3)		Capital
01/01/20		01/01/20		01/01/20		$0.25		$0.00		$0.00			$0.00		$0.00		$0.00		$0.25
01/16/20		01/27/20		02/20/20		$0.15		$0.00		$0.00			$0.00		$0.00		$0.00		$0.15
04/02/20		04/13/20		05/21/20		$0.01		$0.00		$0.00			$0.00		$0.00		$0.00		$0.01
07/16/20		07/27/20		08/20/20		$0.01		$0.00		$0.00			$0.00		$0.00		$0.00		$0.01
10/15/20		10/26/20		11/19/20		$0.01		$0.00		$0.00			$0.00		$0.00		$0.00		$0.01
				TOTALS:		$0.43		$0.00		$0.00			$0.00		$0.00		$0.00		$0.43

(1)	Section 199A Dividends are a subset of, and included in, the Ordinary Income amount.
(2)	Qualified Dividends are a subset of, and included in, the Ordinary Income amount.
(3)	Unrecaptured Section 1250 Gain is a subset of, and included in, the Total Capital Gain amount.

DHC’s common share CUSIP number is 25525P107. This information represents final income allocations.

Shareholders should look to IRS Form 1099-DIV for their tax reporting. This press release is not intended to replace the Form 1099-DIV.

The above characterization of DHC dividends includes an in-kind distribution of the right to receive common shares in Five Star Senior Living (Nasdaq: FVE). For tax reporting purposes, the value of this distribution was $3.71 per FVE share ultimately received by a DHC shareholder. Since 0.0678 FVE shares were ultimately received by DHC shareholders for each DHC share owned, the distribution to DHC shareholders was valued at $0.25 per DHC share. The initial tax basis of each full FVE share is $3.71. For additional information regarding the effect on the tax basis of DHC shares, please see Form(s) 8937 published on the DHC website: https://www.dhcreit.com/investors/stock-information/distributions.

Diversified Healthcare Trust (Nasdaq: DHC) is a real estate investment trust (REIT) focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum: by care delivery and practice type, by scientific research disciplines, and by property type and location. As of September 30, 2020, DHC’s $8.2 billion portfolio included 407 properties in 37 states and Washington, D.C., occupied by more than 600 tenants, and totaling approximately 11.6 million square feet of medical office and life science properties and more than 30,000 living units. DHC is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company that is headquartered in Newton, MA. To learn more about DHC, visit www.dhcreit.com.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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FAQ

What is the dividend amount for DHC in 2020?

DHC declared a total dividend of $0.43 per share for 2020.

When was the dividend paid for DHC?

The dividends were paid at various dates throughout 2020.

How is the DHC dividend characterized for tax purposes?

The DHC dividend includes $0.25 as ordinary income, with additional amounts as Section 199A and qualified dividends.

What was the in-kind distribution value for DHC shareholders?

The in-kind distribution was valued at $0.25 per DHC share.

How should DHC shareholders report their dividends?

Shareholders should refer to IRS Form 1099-DIV for tax reporting.