Hersha Hospitality Trust (NYSE: HT, “Hersha” or “the Company”), owner of upscale hotels in urban gateway markets, announced the tax classification of its Priority Class A Common Share (“Common Shares”), Series B Cumulative Redeemable Preferred Share (“Series B Preferred Shares”), Series C Cumulative Redeemable Preferred Share (“Series C Preferred Shares”) and Series D Cumulative Redeemable Preferred Share (“Series D Preferred Shares”) distributions for 2016 for Federal income tax reporting purposes. The tax information provided below should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders should consult their tax advisors as to the tax treatment of the distributions.
COMMON SHARES | |||||||||||||||||||
Record | Paid Dates |
Total |
Taxable |
Total |
Unrecaptured |
Nontaxable | |||||||||||||
| 1/4/2016 | 1/15/2016 | $ | 0.2800 | $ | 0.280000 | $ | - | $ | - | $ | - | ||||||||
| 4/1/2016 | 4/15/2016 | $ | 0.2800 | $ | 0.280000 | $ | - | $ | - | $ | - | ||||||||
| 6/30/2016 | 7/15/2016 | $ | 0.2800 | $ | 0.280000 | $ | - | $ | - | $ | - | ||||||||
| 10/3/2016 | 10/17/2016 | $ | 0.2800 | $ | 0.280000 | $ | - | $ | - | $ | - | ||||||||
| TOTAL | $ | 1.1200 | $ | 1.120000 | $ | - | $ | - | $ | - | |||||||||
| Percent | 100.00% | 100.00% | N/A | N/A | N/A | ||||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Common Shares is 427825500. |
SERIES B PREFERRED SHARES | |||||||||||||||||||||||
Record | Paid Dates |
Total |
Taxable |
Total |
Unrecaptured |
Nontaxable | |||||||||||||||||
| 1/1/2016 | 1/15/2016 | $ | 0.5000 | $ | 0.5000 | $ | - | $ | - | $ | - | ||||||||||||
| 4/1/2016 | 4/15/2016 | $ | 0.5000 | $ | 0.5000 | $ | - | $ | - | $ | - | ||||||||||||
| 6/8/2016 | (1) | 6/8/2016 | (1) | $ | 0.3722 | $ | 0.3722 | $ | - | $ | - | $ | - | ||||||||||
| TOTAL | $ | 1.3722 | $ | 1.3722 | $ | - | $ | - | $ | - | |||||||||||||
| Percent | 100.00% | 100.00% | N/A | N/A | N/A | ||||||||||||||||||
| (1) On June 8, 2016, Hersha Hospitality Trust redeemed all of its issued and outstanding shares of 8.00% Series B Cumulative Redeemable Preferred Stock. The Series B Preferred Shares were redeemed at a per share redemption price of $25.00 together with accrued and unpaid dividends to the redemption date for an aggregate per share redemption of $25.3722. | |
| The CUSIP number for Hersha Hospitality Trust's Series B Preferred Shares is 427825302. | |
SERIES C PREFERRED SHARES | |||||||||||||||||||
Record | Paid Dates |
Total |
Taxable |
Total |
Unrecaptured |
Nontaxable | |||||||||||||
| 1/1/2016 | 1/15/2016 | $ | 0.4297 | $ | 0.4297 | $ | - | $ | - | $ | - | ||||||||
| 4/1/2016 | 4/15/2016 | $ | 0.4297 | $ | 0.4297 | $ | - | $ | - | $ | - | ||||||||
| 7/1/2016 | 7/15/2016 | $ | 0.4297 | $ | 0.4297 | $ | - | $ | - | $ | - | ||||||||
| 10/1/2016 | 10/17/2016 | $ | 0.4297 | $ | 0.4297 | $ | - | $ | - | $ | - | ||||||||
| TOTAL | $ | 1.7188 | $ | 1.7188 | $ | - | $ | - | $ | - | |||||||||
| Percent | 100.00% | 100.00% | N/A | N/A | N/A | ||||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Series C Preferred Shares is 427825401 |
SERIES D PREFERRED SHARES | |||||||||||||||||||
Record | Paid Dates |
Total |
Taxable |
Total |
Unrecaptured |
Nontaxable | |||||||||||||
| 7/1/2016 | 7/15/2016 | $ | 0.2031 | $ | 0.2031 | $ | - | $ | - | $ | - | ||||||||
| 10/1/2016 | 10/17/2016 | $ | 0.4063 | $ | 0.4063 | $ | - | $ | - | $ | - | ||||||||
| TOTAL | $ | 0.6094 | $ | 0.6094 | $ | - | $ | - | $ | - | |||||||||
| Percent | 100.00% | 100.00% | N/A | N/A | N/A | ||||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Series C Preferred Shares is 427825609 | |
| * For Federal income tax reporting purposes, none of Hersha Hospitality Trust's ordinary income dividends are treated as qualified dividend income. | |
| ** Distributions will reduce a shareholder's adjusted tax basis in its shares. Any amount of the distribution that exceeds a shareholder's adjusted tax basis in its shares will be treated as gain from the sale or exchange of property. | |
Shareholders of Common Shares should note that the 2016 fourth quarter distribution, which had a record date of January 5, 2017 and will be paid on January 17, 2017, will be reported and the taxable portion determined in 2017.
Shareholders of Series C, Series D and Series E Preferred Shares should note that the 2016 fourth quarter distribution, which had a record date of January 1, 2017 and will be paid on January 17, 2017, will be reported and the taxable portion determined in 2017.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets. The Company’s 51 hotels totaling 7,675 rooms are located in New York, Boston, Philadelphia, Washington, DC, Miami and select markets on the West Coast. The Company’s common shares are traded on The New York Stock Exchange-Euronext under the ticker “HT”.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement, including, without limitation. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s filings with the U.S. Securities and Exchange Commission Annual Report on Form 10-K for the year ended December 31, 2015.
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Contacts:
Michael Gillespie, Chief Accounting Officer
717-236-4400
