DALLAS, Jan. 24, 2020 /PRNewswire/ -- Braemar Hotels
and Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today
announced the tax reporting (Federal Form 1099-DIV) information for
the 2019 distributions on its common shares and its Series B and D
preferred shares.
The income tax treatment for 2019 for Braemar Hotels and Resorts
Inc. Common Stock CUSIP #10482B101 traded on the NYSE under ticker
symbol "BHR" is as follows:
Distribution
Type
|
|
Distributions
Per Share
|
Ordinary
Taxable
Dividend
|
Capital Gain
Distribution
|
Unrecaptured
1250 Gain
|
Return of
Capital
|
Total Cash Per
Share
|
$0.6400000
|
$0.0000000
|
$0.0000000
|
$0.0000000
|
$0.6400000
|
|
|
|
|
|
|
Total Stock per
Share (NYSE: AINC)
|
$0.1066353
|
$0.0000000
|
$0.0000000
|
$0.0000000
|
$0.1066353
|
|
|
|
|
|
|
Total
Distributions
|
$0.7466353
|
$0.0000000
|
$0.0000000
|
$0.0000000
|
$0.7466353
|
Percent
|
100%
|
0%
|
0%
|
0%
|
100%
|
The income tax treatment for the 2019 distributions for Braemar
Hotels and Resorts Inc. Series B Preferred Stock CUSIP #10482B200
is as follows:
Distribution
Type
|
|
Distributions
Per Share
|
Ordinary
Taxable
Dividend
|
Capital Gain
Distribution
|
Unrecaptured
1250 Gain
|
Return of
Capital
|
Total Cash Per
Share
|
$1.375200
|
$0.0000000
|
$0.0000000
|
$0.0000000
|
$1.3752000
|
Percent
|
100%
|
0%
|
0%
|
0%
|
100%
|
The income tax treatment for the 2019 distributions for Braemar
Hotels and Resorts Inc. Series D Preferred Stock CUSIP #104823B09
is as follows:
Distribution
Type
|
|
Distributions
Per Share
|
Ordinary
Taxable
Dividend
|
Capital Gain
Distribution
|
Unrecaptured
1250 Gain
|
Return of
Capital
|
Total Cash Per
Share
|
$1.7816960
|
$0.0000000
|
$0.0000000
|
$0.0000000
|
$1.7816960
|
Percent
|
100%
|
0%
|
0%
|
0%
|
100%
|
The common and preferred distributions that the Company paid on
January 15, 2019 to shareholders of
record as of December 31, 2018 are
reportable in 2019. The common and preferred distributions that the
company paid on January 15, 2020 to
shareholders of record as of December 31,
2019 will be reportable in 2020.
On November 5, 2019 Braemar
distributed its remaining shares of common stock in Ashford, Inc.
(NYSE: AINC) to the common shareholders of record as of the close
of business of the New York Stock Exchange on October 29, 2019 (each a "BHR
Shareholder"). BHR Shareholders were entitled to receive
approximately 0.0047 shares of AINC common stock for every share of
BHR common stock held as of October
29, 2019. Braemar is reporting the distribution of
AINC common stock as a return of capital dividend for U.S. federal
income tax purposes. Braemar Shareholders are treated as
receiving a return of capital dividend upon this distribution equal
to the fair market value of the AINC common stock (and cash in lieu
of fractional shares of such common stock) received in the
distribution. The fair market value for federal income tax
purposes of AINC common stock was $22.65 per share based on the closing price on
November 5, 2019. After the
distribution, Braemar no longer has any ownership interest in
AINC.
The above income tax discussion contains a general explanation
of certain U.S. federal income tax consequences of the distribution
of the AINC shares to BHR Shareholders. The information
represents Braemar's general understanding of the application of
certain existing U.S. federal income tax laws and regulations
relating to the distribution. It does not constitute tax
advice and does not purport to be complete. Shareholders are
urged to consult their tax advisors regarding the particular
consequences of the distribution, including the applicability and
effect of all U.S. federal, state and local, and foreign tax
laws.
In accordance with IRS Code Section 6045B, the Company will post Form 8937, Report of
Organizational Actions Affecting Basis of Securities, which may be
found in the Corporate Actions section of the company's website.
This form provides detailed information on the return of capital
portion of the preferred and common share distributions.
The Company encourages shareholders to consult with their own
tax advisors with respect to the federal, state and local, and
foreign income tax effects of these dividends.
* * * * *
Braemar Hotels & Resorts is a real estate investment trust
(REIT) focused on investing in luxury hotels and resorts.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the federal
securities regulations. Forward-looking statements in this
press release may include, among others, statements about
the implied share price for the Company's common stock. When
we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking
statements. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside Braemar's
control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general conditions of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; our ability to successfully complete and integrate
acquisitions, and manage our planned growth, and the degree and
nature of our competition. These and other risk factors are
more fully discussed in Braemar's filings with the Securities and
Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. The
Company can give no assurance that these forward-looking statements
will be attained or that any deviation will not occur. We are
not obligated to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or circumstances, changes in expectations or otherwise.
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SOURCE Braemar Hotels & Resorts Inc.