Sotherly Hotels Inc. Announces Amended Dividend Tax Treatment

Sotherly Hotels Inc. (NASDAQ: SOHO), a self-managed and self-administered lodging REIT focused on acquiring, renovating, upbranding, and repositioning upscale to upper-upscale full-service hotels in the Southern United States, has announced an amended dividend tax treatment for its 2024 distributions on its Series B, C, and D preferred shares. The changes apply only to the Series D preferred shares portion of the release, as previously reported on February 18, 2025.

The income tax classification of the 2024 distributions as it is expected to be reported on Form 1099-DIV is set forth in the following table:

| Record Date | Paid Date | Per Share | Income (Return of Capital) | Dividends |
| --- | --- | --- | --- | --- |
| 02/29/2024 | 03/15/2024 | 0.515625 | 0.000000 | 0.515625 |
| 05/31/2024 | 06/17/2024 | 0.515625 | 0.000000 | 0.515625 |
| 08/30/2024 | 09/16/2024 | 0.515625 | 0.000000 | 0.515625 |
| 11/29/2024 | 12/16/2024 | 0.515625 | 0.000000 | 0.515625 |
| TOTAL | | 2.062500 | 0.000000 | 2.062500 |

The CUSIP number for Sotherly Hotels Inc.'s Series D Preferred Shares is 83600C509.

The amended tax treatment may have potential implications on the company's stock price and market capitalization, as well as its competitive position within the REIT industry. Investors may perceive the changes as favorable or unfavorable, leading to increased or decreased demand for SOHO's Series D preferred shares. The dividend yield and overall attractiveness of the shares may also be impacted, potentially affecting the stock price and market capitalization.

To better understand the potential implications of the amended dividend tax treatment, it is essential to consider the specific tax consequences for individual investors and consult with a tax advisor. Additionally, investors should evaluate the company's overall performance, dividend history, and competitive position within the REIT industry.

In conclusion, Sotherly Hotels Inc.'s amended dividend tax treatment may have potential implications on the company's stock price, market capitalization, and competitive position. Investors should carefully consider the tax consequences and consult with a tax advisor before making any investment decisions.