Winston (NYSE:WXH)
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From Jul 2019 to Jul 2024
Winston Hotels, Inc. (NYSE: WXH) reported in a press
release the income tax treatment for 2005 distributions to holders of
its common stock and preferred stock. The January 24, 2006 press
release contained an error. The corrected release is set forth below
in its entirety.
Subsequent to January 24, 2006, Winston Hotels, Inc. determined
that its 2005 earnings and profits were higher than originally
reported. The increase results in full taxability for all of the
March, June and September 2005 common and preferred stock
distributions.
In addition, a portion of the preferred distribution declared in
December 2005 but paid in January 2006 was paid out of Winston Hotels,
Inc.'s 2005 earnings and profits. Pursuant to Internal Revenue Code
Section 857(b)(9), these distributions are required to be included in
the taxpayer's 2005 taxable income. The remaining amount of the
preferred distribution paid in January 2006 will be subject to
taxation in 2006. Therefore, the corrected common and preferred
distributions, as recalculated below, are taxable to shareholders in
2005.
The corrected release reads:
WINSTON HOTELS INC. REPORTS INCOME TAX TREATMENT FOR 2005 COMMON
AND PREFERRED STOCK SHARES
Winston Hotels, Inc. (NYSE: WXH), today announced that the income
tax treatment for the 2005 Common Stock distributions for Winston
Hotels, Inc., (CUSIP #97563A 10 2) traded under the ticker symbol WXH
is as follows:
-0-
*T
Dividends Long-Term
Declaration Record Payment Paid Per Ordinary Return of Capital
Date Date Date Share Income Capital Gain
----------------------------------------------------------------------
3/10/05 3/31/05 4/15/05 $0.15 $0.15 $0.00 $0.00
----------------------------------------------------------------------
6/13/05 6/30/05 7/15/05 $0.15 $0.15 $0.00 $0.00
----------------------------------------------------------------------
9/21/05 9/30/05 10/14/05 $0.15 $0.15 $0.00 $0.00
----------------------------------------------------------------------
Total: $0.45 $0.45 $0.00 $0.00
Percentage: 100% 100% 0% 0%
*T
The Company also announced that the income tax treatment for the
2005 Series B Preferred Stock distributions for Winston Hotels, Inc.,
(CUSIP #97563A 30 0) traded under the ticker symbol WXH PrB is as
follows:
-0-
*T
Long-
Dividends Term
Declaration Record Payment Paid Per Ordinary Return of Capital
Date Date Date Share Income Capital Gain
----------------------------------------------------------------------
3/10/05 3/31/05 4/15/05 $0.50 $0.50 $0.00 $0.00
----------------------------------------------------------------------
6/13/05 6/30/05 7/15/05 $0.50 $0.50 $0.00 $0.00
----------------------------------------------------------------------
9/21/05 9/30/05 10/14/05 $0.50 $0.50 $0.00 $0.00
----------------------------------------------------------------------
12/12/05 12/30/05 01/16/06 $0.36 $0.36 $0.00 $0.00
----------------------------------------------------------------------
Total: $1.86 $1.86 $0.00 $0.00
Percentage: 100% 100% 0% 0%
*T
The company did not incur any foreign taxes.
About the Company
Raleigh, North Carolina-based Winston Hotels, Inc. is a real
estate investment trust specializing in the development, acquisition,
and repositioning of, and provision of subordinated financing to,
premium limited-service, upscale extended-stay and full-service
hotels, with a portfolio increasingly weighted toward the leading
brands in the lodging industry's upscale segment. The Company
currently owns or is invested in 56 hotel properties in 17 states
having an aggregate of 7,668 rooms. This includes 49 wholly owned
properties with an aggregate of 6,720 rooms, a 60 percent ownership
interest in a joint-venture that owns one hotel with 138 rooms; a 49
percent ownership interest in a joint venture that owns one hotel with
118 rooms, a 48.78 percent ownership interest in a joint venture that
owns one hotel with 147 rooms, and a 13.05 percent ownership interest
in a joint venture that owns four hotels with an aggregate of 545
rooms. The Company also currently has loans outstanding to owners of
14 hotels with an aggregate of 3,337 rooms. These loans total $38.1
million. The company does not hold an ownership interest in any of the
hotels for which it has provided financing. For more information about
Winston Hotels, Inc. visit the company's Web site at
www.winstonhotels.com.