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Distributions
12 Months Ended
Dec. 31, 2016
Distributions  
Distributions

11. Distributions

We must distribute at least 90% of our taxable income in order to continue to qualify as a REIT. This distribution requirement can be satisfied by current year distributions or, to a certain extent, by distributions in the following year.

For federal tax purposes, distributions to stockholders are treated as ordinary income, capital gains, return of capital or a combination thereof. Distributions for 2016, 2015 and 2014 were cash distributions. The federal income tax classification of the per share common stock distributions are as follows (unaudited):

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2016

 

2015

 

2014

 

Ordinary taxable distribution

    

$

1.485

    

$

1.690

    

$

1.474

 

Return of capital

 

 

0.556

 

 

0.357

 

 

0.196

 

Unrecaptured Section 1250 gain

 

 

0.149

 

 

0.023

 

 

0.370

 

Total

 

$

2.190

 

$

2.070

 

$

2.040