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Western Asset Mortgage Capital Corporation Announces Tax Characteristics of 2020 Dividends

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Western Asset Mortgage Capital Corporation (the "Company") (NYSE: WMC) announced today the tax treatment of its common stock dividends declared in 2020.

The below information is provided to assist the Company’s stockholders with tax reporting requirements related to dividend distribution of taxable income by the Company. Stockholders should receive IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions. These tax statements should be reviewed to ensure that they agree with the information provided below.

Tax Treatment of Distributions

The Federal Income Tax classification of the 2020 dividend distributions on the Company’s common stock, as it is expected to be reported on Form 1099-DIV, is set forth in the following table:

Record Date

Payment Date

Distribution Rate
per Share

Total Ordinary
Dividends

Qualified
Dividends

Total Capital
Gains Distributions

Section 199A
Dividends(3)

Total Return
of Capital(4)

12/28/2020

1/26/2021

$0.06(1)

-

-

-

-

-

10/2/2020

10/26/2020

$0.05

-

-

-

-

$0.05

12/31/2019

1/24/2020

$0.31(2)

$0.155(2)

-

-

$0.155

$0.155

Total

$0.42

$0.155

-

-

$0.155

$0.205

(1)

The cash distributions made on January 26, 2021 with a record date of December 28, 2020 are treated as received by stockholders on January 26, 2021 and taxable in calendar year 2021. The taxable characteristics of these distributions will be determined in January of 2022.

(2)

The cash distributions made on January 24, 2020 with a record date of December 31, 2019 had only 50% treated as received by stockholders on December 31, 2019 and taxable in calendar year 2019 as ordinary income with the remaining 50% taxable in calendar year 2020 and treated as "Return of Capital".

(3)

Section 199A dividends are a subset of, and included in, the ordinary dividends amount.

(4)

The cash distributions made in the calendar year 2020 are considered "Return of Capital" due the adverse impact of the COVID-19 pandemic on the Company’s operations. The Company estimated taxable losses for the fiscal year ending December 31, 2020.

Consult Your Tax Advisor

Stockholders may have additional reporting obligations to the Internal Revenue Service and/or other tax authorities.

The U.S. federal income tax treatment of holding The Company’s common stock to any particular stockholder will depend on the stockholder’s particular tax circumstances. You are urged to consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you, in light of your particular investment or tax circumstances, of acquiring, holding and disposing of the Company’s common stock.

The Company does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein.

ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION

Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a diverse portfolio of assets consisting of Residential Whole Loans, Commercial Loans, Non-Agency CMBS, Non-Agency RMBS, GSE Risk Transfer Securities and to a lesser extent Agency RMBS, Agency CMBS and ABS. The Company’s investment strategy may change, subject to the Company’s stated investment guidelines, and is based on its manager Western Asset Management Company, LLC's perspective of which mix of portfolio assets it believes provide the Company with the best risk-reward opportunities at any given time. The Company is externally managed and advised by Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly-owned subsidiary of Franklin Resources, Inc. Please visit the Company’s website at www.westernassetmcc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005882/en/

Contacts

Investor Relations Contact:
Larry Clark
Financial Profiles, Inc.
(310) 622-8223
lclark@finprofiles.com