PASADENA, Calif., February 2, 2022–(BUSINESS WIRE)–Western Asset Mortgage Capital Corporation (the “Company”) (NYSE: WMC) today announced the tax treatment of its common stock dividends declared in 2021.

The information below is provided to assist shareholders of the Company with tax reporting requirements relating to the distribution of dividends from taxable income by the Company. Shareholders should receive IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions. These tax returns should be reviewed to ensure that they agree with the information provided below.

Tax treatment of distributions

The federal income tax classification of the 2021 dividend distributions on the Company’s common stock, as it should be reported on Form 1099-DIV, is shown in the following table:

Registration
Dated

Payment
Dated

Distribution
Price per
To share

Total
Ordinary
Dividends

Qualified
Dividends

total capital
Earnings
Distributions

Section 199A
Dividends(3)

Full return
of the capital(4)

31/12/2021

01/26/2022

$0.06(1)

04/10/2021

26/10/2021

$0.06

$0.06

02/07/2021

07/26/2021

$0.06

$0.06

02/04/2021

04/26/2021

$0.06

$0.06

28/12/2020

01/26/2021

$0.06(2)

$0.06

Total

$0.30

$0.24

(1)

Cash distributions made on January 26, 2022 with a record date of December 31, 2021 are treated as received by shareholders on January 26, 2022 and taxable in calendar year 2022. The taxable characteristics of such distributions will be determined by January 2023.

(2)

Cash distributions made on January 26, 2021 with a record date of December 28, 2020 were treated as received by shareholders on January 26, 2021 and taxable in calendar year 2021.

(3)

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

(4)

Cash distributions made during the 2021 calendar year are considered a “return of capital” due to the negative impact of the COVID-19 pandemic on the Company’s operations. The Company has estimated taxable losses for the year ended December 31, 2021.

Consult your tax advisor

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

The US federal tax treatment of the ownership of Company Common Stock by a particular Shareholder will depend on the Shareholder’s particular tax position. You are urged to consult your tax advisor regarding U.S. federal, state, local, and foreign income and other tax consequences to you in light of your particular investment or tax position, acquisition, holding, and the sale of ordinary shares of the Company.

The Company does not provide tax, accounting or legal advice. Any tax statements contained herein were not designed or written for use and may not be relied upon for the purpose of avoiding US, federal, state or local tax penalties. Please consult your advisor regarding 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, acquires and manages a diversified portfolio of assets consisting of whole residential loans, commercial loans, non-agency CMBS, non-agency RMBS, GSE risk and, to a lesser extent, agency RMBS, agency CMBS and ABS. The Company’s investment strategy may change and, for example, is changing as described above, subject to the investment guidelines set forth by the Company, and is based on the perspective of its manager Western Asset Management Company, LLC as to which portfolio asset mix it believes provides 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, a Securities and Exchange Commission registered investment adviser and a wholly owned subsidiary of Franklin Resources, Inc. Please visit the company’s website at ‘address www.westernassetmcc.com.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220201006219/en/

contacts

Contact with Investor Relations:
larry clark
Financial Profiles, Inc.
(310) 622-8223
[email protected]