Vornado Realty Trust and Sunstone Hotel Investors both announced dividend policies late Wednesday that will give payouts made up of both stocks and cash. The new dividend policies result from recent IRS guidance that
allows all REITs to distribute 2009 dividends in a cash-stock combination, with the stock component accounting for as much as 90% of the total dividend payout. The IRS guidance allows REITs to conserve
cash and strengthen their balance sheets in a credit-constrained environment.