Core earnings were .99 cents in Q4. Comprehensive income was $2.27. Non core earnings were $1.28, not a loss. The "Other Income" items you cited are only a component of the non-core earnings.
Taxable earnings were 1.61. Assuming core earnings were approximately equal for GAAP & Tax, that leaves .62 taxable income from non core activities (like trading and hedging).
That .62 would have to fall by .36 (more than 50%) to put taxable income below 1.25 for Q1. If you don't want to look at it that way, than total taxable income has to fall from 1.61 to below 1.25 (over a 20% drop).
Undistributed earnings will not be impacted unless that happens and that account actually grew in Q4 in real terms, so it wasn't eaten into in Q4. It shrank on a per share basis because of the SPO.
I was trying to figure out why so many believe management will have to rely on the undistributed earnings to cover the 1.25 going forward absent another SPO.
Its possible, but I don't see where the Q4 numbers support that idea.