Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our provision for income taxes consists of the following:

	For the Year Ended December 31,
	2025		2024		2023
Current:
Federal	$	1,147	$	—	$	(168)
State	596		467		613
	1,743		467		445
Deferred:
Federal	—		—		—
State	—		—		—
	—		—		—
Income tax provision	$	1,743	$	467	$	445

The table below is a reconciliation of the statutory income tax rate to the effective tax rate for 2025, in accordance with the updated requirements of ASU 2023-09. See Note 2 for further information on the adoption of ASU 2023-09:

	For the Year Ended December 31, 2025
	Amount		Percent
Taxes at statutory U.S. federal income tax rate	$	(59,407)	21	%
Nontaxable income	60,554		(21.4)	%
State and local income taxes, net of federal tax benefit (1)	596		(0.2)	%
Effective tax rate	$	1,743	(0.6)	%

(1)States taxes in Texas make up a majority (greater than 50%) of the tax effect in this category.

Income taxes paid (net of refunds) for the year ended December 31, 2025 were $1,776, with the majority of payments attributable to Texas state and federal taxes, in the amount of $626 and $1,150, respectively.

As previously disclosed, for the years ended December 31, 2024 and 2023, the following table reconciles the statutory income tax rate to the effective tax rate prior to the adoption of ASU 2023-09:

	For the Year Ended December 31,
	2024		2023
Taxes at statutory U.S. federal income tax rate	21.0	%	21.0	%
Nontaxable income	(21.0)	%	(21.0)	%
Federal excise tax	—	%	0.1	%
State and local income taxes, net of federal tax benefit	(0.1)	%	(0.2)	%
Effective tax rate	(0.1)	%	(0.1)	%

Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities in our consolidated balance sheets and the amounts used for income tax purposes and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Significant components of our deferred tax assets

and liabilities were as follows:

	For the Year Ended December 31,
	2025		2024
Deferred tax assets:
Deferred income	$	3,458	$	2,388
Fair market value adjustment	(2,053)		(1,862)
Other	1,983		1,225
Tax loss carryforwards	110,013		102,940
	113,401		104,691
Valuation allowance	(113,401)		(104,691)
	—		—
Net deferred income taxes	$	—	$	—

Because of our TRSs' history of losses, we are not able to conclude that it is more likely than not we will realize the future benefit of our deferred tax assets; thus we have provided a 100% valuation allowance as of December 31, 2025 and 2024. If and when we believe it is more likely than not that we will recover our deferred tax assets, we will reverse the valuation allowance as an income tax benefit in our consolidated statements of comprehensive income (loss). As of December 31, 2025, our consolidated TRSs had net operating loss carry forwards for federal income tax purposes of approximately $424,755, which do not expire. As of December 31, 2025, we, excluding our subsidiaries, had net operating loss carry forwards for federal income tax purposes of approximately $933,931, which do not expire. In the normal course of business, income tax authorities in various income tax jurisdictions conduct routine audits of our income tax returns filed in prior years. Income tax years subsequent to 2021 may be open to examination in some of the income tax jurisdictions in which we operate.