INCOME TAXES

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

We record income tax expense on our consolidated statements of operations related to the activities of our taxable REIT subsidiaries or international activities associated with our DST Program and our investments in unconsolidated joint venture partnerships. We have concluded that there was no impact related to uncertain tax positions from our results of operations for the years ended December 31, 2025, 2024 and 2023. We had a net deferred tax liability of approximately $6.7 million and $0.1 million as of December 31, 2025 and 2024, respectively. During the year ended December 31, 2025, we recorded $18.0 million of income tax expense, of which $6.7 million is deferred income tax expense. During the year ended December 31, 2024, we recorded $11.8 million of income tax expense. During the year ended December 31, 2023, we recorded no income tax expense. The U.S. is the major tax jurisdiction for us and the earliest tax year subject to examination by the taxing authority is 2022.

The table below summarizes our income tax expense for the year ended December 31, 2025:

	For the Year Ended
($ in thousands)	December 31, 2025
Federal	$	14,540
State and local	2,162
Foreign	1,251
	$	17,953

The table below summarizes our income taxes paid for the year ended December 31, 2025:

	For the Year Ended
($ in thousands)	December 31, 2025
Federal	$	12,710
State and local	1,980
Foreign	330
	$	15,020

Distributions

Distributions to stockholders are characterized for U.S. federal income tax purposes as: (i) ordinary income; (ii) non-taxable return of capital; or (iii) long-term capital gain. Distributions that exceed our current and accumulated tax earnings and profits constitute a return of capital and reduce the stockholders’ basis in the common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the stockholders’ basis in the common shares, the distributions will generally be treated as a gain from the sale or exchange of such stockholders’ common shares. All distributions (other than distributions designated as capital gain distributions and distributions traceable to distributions from a taxable REIT subsidiary) which are received by a pass-through entity or an individual, are eligible for a 20% deduction from gross income. At the beginning of each year, we notify our stockholders of the taxability of the distributions paid during the preceding year. In any given year, the overall taxability of distributions could be higher or lower than the preceding year.

The following unaudited table summarizes the annual information reported to investors regarding the taxability of distributions on common stock, as a percentage of total distributions, for the years ended December 31, 2025, 2024 and 2023. This information assumes that an investor owned shares of our common stock for the full calendar years.

	For the Year Ended December 31,
	2025		2024		2023
Ordinary income	12.68	%	5.79	%	—	%
Non-taxable return of capital	87.32		94.21		100.00
Capital gain	—		—		—
Total distributions	100.00	%	100.00	%	100.00	%

The increase in taxable income in 2025 compared to 2024 is primarily due to a tax gain related to the activities of our taxable REIT subsidiaries associated with our DST Program, and the increase in taxable income in 2024 compared to 2023 is also primarily due to a tax gain related to the activities of our taxable REIT subsidiaries associated with our DST Program.