Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

INCOME TAXES

NOTE 9. INCOME TAXES

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to its shareholders. It is the Company's current intention to adhere to these requirements and maintain the Company's qualification for taxation as a REIT. As a REIT, the Company generally is not subject to federal corporate income tax on that portion of its taxable income that is currently distributed to shareholders. However, as a REIT, the Company is still subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. In addition, taxable income from non-REIT activities managed through taxable-REIT subsidiaries is subject to federal, state and local income taxes. PHL is a TRS of the Company and as such is required to pay federal and state income taxes as a regular C Corporation.

The Company's provision (benefit) for income taxes for PHL, the Company's TRS, consists of the following (in thousands):

	For the Year Ended December 31,
	2011		2010			2009
Federal	$	—	$	—		$	—
Current		374		—			—
Deferred		70		(70	)		—
State and local							—
Current		110		—			—
Deferred		10		(10	)		—
Income tax expense (benefit)	$	564	$	(80	)	$	—

A reconciliation of the statutory federal tax expense (benefit) to the Company's income tax expense (benefit) for our TRS is as follows:

	For the Year Ended December 31,
	2011		2010			2009
Statutory federal tax expense (benefit) at 34%	$	444	$	(70	)	$	—
State income tax expense (benefit)		120		(10	)		—
	$	564	$	(80	)	$	—

For the year ended December 31, 2010, the Company had a deferred tax asset of $0.1 million associated with its net operating loss. This net operating loss was used to offset 2011 taxable income.