INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of components of income tax expense and total provision (benefit) for TRS and Operating Partnership

The components of income tax expense (benefit) for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):


	2020		2019		2018
Current:
Federal	$	(904)	$	869	$	(67)
State and local	224		643		(425)
Deferred:
Federal	1,548		(32)		(279)
State and local	508		20		(151)

Income tax expense (benefit)	$	1,376	$	1,500	$	(922)

Schedule of reconciliation of federal statutory rate to effective income tax rate for TRS

Below is a reconciliation between the provision for income taxes and the amounts computed by applying the federal statutory income tax rate to the income or loss before taxes:


	2020		2019		2018
Statutory federal income tax provision	$	(31,052)	$	17,608	$	18,943
Nontaxable income of the REITs	19,963		(16,996)		(19,073)

State income taxes, net of federal tax benefit	(3,079)		568		266
Provision to return and deferred adjustment	(16)		(6)		75
Effect of permanent differences and other	319		326		(184)
Tax benefit from deduction for partnership distributions	—		—		(949)

Change in valuation allowance	15,241		—		—
Income tax provision (benefit)	$	1,376	$	1,500	$	(922)

Schedule of significant components of deferred tax assets (liabilities)

Significant components of our TRSs deferred tax assets (liabilities) are as follows (in thousands):


	2020		2019
Tax carryforwards	$	13,521	$	38

Accrued expenses	1,537		2,068
Other	185		32

Valuation allowance	(15,241)		—
Net deferred tax assets	$	2	$	2,138

Gross deferred tax assets	$	15,267	$	2,172
Gross deferred tax liabilities	(24)		(34)
Valuation allowance	(15,241)		—
Net deferred tax assets	$	2	$	2,138

Schedule of Characterization of Distributions

For income tax purposes, distributions paid consist of ordinary income and capital gains or a combination thereof. For the years ended December 31, 2020, 2019, and 2018 distributions paid per share were characterized as follows (unaudited):


	2020				2019				2018
	Amount		%		Amount		%		Amount		%
Common Stock
Ordinary income	$	0.0944	52.46	%	$	0.6132	85.16	%	$	0.7200	100.00	%
Capital gain distributions	—		—	%	0.1068		14.84	%	—		—	%
Return of capital	0.0856		47.54	%	—		—	%	—		—	%
Total	$	0.1800	100.00	%	$	0.7200	100.00	%	$	0.7200	100.00	%






Preferred Stock - Series C
Ordinary income	$	—	—	%	$	—	—	%	$	0.5393	100.00	%

Total	$	—	—	%	$	—	—	%	$	0.5393	100.00	%

Preferred Stock - Series D
Ordinary income	$	0.4031	25.00	%	$	1.3732	85.16	%	$	1.6125	100.00	%
Capital gain distributions	—		—	%	0.2393		14.84	%	—		—	%
Return of capital	1.2094		75.00	%	—		—	%	—		—	%
Total	$	1.6125	100.00	%	$	1.6125	100.00	%	$	1.6125	100.00	%

Preferred Stock - Series E
Ordinary income	$	0.3906	25.00	%	$	1.3307	85.16	%	$	1.5625	100.00	%
Capital gain distributions	—		—	%	0.2318		14.84	%	—		—	%
Return of capital	1.1719		75.00	%	—		—	%	—		—	%
Total	$	1.5625	100.00	%	$	1.5625	100.00	%	$	1.5625	100.00	%