INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020, and 2019 are as follows (in thousands):


	2021		2020		2019
Current:
Federal	$	1,036	$	(904)	$	869
State and local	456		224		643
Deferred:
Federal	(19)		1,548		(32)
State and local	—		508		20

Income tax expense	$	1,473	$	1,376	$	1,500

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:


	2021		2020		2019
Statutory federal income tax provision	$	(14,093)	$	(31,052)	$	17,608
Nontaxable income of the REITs	16,812		19,963		(16,996)

State income taxes, net of federal tax benefit	891		(3,079)		568
Provision to return and deferred adjustment	—		(16)		(6)
Effect of permanent differences and other	99		319		326


Change in valuation allowance	(2,236)		15,241		—
Income tax provision	$	1,473	$	1,376	$	1,500

Schedule of significant components of deferred tax assets (liabilities)

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


	2021		2020
Tax carryforwards	$	11,251	$	13,521

Accrued expenses	1,704		1,537
Other	71		185

Valuation allowance	(13,005)		(15,241)
Net deferred tax assets	$	21	$	2

Gross deferred tax assets	$	13,066	$	15,267
Gross deferred tax liabilities	(40)		(24)
Valuation allowance	(13,005)		(15,241)
Net deferred tax assets	$	21	$	2

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, 2021, 2020, and 2019 distributions paid per share were characterized as follows (unaudited):


	2021				2020				2019
	Amount		%		Amount		%		Amount		%
Common Stock
Ordinary income	$	—	—	%	$	0.0944	52.46	%	$	0.6132	85.16	%
Capital gain distributions	—		—	%	—		—	%	0.1068		14.84	%
Return of capital	—		—	%	0.0856		47.54	%	—		—	%
Total	$	—	—	%	$	0.1800	100.00	%	$	0.7200	100.00	%











Preferred Stock - Series D
Ordinary income	$	—	—	%	$	0.4031	25.00	%	$	1.3732	85.16	%
Capital gain distributions	—		—	%	—		—	%	0.2393		14.84	%
Return of capital	1.2228		100.00	%	1.2094		75.00	%	—		—	%
Total	$	1.2228	100.00	%	$	1.6125	100.00	%	$	1.6125	100.00	%

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

Preferred Stock - Series F
Ordinary income	$	—	—	%	$	—	—	%	$	—	—	%
Capital gain distributions	—		—	%	—		—	%	—		—	%
Return of capital	0.4406		100.00	%	—		—	%	—		—	%
Total	$	0.4406	100.00	%	$	—	—	%	$	—	—	%