INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021, and 2020 are as follows (in thousands):


	2022		2021		2020
Current:
Federal	$	1,953	$	1,036	$	(904)
State and local	1,717		456		224
Deferred:
Federal	(59)		(19)		1,548
State and local	—		—		508

Income tax expense	$	3,611	$	1,473	$	1,376

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:


	2022		2021		2020
Statutory federal income tax provision	$	1,014	$	(14,093)	$	(31,052)
Nontaxable income of the REITs	1,124		16,812		19,963

State income taxes, net of federal tax benefit	1,644		891		(3,079)
Provision to return and deferred adjustment	81		—		(16)
Effect of permanent differences and other	246		99		319
Deferred assets transferred with REIT stock sale	730		—		—


Change in valuation allowance	(1,228)		(2,236)		15,241
Income tax provision	$	3,611	$	1,473	$	1,376

Schedule of Significant Components of Deferred Tax Assets (Liabilities)

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


	2022		2021
Tax carryforwards	$	10,312	$	11,251

Accrued expenses	1,421		1,704
Other	124		71

Valuation allowance	(11,777)		(13,005)
Net deferred tax assets	$	80	$	21

Gross deferred tax assets	$	11,883	$	13,066
Gross deferred tax liabilities	(26)		(40)
Valuation allowance	(11,777)		(13,005)
Net deferred tax assets	$	80	$	21

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, 2022, 2021, and 2020 distributions paid per share were characterized as follows:


	2022				2021				2020
	Amount		%		Amount		%		Amount		%
Common Stock
Ordinary non-qualified dividend income	$	0.0471	58.82	%	$	—	—	%	$	0.0944	52.46	%
Ordinary qualified dividend income	0.0106		13.26	%	—		—	%	—		—	%
Capital gain distributions	0.0223		27.92	%	—		—	%	—		—	%
Return of capital	—		—	%	—		—	%	0.0856		47.54	%
Total	$	0.0800	100.00	%	$	—	—	%	$	0.1800	100.00	%











Preferred Stock - Series D
Ordinary non-qualified dividend income	$	—	—	%	$	—	—	%	$	0.4031	25.00	%
Capital gain distributions	—		—	%	—		—	%	—		—	%
Return of capital	—		—	%	1.2228		100.00	%	1.2094		75.00	%
Total	$	—	—	%	$	1.2228	100.00	%	$	1.6125	100.00	%

Preferred Stock - Series E
Ordinary non-qualified dividend income	$	0.9191	58.82	%	$	—	—	%	$	0.3906	25.00	%
Ordinary qualified dividend income	0.2072		13.26	%	—		—	%	—		—	%
Capital gain distributions	0.4363		27.92	%	—		—	%	—		—	%
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 non-qualified dividend income	$	0.8639	58.82	%	$	—	—	%	$	—	—	%
Ordinary qualified dividend income	0.1947		13.26	%	—		—	%	—		—	%
Capital gain distributions	0.4101		27.92	%	—		—	%	—		—	%
Return of capital	—		—	%	0.4406		100.00	%	—		—	%
Total	$	1.4687	100.00	%	$	0.4406	100.00	%	$	—	—	%