INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021 are as follows (in thousands):


	2023		2022		2021
Current:
Federal	$	1,151	$	1,953	$	1,036
State and local	1,563		1,717		456
Deferred:
Federal	84		(59)		(19)


Income tax expense	$	2,798	$	3,611	$	1,473

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 (in thousands):


	2023		2022		2021
Statutory federal income tax provision	$	(5,317)	$	1,014	$	(14,093)
Nontaxable income of the REITs	4,563		1,124		16,812

State income taxes, net of federal tax benefit	1,158		1,644		891
Provision to return and deferred adjustment	50		81		—
Effect of permanent differences and other	235		246		99
Deferred assets transferred with REIT stock sale	—		730		—


Change in valuation allowance	2,109		(1,228)		(2,236)
Income tax provision	$	2,798	$	3,611	$	1,473

Schedule of Significant Components of Deferred Tax Assets (Liabilities)

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


	December 31,
	2023		2022
Tax carryforwards	$	12,098	$	10,312

Accrued expenses	1,634		1,421
Other	150		124
Total	13,882		11,857
Valuation allowance	(13,886)		(11,777)
Net deferred tax assets	$	(4)	$	80

Gross deferred tax assets	$	13,906	$	11,883
Gross deferred tax liabilities	(24)		(26)
Valuation allowance	(13,886)		(11,777)
Net deferred tax (liabilities) assets	$	(4)	$	80

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, 2023, 2022 and 2021 distributions paid per share were characterized as follows:


	For the Year Ended December 31,
	2023				2022				2021
	Amount		%		Amount		%		Amount		%
Common Stock
Ordinary non-qualified dividend income	$	0.1940	88.19	%	$	0.0471	58.82	%	$	—	—	%
Ordinary qualified dividend income	0.0078		3.54	%	0.0106		13.26	%	—		—	%
Capital gain distributions	—		—	%	0.0223		27.92	%	—		—	%
Return of capital	0.0182		8.27	%	—		—	%	—		—	%
Total	$	0.2200	100.00	%	$	0.0800	100.00	%	$	—	—	%











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

Preferred Stock - Series E
Ordinary non-qualified dividend income	$	1.3779	88.19	%	$	0.9191	58.82	%	$	—	—	%
Ordinary qualified dividend income	0.0553		3.54	%	0.2072		13.26	%	—		—	%
Capital gain distributions	—		—	%	0.4363		27.92	%	—		—	%
Return of capital	0.1293		8.27	%	—		—	%	1.5625		100.00	%
Total	$	1.5625	100.00	%	$	1.5625	100.00	%	$	1.5625	100.00	%

Preferred Stock - Series F
Ordinary non-qualified dividend income	$	1.2952	88.19	%	$	0.8639	58.82	%	$	—	—	%
Ordinary qualified dividend income	0.0520		3.54	%	0.1947		13.26	%	—		—	%
Capital gain distributions	—		—	%	0.4101		27.92	%	—		—	%
Return of capital	0.1215		8.27	%	—		—	%	0.4406		100.00	%
Total	$	1.4687	100.00	%	$	1.4687	100.00	%	$	0.4406	100.00	%