Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company has elected to be taxed as a REIT under the applicable provisions of the Code for every year beginning with the year ended December 31, 2022. The Company has also elected for some of its subsidiaries to be treated as taxable REIT subsidiaries (“TRSs”), which are subject to federal and state income taxes.

For the years ended December 31, 2025, 2024 and 2023 the Company incurred income tax expense related to its DST Program through its TRS and foreign entities of $774, $3,820 and $230, respectively.

The components of income tax expense for the year ended December 31, 2025 and 2024 were as follows:

	Years Ended
	December 31, 2025		December 31, 2024
Income (loss) before income taxes
Domestic net income before income taxes	$	494,006	$	186,527
Foreign net loss before income taxes	(2,025)		(9,622)
Total net income before income taxes	$	491,981	$	176,905
Current expense
U.S. Federal	$	60	$	247
U.S. State	38		135
Foreign	926		2,217
Total current expense	$	1,024	$	2,599
Deferred tax (benefit) expense
U.S. Federal	$	(578)	$	31
U.S. State	(146)		14
Foreign	474		1,176
Total deferred tax (benefit) expense	$	(250)	$	1,221
Total income tax expense, net	$	774	$	3,820

The table below reconciles the difference between the 21.0% federal statutory rate and the Company’s effective tax rate of 0.2% based on net income before income taxes for the year ended December 31, 2025.

	Amount		Percent
Net income before income taxes	$	491,981
Federal provision at statutory tax rate	$	103,316	21.0	%
REIT income not subject to taxes	(103,094)		(21.0)	%
Rate differential	(83)		—	%
State and local taxes, net of federal benefit	(104)		—	%
Return to provision	23		—	%
Corporate interest restriction	507		0.1	%
Other non-deductible items	354		0.1	%
Prior period adjustments	(145)		—	%
Total provision for income taxes	$	774	0.2	%

The table below details the Company’s income taxes paid, net of refunds received, for the year ended December 31, 2025:

	Year Ended
	December 31, 2025
US Federal	$	248
US State and local
California	$	106
North Carolina	39
Alabama	6
Other	5
Total	$	156
Foreign
Canada	$	225
United Kingdom	986
Germany	201
Total	$	1,412
Total income taxes paid	$	1,816

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for GAAP purposes and the amount used for income tax purposes. As of December 31, 2025, the Company had a net deferred tax asset of $754 included within Other assets in the Consolidated Balance Sheets (primarily comprised of organizational expenses of $302 and a deferred tax asset of $452 for basis differences in real property and swaps). As of December 31, 2024, the Company had a net deferred tax asset of $29 included within Other assets in the Consolidated Balance Sheets, comprised of a deferred tax asset related to its DST Program of $383 for organizational expenses and a deferred tax liability of $354 for basis differences in real property. As of December 31, 2025, the Company had a foreign deferred tax asset and liability (primarily related to straight-line rent adjustments) of $415 and $2,130, respectively, as well as a deferred tax asset related to interest expenses of $1,640 net of a valuation allowance of $1,640.

Although the Company intends to continue to operate in a manner that will enable it to qualify as a REIT, such qualification will depend on the Company’s ability to meet, on a continuing basis, various distribution, stock ownership and other tests. Our tax treatment of distributions per common share for the years ended December 31, 2025 and 2024 and the period from Inception through December 31, 2023 were 70%, 100%, and 100% return of capital distributions.

Generally, the Company is subject to audit under the statute of limitations by the Internal Revenue Service (“IRS”) for the year ended December 31, 2022 and subsequent years, and is subject to audit by state taxing authorities for the year ended December 31, 2022 and subsequent years. The Company is subject to audit under the statutes of limitation by the Canada Revenue Agency and provincial authorities with respect to its Canadian entities for the year ended December 31, 2022 and subsequent years.