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Income Taxes
 3 Months Ended
Mar. 31, 2026
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.
The components of income tax (benefit) expense for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended
March 31, 2026March 31, 2025
Income before income taxes
Domestic net income before income taxes
$151,227 $92,820 
Foreign net income before income taxes
19,975 16,354 
Total net income before income taxes
$171,202 $109,174 
Current tax expense
U.S. Federal$901 $— 
U.S. State220 — 
Foreign1,051 416 
Total current expense
$2,172 $416 
Deferred tax (benefit) expense
U.S. Federal$(324)$(159)
U.S. State(99)(56)
Foreign(203)78 
Total deferred tax (benefit) expense$(626)$(137)
Total income tax expense, net
$1,546 $279 
Income tax expense is lower than the total net income before income taxes at the 21.0% federal statutory rate as a result of fair value adjustments on interest rate swaps and gains on sales of DST Interests, as well as the impact of state and local taxes.
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 March 31, 2026, the Company had a deferred tax asset of $1,737 included within Other assets in the Condensed Consolidated Balance Sheet (primarily comprised of amortization of organizational expense, basis differences, fair value adjustments, and NOL carryforwards). As of March 31, 2026, the Company had a deferred tax liability of $1,984 included within Other liabilities in the Condensed Consolidated Balance Sheet, primarily related to temporary differences on real property and straight-line rent adjustments, respectively, for its foreign entities. As of December 31, 2025, the Company had a net deferred tax asset of $754 included within Other assets in the Condensed Consolidated Balance Sheet (primarily comprised of organizational expenses and basis differences in real property and swaps). 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 expense of $1,640 net of a valuation allowance of $1,640.
Income taxes paid for the three months ended March 31, 2026 and 2025 were $571 and $926, respectively. Income tax paid for the three months ended March 31, 2026 was comprised of $1 U.S. Federal, $35 U.S. State and $535 Foreign income taxes. Income taxes paid for the three months ended March 31, 2025 were comprised of $80 U.S. State and $846 Foreign income taxes.
Generally, the Company is subject to audit under the statute of limitations by the Internal Revenue Service (“IRS”) for the year ended December 31, 2023 and subsequent years, and is subject to audit by state taxing authorities for the year ended December 31, 2023 and subsequent years. The Company is subject to audit under the statute of limitations by the Canada Revenue Agency and provincial authorities with respect to its Canadian entities for the year ended December 31, 2023 and subsequent years.