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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Reconciliation of GAAP net loss to taxable income (loss)
The following reconciles GAAP net loss to taxable income (loss) for the years ending December 31, 2012, 2011 and 2010 (in thousands):

 
 
2012
 
 
2011
 
 
2010
 
 
 
Estimate
 
 
Actual
 
 
Actual
 
GAAP net loss
 
$
(39,395
)
 
$
(126,903
)
 
$
(2,618
)
Less:  Taxable REIT subsidiary GAAP net income (loss)
 
 
46,765
 
 
 
(9,248
)
 
 
-
 
GAAP net income (loss) from REIT operations (1)
 
 
7,370
 
 
 
(136,151
)
 
 
(2,618
)
GAAP to tax adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
     Depreciation and amortization
 
 
11,035
 
 
 
13,969
 
 
 
12,784
 
     Gains and losses from capital transactions
 
 
(109,444
)
 
 
53,699
 
 
 
(108
)
     Share-based compensation expense
 
 
420
 
 
 
1,341
 
 
 
1,319
 
     Deferred compensation distributions
 
 
(224
)
 
 
(1,902
)
 
 
(687
)
     Amortization of mortgage loan discount
 
 
30
 
 
 
(335
)
 
 
(772
)
     Allowance for doubtful accounts
 
 
(792
)
 
 
(761
)
 
 
282
 
     Vesting of restricted shares and dividends
 
 
(274
)
 
 
(1,175
)
 
 
(4,521
)
     Deferred revenue
 
 
(578
)
 
 
(2,525
)
 
 
3,242
 
     Capitalizable acquisition costs
 
 
2,078
 
 
 
11,213
 
 
 
240
 
     Straight line rent
 
 
(2,815
)
 
 
(2,169
)
 
 
(142
)
     Interest expense
 
 
-
 
 
 
2,338
 
 
 
-
 
     Nontaxable dividend income
 
 
(3,346
)
 
 
(1,986
)
 
 
-
 
     Other differences
 
 
215
 
 
 
192
 
 
 
(19
)
Taxable income (loss) before adjustments
 
 
(96,325
)
 
 
(64,252
)
 
 
9,000
 
Less:  NOL carry forward
 
 
-
 
 
 
-
 
 
 
-
 
Adjusted taxable income subject to 90% dividend requirement
 
$
-
 
 
$
-
 
 
$
9,000
 

(1)
GAAP net income (loss) from REIT operations is net of amounts attributable to noncontrolling interests.
Components of income tax expense (benefit)
The components of income tax expense (benefit) for the years ended December 31, 2012, 2011, and 2010 are as follows (in thousands):

 
 
Year Ended December 31
 
 
 
2012
 
 
2011
 
 
2010
 
Current:
 
Estimate
 
 
Actual
 
 
Actual
 
     Federal
 
$
914
 
 
$
420
 
 
$
1
 
     State
 
 
202
 
 
 
66
 
 
 
1
 
Total Current
 
 
1,116
 
 
 
486
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred:
 
 
 
 
 
 
 
 
 
 
 
 
     Federal
 
 
(722
)
 
 
(363
)
 
 
-
 
     State
 
 
(133
)
 
 
(67
)
 
 
-
 
Total Deferred
 
 
(855
)
 
 
(430
)
 
 
-
 
Total income tax expense
 
$
261
 
 
$
56
 
 
$
2
 
Reconciliation of income tax attributable to continuing operations
Consolidated income (loss) subject to tax consists of pretax income or loss of taxable REIT subsidiaries.  For the year ended December 31, 2012, the Company had consolidated losses subject to tax of $41.8 million and during the year ended December 31, 2011, the Company had consolidated income subject to tax of $12.5 million.  The reconciliation of income tax attributable to continuing operations computed at the U.S. statutory rate to income tax benefit is shown below (in thousands):

 
 
2012
 
 
2011
 
 
 
Amount
 
 
Percentage
 
 
Amount
 
 
Percentage
 
Tax at U.S. statutory rates on consolidated income(loss) subject to tax
 
$
150
 
 
 
34.0
%
 
$
4,268
 
 
 
34.0
%
State income tax, net of federal tax benefit
 
 
40
 
 
 
9.0
%
 
 
-
 
 
 
0.0
%
Effect of permanent differences
 
 
37
 
 
 
8.5
%
 
 
(3,310
)
 
 
-26.3
%
Excess tax basis of capitalizable transaction costs
 
 
-
 
 
 
0.0
%
 
 
(902
)
 
 
-7.2
%
Other
 
 
34
 
 
 
7.4
%
 
 
-
 
 
 
0.0
%
     Total income tax expense (benefit)
 
$
261
 
 
 
58.9
%
 
$
56
 
 
 
0.5
%
Reconciliation of cash dividends paid to dividends paid deduction
The following reconciles cash dividends paid with the dividends paid deduction for the years ended December 31, 2012, 2011 and 2010 (in thousands):

 
 
2012
 
 
2011
 
 
2010
 
 
 
Estimate
 
 
Actual
 
 
Actual
 
Cash dividends paid
 
$
26,306
 
 
$
16,472
 
 
$
13,197
 
Less:  Dividends on deferred compensation plan shares
 
 
(3
)
 
 
(3
)
 
 
(17
)
Less:  Dividends absorbed by current earnings and profits
 
 
-
 
 
 
-
 
 
 
(4,035
)
Less:  Return of capital
 
 
(26,303
)
 
 
(16,469
)
 
 
(145
)
Dividends paid deduction
 
$
-
 
 
$
-
 
 
$
9,000
 
Distributions paid per common share
The following characterizes distributions paid per common share for the years ended December 31, 2012, 2011 and 2010:

 
 
2012
 
 
2011
 
 
2010
 
 
 
Amount
 
 
Percentage
 
 
Amount
 
 
Percentage
 
 
Amount
 
 
Percentage
 
Ordinary income
 
$
0.000
 
 
 
0.0
%
 
$
0.00
 
 
 
0.0
%
 
$
0.23
 
 
 
76.7
%
Unrecaptured Section 1250 gain
 
 
0.000
 
 
 
0.0
%
 
 
0.00
 
 
 
0.0
%
 
 
0.06
 
 
 
20.0
%
Return of capital
 
 
0.375
 
 
 
100.0
%
 
 
0.30
 
 
 
100.0
%
 
 
0.01
 
 
 
3.3
%
 
 
$
0.375
 
 
 
100.0
%
 
$
0.30
 
 
 
100.0
%
 
$
0.30
 
 
 
100.0
%