Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

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	%	—			—	%
Effect of permanent differences	37		8.5	%	(3,310		)	-26.3	%
Excess tax basis of capitalizable transaction costs	—		—	%	(902		)	-7.2	%
Other	34		7.4	%	—			—	%
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	%