Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Reconciliation of GAAP net loss to taxable income (loss)

The following reconciles GAAP net income (loss) to taxable income (loss) for the years ended December 31, 2014, 2013 and 2012 (in thousands) (Unaudited):



	2014			2013			2012
GAAP net income (loss)	$	42,943		$	(19,650	)	$	(39,395	)
Less: Taxable REIT subsidiary GAAP net income (loss)	10,235			6,154			46,896
GAAP net income (loss) from REIT operations (1)	53,178			(13,496		)	7,501
GAAP to tax adjustments:
Depreciation and amortization	69,597			42,086			10,619
Gains and losses from capital transactions	(62,222		)	776			(115,065		)
Share-based compensation expense	7,821			2,569			205
Amortization of mortgage loan premium	(6,495		)	(567		)	32
Allowance for doubtful accounts	(295		)	855			(480		)
Vesting of restricted shares and dividends	(31		)	(225		)	(674		)
Deferred revenue	(550		)	1,458			(329		)
Capitalizable acquisition costs	3,292			12,980			2,119
Straight line rent	(7,498		)	(2,148		)	(2,883		)
Interest expense	(122		)	—			(214		)
Nontaxable dividend income	(3,189		)	(1,732		)	(3,707		)
Prepaid revenue	(3,105		)	4,557			—
Prepaid insurance	877			(955		)	—
Other differences	245			(1,288		)	829
Taxable income (loss) before adjustments (2)	51,503			44,870			(102,047		)
Less: NOL carry forward	—			—			—
Adjusted taxable income subject to 90% dividend requirement	$	51,503		$	44,870		$	—


(1)	GAAP net income (loss) from REIT operations is net of amounts attributable to noncontrolling interests.


(2)	An estimated taxable income (loss) before adjustments is presented. The Company plans to file its 2014 tax return with the IRS on or before the extended due date of September 15, 2015.

Schedule of significant components of the net deferred tax (asset)

The significant components of the net deferred tax liabilities (assets) as of December 31, 2014 and 2013 are as follows (in thousands):



	December 31,
	2014			2013
	(In thousands)
Capitalizable transaction costs	$	(784	)	$	(831	)
Contingent consideration	(1,411		)	(1,499		)
Management contracts	(2,377		)	2,017
Murano	(331		)	—
Peachtree investment	469			—
Other	(135		)	(155		)
Valuation allowance	—			479
Total deferred tax liabilities (assets)	$	(4,569	)	$	11

Components of income tax expense (benefit)

The components of income tax benefit (expense) for the years ended December 31, 2014, 2013, and 2012 are as follows (in thousands):



	Year Ended
	December 31,
Current:	2014			2013			2012
Federal	$	(2,876	)	$	(488	)	$	(914	)
State	(2,026		)	(67		)	(202		)
Total Current	(4,902		)	(555		)	(1,116		)
Deferred:
Federal	3,868			1,582			722
State	895			378			133
Total Deferred	4,763			1,960			855
Total income tax benefit (expense)	$	(139	)	$	1,405		$	(261	)

Reconciliation of income tax attributable to continuing operations

The reconciliation of income tax benefit (expense) computed at the U.S. statutory rate is shown below (in thousands):



	2014					2013
	Amount			Percentage		Amount			Percentage
Tax at U.S. statutory rates on consolidated income (loss) subject to tax	$	897		34.0	%	$	1,990		34.0	%
State income tax, net of federal tax benefit	(1,090		)	(41.3	)%	185			3.2	%
Effect of permanent differences	(41		)	(1.6	)%	(291		)	(5.0	)%
Valuation allowance	479			18.1	%	(479		)	(8.2	)%
Other - Peachtree	(422		)	(16.0	)%	—			—	%
Other	38			1.5	%	—			—	%
Total income tax benefit (expense)	$	(139	)	(5.3	)%	$	1,405		24.0	%

Schedule of unrecognized tax benefits roll forward

A reconciliation of the Company’s unrecognized tax benefits as of December 31, 2014 and 2013 (in thousands):



	December 31,
	2014			2013
	(In thousands)
Unrecognized Tax Benefits - Opening Balance	$	7,999		$	—
Gross increases - current period tax positions	—			7,999
Gross decreases - lapse of statute of limitations	(1,142		)	—
Unrecognized Tax Benefits - Ending Balance	$	6,857		$	7,999

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, 2014, 2013 and 2012 (in thousands):



	2014			2013			2012
	Estimated			Actual			Actual
Cash dividends paid	$	76,735		$	45,189		$	26,306
Less: Dividends on deferred compensation plan shares	—			—			(3		)
Less: Dividends absorbed by current earnings and profits	(76,735		)	(36,291		)	—
Less: Return of capital	—			(8,898		)	(26,303		)
Dividends paid deduction	$	—		$	—		$	—

Distributions paid per common share

The following characterizes distributions paid per common share for the years ended December 31, 2014, 2013 and 2012 (Unaudited):



	2014				2013				2012
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Ordinary income	$	0.7141	95.2	%	$	0.4425	69.4	%	$	—	—	%
Capital gain	0.0359		4.8	%	—		—	%	—		—	%
Unrecaptured Section 1250 gain	—		—	%	0.0831		13.0	%	—		—	%
Return of capital	—		—	%	0.1119		17.6	%	0.3750		100.0	%
	$	0.7500	100.0	%	$	0.6375	100.0	%	$	0.3750	100.0	%