INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAXES

Schedule of taxable distributions paid per common share

	Year Ended December 31,
	2025		2024		2023
Ordinary income	$	1.4244	$	1.5935	$	1.4384
Qualified ordinary income		0.0001		0.0001		0.0001
Long-term capital gain		0.1771		0.0458		0.1697
Unrecaptured section 1250 gain		0.1134		0.0556		0.0318
Total	$	1.7150	$	1.6950	$	1.6400

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

	Year Ended December 31,
	2025		2024		2023
Income tax (benefit)/provision
Current
Federal	$	210	$	314	$	69
State		940		1,192		2,036
Total current		1,150		1,506		2,105
Deferred
Federal		(252)		(103)		26
State		(15)		(476)		23
Investment tax credit		(48)		(48)		(48)
Total deferred		(315)		(627)		1
Total income tax (benefit)/provision	$	835	$	879	$	2,106

Schedule of components of TRS deferred tax assets and liabilities

The components of our TRS deferred tax assets and liabilities are recorded in Accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets, and are as follows for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

	Year Ended December 31,
	2025		2024		2023
Deferred tax assets:
Federal and state tax attributes	$	31	$	55	$	28
Other		401		142		153
Total deferred tax assets		432		197		181
Valuation allowance		(27)		(27)		(27)
Net deferred tax assets		405		170		154
Deferred tax liabilities:
Book/tax depreciation and basis		(787)		(878)		(881)
Other		(132)		(73)		(76)
Total deferred tax liabilities		(919)		(951)		(957)
Net deferred tax assets/(liabilities)	$	(514)	$	(781)	$	(803)

Schedule of effective income tax rate reconciliation

Income tax provision/(benefit), net from our TRS differed from the amounts computed by applying the U.S. statutory rate of 21% to pretax income/(loss) for the years ended December 31, 2025, 2024, and 2023 as follows (dollars in thousands):

	Year Ended December 31,
	2025		2024		2023
Income tax provision/(benefit)
U.S. federal income tax provision/(benefit)	$	(40)	$	251	$	105
State income tax provision		923		1,233		2,054
Solar credit amortization		(48)		(48)		(48)
ITC basis adjustment		—		(557)		—
Valuation allowance		—		—		(5)
Total income tax provision/(benefit)	$	835	$	879	$	2,106