Taxable Income (Loss)

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Taxable Income (Loss)

Taxable Income

Taxable Income

The Company has elected to be taxed as a REIT, as defined under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its annual taxable income to its stockholders.

As a REIT, the Company generally will not be subject to federal income tax on taxable income it distributes currently to its stockholders. Accordingly, no provision for federal income taxes has been made in the accompanying Condensed Consolidated Financial Statements. If the Company fails to qualify as a REIT for any taxable year, then it will be subject to federal income taxes at regular corporate rates, including any applicable alternative minimum tax, and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies as a REIT, it may be subject to certain state and local taxes on its income and property and to federal income and excise tax on its undistributed taxable income.

Earnings and profits, the current and accumulated amounts of which determine the taxability of distributions to stockholders, vary from net income (loss) attributable to common stockholders and taxable income because of different depreciation recovery periods and methods, and other items.

The following table reconciles the Company’s consolidated net income (loss) attributable to common stockholders to taxable income for the three and six months ended June 30, 2012 and 2011.

	Three Months Ended						Six Months Ended
(Dollars in thousands)	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Net income (loss) attributable to common stockholders	$	2,908		$	2,011		$	6,042		$	(3,778	)
Reconciling items to taxable income:
Depreciation and amortization	6,557			4,194			13,500			9,519
Gain or loss on disposition of depreciable assets	1,251			78			(4,357		)	(2,098		)
Straight-line rent	(1,434		)	(1,009		)	(3,244		)	(2,149		)
Receivable allowances	109			324			(371		)	720
Stock-based compensation	1,443			1,298			2,632			2,684
Other	2,246			5,955			7,505			7,044
Taxable income (1)	$	13,080		$	12,851		$	21,707		$	11,942
Dividends paid	$	23,398		$	22,325		$	46,785		$	42,570

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⁽¹⁾ Before REIT dividends paid deduction.

State Income Taxes

State income tax expense and payments for the three and six months ended June 30, 2012 and 2011 are detailed in the table below.

	Three Months Ended					Six Months Ended
(Dollars in thousands)	June 30, 2012		June 30, 2011			June 30, 2012			June 30, 2011
State income tax expense:
Texas gross margins tax	$	118	$	108		$	261		$	227
Other	29		(126		)	(42		)	(83		)
Total state income tax expense	$	147	$	(18	)	$	219		$	144
State income tax payments, net	$	523	$	481		$	547		$	503

The Texas gross margins tax is a tax on gross receipts from operations in Texas. The Company understands that the Securities and Exchange Commission views this tax as an income tax. As such, the Company has disclosed the Texas gross margin tax in the table above.