Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The Company has elected to be taxed as a REIT under the applicable provisions of the Internal Revenue Code with certain of its subsidiaries treated as taxable REIT subsidiary entities, which are subject to federal and state income taxes. The following table summarizes the tax status of dividends paid on our common stock:

	Year ended December 31,
	2023				2022				2021
Dividend per share	$	2.56		(1)		2.53		(2)		2.53		(3)
Ordinary income		100	%			100	%			92	%
Capital gain (4)		—	%			—	%			8	%
Additional tax status information:
Qualified dividend income		—	%			—	%			1	%
Section 199A dividend		100	%			100	%			91	%
Section 897 ordinary dividends		—	%			—	%			2	%
Section 897 capital gains		—	%			—	%			4	%

(1)During 2023, the Company declared four quarterly dividends, the last of which was paid on January 3, 2024, with a portion allocated to the 2023 dividend period, and the balance allocated to 2024.

(2)During 2022, the Company declared four quarterly dividends, the last of which was paid on January 4, 2023, with a portion allocated to the 2022 dividend period, and the balance allocated to 2023.

(3)During 2021, the Company declared four quarterly dividends, the last of which was paid on January 5, 2022, with a portion allocated to the 2021 dividend period, and the balance allocated to 2022.

(4)Of the total capital gain distribution during 2021, 42% is excluded under Reg. 1.1061-4(b)(7). The remaining 58% is a Three Year Amount under Reg. 1.1061-6(c).

The following table summarizes the tax status of dividends paid on our Series A preferred stock:

	Year ended December 31,
	2023
Dividend per share	$	0.39
Ordinary income		100	%
Capital gain		—	%
Additional tax status information:
Qualified dividend income		—	%
Section 199A dividend		100	%
Section 897 ordinary dividends		—	%
Section 897 capital gains		—	%

The following table summarizes the tax status of dividends paid on our Series B preferred stock:

	Year ended December 31,
	2023
Dividend per share	$	0.37
Ordinary income		100	%
Capital gain		—	%
Additional tax status information:
Qualified dividend income		—	%
Section 199A dividend		100	%
Section 897 ordinary dividends		—	%
Section 897 capital gains		—	%

Our consolidated expense (benefit) for income taxes for the years ended December 31, 2023, 2022, and 2021 was as follows:

	Year ended December 31,
(in thousands)	2023		2022			2021
Income tax expense (benefit):
Current	$	796		(332	)		620
Deferred		99		293			421
Total income tax expense (benefit) (1)	$	895		(39	)		1,041

(1)Included within Other operating expenses in the Consolidated Statements of Operations.

The TRS entities are subject to federal and state income taxes and file separate tax returns. Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate to pretax income of the TRS entities, as follows:

	Year ended December 31,
(in thousands)	2023		2022			2021
Computed expected tax expense (benefit)	$	371		504			544
State income tax, net of federal benefit		60		52			477
Valuation allowance		227		(323	)		15
Permanent items		2		1			1
All other items		235		(273	)		4
Total income tax expense (1)		895		(39	)		1,041
Income tax expense attributable to operations (1)	$	895		(39	)		1,041

(1)Included within Other operating expenses in the Consolidated Statements of Operations.

The tax effects of temporary differences (included in Accounts payable and other liabilities in the accompanying Consolidated Balance Sheets) are summarized as follows:

	December 31,
(in thousands)	2023			2022
Deferred tax assets
Other		1,893			1,007
Deferred tax assets		1,893			1,007
Valuation allowance		(1,893	)		(1,007	)
Deferred tax assets, net	$	—			—
Deferred tax liabilities
Fixed assets		(12,563	)		(12,527	)
Other		(780	)		(61	)
Deferred tax liabilities		(13,343	)		(12,588	)
Net deferred tax liabilities	$	(13,343	)		(12,588	)

The Company believes it is more likely than not that the remaining deferred tax assets will not be realized unless tax planning strategies are implemented.