Income Taxes:

For income tax purposes, distributions paid to common stockholders consist of ordinary income, capital gains, unrecaptured Section 1250 gain and return of capital or a combination thereof. The following table details the components of the distributions, on a per share basis, for the years ended December 31, 2018, 2017 and 2016 are as follows:



	2018 (1)				2017				2016 (2)
Ordinary income	$	1.91	64.3	%	$	1.98	69.0	%	$	0.94	20.8	%
Capital gains	0.05		1.7	%	0.51		17.8	%	3.24		71.4	%
Unrecaptured Section 1250 gain	—		—	%	0.38		13.2	%	0.36		7.8	%
Return of capital	1.01		34.0	%	—		—	%	—		—	%
Dividends paid	$	2.97	100.0	%	$	2.87	100.0	%	$	4.54	100.0	%

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(1)	The 2018 taxable ordinary dividends are treated as "qualified REIT dividends" for purposes of Internal Revenue Code Section 199A.

(2)

The Company declared a $2.00 special cash dividend to shareholders of record as of November 12, 2015 which was paid on January 6, 2016 (See Note 13—Stockholders' Equity). Pursuant to relevant U.S. tax rules, $0.21 per common share of this dividend is treated as having been paid by the Company on December 31, 2015, and received by each shareholder of record as of November 12, 2015 on December 31, 2015. The balance of the special cash dividend has been included in the amount of dividends paid for the year ended December 31, 2016

The Company has made Taxable REIT Subsidiary elections for all of its corporate subsidiaries other than its Qualified REIT Subsidiaries. The elections, effective for the year beginning January 1, 2001 and future years, were made pursuant to Section 856(l) of the Code.

The income tax provision of the TRSs for the years ended December 31, 2018, 2017 and 2016 are as follows:



	2018		2017			2016
Current	$	413	$	185		$	(176	)
Deferred	3,191		(15,779		)	(546		)
Income tax benefit (expense)	$	3,604	$	(15,594	)	$	(722	)

The income tax provision of the TRSs for the years ended December 31, 2018, 2017 and 2016 are reconciled to the amount computed by applying the Federal Corporate tax rate as follows:



	2018			2017			2016
Book loss for TRSs	$	19,525		$	2,094		$	5,254
Tax at statutory rate on earnings from continuing operations before income taxes	$	4,100		$	712		$	1,786
Change in tax rates	—			(14,189		)	—
State taxes	513			109			160
Other	(1,009		)	(2,226		)	(2,668		)
Income tax benefit (expense)	$	3,604		$	(15,594	)	$	(722	)

The Tax Cuts and Jobs Act of 2017 (“TCJA”), signed into law on December 22, 2017, adjusted the federal corporate tax income rate to 21%. FASB Accounting Standards Codification Topic 740 requires deferred tax assets and liabilities to be measured at the enacted rate expected to apply when temporary differences are to be realized or settled. Accordingly, the Company remeasured its ending deferred tax asset and reduced the value by $14,189 for the year ended December 31, 2017. Additionally, GAAP requires that all adjustments resulting from tax rate changes be recorded to the income statement. Therefore, the Company recorded a $14,189 deferred tax expense for the year ended December 31, 2017 related to the revaluation of its deferred tax assets and liabilities.

The net operating loss ("NOL") carryforwards for NOLs generated through the 2017 tax year are scheduled to expire through 2037, beginning in 2025. Pursuant to the TCJA, NOLs generated in 2018 and subsequent tax years carryforward indefinitely subject to the 80% of taxable income limitation.

The tax effects of temporary differences and carryforwards of the TRSs included in the net deferred tax assets at December 31, 2018 and 2017 are summarized as follows:



	2018		2017
Net operating loss carryforwards	$	25,751	$	21,398
Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of certain other costs	4,524		5,077
Other	1,922		2,531
Net deferred tax assets	$	32,197	$	29,006

For the years ended December 31, 2018, 2017 and 2016 there were no unrecognized tax benefits.

The tax years 2015 through 2017 remain open to examination by the taxing jurisdictions to which the Company is subject. The Company does not expect that the total amount of unrecognized tax benefit will materially change within the next 12 months.