Income Taxes	9 Months Ended
Sep. 30, 2012
Income Taxes	11. INCOME TAXES The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes at least 90% of its taxable income to its shareholders and complies with certain other requirements. The Company has elected to treat its Uncle Bob’s Management, LLC subsidiary as a taxable REIT subsidiary. In general, the Company’s taxable REIT subsidiary may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. For the nine months ended September 30, 2012 and 2011, the Company recorded federal and state income tax expense of $1.6 million and $1.3 million, respectively, which are included in general and administrative expense in the consolidated statements of operations. For the three months ended September 30, 2012 and 2011, the Company recorded federal and state income tax expense of $0.6 million and $0.4 million, respectively, which are included in general and administrative expense in the consolidated statements of operations. At September 30, 2012 and 2011, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of September 30, 2012, the Company had no interest or penalties related to uncertain tax positions. The Company’s taxable REIT subsidiary has a current taxes payable of $0.5 million and a deferred tax liability of $0.1 million as of September 30, 2012 (both of which are included in accounts payable and accrued liabilities in the consolidated balance sheet). The tax years 2008-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject.

Income Taxes

9 Months Ended

Sep. 30, 2012

11. INCOME TAXES

The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes at least 90% of its taxable income to its shareholders and complies with certain other requirements.

The Company has elected to treat its Uncle Bob’s Management, LLC subsidiary as a taxable REIT subsidiary. In general, the Company’s taxable REIT subsidiary may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

For the nine months ended September 30, 2012 and 2011, the Company recorded federal and state income tax expense of $1.6 million and $1.3 million, respectively, which are included in general and administrative expense in the consolidated statements of operations. For the three months ended September 30, 2012 and 2011, the Company recorded federal and state income tax expense of $0.6 million and $0.4 million, respectively, which are included in general and administrative expense in the consolidated statements of operations. At September 30, 2012 and 2011, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of September 30, 2012, the Company had no interest or penalties related to uncertain tax positions. The Company’s taxable REIT subsidiary has a current taxes payable of $0.5 million and a deferred tax liability of $0.1 million as of September 30, 2012 (both of which are included in accounts payable and accrued liabilities in the consolidated balance sheet). The tax years 2008-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject.