v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Tax Status of Dividends Paid
The Company satisfied its REIT distribution requirement by distributing $0.76, $0.68 and $0.64 per common share in 2025, 2024 and 2023, respectively. The distributions comprised a regular quarterly cash dividend of $0.19 per common share declared for each quarter of 2025, a regular quarterly cash dividend of $0.17 per common share declared for each quarter of 2024, and a regular quarterly cash dividend of $0.16 per common share declared for each quarter of 2023. The taxability of such dividends for the years ended December 31, 2025, 2024 and 2023 are as follows:
Year Ended December 31,
202520242023
Dividend paid per share$0.76 $0.68 $0.64 
Ordinary income99 %91 %88 %
Return of capital— %— %— %
Capital gains1 %9 %12 %
Schedule of Income before Income Tax, Domestic and Foreign
The components of income before income taxes were attributable to the following regions:
Year Ended December 31,
(Amounts in thousands)202520242023
Domestic$94,231 $71,130 $226,440 
Foreign5,880 6,698 51,236 
Total income before income taxes$100,111 $77,828 $277,676 
Schedule of Income Tax Expense (Benefit)
Income tax expense for the years ended December 31, 2025, 2024 and 2023 consist of the following:
Year Ended December 31,
(Amounts in thousands)202520242023
Income tax expense (benefit):
Current:
Federal$514 $— $4 
State17 19 (674)
Foreign(271)2,486 4,753 
Total current260 2,505 4,083 
Deferred:
Federal(89)(1)— 
Foreign2,430 (118)13,717 
Total deferred2,341 (119)13,717 
Total income tax expense$2,601 $2,386 $17,800 
Schedule of Provision for Income Taxes Computed Applying Statutory Federal Tax Rate
Provision for income taxes for the year ended December 31, 2025 differs from the amounts computed by applying the statutory federal income tax rate to consolidated net income before income taxes as follows:
Year Ended
December 31, 2025
(Amounts in thousands)AmountRate
Provision for income taxes at U.S federal statutory rate$21,023 21.00 %
State and local income taxes, net of federal benefit(1)
17 0.02 %
Foreign tax effects(2)
2,159 2.16 %
Non-taxable or non-deductible items:
Other(3)
(20,598)(20.58)%
Total tax provision and effective tax rate$2,601 2.60 %
(1) State taxes in New York made up the majority of the tax effect in this category.
(2) Puerto Rico tax credits.
(3) Non-taxed REIT income.
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate to consolidated net income before income taxes as follows:
Year Ended December 31,
20242023
U.S federal statutory rate21.00 %21.00 %
State and local income taxes, net of federal benefit0.02 %(0.24)%
Foreign tax effects3.04 %6.65 %
Non-taxable or non-deductible items:
Other(1)
(21.00)%(21.00)%
Effective income tax rate3.06 %6.41 %
(1) Non-taxed REIT income.
Schedule of Net Deferred Income Tax Liability
Below is a table summarizing the Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024:
Balance at December 31,
(Amounts in thousands)20252024
Deferred tax assets:
Depreciation$22,509 $21,936 
Amortization of deferred financing costs120 136 
Rental revenue deemed uncollectible713 627 
Charitable contribution7 7 
Net operating loss7 7 
Tax credit carryforward(1)
1,011 3,808 
Loss reserve discount89 — 
Total deferred tax assets24,456 26,521 
Deferred tax liabilities:
Straight line rent(1,870)(1,568)
Amortization of acquired leases(100)(126)
Total deferred tax liabilities(1,970)(1,694)
Net deferred tax assets$22,486 $24,827 
(1) As of December 31, 2025, the Company has a Puerto Rico tax credit carryforward totaling $1.0 million which, if unused, may be carried forward indefinitely.