v3.26.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Reconciles the Income Tax Expense at Statutory Rates to the Actual Income Tax Expense The following table reconciles the income tax (expense) benefit of the Company at applicable statutory rates to the actual income tax (expense) benefit recorded (in thousands):
Year Ended December 31, 2025
$
%
Income tax (expense) benefit at federal statutory rate of 21%
$39,544 21.00 %
State and local income tax, net of federal income tax effect (1)
(65)(0.03)%
Changes in valuation allowance
(10,727)(5.70)%
Nontaxable or nondeductible items(798)(0.43)%
Redeemable noncontrolling interests in operating partnership(553)(0.29)%
Tax impact of REIT election
(27,517)(14.61)%
Other259 0.14 %
Total income tax (expense) benefit
$143 0.08 %
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(1) State taxes in Florida, Georgia, Tennessee and Virginia make up the majority of the tax effect in this category.
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the following table reconciles the income tax (expense) benefit of the TRS entities at applicable statutory rates to the actual income tax (expense) benefit recorded (in thousands):
Year Ended December 31,
20242023
Income tax (expense) benefit of the TRS entities at federal statutory rate of 21%
$11,448 $(761)
State income tax (expense) benefit, net of federal income tax benefit
1,613 (311)
Permanent differences(554)(168)
Provision to return adjustment4 15 
Gross receipts and margin taxes(1,081)(958)
Interest and penalties106 184 
Valuation allowance(12,533)1,099 
Total income tax (expense) benefit$(997)$(900)
Schedule of Components of Income Tax Benefit (Expense) From Continuing Operations
The components of income tax (expense) benefit are as follows (in thousands):
Year Ended December 31,
202520242023
Current:
Federal$— $8 $(195)
State(99)(994)(733)
Total current income tax (expense) benefit(99)(986)(928)
Deferred:
Federal242 (11)28 
Total deferred income tax (expense) benefit242 (11)28 
Total income tax (expense) benefit$143 $(997)$(900)
Schedule of Income Taxes, Net of Refunds
We have prospectively adopted the disclosure requirements as required after the adoption of ASU 2023-09. The following table presents the disaggregated cash paid for income taxes, net of refunds (in thousands):
Year Ended December 31, 2025
U.S. Federal$— 
U.S. State and Local(1,954)
Foreign— 
Total cash paid (refunded) during the period for income taxes$(1,954)
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(1) Individual jurisdictions equaling 5% or more of the total income taxes paid (net of refunds) for the year ended December 31, 2025 include California at $(2.0) million, Texas at $861,000 and Virginia at ($89,000).
Schedule of Deferred Tax Asset (Liability) and Related Valuation Allowance
At December 31, 2025 and 2024, our net deferred tax asset, included in “prepaid expenses and other assets”, and net deferred tax liability, included in “accounts payable and accrued expenses”, on the consolidated balance sheets, respectively, consisted of the following (in thousands):
December 31,
20252024
Deferred tax assets:
Allowance for doubtful accounts$86 $87 
Unearned income1,414 768 
Federal and state net operating losses41,217 34,186 
Capital loss carryforward— 2,290 
Accrued expenses1,050 1,740 
Tax derivatives basis greater than book basis40 39 
Operating lease liability
2,253 2,265 
Investment in partnership2,725 — 
Other253 443 
Deferred tax assets
49,038 41,818 
Valuation allowance(45,901)(37,553)
Net deferred tax asset
3,137 4,265 
Deferred tax liabilities:
Prepaid expenses(4)(4)
Operating lease right-of-use assets
(2,252)(2,265)
Tax property basis less than book basis(1,054)(2,411)
Deferred tax liabilities
(3,310)(4,680)
Net deferred tax asset (liability)$(173)$(415)
Schedule of the Changes in the Valuation Allowance
The following table summarizes the changes in the valuation allowance (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of year$37,553 $29,319 $31,205 
Additions8,348 8,234 — 
Deductions— — (1,886)
Balance at end of year$45,901 $37,553 $29,319