Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the deferred tax asset (liability) for the periods indicated is as follows (in thousands):


		As of December 31,
		2025																2024
		NHF TRS				NREO TRS				NHT TRSs				Combined				NHF TRS				NREO TRS				NHT TRSs				Combined
Deferred Tax Assets		$	13,913			$	583			$	5,050			$	19,546			$	14,942			$	290			$	6,561			$	21,793
Valuation Allowance			(11,486	)			—				(5,050	)			(16,536	)			(10,487	)			—				(6,535	)			(17,022	)
Deferred Tax Liability			—				(2,512	)			—				(2,512	)			—				(2,127	)			(26	)			(2,153	)
Deferred Tax Asset (Liability), net of Valuation Allowance		$	2,427			$	(1,929	)		$	—			$	498			$	4,455			$	(1,837	)		$	—			$	2,618

The following table is a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective rate in accordance with the guidance in ASU No. 2023-09 (in thousands, except percentages):


		December 31, 2025			%
Expected Tax at U.S federal statutory rate		$	(26,701	)		21.0	%
Tax credits			—			0.0	%
Nontaxable and nondeductible items						0.0	%
Non-taxable REIT income			27,200			-21.4	%
Income tax refund			(2,028	)		1.6	%
Cross-border tax laws			—			0.0	%
Other reconciling items			(523	)		0.4	%
Changes in tax laws or rates enacted in the current period			—			0.0	%
Changes in unrecognized tax benefits			2,120			-1.7	%
State income taxes, net of federal effect			43			0.0	%
		$	111			-0.1	%

The following table is a reconciliation of the U.S. federal statutory income tax rate of 21% to the Company’s effective rate for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09. Income tax expense (benefit) for the years ended December 31, 2024 differed from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following (in thousands, except percentages):


		For the Year Ended December 31,
		2024
Expected tax at U.S. federal statutory income tax rate		$	(11,592	)			21.0	%
Non-taxable REIT income			10,838				-19.6	%
Change in valuation allowance			2,126				-3.9	%
Total expense (benefit)		$	1,372				-2.5	%

Schedule of Income Tax Paid

The following table presents income taxes paid, disaggregated by jurisdiction, for the periods presented (in thousands):


		December 31, 2025
U.S. Federal (1)		$	(529	)
U.S. State
California			3
Florida (1)			(118	)
Texas			80
Total state			(35	)
Foreign			—
Total income tax paid (refunded) (1)		$	(564	)

(1)

Amounts reflect net cash taxes paid (refunded) during the period.

Schedule of Net Income Tax Expense (Benefit)

Net income tax expense (benefit), disaggregated by jurisdiction, is summarized in the following table (in thousands):


		December 31, 2025
Current tax expense (benefit)
U.S. federal		$	(1,751	)
U.S. state			43
Foreign			—
Total current tax expense (benefit)		$	(1,708	)

Deferred tax expense (benefit)
U.S. federal		$	1,597
U.S. state			—
Foreign			—
Total deferred tax expense (benefit)		$	1,597

Total income tax expense (benefit)
U.S. federal		$	(154	)
U.S. state			43
Foreign			—
Total income tax expense (benefit)		$	(111	)

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2025 and 2024, significant components of the net deferred tax assets (“DTA”) of the Company’s TRSs were as follows (in thousands):


		Deferred Tax Asset as of December 31, 2025				Deferred Tax Asset as of December 31, 2024
Capital loss carryover from prior year		$	137			$	137
Net operating loss carryover from prior year			372				298
Net operating loss carryover to be utilized in current year			75				(145	)
Unrealized tax loss on investments			18,962				21,503
Total deferred tax assets			19,546				21,793
Valuation allowance			(16,536	)			(17,022	)
Deferred tax liability			(2,512	)			(2,153	)
Net deferred tax asset		$	498			$	2,618

Schedule of Estimated Useful Life

Real estate-related depreciation and amortization are computed on a straight-line basis generally over the estimated useful lives as described in the following table:


		Years
Land		Not depreciated
Buildings		30	-	40
Improvements		3	-	20
Furniture, fixtures, and equipment		3	-	7
Intangible lease assets and liabilities		Over lease term