INCOME TAXES |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES Upon formation, the Holding Company elected to be treated as a corporation for U.S. federal, state, and local tax purposes. All operations are carried on through the Holding Company’s subsidiaries, the majority of which are pass-through entities that are generally not subject to federal or state income taxation, as all of the taxable income, gains, losses, deductions, and credits are passed through to the partners. The Holding Company is responsible for income taxes on its allocable share of the Operating Company’s income or gain. During the three and six months ended June 30, 2026, the Company recorded a $6.2 million and $5.3 million provision for income taxes, respectively, on pre-tax income of $36.1 million and $30.2 million, respectively. In the three and six months ended June 30, 2025, the Company recorded a $1.3 million and $10.9 million provision for income taxes, respectively, on pre-tax income of $9.9 million and $80.0 million, respectively. The effective tax rates for both the six months ended June 30, 2026 and 2025 differ from the 21% federal statutory rate and applicable state statutory rates primarily due to the disallowance of executive compensation expenses not deductible for tax and the pre-tax portion of income and losses that are passed through to the other partners of the Operating Company, the San Francisco Venture and the Hearthstone Venture.
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