XML 40 R22.htm IDEA: XBRL DOCUMENT v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company elected on its U.S. federal income tax return for its taxable year that began on January 1, 2014 to be treated as a REIT. The benefits of the intended REIT conversion on the Company's tax provision and effective income tax rate are reflected in the tables below. As a result of the Tax Cuts and Jobs Act, the corporate tax rate was permanently lowered from the previous maximum rate of 35% to 21%, effective for tax years including or commencing January 1, 2018.
The provision for income taxes charged to operations for years ended December 31, 2025, 2024 and 2023 was as follows:
Year ended December 31,202520242023
 (in thousands)
Current tax expense   
Federal$— $— $— 
State2,229 2,129 1,997 
Total current2,229 2,129 1,997 
Deferred tax (benefit) expense   
Federal— — — 
State— — — 
Total deferred— — — 
Total provision$2,229 $2,129 $1,997 
The following tables reconcile the statutory federal income tax rate to the actual effective income tax rate for the years ended December 31, 2025, 2024 and 2023:
Year ended December 31,202520242023
Percent of pretax income   
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
State and local income taxes0.3 %0.3 %0.3 %
Valuation allowance— %— %— %
REIT conversion benefit(21.0)%(21.0)%(21.0)%
Permanent differences— %— %— %
Other miscellaneous items— %— %— %
0.3 %0.3 %0.3 %
 
Year ended December 31,202520242023
 (in thousands)
Amount based upon pretax income   
U.S. federal statutory income tax$179,041 $170,053 $159,047 
State and local income taxes2,229 2,129 1,997 
Valuation allowance— — — 
REIT conversion benefit(179,041)(170,053)(159,047)
Permanent differences— — — 
Other miscellaneous items— — — 
$2,229 $2,129 $1,997 
The Company is still subject to federal income tax examinations for its years ended December 31, 2022 and forward.