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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Certain of our domestic subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT.
Our TRSs engage in various real estate related operations, including special servicing of commercial real estate, originating and securitizing mortgage loans, and investing in entities which engage in real estate-related operations. As of December 31, 2025 and 2024, approximately $2.7 billion and $2.9 billion of assets were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs.
Our income tax provision (benefit) consisted of the following for the years ended December 31, 2025, 2024 and 2023 (in thousands):
For the Year Ended December 31,
2025
2024
2023
Current
Federal$4,459$2,635$554
State7281,065 (31)
Total current5,1873,700 523
Deferred
Federal23,004 16,88398 
State8,528 4,849 (1,303)
Total deferred31,532 21,732 (1,205)
Total income tax provision (benefit)
$36,719 $25,432 $(682)
Income taxes paid consisted of the following for the years ended December 31, 2025, 2024 and 2023 (in thousands):
For the Year Ended December 31,
2025
2024
2023
Federal$338$2,639$1,293
State (1)
3581,371 377
Total income taxes paid
$696 $4,010 $1,670 
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(1)Income taxes paid by jurisdiction which exceeded 5% of the total income taxes paid are immaterial.

Deferred income taxes in our U.S. tax jurisdiction reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the tax effects of temporary differences on net deferred tax assets which are classified in our consolidated balance sheets within other assets at December 31, 2025 and December 31, 2024 (in thousands):

December 31,
2025
2024
Deferred tax assets/(liabilities), net
Reserves and accruals$4,624 $4,887 
Domestic intangible assets(38,756)(29,962)
Investments in unconsolidated entities(4,315)(2,289)
Net operating loss and interest expense carryforwards
43,990 64,411
Other U.S. temporary differences(20)8
Net deferred tax assets
$5,523$37,055 
Unrecognized tax benefits were not material as of and during the years ended December 31, 2025 and 2024. The Company’s tax returns are no longer subject to audit for years ended prior to January 1, 2022. There was no pre-tax income from foreign operations during the years ended December 31, 2025, 2024 and 2023.
The following table is a reconciliation of our U.S. federal income tax provision (benefit) determined using our statutory federal tax rate to our reported income tax provision (benefit) for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):
For the Year Ended December 31,
20252024
2023
Federal statutory tax rate$100,761 21.0 %$85,262 21.0 %$87,670 21.0 %
REIT and other non-taxable income(71,436)(14.9)%(64,567)(15.9)%(88,281)(21.2)%
State and local income taxes, net of federal effect (1)
7,312 1.6 %5,372 1.3 %(159)— %
Other82 — %(635)(0.2)%88 — %
Effective tax rate$36,719 7.7 %$25,432 6.2 %$(682)(0.2)%
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(1)State and local income taxes in Florida and New York made up the majority (greater than 50%) of the tax effect in this category during the year ended December 31, 2025.

There were no valuation allowances for deferred tax assets during the years ended December 31, 2025, 2024 and 2023.

As of December 31, 2025, our federal net operating loss (“NOL”) carryforwards for income tax purposes totaled $151.5 million. All of these NOLs can also be carried forward for state tax purposes, in addition to another net $21.4 million. The federal net operating loss carryforwards do not expire. If not utilized, the state net operating loss carryforwards will not begin to expire significantly until 2042. Such NOL primarily relates to unrealized fair value losses during the year ended December 31, 2022 on residential loans held in a TRS.