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Other Data
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Other Data Other Data
Taxable Income (unaudited)
The Company has elected to be taxed as a REIT, as defined under the Internal Revenue Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its taxable income to its stockholders.
As a REIT, the Company generally will not be subject to federal income tax on taxable income it distributes currently to its stockholders. Accordingly, no provision for federal income taxes has been made in the accompanying Consolidated Financial Statements. If the Company fails to qualify as a REIT for any taxable year, then it will be subject to federal income taxes at regular corporate rates, including any applicable alternative minimum tax, and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies as a REIT, it may be subject to certain state and local taxes on its income and property and to federal income and excise tax on its undistributed taxable income.
Earnings and profits (as defined under the Internal Revenue Code), the current and accumulated amounts of which determine the taxability of distributions to stockholders, vary from net income attributable to common stockholders and taxable income because of different depreciation recovery periods, depreciation methods, and other items.
While Legacy HR was considered the accounting acquirer in the Merger for GAAP purposes, Legacy HR’s separate tax existence ceased with the Merger and Legacy HTA continues as the tax successor. On a tax basis, the Company’s gross real estate assets totaled approximately $12.6 billion and $13.0 billion as of December 31, 2023 and 2022, respectively. As of December 31, 2021, gross real estate assets on a tax basis were $5.0 billion for Legacy HR and $8.2 billion for Legacy HTA, respectively.
Characterization of Distributions (unaudited)
Distributions in excess of earnings and profits generally constitute a return of capital. The following table gives the characterization of the distributions of the Company’s common stock for the three years ended December 31, 2023.
For the three years ended December 31, 2023, there were no preferred shares outstanding. As such, no dividends were distributed related to preferred shares for those periods.
YEAR ENDED DECEMBER 31,
 
202320222021
 PER SHAREPER SHAREPER SHARE
Tax Treatment of Dividends Pre-Merger Healthcare Trust of America
Ordinary income 1
$— $0.5862 $0.7920 
Return of capital— 4.0162 0.4930 
Capital gain— 1.2216 — 
Common stock distributions$— $5.8240 $1.2850 
Tax Treatment of Dividends Pre-Merger Healthcare Realty
Ordinary income 1
$— $0.2655 $0.7500 
Return of capital— 0.5555 0.3600 
Capital gain— — 0.0964 
Common stock distributions$— $0.8210 $1.2064 
Tax Treatment of Dividends Post-Merger Healthcare Realty
Ordinary income 1
$0.5482 $0.0422 $— 
Return of capital0.5031 0.2889 — 
Capital gain0.1887 0.0879 — 
Common stock distributions$1.2400 $0.4190 $— 
1Reporting year ordinary income is also Code Section 199A eligible per the The Tax Cut and Jobs Act of 2017.

State Income Taxes
The Company must pay certain state income taxes, which are typically included in general and administrative expense on the Company’s Consolidated Statements of Operations.
The State of Texas gross margins tax on gross receipts from operations is disclosed in the table below as an income tax.
State income tax expense and state income tax payments for the three years ended December 31, 2023 are detailed in the table below: 
YEAR ENDED DECEMBER 31,
Dollars in thousands202320222021
State income tax expense
Texas gross margins tax $1,206 $1,693 $564 
Other133 151 8 
Total state income tax expense$1,339 $1,844 $572 
State income tax payments, net of refunds and collections$1,324 $1,834 $560