Income Tax Considerations (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule Of Reconciling Net Income Adjusted For Noncontrolling Interests To REIT Taxable Income

The following table reconciles net income adjusted for noncontrolling interests to REIT taxable income (in thousands):

	Year Ended December 31,
	2020		2019		2018
Net income adjusted for noncontrolling interests	$	112,149	$	315,435	$	327,601
Net loss (income) of taxable REIT subsidiary included above		206		(32,225)		(13,496)
Net income from REIT operations		112,355		283,210		314,105
Book depreciation and amortization		147,660		132,957		158,607
Tax depreciation and amortization		(82,414)		(75,824)		(89,700)
Book/tax difference on gains/losses from capital transactions		(54,476)		(89,217)		19,807
Deferred/prepaid/above and below-market rents, net		(13,977)		(9,332)		(15,589)
Impairment loss from REIT operations		23,367		3,118		10,008
Book/tax on bad debt expense		35,075		217		(749)
Other book/tax differences, net		(5,390)		(21,575)		(12,969)
REIT taxable income		162,200		223,554		383,520
Dividends paid deduction (1)		(162,200)		(223,554)		(383,520)
Dividends paid in excess of taxable income	$	—	$	—	$	—

(1) For 2020, 2019 and 2018, the dividends paid deduction includes designated dividends of $114.8 million, $121.2 million and $105.7 million from 2021, 2020 and 2019, respectively.

Schedule Of Cash Dividends Distributed To Common Shareholders

For federal income tax purposes, the cash dividends distributed to common shareholders are characterized as follows:

	Year Ended December 31,
	2020		2019		2018
Ordinary income	79.9	%	65.4	%	42.2	%
Capital gain distributions	20.1	%	34.6	%	57.8	%
Total	100.0	%	100.0	%	100.0	%

Schedule Of Deferred Tax Assets And Liabilities

Our deferred tax assets and liabilities, including a valuation allowance, consisted of the following (in thousands):

	December 31,
	2020		2019
Deferred tax assets:
Impairment loss (1)	$	4,638	$	4,692
Net operating loss carryforwards (2)		3,216		3,206
Book-tax basis differential		1,116		1,101
Other		255		177
Total deferred tax assets		9,225		9,176
Valuation allowance (3)		(5,551)		(5,749)
Total deferred tax assets, net of allowance	$	3,674	$	3,427
Deferred tax liabilities:
Book-tax basis differential (1)	$	1,547	$	1,547
Other		118		155
Total deferred tax liabilities	$	1,665	$	1,702

(1) Impairment losses and book-tax basis differential liabilities will not be recognized until the related properties are sold. Realization of impairment losses is dependent upon generating sufficient taxable income in the year the property is sold.

(2) We have net operating loss carryforwards of $15.3 million that is an indefinite carryforward.

(3) Management believes it is more likely than not that a portion of the deferred tax assets, which primarily consists of impairment losses and net operating losses, will not be realized and established a valuation allowance. However, the amount of the deferred tax asset considered realizable could be reduced if estimates of future taxable income are reduced.

Schedule of Income Tax Provision (Benefit)

We are subject to federal, state and local income taxes and have recorded an income tax provision (benefit) as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Net (loss) income before taxes of taxable REIT subsidiary	$	(578)	$	32,602	$	13,480
Federal (benefit) provision (1)	$	(121)	$	6,846	$	2,831
Valuation allowance decrease		(198)		(7,038)		(2,800)
Other		(54)		569		(46)
Federal income tax (benefit) provision of taxable REIT subsidiary (2)		(373)		377		(15)
State and local taxes, primarily Texas franchise taxes		824		663		1,393
Total	$	451	$	1,040	$	1,378

(1) At statutory rate of 21% for the year ended December 31, 2020, 2019 and 2018.

(2) All periods from December 31, 2017 through December 31, 2020 are open for examination by the IRS.