v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

As a REIT, we generally will not be subject to U.S. federal income tax on taxable income that we distribute to our stockholders. However, certain of our consolidated subsidiaries are taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes. We have filed an election to treat our primary TRS as a taxable REIT subsidiary effective January 1, 2014. In general, our TRS performs additional services for our customers and provides the advisory and property management services to the Managed REITs and otherwise generally engages in non-real estate related business. The TRS is subject to corporate U.S. federal and state income tax. Additionally, we own and operate a number of self storage properties located throughout Canada, the income of which is generally subject to income taxes under the laws of Canada.

The following is a summary of our income tax expense (benefit) for the periods presented (in thousands):


 

 

 

For the three months ended September 30, 2025

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

—

 

 

$

23

 

 

$

149

 

 

$

172

 

Deferred

 

 

131

 

 

 

—

 

 

 

312

 

 

 

443

 

Total

 

$

131

 

 

$

23

 

 

$

461

 

 

$

615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 2024

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

17

 

 

$

12

 

 

$

144

 

 

$

173

 

Deferred

 

 

68

 

 

 

1

 

 

 

162

 

 

 

231

 

Total

 

$

85

 

 

$

13

 

 

$

306

 

 

$

404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 2025

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

—

 

 

$

26

 

 

$

629

 

 

$

655

 

Deferred

 

 

272

 

 

 

—

 

 

 

611

 

 

 

883

 

Total

 

$

272

 

 

$

26

 

 

$

1,240

 

 

$

1,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 2024

 

 

 

Federal

 

 

State

 

 

Canadian

 

 

Total

 

Current

 

$

17

 

 

$

30

 

 

$

444

 

 

$

491

 

Deferred

 

 

192

 

 

 

4

 

 

 

406

 

 

 

602

 

Total

 

$

209

 

 

$

34

 

 

$

850

 

 

$

1,093

 

 

The major sources of temporary differences that give rise to the deferred tax effects are shown below (in thousands):

 

 

 

September 30,
2025

 

 

December 31,
2024

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible contract assets

 

$

—

 

 

$

(6

)

Canadian real estate

 

 

(9,488

)

 

 

(9,163

)

Total deferred tax liability

 

 

(9,488

)

 

 

(9,169

)

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

Other

 

 

1,964

 

 

 

1,687

 

Canadian real estate and non-capital losses

 

 

8,119

 

 

 

7,729

 

Total deferred tax assets

 

 

10,083

 

 

 

9,416

 

 

 

 

 

 

 

Valuation allowance

 

 

(2,650

)

 

 

(1,891

)

 

 

 

 

 

 

Net deferred tax liabilities

 

$

(2,055

)

 

$

(1,644

)

 

The Canadian non-capital losses expire between 2032 and 2044. As of September 30, 2025 and December 31, 2024, the Company had Canadian non-capital loss carry forwards of approximately $18.7 million and $20.8 million, respectively. As of September 30, 2025 and December 31, 2024, we had a valuation allowance of approximately $2.7 million and $1.9 million, respectively, related to non-capital loss carry-forwards, non deductible interest expense carry forwards, and basis differences at certain of our Canadian properties.

As of September 30, 2025, we had no interest or penalties related to uncertain tax positions. In the United States, the tax years 2021-2024 remain open to examination, and in Canada, the tax years 2021-2024 remain open to examination, with possible extensions under certain conditions that would allow the years 2018-2024 to be open to examination.