All of the Company's leases are classified as operating leases. The Company's rental income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent. The Company’s leases also provide for reimbursement from recoverable costs. A portion of our operating cost reimbursement revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. Income for these amounts is recognized on a straight-line basis. Variable lease income includes the tenants' contractual obligations to reimburse the Company for their portion of recoverable costs incurred and index based rent adjustments. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income for the nine months ended September 30, 2024 and 2023:


	2024			2023
Rental income
Fixed and in-substance fixed lease income	$	5,934,480		$	3,784,640
Variable lease income		1,045,265			575,078
Other related lease income, net:
Amortization of above- and below-market leases, net		(203,906	)		81,408
Straight line rent revenue		74,253			45,375
Total rental income	$	6,850,092		$	4,486,501

For the nine months ended September 30, 2024 and 2023, the following tenants each accounted for more than 10% of our rental revenue as indicated below:


	2024			2023
General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA		12	%		23	%
Pre-K - San Antonio, TX		11	%	N/A
Dollar General		11	%	N/A
Kohl's Corporation		10	%		14	%
exp U.S. services		10	%	N/A
PRA Holdings, Inc. - Norfolk, VA		9	%		13	%
Pratt & Whitney Automation, Inc. - Huntsville, AL	N/A				12	%

The following table presents future minimum rental cash payments due to the Company over the next five calendar years and thereafter as of December 31:


	As of September 30,
	2024
2024 (3 months remaining)	$	2,155,664
2025		8,535,343
2026		8,251,393
2027		6,227,716
2028		4,547,697
Thereafter		18,645,714
	$	48,363,527

On March 29, 2024, the Company executed a 10-year lease, with two five-year renewal options, with Armed Services YMCA for the use of approximately 35,000 square feet of the property located at 2510 Walmer Avenue, Norfolk, Virginia. Rent commenced on May 1, 2024 under the contracted twelve month tenant improvement period at a reduced fixed base rent of approximately $23,000 per month. Base rent increases to a fixed rate of approximately $34,000 per month in month 13 and escalates annually at approximately 2.5%.

On August 29, 2024, the Company acquired a 30,465 square foot retail property in Ames, Iowa for $5.5 million occupied by Best Buy with a remaining lease of approximately 6 years at an annual base rent of $405,470. Future minimum rent reflected in the above table, accordingly.

The Company acquired one property on March 9, 2022 that is subject to a non-cancelable, long-term ground lease where a third party owns the underlying land and has leased the land to the Company. Accordingly, the Company owns only a long-term leasehold in this property. This ground lease expires in 2084 including those options the Company deems probable of exercising. The ground lease expense is recognized on a straight-line basis over the term of the lease, including management's estimate of expected option renewal periods. Operating lease expense was approximately $93,762 for the three months ended September 30, 2024 and 2023 and $281,285 for the nine months ended September 30, 2024 and 2023, respectively. There are no variable lease expenses required to be paid by the Company as lessee per the lease terms. Cash paid for amounts included in the measurement of the lease liability, net was $61,278 and $58,175 for the three months ended September 30, 2024 and 2023, respectively, and $182,799 and $174,525 for the nine months ended September 30, 2024 and 2023.

The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as of September 30, 2024 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of September 30, 2024.


	As of September 30,
	2024
2024 (3 months remaining)		61,019
2025		245,111
2026		245,111
2027		245,111
2028		245,111
Thereafter		21,575,533
Total undiscounted liability	$	22,616,996
Present value discount		(16,164,772	)
Lease liability	$	6,452,224
Discount rate		4.58	%
Term Remaining	60 years