All of the Company's leases of real estate 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 tenants for common area maintenance (“CAM”), insurance, real estate taxes and other operating expenses (“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. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income:


	2024			2023
Rental income
Fixed and in-substance fixed lease income		8,086,951			6,595,120
Variable lease income		1,715,047			931,731
Other related lease income, net:
Amortization of above- and below-market leases, net		(263,442	)		2,141
Straight line rent, net		(27,765	)		64,572
Total Rental income		9,510,791			7,593,564

For the twelve months ended December 31, 2024 and 2023, we had five tenants and four tenants, respectively, that each account for more than 10% of our annual rental revenue as indicated below:


	2024			2023
General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA		12	%		18	%
Pre-K - San Antonio, TX		11	%	<10%
Dollar General		12	%	<10%
Kohl's Corporation		10	%		12	%
exp U.S. services		10	%	<10%
PRA Holdings, Inc. - Norfolk, VA	<10%				11	%
Pratt & Whitney Automation, Inc. - Huntsville, AL	N/A				20	%

Certain percentages referenced in the table above for the twelve months ended December 31, 2023 that were not presented in Form 10-K as of December 31, 2023, have been included for comparability with tenant activity for the twelve months ended December 31, 2024.

Future Minimum Rents

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 December 31,
	2024
2025	$	8,569,192
2026		8,368,784
2027		6,557,503
2028		4,897,628
2029		3,668,471
Thereafter		16,383,885
	$	48,445,463

Lessee Accounting

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 $375,047 for the twelve months ended for both December 31, 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 $244,077 and $232,701 for the twelve months ended December 31, 2024 and 2023, respectively.

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


	As of December 31,
	2024
2025		245,111
2026		245,111
2027		245,111
2028		245,111
2029		257,839
Thereafter		21,317,694
Total undiscounted liability	$	22,555,977
Present value discount		(16,091,335	)
Lease liability	$	6,464,642
Discount rate		4.58	%
Term Remaining	59 years