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. The following table provides a disaggregation of lease income recognized as either fixed or variable lease income three months ended March 31, 2025 and 2024:


	2025			2024
Rental income
Fixed and in-substance fixed lease income	$	2,192,055		$	1,949,206
Variable lease income		197,879			388,729
Other related lease income, net:
Amortization of above- and below-market leases, net		(60,145	)		(67,969	)
Straight line rent revenue		41,508			4,764
Total rental income	$	2,371,297		$	2,274,730

For the three months ended March 31, 2025 and 2024, we had three tenants that each account for more than 10% of our rental revenue as indicated below:


	2025			2024
General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA		14	%		16	%
Pre-K - San Antonio, TX		10	%		14	%
Dollar General - multiple locations		12	%		13	%

The following table presents future minimum rental cash payments due to the Company over the next five calendar years and thereafter ending December 31 is listed below:


	As of March 31,
	2025
2025 (9 months remaining)	$	6,984,283
2026		9,081,429
2027		7,273,565
2028		5,617,155
2029		4,365,213
Thereafter		21,722,580
	$	55,044,225

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 on the property located at 2510 Walmer Avenue, Norfolk, Virginia. Rent commenced on May 1, 2024 under the contracted twelve month tenant improvement period of twelve months 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 is reflected in the above table, accordingly.

On February 6, 2025, the Company acquired three single-tenant retail properties from a single seller for an aggregate purchase price of approximately $11.2 million. The portfolio includes a 4,108-square-foot property in Sanford, Florida leased to Zaxby’s with annual base rent of approximately $240,434; a 10,640-square-foot property in Cleveland, Tennessee leased to Dollar General with annual base rent of approximately $119,728; and a 19,097-square-foot property in Kernersville, North Carolina leased to Tractor Supply Co. with annual base rent of approximately $303,000. Future minimum rent is 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 and $93,762 for the three months ended March 31, 2025 and 2024, 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 $60,244 for the three months ended March 31, 2025 and 2024, respectively.

The following table summarizes the undiscounted future cash flows for subsequent years ending December 31 attributable to the lease liability as of March 31, 2025 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of March 31, 2025.


	As of March 31,
	2025
2025 (9 months remaining)		183,833
2026		245,111
2027		245,111
2028		245,111
2029		257,839
Thereafter		21,317,695
Total undiscounted liability	$	22,494,700
Present value discount		(16,017,240	)
Lease liability	$	6,477,460
Discount rate		4.58	%
Term Remaining	59 years