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. Income for these amounts is recognized on a straight-line basis. The Company’s leases also provide for reimbursement of 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. 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, 2025 and 2024:


	2025			2024
Rental income
Fixed and in-substance fixed lease income		6,616,845			5,934,480
Variable lease income		752,975			1,045,265
Other related lease income, net:
Amortization of above- and below-market leases, net		(172,311	)		(203,906	)
Straight line rent, net		50,541			74,253
Total Rental income		7,248,050			6,850,092

For the nine months ended September 30, 2025 and 2024, the following tenants each accounted for more than 10% of our rental revenue as indicated below:


	2025	2024
General Services Administration - Norfolk, VA, Manteo, NC & Vacaville, CA	16%	12%
Dollar General - multiple locations	13%	11%
Pre-K - San Antonio, TX	11%	11%
Kohl's - Tucson, AZ	10%	10%
exp U.S. Services - Maitland, FL	10%	10%

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,
	2025
2025 (3 months remaining)	$	2,211,905
2026		8,585,646
2027		6,866,687
2028		5,553,014
2029		4,360,830
Thereafter		21,749,093
	$	49,327,175

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.

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 September 30, 2025 and 2024 and $281,285 and $281,285 for the nine months ended September 30, 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 $61,278 for the three months ended September 30, 2025 and 2024, respectively, and $183,834 and $182,799 for the nine months ended September 30, 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 September 30, 2025 and provides a reconciliation to the lease liability included in the accompanying Consolidated Balance Sheets as of September 30, 2025.


	As of September 30,
	2025
2025 (3 months remaining)		61,278
2026		245,111
2027		245,111
2028		245,111
2029		257,839
Thereafter		21,317,695
Total undiscounted liability	$	22,372,145
Present value discount		(15,869,132	)
Lease liability	$	6,503,013
Discount rate		4.58	%
Term Remaining	58 years