Leases

6 Months Ended

Jun. 30, 2020

Leases, Operating [Abstract]

Leases

Note 7. Leases

As of June 30, 2020, all of the properties owned by the Company were occupied by a single tenant, the USPS. Certain leases have expired and the balance expire at various dates through November 30, 2029.

Future minimum lease payments to be received as of June 30, 2020 under non-cancellable operating leases for the next five years and thereafter are as follows: ⁽¹⁾

Year Ending December 31,	Amount
2020 – Remaining(2)	$	7,578,190
2021		14,219,786
2022		10,753,252
2023		8,248,719
2024		5,703,053
Thereafter		7,326,944
Total	$	53,829,944

Explanatory Notes:

(1) The above minimum lease payments to be received do not include reimbursements from the USPS for real estate taxes.

(2) As of June 30, 2020, the leases at 43 of our properties had expired and the USPS was occupying such properties as a holdover tenant. In addition, the lease at one of our properties is a month to month lease. Holdover rent is paid as the greater of market rent or the rent amount due under the expired lease.

Impact of COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID-19) a pandemic. The resulting restrictions on travel and quarantines imposed have had a negative impact on the U.S. economy and business activity globally, the full impact of which is not yet known and may result in an adverse impact to the Company’s tenant and operating results.

During the six months ended June 30, 2020, the Company assumed an operating ground lease at one of our properties which includes rent escalations throughout the lease term (including renewal options) and expires on September 30, 2059. Ground lease expense is included in “Property Operating Expenses” on the Company’s Consolidated and Combined Consolidated Statements of Operations.

Year Ending December 31,	Amount
2020 – Remaining	$	11,200
2021		22,400
2022		22,400
2023		22,400
2024		22,960
Thereafter		1,159,690
Total	$	1,261,050