On July 15, 2024, the Company acquired an industrial manufacturing property that produces optical systems for the defense and aerospace industries for $5,125,000. The property is located in the Tampa, Florida metropolitan area and the tenant entered into a 20-year sale-leaseback agreement at an initial cap rate of 8.00% and a weighted average cap rate of 10.59%, with annual rent escalations of 2.85%. The Company defines “initial cap rate” for property acquisitions as the initial annual cash rent divided by the purchase price of the property and defines “weighted average cap rate” as the average annual cash rent including rent escalations over the lease term, divided by the purchase price of the property. The total acquisition cost, including legal fees and transaction costs, was $5,183,443. The seller is not affiliated with the Company or its affiliates. The Company recognized $117,759 of rental income related to this property during each of the three and nine month periods ended September 30, 2024.

During the nine months ended September 30, 2023, the Company acquired 12 industrial manufacturing real estate properties for an aggregate of $129,753,499. These properties are located in Princeton, Savage, Detroit Lakes and Plymouth, Minnesota; Gap and Reading, Pennsylvania; Roscoe, Illinois; Lansing, Michigan; Ashland and Piqua, Ohio; Alleyton, Texas; and Andrews, South Carolina. These properties had a weighted average lease term of approximately 20.6 years upon acquisition. The Company recognized $3,136,705 and $3,079,272 of rental income related to these properties during the three months ended September 30, 2024 and 2023, respectively, and $9,395,523 and $5,025,967 of rental income related to these properties during the nine months ended September 30, 2024 and 2023, respectively.


Property Tenant	Location	Disposition Date	Property Type	Rentable Square Feet	Contract Sale Price		Gain on Sale		Net Proceeds
Levins	Sacramento, CA	1/10/2024	Industrial	76,000	$	7,075,000	$	3,178,860	$	7,033,680
Cummins	Nashville, TN	2/28/2024	Office	87,230	7,950,000		8,946		7,748,946
Lindsay (Land parcel)	Fulton, OH	9/27/2024	Industrial	—	240,000		172,001		240,000
				163,230	$	15,265,000	$	3,359,807	$	15,022,626

During the nine months ended September 30, 2023, the Company sold 14 non-core real estate properties (11 retail and three office) comprising 241,795 square feet for an aggregate contract sale price of $47,466,960, an aggregate loss on sale of $1,708,801 and aggregate net proceeds of $44,473,792, net of commissions, closing costs and repayment of the outstanding mortgages.

In March 2023, the Company recorded an impairment charge of $3,499,438 related to its property located in Nashville, Tennessee, leased to Cummins Inc. (“Cummins”). The Company determined that an impairment charge was triggered by expectations of a shortened holding period and estimated the property's fair value based upon market comparables at that time. This property was held for sale as of December 31, 2023 and sold on February 28, 2024 as described in Dispositions above.


	September 30, 2024				December 31, 2023
Property Tenant and Location	Net Carrying Value		Percentage of Total Assets		Net Carrying Value		Percentage of Total Assets
KIA retail property, Carson, CA	$	66,529,171	13.1	%	$	67,325,569	12.7	%


	Three Months Ended September 30,
	2024				2023
Property Tenant and Location	Rental Income		Percentage of Rental Income		Rental Income		Percentage of Rental Income
Lindsay, nine industrial properties located in: Colorado (three), Ohio (two), Pennsylvania, North Carolina, South Carolina and Florida	$	1,661,178	14.3	%	$	1,652,422	13.2	%
KIA retail property, Carson, CA	$	1,272,449	11.0	%	$	1,289,545	10.3	%


	Nine Months Ended September 30,
	2024				2023
Property Tenant and Location	Rental Income		Percentage of Rental Income		Rental Income		Percentage of Rental Income
Lindsay, nine industrial properties located in: Colorado (three), Ohio (two), Pennsylvania, North Carolina, South Carolina and Florida	$	4,989,473	14.3	%	$	4,474,870	12.9	%
KIA retail property, Carson, CA	$	3,757,648	10.8	%	$	3,879,601	11.2	%

The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. Except for properties leased to Solar Turbines Incorporated in San Diego, California and State of California's Office of Emergency Services in Rancho Cordova, California, all of the Company's operating leases contain options to extend the lease terms of one to six 5-year extensions or one to two 10-year extensions.

In September 2024, the Company extended the lease term of its San Diego, California property leased to WSP USA Inc. (f/k/a Wood Group) for an additional eight years, to February 28, 2034, and is continuing to explore potential lease extensions for certain of its other properties.

As of September 30, 2024, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, including lease amendments executed though the date of this report, if any, are as follows:


	September 30, 2024						December 31, 2023
	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles		Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
Cost	$	15,833,293	$	1,559,546	$	(14,364,650)	$	15,707,458	$	1,559,546	$	(14,364,650)
Accumulated amortization	(11,475,839)		(301,086)		6,186,343		(10,715,945)		(245,587)		5,496,046
Net	$	4,357,454	$	1,258,460	$	(8,178,307)	$	4,991,513	$	1,313,959	$	(8,868,604)


	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
October through December 2024	$	253,294	$	18,500	$	(230,099)
2025	815,131		70,712		(920,395)
2026	484,121		54,278		(920,395)
2027	470,945		54,278		(920,395)
2028	450,860		54,278		(910,053)
Thereafter	1,883,103		1,006,414		(4,276,970)
	$	4,357,454	$	1,258,460	$	(8,178,307)

Weighted-average remaining amortization period	8.4 years		22.6 years		9.1 years

On April 1, 2024, the Company entered into an amendment to the January 11, 2024 purchase and sale agreement with KB Home, a national homebuilder, for the sale of the Company's office property located in Issaquah, Washington leased to Costco until July 31, 2025. As a result of the City of Issaquah’s setback requirements, the number of townhomes planned for the property had to be reduced. The Company and the homebuilder therefore agreed to reduce the sales price from $28,650,000 to $25,300,000, with the ability to increase the purchase price by $325,000 for each additional townhome the buyer can add to the development prior to closing. The buyer completed its due diligence on April 26, 2024 and deposited $1,407,500 into escrow on May 1, 2024, bringing the total non-refundable deposit to $1,432,500.

Completing the sale remains subject to the buyer obtaining development approvals and the sale will not close until the earlier of (a) 15 days following the later of buyer obtaining all necessary development approvals and tenant vacating the property, but not prior to February 1, 2025, and (b) August 15, 2025 unless extended. The amendment to the purchase and sale agreement provides that the buyer can extend the outside closing date up to three times for 60 days for each extension. The nonrefundable extension fee for the first extension is $300,000 with 50% applicable to the purchase price. The nonrefundable extension fees for the second and third extensions are $200,000 and $300,000, respectively, and none of these extension fees will be applicable to the purchase price. The buyer is not affiliated with the Company or its affiliates. Since the pending disposition is not probable of being completed within 12 months of the balance sheet date, the property is not classified as a real estate investment held for sale as of September 30, 2024.

As of December 31, 2023, the Company classified two properties as held for sale, both of which were sold during the nine months ended September 30, 2024. The Company's industrial property located in Sacramento, California that was leased to Levins Auto Supply, LLC was sold on January 10, 2024 and its office property located in Nashville, Tennessee that was leased to Cummins, Inc. was sold on February 28, 2024. No properties were classified as held for sale as of September 30, 2024.


	December 31, 2023
Assets related to real estate investments held for sale:
Land, buildings and improvements	$	14,590,062
Tenant origination and absorption costs	1,779,156
Accumulated depreciation and amortization	(4,811,529)
Real estate investments held for sale, net	11,557,689
Other assets, net	103,337
Total assets related to real estate investments held for sale	$	11,661,026

Liabilities related to real estate investments held for sale:
Other liabilities, net	$	248,727
Total liabilities related to real estate investments held for sale	$	248,727