REAL ESTATE INVESTMENTS, NET (Tables)

9 Months Ended

Sep. 30, 2020

The following table provides summary information regarding the Company’s operating properties as of September 30, 2020:


Property	Location	Acquisition Date	Property Type	Land, Buildings and Improvements		Tenant Origination and Absorption Costs		Accumulated Depreciation and Amortization		Total Investment in Real Estate Property, Net
Accredo Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,269,349	$	(2,104,747)	$	9,020,449
Dollar General	Litchfield, ME	11/4/2016	Retail	1,281,812		116,302		(155,945)		1,242,169
Dollar General	Wilton, ME	11/4/2016	Retail	1,543,776		140,653		(199,575)		1,484,854
Dollar General	Thompsontown, PA	11/4/2016	Retail	1,199,860		106,730		(149,835)		1,156,755
Dollar General	Mt. Gilead, OH	11/4/2016	Retail	1,174,188		111,847		(143,657)		1,142,378
Dollar General	Lakeside, OH	11/4/2016	Retail	1,112,872		100,857		(147,437)		1,066,292
Dollar General	Castalia, OH	11/4/2016	Retail	1,102,086		86,408		(143,250)		1,045,244
Dana (1)	Cedar Park, TX	12/27/2016	Industrial	6,802,876		531,439		(1,762,138)		5,572,177
Northrop Grumman	Melbourne, FL	3/7/2017	Office	12,382,991		1,341,199		(2,773,228)		10,950,962
exp US Services	Maitland, FL	3/27/2017	Office	6,056,668		388,248		(777,286)		5,667,630
Wyndham	Summerlin, NV	6/22/2017	Office	10,406,483		669,232		(1,081,599)		9,994,116
Williams Sonoma	Summerlin, NV	6/22/2017	Office	8,079,612		550,486		(980,566)		7,649,532
Omnicare	Richmond, VA	7/20/2017	Industrial	7,262,747		281,442		(771,324)		6,772,865
EMCOR	Cincinnati, OH	8/29/2017	Office	5,960,610		463,488		(559,314)		5,864,784
Husqvarna	Charlotte, NC	11/30/2017	Industrial	11,840,200		1,013,948		(1,024,378)		11,829,770
AvAir	Chandler, AZ	12/28/2017	Industrial	27,357,900		—		(1,937,616)		25,420,284
3M	DeKalb, IL	3/29/2018	Industrial	14,762,819		2,356,361		(3,165,253)		13,953,927
Cummins	Nashville, TN	4/4/2018	Office	14,465,491		1,536,998		(1,953,297)		14,049,192
Northrop Grumman Parcel	Melbourne, FL	6/21/2018	Land	329,410		—		—		329,410
Texas Health	Dallas, TX	9/13/2018	Office	6,976,703		713,221		(607,013)		7,082,911
Bon Secours	Richmond, VA	10/31/2018	Office	10,388,751		800,356		(865,130)		10,323,977
Costco	Issaquah, WA	12/20/2018	Office	27,330,797		2,765,136		(2,328,660)		27,767,273
Taylor Fresh Foods	Yuma, AZ	10/24/2019	Industrial	34,194,369		2,894,017		(1,266,604)		35,821,782
Chevron Gas Station	San Jose, CA	12/31/2019	Retail	4,054,759		145,577		(45,475)		4,154,861
Levins	Sacramento, CA	12/31/2019	Industrial	4,429,390		221,927		(165,456)		4,485,861
Chevron Gas Station	Roseville, CA	12/31/2019	Retail	3,648,571		136,415		(89,270)		3,695,716
Dollar General	Bakersfield, CA	12/31/2019	Retail	4,899,714		261,630		(110,349)		5,050,995
PMI Preclinical	San Carlos, CA	12/31/2019	Industrial	9,672,174		408,225		(153,241)		9,927,158
EcoThrift	Sacramento, CA	12/31/2019	Retail	5,550,226		273,846		(223,109)		5,600,963
GSA (MSHA)	Vacaville, CA	12/31/2019	Office	3,112,076		243,307		(103,886)		3,251,497
PreK Education	San Antonio, TX	12/31/2019	Retail	12,447,287		447,927		(449,571)		12,445,643
Dollar Tree	Morrow, GA	12/31/2019	Retail	1,320,367		73,298		(53,183)		1,340,482
Solar Turbines	San Diego, CA	12/31/2019	Office	7,133,241		284,026		(253,605)		7,163,662
Wood Group	San Diego, CA	12/31/2019	Industrial	9,731,220		392,955		(423,870)		9,700,305
ITW Rippey	El Dorado, CA	12/31/2019	Industrial	7,071,143		304,387		(226,824)		7,148,706
Dollar General	Big Spring, TX	12/31/2019	Retail	1,281,683		76,351		(38,227)		1,319,807
Gap	Rocklin, CA	12/31/2019	Office	8,378,276		360,377		(359,480)		8,379,173
L-3 Communications	San Diego, CA	12/31/2019	Industrial	11,631,857		454,035		(353,117)		11,732,775
Sutter Health	Rancho Cordova, CA	12/31/2019	Office	29,555,055		1,616,610		(810,261)		30,361,404
Walgreens	Santa Maria, CA	12/31/2019	Retail	5,223,442		335,945		(99,720)		5,459,667
				$	351,009,349	$	24,274,555	$	(28,856,496)	$	346,427,408

(1) See impairment charges discussion below.

The details of the Company's real estate impairment charges for the nine months ended September 30, 2020 were as follows:

Property

Location

Nine Months Ended September 30, 2020

Rite Aid

Lake Elsinore, CA

349,457

Dana

Cedar Park, TX

2,184,395

24 Hour Fitness

Las Vegas, NV

5,664,517

Dinan Cars

Morgan Hill, CA

1,308,156

9,506,525

Dispositions and Real Estate Investments Held for Sale

The Company sold the following properties during the nine months ended September 30, 2020:


Property	Location	Disposition Date	Property Type	Rentable Square Feet	Contract Sale Price		(Loss) Gain on Sale
Rite Aid	Lake Elsinore, CA	8/3/2020	Retail	70,960	$	7,250,000	$	(422)
Walgreens	Stockbridge, GA	8/27/2020	Retail	15,120	5,538,462		1,306,768
Island Pacific	Elk Grove, CA	9/16/2020	Retail	27,296	3,155,000		387,296
				113,376	$	15,943,462	$	1,693,642

The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of September 30, 2020:


	September 30, 2020
Assets related to real estate investments held for sale:
Land, buildings and improvements	$	24,971,754
Tenant origination and absorption costs	176,276
Accumulated depreciation and amortization	(2,114,912)
Real estate investments held for sale, net	23,033,118
Other assets, net	864,008
Total assets related to real estate investments held for sale:	$	23,897,126

Liabilities related to real estate investments held for sale:
Mortgage notes payable, net	$	14,671,370
Other liabilities, net (a)	3,934,795
Total liabilities related to real estate investments held for sale:	$	18,606,165

(a) Includes the estimated liability for a loan guarantee related to the secured mortgage for the Las Vegas, Nevada property formerly leased to 24 Hour Fitness, as a result of the evaluation of the impact of the COVID-19 pandemic on the tenant's business and the risk that the lender could foreclose on the property if the pending sale described above does not close.

The following table summarizes the major components of rental income, expenses and impairment related to real estate investments held for sale as of September 30, 2020, which were included in continuing operations for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Total revenues	$	366,673	$	593,981	$	2,004,279	$	1,750,072
Expenses:
Interest expense	169,871		155,722		554,009		610,583
Depreciation and amortization	145,695		198,785		554,036		594,353
Other expenses	143,173		169,520		414,115		499,998
Impairment of real estate properties/reserve	—		—		10,097,710		—
Total expenses	458,739		524,027		11,619,870		1,704,934
Net (loss) income	$	(92,066)	$	69,954	$	(9,615,591)	$	45,138

Revenue Concentration

The Company’s revenue concentration based on tenants representing greater than 10% of total revenues for the three and nine months ended September 30, 2019 was as follows:


	Three Months Ended September 30, 2019
Property and Location	Revenue		Percentage of Total Revenue
Costco, Issaquah, WA	$	662,585	10.8	%
AvAir, Chandler, AZ	$	671,406	11.0	%


	Nine Months Ended September 30, 2019
Property and Location	Revenue		Percentage of Total Revenue
Costco, Issaquah, WA	$	2,038,609	11.4	%
AvAir, Chandler, AZ	$	2,004,954	11.2	%

Rental Payments for Operating Leases

As of September 30, 2020, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases, excluding rents due related to real estate investments held for sale, are as follows:


October through December 2020	$	6,528,690
2021	25,681,770
2022	23,147,301
2023	19,412,451
2024	19,229,235
2025	15,813,536
Thereafter	42,540,235
	$	152,353,218

Intangible Assets

As of September 30, 2020, the Company’s lease intangibles were as follows:


	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
Cost	$	24,274,555	$	1,194,720	$	(15,552,554)
Accumulated amortization	(8,689,796)		(284,219)		2,277,721
Net amount	$	15,584,759	$	910,501	$	(13,274,833)

Intangible Assets Amortization

As of September 30, 2020, the amortization of intangible assets for the three months ending December 31, 2020 and for each year of the next five years and thereafter is expected to be as follows:


	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
October through December 2020	$	1,106,918	$	35,445	$	(383,344)
2021	3,698,643		141,779		(1,525,877)
2022	2,709,134		141,780		(1,280,223)
2023	1,832,039		139,131		(984,317)
2024	1,715,028		134,500		(980,897)
2025	1,316,375		122,383		(980,897)
Thereafter	3,206,622		195,483		(7,139,278)
	$	15,584,759	$	910,501	$	(13,274,833)

Weighted-average remaining amortization period	7.0 years		7.3 years		12.2 years

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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