5. LEASES:

Original lease terms for the majority of the Properties are generally five to twenty years from their inception. The leases generally provide for minimum rents and additional rents based upon percentages of gross sales in excess of specified breakpoints. The lessee is responsible for occupancy costs such as maintenance, insurance, real estate taxes, and utilities. Accordingly, these amounts are not reflected in the statements of income except in circumstances where, in Management’s opinion, the Partnership will be required to pay such costs to preserve its assets (i.e., payment of past-due real estate taxes). Management has determined that the leases are properly classified as operating leases; therefore, rental income is reported when earned on a straight-line basis and the cost of the property, excluding the cost of the land, is depreciated over its estimated useful life.

As of September 30, 2013, the aggregate minimum operating lease payments (including the aggregate total of the first through third quarters of 2013 collected revenues of $763,454) to be received under the current operating leases for the Partnership’s properties are as follows:


Year ending December 31,
2013	$	1,022,534
2014		952,462
2015		804,553
2016		791,935
2017		720,433

Thereafter		2,959,282

	$	7,251,199

Operating percentage rents included in operating rental income for the three month periods ended September 30, 2013 and 2012 were $205,645 and $193,700, respectively. Operating percentage rents included in operating rental income for the nine month periods ended September 30, 2013 and 2012 were $238,583 and $219,200, respectively. The percentage rents for 2013 and 2012 included percentage rent accruals for tenants who had reached their sales breakpoints. Total operating percentage rents included in rental income from operations in 2012 were $465,406. At September 30, 2013 and December 31, 2012, rents and other receivables included $238,583 and $465,406, respectively, of unbilled percentage rents. As of September 30, 2013, all of the 2012 percentage rents had been billed and collected.