Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

4. LEASES:

Original lease terms for the Properties were 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 June 30, 2019, the aggregate minimum operating lease payments (including the aggregate total of the first two quarters of 2019 collected revenues of $410,190) to be received under the current operating leases for the Properties are as follows:

Year ending December 31,
2019	$	798,433
2020		835,933
2021		861,725
2022		881,130
2023		882,345
Thereafter		2,878,775
	$	7,138,341

At June 30, 2019 and December 31, 2018, rents and other receivables included $108,144 and $533,344, respectively, of unbilled percentage rents. As of June 30, 2019, all of the 2018 percentage rents had been billed and collected.