Real Estate Investments

12 Months Ended

Dec. 31, 2025

(4) Real Estate Investments –

The Partnership leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 7.75 to 20 years. The leases provide the tenants with two to five five-year renewal options subject to the same terms and conditions as the primary term, except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option.

The Partnership's properties are commercial, single-tenant buildings. The Advance Auto Parts store in Indianapolis, Indiana was constructed in 2005, acquired in 2006 and sold in July 2025. The Talecris Plasma Facility in Dallas, Texas was constructed in 2008 and acquired in 2020. The DaVita facility in Hempstead, Texas was constructed in 2015 and acquired in 2022. There have been no costs capitalized as improvements subsequent to the acquisitions.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2025 are as follows:


Property	Land		Buildings		Total		Accumulated Depreciation

DaVita, Hempstead, TX	$	629,728	$	2,069,828	$	2,699,556	$	269,077
Talecris Plasma Facility, Dallas, TX		585,423		1,707,998		2,293,421		370,067
	$	1,215,151	$	3,777,826	$	4,992,977	$	639,144

For the years ended December 31, 2025 and 2024, the Partnership recognized depreciation expense of $165,238 and $205,532, respectively.

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:


		2025			2024
		Cost	Accumulated Amortization		Cost		Accumulated Amortization
In-Place Lease Intangibles (weighted average life of 43 and 55 months, respectively)	$	558,153	305,387	$	558,153	$	234,881

Above-Market Lease Intangibles (weighted average life of 39 and 51 months, respectively)		246,229	145,506		246,229		114,631
Acquired Intangible Lease Assets	$	804,382	450,893	$	804,382	$	349,512

For the years ended December 31, 2025 and 2024, the value of in-place lease intangibles amortized to expense was $70,506 and the decrease to rental income for above-market leases was $30,875.

For lease intangibles not held for sale at December 31, 2025, the estimated amortization for the next five years is as follows:


	Amortization Expense for In-Place Lease Intangibles		Decrease to Rental Income for Above-Market Leases

2026	$	70,506	$	30,875
2027		70,506		30,875
2028		58,777		23,927
2029		35,318		10,031
2030		17,659		5,015
	$	252,766	$	100,723

In October 2024, the Partnership entered into an agreement to sell its 100% interest in the St. Vincent Clinic in Lonoke, Arkansas to an unrelated third party. On December 17, 2024, the sale closed with the Partnership receiving net proceeds of $661,301, which resulted in a net gain of $32,817. At the time of sale, the cost and related accumulated depreciation was $1,645,000 and $1,016,516, respectively.

In May 2025, the Partnership entered into an agreement to sell its 65% interest in the Advance Auto Parts store in Indianapolis, Indiana to an unrelated third party. On July 29, 2025, the sale closed with the Partnership receiving net proceeds of $920,594, which resulted in a net gain of $200,237. At the time of sale, the cost and related accumulated depreciation was $1,244,173 and $523,816, respectively.

For properties owned as of December 31, 2025, the minimum future rent payments required by the leases are as follows:

2026	$	419,962
2027		426,548
2028		354,161
2029		200,430
2030		100,215
Thereafter		0
	$	1,501,316

There were no contingent rents recognized in 2025 and 2024.