NOTE 3. INCOME PROPERTIES

Leasing revenue consists of long-term rental revenue from retail, office, and commercial income properties, which is recognized as earned, using the straight-line method over the life of each lease. Lease payments below include straight-line base rental revenue as well as the non-cash accretion of above and below market lease amortization. The variable lease payments are primarily comprised of percentage rents, reimbursements from tenants for common area maintenance, insurance, real estate taxes, other operating expenses, and termination fee payments.

The components of leasing revenue are as follows (in thousands):

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Minimum future base rental receipts under non-cancelable operating leases, excluding percentage rent and other lease payments that are not fixed and determinable, having remaining terms in excess of one year subsequent to September 30, 2026, are summarized as follows (in thousands):

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2026 Acquisitions. During the nine months ended September 30, 2026, the Company acquired three shopping center properties, an outparcel at one of its existing shopping centers, and one land parcel for an aggregate purchase price of $203.1 million, or a total acquisition cost of $203.7 million, as described below:

Of the aggregate $203.7 million acquisition cost, $53.1 million was allocated to land, $120.4 million to buildings and improvements, $43.0 million to intangible assets including in-place lease value, leasing costs, and above-market lease value, $9.6 million to below-market lease liabilities, and $3.2 million related to other liabilities. The weighted average amortization period for the intangible assets and liabilities was 5.2 years at acquisition.

2026 Dispositions. During the nine months ended September 30, 2026, the Company sold two shopping center properties for $90.7 million, generating gains of $2.1 million.

2025 Acquisitions. During the nine months ended September 30, 2025, the Company acquired Ashley Park, a shopping center located in Newnan, Georgia, for a purchase price of $79.8 million, or a total acquisition cost of $80.0 million, including capitalized acquisition costs. Ashley Park comprises approximately 559,000 square feet, was 92% occupied at acquisition, and had a weighted average remaining lease term of 4.1 years at acquisition. Of the total acquisition costs, $26.0 million was allocated to land, $40.9 million to buildings and improvements, $16.8 million to intangible assets pertaining to the in-place lease value, leasing costs, and above market lease value and $3.7 million to intangible liabilities for the below market lease value.

2025 Dispositions. During the nine months ended September 30, 2025, the Company sold its three single-tenant Main Street properties in Daytona Beach, Florida for $7.1 million, generating gains totaling $1.2 million.