Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 000-55006 | |
Entity Registrant Name | MacKenzie Realty Capital, Inc. | |
Entity Central Index Key | 0001550913 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 45-4355424 | |
Entity Address, Address Line One | 89 Davis Road, Suite 100 | |
Entity Address, City or Town | Orinda | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94563 | |
City Area Code | 925 | |
Local Phone Number | 631-9100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,298,546.23 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Real Estate Assets | ||
Land | $ 33,083,386 | $ 32,117,072 |
Building, fixtures and improvements | 81,477,135 | 64,182,548 |
Intangible lease assets | 4,203,316 | 2,889,828 |
Less: accumulated depreciation and amortization | (2,680,434) | (1,768,130) |
Total real estate assets, net | 116,083,403 | 97,421,318 |
Cash | 10,763,645 | 7,400,163 |
Restricted cash | 837,137 | 1,092,816 |
Investments, at fair value | 16,622,030 | 19,748,208 |
Unconsolidated investment (non-security), at fair value | 39,111,026 | 37,845,036 |
Investments income, rents and other receivables | 390,301 | 1,499,214 |
Investment acquisition advance | 369,000 | 0 |
Prepaid expenses and other assets | 669,016 | 67,625 |
Assets held for sale, net | 17,563,311 | 17,490,581 |
Total assets | 202,408,869 | 182,564,961 |
Liabilities | ||
Mortgage notes payable, net | 80,285,267 | 68,370,415 |
Notes payable | 1,347,426 | 0 |
Deferred rent and other liabilities | 672,734 | 443,014 |
Dividend payable | 1,595,205 | 1,419,913 |
Accounts payable and accrued liabilities | 2,182,896 | 2,938,689 |
Stock redemption payable | 386,385 | 348,051 |
Below-market lease liabilities, net | 1,285,415 | 1,063,579 |
Due to related entities | 138,456 | 214,094 |
Contingent liability | 1,857,000 | 2,715,000 |
Capital pending acceptance | 235,000 | 85,000 |
Liabilities held for sale | 1,269,368 | 744,989 |
Total liabilities | 91,255,152 | 78,342,744 |
Equity | ||
Common stock, $0.0001 par value, 80,000,000 shares authorized; 13,254,809.10 and 13,253,571.98 shares issued and outstanding as of September 30, 2022 and June 30, 2022, respectively. | 1,325 | 1,325 |
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, 321,624.94 and 119,416.91 shares issued and outstanding as of September 30, 2022 and June 30, 2022, respectively. | 32 | 12 |
Capital in excess of par value | 126,493,201 | 121,961,699 |
Accumulated deficit | (24,332,668) | (24,108,723) |
Total stockholders' equity | 102,161,890 | 97,854,313 |
Non-controlling interests | 8,991,827 | 6,367,904 |
Total equity | 111,153,717 | 104,222,217 |
Total liabilities and equity | $ 202,408,869 | $ 182,564,961 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 13,254,809.1 | 13,253,571.98 |
Common stock, shares outstanding (in shares) | 13,254,809.1 | 13,253,571.98 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 321,624.94 | 119,416.91 |
Preferred stock, shares outstanding (in shares) | 321,624.94 | 119,416.91 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||
Rental and reimbursements | $ 3,068,503 | $ 2,722,582 |
Expenses | ||
Property operating and maintenance | 1,831,974 | 1,391,565 |
Interest expense | 1,587,963 | 348,740 |
Depreciation and amortization | 912,304 | 968,927 |
Asset management fees to related party (note 7) | 716,267 | 676,552 |
Professional fees | 207,804 | 222,032 |
Administrative cost reimbursements to related party (note 7) | 181,500 | 152,400 |
General and administrative | 100,223 | 16,183 |
Directors' fees | 25,500 | 25,500 |
Transfer agent cost reimbursements to related party (note 7) | 23,000 | 26,601 |
Total operating expenses | 5,586,535 | 3,828,500 |
Operating loss | (2,518,032) | (1,105,918) |
Other income | ||
Dividend and distribution income from equity securities at fair value | 126,395 | 386,071 |
Net unrealized gain (loss) on equity securities at fair value | (547,569) | 3,154,633 |
Net income from equity method investments at fair value | 3,708,213 | 1,886,553 |
Net realized gain from investments | 517,447 | 602,820 |
Net income | 1,286,454 | 4,924,159 |
Net income attributable to non-controlling interests | (32,225) | (358) |
Net income attributable to preferred stockholders | (87,884) | 0 |
Net income attributable to common stockholders | $ 1,166,345 | $ 4,923,801 |
Net income per share attributable to common stockholders (in dollars per share) | $ 0.09 | $ 0.37 |
Weighted average common shares outstanding (in shares) | 13,281,069.23 | 13,333,927.46 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Non-controlling Interests [Member] | Total | ||
Balance at Jun. 30, 2021 | $ 1,332 | $ 120,408,505 | $ (23,298,857) | $ 97,110,980 | $ 251,840 | $ 97,362,820 | |||
Balance (in shares) at Jun. 30, 2021 | 13,316,426.79 | ||||||||
Distributions to non-controlling interest holders | $ 0 | 0 | 0 | 0 | (2,050) | (2,050) | |||
Dividends to common stockholders | 0 | 0 | (1,731,482) | (1,731,482) | (1,733,049) | ||||
Dividends to stockholders | (1,567) | ||||||||
Net income | 0 | 0 | 4,923,801 | 4,923,801 | 358 | 4,924,159 | |||
Issuance of common stock through reinvestment of dividends | $ 2 | 243,486 | 0 | 243,488 | 0 | 243,488 | |||
Issuance of common stock through reinvestment of dividends (in shares) | 26,394.45 | ||||||||
Balance at Sep. 30, 2021 | $ 1,334 | 120,651,991 | (20,106,538) | 100,546,787 | 248,581 | 100,795,368 | |||
Balance (in shares) at Sep. 30, 2021 | 13,342,821.24 | ||||||||
Balance at Jun. 30, 2022 | $ 1,325 | $ 12 | 121,961,699 | (24,108,723) | 97,854,313 | 6,367,904 | 104,222,217 | ||
Balance (in shares) at Jun. 30, 2022 | 13,253,571.98 | 119,416.91 | |||||||
Distributions to non-controlling interest holders | $ 0 | $ 0 | 0 | 0 | 0 | (117,941) | (117,941) | ||
Operating Partnership Preferred Units issued | $ 0 | 0 | 0 | 0 | 2,711,378 | 2,711,378 | |||
Operating Partnership Preferred Units issued (in shares) | 0 | ||||||||
Dividends to common stockholders | $ 0 | 0 | 0 | (1,390,290) | (1,390,290) | (1,390,290) | |||
Dividends to preferred stockholders | 0 | 0 | 0 | (87,884) | (87,884) | (87,884) | |||
Net income | 0 | 0 | 0 | 1,254,229 | 1,254,229 | 32,225 | 1,286,454 | ||
Operating Partnership Class A conversion to common stock | $ 0 | [1] | $ 0 | 1,739 | 0 | 1,739 | (1,739) | 0 | |
Operating Partnership Class A conversion to common stock (in shares) | 169.67 | 0 | |||||||
Issuance of preferred stock | $ 20 | 5,031,830 | 0 | 5,031,850 | 0 | 5,031,850 | |||
Issuance of preferred stock (in shares) | 201,993.42 | ||||||||
Issuance of common stock through reinvestment of dividends | $ 4 | 386,381 | 0 | 386,385 | 0 | 386,385 | |||
Issuance of common stock through reinvestment of dividends (in shares) | 41,884.51 | ||||||||
Issuance of preferred stock through reinvestment of dividends | $ 0 | [1] | 4,829 | 0 | 4,829 | 0 | 4,829 | ||
Issuance of preferred stock through reinvestment of dividends (in shares) | 214.61 | ||||||||
Payment of selling commissions and fees | $ 0 | $ 0 | (506,896) | 0 | (506,896) | 0 | (506,896) | ||
Redemption of common stock | $ (4) | $ 0 | (386,381) | 0 | (386,385) | 0 | (386,385) | ||
Redemption of common stock (in shares) | (40,817.06) | 0 | |||||||
Balance at Sep. 30, 2022 | $ 1,325 | $ 32 | $ 126,493,201 | $ (24,332,668) | $ 102,161,890 | $ 8,991,827 | $ 111,153,717 | ||
Balance (in shares) at Sep. 30, 2022 | 13,254,809.1 | 321,624.94 | |||||||
[1]Amount is less than $1. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 1,286,454 | $ 4,924,159 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Net unrealized (gain) loss on equity securities at fair value | 547,569 | (3,154,633) |
Net income from equity method investments at fair value | (3,386,117) | (133,072) |
Net realized gain on investments | (517,447) | (602,820) |
Straight - line rent | (8,208) | (352,274) |
Depreciation and amortization | 912,304 | 968,927 |
Amortization of deferred financing costs | 259,522 | 0 |
Accretion of market lease and other intangibles, net | (12,422) | (42,379) |
Changes in assets and liabilities: | ||
Investments income, rent and other receivables | 1,002,972 | (411,356) |
Prepaid expenses and other assets | (575,497) | (1,006,582) |
Deferred rent and other liabilities | 268,216 | 874,903 |
Accounts payable and accrued liabilities | (584,292) | (97,909) |
Due to related entities | (43,230) | 83,885 |
Net cash from operating activities | (850,176) | 1,050,849 |
Cash flows from investing activities: | ||
Proceeds from sale of investments | 2,083,728 | 7,415,404 |
Investment acquisition advance | (369,000) | (7,620,000) |
Investments in real estate assets | (1,215,049) | (12,677) |
Purchase of investments | (105,562) | (108,063) |
Return of capital distributions | 1,017,016 | 3,931,141 |
Payment on contingent liability | (858,000) | 0 |
Net cash from investing activities | 553,133 | 3,605,805 |
Cash flows from financing activities: | ||
Payments on mortgage notes payable | (51,486) | (210,543) |
Payments on notes payable | (2,972) | 0 |
Dividend to stockholders | (970,654) | (555,335) |
Proceeds from issuance of preferred stock | 5,031,850 | 0 |
Payment of selling commissions and fees | (538,902) | 0 |
Distributions to non-controlling interests holders | (58,956) | (2,050) |
Redemption of common stock | (348,051) | 0 |
Capital pending acceptance | 150,000 | 0 |
Net cash from financing activities | 3,210,829 | (767,928) |
Net increase in cash and restricted cash | 2,913,786 | 3,888,726 |
Cash and restricted cash at beginning of the period | 8,998,165 | 7,753,553 |
Cash and restricted cash at end of the period | 11,911,951 | 11,642,279 |
Cash at end of the period | 10,763,645 | 9,043,798 |
Restricted cash at end of the period | 837,137 | 0 |
Cash and restricted cash at end of the period classified as assets held for sale | 311,169 | 2,598,481 |
Supplemental disclosure of non-cash financing activities and other cash flow information | ||
Issuance of the Operating Partnership Preferred units for the purchase of First & Main, LP (Note 1) | 2,711,378 | 0 |
Fair value of assets acquired from consolidation of First & Main, LP | 18,188,301 | 0 |
Fair value of liablities assumed from consolidation of First & Main, LP | 13,239,923 | 0 |
Issuance of common stock through reinvestment of dividends | 386,385 | 243,488 |
Issuance of preferred stock through reinvestment of dividends | 4,829 | 0 |
Cash paid for interest | $ 1,138,118 | $ 346,837 |
PRINCIPAL BUSINESS AND ORGANIZA
PRINCIPAL BUSINESS AND ORGANIZATION | 3 Months Ended |
Sep. 30, 2022 | |
PRINCIPAL BUSINESS AND ORGANIZATION [Abstract] | |
PRINCIPAL BUSINESS AND ORGANIZATION | NOTE 1 – PRINCIPAL BUSINESS AND ORGANIZATION MacKenzie Realty Capital, Inc. (the “Parent Company” together with its subsidiaries as discussed below, the “Company ,” “we,” “us,” or “our ) was incorporated under the general corporation laws of the State of Maryland on January 25, 2012. We were formerly a non-diversified, closed-end investment company that elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). We withdrew our election to be treated as a BDC on December 31, 2020. We have elected to be treated as a real estate investment trust (“REIT”) as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are authorized to issue 100,000,000 shares, of which (i) 80,000,000 are designated as common stock, with a $0.0001 par value per share; and (ii) 20,000,000 are designated as preferred stock, with a $0.0001 par value per share. is June 30. We filed our initial registration statement in June 2012 with the Securities and Exchange Commission (“SEC”) to register the initial public offering of 5,000,000 shares of our common stock. The initial public offering commenced in January 2014 and concluded in October 2016. We filed a second registration statement with the SEC to register a subsequent public offering of 15,000,000 shares of our common stock. The second offering commenced in December 2016 and concluded on October 28, 2019. We filed a third registration statement with the SEC to register a public offering of 15,000,000 shares of our common stock that was declared effective by the SEC on October 31, 2019. The third offering commenced shortly thereafter and expired on October 31, 2020. On October 23, 2020, holders of a majority of our outstanding common stock authorized our Board of Directors to withdraw our election to be regulated as a BDC under the 1940 Act. The withdrawal was effective with the SEC on December 31, 2020, when we filed the appropriate form with the SEC. The Parent Company’s wholly owned subsidiary, MRC TRS, Inc., (“TRS”) was incorporated under the general corporation laws of the State of California on February 22, 2016 and operates as a taxable REIT subsidiary. MacKenzie NY Real Estate 2 Corp., (“MacKenzie NY 2”), a wholly owned subsidiary of TRS, was formed for the purpose of making certain limited investments in New York companies. The financial statements of TRS and MacKenzie NY 2 have been consolidated with the Parent Company. On May 20, 2020, we formed an operating partnership, MacKenzie Realty Operating Partnership, LP (the “Operating Partnership”) for the purpose of acquiring and operating real estate assets. As of September 30, 2022, we own all limited partnership units of the Operating Partnership except for 89,552.61 Class A Limited Partnership units and 327,172.32 preferred units, which would be entitled to receive, at liquidation of the Operating Partnership, 89,552.61 common shares of the Company (stated value of $10.25 per share) and $8,179,308.00 (stated value of $25 per share) in liquidation preference, respectively, which are approximately 13.05% of the Operating Partnership’s total capital outstanding. In March 2021, we, together with our joint venture partners, formed two operating companies: Madison-PVT Partners LLC (“Madison”) and PVT-Madison Partners LLC (“PVT”), to acquire and operate two residential apartment buildings located in Oakland, California. We own 98.45% and 98.75% of equity units of Madison and PVT, respectively. The joint venture partners own the remaining 1.55% and 1.25% equity units of Madison and PVT, respectively, and also hold a carried interest in both companies. We are the controlling majority owner of both companies; therefore, effective March 31, 2021, we have consolidated the financial statements of these companies. On April 13, 2021, we filed a preliminary offering circular (the “Offering Circular”) pursuant to Regulation A with the SEC to sell up to $50,000,000 of shares of our Series A preferred stock at an initial offering price of $25.00 per share. The sale of shares pursuant to this offering began in November 2021 after the definitive version of the Offering Circular was qualified by the SEC on November 2, 2021. On October 4, 2021, through the Operating Partnership, we acquired a 90% economic interest in Hollywood Hillview, a Delaware limited liability company, to acquire and operate a multifamily building located in Los Angeles, California. The remaining 10% economic interest in Hollywood Hillview is owned by an unaffiliated third party, True USA, LLC. Hollywood Hillview owns 100% of the membership interests in PT Hillview GP, LLC (the “PT Hillview”). We are the controlling majority owner of Hollywood Hillview; therefore, effective December 31, 2021, we have consolidated the financial statements of Hollywood Hillview. On January 25, 2022, through the Operating Partnership, we acquired a 98% limited liability company interest in MacKenzie BAA IG Shoreline LLC (“MacKenzie Shoreline”), formed to acquire, renovate, and own the 84-unit multifamily building located at 1841 Laguna Street, Concord, CA. The joint venture partners own the remaining 2% of the limited liability company interest as well as a carried interest. We are the controlling majority owner of the MacKenzie Shoreline; therefore, effective June 30, 2022, we have consolidated the financial statements of MacKenzie Shoreline. On April 1, 2022, we, and our newly formed, wholly owned subsidiary, FSP Merger Sub, Inc. (“Merger Sub”) entered into a reverse triangular merger agreement with FSP Satellite Place Corp. (“FSP Satellite”), pursuant to which the Merger Sub would be merged with and into FSP Satellite with FSP Satellite as the surviving entity, but renamed MacKenzie Satellite Place Corp. (“MacKenzie Satellite”). On June 1, 2022, the merger closed, and MacKenzie Satellite became a wholly owned subsidiary of us, which in turn owns the Satellite Place building, a six-story Class “A” suburban office building containing approximately 134,785 rentable square feet of space located on approximately 10 acres of land in Duluth, GA. The former shareholders of FSP Satellite received cash or shares of the Company, based upon their election. All former shareholders of FSP Satellite holders elected to be paid in cash with the exception of two shareholders who elected to receive common and preferred stocks in the amount of $27,503 and $13,752, respectively. Subsequent to the completion of the merger, we have consolidated the financial statements of MacKenzie Satellite effective June 30, 2022. On May 6, 2022, the Operating Partnership purchased 100% of the membership interests in eight limited liability companies (“Management Companies”) and one parcel of entitled land from The Wiseman Company, LLC (“Wiseman”) for $18,333,000 and $3,050,000, respectively. The limited liability companies own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, or Woodland, California (the “Wiseman Properties”). Each Management Company is the sole general partner of each of the limited partnerships. The membership interest purchase price is subject to adjustments and holdbacks as provided in the membership interest purchase agreement. As part of the purchase agreement, $4,650,000 of the purchase price was paid through the issuance of 206,666.67 Preferred Units of the Operating Partnership and $750,000 of the land purchase price was paid through the issuance of 77,881.62 Class A units of the Operating Partnership. Further details of this acquisition are discussed in Note 5. We have consolidated the financial statements of the eight limited liability companies, which hold the general partnership interests in the limited partnerships, effective June 30, 2022. Wiseman is a full-service real estate syndicator, developer, broker, and property manager. It was founded in 1979 and served as the general partner for nine currently active partnerships owning the Wiseman Properties. Concurrently with acquiring the general partnership interests in the Wiseman Properties, the Operating Partnership also negotiated the right to acquire the limited partnership interest in each Wiseman Property at pre-determined prices over the following two years. Management believes this transaction is strategically important as it focuses the portfolio on our desired geographic area (Western United States) and creates a captive pipeline of properties which we can acquire when convenient over the next two years. On July 29, 2022, in addition to the general partnership interest in First & Main, LP (“First & Main”), the Operating Partnership completed the acquisition of 100% of the limited partnership interest in First & Main for total purchase price of $3,376,322, of which $2,711,378 was paid through issuance of 120,505.66 Preferred Units of the Operating Partnership. After the acquisition of the limited partnership interest, we consolidated the financial statements of First & Main during the quarter ended September 30, 2022. We are externally managed by MacKenzie Capital Management, LP (“MacKenzie”) under the administration agreement dated and effective as of February 28, 2013 (the “Administration Agreement”). MacKenzie manages all of our affairs except for providing investment advice. MCM Advisers, LP (the “Investment Adviser”) advises us in our assessment, acquisition, and divestiture of securities under the advisory agreement amended and restated effective January 1, 2021 (the “Amended and Restated Investment Advisory Agreement”). MacKenzie Real Estate Advisers, LP (the “Real Estate Adviser”; together, the “Investment Adviser” and the “Real Estate Adviser” may be referred to as “Adviser” or “Advisers” as appropriate) advises us in our assessment, acquisition, and divestiture of real estate assets. We pursue a strategy focused on investing primarily in real estate assets, and to a lesser extent (intended to be less than 20% of our portfolio) in illiquid or non-traded debt and equity securities issued by U.S. companies generally owning commercial real estate. These companies are likely to be non-traded REITs, small-capitalization publicly traded REITs, public and private real estate limited partnerships, and limited liability companies. As of September 30, 2022, we have raised approximately $147.42 million, including proceeds from our dividend reinvestment plan (“DRIP”) of approximately $12.94 million. Of the shares issued by us in exchange for the total capital raised as of September 30, 2022, approximately $12.03 million worth of shares have been repurchased under our share repurchase program. We have raised $7.99 million pursuant to the Offering Circular as of September 30, 2022. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Policy The accompanying consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X. We follow the accounting principles generally accepted in the United States of America (“GAAP”) and includes the accounts of our wholly owned consolidated subsidiaries and majority-owned controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of our results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2022, included in our annual report on Form 10-K filed with the SEC. Certain prior period information has been reclassified to conform to the prior year end presentation. The reclassification has no effect on our consolidated balance sheet or the consolidated statement of operations as previously reported. There have been no changes in the significant accounting policies from those disclosed in the audited financial statements for the year ended June 30, 2022, other than those expanded upon and described herein. Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported asset values, liabilities, revenues, expenses and unrealized gains (losses) on investments during the reporting period. Material estimates that are susceptible to change, and actual results could differ from those estimates. Cash and Restricted Cash Our cash represents balances held in current bank accounts and restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders, and cash pledged as collateral for securities sold short. These balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At times, the cash balances held in financial institutions by us may exceed these insured limits. Restricted cash is subject to a legal or contractual restrictions as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. We consider cash pledged as collateral for securities sold short to be restricted cash. Investments Income Receivable Investment income represent dividends, distributions, and sales proceeds recognized in accordance with our revenue recognition policy but not yet received as of the date of the consolidated financial statements. The amounts are generally fully collectible as they are recognized based on completed transactions. We monitor and adjust our receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. We have determined that all investments income receivable balances outstanding as of September 30, 2022 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. Rents and Other Receivables We will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. We exercise judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. We have determined that all rent receivable balances outstanding as of September 30, 2022 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. Capital Pending Acceptance We conduct closings for new purchases of our common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon our acceptance. Any gross proceeds received from subscriptions which are not accepted as of the period-end are classified as capital pending acceptance in the consolidated balance sheets. As of September 30, 2022 and June 30, 2022, capital pending acceptance was $235,000 and $85,000, respectively. Income Taxes and Deferred Tax Liability The Parent Company has elected to be treated as a REIT for tax purposes under the Code and as a REIT, is not subject to federal income taxes on amounts that it distributes to the stockholders, provided that, on an annual basis, it distributes at least 90% of its REIT taxable income to the stockholders and meets certain other conditions. To the extent that it satisfies the annual distribution requirement but distributes less than 100% of its taxable income, it is either subject to U.S. federal corporate income tax on its undistributed taxable income or 4% excise tax on catch-up distributions paid in the subsequent year. The Parent Company satisfied the annual dividend payment and other REIT requirements for the tax year ended December 31, 2021. Therefore, it did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2021. Similarly, for the tax year 2022, we believe the Parent Company paid the requisite amounts of dividends during the year and met other REIT requirements such that it will not owe any income taxes. Therefore, the Parent Company did not record any income tax provisions during any fiscal periods within the tax year 2022. TRS, MacKenzie NY 2 and MacKenzie Satellite are subject to corporate federal and state income tax on their taxable income at regular statutory rates. However, as of September 30, 2022, they did not have any taxable income for tax years 2021 or 2022. Therefore, TRS, MacKenzie NY 2 and MacKenzie Satellite did not record any income tax provisions during any fiscal period within the tax year 2021 and 2022. The Operating Partnership is a limited partnership and its subsidiaries; Addison Property Owner, LLC (the “Addison Property Owner”), Hollywood Hillview Owner, LLC (“Hollywood Hillview”), MacKenzie BAA IG Shoreline LLC (“MacKenzie Shoreline”) and First & Main, LP (“First & Main”) are limited liability companies. Madison and PVT are also limited liability companies. Accordingly, all income tax liabilities of these entities flow through to their partners, which ultimately is the Company. Therefore, no income tax provisions are recorded for these entities. The Company and its subsidiaries follow ASC 740, Income Taxes (“ASC 740”), to account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax liabilities attributable to the net unrealized investment gain (losses) on existing investments. In estimating future tax consequences, we consider all future events, other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 provides guidance for recognizing, measuring, presenting, and disclosing uncertain tax positions in the financial statements. As of September 30, 2022 and June 30, 2022, there were no uncertain tax positions. Management’s determinations regarding ASC 740 are subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated statements of assets and liabilities but before the date the consolidated financial statements are available to be issued. Subsequent events that provide additional evidence about conditions that existed at the date of the consolidated statements of assets and liabilities are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated statements of assets and liabilities that do not provide evidence about the conditions that existed as of the date of the consolidated statements of net assets are considered for disclosure based upon their significance in relation to our consolidated financial statements taken as a whole. Fair Value of Financial Instruments Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. We believe that the carrying amounts of our financial instruments, consisting of cash, restricted cash, investments income, rent and other receivables, prepaid expenses and other assets, mortgage notes payable, accounts payable and accrued liabilities, below-market lease liabilities, net, deferred rent and other liabilities and due to related entities, approximate the fair values of such items based on their nature, terms, and interest rates. Equity Securities We have minority and non-controlling equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. We do not have controlling interests in these entities. Thus, these investments have been recorded as investments in equity securities in accordance with ASC Topic 321, Investments – Equity Securities, and measured at fair value. The changes in the fair value of these investments are recorded in the consolidated statement of operations. Equity Method Investments with Fair Value Option Election We elected the fair value option of accounting for the investments listed below that would have otherwise been recorded under the equity method of accounting. The primary purpose of electing the fair value option was to enhance the transparency of our financial condition. Changes in the fair value of these investments, which are inclusive of equity in income, are recorded in the consolidated statement of operations during the period such changes occur. The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments in the consolidated balance sheets as of September 30, 2022 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of September 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,533,300 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 22,470,804 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 831,880 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,793,222 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 2,918,500 Main Street West, LP Limited Partnership GP Interest 1.00 % * 5,047,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 686,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,321,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,874,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,583,026 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,803,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,696,840 * Represents 1% general partner interests in the partnerships, which are also entitled to profit sharing distributions ranging from 25% to 50%. Unconsolidated Investments (Non-security) at Fair Value These are equity method investments that do not meet the consolidation requirements under ASC 810. Under the 1940 Act, these investments are considered “voting securities” as opposed to “investment securities”. Therefore, we listed these equity method investments separately from rest of the equity method investments at fair value in the consolidated balance sheets. As of September 30, 2022, our investments in 1300 Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center II, LP are considered to be voting securities under the 1940 Act. As of June 30, 2022, our investments in 1300 Main, LP, First & Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center II, LP were considered to be voting securities under the 1940 Act. Therefore, these investments were shown as unconsolidated investments (non-security), at fair value in the consolidated balance sheets. For GAAP purposes, these investments have been recorded under the equity method investments, for which we have elected the fair value option as discussed above. Contingent Consideration in an Asset Acquisition Contingent consideration recognized is included in the initial cost of the assets acquired. Subsequent changes in the recorded amount of contingent consideration will generally be recognized as an adjustment to the cost basis of the acquired assets, in accordance with ASC 323-10-35-14a and ASC 360-10-30-1. The subsequent changes will be allocated to the acquired assets based on their relative fair value at the date of acquisition. Subsequent change in contingent consideration impacts the cost basis of acquired assets, which may also impact the income statement through subsequent accounting for the acquired asset. We are aware of diversity in practice regarding the subsequent treatment of the income statement effect of changes to the cost basis of the acquired assets. We generally believe the depreciation or amortization of these assets should be recognized as a cumulative “catch up” adjustment, as if the additional amount of consideration that is no longer contingent had been accrued from the outset of the arrangement. Impairment of Real Estate Assets We continually monitor events and changes in circumstances that could indicate that the carrying value of our real estate and related intangible assets may not be recoverable. When indicators of potential impairment emerge, we assess whether we will recover the carrying value of the asset through our undiscounted future cash flows and our eventual disposition. Based on this assessment, if we do not believe that it will recover the carrying value of the real estate and related intangible assets, we will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets. No impairment charges on assets held for use were recorded for the period ended September 30, 2022. Impairment charges on held for sale are discussed in Note 5. Reportable Segments ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have one reportable segment, income-producing real estate properties, which consists of activities related to investing in real estate. The real estate properties are geographically diversified throughout the United States, and we evaluate operating performance on an overall portfolio level. |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 3 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS IN REAL ESTATE [Abstract] | |
INVESTMENTS IN REAL ESTATE | NOTE 3 – INVESTMENTS IN REAL ESTATE The following tables provide summary information regarding our operating properties which are owned through our subsidiaries: Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Hollywood Property Property Owner: Addison Property Owner, LLC Madison-PVT Partners LLC PVT-Madison Partners LLC PT Hillview GP, LLC Location: Windsor, CT Oakland, CA Oakland, CA Hollywood, CA Number of Tenants: 6 48 39 42 Year Built: 1980 1912 1929 1917 Ownership Interest: 100% 100% 100% 100% Property Name: Shoreline Apartments Satellite Place First & Main Office Building Property Owner: MacKenzie BAA IG Shoreline LLC MacKenzie Satellite Place Corp. First & Main, LP Location: Concord, CA Duluth, GA Napa, CA Number of Tenants: 74 1 8 Year Built: 1968 2002 2001 Ownership Interest: 100% 100% 100% The following table presents the allocation of real estate assets acquired during the three months ended September 30, 2022 based on asset acquisition accounting. Property Name: First & Main Office Building Acquisition Date: July 23, 2022 Purchase Price Allocation Land $ 966,315 Building 15,597,370 Site Improvements 795,197 Tenant Improvements 524,399 Lease in Place 796,341 Leasing Commissions 347,204 Legal & Marketing Lease Up Costs 52,007 Total assets acquired 19,078,833 Net leasehold asset (liability) (220,100 ) Total assets acquired, net $ 18,858,733 The total depreciation expense of our operating properties for the three months ended September 30, 2022 and 2021 was $706,262 and $602,120, respectively. Operating Leases: Our real estate assets are leased to tenants under operating leases that contain varying terms and expirations. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. We retain substantially all the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, we do not require a security deposit from tenants on our commercial real estate properties, depending upon the terms of the respective leases and the creditworthiness of the tenants. Even when required, security deposits generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of the security deposit. Security deposits received in cash related to tenant leases are included in other accrued liabilities in the accompanying consolidated balance sheets and were immaterial as of September 30, 2022 and June 30, 2022. The following table presents the components of income from real estate operations for the three months ended September 30, 2022 and 2021: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Lease Income - Operating leases $ 2,744,083 $ 2,270,918 Variable lease income (1) 324,420 451,664 $ 3,068,503 $ 2,722,582 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. As of September 30, 2022, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows: Year ended June 30, : Rental Income 2023 $ 2,887,900 2024 2,247,670 2025 2,196,839 2026 2,227,955 2027 2,287,805 Thereafter 9,768,710 Total $ 21,616,879 Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net As of September 30, 2022, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 4,103,856 $ 99,460 $ 1,774,877 Accumulated amortization (788,229 ) (3,980 ) (489,462 ) Total $ 3,315,627 $ 95,480 $ 1,285,415 Weighted average amortization period (years) 5.0 6.5 5.9 As of June 30, 2022, our acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 2,889,828 $ - $ 1,455,317 Accumulated amortization (586,168 ) - (391,738 ) Total $ 2,303,660 $ - $ 1,063,579 Weighted average amortization period (years) 5.2 - 4.9 Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the three months ended September 30, 2022 and 2021, were as follows: Three Months Ended September 30, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 202,062 $ 3,980 $ (97,724 ) Three Months Ended September 30, 2021 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 366,808 $ 31,976 $ (74,355 ) The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for the next five years: Year Ended June 30, : 2023 (remainder) 2024 2025 2026 2027 Thereafter In-place leases, to be included in amortization $ 599,248 $ 557,278 $ 539,968 $ 484,340 $ 288,613 $ 846,180 Above-market lease intangibles $ 15,640 $ 20,853 $ 12,759 $ 9,137 $ 9,137 $ 27,954 Below-market lease liabilities (299,494 ) (351,135 ) (198,763 ) (128,202 ) (91,888 ) (215,933 ) $ (283,854 ) $ (330,282 ) $ (186,004 ) $ (119,065 ) $ (82,751 ) $ (187,979 ) |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | NOTE 4 – INVESTMENTS The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of September 30, 2022 and June 30, 2022: Fair Value Fair Value Asset Type September 30, 2022 June 30, 2022 Non Traded Companies $ 9,742,068 $ 11,517,226 GP Interests (Equity method investment with fair value option election) 16,640,222 18,333,000 LP Interests 332,749 330,000 LP Interests (Equity method investment with fair value option election) 28,942,804 27,363,840 Investment Trust 75,213 49,178 Total $ 55,733,056 $ 57,593,244 Our above total investments at fair value are disclosed in two separate lines as investments and unconsolidated investments (non-securities) in the consolidated balance sheets as of September 30, 2022 and June 30, 2022. The following table presents fair value measurements of our investments as of September 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 9,742,068 $ - $ - $ 9,742,068 GP Interests 16,640,222 - - 16,640,222 LP Interests 29,275,553 - - 29,275,553 Investment Trust 75,213 - - 75,213 Total $ 55,733,056 $ - $ - $ 55,733,056 The following table presents fair value measurements of our investments as of June 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 11,517,226 $ - $ - $ 11,517,226 GP Interests 18,333,000 - - 18,333,000 LP Interests 27,693,840 - - 27,693,840 Investment Trust 49,178 - - 49,178 Total $ 57,593,244 $ - $ - $ 57,593,244 The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the three months ended September 30, 2022: Balance at July 1, 2022 $ 57,593,244 Purchases of investments 105,562 Transfers to Level I (30,753 ) Transfer to Investment in Real Estate (2,221,001 ) Proceeds from sales, net (2,043,386 ) Return of capital distributions (1,017,016 ) Net realized gains 507,858 Net unrealized gains 2,838,548 Ending balance at September 30, 2022 $ 55,733,056 The transfer of $30,753 of investments from Level III to Level I category during the three months ended September 30, 2022 resulted from one of our investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the period. For the three months ended September 30, 2022, changes in unrealized gains, net included in earnings relating to Level III investments still held at September 30, 2022 were $3,206,722. The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the three months ended September 30, 2021: Balance at July 1, 2021 $ 70,340,043 Purchases of investments 108,063 Transfers to Level I (229,621 ) Proceeds from sales, net (7,114,606 ) Return of capital distributions (3,931,141 ) Net realized gains 531,643 Net unrealized gains 3,156,105 Ending balance at September 30, 2021 $ 62,860,486 The transfers of $229,621 from Level III to Level I category during the three months ended September 30, 2021 resulted from one of our investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the period. For the three months ended September 30, 2021, changes in unrealized gains, net included in earnings relating to Level III investments still held at September 30, 2021 were $3,507,240. The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at September 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 732 Estimated Liquidation Value Sponsor provided value 66.0% Non Traded Companies 9,741,336 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 14,847,000 Direct Capitalization Method Capitalization rate 6.0% - 6.5% 6.3% Discount rate 6.3% - 7.0% 6.7% GP Interest 1,793,222 Market Activity Contracted purchase of property LP Interests 1,866,049 Direct Capitalization Method Capitalization rate 4.8% - 5.8% 4.9% Liquidity discount 30.0% LP Interests 4,931,880 Discounted Cash Flow Discount rate 6.0% - 9.0% 8.5% LP Interest 6,820 Estimated Liquidation Value Sponsor provided value 12% LP Interest 22,470,804 Market Activity Contracted sale of property Investment Trust 75,213 Estimated Liquidation Value Liquidity discount 5.0% Contract negotiations $ 55,733,056 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 1,011,081 Estimated Liquidation Value Sponsor provided value Liquidity discount 25.0% - 75.0% 25.0% Non Traded Companies 10,506,145 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 18,333,000 Market Activity Contracted purchase price LP Interests 21,550,730 Direct Capitalization Method Capitalization rate 4.0% - 5.0% 4.2% Liquidity discount 15.0% LP Interests 5,806,290 Discounted Cash Flow Discount rate 6.3% - 9.0% 8.6% LP Interests 6,820 Estimated Liquidation Value Sponsor provided value Liquidity discount 12% LP Interest 330,000 Market Activity Secondary market industry publication Investment Trust 49,178 Direct Capitalization Method Capitalization rate 5.0% Liquidity discount 15.0% $ 57,593,244 Impact of COVID-19 Pandemic The COVID-19 pandemic and related changes in tenant behavior have adversely impacted the fair value of our investments as of September 30, 2022 and June 30, 2022, and the values assigned as of this date may differ materially from the values that we may ultimately realize with respect to our investments. The impact of the COVID-19 pandemic may not yet be fully reflected in the valuation of our investments as our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that is often from a time period earlier, generally two to three months, than the quarter for which we are reporting. Additionally, we may not have yet received information or certifications from our portfolio companies that indicate any or the full extent of declining performance or non-compliance with debt covenants, as applicable, as a result of the COVID-19 pandemic. As a result, our valuations at September 30, 2022 and June 30, 2022, may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. Accordingly, we may continue to incur additional net unrealized losses or may incur realized losses subsequent to September 30, 2022, which could have a material adverse effect on our business, financial condition and results of operations. Summarized Financial Statements for Equity Method Investments (Fair Value Option) Our investments in securities are generally in small and mid-sized companies in a variety of industries. In accordance with the Rule 8-03(b)(3) of Regulation S-X applicable for smaller reporting companies, we must determine which of our equity method investments measured at fair value under the Fair Value Option are considered “significant”, if any. Regulation S-X mandates the use of three different tests to determine if any of our investments are considered significant investments: the investment test, the asset test, and the income test. The rule requires summarized financial statements for any significant equity method investments in an annual and interim report if any of the three tests exceed 20%. In addition to the SEC rules, ASC 323-10-50-3(c) requires summarized financial statements of our equity method investments, including those reported under the fair value option, if they are material individually or in aggregate. Our investment in Dimension 28, LLP, Main Street West, LP and Citrus Park Hotel Holdings, LLC were determined to be significant under the income test as of September 30, 2022. In addition, our equity method investments accounted under the fair value option were material in aggregate as of September 30, 2022. The summarized financial information of Dimension 28, LLP, Main Street West, LP, Citrus Park Hotel Holdings, LLC and aggregated summarized financial information of all equity method investees as of September 30, 2022 is as follows: Dimension 28, LLP Main Street West, LP Citrus Park Hotel Holdings, LLC All Equity Method Total Assets $ 18,617,127 $ 10,440,184 $ 11,983,313 $ 131,830,402 Total Liabilities $ 13,820,180 $ 22,319,349 $ 1,774,469 $ 126,510,471 Total Equities $ 4,796,947 $ (11,879,165 ) $ 10,208,843 $ 5,319,930 Total Revenues $ 2,452,687 $ 1,604,863 $ 3,891,488 $ 16,355,254 Total Expenses $ 2,872,954 $ 968,077 $ 3,244,696 $ 13,445,511 Total Net Income (Loss) $ (420,267 ) $ 636,786 $ 646,792 $ 2,909,743 Unconsolidated Significant Subsidiaries In accordance with SEC Rules 3-09 and 4-08(g) of Regulation S-X, we must determine which of our investments in securities are considered “significant subsidiaries”, if any. Regulation S-X mandates the use of three different tests to determine if any of our controlled investments are significant subsidiaries: the investment test, the asset test, and the income test. Rule 3-09 of Regulation S-X requires separate audited financial statements for any unconsolidated majority-owned subsidiary in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. As of September 30, 2022 and June 30, 2022, none of our investments in securities was considered an unconsolidated significant subsidiary under the SEC rules described above. |
ACQUISITIONS AND HELD FOR SALE
ACQUISITIONS AND HELD FOR SALE | 3 Months Ended |
Sep. 30, 2022 | |
ACQUISITIONS AND HELD FOR SALE [Abstract] | |
ACQUISITIONS AND HELD FOR SALE | NOTE 5 – ACQUISITIONS AND HELD FOR SALE Acquisition of General Partnership Interests As discussed in Note 1, in May 6, 2022 the Operating Partnership purchased 100% of the membership interests in the eight Management Companies that own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, Suisun City or Woodland, California. Each Management Company is the sole general partner of each of the limited partnerships as disclosed in the following table: General Partnership Interests Management Companies Total Purchase Price 1300 Main, LP 1300 Main, LLC $ 1,688,000 First & Main, LP First & Main, LLC 2,237,000 Green Valley Medical Center, LP Green Valley Medical Center, LLC 3,010,000 Main Street West, LP Main Street West, LLC 4,708,000 Martin Plaza Associates, LP Martin Plaza, LLC 725,000 One Harbor Center, LP One Harbor Center, LLC 4,162,000 Westside Professional Center I, LP Westside Professional Center, LLC 1,803,000 Woodland Corporate Center II, LP Woodland Corporate Center, LLC - Total $ 18,333,000 The acquisition of general partnership interests was made in exchange for cash, preferred units in the Operating Partnership, and, in some cases, a contingent liability as shown below: General Partnership Interests Number of Preferred Units issued Amount of Preferred Units issued Cash Payments Contingent Liability Total Purchase Price 1300 Main, LP - $ - $ 1,688,000 $ - $ 1,688,000 First & Main, LP 99,422.22 2,237,000 - - 2,237,000 Green Valley Medical Center, LP - - 2,410,000 600,000 3,010,000 Main Street West, LP - - 3,850,000 858,000 4,708,000 Martin Plaza Associates, LP 26,977.78 607,000 - 118,000 725,000 One Harbor Center, LP 80,266.67 1,806,000 1,571,000 785,000 4,162,000 Westside Professional Center I, LP - - 1,449,000 354,000 1,803,000 Woodland Corporate Center II, LP - - - - - Total 206,666.67 $ 4,650,000 $ 10,968,000 $ 2,715,000 $ 18,333,000 The Operating Partnership’s preferred units are issued with a $25 liquidation preference, but because Wiseman agreed to a 4-year “lock-up” we agreed to a discounted issuance price of $22.50 per unit. As discussed in Note 1, in July 2022, in addition to the general partnership interest, the Operating Partnership completed the acquisition of 100% of the limited partnership interest in First & Main for total purchase price of $3,376,322, of which $2,711,378 was paid through issuance of 120,505.66 Preferred Units of the Operating Partnership. Therefore, after the acquisition of the limited partnership interest, we consolidated the financial statements of First & Main during the quarter ended September 30, 2022. Contingent Consideration As discussed in our June 30, 2022 financial statements, pursuant to the membership interest purchase agreement, the purchase price paid at closing for the general partnership interests was reduced by 20% as of the closing date for the property companies that had not received fully executed and in force leases, the annualized scheduled rents of which are equal to or greater than the target scheduled rent as stated in the membership interest purchase agreement. This 20% holdback will be paid upon a property company reaching the stabilization threshold, reduced by stabilization costs, as defined in the membership interest purchase agreement. Management believes that it is probable that the stabilization thresholds will be reached for each of the property companies that did not meet this threshold at the acquisition date. Hence, the 20% holdback was considered as a contingent liability in the consolidated balance sheet as of September 30, 2022. As of September 30, 2022 and June 30, 2022, contingent liability amounted to $1,857,000 and $2,715,000, respectively. Debt Guaranty The property companies have mortgage loans with various banks and the loans are guaranteed by Wiseman and its owner, Doyle Wiseman and his trust. The mortgage loans of 1300 Main, LP, One Harbor Center, LP, Martin Plaza Associates, LP, and Main Street West, LP are also guaranteed by the partnership’s general partner as the co-guarantor. On July 1, 2022, subsequent to Operating Partnership’s acquisition of the management companies, Wiseman’s owner, Doyle Wiseman and the Operating Partnership entered into an indemnity agreement whereby the Operating Partnership will indemnify Doyle Wiseman for any losses suffered by him through the default of a limited partnership on the mortgage secured by the property owned by the limited partnership. Historically, none of the limited partnerships has had any defaults on any mortgages and Doyle Wiseman has not had to satisfy any mortgage default through a guaranty. Furthermore, each of the limited partnerships is adequately capitalized, has sufficient cash flow from operations to service the mortgage notes and has not required Doyle Wiseman to provide any subordinated financial support to the limited partnerships. Therefore, we have not recorded any liability related to the guaranty on the mortgage loans as of September 30, 2022. Assets and Liabilities Held for Sale On June 28, 2022, the Addison Property Owner entered into a forbearance agreement for the sale of Addison Corporate Center with the lender of the note payable discussed in Note 9. As a result, the Addison Property Owner’s operations met the criteria to be classified as held for sale, which requires us to present the related assets and liabilities as separate line items in our consolidated balance sheets. We recorded these assets and liabilities at fair value less any costs to sell. Therefore, we recorded an impairment loss allowance of $9,126,461 on assets held for sale as of June 30, 2022. No additional impairment loss allowance was deemed necessary as of September 30, 2022. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets: September 30, 2022 June 30, 2022 Assets Real estate assets Land $ 6,456,615 $ 6,456,615 Building, fixtures and improvements 19,108,041 19,108,041 Intangible lease assets 5,225,719 5,154,568 Less: accumulated depreciation and amortization (5,112,309 ) (5,112,309 ) Total real estate assets, net 25,678,066 25,606,915 Cash 311,169 505,186 Investments income, rents and other receivables 665,759 490,239 Due from related entities - 401 Prepaid expenses and other assets 34,778 14,301 Allowance for impairment of assets held for sale (9,126,461 ) (9,126,461 ) Total assets $ 17,563,311 $ 17,490,581 Liabilities Deferred rent and other liabilities $ 518,259 $ 410,908 Accounts payable and accrued liabilities 751,109 334,081 Total liabilities $ 1,269,368 $ 744,989 We determined that the operations included in the table above did not meet the criteria to be classified as discontinued operations under the applicable guidance. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Sep. 30, 2022 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 6 – VARIABLE INTEREST ENTITIES A variable interest in a variable interest entity (VIE) is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive portions of the VIE’s expected residual returns. Our variable interests in VIEs include limited partnership interests. VIEs sometimes finance the purchase of assets by issuing limited partnership interests that are either collateralized by or indexed to the assets held by the VIE. The enterprise with a controlling financial interest in a VIE is known as the primary beneficiary and consolidates the VIE. We determine whether we are the primary beneficiary of a VIE by performing an analysis that principally considers: (a) which variable interest holder has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance; (b) which variable interest holder has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE; (c) the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders; (d) the VIE’s capital structure; (e) the terms between the VIE and its variable interest holders and other parties involved with the VIE; and (f) related-party relationships. We reassess our evaluation of whether an entity is a VIE when certain reconsideration events occur. We reassess our determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances. Nonconsolidated VIEs As of September 30, 2022 and June 30, 2022, six and seven of our unconsolidated VIEs, respectively, include interests in limited partnerships and limited liability companies. We have determined that it is not the primary beneficiary of these entities because the managing partner or member of each of these entities has the power to direct the activities that most significantly affect the VIE’s economic performance. Accordingly, these VIEs have not been consolidated with us, and they have been reported as investments at fair value in the September 30, 2022 and June 30, 2022, consolidated balance sheets. The table below presents a summary of the nonconsolidated VIEs in which we hold variable interests: Total Nonconsolidated VIEs As of September 30, 2022 As of June 30, 2022 Fair value of investments in VIEs $ 29,275,553 $ 27,693,840 Carrying value of variable interests - assets $ 19,818,459 $ 19,304,856 Maximum Exposure to Loss: Limited Partnership Interest $ 19,818,459 $ 19,304,856 Our exposure to the obligations of VIEs is generally limited to the carrying value of the limited partnership interests in these entities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS Advisory Agreements Effective January 1, 2021 As discussed in Note 1, on January 26, 2021, our Board of Directors approved, effective January 1, 2021, two advisory agreements, an Advisory Management Agreement with the Real Estate Adviser and the Amended and Restated Investment Advisory Agreement with the Investment Adviser. The terms of the Advisory Management Agreement with the Real Estate Adviser provide that we will continue to pay an Asset Management Fee on essentially the same terms as we were paying the Investment Adviser prior to 2021, namely based upon a percentage of Invested Capital (3% of the first $20 million, 2% of the next $80 million, and 1.5% over $100 million). Invested Capital is equal to the amount calculated by multiplying the total number of outstanding shares, preferred shares, and the partnership units (units in our operating partnership issued by us and held by persons other than us) The Investment Adviser will receive an annual fee equal to $100 for providing the investment advice to us as to our securities portfolio under the Amended and Restated Investment Advisory Agreement. During the three months ended September 30, 2022 and 2021, we incurred asset management fees of $716,267 and $676,552, respectively. The asset management fees mentioned above were based on the following quarter ended Invested Capital segregated in three columns based on the annual fee rate: Asset Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital Quarter ended: September 30, 2022 $ 20,000,000 $ 80,000,000 $ 48,639,649 $ 148,639,649 Quarter ended: September 30, 2021 $ 20,000,000 $ 80,000,000 $ 33,927,634 $ 133,927,634 During the three months ended September 30, 2022 and 2021, we did not incur or accrue any incentive management fee under the new Advisory Management Agreement. Property Management and Leasing Services: On May 6, 2022, the Real Estate Adviser’s newly formed wholly owned subsidiary, Wiseman Company Management, LLC, purchased the property management and leasing services rights from Wiseman. Therefore, effective the acquisition date, Wiseman Company Management has been providing the property management and leasing services to the eight property limited partnerships in accordance with the pre-existing agreements. There have been no changes to any of the management services agreements terms with the property limited partnerships since the acquisition of the property management service rights. Organization and Offering Costs Reimbursement: As provided in the Offering Circular, offering costs incurred and paid by us in excess of $550,000 in connection with the offering will be reimbursed by the Adviser except to the extent that 10% in broker fees are not incurred. In such case, the broker savings were available to be paid by us for marketing expenses or other non-cash compensation. As of September 30, 2022, we incurred $829,454 of offering costs on our Offering Circular to sell the preferred stock, of which $599,499 relates to syndication cost paid by Mackenzie on behalf of us in connection with the preferred stock offering. As of June 30, 2022, we incurred $600,130 of offering costs on our Offering Circular to sell the preferred stock, of which $501,917 relates to syndication cost paid by Mackenzie on behalf of us in connection with the preferred stock offering. The total offering costs incurred as of September 30, 2022 and June 30, 2022, were in excess of the total offering cost reimbursement threshold including the broker savings by $229,955 and $21,841, respectively. The cumulative offering costs in excess of the reimbursable threshold as of September 30, 2022 will be reimbursed by the Adviser during the quarter ending December 31, 2022. The excess amounts reimbursable from the Adviser as of September 30, 2022 and June 30, 2022, were netted against due to related entities in the consolidated balance sheets. Administration Agreement: Under the Administration Agreement, we reimburse MacKenzie for its allocable portion of overhead and other expenses it incurs in performing its obligations under the Administration Agreement, including furnishing us with office facilities, equipment and clerical, bookkeeping and record keeping services at such facilities, as well as providing us with other administrative services, subject to the independent directors’ approval. In addition, we reimburse MacKenzie for the fees and expenses associated with performing compliance functions, and its allocable portion of the compensation of our Chief Financial Officer, Chief Compliance Officer, Director of Accounting and Financial Reporting, and any administrative support staff. Effective November 1, 2018, transfer agent services are also provided by MacKenzie and the costs incurred by MacKenzie in providing the services are reimbursed by us. No fee (only cost reimbursement) is being paid by us to MacKenzie for this service. The administrative cost reimbursements for the three months ended September 30, 2022 and 2021, were $181,500 and $152,400, respectively. Transfer agent services cost reimbursement for the three months ended September 30, 2022 and 2021, were $23,000 and $26,601, respectively. The table below outlines the related party expenses incurred for the three months ended September 30, 2022 and 2021, and unpaid as of September 30, 2022, and June 30, 2022 Three Months Ended Unpaid as of Types and Recipient September 30, 2022 September 30, 2021 September 30, 2022 June 30, 2022 Asset management fees- the Real Estate Adviser $ 716,267 $ 676,552 $ - $ - Asset acquisition fees- the Real Estate Adviser (3) 460,400 - - - Administrative cost reimbursements- MacKenzie 181,500 152,400 - - Transfer agent cost reimbursements - MacKenzie 23,000 26,601 - - Organization & Offering Cost (2) 20,895 - 109,390 141,397 Other expenses (1) - - 29,066 72,697 Due to related entities $ 138,456 $ 214,094 (1) Expenses paid by MacKenzie and General Partner of a subsidiary on behalf of us and subsidiary. (2) Offering costs paid by MacKenzie - discussed in this Note under organization and offering costs reimbursements. (3) Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the three months ended September 30, 2022 was for the acquisition of First & Main in July 2022. Affiliated Investments Coastal Realty Business Trust (“CRBT”): CRBT is a Nevada business trust whose trustee is MacKenzie. Each series of the trust has its own beneficiaries and own assets. We own two series of CRBT and is the only beneficiary of such series. Under the terms of the agreement, there are no redemption rights to any of the series participants. We and TRS are the sole beneficiaries of the following series as of September 30, 2022, and June 30, 2022: • CRBT, REEP, Inc.– A, which has an ownership interest in one of three general partners of a limited partnership which owns one multi-family property located in Frederick, Maryland. |
MARGIN LOANS
MARGIN LOANS | 3 Months Ended |
Sep. 30, 2022 | |
MARGIN LOANS [Abstract] | |
MARGIN LOANS | NOTE 8 – MARGIN LOANS We have a brokerage account through which it buys and sells publicly traded securities. The provisions of the account allow us to borrow on certain securities held in the account and to purchase additional securities based on the account equity (including cash). Amounts borrowed are collateralized by the securities held in the account and bear interest at a negotiated rate payable monthly. Securities pledged to secure margin balances cannot be specifically identified as a portion of all securities held in a brokerage account used as collateral. As of September 30, 2022 and June 30, 2022, we had no margin credit available for cash withdrawal or the ability to purchase in additional securities. Accordingly, as of September 30, 2022 and June 30, 2022, there was no amount outstanding under this short-term credit line. |
MORTGAGE NOTES PAYABLE AND DEBT
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | 3 Months Ended |
Sep. 30, 2022 | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY [Abstract] | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY | NOTE 9 – MORTGAGE NOTES PAYABLE AND DEBT GUARANTY Addison Property Owner Mortgage Note Payable Addison Property Owner is the obligor under a note payable to Wells Fargo Bank, NA (the “Lender”) in the original loan amount of $32,000,000 at an interest rate of LIBOR plus 3.75%. The loan originally matured on November 1, 2019, and is secured by the properties owned by Addison Property Owner. On June 8, 2020, as part of the Contribution Agreement, we agreed to guarantee the loan and the maturity date of the loan was extended to April 30, 2021, with an option to further extend the maturity date to April 30, 2022. In April 2021, we exercised the option and extended the loan maturity date to April 30, 2022. The principal balance of the loan immediately prior to the Loan Modification Agreement was $25,827,107. The new loan principal amount due under the modified agreement was $24,404,257, and the interest rate was modified to be equal to the Federal Funds Rate plus 3.75%. The outstanding loan amounts as of September 30, 2022 and June 30, 2022, were both $19,604,382, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. The loan requires payments only of interest through the maturity date; however, certain provisions of the loan agreement allow the lender to apply excess cash flow during a cash trap period to the principal balance. Under the Loan Modification Agreement and Replacement Guaranty, we guaranteed only the “Recourse Obligations” under the loan, which are triggered only if the guarantor of the loan engages in “Bad Boy Acts” (such as fraud, intentional misrepresentation, willful misconduct, waste, conversion, intentional failure to pay taxes or maintain insurance, filing for bankruptcy, etc.). As of September 30, 2022 and June 30, 2022, we have not recorded any debt guaranty obligation because we have not engaged in inappropriate actions that would give rise to a guaranty obligation. On April 30, 2022, the notes payable matured and Addison Property Owner was unable to extend the loan. On June 28, 2022, Addison Property Owner entered into a forbearance agreement with the Lender. The loan is currently accruing interest at the default rate as per the loan agreement. As of September 30, 2022, Addison Corporate Center is being marketed for sale in accordance with all the conditions set forth in the forbearance agreement. In addition, effective June 28, 2022, on monthly basis the lender will collect all cash revenues from Addison Corporate Center and deduct funds sufficient to satisfy monthly accrued interest at the default rate, any outstanding fees and costs incurred by the lender. The excess cash will be made available to the borrower for the payment of previously approved budgeted operating expenses. Any funds remaining thereafter will be applied towards the unpaid loan principal balance. Madison and PVT Mortgage Notes Payable On February 26, 2021, Madison and PVT obtained mortgage loans from First Republic Bank in the amounts of $6,737,500 and $8,387,500, respectively, both at a fixed interest rate of 3.0% per annum through April 1, 2026. Effective May 1, 2026, interest rates will be the average of the twelve PT Hillview Mortgage Notes Payable On October 4, 2021, PT Hillview entered into a loan agreement with Ladder Capital Finance in the amount of $17,500,000. The annual interest rate shall equal to the greater of (i) a floating rate of interest equal to 5.5% plus LIBOR, and (ii) 5.75%. The loan was obtained to finance the acquisition of Hollywood Property. The loan matures on October 6, 2023 and can be extended for two successive 12 month terms (the “Maturity Date”) and is secured by the Hollywood Property. The loan requires interest-only monthly payments with the principal balance due at maturity date. Interest is due based on a 360-day amortization period.The outstanding balances as of September 30, 2022, and June 30, 2022, was $16,804,689, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. PT Hillview also entered into an interest rate cap agreement on October 4, 2021, as required by the lender. We have not recorded the fair value and the changes in the fair value of the contract in our consolidated financial statements as the amounts were insignificant to our consolidated financial statements. We (along with three other principals of True USA) guaranteed: (1) the “Recourse Obligations” as defined in the loan agreement, which are triggered only if the borrower of the loan engages in “Bad Boy Acts” (such as fraud, intentional misrepresentation, willful misconduct, waste, conversion, intentional failure to pay taxes or maintain insurance, filing for bankruptcy, ADA noncompliance, and environmental contamination, etc.), (2) a “Debt Service and Carry Guaranty” under the loan, which guarantees the payment of interest on the loan and other “Basic Carrying Costs”, and (3) a “Guaranty of Completion” guaranteeing that the redevelopment work contracted to be performed will be completed as agreed. We were comfortable issuing such guarantees because the loan provides for a substantial “Carrying Costs” reserve and for the full funding of the construction contract, which is subject to a guaranteed maximum price. MacKenzie Shoreline Mortgage Note Payable On May 6, 2021, MacKenzie Shoreline entered into a loan agreement with Pacific Premier Bank, in the amount of $17,650,000. The annual interest rate shall be 3.65% for the first 60 months, and a variable interest rate based on a 6-month CME Term Secured Overnight Financing Rate plus a margin of 3.00 percentage points, for months thereafter until maturity. The loan was obtained to finance the acquisition of Shoreline Apartments. The loan matures on June 1, 2032 and is secured by Shoreline Apartments. The loan requires interest only monthly payments through June 30, 2027, and beginning July 1, 2027, monthly payments of principal and interests are due based on 360 months of amortization period. Accordingly, the outstanding loan balance as of September 30, 2022 and June 30, 2022, was $17,650,000, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. First & Main Mortgage Note Payable On January 4, 2021, First & Main entered into a loan agreement with Exchange Bank, in the amount of $12,000,000 at a fixed annual interest rate of 3.75%. The loan was obtained to finance the acquisition of First & Main Office Building. The loan matures on February 1, 2026 and is secured by First & Main Office Building. The loan requires monthly payments of principal and interest based on 25 year amortization period with the remaining principal balance due at maturity. The loan is guaranteed by Wiseman, but subsequently indemnified by the Operating Partnership on July 1, 2022 as discussed in Note 5. The outstanding balance of the loan as of September 30, 2022 was $11,523,657, which is disclosed as a part of the mortgage notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, this mortgage note payable is not included in our consolidated balance sheet as of June 30, 2022. The following table provides the projected principal and interest payments on the loan for the next four years: Year Ended June 30, : Principal Interest 2023 (remainder) $ 235,744 $ 321,131 2024 324,747 417,753 2025 337,136 405,363 2026 10,626,030 230,553 Total $ 11,523,657 $ 1,374,800 First & Main Other Note Payables: Junior Debt In 2018, the First & Main voted to issue $1,000,000 in interest-only junior promissory notes. The notes were issued in 2018 & 2019 with a maturity date of December 31, 2023 and include no prepayment penalty for early retirement. Interest on the notes is payable on the first day of each month at 7% per annum. The promissory notes are disclosed as a part of the notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, these notes are not included in our consolidated balance sheet as of June 30, 2022. First & Main Small Business Administration (“SBA”) Loan In June 2020, First & Main borrowed $151,000 from the SBA, under their Economic Injury Disaster Loan program. The loan will be paid back over 30 years at an annual interest rate of 3.75% starting in December 2022. Monthly payments will be $731. The loan is disclosed as a part of the notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, this loan is not included in our consolidated balance sheet as of June 30, 2022. Solar System Loan In August 2020, First & Main borrowed $220,000 from The Wiseman Family Trust to fund the installation of the solar power system at First & Main Office Building. The loan will be paid back over a period of 10 years at an annual interest rate of 5%. Monthly payments of principal and interest will be $1,486. As of September 30, 2022, the outstanding balance of the loan amounted to $196,426 and is disclosed as a part of the notes payable in the consolidated balance sheet. We consolidated First & Main with our consolidated financial statements during the quarter ended September 30, 2022; accordingly, this loan is not included in our consolidated balance sheet as of June 30, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 10 – EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to potentially diluted securities. The following table sets forth the computation of basic and diluted earnings per share for three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Net income attributable to common stockholders $ 1,166,345 $ 4,923,801 Basic and diluted weighted average common shares outstanding 13,281,069.23 13,333,927.46 Basic and diluted earnings per share $ 0.09 $ 0.37 |
SHARE OFFERINGS AND FEES
SHARE OFFERINGS AND FEES | 3 Months Ended |
Sep. 30, 2022 | |
SHARE OFFERINGS AND FEES [Abstract] | |
SHARE OFFERINGS AND FEES | NOTE 11 – SHARE OFFERINGS AND FEES During the three months ended September 30, 2022, we issued 41,884.51 common shares with total gross proceeds of $386,385 under the DRIP. In September 2022, we issued 169.67 common shares at $10.25 per share, to the Class A unit holders of the Operating Partnership as discussed in Note 1. |
SHARE REPURCHASE PLAN
SHARE REPURCHASE PLAN | 3 Months Ended |
Sep. 30, 2022 | |
SHARE REPURCHASE PLAN [Abstract] | |
SHARE REPURCHASE PLAN | NOTE 12 – SHARE REPURCHASE PLAN During the three months ended September 30, 2022, we repurchased our own shares through our Share Repurchase Program and through third-party auctions as noted in the below table: Period Total Number of Shares Repurchased Average Repurchase Price Per Share Total Repurchase Consideration During the Quarter ended September 30, 2022 September 1, 2022 through September 30, 2022 40,817.06 $ 9.47 $ 386,385 40,817.06 $ 386,385 On May 11, 2020, after assessing the impacts of the COVID-19 pandemic, our Board of Directors suspended our Share Repurchase Program. As a result, we did not repurchase any shares during the three months ended September 30, 2021. We resumed the Share Repurchase Program on March 19, 2021. |
STOCKHOLDER DIVIDENDS
STOCKHOLDER DIVIDENDS | 3 Months Ended |
Sep. 30, 2022 | |
STOCKHOLDER DIVIDENDS [Abstract] | |
STOCKHOLDER DIVIDENDS | NOTE 13 –STOCKHOLDER DIVIDENDS On March 31, 2020, after assessing the impacts of the COVID-19 pandemic, our Board of Directors unanimously approved the suspension of regular quarterly dividends to our stockholders. On May 10, 2021, the Board of Directors resumed the quarterly dividends after reassessing our cash flow. The following table reflects the dividends per share that we have declared on our common stock and preferred stock during the three months ended September 30, 2022: Dividends Common Stock Preferred Stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2022 $ 0.105 $ 1,390,290 $ 0.375 $ 87,884 During the three months ended September 30, 2022, we paid total dividends of $1,361,868, of which $391,214 has been reinvested under our DRIP. Dividends declared during the quarter ended September 30, 2022, were paid in October 2022 Total distributions declared by the Operating Partnership for the Class A unit holders during the three months ended September 30, 2022, was $9,324 (which was $0.10 per unit). Total distributions declared by the Operating Partnership for the preferred unit holders during year ended June 30, 2022 was $107,626 (which was 0.33 per unit). On June 28, 2022, we declared the Series A Preferred stock quarterly dividend of $0.375 per share payable at the rate of $0.125 per month for holders of record as of July 31, 2022, August 31, 2022, and September 30, 2022. Subsequently, on September 6, 2022, we declared the Series A Preferred stock quarterly dividend of $0.375 per share payable at the rate of $0.125 per month for holders of record as of October 31, 2022, November 30, 2022, and December 31, 2022. The preferred stock dividend declared on June 28, 2022, was paid in October 2022 The following table reflects the dividends per share that we have declared on our common stock during the three months ended September 30, 2021: Dividends During the Quarter Ended Per Share Amount September 30, 2021 $ 0.130 * $ 1,731,482 * $0.06 per share dividend was declared for the quarter ended June 30, 2021. During the three months ended September 30, 2021, We paid total dividends of $798,823, of which $243,488 has been reinvested under our DRIP. We did not have any preferred shares outstanding as of September 30, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation and Consolidation Policy | Basis of Presentation and Consolidation Policy The accompanying consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X. We follow the accounting principles generally accepted in the United States of America (“GAAP”) and includes the accounts of our wholly owned consolidated subsidiaries and majority-owned controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of our results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2022, included in our annual report on Form 10-K filed with the SEC. Certain prior period information has been reclassified to conform to the prior year end presentation. The reclassification has no effect on our consolidated balance sheet or the consolidated statement of operations as previously reported. There have been no changes in the significant accounting policies from those disclosed in the audited financial statements for the year ended June 30, 2022, other than those expanded upon and described herein. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported asset values, liabilities, revenues, expenses and unrealized gains (losses) on investments during the reporting period. Material estimates that are susceptible to change, and actual results could differ from those estimates. |
Cash and Restricted Cash | Cash and Restricted Cash Our cash represents balances held in current bank accounts and restricted cash includes escrow accounts for real property taxes, insurance, capital expenditures and tenant improvements, debt service and leasing costs held by lenders, and cash pledged as collateral for securities sold short. These balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to certain limits. At times, the cash balances held in financial institutions by us may exceed these insured limits. Restricted cash is subject to a legal or contractual restrictions as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. We consider cash pledged as collateral for securities sold short to be restricted cash. |
Investments Income Receivable | Investments Income Receivable Investment income represent dividends, distributions, and sales proceeds recognized in accordance with our revenue recognition policy but not yet received as of the date of the consolidated financial statements. The amounts are generally fully collectible as they are recognized based on completed transactions. We monitor and adjust our receivables, and those deemed to be uncollectible are written-off only after all reasonable collection efforts are exhausted. We have determined that all investments income receivable balances outstanding as of September 30, 2022 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. |
Rents and Other Receivables | Rents and Other Receivables We will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. We exercise judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. We have determined that all rent receivable balances outstanding as of September 30, 2022 and June 30, 2022, are collectible and do not require recording any uncollectible allowance. |
Capital Pending Acceptance | Capital Pending Acceptance We conduct closings for new purchases of our common stock twice per month and admits new stockholders effective beginning the first of each month. Subscriptions are effective only upon our acceptance. Any gross proceeds received from subscriptions which are not accepted as of the period-end are classified as capital pending acceptance in the consolidated balance sheets. As of September 30, 2022 and June 30, 2022, capital pending acceptance was $235,000 and $85,000, respectively. |
Income Taxes and Deferred Tax Liability | Income Taxes and Deferred Tax Liability The Parent Company has elected to be treated as a REIT for tax purposes under the Code and as a REIT, is not subject to federal income taxes on amounts that it distributes to the stockholders, provided that, on an annual basis, it distributes at least 90% of its REIT taxable income to the stockholders and meets certain other conditions. To the extent that it satisfies the annual distribution requirement but distributes less than 100% of its taxable income, it is either subject to U.S. federal corporate income tax on its undistributed taxable income or 4% excise tax on catch-up distributions paid in the subsequent year. The Parent Company satisfied the annual dividend payment and other REIT requirements for the tax year ended December 31, 2021. Therefore, it did not incur any tax expense or excise tax on its income from operations during the quarterly periods within the tax year 2021. Similarly, for the tax year 2022, we believe the Parent Company paid the requisite amounts of dividends during the year and met other REIT requirements such that it will not owe any income taxes. Therefore, the Parent Company did not record any income tax provisions during any fiscal periods within the tax year 2022. TRS, MacKenzie NY 2 and MacKenzie Satellite are subject to corporate federal and state income tax on their taxable income at regular statutory rates. However, as of September 30, 2022, they did not have any taxable income for tax years 2021 or 2022. Therefore, TRS, MacKenzie NY 2 and MacKenzie Satellite did not record any income tax provisions during any fiscal period within the tax year 2021 and 2022. The Operating Partnership is a limited partnership and its subsidiaries; Addison Property Owner, LLC (the “Addison Property Owner”), Hollywood Hillview Owner, LLC (“Hollywood Hillview”), MacKenzie BAA IG Shoreline LLC (“MacKenzie Shoreline”) and First & Main, LP (“First & Main”) are limited liability companies. Madison and PVT are also limited liability companies. Accordingly, all income tax liabilities of these entities flow through to their partners, which ultimately is the Company. Therefore, no income tax provisions are recorded for these entities. The Company and its subsidiaries follow ASC 740, Income Taxes (“ASC 740”), to account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax liabilities attributable to the net unrealized investment gain (losses) on existing investments. In estimating future tax consequences, we consider all future events, other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period of enactment. In addition, ASC 740 provides guidance for recognizing, measuring, presenting, and disclosing uncertain tax positions in the financial statements. As of September 30, 2022 and June 30, 2022, there were no uncertain tax positions. Management’s determinations regarding ASC 740 are subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the date of the consolidated statements of assets and liabilities but before the date the consolidated financial statements are available to be issued. Subsequent events that provide additional evidence about conditions that existed at the date of the consolidated statements of assets and liabilities are considered in the preparation of the consolidated financial statements presented herein. Subsequent events that occur after the date of the consolidated statements of assets and liabilities that do not provide evidence about the conditions that existed as of the date of the consolidated statements of net assets are considered for disclosure based upon their significance in relation to our consolidated financial statements taken as a whole. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. We believe that the carrying amounts of our financial instruments, consisting of cash, restricted cash, investments income, rent and other receivables, prepaid expenses and other assets, mortgage notes payable, accounts payable and accrued liabilities, below-market lease liabilities, net, deferred rent and other liabilities and due to related entities, approximate the fair values of such items based on their nature, terms, and interest rates. |
Equity Securities | Equity Securities We have minority and non-controlling equity investments in various limited partnerships and non-traded entities, which do not have readily determinable fair values. We do not have controlling interests in these entities. Thus, these investments have been recorded as investments in equity securities in accordance with ASC Topic 321, Investments – Equity Securities, and measured at fair value. The changes in the fair value of these investments are recorded in the consolidated statement of operations. |
Equity Method Investments with Fair Value Option Election | Equity Method Investments with Fair Value Option Election We elected the fair value option of accounting for the investments listed below that would have otherwise been recorded under the equity method of accounting. The primary purpose of electing the fair value option was to enhance the transparency of our financial condition. Changes in the fair value of these investments, which are inclusive of equity in income, are recorded in the consolidated statement of operations during the period such changes occur. The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments in the consolidated balance sheets as of September 30, 2022 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of September 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,533,300 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 22,470,804 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 831,880 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,793,222 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 2,918,500 Main Street West, LP Limited Partnership GP Interest 1.00 % * 5,047,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 686,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,321,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,874,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,583,026 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,803,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,696,840 * Represents 1% general partner interests in the partnerships, which are also entitled to profit sharing distributions ranging from 25% to 50%. |
Unconsolidated investments (non-securities) at Fair Value | Unconsolidated Investments (Non-security) at Fair Value These are equity method investments that do not meet the consolidation requirements under ASC 810. Under the 1940 Act, these investments are considered “voting securities” as opposed to “investment securities”. Therefore, we listed these equity method investments separately from rest of the equity method investments at fair value in the consolidated balance sheets. As of September 30, 2022, our investments in 1300 Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center II, LP are considered to be voting securities under the 1940 Act. As of June 30, 2022, our investments in 1300 Main, LP, First & Main, LP, Dimensions 28, LLP, Green Valley Medical Center, LP, Main Street West, LP, Martin Plaza Associates, LP, One Harbor Center, LP, Westside Professional Center I, LP and Woodland Corporate Center II, LP were considered to be voting securities under the 1940 Act. Therefore, these investments were shown as unconsolidated investments (non-security), at fair value in the consolidated balance sheets. For GAAP purposes, these investments have been recorded under the equity method investments, for which we have elected the fair value option as discussed above. |
Contingent Consideration in an Asset Acquisition | Contingent Consideration in an Asset Acquisition Contingent consideration recognized is included in the initial cost of the assets acquired. Subsequent changes in the recorded amount of contingent consideration will generally be recognized as an adjustment to the cost basis of the acquired assets, in accordance with ASC 323-10-35-14a and ASC 360-10-30-1. The subsequent changes will be allocated to the acquired assets based on their relative fair value at the date of acquisition. Subsequent change in contingent consideration impacts the cost basis of acquired assets, which may also impact the income statement through subsequent accounting for the acquired asset. We are aware of diversity in practice regarding the subsequent treatment of the income statement effect of changes to the cost basis of the acquired assets. We generally believe the depreciation or amortization of these assets should be recognized as a cumulative “catch up” adjustment, as if the additional amount of consideration that is no longer contingent had been accrued from the outset of the arrangement. |
Impairment of Real Estate Assets | Impairment of Real Estate Assets We continually monitor events and changes in circumstances that could indicate that the carrying value of our real estate and related intangible assets may not be recoverable. When indicators of potential impairment emerge, we assess whether we will recover the carrying value of the asset through our undiscounted future cash flows and our eventual disposition. Based on this assessment, if we do not believe that it will recover the carrying value of the real estate and related intangible assets, we will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets. No impairment charges on assets held for use were recorded for the period ended September 30, 2022. Impairment charges on held for sale are discussed in Note 5. |
Reportable Segments | Reportable Segments ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. We have one reportable segment, income-producing real estate properties, which consists of activities related to investing in real estate. The real estate properties are geographically diversified throughout the United States, and we evaluate operating performance on an overall portfolio level. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
List of Investments | The below list of investments would have been accounted for under the equity method if the fair value method had not been elected and have been included in investments in the consolidated balance sheets as of September 30, 2022 and June 30, 2022: Investee Legal Form Asset Type % Ownership Fair Value as of September 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,533,300 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 4,100,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 22,470,804 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 831,880 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,793,222 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 2,918,500 Main Street West, LP Limited Partnership GP Interest 1.00 % * 5,047,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 686,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,321,500 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,874,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,583,026 Investee Legal Form Asset Type % Ownership Fair Value as of June 30, 2022 5210 Fountaingate, LP Limited Partnership LP Interest 9.92 % $ 6,820 Capitol Hill Partners, LLC Limited Liability Company LP Interest 23.33 % 1,518,100 Citrus Park Hotel Holdings, LLC Limited Liability Company LP Interest 35.27 % 5,000,000 Dimensions 28, LLP Limited Partnership LP Interest 90.00 % 19,512,036 Lakemont Partners, LLC Limited Liability Company LP Interest 17.10 % 806,290 Secured Income L.P. Limited Partnership LP Interest 6.57 % 520,594 1300 Main, LP Limited Partnership GP Interest 1.00 % * 1,688,000 First & Main, LP Limited Partnership GP Interest 1.00 % * 2,237,000 Green Valley Medical Center, LP Limited Partnership GP Interest 1.00 % * 3,010,000 Main Street West, LP Limited Partnership GP Interest 1.00 % * 4,708,000 Martin Plaza Associates, LP Limited Partnership GP Interest 1.00 % * 725,000 One Harbor Center, LP Limited Partnership GP Interest 1.00 % * 4,162,000 Westside Professional Center I, LP Limited Partnership GP Interest 1.00 % * 1,803,000 Woodland Corporate Center II, LP Limited Partnership GP Interest 1.00 % * - Total $ 45,696,840 * Represents 1% general partner interests in the partnerships, which are also entitled to profit sharing distributions ranging from 25% to 50%. |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS IN REAL ESTATE [Abstract] | |
Consolidated Operating Properties Information | The following tables provide summary information regarding our operating properties which are owned through our subsidiaries: Consolidated Operating Properties Property Name: Addison Corporate Center Commodore Apartments Pon de Leo Apartments Hollywood Property Property Owner: Addison Property Owner, LLC Madison-PVT Partners LLC PVT-Madison Partners LLC PT Hillview GP, LLC Location: Windsor, CT Oakland, CA Oakland, CA Hollywood, CA Number of Tenants: 6 48 39 42 Year Built: 1980 1912 1929 1917 Ownership Interest: 100% 100% 100% 100% Property Name: Shoreline Apartments Satellite Place First & Main Office Building Property Owner: MacKenzie BAA IG Shoreline LLC MacKenzie Satellite Place Corp. First & Main, LP Location: Concord, CA Duluth, GA Napa, CA Number of Tenants: 74 1 8 Year Built: 1968 2002 2001 Ownership Interest: 100% 100% 100% |
Allocation of Real Estate Assets Acquired | The following table presents the allocation of real estate assets acquired during the three months ended September 30, 2022 based on asset acquisition accounting. Property Name: First & Main Office Building Acquisition Date: July 23, 2022 Purchase Price Allocation Land $ 966,315 Building 15,597,370 Site Improvements 795,197 Tenant Improvements 524,399 Lease in Place 796,341 Leasing Commissions 347,204 Legal & Marketing Lease Up Costs 52,007 Total assets acquired 19,078,833 Net leasehold asset (liability) (220,100 ) Total assets acquired, net $ 18,858,733 |
Components of Income From Real Estate Operations | The following table presents the components of income from real estate operations for the three months ended September 30, 2022 and 2021: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Lease Income - Operating leases $ 2,744,083 $ 2,270,918 Variable lease income (1) 324,420 451,664 $ 3,068,503 $ 2,722,582 (1) Primarily includes tenant reimbursements for utilities and common area maintenance. |
Real Estate Properties Under Non-Cancelable Operating Leases | As of September 30, 2022, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows: Year ended June 30, : Rental Income 2023 $ 2,887,900 2024 2,247,670 2025 2,196,839 2026 2,227,955 2027 2,287,805 Thereafter 9,768,710 Total $ 21,616,879 |
Acquired Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities | As of September 30, 2022, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 4,103,856 $ 99,460 $ 1,774,877 Accumulated amortization (788,229 ) (3,980 ) (489,462 ) Total $ 3,315,627 $ 95,480 $ 1,285,415 Weighted average amortization period (years) 5.0 6.5 5.9 As of June 30, 2022, our acquired lease intangibles, above-market lease assets and below-market lease liabilities, were as follows: Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Cost $ 2,889,828 $ - $ 1,455,317 Accumulated amortization (586,168 ) - (391,738 ) Total $ 2,303,660 $ - $ 1,063,579 Weighted average amortization period (years) 5.2 - 4.9 |
Amortization of Lease Intangibles, Above-Market Lease Assets And Below-Market Lease Liabilities | Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the three months ended September 30, 2022 and 2021, were as follows: Three Months Ended September 30, 2022 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 202,062 $ 3,980 $ (97,724 ) Three Months Ended September 30, 2021 Lease Intangibles Above-Market Lease Asset Below-Market Lease Liabilities Amortization $ 366,808 $ 31,976 $ (74,355 ) |
Projected Amortization Expense and Adjustments | The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for the next five years: Year Ended June 30, : 2023 (remainder) 2024 2025 2026 2027 Thereafter In-place leases, to be included in amortization $ 599,248 $ 557,278 $ 539,968 $ 484,340 $ 288,613 $ 846,180 Above-market lease intangibles $ 15,640 $ 20,853 $ 12,759 $ 9,137 $ 9,137 $ 27,954 Below-market lease liabilities (299,494 ) (351,135 ) (198,763 ) (128,202 ) (91,888 ) (215,933 ) $ (283,854 ) $ (330,282 ) $ (186,004 ) $ (119,065 ) $ (82,751 ) $ (187,979 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS [Abstract] | |
Composition of Investments at Fair Value | The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of September 30, 2022 and June 30, 2022: Fair Value Fair Value Asset Type September 30, 2022 June 30, 2022 Non Traded Companies $ 9,742,068 $ 11,517,226 GP Interests (Equity method investment with fair value option election) 16,640,222 18,333,000 LP Interests 332,749 330,000 LP Interests (Equity method investment with fair value option election) 28,942,804 27,363,840 Investment Trust 75,213 49,178 Total $ 55,733,056 $ 57,593,244 |
Fair Value Measurements of Investments | The following table presents fair value measurements of our investments as of September 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 9,742,068 $ - $ - $ 9,742,068 GP Interests 16,640,222 - - 16,640,222 LP Interests 29,275,553 - - 29,275,553 Investment Trust 75,213 - - 75,213 Total $ 55,733,056 $ - $ - $ 55,733,056 The following table presents fair value measurements of our investments as of June 30, 2022, according to the fair value hierarchy that is described in our annual report on Form 10-K: Asset Type Total Level I Level II Level III Non Traded Companies $ 11,517,226 $ - $ - $ 11,517,226 GP Interests 18,333,000 - - 18,333,000 LP Interests 27,693,840 - - 27,693,840 Investment Trust 49,178 - - 49,178 Total $ 57,593,244 $ - $ - $ 57,593,244 |
Reconciliation of the Beginning and Ending Balances for Investments Measured at Fair value on a Recurring Basis | The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the three months ended September 30, 2022: Balance at July 1, 2022 $ 57,593,244 Purchases of investments 105,562 Transfers to Level I (30,753 ) Transfer to Investment in Real Estate (2,221,001 ) Proceeds from sales, net (2,043,386 ) Return of capital distributions (1,017,016 ) Net realized gains 507,858 Net unrealized gains 2,838,548 Ending balance at September 30, 2022 $ 55,733,056 The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the three months ended September 30, 2021: Balance at July 1, 2021 $ 70,340,043 Purchases of investments 108,063 Transfers to Level I (229,621 ) Proceeds from sales, net (7,114,606 ) Return of capital distributions (3,931,141 ) Net realized gains 531,643 Net unrealized gains 3,156,105 Ending balance at September 30, 2021 $ 62,860,486 |
Significant Unobservable Inputs Used in Fair Value Measurements | The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at September 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Company $ 732 Estimated Liquidation Value Sponsor provided value 66.0% Non Traded Companies 9,741,336 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 14,847,000 Direct Capitalization Method Capitalization rate 6.0% - 6.5% 6.3% Discount rate 6.3% - 7.0% 6.7% GP Interest 1,793,222 Market Activity Contracted purchase of property LP Interests 1,866,049 Direct Capitalization Method Capitalization rate 4.8% - 5.8% 4.9% Liquidity discount 30.0% LP Interests 4,931,880 Discounted Cash Flow Discount rate 6.0% - 9.0% 8.5% LP Interest 6,820 Estimated Liquidation Value Sponsor provided value 12% LP Interest 22,470,804 Market Activity Contracted sale of property Investment Trust 75,213 Estimated Liquidation Value Liquidity discount 5.0% Contract negotiations $ 55,733,056 The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2022: Asset Type Fair Value Primary Valuation Techniques Unobservable Inputs Used Range Weighted Average Non Traded Companies $ 1,011,081 Estimated Liquidation Value Sponsor provided value Liquidity discount 25.0% - 75.0% 25.0% Non Traded Companies 10,506,145 Market Activity Secondary market industry publication Contracted purchase of security GP Interests 18,333,000 Market Activity Contracted purchase price LP Interests 21,550,730 Direct Capitalization Method Capitalization rate 4.0% - 5.0% 4.2% Liquidity discount 15.0% LP Interests 5,806,290 Discounted Cash Flow Discount rate 6.3% - 9.0% 8.6% LP Interests 6,820 Estimated Liquidation Value Sponsor provided value Liquidity discount 12% LP Interest 330,000 Market Activity Secondary market industry publication Investment Trust 49,178 Direct Capitalization Method Capitalization rate 5.0% Liquidity discount 15.0% $ 57,593,244 |
Aggregated Summarized Financial Information of Investees | The summarized financial information of Dimension 28, LLP, Main Street West, LP, Citrus Park Hotel Holdings, LLC and aggregated summarized financial information of all equity method investees as of September 30, 2022 is as follows: Dimension 28, LLP Main Street West, LP Citrus Park Hotel Holdings, LLC All Equity Method Total Assets $ 18,617,127 $ 10,440,184 $ 11,983,313 $ 131,830,402 Total Liabilities $ 13,820,180 $ 22,319,349 $ 1,774,469 $ 126,510,471 Total Equities $ 4,796,947 $ (11,879,165 ) $ 10,208,843 $ 5,319,930 Total Revenues $ 2,452,687 $ 1,604,863 $ 3,891,488 $ 16,355,254 Total Expenses $ 2,872,954 $ 968,077 $ 3,244,696 $ 13,445,511 Total Net Income (Loss) $ (420,267 ) $ 636,786 $ 646,792 $ 2,909,743 |
ACQUISITIONS AND HELD FOR SALE
ACQUISITIONS AND HELD FOR SALE (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
ACQUISITIONS AND HELD FOR SALE [Abstract] | |
Purchase Price Allocation of General Partnership Interests Acquired | As discussed in Note 1, in May 6, 2022 the Operating Partnership purchased 100% of the membership interests in the eight Management Companies that own the general partnership interests in eight limited partnerships, each of which own a Class A or B office property in Napa, Fairfield, Suisun City or Woodland, California. Each Management Company is the sole general partner of each of the limited partnerships as disclosed in the following table: General Partnership Interests Management Companies Total Purchase Price 1300 Main, LP 1300 Main, LLC $ 1,688,000 First & Main, LP First & Main, LLC 2,237,000 Green Valley Medical Center, LP Green Valley Medical Center, LLC 3,010,000 Main Street West, LP Main Street West, LLC 4,708,000 Martin Plaza Associates, LP Martin Plaza, LLC 725,000 One Harbor Center, LP One Harbor Center, LLC 4,162,000 Westside Professional Center I, LP Westside Professional Center, LLC 1,803,000 Woodland Corporate Center II, LP Woodland Corporate Center, LLC - Total $ 18,333,000 |
Acquisition of General Partnership Interests In Exchange for Cash, Preferred Units in Operating Partnership and Contingent Liability | The acquisition of general partnership interests was made in exchange for cash, preferred units in the Operating Partnership, and, in some cases, a contingent liability as shown below: General Partnership Interests Number of Preferred Units issued Amount of Preferred Units issued Cash Payments Contingent Liability Total Purchase Price 1300 Main, LP - $ - $ 1,688,000 $ - $ 1,688,000 First & Main, LP 99,422.22 2,237,000 - - 2,237,000 Green Valley Medical Center, LP - - 2,410,000 600,000 3,010,000 Main Street West, LP - - 3,850,000 858,000 4,708,000 Martin Plaza Associates, LP 26,977.78 607,000 - 118,000 725,000 One Harbor Center, LP 80,266.67 1,806,000 1,571,000 785,000 4,162,000 Westside Professional Center I, LP - - 1,449,000 354,000 1,803,000 Woodland Corporate Center II, LP - - - - - Total 206,666.67 $ 4,650,000 $ 10,968,000 $ 2,715,000 $ 18,333,000 |
Major Classes of Assets and Liabilities Classified as Held For Sale | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets: September 30, 2022 June 30, 2022 Assets Real estate assets Land $ 6,456,615 $ 6,456,615 Building, fixtures and improvements 19,108,041 19,108,041 Intangible lease assets 5,225,719 5,154,568 Less: accumulated depreciation and amortization (5,112,309 ) (5,112,309 ) Total real estate assets, net 25,678,066 25,606,915 Cash 311,169 505,186 Investments income, rents and other receivables 665,759 490,239 Due from related entities - 401 Prepaid expenses and other assets 34,778 14,301 Allowance for impairment of assets held for sale (9,126,461 ) (9,126,461 ) Total assets $ 17,563,311 $ 17,490,581 Liabilities Deferred rent and other liabilities $ 518,259 $ 410,908 Accounts payable and accrued liabilities 751,109 334,081 Total liabilities $ 1,269,368 $ 744,989 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Summary of the Nonconsolidated VIE | The table below presents a summary of the nonconsolidated VIEs in which we hold variable interests: Total Nonconsolidated VIEs As of September 30, 2022 As of June 30, 2022 Fair value of investments in VIEs $ 29,275,553 $ 27,693,840 Carrying value of variable interests - assets $ 19,818,459 $ 19,304,856 Maximum Exposure to Loss: Limited Partnership Interest $ 19,818,459 $ 19,304,856 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Annual Asset Management Fees | The asset management fees mentioned above were based on the following quarter ended Invested Capital segregated in three columns based on the annual fee rate: Asset Management Fee Annual % 3.0% 2.0% 1.5% Total Invested Capital Quarter ended: September 30, 2022 $ 20,000,000 $ 80,000,000 $ 48,639,649 $ 148,639,649 Quarter ended: September 30, 2021 $ 20,000,000 $ 80,000,000 $ 33,927,634 $ 133,927,634 |
Related Party Expenses | The table below outlines the related party expenses incurred for the three months ended September 30, 2022 and 2021, and unpaid as of September 30, 2022, and June 30, 2022 Three Months Ended Unpaid as of Types and Recipient September 30, 2022 September 30, 2021 September 30, 2022 June 30, 2022 Asset management fees- the Real Estate Adviser $ 716,267 $ 676,552 $ - $ - Asset acquisition fees- the Real Estate Adviser (3) 460,400 - - - Administrative cost reimbursements- MacKenzie 181,500 152,400 - - Transfer agent cost reimbursements - MacKenzie 23,000 26,601 - - Organization & Offering Cost (2) 20,895 - 109,390 141,397 Other expenses (1) - - 29,066 72,697 Due to related entities $ 138,456 $ 214,094 (1) Expenses paid by MacKenzie and General Partner of a subsidiary on behalf of us and subsidiary. (2) Offering costs paid by MacKenzie - discussed in this Note under organization and offering costs reimbursements. (3) Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the three months ended September 30, 2022 was for the acquisition of First & Main in July 2022. |
MORTGAGE NOTES PAYABLE AND DE_2
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY [Abstract] | |
Projected Principal and Interest Payments | The following table provides the projected principal and interest payments on the loan for the next four years: Year Ended June 30, : Principal Interest 2023 (remainder) $ 235,744 $ 321,131 2024 324,747 417,753 2025 337,136 405,363 2026 10,626,030 230,553 Total $ 11,523,657 $ 1,374,800 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for three months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Net income attributable to common stockholders $ 1,166,345 $ 4,923,801 Basic and diluted weighted average common shares outstanding 13,281,069.23 13,333,927.46 Basic and diluted earnings per share $ 0.09 $ 0.37 |
SHARE REPURCHASE PLAN (Tables)
SHARE REPURCHASE PLAN (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
SHARE REPURCHASE PLAN [Abstract] | |
Repurchased Shares | During the three months ended September 30, 2022, we repurchased our own shares through our Share Repurchase Program and through third-party auctions as noted in the below table: Period Total Number of Shares Repurchased Average Repurchase Price Per Share Total Repurchase Consideration During the Quarter ended September 30, 2022 September 1, 2022 through September 30, 2022 40,817.06 $ 9.47 $ 386,385 40,817.06 $ 386,385 |
STOCKHOLDER DIVIDENDS (Tables)
STOCKHOLDER DIVIDENDS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
STOCKHOLDER DIVIDENDS [Abstract] | |
Stockholder Dividends | The following table reflects the dividends per share that we have declared on our common stock and preferred stock during the three months ended September 30, 2022: Dividends Common Stock Preferred Stock During the Quarter Ended Per Share Amount Per Share Amount September 30, 2022 $ 0.105 $ 1,390,290 $ 0.375 $ 87,884 The following table reflects the dividends per share that we have declared on our common stock during the three months ended September 30, 2021: Dividends During the Quarter Ended Per Share Amount September 30, 2021 $ 0.130 * $ 1,731,482 * $0.06 per share dividend was declared for the quarter ended June 30, 2021. |
PRINCIPAL BUSINESS AND ORGANI_2
PRINCIPAL BUSINESS AND ORGANIZATION (Details) | 1 Months Ended | 3 Months Ended | |||||||||||
Jul. 29, 2022 USD ($) shares | Jun. 01, 2022 USD ($) ft² a Shareholder | May 06, 2022 USD ($) Land Company shares | Oct. 31, 2019 shares | Dec. 31, 2016 shares | Oct. 31, 2016 shares | Sep. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2021 Building Company | Sep. 30, 2022 USD ($) Company $ / shares shares | Jun. 30, 2022 $ / shares shares | Jan. 25, 2022 | Oct. 04, 2021 | Apr. 13, 2021 USD ($) $ / shares | |
Common Stock Disclosures [Abstract] | |||||||||||||
Total shares authorized for issue (in shares) | shares | 100,000,000 | 100,000,000 | |||||||||||
Common stock, authorized (in shares) | shares | 80,000,000 | 80,000,000 | 80,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Preferred stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Common stock, Initial public offering (in shares) | shares | 15,000,000 | 15,000,000 | 5,000,000 | ||||||||||
Number of operating companies | Company | 2 | ||||||||||||
Number of residential apartment buildings to acquire and operate | Building | 2 | ||||||||||||
Portfolio risk concentration, percentage | 20% | ||||||||||||
Proceeds from public offerings | $ 147,420,000 | ||||||||||||
Proceeds from dividend reinvestment plan | 12,940,000 | ||||||||||||
Payment to repurchase shares | $ 12,030,000 | ||||||||||||
First & Main, LP [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||
Purchase price of interests acquired | $ 3,376,322 | $ 2,237,000 | |||||||||||
Purchase price paid through issuance of shares | $ 2,711,378 | ||||||||||||
Hollywood Hillview [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Percentage of economic interest acquired | 90% | ||||||||||||
Remaining percentage of economic interest | 10% | ||||||||||||
PT Hillview [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Operating Partnership, ownership interest | 100% | ||||||||||||
MacKenzie-BAA IG Shoreline, LLC [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Percentage of economic interest acquired | 98% | ||||||||||||
Remaining percentage of economic interest | 2% | ||||||||||||
Operating Partnership [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Operating Partnership, ownership interest | 13.05% | 13.05% | |||||||||||
Equity Investors Member Units [Member] | Madison [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Ownership percentage of equity investors | 98.45% | ||||||||||||
Joint venture partners own percentage | 1.55% | ||||||||||||
Equity Investors Member Units [Member] | PVT [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Ownership percentage of equity investors | 98.75% | ||||||||||||
Joint venture partners own percentage | 1.25% | ||||||||||||
FSP Satellite Place [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Rentable Space | ft² | 134,785 | ||||||||||||
Area of Land Rentable Space Located | a | 10 | ||||||||||||
Number of shareholders exception for cash payment | Shareholder | 2 | ||||||||||||
Wiseman Company LLC [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Number of operating companies | Company | 8 | ||||||||||||
Percentage of economic interest acquired | 100% | ||||||||||||
Number of parcel entitled land acquired | Land | 1 | ||||||||||||
Purchase price of interests acquired | $ 18,333,000 | ||||||||||||
Purchase price of parcel entitled land acquired | 3,050,000 | ||||||||||||
Purchase price paid through issuance of shares | 4,650,000 | ||||||||||||
Purchase price of parcel entitled land paid through issuance of shares | $ 750,000 | ||||||||||||
Number of active partnerships | Company | 9 | ||||||||||||
Period for right to acquire each property at pre-determined prices in following years | 2 years | ||||||||||||
Common Stock [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Shares issued (in shares) | shares | 169.67 | ||||||||||||
Common Stock [Member] | FSP Satellite Place [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Payments to acquire economic interest | $ 27,503 | ||||||||||||
Preferred Stock [Member] | First & Main, LP [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Shares issued (in shares) | shares | 120,505.66 | ||||||||||||
Preferred Stock [Member] | Operating Partnership [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||||||||
Operating Partnership shares owned (in shares) | shares | 327,172.32 | 327,172.32 | |||||||||||
Operating Partnership shares, amount entitled to receive | $ 8,179,308 | $ 8,179,308 | |||||||||||
Preferred Stock [Member] | FSP Satellite Place [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Payments to acquire economic interest | $ 13,752 | ||||||||||||
Preferred Stock [Member] | Wiseman Company LLC [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Shares issued (in shares) | shares | 206,666.67 | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Preferred stock, authorized amount | $ 50,000,000 | ||||||||||||
Preferred stock initial offering price (in dollars per share) | $ / shares | $ 25 | ||||||||||||
Proceeds from public offerings | $ 7,990,000 | ||||||||||||
Class A [Member] | Operating Partnership [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 10.25 | $ 10.25 | |||||||||||
Operating Partnership shares owned (in shares) | shares | 89,552.61 | 89,552.61 | |||||||||||
Class A [Member] | Wiseman Company LLC [Member] | |||||||||||||
Common Stock Disclosures [Abstract] | |||||||||||||
Shares issued (in shares) | shares | 77,881.62 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Capital Pending Acceptance (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Capital Pending Acceptance [Abstract] | ||
Capital pending acceptance | $ 235,000 | $ 85,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes and Deferred Tax Liability (Details) | 3 Months Ended | |
Sep. 30, 2022 USD ($) Entity | Jun. 30, 2022 USD ($) | |
Income Taxes and Deferred Tax Liability [Abstract] | ||
Percentage of excise tax on catch-up distributions paid in the subsequent year | 4% | |
Number of entities income tax liabilities flow through to partners | Entity | 2 | |
Uncertain tax positions | $ 0 | $ 0 |
Tax Year 2021 [Member] | TRS and MacKenzie NY 2 [Member] | ||
Income Taxes and Deferred Tax Liability [Abstract] | ||
Taxable income | 0 | |
Income tax expense (benefit) | 0 | |
Tax Year 2022 [Member] | ||
Income Taxes and Deferred Tax Liability [Abstract] | ||
Income tax expense (benefit) | 0 | |
Tax Year 2022 [Member] | TRS and MacKenzie NY 2 [Member] | ||
Income Taxes and Deferred Tax Liability [Abstract] | ||
Taxable income | 0 | |
Income tax expense (benefit) | $ 0 | |
Minimum [Member] | ||
Income Taxes and Deferred Tax Liability [Abstract] | ||
Percentage of taxable income annual distributions | 90% | |
Maximum [Member] | ||
Income Taxes and Deferred Tax Liability [Abstract] | ||
Percentage of taxable income annual distributions | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, List of Investments (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | |
Fair Value Option [Abstract] | |||
Fair Value | $ 45,583,026 | $ 45,696,840 | |
GP Interests [Member] | Maximum [Member] | |||
Fair Value Option [Abstract] | |||
Distribution percentage | 50% | 50% | |
GP Interests [Member] | Minimum [Member] | |||
Fair Value Option [Abstract] | |||
Distribution percentage | 25% | 25% | |
5210 Fountaingate, LP [Member] | Limited Partnership [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 9.92% | 9.92% | |
Fair Value | $ 6,820 | $ 6,820 | |
Capitol Hill Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 23.33% | 23.33% | |
Fair Value | $ 1,533,300 | $ 1,518,100 | |
Citrus Park Hotel Holdings, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 35.27% | 35.27% | |
Fair Value | $ 4,100,000 | $ 5,000,000 | |
Dimensions 28, LLP [Member] | Limited Partnership [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 90% | 90% | |
Fair Value | $ 22,470,804 | $ 19,512,036 | |
Lakemont Partners, LLC [Member] | Limited Liability Company [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 17.10% | 17.10% | |
Fair Value | $ 831,880 | $ 806,290 | |
Secured Income L.P. [Member] | Limited Partnership [Member] | LP Interest [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 6.57% | ||
Fair Value | $ 520,594 | ||
1300 Main, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 1,793,222 | $ 1,688,000 | |
First & Main, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | |
Fair Value | $ 2,237,000 | ||
Green Valley Medical Center, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 2,918,500 | $ 3,010,000 | |
Main Street West, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 5,047,000 | $ 4,708,000 | |
Martin Plaza Associates, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 686,000 | $ 725,000 | |
One Harbor Center, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 4,321,500 | $ 4,162,000 | |
Westside Professional Center I, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 1,874,000 | $ 1,803,000 | |
Woodland Corporate Center II, LP [Member] | Limited Partnership [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | [1] | 1% | 1% |
Fair Value | $ 0 | $ 0 | |
Total Ownership Interests [Member] | GP Interests [Member] | |||
Fair Value Option [Abstract] | |||
Ownership percentage | 1% | 1% | |
[1]Represents 1% general partner interests in the partnerships, which are also entitled to profit sharing distributions ranging from 25% to 50%. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Impairment of Real Estate Assets (Details) | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Impairment of Real Estate Assets [Abstract] | |
Impairment charges of real estate assets | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Reportable Segments (Details) | 3 Months Ended |
Sep. 30, 2022 Segment | |
Reportable Segments [Abstract] | |
Number of reportable segments | 1 |
INVESTMENTS IN REAL ESTATE, Sum
INVESTMENTS IN REAL ESTATE, Summary (Details) | 3 Months Ended | ||
Jul. 23, 2022 USD ($) | Sep. 30, 2022 USD ($) Tenant | Sep. 30, 2021 USD ($) | |
Purchase Price Allocation [Abstract] | |||
Depreciation expenses | $ 706,262 | $ 602,120 | |
Addison Corporate Center [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Addison Corporate Center | ||
Property Owner | Addison Property Owner, LLC | ||
Location | Windsor, CT | ||
Number of tenants | Tenant | 6 | ||
Year built | 1980 | ||
Ownership interest | 100% | ||
Commodore Apartment [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Commodore Apartments | ||
Property Owner | Madison-PVT Partners LLC | ||
Location | Oakland, CA | ||
Number of tenants | Tenant | 48 | ||
Year built | 1912 | ||
Ownership interest | 100% | ||
Pon Do Leo Apartment [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Pon de Leo Apartments | ||
Property Owner | PVT-Madison Partners LLC | ||
Location | Oakland, CA | ||
Number of tenants | Tenant | 39 | ||
Year built | 1929 | ||
Ownership interest | 100% | ||
Hollywood Property [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Hollywood Property | ||
Property Owner | PT Hillview GP, LLC | ||
Location | Hollywood, CA | ||
Number of tenants | Tenant | 42 | ||
Year built | 1917 | ||
Ownership interest | 100% | ||
Shoreline Apartments [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Shoreline Apartments | ||
Property Owner | MacKenzie BAA IG Shoreline LLC | ||
Location | Concord, CA | ||
Number of tenants | Tenant | 74 | ||
Year built | 1968 | ||
Ownership interest | 100% | ||
Satellite Place [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | Satellite Place | ||
Property Owner | MacKenzie Satellite Place Corp. | ||
Location | Duluth, GA | ||
Number of tenants | Tenant | 1 | ||
Year built | 2002 | ||
Ownership interest | 100% | ||
First & Main Office Building [Member] | |||
Consolidated Operating Properties [Abstract] | |||
Property name | First & Main Office Building | ||
Property Owner | First & Main, LP | ||
Location | Napa, CA | ||
Number of tenants | Tenant | 8 | ||
Year built | 2001 | ||
Ownership interest | 100% | ||
Asset Acquisitions [Abstract] | |||
Property Name | First & Main Office Building | ||
Acquisition Date | Jul. 23, 2022 | ||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | $ 19,078,833 | ||
Net leasehold asset (liability) | (220,100) | ||
Total assets acquired, net | 18,858,733 | ||
First & Main Office Building [Member] | Land [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 966,315 | ||
First & Main Office Building [Member] | Building [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 15,597,370 | ||
First & Main Office Building [Member] | Site Improvements [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 795,197 | ||
First & Main Office Building [Member] | Tenant Improvements [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 524,399 | ||
First & Main Office Building [Member] | Lease in Place [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 796,341 | ||
First & Main Office Building [Member] | Leasing Commissions [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | 347,204 | ||
First & Main Office Building [Member] | Legal & Marketing Lease Up Costs [Member] | |||
Purchase Price Allocation [Abstract] | |||
Total assets acquired | $ 52,007 |
INVESTMENTS IN REAL ESTATE, Com
INVESTMENTS IN REAL ESTATE, Components of Income From Real Estate Operations (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
INVESTMENTS IN REAL ESTATE [Abstract] | |||
Lease Income - Operating leases | $ 2,744,083 | $ 2,270,918 | |
Variable lease income | [1] | 324,420 | 451,664 |
Income from real estate operations | $ 3,068,503 | $ 2,722,582 | |
[1] Primarily includes tenant reimbursements for utilities and common area maintenance. |
INVESTMENTS IN REAL ESTATE, Ope
INVESTMENTS IN REAL ESTATE, Operating Leases Future Minimum Lease Payments (Details) | Sep. 30, 2022 USD ($) |
Rental Income [Abstract] | |
2023 | $ 2,887,900 |
2024 | 2,247,670 |
2025 | 2,196,839 |
2026 | 2,227,955 |
2027 | 2,287,805 |
Thereafter | 9,768,710 |
Total | $ 21,616,879 |
INVESTMENTS IN REAL ESTATE, Acq
INVESTMENTS IN REAL ESTATE, Acquired Lease Intangibles (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 4,103,856 | $ 2,889,828 |
Accumulated amortization | (788,229) | (586,168) |
Total | $ 3,315,627 | $ 2,303,660 |
Weighted average amortization period (years) | 5 years | 5 years 2 months 12 days |
Above-Market Lease Asset [Member] | ||
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 99,460 | $ 0 |
Accumulated amortization | (3,980) | 0 |
Total | $ 95,480 | 0 |
Weighted average amortization period (years) | 6 years 6 months | |
Below-Market Lease Liabilities [Member] | ||
Acquired Lease Intangibles [Abstract] | ||
Cost | $ 1,774,877 | 1,455,317 |
Accumulated amortization | (489,462) | (391,738) |
Total | $ 1,285,415 | $ 1,063,579 |
Weighted average amortization period (years) | 5 years 10 months 24 days | 4 years 10 months 24 days |
INVESTMENTS IN REAL ESTATE, Amo
INVESTMENTS IN REAL ESTATE, Amortization of Lease Intangibles (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Amortization of Lease Intangibles [Abstract] | ||
Amortization | $ 202,062 | $ 366,808 |
Above-Market Leases Intangibles [Member] | ||
Amortization of Lease Intangibles [Abstract] | ||
Amortization | 3,980 | 31,976 |
Below-Market Lease Liabilities [Member] | ||
Amortization of Lease Intangibles [Abstract] | ||
Amortization | $ (97,724) | $ (74,355) |
INVESTMENTS IN REAL ESTATE, Pro
INVESTMENTS IN REAL ESTATE, Projected Amortization Expense and Adjustments (Details) | Jun. 30, 2022 USD ($) |
In-Place Leases, to be Included in Amortization [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | $ 599,248 |
2024 | 557,278 |
2025 | 539,968 |
2026 | 484,340 |
2027 | 288,613 |
Thereafter | 846,180 |
Above-Market Leases Intangibles [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | 15,640 |
2024 | 20,853 |
2025 | 12,759 |
2026 | 9,137 |
2027 | 9,137 |
Thereafter | 27,954 |
Below-Market Lease Liabilities [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | (299,494) |
2024 | (351,135) |
2025 | (198,763) |
2026 | (128,202) |
2027 | (91,888) |
Thereafter | (215,933) |
Total to be Included in Revenue from Tenants [Member] | |
Projected Amortization Expense and Adjustments [Abstract] | |
2023 (remainder) | (283,854) |
2024 | (330,282) |
2025 | (186,004) |
2026 | (119,065) |
2027 | (82,751) |
Thereafter | $ (187,979) |
INVESTMENTS, Investments at Fai
INVESTMENTS, Investments at Fair Value (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 55,733,056 | $ 57,593,244 |
Non Traded Companies [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 9,742,068 | 11,517,226 |
GP Interests (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 16,640,222 | 18,333,000 |
LP Interests [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 332,749 | 330,000 |
LP Interests (Equity method investment with fair value option election) [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | 28,942,804 | 27,363,840 |
Investment Trust [Member] | ||
Investments at Fair Value [Abstract] | ||
Investments at Fair Value | $ 75,213 | $ 49,178 |
INVESTMENTS, Fair Value Measure
INVESTMENTS, Fair Value Measurements (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Asset Type [Abstract] | ||
Investments at Fair Value | $ 55,733,056 | $ 57,593,244 |
Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 55,733,056 | 57,593,244 |
Non Traded Companies [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 9,742,068 | 11,517,226 |
Non Traded Companies [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Non Traded Companies [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 9,742,068 | 11,517,226 |
GP Interests [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 16,640,222 | 18,333,000 |
GP Interests [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
GP Interests [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
GP Interests [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 16,640,222 | 18,333,000 |
LP Interests [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 29,275,553 | 27,693,840 |
LP Interests [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
LP Interests [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 29,275,553 | 27,693,840 |
Investment Trust [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 75,213 | 49,178 |
Investment Trust [Member] | Level I [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Investment Trust [Member] | Level II [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | 0 | 0 |
Investment Trust [Member] | Level III [Member] | ||
Asset Type [Abstract] | ||
Investments at Fair Value | $ 75,213 | $ 49,178 |
INVESTMENTS, Reconciliation for
INVESTMENTS, Reconciliation for Investments Measurements at Fair Value on a Recurring Basis (Details) - Level III [Member] - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | $ 57,593,244 | $ 70,340,043 |
Purchases of investments | 105,562 | 108,063 |
Transfers to Level I | (30,753) | (229,621) |
Transfer to Investment in Real Estate | (2,221,001) | |
Proceeds from sales, net | (2,043,386) | (7,114,606) |
Return of capital distributions | (1,017,016) | (3,931,141) |
Net realized gains | 507,858 | 531,643 |
Net unrealized gains | 2,838,548 | 3,156,105 |
Balance | 55,733,056 | 62,860,486 |
Unrealized gains, net included in earnings | $ 3,206,722 | $ 3,507,240 |
INVESTMENTS, Significant Unobse
INVESTMENTS, Significant Unobservable Inputs Used in Level III Fair Value Measurement (Details) - Level III [Member] - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 55,733,056 | $ 57,593,244 |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 732 | $ 1,011,081 |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 66% | |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 25% | |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 75% | |
Non Traded Companies [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 25% | |
Non Traded Companies [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 9,741,336 | $ 10,506,145 |
GP Interests [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 14,847,000 | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.50% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.30% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.30% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 7% | |
GP Interests [Member] | Direct Capitalization Method [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6.70% | |
GP Interests [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 1,793,222 | 18,333,000 |
LP Interests [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 1,866,049 | $ 21,550,730 |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 4.80% | 4% |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 5.80% | 5% |
LP Interests [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 4.90% | 4.20% |
LP Interests [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 30% | 15% |
LP Interests [Member] | Discounted Cash Flow [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 4,931,880 | $ 5,806,290 |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Minimum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 6% | 6.30% |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Maximum [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 9% | 9% |
LP Interests [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 8.50% | 8.60% |
LP Interests [Member] | Estimated Liquidation Value [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 6,820 | $ 6,820 |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provided Value Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 12% | |
LP Interests [Member] | Estimated Liquidation Value [Member] | Sponsor Provide Value, Contracted Sale of the Property, Appraisal and Liquidation Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 12% | |
LP Interests [Member] | Market Activity [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 22,470,804 | |
LP Interests [Member] | Market Activity [Member] | Secondary Market Industry Publication Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 330,000 | |
Investment Trust [Member] | Direct Capitalization Method [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 49,178 | |
Investment Trust [Member] | Direct Capitalization Method [Member] | Capitalization Rate [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 5% | |
Investment Trust [Member] | Direct Capitalization Method [Member] | Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 15% | |
Investment Trust [Member] | Estimated Liquidation Value [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Assets | $ 75,213 | |
Investment Trust [Member] | Estimated Liquidation Value [Member] | Liquidity Discount [Member] | ||
Valuation Technique and Input, Description [Abstract] | ||
Investment, Measurement Input | 5% |
INVESTMENTS, Aggregated Summari
INVESTMENTS, Aggregated Summarized Financial Information of Investees (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Aggregated Summarized Financial Information of Investees [Abstract] | |||
Total Assets | $ 202,408,869 | $ 182,564,961 | |
Total Liabilities | 91,255,152 | 78,342,744 | |
Total Equities | 102,161,890 | $ 97,854,313 | |
Total Expenses | 5,586,535 | $ 3,828,500 | |
Dimensions 28, LLP [Member] | |||
Aggregated Summarized Financial Information of Investees [Abstract] | |||
Total Assets | 18,617,127 | ||
Total Liabilities | 13,820,180 | ||
Total Equities | 4,796,947 | ||
Total Revenues | 2,452,687 | ||
Total Expenses | 2,872,954 | ||
Total Net Income (Loss) | (420,267) | ||
Main Street West, LP [Member] | |||
Aggregated Summarized Financial Information of Investees [Abstract] | |||
Total Assets | 10,440,184 | ||
Total Liabilities | 22,319,349 | ||
Total Equities | (11,879,165) | ||
Total Revenues | 1,604,863 | ||
Total Expenses | 968,077 | ||
Total Net Income (Loss) | 636,786 | ||
Citrus Park Hotel Holdings, LLC [Member] | |||
Aggregated Summarized Financial Information of Investees [Abstract] | |||
Total Assets | 11,983,313 | ||
Total Liabilities | 1,774,469 | ||
Total Equities | 10,208,843 | ||
Total Revenues | 3,891,488 | ||
Total Expenses | 3,244,696 | ||
Total Net Income (Loss) | 646,792 | ||
Fair Value Option [Member] | |||
Aggregated Summarized Financial Information of Investees [Abstract] | |||
Total Assets | 131,830,402 | ||
Total Liabilities | 126,510,471 | ||
Total Equities | 5,319,930 | ||
Total Revenues | 16,355,254 | ||
Total Expenses | 13,445,511 | ||
Total Net Income (Loss) | $ 2,909,743 |
ACQUISITIONS AND HELD FOR SALE,
ACQUISITIONS AND HELD FOR SALE, Purchase Price Allocation of General Partnership Interests Acquired (Details) | 1 Months Ended | 3 Months Ended | ||
Jul. 29, 2022 USD ($) | May 06, 2022 USD ($) Company | Mar. 31, 2021 Company | Sep. 30, 2022 | |
Acquisition of General Partnership Interests [Abstract] | ||||
Number of operating companies | Company | 2 | |||
Wiseman Company LLC [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Percentage of economic interest acquired | 100% | |||
Number of operating companies | Company | 8 | |||
Total purchase price | $ 18,333,000 | |||
1300 Main, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | 1300 Main, LLC | |||
Total purchase price | 1,688,000 | |||
First & Main, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Percentage of economic interest acquired | 100% | |||
Management Companies | First & Main, LLC | |||
Total purchase price | $ 3,376,322 | 2,237,000 | ||
Green Valley Medical Center, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | Green Valley Medical Center, LLC | |||
Total purchase price | 3,010,000 | |||
Main Street West, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | Main Street West, LLC | |||
Total purchase price | 4,708,000 | |||
Martin Plaza Associates, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | Martin Plaza, LLC | |||
Total purchase price | 725,000 | |||
One Harbor Center, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | One Harbor Center, LLC | |||
Total purchase price | 4,162,000 | |||
Westside Professional Center I, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | Westside Professional Center, LLC | |||
Total purchase price | 1,803,000 | |||
Woodland Corporate Center II, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Management Companies | Woodland Corporate Center, LLC | |||
Total purchase price | $ 0 |
ACQUISITIONS AND HELD FOR SAL_2
ACQUISITIONS AND HELD FOR SALE, Cash, Preferred Units in Operating Partnership and Contingent Liability (Details) - USD ($) | 3 Months Ended | |||
Jul. 29, 2022 | May 06, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | |
Acquisition of General Partnership Interests [Abstract] | ||||
Contingent liability | $ 1,857,000 | $ 2,715,000 | ||
Wiseman Company LLC [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | $ 10,968,000 | |||
Contingent liability | 2,715,000 | |||
Total purchase price | $ 18,333,000 | |||
Percentage of economic interest acquired | 100% | |||
Wiseman Company LLC [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 206,666.67 | |||
Amount of preferred units issued | $ 4,650,000 | |||
Preferred units, liquidation preference | $ 25 | |||
Lock-up period term | 4 years | |||
Share price (in dollars per share) | $ 22.5 | |||
1300 Main, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | $ 1,688,000 | |||
Contingent liability | 0 | |||
Total purchase price | $ 1,688,000 | |||
1300 Main, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 0 | |||
Amount of preferred units issued | $ 0 | |||
First & Main, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Amount of preferred units issued | $ 2,711,378 | |||
Cash Payments | 0 | |||
Contingent liability | 0 | |||
Total purchase price | $ 3,376,322 | $ 2,237,000 | ||
Percentage of economic interest acquired | 100% | |||
First & Main, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 99,422.22 | |||
Amount of preferred units issued | $ 2,237,000 | |||
Shares issued (in shares) | 120,505.66 | |||
Green Valley Medical Center, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 2,410,000 | |||
Contingent liability | 600,000 | |||
Total purchase price | $ 3,010,000 | |||
Green Valley Medical Center, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 0 | |||
Amount of preferred units issued | $ 0 | |||
Main Street West, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 3,850,000 | |||
Contingent liability | 858,000 | |||
Total purchase price | $ 4,708,000 | |||
Main Street West, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 0 | |||
Amount of preferred units issued | $ 0 | |||
Martin Plaza Associates, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 0 | |||
Contingent liability | 118,000 | |||
Total purchase price | $ 725,000 | |||
Martin Plaza Associates, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 26,977.78 | |||
Amount of preferred units issued | $ 607,000 | |||
One Harbor Center, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 1,571,000 | |||
Contingent liability | 785,000 | |||
Total purchase price | $ 4,162,000 | |||
One Harbor Center, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 80,266.67 | |||
Amount of preferred units issued | $ 1,806,000 | |||
Westside Professional Center I, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 1,449,000 | |||
Contingent liability | 354,000 | |||
Total purchase price | $ 1,803,000 | |||
Westside Professional Center I, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 0 | |||
Amount of preferred units issued | $ 0 | |||
Woodland Corporate Center II, LP [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Cash Payments | 0 | |||
Contingent liability | 0 | |||
Total purchase price | $ 0 | |||
Woodland Corporate Center II, LP [Member] | Preferred Stock [Member] | ||||
Acquisition of General Partnership Interests [Abstract] | ||||
Number of preferred units issued (in shares) | 0 | |||
Amount of preferred units issued | $ 0 |
ACQUISITIONS AND HELD FOR SAL_3
ACQUISITIONS AND HELD FOR SALE, Contingent Consideration and Debt Guaranty (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | May 06, 2022 |
Contingent Consideration [Abstract] | |||
Percentage of reduced purchase price for general partnership interest | 20% | ||
Percentage of holdback reduced by stabilization costs | 20% | ||
Percentage of holdback considered as contingent liability | 20% | ||
Contingent liability | $ 1,857,000 | $ 2,715,000 | |
Debt Guaranty [Abstract] | |||
Contingent liability related to guaranty | $ 0 |
ACQUISITIONS AND HELD FOR SAL_4
ACQUISITIONS AND HELD FOR SALE, Assets and Liabilities Held for Sale (Details) - Addison Corporate Center [Member] - Held-for-Sale [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Impairment on Assets Held for Sale [Abstract] | ||
Impairment loss on assets held for sale | $ 0 | $ 9,126,461 |
Real Estate Assets [Abstract] | ||
Land | 6,456,615 | 6,456,615 |
Building, fixtures and improvements | 19,108,041 | 19,108,041 |
Intangible lease assets | 5,225,719 | 5,154,568 |
Less: accumulated depreciation and amortization | (5,112,309) | (5,112,309) |
Total real estate assets, net | 25,678,066 | 25,606,915 |
Cash | 311,169 | 505,186 |
Investments income, rents and other receivables | 665,759 | 490,239 |
Due from related entities | 0 | 401 |
Prepaid expenses and other assets | 34,778 | 14,301 |
Allowance for impairment of assets held for sale | (9,126,461) | (9,126,461) |
Total assets | 17,563,311 | 17,490,581 |
Liabilities [Abstract] | ||
Deferred rent and other liabilities | 518,259 | 410,908 |
Accounts payable and accrued liabilities | 751,109 | 334,081 |
Total liabilities | $ 1,269,368 | $ 744,989 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Variable Interest Entity, Primary Beneficiary [Member] | Sep. 30, 2022 USD ($) Entity | Jun. 30, 2022 USD ($) Entity |
Nonconsolidated Variable Interest Entities [Abstract] | ||
Number of unconsolidated VIEs | Entity | 6 | 7 |
Total Nonconsolidated VIEs [Abstract] | ||
Fair value of investments in VIEs | $ 29,275,553 | $ 27,693,840 |
Carrying value of variable interests - assets | 19,818,459 | 19,304,856 |
Maximum Exposure to Loss [Abstract] | ||
Limited Partnership Interest | $ 19,818,459 | $ 19,304,856 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) Agreement | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | May 06, 2022 PropertyLimitedPartnership | ||
Transactions with Related Party [Abstract] | |||||
Number of advisory agreements | Agreement | 2 | ||||
Gross Invested Capital [Abstract] | |||||
Total gross invested capital | $ 148,639,649 | $ 133,927,634 | |||
Incentive management fee | 0 | 0 | |||
Number of property limited partnerships | PropertyLimitedPartnership | 8 | ||||
Incurred offering costs | 829,454 | $ 600,130 | |||
Related Party Expenses [Abstract] | |||||
Asset management fees- the Real Estate Adviser | 716,267 | 676,552 | |||
Asset acquisition fees- the Real Estate Adviser | [1] | 460,400 | 0 | ||
Administrative cost reimbursements - Mackenzie | 181,500 | 152,400 | |||
Transfer agent cost reimbursements - Mackenzie | 23,000 | 26,601 | |||
Organization and Offering Cost - Mackenzie | [2] | 20,895 | 0 | ||
Other expenses - MacKenzie and Subsidiary's GP's | [3] | 0 | 0 | ||
Unpaid as of [Abstract] | |||||
Asset management fees- the Real Estate Adviser | 0 | 0 | |||
Asset acquisition fees- the Real Estate Adviser | [1] | 0 | 0 | ||
Administrative cost reimbursements - Mackenzie | 0 | 0 | |||
Transfer agent cost reimbursement - Mackenzie | 0 | 0 | |||
Organization and Offering Cost - Mackenzie | [2] | 109,390 | 141,397 | ||
Other Expenses - Mackenzie | [3] | 29,066 | 72,697 | ||
Due to related entities | 138,456 | 214,094 | |||
Mackenzie [Member] | |||||
Gross Invested Capital [Abstract] | |||||
Syndication cost paid in connection with preferred stock offering | $ 599,499 | 501,917 | |||
Advisory Agreements [Member] | |||||
Transactions with Related Party [Abstract] | |||||
Percentage of acquisition fee | 2.50% | ||||
Percentage of incentive management fee | 15% | ||||
Cumulative distribution percentage to effect incentive management fee | 6% | ||||
3.0% Annual Asset Management Fee [Member] | |||||
Transactions with Related Party [Abstract] | |||||
Percentage of asset management fee | 3% | ||||
Gross Invested Capital [Abstract] | |||||
Total gross invested capital | $ 20,000,000 | 20,000,000 | |||
2.0% Annual Asset Management Fee [Member] | |||||
Transactions with Related Party [Abstract] | |||||
Percentage of asset management fee | 2% | ||||
Gross Invested Capital [Abstract] | |||||
Total gross invested capital | $ 80,000,000 | 80,000,000 | |||
1.5% Annual Asset Management Fee [Member] | |||||
Transactions with Related Party [Abstract] | |||||
Percentage of asset management fee | 1.50% | ||||
Gross Invested Capital [Abstract] | |||||
Total gross invested capital | $ 48,639,649 | $ 33,927,634 | |||
1.5% Annual Asset Management Fee [Member] | Minimum [Member] | |||||
Gross Invested Capital [Abstract] | |||||
Total gross invested capital | $ 100,000,000 | ||||
Investment Adviser [Member] | |||||
Gross Invested Capital [Abstract] | |||||
Percentage broker fee not incurred | 10% | ||||
Investment Adviser [Member] | Minimum [Member] | |||||
Gross Invested Capital [Abstract] | |||||
Cumulative deferred offering costs incurred | $ 550,000 | ||||
Unpaid as of [Abstract] | |||||
Organization and Offering Cost - Mackenzie | 229,955 | $ 21,841 | |||
Investment Adviser [Member] | Amended and Restated Investment Advisory Agreement [Member] | |||||
Transactions with Related Party [Abstract] | |||||
Annual fee | $ 100 | ||||
[1]Asset acquisition fees paid to the Real Estate Adviser were capitalized as a part of the real estate basis in accordance with our policy. The acquisition fee paid during the three months ended September 30, 2022 was for the acquisition of First & Main in July 2022.[2]Offering costs paid by MacKenzie - discussed in this Note under organization and offering costs reimbursements.[3]Expenses paid by MacKenzie and General Partner of a subsidiary on behalf of us and subsidiary. |
MARGIN LOANS (Details)
MARGIN LOANS (Details) - Margin Credit Line [Member] - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Line of Credit Facility [Abstract] | ||
Credit facility current borrowing capacity | $ 0 | $ 0 |
Credit facility remaining borrowing capacity | 0 | 0 |
Credit facility amount outstanding | $ 0 | $ 0 |
MORTGAGE NOTES PAYABLE AND DE_3
MORTGAGE NOTES PAYABLE AND DEBT GUARANTY (Details) | 1 Months Ended | 3 Months Ended | ||||||||
Oct. 04, 2021 USD ($) | May 06, 2021 USD ($) | Feb. 26, 2021 USD ($) | Aug. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) Time | Jun. 30, 2022 USD ($) | Jan. 04, 2021 USD ($) | Jun. 08, 2020 USD ($) | Dec. 31, 2018 USD ($) | |
Principal [Abstract] | ||||||||||
Total | $ 19,604,382 | $ 19,604,382 | ||||||||
Contribution Agreement [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 25,827,107 | |||||||||
Debt, maturity date | Apr. 30, 2022 | |||||||||
Modified Agreement [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 24,404,257 | |||||||||
Modified Agreement [Member] | Fed Funds Rate [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 3.75% | |||||||||
First Republic Bank [Member] | Madison-PVT Partners LLC [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Proceeds from mortgage loan | $ 6,737,500 | |||||||||
Fixed interest rate | 3% | |||||||||
Period of most recently published yield average that will be used for calculation of interest rates | 12 months | |||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 1 year | |||||||||
Debt, maturity date | Apr. 01, 2031 | |||||||||
Amortization period for monthly payments of principal and interests | 360 months | |||||||||
Principal [Abstract] | ||||||||||
Total | $ 6,737,500 | 6,737,500 | ||||||||
First Republic Bank [Member] | Madison-PVT Partners LLC [Member] | Statistical Release H.15 [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 2.75% | |||||||||
First Republic Bank [Member] | PVT-Madison Partners LLC [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Proceeds from mortgage loan | $ 8,387,500 | |||||||||
Fixed interest rate | 3% | |||||||||
Period of most recently published yield average that will be used for calculation of interest rates | 12 months | |||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 1 year | |||||||||
Debt, maturity date | Apr. 01, 2031 | |||||||||
Principal [Abstract] | ||||||||||
Total | $ 8,387,500 | 8,387,500 | ||||||||
First Republic Bank [Member] | PVT-Madison Partners LLC [Member] | Statistical Release H.15 [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 2.75% | |||||||||
Ladder Capital Finance [Member] | PT Hillview [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 17,500,000 | |||||||||
Fixed interest rate | 5.75% | |||||||||
Debt, maturity date | Oct. 06, 2023 | |||||||||
Number of time the loans can be extended | Time | 2 | |||||||||
Loans extension period | 12 months | |||||||||
Amortization period for monthly payments of principal and interests | 360 days | |||||||||
Principal [Abstract] | ||||||||||
Total | $ 16,804,689 | 16,804,689 | ||||||||
Ladder Capital Finance [Member] | PT Hillview [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 5.50% | |||||||||
Pacific Premier Bank [Member] | MacKenzie-BAA IG Shoreline, LLC [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 17,650,000 | |||||||||
Fixed interest rate | 3.65% | |||||||||
Debt, maturity date | Jun. 01, 2032 | |||||||||
Amortization period for monthly payments of principal and interests | 360 months | |||||||||
Number of months for annual interest | 60 months | |||||||||
Principal [Abstract] | ||||||||||
Total | $ 17,650,000 | $ 17,650,000 | ||||||||
Pacific Premier Bank [Member] | MacKenzie-BAA IG Shoreline, LLC [Member] | Secured Overnight Financing Rate [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 3% | |||||||||
Debt, term period | 6 months | |||||||||
Exchange Bank [Member] | First & Main, LP [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 12,000,000 | |||||||||
Fixed interest rate | 3.75% | |||||||||
Debt, maturity date | Feb. 01, 2026 | |||||||||
Amortization period for monthly payments of principal and interests | 25 years | |||||||||
Principal [Abstract] | ||||||||||
2023 (remainder) | $ 235,744 | |||||||||
2024 | 324,747 | |||||||||
2025 | 337,136 | |||||||||
2026 | 10,626,030 | |||||||||
Total | 11,523,657 | |||||||||
Interest [Abstract] | ||||||||||
2023 (remainder) | 321,131 | |||||||||
2024 | 417,753 | |||||||||
2025 | 405,363 | |||||||||
2026 | 230,553 | |||||||||
Total | $ 1,374,800 | |||||||||
Wiseman Family Trust [Member] | First & Main, LP [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Proceeds from mortgage loan | $ 220,000 | |||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 10 years | |||||||||
Debt, interest rate | 5% | |||||||||
Principal [Abstract] | ||||||||||
Total | $ 196,426 | |||||||||
Interest [Abstract] | ||||||||||
Monthly payments | $ 1,486 | |||||||||
Small Business Administration Loan [Member] | First & Main, LP [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Proceeds from mortgage loan | $ 151,000 | |||||||||
Notes payable, constant maturity period as published by Federal Reserve System | 30 years | |||||||||
Debt, interest rate | 3.75% | |||||||||
Interest [Abstract] | ||||||||||
Monthly payments | $ 731 | |||||||||
Wells Fargo Bank [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 32,000,000 | |||||||||
Debt, maturity date | Nov. 01, 2019 | |||||||||
Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, interest rate | 3.75% | |||||||||
Junior Debt [Member] | First & Main, LP [Member] | ||||||||||
Debt Instrument, Increase (Decrease), Net [Abstract] | ||||||||||
Debt, face value | $ 1,000,000 | |||||||||
Fixed interest rate | 7% | |||||||||
Debt, maturity date | Dec. 31, 2023 | |||||||||
Interest [Abstract] | ||||||||||
Prepayment penalty | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | ||
Net income attributable to common stockholders | $ 1,166,345 | $ 4,923,801 |
Basic weighted average common shares outstanding (in shares) | 13,281,069.23 | 13,333,927.46 |
Diluted weighted average common shares outstanding (in shares) | 13,281,069.23 | 13,333,927.46 |
Basic earnings per share (in dollars per share) | $ 0.09 | $ 0.37 |
Diluted earnings per share (in dollars per share) | $ 0.09 | $ 0.37 |
SHARE OFFERINGS AND FEES (Detai
SHARE OFFERINGS AND FEES (Details) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2022 $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | |
DRIP [Member] | ||
Sale of Stock [Abstract] | ||
Shares issued (in shares) | 41,884.51 | |
Proceeds from shares issued | $ | $ 386,385 | |
Common Stock [Member] | ||
Sale of Stock [Abstract] | ||
Shares issued (in shares) | 169.67 | |
Price per share (in dollars per share) | $ / shares | $ 10.25 | $ 10.25 |
SHARE REPURCHASE PLAN (Details)
SHARE REPURCHASE PLAN (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 40,817.06 | 0 |
Repurchase consideration | $ 386,385 | |
September 1, 2022 through September 30, 2022 [Member] | ||
Stock Repurchase Plan [Abstract] | ||
Number of shares repurchased (in shares) | 40,817.06 | |
Average repurchase price per share (in dollars per share) | $ 9.47 | |
Repurchase consideration | $ 386,385 |
STOCKHOLDER DIVIDENDS (Details)
STOCKHOLDER DIVIDENDS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 06, 2022 | Jun. 28, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Dividends Declared [Abstract] | |||||||
Dividends, Preferred stock | $ 107,626 | ||||||
Total dividends paid | $ 1,361,868 | $ 798,823 | |||||
Preferred stock, shares outstanding (in shares) | 321,624.94 | 0 | 119,416.91 | ||||
Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends per share (in dollars per share) | $ 0.33 | ||||||
Class A [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends per share (in dollars per share) | $ 0.1 | $ 0.06 | |||||
Dividends, Common stock | $ 9,324 | ||||||
Dividend Declared Q1-2022 [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Sep. 30, 2022 | ||||||
Dividends, Common stock | $ 1,390,290 | ||||||
Dividends, Preferred stock | $ 87,884 | ||||||
Dividends payable date | Oct. 31, 2022 | ||||||
Dividend Declared Q1-2022 [Member] | Common Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends per share (in dollars per share) | $ 0.105 | ||||||
Dividend Declared Q1-2022 [Member] | Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividend Declared Q1-2021 [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Sep. 30, 2021 | ||||||
Dividends, Common stock | $ 1,731,482 | ||||||
Dividend Declared Q1-2021 [Member] | Common Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends per share (in dollars per share) | [1] | $ 0.13 | |||||
DRIP [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends, Common stock | $ 391,214 | $ 243,488 | |||||
Dividend Payable for July 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Jun. 28, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Oct. 31, 2022 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Jul. 31, 2022 | ||||||
Dividend Payable for August 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Jun. 28, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Oct. 31, 2022 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Aug. 31, 2022 | ||||||
Dividend Payable for September 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Jun. 28, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Oct. 31, 2022 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Sep. 30, 2022 | ||||||
Dividend Payable for October 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Sep. 06, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Jan. 15, 2023 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Oct. 31, 2022 | ||||||
Dividend Payable for November 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Sep. 06, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Jan. 15, 2023 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Nov. 30, 2022 | ||||||
Dividend Payable for December 2022 [Member] | Series A Preferred Stock [Member] | |||||||
Dividends Declared [Abstract] | |||||||
Dividends declaration date | Sep. 06, 2022 | ||||||
Dividends per share (in dollars per share) | $ 0.375 | ||||||
Dividends payable date | Jan. 15, 2023 | ||||||
Dividends payable per month (in dollars per share) | $ 0.125 | ||||||
Dividends payable, holder of record date | Dec. 31, 2022 | ||||||
[1]* $0.06 per share dividend was declared for the quarter ended June 30, 2021. |