Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-33177 | |
Entity Registrant Name | MONMOUTH REAL ESTATE INVESTMENT CORPORATION | |
Entity Central Index Key | 0000067625 | |
Entity Tax Identification Number | 22-1897375 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | Juniper Business Plaza, | |
Entity Address, Address Line Two | 3499 Route 9 North | |
Entity Address, Address Line Three | Suite 3-D | |
Entity Address, City or Town | Freehold | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07728 | |
City Area Code | (732) | |
Local Phone Number | 577-9996 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 95,464,867 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | MNR | |
Security Exchange Name | NYSE | |
Series C Preferred Stock [Member] | ||
Title of 12(b) Security | 6.125% Series C Cumulative Redeemable Preferred Stock | |
Trading Symbol | MNR-PC | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Real Estate Investments: | ||
Land | $ 236,497 | $ 224,719 |
Buildings and Improvements | 1,603,423 | 1,494,859 |
Total Real Estate Investments | 1,839,920 | 1,719,578 |
Accumulated Depreciation | (238,757) | (207,065) |
Real Estate Investments | 1,601,163 | 1,512,513 |
Cash and Cash Equivalents | 13,631 | 9,324 |
Securities Available for Sale at Fair Value | 171,040 | 154,921 |
Tenant and Other Receivables | 662 | 1,249 |
Deferred Rent Receivable | 10,762 | 9,656 |
Prepaid Expenses | 7,375 | 6,190 |
Intangible Assets, net of Accumulated Amortization of $15,195 and $13,700, respectively | 14,981 | 14,590 |
Capitalized Lease Costs, net of Accumulated Amortization of $3,254 and $3,271, respectively | 5,682 | 5,232 |
Financing Costs, net of Accumulated Amortization of $1,277 and $995, respectively | 219 | 500 |
Other Assets | 9,668 | 4,203 |
TOTAL ASSETS | 1,835,183 | 1,718,378 |
Liabilities: | ||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | 734,095 | 711,546 |
Loans Payable | 126,187 | 186,609 |
Accounts Payable and Accrued Expenses | 3,775 | 5,891 |
Other Liabilities | 17,354 | 16,426 |
Total Liabilities | 881,411 | 920,472 |
Shareholders’ Equity: | ||
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 16,400 Shares Authorized as of June 30, 2019 and September 30, 2018; 12,506 and 11,488 Shares Issued and Outstanding as of June 30, 2019 and September 30, 2018, respectively | 312,660 | 287,200 |
Common Stock, $0.01 Par Value Per Share: 188,040 Shares Authorized as of June 30, 2019 and September 30, 2018; 95,155 and 81,503 Shares Issued and Outstanding as of June 30, 2019 and September 30, 2018, respectively | 952 | 815 |
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of June 30, 2019 and September 30, 2018; No Shares Issued or Outstanding as of June 30, 2019 and September 30, 2018 | 0 | 0 |
Additional Paid-In Capital | 640,160 | 534,635 |
Accumulated Other Comprehensive Loss | 0 | (24,744) |
Undistributed Income | 0 | 0 |
Total Shareholders’ Equity | 953,772 | 797,906 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ 1,835,183 | $ 1,718,378 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Accumulated amortization of intangible assets | $ 15,195 | $ 13,700 |
Accumulated amortization of capitalized lease costs | 3,254 | 3,271 |
Accumulated amortization, debt issuance costs | $ 1,277 | $ 995 |
Series C Preferred Stock [Member] | ||
Cumulative redeemable preferred stock, dividend rate | 6.125% | 6.125% |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 16,400 | 16,400 |
Preferred stock, shares issued | 12,506 | 11,488 |
Preferred stock, shares outstanding | 12,506 | 11,488 |
Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 188,040 | 188,040 |
Common Stock, shares issued | 95,155 | 81,503 |
Common Stock, shares outstanding | 95,155 | 81,503 |
Excess Stock [Member] | ||
Excess Stock, par value | $ 0.01 | $ 0.01 |
Excess Stock, shares authorized | 200,000 | 200,000 |
Excess stock, shares issued | 0 | 0 |
Excess stock, shares outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Rental Revenue | $ 33,127 | $ 29,256 | $ 98,678 | $ 85,559 |
Reimbursement Revenue | 6,345 | 5,480 | 19,247 | 17,002 |
Lease Termination Income | 0 | 0 | 0 | 210 |
TOTAL INCOME | 39,472 | 34,736 | 117,925 | 102,771 |
EXPENSES: | ||||
Real Estate Taxes | 5,092 | 4,488 | 15,144 | 13,593 |
Operating Expenses | 1,649 | 1,459 | 5,186 | 4,371 |
General & Administrative Expenses | 2,351 | 1,888 | 6,420 | 6,053 |
Depreciation | 10,833 | 9,162 | 32,067 | 26,504 |
Amortization of Capitalized Lease Costs and Intangible Assets | 721 | 614 | 2,144 | 1,741 |
TOTAL EXPENSES | 20,646 | 17,611 | 60,961 | 52,262 |
OTHER INCOME (EXPENSE): | ||||
Dividend Income | 3,686 | 3,628 | 11,569 | 9,380 |
Gain on Sale of Securities Transactions | 0 | 0 | 0 | 111 |
Unrealized Holding Gains (Losses) Arising During the Periods | (11,609) | 0 | (38,668) | 0 |
Interest Expense, including Amortization of Financing Costs | (9,275) | (8,279) | (27,879) | (23,640) |
TOTAL OTHER INCOME (EXPENSE) | (17,198) | (4,651) | (54,978) | (14,149) |
INCOME FROM OPERATIONS | 1,628 | 12,474 | 1,986 | 36,360 |
Gain on Sale of Real Estate Investments | 0 | 2,097 | 0 | 7,486 |
NET INCOME | 1,628 | 14,571 | 1,986 | 43,846 |
Less: Preferred Dividends | 4,749 | 4,248 | 13,650 | 12,813 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (3,121) | $ 10,323 | $ (11,664) | $ 31,033 |
BASIC INCOME (LOSS) – PER SHARE | ||||
Net Income | $ 0.02 | $ 0.18 | $ 0.02 | $ 0.56 |
Less: Preferred Dividends | (0.05) | (0.05) | (0.15) | (0.16) |
Net Income (Loss) Attributable to Common Shareholders – Basic | (0.03) | 0.13 | (0.13) | 0.40 |
DILUTED INCOME (LOSS) – PER SHARE | ||||
Net Income | 0.02 | 0.18 | 0.02 | 0.56 |
Less: Preferred Dividends | (0.05) | (0.05) | (0.15) | (0.16) |
Net Income (Loss) Attributable to Common Shareholders – Diluted | $ (0.03) | $ 0.13 | $ (0.13) | $ 0.40 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands) | ||||
Basic | 94,399 | 79,414 | 92,619 | 77,921 |
Diluted | 94,493 | 79,572 | 92,719 | 78,099 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net Income | $ 1,628 | $ 14,571 | $ 1,986 | $ 43,846 |
Other Comprehensive Income (Loss): | ||||
Unrealized Holding Gains (Losses) Arising During the Periods | 0 | 22,755 | 0 | (14,828) |
Reclassification Adjustment for Net Gains Realized in Income | 0 | 0 | 0 | (111) |
TOTAL COMPREHENSIVE INCOME | 1,628 | 37,326 | 1,986 | 28,907 |
Less: Preferred Dividends | 4,749 | 4,248 | 13,650 | 12,813 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (3,121) | $ 33,078 | $ (11,664) | $ 16,094 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Series C Preferred Stock [Member] | Additional Paid-in Capital [Member] | Undistributed Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Beginning balance, value at Sep. 30, 2017 | $ 756 | $ 245,986 | $ 459,553 | $ 0 | $ 6,570 | $ 712,865 | |
Shares Issued in Connection with the DRIP (1) | [1] | 45 | 0 | 67,851 | 0 | 0 | 67,896 |
Shares Issued in Connection with At-The-Market Sales Agreement Program of 6.125% Series C Preferred Stock, net of offering costs | 0 | 31,501 | (509) | 0 | 0 | 30,992 | |
Stock Compensation Expense | 0 | 0 | 339 | 0 | 0 | 339 | |
Distributions To Common Shareholders ($0.51 per share) | 0 | 0 | (8,809) | (31,033) | 0 | (39,842) | |
Net Income | 0 | 0 | 0 | 43,846 | 0 | 43,846 | |
Preferred Dividends ($1.1484375 per share) | 0 | 0 | 0 | (12,813) | 0 | (12,813) | |
Ending balance, value at Jun. 30, 2018 | 801 | 277,487 | 518,995 | 0 | (8,369) | 788,914 | |
Change in Unrealized Net Holding Gain (Loss) on Securities Available for Sale, Net of Reclassification Adjustment | 0 | 0 | 0 | 0 | (14,939) | (14,939) | |
Shares Issued Through the Exercise of Stock Options | 0 | 0 | 570 | 0 | 0 | 570 | |
Beginning balance, value at Mar. 31, 2018 | 788 | 277,384 | 503,310 | 0 | (31,125) | 750,357 | |
Shares Issued in Connection with the DRIP (1) | [1] | 13 | 0 | 18,840 | 0 | 0 | 18,853 |
Shares Issued in Connection with At-The-Market Sales Agreement Program of 6.125% Series C Preferred Stock, net of offering costs | 0 | 103 | (53) | 0 | 0 | 50 | |
Stock Compensation Expense | 0 | 0 | 98 | 0 | 0 | 98 | |
Distributions To Common Shareholders ($0.51 per share) | 0 | 0 | (3,200) | (10,323) | 0 | (13,523) | |
Net Income | 0 | 0 | 0 | 14,571 | 0 | 14,571 | |
Preferred Dividends ($1.1484375 per share) | 0 | 0 | 0 | (4,248) | 0 | (4,248) | |
Ending balance, value at Jun. 30, 2018 | 801 | 277,487 | 518,995 | 0 | (8,369) | 788,914 | |
Change in Unrealized Net Holding Gain (Loss) on Securities Available for Sale, Net of Reclassification Adjustment | 0 | 0 | 0 | 0 | 22,756 | 22,756 | |
Beginning balance, value at Sep. 30, 2018 | 815 | 287,200 | 534,635 | 0 | (24,744) | 797,906 | |
Shares Issued in Connection with the DRIP (1) | [1] | 44 | 0 | 57,417 | 0 | 0 | 57,461 |
Shares Issued in Connection with At-The-Market Sales Agreement Program of 6.125% Series C Preferred Stock, net of offering costs | 0 | 25,460 | (1,411) | 0 | 0 | 24,049 | |
Stock Compensation Expense | 0 | 0 | 574 | 0 | 0 | 574 | |
Distributions To Common Shareholders ($0.51 per share) | 0 | 0 | (83,867) | 36,408 | 0 | (47,459) | |
Net Income | 0 | 0 | 0 | 1,986 | 0 | 1,986 | |
Preferred Dividends ($1.1484375 per share) | 0 | 0 | 0 | (13,650) | 0 | (13,650) | |
Ending balance, value at Jun. 30, 2019 | 952 | 312,660 | 640,160 | 0 | 0 | 953,772 | |
Impact of Adoption of Accounting Standards Update 2016-01 | 0 | 0 | 0 | (24,744) | 24,744 | 0 | |
Shares Issued in Connection with Underwritten Public Offering of Common Stock, net of offering costs | 92 | 0 | 132,246 | 0 | 0 | 132,338 | |
Shares Issued Through the Exercise of Stock Options | 1 | 0 | 566 | 0 | 0 | 567 | |
Beginning balance, value at Mar. 31, 2019 | 939 | 299,230 | 642,943 | 0 | 0 | 943,112 | |
Shares Issued in Connection with the DRIP (1) | [1] | 13 | 0 | 16,834 | 0 | 0 | 16,847 |
Shares Issued in Connection with At-The-Market Sales Agreement Program of 6.125% Series C Preferred Stock, net of offering costs | 0 | 13,430 | (663) | 0 | 0 | 12,767 | |
Stock Compensation Expense | 0 | 0 | 231 | 0 | 0 | 231 | |
Distributions To Common Shareholders ($0.51 per share) | 0 | 0 | (19,185) | 3,121 | 0 | (16,064) | |
Net Income | 0 | 0 | 0 | 1,628 | 0 | 1,628 | |
Preferred Dividends ($1.1484375 per share) | 0 | 0 | 0 | (4,749) | 0 | (4,749) | |
Ending balance, value at Jun. 30, 2019 | $ 952 | $ 312,660 | $ 640,160 | $ 0 | $ 0 | $ 953,772 | |
[1] | Dividend Reinvestment and Stock Purchase Plan |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Distribution to common shareholders | $ 0.17 | $ 0.17 | $ 0.51 | $ 0.51 |
Preferred Stock, Dividends Per Share, Declared | $ 0.3828125 | $ 0.3828125 | $ 1.1484375 | $ 1.1484375 |
Series C Preferred Stock [Member] | At The Market Offerings [Member] | ||||
Preferred Stock, Dividend Rate, Percentage | 6.125% | 6.125% | 6.125% | 6.125% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 1,986 | $ 43,846 |
Noncash Items Included in Net Income: | ||
Depreciation & Amortization | 35,167 | 29,156 |
Deferred Straight Line Rent | (1,352) | (1,357) |
Stock Compensation Expense | 574 | 339 |
Unrealized Holding (Gains) Losses Arising During the Periods | 38,668 | 0 |
Gain on Sale of Securities Transactions | 0 | (111) |
Gain on Sale of Real Estate Investments | 0 | (7,486) |
Changes In: | ||
Tenant & Other Receivables | 664 | 1,775 |
Prepaid Expenses | (1,185) | (1,637) |
Other Assets & Capitalized Lease Costs | 173 | (2,174) |
Accounts Payable, Accrued Expenses & Other Liabilities | 709 | 743 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 75,404 | 63,094 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of Real Estate & Intangible Assets | (113,406) | (174,919) |
Capital Improvements | (11,594) | (4,542) |
Proceeds from Sale of Real Estate Investments | 0 | 22,083 |
Return of Deposits on Real Estate | 200 | 450 |
Deposits Paid on Acquisitions of Real Estate | (6,400) | (700) |
Proceeds from Sale of Securities Available for Sale | 0 | 2,620 |
Purchase of Securities Available for Sale | (54,787) | (61,278) |
NET CASH USED IN INVESTING ACTIVITIES | (185,987) | (216,286) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net Draws (Repayments) on Loans Payable | (60,422) | 37,701 |
Proceeds from Fixed Rate Mortgage Notes Payable | 72,500 | 105,600 |
Principal Payments on Fixed Rate Mortgage Notes Payable | (50,180) | (39,444) |
Financing Costs Paid on Debt | (444) | (1,066) |
Proceeds from the Exercise of Stock Options | 567 | 570 |
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs | 132,338 | 0 |
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs | 24,049 | 30,992 |
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments | 44,618 | 58,429 |
Preferred Dividends Paid | (13,520) | (12,549) |
Common Dividends Paid, net of Reinvestments | (34,616) | (30,375) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 114,890 | 149,858 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,307 | (3,334) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 9,324 | 10,226 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 13,631 | $ 6,892 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Series C Preferred Stock [Member] | At The Market Offerings [Member] | ||||
Preferred stock, dividend rate | 6.125% | 6.125% | 6.125% | 6.125% |
ORGANIZATION AND ACCOUNTING POL
ORGANIZATION AND ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES Monmouth Real Estate Investment Corporation, a Maryland corporation, together with its consolidated subsidiaries (we, our, us, the Company or MREIC), operates as a real estate investment trust (REIT) deriving its income primarily from real estate rental operations. We were founded in 1968 and are one of the oldest public equity REITs in the world. As of June 30, 2019, we owned 113 properties with total square footage of 21.8 million, which was 98.9% occupied, as compared to 111 properties with total square footage of 21.2 million, which was 99.6% occupied as of September 30, 2018. Subsequent to quarter end our occupancy increased to 99.4% . These properties are located in 30 states: Alabama, Arizona, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. As of the quarter ended June 30, 2019, our weighted average lease maturity was 7.8 years and our annualized average base rent per occupied square foot was $ 6.23 . As of June 30, 2019, the weighted average building age, based on the square footage of our buildings, was 9.1 years. We also own a portfolio of REIT investment securities, which we generally limit to no more than approximately 10% of our undepreciated assets (which is our total assets, excluding accumulated depreciation). We intend to reduce our portfolio of REIT investment securities to be no more than approximately 5% of our undepreciated assets by our 2020 fiscal yearend. 2.1 171.0 8.2% We have elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the Code), and we intend to maintain our qualification as a REIT in the future. As a qualified REIT, with limited exceptions, we will not be taxed under Federal and certain state income tax laws at the corporate level on taxable income that we distribute to our shareholders. For special tax provisions applicable to REITs, refer to Sections 856-860 of the Code. We are subject to franchise taxes in several of the states in which we own properties. In December 2017, as part of the Tax Cuts and Jobs Act of 2017 (the TCJA), Section 199A was added to the Code and became effective for tax years beginning after December 31, 2017 and before January 1, 2026. Under the TCJA, subject to certain income limitations, an individual taxpayer and estates and trusts may deduct 20% The interim Consolidated Financial Statements furnished herein have been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) applicable to interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation, have been included. Operating results for the three and nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our annual report on Form 10-K for the fiscal year ended September 30, 2018. Use of Estimates In preparing the financial statements in accordance with U.S. GAAP, we are required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates and assumptions. Reclassification Certain prior period amounts in the accompanying Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. Stock Compensation Plan We account for awards of stock, stock options and restricted stock in accordance with ASC 718-10, “Compensation-Stock Compensation.” ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of stock awards and restricted stock awards is equal to the fair value of our stock on the grant date. The amortization of compensation costs for the awards of stock, stock option grants and restricted stock are included in General and Administrative Expenses in the accompanying Consolidated Statements of Income (Loss) and amounted to $ 231,000 98,000 $574,000 339,000 During the nine months ended June 30, 2019 and 2018, the following stock options, which vest one year after grant date, were granted under our Stock Option Plan: SUMMARY OF STOCK OPTIONS OUTSTANDING Date of Grant Number of Employees Number of Shares (in thousands) Option Price Expiration Date 1/10/19 1 65 $ 12.86 1/10/27 12/10/18 12 385 $ 13.64 12/10/26 1/3/18 1 65 $ 17.80 1/3/26 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS Fiscal 2019 Fiscal 2018 Dividend yield 5.03 % 3.82 % Expected volatility 17.17 % 16.45 % Risk-free interest rate 2.88 % 2.37 % Expected lives (years) 8 8 Estimated forfeitures 0 0 The weighted-average fair value of options granted during the nine months ended June 30, 2019 and 2018 was $ 1.17 1.84 During the nine months ended June 30, 2019 and 2018, 25,000 12,500 65,000 8.72 567,000 40,000 14.24 570,000 1.2 1.1 1.2 Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes became effective for our fiscal year beginning October 1, 2018. The most significant change for us, once ASU 2016-01 was adopted, was the accounting treatment for our investments in marketable securities that are classified as available for sale. The accounting treatment used for our Consolidated Financial Statements through Fiscal 2018 was that our investments in marketable securities, classified as available for sale, were carried at fair value, with net unrealized holding gains and losses being excluded from earnings and reported as a separate component of Shareholders’ Equity until realized and the change in net unrealized holding gains and losses being reflected as comprehensive income (loss). Under ASU 2016-01, effective October 1, 2018, these marketable securities continue to be measured at fair value, however, the changes in net unrealized holding gains and losses are now recognized through net income on our Consolidated Statements of Income (Loss). On October 1, 2018, unrealized net holding losses of $ 24.7 In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessee and lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The most significant changes related to lessor accounting under ASU 2016-02 include bifurcating revenue into lease and non-lease components and the new standard’s narrow definition of initial direct costs for leases. Since our revenue is primarily derived from leasing activities from long-term net-leases and since we currently do not capitalize indirect costs for leases, we believe that we will continue to account for our leases and related leasing costs in substantially the same manner as we currently do once the adoption of the ASU 2016-02 becomes effective. In addition, the guidance requires lessees to recognize assets and liabilities for operating leases with lease terms greater than twelve months on the balance sheet. Therefore, the most significant impact for us may be the recognition of our corporate office lease, while accounting where we are the lessor will remain substantially the same. Upon adoption, we may recognize an asset and lease liability equal to the present value of the minimum lease payments due under our corporate office lease. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in ASU 2018-10 affects narrow aspects of the guidance issued earlier in ASU 2016-02 by removing certain inconsistencies and providing additional clarification related to the guidance issued earlier. We are currently evaluating the potential impact this standard may have on our consolidated financial statements and expect that the adoption of this standard will not have a significant impact on our consolidated financial statements and related disclosures. In December 2018, the FASB issued ASU 2018-20 “Narrow-Scope Improvements for Lessors.” Similar to ASU 2018-10, 2018-20 affects narrow aspects of the guidance issued earlier in ASU 2016-02 as well by providing additional clarification related to the guidance issued earlier. The most significant changes related to lessor accounting under ASU 2018-20 is the clarification of how to treat payments made by a lessee directly to a third party, such as real estate taxes paid by the lessee directly to the taxing authority, whereby items paid directly by the lessee to a third party should not be reflected in the lessors income statement and, thus, should not be bifurcated and included in revenue and operating expenses. A majority of our reimbursable expenses are paid by us and are billed back to our lessees. Therefore, these reimbursable expenses will continue to be presented separately by bifurcating these revenue and expense items in our Consolidated Statements of Income. We are currently evaluating the potential impact this standard may have on our consolidated financial statements and expect that the adoption of this standard will not have a significant impact on our consolidated financial statements and related disclosures, other than any of these types of payments made by a lessee directly to a third party will no longer be presented on a gross basis in our Consolidated Statements of Income, which will have a net zero effect on our Net Income Attributable to Common Shareholders. ASU 2016-02, 2018-10 and 2018-20 are effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2018. Therefore, we expect to adopt these standards effective October 1, 2019. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.” The FASB issued further guidance in ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” that provides clarifying guidance in certain narrow areas and adds some practical expedients. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The effective date of ASU 2014-09 was extended by one year by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The new standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. Therefore, we adopted the standard effective October 1, 2018. Our revenue is primarily derived from leasing activities and historically our property dispositions have been cash sales with no contingencies and no future involvement in the property. Since this standard applies to all contracts with customers except those that are within the scope of other guidance, such as leases, the adoption of this standard did not have a significant impact on our consolidated financial statements and related disclosures. We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements. Segment Reporting & Financial Information Our primary business is the ownership and management of real estate properties. We invest in well-located, modern, single-tenant, industrial buildings, leased primarily to investment-grade tenants or their subsidiaries on long-term net-leases. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. We evaluate financial performance using Net Operating Income (NOI) from property operations. NOI is a non-GAAP financial measure, which we define as recurring Rental and Reimbursement Revenue, less Real Estate Taxes and Operating Expenses, such as insurance, utilities and repairs and maintenance. We have aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities, including the fact that they are operated as industrial properties subject to long-term net-leases primarily to investment-grade tenants or their subsidiaries. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 2 – NET INCOME PER SHARE Basic Net Income per Common Share is calculated by dividing Net Income Attributable to Common Shareholders by the weighted-average number of common shares outstanding during the period. Diluted Net Income per Common Share is calculated by dividing Net Income Attributable to Common Shareholders by the weighted-average number of common shares outstanding for the period and, when dilutive, the potential net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. In periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation because they are anti-dilutive. In addition, common stock equivalents of 94,000 158,000 100,000 178,000 305,000 65,000 305,000 65,000 |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | NOTE 3 – REAL ESTATE INVESTMENTS On October 19, 2018, we purchased a newly constructed 347,000 62.0 100% 15 June 2032 $85.2 15 $55.0 4.13% $5.3 On November 30, 2018, we purchased a newly constructed 127,000 29.4 100% 10 October 2028 27.8 15 $17.5 4.40% $1.8 FedEx Ground Package System, Inc.’s ultimate parent, FedEx Corporation is a publicly-owned company and financial information related to this entity is available at the SEC’s website, www.sec.gov www.sec.gov We evaluated the property acquisitions which took place during the nine months ended June 30, 2019, to determine whether an integrated set of assets and activities meets the definition of a business, pursuant to ASU 2017-01. Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. Accordingly, we accounted for the two properties purchased during fiscal 2019 as asset acquisitions and allocated the total cash consideration, including transaction costs of approximately $324,000 The financial information set forth below summarizes our purchase price allocation for these two properties acquired during the nine months ended June 30, 2019 that are accounted for as asset acquisitions (in thousands): SCHEDULE OF PROPERTIES ACQUIRED DURING PERIOD ACCOUNTED FOR ASSET ACQUISITIONS Land $ 11,778 Building 99,741 In-Place Leases 1,886 The following table summarizes the operating results included in our consolidated statements of income (loss) for the three and nine months ended June 30, 2019 for the two properties acquired during the nine months ended June 30, 2019 (in thousands): SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME FOR PROPERTIES ACQUIRED Three Months Ended 6/30/2019 Nine Months Rental Revenues $ 1,775 $ 4,871 Net Income Attributable to Common Shareholders 331 1,131 Subsequent to the quarter end, on July 26, 2019, we purchased a newly constructed 350,000 45.6 100% 10 June 2029 $25.5 15 $17.0 4.25% $1.7 www.standardandpoors.com www.moodys.com Expansions During the nine months ended June 30, 2019, we completed a 155,000 $8.6 15 February 2030 to February 2034 $821,000 $980,000 $4.22 $1.8 $4.65 2% $2.1 10.7 $7.0 3.85% 3.77% $6.8 Dispositions We have not had any dispositions thus far in fiscal 2019. During fiscal 2018, there were two leases that were set to expire with Kellogg Sales Company (Kellogg) at our 65,000 50,000 $4.9 $4.6 $6.2 $5.9 $210,000 80% On June 1, 2018, we sold a 68,370 $5.8 $5.5 225,000 On June 5, 2018, we sold an 87,500 $6.4 $6.1 214,000 These four properties sold during fiscal 2018, resulted in a U.S. GAAP net realized gain of approximately $7.5 51% $1.2 6% Since the sale of these four properties during fiscal 2018 did not represent a strategic shift that had a major effect on our operations and financial results, the operations generated from these properties were not included in Discontinued Operations. The following table summarizes the operations of the four properties that were sold during the prior year, which are included in the accompanying Consolidated Statements of Income for the three and nine months ended June 30, 2018 (in thousands). SUMMARY OF INCOME FROM PROPERTIES SOLD DURING THE PRIOR YEAR Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Rental and Reimbursement Revenue $ 0 $ 93 $ 0 $ 950 Lease Termination Income 0 0 0 210 Real Estate Taxes 0 (5 ) 0 (233 ) Operating Expenses 0 (26 ) 0 (110 ) Depreciation & Amortization 0 (16 ) 0 (79 ) Interest Expense, including Amortization of Financing Costs 0 (12 ) 0 (38 ) Income from Operations 0 34 0 700 Gain on Sale of Real Estate Investments 0 2,097 0 7,486 Net Income $ 0 $ 2,131 $ 0 $ 8,186 Pro-forma information The following unaudited pro-forma condensed financial information has been prepared utilizing our historical financial statements and the effect of additional revenue and expenses generated from property acquired and expanded during fiscal 2019 to date, and during fiscal 2018, assuming that the acquisitions and completed expansions had occurred as of October 1, 2017, after giving effect to certain adjustments including: (a) Rental Revenue adjustments resulting from the straight-lining of scheduled rent increases, (b) Interest Expense resulting from the assumed increase in Fixed Rate Mortgage Notes Payable and Loans Payable related to the new acquisitions, and (c) Depreciation Expense related to the new acquisitions and expansions. In addition, Net Income (Loss) Attributable to Common Shareholders excludes the operations, including the exclusion of the related realized gain, of the four properties sold during fiscal 2018. Furthermore, the net proceeds raised from our public offering of 9.2 6.125% The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions and expansions reflected herein been consummated on the dates indicated or that will be achieved in the future. SCHEDULE OF PRO FORMA INFORMATION Three Months Ended ( in thousands, except per share amounts 6/30/2019 6/30/2018 As Reported Pro-forma As Reported Pro-forma Rental Revenue $ 33,127 $ 33,554 $ 29,256 $ 33,756 Net Income (Loss) Attributable to Common $ ( ) $ (2,887 ) $ 10,323 $ 8,997 Basic and Diluted Net Income (Loss) per $ (0.03 ) $ (0.03 ) $ 0.13 $ 0.09 Nine Months Ended ( in thousands, except per share amounts 6/30/2019 6/30/2018 As Reported Pro-forma As Reported Pro-forma Rental Revenue $ 98,678 $ 100,665 $ 85,559 $ 100,979 Net Income (Loss) Attributable to Common Shareholders $ (11,664 ) $ (10,750 ) $ 31,033 $ 26,356 Basic and Diluted Net Income (Loss) per Share Attributable to Common Shareholders $ (0.13 ) $ (0.11 ) $ 0.40 $ 0.28 Tenant Concentration We have a concentration of FedEx Corporation (FDX) and FDX subsidiary-leased properties, consisting of 61 separate stand-alone leases covering 10.5 9.4 8.8 48% 5% 43% 46% 7% 39% no other tenant accounted for 5% or more of our total rental space Annualized Rental and Reimbursement Revenue from FDX and its subsidiaries is estimated to be approximately 60% 5% 55% 56% 7% 49% No other tenant accounted for 5% or more of our total Rental FDX is a publicly-owned company and financial information related to this entity is available at the SEC’s website, www.sec.gov www.standardandpoors.com www.moodys.com In addition to real estate property holdings, we held $171.0 8.2% |
SECURITIES AVAILABLE FOR SALE A
SECURITIES AVAILABLE FOR SALE AT FAIR VALUE | 9 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE AT FAIR VALUE | NOTE 4 – SECURITIES AVAILABLE FOR SALE AT FAIR VALUE Our Securities Available for Sale at Fair Value consists primarily of marketable common and preferred stock of other REITs with a fair value of $ 171.0 million as of June 30, 2019. We generally limit our investment in marketable securities to no more than approximately 10% Total assets excluding accumulated depreciation were $ 2.1 billion as of June 30, 2019. We held $ 171.0 million in marketable REIT securities as of June 30, 2019, representing 8.2% of our undepreciated assets. The REIT securities portfolio provides us with additional liquidity, diversification and income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. UMH Properties Inc [Member] During the nine months ended June 30, 2019, we did not sell or redeem any securities. In addition, we recognized dividend income on our investments in securities of $ 3.7 11.5 54.8 51,000 651,000 12.66 1.2 12.7 15.4 3.1% 100,000 8.00% 2.5 2.6 2.8 As of June 30, 2019, we had total net unrealized holding losses on our securities portfolio of $ 63.4 38.7 24.7 We consider many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment. We normally hold REIT securities long-term and have the ability and intent to hold these securities to recovery. We have determined that none of our security holdings are other than temporarily impaired and therefore all unrealized gains and losses from these securities have been recognized as Unrealized Holding Gains (Losses) Arising During the Periods in our Consolidated Statements of Income (Loss). If we were to determine any of our securities to be other than temporarily impaired, we would record an impairment charge in our Consolidated Statements of Income (Loss). |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5 – DEBT For the three months ended June 30, 2019 and 2018, amortization of financing costs included in interest expense were $ 319,000 315,000 956,000 911,000 As of June 30, 2019, we owned 113 properties, of which 60 carried Fixed Rate Mortgage Notes Payable with outstanding principal balances totaling $ 742.1 The following is a summary of our Fixed Rate Mortgage Notes Payable as of June 30, 2019 and September 30, 2018 (in thousands): SUMMARY OF FIXED RATE MORTGAGE NOTES PAYABLE 6/30/2019 9/30/2018 Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Fixed Rate Mortgage Notes Payable $ 742,087 4.03 % $ 719,768 4.07 % Debt Issuance Costs $ 11,636 $ 11,716 Accumulated Amortization of Debt Issuance Costs (3,644 ) (3,494 ) Unamortized Debt Issuance Costs $ 7,992 $ 8,222 Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs $ 734,095 $ 711,546 (1) Weighted average interest rate excludes amortization of debt issuance costs. As of June 30, 2019, interest payable on these mortgages were at fixed rates ranging from 3.45% 7.00% 4.03% 4.07% 4.11% 11.5 11.7 11.5 In connection with the two properties acquired during the nine months ended June 30, 2019, which are located in Trenton, NJ and Savannah, GA (as described in Note 3), we obtained two 15 72.5 4.20% During the nine months ended June 30, 2019, we fully repaid a 6.0% 4.8 7.60% 7.1 5.54% 224,000 January 2020 7.00% 229,000 October 2019 6.07% 121,000 November 2019 As of June 30, 2019, Loans Payable represented the amount drawn down on our $ 200.0 110.0 16.2 The Facility matures in September 2020 50.0 Availability under the Facility is limited to 60% of the value of the borrowing base properties. The value of the borrowing base properties is determined by applying a capitalization rate to the NOI generated by our unencumbered properties. Effective March 22, 2018, the capitalization rate applied to our NOI generated by our unencumbered properties was lowered from 7.0% to 6.5%, thus increasing the value of the borrowing base properties under the terms of the agreement. Borrowings under the Facility will, at our election, either i) bear interest at LIBOR plus 140 basis points to 220 basis points, depending on our leverage ratio, or ii) bear interest at BMO’s prime lending rate plus 40 basis points to 120 basis points, depending on our leverage ratio. Our borrowings as of June 30, 2019, based on our leverage ratio, bear interest at LIBOR plus 170 basis points, which represented an interest rate of 4.10%. 100.0 300.0 We also invest in equity securities of other REITs which provide us with additional liquidity, diversification and income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. From time to time, we may purchase these securities on margin when the interest and dividend yields exceed the cost of funds. In general, we may borrow up to 50% 171.0 16.2 3.0% |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 6 – SHAREHOLDERS’ EQUITY Our authorized stock as of June 30, 2019 consisted of 188.0 95.2 16.4 6.125% 12.5 200.0 0.01 none Common Stock In October 2018, we completed a public offering of 9.2 1.2 15.00 132.3 We raised $ 57.5 12.8 4.4 47.5 0.51 12.8 27% On July 1, 2019 0.17 September 16, 2019 August 15, 2019 On January 16, 2019, our Board of Directors authorized a $ 40.0 50.0 6.125% During the nine months ended June 30, 2019, we paid $ 13.5 1.1484375 1.6 6.125% 1.53125 6.125% 6.125% 6.125% 25.00 July 1, 2019 0.3828125 September 16, 2019 August 15, 2019 On June 29, 2017, we entered into a Preferred Stock At-The-Market Sales Agreement Program with B. Riley FBR, Inc., or B. Riley (formerly FBR Capital Markets & Co.), that provided for the offer and sale of shares of our 6.125% 100.0 125.0 6.125% 96.5 4.1 24.82 99.9 1.0 24.08 24.0 94.6 As of June 30, 2019, 12.5 million shares of the 6.125% Series C Preferred Stock were issued and outstanding. Subsequent to the June 30, 2019 quarter end, through July 18, 2019, we sold 277,000 24.26 6.6 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7 - FAIR VALUE MEASUREMENTS We measure certain financial assets and liabilities at fair value on a recurring basis, including Securities Available for Sale at Fair Value. Our financial assets consist mainly of marketable REIT securities. The fair value of these financial assets was determined using the following inputs at June 30, 2019 and September 30, 2018 (in thousands): SUMMARY OF FAIR VALUE OF FINANCIAL ASSETS Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of June 30, 2019: Equity Securities – Preferred Stock $ 13,024 $ 13,024 $ 0 $ 0 Equity Securities – Common Stock 158,014 158,014 0 0 Mortgage Backed Securities 2 2 0 0 Total Securities Available for Sale at Fair Value $ 171,040 $ 171,040 $ 0 $ 0 As of September 30, 2018: Equity Securities – Preferred Stock $ 7,310 $ 7,310 $ 0 $ 0 Equity Securities – Common Stock 147,608 147,608 0 0 Mortgage Backed Securities 3 3 0 0 Total Securities Available for Sale at Fair Value $ 154,921 $ 154,921 $ 0 $ 0 In addition to our investments in Securities Available for Sale at Fair Value, we are required to disclose certain information about fair values of other financial instruments. Estimates of fair value are made at a specific point in time based upon, where available, relevant market prices and information about the financial instrument. Such estimates do not include any premium or discount that could result from offering for sale at one time our entire holdings of financial instruments. For a portion of our other financial instruments, no quoted market value exists. Therefore, estimates of fair value are necessarily based on a number of significant assumptions, many of which involve events outside the control of management. Such assumptions include assessments of current economic conditions, perceived risks associated with these financial instruments and their counterparties; future expected loss experience and other factors. Given the uncertainties surrounding these assumptions, the reported fair values represent estimates only, and therefore cannot be compared to the historical accounting model. The use of different assumptions or methodologies is likely to result in significantly different fair value estimates. The fair value of Cash and Cash Equivalents approximates their current carrying amounts since all such items are short term in nature. The fair value of variable rate Loans Payable approximates their current carrying amounts, since such amounts payable are at approximately a weighted-average current market rate of interest. The estimated fair value of Fixed Rate Mortgage Notes Payable is based on discounting the future cash flows at a yearend risk adjusted borrowing rate currently available to us for issuance of debt with similar terms and remaining maturities. These fair value measurements fall within level 2 of the fair value hierarchy. At June 30, 2019, the Fixed Rate Mortgage Notes Payable fair value (estimated based upon expected cash outflows discounted at current market rates) amounted to $745.6 $742.1 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 8 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest during the nine months ended June 30, 2019 and 2018 was $27.1 $23.0 During the nine months ended June 30, 2019 and 2018, we had dividend reinvestments of $12.8 $9.5 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | NOTE 9 – CONTINGENCIES AND COMMITMENTS In addition to the property purchased subsequent to the quarter end on July 26, 2019, we have entered into agreements to purchase four new build-to-suit, industrial buildings that are currently being developed in Indiana, North Carolina and Ohio (2), totaling 1.5 10 15 14.5 219.2 774,000 50% 15 613,000 40% 15 www.standardandpoors.com www.moodys.com 18 52.5 4.27% We obtained a commitment to enter into a 10.7 7.0 3.85% 155,000 8.6 The maturity of the second mortgage loan will coincide with the maturity of the property’s first fully-amortizing mortgage loan 3.77% 6.8 15 February 2030 to February 2034 821,000 980,000 4.22 1.8 4.65 2% 2.1 We have entered into a new ten year 13,000 410,000 31.00 5,700 137,000 24.17 2.5 From time to time, we may be subject to claims and litigation in the ordinary course of business. We do not believe that any such claim or litigation will have a material adverse effect on the Consolidated Balance Sheets or results of operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS Material subsequent events have been evaluated and are disclosed herein. Subsequent to the quarter end, on July 26, 2019, we purchased a newly constructed 350,000 45.6 100% 10 June 2029 $25.5 15 17.0 4.25% 1.7 www.standardandpoors.com www.moodys.com Effective July 1, 2019, we entered into a new ten June 30, 2029 92,000 $688,000 $7.50 3.0% $789,000 $8.60 $7.35 17.0% 2.0% $1.75 Subsequent to the quarter end, we prepaid a 7.00% $229,000 October 2019 6.07% $121,000 November 2019 On July 1, 2019, $0.17 September 16, 2019 August 15, 2019 On July 1, 2019 , our Board of Directors declared a preferred dividend of $0.3828125 per share to be paid September 16, 2019 August 15, 2019 Subsequent to the June 30, 2019 quarter end, through July 18, 2019, we sold 277,000 $24.26 $6.6 |
ORGANIZATION AND ACCOUNTING P_2
ORGANIZATION AND ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with U.S. GAAP, we are required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates and assumptions. |
Reclassification | Reclassification Certain prior period amounts in the accompanying Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. |
Stock Compensation Plan | Stock Compensation Plan We account for awards of stock, stock options and restricted stock in accordance with ASC 718-10, “Compensation-Stock Compensation.” ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of stock awards and restricted stock awards is equal to the fair value of our stock on the grant date. The amortization of compensation costs for the awards of stock, stock option grants and restricted stock are included in General and Administrative Expenses in the accompanying Consolidated Statements of Income (Loss) and amounted to $ 231,000 98,000 $574,000 339,000 During the nine months ended June 30, 2019 and 2018, the following stock options, which vest one year after grant date, were granted under our Stock Option Plan: SUMMARY OF STOCK OPTIONS OUTSTANDING Date of Grant Number of Employees Number of Shares (in thousands) Option Price Expiration Date 1/10/19 1 65 $ 12.86 1/10/27 12/10/18 12 385 $ 13.64 12/10/26 1/3/18 1 65 $ 17.80 1/3/26 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS Fiscal 2019 Fiscal 2018 Dividend yield 5.03 % 3.82 % Expected volatility 17.17 % 16.45 % Risk-free interest rate 2.88 % 2.37 % Expected lives (years) 8 8 Estimated forfeitures 0 0 The weighted-average fair value of options granted during the nine months ended June 30, 2019 and 2018 was $ 1.17 1.84 During the nine months ended June 30, 2019 and 2018, 25,000 12,500 65,000 8.72 567,000 40,000 14.24 570,000 1.2 1.1 1.2 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes became effective for our fiscal year beginning October 1, 2018. The most significant change for us, once ASU 2016-01 was adopted, was the accounting treatment for our investments in marketable securities that are classified as available for sale. The accounting treatment used for our Consolidated Financial Statements through Fiscal 2018 was that our investments in marketable securities, classified as available for sale, were carried at fair value, with net unrealized holding gains and losses being excluded from earnings and reported as a separate component of Shareholders’ Equity until realized and the change in net unrealized holding gains and losses being reflected as comprehensive income (loss). Under ASU 2016-01, effective October 1, 2018, these marketable securities continue to be measured at fair value, however, the changes in net unrealized holding gains and losses are now recognized through net income on our Consolidated Statements of Income (Loss). On October 1, 2018, unrealized net holding losses of $ 24.7 In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessee and lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The most significant changes related to lessor accounting under ASU 2016-02 include bifurcating revenue into lease and non-lease components and the new standard’s narrow definition of initial direct costs for leases. Since our revenue is primarily derived from leasing activities from long-term net-leases and since we currently do not capitalize indirect costs for leases, we believe that we will continue to account for our leases and related leasing costs in substantially the same manner as we currently do once the adoption of the ASU 2016-02 becomes effective. In addition, the guidance requires lessees to recognize assets and liabilities for operating leases with lease terms greater than twelve months on the balance sheet. Therefore, the most significant impact for us may be the recognition of our corporate office lease, while accounting where we are the lessor will remain substantially the same. Upon adoption, we may recognize an asset and lease liability equal to the present value of the minimum lease payments due under our corporate office lease. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in ASU 2018-10 affects narrow aspects of the guidance issued earlier in ASU 2016-02 by removing certain inconsistencies and providing additional clarification related to the guidance issued earlier. We are currently evaluating the potential impact this standard may have on our consolidated financial statements and expect that the adoption of this standard will not have a significant impact on our consolidated financial statements and related disclosures. In December 2018, the FASB issued ASU 2018-20 “Narrow-Scope Improvements for Lessors.” Similar to ASU 2018-10, 2018-20 affects narrow aspects of the guidance issued earlier in ASU 2016-02 as well by providing additional clarification related to the guidance issued earlier. The most significant changes related to lessor accounting under ASU 2018-20 is the clarification of how to treat payments made by a lessee directly to a third party, such as real estate taxes paid by the lessee directly to the taxing authority, whereby items paid directly by the lessee to a third party should not be reflected in the lessors income statement and, thus, should not be bifurcated and included in revenue and operating expenses. A majority of our reimbursable expenses are paid by us and are billed back to our lessees. Therefore, these reimbursable expenses will continue to be presented separately by bifurcating these revenue and expense items in our Consolidated Statements of Income. We are currently evaluating the potential impact this standard may have on our consolidated financial statements and expect that the adoption of this standard will not have a significant impact on our consolidated financial statements and related disclosures, other than any of these types of payments made by a lessee directly to a third party will no longer be presented on a gross basis in our Consolidated Statements of Income, which will have a net zero effect on our Net Income Attributable to Common Shareholders. ASU 2016-02, 2018-10 and 2018-20 are effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2018. Therefore, we expect to adopt these standards effective October 1, 2019. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.” The FASB issued further guidance in ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” that provides clarifying guidance in certain narrow areas and adds some practical expedients. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The effective date of ASU 2014-09 was extended by one year by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The new standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. Therefore, we adopted the standard effective October 1, 2018. Our revenue is primarily derived from leasing activities and historically our property dispositions have been cash sales with no contingencies and no future involvement in the property. Since this standard applies to all contracts with customers except those that are within the scope of other guidance, such as leases, the adoption of this standard did not have a significant impact on our consolidated financial statements and related disclosures. We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements. |
Segment Reporting & Financial Information | Segment Reporting & Financial Information Our primary business is the ownership and management of real estate properties. We invest in well-located, modern, single-tenant, industrial buildings, leased primarily to investment-grade tenants or their subsidiaries on long-term net-leases. We review operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. We evaluate financial performance using Net Operating Income (NOI) from property operations. NOI is a non-GAAP financial measure, which we define as recurring Rental and Reimbursement Revenue, less Real Estate Taxes and Operating Expenses, such as insurance, utilities and repairs and maintenance. We have aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities, including the fact that they are operated as industrial properties subject to long-term net-leases primarily to investment-grade tenants or their subsidiaries. |
ORGANIZATION AND ACCOUNTING P_3
ORGANIZATION AND ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF STOCK OPTIONS OUTSTANDING | During the nine months ended June 30, 2019 and 2018, the following stock options, which vest one year after grant date, were granted under our Stock Option Plan: SUMMARY OF STOCK OPTIONS OUTSTANDING Date of Grant Number of Employees Number of Shares (in thousands) Option Price Expiration Date 1/10/19 1 65 $ 12.86 1/10/27 12/10/18 12 385 $ 13.64 12/10/26 1/3/18 1 65 $ 17.80 1/3/26 |
SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS Fiscal 2019 Fiscal 2018 Dividend yield 5.03 % 3.82 % Expected volatility 17.17 % 16.45 % Risk-free interest rate 2.88 % 2.37 % Expected lives (years) 8 8 Estimated forfeitures 0 0 |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
SCHEDULE OF PROPERTIES ACQUIRED DURING PERIOD ACCOUNTED FOR ASSET ACQUISITIONS | The financial information set forth below summarizes our purchase price allocation for these two properties acquired during the nine months ended June 30, 2019 that are accounted for as asset acquisitions (in thousands): SCHEDULE OF PROPERTIES ACQUIRED DURING PERIOD ACCOUNTED FOR ASSET ACQUISITIONS Land $ 11,778 Building 99,741 In-Place Leases 1,886 |
SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME FOR PROPERTIES ACQUIRED | The following table summarizes the operating results included in our consolidated statements of income (loss) for the three and nine months ended June 30, 2019 for the two properties acquired during the nine months ended June 30, 2019 (in thousands): SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME FOR PROPERTIES ACQUIRED Three Months Ended 6/30/2019 Nine Months Rental Revenues $ 1,775 $ 4,871 Net Income Attributable to Common Shareholders 331 1,131 |
SUMMARY OF INCOME FROM PROPERTIES SOLD DURING THE PRIOR YEAR | The following table summarizes the operations of the four properties that were sold during the prior year, which are included in the accompanying Consolidated Statements of Income for the three and nine months ended June 30, 2018 (in thousands). SUMMARY OF INCOME FROM PROPERTIES SOLD DURING THE PRIOR YEAR Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 6/30/2019 6/30/2018 6/30/2019 6/30/2018 Rental and Reimbursement Revenue $ 0 $ 93 $ 0 $ 950 Lease Termination Income 0 0 0 210 Real Estate Taxes 0 (5 ) 0 (233 ) Operating Expenses 0 (26 ) 0 (110 ) Depreciation & Amortization 0 (16 ) 0 (79 ) Interest Expense, including Amortization of Financing Costs 0 (12 ) 0 (38 ) Income from Operations 0 34 0 700 Gain on Sale of Real Estate Investments 0 2,097 0 7,486 Net Income $ 0 $ 2,131 $ 0 $ 8,186 |
SCHEDULE OF PRO FORMA INFORMATION | The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions and expansions reflected herein been consummated on the dates indicated or that will be achieved in the future. SCHEDULE OF PRO FORMA INFORMATION Three Months Ended ( in thousands, except per share amounts 6/30/2019 6/30/2018 As Reported Pro-forma As Reported Pro-forma Rental Revenue $ 33,127 $ 33,554 $ 29,256 $ 33,756 Net Income (Loss) Attributable to Common $ ( ) $ (2,887 ) $ 10,323 $ 8,997 Basic and Diluted Net Income (Loss) per $ (0.03 ) $ (0.03 ) $ 0.13 $ 0.09 Nine Months Ended ( in thousands, except per share amounts 6/30/2019 6/30/2018 As Reported Pro-forma As Reported Pro-forma Rental Revenue $ 98,678 $ 100,665 $ 85,559 $ 100,979 Net Income (Loss) Attributable to Common Shareholders $ (11,664 ) $ (10,750 ) $ 31,033 $ 26,356 Basic and Diluted Net Income (Loss) per Share Attributable to Common Shareholders $ (0.13 ) $ (0.11 ) $ 0.40 $ 0.28 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
SUMMARY OF FIXED RATE MORTGAGE NOTES PAYABLE | The following is a summary of our Fixed Rate Mortgage Notes Payable as of June 30, 2019 and September 30, 2018 (in thousands): SUMMARY OF FIXED RATE MORTGAGE NOTES PAYABLE 6/30/2019 9/30/2018 Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Fixed Rate Mortgage Notes Payable $ 742,087 4.03 % $ 719,768 4.07 % Debt Issuance Costs $ 11,636 $ 11,716 Accumulated Amortization of Debt Issuance Costs (3,644 ) (3,494 ) Unamortized Debt Issuance Costs $ 7,992 $ 8,222 Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs $ 734,095 $ 711,546 (1) Weighted average interest rate excludes amortization of debt issuance costs. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
SUMMARY OF FAIR VALUE OF FINANCIAL ASSETS | The fair value of these financial assets was determined using the following inputs at June 30, 2019 and September 30, 2018 (in thousands): SUMMARY OF FAIR VALUE OF FINANCIAL ASSETS Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of June 30, 2019: Equity Securities – Preferred Stock $ 13,024 $ 13,024 $ 0 $ 0 Equity Securities – Common Stock 158,014 158,014 0 0 Mortgage Backed Securities 2 2 0 0 Total Securities Available for Sale at Fair Value $ 171,040 $ 171,040 $ 0 $ 0 As of September 30, 2018: Equity Securities – Preferred Stock $ 7,310 $ 7,310 $ 0 $ 0 Equity Securities – Common Stock 147,608 147,608 0 0 Mortgage Backed Securities 3 3 0 0 Total Securities Available for Sale at Fair Value $ 154,921 $ 154,921 $ 0 $ 0 |
SUMMARY OF STOCK OPTIONS OUTSTA
SUMMARY OF STOCK OPTIONS OUTSTANDING (Details) shares in Thousands | 9 Months Ended | |
Jun. 30, 2019Employee$ / sharesshares | Jun. 30, 2018Employee$ / sharesshares | |
Employee Stock Option One [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Date of Grant | Jan. 10, 2019 | |
Number of Employees | Employee | 1 | |
Number of Shares | shares | 65 | |
Option Price | $ / shares | $ 12.86 | |
Expiration Date | Jan. 10, 2027 | |
Employee Stock Option Two [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Date of Grant | Dec. 10, 2018 | |
Number of Employees | Employee | 12 | |
Number of Shares | shares | 385 | |
Option Price | $ / shares | $ 13.64 | |
Expiration Date | Dec. 10, 2026 | |
Employee Stock Option Three [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Date of Grant | Jan. 3, 2018 | |
Number of Employees | Employee | 1 | |
Number of Shares | shares | 65 | |
Option Price | $ / shares | $ 17.80 | |
Expiration Date | Jan. 3, 2026 |
SCHEDULE OF STOCK OPTIONS, VALU
SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) - shares shares in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Dividend yield | 5.03% | 3.82% |
Expected volatility | 17.17% | 16.45% |
Risk-free interest rate | 2.88% | 2.37% |
Expected lives (years) | 8 years | 8 years |
Estimated forfeitures | 0 | 0 |
ORGANIZATION AND ACCOUNTING P_4
ORGANIZATION AND ACCOUNTING POLICIES (Details Narrative) $ / shares in Units, shares in Thousands, ft² in Millions | Jul. 01, 2019 | Jun. 30, 2019USD ($)ft²Propertiesshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft²Properties$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)ft²Properties | Oct. 02, 2018USD ($) |
Subsequent Event [Line Items] | |||||||
Number of real estate properties owned | Properties | 113 | 113 | 111 | ||||
Total square foot of property | ft² | 21.8 | 21.8 | 21.2 | ||||
Percentage of properties occupied | 98.90% | 99.60% | |||||
Weighted average lease maturity | 7 years 9 months 18 days | ||||||
Average base rent per square foot | 6.23 | ||||||
Weighted average building age, term | 9 years 1 month 6 days | ||||||
REIT investment securities, description | We also own a portfolio of REIT investment securities, which we generally limit to no more than approximately 10% of our undepreciated assets (which is our total assets, excluding accumulated depreciation). We intend to reduce our portfolio of REIT investment securities to be no more than approximately 5% of our undepreciated assets by our 2020 fiscal yearend. | ||||||
Total assets excluding accumulated depreciation | $ 2,100,000,000 | $ 2,100,000,000 | |||||
Available for sale of securities, current | 171,000,000 | $ 171,000,000 | |||||
Percentage of marketable securities to undepreciated assets | 8.20% | ||||||
Percentage that may be deducted from qualified REIT dividends for tax purposes | 20.00% | ||||||
Amortization of compensation costs included in general and administrative expenses | $ 231,000 | $ 98,000 | $ 574,000 | $ 339,000 | |||
Weighted average fair value of stock option | $ / shares | $ 1.17 | $ 1.84 | |||||
Number restricted stock shares granted | shares | 25,000 | 12,500 | |||||
Number of stock option exercised | shares | 65,000 | 40,000 | |||||
Weighted average exercise price per share | $ / shares | $ 8.72 | $ 14.24 | |||||
Total proceeds during period | $ 567,000 | $ 570,000 | |||||
Stock option shares available for grant | shares | 1,200 | 1,200 | |||||
Option to purchase shares outstanding | shares | 1,100 | ||||||
Aggregate intrinsic value of options | $ 1,200,000 | $ 1,200,000 | |||||
Unrealized net holding losses reclassed | $ 0 | $ 0 | $ 24,744,000 | $ 24,700,000 | |||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of properties occupied | 99.40% |
NET INCOME PER SHARE (Details N
NET INCOME PER SHARE (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Common stock equivalents included in the diluted weighted average shares outstanding | 94,000 | 158,000 | 100,000 | 178,000 |
Antidilutive options to purchase common stock shares | 305,000 | 65,000 | 305,000 | 65,000 |
SCHEDULE OF PROPERTIES ACQUIRED
SCHEDULE OF PROPERTIES ACQUIRED DURING PERIOD ACCOUNTED FOR ASSET ACQUISITIONS (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Purchase price allocation of properties acquired | $ 11,778 |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Purchase price allocation of properties acquired | 99,741 |
In Place Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Purchase price allocation of properties acquired | $ 1,886 |
SUMMARY OF CONSOLIDATED STATEME
SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME FOR PROPERTIES ACQUIRED (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Real Estate [Abstract] | ||
Rental Revenues | $ 1,775 | $ 4,871 |
Net Income Attributable to Common Shareholders | $ 331 | $ 1,131 |
SUMMARY OF INCOME FROM PROPERTI
SUMMARY OF INCOME FROM PROPERTIES SOLD DURING THE PRIOR YEAR (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Real Estate [Abstract] | ||||
Rental and Reimbursement Revenue | $ 0 | $ 93 | $ 0 | $ 950 |
Lease Termination Income | 0 | 0 | 0 | 210 |
Real Estate Taxes | 0 | (5) | 0 | (233) |
Operating Expenses | 0 | (26) | 0 | (110) |
Depreciation & Amortization | 0 | (16) | 0 | (79) |
Interest Expense, including Amortization of Financing Costs | 0 | (12) | 0 | (38) |
Income from Operations | 0 | 34 | 0 | 700 |
Gain on Sale of Real Estate Investments | 0 | 2,097 | 0 | 7,486 |
Net Income | $ 0 | $ 2,131 | $ 0 | $ 8,186 |
SCHEDULE OF PRO FORMA INFORMATI
SCHEDULE OF PRO FORMA INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Rental Revenue | $ 33,127 | $ 29,256 | $ 98,678 | $ 85,559 |
Net Income (Loss) Attributable to Common Shareholders | $ (3,121) | $ 10,323 | $ (11,664) | $ 31,033 |
Basic and Diluted Net Income (Loss) per Share Attributable to Common Shareholders | $ (0.03) | $ 0.13 | $ (0.13) | $ 0.40 |
Pro Forma [Member] | ||||
Rental Revenue | $ 33,554 | $ 33,756 | $ 100,665 | $ 100,979 |
Net Income (Loss) Attributable to Common Shareholders | $ (2,887) | $ 8,997 | $ (10,750) | $ 26,356 |
Basic and Diluted Net Income (Loss) per Share Attributable to Common Shareholders | $ (0.03) | $ 0.09 | $ (0.11) | $ 0.28 |
REAL ESTATE INVESTMENTS (Detail
REAL ESTATE INVESTMENTS (Details Narrative) shares in Millions | Jul. 26, 2019USD ($)aft² | Nov. 30, 2018USD ($)aft² | Oct. 19, 2018USD ($)aft² | Jun. 05, 2018USD ($)ft² | Jun. 01, 2018USD ($)ft² | Dec. 22, 2017USD ($)ft² | Dec. 18, 2017USD ($)ft² | Oct. 31, 2018shares | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($)ft² | Sep. 30, 2018USD ($) |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Transaction costs | $ 324,000 | ||||||||||
Gain on sale of property | $ 7,500,000 | ||||||||||
Percentage of gain on sale of property | 51.00% | ||||||||||
Gain on historic undepreciated cost basis | $ 1,200,000 | ||||||||||
Percentage of gain on historic undepreciated cost basis | 6.00% | ||||||||||
Common stock issued during period, shares | shares | 9.2 | ||||||||||
Weighted average lease maturity | 7 years 9 months 18 days | ||||||||||
Held marketable securities | $ 171,000,000 | ||||||||||
Marketable securities as a percentage of undepreciated assets | 8.20% | ||||||||||
Series C Cumulative Redeemable Preferred Stock [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | ||||||||||
Monroe O H [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Lease term | 15 years | ||||||||||
Mortgage loan on real estate, interest rate | 3.77% | ||||||||||
Square feet of expansion to industrial building | ft² | 155,000 | ||||||||||
Cost of building expansion | $ 8,600,000 | ||||||||||
Extended prior lease expiration date | February 2030 to February 2034 | ||||||||||
Increase in annual rent | $ 821,000 | ||||||||||
Rent prior to expansion | $ 980,000 | ||||||||||
Rent prior to expansion, per square foot | ft² | 4.22 | ||||||||||
Rent increase to after expansion | $ 1,800,000 | ||||||||||
Rent increase to after expansion, per square foot | ft² | 4.65 | ||||||||||
Increase in annual rent per year | 2.00% | ||||||||||
Average annualized rent over the term of lease | $ 2,100,000 | ||||||||||
Face amount of original mortgage | $ 6,800,000 | ||||||||||
Monroe O H [Member] | Second Mortgage Loan [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Mortgage loan amortization period | 10 years 8 months 12 days | ||||||||||
Mortgage loan on real estate, interest rate | 3.85% | ||||||||||
Face amount of new mortgage | $ 7,000,000 | ||||||||||
Kansas City M O [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Square feet of industrial building sold | ft² | 65,000 | ||||||||||
Gross proceeds from sale of property | $ 4,900,000 | ||||||||||
Net sale proceeds | $ 4,600,000 | ||||||||||
Orangeburg N Y [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Square feet of industrial building sold | ft² | 50,000 | ||||||||||
Gross proceeds from sale of property | $ 6,200,000 | ||||||||||
Net sale proceeds | $ 5,900,000 | ||||||||||
Kansas City M O And Orangeburg [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Lease termination income | $ 210,000 | ||||||||||
Weighted average of remaining rent due under each lease | 80.00% | ||||||||||
Colorado Springs C O [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Purchase of industrial building | ft² | 225,000 | ||||||||||
Gross proceeds from sale of property | $ 5,800,000 | ||||||||||
Square feet of industrial building sold | ft² | 68,370 | ||||||||||
Net proceeds from sale of property | $ 5,500,000 | ||||||||||
Ft Myers F L [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Purchase of industrial building | ft² | 214,000 | ||||||||||
Gross proceeds from sale of property | $ 6,400,000 | ||||||||||
Square feet of industrial building sold | ft² | 87,500 | ||||||||||
Net proceeds from sale of property | $ 6,100,000 | ||||||||||
Fedex And Fedex Subsidiaries [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Square feet of real estate property leased | ft² | 10,500,000 | 9,400,000 | |||||||||
Weighted average lease maturity | 8 years 9 months 18 days | ||||||||||
Percentage of real estate property leased | 48.00% | 46.00% | |||||||||
Percentage of rental space and tenant account, description | no other tenant accounted for 5% or more of our total rental space | ||||||||||
Fedex And Fedex Subsidiaries [Member] | Rental And Reimbursement Revenue [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Percentage of rental space and tenant account, description | No other tenant accounted for 5% or more of our total Rental | No other tenant accounted for 5% or more of our total Rental | |||||||||
Percentage of aggregate rental and reimbursement revenue | 60.00% | 56.00% | |||||||||
Fedex Corporation [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Percentage of real estate property leased | 5.00% | 7.00% | |||||||||
Fedex Corporation [Member] | Rental And Reimbursement Revenue [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Percentage of aggregate rental and reimbursement revenue | 5.00% | 7.00% | |||||||||
Fedex Corporation Subsidiaries [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Percentage of real estate property leased | 43.00% | 39.00% | |||||||||
Fedex Corporation Subsidiaries [Member] | Rental And Reimbursement Revenue [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Percentage of aggregate rental and reimbursement revenue | 55.00% | 49.00% | |||||||||
Industrial Buildings [Member] | Fedex Ground Package System Inc [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Purchase of industrial building | ft² | 127,000 | 347,000 | |||||||||
Area of property | a | 29.4 | 62 | |||||||||
Percentage of building area leased | 100.00% | 100.00% | |||||||||
Lease term | 10 years | 15 years | |||||||||
Lease term expiration period | October 2028 | June 2032 | |||||||||
Purchase price of industrial building | $ 27,800,000 | $ 85,200,000 | |||||||||
Mortgage loan amortization period | 15 years | 15 years | |||||||||
Face amount of mortgages | $ 17,500,000 | $ 55,000,000 | |||||||||
Mortgage loan on real estate, interest rate | 4.40% | 4.13% | |||||||||
Annual rental income over the remaining term of lease | $ 1,800,000 | $ 5,300,000 | |||||||||
Industrial Buildings [Member] | Toyota Tsusho America Inc [Member] | Subsequent Event [Member] | |||||||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||||||
Purchase of industrial building | ft² | 350,000 | ||||||||||
Area of property | a | 45.6 | ||||||||||
Percentage of building area leased | 100.00% | ||||||||||
Lease term | 10 years | ||||||||||
Lease term expiration period | June 2029 | ||||||||||
Purchase price of industrial building | $ 25,500,000 | ||||||||||
Mortgage loan amortization period | 15 years | ||||||||||
Face amount of mortgages | $ 17,000,000 | ||||||||||
Mortgage loan on real estate, interest rate | 4.25% | ||||||||||
Annual rental income over the remaining term of lease | $ 1,700,000 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE AT FAIR VALUE (Details Narrative) - USD ($) | Oct. 02, 2018 | Jun. 30, 2019 | Jun. 30, 2019 |
Marketable REIT securities fair value | $ 171,000,000 | ||
Percentage of undepreciated assets investment marketable securities | 10.00% | ||
Real estate investments assets excluding accumulated depreciation | $ 2,100,000,000 | $ 2,100,000,000 | |
Held marketable securities | 171,000,000 | $ 171,000,000 | |
Percentage of undepreciated assets | 8.20% | ||
Dividend income on investment in securities | $ 3,700,000 | $ 11,500,000 | |
Purchase of securities available for sale | 54,800,000 | ||
Net unrealized gain on securities portfolio | $ 24,700,000 | 63,400,000 | |
Unrealized holding gains losses arising during the period | 38,700,000 | ||
UMH Properties Inc [Member] | Series B Cumulative Redeemable Preferred Stock [Member] | |||
Marketable REIT securities fair value | $ 2,600,000 | ||
Available for sale securities, shares | 100,000 | ||
Dividend rate of preferred stock | 8.00% | ||
Shares owned, cost | $ 2,500,000 | ||
UMH Properties Inc [Member] | Common And Preferred Stock [Member] | |||
Net unrealized gain on securities portfolio | 2,800,000 | ||
UMH Properties Inc [Member] | Common Stock [Member] | |||
Marketable REIT securities fair value | $ 15,400,000 | ||
UMH common shares purchased during the year | 51,000 | ||
Cost of securities purchased | $ 651,000 | ||
Average price per share | $ 12.66 | ||
Shares owned by company | 1,200,000 | 1,200,000 | |
Shares owned, cost | $ 12,700,000 | $ 12,700,000 | |
Outstanding common shares, percentage | 3.10% | 3.10% |
SUMMARY OF FIXED RATE MORTGAGE
SUMMARY OF FIXED RATE MORTGAGE NOTES PAYABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Short-term Debt [Line Items] | ||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | $ 734,095 | $ 711,546 |
Mortgage Notes Payable [Member] | ||
Short-term Debt [Line Items] | ||
Fixed Rate Mortgage Notes Payable, Amount | $ 742,087 | $ 719,768 |
Weighted Average Interest Rate | 4.03% | 4.07% |
Debt Issuance Costs | $ 11,636 | $ 11,716 |
Accumulated Amortization of Debt Issuance Costs | (3,644) | (3,494) |
Unamortized Debt Issuance Costs | 7,992 | 8,222 |
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | $ 734,095 | $ 711,546 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | Jul. 01, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 |
Interest expense amortization of financing costs | $ 319,000 | $ 315,000 | $ 956,000 | $ 911,000 | ||||
Fixed rate mortgage notes payable, description | we owned 113 properties, of which 60 carried Fixed Rate Mortgage Notes Payable with outstanding principal balances totaling $742.1 million. | |||||||
Fixed rate mortgage notes payable | $ 742,100,000 | 742,100,000 | $ 742,100,000 | |||||
Weighted average interest rate percentage | 4.03% | 4.11% | 4.07% | |||||
Notes payable maturity period | 11 years 6 months | 11 years 6 months | 11 years 8 months 12 days | |||||
Proceeds from fixed rate mortgage notes payable | $ 72,500,000 | $ 105,600,000 | ||||||
Drawn down margin loan | $ 16,200,000 | $ 16,200,000 | $ 16,200,000 | |||||
Maximum borrowing percentage of marketable securities | 50.00% | 50.00% | 50.00% | |||||
Securities available for sale fair value | $ 171,000,000 | $ 171,000,000 | $ 171,000,000 | |||||
Margin loan bearing interest rate | 3.00% | 3.00% | 3.00% | |||||
Line of Credit [Member] | ||||||||
Total availability of unsecured credit facility | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||
Line of credit amount | 110,000,000 | 110,000,000 | $ 110,000,000 | |||||
Debt maturity date | September 2020 | |||||||
Repayment of line of credit facility | $ 50,000,000 | |||||||
Line of credit facility interest rate terms | Availability under the Facility is limited to 60% of the value of the borrowing base properties. The value of the borrowing base properties is determined by applying a capitalization rate to the NOI generated by our unencumbered properties. Effective March 22, 2018, the capitalization rate applied to our NOI generated by our unencumbered properties was lowered from 7.0% to 6.5%, thus increasing the value of the borrowing base properties under the terms of the agreement. Borrowings under the Facility will, at our election, either i) bear interest at LIBOR plus 140 basis points to 220 basis points, depending on our leverage ratio, or ii) bear interest at BMO’s prime lending rate plus 40 basis points to 120 basis points, depending on our leverage ratio. Our borrowings as of June 30, 2019, based on our leverage ratio, bear interest at LIBOR plus 170 basis points, which represented an interest rate of 4.10%. | |||||||
Line of credit facility related to accordion feature | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||
Total potential available under unsecured line of credit | $ 300,000,000 | |||||||
Charleston S C [Member] | ||||||||
Percentage of mortgage loan prepaid during the period | 5.54% | |||||||
Mortgage loan related to property sales | $ 224,000 | |||||||
Mortgage loan maturity date | January 2020 | |||||||
Fort Mill S C [Member] | Subsequent Event [Member] | ||||||||
Percentage of mortgage loan prepaid during the period | 7.00% | |||||||
Mortgage loan related to property sales | $ 229,000 | |||||||
Mortgage loan maturity date | October 2019 | |||||||
Denver Co [Member] | Subsequent Event [Member] | ||||||||
Percentage of mortgage loan prepaid during the period | 6.07% | |||||||
Mortgage loan related to property sales | $ 121,000 | |||||||
Mortgage loan maturity date | November 2019 | |||||||
Tampa F L [Member] | ||||||||
Annual interest rate | 6.00% | |||||||
Mortgages paid off | $ 4,800,000 | |||||||
Lebanon T N [Member] | ||||||||
Annual interest rate | 7.60% | |||||||
Mortgages paid off | $ 7,100,000 | |||||||
Two Mortgages Loans One [Member] | ||||||||
Weighted average interest rate percentage | 4.20% | |||||||
Mortgage loan amortization period | 15 years | |||||||
Proceeds from fixed rate mortgage notes payable | $ 72,500,000 | |||||||
Minimum [Member] | ||||||||
Annual interest rate | 3.45% | |||||||
Maximum [Member] | ||||||||
Annual interest rate | 7.00% |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2019 | Jan. 16, 2019 | Aug. 02, 2018 | Jun. 29, 2017 | Jul. 18, 2019 | Oct. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2018 |
Common stock shares authorized | 188,000,000 | 188,000,000 | 188,000,000 | |||||||||
Common stock shares, issued | 95,200,000 | 95,200,000 | 95,200,000 | |||||||||
Common stock shares, outstanding | 95,200,000 | 95,200,000 | 95,200,000 | |||||||||
Preferred stock, shares authorized | 16,400,000 | 16,400,000 | 16,400,000 | |||||||||
Preferred stock shares, issued | 12,500,000 | 12,500,000 | 12,500,000 | |||||||||
Preferred stock shares, outstanding | 12,500,000 | 12,500,000 | 12,500,000 | |||||||||
Excess stock shares, authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Excess stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Excess stock shares, issued | 0 | 0 | 0 | 0 | ||||||||
Excess stock shares, outstanding | 0 | 0 | 0 | 0 | ||||||||
Number of common shares sold | 9,200,000 | |||||||||||
Sale of stock price per share | $ 15 | |||||||||||
Net proceeds from issuance common stock offering | $ 132.3 | |||||||||||
Amount of dividend reinvested | $ 12.8 | $ 9.5 | ||||||||||
Cash dividends paid | $ 47.5 | |||||||||||
Annual rate of preferred dividends cumulative and payable | $ 0.3828125 | $ 0.3828125 | $ 1.1484375 | $ 1.1484375 | ||||||||
Dividend Reinvestment And Stock Purchase Plan [Member] | ||||||||||||
Amount of dividend reinvested | $ 12.8 | |||||||||||
Common stock issued under plan | 4,400,000 | |||||||||||
Dividends participation rate | 27.00% | |||||||||||
Preferred Stock A T M Program [Member] | ||||||||||||
Number of preferred shares sold | 1,000,000 | 4,100,000 | ||||||||||
Weighted average price per share of shares sold under the ATM | $ 24.08 | $ 24.82 | ||||||||||
Proceeds from the issuance of preferred stock from the ATM Program | $ 24 | $ 99.9 | ||||||||||
Remaining amount to be sold under the ATM Program | $ 94.6 | 94.6 | $ 94.6 | |||||||||
Preferred Stock A T M Program [Member] | Subsequent Event [Member] | ||||||||||||
Sale of stock price per share | $ 24.26 | |||||||||||
Number of preferred shares sold | 277,000 | |||||||||||
Net proceeds from issuance of preferred stock from ATM Program | $ 6.6 | |||||||||||
Common Stock [Member] | ||||||||||||
Cash raised from issuance of common stock under DRIP | $ 57.5 | |||||||||||
Dividend paid | $ 0.51 | |||||||||||
Underwriters [Member] | ||||||||||||
Underwriters option to purchase additional shares | 1,200,000 | |||||||||||
Board Of Directors [Member] | Common Shareholders [Member] | Subsequent Event [Member] | ||||||||||||
Divdend declaration date | Jul. 1, 2019 | |||||||||||
Dividend declared per share | $ 0.17 | |||||||||||
Dividends payable, date to be paid | Sep. 16, 2019 | |||||||||||
Dividend payable date of record | Aug. 15, 2019 | |||||||||||
Board Of Directors [Member] | Series C Preferred Shareholders [Member] | Subsequent Event [Member] | ||||||||||||
Divdend declaration date | Jul. 1, 2019 | |||||||||||
Dividend declared per share | $ 0.3828125 | |||||||||||
Dividends payable, date to be paid | Sep. 16, 2019 | |||||||||||
Dividend payable date of record | Aug. 15, 2019 | |||||||||||
Board of Directors Chairman [Member] | Series C Preferred Shareholders [Member] | Subsequent Event [Member] | ||||||||||||
Dividends payable, date to be paid | Sep. 16, 2019 | |||||||||||
Dividend payable date of record | Aug. 15, 2019 | |||||||||||
Board of Directors Chairman [Member] | Common Stock Repurchase Program [Member] | ||||||||||||
Increase in the value of common stock available under program | $ 40 | |||||||||||
Share repurchase program authorized amount | $ 50 | |||||||||||
Series C Preferred Stock [Member] | ||||||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | 6.125% | 6.125% | 6.125% | ||||||||
Maximum amount of proceeds allowed from the issuance of preferred stock from the ATM program | $ 125 | |||||||||||
Additional amount of proceeds allowed from the issuance of preferred stock from the ATM program | $ 96.5 | |||||||||||
Series C Cumulative Redeemable Preferred Stock [Member] | ||||||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | 6.125% | 6.125% | |||||||||
Cash dividends paid | $ 13.5 | |||||||||||
Dividend declared per share | $ 1.1484375 | $ 1.1484375 | $ 1.1484375 | |||||||||
Accrued preferred dividends | $ 1.6 | |||||||||||
Annual rate of preferred dividends cumulative and payable | $ 1.53125 | |||||||||||
Preferred stock redemption price | $ 25 | $ 25 | $ 25 | |||||||||
Series C Cumulative Redeemable Preferred Stock [Member] | On And After September Fifteen Two Thousand Twenty One [Member] | ||||||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | 6.125% | 6.125% | |||||||||
Series C Cumulative Redeemable Preferred Stock [Member] | Preferred Stock A T M Program [Member] | ||||||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | |||||||||||
Original maximum proceeds allowed from the issuance of preferred stock from ATM program | $ 100 |
SUMMARY OF FAIR VALUE OF FINANC
SUMMARY OF FAIR VALUE OF FINANCIAL ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | $ 171,040 | $ 154,921 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 171,040 | 154,921 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 13,024 | 7,310 |
Fair Value, Recurring [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 13,024 | 7,310 |
Fair Value, Recurring [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 158,014 | 147,608 |
Fair Value, Recurring [Member] | Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 158,014 | 147,608 |
Fair Value, Recurring [Member] | Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 2 | 3 |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 2 | 3 |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Short-term Debt [Line Items] | ||
Fixed rate mortgage notes payable | $ 734,095 | $ 711,546 |
Mortgage Notes Payable Fair Value [Member] | ||
Short-term Debt [Line Items] | ||
Fixed rate mortgage notes payable at fair value | 745,600 | |
Fixed rate mortgage notes payable | $ 742,100 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Details Narrative) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 27.1 | $ 23 |
Amount of dividend reinvested | $ 12.8 | $ 9.5 |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details Narrative) | 9 Months Ended |
Jun. 30, 2019USD ($)ft²$ / ft² | |
Industrial Property [Member] | Mortgage Loan [Member] | |
Mortgage loan amortization period | 18 years |
Mortgage loan committed on real estate, carrying amount of mortgage | $ 52,500,000 |
Weighted average fixed interest rate, percentage | 4.27% |
Monroe O H [Member] | |
Lease term | 15 years |
Original mortgage loan on real estate, interest rate | 3.77% |
Square feet of expansion to industrial building | ft² | 155,000 |
Expansion costs | $ 8,600,000 |
Mortgage loan maturity description | The maturity of the second mortgage loan will coincide with the maturity of the property’s first fully-amortizing mortgage loan |
Face amount of original mortgage | $ 6,800,000 |
Extended prior lease expiration date | February 2030 to February 2034 |
Increase in rent from expansion | $ 821,000 |
Rent prior to expansion | $ 980,000 |
Rent prior to expansion, per square foot | $ / ft² | 4.22 |
Rent increased to after expansion | $ 1,800,000 |
Rent increased to expansion per square foot | $ / ft² | 4.65 |
Increase in annual rent per year | 2.00% |
Average annualized rent over the term of lease | $ 2,100,000 |
Monroe O H [Member] | Second Mortgage Loan [Member] | |
Mortgage loan committed on real estate, carrying amount of mortgage | $ 7,000,000 |
Mortgage loan amortization period | 10 years 8 months 12 days |
Original mortgage loan on real estate, interest rate | 3.85% |
Future Corporate Office Space [Member] | Fourth Quaterof Fiscal Two Thousand Nineteen [Member] | |
Lease term | ten year |
Square feet to be rented | ft² | 13,000 |
Initial annual rent | $ 410,000 |
Annual rent per square foot | $ / ft² | 31 |
Existing Corporate Office Space [Member] | |
Lease term | 2 years 6 months |
Annual rent per square foot | $ / ft² | 24.17 |
Square feet | ft² | 5,700 |
Gross annual rent | $ 137,000 |
Property Purchase Agreement [Member] | Industrial Property [Member] | |
Square feet of industrial buildings to be purchased | ft² | 1,500,000 |
Weighted average lease term | 14 years 6 months |
Aggregate purchase price of industrial properties | $ 219,200,000 |
Property Purchase Agreement [Member] | Industrial Property [Member] | Minimum [Member] | |
Lease term | 10 years |
Property Purchase Agreement [Member] | Industrial Property [Member] | Maximum [Member] | |
Lease term | 15 years |
Property Purchase Agreement [Member] | Fedex Ground Package System Inc [Member] | |
Square feet of industrial buildings to be purchased | ft² | 774,000 |
Percentage of total square feet of industrial buildings to be purchased | 50.00% |
Properties lease expiration period | 15 years |
Property Purchase Agreement [Member] | Amazon Com Services Inc [Member] | |
Square feet of industrial buildings to be purchased | ft² | 613,000 |
Percentage of total square feet of industrial buildings to be purchased | 40.00% |
Properties lease expiration period | 15 years |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | Jul. 26, 2019USD ($)aft² | Jul. 01, 2019USD ($)ft²$ / ft²$ / shares | Jul. 18, 2019USD ($)$ / sharesshares |
Preferred Stock A T M Program [Member] | |||
Number of preferred shares sold | shares | 277,000 | ||
Sale of stock, price per share | $ / shares | $ 24.26 | ||
Net proceeds from issuance of preferred stock from atm program | $ 6,600,000 | ||
Board Of Directors [Member] | Common Shareholders [Member] | |||
Dividend declaration date | Jul. 1, 2019 | ||
Dividends Payable, Amount Per Share | $ / shares | $ 0.17 | ||
Dividends Payable, Date to be Paid | Sep. 16, 2019 | ||
Dividends Payable, Date of Record | Aug. 15, 2019 | ||
Board Of Directors [Member] | Series C Preferred Shareholders [Member] | |||
Dividend declaration date | Jul. 1, 2019 | ||
Dividends Payable, Amount Per Share | $ / shares | $ 0.3828125 | ||
Dividends Payable, Date to be Paid | Sep. 16, 2019 | ||
Dividends Payable, Date of Record | Aug. 15, 2019 | ||
Colorado [Member] | |||
Debt instrument interest rate during period | 6.07% | ||
Payments for mortgage deposits | $ 121,000 | ||
Debt maturity date | November 2019 | ||
Amazon Com Services [Member] | Lease Agreements [Member] | |||
Area of property | ft² | 92,000 | ||
Lessee operating lease term of contract | 10 years | ||
Lease Expiration Date | Jun. 30, 2029 | ||
Lessor operating lease payments to be received | $ 688,000 | ||
Annual rent per square foot | $ / ft² | 7.50 | ||
Increase in annual rent rate per year | 3.00% | ||
Straightline annualized rent | $ 789,000 | ||
Straightline annualized rent per square foot | $ / ft² | 8.60 | ||
Former straightline annualized rent and cash rent per square foot | $ / ft² | 7.35 | ||
Increase in straightline annualized rent per square foot | 17.00% | ||
Increase in cash rent per square foot | 2.00% | ||
Tenant improvements | $ 1,750,000 | ||
Fort Mill S C [Member] | |||
Debt instrument interest rate during period | 7.00% | ||
Payments for mortgage deposits | $ 229,000 | ||
Debt maturity date | October 2019 | ||
Industrial Buildings [Member] | Toyota Tsusho America Inc [Member] | |||
Purchase of industrial building | ft² | 350,000 | ||
Area of property | a | 45.6 | ||
Percentage of building area leased | 100.00% | ||
Lease term | 10 years | ||
Lease term expiration period | June 2029 | ||
Purchase price of industrial building | $ 25,500,000 | ||
Mortgage loan amortization period | 15 years | ||
Face amount of mortgages | $ 17,000,000 | ||
Annual rental income over the remaining term of lease | $ 1,700,000 |