Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 19, 2013 | Nov. 19, 2013 | |
Common Class A [Member] | Common Class B [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'PRESIDENTIAL REALTY CORP/DE/ | ' | ' |
Entity Central Index Key | '0000731245 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'PDNLA | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 442,533 | 3,227,147 |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Real estate (Note 2) | $1,114,413 | $1,111,534 |
Less: accumulated depreciation | 501,398 | 465,016 |
Net real estate | 613,015 | 646,518 |
Net mortgage portfolio | 1,954 | 14,654 |
Prepaid expenses | 175,373 | 253,330 |
Other receivables (net of valuation allowance of $9,395 in 2013 and $7,506 in 2012 ) | 25,349 | 31,825 |
Cash | 703,635 | 852,674 |
Assets related to discontinued operations | 49,881 | 14,198,806 |
Other assets | 16,636 | 11,988 |
Total Assets | 1,585,843 | 16,009,795 |
Liabilities and Equity | ' | ' |
Liabilities related to discontinued operations | 18,867 | 17,843,489 |
Mortgage payable | 471,296 | 488,748 |
Line of Credit | 300,000 | 0 |
Accrued liabilities | 477,594 | 337,827 |
Accounts payable | 0 | 7,559 |
Other liabilities | 657,400 | 633,815 |
Total Liabilities | 1,925,157 | 19,311,438 |
Presidential Stockholders' Deficit: | ' | ' |
Additional paid-in capital | 5,254,135 | 5,254,135 |
Accumulated deficit | -2,221,402 | -3,717,861 |
Treasury stock (at cost) | -2,879,354 | -2,879,354 |
Total Presidential stockholders' deficit | 153,422 | -1,343,037 |
Non-controlling interest | -492,736 | -1,958,606 |
Total Deficit | -339,314 | -3,301,643 |
Total Liabilities and Stockholders' Deficit | 1,585,843 | 16,009,795 |
Common Class A [Member] | ' | ' |
Presidential Stockholders' Deficit: | ' | ' |
Common stock: par value $.00001 per share | 5 | 5 |
Common Class B [Member] | ' | ' |
Presidential Stockholders' Deficit: | ' | ' |
Common stock: par value $.00001 per share | $38 | $38 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Valuation allowance for other receivables (in dollars) | $9,395 | $7,506 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Class A [Member] | ' | ' |
Common Stock, Shares Authorized | 700,000 | 700,000 |
Common stock, shares issued | 471,633 | 471,633 |
Treasury stock, shares | 29,100 | 29,100 |
Common Class B [Member] | ' | ' |
Common Stock, Shares Authorized | 999,300,000 | 999,300,000 |
Common stock, shares issued | 3,756,842 | 3,756,842 |
Treasury stock, shares | 529,695 | 529,695 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' | ' |
Rental | $207,377 | $193,585 | $635,050 | $570,025 |
Interest on mortgages - notes receivable | 2,313 | 617 | 4,547 | 9,037 |
Total | 209,690 | 194,202 | 639,597 | 579,062 |
Costs and Expenses: | ' | ' | ' | ' |
General and administrative | 260,259 | 225,238 | 879,782 | 767,343 |
Stock Based Compensation | 0 | 0 | 0 | 98,667 |
Rental property: | ' | ' | ' | ' |
Operating expenses | 123,649 | 130,586 | 397,623 | 360,018 |
Interest and fees on mortgage debt | 10,652 | 8,499 | 22,885 | 9,333 |
Real estate taxes | 9,597 | 12,165 | 28,539 | 35,452 |
Depreciation on real estate | 16,251 | 12,141 | 40,641 | 36,855 |
Amortization of in-place lease values and mortgage costs | 0 | 0 | 0 | 132 |
Total | 420,408 | 388,629 | 1,369,470 | 1,307,800 |
Other Income: | ' | ' | ' | ' |
Interest income | 1,135 | 2,456 | 3,634 | 5,654 |
Loss from continuing operations | -209,583 | -191,971 | -726,239 | -723,084 |
Discontinued Operations (Note 3): | ' | ' | ' | ' |
Loss from discontinued operations | -315,749 | -436,277 | -995,444 | -1,009,050 |
Net gain from foreclosure of discontinued operations | 4,684,012 | 0 | 4,684,012 | 0 |
Net Income (loss) from discontinued operations | 4,368,263 | -436,277 | 3,688,568 | -1,009,050 |
Net Income (loss) | 4,158,680 | -628,248 | 2,962,329 | -1,732,134 |
Net (Income) loss from non-controlling interest (Note 3) and (Note 5) | -1,737,748 | 172,066 | -1,465,870 | 435,708 |
Net Income (loss) attributable to Presidential | $2,420,932 | ($456,182) | $1,496,459 | ($1,296,426) |
Earnings per Common Share attributable to Presidential basic : | ' | ' | ' | ' |
Loss from continuing operations (in dollars per share) | ($0.06) | ($0.05) | ($0.20) | ($0.20) |
Discontinued Operations: | ' | ' | ' | ' |
Loss from discontinued operations (in dollars per share) | ($0.05) | ($0.07) | ($0.16) | ($0.15) |
Net gain from foreclosure of discontinued operations (in dollars per share) | $0.77 | $0 | $0.77 | $0 |
Total earnings per share from discontinued operations (in dollars per share) | $0.72 | ($0.07) | $0.61 | ($0.15) |
Net Income (loss) per Common Share - basic (in dollars per share) | $0.66 | ($0.12) | $0.41 | ($0.35) |
Net Income (loss) per Common Share -diluted (in dollars per share) | $0.66 | ($0.12) | $0.41 | ($0.35) |
Weighted Average Number of Shares Outstanding - | ' | ' | ' | ' |
basic (in shares) | 3,669,680 | 3,657,369 | 3,669,680 | 3,656,243 |
diluted (in shares) | 3,669,680 | 3,657,369 | 3,669,680 | 3,656,243 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Net income (loss) | $2,962,329 | ($1,732,134) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 43,480 | 36,855 |
Amortization of discounts on notes and fees | 1,670 | 1,237 |
Stock Based compensation | 0 | 101,467 |
Net gain from discontinued operations | -4,684,012 | 0 |
Changes in assets and liabilities: | ' | ' |
Other receivables | 6,476 | -5,389 |
Discontinued operations assets | 3,066,917 | 68,013 |
Prepaid expenses | 75,117 | 159,481 |
Other assets | -4,648 | 0 |
Increase (decreases) in: | ' | ' |
Accounts payable and accrued liabilities | 132,209 | -17,235 |
Discontinued operations liabilities | -2,058,602 | 1,006,748 |
Other liabilities | 23,585 | 14,214 |
Total adjustments | -3,397,808 | 1,365,391 |
Net cash used in operating activities | -435,479 | -366,743 |
Cash Flows from Investing Activities: | ' | ' |
Payments received on notes receivable | 11,030 | 10,363 |
Payments disbursed for capital improvements | -7,138 | -3,932 |
Net cash provided by investing activities | 3,892 | 6,431 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds of Line of credit | 300,000 | 0 |
Proceeds of mortgage financing | 0 | 459,620 |
Principal payments on mortgage debt | -17,452 | -7,392 |
Net cash provided by financing activities | 282,548 | 452,228 |
Net (decrease) increase in Cash | -149,039 | 91,916 |
Cash, Beginning of period | 852,674 | 961,240 |
Cash, End of period | 703,635 | 1,053,156 |
Supplemental cash flow information: | ' | ' |
Interest paid in cash | $22,885 | $9,333 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Text Block] | ' |
1. Organization and Summary of Significant Accounting Policies | |
Organization | |
Presidential Realty Corporation (“Presidential” or “the Company”) is a Delaware corporation organized in 1983 to succeed to the business of a company of the same name which was organized in 1961 to succeed to the business of a closely held real estate business founded in 1911. Since 1982, we have elected to be treated as a real estate investment trust (“REIT”) for Federal and State income tax purposes. We own, directly or indirectly, interests in real estate and interests in entities which own real estate. | |
On November 8, 2011, we and PDL Partnership, a New York general partnership (“PDL Partnership”), the general partners of which are Jeffrey F. Joseph (a director and former officer), Steven Baruch (a former director and former officer) and Thomas Viertel (a former director and former officer), entered into a series of transactions with certain investors and Signature Community Investment Group LLC (together with its affiliates, “Signature”)(“Strategic Transaction”). Signature is owned by Nickolas W. Jekogian, III, the promoter of the stock transactions included in the Strategic Transaction. The Strategic Transaction among other things resulted in the termination of our plan of liquidation. | |
Basis of Presentation and Going Concern Considerations | |
For the nine months ended September 30, 2013, the Company had a loss from continuing operations. This combined with a history of operating losses and working capital deficiency have been detrimental to our operations and could potentially affect our ability to meet our obligations and continue as a going concern. (See Note 7A3 of Notes to Consolidated Financial Statements). If the Company is required to pay any significant amounts under its guaranty related to our Hato Rey property, such a payment would also adversely impact our liquidity. Our ability to continue as a going concern is dependent upon management’s successful execution of our business plan to achieve profitability, to increase working capital through raising debt and or equity and a successful defense of the claims against the Company under its guaranty related to the Hato Rey property. The accompanying consolidated financial statements do not include any adjustments that may result from this uncertainty. | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of the Company’s financial position and operating results. The results for such interim periods are not necessarily indicative of the results to be expected for the year. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the results for the respective periods have been reflected. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2012. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Presidential Realty Corporation and its wholly owned subsidiaries. Additionally, the consolidated financial statements include 100% of the account balances of PDL, Inc. and Associates Limited Co-Partnership (the “Hato Rey Partnership”). PDL, Inc. (a wholly owned subsidiary of Presidential and the general partner of the Hato Rey Partnership) and Presidential own an aggregate 60% general and limited partnership interest in the Hato Rey Partnership (see Note 5). All significant intercompany balances and transactions have been eliminated. | |
Rental Revenue Recognition | |
The Company acts as lessor under operating leases. Rental revenue is recorded on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. Certain leases require the tenants to reimburse a pro rata share of real estate taxes, utilities and maintenance costs. Recognition of rental revenue is generally discontinued when the rental is delinquent for ninety days or more, or earlier if management determines that collection is doubtful. | |
Allowance for Doubtful Accounts | |
The Company assesses the collectability of amounts due from tenants and other receivables, using indicators such as past-due accounts, the nature and age of the receivable, the payment history and the ability of the tenant or debtor to meet its payment obligations. Management’s estimate of allowances for doubtful accounts is subject to revision as these factors change. Rental revenue is recorded on the accrual method and rental revenue recognition is generally discontinued when the tenant in occupancy is delinquent for ninety days or more. Bad debt expense is charged for vacated tenant accounts and subsequent receipts collected for those receivables will reduce bad debt expense. As of September 30, 2013 and December 31, 2012, the allowance for doubtful accounts for continuing operations relating to tenant obligations was $9,395 and $7,506, respectively. | |
Net Income (Loss) Per Share | |
Basic net income (loss) per share data is computed by dividing net income (loss) by the weighted average number of shares of Class A and Class B common stock outstanding (excluding nonvested stock options and shares) during each period. Diluted net loss per share is computed by dividing net income by the weighted average shares outstanding, including the dilutive effect, if any, of nonvested stock options and shares. For the three and nine months ended September 30, 2013 and 2012, the weighted average shares outstanding as used in the calculation of diluted income per share included 148,000 of vested stock options. | |
Cash | |
Cash includes cash on hand; cash in banks and money market funds. | |
Management Estimates | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. | |
Discontinued Operations | |
The Company follows the guidance of the presentation and property, plant, and equipment, with respect to long-lived assets classified as held for sale. The Accounting Standards Codification requires that the results of operations, including impairment, gains and losses related to the properties that have been sold or properties that are intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold are to be separately classified on the balance sheet. Properties designated as held for sale are carried at the lower of cost or fair value less costs to sell and are not depreciated. | |
Accounting for Uncertainty in Income Taxes | |
The Company follows the guidance of the recognition of current and deferred income tax accounts, including accrued interest and penalties, in accordance with ASC 740-10-25. Under this guidance, if the Company’s tax positions in relation to certain transactions were examined and were not ultimately upheld, the Company would be required to pay an income tax assessment and related interest. Alternatively, the Company could elect to pay a deficiency dividend to its shareholders in order to continue to qualify as a REIT and the related interest assessment to the taxing authorities. | |
Real_Estate
Real Estate | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate [Abstract] | ' | |||||||
Real Estate Disclosure [Text Block] | ' | |||||||
2 | Real Estate | |||||||
Real estate included in continuing operations is comprised of the Maple Tree property as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Land | $ | 79,100 | $ | 79,100 | ||||
Buildings | 985,287 | 982,408 | ||||||
Furniture and equipment | 50,026 | 50,026 | ||||||
1,114,413 | 1,111,534 | |||||||
Accumulated depreciation | -501,398 | -465,016 | ||||||
Total | $ | 613,015 | $ | 646,518 | ||||
Rental revenue from the Maple Tree property constituted all of the rental revenue for the Company during the three and nine months ended September 30, 2013 and 2012. | ||||||||
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||||||||
3 | Discontinued Operations | |||||||||||||
During the quarter ended March 31, 2012, the Company designated PDL, Inc. & Associates, Limited Co-partnership, Presidential Matmor Corp. and PDL, Inc. as discontinued operations. (see Note 4A) | ||||||||||||||
The following table summarizes operations for the property discontinued: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues: | ||||||||||||||
Rental | $ | 858,109 | $ | 860,954 | $ | 2,656,689 | $ | 2,755,212 | ||||||
Expenses: | ||||||||||||||
General and administrative expenes | - | 2,371 | - | 6,004 | ||||||||||
Rental property expenses: | ||||||||||||||
Operating | 539,657 | 714,851 | 1,744,117 | 1,859,873 | ||||||||||
Interest on mortgage debt | 556,131 | 502,028 | 1,673,956 | 1,661,279 | ||||||||||
Real estate taxes | 78,742 | 78,742 | 236,122 | 236,227 | ||||||||||
Amortization of in place lease values | - | - | - | 3,456 | ||||||||||
Total expense | 1,174,530 | 1,297,992 | 3,654,195 | 3,766,839 | ||||||||||
Investment income | 672 | 761 | 2,062 | 2,577 | ||||||||||
Loss from discontinued operations | -315,749 | -436,277 | -995,444 | -1,009,050 | ||||||||||
Net gain from foreclosure of discontinued operations | 4,684,012 | - | 4,684,012 | - | ||||||||||
Net Income (loss) from discontinued operations | $ | 4,368,263 | $ | -436,277 | $ | 3,688,568 | $ | -1,009,050 | ||||||
The following table summarized the assets and liabilities for property discontinued: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Assets related to discontinued operations: | ||||||||||||||
Land | - | $ | 1,905,985 | |||||||||||
Buildings | - | 13,829,390 | ||||||||||||
Furniture and equipment | - | 6,375 | ||||||||||||
Less: accumulated depreciation | - | -2,087,424 | ||||||||||||
Net real estate | - | 13,654,326 | ||||||||||||
Other assets | 49,881 | 544,480 | ||||||||||||
Total assets related to discontinued operations | $ | 49,881 | $ | 14,198,806 | ||||||||||
Liabilities related to discontinued operations: | ||||||||||||||
Mortgage debt | $ | - | $ | 14,009,797 | ||||||||||
Mortgage related interest and fees | - | 3,287,507 | ||||||||||||
Other liabilities | 18,867 | 546,185 | ||||||||||||
Total liabilities related to discontinued operations | $ | 18,867 | $ | 17,843,489 | ||||||||||
Mortgage_Debt
Mortgage Debt | 9 Months Ended | ||
Sep. 30, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Debt Disclosure [Text Block] | ' | ||
4 | Mortgage Debt | ||
A. | PDL, Inc. & Associates, Limited Co-partnership. | ||
On September 23, 2013, U.S. Bank National Association, as trustee, as successor-in-interest to Bank of America, National Association, as trustee for the Registered Holders of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1998-C1, acting by and through Berkadia Commercial Mortgage LLC in its capacity as special servicer pursuant to the pooling and servicing agreement dated October 11, 1998 took possession of the Hato Rey Center property pursuant to the foreclosure judgment. We have been advised that the foreclosure sale price was less than the amount of the judgment. In connection with the foreclosure action we recorded a net gain of $4,684,012 on the foreclosure of the Hato Rey Center. We have reported the Hato Rey property since March 31, 2012 as a discontinued operation. At December 31, 2012, the principal balance on the mortgage was $14,009,797. | |||
B. | Mapletree Industrial Center | ||
On June 8, 2012, we closed on a mortgage and line of credit for a combined total of $1,000,000 with Country Bank for Savings on the Mapletree Industrial Center. The mortgage is for $500,000 at a 5% interest rate, for a term of 5 years. Thereafter the interest will adjust monthly equal to the bank’s Prime Rate, plus 1% with an interest rate floor of 5%, for a term of 15 years. We received $459,620 of net proceeds. The balance at September 30, 2013 and December 31, 2012 was $471,296 and $488,748, respectively. The line of credit is for $500,000, with an interest rate of 1% over the bank’s Prime Rate or 4.25%. At September 30, 2013, there was $300,000 outstanding on the line of credit. The line of credit is due on demand. Both the mortgage and the line of credit are secured by the Mapletree Industrial Center in Palmer, Massachusetts. | |||
Hato_Rey_Partnership
Hato Rey Partnership | 9 Months Ended | ||
Sep. 30, 2013 | |||
Noncontrolling Interest [Abstract] | ' | ||
Noncontrolling Interest Disclosure [Text Block] | ' | ||
5 | Hato Rey Partnership | ||
PDL, Inc. (a wholly owned subsidiary of Presidential) is the general partner of the Hato Rey Partnership. Pres Matmor Corp. and PDL, Inc. have an aggregate 60% general and limited partner interest in the Hato Rey Partnership. The Company exercises effective control over the partnership through its ability to manage the affairs of the partnership in the ordinary course of business. Accordingly, the Company consolidates the Hato Rey Partnership in the accompanying consolidated financial statements. As of March 2012, the Company has reported the partnership as a discontinued operation. | |||
The Company advanced $2,670,000 to the partnership to be used for building improvements and for operations. The loan, which was advanced to the partnership, as needed, bared interest at the rate of 13% per annum, with interest and principal to be paid out of the positive cash flow from the property or upon a refinancing of the First Mortgage on the property. On November 12, 2013 we contributed the entire loan balance of $2,670,000 and accrued interest of $1,614,941 to the Hato Rey Partnership. | |||
Income_Taxes
Income Taxes | 9 Months Ended | ||
Sep. 30, 2013 | |||
Income Tax Disclosure [Abstract] | ' | ||
Income Tax Disclosure [Text Block] | ' | ||
6 | Income Taxes | ||
Presidential has elected to qualify as a Real Estate Investment Trust under the Internal Revenue Code. A REIT which distributes at least 90% of its real estate investment trust taxable income to its shareholders each year by the end of the following year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. | |||
ASC 740 prescribes a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken. If the Company’s tax position in relation to a transaction was not likely to be upheld, the Company would be required to record the accrual for the tax and interest thereon. As of September 30, 2013, the tax years that remain open to examination by the federal, state and local taxing authorities are the 2010 – 2012 tax years. The Company was not required to accrue any liability for those tax years. | |||
For the nine months ended September 30, 2013, the Company had taxable income from the foreclosure of the Hato Rey property of approximately $3,800,000 or $1 .03 per share, and a capital gain of approximately $280,000 or $0.08 per share. On a consolidated basis the Company had taxable income of $3,000,000or $0.82per share and a capital gain of approximately $280,000 or $0.08 per share. Due to the net operating carryforward losses no provision for income taxes was required. The Company has approximately $18,500,000of remaining tax loss carry forwards available for future use. | |||
Commitments_Contingencies_and_
Commitments, Contingencies and Related Parties | 9 Months Ended | ||
Sep. 30, 2013 | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ||
Commitments and Contingencies Disclosure [Text Block] | ' | ||
7 | Commitments, Contingencies and Related parties | ||
A. | Commitments and Contingencies | ||
1) | Except as described in item 3 below, Presidential is not a party to any material legal proceedings. The Company may from time to time be a party to routine litigation incidental to the ordinary course of its business. | ||
2) | In the opinion of management, all of the Company’s properties are adequately covered by insurance in accordance with normal insurance practices. | ||
3) | As previously reported, a judgment of foreclosure was granted against PDL, Inc. & Associates, Limited Co-Partnership against the Hato Rey property in Puerto Rico. On September 23, 2013, U.S. Bank National Association, as trustee, as successor-in-interest to Bank of America, National Association, as trustee for the Registered Holders of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1998-C1, acting by and through Berkadia Commercial Mortgage LLC in its capacity as special servicer pursuant to the pooling and servicing agreement dated October 11, 1998 took possession of the Hato Rey property pursuant to the foreclosure judgment. We have been advised that the foreclosure sale price was less than the amount of the judgment. We have reported the Hato Rey property since March 31, 2012 as a discontinued operation. | ||
The claims brought in the foreclosure action against PDL, Inc., the Company, Lester Cohen and F.D. Rich Company of Puerto Rico, Inc., with liability among them to be allocated 1%, 45%, 9% and 45%, respectively, under the terms of certain guarantees issued by them in connection with the mortgage loans, for alleged physical waste to the Property and, the costs of certain repairs to the property of not less than $1,100,000 and the reasonable legal costs and expenses in connection with the enforcement of the loan documents remain outstanding. The lender has not asserted any claims against the Company other than those asserted under the guarantees as referenced above. The Company believes that the likelihood that the Company will be held liable for the claims asserted under the guarantees is remote. | |||
B. | Related Parties | ||
Property Management Agreement | |||
On November 8, 2011, the Company and Signature entered into a Property Management Agreement pursuant to which the Company retained Signature as the exclusive managing and leasing agent for the Company’s Mapletree Industrial Center property in Palmer, Massachusetts (the “Mapletree Property”). Signature manages the Mapletree Property in accordance with specific management guidelines and leasing guidelines and meets specific reporting requirements and vendor insurance requirements. Signature receives compensation of 5% of monthly rental income actually received from tenants at the Mapletree Property. The Company reimburses Signature for all reasonable expenses incurred by Signature in performance of its duties under the Property Management Agreement that are either in accordance with the annual budget or which have been approved in writing by the Company. Such expense shall include, but not be limited to, Signature’s costs of the salaries, benefits and appropriate and prudent training for Signature’s employees who are engaged solely in management or operation of the Mapletree Property, but excluding certain expenses that will be borne by Signature, as specified in the Property Management Agreement. The property Management Agreement renewed for a one year term on November 8, 2012 and will be automatically renewable for one year terms until it is terminated by either party upon written notice. For the three months ended September 30, 2013 and 2012 the Company incurred management fees of approximately $9,200 and $6,400, respectively. For the nine months ended September 30, 2013 and 2012 the Company incurred management fees of approximately $27,800 and $24,100, respectively. | |||
Asset Management Agreement | |||
On November 8, 2011, the Company and Signature entered into an Asset Management Agreement pursuant to which the Company engaged Signature to oversee the Company’s Mapletree Industrial Center property in Palmer, Massachusetts and an office building in Hato Rey, Puerto Rico (the “Properties”). Signature’s duties include leasing, marketing and advertising, financing, construction and dispositions of the Properties. Signature will receive a construction fee for any major renovations or capital projects, subject to the approval of the Company’s Board of Directors, an asset management fee of 1.5% of the monthly gross rental revenues collected for the Properties, a finance fee of 1% on any debt placement, and a disposition fee of 1% on the sale of any assets, as specified in the Asset Management Agreement. The Asset Management Agreement renewed for a one year term on November 8, 2012 and will be automatically renewable for one year terms until it is terminated by either party upon written notice. For the three months ended September 30, 2013 and 2012 the Company incurred an asset management fee of approximately $12,600 and $10,300, respectively. For the nine months ended September 30, 2013 and 2012 the Company incurred an asset management fee of approximately $39,000 and $35,000, respectively. On September 23, 2013 the Asset Management fee associated with the Hato Rey Center was terminated due to the foreclosure and loss of the property. No additional fees are due for the Hato Rey Center. | |||
Sublease | |||
The Company subleases their executive office space under a month to month lease with Signature for a monthly rental payment of $433 or $5,200 per year. Either party may terminate the sublease upon 30 days prior written notice. For each of the three and nine month periods ended September 30, 2013 and 2012 the Company incurred approximately $3,300 and $1,300, and $4,600 and $3,900, respectively, in rent expense. On July 1, 2013 the Company moved their executive offices and amended its lease agreement with Signature for a monthly rental payment of $1,100 or $13,200 per year. All other terms of the sublease remained the same. | |||
Stock_Options
Stock Options | 9 Months Ended | ||
Sep. 30, 2013 | |||
Stock Options [Abstract] | ' | ||
Stock Options [Text Block] | ' | ||
8 | Stock Options | ||
In connection with the November 8, 2011 Strategic Transactions the Company issued 740,000 options at an exercise price of $1.25. A total of 148,000 shares vested after six months after the grant date. At September 30, 2013, the aggregate intrinsic value was $0. The remaining options vest upon the achievement of performance milestones. Options vesting on the achievement of performance milestones will not be recognized as compensation until such milestones are deemed probable of achievement. For the three and nine months ended September 30, 2013 and 2012, compensation expense was $0 and $0, and $0 and $98,667, respectively. The Company has approximately $592,000 of unrecognized compensation expense related to unvested share-based compensation awards, which will vest upon the achievement of performance milestones. | |||
Estimated_Fair_Value_of_Financ
Estimated Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||
9 | Estimated Fair Value of Financial Instruments | |||||||||||||
Estimated fair values of the Company’s financial instruments as of September 30, 2013 and December 31, 2012 were determined using available market information and various valuation estimation methodologies. Considerable judgment was required to interpret the effects on fair value of such items as future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. The estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a errant market exchange. Also, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values. | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||
Net Carrying | Estimated | Net Carrying | Estimated | |||||||||||
Value (1) | Fair Value | Value (1) | Fair Value | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 704 | $ | 704 | $ | 853 | $ | 853 | ||||||
Notes Receivable | 2 | 2 | 15 | 15 | ||||||||||
Liabilities: | ||||||||||||||
Mortgage debt | 471 | 471 | 489 | 489 | ||||||||||
Line of credit | 300 | 300 | - | - | ||||||||||
(1) Net carrying value is net of valuation reserves and discounts where applicable. | ||||||||||||||
The fair value estimates presented above were based on pertinent information available to management as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair value methods and assumptions were as follows: | ||||||||||||||
Cash– The estimated fair value approximated carrying value, due to the short maturity of these investments. | ||||||||||||||
Notes Receivable – The fair value of notes receivable was estimated by discounting projected cash flows using current rates for similar notes receivable. | ||||||||||||||
Mortgage Debt and line of credit – The fair value of mortgage debt was estimated by discounting projected cash flows using current rates for similar debt. | ||||||||||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Description Of Business Accounting [Policy Text Block] | ' |
Organization | |
Presidential Realty Corporation (“Presidential” or “the Company”) is a Delaware corporation organized in 1983 to succeed to the business of a company of the same name which was organized in 1961 to succeed to the business of a closely held real estate business founded in 1911. Since 1982, we have elected to be treated as a real estate investment trust (“REIT”) for Federal and State income tax purposes. We own, directly or indirectly, interests in real estate and interests in entities which own real estate. | |
On November 8, 2011, we and PDL Partnership, a New York general partnership (“PDL Partnership”), the general partners of which are Jeffrey F. Joseph (a director and former officer), Steven Baruch (a former director and former officer) and Thomas Viertel (a former director and former officer), entered into a series of transactions with certain investors and Signature Community Investment Group LLC (together with its affiliates, “Signature”)(“Strategic Transaction”). Signature is owned by Nickolas W. Jekogian, III, the promoter of the stock transactions included in the Strategic Transaction. The Strategic Transaction among other things resulted in the termination of our plan of liquidation. | |
Basis Of Presentation and Going Concern Considerations [Policy Text Block] | ' |
Basis of Presentation and Going Concern Considerations | |
For the nine months ended September 30, 2013, the Company had a loss from continuing operations. This combined with a history of operating losses and working capital deficiency have been detrimental to our operations and could potentially affect our ability to meet our obligations and continue as a going concern. (See Note 7A3 of Notes to Consolidated Financial Statements). If the Company is required to pay any significant amounts under its guaranty related to our Hato Rey property, such a payment would also adversely impact our liquidity. Our ability to continue as a going concern is dependent upon management’s successful execution of our business plan to achieve profitability, to increase working capital through raising debt and or equity and a successful defense of the claims against the Company under its guaranty related to the Hato Rey property. The accompanying consolidated financial statements do not include any adjustments that may result from this uncertainty. | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of the Company’s financial position and operating results. The results for such interim periods are not necessarily indicative of the results to be expected for the year. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the results for the respective periods have been reflected. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2012. | |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Presidential Realty Corporation and its wholly owned subsidiaries. Additionally, the consolidated financial statements include 100% of the account balances of PDL, Inc. and Associates Limited Co-Partnership (the “Hato Rey Partnership”). PDL, Inc. (a wholly owned subsidiary of Presidential and the general partner of the Hato Rey Partnership) and Presidential own an aggregate 60% general and limited partnership interest in the Hato Rey Partnership (see Note 5). All significant intercompany balances and transactions have been eliminated. | |
Revenue Recognition Leases, Operating [Policy Text Block] | ' |
Rental Revenue Recognition | |
The Company acts as lessor under operating leases. Rental revenue is recorded on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. Certain leases require the tenants to reimburse a pro rata share of real estate taxes, utilities and maintenance costs. Recognition of rental revenue is generally discontinued when the rental is delinquent for ninety days or more, or earlier if management determines that collection is doubtful. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' |
Allowance for Doubtful Accounts | |
The Company assesses the collectability of amounts due from tenants and other receivables, using indicators such as past-due accounts, the nature and age of the receivable, the payment history and the ability of the tenant or debtor to meet its payment obligations. Management’s estimate of allowances for doubtful accounts is subject to revision as these factors change. Rental revenue is recorded on the accrual method and rental revenue recognition is generally discontinued when the tenant in occupancy is delinquent for ninety days or more. Bad debt expense is charged for vacated tenant accounts and subsequent receipts collected for those receivables will reduce bad debt expense. As of September 30, 2013 and December 31, 2012, the allowance for doubtful accounts for continuing operations relating to tenant obligations was $9,395 and $7,506, respectively. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Income (Loss) Per Share | |
Basic net income (loss) per share data is computed by dividing net income (loss) by the weighted average number of shares of Class A and Class B common stock outstanding (excluding nonvested stock options and shares) during each period. Diluted net loss per share is computed by dividing net income by the weighted average shares outstanding, including the dilutive effect, if any, of nonvested stock options and shares. For the three and nine months ended September 30, 2013 and 2012, the weighted average shares outstanding as used in the calculation of diluted income per share included 148,000 of vested stock options. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash | |
Cash includes cash on hand; cash in banks and money market funds. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Management Estimates | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. | |
Discontinued Operations, Policy [Policy Text Block] | ' |
Discontinued Operations | |
The Company follows the guidance of the presentation and property, plant, and equipment, with respect to long-lived assets classified as held for sale. The Accounting Standards Codification requires that the results of operations, including impairment, gains and losses related to the properties that have been sold or properties that are intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold are to be separately classified on the balance sheet. Properties designated as held for sale are carried at the lower of cost or fair value less costs to sell and are not depreciated. | |
Income Tax Uncertainties, Policy [Policy Text Block] | ' |
Accounting for Uncertainty in Income Taxes | |
The Company follows the guidance of the recognition of current and deferred income tax accounts, including accrued interest and penalties, in accordance with ASC 740-10-25. Under this guidance, if the Company’s tax positions in relation to certain transactions were examined and were not ultimately upheld, the Company would be required to pay an income tax assessment and related interest. Alternatively, the Company could elect to pay a deficiency dividend to its shareholders in order to continue to qualify as a REIT and the related interest assessment to the taxing authorities. | |
Real_Estate_Tables
Real Estate (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate [Abstract] | ' | |||||||
Schedule of Real Estate Properties [Table Text Block] | ' | |||||||
Real estate included in continuing operations is comprised of the Maple Tree property as follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Land | $ | 79,100 | $ | 79,100 | ||||
Buildings | 985,287 | 982,408 | ||||||
Furniture and equipment | 50,026 | 50,026 | ||||||
1,114,413 | 1,111,534 | |||||||
Accumulated depreciation | -501,398 | -465,016 | ||||||
Total | $ | 613,015 | $ | 646,518 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||||
The following table summarizes operations for the property discontinued: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues: | ||||||||||||||
Rental | $ | 858,109 | $ | 860,954 | $ | 2,656,689 | $ | 2,755,212 | ||||||
Expenses: | ||||||||||||||
General and administrative expenes | - | 2,371 | - | 6,004 | ||||||||||
Rental property expenses: | ||||||||||||||
Operating | 539,657 | 714,851 | 1,744,117 | 1,859,873 | ||||||||||
Interest on mortgage debt | 556,131 | 502,028 | 1,673,956 | 1,661,279 | ||||||||||
Real estate taxes | 78,742 | 78,742 | 236,122 | 236,227 | ||||||||||
Amortization of in place lease values | - | - | - | 3,456 | ||||||||||
Total expense | 1,174,530 | 1,297,992 | 3,654,195 | 3,766,839 | ||||||||||
Investment income | 672 | 761 | 2,062 | 2,577 | ||||||||||
Loss from discontinued operations | -315,749 | -436,277 | -995,444 | -1,009,050 | ||||||||||
Net gain from foreclosure of discontinued operations | 4,684,012 | - | 4,684,012 | - | ||||||||||
Net Income (loss) from discontinued operations | $ | 4,368,263 | $ | -436,277 | $ | 3,688,568 | $ | -1,009,050 | ||||||
The following table summarized the assets and liabilities for property discontinued: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Assets related to discontinued operations: | ||||||||||||||
Land | - | $ | 1,905,985 | |||||||||||
Buildings | - | 13,829,390 | ||||||||||||
Furniture and equipment | - | 6,375 | ||||||||||||
Less: accumulated depreciation | - | -2,087,424 | ||||||||||||
Net real estate | - | 13,654,326 | ||||||||||||
Other assets | 49,881 | 544,480 | ||||||||||||
Total assets related to discontinued operations | $ | 49,881 | $ | 14,198,806 | ||||||||||
Liabilities related to discontinued operations: | ||||||||||||||
Mortgage debt | $ | - | $ | 14,009,797 | ||||||||||
Mortgage related interest and fees | - | 3,287,507 | ||||||||||||
Other liabilities | 18,867 | 546,185 | ||||||||||||
Total liabilities related to discontinued operations | $ | 18,867 | $ | 17,843,489 | ||||||||||
Estimated_Fair_Value_of_Financ1
Estimated Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(Amounts in thousands) | (Amounts in thousands) | |||||||||||||
Net Carrying | Estimated | Net Carrying | Estimated | |||||||||||
Value (1) | Fair Value | Value (1) | Fair Value | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 704 | $ | 704 | $ | 853 | $ | 853 | ||||||
Notes Receivable | 2 | 2 | 15 | 15 | ||||||||||
Liabilities: | ||||||||||||||
Mortgage debt | 471 | 471 | 489 | 489 | ||||||||||
Line of credit | 300 | 300 | - | - | ||||||||||
(1) Net carrying value is net of valuation reserves and discounts where applicable. | ||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Textual) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 60.00% | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 148,000 | 148,000 | ' |
Allowance For Doubtful Other Receivables, Current | $9,395 | ' | $7,506 |
Real_Estate_Details
Real Estate (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Real Estate [Line Items] | ' | ' |
Land | $79,100 | $79,100 |
Buildings | 985,287 | 982,408 |
Furniture and equipment | 50,026 | 50,026 |
Total | 1,114,413 | 1,111,534 |
Accumulated depreciation | -501,398 | -465,016 |
Total | $613,015 | $646,518 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Revenues: | ' | ' | ' | ' | ' |
Rental | $858,109 | $860,954 | $2,656,689 | $2,755,212 | ' |
General and administrative expenes | 0 | 2,371 | 0 | 6,004 | ' |
Rental property expenses: | ' | ' | ' | ' | ' |
Operating | 539,657 | 714,851 | 1,744,117 | 1,859,873 | ' |
Interest on mortgage debt | 556,131 | 502,028 | 1,673,956 | 1,661,279 | ' |
Real estate taxes | 78,742 | 78,742 | 236,122 | 236,227 | ' |
Amortization of in place lease values | 0 | 0 | 0 | 3,456 | ' |
Total expense | 1,174,530 | 1,297,992 | 3,654,195 | 3,766,839 | ' |
Investment income | 672 | 761 | 2,062 | 2,577 | ' |
Loss from discontinued operations | -315,749 | -436,277 | -995,444 | -1,009,050 | ' |
Net gain from foreclosure of discontinued operations | 4,684,012 | 0 | 4,684,012 | 0 | ' |
Net Income (loss) from discontinued operations | 4,368,263 | -436,277 | 3,688,568 | -1,009,050 | ' |
Assets related to discontinued operations: | ' | ' | ' | ' | ' |
Land | 0 | ' | 0 | ' | 1,905,985 |
Buildings | 0 | ' | 0 | ' | 13,829,390 |
Furniture and equipment | 0 | ' | 0 | ' | 6,375 |
Less: accumulated depreciation | 0 | ' | 0 | ' | -2,087,424 |
Net real estate | 0 | ' | 0 | ' | 13,654,326 |
Other assets | 49,881 | ' | 49,881 | ' | 544,480 |
Total assets related to discontinued operations | 49,881 | ' | 49,881 | ' | 14,198,806 |
Liabilities related to discontinued operations: | ' | ' | ' | ' | ' |
Mortgage debt | 0 | ' | 0 | ' | 14,009,797 |
Mortgage related interest and fees | 0 | ' | 0 | ' | 3,287,507 |
Other liabilities | 18,867 | ' | 18,867 | ' | 546,185 |
Total liabilities related to discontinued operations | $18,867 | ' | $18,867 | ' | $17,843,489 |
Mortgage_Debt_Details_Textual
Mortgage Debt (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 08, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
Heto Roy [Member] | ||||
Mortgage Debt [Line Items] | ' | ' | ' | ' |
Mortgaged Debt Recorded In Discontinued Operation | ' | ' | ' | $14,009,797 |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 500,000 | ' | ' | ' |
Mortgage and Line Of Credit Total | 1,000,000 | ' | ' | ' |
Mortgage Loans on Real Estate, Interest Rate | 5.00% | ' | ' | ' |
Mortgage Debt Maturity Period | '5 years | ' | ' | ' |
Mortgage Loan Interest Rate Adjustment Description | 'interest will adjust monthly equal to the bank’s Prime Rate, plus 1% with an interest rate floor of 5%, for a term of 15 years | ' | ' | ' |
Proceeds from Sale of Mortgage Loans Held-for-sale | 459,620 | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | 500,000 | 300,000 | 0 | ' |
Line of Credit Facility, Interest Rate Description | 'with an interest rate of 1% over the bank’s Prime Rate or 4.25%. | ' | ' | ' |
Mortgage payable | ' | 471,296 | 488,748 | ' |
Gain (Loss) on Sale of Debt Investments | ' | $4,684,012 | ' | ' |
Hato_Rey_Partnership_Details_T
Hato Rey Partnership (Details Textual) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Noncontrolling Interest [Line Items] | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 60.00% | ' |
Loan Provided To Partnership Firm Interest Percentage | 13.00% | ' |
Loan Provided To Partnership Firm | $2,670,000 | $2,670,000 |
Accrued Interest On Loan Provided To Partnership Firm Interest Percentage | ' | $1,614,941 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax [Line Items] | ' |
Tax Income | $3,000,000 |
Tax Income Per Share | $0.82 |
Capital Gain | 280,000 |
Capital Gain Per Share | 0.08 |
Tax Loss | 18,500,000 |
Hato Rey [Member] | ' |
Income Tax [Line Items] | ' |
Tax Income | 3,800,000 |
Tax Income Per Share | $1.03 |
Capital Gain | 280,000 |
Capital Gain Per Share | $0.08 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Related Parties (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 08, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Commitments, Contingencies and Related parties [Line Items] | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense, Sublease Rentals | ' | ' | ' | $433 | ' | $5,200 |
Operating Leases Rent Expense Sublease Rentals Per Monthly | ' | ' | ' | 1,100 | 13,200 | ' |
Cost Of Repair Of Property | ' | ' | ' | 1,100,000 | ' | ' |
Percentage Of Monthly Rental Income From Tenant | 5.00% | ' | ' | ' | ' | ' |
Asset Management Fees | ' | 12,600 | 10,300 | 39,000 | 35,000 | ' |
Operating Leases, Rent Expense | ' | 3,300 | 1,300 | 4,600 | 3,900 | ' |
Payment for Management Fee | $1.50 | $9,200 | $6,400 | $27,800 | $24,100 | ' |
Finance Fee Percentage | 1.00% | ' | ' | ' | ' | ' |
Disposition Fee Percentage | 1.00% | ' | ' | ' | ' | ' |
PDL Inc [Member] | ' | ' | ' | ' | ' | ' |
Commitments, Contingencies and Related parties [Line Items] | ' | ' | ' | ' | ' | ' |
Liability To Be Allocated | ' | ' | ' | 1.00% | ' | ' |
Parent Company [Member] | ' | ' | ' | ' | ' | ' |
Commitments, Contingencies and Related parties [Line Items] | ' | ' | ' | ' | ' | ' |
Liability To Be Allocated | ' | ' | ' | 45.00% | ' | ' |
Lester Cohen [Member] | ' | ' | ' | ' | ' | ' |
Commitments, Contingencies and Related parties [Line Items] | ' | ' | ' | ' | ' | ' |
Liability To Be Allocated | ' | ' | ' | 9.00% | ' | ' |
F.D. Rich Company of Puerto Rico, Inc. | ' | ' | ' | ' | ' | ' |
Commitments, Contingencies and Related parties [Line Items] | ' | ' | ' | ' | ' | ' |
Liability To Be Allocated | ' | ' | ' | 45.00% | ' | ' |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 08, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price | $1.25 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 148,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | ' | $0 | ' | $0 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | ' | 592,000 | ' | 592,000 | ' |
Stock Based Compensation | ' | $0 | $0 | $0 | $98,667 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 740,000 | ' | ' | ' | ' |
Estimated_Fair_Value_of_Financ2
Estimated Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 08, 2012 | ||
Liabilities: | ' | ' | ' | ||
Line of Credit | $300,000 | $0 | $500,000 | ||
Reported Value Measurement [Member] | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Cash and cash equivelents | 704,000 | [1] | 853,000 | [1] | ' |
Notes Receivable | 2,000 | [1] | 15,000 | [1] | ' |
Liabilities: | ' | ' | ' | ||
Mortgage debt | 471,000 | [1] | 489,000 | [1] | ' |
Line of Credit | 300,000 | [1] | 0 | [1] | ' |
Estimate of Fair Value Measurement [Member] | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Cash and cash equivelents | 704,000 | 853,000 | ' | ||
Notes Receivable | 2,000 | 15,000 | ' | ||
Liabilities: | ' | ' | ' | ||
Mortgage debt | 471,000 | 489,000 | ' | ||
Line of Credit | $300,000 | $0 | ' | ||
[1] | Net carrying value is net of valuation reserves and discounts where applicable. |