Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SANTA FE FINANCIAL CORP | |
Entity Central Index Key | 0000086759 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,241,810 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
ASSETS | ||
Investment in hotel, net | $ 36,391,000 | $ 36,336,000 |
Investment in real estate, net | 4,838,000 | 4,866,000 |
Investment in marketable securities | 2,352,000 | 2,679,000 |
Other investments, net | 328,000 | 351,000 |
Cash and cash equivalents | 9,964,000 | 9,800,000 |
Restricted cash | 10,995,000 | 11,027,000 |
Accounts receivable - hotel, net | 943,000 | 848,000 |
Other assets, net | 1,406,000 | 1,643,000 |
Deferred tax assets | 6,402,000 | 6,402,000 |
Total assets | 73,619,000 | 73,952,000 |
Liabilities: | ||
Accounts payable and other liabilities - Justice | 10,758,000 | 11,298,000 |
Accounts payable and other liabilities | 634,000 | 362,000 |
Accounts payable to related party | 5,347,000 | 5,105,000 |
Due to securities broker | 313,000 | 396,000 |
Obligations for securities sold | 673,000 | 625,000 |
Related party and other notes payable | 8,079,000 | 8,221,000 |
Finance leases | 1,385,000 | 1,486,000 |
Mortgage notes payable - real estate | 3,313,000 | 3,315,000 |
Mortgage notes payable - hotel, net | 112,349,000 | 113,087,000 |
Total liabilities | 142,851,000 | 143,895,000 |
Shareholders' deficit: | ||
Common stock - par value $.10 per share; Authorized - 2,000,000; Issued 1,339,638 and outstanding 1,241,810 as of September 30, 2019 and June 30, 2019 | 134,000 | 134,000 |
Additional paid-in capital | 8,808,000 | 8,808,000 |
Accumulated deficit | (53,822,000) | (54,183,000) |
Treasury stock, at cost, 97,828 shares | (951,000) | (951,000) |
Total Santa Fe shareholders' deficit | (45,831,000) | (46,192,000) |
Noncontrolling interest | (23,401,000) | (23,751,000) |
Total shareholders' deficit | (69,232,000) | (69,943,000) |
Total liabilities and shareholders' deficit | $ 73,619,000 | $ 73,952,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 1,339,638 | 1,339,638 |
Common stock, shares outstanding | 1,241,810 | 1,241,810 |
Treasury stock, shares | 97,828 | 97,828 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||
Total revenues | $ 15,508,000 | $ 15,887,000 |
Costs and operating expenses: | ||
Depreciation and amortization expense | (596,000) | (644,000) |
General and administrative expense | (324,000) | (256,000) |
Total costs and operating expenses | (12,302,000) | (11,767,000) |
Income from operations | 3,206,000 | 4,120,000 |
Other income (expense): | ||
Interest expense - mortgage | (1,817,000) | (1,942,000) |
Interest expense - related party | (131,000) | (116,000) |
Net loss on marketable securities | (66,000) | (11,000) |
Net loss on marketable securities - Comstock | (225,000) | (266,000) |
Dividend and interest income | 60,000 | 15,000 |
Trading and margin interest expense | (73,000) | (103,000) |
Total other expense, net | (2,252,000) | (2,423,000) |
Income before income taxes | 954,000 | 1,697,000 |
Income tax expense | (243,000) | (630,000) |
Net income | 711,000 | 1,067,000 |
Less: Net income attributable to the noncontrolling interest | (350,000) | (501,000) |
Net income attributable to Santa Fe | $ 361,000 | $ 566,000 |
Basic and diluted net income per share attributable to Santa Fe | $ 0.29 | $ 0.46 |
Weighted average number of common shares outstanding - basic and diluted | 1,241,810 | 1,241,810 |
Hotel [Member] | ||
Revenues: | ||
Total revenues | $ 15,429,000 | $ 15,810,000 |
Costs and operating expenses: | ||
Operating expenses | (11,348,000) | (10,810,000) |
Real Estate [Member] | ||
Revenues: | ||
Total revenues | 79,000 | 77,000 |
Costs and operating expenses: | ||
Operating expenses | $ (34,000) | $ (57,000) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total Santa Fe Shareholders' Deficit [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2018 | $ 134,000 | $ 8,808,000 | $ (57,442,000) | $ (951,000) | $ (49,451,000) | $ (24,606,000) | $ (74,057,000) |
Balance, shares at Jun. 30, 2018 | 1,339,638 | ||||||
Net income | 566,000 | 566,000 | 501,000 | 1,067,000 | |||
Balance at Sep. 30, 2018 | $ 134,000 | 8,808,000 | (56,876,000) | (951,000) | (48,885,000) | (24,105,000) | (72,990,000) |
Balance, shares at Sep. 30, 2018 | 1,339,638 | ||||||
Balance at Jun. 30, 2019 | $ 134,000 | 8,808,000 | (54,183,000) | (951,000) | (46,192,000) | (23,751,000) | (69,943,000) |
Balance, shares at Jun. 30, 2019 | 1,339,638 | ||||||
Net income | 361,000 | 361,000 | 350,000 | 711,000 | |||
Balance at Sep. 30, 2019 | $ 134,000 | $ 8,808,000 | $ (53,822,000) | $ (951,000) | $ (45,831,000) | $ (23,401,000) | $ (69,232,000) |
Balance, shares at Sep. 30, 2019 | 1,339,638 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 711,000 | $ 1,067,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net unrealized loss on marketable securities | 287,000 | 318,000 |
Deferred taxes | 630,000 | |
Depreciation and amortization | 586,000 | 621,000 |
Changes in assets and liabilities: | ||
Investment in marketable securities | 40,000 | (348,000) |
Accounts receivable | (95,000) | 679,000 |
Other assets | 237,000 | 145,000 |
Accounts payable and other liabilities - Justice | (540,000) | (547,000) |
Accounts payable and other liabilities | 272,000 | 12,000 |
Accounts payable to related party | 242,000 | 121,000 |
Due to securities broker | (83,000) | 316,000 |
Obligations for securities sold | 48,000 | 13,000 |
Net cash provided by operating activities | 1,705,000 | 3,027,000 |
Cash flows from investing activities: | ||
Payments for hotel and real estate investments | (623,000) | (282,000) |
Proceeds from other investments | 23,000 | 50,000 |
Net cash used in investing activities | (600,000) | (232,000) |
Cash flows from financing activities: | ||
Net payments of mortgage and other notes payable | (973,000) | (146,000) |
Net cash used in financing activities | (973,000) | (146,000) |
Net increase in cash, cash equivalents and restricted cash: | 132,000 | 2,649,000 |
Cash, cash equivalents and restricted cash at the beginning of the period | 20,827,000 | 14,766,000 |
Cash, cash equivalents and restricted cash at the end of the period | 20,959,000 | 17,415,000 |
Supplemental information: | ||
Interest paid | 1,966,000 | 2,095,000 |
Tax refund received | $ (17,000) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial statements included herein have been prepared by Santa Fe Financial Corporation (“Santa Fe” or the “Company”), without audit, according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures that are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which included only normal recurring adjustments) necessary for a fair statement of the financial position, cash flows and results of operations as of and for the periods indicated. It is suggested that these financial statements be read in conjunction with the audited financial statements of Santa Fe and the notes therein included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019. The September 30, 2019 Condensed Consolidated Balance Sheet was derived from the Consolidated Balance Sheet as included in the Company’s Form 10-K for the year ended June 30, 2019. The results of operations for the three months ended September 30, 2019 are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2020. Santa Fe Financial owns approximately 68.8% of the outstanding common shares of Portsmouth Square, Inc. (“Portsmouth”), a public company (OTC Market Inc.’s Pink: PRSI). Santa Fe is an 86.3%-owned subsidiary of The InterGroup Corporation (“InterGroup”), a public company (NASDAQ Capital Market: INTG). This percentage includes the power to vote an approximately 4% interest in the common stock in Santa Fe owned by InterGroup’s Chairman and President pursuant to a voting trust agreement entered into on June 30, 1998. InterGroup also directly owns approximately 13.4% of the common stock of Portsmouth. Portsmouth’s primary business is conducted through its general and limited partnership interest in Justice Investors Limited Partnership; a California limited partnership (“Justice” or the “Partnership”). Portsmouth controls 93.3% of the voting interest in Justice and is the sole general partner. The financial statements of Justice are consolidated with those of Portsmouth. Justice, through its subsidiaries Justice Operating Company, LLC (“Operating”) and Justice Mezzanine Company, LLC (“Mezzanine”) owns and operates a 544-room hotel property located at 750 Kearny Street, San Francisco California, known as the Hilton San Francisco Financial District (the “Hotel”) and related facilities including a five-level underground parking garage. Mezzanine is a wholly-owned subsidiary of the Partnership; Operating is a wholly-owned subsidiary of Mezzanine. Mezzanine is the borrower under certain mezzanine indebtedness of Justice, and in December 2013, the Partnership conveyed ownership of the Hotel to Operating. The Hotel is operated by the partnership as a full-service Hilton brand hotel pursuant to a Franchise License Agreement with HLT Franchise Holding LLC (Hilton) through January 31, 2030. Justice entered into a Hotel management agreement (“HMA”) with Interstate Management Company, LLC (“Interstate”) to manage the Hotel, along with its five-level parking garage, with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of ten years commencing on the takeover date and automatically renews for successive one (1) year periods, to not exceed five years in the aggregate, subject to certain conditions. Under the terms on the HMA, base management fee payable to Interstate shall be one and seven-tenths percent (1.70%) of total Hotel revenue. On August 29, 2019, Interstate announced that it entered into a definitive agreement to merge with Aimbridge Hospitality. The transaction is subject to regulatory and customary closing conditions and is expected to be completed by the end of calendar year 2019. Due to Securities Broker Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. Obligations for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the condensed consolidated statements of operations. Income Tax The Company consolidates Justice (“Hotel”) for financial reporting purposes and is not taxed on its non-controlling interest in the Hotel. The income tax expense during the three months ended September 30, 2019 and 2018 represent the income tax effect on the Company’s pretax income which includes its share in the net income of the Hotel. For the three months ended September 30, 2018, the income tax expense includes adjustments relating to the changes in the deferred tax assets as a result of tax law changes. Financial Condition and Liquidity The Company’s cash flows are primarily generated from its Hotel operations. The Company may also receive cash generated from its residential properties and the investment of its cash and marketable securities and other investments. To fund the redemption of limited partnership interests and to repay the prior mortgage of $42,940,000, Justice obtained a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan in December 2013. The mortgage loan is secured by the Partnership’s principal asset, the Hotel. The mortgage loan bears an interest rate of 5.275% per annum with interest only payments due through January 2017. Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. Outstanding principal balance on the loan was $93,397,000 and $93,746,000 as of September 30, 2019 and June 30, 2019, respectively. As additional security for the mortgage loan, there is a limited guaranty executed by Portsmouth in favor of the mortgage lender. The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan has an interest rate of 9.75% per annum and matures on January 1, 2024. As additional security for the mezzanine loan, there is a limited guaranty executed by Portsmouth in favor of the mezzanine lender. Effective as of May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $97,000,000 mortgage loan and the $20,000,000 mezzanine loan. Pursuant to the agreement, InterGroup is required to maintain a certain net worth and liquidity. As of September 30, 2019, InterGroup is in compliance with both requirements. On July 31, 2019, Mezzanine refinanced the mezzanine loan by entering into a new mezzanine loan agreement (“New Mezzanine Loan Agreement”) with Cred Reit Holdco LLC in the amount of $20,000,000. The prior Mezzanine Loan which had a 9.75% per annum interest rate was paid off. Interest rate on the new mezzanine loan is 7.25% and the loan matures on January 1, 2024. Interest only payments are due monthly. In July 2018, InterGroup obtained a revolving $5,000,000 line of credit (“RLOC”) from CIBC Bank USA (“CIBC”). On July 31, 2018, $2,969,000 was drawn from the RLOC to pay off the mortgage note payable at Intergroup Woodland Village Inc. (“Woodland Village”) and a new mortgage note payable was established at Woodland Village due to InterGroup for the amount drawn. Woodland Village holds a three-story apartment complex in Santa Monica, California and is 55.4% and 44.6% owned by the Company and InterGroup, respectively. The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. The RLOC and all accrued and unpaid interest were due in July 2019. In July 2019, InterGroup obtained a modification from CIBC which increased the RLOC by $3,000,000 and extended the maturity date from July 24, 2019 to July 23, 2020. The $2,969,000 mortgage due to InterGroup carries same terms as InterGroup’s RLOC and is included in the mortgage notes payable – real estate in the condensed consolidated balance sheets as of September 30, 2019 and June 30, 2019. The Hotel has continued to generate positive operating income. While the debt service requirements related to the loans may create some additional risk for the Company and its ability to generate cash flows in the future, management believes that cash flows from the operations of the Hotel and the garage will continue to be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. The Company has invested in short-term, income-producing instruments and in equity and debt securities when deemed appropriate. The Company’s marketable securities are classified as trading with unrealized gains and losses recorded through the consolidated statements of operations. Management believes that its cash, marketable securities, and the cash flows generated from those assets and from the partnership management fees, will be adequate to meet the Company’s current and future obligations. Additionally, management believes there is significant appreciated value in the Hotel property to support additional borrowings, if necessary. The following table provides a summary as of September 30, 2019, the Company’s material financial obligations which also includes interest payments: 9 Months Year Year Year Year Total 2020 2021 2022 2023 2024 Thereafter Mortgage notes payable $ 116,709,000 $ 1,112,000 $ 4,525,000 $ 1,642,000 $ 1,732,000 $ 107,403,000 $ 295,000 Related party and other notes payable 9,464,000 3,737,000 1,006,000 1,022,000 744,000 567,000 2,388,000 Interest 27,185,000 5,099,000 6,417,000 6,295,000 6,184,000 3,078,000 112,000 Total $ 153,358,000 $ 9,948,000 $ 11,948,000 $ 8,959,000 $ 8,660,000 $ 111,048,000 $ 2,795,000 In addition to the operations of the Hotel, the Company also generates income from the ownership and management of real estate. On December 31, 1997, the Company acquired a controlling 55.4% interest in Intergroup Woodland Village, Inc. (“Woodland Village”) from InterGroup. Woodland Village’s major asset is a 27-unit apartment complex located in Santa Monica, California. The Company also owns a two-unit apartment building in West Los Angeles, California. Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Revenue
Revenue | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 2 – REVENUE Our revenue from real estate is primarily rental income from residential property leases which is recorded when due from residents and is recognized monthly as earned. The following table present our Hotel revenue disaggregated by revenue streams. For the three months ended September 30, 2019 2018 Hotel revenues: Hotel rooms $ 13,314,000 $ 13,522,000 Food and beverage 1,222,000 1,449,000 Garage 736,000 774,000 Other operating departments 157,000 65,000 Total hotel revenue $ 15,429,000 $ 15,810,000 Performance obligations We identified the following performance obligations for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: ● Cancelable room reservations or ancillary services ● Noncancelable room reservations and banquet or conference reservations ● Other ancillary goods and services ● Components of package reservations Hotel revenue primarily consists of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking). Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our hotel are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered. Contract assets and liabilities We do not have any material contract assets as of September 30, 2019 and June 30, 2019 other than trade and other receivables, net on our condensed consolidated balance sheets. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our hotel, which are presented within accounts payable and other liabilities on our condensed consolidated balance sheets. Contract liabilities increased to $1,161,000 as of September 30, 2019 from $1,215,000 as of June 30, 2019. The increase for the three months ended September 30, 2019 was primarily driven by deposits received from upcoming groups, offset by $620,000 revenue recognized that was included in the advanced deposits balance as of June 30, 2019. Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred as our contracts with customers and lease agreements do not extend beyond one year. |
Investment in Hotel, Net
Investment in Hotel, Net | 3 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investment in Hotel, Net | NOTE 3 – INVESTMENT IN HOTEL, NET Investment in hotel consisted of the following as of: Accumulated Net Book September 30, 2019 Cost Depreciation Value Land $ 1,896,000 $ - $ 1,896,000 Finance lease ROU assets 521,000 (61,000 ) 460,000 Furniture and equipment 31,209,000 (27,040,000 ) 4,169,000 Building and improvements 59,341,000 (29,475,000 ) 29,866,000 Investment in Hotel, net $ 92,967,000 $ (56,576,000 ) $ 36,391,000 Accumulated Net Book June 30, 2019 Cost Depreciation Value Land $ 1,896,000 $ - $ 1,896,000 Finance lease ROU assets 521,000 (35,000 ) 486,000 Furniture and equipment 30,585,000 (26,841,000 ) 3,744,000 Building and improvements 59,341,000 (29,131,000 ) 30,210,000 Investment in Hotel, net $ 92,343,000 $ (56,007,000 ) $ 36,336,000 |
Investment in Real Estate, Net
Investment in Real Estate, Net | 3 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Investment in Real Estate, Net | NOTE 4 – INVESTMENT IN REAL ESTATE, NET The Company owns and operates a 2-unit and 27-unit multi-family apartment complexes located in West Los Angeles, California and Santa Monica, California, respectively. The Company also owns land held for development located in Maui, Hawaii. Investment in real estate consisted of the following: As of September 30, 2019 June 30, 2019 Land $ 2,430,000 $ 2,430,000 Buildings, improvements and equipment 2,921,000 2,922,000 Accumulated depreciation (1,490,000 ) (1,463,000 ) 3,861,000 3,889,000 Land held for development 977,000 977,000 Investment in real estate, net $ 4,838,000 $ 4,866,000 |
Investment in Marketable Securi
Investment in Marketable Securities | 3 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Marketable Securities | NOTE 5 – INVESTMENT IN MARKETABLE SECURITIES The Company’s investment in marketable securities consists primarily of corporate equities. The Company has also periodically invested in corporate bonds and income producing securities, which may include interests in real estate-based companies and REITs, where financial benefit could transfer to its shareholders through income and/or capital gain. At September 30, 2019 and June 30, 2019, all of the Company’s marketable securities are classified as trading securities. The change in the unrealized gains and losses on these investments are included in earnings. Trading securities are summarized as follows: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of September 30, 2019 Corporate Equities $ 5,346,000 $ 381,000 $ (3,375,000 ) $ (2,994,000 ) $ 2,352,000 As of June 30, 2019 Corporate Equities $ 10,922,000 $ 449,000 $ (8,692,000 ) $ (8,243,000 ) $ 2,679,000 As of September 30, 2019, and June 30, 2019, approximately 12% and 19%, respectively, of the investment marketable securities balance above is comprised of the common stock of Comstock Mining, Inc. (“Comstock” – NYSE AMERICAN: LODE). As of September 30, 2019, and June 30, 2019, the Company had $3,298,000 and $8,617,000 respectively, of unrealized losses related to securities held for over one year. As of September 30, 2019, and June 30, 2019, unrealized losses related to the Company’s investment in Comstock were $3,220,000 and $8,556,000, respectively. The decrease in unrealized losses is a result of reclassing $5,560,000 of unrealized gain related to Comstock that was included in the cost basis as of June 30, 2019. Net gains (losses) on marketable securities on the statement of operations is comprised of realized and unrealized gains (losses). Below is the composition of the net gains (losses) on marketable securities for the three months ended September 30, 2019 and 2018, respectively. For the three months ended September 30, 2019 2018 Realized (loss) gain on marketable securities $ (4,000 ) $ 41,000 Unrealized loss on marketable securities (62,000 ) (52,000 ) Unrealized loss on marketable securities related to Comstock (225,000 ) (266,000 ) Net loss on marketable securities $ (291,000 ) $ (277,000 ) |
Other Investments, Net
Other Investments, Net | 3 Months Ended |
Sep. 30, 2019 | |
Other Investments [Abstract] | |
Other Investments, Net | NOTE 6 – OTHER INVESTMENTS, NET The Company may also invest, with the approval of the securities investment committee and other Company guidelines, in private investment equity funds and other unlisted securities, such as convertible notes through private placements. Those investments in non-marketable securities are carried at cost on the Company’s balance sheet as part of other investments, net of other than temporary impairment losses. Other investments, net consist of the following: Type September 30, 2019 June 30, 2019 Private equity hedge fund, at cost $ 233,000 $ 233,000 Other investments 95,000 118,000 $ 328,000 $ 351,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7 – FAIR VALUE MEASUREMENTS The carrying values of the Company’s financial instruments not required to be carried at fair value on a recurring basis approximate fair value due to their short maturities (i.e., accounts receivable, other assets, accounts payable and other liabilities) or the nature and terms of the obligation (i.e., other notes payable and mortgage notes payable). The assets measured at fair value on a recurring basis are as follows: 9/30/2019 6/30/2019 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 817,000 $ 816,000 Consumer cyclical 584,000 636,000 Energy 484,000 286,000 Basic materials 321,000 537,000 Financial services 129,000 331,000 Healthcare 16,000 72,000 Other 1,000 1,000 $ 2,352,000 $ 2,679,000 The fair values of investments in marketable securities are determined by the most recently traded price of each security at the balance sheet date. Financial assets that are measured at fair value on a non-recurring basis and are not included in the tables above include “Other investments, net (non-marketable securities),” that were initially measured at cost and have been written down to fair value as a result of impairment. The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the three Assets Level 3 September 30, 2019 September 30, 2019 Other non-marketable investments $ 328,000 $ 328,000 $ - Net loss for the three Assets Level 3 June 30, 2019 September 30, 2018 Other non-marketable investments $ 351,000 $ 351,000 $ - For the three months ended September 30, 2019 and 2018, we received distribution from other non-marketable investments of $23,000 and $50,000, respectively. Other investments in non-marketable securities are carried at cost net of any impairment loss. The Company has no significant influence or control over the entities that issue these investments and holds less than 20% ownership in each of the investments. These investments are reviewed on a periodic basis for other-than-temporary impairment. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include but are not limited to: (i) the length of time an investment is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer and (iv) our ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | NOTE 8 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows. As of 9/30/2019 6/30/2019 Cash and cash equivalents $ 9,964,000 $ 9,800,000 Restricted cash 10,995,000 11,027,000 Total cash, cash equivalents, and restricted cash shown in the $ 20,959,000 $ 20,827,000 Restricted cash is comprised of amounts held by lenders for payment of real estate taxes, insurance, replacement and capital addition reserves for the Hotel. It also includes key money received from Interstate that is restricted for capital improvements for the Hotel. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 9 – SEGMENT INFORMATION The Company operates in three reportable segments, the operation of the Hotel (“Hotel Operations”), its multi-family residential properties (“Real Estate Operations”) and the investment of its cash in marketable securities and other investments (“Investment Transactions”). These three operating segments, as presented in the financial statements, reflect how management internally reviews each segment’s performance. Management also makes operational and strategic decisions based on this same information. Information below represents reporting segments for the three months ended September 30, 2019 and 2018, respectively. Segment income from Hotel operations consists of the operation of the Hotel and operation of the garage. Segment income (loss) from real estate operations consists of the operation of the rental properties. Segment (loss) gain from investments consists of net investment gain (loss), dividend and interest income and investment related expenses. As of and for the three months Hotel Real Estate Investment ended September 30, 2019 Operations Operations Transactions Corporate Total Revenues $ 15,429,000 $ 79,000 $ - $ - $ 15,508,000 Segment operating expenses (11,348,000 ) (34,000 ) - (324,000 ) (11,706,000 ) Segment income (loss) 4,081,000 45,000 - (324,000 ) 3,802,000 Interest expense (1,923,000 ) (25,000 ) - - (1,948,000 ) Depreciation and amortization expense (568,000 ) (28,000 ) - - (596,000 ) Loss from investments - - (304,000 ) - (304,000 ) Income tax expense - - - (243,000 ) (243,000 ) Net income (loss) $ 1,590,000 $ (8,000 ) $ (304,000 ) $ (567,000 ) $ 711,000 Total assets $ 58,596,000 $ 4,838,000 $ 2,680,000 $ 7,505,000 $ 73,619,000 For the three months Hotel Real Estate Investment ended September 30, 2018 Operations Operations Transactions Corporate Total Revenues $ 15,810,000 $ 77,000 $ - $ - $ 15,887,000 Segment operating expenses (10,810,000 ) (57,000 ) - (256,000 ) (11,123,000 ) Segment income (loss) 5,000,000 20,000 - (256,000 ) 4,764,000 Interest expense (1,905,000 ) (153,000 ) - - (2,058,000 ) Depreciation and amortization expense (617,000 ) (27,000 ) - - (644,000 ) Loss from investments - - (365,000 ) - (365,000 ) Income tax expense - - - (630,000 ) (630,000 ) Net income (loss) $ 2,478,000 $ (160,000 ) $ (365,000 ) $ (886,000 ) $ 1,067,000 |
Related Party and Other Financi
Related Party and Other Financing Transactions | 3 Months Ended |
Sep. 30, 2019 | |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | |
Related Party and Other Financing Transactions | NOTE 10 – RELATED PARTY AND OTHER FINANCING TRANSACTIONS The following summarizes the balances of related party and other notes payable as of September 30, 2019 and June 30, 2019, respectively. As of 9/30/2019 6/30/2019 Note payable - InterGroup $ 3,000,000 $ 3,000,000 Note payable - Hilton 3,246,000 3,325,000 Note payable - Interstate 1,833,000 1,896,000 Total related party and other notes payable $ 8,079,000 $ 8,221,000 On July 2, 2014, the Partnership obtained from InterGroup an unsecured loan in the principal amount of $4,250,000 at 12% per year fixed interest, with a term of 2 years, payable interest only each month. InterGroup received a 3% loan fee. The loan may be prepaid at any time without penalty. The loan was extended to December 31, 2019. Note payable to Hilton (Franchisor) is a self-exhausting, interest free development incentive note which is reduced by approximately $316,000 annually through 2030 by Hilton if the Partnership is still a Franchisee with Hilton. On February 1, 2017, Justice entered into an HMA with Interstate to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in aggregate subject to certain conditions. The HMA also provides for Interstate to advance a key money incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms and conditions described in a separate key money agreement. The key money contribution shall be amortized in equal monthly amounts over an eight (8) year period commencing on the second (2 nd As of September 30, 2019, the Company had finance lease obligations outstanding of $1,385,000. These finance leases expire in various years through 2023 at rates ranging from 5.77% to 6.25% per annum. Minimum future lease payments for assets under finance leases as of September 30, 2019 are as follows: For the year ending June 30, 2020 $ 369,000 2021 492,000 2022 482,000 2023 183,000 Total minimum lease payments 1,526,000 Less interest on finance lease (141,000 ) Present value of future minimum lease payments $ 1,385,000 Future minimum principal payments for all related party and other financing transactions are as follows: For the year ending June 30, 2020 $ 3,737,000 2021 1,006,000 2022 1,022,000 2023 744,000 2024 567,000 Thereafter 2,388,000 $ 9,464,000 In July 2018, InterGroup obtained a revolving $5,000,000 line of credit (“RLOC”) from CIBC Bank USA (“CIBC”). On July 31, 2018, $2,969,000 was drawn from the RLOC to pay off the mortgage note payable at Woodland Village and a new mortgage note payable was established at Woodland Village due to InterGroup for the amount drawn. The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. The RLOC and all accrued and unpaid interest were due in July 2019. In July 2019, InterGroup obtained a modification from CIBC which increased the RLOC by $3,000,000 and extended the maturity date from July 24, 2019 to July 23, 2020. The $2,969,000 mortgage due to InterGroup carries same terms as InterGroup’s RLOC and is included in the mortgage notes payable – real estate in the condensed consolidated balance sheets as of September 30, 2019 and June 30, 2019. As of September 30, 2019 and June 30, 2019, the Company had accounts payable to related party of $5,347,000 and $5,105,000, respectively. These are amounts due to InterGroup and they represent certain shared costs and expenses, primarily general and administrative expenses, rent, insurance and other expenses that are allocated among the Company, Portsmouth and InterGroup. Effective May 12, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under environmental indemnity for Justice Investors limited partnership’s $97,000,000 mortgage loan and the $20,000,000 mezzanine loan, in order to maintain certain minimum net worth and liquidity guarantor covenant requirements that Portsmouth was unable to satisfy independently as of March 31, 2017. All of the Portsmouth directors serve as directors of InterGroup. Three of those directors also serve as directors of Santa Fe. The three Santa Fe directors also serve as directors of InterGroup. The Company’s Board of Directors is currently comprised of directors John V. Winfield, William J. Nance, and John C. Love. All of the Company’s directors also serve as directors of InterGroup and Portsmouth. As Chairman of the Securities Investment Committee, the Company’s President and Chief Executive Officer (CEO), John V. Winfield, directs the investment activity of the Company in public and private markets pursuant to authority granted by the Board of Directors. Mr. Winfield also serves as Chief Executive Officer and Chairman of the Portsmouth and InterGroup and oversees the investment activity of those companies. Depending on certain market conditions and various risk factors, the Chief Executive Officer, Portsmouth and InterGroup may, at times, invest in the same companies in which the Company invests. Such investments align the interests of the Company with the interests of related parties because it places the personal resources of the Chief Executive Officer and the resources of the Portsmouth and InterGroup, at risk in substantially the same manner as the Company in connection with investment decisions made on behalf of the Company. |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities - Justice | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities - Justice | NOTE 11 – ACCOUNTS PAYABLE AND OTHER LIABILITIES - JUSTICE The following summarizes the balances of accounts payable and other liabilities – Justice as of September 30, 2019 and June 30, 2019. As of 9/30/2019 6/30/2019 Trade payable $ 1,581,000 $ 1,792,000 Advance deposits 1,161,000 1,215,000 Property tax payable 1,538,000 1,046,000 Payroll and related accruals 2,639,000 2,584,000 Interest payable 411,000 412,000 Withholding and other taxes payable 1,193,000 1,831,000 Security deposit 52,000 52,000 Other payables 2,183,000 2,366,000 Total accounts payable and other liabilities - Justice $ 10,758,000 $ 11,298,000 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Due to Securities Broker | Due to Securities Broker Various securities brokers have advanced funds to the Company for the purchase of marketable securities under standard margin agreements. These advanced funds are recorded as a liability. |
Obligations for Securities Sold | Obligations for Securities Sold Obligation for securities sold represents the fair market value of shares sold with the promise to deliver that security at some future date and the fair market value of shares underlying the written call options with the obligation to deliver that security when and if the option is exercised. The obligation may be satisfied with current holdings of the same security or by subsequent purchases of that security. Unrealized gains and losses from changes in the obligation are included in the condensed consolidated statements of operations. |
Income Tax | Income Tax The Company consolidates Justice (“Hotel”) for financial reporting purposes and is not taxed on its non-controlling interest in the Hotel. The income tax expense during the three months ended September 30, 2019 and 2018 represent the income tax effect on the Company’s pretax income which includes its share in the net income of the Hotel. For the three months ended September 30, 2018, the income tax expense includes adjustments relating to the changes in the deferred tax assets as a result of tax law changes. |
Financial Condition and Liquidity | Financial Condition and Liquidity The Company’s cash flows are primarily generated from its Hotel operations. The Company may also receive cash generated from its residential properties and the investment of its cash and marketable securities and other investments. To fund the redemption of limited partnership interests and to repay the prior mortgage of $42,940,000, Justice obtained a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan in December 2013. The mortgage loan is secured by the Partnership’s principal asset, the Hotel. The mortgage loan bears an interest rate of 5.275% per annum with interest only payments due through January 2017. Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. Outstanding principal balance on the loan was $93,397,000 and $93,746,000 as of September 30, 2019 and June 30, 2019, respectively. As additional security for the mortgage loan, there is a limited guaranty executed by Portsmouth in favor of the mortgage lender. The mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine interest only loan has an interest rate of 9.75% per annum and matures on January 1, 2024. As additional security for the mezzanine loan, there is a limited guaranty executed by Portsmouth in favor of the mezzanine lender. Effective as of May 11, 2017, InterGroup agreed to become an additional guarantor under the limited guaranty and an additional indemnitor under the environmental indemnity for Justice Investors limited partnership’s $97,000,000 mortgage loan and the $20,000,000 mezzanine loan. Pursuant to the agreement, InterGroup is required to maintain a certain net worth and liquidity. As of September 30, 2019, InterGroup is in compliance with both requirements. On July 31, 2019, Mezzanine refinanced the mezzanine loan by entering into a new mezzanine loan agreement (“New Mezzanine Loan Agreement”) with Cred Reit Holdco LLC in the amount of $20,000,000. The prior Mezzanine Loan which had a 9.75% per annum interest rate was paid off. Interest rate on the new mezzanine loan is 7.25% and the loan matures on January 1, 2024. Interest only payments are due monthly. In July 2018, InterGroup obtained a revolving $5,000,000 line of credit (“RLOC”) from CIBC Bank USA (“CIBC”). On July 31, 2018, $2,969,000 was drawn from the RLOC to pay off the mortgage note payable at Intergroup Woodland Village Inc. (“Woodland Village”) and a new mortgage note payable was established at Woodland Village due to InterGroup for the amount drawn. Woodland Village holds a three-story apartment complex in Santa Monica, California and is 55.4% and 44.6% owned by the Company and InterGroup, respectively. The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. The RLOC and all accrued and unpaid interest were due in July 2019. In July 2019, InterGroup obtained a modification from CIBC which increased the RLOC by $3,000,000 and extended the maturity date from July 24, 2019 to July 23, 2020. The $2,969,000 mortgage due to InterGroup carries same terms as InterGroup’s RLOC and is included in the mortgage notes payable – real estate in the condensed consolidated balance sheets as of September 30, 2019 and June 30, 2019. The Hotel has continued to generate positive operating income. While the debt service requirements related to the loans may create some additional risk for the Company and its ability to generate cash flows in the future, management believes that cash flows from the operations of the Hotel and the garage will continue to be sufficient to meet all of the Partnership’s current and future obligations and financial requirements. The Company has invested in short-term, income-producing instruments and in equity and debt securities when deemed appropriate. The Company’s marketable securities are classified as trading with unrealized gains and losses recorded through the consolidated statements of operations. Management believes that its cash, marketable securities, and the cash flows generated from those assets and from the partnership management fees, will be adequate to meet the Company’s current and future obligations. Additionally, management believes there is significant appreciated value in the Hotel property to support additional borrowings, if necessary. The following table provides a summary as of September 30, 2019, the Company’s material financial obligations which also includes interest payments: 9 Months Year Year Year Year Total 2020 2021 2022 2023 2024 Thereafter Mortgage notes payable $ 116,709,000 $ 1,112,000 $ 4,525,000 $ 1,642,000 $ 1,732,000 $ 107,403,000 $ 295,000 Related party and other notes payable 9,464,000 3,737,000 1,006,000 1,022,000 744,000 567,000 2,388,000 Interest 27,185,000 5,099,000 6,417,000 6,295,000 6,184,000 3,078,000 112,000 Total $ 153,358,000 $ 9,948,000 $ 11,948,000 $ 8,959,000 $ 8,660,000 $ 111,048,000 $ 2,795,000 In addition to the operations of the Hotel, the Company also generates income from the ownership and management of real estate. On December 31, 1997, the Company acquired a controlling 55.4% interest in Intergroup Woodland Village, Inc. (“Woodland Village”) from InterGroup. Woodland Village’s major asset is a 27-unit apartment complex located in Santa Monica, California. The Company also owns a two-unit apartment building in West Los Angeles, California. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Financial Obligations Includes Interest Payments | The following table provides a summary as of September 30, 2019, the Company’s material financial obligations which also includes interest payments: 9 Months Year Year Year Year Total 2020 2021 2022 2023 2024 Thereafter Mortgage notes payable $ 116,709,000 $ 1,112,000 $ 4,525,000 $ 1,642,000 $ 1,732,000 $ 107,403,000 $ 295,000 Related party and other notes payable 9,464,000 3,737,000 1,006,000 1,022,000 744,000 567,000 2,388,000 Interest 27,185,000 5,099,000 6,417,000 6,295,000 6,184,000 3,078,000 112,000 Total $ 153,358,000 $ 9,948,000 $ 11,948,000 $ 8,959,000 $ 8,660,000 $ 111,048,000 $ 2,795,000 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Hotel Revenues Disaggregated by Revenue Streams | The following table present our Hotel revenue disaggregated by revenue streams. For the three months ended September 30, 2019 2018 Hotel revenues: Hotel rooms $ 13,314,000 $ 13,522,000 Food and beverage 1,222,000 1,449,000 Garage 736,000 774,000 Other operating departments 157,000 65,000 Total hotel revenue $ 15,429,000 $ 15,810,000 |
Investment in Hotel, Net (Table
Investment in Hotel, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Schedule of Investment in Hotel | Investment in hotel consisted of the following as of: Accumulated Net Book September 30, 2019 Cost Depreciation Value Land $ 1,896,000 $ - $ 1,896,000 Finance lease ROU assets 521,000 (61,000 ) 460,000 Furniture and equipment 31,209,000 (27,040,000 ) 4,169,000 Building and improvements 59,341,000 (29,475,000 ) 29,866,000 Investment in Hotel, net $ 92,967,000 $ (56,576,000 ) $ 36,391,000 Accumulated Net Book June 30, 2019 Cost Depreciation Value Land $ 1,896,000 $ - $ 1,896,000 Finance lease ROU assets 521,000 (35,000 ) 486,000 Furniture and equipment 30,585,000 (26,841,000 ) 3,744,000 Building and improvements 59,341,000 (29,131,000 ) 30,210,000 Investment in Hotel, net $ 92,343,000 $ (56,007,000 ) $ 36,336,000 |
Investment in Real Estate, Net
Investment in Real Estate, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Investment in Real Estate | The Company also owns land held for development located in Maui, Hawaii. Investment in real estate consisted of the following: As of September 30, 2019 June 30, 2019 Land $ 2,430,000 $ 2,430,000 Buildings, improvements and equipment 2,921,000 2,922,000 Accumulated depreciation (1,490,000 ) (1,463,000 ) 3,861,000 3,889,000 Land held for development 977,000 977,000 Investment in real estate, net $ 4,838,000 $ 4,866,000 |
Investment in Marketable Secu_2
Investment in Marketable Securities (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Changes in Unrealized Gains and Losses on Investments | Trading securities are summarized as follows: Gross Gross Net Fair Investment Cost Unrealized Gain Unrealized Loss Unrealized Loss Value As of September 30, 2019 Corporate Equities $ 5,346,000 $ 381,000 $ (3,375,000 ) $ (2,994,000 ) $ 2,352,000 As of June 30, 2019 Corporate Equities $ 10,922,000 $ 449,000 $ (8,692,000 ) $ (8,243,000 ) $ 2,679,000 |
Schedule of Net Loss on Marketable Securities | Below is the composition of the net gains (losses) on marketable securities for the three months ended September 30, 2019 and 2018, respectively. For the three months ended September 30, 2019 2018 Realized (loss) gain on marketable securities $ (4,000 ) $ 41,000 Unrealized loss on marketable securities (62,000 ) (52,000 ) Unrealized loss on marketable securities related to Comstock (225,000 ) (266,000 ) Net loss on marketable securities $ (291,000 ) $ (277,000 ) |
Other Investments, Net (Tables)
Other Investments, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Investments [Abstract] | |
Schedule of Other Investments, Net | Other investments, net consist of the following: Type September 30, 2019 June 30, 2019 Private equity hedge fund, at cost $ 233,000 $ 233,000 Other investments 95,000 118,000 $ 328,000 $ 351,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value On a Recurring Basis | The assets measured at fair value on a recurring basis are as follows: 9/30/2019 6/30/2019 As of Total - Level 1 Total - Level 1 Assets: Investment in marketable securities: REITs and real estate companies $ 817,000 $ 816,000 Consumer cyclical 584,000 636,000 Energy 484,000 286,000 Basic materials 321,000 537,000 Financial services 129,000 331,000 Healthcare 16,000 72,000 Other 1,000 1,000 $ 2,352,000 $ 2,679,000 |
Schedule of Assets Measured at Fair Value On a Non-Recurring Basis | The following table shows the fair value hierarchy for these assets measured at fair value on a non-recurring basis as follows: Net loss for the three Assets Level 3 September 30, 2019 September 30, 2019 Other non-marketable investments $ 328,000 $ 328,000 $ - Net loss for the three Assets Level 3 June 30, 2019 September 30, 2018 Other non-marketable investments $ 351,000 $ 351,000 $ - |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows. As of 9/30/2019 6/30/2019 Cash and cash equivalents $ 9,964,000 $ 9,800,000 Restricted cash 10,995,000 11,027,000 Total cash, cash equivalents, and restricted cash shown in the $ 20,959,000 $ 20,827,000 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Loss from Investments of Net Investment Loss, Dividend and Interest Income | Segment (loss) gain from investments consists of net investment gain (loss), dividend and interest income and investment related expenses. As of and for the three months Hotel Real Estate Investment ended September 30, 2019 Operations Operations Transactions Corporate Total Revenues $ 15,429,000 $ 79,000 $ - $ - $ 15,508,000 Segment operating expenses (11,348,000 ) (34,000 ) - (324,000 ) (11,706,000 ) Segment income (loss) 4,081,000 45,000 - (324,000 ) 3,802,000 Interest expense (1,923,000 ) (25,000 ) - - (1,948,000 ) Depreciation and amortization expense (568,000 ) (28,000 ) - - (596,000 ) Loss from investments - - (304,000 ) - (304,000 ) Income tax expense - - - (243,000 ) (243,000 ) Net income (loss) $ 1,590,000 $ (8,000 ) $ (304,000 ) $ (567,000 ) $ 711,000 Total assets $ 58,596,000 $ 4,838,000 $ 2,680,000 $ 7,505,000 $ 73,619,000 For the three months Hotel Real Estate Investment ended September 30, 2018 Operations Operations Transactions Corporate Total Revenues $ 15,810,000 $ 77,000 $ - $ - $ 15,887,000 Segment operating expenses (10,810,000 ) (57,000 ) - (256,000 ) (11,123,000 ) Segment income (loss) 5,000,000 20,000 - (256,000 ) 4,764,000 Interest expense (1,905,000 ) (153,000 ) - - (2,058,000 ) Depreciation and amortization expense (617,000 ) (27,000 ) - - (644,000 ) Loss from investments - - (365,000 ) - (365,000 ) Income tax expense - - - (630,000 ) (630,000 ) Net income (loss) $ 2,478,000 $ (160,000 ) $ (365,000 ) $ (886,000 ) $ 1,067,000 |
Related Party and Other Finan_2
Related Party and Other Financing Transactions (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | |
Schedule of Related Party and Other Notes Payable | The following summarizes the balances of related party and other notes payable as of September 30, 2019 and June 30, 2019, respectively. As of 9/30/2019 6/30/2019 Note payable - InterGroup $ 3,000,000 $ 3,000,000 Note payable - Hilton 3,246,000 3,325,000 Note payable - Interstate 1,833,000 1,896,000 Total related party and other notes payable $ 8,079,000 $ 8,221,000 |
Schedule of Minimum Future Lease Payments | Minimum future lease payments for assets under finance leases as of September 30, 2019 are as follows: For the year ending June 30, 2020 $ 369,000 2021 492,000 2022 482,000 2023 183,000 Total minimum lease payments 1,526,000 Less interest on finance lease (141,000 ) Present value of future minimum lease payments $ 1,385,000 |
Schedule of Future Minimum Principle Payments | Future minimum principal payments for all related party and other financing transactions are as follows: For the year ending June 30, 2020 $ 3,737,000 2021 1,006,000 2022 1,022,000 2023 744,000 2024 567,000 Thereafter 2,388,000 $ 9,464,000 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities - Justice (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities - Justice | The following summarizes the balances of accounts payable and other liabilities – Justice as of September 30, 2019 and June 30, 2019. As of 9/30/2019 6/30/2019 Trade payable $ 1,581,000 $ 1,792,000 Advance deposits 1,161,000 1,215,000 Property tax payable 1,538,000 1,046,000 Payroll and related accruals 2,639,000 2,584,000 Interest payable 411,000 412,000 Withholding and other taxes payable 1,193,000 1,831,000 Security deposit 52,000 52,000 Other payables 2,183,000 2,366,000 Total accounts payable and other liabilities - Justice $ 10,758,000 $ 11,298,000 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) | Jul. 31, 2019 | Dec. 31, 2013 | Jul. 31, 2019 | Jul. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | May 11, 2017 |
Mortgage loan prior mortgage amount | $ 42,940,000 | ||||||
Mortgage loan face amount | 97,000,000 | ||||||
Outstanding principle balance on loan | $ 93,397,000 | $ 93,746,000 | |||||
Mortgage notes payable | 112,349,000 | 113,087,000 | |||||
Mortgage notes payable - real estate | $ 3,313,000 | 3,315,000 | |||||
CIBC Bank USA [Member] | |||||||
Increase in line of credit facility | $ 3,000,000 | $ 3,000,000 | |||||
Line of credit maturity date, description | extended the maturity date from July 24, 2019 to July 23, 2020 | extended the maturity date from July 24, 2019 to July 23, 2020 | |||||
Mezzanine Loan [Member] | |||||||
Mortgage loan face amount | $ 20,000,000 | $ 20,000,000 | |||||
Loans interest rate | 9.75% | ||||||
Loans maturity date | Jan. 1, 2024 | ||||||
Mortgage Loan [Member] | |||||||
Mortgage loan face amount | $ 97,000,000 | ||||||
Loans interest rate | 5.275% | ||||||
Mortgage loans payment terms | The mortgage loan bears an interest rate of 5.275% per annum with interest only payments due through January 2017. Beginning in February 2017, the loan began to amortize over a thirty-year period through its maturity date of January 2024. | ||||||
Loans maturity date | Jan. 1, 2024 | ||||||
InterGroup Chairman and President [Member] | |||||||
Voting interest | 4.00% | ||||||
InterGroup Corporation [Member] | |||||||
Equity method investment, ownership percentage | 86.30% | ||||||
Noncontrolling interest, ownership percentage by parent | 13.40% | ||||||
Portsmouth [Member] | |||||||
Subsidiary of limited liability company or limited partnership, ownership interest | 93.30% | ||||||
Portsmouth Square, Inc [Member] | |||||||
Equity method investment, ownership percentage | 68.80% | ||||||
Franchise Holding LLC [Member] | Franchise License Agreement [Member] | |||||||
Ownership maturity date | Jan. 31, 2030 | ||||||
Interstate Management Company LLC [Member] | Hotel Management Agreement [Member] | |||||||
Management agreement, term | 10 years | ||||||
Management expiration date | Feb. 3, 2017 | ||||||
Management agreement, renewal term | 5 years | ||||||
Management fee payable rate | 1.70% | ||||||
Cred Reit Holdco LLC [Member] | New Mezzanine Loan Agreement [Member] | |||||||
Loan amount | $ 20,000,000 | $ 20,000,000 | |||||
Cred Reit Holdco LLC [Member] | New Mezzanine Loan Agreement [Member] | New Mezzanine Loan [Member] | |||||||
Loans interest rate | 7.25% | ||||||
Intergroup [Member] | |||||||
Equity method investment, ownership percentage | 44.60% | ||||||
Mortgage notes payable - real estate | $ 2,969,000 | $ 2,969,000 | |||||
Intergroup [Member] | CIBC Bank USA [Member] | |||||||
Line of credit facility | $ 5,000,000 | ||||||
Variable interest rate description | The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. | ||||||
Woodland Village Inc [Member] | |||||||
Mortgage notes payable | $ 2,969,000 | ||||||
Variable interest rate | 3.00% | ||||||
Santa Fee [Member] | |||||||
Equity method investment, ownership percentage | 55.40% |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Financial Obligations Includes Interest Payments (Details) | Sep. 30, 2019USD ($) |
Mortgage notes payable | $ 116,709,000 |
Related party and other notes payable | 9,464,000 |
Interest | 27,185,000 |
Total | 153,358,000 |
9 Months 2020 [Member] | |
Mortgage notes payable | 1,112,000 |
Related party and other notes payable | 3,737,000 |
Interest | 5,099,000 |
Total | 9,948,000 |
Year 2021 [Member] | |
Mortgage notes payable | 4,525,000 |
Related party and other notes payable | 1,006,000 |
Interest | 6,417,000 |
Total | 11,948,000 |
Year 2022 [Member] | |
Mortgage notes payable | 1,642,000 |
Related party and other notes payable | 1,022,000 |
Interest | 6,295,000 |
Total | 8,959,000 |
Year 2023 [Member] | |
Mortgage notes payable | 1,732,000 |
Related party and other notes payable | 744,000 |
Interest | 6,184,000 |
Total | 8,660,000 |
Year 2024 [Member] | |
Mortgage notes payable | 107,403,000 |
Related party and other notes payable | 567,000 |
Interest | 3,078,000 |
Total | 111,048,000 |
Thereafter [Member] | |
Mortgage notes payable | 295,000 |
Related party and other notes payable | 2,388,000 |
Interest | 112,000 |
Total | $ 2,795,000 |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 1,161,000 | $ 1,215,000 |
Contract with customer, liability, revenue recognized | $ 620,000 |
Revenue - Schedule of Hotel Rev
Revenue - Schedule of Hotel Revenues Disaggregated by Revenue Streams (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | $ 15,508,000 | $ 15,887,000 |
Hotel Rooms [Member] | ||
Revenues | 13,314,000 | 13,522,000 |
Food and Beverage [Member] | ||
Revenues | 1,222,000 | 1,449,000 |
Garage [Member] | ||
Revenues | 736,000 | 774,000 |
Other Operating Departments [Member] | ||
Revenues | 157,000 | 65,000 |
Hotel [Member] | ||
Revenues | $ 15,429,000 | $ 15,810,000 |
Investment in Hotel, Net - Sche
Investment in Hotel, Net - Schedule of Investment in Hotel (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Cost | $ 92,967,000 | $ 92,343,000 |
Accumulated Depreciation | (56,576,000) | (56,007,000) |
Net Book Value | 36,391,000 | 36,336,000 |
Land [Member] | ||
Cost | 1,896,000 | 1,896,000 |
Accumulated Depreciation | ||
Net Book Value | 1,896,000 | 1,896,000 |
Finance Lease ROU Assets [Member] | ||
Cost | 521,000 | 521,000 |
Accumulated Depreciation | (61,000) | (35,000) |
Net Book Value | 460,000 | 486,000 |
Furniture and Equipment [Member] | ||
Cost | 31,209,000 | 30,585,000 |
Accumulated Depreciation | (27,040,000) | (26,841,000) |
Net Book Value | 4,169,000 | 3,744,000 |
Building and Improvements [Member] | ||
Cost | 59,341,000 | 59,341,000 |
Accumulated Depreciation | (29,475,000) | (29,131,000) |
Net Book Value | $ 29,866,000 | $ 30,210,000 |
Investment in Real Estate, Ne_2
Investment in Real Estate, Net (Details Narrative) | Sep. 30, 2019Integer |
West Los Angeles, California [Member] | |
Number of units owned by the company | 2 |
Santa Monica, California [Member] | |
Number of units owned by the company | 27 |
Investment in Real Estate, Ne_3
Investment in Real Estate, Net - Schedule of Investment in Real Estate (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Real Estate [Abstract] | ||
Land | $ 2,430,000 | $ 2,430,000 |
Buildings, improvements and equipment | 2,921,000 | 2,922,000 |
Accumulated depreciation | (1,490,000) | (1,463,000) |
Real Estate Investment Property | 3,861,000 | 3,889,000 |
Land held for development | 977,000 | 977,000 |
Investment in real estate, net | $ 4,838,000 | $ 4,866,000 |
Investment in Marketable Secu_3
Investment in Marketable Securities (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Trading securities, continuous unrealized loss position, 12 months or longer, aggregate loss | $ 3,298,000 | $ 8,617,000 |
Unrealized gain (loss) on investments | $ 3,220,000 | 8,556,000 |
Unrealized gain on securities reclassed | $ 5,560,000 | |
Comstock Mining, Inc [Member] | ||
Investment marketable securities, percentage | 12.00% | 19.00% |
Investment in Marketable Secu_4
Investment in Marketable Securities - Schedule of Changes in Unrealized Gains and Losses on Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Gross Unrealized Gain | $ 5,560,000 | ||
Gross Unrealized Loss | $ (287,000) | $ (318,000) | |
Net Unrealized Loss | (62,000) | $ (52,000) | |
Corporate Equities [Member] | |||
Cost | 5,346,000 | 10,922,000 | |
Gross Unrealized Gain | 381,000 | 449,000 | |
Gross Unrealized Loss | (3,375,000) | (8,692,000) | |
Net Unrealized Loss | (2,994,000) | (8,243,000) | |
Fair Value | $ 2,352,000 | $ 2,679,000 |
Investment in Marketable Secu_5
Investment in Marketable Securities - Schedule of Net Loss on Marketable Securities (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized (loss) gain on marketable securities | $ (4,000) | $ 41,000 |
Unrealized (loss) gain on marketable securities | (62,000) | (52,000) |
Unrealized loss on marketable securities related to Comstock | (225,000) | (266,000) |
Net loss on marketable securities | $ (291,000) | $ (277,000) |
Other Investments, Net - Schedu
Other Investments, Net - Schedule Of Other Investments, Net (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Other investments, net | $ 328,000 | $ 351,000 |
Private Equity Hedge Fund, at Cost [Member] | ||
Other investments, net | 233,000 | 233,000 |
Other Investments [Member] | ||
Other investments, net | $ 95,000 | $ 118,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||
Proceeds from sale of other investments | $ 23,000 | $ 50,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value On a Recurring Basis (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Investment in marketable securities | $ 2,352,000 | $ 2,679,000 |
Level 1 [Member] | ||
Investment in marketable securities | 2,352,000 | 2,679,000 |
REITs and Real Estate Companies [Member] | Level 1 [Member] | ||
Investment in marketable securities | 817,000 | 816,000 |
Consumer Cyclical [Member] | Level 1 [Member] | ||
Investment in marketable securities | 584,000 | 636,000 |
Energy [Member] | Level 1 [Member] | ||
Investment in marketable securities | 484,000 | 286,000 |
Basic Materials [Member] | Level 1 [Member] | ||
Investment in marketable securities | 321,000 | 537,000 |
Financial Services [Member] | Level 1 [Member] | ||
Investment in marketable securities | 129,000 | 331,000 |
HealthCare [Member] | Level 1 [Member] | ||
Investment in marketable securities | 16,000 | 72,000 |
Other [Member] | Level 1 [Member] | ||
Investment in marketable securities | $ 1,000 | $ 1,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets Measured at Fair Value On a Non-Recurring Basis (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Other non-marketable investments | $ 328,000 | $ 351,000 | |
Net loss | |||
Level 3 [Member] | |||
Other non-marketable investments | $ 328,000 | $ 351,000 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 9,964,000 | $ 9,800,000 | ||
Restricted cash | 10,995,000 | 11,027,000 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 20,959,000 | $ 20,827,000 | $ 17,415,000 | $ 14,766,000 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Sep. 30, 2019Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Loss from Investments of Net Investment Loss, Dividend and Interest Income (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 15,508,000 | $ 15,887,000 | |
Segment operating expenses | (11,706,000) | (11,123,000) | |
Income from operations | 3,206,000 | 4,120,000 | |
Interest expense | (1,948,000) | (2,058,000) | |
Depreciation and amortization expense | (596,000) | (644,000) | |
Loss from investments | (304,000) | (365,000) | |
Income tax benefit (expense) | (243,000) | (630,000) | |
Net income | 711,000 | 1,067,000 | |
Total assets | 73,619,000 | $ 73,952,000 | |
Hotel Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,429,000 | 15,810,000 | |
Segment operating expenses | (11,348,000) | (10,810,000) | |
Income from operations | 4,081,000 | 5,000,000 | |
Interest expense | (1,923,000) | (1,905,000) | |
Depreciation and amortization expense | (568,000) | (617,000) | |
Loss from investments | |||
Income tax benefit (expense) | |||
Net income | 1,590,000 | 2,478,000 | |
Total assets | 58,596,000 | ||
Real Estate Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 79,000 | 77,000 | |
Segment operating expenses | (34,000) | (57,000) | |
Income from operations | 45,000 | 20,000 | |
Interest expense | (25,000) | (153,000) | |
Depreciation and amortization expense | (28,000) | (27,000) | |
Loss from investments | |||
Income tax benefit (expense) | |||
Net income | (8,000) | (160,000) | |
Total assets | 4,838,000 | ||
Investment Transactions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | |||
Income from operations | |||
Interest expense | |||
Depreciation and amortization expense | |||
Loss from investments | (304,000) | (365,000) | |
Income tax benefit (expense) | |||
Net income | (304,000) | (365,000) | |
Total assets | 2,680,000 | ||
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Segment operating expenses | (324,000) | (256,000) | |
Income from operations | (324,000) | (256,000) | |
Interest expense | |||
Depreciation and amortization expense | |||
Loss from investments | |||
Income tax benefit (expense) | (243,000) | (630,000) | |
Net income | (567,000) | $ (886,000) | |
Total assets | $ 7,505,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 | Feb. 01, 2017 | Jul. 02, 2014 | Jul. 31, 2019 | Jul. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | May 12, 2017 |
Related Party Transaction [Line Items] | |||||||||
Finance lease, liability | $ 1,385,000 | $ 1,486,000 | |||||||
Financial leases, expiration, description | Finance leases expire in various years through 2023 | ||||||||
Accounts payable to related party | $ 5,347,000 | 5,105,000 | |||||||
CIBC Bank USA [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument maturity description | extended the maturity date from July 24, 2019 to July 23, 2020 | extended the maturity date from July 24, 2019 to July 23, 2020 | |||||||
Line of credit facility, Increase, net | $ 3,000,000 | $ 3,000,000 | |||||||
Minimum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Financial leases, rate per annum | 5.77% | ||||||||
Maximum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Financial leases, rate per annum | 6.25% | ||||||||
Hotel Management Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Feb. 3, 2017 | ||||||||
Business acquisition, term description | The term of the management agreement is for an initial period of 10 years commencing on the takeover date and automatically renews for an additional year not to exceed five years in aggregate subject to certain conditions. | ||||||||
Advanced incentive fee for capital improvements, value | $ 2,000,000 | ||||||||
Accrued interest | $ 999,000 | $ 2,049,000 | |||||||
Unsecured Loan [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument maturity description | The loan was extended to December 31, 2019 | ||||||||
Interest Free Development Incentive Note [Member] | Hilton Hotel [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes reduction, value | $ 316,000 | ||||||||
Intergroup [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Unsecured loan, debt | $ 4,250,000 | ||||||||
Intergroup [Member] | CIBC Bank USA [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Line of credit | $ 5,000,000 | $ 5,000,000 | |||||||
Variable interest rate description | The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. | ||||||||
Intergroup [Member] | Unsecured Loan [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, percentage | 12.00% | ||||||||
Debt Instrument, term | 2 years | ||||||||
Loan processing fee, percentage | 3.00% | ||||||||
Intergroup [Member] | Mortgage Note Payable [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Drawn from line of credit, value | $ 2,969,000 | $ 2,969,000 | |||||||
Woodland Village [Member] | Mortgage Note Payable [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Drawn from line of credit, value | $ 2,969,000 | $ 2,969,000 | |||||||
Variable interest rate description | The RLOC carries a variable interest rate of 30-day LIBOR plus 3%. Interest is paid on a monthly basis. | ||||||||
Justice Investors Limited Partnership [Member] | Mortgage Loan [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, face amount | $ 97,000,000 | ||||||||
Justice Investors Limited Partnership [Member] | Mezzanine Loan [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, face amount | $ 20,000,000 |
Related Party and Other Finan_3
Related Party and Other Financing Transactions - Schedule of Related Party and Other Notes Payable (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Total related party and other notes payable | $ 8,079,000 | $ 8,221,000 |
Intergroup [Member] | ||
Total related party and other notes payable | 3,000,000 | 3,000,000 |
Hilton [Member] | ||
Total related party and other notes payable | 3,246,000 | 3,325,000 |
Interstate [Member] | ||
Total related party and other notes payable | $ 1,833,000 | $ 1,896,000 |
Related Party and Other Finan_4
Related Party and Other Financing Transactions - Schedule of Minimum Future Lease Payments (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | ||
2020 | $ 369,000 | |
2021 | 492,000 | |
2022 | 482,000 | |
2023 | 183,000 | |
Total minimum lease payments | 1,526,000 | |
Less interest on finance lease | (141,000) | |
Present value of future minimum lease payments | $ 1,385,000 | $ 1,486,000 |
Related Party and Other Finan_5
Related Party and Other Financing Transactions - Schedule of Future Minimum Principle Payments (Details) | Sep. 30, 2019USD ($) |
RELATED PARTY AND OTHER FINANCING TRANSACTIONS | |
2020 | $ 3,737,000 |
2021 | 1,006,000 |
2022 | 1,022,000 |
2023 | 744,000 |
2024 | 567,000 |
Thereafter | 2,388,000 |
Total future minimum principal payments | $ 9,464,000 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Justice - Schedule of Accounts Payable and Other Liabilities - Justice (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Payables and Accruals [Abstract] | ||
Trade payable | $ 1,581,000 | $ 1,792,000 |
Advance deposits | 1,161,000 | 1,215,000 |
Property tax payable | 1,538,000 | 1,046,000 |
Payroll and related accruals | 2,639,000 | 2,584,000 |
Interest payable | 411,000 | 412,000 |
Withholding and other taxes payable | 1,193,000 | 1,831,000 |
Security deposit | 52,000 | 52,000 |
Other payables | 2,183,000 | 2,366,000 |
Accounts payable and other liabilities - Justice | $ 10,758,000 | $ 11,298,000 |