Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | SECURITY LAND & DEVELOPMENT CORP | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 88,572 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 5,243,107 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
CURRENT ASSETS | ||
Cash | $ 777,253 | $ 65,982 |
Receivables from tenants, net of allowance of $46,392 and $43,578 at June 30, 2015 and September 30, 2014, respectively | 359,424 | 527,579 |
Total current assets | 1,136,677 | 593,561 |
RESTRICTED CASH HELD BY QUALIFIED INTERMEDIARY | 1,791,839 | |
INVESTMENT PROPERTIES | ||
Investment properties for lease, net of accumulated depreciation | 5,208,797 | 5,459,560 |
Land and improvements held for investment or development | 3,639,598 | 3,639,598 |
Total Investment Properties | 8,848,395 | 9,099,158 |
OTHER ASSETS | 81,636 | 76,239 |
Total Assets | 11,858,547 | 9,768,958 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 189,450 | 452,669 |
Income taxes payable | 49,902 | 229,031 |
Current maturities of notes payable | $ 236,281 | 554,065 |
Current maturities of deferred revenue | 18,489 | |
Current note payable to stockholder | 50,433 | |
Total current liabilities | $ 475,633 | 1,304,687 |
LONG-TERM LIABILITIES | ||
Notes payable, less current portion | 3,086,192 | 2,435,541 |
Deferred income taxes | 1,490,712 | 737,230 |
Total long-term liabilities | 4,576,904 | 3,172,771 |
Total liabilities | 5,052,537 | 4,477,458 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107 shares issued and outstanding | 524,311 | 524,311 |
Additional paid-in capital | 333,216 | 333,216 |
Retained earnings | 5,948,483 | 4,433,973 |
Total Stockholders' Equity | 6,806,010 | 5,291,500 |
Liabilities and Stockholders' Equity | $ 11,858,547 | $ 9,768,958 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Receivables from tenants net of allowance (in dollars) | $ 46,392 | $ 43,578 |
Common Stock, Par Value (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 5,243,107 | 5,243,107 |
Common Stock, shares outstanding | 5,243,107 | 5,243,107 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING REVENUE | ||||
Rent revenue | $ 383,518 | $ 375,529 | $ 1,148,443 | $ 1,109,529 |
OPERATING EXPENSES | ||||
Depreciation and amortization | 41,780 | 42,636 | 126,400 | 108,511 |
Property taxes | 66,158 | 67,549 | 199,808 | 199,519 |
Payroll and related costs | 19,368 | 18,777 | 61,461 | 58,840 |
Insurance and utilities | 18,679 | 19,762 | 36,127 | 37,897 |
Repairs and maintenance | 49,754 | 13,851 | 73,255 | 47,121 |
Professional services | $ 11,763 | 66,658 | 54,707 | 106,814 |
Bad debt | $ 16,466 | 2,814 | $ 16,466 | |
Penalties | $ 7 | 11,551 | ||
Other | 1,738 | $ 1,011 | 4,180 | $ 3,584 |
Total Operating Expenses | 209,247 | 246,710 | 570,303 | 578,752 |
Operating income | 174,271 | $ 128,819 | 578,140 | $ 530,777 |
OTHER INCOME (EXPENSE) | ||||
Gain on Sale | 1,862,235 | 1,862,235 | ||
Interest | (40,296) | $ (47,250) | (131,609) | $ (142,619) |
Other Income | 138,868 | 138,868 | ||
Total other income (expense) | 1,960,807 | $ (47,250) | 1,869,494 | $ (142,619) |
Income before income taxes | 2,135,078 | 81,569 | 2,447,634 | 388,158 |
INCOME TAXES PROVISION (BENEFIT) | ||||
Income tax expense | 49,902 | 50,113 | 179,642 | 165,941 |
Income tax deferred expense (benefit) | 760,473 | (15,118) | 753,482 | (14,564) |
Income taxes provision (benefit) | 810,375 | 34,995 | 933,124 | 151,377 |
Net income | 1,324,703 | 46,574 | 1,514,510 | 236,781 |
RETAINED EARNINGS, BEGINNING OF PERIOD | 4,623,780 | 4,294,362 | 4,433,973 | 4,104,155 |
RETAINED EARNINGS, END OF PERIOD | $ 5,948,483 | $ 4,340,936 | $ 5,948,483 | $ 4,340,936 |
PER SHARE DATA | ||||
Net income per common share (in dollars per share) | $ 0.25 | $ 0.01 | $ 0.29 | $ 0.05 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||||
Net income | $ 1,324,703 | $ 46,574 | $ 1,514,510 | $ 236,781 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 41,780 | $ 42,636 | 126,400 | $ 108,511 |
Gain on sale | (1,862,235) | (1,862,235) | ||
Deferred income tax | 760,473 | $ (15,118) | 753,482 | $ (14,564) |
Changes in deferred and accrued amounts: | (96,116) | 86,577 | (290,612) | 66,194 |
Net cash provided by operating activities | 168,605 | $ 160,669 | 241,545 | $ 396,922 |
INVESTING ACTIVITIES | ||||
Proceeds from sale of investment properties | 1,981,900 | 1,993,150 | ||
Addition to restricted cash held by qualified intermediary | $ (1,791,839) | (1,791,839) | ||
Additions to investment properties | $ (196,591) | (11,949) | $ (200,591) | |
Net cash provided by (used in) investing activities | $ 190,061 | $ (196,591) | 189,362 | $ (200,591) |
FINANCING ACTIVITIES | ||||
Repayments to stockholder | $ (50,433) | |||
Proceeds from stockholder | $ 50,015 | |||
Proceeds from notes payable | $ 182,797 | $ 1,500,000 | 186,804 | |
Principal payments on notes payable | $ (45,724) | (146,688) | (1,169,203) | (433,548) |
Net cash provided by (used in) financing activities | (45,724) | 36,109 | 280,364 | (196,729) |
Net increase (decrease) in cash | 312,942 | 187 | 711,271 | (398) |
CASH, BEGINNING OF PERIOD | 464,311 | 24,014 | 65,982 | 24,599 |
CASH, END OF PERIOD | 777,253 | 24,201 | 777,253 | 24,201 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||
Cash paid for interest | 47,752 | 39,823 | 137,956 | 139,955 |
Cash paid for income taxes | $ 125,737 | $ 6,381 | $ 351,880 | $ 93,216 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows. Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2014 when reviewing these interim financial statements. The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the Company). Significant intercompany transactions and accounts are eliminated in consolidation. Critical Accounting Policies: Estimates of Useful Lives of Investment Properties for Purposes of Depreciation Management has estimated useful lives of investment properties, except for land, that is leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties. Actual depreciation of investment properties will vary from managements estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties. Evaluation of Long-Lived Assets for Impairment The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable. In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is recognized when the expected future cash flows of the asset are less than its carrying amount. Estimates of Income Tax Rates Applicable to Deferred Taxes The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets. Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from managements estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due. Refer to the Companys Form 10-K for the year ended September 30, 2014 for further information regarding its critical accounting policies. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts (Topic 606). |
Investment Properties
Investment Properties | 9 Months Ended |
Jun. 30, 2015 | |
INVESTMENT PROPERTIES | |
Investment Properties | Note 2 Investment Properties Investment properties leased or held for lease to others under operating leases consisted of the following at June 30, 2015 and September 30, 2014: June 30, September 30, 2015 2014 (unaudited) National Plaza building, land and improvements $ 5,305,419 $ 5,325,348 Evans Ground Lease, land and improvements 2,382,673 2,382,673 Commercial land and improvements 3,639,598 3,639,598 11,327,690 11,347,619 Less accumulated depreciation (2,479,295) (2,360,803) 8,848,395 8,986,816 Residential rental property - 145,847 Less accumulated depreciation - (33,505) - 112,342 Investment properties for lease, net of accumulated depreciation $ 8,848,395 $ 9,099,158 Depreciation expense totaled approximately $39,000 and $42,000 for the three-month periods ended June 30, 2015 and 2014, respectively and approximately $120,000 and $105,000 for the nine-month periods ended June 30, 2015 and 2014, respectively. The National Plaza is a retail strip center located on Washington Road in Augusta Georgia. Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plazas anchor tenant. In April 2015, the Company sold .038 acres of fee simple right-of-way, .191 acres of temporary easement for construction and .158 acres of permanent easement for construction. The sales proceeds from these transactions were $186,900. In June of 2015 the Company sold an outparcel approximating 1 acre in size on Stanley Drive and a rental house on Stanley Drive for $1,795,000. Together, the Company recognized a gain of approximately $1,862,000 on these sales. The Company is planning to reinvest the proceeds through a like kind exchange for other similar real estate held for development or lease and defer the related tax liability. The Companys management has identified property suitable for investment and has made an offer on one. A qualified intermediary holds the proceeds from the sale approximating $1,792,000. The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia. The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007. Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16. The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years. The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term. The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008. The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Companys National Plaza investment property. The aggregate costs of these investment properties held for investment or development was $3,639,598 at June 30, 2015 and September 30, 2014. Refer to the Companys Form 10-K for the year ended September 30, 2014 for further information on operating lease agreements and land held for investment or development purposes. |
Notes Payable
Notes Payable | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 3 Notes Payable Notes payable consisted of the following at: June 30, 2015 September 30, 2014 (unaudited) In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017. The new term loan accrued interest at 5.5% annually with monthly installments of $3,287. The balance related to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and was collateralized by the residential property on Stanley Drive in Augusta, Georgia. The note was paid off in March 2015. $ - $ 260,323 A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note was payable in monthly installments of $35,633, including principal and interest, through June 2015, and bore interest at a fixed rate of 7.875%. The note was paid off in March 2015. 310,423 A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note was payable in monthly installments of $7,563, including principal and interest, through July 2018, and bore interest at a fixed rate of 5%. The note was paid off in March 2015. 319,330 A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $17,896, including principal and interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%. 1,839,603 1,918,026 A note payable to a regional financial institution, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $15,220, including principal and interest, through April 2025, and bears interest at a fixed rate of 4%. The proceeds were used to pay the Companys outstanding income tax liability, four notes payable collateralized by the Companys land held for lease and investment portfolio and one uncollateralized note payable to a shareholder. The proceeds were also used to fund improvements at National Plaza. 1,482,870 - A construction loan to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The loan was procured to finance tenant improvements for the lease of in-line space at National Plaza executed on January 17, 2014. In April, 2014 construction of the tenant improvements was completed and with total principal borrowed of $186,804. The loan converted to a note payable with monthly installments of $3,728 including principal and interest over a 60 month term with fixed interest of 4.25%. The related lease agreement calls for monthly payments of this amount to be paid to the Company in addition to monthly minimum rental payments. The note was paid off in March 2015. - 181,504 A note payable to a stockholder, who is also a member of the Flanagin Family, to meet the cash flow needs of the Company. The note matured in July 2015 and accrued interest at 5%. The note was paid off in March 2015. - 50,433 3,322,473 3,040,039 Less current maturities (236,281) (604,498) $ 3,086,192 $ 2,435,541 Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary). Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $236,281. The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 Income Taxes At September 30, 2014 the Company had outstanding income taxes payable of $229,031, all of which was related to the fiscal year 2014. In March 2015 the Company executed a note payable to a regional financial institution, secured with a mortgage interest in National Plaza and an assignment of rents and used a portion of the related proceeds to pay the outstanding tax liability for the fiscal year 2014 in full. As of June 30, 2015 the Companys outstanding income taxes payable is $49,902, all of which relates to 2015. |
Concentrations
Concentrations | 9 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 5 Concentrations Substantially all of the Companys assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in Aiken County, South Carolina. Substantially all of the Companys revenues are earned from two of the Companys investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 56% and 44% of the Companys revenues, respectively. The anchor tenant for National Plaza, Publix Supermarkets, Inc. (Publix), a regional food supermarket chain, leases approximately 81% of the space at National Plaza. The Company generates approximately 42% of its revenues though its lease with Publix. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 Related Party Transactions The Company hired an attorney who is also a member of the Companys Board of Directors and who also serves as Vice President of the Company, to represent the Company in a legal matter regarding a tenants claim for reimbursement of certain expenses charged. The matter was settled in June 2015. During the second quarter of fiscal 2014, the Company borrowed $50,015 from a stockholder, who is also a member of the Flanagin family, to meet cash flow needs. This note was paid in full in March 2015. |
Legal Matter
Legal Matter | 9 Months Ended |
Jun. 30, 2015 | |
Legal Matter | |
Legal Matter | Note 7- Legal Matter In June 2015, the Company settled a legal matter regarding a tenants claim for reimbursement of certain expenses charged. The Company incurred approximately $11,000 in expenses during the quarter and recognized other income of approximately $139,000 after adjusting the $150,000 previously accrued for the matter. |
Property Transaction
Property Transaction | 9 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Property Transaction | Note 8- Property Transaction On June 24, 2015 the Company sold approximately 1 acre of land, previously included as part of National Plaza, adjacent to Stanley Drive and a residential house on .43 acres of land held for lease on Stanley Drive. The gain was recognized in the quarter ended June 30, 2015. However, the Company has identified property and made an offer on one qualified property to purchase as part of a tax-free like kind exchange related to the June 2015 sale. The Company has 180 days from the June closing to purchase a qualified property and meet the requirements of the IRS regarding tax-free like kind exchanges. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimates of Useful Lives of Investment Properties for Purposes of Depreciation | Estimates of Useful Lives of Investment Properties for Purposes of Depreciation Management has estimated useful lives of investment properties, except for land, that is leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties. Actual depreciation of investment properties will vary from managements estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties. |
Evaluation of Long-Lived Assets for Impairment | Evaluation of Long-Lived Assets for Impairment The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable. In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is recognized when the expected future cash flows of the asset are less than its carrying amount. |
Estimates of Income Tax Rates Applicable to Deferred Taxes | Estimates of Income Tax Rates Applicable to Deferred Taxes The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets. Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from managements estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due. Refer to the Companys Form 10-K for the year ended September 30, 2014 for further information regarding its critical accounting policies. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts (Topic 606). |
Investment Properties (Tables)
Investment Properties (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INVESTMENT PROPERTIES | |
Schedule of Investment properties leased or held for lease | Investment properties leased or held for lease to others under operating leases consisted of the following at June 30, 2015 and September 30, 2014: June 30, September 30, 2015 2014 (unaudited) National Plaza building, land and improvements $ 5,305,419 $ 5,325,348 Evans Ground Lease, land and improvements 2,382,673 2,382,673 Commercial land and improvements 3,639,598 3,639,598 11,327,690 11,347,619 Less accumulated depreciation (2,479,295) (2,360,803) 8,848,395 8,986,816 Residential rental property - 145,847 Less accumulated depreciation - (33,505) - 112,342 Investment properties for lease, net of accumulated depreciation $ 8,848,395 $ 9,099,158 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable and line of credit | Notes payable consisted of the following at: June 30, 2015 September 30, 2014 (unaudited) In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017. The new term loan accrued interest at 5.5% annually with monthly installments of $3,287. The balance related to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and was collateralized by the residential property on Stanley Drive in Augusta, Georgia. The note was paid off in March 2015. $ - $ 260,323 A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note was payable in monthly installments of $35,633, including principal and interest, through June 2015, and bore interest at a fixed rate of 7.875%. The note was paid off in March 2015. 310,423 A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note was payable in monthly installments of $7,563, including principal and interest, through July 2018, and bore interest at a fixed rate of 5%. The note was paid off in March 2015. 319,330 A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $17,896, including principal and interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%. 1,839,603 1,918,026 A note payable to a regional financial institution, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $15,220, including principal and interest, through April 2025, and bears interest at a fixed rate of 4%. The proceeds were used to pay the Companys outstanding income tax liability, four notes payable collateralized by the Companys land held for lease and investment portfolio and one uncollateralized note payable to a shareholder. The proceeds were also used to fund improvements at National Plaza. 1,482,870 - A construction loan to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The loan was procured to finance tenant improvements for the lease of in-line space at National Plaza executed on January 17, 2014. In April, 2014 construction of the tenant improvements was completed and with total principal borrowed of $186,804. The loan converted to a note payable with monthly installments of $3,728 including principal and interest over a 60 month term with fixed interest of 4.25%. The related lease agreement calls for monthly payments of this amount to be paid to the Company in addition to monthly minimum rental payments. The note was paid off in March 2015. - 181,504 A note payable to a stockholder, who is also a member of the Flanagin Family, to meet the cash flow needs of the Company. The note matured in July 2015 and accrued interest at 5%. The note was paid off in March 2015. - 50,433 3,322,473 3,040,039 Less current maturities (236,281) (604,498) $ 3,086,192 $ 2,435,541 |
Investment Properties (Details)
Investment Properties (Details) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Real Estate Properties [Line Items] | ||
Investment property gross | $ 11,327,690 | $ 11,347,619 |
Less accumulated depreciation | (2,479,295) | (2,360,803) |
Investment property, net | $ 8,848,395 | 8,986,816 |
Residential rental property | 145,847 | |
Less accumulated depreciation | (33,505) | |
Residential rental property, net | 112,342 | |
Total Investment Properties | $ 8,848,395 | 9,099,158 |
National Plaza Building [Member] | ||
Real Estate Properties [Line Items] | ||
Investment property gross | 5,305,419 | 5,325,348 |
Evans Ground Lease [Member] | ||
Real Estate Properties [Line Items] | ||
Investment property gross | 2,382,673 | 2,382,673 |
Commercial land and improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Investment property gross | $ 3,639,598 | $ 3,639,598 |
Investment Properties (Details
Investment Properties (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($)a | Apr. 30, 2015USD ($)a | May. 31, 2006USD ($)a | Jun. 30, 2015USD ($)a | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)a | Jun. 30, 2014USD ($) | Sep. 30, 2014USD ($) | |
Investment Holdings [Line Items] | ||||||||
Depreciation expense | $ 39,000 | $ 42,000 | $ 120,000 | $ 105,000 | ||||
Percentage of National Plaza space leased to Publix Supermarkets, Inc | 81.00% | |||||||
Land and improvements held for investment or development | $ 3,639,598 | $ 3,639,598 | $ 3,639,598 | $ 3,639,598 | ||||
Intermediary [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Proceeds from sale | $ 1,792,000 | |||||||
Stanley Drive [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Area of real estate property sold | a | 1 | 1 | 1 | |||||
Proceeds from sale | $ 1,795,000 | |||||||
Gain recognized | $ 1,862,000 | |||||||
National Plaza Building [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Area of temporary easement | a | 0.191 | |||||||
Area of permanent easement | a | 0.158 | |||||||
Area of fee simple | a | 0.038 | |||||||
Proceeds from sale | $ 186,900 | |||||||
Washington Road In Augusta [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Land and improvements held for investment or development, area | a | 1.1 | 1.1 | 1.1 | |||||
North Augusta [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Land and improvements held for investment or development, area | a | 19.38 | 19.38 | 19.38 | |||||
South Richmond County [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Land and improvements held for investment or development, area | a | 85 | 85 | 85 | |||||
Lease Agreements [Member] | ||||||||
Investment Holdings [Line Items] | ||||||||
Area of land for lease in Columbia County, Georgia | a | 18 | |||||||
Monthly rental payments, development period | $ 20,833 | |||||||
Annual rental payments | $ 500,000 | |||||||
Annual rental payments description | First 5 years | |||||||
Percentage of rent increasing in years 6, 11, and 16 | 5.00% | |||||||
Renewal period | 21 years | |||||||
Renewal period description | Every 5 years thereafter | |||||||
Total lease term | 50 years |
Notes Payable (Details)
Notes Payable (Details) | Jan. 17, 2014a | Nov. 30, 2012USD ($) | Jun. 30, 2015USD ($)a | Sep. 30, 2014USD ($) | Apr. 30, 2014USD ($) | May. 31, 2008a |
Debt Instrument [Line Items] | ||||||
Total notes payable | $ 3,322,473 | $ 3,040,039 | ||||
Current notes payable | (236,281) | (554,065) | ||||
Noncurrent notes payable | $ 3,086,192 | 2,435,541 | ||||
New Term Loan Due December 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | 260,323 | |||||
Interest rate (in percent) | 5.50% | |||||
Periodic monthly installments | $ 3,287 | |||||
Area purchased in adjoining the North Augusta, South Carolina property (in acres) | a | 1 | |||||
Note Payable to Insurance Company Secured with Mortgage Interest in National Plaza and Assignment of Rents [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | 310,423 | |||||
Interest rate (in percent) | 7.875% | |||||
Periodic monthly installments | $ 35,633 | |||||
Note Payable to Regional Financial Institution Collateralized with Land in North Augusta South Carolina [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | 319,330 | |||||
Interest rate (in percent) | 5.00% | |||||
Periodic monthly installments | $ 7,563 | |||||
Land collateralized (in acres) | a | 17.54 | |||||
Note Payable to Insurance Company Collateralized with Land in Columbia County Georgia and Assignment of Long Term Ground Lease [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | $ 1,839,603 | 1,918,026 | ||||
Interest rate (in percent) | 5.85% | |||||
Periodic monthly installments | $ 17,896 | |||||
Land collateralized (in acres) | a | 18 | |||||
Note Payable to Regional Financial Institution Secured with Mortgage Interest in National Plaza and Assignment of Rents [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | $ 1,482,870 | |||||
Interest rate (in percent) | 4.00% | |||||
Periodic monthly installments | $ 15,220 | |||||
Construction Loan Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | 181,504 | |||||
Land collateralized (in acres) | a | 17.54 | |||||
Total principal borrowed | $ 186,804 | |||||
Note Payable Issuable Upon Conversion of Construction Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (in percent) | 4.25% | |||||
Periodic monthly installments | $ 3,728 | |||||
Term of debt | 60 months | |||||
Note Payable to Stockholder to Meet Cash Flow Needs of Entity [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total notes payable | $ 50,433 | |||||
Interest rate (in percent) | 5.00% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Jun. 30, 2015 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Total outstanding income tax payable | $ 49,902 | $ 229,031 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - Jun. 30, 2015 - Customer Concentration Risk [Member] - a | Total |
Sales Revenue, Net [Member] | National Plaza Building [Member] | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 56.00% |
Sales Revenue, Net [Member] | Evans Ground Lease [Member] | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 44.00% |
Sales Revenue, Net [Member] | National Plaza and Evans Ground Lease [Member] | |
Concentration Risk [Line Items] | |
Number of investment properties | 2 |
Sales Revenue, Net [Member] | Publix Supermarkets Inc [Member] | National Plaza Building [Member] | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 42.00% |
Space Leased [Member] | Publix Supermarkets Inc [Member] | National Plaza Building [Member] | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 81.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transactions [Abstract] | |||||
Proceeds from stockholder | $ 50,015 | $ 50,015 |
Legal Matter (Details Narrative
Legal Matter (Details Narrative) | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Legal Matter | |
Legal expenses | $ 11,000 |
Recognized other income | 139,000 |
Previously accrued | $ 150,000 |
Property Transaction (Details N
Property Transaction (Details Narrative) - a | 9 Months Ended | |
Jun. 30, 2015 | Jun. 24, 2015 | |
Number of days to meet the requirements of the IRS | 180 days | |
National Plaza Building (Adjacent to Stanley Drive) [Member] | ||
Area of real estate property sold | 0.43 | |
National Plaza Building (Residential House) [Member] | ||
Area of real estate property sold | 1 |