11 Hanover Square, 12th Floor
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New York, NY
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10005
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(Address of principal executive offices)
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(Zip Code)
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Shares
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Cost
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Value
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COMMON STOCKS (20.82%)
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REAL ESTATE INVESTMENT TRUSTS (20.82%)
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Diversified (2.60%)
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United Kingdom (0.53%)
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19,900 |
British Land Company plc ADR (a)
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$ | 151,441 | $ | 186,463 | |||||||
United States (2.07%)
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4,500 |
Public Storage (b)
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616,985 | 722,475 | |||||||||
Total Diversified
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768,426 | 908,938 | ||||||||||
Healthcare Facilities (1.78%)
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United States (1.78%)
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10,000 |
Health Care REIT, Inc. (b)
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541,373 | 623,800 | |||||||||
Industrial (7.25%)
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United States (7.25%)
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40,000 |
CubeSmart (b)
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483,473 | 713,600 | |||||||||
20,000 |
Extra Space Storage, Inc. (b)
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574,982 | 915,000 | |||||||||
12,000 |
Sovran Self Storage, Inc.
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639,034 | 908,160 | |||||||||
1,697,489 | 2,536,760 | |||||||||||
Mortgage Investment (1.62%)
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United States (1.62%)
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30,000 |
Newcastle Investment Corp.
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103,992 | 168,600 | |||||||||
60,000 |
New Residential Investment Corp. (b)
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235,692 | 397,200 | |||||||||
339,684 | 565,800 | |||||||||||
Office (1.57%)
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United States (1.57%)
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11,000 |
Kilroy Realty Corp. (b)
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505,284 | 549,450 | |||||||||
Retail (6.00%)
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Australia (0.48%)
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8,200 |
Westfield Group ADR (a) (b)
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151,352 | 168,920 | |||||||||
United States (5.52%)
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27,000 |
CBL & Associates Properties, Inc. (b)
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496,814 | 515,700 | |||||||||
2,000 |
Federal Realty Investment Trust (b)
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193,635 | 202,900 | |||||||||
27,000 |
Kimco Realty Corp. (b)
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496,122 | 544,860 | |||||||||
3,500 |
Simon Property Group, Inc. (b)
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507,376 | 518,805 | |||||||||
5,000 |
Weingarten Realty Investors
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131,660 | 146,650 | |||||||||
1,825,607 | 1,928,915 | |||||||||||
Total retail
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1,976,959 | 2,097,835 | ||||||||||
Total common stocks
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5,829,215 | 7,282,583 | ||||||||||
PREFERRED STOCKS (4.23%)
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REAL ESTATE INVESTMENT TRUSTS (4.24%)
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Industrial (1.09%)
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United States (1.09%)
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15,000 |
CubeSmart 7.75%, Series A
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389,806 | 381,750 | |||||||||
Office (1.01%)
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United States (1.01%)
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15,000 |
Duke Realty Corp. 6.50%, Series K
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373,312 | 354,750 | |||||||||
Retail (2.13%)
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United States (2.13%)
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15,000 |
Pennsylvania Real Estate Investment Trust, 8.25%, Series A
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380,662 | 383,250 | |||||||||
15,000 |
Realty Income Corp., 6.625%, Series F
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396,285 | 363,450 | |||||||||
776,947 | 746,700 | |||||||||||
Total preferred stocks
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1,540,065 | 1,483,200 | ||||||||||
SHORT TERM INVESTMENT (0.15%)
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Principal Amount
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United States (0.15%)
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$ | 52,288 |
State Street Bank and Trust Company Euro Time Deposit 0.01%, 4/01/13
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52,288 | 52,288 | ||||||||
REAL ESTATE OWNED (77.10%)
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SELF STORAGE FACILITIES (77.10%)
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United States (77.10%)
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Member Equity Interest
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100% |
Self Storage Group II LLC (10.72%) (c) (d)
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3,750,000 | 3,750,000 | |||||||||
100% |
SSG Bolingbrook LLC (16.29%) (c) (d)
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5,700,000 | 5,700,000 | |||||||||
100% |
SSG Dolton LLC (14.58%) (c) (d)
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5,100,000 | 5,100,000 | |||||||||
100% |
SSG Merrillville LLC (13.79%) (c) (d)
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4,825,000 | 4,825,000 | |||||||||
100% |
SSG Sadsbury LLC (11.43%) (c) (d)
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4,000,000 | 4,000,000 | |||||||||
100% |
SSG Summerville I LLC (6.57%) (c) (d)
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2,300,000 | 2,300,000 | |||||||||
100% |
SSG Summerville II LLC (3.72%) (c) (d)
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1,300,000 | 1,300,000 | |||||||||
Total real estate owned
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26,975,000 | 26,975,000 | ||||||||||
Total investments (102.30%)
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$ | 34,396,568 | 35,793,071 | |||||||||
Liabilities in excess of other assets (2.30%)
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(803,490 | ) | ||||||||||
Net assets (100.00%)
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$ | 34,989,581 | ||||||||||
Net asset value per share
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$ | 4.72 | ||||||||||
(a) The company is organized as a real estate investment trust as defined by the laws of its country of domicile.
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(b) All or a portion of these securities have been segregated as collateral pursuant to the bank credit facility. As of September 30, 2013, the value of securities pledged as collateral was $2,945,895.
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(c) Controlled affiliate.
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(d) Illiquid and/or restricted security that has been fair valued.
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ADR
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American Depositary Receipt
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LLC
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Limited Liability Company
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REIT
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Real Estate Investment Trust
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plc
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Public limited company
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●
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Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.
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● |
Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
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● |
Level 3 - unobservable inputs for the asset or liability including the Company’s own assumptions about the assumptions a market participant would use in valuing the asset or liability.
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Level 1
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Level 2
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Level 3
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Total
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Assets
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Investments, at value
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Common Stocks
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Real Estate Investment Trusts
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Diversified
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United Kingdom
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$ | 186,463 | $ | - | $ | - | $ | 186,463 | ||||||||
United States
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722,475 | - | - | 722,475 | ||||||||||||
Healthcare Facilities
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United States
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623,800 | - | - | 623,800 | ||||||||||||
Industrial
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United States
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2,536,760 | - | - | 2,536,760 | ||||||||||||
Mortgage Investment
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United States
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565,800 | - | - | 565,800 | ||||||||||||
Office
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United States
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549,450 | - | - | 549,450 | ||||||||||||
Retail
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Australia
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168,920 | - | - | 168,920 | ||||||||||||
United States
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1,928,915 | - | - | 1,928,915 | ||||||||||||
Preferred Stocks
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Real Estate Investment Trusts
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Industrial
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United States
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381,750 | - | - | 381,750 | ||||||||||||
Office
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United States
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354,750 | - | - | 354,750 | ||||||||||||
Retail
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United States
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746,700 | - | - | 746,700 | ||||||||||||
Short Term Investment
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United States
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- | 52,288 | - | 52,288 | ||||||||||||
Real Estate Owned
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United States
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- | - | 26,975,000 | 26,975,000 | ||||||||||||
Total investments, at value
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$ | 8,765,783 | $ | 52,288 | $ | 26,975,000 | $ | 35,793,071 | ||||||||
Real Estate
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Owned
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Balance at December 31, 2012
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$ | 7,425,000 | ||
Cost of purchases
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19,475,000 | |||
Sales
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- | |||
Transfers in to (out of) level 3
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- | |||
Change in unrealized depreciation
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75,000 | |||
Balance at September 30, 2013
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$ | 26,975,000 | ||
Net change in unrealized depreciation attributable
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to assets held as level 3 at September 30, 2013
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$ | 75,000 | ||
Fair Value
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REAL ESTATE OWNED MEMBER EQUITY INTEREST
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September 30, 2013
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Valuation Technique
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Unobservable Input
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Amount
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Self Storage Facilities
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$ | 26,975,000 |
Assessment of comparable recent acquisitions, analysis of operating results
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Discount rate for lack of marketability
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0 | % |
Beginning
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Membership Equity
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Ending
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Value
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Equity Interest
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Gross
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Gross
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Equity Interest
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Dividend
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September 30,
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Percentage
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Additions
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Reductions
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Percentage
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Income
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2013
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Self Storage Group II LLC
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100 | % | $ | 250,000 | $ | - | 100 | % | $ | - | $ | 3,750,000 | ||||||||||||
SSG Sadsbury LLC
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100 | % | $ | 250,000 | $ | - | 100 | % | $ | - | $ | 4,000,000 | ||||||||||||
SSG Bolingbrook LLC
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0 | % | $ | 5,700,000 | $ | - | 100 | % | $ | - | $ | 5,700,000 | ||||||||||||
SSG Dolton LLC
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0 | % | $ | 5,100,000 | $ | - | 100 | % | $ | - | $ | 5,100,000 | ||||||||||||
SSG Merrillville LLC
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0 | % | $ | 4,825,000 | $ | - | 100 | % | $ | - | $ | 4,825,000 | ||||||||||||
SSG Summerville I LLC
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0 | % | $ | 2,300,000 | $ | - | 100 | % | $ | - | $ | 2,300,000 | ||||||||||||
SSG Summerville II LLC
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0 | % | $ | 1,300,000 | $ | - | 100 | % | $ | - | $ | 1,300,000 |
Acquisition
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Date
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Cost
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Value
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Self Storage Group II LLC
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12/5/12
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$ | 3,750,000 | $ | 3,750,000 | ||||
SSG Sadsbury LLC
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12/24/12
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4,000,000 | 4,000,000 | ||||||
SSG Bolingbrook LLC
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6/27/13
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5,700,000 | 5,700,000 | ||||||
SSG Dolton LLC
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6/27/13
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5,100,000 | 5,100,000 | ||||||
SSG Merrillville LLC
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6/27/13
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4,825,000 | 4,825,000 | ||||||
SSG Summerville I LLC
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7/12/13
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2,300,000 | 2,300,000 | ||||||
SSG Summerville II LLC
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8/20/13
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1,300,000 | 1,300,000 | ||||||
$ | 26,975,000 | $ | 26,975,000 | ||||||
Percent of net assets
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77.10 | % | 77.10 | % |
(a)
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The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
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(b)
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There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
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(a)
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Certifications of the registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the 1940 Act.
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(a)
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Certifications of the registrant's principal executive and principal financial officer as required by Rule 30a-2(a) under the 1940 Act. (EX-99.CERT)
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Date: October 25, 2013
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/s/ Mark C. Winmill
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Mark C. Winmill
President
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Date: October 25, 2013
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/s/ Thomas O'Malley
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Thomas O'Malley
Chief Financial Officer
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