Note 8 — Debt Obligations

Debt obligations consist of the following (dollars in thousands):

	March 31, 2013		September 30, 2012
Line of Credit	—		—
Junior subordinated notes	$	37,400	$	37,400
Mortgages payable	220,755		169,284
Total debt obligations	$	258,155	$	206,684

Line of credit

In June 2011, the Trust, through a wholly owned subsidiary, entered into a senior secured revolving credit facility with Capital One, National Association. The subsidiary may borrow (i) on an unsecured basis, $10 million for up to 90 days and (ii) on a secured basis, up to the lesser of $25 million and the borrowing base, as such term defined in the facility. Interest accrues on the outstanding balance at the greater of (i) 4% plus LIBOR and (ii) 5.50%. The facility matures June 21, 2014. The Trust has guaranteed the payment and performance of its subsidiary’s obligations under the facility. The facility requires the Trust and the subsidiary to maintain or comply with, various covenants, and limits, with specified exceptions, the incurrence of debt.

For the three months ended March 31, 2013 and March 31, 2012, fee amortization, which is a component of interest expense, was $38,000 and $37,000, respectively and for the six months ended March 31, 2013 and March 31, 2012, was $75,000 and $74,000, respectively. At March 31, 2013 and September 30, 2012, there was no outstanding balance on this facility.

Junior Subordinated Notes

At March 31, 2013 and September 30, 2012, the Trust’s junior subordinated notes had an outstanding principal balance of $37,400,000. The interest rates on the outstanding notes are set forth in the table below:

Interest Period	Interest Rate
March 15, 2011 through July 31, 2012	3.00	%
August 1, 2012 through April 29, 2016	4.90	%
April 30, 2016 through April 30, 2036	Libor + 2.00	%

Interest expense relating to the junior subordinated notes for the three months ended March 31, 2013 and 2012 was $458,000 and $281,000, respectively and for the six months ended March 31, 2013 and 2012, was $916,000 and $561,000, respectively. Amortization of the deferred costs, was $5,000 for the three months ended March 31, 2013 and 2012, and $10,000 for the six months ended March 31, 2013 and 2012.

Mortgages Payable

The Trust had the following obligations outstanding as of the dates indicated all of which are secured by the underlying real property (dollars in thousands):

Property	March 31, 2013		September 30, 2012		Rate		Maturity
Yonkers, NY	$	1,909	$	1,954	5.25	%	April 2022
Palm Beach Gardens, FL	45,200		45,200		3.78	%	April 2019
Melboune, FL	7,680		7,680		3.98	%	April 2019
Marietta, GA	7,421		6,462		6.50	%	February 2015
Lawrenceville, GA	4,687		4,687		4.49	%	March 2022
Collierville, TN	25,680		25,680		3.91	%	July 2022
North Charleston, SC	17,716		—		3.79	%	November 2022
Cordova, TN	19,248		—		3.71	%	December 2022
Decatur, GA	8,046		—		3.74	%	December 2022
Panama City, FL	5,588		—		4.06	%	February 2023
65 Market St—Newark, NJ	900		900		7.00	%	January 2015
909 Broad St—Newark, NJ	6,034		6,132		6.00	%	August 2030
Teachers Village—Newark, NJ(1)	2,738		2,738		17	%	June 2013
Teachers Village—Newark, NJ(2)	22,748		22,748		5.50	%	December 2030
Teachers Village—Newark, NJ	4,250		4,250		3.46	%	February 2032
Teachers Village—Newark, NJ	975		988		2.00	%	February 2022
Teachers Village—Newark, NJ	799		1,380		2.50	%	February 2014
Teachers Village—Newark, NJ	1,832		1,832		(3	)	February 2034
Teachers Village—Newark, NJ	15,700		15,700		Libor +3.00	%	August 2019
Teachers Village—Newark, NJ	5,250		5,250		3.28	%	September 2042
Teachers Village—Newark, NJ	14,142		13,491		8.65	%	December 2023
Teachers Village—Newark, NJ	2,212		2,212		(4	)	August 2034
	$	220,755	$	169,284

(1) As of March 31, 2013 and September 30, 2012, respectively, the Trust had guaranteed $685,000 of this mortgage obligation.

(2) TD Bank has the right, in 2018, to require subsidiaries of the Newark Joint Venture to repurchase such debt. If such right is exercised, such subsidiaries will be required to refinance such debt. The stated interest rate is 5.5% per year; however, the United States Treasury Department is reimbursing the interest at the rate of 4.99% per year under the Qualified School Construction Bond program and accordingly, the effective rate of interest thereon until 2018 is 0.51% per year.

(3) The debt is to be serviced in full by annual payment-in-lieu of taxes (“PILOT”) of $256,000 in 2013 increasing to approximately $281,000 at maturity. This obligation is secured by a municipal tax lien.

(4) The debt is to be serviced in full by annual PILOT payments of $311,000 in 2013 increasing to approximately $344,000 at maturity. This obligation is secured by a municipal tax lien.