Subsequent Events

12 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18 – SUBSEQUENT EVENTS

Material subsequent events have been evaluated and are disclosed herein.

On October 23, 2012, the Company refinanced its existing mortgage loan on the Tolleson, AZ property with a balance of $5,169,748 at an interest rate of 5.8% due December 1, 2012 for an $8,000,000 mortgage at a fixed rate of 3.95% due November 1, 2022.

Pursuant to notice given on October 29, 2012, Monmouth Capital redeemed the 2013 and 2015 Debentures on November 30, 2012 (Redemption Date) for the full principal amount plus accrued interest through the Redemption Date. Between October 1, 2012 and November 30, 2012, $3,500,000 of the Debentures was converted to 382,091 shares of common stock and $5,115,000 was redeemed.

In October 2012, the Company’s tenant at its Monroe, NC location exercised its early termination option. The Company received a lump sum termination payment of base rent in October 2012 of $423,860 plus reimbursement of real estate, insurance, maintenance and repairs of $153,086 covering the period November 1, 2012 through July 31, 2013.

On November 9, 2012, the Company purchased a 172,000 square foot industrial building located in Livonia, Michigan. The building is 100% net leased to FedEx Ground Packaging System, Inc. through March 31, 2022. The purchase price was $14,350,000. The Company obtained a mortgage of $9,500,000 at a fixed interest rate of 4.45% for 14 years and paid the remaining amount with cash on hand. This mortgage matures on December 1, 2026. Annual rental income over the remaining term of the lease is approximately $1,194,000.