Securities Available for Sale

6 Months Ended

Mar. 31, 2013

Securities Available For Sale [Abstract]

SECURITIES AVAILABLE FOR SALE

NOTE 5 – SECURITIES AVAILABLE FOR SALE

During the six months ended March 31, 2013, the Company sold or redeemed securities with a cost of $19,264,555 and recognized a gain on sale of $5,913,472. The Company also made purchases of $9,305,129 in securities available for sale. Of this amount, the Company made total purchases of 4,951 common shares of UMH Properties, Inc. (UMH), a related REIT, through UMH’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $47,348 or an average cost of $9.56 per share. The Company owned a total of 750,303 UMH common shares as of March 31, 2013 at a total cost of $7,052,540 and a fair value of $7,705,611. The Company also owns 200,000 shares of UMH’s 8.25% Series A Cumulative Redeemable Preferred Stock at a total cost of $5,000,000 and a fair value of $5,340,000.

The Company determined that it held three securities that were temporarily impaired investments as of March 31, 2013. The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment. As of March 31, 2013, the three securities that were temporarily impaired consisted of three Preferred stock securities with a fair value of $1,361,798 and an unrealized loss of $(13,207) with a range of loss of 5% or less, all impaired for less than twelve months.

The Company normally holds REIT securities long term and has the ability and intent to hold these securities to recovery. The Company had total net unrealized gains on its securities portfolio of $5,922,580 as of March 31, 2013.