Organization and Accounting Policies (Policies)

6 Months Ended

Mar. 31, 2013

Organization and Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

In preparing the financial statements in accordance with US GAAP, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates and assumptions.

Reclassification

Reclassification

Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current period’s presentation.

During fiscal 2011, the Quakertown, PA property was reclassified to held for sale, which resulted in $19,628 of income for the six months ended March 31, 2012, being reclassified into discontinued operations. On October 31, 2011, the Quakertown, PA property was sold. In addition, during fiscal 2013, the Greensboro, NC property was reclassified to held for sale, which resulted in $300,484 and $(44,242) of income (loss) for the three months ended March 31, 2013 and 2012, respectively, and $296,458 and $(15,401) of income (loss) for the six months ended March 31, 2013 and 2012, respectively, being reclassified into discontinued operations. On February 19, 2013, the Greensboro, NC property for sold for $1,525,000 (see Note 4).

Lease Termination Income

Lease Termination Income

Lease termination income is recognized in operating revenues when there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and the termination consideration is probable of collection.  Lease termination amounts are paid by tenants who want to terminate their lease obligations before the end of the contractual term of the lease by agreement with the Company.

In March 2012, the Company received $3,222,283 in lease termination income on its 388,671 square foot property located in St. Joseph, MO.  Under the terms of this lease termination agreement, the tenant was required to pay the Company additional rent from September 1, 2012 through November 30, 2012 in the amount of $111,113 per month (pro-rated for any area/time leased to another tenant).  On May 8, 2012, the Company entered into a 5-year lease agreement for this space with another tenant for 256,000 square feet (representing approximately 66% of the space).  In December 2012, the Company received $113,784 in lease termination income representing additional rent from September 1, 2012 through November 30, 2012 for the 34% portion of the space that was not re-leased.

In October 2012, the Company’s tenant at its 160,000 square foot property located in Monroe, NC exercised its early termination option. The Company received a lump sum termination payment in October 2012 of $576,946 which was calculated based on the period covering November 1, 2012 through July 31, 2013.

The Company’s lease with its tenant at its 26,340 square foot location in Ridgeland (Jackson), MS has an early termination option which may be exercised at any time subsequent to December 2013 provided the Company is given six months notice.  The rent per annum for this location is $109,275 and the lease expires in July 2019.  The Company does not anticipate that this tenant will exercise its early termination option.  The Company does not have any other leases that contain an early termination option.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock options and restricted stock in accordance with ASC 718-10 which requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). This compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value for restricted stock awards is equal to the fair value of the Company’s common stock on the grant date. Included in General and Administrative Expense in the accompanying Consolidated Statements of Operations are compensation costs of $81,562 and $62,373 which have been recognized during the three months ended March 31, 2013 and 2012, respectively and compensation costs of $161,089 and $126,696 which have been recognized during the six months ended March 31, 2013 and 2012, respectively.

During the six months ended March 31, 2013 and 2012, the following stock options were granted under the Company’s amended and restated 2007 stock option and stock award plan (the amended and restated 2007 Plan):

Date of Grant	Number of Employees	Number of Shares	Option Price	Expiration Date
1/3/13	1	65,000	$10.46	1/3/21
1/3/12	1	65,000	$9.33	1/3/20

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for grants in the fiscal year indicated:

	Fiscal 2013	Fiscal 2012
Dividend yield	5.74%	6.43%
Expected volatility	18.84%	19.24%
Risk-free interest rate	1.18%	1.41%
Expected lives (years)	8	8
Estimated forfeitures	-0-	-0-

The fair value of options granted during the six months ended March 31, 2013 and 2012 was $0.62 and $0.49, respectively.

During the six months ended March 31, 2013, no shares of restricted stock awards were granted under the Company’s 2007 Stock Option and Stock Award Plan (the Plan) and no options to purchase common stock were exercised. As of March 31, 2013, a total of 736,961 shares were available to grant as stock options or as restricted stock and there were outstanding options to purchase 924,430 shares under the Plan. The aggregate intrinsic value of options outstanding as of March 31, 2013 was $2,706,544.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under US GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. This ASU is effective prospectively, for annual and interim periods, beginning on or after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our financial position, results of operations or cash flows.

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements