INVESTMENT IN REAL ESTATE, NET

12 Months Ended

Jun. 30, 2015

NOTE 4 - INVESTMENT IN REAL ESTATE, NET

At June 30, 2015, the Company's investment in real estate consisted of twenty properties located throughout the United States. These properties include sixteen apartment complexes, two single-family houses as strategic investments, and one commercial real estate properties. The Company also owns unimproved land located in Maui, Hawaii.

Investment in real estate included the following:

As of June 30,	2015		2014
Land	$	23,453,000	$	25,781,000
Buildings, improvements and equipment		64,828,000		74,039,000
Accumulated depreciation		(32,513,000)		(36,123,000)
	$	55,768,000	$	63,697,000

In February 2014, the Company entered into a contract to sell its 249 unit apartment complex located in Austin, Texas and the adjacent unimproved land for $15,800,000. The purchase/sale agreement provides that purchaser can terminate the agreement with or without cause, however, the potential purchaser would forfeit the earnest money ($208,000) and additional consideration ($250,000) totaling $458,000. The purchaser also had the option to extend the agreement. During the quarter ended September 30, 2014, the Company received the $458,000 and recognized it as income as the result of the potential buyer not extending the purchase agreement. In December 2014, the Company entered into a new contract with a different buyer to sell the same property for $16,300,000. In March 2015, the Company sold this property for $16,300,000 and realized a gain on the sale of real estate of $9,358,000. The Company received net proceeds of $7,890,000 after selling costs and the repayment of the mortgage of $6,356,000 and the early prepayment of debt penalty of $1,634,000.

In November 2014, the Company sold its 5,900 square foot commercial property located in Los Angeles, California for $3,450,000 and realized a gain on the sale of real estate of $1,742,000. The Company received net proceeds of $2,163,000 after selling costs and the repayment of the related mortgage of $1,100,000. Prior to its sale, this property was being leased by the buyer.